HUMAN RESOURCE PLANNING AND HUMAN RESOURCE

DEVELOPMENT IN CONSTRUCTION

TAN HAN LENG

A project report submitted in partial fulfillment of the requirement for the

Award of the degree of Master of Science ( Construction Management)

Faculty of Civil Engineering

University Technology of Malaysia

MARCH, 2005

PSZ 19:16 (Pind. 1/97)

UNIVERSITI TEKNOLOGI MALAYSIA

BORANG PENGESAHAN STATUS TESIS

JUDUL : HUMAN RESOURCE PLANNING AND HUMAN RESOURCE DEVELOPMENT IN CONSTRUCTION

SESI PENGAJIAN : 2004/2005 (II)

Saya TAN HAN LENG (HURUF BESAR)

mengaku membenarkan tesis (PSM/Sarjana/Doktor Falsafah)* ini disimpan di PerpustakaanUniversiti Teknologi Malaysia dengan syarat-syarat kegunaan seperti berikut:

1. Tesis adalah hakmilik Universiti Teknologi Malaysia. 2. Perpustakaan Universiti Teknologi Malaysia dibenarkan membuat salinan untuk tujuan

pengajian sahaja. 3. Perpustakaan dibenarkan membuat salinan tesis ini sebagai bahan pertukaran antara

institusi pengajian tinggi. 4. **Sila tandakan ( )

SULIT(Mengandungi maklumat yang berdarjah keselamatanatau kepentingan Malaysia seperti yang termaktub didalam AKTA RAHSIA RASMI 1972)

TERHAD(Mengandungi maklumat TERHAD yang telah ditentukanoleh organisasi/badan di mana penyelidikan dijalankan)

TIDAK TERHAD

Disahkan oleh

(TANDATANGAN PENULIS) (TANDATANGAN PENYELIA)

Alamat Tetap: 20, JALAN MUHIBAH,TAMAN ALMA, 14000B.M. PULAU PINANG

Tarikh: 11 MARCH 2005

PM DR. ABDUL KADIR B. MARSONO

Nama Penyelia

Tarikh: 11 MARCH 2005

CATATAN: ***

Potong yang tidak berkenaan. Jika tesis ini SULIT atau TERHAD, sila lampirkan surat daripada pihakberkuasa/organisasi berkenaan dengan menyatakan sekali sebab dan tempoh tesis ini perlu dikelaskan sebagai SULIT atau TERHAD.Tesis dimaksudkan sebagai tesis bagi Ijazah Doktor Falsafah dan Sarjana secara penyelidikan, atau disertasi bagi pengajian secara kerja kursus dan penyelidkana , atau Laporan Projek Sarjana Muda (PSM).

“I declare that I have read through this project and to my opinion this project report

is adequate in term of scope and quality for purpose of awarding the degree of

Master of Science(Construction Management)”.

Signature : …………………….

Supervisor : PM DR. ABDUL KADIR B. MARSONO

Date : 11 MARCH 2005

Signature : …………………….

Co-Supervisor : DR.ARHAM ABDULLAH

Date : 11 MARCH 2005

“I declare that this project report is the result of my own research work except as

cited in reference. The project report has not been accepted of any degree and is not

concurrently submitted in candidature of any degree”.

Signature : ………………………….

Author’s Name : TAN HAN LENG

IC No : 760622-07-5317

Date : 11 MARCH 2005

To my beloved family and friends.

ACKNOWLEDGEMENT

There author would delighted to express sincere gratitude and appreciation to

supervisor and co-supervisor, Associate Professor Dr. Abdul Kadir Marsono and Dr

Arham Abdullah respectively for their supports, noble guidance and valuable advices

throughout the progress of completion this Master project. Consecutively, their role

significantly essential in empower the synergism force that would allow me to

confront with challenge and experiencing the learning process in completing task.

Besides, the author also takes this opportunity in devoting deepest thanks to

respective parties in contributing the effort to success of the study, either directly or

indirectly. Promptly, author special thanks to fellow friends for theirs emotional

support and inspiration.

Finally, author also would like to dedicate appreciation to author’s family, for

theirs countless moral support and concern to author for indulging self goals and

passion.

ABSTRAK

Industri pembinaan merupakan industri yang beroperasi secara berkumpulan

gerak kerja yang diversi. Malahan, pengurusan isu dalam sumber manusia

merupakan sesuatu tugasan yang mencabar. Dalam pada itu, Moden SHRM atau

Pendekatan Pengurusan Sumber Manusia Strategi Moden dalam menerapi aspek

sumber manusia dengan mengutamakan sumber manusia bertujuan meningkatkan

pretasi kumpulan dalam projek dan membangun kebolehan persaingan organisasi.

Dalam pada itu, Perancangan and Pembangunan sumber manusia adalah bahagian

yang paling mustahak dalam pengurusan sumber manusia berlandaskan asas industri

pembinaan yang meluas. Kajian dijalankan semata-mata untuk menguji tahap

penerapan perancangan dan pembangunan sumber manuisa dalam projek pembinaan.

Kajian and bertujuan memaksimumkan dan mendalami arena istimewa berbentuk

perancangan organisasi serta pembangunan kumpulan untuk memperhebatkan pretasi

project. Ia juga bertujuan untuk menyelesaikan masalah isu – isu berkenaan seperti

kekurangan pekerja yang mahir, kumpulan pekerja yang berubah, kekurangan dalam

latihan yang berkesan and ujian pretasi. Kesimpulannya, kajian berasaskan situasi

terkini memutuskan bahawa secara ideal semua fakta practikal hebat mesti dipertikai;

tetapi hanya 3 teknik dipraktikan secara nyata; kesemua teknik applikasi adalah tidak

digalakkan kerana halangan seperti kurang galakan daripada pihak atasan. Demi

memberangsangkan applikasi pelbagai kaedah pemulihan situasi sepatutnya

diterapkan. Kajian juga memutuskan bahawa memperhebatkan pratikal dalam

Perancangan and Pembangunan sumber manusia dapat menyalurkan kesan yang

positif dari segi meningkatkan pretasi projek pembinaan.

ABSTRACT

Construction industry is deems to operate by diversify workforce. Hence

managing human resource issue deems to be a challenging task. Apparently, Modern

SHRM or Strategic Human Resource Management approach in cultivating human

resource aspect in order to capitalize human resource towards improvement of

project team performance and building organizational competitive advantages.

Nonetheless, Project Human Resource Planning and development is an essential

portion in managing human resource within a diversifying construction nature. This

study carried out in particular to examine the extent of implementation Human

Resource Planning and Development in construction project. The core emphasize of

the study toward optimizing specific area of organizational planning and team

development in enhancing project performance and towards catering the problems

faced such as shortage of skilled employees, transient workforce, lack of effective

training and performance appraisal. Conclusively, the study of current scenario that

ideally the best practice factors are to be considered but only 3 techniques are being

practice in reality; the discouraging in practicality of others recommended techniques

and tools due to major limitation such as lack of management support. Apparently,

the study suggested numerous improvement methods could be adopted to induce the

practicality. The study result also indicates through enhancing practicality in Project

HR Planning and Development would contribute significant positive impact towards

improving construction project performance.

CONTENTS

CHAPTER CONTENTS PAGE

DECLARATION ii

DEDICATION iii

ACKNOWLEDGEMENT iv

ABSTRAK v

ABSTRACT vi

CONTENTS vii

LIST OF FIGURES xii

LIST OF TABLES xv

LIST OF APPENDIX xvii

CHAPTER 1 INTRODUCTION

1.1 Introduction 1

1.2 Problem Statement 3

1.3 Aims of the Study 5

1.4 Objectives of the Study 5

1.5 Scopes of the Study 6

1.6 Important of the Study 6

4.6 Job Analysis and Design –Consideration of

Project HR Planning Factor Based on the

Level of Agree 69

4.7 Practices Standard Procedures- Application

of Project HR Planning Tools and

techniques Based on Common Level 71

4.8 Practices Roles and Responsibilities

Delegation- Application of Project HR

Planning Tools and Techniques Based on

Common Level 72

4.9 Proper Supporting Document- Application

of Project HR Planning Tools and

Techniques Based on Common Level 73

4.10 Improve Quality Depend on Quality

Personnel- Consideration of Project HR

Development Factor Based on Level of

Agree 75

4.11 Staff Retention to Support Short and Long

Term Growth –Consideration of Project HR

Development Factor Based on Level of

Agree 76

4.12 Proper Rewarding Scheme to Improve

Employee’s Motivation-Consideration of

Project HR Development Factor Based on

Level of Agree 77

4.13 HR Technology Enhances Process

Efficiencies and Improves Cost Control

Capacity-Consideration of Project HR

Development Factor Based on Level of

Agree 78

4.14 Continuous Improvement Through

Recognizing Outside Environment-

Consideration of Project HR Development

Factor Based on Level of Agree 79

5.1 Illustration Table of Finding Result for

Objective 1 87

5.2 Illustration Table of Finding Result for

Objective 2 87

5.3 Illustration Table of Finding Result for

Objective 3 88

5.4 Illustration Table of Finding Result for

Objective 4 88

5.5 Current Construction Project HR Planning

and Development Towards Positive Impact

in Performance 89

LIST OF TABLES

TABLE NO. TITLE PAGE

2.1 Soft HRM Rhetoric Hiding Grad HRM

Reality in The Construction Industry 17

2.2 The Overview of Organizational Planning

(HR Planning) 44

2.3 The Overview of Team Development

(HR Development) 49

4.1 Analysis Result of Consideration in Project

Planning (Organizational Planning) 62

4.2 Analysis Result on the Application of Tools

and Techniques in Human Resource

Planning (Organizational Planning) 69

4.3 Analysis Result of Consideration Factor in

Project HR Development

(Team Development) 73

4.4 Analysis Result on the Application of Tools

and Techniques in Project Human Resource

Development (Team Development) 79

4.5 Analysis Result on the Impact of Project HR

Planning and Development in Performance 81

4.6 Analysis Result for Causes and Limitation

Leading Towards Failure in Project HR

Planning and Development 83

5.1 Problem Statement Versus Resolution

Through Positive Impact in Application of

Project HR Planning and Development 90

5.2 Major Causes and Limitation Versus the

Recommended Improvement Method 90

LIST OF APPENDIX

APPENDIX NO. TITLE PAGE

APPENDIX A Questionnaire Form 99

APPENDIX B Technical Paper 106

CHAPTER 1

INTRODUCTION

1.1 Introduction

Competitive pressures, both in domestic and in global markets, shifted the

desired outcomes in management of the relationship away from compliance and

quiescence in employee behaviour toward a more positive commitment towards

customers and business requirements. People are individuals who bring their own

perspectives, values and attribute to organizational life, and when managed

effectively, these human traits can bring considerable benefits to organizations.

Construction organization has tended to shed labour as part of a survival strategy,

retaining and retraining the more skilled employees or those whose skilled employees

could less easily be replaced. (Mullins, 1999).

Referring to statement by Peters and Water, 1982, mentioned about that

people should no longer be treated as a ‘cost’, but as a company ‘asset’ and central

source of competitive advantages. Construction is considers a labour-intensive

2industry. Basically, the concept of labour intensity is relative between industries.

There are complexities interfaces of different personnel within construction industry

whether in-house or within an organization, or even between inter-organization.

Hence, people are the foci of alternative views if the industry. Construction exists to

contribute to the satisfaction of human needs and wants; people organize it; it employs

people. It is the personal interactions which generate demands and determine the

nature of supply responses.

Nonetheless, complexities in human interactions within construction industry

will bring about the construction-based issues of human resource. There are countless

examples of corporate and project crises in the construction sector which have arisen

as the result of people behaviour, and it would seem that human resource or HR has

the potential to eliminate more construction risk that any other management approach.

( Loosemore, 2000). Concurrently, a strategy approach in management of human

resource is essential to encounter the occurred problems and enhance the organization

competitiveness.

The comprehensive study is necessary in identifying needs in efficient

management of strategic human resource focus on the Human Resource Planning

(Organizational planning) and Human Resource Development (Team Development)

aspects in minimizing the problems arose in construction industry with possible

resolution in provision of Human Resource Technique and tools. Enormously, the

study tends to optimize human resource capital utilization in enhancing the

organization competitive advantages.

31.2 Problem Statement

Managing people is definite a challenge both at strategic or even

organizational levels. Thus, human resources are well managed and developed in

alignment with the organizational goals and strategies. Defining improvement in

human resource management effectiveness is to be cultivated in order to encounter the

arisen issues that exist in current construction environment as below:

Shortages of skilled employees – Human resource (HR) are vital to all

industries, including the construction industry, As claimed by Paul Manning, the chief

operating officer of the construction firm C. Raimondo & Sons, “Maintaining an

attracting quality people is a priority”. (Tulacz, 2000). The issue has become

especially important in the construction industry in recent years because there is a

growing shortage of qualified workers in that field. Levy, for examples, notes a “

disturbing trend” in construction in which there is a “growing shortage of skilled

workers and experienced managers”. As Levy further claims, “the scarcity of both

skilled trades – people and experienced will place more emphasis on the need to

increase the quality and quantity of training in order to produce more effective and

productive workers” (Levy, 2000).

Transient workforce - The necessities in employment of a transient workforce

which can move from one project location to the next and poses many problems for

workers, such as managing work life balance issues. Transience arises within

projects, since the composition of teams normally changes during different project

stages, involving people from many organizations, backgrounds and locations. Male

employment leads to many challenges, such as skills shortages caused by recruiting

from only a portion of population, difficulties in the management of equal

opportunities and workforce diversity, and considerable challenges in terms of

4creating an accommodating atmosphere in which individuals’ diverse skills and

competencies are fully utilized (Dainty, 2000).

Modifying Labour Market and workforce composition- T. Micheal Goodrich,

the CEO of BE & K Inc, agrees that the construction labour market is changing, but

he believes this is due to less or decrease in the number of qualified workers than it is

to the changing demographic of the workforce. As Goodrich says in this regard: “We

have more women and latinos working in the construction industry today, and we

must be prepared to respond to these changes”. He also mentioned the workgroup

ages growing older over the time (Leonard, 1998).

Lack of effective training and performance appraisal- the important factor in

implementing human resources management in construction is in need of effective

training and ways in measuring the performance of their workers training. A system

of “performance measures” is needed in order to monitor improvements among

construction teams. (Nesan and Holt, 1999).

Workers participation Know How- employees are de-motivated when they are

not “empowered” and not feeling that their participation is important in making

company successful. In the words of Nesan and Holt, “the participative approach

addresses development of good supervisor-subordinate relationships and cohesive

work groups in order to satisfy both social needs and the needs of business demand”

(Nesan and Holt, 1999). As Olomolaiye and others agreed that money is powerful

motivator and claim well-designed reward system will lead to higher productivity for

the employer and extra pay for the employees for their effort. (Olomolaiye,

Jayawardane, and Harris, 1998).

5 Management commitment and Leadership- construction firms need to take

into consideration commitment and leadership on the part of management, and the

needs to be efficient communication between managers and workers.(Nesan and Holt,

1999). The reluctant in taking initiative in planning and implementation of human

resource management will lead to inefficiently may affect productivity and

performance.

1.3 Aims of The Study

Construction industry is versatile; one of the factors due to cross intellectual of

human capital, the efficient human resource management is essential for an

organization survival and remains its competitiveness. Thus, the main aim of this

project is to examine extend of SHRM application focus on Project Human resource

planning (Organizational Planning) and Human Resource Development (Team

Development) aspects in action within construction project. Concurrently, identify the

impact of application in performance and the implication of possible causes &

limitation in application.

1.4 Objectives of the Study

1) To study the best practices factors consider in Project Human Resource

Planning and Development.

62) To study the application of selective Project Human Resource tools and

technique in construction project.

3) To study and assess the impact in Construction Project Human Resource

towards performance.

4) To identify and discuss the causes and limitation for Project Human Resource

Planning and Development.

1.5 Scopes of the Study

1) The scope of study covers construction practitioner’s namely contractor,

consultant, and client/developer in the project level (Traditional Design-Bid-

Build). The study will only focused on medium to large scale organization.

2) The study of selective tools and techniques focused on Project Human

Resource planning and development in specific area of Project Organizational

Planning and Team Development.

1.6. Important of the Study

The study is being carried out to examine the effectiveness in application of

human resource management technique in the aspect of HR planning and Human

7Resource Development in the construction project that may reflect the project team

performance that affect organization competitiveness through promoting human

resources capital competencies by minimizing the problem arose in construction. The

identification of causes and limitation in practicality of the Project HR Planning and

Development may help in drawing out an appropriate improvement method in

refining the condition in further encouragement of common utilization of tools and

techniques in Project HR Planning and Development.

8

CHAPTER 2

LITERATURE REVIEW

2.1 Introduction

This chapter covers the study of aspects elaborating the concepts and practices

in perspective construction industry, Design-Bid –Build method, Human Resource

Management, Strategic Human Resource Management in Construction. The study

also embraces coverage of Project level SHRM namely Project Human Resource

Planning and Human Resource Development. Eventually, the element of specific

elements in Project Human Resource Planning and Development – Project

Organizational Planning and Team Development is included.

92.2 Overview of Construction Industry

2.2.1 General perspective of Construction Industry

Construction profession offers opportunity to create works for the benefit of

mankind, but in turn those that work in the profession accept substantial

responsibilities. Construction industries served as an industry that contributes to the

growth of country economy and promote a continuous improvement to environment

by enhancing mankind lifestyle. Type of construction into residential,

commercial/institutional building, industrial, and heavy/high-way segments can break

down construction. Most contracts are awarded to a general contractor who awards

subcontracts to specialty contractors as practice in traditional design-bid-build

procurement system method. The most common project delivery system used in

commercial construction, heavy/highway work, and for nearly all government

construction is design-bid-build, also known as competitive low bid; but that system is

slowly being replaced by other procurement systems such as design-build, negotiated

contracts, job-order contracting, construction management and so on

Within an construction industry that comprises of various organization group

together their effort in forming a teams in running the project by performing

intellectual effort in devoting individual capability in completing project within

project deliveries criteria. As for the traditional design-bid-build procurement system,

the project players many involved the professional in the industry such as

owners/clients, Constructors group (main contractor, subcontractors, suppliers and

etc.), Consultants groups (Architects, Civil and Structural Engineers, Quantity

Surveyor, Land surveyors, M&E Engineers and etc.). (Clifford J. Schervayder,

Richard E. Mayo, 2004).

10

Final disposal-demolition

Disposal/transfer of ownership, etc.

Performance-occupation

Constructiondocument

Brief

Constructors group Main contractor, subcontractors,suppliers, managers,operatives, etc.

Consultants group architects, engineers, surveyors, etc

Client group Client financiers, tenants, etc.

Figure 2.1 Overview of provision of construction and main grouping of humanresource(D. Langford, M.R. Hancock, R Fellows & A. W. Gale, 1997)

2.2.2 Design-Bid-Build in view

The conventional method of procurement is based upon the rigid separation of

design and construction. It is also known as the separate trades approach. Where the

conventional approach exists, client using it as the basis of his project organizations

11need to define his objective. The client is hoping the design team can produce a

suitable design and coordinate the work of the construction teams needed to produce

the end product. The design team prepares detailed drawings, specifications and often

bill of quantity (BQ). The tender documents are prepared and the contract awarded,

usually to the contractor with the lowest bid or the one with the most appropriate

capability in the performance among the lowest bid. During the construction

commences on site, the contractor will carry out the work through the co-operation of

its office site and site team in managing the progress through close monitoring the

subcontractor and supplier. Architect act as Superintendent Officer and the consultant

team then to advise on contract and technical matters and supervise the progress in

respect of client; in order to ensure the work in completed within the project

specification and deliveries.

Client

Design Organization

Contractor

Structural

M & E

Architect/EngineerSubcontractors/Supplier

Domestic Nominated

Figure 2.2 The Conventional System (Keith F. Potts, 1995)

122.2.3 Management Levels of Construction

Organizational considerations lead to a number to a number of hierarchical

levels that can be identified in construction. This derives from a project format.

Decision-making at levels above the project relate to company management

considerations. Decisions within the project relate to operational considerations (e.g.

selection of production methods) as well as the application of resources to the various

construction production processes and work task selected to realize the constructed

facility. Specially, four levels of hierarchy can be identified as follows:

1. Organizational- the organizational level is concerned with the legal and

business structure of a firm, the various functional areas of management, and

the various functional areas of management, and the interaction between head

office and field managers performing these management functions.

2. Project - the project level vocabulary is dominated by terms relating to the

break down of the project for the purpose of time and cost control (e.g., the

project activity and the project and the project cost account). Also, the concept

of resources is defined and related to the activity as either an added descriptive

attribute of the activity or for resource scheduling purposes.

3. Operation (and Process) - the construction operation and process level is

concerned with technology and details of how construction is performed. It

focuses on work at the field level. Usually a construction operation is so

complex that it encompasses several distinct processes, each having its own

technology and work sequences. However, for simple situations involving a

single process, the terms are synonymous.

134. Task- the task level is concerned with the identification and assignment of

elemental portions of work to field units and work crews. ( Daniel W. Halpin.

Ronald d. W. Woodhead, 1998).

2.3 Human Resource Management (HRM)

Management process consists of five basic functions that is planning,

organizing, staffing, leading, and controlling. Human Resources Management refers

to the practices and policies you need to carry out the people or personnel aspects of

your management job. The scope or activities of the Human Resource Management

refers to the practices and policies you need to carry out the people and personnel

aspects of your management job. These include, conducting job analyses (determining

the nature of each employee’s job), planning labour needs and recruiting job

candidates, selecting job candidates, orientating and training new employees,

managing wages and salaries (determining how to compensate employees), Providing

incentives and benefits, appraisal performance, communicating (interviewing,

counseling, disciplining), Training and developing, building employees commitment

and also the consideration of equal opportunity and affirmative action, employee

health and safety, Grievances and labour relation. (Gary Desler, 2000).

142.3.1 Human Resource Definition and Concept

Commonly, the Human Resource function and activities can be categorize in

to Human Resource Planning, Recruitment and Selection of Employees, Orientation

and Planning, Recruitment and Selection of Employees, Orientation and Training,

Employees Performance Evaluation, Compensation and Benefits, Safety and Health at

Workplace, Industrial Relation and International Human Resource.

Thus the current contemporary definition of HRM could be:

A managerial perspective, with theoretical and perspective dimensions, which argues

for the need to establish an integrated series of personnel policies consistent with

organization strategy, thus ensuring quality of working life, high commitment and

performance from employees, and organizational effectiveness and competitive

advantage. (Huczynski and Buchanan, 2001).

2.3.2 Characteristics of Human Resource Management (HRM)

The characteristic features of HRM as a new paradigm for managing people

are as below stated:

It stresses the importance of gaining commitment to the organization’s mission

and values- it is’ commitment-oriented’.

15It emphasizes the need for strategic fit – the integration of business and HR

strategic.

It is a top-management driven activity.

The performance and delivery of HRM is a line management responsibility.

It contribute in measurable ways to the creation and maintenance of

competitive advantage, and the focus is on adding value, especially for

shareholders.

It involves the adoption of a comprehensive and coherent approach to the

provision of mutually supporting employment policies and practices, for

instance the development of integrated HR policies and practices

(configuration or bundling).

Importance is attached to strong cultures and values.

It is performance-oriented, emphasizing the need for ever-higher levels of

achievement to meet new challenges.

Organizing principles are elastically and decentralized with flexible roles, a

focus on process (how things are done, especially across traditional

organizational boundaries), and more concern for teamwork- flexibility and

teambuilding are important.

There is strong emphasis on the delivery of quality to customers and the

achievement of high levels of customer satisfaction

16Rewards are differentiated according to performance, competence,

contribution or skill. (Michael Armstrong, 2000).

2.3.3 The Soft ‘HRM’ and Hard ‘HRM’ in Construction

The argument surrounding personnel v. HRM has been polarized by the debate

surrounding the ‘hard’ and soft’ views of HRM. The hard view of HRM focuses on

the resource (or cost) dimension, whilst the soft view emphasizes the human-input

dimension. However, Sisson, 1994 argues that the language of soft HRM can be used

to mask what is in reality a hard HRM approach. Below Sisson’s the cynical analysis

of the rhetoric embodied by the soft HRM concept is shown against the hard HRM

realities that reflect the approaches of organizations managing the function today.

17Table 2.1 Soft HRM rhetoric hiding grad HRM reality in the construction industry

(Sisson, 1994)

Soft HRM rhetoric Hard HRM reality

Employees first Market pressure

Efficient production Lean production

Flexibility Re-engineering, scientific management

Core and periphery Outsourcing, reducing commitments

Devolution Reducing middle management

Right sizing Redundancy/downsizing

New working patterns Part-time instead of full time jobs

Empowerment Devolving risk and responsibility

Training and development Multi-disciplinary, doing more with less

Employability No employment security

Recognizing individual contributions Undermining trade union bargaining

Team working Reducing the individual’s discretion

Although this could be seen as somewhat disparaging view of HRM, it

probably reflects the approach taken towards people management by many modern

businesses in the construction industry (Druker et al. 1996). For example, increasing

salary levels has traditionally been used as a key retention strategy, despite its

ineffectiveness in securing the long-term commitment of employees (Knutt 1997). If

the hard HRM approach reflects reality, then the construction industry has a long way

to go in achieving what proponents of contemporary HRM want to achieve in the

management of employee/management relationship.

The construction industry provides an interesting research alternative to other

sectors because of the effect of contracting arrangements and the problems of

18certainty in a constantly changing business environment, with less scope for

improvement of productivity through routine work systems or for technological

innovation than in some other industries.

The construction industry is also interesting because it has a network of

personnel practitioners. Construction members of the Institute of Personnel and

Development (formerly the Institute of Personnel Management) sustain regular

contracts and formal parts of the private sector. The term ‘construction’ embraces a

wide variety of organizations in this con text, and membership of this forum includes

multinationals that have a product division concerned with the construction industry;

national contractors whose main business may be within construction but who may

have one or more product divisions concerned with manufacturing or quarrying; and

other business, including small number that are based in professional construction

services.

While the organizations are diverse, they share a common element in terms of

construction activity, and on this basis their representatives are able to sustain a

formal program of meetings and less formal contracts and networks. The main

objective is to consider whether changing practices identified in other sectors have

impacted on the management of people within the industry. The factors to be drawn

out previously are the development of ‘hard’ human resource management,

particularly towards the manual workforce. However, similarly present are factors that

would suggest the centrality of more ‘soft’ human resource management practices; the

importance of design, innovation and teamwork suggest the appropriateness of more

developmental and commitment-based approaches. Given that construction

companies have shed much of their more operational employment through

subcontracting, and have focused on retaining the professional and skilled employees,

in many ways one would expected a longer term developmental approach to these

staff. At the same time, longer-term changes in the labour market, related to

19demographics and to changes in the demand for skilled and educated people in the

economy overall, required a proactive and longer-term approach to manpower

planning (Agapiou, et, al, 1995).

Construction managed by the people who are concern with cost and

production. They are more influenced by the value of ‘harder’ personnel issues and it

is challenge to achieve credibility for ‘softer’ issue. The survey result done by this

paper Greenwich survey suggest few signs of fundamental or far-reaching innovation

in human resource management practice in the construction industry despite the

changing shape of the construction companies. There are some, through limited, signs

of change in respect to expectations of training and employee development in the

future. (Janet, Geoffrey, Ariane, Lesley, 1996).

2.4 Strategic Human Resource Management

2.4.1 Strategic Human Resource Management Definition and Concept

One of the aspects that define the transition from ‘personnel’ management to

HRM is the need to integrate HR planning within the strategy of the organization.

Considering the HRM as strategic function rests on the belief that an organization’s

human asset offer it a sustainable source of competitive advantage. Indeed, some take

the radical view that SHRM offers organizations the main source of competitive

advantages in the long term. Armstrong, 1996 suggests that SHRM: concerned with

the development and implementation of people strategies which are integrated with

corporate strategies and ensure that the culture, values and structure of the

20organization and the quality, motivation and commitment of its members contribute

fully to the achievement of its goals.

SHRM comprises a set of practices designed to maximize organizational

integration, employees commitment, flexibility and quality of work. Strategic human

resource management is concerned with creating a competitive advantage for

organizations by closely aligning human resource processes, such as HR planning,

recruitment, selection, training, appraisal, and reward systems to direction where

enhance the improvement toward organizational improvement that may bring about

the organizational performance aspects such as process improvement, expert

facilitation of internal interventions; productivity improvement, monitoring and

evaluation, measuring and assessing climate and culture, improving communication

processes; Team building and team effectiveness improvement; cohering management

teams and Rationalizing the complexities of organizational structure ( Min-Huei

Chien, 2004).

The philosophy of CIBA, the pharmaceuticals company, of business-driven

strategic human resource management, as described by Morton ,1999, is as follows

Quality improvement depends on high-quality personnel at all levels;

Staff retention is important to support growth;

The balance of motivation and cost reduction requires a clearly thought out

reward strategy that has maximum impact without sending costs out of

control;

21New HR technology can be used to capture process efficiencies and control

costs;

HR specialists will become subject experts in a team of internal consultants

rather than members of the old-style hierarchy.

2.4.2 Strategic Human Resource Various Best practices Approaches in

Construction

There is a set of best HRM practices and that adopting them will lead to

superior organizational performance. The set of approach introduced by Pfeffer’s,

1994 list the seven HR practices of successful organizations; These are Employment

security, selective hiring, self-hiring, self-managed teams, high compensation

contingent on performance, training, reduction of status differentials, sharing

information.

Apparently, thinking strategically about HRM demands that an organization

look beyond the here and how to consider the external and long-term factors likely to

impinge upon its business over the next few years. Later, Anthony et al, 1996 suggest

six key characteristics of a strategic HRM approach, which provide a framework of

requirements for SHRM formulation, and we discuss them in relation to construction

below:

It recognizes the outside environment: this comprises a set of opportunities

and threats to the organization that must be recognized and taken account by

strategic decision-making process. They can include social, demographic and

22labour-market changes, legislation, economic conditions, technology, political

forces, etc. All of these factors can impact on an organizations’ ability to

recruit, develop and retain people who will take the organization forward.

It recognizes competition and labour-market dynamic: these affect

wage/benefits levels, unemployment rates and working conditions and define

the necessary conditions that an organization must provide to remain

competitive in the labour market. For example, a construction company may

recognize a future national shortage of quantity surveyors and seek to address

this potential shortage by reviewing its recruitment and training activities,

perhaps by sponsoring students or actively recruiting targeted campaigns.

Alternatively, it could retrain some of its other staff in surveying skills to

offset the shortage.

It has a long-range focus: a strategic focus implies that consideration is given

to the long-range direction and objectives of the organization. This will

depend on the management philosophy of the organization regarding where it

wants to position itself.

It has a decision making focus: this means that the organization consciously

choose to direct and commit its human resources in a particular direction.

It considers all stakeholders: a strategic approach demands that the

organization take account of the views and interests of all stake-holders,

internal and external.

It is integrated with corporate strategy: perhaps the most important

characteristic is that HR strategy should be integrated should be integrated

with the firm’s overall corporate strategy. For example, if a construction

company wants to build a reputation for quality rather than low cost, then it

will need to begin changing the culture of its workplace. This may involve

23retraining staff, recruiting new staff whose will champion the new philosophy,

putting new reward system in place, etc.

As according Mullins, 1999, to achieve the platform of SHRM must involve:

1. Designing an effective organization structure

An effective SHRM policy can only take place within an effectively designed

organizational structure. This can be viewed at two levels:

The overall operation of the organization in terms of how it manages and

distributes work amongst various employee groups and functions in pursuance

of the strategic goals.

The design of the organization in terms of hierarchies, roles, and relationships.

2. Staffing the structure with suitable people

This staffing function is also known as employees resourcing’ and forms one

of the most challenging aspects of the SHRM function. The major components of the

employee resourcing are recruitment and selection, deployment and team formation,

performance management, retention and training career development, dismissal and

redundancy (Taylor, 1998). Employee resourcing activities aim to ensure that the right

numbers of employees with the right skills and competencies are in the right place at

the right time.

243. Managing the employment relationship

This is particularly the case in geographically dispersed project-based

industries such as construction, where line managers have the responsibility for many

of the day-to-day aspects of the SHRM function. Whilst formal employment contracts

can define many aspects of the employee-employer relationship, they cannot delineate

every aspect, and socially constructed expectations and obligations fill the gaps that

are left. These less formal expectations are known as psychological contracts, which

describe the beliefs of each party as to their mutual obligations within the employment

relationship (Herriot, 1998).

Thus, let us that previews the successful construction organizations for its best

practice in strategic human resource management as below:

1. BE & K of Birmingham, Alabama, chief executive officer has claimed that

human resource professionals play an important role in the “strategic planning

processes” of the construction industry. This is because human resource

management helps managers to understand their employees and to thereby

match the skills of those employees to the organization’s overall needs

(Leonard, 1998).

2. Centex corporation, of Dallas, Texas, is yet another construction company that

has attained a high level of success by making use of the concepts of human

resources management. Centex’s success was due in part to the fact that

Hirsch had “spread out his management power” (Palmeri, 1999). Secondly,

motivates individual managers by increasing their organizational responsibility

and by rewarding them for turning in larger profits. Netherless, Centex also

initiate to retain high-performing executives who might otherwise go to other

companies, or start their own companies (Palmeri, 1999).

253. TDI industries, a Dallas-based contractor, the organization has been rated as

an excellent place for people to work as a result of its “ servant as leader”

management philosophy. Ben Houston, the president of TDI, is said to be

continually seeking new ways to train and empower TDI partner to make their

work more fulfilling. (“The Top Newsmakers”, 2000).

4. Webcor Builder, San Mateo, California, The President of the company

revealed that Andy Ball, had success largely due to the implementation of

Human Resource Techniques. Ball urges hat places a great deal of emphasis

on the importance of giving his employees effective training. Apparently, most

of the employees have received training primarily in college. As a result, they

are not yet prepared for the special challenges that they will face when they

start to engage in construction work in the field. Thus, in training project

managers, the company will “often have them go out in the field and work for

a concrete crew doing surveying, form design and layout to gain an

understanding of how things go together in the filed and see the problems the

workers face on a daily basis” (Kopochinski, 2000).

5. Thompson-McCully, Asphalt, Michigan. Thompson drew out that he adopted

his uncle Wilford McCully, former co-owner of the company management

approach, “ aware of the value of good people”. Thompson also recognized

the importance of findings ways to motivate his employees, for instance

“challenges people to achieve more by giving them more responsibility” In

addition to that, the organization also establishment of some scholarship funds,

in return of loyalty- the employees received annual bonuses. (Krizan, 2000).

Human resources are essential to the construction industry. Through practicing

the philosophies of strategic human resource management, it is possible to develop a

high level of consistency between organizational and individual needs. The most

successful leaders are those who possess a fine balance between company’s interests

26and employee’s welfare. Strategic HRM (SHRM) in terms of conventional

contingency approach (linking HRM practices to strategy, as well as a resourced-

based view of the firm that may leads to developing “organizational capability” as

competitive advantages.

2.5 Human Resource Planning in SHRM in Construction

2.5.1 Human Resource Planning an overview

Review by the Simon SK Lam and Jon Schaubroeck, 1998, HR planning has

been identified as an important means to develop a clearer focus of the function on the

organization’s business and it is a critical aid in identifying the areas in which it must

excel in order to be successful. These generally include setting up formal objectives,

identifying appropriate organizational strategies and searching for any innovative HR

application.

The primary objective of HR planning is to incorporate forecasts about the

types and numbers of workers who will be needed to meet longer-term demands,

taking into consideration various programs such as career development, executive

training, external recruiting, succession planning, employee appraisal and retirement

programs. Operational data enables HR planners to accurately predict the costs and

feasibility of HR initiatives based on known parameters. This date can be employed

within HR planning to ground forecasts and projects about demand and supply. For

example, a shortfall or a surplus of a certain type of skill means little without knowing

how that skill contributes to the resource conversion process, what it costs and

27whether other skills or technologies can be substituted in place of it. Another example

is without HR planning an organization that adapts its strategy to cope with a

changing environment may find that much of its workforce has obsolete skills due to

of changing technologies and that an appropriate skill base can be attained only

through hurried, expensive and risky training and recruitment programs. Thus the

concept of strategic HR planning recognizes that those who are most knowledgeable

about the organization’s workforce should themselves be employed optimally by

building commitment to organizational strategy across different levels and functions

of the organization. There are four essential HR planning objectives were identified as

‘Strategic impact and communication’, ‘control’, “co-ordination’ and ‘clear-

objective’.

A formal process of HR planning may better focus and clarify the various

functions of HRM in the organizations and avoid inconsistencies among various

practices, even when their integration is not a priority. As firms move towards a

strategic orientation in HRM, the need fro integration among various HR practices

increases (Delery and Doty, 1996).

282.5.2 Human Resource Planning Process in Construction Project

Demand forecast Supply forecast

Analysis of requirement:Numbers, skills and behaviours

Forecast of activity levels

Business Plan

Action Planning: Recruitment, training, downsizing, increasing flexibility

Forecast of future requirements

Figure 2.3: Human Resource Planning Flow Chart adopted sources from Taylor, 1998

Any organization including construction based company whether main

constructor, consultant or developer must analyses current and future markets and

ensure that it the right number of people with the required skills to exploit them

successfully. This is the essence of the human resource planning function. Assessing

the available human resources and relating these to potential future market

opportunities enables judgments to be made about resourcing requirements which will

form the basis of recruitment and staffing-development plans. These must be closely

aligned with wider corporate planning and budgeting.

The competitive tendering process, which creates uncertain workloads,

coupled with cyclical nature of the construction market makes the HR planning

29process difficult. It does so by facing HR managers with the dilemma that laying off

staff in response to a downturn may pose problems of recruitment when an upturn

returns. It is for this reason that construction companies may decide to hold an

apparently inefficient surplus of labour during recession periods. Human resource

planning approaches used to mitigate some of these problems comprise four basic

operations, which are outlined below.

2.5.2.1 Needs Analysis

The first step in human resource planning is needs analysis, which is the

assessment of current and future business needs. This is achieved through the careful

analysis of an organization’s future goals and the market for its product and services.

This applies as much to projects as it does to normal business organizations. In

particular, organization which are growing rapidly or operating within a very

turbulent environment need to conduct frequent reviews of their human resource

planning policies to avoid the possibility of labour or skills shortages restraining

growth. In detail, the stages of needs analysis involve:

a. Identifying what jobs need to be done, now, and in the future.

b. Identifying the technology people will need to do these jobs effectively, and

therefore the skills they will need.

c. Identifying the knowledge and qualifications required – qualifications will

indicate knowledge levels and may be important to an organization’s profile.

30d. Identifying personal requirements – types of personality that fit with the

organization’s culture and ethos.

e. Identifying performance standards expected to assess individual suitability on

the basis of past performance.

The strategic nature of the need analysis requires the involvement of senior

managers.

2.5.2.2 The Evaluation Current Resources

The next step in human resource planning is to evaluate current human

resources, in term of people’s skills, interests, abilities and experiences. When

compared to the SHRM plans, this will identify skills ‘gaps’ that need filling and

resource deficiencies that need addressing. However, the existence of deficiencies

does not necessarily indicate the need for an external recruitment policy, since the

necessary skills may be obtainable from existing human resources through retraining

programs or structural changes to the business. An adaptable multi-skilled workforce

is essential in enabling organizations to respond quickly to the highly dynamic reality

of the modern business world. In this sense, the maintenance of an efficient database

of existing employees is extremely important for an organization. Such as database

should contain information about employees’ interests, experience, training and

qualifications obtained before and during their period of employment.

31This will also allow the development of the individual to monitor and action

taken should they not be developing and contributing to the organization’s strategic

objectives. For example, Telstra, Australia’s largest telecommunications organization,

established such a database to monitor the organization’s implementation of strategic

occupational health and safety plans. These plans contained stringent requirements for

employees to undergo occupational safety and health training each year, and these

could be tracked through a central database. Employees’ training was audited during

routine occupational health and safety management audits, and managers who had not

released employees fro training could be identified using the database.

2.5.2.3 Job Analysis and Design

The task of collecting information about existing human resources and the jobs

they do and then analyzing how an organization can restructure itself to meet current

and future business needs is called a job analysis. Job analysis should be seen as a

process involving the following series of step:

a. Examine the complete organization and the fit of each person and job

to future needs.

b. Identify deficiencies/misfits.

c. Redesign misfit jobs and people to better suit an organization’s future

needs. This may involve modifying elements, duties and tasks

associated with a particular position and retraining those who perform

the tasks.

32Data for job analysis is usually collected via questionnaires, interviews,

observation and/or job dairies/logs. To enable the job analyst to develop an unbiased

picture of a job its important to collect this information from variety of sources –

operatives, supervisors, high and low performers, males and females, older and

younger incumbents, etc. The emphasis should be on the identification of the inputs

(i.e. the skills and competences required of the job-holder), the process (how they

apply these skills and competences to the tasks at hand) and the outputs of these

activities. (Particularly with regard to the value that they add to the organization)

(Armstrong, 1991)

2.5.2.4 The Analysis of Internal Availability

Before committing to external recruitment, an organization should check the

current and future availability of internal staff. This involves analyzing the future

movements of people in terms of promotions, transfers, retirements, terminations and

resignations. Some changes are easier to predict than others, and in this sense these

will always be some reactive element to an organization’s SHRM policy. However,

every attempt should be made to predict these trends so that an organization does not

suffer temporary periods of short staffing.

The human resource planning process will enable an organization to compare

future needs with availability of the internal resources. Following these analyses, the

organization will have ascertained its needs with regard to internal staff-development

activities and external recruitment. It will also use the findings to help define its

overall SHRM approach and to decide where to target its resources to ensure that it

does not suffer from skills shortfalls.

332.5.2.5 Analyzing Employee Turnover and Throughout

Employee turnover should be analyzed for two reasons: to assess the numbers

of employees likely to be replaced in the future and to be ascertain why people are

leaving the organization so that action ca be taken to retain them. An appropriate level

of annual staff turnover is deemed by man organizations to be around 8 per cent. This

allows a sufficient influx of new people, who bring with them new ideas, innovative

practices and energy, which in turn promote organizational development. Thus some

degree of wastage is desirable. However, excessive wastage can be damaging to an

organization in terms of replacement costs and the loss of knowledge to potential

competitors. At project level such problems can just as acute. For example,

Loosemore, 2000, showed how changes in project personnel during project result in

the loss of knowledge about potential problems, which then grow into major crises.

Furthermore, Chapman, 1999, identified the problems that changes in personnel could

cause for the efficacy of the design process during a project. He noted that the amount

of project information developed becomes so voluminous that it cannot be transferred

in its entirety to an incoming team member. Moreover, it is important to note that

much of the historical design and development of construction projects centers around

responding to design issues and problems as they arise. Many of the steps and

decisions taken during its development are not documented in a formal way, but are

retained informally by the project participants. This informal knowledge is very

important in running projects effectively, which means that the loss of core project

members during a project can create major problems.

Most organizations calculate an annual turnover index by diving the number of

people leaving over the year by the number employed over the same period and

multiplying by 100. Whilst this percentage measure is simplistic, a range of other can

deepen it analyses, which provide insights into the types of employee that are leaving.

34(such as department, length of service, etc).Monitoring the predictors of turnover is

also important in managing the performance of employees who may want to leave

their job but who perceive the alternatives to be no better. In addition, human resource

planning also demands that an assessment is made of the impact of promoting and

moving people around the organization. The promotion of one employee to fill a

position left vacant by someone leaving or a growth in the business can set off a chain

reaction of promotion and transfers.

2.5.2.6 Preparing Job Descriptions and Specifications

Whether an organization decides to fill skills gaps internally from exiting

employees or externally, job descriptions and specifications will need to be created

and used as a basis for recruitment. A job description is an outline of the specific

responsibilities and duties associated with a job, and a job specification is an outline

of the educational experience and skills necessary to perform well on a job.

Whilst it is important that job descriptions and specifications are clear an

unambiguous, the nature of construction activity is such that they should retain a

degree of flexibility in order to cope with the fluctuating demands of the projects.

People should be made aware of this when they take up employment, so that

resistance to redeployment and retention is minimized. For example, reporting

relationships may need to be left fairly fluid, as project-team composition may vary

depending on the stage of development. Similarly, the duties attached to a particular

post may have to be amended to suit particular project types and/or client demands.

However, this type of change can be minimized by seeking long-term relationships

with clients via partnering arrangement.

352.5.3 Human Resource Development in Construction Project

Human resource development represents the developmental side of the SHRM

cycle, in improving career management and the performance of the individual. The

rationale behind investing in HRD is that investing in people in the right ways will

ensure that they continue to contribute to the direction in which the business wants to

go. Falling to address HRD needs inevitably leads to the reopening of skills gaps,

which the above processes have been designed to fill.

Despite the importance of HRD, there is evidence that it is under-utilized

within the construction industry. For example, Hancock et al., 1996 found that, whilst

large construction companies generally understood the concepts of HRD, only around

half actually practiced it. HRD reflects the industry’s economic reliance on ‘hard’

systems approaches, or those commonly attributed to ‘personnel-management’

practices. In the light of the industry’s revival in the late 1997, Knutt made a series of

recommendations to promote loyalty and motivation among construction employees,

including extended training schemes, career-review systems and performance-

management systems. Together these mechanisms can ensure that the organization

meets it successions needs, and that it has people moving through the organization

with the requisite skills and abilities to fill vacancies and drive the business forward.

2.5.3.1 Staff Training and Development

Education and training are the other important factors for organizational

performance. I fact, training must be tied to the enterprise’s strategic business

36requirements and maintain the organization’s core competencies in every filed at

every level. Opportunities for lifelong learning should be provided to all levels of

employees which will promote organizational performance directly ( Chien, 2003).

Employee training and development should closely interact with staffing and

performance activities. It is a vehicle for facilitating organizational and individual

learning through training and development (Sisson and Storey, 2000). Systematic as

well as ad-hoc development programs help to ensure that staffs have skills required

for their current roles and can develop those required for future posts. It can also work

as a motivating factor: significant training indicates commitment to people and the

recipients are more likely to feel valued. A construction organization must consider

training both to integrate employees into the organization and then to facilitate their

development and retention.

Orientation programs- with increasing understanding of organizational

culture, learning processes and the important role of knowledge within organizations,

issues of orientation and staff development have been attracting considerable

attention. It is now recognized that organizations have distinct cultures and that new

employees must go through a process of orientation/socialization to avoid the

inefficient effects of culture shock when they join a new organization. Within

construction firms the process of orienting and inducting new employees is also

important for health and safety reasons. Explaining how systems and procedures work

in order to protect employees are key in ensuring that everyone working on a project

complies with the health and safety ethos.

There is considerable evidence to indicate that those who go through an

effective orientation or induction programs are considerably more effective than those

that do not. However, in reality most organizations give new employees no more than

37a quick tour around the workplace, with cursory introductions to their co-workers.

Certainly, at construction project level there is very little evidence of comprehensive

orientation programs other than in the most innovative projects. Those orientation

programs that exist are typically superficial and factual, being restricted to mandatory

requirements which have been imposed upon the employer by legislation relating to

health and safety, etc. Often they are delivered by union officials. Such programs

completely miss the point of orientation, which is to acclimatize people to their new

job environment, to an organization’s goals and objectives, to its culture and to the

expectations associated with their roles. Essentially, orientation should be a process of

socialization and acclimatization, which needs to occur gradually over a period of

time, particularly in large organizations where there is much information to absorb.

The basic principles of a well-designed orientation programs:

a) It should involve a series of incremental stages, the first beginning with the

most job-specific, relevant and immediate information and the latter with more

general policies about the organization as a whole

b) It should occur at a pace with the employee is comfortable. Four sessions over

twelve weeks is widely accepted as ideal.

c) The most significant aspect of orientation is the human side – giving new

employees information about their supervisors and co-workers, telling them

how long it should take to reach effective work standards, and encouraging

them to seek help and advice when they need it.

d) New employees should be mentored by an experienced and accessible worker

during the induction period.

e) Introductions to co-workers should be gradual. A superficial introduction on

the first day is insufficient.

38

f) There should be a period of lower work commitment to allow people to get

their feet on the ground.

g) Supervisors should continue orientation after the twelve-week formal process

is complete. Channels of communication to the SHRM department should be

kept open to prevent isolation.

h) There should be a follow-up after six months to collect feedback from the new

recruit to identify and redress any problems.

The important of the follow-up cannot be overstated. If problems are dealt with

early on there is far less likelihood that the employee will be lost due to

misunderstandings or through being unable to conform to the organization’s

procedures or processes. Follow –ups can also be used to establish the efficacy of the

recruitment and selection procedures. If people are being recruited who find it

difficult to integrate into the organization, then this suggests that there is something

wrong with the recruitment criteria and /or selection mechanisms, which can then be

amended accordingly. (Noe et al, 2000).

2.5.3.2 Training and Development Programs

If employee orientation involves getting the employee started in the right

direction, personnel department is about keeping them there and ensuring that they

contribute and add value to the business, the continuous development and training of

staff is essential to maintaining a healthy, motivated and adaptable workforce. It is

39critical to ensure that people have skills that they need to perform their job and

advance along their career path, Indeed, with the construct ion industry’s need to

recruit from an ever-wider range of disciplines, fewer and fewer employees starting a

new job will have the necessary skills to do their job effectively, which makes training

a necessity from the very beginning of a new job, particularly for new or recent

graduates.

Essentially, the object of the training is to alter permanently the behaviour of

the organizational goals. It should provide opportunities for an employee to learn job-

related skills, attitudes and knowledge. Since training is a form of learning, to be

successful it is essential that employees are motivated to learn, are able to learnt

behaviour encouraged and reinforced in the workplace. Arguably the most important

purpose of training in the modern dynamic business environment is to bring about a

learning culture. There are three different states of learning within an organization:

Individuals learning things

Organizational learning, where the organization collectively develops ways in

which it can learn collectively;

The learning organization, where the central organizational goal is systematic

learning.

The learning organization is one in which this level of learning is embraced and a

high level of dialogue exists, enabling employees to explore organizational issues

freely in search of creative solutions to problems. Thus the concept of learning

organization effectively questions the individualization of learning, and suggests that

the social and systematic dimensions of learning are key in determining how

organizations acquire, develop and deploy their skills ( Keep and Rainbird, 2000).

40Unfortunately, Druker et al, 1996 found that most construction companies are

far from learning organizations and there is no evidence to suggest that the same is not

true for projects. The challenge of learning from project to project faces most

construction firms, and one useful mechanism to capture and share experiences in

projects is to conduct focus groups participants as part of a post-project review (or

post mortem). The data collected can then be compiled and shared with other project

teams within the company. Unfortunately, this is often difficult, since most projects

do not end suddenly, but with a gradual dissipation of staff on to other projects. The

end of a project is therefore difficult to define, and learning would involve extracting

people from other projects for a day or so. However, all the evidence indicates that the

inconvenience is worth it.

Drucker et al, 1996 also discovered that training was in decline within the

construction industry and found little evidence of old training initiative being replaced

with new ones. Indeed, many companies were closing down their management-

development centres. They also argued that the severe skills shortages, which

predictably emerge in every construction boom, were largely the result of growing

self-employment. The small subcontractors, which employ over 85 per cent of the

industry, are so highly geared that long term investments in training have been

impossible in the traditional short-term boom-bust cycle of the construction industry.

Nevertheless, training is still a fundamental requirement for improving

organizational performance and filling skills gaps. Much of this information will be

available from the job-analysis process, and these skills gaps will identify the needs

and the objectives of the programs in the short, medium and long term. They will also

identify the type of training which specific employees will needs,

41An important part of developing a training program is the decision of whether

to use on-the-job or off-the-job training. In terms of avoiding the potential problems

of persuading project managers to release people from a project, on-the-job training

offers a significant advantage over off-the-job training and is used for more than 60

per cent of training provision in the construction industry. Probably the biggest

advantage is that people are still available to deal with problems occurring in the

workplace. However, the close proximity to work also has the potential to reduce

training effectiveness significantly by distracting those who attend. Furthermore,

remaining on site can make the training seem less attractive and important than a day

away from the project environment. However, one unobtrusive and stimulating

method of on-the-job training is job rotation or transfers, which involve employees

swapping jobs or site for periods of time to give a range of skills and experiences. Job

rotation is particularly useful for providing people with insights into

interdependencies with working colleagues and for placing their own project in

context. Another unobtrusive method is mentoring or coaching, where a supervisor is

given formal responsibility to train an employee. If managed well, this is an effective

means of learning, although it depends upon the quality of the mentor and their ability

to impart knowledge and form personal relationships with individual members of

staff. In this sense it is crucial that potential mentors are given the proper training,

resources and time to carry out this task. Simply asking a busy project manager to

mentor his or her staff on top of existing workloads will be unlikely to succeed.

Finally, one method of on-the-job training which is now becoming more popular

relies upon company intranets. This is an internal company or project internet site

which can deliver programs which have been customized for a particular site or

company. Intranets can facilitate multimedia delivery, virtual reality, and online

discussion groups and can support interactive training software. Employees can

complete training modules at their own pace, and progress can be monitored centrally.

In terms of off-the-job-training, the choice is lectures/ discussion groups run

by training companies, distance learning programs, programmed learning or external

42mentoring/coaching. The most frequently used approach is for a trainer to give a

lecture and involve the trainee in a discussion about the material to be learnt.

Alternatively, one could organize a series of courses and arrange some kind of

accreditation through a private accrediting body or university. Choosing a respected

partner and capable delivered is critical to the effectiveness of this approach in term of

knowledge, reputation, experience, track record and presentation technique. As for all

training material, it is essential that the organization undertaking the training be

closely involved in developing and scrutinizing the material to be delivered. It is

essential that it is seen as relevant, useful and interesting to the people involved.

Innovative delivery mechanisms should also be considered to facilitate the training

process. Distance learning is set to expand dramatically over the next decade, with

companies creating strategic alliances with educational institutions to form virtual

universities where students can ‘pick’ and mix individual modules to suit own needs.

Clearly, the main advantage of distance learning is its flexibility and opportunity to

study without regular attendance at a remote educational establishment.

( Noe et al. 2000)

Training and development are two basic components of SHRD. Since training

is a form of learning, to be successful it is essential that the employee is motivated to

learn, is able to learn, is able to transfer their learning to the job, and has their learnt

behaviour encouraged and reinforced in the workplace. Those country whose

economies have performed well in recent years, such as Germany and Japan, have

been those emphasize the importance of training. This is also reflected at industry

level, where those industries which invest in training tend to perform better and have a

more positive public image than those which do not. This subsequently influences the

quality of new recruits to industry, which in turn perpetuates the problem, leading to

skills shortages and deficient performance in terms of product quality and delivery

efficiency. Indeed, concerns over the quality of recruits to the construction industry

have been a major problem in recent years and this has led to a range of training

initiatives. In essence, training represents the mechanism by which organizations

43invest in the intellectual capital of their workforce, and it lies at the very heart of

achieving a vibrant, healthy, motivated, happy and efficient organizational culture.

A reason for the acceptance of training as a core component of SHRM relates

to the incontrovertible link between key SHRM-related concepts and the need to

impart the requisite skills, knowledge, attitudes and abilities to employees. For

example, encouraging employees to work in a way which leads to better-quality

products and therefore a more positive organizational image demands that they are

trained and developed in a way which strives to achieve quality improvements.

Another example, in construction the past two decades has seen countless changes and

advancements in procurement practices, IT, construction technology, and legislative

demands and, perhaps most importantly, client demands in the industry. Each change

has brought with it a need for construction companies to adapt to new demands and

ways of working that cannot be achieved through external recruitment of skills alone

( Holden, 1997).

Naoum, 2001 put forward a simple framework when discussing training in the

context of construction, which comprises the five steps listed below:

Define a training policy, which involves defining clear links between

organizational objectives and training provision.

Identify staff training needs, expressed in terms of both organizational and

individual needs.

Prepare a training program which is carefully planned sequence of training

activities.

44Decide on methods for delivery, which could include formal or informal

approaches to training, including courses, training videos, job rotation or

special assignments.

Evaluate to review whether the training provision had the desired impact on

the performance of the organization.

2.6 Project Human Resource Management focus on HR Planning

(Organizational Planning) and HR Development (Team Development)

2.6.1 Application of HR Planning (Organizational Planning) in Construction

Project.

Project Human Resource Management includes the processes required to make

the most effective use of the people involved with the project. As defining the

processes Organizational Planning (HR Planning) – identifying, documenting, and

assigning project roles, responsibilities, and reporting relationship.

Table 2.2: shown the Overview of Organizational Planning (HR Planning)

A) Inputs B) Tools & Techniques C) Outputs

1. Project Interfaces 1.Templates 1. Role and responsibility

2. Staffing

requirements

2. Human Resource

Practices

2. Staffing management plan

3. Constraints 3. Stakeholders analysis 3. Organization chart

4. Supporting Detail

45

A) Inputs to organizational Planning (HR Planning)

1. Project Interfaces.

Organizational interfaces-formal and informal reporting relationships

among different organizational units. Organizational interfaces may be

highly complex or very simple. For example, developing a complex

telecommunications system may require coordinating numerous

subcontractors over several years, while fixing a programming error in

a system installed at a single site may require little more than notifying

the user and the operations staff upon completion.

Technical interfaces- formal and informal reporting relationships

among different technical disciplines. Technical interfaces occur both

within project phrases (e.g. the site design developed by the civil

engineers must be compatible with the superstructure developed by the

structural engineers) and between project phrases.

Interpersonal interfaces – formal and informal reporting relationships

among different individuals working on the project.

2. Staff requirements

Staffing requirements define what kinds of competencies are required

from what kind of individuals or groups and in what time frames.

Staffing requirements are a subset of the overall resource

requirements identified during resource planning.

463. Constraints

Organizational structure of the performing organization- an

organization whose basic structure is a strong matrix means a relatively

stronger role for the project manager than one whose basic structure is

weak matrix.

Collective bargaining agreements – contractual agreements with union

or others employee groups may require certain roles or reporting

relationships

Preferences of the project management team – if members of the

project management team have had success with certain structures in

the past, then they are likely to advocate similar structures in the

future.

Expected staff assignment – how the project is organized is often

influenced by the competencies of specific individuals

B) Tools and techniques for Organizational Planning ( HR Planning)

1. Templates- Although each project is unique, most project will assemble

another project to some extent. Using the role and responsibility definitions or

reporting relationships of a similar project can help expedite the process of

organizational planning.

2. Human resource practices – Many organizations have a variety of policies,

guidelines, and procedures that can help the project team with various aspects

of organizational planning. For example, an organization that views managers

as “coaches” is likely to have documentation on how the role of “coach’ is to

be performed.

47

3. Stakeholder analysis – The identification of the stakeholders and the needs of

the various stakeholders should be analyzed to ensure that their needs will be

fulfill.

C) Outputs from the Organizational Planning ( HR Planning)

1. Roles and responsibility – Project roles (who does what) and responsibilities

(who decide what) must be assigned to appropriate project stakeholder. Roles

and responsibilities may vary over time. Most roles and responsibilities will be

assigned to stakeholders who are actively involved in the work of the project,

such as the project manager, other members of the project team, and the

individuals’ contributors.

2. Staffing management plan – The staffing management plan described when

and how human resources will be brought onto and taken off of the project

team. The staffing plan may be formal and informal, highly detailed or broad

framed, based on the needs of the project. It is a subsidiary element of the

overall project plan. Particular attention should be paid to how project team

member (individuals and groups) will be releases when they are no longer

needed on the project. Appropriate reassignment procedures may:

Reduce costs by reducing or eliminating the tendency to “make work”

to fill the time between this assignment and the text.

Improve morale by reducing or eliminating uncertainty about future

employment opportunities.

3. Organization chart- An organization chart is any graphic display of project

reporting relationships. It may be formal and informal, highly detailed or

broadly framed, based on the needs of the needs of the project. For example,

48an organizational breakdown structure (OBS) is a specific type of organization

chart shows which organizational units are responsible for which work

packages.

4. Supporting detail – Supporting detail for organizational planning varies by

application area and project size. Information frequently supplied as

supporting detail includes,

Job descriptions- written outlines by job title of the competencies,

responsibilities, authority, physical environment, and other characteristics

involved in performing a given job. Also called position descriptions.

Training needs- If the staff to be assigned is not expected to have the

competencies needed by the project, those competencies will need to be

developed as part of the project.

2.6.2 Application of HR Development (Team Development) in Construction

Project.

Team development includes both enhancing the ability of stakeholders to

contribute as individuals as well as enhancing the ability of the team to function as a

team, Individual development (managerial and technical) is the foundation necessary

to develop the team. Development as a team is critical to the project’s ability to meet

its objectives.

49Table 2.3: The Overview of Team Development (HR Development)

A) Inputs B) Tools & Techniques C) Outputs

1. Project staff 1. Team-building activities 1. Performance

improvements

2. Project plan 2. General management

skills

2. Input to performance

appraisals.

3. Staffing management

plan

3. Reward and recognition

systems

4. Performance reports 4. Collocation

5. External feedback 5. Training

A) Inputs to Team Development (HR Development)

1. Project Staff- The staff assignment implicitly define the individual

competencies and team competencies available upon which to build.

2. Project plan- Project plan describes the technical context within the team

operates.

3. Performance reports-performance reports provide feedback to the project team

about performance against the project plan.

4. External feedback- The project team must periodically measure itself against

the expectations of those outside the project.

B) Tools and Techniques for the Team Development (HR Development)

1. Team building activities- team building activities include management and

individual actions taken specifically and primary to improve team

performance. Many actions-such as involving non management-level team

members in the planning process, or establishing ground rules for surfacing

50and dealing with conflict-may enhance team performance as a secondary

effect. Team –building activities can vary from a five-minutes agenda item in

regular status review meeting to an extended, off-site, professionally

facilitated experience designed to improve interpersonal relationships among

key stakeholders.

2. General management skills – General management skills are particular

importance to team development.

3. Reward and recognition systems- Reward and recognition systems are formal

management actions that promote or reinforce desired behaviour. To be

effective, such systems must make link between project performance and

reward clear, explicit, and achievable. For example, the willingness to work

overtime to meet an aggressive schedule objective should be rewarded or

recognized, needing to work overtime as the schedule objective should be

rewarded or recognized; needing to work overtime as the result of poor

planning should not be. Developing an appropriate team mechanism in a

culture that prizes individualism may be very difficult.

4. Collocation involves placing of most active teams members in the same

physical location to enhance their ability to perform as a team. On some

projects, collocation may not be an option; where it is viable, an alternative

may be scheduling frequent face-to-face meetings to encourage interaction.

5. Training includes all activities designed to enhance the competencies of the

project teams. Training may be formal or informal, on-the-job or off-the-job

training. This part had being discuss very clearly on the review of HR

Development.

51C) Outputs from Team Development (HR Development)

1. Performance improvement -Team performance improvements can come from

many sources and can affect many areas of project performance; for example:

Improvements in individual skills may allow a specific person to perform

assigned activities more effectively.

Improvements in team behaviours ( eg. Surfacing and dealing with conflict)

may allow project team members to devote a greater percentage of their efforts

to technical activities.

Improvements in either individual or team competencies may facilitate

identifying and developing better ways of doing project work.

2. Input to performance appraisals- project staff should generally provide input to

the appraisals of any project staff members with whom they interact in a significant

way. (PMBOK Guide, 2000)

2.7 Project Team Performance Improvement to achieve Organizational

performance

Performance is one of the key terms of modern organization. “Performance”

from a process view, performance means the transformation of inputs into outputs for

achieving certain outcomes. Project informs about the relation between minimal and

effective cost, between effective cost and realized output (efficiency) and between

output and achieved outcome (effectiveness).of a certain project activities. Project

52deliveries may be in term of on time, cost effectiveness and quality standard

achievement. Apparently, it indicates the possible minimizing in human error,

conflict, motivation issue, high resignation rate, inefficient interfaces channel, slow

decision making process, unfair compensation, low team working cohesiveness,

possible delay. Organizational performance may be in tem of having low staff

turnover rate, low cost in operation, competent and motivated workforce, efficient

interfaces between employees, high staff commitment and motivation, organization

effort in life long attachment and learning with staff, captivate repetitive business and

etc. (Min-Huei Chien, 2003)

2.8 Impact of Project HR Planning and Development in Performance

a) Technical Performance- To measure what extend the technical requirements

specified at the commencement of the execution phase was achieved. For example:

human error, low skills level and possible delay.

b) Technical innovativeness- The success in identifying technical problems during the

project and solving them. For instance: improve ability in critical thinking and

problem solving ability.

c) Efficiency of project execution- The degree to which targets of time and cost were

met. For example: the achievement in target time, cost and quality standard.

d) Team performance and interfaces- The aspects in term of overall team result or

outcome in fulfilling the project desirable deliveries. The effect of good team

performance and interfaces may include reducing risk in conflict, improve decision

making process, and increase motivation level and team cohesiveness.

53e) Efficiency of project execution- The degree to which targets of time and cost were

met. For example: the project is deems to be achieving target time, cost, and quality.

f) Managerial and organizational competencies- The level in adaptation of corporate

culture or value in project team motivation and long term attachment with the

company.

g) Personal growth- The satisfaction of the project team, particularly in terms of

challenge and professional development.

h) Business performance- The commercial performance for business activities with

the capabilities in getting repetitive business, control the operation low and having a

low staff turnover rate.

CHAPTER 3

METHODOLOGY

3.1 Introduction

3.2 Methods of Data Collection

3.3 Primary Data Collection

During the questionnaire’s preparation stage

The questionnaires structure

3.4 Secondary Data Collection

3.5 Analysis Method

1. Average Index Formula:

a = Constant expressing the weighing given to each response (1 to 5)

X = n/N where, N = Total of response,

n = Frequency of the response

3.6 Flow Chart of Methodology

CHAPTER 4

RESULTS AND ANALYSIS

4.1 Introduction

Data from questionnaire are analysis to find out the response on possible

consideration on best practice factors, extend of practicality of selected tools and

techniques, assessment the performance impact in implementation, and finally it also

serves the attempt to identify the major causes and limitation for uncommon practices

in order to achieve the prescribed objectives mentioned in chapter 1.

Out of 100 questionnaires distributed, 70% responds rate of 70 respondents

feedback that comprise of 37 contractors, 26 representing consultants, remaining 4

numbers from Developers or clients, and another 3 are working with firm that running

its two business nature as contractor and developer. Eventually, the respondents

company possesses experiences in building and construction business, consultancy

services or even project development ranging from the most is 41.4% between 5 to 10

years and the least of 2.9% of responds between 25 to 30 years operating in the

62industry. In term of ages wise, the maximum 44.3% respondent’s ages categorize

between > 25 to 30 years, following up would be 18.6% between >30 to 35 years,

17.1% ranging between > 35 to 40 years, 14.3% (>20 to 25 years), and finally 1.4%

both from the ages >45 to 50 years and >50 years respectively, the ages level may

affect individual personal and commercial encounter or experience that may helps in

providing a better understanding of the industry and in better position in giving much

precise answer required y the questionnaires form.

Despite of that, the highest rate of 34.3% of the respondents having 2 to 5

years and 27.1% possess more than 5 years to 10 years working experiences in the

industry to ensure adequate knowledge in answering the formulated questionnaires.

4.2 Factors to be Consider When Performing the Task in Project HR

Planning (Organizational Planning) to Achieve Possible Best Practices.

Table 4.1: Analysis Result of Consideration Factors in Project HR Planning

(Organizational Planning)

Consideration factors in Project HR Planning Strongly Disagree to Strongly Agree Average Significant

(Organizational Planning) 1 2 3 4 5 Index Rank

Focused stakeholders & having corporate strategy 0.00% 7.10% 24.30% 57.10% 11.40% 3.73 6

Proper Organization structure/chart 1.40% 2.90% 15.70% 57.10% 22.90% 3.97 3

Organization structure with right people 0.00% 1.40% 18.60% 51.40% 28.60% 4.07 1

Evaluate current resources-ex. Skills, experiences 0.00% 4.30% 14.30% 60.00% 21.40% 3.99 2

Analysis internal availability-Demand vs Supply 1.40% 1.40% 27.10% 51.40% 18.60% 3.84 5 Job analysis & design-right candidates right position 1.40% 4.30% 20.00% 55.70% 18.60% 3.86 4

63The tables above indicate the result of analysis from the questionnaire answer

in regards of factors should be consider as possible best practices when executing the

task in Project Human Resource Planning emphasize on the selective area of

Organizational Planning. Most of the factors listed above achieving the Average

Index of more than 3.5 to not more than 4.5 rating scale region that directly indicate

all 6 factors should be consider when performing the Project HR Planning stage task.

Relatively, majority of the respondents aware and agreed the incident that it is

crucial to be taken into consideration the factors mentioned as a guideline and

fundamental aspects in performing task in Project HR planning. Among the top 3

factors from the chart having the higher score of Relative Index include “Organization

structure with right people-4.07”, “Evaluate current resources-3.99”, “Proper org

structure/chart-3.97”, Continuously, forthcoming individual elaboration in detail for

result of analysis in regards of factors as illustrated in the above table.

4.2.1 Focused Stakeholders and Having Corporate Strategy

The highest rates of feedback (57.10%) and second highest (11.40%) of

respondents make attempts to Agree and Strongly Agreed respectively that the

company should consider the aspect of stake holder’s benefits and generate corporate

level strategies when performing the task of Project Human Resource Planning in

regard to approach in project organizational level planning. Anyway there are

24.30% Disagree with the factor that the major focused and great concern should be

allocated to stakeholders and formulation of corporate strategy. In accordance to the

rating scaling tools, the result of 3.73 Average Index portraying that the average

respondents Agreed with the facts that the factors should be considered.

64

0.00%

7.14%

24.29%

57.14%

11.43%

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Strongly Disagree to Strongly Agree

Focused Stakeholders and Having Corporate Strategy

Figure 4.1 Focused Stakeholders and having Corporate Strategy –Consideration of

Project HR Planning Factor Based on Level of Agree.

4.2.2 Proper Organization Structure and Chart

Based the result as analysis cited that most respondents (57.10%) tends to

Agree and Strongly Agreed (22.90%) with the statement that proper and effective

organization structure or chart is a factors to be look into during Project Human

Resource Planning. The result of Average Index also signified the average of 3.97

responds Agreed that the factors should be in concerned.

65

1.40%2.90%

15.70%

57.10%

22.90%

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Strongly Disagree to Strongly Agree

Proper Organization Structure/Chart

Figure 4.2: Proper Organization Structure/Chart- Consideration of Project HR

Planning Factor Based on Level of Agree

4.2.3 Organization Structure and Chart Having the Right People

The most respondents ( 51.4%) and following up with 28.6% indicating that

they are Agreed and Strongly Agreed that the facts an organization should

incorporated with suitable team of people to enhance reporting, recording as well as

decision making process. The 4.07 Average Index result shown that most of the

responds agreed with the factors to be looking when planning for project HR.

66

0.00%1.40%

18.60%

51.40%

28.60%

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Rating Scale

Strongly Disagree to Strongly Agree

Organization Structure Having the Right People

Figure 4.3: Organization Structure having the Right People- Consideration of Project

HR Planning Factor Based on Level of Agree

4.2.4 Evaluates the current resources

The great number of respondents defines scale of 60% to Agree and 21.4% as

Strongly Agreed to determine that it is necessary to evaluate the existence and current

resources people, skills, interest, abilities and experience issue in Project HR Planning

stage. There are only minimum respondents with 14.3% and 4.3% Less Agree and

Disagree about the facts. Apparently, the Average Index also illustrated rating of 3.99

towards the factors determining the average respondent rate Agreed upon the facts

mentioned should be considered.

67

0.00%4.30%

14.30%

60.00%

21.40%

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Strongly Disagree to Strongly Agree

Evaluates the Current Resources

Figure 4.4: Evaluates the Current Resource- Consideration of Project HR Planning

Factor Based on Level of Agree

4.2.5 Analysis Internal Availability- Demand Versus Supply

Eventually, there are 51.4% respondents Agreed and 18.65% urged they

Strongly Agreed that analysis internal availability-demand versus supply is a to be

consider when performing the Project Human Resource Planning task. Although there

are total 29.95% respondents ranging from Less Agreed to Strongly Disagree, but yet

the Average Index indicate 3.84 showing in average the responds are declining

towards Agreeable manner.

68

1.40%1.40%

27.15%

51.40%

18.65%

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Strongly Disagree to Strongly Agree

Analysis Internal Availability - Demand and Supply

Figure 4.5: Analysis internal availability-demand versus supply-Consideration of

Project HR Planning Factor Based on the Level of Agree

4.2.6 Job analysis and design

The major factors of job analysis and design deem to be having an Agreeable

rate of 55.7% and Strongly Agreeable rate of 18.60%. Nevertheless, there are total of

25.7% of respondents disapprove the factors to be consider in Project HR Planning

but the Average Index of 3.86 indicate the average respondents agreed upon the facts

in reference to the rating scale.

69

1.40%4.30%

20.00%

55.70%

18.60%

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Rating Scale

Strongly Disagree to Strongly Agree

Job Analysis and Design

Figure 4.6: Job Analysis and Design-Consideration of Project HR Planning Factor

Based on the Level of Agree.

4.3 Application of Tools and Techniques in Human Resource Planning

(Organizational Planning)

Table 4.2: Analysis Result on the Application of Tools and Techniques in Human

Resource Planning (Organizational Planning)

Application of tools and techniques in HR Very uncommon to Very common Average Practicality

Planning (Organizational Planning) 1 2 3 4 5 Index Level

Practice standard procedures 1.40% 14.30% 24.30% 48.60% 11.40% 3.54 Common

Practices HR guidelines & procedures 7.10% 12.90% 34.30% 37.10% 8.60% 3.27 Less Common

Analyze constraint factors-org structure types 2.90% 15.70% 42.90% 31.40% 7.10% 3.24 Less Common

Analyze and prioritize benefits of shareholders 1.40% 14.30% 48.60% 28.60% 7.10% 3.26 Less Common

Practices roles and responsibilities delegation 1.40% 4.30% 20.00% 60.00% 14.30% 3.81 Common

Improve staff management plan 4.30% 20.00% 32.90% 34.30% 8.60% 3.23 Less Common

Practices formal and informal reporting relationship 8.60% 18.60% 45.70% 22.90% 4.30% 2.96 Less Common

Proper supporting document-ex. Job spec 2.90% 15.70% 27.10% 31.40% 22.90% 3.56 Common

70

As the table 4.2 presented that the result analysis on the application not all of

selective tools and techniques are consider encouraging and being adapted in reality,

as even though most of the respondents agree upon all the factors listed to be

considered in performing the task of Project HR Planning. The outcome cited that

only 3 techniques namely “Practice standard procedures”, “Practice better roles and

responsibilities delegation” and “Proper supporting document” are deem to be as

common practices being adopted in running a project in concern, achieving the

Average Index of 3.54, 3.81 and 3.56 respectively. The remaining 5 more tools would

being consider as between the range of neutral line ruling that it is either uncommon

or less commonly practices during the Project HR Planning stage. Concurrently, the

elaboration of result for 3 commonly practices tools will be discuss in detail as below.

4.3.1 Practice Standard Procedures

Most of the respondents (48.60%) cited that it is common and very common

(11.40%) upon that it is a practical application scenario that organization practices the

use of standard procedures in performing job activities and marking individual

responsibilities. This indicates that there are job specification and job description

clearly illustrated the job function, scope of work, who should do it and what should

be done, the skills and ability require and so on. Eventually, although 40% in total

indicated that uncommonly practices but the Average Index of 3.54 declining to the

scale showing the positive approach that it is an common practices that organization

utilization of standard procedures.

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1.40%

14.30%24.30%

48.60%

11.40%

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Very Uncommon to Very Common

Practices Standard Procedures

Figure 4.7: Practices Standard Procedures- Application of Project HR Planning Tools

and Techniques Based on Common Level

4.3.2 Practice Roles and Responsibilities Delegation

The respondent’s feedback rate of 60% and 14.30% for common and very

common rating showing that majority of the feedback urged that it is a common

practice for roles and responsibilities delegation served as portion of Project HR

Planning execution. It’s to be considered as good approach that a clear and

comprehensive job function definition and scope should perform in Project HR

Planning. Average Index of 3.81 also indicate the capacity of average voted towards it

is commonly practices that it would be a norm in anticipating roles and

responsibilities delegation techniques in the Project HR Planning stage.

72

1.40%

4.30%

20.00%

60.00%

14.30%

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Very Uncommon to Very Common

Practices Roles and Responsibilities Delegation

Figure 4.8: Practices Roles and Responsibilities Delegation- Application of Project

HR Planning Tools and Techniques Based on Common Level

4.3.3 Proper Supporting Document

The votes of 31.4% for common and 22.9 % for very common concluded the

maximum number of respondents approved with the facts that most of the

organization may practices compilation of proper supporting document such as job

specification as normal routine as part of the tools use in Project HR Planning. There

are minimum total votes of 45.50% (between neutral to very uncommon) cited it is

not a common practices industry in regards of the application of the mentioned

techniques. Conclusively, the Average Index still showing the margin of 3.56

indicating it is a common practice among the construction practitioner to be applying

as techniques in Project HR Planning.

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2.90%

15.70%

27.10%31.40%

22.90%

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Very Uncommon to Very Common

Proper Supporting Document

Figure 4.9: Proper Supporting Document - Application of Project HR Planning Tools

and Techniques Based on Common Level

4.4 Factors to be Consider When Performing the Task in Project HR

Development (Team Development) to Achieve Possible Best Practices.

Table 4.3: Analysis Result of Consideration Factors in Project HR Development

(Team Development)

Consideration factors in Project HR Strongly Disagree - Strongly Agree Average Significant

Development (Team Development) 1 2 3 4 5 Index Rank

Improve quality depend on quality personnel 0.00% 2.90% 8.60% 48.60% 40.00% 4.26 2

Staff retention support and long term growth 0.00% 2.90% 14.30% 55.70% 27.10% 4.07 4

Proper rewarding scheme-employee's motivation 0.00% 1.40% 8.60% 37.10% 52.90% 4.41 1

HR technology- process efficiencies & control cost 1.40% 2.90% 15.70% 50.00% 30.00% 4.04 5

Continuous improvement-recognize outside environment 0.00% 0.00% 11.40% 55.70% 32.90% 4.21 3

74As analysis result review all the 5 possible selected factors above in Project

HR Development in specific are of Team Development are receiving agreeable

citation from most of the respondents. This incident reflected that respondents aware

the important for the organization to look into the aspects of each of the factors during

the Project HR Development. Respectively from result tabulated signified that

industry personnel come to extend where top 3 major crucial factors to consider as

indicate by Average Index of 4.41, 4.26 and 4.21.

4.4.1 Improve Quality Depend on Quality Personnel

Out of 70 respondents, there are total of 62 respondents (88.6%) voted for the

scale of Agreed and Strongly Agreed with the factors mentioned above. Nevertheless,

there are a minimum number of 8 respondents dignified they are Less Agree and

Disagree with the above mentioned factors to be consider when executing Project HR

Development. The scenario indicate that training and developing quality personnel

may bring about the quality improvement because “ Human Resource is the greatest

asset of the company” Finally, the 4.26 Average Index elaborate the consequences

the average answer fall under the categories of agree region.

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0.00%

2.80% 8.60%

48.60%40.00%

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Strongly Disagree to Strongly Agree

Improve Quality Depend on Quality Personnel

Figure 4.10: Improve Quality Depend on Quality Personnel- Consideration of Project

HR Development Factor Based on Level of Agree

4.4.2 Staff Retention to Support Short and Long Term Growth

From the analysis reveal 55.7% out of 70 respondents agree that “Staff

retention support short and long term growth” should be having factors to be consider

during Project HR Development stage. Another 27.10% also Strongly Agree with the

facts, son there are only leave behind a minor group number of 17.20% respondents

disapproved with the statement. Nonetheless, most of the feedback Agreed (Average

Index: 4.07) in conjunction with the factors that promoting a working environment

concerning in encouraging continuous staff employment and long attachment as well

as ad-hoc and long working and learning capacity. It may bring about the commitment

of employees towards contributing to short term goals in enhancing a long term

business growth.

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0.00%

2.90%14.30%

55.70%

27.10%

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Strongly Disagree to Strongly Agree

Staff Retention - Support Short and Long Term Growth

Figure 4.11: Staff Retention to Support Short and Long Term Growth- Consideration

of Project HR Development Factor Based on Level of Agree

4.4.3 Proper Rewarding Scheme to Improve Employee’s Motivation

The majority feedback chose to Agreed (37.10%) and Strongly Agreed

(52.90%) about it is a need to consider proper rewarding scheme would contribute to

the effect of improvement to employee’s motivation level. In conjunction with that

matter, a phenomenon of “Compensate in accordance to performance” is to be correct

factors in mind to be strengthened with the indication of 4.41 remarks in Average

Index.

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8.60%

37.10%

52.90%

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ond

ents

Rating Scale

Strongly Disagree to Strongly Agree

Proper Rewarding Scheme to Improve Employee's Motivation

Figure 4.12: Proper Rewarding Scheme to Improve Employee’s Motivation-

Consideration of Project HR Development Factor Based on Level of Agree

4.4.4 HR Technology Enhances Process Efficiencies and Improves Cost Control

Capacity

Most of the respondents 50% Agreed and 30% Strongly Agreed in regard that

adopting HR technologies such as appropriate software application and management

system may be consider to be use in enhancing project efficiencies as well as to

posted out in budget control such minimizing human resource waste or improving

training in elimination unnecessary error that causes project delay or waste.

78

1.40%2.90%

15.70%

50.00%

30.00%

-

0.20

0.40

0.60P

erce

nta

ge o

f R

esp

ond

ents

Rating Scale

Strongly Disagree to Strongly Agree

HR Technology Enhances Process Efficiencies and ImprovesCost Control Capacity

Figure 4.13: HR Technology Enhances Process Efficiencies and Improves Cost

Control Capacity- Consideration of Project HR Development Factor Based on Level

of Agree

4.4.5 Continuous Improvement through Recognize Outside Environment

55% Agree and 32.9% Strongly Agreed rating cited that the factors mentioned

above should be consider when executing Project HR Development because

understanding others strength and weakness and concurrently assessing internal

competency to be able to be outperformed and compete with rival.

79

0.00%0.00%

11.40%

55.70%

32.90%

-

0.20

0.40

0.60Pe

rcen

tage

of

Res

pond

ents

Rating Scale

Strongly Disagree to Strongly Agree

Continuous Improvement through Recognizing OutsideEnvironment

Figure 4.14: Continuous Improvement through Recognizing Outside Environment

- Consideration of Project HR Development Factor Based on Level of Agree

4.5 Application of Tools and Techniques in Human Resource Development

(Team Development)

Table 4.4: Analysis Result on the Application of Tools and Techniques in Project

Human Resource Development (Team Development).

Application of tools and techniques in HR Very uncommon to Very common Average Practicality

Development (Team Development) 1 2 3 4 5 Index Level

Complete project documentation 4.30% 11.40% 31.40% 40.00% 12.90% 3.46 Less Common

Team building activities 14.30% 22.90% 25.70% 32.90% 4.30% 2.90 Less Common

General management skills training 10.00% 28.60% 37.10% 17.10% 7.10% 2.83 Less Common

Recognize employees-individual & team 7.10% 15.70% 31.40% 40.00% 5.70% 3.21 Less Common

Proper interaction process-meeting 2.90% 14.30% 37.10% 38.60% 7.10% 3.33 Less Common

Formal and informal training 5.70% 20.00% 40.00% 25.70% 8.60% 3.11 Less Common

Improve team performance- competencies 2.90% 14.30% 40.00% 32.90% 10.00% 3.33 Less Common

Employees assessment 1.40% 24.30% 30.00% 28.60% 15.70% 3.33 Less Common

80

Based on the review of analysis result above, all the tools and techniques is

having a Average Index that not more than 3.5 and it indicates the application of

selective tools and technique are neutral, not likely or less common in practice in

current construction project running situation. Although, most of the tested

consideration factors receive positive feedback that respondents agree all factors

served as fundamental basis in performing Project HR Development and aspects in

formulation of the tools and technique, but unfortunately majority of the respondent’s

organization neglected the effort in actual application of the tools and techniques.

Nevertheless, the Average Index achieving - 3.46 for “Complete project

documentation”, 3.33 for 3 tools and techniques- “Proper interaction process-meeting

and discussion”, “improve team performance”, “Employees assessment”; notating this

3 techniques and tools are almost fall under the categories of commonly practice. The

feedback result also show respondents working for company that involving large scale

project only applying tools and technique as provided under Project HR Development

categories.

81

4.6 Impact of Project HR Planning and Development in Performance

Table 4.5: Analysis Result on the Impact of Project HR Planning & Development in

Performance.

Impact of Project HR Development in Performance Strongly Disagree - Strongly Agree Average

1 2 3 4 5 Index

Efficiency of Project execution 1.40% 2.90% 14.30% 61.40% 20.00% 3.96

Technical performance and innovativeness 1.40% 2.90% 18.60% 61.40% 15.70% 3.87

Team performance and interfaces 1.40% 4.30% 20.00% 61.40% 12.90% 3.80

Personal growth 0.00% 1.40% 17.10% 68.60% 12.90% 3.93

Managerial and organizational competencies 0.00% 1.40% 20.00% 61.40% 17.10% 3.94

Business performance 0.00% 2.90% 21.40% 62.90% 12.90% 3.86

The analysis clearly review that most of the respondents Agreed (Average

Index rate more than 3.5) about if appropriate utilizing of Project HR Planning and

Development will able to bring positive impact to project deliveries and organization

competency through appropriate and sufficient implementation of Project HR

planning and Development by applying relevant HR tools and techniques.

a) Efficiency of project execution- Total of 81.40% of respondents Agreed and

Strongly Agreed that by imposing appropriate HR tools and techniques it may

contribute to improve project deliveries in term of time, cost and quality

standard. Whereby, choosing the right person for the right job, continuous

training individual skills to improve competencies and eliminate error and so

on. The Average index of 3.96 also illustrated the respondents Agreed the

effect of Project HR towards project execution.

82b) Technical Performance- Majority of the voted goes to Agreed and strongly

Agreed (61.40% and 15.70%) with a Average Index record of 3.87 recognize

that effective Project HR Planning and Development will minimize human

error and eliminate possible delay in human task performance, improve ability

in problem solving.

c) Team performance and interfaces- Most of the respondents provided a

supportive responds (Average Index:3.80) that their Agreed that Project HR

would bring about lowering in risk in conflict, improve decision making

process and enhance team cohesiveness.

d) Personal growth- The major categories of answer (Average Index 3.93) cited

Project HR Planning and Development may affect project team and individual

professional development.

e) Managerial and Organizational competencies- Most respondents also deem to

Agree (78.50% Agree and Strongly Agree) that Project HR may promote team

motivation level, long term learning and engagement. For instance, highly

committed employees that being place at right job position tends to be able to

contribute efficiently to be job scope being delegated.

f) Business Performance- The Average Index of 3.86 indicate that Project HR

may contribute towards a business environment where encourage low

operation cost due to lack human error and high competencies, low resignation

rate due to high motivation as well as proper rewarding scheme, gaining

customer trust on performance of the employees and be able to obtain

repetitive business.

834.7 Causes Leading Towards Failure in Project HR Planning and

Development

Table 4.6: Analysis Result for Causes and Limitation Leading Towards Failure in

Project HR Planning and Development

Causes & limitation Leading towards failure in %

Ranking Rank

Project HR Planning and Development of choice of choice

Lack of management support 18.00 1.00

Lack of knowledge in HR tools and technique application 15.67 3.00

Lack of proven research to indicate the success of application 8.67 7.00

Overlooked scope and important of HR participation in project 10.33 5.00

Resistant to change in new HR tools and technique 9.33 6.00

Lack of employer and employee commitment towards HR practices 16.00 2.00

Various company standards, believe and policies in HR practices 13.67 4.00

Lack of early involvement of Personal or HR Department in project 8.33 8.00

Eventually, every single factor has being chosen as contributing factors

leading towards failure or limitation for Project HR Planning and Development

implementation. The result of questionnaire responds that the most top critical factors

renown as “ Lack of management support-18%/100%” “Lack of employer and

employees commitment towards HR practices-16%/100%”, “Lack of knowledge in

HR tools and techniques application- 15.67%/100%”, follow up will be “ Various

company standard, believes and policies in HR practices-13.67%/100%”. The

phenomenon illustrated the contributing issue evolves both from less encouraging

factors in employer and employee as well as minimum sources the accessibility and

no common standard towards the important in Project HR application in construction.

A much detail close up on the discussion on selective causes in conjunction with

analysis result will be portraying in discussion and conclusion chapter.

CHAPTER 5

DISCUSSION AND CONCLUSION

5.1 Discussions

Most of the respondents agreed about all the selective factors under

organizational planning are deem to be considers when performing Project HR

Planning in construction. Eventually, among the major factors should be strongly

emphasize would be (1) Organization structure with right people, (2) Evaluate current

resource, (3) Proper organization structure/chart. This indicate that while running a

project it is necessary to furnish a project with initial Project HR planning with -right

people in the right job, assessment of internal resource capacity against workload, the

suitable type of organization chart.

Nonetheless, majority respondents also having the approval upon the selective

factors tested in questionnaire in team development during the Construction Project

HR Development. The Relative Index result shown the higher average respondents

choosing (1) Proper rewarding scheme-employee’s motivation, (2) Improve quality

85depend on quality personnel, (3) Continuous improvement-recognize outside

environment. This finale signified that –suitable compensation system-“Good pay&

benefits” within organization may improve employee’s motivation level, a quality

service provision of a company towards a project implementation reply upon the

competencies of the staff. Nevertheless, a frequent assessment and improvement of

company strength and defining weakness through recognizing external industry

competitiveness is a crucial task during Project HR Development in construction.

Concurrently, the respondents cited there are 3 major techniques in current

common practices for Project HR Planning (Organization planning) namely (1)

Practices roles and responsibilities delegation, (2) Proper supporting document –job

description, (3) Practices standard procedures. Likewise, all the tools and techniques

in relation to Project HR Development (Team Development) are less common in

practices. The scenario portrayed that most of the construction practitioner in

particular devoted towards requiring the employees to obey the predetermine

guideline, understand individual function as well as matching the right candidate to

the right job. In reality, the Project development (Team Development) is being

neglected and not being prioritized for most respondent’s organization due to the

selective causes and limitation. In conjunction to that, causes and limitation being

ranked top of the list are (1) Lack of management support, (2) Lack of employer and

employee commitment in HR, (3) Lack of knowledge in HR tools and technique

application, (4) Various company standard, believes and policies in HR. As the result

indicate that, the management supports (physical and financial) are crucial to set

“Norm” in whole project organization practices. Secondly, the co-operation and

mutual effort of –employer and employees should be concerned. Thirdly and fourthly,

adequate knowledge and generalization of common Project HR approaches is

practically important in application. As recommended in literature review a selection

of improvement method can be impose to improve the situation will be discuss in

recommendation.

86

The analysis result also preview that respondents agreed that if Project HR

Planning and Development being common practices would helps in generating

positive impact towards performance in term of project execution, improving

managerial and organizational competencies, enhancing personal growth, improving

technical performance and innovativeness and business performance, and finally

would be the overall team performance and interfaces.

5.2 Conclusion

As a conclusion to the study, we take a look at the objectives of the study and

findings as resolution to the objectives. There are 4 objectives to be posted in the

study and further details on the individual findings and an overall outcome as the

general conclusion to summarize the entire study.

5.2.1 Main Objectives and Findings of the Study

1) To study the best practice factors consider in Project Human Resource Planning

and Development

87

otivation

ndn quality personnel

vement-side

environment

Project HR Planning(Major consideration factors)-Org structure with right people

-Evaluate current resource

-Proper org structure/chart

Project HR Planning &Development technique & tools application

Project HR Development (Major considerationfactors)-Proper rewarding scheme-employee'sm

-Improve quality depeo

-Continuous improrecognize out

Findings for Objective 2

Findings for objective 1

Figure 5.1: Illustration Table of Finding Result for Objective 1

2) To study the application of the selective Project Human Resource tools and

technique in construction project.

CommonPractices

Project HR Planning & Development techniques & tools application 3 techniques in common practicesProject HR Planning (Org)

-Practices roles & responsibilities delegation

-Proper supporting document -job specification&description.

-Practices standard procedures

All the techniques less common in practices Project HR Development (Team)

Less CommonPractices

Major causes and limitation

Finding ofObjectives 4

Improvementmethod

Findings for objective 2

Impact in Performance

Finding of Objectives 3

Figure 5.2: Illustration Table of Finding Result for Objective 2

883) To study and assess the impact in Construction Project Human Resource towards

performance

Impact in Performance Positives impact

-Efficiency of project execution

-Managerial and organizational competencies

-Personal growth

-Technical performance and innovativeness

-Business performance

-Team performance and interfaces

CommonPracticesCommonPractices

Findings for objective 3

Figure 5.3: Illustration Table of Finding Result for Objective 3

4) To identify and discuss the causes and limitation for the Project Human Resource

Planning and Development.

Major Causes and Limitation

-Lack of Management support

-Lack employer & employeecommitment in HR

-Lack of knowledge in HRtechniques and tools application.

-Various company standard, believes & policies in HR

Findings for objective 4

Improvement method (Area to further research on this area suggested by literature review)

Lesscommon in practices

Figure 5.4: Illustration Table of Findings Result for Objectives 4

895.2.2 Executive Summary

Conclusively, the study of current scenario that ideally the best practice factors are

to be considered but only minimum 3 techniques are being practice; others of the

recommended tools and techniques is less practice due to causes and limitation such

as lack of management support, lack of knowledge in HR application. Associating

relevant improvement methods to less practices techniques and tools may result in

positive impact towards better resolution in problem statement.

Figure 5.5: Current Construction Project HR Planning and Development Towards

Positive Impact in Performance.

Project HR Planning & Development techniques & tools application

3 techniques in common practicesProject HR Planning (Org)-Practices roles & responsibilities delegation

-Proper supporting document -job specification& description.

-Practies standard procedures

All the techniques Less common in practices Project HR Development(Team)

Major Causes and Limitation-Lack of Management support

-Lack employer & employee commitment in HR

-Lack of knowledge in HR techniques and tools application

-Various companystandard., believes & policies in HR

Commonpractice

Improvementmethod (area to be further research)

Impact in PerformancePostive impact-Efficiency of project execution-Managerial and organizational competencies -Personal growth-Technical performance and innovativeness-Business performance -Team performance and interfaces

ProblemStatement

LessCommonpractice

Project HR Planning & Development(major consideration factors)-Org structure with rightpeople

-Evaluate current resource

-Proper org structure/chart -Proper rewarding scheme-employee's motivation

-Improve quality depend on quality personnel

-Continuos improvement- recognize outside environment

90Table 5.1: Problem Statement Versus Resolution through Positive Impact in

Application of Project HR Planning and Development.

Problem Statement Resolution through positive impact in application of Project HR Planning & Development

a) Shortage of skilled employees a) Personal growth-professional development

-Ex. Quality of training, qualified people, retention staff b) Business performance-low staff turnover rate

c) Efficiency-Project deliveries-achieve time and quality

b) Transient workforce

-personnel with diverse skill level, changes in projecta) Team performance & interfaces- lower risk in conflict ,increase team cohesiveness & motivation level

phrases a) Managerial and organizational competencies-communicate corporate objective, values , culture & teamwork

c) Modifying Labour market & workforce composition

-building organization direction towards self manage team

-location, ages, gender (male & female). d) Lack of effective training and performance appraisal a) Personal growth-professional development

-training needs and assessment of performance b) Technical performance & innovativeness-minimizing error & possible delay, improve ability in Problem- solving.

e) Workers participation Know How a) Managerial and organizational competencies

-needs motivation, cohesive group, participation -communicate corporate objective, values , culture & teamwork -building organization direction towards self manage team

f) Management commitment & Leadership a) Team performance & interfaces- lower risk in conflict, increase team cohesiveness & motivation level

-communicate the objective, initiate, contribution c) Efficiency-Project deliveries-achieve time & quality std

Table 5.2: Major Causes and Limitation Versus the Recommended Improvement

Method

Major causes and limitation for Improvements method recommended by uncommon practice Literature Review to be further study and research

Lack of management support 1. Strategic plan and provision adequate financial & physical resource

2. Incorporate project HR objectives into company strategic

3. Management provide clear goals and parameter

Lack of employer & employee commitment in HR 1. Foster reflective learning and continues improvement

2. Identify the key personnel in admin & development

1. Ministry of HR organizing course such as seminar.Lack of knowledge in HR tools and technique application 2. Software developer emphasize effort in HR software

application

3. Assessment of organization needs in project HR

tools and techniquesVarious company standards, believes & policies in HR 1. Communicate organization values, belief & commitment

2. Co-operative relationship - common goals and benefits

91

5.3 Recommendation

Apparently, there are several method should be consider as improvement

method for Project Human Resource Planning and Development application to be

further research and study.

a) Strategic plan and provision adequate financial and physical resource.

b) Incorporate project HR objective into company strategic.

c) Management clear goals and parameter

d) Ministry of HR organize course or seminar in regards Project HR

implementation in construction.

e) Government encouragement to software developer in the market to emphasize

in Project Human Resource software application.

f) Organization effort in foster reflective learning and continuous improvements.

g) Assessment of Organization needs in Project HR tools and technique

application.

h) Communicate organization values, belief and commitment.

i) Identify the key personnel in administration and development proper Project

HR Planning and Development.

92j) Cooperative relationship among employer and employees in setting common

goals and realizing the benefits upon the Project HR implementation.

It is essential also to consider the study upon Project Human Resource

performance measurement process or appraisal process to be carried out on quarterly

and annual review basis based individual projects by utilizing available tools such as

graphic rating scale method, paired comparison method or even critical incident

method. Apparently, the appraisal process involves:

1) Setting work standards or manuals.

2) Assessing the employee’s actual performance relative to these standards.

3) Providing feedback to the employee with the aim of motivating that person to

eliminate performance deficiencies or to continue to perform above par.

5.4 Contribution of the Study

1. The result of study manage to indicate that it is ideally to considered all best

practices should be adopted in application of Project HR Planning and

Development in construction. In real scenario, there are only 3 major tools &

techniques being utilize under Project HR Planning (Organizational Planning).

The remaining tools and techniques are not commonly practices. It reflects

that need for attempt in limitation identification and proposal of improvement

method in adaptation.

932. The study also concludes that the maximization in utilization of tools and

techniques in Project HR Planning and Development are essential in order to

bring positive impact in project performance.

3. The positive impact in project performance through enhancing the intensity in

common practices of Project HR Planning and Development tools and

techniques are adaptable effort and consideration in catering the issue in

problem statement and further capitalize the Human Resource in master plan

of the business strategy in construction.

94

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Q.S

100

A. Project HR Planning ( Organizational Planning)

101

102

B. Project HR Development (Team Development)

103

104

105

HUMAN RESOURCE PLANNING AND HUMAN RESOURCE DEVELOPMENT IN CONSTRUCTION

Tan Han Leng1, Assoc. Professor Dr Abdul Kadir Marsono2, Dr Arham Abdullah3

Abstract Construction industry is deems to be operate by diversify workforce. Hence managing human resource issue deems to be a challenging task. Apparently, modern SHRM or Strategic Human Resource Management approach in cultivating human resource aspect in order to capitalize human resource towards improvement of project team performance and building organizational competitive advantages. Nonetheless, Project Human Resource Planning and development is an essential portion in managing human resource within a diversifying construction nature. This study carried out in particular to examine the extent of implementation Human Resource Planning and Development in construction project with core emphasize of the study toward optimizing specific area of organizational planning and team development in enhancing project performance and towards catering the problems faced such as shortage of skilled employees, transient workforce, lack of effective training and performance appraisal. Conclusively, the study of current scenario that ideally the best practice factors are to be considered but only 3 techniques are being practice in reality; the discouraging in practicality of the tools due to major limitation such as lack of management support and numerous improvement method could be adopted to induce the practicality. The study also indicates through enhancing practice in Project HR Planning and Development would contribute significant positive impact in improving construction project performance.

1.0 INTRODUCTION

1.1 Problem Statement

1Postagraduate, MSc Construction Management, Faculty of Civil Engineering, UTM. 2Assoc Prof, PhD., Department of Structure & Materials, Faculty of Civil Engineering, UTM. 3Lecturer,PhD., Department of Structures & Materials, Faculty of Civil Engineering, UTM

1.2 Objectives of Study

1.3 The Scope of Study

2.0 METHODOLOGY 2.1 Primary Data and Secondary Data Collection

2.2 Analysis Method

a=Constant expressing the weighing given to each response (1 to 5) X= n/N where, N = Total of response,N=Frequency of the response

3.0 RESULT AND ANALYSIS

Table 3.1 Consideration factors in Project HR Planning and Development NO Consideration factors in Project HR Planning Average Consideration factors in Project HR Average

(Organizational Planning) Index Development (Team Development) Index

4.07 4.41

3.99 4.26

3.97 4.21

Tables 3.1

Table3.2 Application of tools and techniques in HR Planning and Development NO Application of tools and techniques in HR Average Application of tools and techniques in HR Average

Planning (Organizational Planning) Index Development (Team Development) Index

3.81

3.56

3.54

Table 3.2

Table 3.3 Impact in project performance Table 3.4 Causes and limitation in practices NO Impact of Project HR Development Average NO Causes & limitation leading towards failure in Choice

in performance Index Project HR Planning and Development Ranking

3.96 1.00

3.94 2.00

3.93 3.00

3.87 4.00

3.86

3.80

Table 3.3

Table 3.4

4.0 DISCUSSION

5.0 CONCLUSION

Figure 5.1 : Current Construction Project HR Planning & Development HR towards positive impact in performance

Project HR Planning & Development(major consideration factors)

Findings of Objective 1

Project HR Planning & Development techniques & tools application

Project HR Planning (Org)

Project HR Development (Team)

Findings of Objective 2

Major Causes and Limitation

Findings of Objective 4

Common practice

Improvementmethod (areato be further research)

Impact in Performance(Positive )

Findings of Objective 3

Problemstatement

Less Common practice

6.0 RECOMMENDATION

7.0 REFERENCES