Valuation of Project Managers to Enhance Project Performance in Nigeria’s Construction Industry

Abstract

Construction project management is critical to the success of construction projects, with the performance of project managers (PMRs) playing a central role. Despite its importance, previous studies have highlighted the poor performance of construction organizations in Nigeria, such as project delays and cost overruns and the need for proper project management practices. However, the specific performance of PMRs in the Nigerian construction industry (NCI) has not been extensively studied. To address this issue, this study aims to identify the causes of underperformance among PMRs in the NCI by examining the tasks where PMRs underperform and the extent of this underperformance and its effect on motivational support from organizations. Data were collected through 206 questionnaires and 36 semi-structured interviews with organizations and project managers. Descriptive analysis was conducted to evaluate project management (PM) practices as well as the level of motivational support provided to PMRs. The analysis revealed that PMRs underperform in more than 60% of tasks but outperform in 20%. Underperformance refers to the tasks in which PMRs performed less than the expected contributions set by the organization, while outperformance describes tasks where PMRs exceeded the organization’s expectations. The analysis also revealed low motivational support of PMR. Correlation analysis was conducted to investigate whether motivational support influences PMR performance, and the results indicated a two-way causal relationship between underperformance and low motivational support. This study integrated a game theory model with regression analysis to show that (stay, support) is the dominant solution for project managers and organizations, provided the net contribution of support is positive. In this context, “stay” refers to PMRs continuing working with their current organization, while “support” refers to the motivational support provided by the organization to enhance the commitment and performance of the PMRs. However, current support levels may not be enough to cause PMRs to begin to outperform. In addition, regression analysis was conducted between the degree of underperformance and motivational factors, and we conducted a preliminary simulation by increasing these values of regression coefficients. The results indicated that while motivational support from organizations can improve PMRs performance, its effectiveness is limited. Factors such as corruption, political pressures, and organizational culture have a greater impact on performance. Addressing these factors may be more crucial for enhancing performance and project outcomes than focusing only on motivational support. Therefore, the Nigerian construction industry needs to implement institutional changes alongside motivational strategies to improve PMRs performance and project success.