I.

Constructive Camaraderie: Concept of Leadership

1.1. Definition
1.2. Leadership Styles: Global Construction Industry
1.3. Effective Leadership Strategies: Philippine Construction Industry

II. The Value of Work: Key Performance Metrics

2.1. Definition
2.2. Job Satisfaction
2.3. Productivity
2.4. Innovation

III. The Industrial Dichotomy: Effect of Leadership Strategies on Key Performance

Metrics
3.1. Multi-Prime Project Delivery Method
3.2. Leadership Strategies: Positive Effects on Key Performance Metrics
3.3. Leadership Strategies: Negative Effects on Key Performance Metrics
I. CONSTRUCTIVE CAMARADERIE: CONCEPT OF LEADERSHIP

I.I. DEFINITION
Beerkens et al. (2021) defined leadership as a repertoire of practical behaviors directed at
guiding individuals to harmonize their shared objectives, execute strategic plans, and perpetuate
the revitalization of organizations. It is marked by the capacity to shape outcomes and encourage
cooperative endeavors that transcend individual contributions. The possession of formal
authority does not ensure effective leadership, as it is actions rather than words that instill
confidence and motivation. Competent leaders acknowledge the necessity of flexible strategies,
understanding that what succeeds in one context may not be universally applicable.
Organizational well-being, an all-encompassing array of factors supporting sustained growth and
prosperity, offers a valuable perspective. By embracing a situational approach, leaders can
customize their actions to align with the specific circumstances and developmental phase of an
organization (McKinsey & Company, 2022).

1.2. LEADERSHIP STYLES: GLOBAL CONSTRUCTION INDUSTRY

According to La Noue (2022), In the context of leadership in the construction industry,
various leadership styles are relevant and crucial for effective management. Democratic
leadership involves consultation with subordinates to assess the feasibility of important
decisions, facilitating informed choices. Servant leadership emphasizes prioritizing the welfare
of the workforce, particularly at departmental and team levels, fostering open communication
and support. Coaching leaders are adept at internal training and knowledge transfer, essential for
enhancing the organization's skill base. Pacesetting leaders, exemplified by foremen, focus on
efficiency and resource optimization while recognizing the unique contributions of team
members. Autocratic leadership, although occasionally required, demands trust in
decision-making for safety and efficiency on construction sites, often necessitating swift,
authoritative decisions without extensive elaboration due to time constraints.
1.3. EFFECTIVE LEADERSHIP STRATEGIES: PHILIPPINE CONSTRUCTION
INDUSTRY
In a study done by Gueco, P. B. T., et al. (2022), Respondents generally exhibit strong
agreement with transformational leadership styles, agreement with team commitment, and a
neutral stance regarding organizational culture. Hypothesis testing uncovers significant
differences in perceptions between team members and project managers, while indicating no
significant relationship between transformational styles and project performance. Consequently,
this study concludes that transformational leadership styles influence respondents' perceptions
and attitudes but do not significantly impact construction company performance. The study
examines potential variations in these perceptions between team members and project managers,
as well as the relationship between respondents' transformational styles and project performance.

II. THE VALUE OF WORK: KEY PERFORMANCE METRICS

2.1. DEFINITION
Key performance metrics (KPMs), also known as key success indicators (KSIs), are
quantifiable metrics employed to assess a company's long-term performance in terms of strategy,
finance, and operations, especially in comparison to industry peers. These KPMs vary across
sectors and organizations, aligning with specific performance criteria. For instance, a software
company seeking rapid industry growth might prioritize year-over-year revenue growth as a
paramount KPM, while a retail chain could prioritize same-store sales for growth evaluation.
Customer-centric KPMs focus on per-customer efficiency, satisfaction, and retention, whereas
process-focused KPMs monitor operational performance across the organization. Typically,
businesses employ analytics software and reporting tools to measure and track these critical
performance metrics. (Twin, 2022)
2.2. JOB SATISFACTION
Job satisfaction is a comprehensive key performance metric (KPM) utilized to assess the
well-being and engagement of a company's workforce. It comprises various sub-metric that
collectively offer an overview of employees' overall contentment and happiness in their work
environment. This metric often functions as an amalgamation of two or more metrics,
incorporating data from sources like net promoter scores, informal discussions, employee
surveys, and indirect metrics such as absenteeism and productivity rates. Consequently,
employee satisfaction KPMs are instrumental in providing a holistic perspective on the
well-being and contentment of the workforce. (Employee Satisfaction - Human Resources KPI
Examples | SiSense, 2022)
2.3. PRODUCTIVITY
Weideryd's (2022) study explores the intersection of key performance metrics and
productivity within the construction industry. The research emphasizes the significance of
productivity measurement and the standardization of such metrics. Two overarching categories
of productivity measures are identified: efficiency, which quantifies the relationship between
resources (e.g., cost, time, or work) and a unit of size (e.g., square meters, cubic meters, or
activity), and ineffectiveness, which assesses productivity or unproductivity through a
comprehensive resource approach. The study underscores the importance of collecting six
critical categories of data during construction projects to facilitate productivity measurement and
meaningful project comparisons. These categories encompass time, cost, size, characteristics,
building type, and deviations and are relevant both during planning and post-execution phases.
The research underscores the imperative need for increased data collection on construction sites
to enhance productivity assessment.
2.4. INNOVATION
Businesses commonly employ innovation as Key Performance Metrics (KPMs) to assess
process efficiency and identify opportunities for optimization. These metrics serve the dual
purpose of guiding resource allocation and promoting accountability among employees,
ultimately leading to enhanced customer satisfaction. Engagement with innovation can be
gauged through diverse approaches, such as quantifying the number of ideas generated by teams
per quarter or attributing individual stakeholders to specific ideas to incentivize continuous
ideation. Additionally, monitoring the expenses associated with innovation initiatives, including
time, materials, and labor costs, is essential, acknowledging that initial expenses may surpass
profits due to the novelty of the idea. As the idea matures, assessing shifting profit margins over
time becomes crucial. (Indeed,2023)

III. THE INDUSTRIAL DICHOTOMY: EFFECT OF LEADERSHIP STRATEGIES ON

KEY PERFORMANCE METRICS

3.1. MULTI-PRIME PROJECT DELIVERY METHOD

Caltec Corporation (2021) defined Multi Prime (MP) Delivery Method is a construction
project delivery process akin to Design-Bid-Build (DBB), featuring distinct variations. Unlike
DBB, where a single contractor is typically engaged, MP enables the client to directly contract
with various specialized contractors, each responsible for specific project aspects. This approach
involves collaboration between the client, designer, and multiple general and specialty
contractors, setting it apart from the traditional model. Another significant contrast lies in the
client's comprehensive control over the entire project process. It's worth noting that certain states
mandate the use of the MP method for public sector projects, with California, as of the date of
publication, still adhering to the lowest bidder wins approach. (Viator,2023)

3.2. LEADERSHIP STRATEGIES: POSITIVE EFFECTS ON KEY PERFORMANCE

METRICS
Ellis (2023) underscores the pivotal role of key performance metrics in construction,
particularly emphasizing the significance of safety metrics, as a safer construction site reduces
risks and long-term costs. Delays and budget overruns due to safety issues can significantly
hinder project progress. Monitoring safety ratings is essential to mitigate costs and maintain
workforce productivity. Additionally, maintaining a keen focus on quality control and
understanding the overall quality of projects can minimize changes and rework, ensuring
adherence to budgets and schedules. Furthermore, establishing key staff responsible for tracking
and sharing measurement data company-wide is vital, but initial training in the company's
performance software is imperative. Given the intricate and dynamic nature of the construction
industry, effective planning, efficient execution, and continuous improvement are essential for
on-time, on-budget project delivery. Clear metrics and key performance indicators (KPIs) are
indispensable for assessing progress, detecting issues early, and enhancing overall performance.
KPIs provide a means to measure outcomes and results, serving as measurable and trackable
metrics that drive improvements and adjustments in the absence of which progress toward goals
remains elusive (Advantages and Disadvantages of Performance Indicators, n.d.).

In the realm of leadership, Rudomino (2023) emphasizes the pivotal role of Key
Performance Metrics (KPMs) in evaluating a leader's strategies and actions. Successful leaders
recognize the interdependence between their own success and that of their team members and
thus concentrate on specific KPMs that contribute to the cultivation of robust, motivated, and
engaged teams. These primary KPMs, comprising keeping individuals informed, involved,
interested, and inspired, enable leaders to foster strong and engaged teams. Effective
communication, involvement in decision-making processes, nurturing interest, and providing
inspiration stand out as essential components for nurturing a productive and motivated
workforce. Continuously monitoring and enhancing these KPMs empower leaders to elevate
their leadership effectiveness and propel their teams towards greater achievements.

3.3. LEADERSHIP STRATEGIES: NEGATIVE EFFECTS ON KEY PERFORMANCE

METRICS
In the realm of performance measurement, Whale (2023) underscores the challenge of
effectively managing metrics, cautioning against an excessive proliferation of key performance
metrics (KPMs) that can render them redundant and obfuscate their interpretability. This
conundrum necessitates a concerted effort to prioritize critical business activities driving
profitability and cash flow, thereby enabling the identification of a concise set of genuine KPMs,
typically limited to 6-8 metrics that authentically influence the bottom line. The pivotal
advantage of maintaining an optimal number of KPMs lies in the ability to channel an
organization's focus towards pivotal aspects, as opposed to being entangled in a multitude of
metrics. This streamlined strategy facilitates expedited progress and improved outcomes for
property or estate agents' performance.
 Jaesik and Gemeda (2020) conducted a cross-national study on leadership styles, work
engagement, and work outcomes in the context of information and communication technology
professionals in Ethiopia and South Korea. Their findings revealed that transformational
leadership was positively linked to work engagement and innovative work behavior, whereas
transactional leadership correlated positively with task performance. Conversely, laissez-faire
leadership exhibited a negative association with task performance. Work engagement also
demonstrated positive relationships with work outcomes. Notably, work engagement acted as a
partial mediator in the connection between leadership styles and work outcomes, and these
patterns remained consistent across the two national samples, underscoring the cross-cultural
validity of the study's findings.
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-simon-whale