HUMAN RESOURCE CHALLENGES FACED BY LOCAL CONSTRUCTION FIRMS TODAY AND THE POSSIBLE SOLUTIONS

Abstract

The local construction industry has gone through major structural changes in the last decade. Local construction firms are now more focused on management and co-ordination functions, and are increasingly removed from the physical work of construction. Together with the need to drive down costs in a more competitive environment, this has resulted in the devolution of HR responsibilities from the top management to line managers and the shift from collectivism to individual contracts. Inherent in this situation are a multitude of HR challenges that have surfaced in local firms. The main objectives of this dissertation are to provide readers with: One, a comprehensive review of current HRM principles, procedures and practices, and their potential application to construction firms Two, to build a framework for the development of strategically aligned management practices for effective staff deployment. The quantitative methodology used is a comparative case study. Two successful construction firms, each employing about one thousand people are selected as primary case studies. Data is gathered using in-depth interviews, on-site observations, survey questionnaire and document analysis. Five supplementary case studies are also examined by analyzing specific HRM issues in each case study. A literature review is conducted to examine the latest developments in human resource management. One central theme is apparent throughout the analysis of existing organizational practices in the primary and supplementary case study firms: Many of the case study firms focus a lot on welfare and administration rather than strategic deployment of resources. Nevertheless, some aspects of SHRM are apparent in the general management style and drive on business needs, flexibility and commitment. In the two primary case studies, the company culture emphasized close working relationships between staff and superior. Although this was useful in enhancing local commitment, it overlooked the importance of translating organizational strategy and policy into effective managerial practice in projects. This has led to the undermining of the potential to strategically deploy staff across the business. iii The main limitations of this dissertation are the limited access to information and people from the supplementary case study firms, time and resource constraints and restrictions in the sample size. This inhibited longitudinal study of changes in the employees’ views with regard to changes in both personal and organizational circumstances. The author’s research findings suggest that project priorities and employee personal needs are likely to change over time. Hence, any future research should seek to establish the nature and effect of changes to the way employee resourcing processes are managed.