Managing People in The Construction Industry - Research Paper Example

PEOPLE MANAGEMENT INTHE CONSTRUCTION INDUSTRY LITERATURE REVIEW People management in the construction industry is different from traditionalhuman resource management. This is based on the presupposition that there are inherent differences between traditional organisations and the construction industry. In spite this difference what is essential is the recognition of the central role of people in all business transactions. In this regard, the question of the paper is how is people management in the construction industry undertaken? And to answer this question a literature review has been done. It is found out that there are limited research on this topic. Likewise, people management in the industry taps strategies that recognises the innovativeness, creativity and knowledge of its people. These are: teamwork, visionary and organic leadership, construction culture, trust, integrity and upholding worker’ rights. 1.0 INTRODUCTION Construction industry is one of the most complex, and dynamic industries today (Koskela, 2oo4). Its complexity and dynamism is attributed to the fact that different experts from various fields come and work together for a particular project to be actualised and the projects which it undertakes. This means that from the beginning stage till the delivery of the product to the client the complex and dynamic interrelation and interdependence among the different parties of the project –clients, contractors, subcontractors architects, local government, specialist fire department, civil engineers, electrical engineers and all the other experts which are all members of the team is maintained. Moreover, as the construction industry is project oriented the notion of project is to be understood as a unique set of coordinated activities, with a definite starting and finishing point, undertaken by an individual or organization to meet specific objectives within defined schedule, cost and performance parameters. (BS 6079-1, 2000: 2). In this regard, the primary characteristics of construction project include: fixity of place, uniqueness, require combination of specialists, requirements of specific time, cost and quality and requires progress elaboration (Gary and Larson, 2008; Gardiner, 2005). This combination of construction project and experts working as a team create a unique dimension in the nature of construction industry. In this regard, one aspect of the construction industry that is as significant and important as all the other elements of the construction industry is the human resource. The intricate human resources that are involved in the construction industry highlights the vigorous and interconnected human relations that is necessary in the accomplishment of projects in the industry (Isik et al, 2009). However, what is seemingly surprising is that as the focus on the understanding and elucidation of the prime significance of human resource management in traditional organizations abounds (eg. Wood & Menezes, 2008; Wolfgang & Brewster, 2005; Vandenabeele & Hondehem, 2008), there is an opinion that there seems to be a very limited study being conducted on human resource management in project oriented industries like the construction industry (Stratton, 2009; Huimann et al, 2007). And in response to this limitation, this paper intends to look into people management in the construction industry. STATEMENT OF PROBLEM As there is limitation in the number of studies that is being conducted in human resource management in the construction industry, this paper will look into the question how is people management in the construction industry undertaken? PURPOSE OF THE STUDY This study intends to provide a literature review of people management in the construction industry. In this way, although there is a limited study pertinent to this subject, a clearer and better understanding of the significance and vital role of people in the construction industry will be attained. SEARCH METHOD The electronic database Academic Premier, Google Scholar, ERIC, was searched using the following key terms: human management, organization, construction industry, human resource, people management, projects and construction. Articles written only in English and were published from the period of 1995 -2010 were included in the selection. Likewise, literatures which presented conceptual and quantitative analysis of people management in construction industry were included. Excluded from the selection were books, editorials, position papers, monographs and pamphlets. The reference list of the articles was searched to identify additional relevant publications. STRUCTURE OF THE PAPER The paper will be having the following structure. First, is the introduction which contains the introduction to the study, the statement of the problem, the purpose of the study, the search method, and the structure of the paper. The second part is the literature review. Finally, the third part of the paper will be its conclusion. In the end, it is the hope of the researcher that this paper may add to the understanding of people management in the construction industry. 2.0 LITERATURE REVIEW As mentioned before, there are numerous scholarly literatures written pertinent to human resource management in traditional organizations. This is not surprising since organization in the contemporary period has changed dramatically from being just focus on profits and gains toward the recognition of the primordial importance of the role of the workers in the achievement of the visions, goals and objectives of the organization (Ramirez & Beale, 2007). Furthermore, in contemporary businesses, workers of the firm are acknowledged as the real wealth of the corporation (Westley & Mintzberg, 1989). In this regard, it is an accepted truism in human resource practices that a good working relation among the management, the human resource and employees creates an opening “that in high performance work systems, the focus is on more than simply information sharing; they also involve the decentralization of decisions and work enrichment, that is providing employees with opportunities for involvement in decision-making and innovation” (Wood & de Menezes 2008, p 639). In this way, employees are encouraged to be creative, innovative and are continuously challenge to best themselves and perform beyond the expectations of the performance of their functions (Brewster, 2007). This transformation happens because they see themselves as part of the organization and that the vision and objectives of the organization becomes their own goals (Avery, 2004). This relation that exists between the management and the employees can easily be observed and studied because of the nature and cycle of traditional organizations that are being studied (Huemann et al, 2007). On the other hand, people management in the construction industry is different from traditional human resource management (Huemann et al, 2007) This is due to the focus and nature of the industry. The construction industry is project oriented, which means that the stringent requirement of time, costs and quality should be met at a definitive period (Gary & Larson, 2008; Gardiner, 2005). This factor, together with all the factors that affect the notion of project in the industry redefines the very structure and nature of people management in the construction industry and differentiates it from traditional human resource management (Stratton, 2009; Huemann et al, 2007; Lowe & Skitmore, 2001). What does this mean? DIFFRENCES AND POIGNANT SIMILARITY In the traditional organisations, the function of a particular office or job is defined over a long period of time, while, in the construction industry, although the job and function is defined, its implementation varies per project. Adjustments and re-interpretation of the function or job is continuously done dependent on the project that is being undertaken and the demands of the client (Dainty et al,2006). Definitely, the core functions remain, however, the manner with which it is to be adapted and approached depends on the project being worked at and on the demands of the client (Stratton, 2009). In this regard, the creativity and innovativeness of people working in construction projects are constantly put to the test due to the demands of the project (Tabassi & Abu Bakar, 2009). Another difference is time. In traditional organisations, observations regarding the performance of the employee can be carried out for a longer time span. While on the other hand, the construction industry, the time allotted for the performance of the job to measure the competence of the employee is limited (Dainty et al, 2006). This is primarily because of the fact that projects have limited allocated time for its delivery. And that any delays in the delivery of the project in the industry is a loss of profit and a bad publicity (Shane et al, 2009). Going beyond the schedule is a measure of failure for the construction project. Being such, the limitation of time for the evaluation of the performance of employees in the construction project points to one of the differing characteristics of people management in the construction industry. Another divergence of people management in the construction industry is the product to be delivered or the project itself. Construction product is based on the need and demands of client, and it executed in accordance with specific design requirements and built in specific selected locations. Thus, it is considered that most projects are single typed, customized products, rather than bulk products. The product may be a house, a road, a highway, a high-rise building, and the likes. In this sense, as the kind of project varies from one time to another, that it is limited by time and as to the nature of the product delivered, people management in construction industry is dissimilar from traditional organisation’s human resource management. However, in spite of this inherent differences between people management in the construction industry and the traditional organization human resource management, what is significant is that both attest and affirm the crucial and central role of people in all industries regardless. SOURCE: Young, 1996 This diagram shows that high performance can only be achieved if the requirements of time, costs and quality will be incorporated in the processes where human engagement becomes necessary part of the processes. Moreover, it presents the notion that construction industry has already recognised that the projects that they take is not something removed from the context of society but that it is literally at the heart of the human world. The structures that they establish necessitate the involvement of people –the employees, the supply chain, the client and other stakeholders. This recognition of the central role of people in all business transactions in the contemporary period is a vital part of the nature of contemporary organizations. Knowing that the construction industry is unique, how is people management undertaken? However, before this question is directly addressed, the term people needs to be clarified to remove the ambiguity that may result from its use. There is a necessity for this because the scope of human relations that is established in the construction industry is very broad. Relationship with the clients, the contractors, the sub-contractors, the workers, and the government are all established in constructions projects (Isik et al, 2009). In this regard, as a limitation, the concept of people management pertains to the internal relations of the management and the workers. Thus, it is human resource management. However, people management is opted because of the supposition that humans are not resources that can be discarded but are persons who are capable of entering into discourse and concerted act with other human beings (Stratton, 2009). PEOPLE MANAGEMENT IN THE CONSTRUCTION INDUSTRY Knowing that people management in the construction industry is different from traditional human resource management but exactly the same in the appreciation of the centrality of workers’ role in the achievement of the goals of the project or organization, people management in the construction industry incorporates management strategies that taps and recognises the abilities and knowledge of her people. How? First, is teamwork. As noted earlier the construction project requires the working together of various experts from different fields. In working harmoniously, they attain the delivery of project on time without cost overrun. Working harmoniously can be attained via teamwork since teamwork attests to the collaborative activity that defines the construction industry (Effective Teamwork, 2004;Hällgreen & Wilson, 2008). Teamwork shows that people management in the industry is heterarchical as opposed to hierarchical management (Fiori & Knutsen 2006; Dainty et al, 2006;Elimualim & Govender, 2006). This means all the members of the team are important and that their contribution is equally significant for the success of the project. It shows that people management in the construction industry is primarily egalitarian and democratic (Fiori & Knutsen, 2006). Thus, it is very important that teamwork, which is collaborative work, should be maintained in all phases of the construction. In this regard, key elements are identified as essential in developing, maintaining, sustaining and harnessing teamwork in the industry. These are: Team identity which means that the team jointly accepts the responsibilities and the challenges they encounter. Shared vision which implies that the team has shared vision and set of objectives, developed collaboratively and regularly reviewed. Communication which connotes team members actively and openly sharing their knowledge and ideas around the whole team. Collaboration and participation signify familiarity, honesty, mutual trust and full participation harness the collective expertise of the team. Issue negotiation and resolution purports the idea that divergent views are welcomed as a source of energy and a spur to the team’s creative problem-solving. Reflection and assessment demands that the team regularly reviews members’ roles and their impact on the team and acts on the outcome. SOURCE: Effective Teamwork, 2004 These six elements are necessary as teamwork becomes the strategy utilised in people management in the construction industry. Second, is leadership. Leadership is the dynamic and interactive phenomenon that helps steer the people in attaining the visions and goals that are set (Westley & Mintzberg, 1989).There are several kinds of leadership but that one that is needed in the industry is a combination of visionary and organic leadership. This combination is essential since a visionary leader is one who is transformational and charismatic, who presents to the subordinates the image that he/she possesses high competence and has the ability to achieve success. Thus, the subordinates are rallied behind. Moreover, a visionary leader shows much passion and emotional involvement to the employees within the organization. Thus, empowering workers (Avery, 2004). But at the same time, leadership in the industry should be organic. Organic leadership is relatively new (Jing & Avery, 2008). Under this kind of leadership the power distinction between the leaders and the members are blurred. They work as a team and they function as a team. In this kind of leadership, there is a shared values, visions and goals within the team and that there is a strong support from the organizational culture. This kind of leadership recognizes the autonomy, freedom and relies on the self control and discretion of all the members of the group. The combination of these two kinds of leadership is vital in the success of the construction project. However, over and above this is the fact that for construction workers a true leader is somebody who is there working with them and is ready to take responsibilities and solve construction problems on site (Applebaum. 1981 as cited in Fiori & Knutsen, 2006). Third, an important facet of people management in the construction industry is respecting the construction culture. The construction culture is basically anchored on the supposition that one is working amongst one’s equals. As such, camaraderie and team spirit is fostered and serves as the foundation and buttress of the industry (Fiori & Knutsen, 2006). This is essential, since only in this environment of equals, one learns to respect the dignity and humanity of all the members of the team – both management and workers. Fourth, trust and integrity are demanded and fostered not only among the project managers or among team leaders but to all involve in the project. Finally, fifth, health and safety, recognition of workers’ rights, and good working conditions should be protected and upheld at all times, developed and assessed continuously and maintained if workers are to be motivated to embrace the visions and goals of the project (Compa & Vogt, 2001) However, despite these management strategies that are implemented in people management of the industry, there are some who claims that there is a lack of clear cut standards with which the performance of workers can be evaluated, and measures defining good management and good leadership can be judged (Tabassi & Abu Baker, 2007; Stratton, 2009). Furthermore, there are some articles, which seek to come up with Key Performance Indicators for measuring success in the industry even if the notion of success in construction is debatable (Chan, 2001). One of the indicators included is participants’ satisfaction (Chan, 2001). There is nothing wrong with this. However, participants’ satisfaction is limited only to the client, the project manager and the team leader (Chan, 2001). This scenario does not provide a clear picture of the number of workers that are involved in the success of the project and is in fact a contradiction to construction culture of working amongst one’s equals. CONCLUSION The construction industry is a project-oriented industry. Being such, its people management strategies are constrained by requirements of time, nature of the industry and the product delivered. However, despite these seeming differences, there is an exact similarity between people management in the construction industry and human resource management in traditional organizations – people centred. The recognition of the important role of the people in all business transactions is upheld in all industries. This is not surprising as this is one of the salient features of contemporary organizations. However, before addressing the problem of the paper a clarification of the term people is necessary as there are numerous human relations entered into the construction project. It is clarified that in this context, people refers to employees and managers. It has been shown that people management in the industry involves teamwork, a visionary and organic leadership, respect for the construction culture, trust and integrity as the buttress of human relations, health and safety, recognition of workers’ rights and good working conditions are all necessary in keeping motivation and shared vision among members of the project. In spite of these strategies, there are some who thinks that human resource is lacking in the industry and that there are some inconsistencies regarding people management and key performance indicators. REFERENCES: Avery, G.C. (2004) Understanding Leadership: Paradigms and Cases. London: Sage. Brewster, C. (2007) “Comparative HRM: European views & perspectives”. 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APPENDIX Benefits of successful teams Improvements in participants confidence, attitudes, motivation and personal satisfaction greater clarity in expressing ideas through group discussion better understanding by individuals of the nature of their contribution – and of the needs of other team members more efficient use of resources – especially time greater optimism – by focusing on positive outcomes and putting less weight on problems a wider range of ideas rather than individuals working in isolation more effective responses to changes – improved trust and communication help a team to adapt to new circumstances. Potential drawbacks of teamwork So-called group think can occur when a team is lulled into a false sense of satisfaction and loses its critical edge. Team members can waste time and energy in disputes and some members may opt out of the process – social loafing – leaving others to do all the work. Read More