Construction Management

Chair
Human Resource Management in Construction (COTM 3161)

Chapter-1
Need for Human Resources Management in
Construction projects/organization.

Sisay Alemu

December,2022
 Contents
Human Resources Management in
Construction
1. Introduction
2. Management Functions
3. Levels of Management
4. Managerial Skills
5. Organization Management
6. Staffing and Motivation
7. Leadership
8. Human Resources Management in
Construction
 1. Introduction

Management: Definition
 A means of achieving political, economic, and
social
objectives.
 A means of integrating resources (materials, finance,
human resources, information, etc.,) in order to achieve
organizational objectives efficiently and effectively.
 A means of getting things done through people in
order to achieve objectives.
 1. Introduction
 What is Management? It’s:-
 a process of planning, organizing, leading/directing
and controlling of organizational activities in order
to achieve objectives.
 a process of establishing vision, mission, values,
objectives, goals, and strategies and communicating
these, and guiding and empowering others
to accomplish them.
 2. Management Functions

 Management is a set of goal-directed, interrelated

and interdependent activities, aimed at
accomplishing organizational goals in an efficient &
effective manner.

 Generally, management functions encompass:

planning, organizing, leading and controlling.
 2. Management Functions
 Vision – Big picture of what you want to achieve.
 Mission – General statement of how you will achieve the vision.
 Core Values – How you will behave during the process.
 Strategies – Strategies are one or more ways to use the mission
statement in order to achieve the vision statement. Although an
organization will have just one vision statement and one mission
statement, it may have several strategies.
 Goals – These are general statements of what needs to be
accomplished to implement a strategy.
 Objectives – Objectives provide specific milestones with a
specific timeline for achieving a goal.
 Action Plans – These are specific implementation plans of how
you will achieve an objective.
 2. Management Functions
Management Function inputs and
outputs

Management sets
direction
Planning
Performance
Resource
•Attain goals
•Hsuman
•Products
•Financial
Controlling Organizing
•Services
•Raw Materials
•Efficiency
•Technological
•Effectiveness
•Information
Leading
Input Outpu
s ts
 2. Management Functions

 Planning is devising a systematic approach for attaining the goals of the

organization.
 Organizing is determining how activities and resources are grouped and the
composition of work groups and the way in which work and activities are to
be coordinated.
 Staffing: Sourcing, developing & utilizing human resource at the right quality,
right quantity, right cost, right source at the right time to the right job.
 It involves understanding of the job, manpower planning,
recruitment, selection, training and development, compensation
appraisal etc.
 Leading is guiding, leading & overseeing of employees to
organizational goals.
achieve
 Controlling is establishing performance standards and comparing results and
expectations to make appropriate changes.
2. Management Functions

Manageme
nt
Functions
 3. Levels of Management
Manager: Definition
 The people looking beyond themselves and exercising
formal authority over the activities and performance
of other people in pursuit of organizational goals.

 Someone whose primary responsibility is to carry out

the management process.

 Someone who plans and makes decisions, organizes,

leads, and controls human, financial, physical, and
information resources.
 3. Levels of
Management
 Top Managers
 The relatively small group of executives who manage the
organization’s overall goals, strategy, and operating policies.

 Middle Managers
 Largest group of managers in organizations who are
primarily responsible for implementing the policies and plans
of top managers. They supervise and coordinate the
activities of lower-level managers.

 First-Line Managers
 Managers who supervise and coordinate the activities of
operating employees.
 3. Levels of Management
Levels of Management

Top managers

Middle managers

First-line managers

Areas of Management
4. Managerial Skills

Make decision about the

overall direction and
performance of
the organization

Translate over
the
direction all and
performance into specific
objectives and plans

Implement
directions and plans
through
production and
delivery of
services
 4. Managerial Skills
 Conceptual skills are the capacity to think in the
abstract and to see the organization as a complete
unit and to integrate and give direction to its
diverse activities so that objectives are achieved.
 Interpersonal skills are the ability to
communicate with, understand and motivate both
individuals and groups.
 Technical skills are skills necessary to
accomplish or understand the specific kind of
work being done in an organization.
 4. Managerial Skills

Conceptual Skills
Intellectual ability to process information and make accurate decision
about the work, group, & the job

Interpersonal Skills
Management
Communication , conflict resolution, leading
Skills
Technical Skills
Knowledge & ability to accomplish the specialized activities of the
work group

Top Level Middle Level Lower Level

 5. Organization Management
5.1 Organization and its Management
A. Organization: Definition
 A consciously coordinated social unit, composed of two or more
people influencing each other that functions on a relatively
continuous basis to achieve a common goal or set of goals.
 It is a structured process in which people interact and influence each
other in order to achieve objectives
B. Components of organization
 People,
 Influence,
 Goals or Purpose,
 Structure, and
 Technology.
 5. Organization Management
5.1.Organization and its Management
C. Organization Environment
Macro or Far Environment

Near or Operating
Environment Economic
Political
Factors
Customers Partners
Factors

Clients ORGANIZATIO
N
Suppliers Technologica
Social Competitors l Factors
Factors
 Effectiveness?
 The degree to which goals are achieved
 Achieving the end result/the thing itself
 Doing the right things
 Efficiency?
 Using minimal resources to produce the desired volume
of output
 Using resources wisely and in a cost-effective way
 Operating in such a way that resources are not wasted
 Doing things right
 Efficiency
Efficient Inefficient
Effective-Efficient Effective-Inefficient
Thrive: Achieves the right objective, Survive: Achieves the right
goal, with good use of resource objective, goal, with poor use of
Effective

Result: resource
– Product (Project) that customers Result:
want – Product (Project) that
Effectiveness

– Product that customers can customers want

afford – Product that customers can’t
afford

Ineffective-Efficient Ineffective-Inefficient
Dies Slowly: Achieves the wrong Dies Quickly: Achieves the
objective, goal, with minimum use wrong objective, goal, with
Ineffective

of resource poor use of resource

Result: Result:
–Product that customers do not –Product that customers do
want not want
–Product that customers can afford –Product that customers
can’t
if AtAhUe, EyiABwC,aHnut atoR afford if they want to
 Efficiency: Operate in
2 such a way that
0
resources are not
wasted

Organizational
Success

Effectiveness: Doing
the right thing ,
achieving goals
 5. Organization Management
5.2 Organization
Design
 O rganizational is creating an
organizational
design structure appropriate
that will enable the
organization to accomplish its goals.
 The organization can choose from
among functional, divisional or
matrix designs, whichever is appropriate.
 It is the process of arranging, allocating work
authority &
resources to achieve organization goals.
 It involves:
 Identifying tasks to be performed;
 Allocating the tasks among members; and
 Integrating efforts to achieve its objectives.
 5. Organization Management
22
5.3 Organizational Structures
Key Concepts
 Span of Management Control: The number of
subordinates reporting directly to a given manger;
 Chain of Command: The plan that specifies who
reports to whom in an organization, such reporting lines
are prominent features of organization chart;
 Coordination: The integration of the activities of the
separates parts of an organization to accomplish
organizational goals; and
 Downsizing: A version of organizational restructuring
which results in decreasing the size of the organization
and often results in a flatter organizational structure.
 5. Organization Management
23
5.3 Organizational Structures
 Organizational structures can fall into either
mechanistic
or organic forms.
 Mechanistic organizations are rather rigid in that
they comprise distinctly delineated jobs, clearly
defined hierarchical structure and are driven
primarily by top- down command and control.
Mechanistic organizations are tall structures,
 consisting
O rganic ofstructures
hierarchies with several layers
are relatively They of
management
flexible.
structurally levels.are
decentralized, empowering employees
at all levels of the organization to take personal
responsibility for the processes and activities in
which they are engaged.
 5. Organization Management
3. Organizational Structures
1. Functional Organization
 In a functional organization, tasks or jobs of similar
nature are grouped together and structured as a unit.
Each unit is staffed by functional specialists.
 Structuring the organization along the functional lines
facilitates good coordination and makes supervision of
the unit easy for managers as they only need to be
familiar with a narrow set of skills.
General Manager

Marketing Mgr. Production Mgr. Finance Mgr. HRM Mgr.

 5. Organization Management
5.325Organizational Structures
5.3.2 Divisional Organization
 Divisional structures are grouped according to workflow and
structures are made up of independent strategic organizational
units.
 The workflow can be broken into product lines, geographic
regions, etc.

GM (Head Quarter)
(A.A)

DGM (Awasa) DGM (Mekelle) DGM (Bahir Dar) DGM

(Jimma)
 5. Organization Management
2
6
5.3 Organizational Structures
5.3.3 Matrix organization
 In matrix organization, individuals are made
responsible both to their line manager and the
project manager involved.
 The matrix concept facilitates working on concurrent
projects by creating a dual chain of command, the
project (program, systems, or product) manager
and the functional manager.
 Matrix structures utilize functional & divisional
chains of command simultaneously in the same
part of the organization, commonly for one-of-a-
kind projects.
 5. Organization Management
2
5.3
7 Organizational Structures
5.3.3 Matrix organization

Head Quarter

Materi
Human
Productio Financ Marketin al &
Resourc
n e g Procur
e
ement

Marketin HR
Project Productio Financ Material
g Grp Gr
A n Grp e Grp s Grp
p
Manage
r

Productio Financ Marketin Material

Project HR
n Grp e Grp g Grp s Grp
B Gr
Manage p
r
 6. Staffing , Motivation & Leadership

6.1 Staffing
 A staffing system is defined as a model and a
process for those who recruit, screen, interview,
and hire new employees.
 Staffing is critical to improve the quality and
performance of employees at all levels of an
organization. Therefore, it should be a strategic
priority for the manager.
 The manager not only set the vision and strategy
but also hire the people to achieve them.
6. Staffing , Motivation & Leadership
29
6.1 Staffing
 When properlydesigned and
implemented, it leads the
manager through the hiring process from start to
finish.
 A well designed staffing system:
organization;
 Helps in hiring the right people;

 Supports
Creates management
consistency in hiring decisions
 development
Helps to ;improve the
throughout benchmarking
organizatio the
throughout
 n;Reduces costs of the hiring
process; and
 Limits liability.
 6. Staffing and Motivation
3
0
Staffing Process
 The best staffing option is the one that takes into
consideration, to the greatest extent possible,
both the current & future business needs of
your organization.
 By choosing options that can, in the long run,
save time and resources, you can ensure the
availability of staff for the work that needs to be
done – for now, and for the future.
 6. Staffing and Motivation
6.2 Motivation
 Motivation is a driving factor for actions,
willingness, & goals.
 Motivation is derived from the word motive, or a
need that requires satisfaction.
 These needs, wants or desire may be acquired
through influence of culture, society, lifestyle, or
may be generally innate.
 Motivation categorized in to two:
 Intrinsic
 Extrinsic
3
2 6. Staffing and Motivation
 6.2 Motivation
 Extrinsic motivation is when we are motivated to
perform a behavior or engage in an activity because
we want to earn a reward or avoid punishment.
 Intrinsic motivation is when you engage in a
behavior because you find it rewarding. You are
performing an activity for its own sake rather than
from the desire for some external reward. The
behavior itself is its own reward.
 According to research, intrinsic motivation has more beneficial
outcomes than extrinsic motivation.
 Motivation has been considered one of the most important
reasons to move forward.
 Motivation results from the interaction of both conscious &
unconscious factors. Motivation governs choices among
alternative forms of voluntary activity.
 6. Staffing and Motivation

 An individual's motivation may be inspired by outside forces

(extrinsic motivation) or by themselves (intrinsic
motivation).
 The difference between intrinsic motivation &
extrinsic motivation depends on the actions behind it.
Intrinsic motivation has to do with having an
internal desire to perform a task
 Extrinsic motivation has to do with performing a task in
order to receive some kind of reward.
 6. Staffing and Motivation
34

Extrinsic Motivation Intrinsic Motivation

 Participating in a sport to  Participating in a sport
win awards because you find the
 Cleaning your room to activity enjoyable
avoid being reprimanded  Cleaning your room
by your parents because you like tidying up
 Competing in a contest to win  Solving a word puzzle
a scholarship because you find the
 Studying because you want to challenge fun and exciting
get a good grade  Studying a subject you
find fascinating
 3 7. Leadership
5
 7. Leadership
 It’s both a research area, and a practical skill
encompassing the ability of an individual, group, or
organization to "lead", influence, or guide other
individuals, teams, or entire organization.
 Often viewed as a contested term, specialist literature debates
various viewpoints, contrasting Eastern & Western approaches to
leadership, and also (within the West) North American versus
European approaches.
 U.S. academic environments define leadership as "a process
of social influence in which a person can enlist the aid
and support of others in the accomplishment of a
common task".
 Others have challenged the more traditional managerial view of
leadership which believes that it is something possessed or owned by
one individual due to their role or authority, & instead advocate the
complex nature of leadership which is found at all levels of the
institution, both within formal roles.
 7. Leadership

 7 Leadership
 Leadership is a matter of
intelligence, trustworthiness, humaneness,
courage, & discipline. But:
 Reliance on intelligence alone results in rebelliousness.
 Exercise of humaneness alone results in weakness.
 Fixation on trust results in folly.
 Dependence on the strength of courage results in
violence.
 Excessive discipline & sternness in command result in
cruelty.
 When one has all five virtues together, each
appropriate to its function, then one can be a leader
8. Human Resources Management in
Construction
 Human resource management (HRM) is the process of
managing people within an organization.
 In construction, HRM is primarily concerned with ensuring
that a project has sufficient human resources, with the
correct skill-sets and experience, for the project to be
successfully completed.
 Because construction is frequently project-based, the HR
manager's duties and responsibilities mostly involve
working with construction managers.
 All of the HR professionals look for skilled, experienced
candidates who possess the relevant abilities to complete
the project. It is because construction work entails a wide
range of specialized activities, the talent pool for these
positions may be limited.
8. Human Resources Management in
Construction /Challenges/
 Risk that the needs of employees are subjugated by
performance concerns.
 There tends to be a transient workforce that may be made up of
different contractors and subcontractors.
 The workforce may work long hours, claim high travel
expenses, have different nationalities and working cultures, and
so on.
 Staff turnover tends to be quite high on construction projects.
 Personnel change as projects progress and different skills and
experience are required.
 There are many health and safety risks which must be managed.
 There are great number of legal requirements that must be
satisfied.
37

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YOU!