International Journal of Architecture, Engineering and Construction Vol 5, No 3, September 2016, 128-137 Functional Units based Model for Construction Organizations Performance Ahmed Radwan * and Emad Elwakil School of Construction Management, Purdue University, West Lafayette, Indiana, USA Abstract: Organizational performance is one of the most critical aspects in project management research. Predicting performance allows organizations to identify areas with highest improvement potentials, thus leading to higher performance and profit. The objective of this research is to identify and analyze the critical success factors to develop a comprehensive performance assessment model(s) based on values perceived from different functional units within the organization. The research hypothesis is that the perception of critical success factors will be different from one unit to another, which was proved from the results. The data was analyzed using multiple linear regression analysis to identify the significant success factors to each functional unit. The developed models reflect different perspective of four functional units in each organization. The models are validated with satisfactory average validity percent between 95.5% and 98%. The models will benefit organizations to predict an accurate performance based on the different organizations’ individuals perspective. Keywords: Organizational performance, prediction models, organizational functional units, regression modeling DOI: 10.7492/IJAEC.2016.013 1 INTRODUCTION Performance of an organization is the main driver for its profit and success, making the need for performance assessment a necessity. Achieving and maintaining a scientific strategy to measure organizations performance is a process that faces huge difficulties. This process was found to be even more challenging in the construction organizations due to the diversity, complexity, and the fragmented nature of construction organizations (Abraham 2002). Recently, performance evaluation of construction organizations gained a lot of attention from organizations, and a need to assess the performance beyond the financial measures became crucial (Isik et al. 2009). Moreover, construction organizations have to properly define their success strategies and roadmaps of surviving the global competence by increasing their profit within the market (Zayed et al. 2012). Determining success strategies require the organizations first to specify their objectives and goals. Achieving success depends on the fully understanding of factors that directly affect the organization’s performance (Kaplan and Norton 1993) and how these factors are perceived by different functional units of an organization. Identifying and evaluating organizations’ performance is the first step to define the future goals. Thus, organizations have to evaluate their performance and their current market positions to set up the right strategies. Critical Success Factors (CSFs) were found to be one of the best methodologies in measuring organizations performance to achieve organizations’ main goal of developing an executive monitoring system that contains corporate-wide indicators of success (Holohan 1992). Many research efforts have been done to determine those success factors. However, most of the conducted research was only focusing on the construction project level rather than the organizational level (Barakat et al. 2015). The need for determining the success factors increases as it can be an indicator for the organization performance, and also can be used to predict and improve this performance. There are various methods and approaches to determine the key success factors of organizations. The most commonly used approach is the utilization of questionnaires and interviews with technical personnel and industry professionals. The scope of this research is to investigate the most significant key success factors with focusing on construction organizations. The goal is to develop and validate a framework for the performance prediction based on the perceived perspective of the different functional units in the organization. This goal is to be achieved through specifying the significant CSFs for each functional unit and their impact on the performance of *Corresponding author. Email: aradwan@purdue.edu 128