Assessment on Factors Affecting Productivity of Employees in the Construction Industry, The Case of Building Projects in Addis Ababa; Executive’s Perspective

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Addis Ababa University


This study aimed to examine factors affecting productivity of employees in the construction industry from the point of views of construction company’s executives. Factors such as proper management and supervision, innovation, supply chain management of construction inputs, demotivating factors, motivational schemes, competence skill of employees and similar factors contribute to the efficiency and productivity of the construction sector are evaluated. The construction industry in Ethiopia, worth billions of dollars every year and of that enormous sum, significant portion of it is lost as wastage that reduces much the effectiveness and productivity of the sector. The wastage is a combination of many factors out of which problem related to human resources constitute the major share that needs to be addressed in managing construction projects. The sample size for the study is 288 comprising of executives leading and administering Grade 1,2 and 3 construction company’s involving in building constructions in Addis Ababa. The sample population was distributed between contracting companies: 146 executives’ of grade 1 contractors, 60 executives of grade 2 contractors and 82 executives of grade 3 contractors companies. In the study, quantitative research methods were used. Primary data was obtained using questionnaires and literature sources ware also collected from books, journals, past research works, official documents and the internet. Purposive and random sampling ware used to select proportional number of samples from the study area. Data were analyzed using percentages, and correlation. The study has also focused on examining the extent of awareness of construction company’s executives about factors affecting productivity. The results obtained from the study indicated that majority of the respondent executives do not give much attention to factors hindering productivity of employees. Some of the major factors that are given little or no attention includes: compliant management systems, orientation at entry when employees join the company, implementation of effective construction waste management, timely monitoring and evaluation, capacity building schemes, and transparent communication, are some of the major factors neglected in construction companies employees management systems. This paper suggests that there should be continuous effort to identify and raise awareness of construction company executives, core staffs, other employees and actors in the sector to improve the factors affecting productivity of employees in the construction sector with special emphasis to building projects.



Construction Industry