Human Resource Management in the Construction Industry - Research Paper Example

ID number: Human Resource Management Part Summary and Critique Journal Analysis of the issues The construction industry forms a major part in the employment sector in an economy. The construction sector employs about 2million people and this facilitates contribution towards GDP by 8%. However there have been problems noticed in the construction industry in Australia and also across the globe in terms of adopting the best measures by the employer so as to retain the talented graduates in the system. The industry is facing a major challenge since 6 years due to competition in the inter labour market where they need to adopt some of the innovative strategies so as to pose tough competition in the inter sector market. The main issue that is highlighted in this journal is the subject of employer of choice or EOC characteristics. From an employer perspective this represents the culture, practices and leadership strategies that are followed in the organization so as to attract the best talent and also to retain them so as to achieve the objectives of the organization. On the contrary from employee perspective EOC states that contractors, employees and workers prefer to work with the same employer when they are subjected to other employment options. The concept of EOC has been applied in some organization as well as they are not considered to hold much of importance by the employer (Sedighi and Loosemore 950).There is always an issue that fresh graduates are more concerned about a good career path then to be attracted to a good employment opportunities. It has also been noticed in some of the organizations as stated in the journal that EOC strategies has been able to increase the overall productivity of the organization but in some cases there is no such evidence that can be determined as to whether such strategies really attract and can retain talented pool of graduates in the system. SWOT analysis The SWOT analysis would be on the basis of situation that has been identified in the journal paper. The major strength of the situation is that EOC characteristics make the employee have a clear and defined picture about the employer and also facilitates choosing a particular organization when they are wide array of options in front of the candidates. The other strength is that it helps to attract talents as well as retain those talents in the system which is highly essential in the competitive labour market. The weakness being such kind of strategies often hides the actual image of the employer and proves to be not a suitable option for long run. The graduates are more focused on good employment options and would not be affected by such characteristics if the reality is totally different. The opportunities would be primarily concerned with the construction industry if the findings of the journal paper are well analyzed and further research can be conducted then the gap between the demand and supply of talented graduates can be diminished. The major threat is that other industry sector though not adopting such characteristics but through innovative strategies and well defined career path has been able to attract more number of fresh graduates that brings down the number of candidate options for the companies in this particular sector. Evaluation of HRM issues in the journal paper One of the major factors that need to be embedded in any HRM strategies of an organization is proper designing of recruitment and retention strategies for the workforce. These strategies differ from one firm to another but play a very critical role in increasing or decreasing the productivity. However as per personal opinion EOC characteristics are able to attract candidates but for their retention it is very essential that employer needs to offer a safe, healthy workplace environment, and better career opportunities that would be able to hold on such talented candidates in the system. There are various qualities that can be possessed by a workplace environment but the most important amongst them is healthy workplace relationships, good learning environment and an environment full of passion towards the job. However the preferences of fresh graduates in comparison to those who possess work experience is totally different. As the graduates who are entering into a new sector are more concerned with the salary structure and the others having work experience are aligned towards a good atmosphere which has better leadership skills, and supportive workplace environment. The major factor to be considered by the organizations in the construction industry is that they need to stay aligned with the EOC characteristics and give attention to all of the workplace characteristics so that they are able to generate more of employee satisfaction in the system. Process map of the methods and analysis The method that is implemented in the journal is an electronic survey that was conducted in UK across 26 universities so as to determine the relationship between employer preferences of graduates and factors affecting such preferences. The analysis of data collected through the survey has been carried on by appropriate statistical tools so as to derive right outcomes through the research study which can be generalized for the construction industry. The process map for the method and analysis is given below- Journal 2 Analysis of the issues The concept of career development as highlighted in this particular journal is able to overcome much of the problems that are faced in recruiting and then retaining employees in the construction. This paper analyzes the ways through which the knowledge gap can be met and strong connection can be established between the aspirations of craft and trade employees with that of actual reality of the career development opportunities that prevails in the construction industry of UK. Career for employees is a search for progression as well as development within the boundaries of their occupational area. There are various activities that can be included within the career development options such as formal or informal training, self-analysis, and career discussions and planning, positioning of job vacancy, review of compensation policies and rewards, replacement planning, setting up of career paths and counselling. The major focus of most of the construction companies has been towards flexibility in the system by means of which they tend to go for sub-contracted labour rather than direct employment (Kappia, Dainty and Price 253).This has resulted into more of non-paternalistic relationship that has limited the employer to plan for strategies to retain the employees and also at the same tine reduced the investment level in such training programs. The major issue that has been analyzed in this journal is that often most of employers may that be in construction industry or in some other sector assumes that monetary rewards is the best method to motivate employees but such cases in reality is applicable to the labour force and not to the employees at craft and trade level who are more inclined towards career and development opportunities (Cartwright 95).The two factor theory of Hertzberg stated that both the hygiene factors and motivation factors serves as principle motivators for an employee. The issue of career development is dependent on various factors that are intertwined such as aspirations and preferred career path of an individual with that of the opportunities that can be given by the organization in which the individual works. SWOT analysis The major strengths of the career development factor is that it helps to attract candidates towards the job as they are able to see a clear defined path that would help them to succeed as well as grow in the future. The other strength of this issue is that it helps in fostering more of employee commitment towards the system as they would be getting more of opportunities and there would also be no limitations in their performance as they would be able to progress. This would be the biggest strength for the construction industry to remain competitive as well as face all the challenges that it is undergoing in the labour market. The weakness of this factor is that it encompasses a huge amount of cost that needs to be devoted towards training and development programs. In case of construction industry which majorly runs on subcontractor basis there would be a need to set career paths which would encourage direct employment for the company. The opportunities is that it helps to expand business from the employers perspective and on the other hand from the employee perspective it helps in acquiring more of knowledge being in the same organization and also set forth individual goals and targets for the future. The threats majorly comprise of low level of commitment of workforce. The employees may gather the required knowledge and then shift to some other better organizations with good pay structure which in turn would be a major loss for the company both in terms of workforce as well as cost that is employed in such career programs. Evaluation of HRM issues in the journal paper The major HRM issues that has been highlighted in the journal is the differences in preference toward the various factors related to the workplace conditions such as job security, social relations, job content, career development, work conditions and financial incentives. However the major factor of concern is that can career development address much of the issues that are related to recruitment and retention of employees in the workplace or all the factors needs to be given equal importance so as to mitigate much of the challenges that are faced by the companies in the construction industry. Some of the factors are not very well addressed in the journal as there needs to be equality amongst all the elements such as career development options, employment and opportunities for progression. The major objective of companies should be to motivate employees by following a mix of options that is available amongst which most of the research studies states that having a well structured career path is the best way to retain the craft and trade workers in the system. However to generalize that career development can recruit and retain the employees is not an appropriate approach because the human resource strategies must encompass all the motivational factors which forms the pillars to make the job attractive for the employees as well as makes them committed towards the job role they perform. Process map of the methods and analysis The research method that is undertaken to address the issue of career development as outlined in the journal is given below in the form of process map- Part 2 Recommendations Outline of organization for recommendation UAE comprises of many well known construction companies that has been undertaking complex construction projects which has proved to be an example across the globe. The recommendations that need to be given would be subjected to Arabtec Construction Company. This organization is the market leader in the construction industry in UAE. The company positions itself has creating memorable experiences through its expertise and capabilities. The company has undertaken many projects such as residential developments, entertainment, commercial buildings, hotels, industrial projects, stadiums, and airport developments in the MENA region, even in Russia and across the globe. The company has been able to set high standards in the UAE market through its talented pool of workforce who are given proper training and development and even encouraged to share their innovative ideas so that the best projects or buildings can be constructed that would enhance the experience of people visiting such places (Gorgeninder 155).The main goal of the company over the years has been to stay high on their commitment which is to deliver quality and incorporate best of employment practices in the system. The company was invented in the year 1975, since then the company has been able to adopt far-reaching and diverse portfolio of major projects may that be infrastructure or real estate sector. The company in the present scenario has highly advanced equipments and even encompasses a multinational team that comprises of 40,000 staffs who are highly qualified and possess the required skills and expertise that is necessary to be in this industry. They have been able to form a strong client base simply because the projects that they undertaken are delivered as per the schedule and within the time frame. The company encompasses the best quality measures at every step of its operations so that they are able to deliver the best of quality work and at the same time enhance further improvement and exceed the expectations of their clients (Ashworth 139).However apart from the sound business strategies that are adopted by the company it is very essential that there are effective human resource methods and strategies that are incorporated in the business operation so that the highly talented workforce can be retained within the organization and this in turn would even help the company to overcome much of the challenges that are posed by tough competition in the UAE construction industry. Proposed HRM tools, strategies and methods to implement findings The major findings that were associated with both the journal papers were inclined towards two major aspects EOC characteristics and the importance of career development for an employee as well as an employer. Arabtec Construction Company has been able to set high standards not only through its performance but also through the level of commitment that it maintains in the system. However the company has not incorporated any form of retention strategies in the system that would enable them to hold on the talented personnel in the system that would be beneficial for the company in return (Moskowitz 104).The major HRM strategy that should be implemented in this organization is a well structured performance appraisal system. This would help the company to monitor individual performance as well as impart the necessary training and development programs to the individuals who are lacking the required skills in order to perform well in the system (Callan 115).This strategy would even encompass some motivational elements such as rewards and appreciation so that the employees have a high satisfaction level and can be retained in the system. Such programs are even recommended to possess a career development program through which common discussions can be held on careers goals on individual basis. This would help in revealing the actual career initiatives of the employees and also would facilitate the management to develop better strategies so that employees can be guaranteed the career path through the organization. In order to attract more number of candidates towards the system the company must adopt strategies such as review and feedback from the employees so that the exact policies and the workplace environment can be portrayed to the external environment in the best possible way. The method of career development is not the only principle motivator for the employees but the organization needs to develop a healthy and safe workplace environment along with coordination amongst all the team members which can be achieved through conducting meetings and resolving the issues that are faced by the employees (Martin 94).The most appropriate HRM tool that can enhance the workplace climate is through designing training and development programs by which the employees would be able to learn new concepts and ideas and at the same time they would be able to disclose the areas where they are lacking so to perform well and above the expected standard. Identification of challenges and ways to overcome The strategy that needs to be implemented in the organization has common objectives that are well-being of the employees along with the increase in the overall productivity of the organization. The HRM strategies may that be towards career development, training initiatives, performance measurement, or developing EOC characteristics through feedback and review needs to be well communicated to all the team members in the system (Bonnici 105).The first challenge that may arise is that some of the individuals of the management may not be supportive towards such new recommended strategies in the system and can be more inclined towards the traditional approaches that were followed in the organization (Liverore 123).The other challenges would be in the form of employees or other team members being reluctant towards accepting such new strategies to be incorporated in the system. As in the case of motivators some employees may feel that money is the major source of motivator for them but for other job environment and career opportunities are major motivators this would pose a challenge in terms of aligning the entire group on a common platform. The other challenge would be in the form of additional cost and time that needs to be imparted in such strategies that could have been utilized in developing plans and strategies for other construction projects (Armstrong 143).However in order to meet these challenges it is very essential that the management of the organization be clear on the aspect of importance and benefits of the strategies that needs to be incorporated. The first step that should be taken by the management is to set forth the goals and objectives of the new strategies and to communicate it clearly amongst all the team members so that they are able to effectively participate in the new form of business practices. The other way to overcome such challenges is by organizing an open discussion where the feedback of all the team members can be effectively incorporated so that none of the members feel inferior towards the HRM tools and strategies implementation into the system. Communication is the best measure to overcome such challenges as it helps to eliminate the loopholes that are associated with such methods and on the other hand even enhances participation from all the team members in the organization. The cost factor as a challenge can be easily eliminated when the benefits of such strategies through retention of team members can be analyzed by the management of the organization. Works Cited Armstrong. Michael., A Handbook of Human Resource Management Practice. Great Britain : Kogan Page Publishers. 2006. Print. Ashworth. Allan., Contractual Procedures in the Construction Industry. New York: Routledge. 2013. Print. Bonnici. Charles., Creating a Successful Leadership Style. United Kingdom: R&L Education. 2011. Print. Callan. Victor., The Best-Laid Plans: Uncertainty, Complexity and Large-Scale. Organisational Change. Business Review. 2004. Print. Cartwright. Roger., Implementing a Training and Development Strategy. UK: John Wiley & Sons. 2003. Print. Gorgeninder. Viktor., A Strategic Analysis of the Construction Industry in the United Arab Emirates. Germany: Diplomica Verlag. 2011. Print. Kappia. Joseph., Dainty, Andrew., and Andrew, Price. Prioritizing career development in relation to recruitment and retention: a trade and craft perspective. Construction Management and Economics. 2007. Vol. 25, pp. 239-253. Print. Liverore. David., Leading with Cultural Intelligence. New York: AMACOM Div American Mgmt Assn. 2010. Print. Martin. John., Human Resource Management. London: SAGE. 2008. Print. Moskowitz. Michael., A Practical Guide to Training and Development: Assess, Design, Deliver, and Evaluate. USA: John Wiley & Sons. 2008. Print. Sedighi. Farid., and Martin, Loosemore. Employer-of-choice characteristics in the construction industry. Construction Management and Economics.2012. Vol. 30, pp. 941-950. Print. Read More