Human Ressource Management in construction - Critical success factors in people management for construction companies

Masterarbeit aus dem Jahr 2003 im Fachbereich Führung und Personal - Sonstiges, Note: 77%, Waterford Institute of Technology, Sprache: Deutsch, Abstract: ABSTRACT Many construction organisations promote their 'soft' approach to Human Resource Management in company brochures and annual reports. This style focuses on treating employees as highly valued assets and a major source of their competitive advantage. Advocates of this application of HRM argue that this way leads to a seamless company, improved employer-employee relations and greater efficiency. Critics argue that these techniques are not new methods. Nevertheless, reality shows that there is a gap between rhetoric and reality. Organisational reality appears 'hard' with an emphasis on the quantitative, calculative and strategic aspects of managing people. In order to explore the importance of Human Resource Management in the construction industry and to illustrate the gaping disparity between theory and practice, this study is based on the findings of broad-spectrum interviews and questionnaires. Results have shown that a majority of construction companies have an in-house HRM department. This number was the highest in medium-sized companies. In corporations with a HRM department, employees were more satisfied with the overall situation and better motivated. Another finding is the relatively low amount of training. This reflects the trend towards the outsourcing of work to specialised sub-contractors. However, some companies fear that their subcontractors are not qualified enough and demand more training from them. Another result showed that monetary remuneration is not the single key motivator for employees in this business. Social empowerment and managerial recognition both scored highly as motivating factors. Induction seminars for new employees are no longer considered important to construction professionals. Teamwork within the industry is seen as vital but should be improved and further developed. However, this study found the application of HRM principles not to be a prerequisite. Some companies apply little or no HRM principles and yet, they are still successful. Further research is required to explore the consequences of this gap for organisations and employees. The findings of this study support the demand for increased practices of empowerment, higher involvement of employees in decision-making and improved communication in all levels of the hierarchy and training.