The construction industry is inherently multidisciplinary and has adopted manyintellectual and technical business improvements from other industries in an effort to optimizeproductivity. In construction, management inactivity is the root cause of 30% of non-productive time. This has created an opportunity and need for standardized and structured repeatable procedures for new managerial strategies.
A theoretical framework for Organizational Intelligence (OI), which encompasses theprocedural ability of an organization to efficiently process, support, measure and reason through management issues, is proposed. The elements of organizational intelligence are divided into three types of intellectual capital: Human Capital, Organizational Capital, and Relational Capital. The performance of an organizational activity depends on the quality of these capitals that are available within an organization. An organization's Human Capital (HC) is the human resources within the organization that can be deployed to acquire and apply its knowledge to perform, respond, or control designated work with available organizational assets. Organizational Capital (OC) refers to the assets available to the organization to support the performance oforganizational activities Relational Capital (RC), which combines human capital andorganizational capital to perform, is needed specific organizational activities.
In addition, the research uses human cognitive abilities as the basis of a fundamentalstructure from which to form new organizational cognitive abilities that are capable of presentingmanagement processes as critical value creations. Organizational cognitive ability is suggested todefine appropriate organizational resources in order to integrate and determine a rationalselection of applicable technologies and improvements. This ability can develop knowledge with interconnected variables, namely intellectual capital, managerial process, and performance, all of which support organizational intelligence. From the theoretical framework for OI, a prototype (Intelligibility Learning Model), which determines the role of relationships in an organization's operation and use of resources, isformulated. A case based research then applies the prototype to a managerial process in theconstruction industry. The case research demonstrates that the Intelligibility Learning Model (ILM) could be use effectively by industry decision makers to improve performance oforganizational activities. The identification and application of a theoretical frameworkconstitutes the foundation of a new managerial theory, Organizational Intelligence Management.It thus provides a fundamental foundation that explains how the construction processes,knowledge, skills, and resources used for managerial activities function. This theory contributes and establishes a better understanding of management, from organizational resources through to final production.
