IMPROVING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY THROUGH HUMAN RESOURCES DEVELOPMENT
ABSTRACT
The objective of this study was to evaluate the improving of productivity in the construction industry through human resource development in Ikot Ekpene as a case study. The study adopted the survey research design. In determining the population of the study, the researcher selected to the entire Ikot Ekpene, the L. G. A, Akwa Ibom State. The convenient sampling method was adopted in determining the sample size. Hence, the researcher conveniently selected 114 as a sample size. A total of 114 questionnaire were administered to the respondents while only 100 were validated. Data gather were analyzed using simple percentages while the hypotheses were tested using chi-square statistical tool. The result of the findings shows that to evaluate the effect of human resource development technique/practices on productivity of construction firm. The study also deduced that to assess the human resource development practices among construction firm. Based on the findings, it was recommended that human labour which is the main factor of production in the construction process should be given the attention it deserves by ensuring that masonry employee are well taken care off in order to improve the productivity on construction sites. This can only be achieved by incorporating most of the human resource practice not being practiced on construction sites such as recruitment and selection, training and development, performance and reward management, employee relations and employee engagement.
TABLE OF CONTENTS
Title Page – – – – – – – – – i
Certification – – – – – – – – ii
Dedication – – – – – – – – – iii
Acknowledgments – – – – – – – iv
Abstract – – – – – – – – – v
Table of Content – – – – – – – – vi-viii
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study – – – – – 1-5
1.2 Statement of the Problem – – – – – 5-7
1.3 Objectives of the Study – – – – – – 7-8
1.4 Research Hypotheses – – – – – – 8
1.5 Significance of the Study – – – – – 8-9
1.6 Scope of the Study – – – – – – – 9
1.7 Limitation of the Study – – – – – – 10
1.8 Definition of Terms – – – – – – 10-11
CHAPTER TWO
REVIEW OF LITERATURE
2.1 Conceptual Frame Work – – – – – 12
2.1 Human Resource Management Practices – – – 12-13
2.1.2 Performance and Reward Management Practices – – 13-17
2.1.3 Training and Employee Development – – – 17-19
2.1.4 Employees Skills Development – – – – 19-20
2.1.5 Recruitment and Selection – – – – – 20-22
2.1.6 Employee Relations – – – – – – 22-23
2.1.7 Employee Engagement – – – – – – 23-24
2.1.8 Factor Affecting Human Resources – – – – 24-29
2.1.9 The Effect of Human Resource Management (HRM) Practice on Labour Productivity – – – – – – 29-32
2.2 Theoretical Framework – – – – – – 32
2.2.1 Human Capital Theory – – – – – – 32
2.2.2 Resource Based View – – – – – – 33
2.3 Empirical Review – – – – – – – 34
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction – – – – – – – 35
3.2 Research Design – – – – – – – 35
3.3 Population Sampling Size – – – – – 36
3.4 Sample Size Determination – – – – – 36
3.5 Sample Size Selection Technique and Procedure – 36-37
3.6 Research Instrument and Administration – – – 37
3.7 Method of Data Collection – – – – – 37
3.8 Method of Data Analysis – – – – – 38
3.9 Validity of the Study – – – – – – 38
3.10 Reliability of the Study – – – – – – 38
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1 Introduction – – – – – – – 39
4.2 Data Presentation – – – – – – – 39-45
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Introduction – – – – – – – 46
5.2 Summary of the Study – – – – – – 46
5.3 Conclusions – – – – – – – 47
5.4 Recommendations – – – – – – 47-48
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Human Resources management (HRM) plays an important role in all organization. It contributes to the success of the organization and creates competitive advantage for the organization (Rana and Rastogi, 2010). The way HRM practices and policies take place shape also affects the employee’s experiences of work and the employment Relationship (Sambasivan, 2007). HRM is therefore important in any organization.
The construction company is no different in this regard. However, the researcher suggests that specific features of the construction company create specific challenges for HRM in that context, which are not widely recognized in the general management, HRM or Project Management (PM) literature (Thomas, 2012). Construction is a process that consists of the building or assembly of an infrastructure. Large scale constructed is a feat of multi-tasking. Normally the job is managed by the project manager who acts as the representative of the client/developer while the construction manager is tasked with the role of supervising, the construction works, design engineer, construction engineer or project architect (Rojas and Aramvareekul, 2013) for the success of construction of any sustainable development project, many aspects must be taken into construction, inclusive of planning and management, such as human Resource, safety and health, construction delays, the designs of architecture and engineering, material availability and quality, the clients need, and financial or economic limitations.
In the age of rapid growth of globalization, many construction firms focus on the effective use of Human Resources Management (HRM) practices to gain competitive advantage to achieve the organization’s objective and ensure optimal performances among the employees.
Construction industry is an important part of the economy in many countries and often seen as a driver of economic growth especially in developing countries.
Typically, construction industry contributes to 11% of Gross Domestic Product (GDP) in most developing countries (Rok, 2003). The Nigerian construction Industry is one of the most important sectors in the country’s economy whose level of activity is an indicator of the general economic performance of the country.
The nature of construction industry, presents challenges and peculiar requirements in the developing nations. In order to check on performance and productivity, some measures in the construction industry have to be taken at various stages of socio-economic development. Many countries have set up special agencies to monitor the operations in this industry’s and harness their potential for improvement, although they have different objectives, responsibilities and levels of authority. The construction industry council, for example in the UK, is a board which was initiated by the players in the construction industry to represent and support these players at national level. However, in developing countries like Nigeria the counterpart agencies like National construction Authority and the National Construction Council of Tanzania are Government agencies controlled and managed by the Government. The agencies in developing nations therefore are restricted in their mandate rather than as assigned by the government authorities. In doing so, they are likely to exclude key players in the construction industry especially the masons and casual labourers.
Productivity happens to be a significant aspect of construction industry that may be used as an index for efficiency of production. Productivity is defined as a relationship between output produced by a system and quantities of input factors utilized by the system to yield output (Mbiti, 2008). Productivity is considered one of the most outstanding, factors influencing timely completion of a projects. Efficient management of construction of a project and cost control in all construction projects. Efficient management of construction resources can lead to higher productivity that can help to achieve cost and time savings (Sebastian and Raghavan, 2015). Productivity remains an intriguing subject and a dominant issue in the construction industry, promising cost saving and efficient usage of Resources. However, Rundle (1997) identified construction productivity as a cause of great concern. Ghate and Minde, (2016). Concurred with Rundle’s views in observing that construction productivity seems to have declined on the other hand, Lawal, (2008) reported that in Nigeria, construction workers in the public service have almost zero productivity. Kothari, (2004) identified poor productivity of craftsmen as one of the most daunting problems confronting the construction industry especially in developing countries. Their study concluded that there was a need for establishing output figures on various construction sites through time study techniques. It was concluded that method studies and research results should be disseminated not only to large firms but also to small firms so the most productive working methods (or best practices) could be adopted by operatives, resulting in increased output without necessarily increasing physical effort. Their findings indicated that the most important problems affecting productivity were: difficulty with recruitment of supervisors, difficulty of labour turnover, absenteeism from the work site, and communication problems with foreign workers. Five specific productivity problems were identified: i.e lack of materials, rework, absenteeism, lack of equipment, and tools. Wachira, (1999) did a study in Kenya construction firms and found that labour productivity is affected by many factors including, experience of the workforce, motivation, organization of the work, type and condition of tools and equipment, and continual monitoring of performance this has been brought about by the lack of adequate information on labor productivity rates in the construction industry in Nigeria. (Wachira, 1999). The inaccurate determination of activity duration has in most cases led to the incorrect estimation of contract periods. Delays in completion of project in the construction industry are indicators of productivity problems and hence a big challenge facing the construction industry. An improved labor productivity is one of the key determinants of projects prediction and therefore an important ingredient of construction delivery.
1.2 STATEMENT OF THE PROBLEM
Unlike other industries, construction industry is mainly project-based. The construction projects have the general characteristics of limited budget, schedule, and quality standards with a series of complex and interrelated activities. It requires the cooperated of all project participants that includes clients, directors, designers, contractors, constructions, project managers, project team and consultants. There are many human resource issues that will lead to poor performance of construction projects such as poor project work design and structure, shortage of qualified skilled employees, changing work force demography, a high rate of employee turnover and high rate of burn out among construction workers. The shortage of qualified skilled employee is also one of the common issues among the construction firms. According to Borcherding, (2009), there is a disturbing trend in construction in which there is a growing shortage of skilled workers and experienced managers,”. Therefore, due to the lack of proper screening process, selection methods and poor recruitment procedure will affect badly on the success rate of the construction projects and therefore lead to low productivity and growth of the construction firm (Enshassi, 2007). In the construction industry, the labor market is always changing and modifying due to the reduction of qualified workers and also due to changing demographic of the workforce. One of the factors is due to the aging of construction workforce that is flowing older over the long term. Therefore, human resource management has become more important to the construction industry to overcome the changing workforce demographics (Heizer and Render, 1990). There is undeniably a high rate of employee turnover in the construction industry nowadays. According to Horner, (2011) the two major factors that cause employee termination is “perceived ease of movement” and perceived desirability” that related to employee’s carrier satisfaction. Employee voluntary and involuntary termination are mainly due to poor job performance, absenteeism or violation of workplace policies. Despite the concerns on lack of adequate productivity information, little research attention and documentation has been under taken on construction sites to establish labor productivity data for consideration in project planning, costing and budgeting in the construction industry in Ikot Ekpene. Therefore, this study seeks to assess the effect of human resource management practices on productivity in the construction industries in Ikot Ekpene.
1.3 OBJECTIVES OF THE STUDY
The general aim of this study is improving the productivity of construction firms in Ikot Ekpene through human Resource development.
The specific objectives are:
- To assess the human resource development practices among construction firms in Ikot Ekpene.
- To assess Productivity strategy adopted by construction firms in Ikot Ekpene.
- To evaluate the effect of human resource development techniques/ practices on productivity of construction firms in Ikot Ekpene.
1.4 RESEARCH HYPOTHESES
The following statement will be validated in the course of this study;
HO1: There is human resource development in the construction firm.
HO2: Human Resource development have benefits in the construction firm Performance.
HO3: Productivity strategy is necessary in construction industry?
1.5 SIGNIFICANCE OF THE STUDY
This research serves as reference for construction firms. The findings led to establishment of appropriate human resource development that could increase labour productivity in the construction industries. The results of the investigation could also be used as a useful benchmark tool for other contractors who may not have been adhering to the set standards and best practice. A competitive advantage should be established as a result of implementing the findings of the study. Human Resource development practices contribute significantly to creating a competitive advantage by creating human resources, which are unique and difficult to replicate, therefore, contributing significantly to labour productivity. Human Resources are the most important asset of an organization but very few are able to fully harness its potential.
The findings from the study will be valuable in the construction industry as they prioritize the factors that are associated with effective labor productivity on. The findings will further contribute to the pool of knowledge available in this area of construction project manage
Construction project management and would form a useful archival material for reference to other researcher and institutional libraries which will be vital to the present and future scholars in regard to labor productivity. The outcome of this investigation, shall hopefully contribute to high standards of workmanship as a result of incorporating efficient HRM practices into management of employees in construction comprises and sites.
1.6 SCOPE OF THE STUDY
The study looks into improving productivity in the construction industry through human resource development. The study further delve into assess the human resource development practices among construction firm to assess productivity factors adopted by construction industries, and to evaluate the effect of human resource development techniques/practices on productivity of construction firm.
1.7 LIMITATION OF THE STUDY
In the course of carrying out this study, the researcher experienced some constraints which included time constraints, financial constraints, language barriers, and the attitude of the respondents.
In addition, there was the element of researcher bias. Here, the researcher possessed some biases that may have been inflected in the way the data was collected, the type of people interviewed or sampled, and how the data gathered was interpreted thereafter.
The potential for all this to influence the findings and conclusions could not be down played. More so, the findings of this study are limited to the sample population in the study area, hence they may not be suitable for use in comparison to other construction companies in the world.
1.8 DEFINITION OF TERMS
Productivity:- Is commonly defined as a ratio between the output volume and the volume of inputs. In other words,
Productivity:- Is a measure of economic performance that compares the amount of goods and services produced (output) with the amount of inputs used to produce those goods and services.
Development:- Is a process that creates growth, progress, positive change or the addition of physical, economic, environment, social and demographic components.
Human Resources:- Is the set of people who make up the workforce of an organization, business sector, industry, or economy.
