SELECT BUSINESS AND TECGNOLOGY COLLEGE

POST GRADUATE PROGRAM

DEPARTMENT OF MBA

THE EFFECT OF POOR PLANNING IN ETHIOPIAN

CONSTRUCTION INDUSTRY: THE CASE OF
ETHIOPIAN CONSTRUCTION WORKS
CORPORATION

RESEARCH PROPOSAL FOR THE COURSE BUSINESS

RESEARCH METHODS
BY: Dawit Getachew
SUBMITTED
TO: Nakchew Bashu (PhD in Business Management)
DATE SUBMITTED: April, 2022
ADDIS ABABA,ETHIOPI
Contents

Acknowledgement........................................................................................................................................I

 CHAPTER ONE
II
Introduction

III
1.1. Background of the Study

According to Business Dictionary, planning is a process of identifying goals or objectives,

formulate strategies, create necessary ways, and implement and monitor all steps with the
appropriate sequence. In projects, it is the most important phase (Meri Williams, 2008). Planning
answers the questions like what must be done, by whom, for how much, how, when, and so on
(Joseph Heagney, 2011).

Planning plays a vital role in construction project management. Effective planning at different
stage of project can be one factor of project success. Whereas, poor planning may be the source
of many catastrophic incidents in the construction industry as well as one reason for project
failure.

Currently, construction industry is the most fast growing sector in Ethiopia. But most
construction projects are not being finished with in the expected project time, cost, quality and
purpose. According to the assessment conducted in 2016 by Journal of Civil, Construction and
Environmental Engineering, in the country, only 8.25% of construction projects are finished to
the original targeted completion time; whereas, the rest 91.75% of projects delayed 352% of its
contractual time. Poor Planning is one of the contributing factors for the failure and delay of
most construction projects in Ethiopia. And this Proposal is intended to study the effect of poor
planning in the construction industry. The study will be conducted in Ethiopian Construction
Works Corporation, which I have chosen as a sample company, as it is participating in different
construction projects, such as, road construction, building construction, water works construction
and I believed that the practices there can be a good example for most construction activities in
the country.

1.2. Statement of the Problem

In Ethiopia, even if the construction industry is playing an essential role in the socio-economic
development of the society, there are also many challenges in the industry due to different
project management problems and one of these is planning problems.

Therefore, this research proposal is prepared to study the effects of poor planning in selected
projects of ECWC and will expect to add some input in improving construction project
management.

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1.3. Research Objectives and Research Questions

1.3.1. Research Objective

1.3.1.1. General Objective

 To identify the effects of poor planning in the construction industry by conducting detail
assessment in Ethiopian Construction Works Corporation.

1.3.1.1. Specific Objective

 To propose solutions to overcome the existing problems.
 To investigate good planning techniques and measures.
 To initiate further studies in the area.

1.3.2.Research Questions
 What are the effects of poor planning in Ethiopian construction industry?
 How do poor planning affects construction projects?
 What are the key measures that should be taken to improve planning in project
management?
 What are the measures taken by the company to alleviate problems occurred as a result of
poor planning?

1.4. Scope of the Study

The research will be conducted in Ethiopian Construction Works Corporation whose head office
is found in Addis Ababa, Ethiopia. In addition to the head office, two project sites, Kality-
Housing Project and Goro/Road Project in ICT Park, which are found in Addis Ababa will be
visited. Since the corporation runs different type of construction activities all over the country,
the research results will help to understand the major effects of poor project planning and the
remedial measures to alleviate such problems.

1.5. Significance of the Study

The purpose of this study will be to identify and analyze the major effects of poor planning in
Ethiopian construction industry and investigate suggested solutions. As the selected firm is an
ideal example of construction companies, which involve in different types construction activities
and in different areas, the following significant expected outcomes can be used as an important
reference document.

 The study will suggest solutions or measures to be taken for identified shortcomings
regarding the project management challenges with respect to poor planning.
 The study will justify the need to identify the effects of poor construction project
planning.

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  In addition, it will be used as springboard for interested researchers
 It will provide lessons for project managers and planners to prepare effective project
planning.
 It is also intended to give sound recommendation for project planners and implementers
regarding major problems, prospects and challenges of poor planning.

1.6. Limitation of the Study

The major limitation of the study is that, the scope of the study will only be limited to one
feasible company and therefore the results to be found will only provide partial information
compared to more than two sample companies.

1.7. Organization of the Study

The research will be organized as per the following ways shown in the table.

Table 1: Organization of the Study

Chapters Description of Research Contents

Preliminaries (Prefixes)  Cover page

 Acknowledgements
 Table of contents, List of Tables, List of Figure
 Acronyms (if any)
 Abstract

Chapter One: Introduction  Study Background and introduction of the study

 Problem statement
 Research objective, questions and hypothesis
 Significance, Scope and Limitations

Chapter Two: Related  Different literatures review in planning and impact of

Literatures Review planning in construction industry (Globally and
nationally)

Chapter Three: Research  Target population, sample size and sampling techniques
Method and Data  Type and Method of Data Collection
Collection  Method of data analysis

Chapter Four: Result and  Presentation and interpretation

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Discussion

Chapter Five: Conclusion  Conclusion based on the research findings

and Recommendation  Recommendations

References  Referencing books, journals, research papers and

citations

Appendixes  Interview questions and questionnaires

 Other important documents

1.8. Definition of Key Terminologies and Concepts

1.8.1. Conceptual Definition

Poor planning can be defined as wrong and unpredictable allocation of resources, such as, time, money
and manpower for specific purpose. This will be clearly specified in the research paper.

1.8.2. Operational Definition

The operational definition of poor planning will be the measurable value after the completion of the
research analysis.

2. Literature Review

Planning is one of the best ways of effective project management. Investing on planning will
help to manage the entire project smoothly (Meri Williams, 2008). It will help to understand the
project properly, to design appropriate approaches, for timely follow up of progresses and it
provides directions (Meri Williams, 2008).

Inadequate planning is one of the causes of project failure (Disconza, R. and Forman J.B, 2007).
Poor planning in project management is the biggest mistake and its results are poor time
management, poor in defining objectives, un-set out budget and dissatisfied customers, lack of
support from stakeholders, exposes the project to unpredicted risks and problems (Copper Team,
2016). One of the top consequences of poor planning is project failure (Tracey Sharp:
Simplilearn Community member, 2015).

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Construction industry is one of the largest industries in the world which runs projects with large
amount of money. The industry has many problems because of its complicated nature of
operation.

In Ethiopia, construction industry is the fastest growing sector. Its percentage share to the GDP
at constant basic price has increased from 4.3% in 1993 E.C to 5.8% by 2002 E.C according to
MIDC’s Construction Industry First Draft Policy made in 2012. Currently, as a result of different
project management problems, the sector is facing difficulties in accomplishing its vision. In the
country, delay of projects as a result of poor planning is becoming a common phenomenon.
Therefore, the research is intended to investigate the effects of poor planning in the construction
industry by conducting a study in Ethiopian Construction Works Corporation. This company is a
newly established local company based on the council of Ministers Regulations in December 18,
2015 (http://www.ecwc.gov.et) and I have selected it since it one of the biggest companies in the
country.

3. Research Method and Data Collection

3.1. Data Type and Source

Qualitative data will be used from both primary and secondary sources. The primary data sources
will be selected sample groups, which are technical and managerial staffs in the head office,
Kality project site and Goro/ICT Park project sites.

3.2. Research Design

The research type will be Analytic based on purpose and qualitative based on the data. It will be
designed to study the major impacts of poor planning in Ethiopian construction industry and
clearly elaborate the key outcomes which will help for anyone who is interested in the topic. The
study will be conducted in Ethiopian Construction Works Corporation.

In the study, there will be one independent and one dependent variables. The independent
variable is Poor Planning and the dependent variable is Ethiopian Construction Industry.

Table 2: Expected Outcome of variables

No Independent Variable Nature Expected Outcome

Variable Name

1 Poor Planning Discrete Negative

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During the research period, qualitative data from primary and secondary sources will be
collected and analyzed based on the methods indicated in this proposal. After the data is
collected, it will be processed and analyzed using the appropriate tools as indicated in the other
sub title.

3.3. Target Population

The target population of the study will be Key management and technical staffs in ECWC’s head
office and its two selected project sites found in Addis Ababa at Kality and Goro.

3.4. Unit of Analysis

The unit of analysis for the study will be identified as the technical and managerial department of
ECWC since this group of staffs have direct relation with the research title.

3.5. Sample Size and Sampling Techniques

From the study population, individual respondents will be selected using purposive or non -probability
sampling technique in order to find quality and well organized data.

3.6. Method of Data Collection

The primary data will be collected by using administered questionnaires and semi-structured
interview and these will be conducted with key informants at head office and its two project
sites. Likewise, secondary data will be collected by reviewing different books, journals, study
papers, citations and related posts from the internet. In addition, other secondary data will also be
collected from available and important related documents in the organization.

During the data collection period, inclusive questionnaires will be prepared by myself from
March 1, 2020 to March 15, 2020. Then, I will hire and train two individuals and create a
satisfactory awareness about the topic as well as the questionnaires in order to increase the
quality and importance of the data to be gathered.

After organizing the manpower, the next step will be data collection. The primary and available
secondary data collection at the two project sites will be conducted from March 25, 2020 to
March 30, 2020 by the two individuals which will be hired and trained by me for this purpose.

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And the interview at head office will be conducted by myself from March 20, 2020 to March 24,
2020.

Finally, I will conduct a joint discussion with my employees about the information gathered in
order to alleviate any confusion and miss understanding. After that, all collected data by three of
us will be compiled by me and will be ready for data entry and analysis.

3.7. Method of Data Analysis

The data analysis method which will be used for the study is non-parametric inferential analysis
since the dependent variable is categorical. And the data will be tested using Spearman
correlation coefficient. In addition, SPSS computer software will be used.

4. Cost and Time Budget

4.1. Cost Budget

Table 3: Financial schedule

JAN 2019 to Dec 2019 Jan 2020 to Dec 2020

Fee
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
1. Two Employee salary 12,000
2. Transportation cost 800
3. Stationaries 200
4. Printing and others 500 500
Total Direct Cost 14,000 birr

4.2. Time Budget

Table 4: Time schedule

JAN 2019 to
Jan 2020 to Dec 2020
Dec 2019
Activities
Q
Q2 Q3 Q4 Q1 Q2 Q3 Q4
1
1. Review of literature
2. Proposal Development
3. Questionnaires preparation
4. Data collection

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5. Editing and Data entry
6. Data analysis
7. Organization, presentation and reporting