FINAL EXAM SUBMISSION

CONS0002 OB and HRM

University of New South Wales

Himanshu Gupta
Z5454806
Q-1 A
Here are five environmental factors that can have an impact on a
sizable, international construction company with its headquarters in
Australia:

Economic Factors: A construction firm may be significantly impacted by the

state of the economy. The cost of materials and labour as well as the
accessibility of finance for new projects may be impacted by changes in
interest rates, inflation, and foreign currency rates.

Political and legal considerations: A construction company's operations

may be significantly impacted by changes to governmental policies, rules,
and laws. Changes in tax regulations, for instance, might have an effect on
the firm's financial position while changes in environmental rules may make it
more difficult for the company to get licences for new projects .

Social and Cultural Factors: Social and cultural issues may also have an
impact on how a construction firm does business. For instance, demographic
shifts, like an ageing population, may open up new possibilities in sectors like
retirement communities and healthcare facilities.

Technology: As a result of modifications to project planning and

construction, technological advancements may have an effect on the
construction sector. New construction materials, 3D printing, and automation,
for instance, may boost productivity and save costs.
Environmental variables: The operations of a construction business may be
significantly impacted by environmental variables including climate change
and natural catastrophes. Weather pattern changes may have an impact on
building timetables, and natural catastrophes can delay new projects and
harm already-completed ones.

These are only a few examples of the external environmental elements that
may have an impact on a large, international construction company with a
base in Australia. In order to guarantee that the firm can adapt and stay
competitive in a continuously changing business environment, it is crucial to
continually monitor and analyse these elements.

Q-1 (b)
To upgrade the production facilities of the organisation, a management must
address the restraining factors and turn them into driving forces. Here are five
suggestions for lowering resistance and achieving the objective:

1. Education and communication: One of the biggest barriers to new

technology adoption is worker fear. The importance of informing the staff
about the advantages and how it would streamline their job and increase
productivity cannot be overstated as a manager. By easing their concerns,
effective communication may encourage people to support the
improvement.

2. Incentive programmes: A major impediment is the reduction in

personnel overtime hours. Offering incentives to make up for any lost revenue
during the transition period, such as bonuses, higher hourly rates, or extended
time off, is one way to address this.

3. trial Programme: Putting in place a trial programme might help allay

worries about production interruption. The business may find and address any
problems before expanding up by testing the new production facilities on a
lesser scale. By giving staff members the opportunity to experience the
advantages of the new technology in a low-risk setting, this strategy may also
aid in gaining their support.

4. Cost Sharing: The cost of installation and buying is another impediment.

Sharing the cost with partners or suppliers, such as those who source raw
materials, who stand to gain from the update, is one way to address this. This
strategy may lessen the financial load on the business and provide a scenario
where everyone wins.

5. Continuous Improvement: The business should prioritise continuous

improvement in order to overcome the constraining factor of production
interruption and guarantee the upgrade's success. This entails constant
instruction, observation, and modification of the production procedures to
reduce any adverse effects and increase the positive ones.

The corporation may successfully modernise the production plants by putting

these ideas into practise and reducing the restraints and converting them to
driving factors.

Q- 2 (A)
The following four legal concerns that managers need to be aware of:

Discrimination and harassment: Managers are responsible for making sure

that none of their actions or choices harm staff members on the basis of their
race, gender, religion, age, handicap, or any other legally protected
characteristics. Managers must also guarantee that all staff members are
taught on these rules and take aggressive steps to prevent and resolve sexual
harassment in the workplace.

Compliance with the Fair Labour Standards Act (FLSA): The FLSA lays
forth requirements for minimum wages, overtime compensation, record-
keeping, and child labour for workers in the US. To prevent fines and legal
action, managers must make sure that their business complies with these rules.

Compliance with the Family and Medical Leave Act (FMLA): The
FMLA mandates that businesses with 50 or more workers must provide eligible
workers up to 12 weeks of unpaid leave for certain family and medical reasons.
Managers are responsible for making sure that their organisation abides by the
law and that all workers are aware of their rights.

Employee confidentiality and privacy: Managers are required to uphold

workers' rights to their privacy and to maintain the secrecy of sensitive personal
data such as disciplinary records, social security numbers, and medical
information. Additionally, managers are responsible for making sure that their
organisation abides by regulations like the General Data Protection Regulation
(GDPR) and the Health Insurance Portability and Accountability Act (HIPAA)
when handling employee data.

Q-2 (B)

Activity Duration Total Cost Actual % Incurred Cost

Completion ($)
A 2 400 100 400
B 2 700 100 700
C 3 900 50 500
D 4 800 25 300
E 3 600 0 0
Total Cost (BAC) 3400 55 -
ACWP 1900

I. Critical Path = A -B C -E = 2+2+3+3 = 10 days ~ Total Duration of the

project
BAC = Sum of total cost = 400+700+900+800+600 = $ 3400
BCWP = 55% * BAC = $ 1870
ACWP = $ 1900
BCWS = 60% * BAC = $ 2040
CPI = BCWP/ACWP = 1870/1900 = 0.98
SPI = BCWP/BCWS = 0.92
SV = BCWP – BCWS = 1870 – 2040= -$170
CV = BCWP – ACWP = 1870 – 1900 = -$30
EAC = (ACWP/BCWP) x BAC= (1900/1870) *3400 = 3454
ETC = EAC – ACWP = 3454 – 1900 = 1554
II. CV is Negative, and BCWP<ACWP which means the project has run over
budget.

SV is Negative and BCWP<BCWS which means the project is behind

schedule at the projected cost.
 CPI <1

SPI <1; both the SPI and the CPI are less than one, the project is both
behind time and over budget respectively. This is not a desirable
circumstance, as it indicates that the project is underperforming.
EAC>BAC; means that the project is over budget. About $1554 will be
required to complete the project. indicating that the project is likely to
take more time and cost more than originally planned.

Q-3 A
In the following three circumstances, the Design and Build (D&B) delivery
technique could be more appropriate than the conventional approach:

Projects that must be completed on time: D&B is a more successful

tactic for projects that must be finished on schedule. Using the D&B method,
the design and construction phases may overlap because there is only one
point of accountability, which saves time. The traditional method involves a
number of steps, with the design completed before construction begins.

Budget-constrained projects: Because D&B encourages improved

communication between the design and construction teams, opportunities for
value engineering and cost-saving measures are increased. A typical strategy
can necessitate design changes while the project is being developed, which
might increase costs and add to the construction schedule.

Complex projects: For certain kinds of projects, such as those with unique
requirements or complex features, D&B is a better technique. A conventional
technique would need many design modifications, which would increase
costs and add time to the process. The design and construction teams work
together with D&B from the outset, guaranteeing that the project is completed
in line with the original vision.
Q-3 (B)
Critical path – 0-A-C-D-E-F-G-J-K-M
Total float is in above excel sheet image below.

Q-4 A
(i) Here is an analysis of a multinational construction firm with Australian roots
that operates in China using Porter's Five Forces Model:

Threat of New Entrants: The entrance barriers for new businesses into the
fiercely competitive Chinese construction sector are substantial. A few of these
include the necessity for strong local links, significant financial requirements,
and legal restrictions. There is no question that the international construction
company with an Australian basis has an advantage in this market due to its
well-established reputation, broad experience, and considerable financial
resources.

Suppliers' Bargaining Power: The abundance of building material

providers in China offers the international construction industry a wide range
of opportunities. Despite this, the company presumably has a lot of negotiation
leverage to secure favourable terms from suppliers given the scale of its
operations.
Buyers' ability: In the Chinese construction industry, purchasers' negotiating
power is frequently constrained. Despite this, the market's vast array of
competitors may provide some challenges for the multinational construction
company. Due to its reputation for quality and delivery, the firm may,
nonetheless, have an edge in obtaining bids and maintaining client
satisfaction.

Threat of Substitute Goods or Services: Alternative building materials or

construction methods are examples of replacements in the construction
industry. However, because construction projects are so complex and
frequently customised, there aren't many other options. The market is steady
and ideal for the activities of the multinational construction enterprise due to
the low risk of alternatives.

Competition: The construction industry in China is fiercely competitive, with

both domestic and foreign companies vying for contracts. Nevertheless, given
its reputation for excellence and proficiency in managing challenging, large-
scale projects, the multinational construction company may be at an
advantage.

Overall, a worldwide construction company with Australian roots operates in

China, where they find a challenging but stable market with minimal power
over suppliers and clients. Entry obstacles, the company's reputation and
experience, and the absence of many substitutes ensure a stable market for
the business to operate in.

(ii) According to the analysis of Porter's Five Forces, a differentiation strategy

may be useful for the international construction company with an Australian
base that works in China. This strategy comprises creating unique products or
services that distinguish themselves from those of competitors and are viewed
as attractive.
In the construction industry, differentiation may be achieved through factors
including quality, design, sustainability, and project management. The global
building industry may utilise its stature and expertise to differentiate itself from
competitors and position itself as a premium provider of construction services.
By employing a differentiation strategy and cultivating a base of dedicated
consumers willing to pay more for their services, the global construction industry
may be able to overcome the weak bargaining power of customers and
suppliers. can lessen the threat of new competitors and help the company
become more competitive in the crowded construction market.

If the worldwide construction industry is to effectively implement a

differentiation strategy, it must invest in research and development, cultivate
reliable partnerships with suppliers, and focus on delivering high-quality
projects that meet or surpass consumers' expectations. Additionally, the
company must ensure that potential customers are properly informed of the
unique features and benefits of its products and services.

The global construction business with an Australian basis that works in China
may be able to thrive with a differentiation strategy given its reputation,
expertise, and the tough competition in the Chinese construction sector.

Q4-B
Here are four ways that managers can influence how employees behave in
workplaces:

Positive reinforcement: encouraging positive behaviours in order to

encourage repeat of such activity. Managers may utilise a range of incentives,
like as praises, bonuses, promotions, and recognition, to encourage great
behaviour. For instance, management might recognise an employee for
exceeding or hitting their sales target to encourage them to continue their
exceptional performance.

Negative Reinforcement: Negative reinforcement is the process of

removing a painful or unfavourable consequence in order to encourage
desired conduct. For instance, a management may decide to do away with
the requirement for overtime pay in order to reward employees who
consistently meet their deadlines.
Punishment: the act of punishing bad behaviour with painful consequences
in an effort to prevent recurrence. Promotions, reprimands, and even
termination are some of the options available to managers. For instance,
management may give a written warning to discourage a worker from
showing up to work late every day.

Modelling: Modelling is the practise of managers demonstrating admirable

behaviours in order to motivate people to follow suit. For instance, a manager
who constantly maintains cordial and open contact with employees could
encourage employees to do the same.

It's critical to keep in mind that the effectiveness of these strategies may vary
depending on the situation, the employee's motivation, and personality. As a
result, managers need to be adaptable and flexible in their approach to
influencing employee behavior, taking into consideration factors including the
individual's goals, the workplace, and feedback. Managers should focus on
creating an environment that values cooperation, continual learning, and
advancement in order to promote good conduct and ensure employee
satisfaction and engagement.

Q-5 A
However, there are many examples of unethical actions in the construction
industry. Here are five examples:

Bid rigging is the collaboration of contractors to fix the price of construction

projects. This immoral method is used to lessen competition, artificially raise
prices, and improve profits. Due to bid rigging, clients that are forced to pay
more than necessary for construction projects sustain harm.

Use of Substandard Materials: It is unethical for contractors to use inferior

supplies or cheap substitutes that do not meet the project's specifications. This
might result in risky structures and buildings that don't endure as long as they
should. Furthermore, using subpar materials can raise the cost of upkeep and
repairs for clients.
Misuse of Funds: It is unethical for a contractor or subcontractor to use funds
allotted for a construction project for unrelated or personal expenses. This
dishonest conduct is outlawed and might harm clients by adding delays or
reducing the standard of the work.

Discrimination: Discrimination, whether it be based on a person's race,

gender, religion, or age, is an unethical behaviour that has no place in the
construction industry. Discrimination against workers, subcontractors, or
suppliers has the potential to hurt individuals and destroy the industry's
reputation.

Safety Violations: Employees' life and health are put in jeopardy by

unethical practises known as safety breaches. Contractors that cut corners or
neglect safety regulations in order to save time or money run the risk of putting
their employees, subcontractors, and the general public in danger. These
infractions can lead to accidents, injuries, and fatalities that could have been
avoided when safety procedures are observed.

These are only a handful of examples of the unethical behaviours observed in

the construction industry. Stakeholders in the sector must promote and support
ethical standards, educate employees and contractors on ethical practises,
and enforce laws and rules meant to forbid unethical action in order to stop
these practises.

Q-5 B
(A) Sure. Here are four approaches to making ethical decisions and their
implications for Mr. Polak's family:

1. Utilitarian Approach
The concept of utility, which states that the ethically appropriate action is the
one that results in the greatest good for the greatest number of people, is the
foundation of the utilitarian approach to ethics. According to a utilitarian
perspective, Mr. Polak's family should get their entire retirement benefits from
the firm since doing so would give them the highest level of financial stability
and peace of mind. This would relieve them of the stress of having to worry
about money and let them concentrate on mourning their loss and starting
again.

2. Deontological Approach
The obligation concept, which maintains that some activities are good or bad
in and of themselves, independent of the results, is the foundation of the
deontological approach to ethics. A deontological argument in the example
of Mr. Polak's family would contend that the business has an obligation to grant
them full retirement benefits since they are qualified for them under the
provisions of his employment contract. It would be against their rights and
immoral to deprive them of these privileges.

3. Virtue Ethics
An approach to ethics known as virtue ethics places special emphasis on the
growth of moral character. According to a virtue ethics perspective, the family
of Mr. Polak should get their entire retirement benefits from the corporation
since it is the moral thing to do. It would demonstrate that the business
appreciates its workers and their families and is a sensitive and caring
organisation. This would be positive for the business and might aid in recruiting
and keeping top employees in the future.

4. Communitarian Approach
The idea that people belong to communities and have moral duties to those
communities is the foundation of the communitarian approach to ethics. A
communitarian perspective would contend that the corporation should grant
Mr. Polak's family full retirement benefits since doing so is in the best interests of
the community as a whole. Both the business and its employees belong to the
community in which they work. The business is contributing to the well-being of
the neighbourhood and its residents by giving Mr. Polak's family full retirement
benefits.
In the end, it is a difficult choice whether or not to grant Mr. Polak's family full
retirement benefits. There are no simple solutions, and each method of
approaching ethics has advantages and disadvantages. Before selecting a
choice, the corporation should thoroughly weigh all the relevant
considerations.
(ii) the approaches would i recommend to the managers of the company are:
I would advise the company's managers to base their choice on the
utilitarian approach of ethics. This is so because the utilitarian viewpoint is
founded on the utility principle, which maintains that the ethically correct
course of conduct is the one that results in the greatest amount of benefit for
the largest number of individuals. Giving Mr. Polak's family full retirement
benefits would provide them the greatest sense of financial stability and
tranquilly. This would relieve them of the stress of having to worry about
money and let them concentrate on mourning their loss and starting again.

Furthermore, providing Mr. Polak's family with full retirement benefits would
demonstrate the company's commitment to its workforce and the
neighbourhood. It would demonstrate that the business appreciates its workers
and their families and is a sensitive and caring organisation. In the future, this
may make it easier to recruit and keep elite talent.
Of course, there are more aspects that the business should take into account
before making a choice, such as its financial status and Mr. Polak's
employment contract's provisions. But I think the utilitarian method is the best
way to come to a decision that is fair and just to everyone concerned.