Content area
Full Text
1. introduction
The world is a difficult place for construction companies, especially those that operate in different regions of the world and more especially in the face of dynamic economic, social and technological conditions. The basics seem simple: finish the job safely on time and to budget to a standard which satisfies the customer. However, there are a number of factors which often frustrate these objectives, usually to do with people. The construction contractor's prime asset is its people. It is through people that successful construction projects are planned, implemented and monitored. Thus it is important that a multinational construction organization has the necessary level of skills wherever in the world it operates. This usually means that the organization must work within the constraints and demands of the host country and actively train and develop people for jobs for today and tomorrow. All of this generates revenues for the organization and the region and serves to generally raise the skill levels of the local workforce, thus leaving a positive legacy.
This paper considers the links between competitive advantage, skills and performance. It demonstrates how Kentz Corporation Limited, an international engineering and construction company operating in 27 countries worldwide, is seeking to address skill shortages in a proactive and innovative way. Examples are given of training initiatives on corporate work permits, training centres and specialist-equipment training, with two case studies in southern African construction.
2. Strategic capability and competitive advantage
According to Johnson et al. (2008) strategic capability is the ability to perform at the level required to survive and prosper. This survival and prosperity is achieved through people whose threshold competences are the activities and processes needed to meet customers' minimum requirements. In practice, this means that organizations must ensure that their employee possess the appropriate set of skills and competences. Throughout the organization, employees need specific and technical skills to help them to complete tasks, satisfy the customer and make profits. In complex and multi-skilled activities such as construction, skill levels must be regularly refreshed in order to retain competitive advantage. Thus, employee skills are directly related to organizational performance and survival.
2. 1 Effects of skills on performance
In many industries, skilled craft workers do not possess formal qualifications, often having learned...