The Human Side of Construction Management A Critical Review of Human Resource Management Effectiveness in the Ethiopian Construction Industry
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Date
2003-02
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Publisher
A.A.U.
Abstract
The construction industry is a large business segment that plays a crucial role in the national
development of countries and is particularly paramount in developing economies where there
is lack of infrastructure. In Ethiopia, the construction industry suffers from lack of properly
educated manpower, deficiencies in construction management skills, inefficient utilization of
already trained manpower and a host of other problems.
This research is an exploratory investigation of human issues that contribute for the successful
completion of construction projects in Ethiopia. Human factors in construction, such as
organizational ambience, motivation, leadership and team building practices that help for the
better utilization of the resource were assessed. A survey method, using questionnaire and
interview techniques, was used to capture employees' attitudes as well as data on employee
turnover, absenteeism, lateness and accident rates.
The results of the study showed that employees have good job satisfaction. Employee
turnover was observed to be low. Peculiar arrangements for work attendance, whereby the
'psychological contract' of work between employers and employees is observed to work out
well, are found to be in place. Substantial number of accidents, out of which some were fatal,
has been reported. The 'human resource climate' was found out to be conducive as indicated
by the level of job satisfaction and employee turnover.
Higher self-actualization needs of employees have been catered for through a high degree of
freedom in performing tasks and challenging tasks. Employees however perceived that they
don't receive a fair amount of pay. The predominant leadership style was found to pe a lassesfaire
type but with more task- rather than people-orientation. Team building practices were
observed to be low with employees perceiving low team atmosphere, participative meetings
and decision-making practices.
In order to effectively and efficiently utilize the human resource in the industry, companies
are recommended to (1) cater to the basic needs of employees by providing a fair amount of
pay, (2) incorporate incentives to tie performance with rewards, (3) have managers with
professional training and experience which practice 'people-oriented' leadership style. Such
managers would pursue 'wealth-maximization' goals, which focus on effectiveness and
visionary leadership than on efficiency and management, (4) improve team atmosphere in
their organization for creating effective communication and conflict resolution platforms, and
(5) put in place safety policies and ensure their implementation to decrease accident rates
Description
The Faculty of Business and Economics
In partial fulfillment of the requirements
for the degree of
Masters of Business Administration (MBA)
Keywords
The Human Side of Construction Management