SOFT HRM AND ITS IMPACT ON OVERALL EFFECTIVENESS OF HRM IN CONSTRUCTION FIRMS IN SINGAPORE

Abstract

Human resource management (HRM) is a critical factor which decides the success of any operation. The construction industry, with its unique characteristics such as short-term, prone-to-change and human-dependent, requires more than an effective HRM. HRM in construction needs to take into consideration all peculiar characteristics of the industry. Nonetheless, the number of research done on the topic are still limited, especially in Singapore. Understanding how human resources can be effectively managed in construction could help to increase projects’ outcome and the industry’s productivity. With a focus on common HRM components such as training, motivation, performance assessment, HR administration and soft HRM, this dissertation aims to identify, document and review the body of knowledge concerning HR practices in construction; compare these theories with the updated practices in Singapore; and recommend steps which might be useful for HR players in the industry. It uses both qualitative and quantitative research methods including survey through the use of e-mailed questionnaire; interview; and case studies. The hypothesis of the research is that soft HRM and the use of it have a significant impact on HRM performance in construction firms. Research results reveal that training is performed in almost all firms but tended to base on needs and down-to-function. Training topics put heavy weights on job-needed skills and knowledge, little attention was paid to personal development for employees. Motivation is well-practised in all firms, with regards to the appraisal system, work-life balance as well as welfares. Team formation relies a lot on human assumptions, no scientific models are used to assist the process. However, in general, HRM policies are effective due to firms’ awareness of soft HRM, including increasing employees’ motivation, satisfaction and commitment to the organization, helping all employees to develop their maximum potentials, treating all employees fairly, adopting a long-term HRM perspective, integrating various HRM components and being in line with the organization’s strategy and objective. It is concluded that while Singapore construction firms’ vision and strategy are soft, their HRM practices are more hard than soft. Top management commitment and employees’ involvement are required to increase the effectiveness of HRM in construction industry in Singapore.