Human Resources Management in Construction

Dr. Nabil I. El Sawalhi

Construction Management

1 HRM Ch 3

3

What is the Philosophy underpinning the Org Culture

• All org have different ideas, beliefs and values.

• This will be demonstrated in the amount of freedom accorded to individuals.

• The org culture will affect its structure and will have been molded by the history, nature of business and environmental conditions.

•

HRM Ch 32

• HR managers can successfully perform his function only through understanding organizational culture.

HRM Ch 33

What Effects will the Employees and their Jobs have?

• Jobs:

• are created by the organization and constitute the activities and tasks identified as necessary for the achievement of the organization functions.

• Employees:

• are the people hired specifically for the purpose of carrying out the jobs identified as necessary by the organization.

HRM Ch 34

How Each Employee Respond to job Factor

• Depends on unique combination of personal characteristics.

• Consider the following factors:

1. The employee suitability for a particular job in terms of capability, education, training, dexterity, competence.

2. The employee’s preferred type of work and employer based on his goals, ambitions(hopes), priorities, inflations, and character.

HRM Ch 35

The Success or Failure of an Org.

• Depends on :

• Ability of HR manager to :

– understand,

– control problems and

– employee characteristics through organization life cycle.

HRM Ch 36

• What is the life cycle of an organization and how does it affect HRM?

• Life cycle of an organization :

– 1. first creation

– 2. develop and grow(expand workforce, increase market share, diversity of products and growing return to shareholders.

– 3. maturity (settled period of consolidation) , the size is stable, concern is directed to maintain current position.

HRM Ch 37

• What is the life-cycle of an organization and

how does it affect HRM ?

Transition to the stages of decline

created (born)

Developing and

growing maturity

8 HRM Ch 3

– 4. decline and eventual death (sales & profits falling, turnover of labor is too high, are current product and markets relevant.

• Who should do human resources management

• Two main options

• 1. internal employee or external consultant

• 2. by an individual or a team

HRM Ch 39

• For small companies, the employment of a specialist is cost effective managing director is used.

• HRM should be integrated into strategic management of the firm.

• HRM should exhibit the following qualities:– 1. be an effective manager

– 2. be well informed about all function of the business.

HRM Ch 310

• 3. be a good problem-solver and planer able to make decisions and implement them.

• 4. have the ability to sell his ideas to senior management of the firm.

• 5. have an understanding of all level of the org and the ability to communicate

• 6. have a flexibility of mind capable of adopting to the changing environment whilst Retaining an independence of mind & well developed system of personal values.

HRM Ch 311

Constraint for HRM

• HRM has traditionally been undervalued and therefore underdeveloped in the industry.

• The constraint responsible can be identified at two levels :

– The macro/ industry level and

– Micro or firm

HRM Ch 312

Cost of HRM

• For small firms, they predominant in the industry can not afford a formal, separate human resource function within the firm.

• The cost being prohibitive in relation to pay-roll and other operating costs.

• HRM for small firms is insignificant and can easily be absorbed within the general administration cost or be shown as an office overhead.

HRM Ch 313

• There is simply no incentive to introduce the function.

• For medium & large firms: there is concern over the cost of introducing a formal HRM policy.

• Line manager have carried out the HRM function in an informal manner, this has a cost in that it detracts from their prescribed job and lowers their efficiency as they have to spend time accumulating the skills and knowledge to perform this extra work.

HRM Ch 314

• Only when this cost in higher than cost of introducing formal approach will a firm consider introducing the skills and knowledge required to perform with extra work.

• Fragmented nature of industry

• Large firm may have HRM department at HQ.

• The site project based impose that each site has its team of management.

HRM Ch 315

• The usually object to be controlled from out side the site by HQ.

• The site manager prefer to recruit workers at site citing the need to meet production requirement .

• Managers will urge for convenience of recruiting workers at sites.

• Having selected employees and being closely aware of their individual of Performance &local condition.

HRM Ch 316

Labor Mobility

• The variation of supply in site labor demand make centralized human resources policy difficult to implement.

• The temporary nature of project-based employment has led to a traditional mobility of labor in the construction industry.

• The labor are faced to move from project / firm to another upon completion of work.

HRM Ch 317

Shallow Management Structure

• In small firms, shallow management structure with few hierarchical levels exist.

• Manager can make direct discussions with workers, got some feeling of the employees and their problems

• Manager should not use such relation to negotiate disputes of labor about wages and holiday.

• The informality should be kept in perspective & not used in argument.

HRM Ch 318

Subcontracting & Casual Employment Practices

• Most of firms prefer to use sub-contractor for several trades rather than direct employment of labor.

• This will release the company from direct HRM expenses and reduce self employment.

HRM Ch 319

Varity of Work

• There is an inherent variety of works in construction that voids the monotony associated with other industries.

• This may result to reduce the need of rarity of specialist HRM.

HRM Ch 320

The Attitudes & Education of Const Managers

• Traditionally, Managers comes from trades.

• They are promoted from foreman to site manager to area manager by education and training.

HRM Ch 321

• The problem is that the traditional project managers reluctance to accept other expertise from academia unless it is unavoidable, while they accept an accountant or a lawyer meet these conditions.

• It is less likely that they will see HRM in the same light.

HRM Ch 322

HR Management Challenges

• The environment faced by HR management is a challenging one;

• changes are occurring rapidly across a wide range of issues.

• A study by the Hudson Institute, entitled Workforce 2020, has highlighted some of the most important workforce issues:

• it appears that the most prevalent challenges facing HR management are as follows:

23 HRM Ch 3

1. Economic and technological change

2. Workforce availability and quality concerns

3. Demographics and diversity issues

4. Organizational restructuring

24 HRM Ch 3

Economic and Technological Change

• A major change is the shift of jobs from manufacturing and agriculture to service industries and telecommunications.

• This shift has meant that some organizations have had to reduce the number of employees, while others have had to attract and retain employees with different capabilities than previously were needed.

25 HRM Ch 3

• Additionally, pressures from global competitors have forced many U.S. firms to

• close facilities,

• adapt their management practices, and increase productivity and

• decrease labor costs in order to become more competitive.

• Finally, the explosive growth of information technology, particularly that linked to the Internet, has forced many changes throughout organizations of all types.

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Workforce Availability and Quality

• Significant workforce shortages exist due to an inadequate supply of workers with the skills needed to perform the jobs being added.

• News reports have regularly described tight labor markets with unemployment rates in some locales below 3%.

• Also, continuously there are reports by industries and companies facing shortages of qualified,

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Demographics and Diversity• It is more diverse racially,• Women are in the labor force in much greater

numbers than ever before, and• the average age of the workforce is now

considerably older than before. • HR management in organizations has had to

adapt to a more varied labor force both externally and internally.

• The three most prominent dimensions of the demographic shifts affecting organizations are highlighted next.

28 HRM Ch 3

Organizational Restructuring

• Many organizations have restructured in the past few years in order to become more competitive.

• Also, mergers and acquisitions of firms in the same industries have been made to ensure global competitiveness.

• The “mega-mergers” in the banking, petroleum, and telecommunications industries have been very visible,

• but mergers and acquisitions of firms in many other industries have increased in recent years.

29 HRM Ch 3

• As part of the organizational changes, many organizations have “right sized” either by

– (1) eliminating layers of managers,

– (2) closing facilities,

– (3) merging with other organizations, or

– (4) out placing workers. A common transformation has been to flatten organizations

30 HRM Ch 3

The Development of Modern Organizational & Management Theory

• Modern Management thoughts remains a cocktail of different ideas

• It is difficult to identify a single solution to a particular problem

• It would be counter productive for Managers to attach themselves to one organizational theory that could solve all of their problems

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• It is more appropriate to develop an understanding in them all within the social, economic, and political context.

• The influence of mass production on the early construction industry.

HRM Ch 332

• Until industrial revaluation , the construction industry was essentially craft based. And founded in simple tried and tested traditional technologies and production methods.

• Projects were produced in a fashion which is similar to today's design and build projects

33 HRM Ch 3

Industrial Revolution

• The industrial revolutions presented new production technologies & materials (large number of houses to accommodate the growing populations.

• This led to off-site fabrication, standardization, and modularization in building designs .

• Also lead to development of new technology such as cement mixers.

34 HRM Ch 3

• Innovation in the science of materials such as steel & concrete led to the development of structural engineers and specialist sub contracting.

• The growth of construction professions such as architecture and QS

• This lead to the fragmentation of the industry which needs for management process to integrating disparate components into one cohesive team.

35 HRM Ch 3