Impact of Human Capital Development on Road Contractors Performance

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Date

2017-11

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Publisher

AAU

Abstract

The Construction industry provides infrastructure that supports the other sectors of the economy. Unfortunately, the industry is saddled with numerous challenges varying from internal weaknesses to external threats that affect and influence its performance. The success of any organization and any industry depends on the human capital available. Human capital is getting wider attention with increasing globalization and also the saturation of the job market due to the recent downturn in the various economies of the world. The study is aimed at assessing the impact of human capital development on performance of road contractors. The research focused on Category 1 / GC 1 contractors and their performance on asphalt road projects specifically in the ERA and AACRA Projects. A questionnaire survey approach involving 36 professionals in various construction companies were used. The questionnaire sought to elicit response from the sample by adopting open and close ended questions. Subsequently, the response data was analyzed using descriptive statistics, relative importance index and using SPSS software. The findings revealed that the managements in almost all surveyed companies were willing to invest resources to ensure personnel development. But, lacks of detail evaluation after giving the human capital development were identified as the critical challenges for the performance of the contractors. Project performance was also examined against time and cost and the research showed that the lack of human capital development is one of the main reason for projects to complete with overruns. Thus the study re-echoed the need for well-designed and accepted training policy and systematical evaluation and impact identification mechanism for the improvement of skills, knowledge and professional development in the construction industry.

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Keywords

Construction Industry, Development, Ethiopia, Human capital, Performance, Road contractors

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