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Framework of human resource planning (HRP) inuencing factors for local workforce supply in Malaysian construction industry
Norhidayah Md Dom, Narimah Kasim and Alina Shamsudin
Department of Real Estate and Construction, University Tun Hussein Onn Malaysia, Batu Pahat, Malaysia
Abstract
Purpose Human resource planning (HRP) is important during workforce supply to help organizations appoint the right people in the right job. However, few studies have considered the role of HRP practices for local workforce supply in the Malaysian construction industry. The purpose of this paper is to identify the implementation of HRP and framework development of HRP inuencing factors for local workforce supply in the Malaysian construction industry. Design/methodology/approach A mixed method was adopted to interpret the data of semi-structured interviews and questionnaire survey. Semi-structured interviews were conducted with ten interviewees from government and non-government organizations. Questionnaires were distributed to a random selection of contractors in the urban areas of Malaysia. The data were analyzed using the Statistical Package for Social Science (SPSS) and the Matrix Table. Findings The ndings revealed that economic changes were dominant HRP inuencing factors. Only organization strategy; nature of work; economic changes; and demographic (social) changes are signicant HRP inuencing factors for local workforce supply in the Malaysian construction industry. Research limitations/implications Future research should try to adapt the HRP framework in the suitable HRP model to explain the HRP practices in construction organization. Originality/value The paper offers insight into HRP implementation in construction rms and HRP inuencing factors for local workforce supply, focusing on the construction industry in Malaysia. Keywords Malaysia, Construction industry, Labour market, Workforce planning, Human resource planning, Inuencing factors, Local workforce Paper type Research paper

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1. Introduction In the Malaysians construction industry master plan for the 2006-2015 period, human resource (HR) is the main issue in the construction industry. Therefore, it was taken as the focus of this study (CIDB, 2007). HR is dened as labor or the people who carry out business or work for an organization (Gilley et al., 2002). Human resource planning (HRP) is mostly ignored in HR in most organizations because those at the top management do not know the value of HRP (Vareta, 2010). Thus, there is the
This research is supported by Universiti Tun Hussein Onn Malaysia, UTHM, under project Fundamental Research Grant Scheme (GIS) no. 0816.

Journal of Technology Management in China Vol. 7 No. 2, 2012 pp. 177-197 q Emerald Group Publishing Limited 1746-8779 DOI 10.1108/17468771211242863

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possibility that the lack of local workforce participation in Malaysia is due to a paucity of positive examples of where such tools have been used successfully in HRP. Workforce is a number of workers available to complete an activity, job or project in the scopes of work (Randy et al., 2006). For instance; the construction industry places heavy reliance upon the skills of its workforce (Chiang et al., 2004). Accordingly, the Malaysian construction industry is highly reliant on workforce energy to provide the construction industry operations (CIDB, 2007). The country expects the majority of the construction works should be carried out by the local workforce (Hong, 2010). However, the lack of local workforce participation has become a problem in the Malaysian construction industry (Salleh, 2008). In the context of this research, the local workforce refers to general workers (labourers) which perform construction activities such as bricklaying, plastering, tiling, bar-bending, concreting and formwork. HRP is a systematic analysis of HR needs to ensure the availability of the correct numbers of employees with the necessary skills is available when they are required in the organizations (Vareta, 2010; Cherian, 2011). HRP is seen as a process that focuses on HR need and develops the essential initiatives to satisfy HR needs (Kaur, 2006). A strong analysis of internal and external factors has been used to ensure the success of HRP ( James, 2006). HRP factors are not only creating, but also shaping and changing the issues and workforce numbers in the future ( James, 2006; Keel, 2006). In addition, HRP framework is used to develop strategic planning in order to face a shrinking labor pool and understand the basic element of HRP in the organization (Cotten, 2007). In Asian countries, there are limited research studies on HRP in the construction industry ( James, 2006). The uniqueness of this research is the implementation of HRP and framework development of HRP inuencing factors for the local workforce supply in the Malaysian construction industry. It starts with a comprehensive literature review on local workforce issues in the construction industry and HRP in the construction industry. Apart from that, it discusses the lack of local workforce in the Malaysian construction industry in terms of internal and external HRP inuencing factors. 2. Literature review The literature review is discussed under two headings, local workforce issues in the construction industry and HRP in the construction industry. 2.1 Local workforce issues in construction industry The numbers of local workforce became a problematic due to the lack of local workforce participation in the Malaysian construction industry (Hong, 2010). Local workforces are uninterested in joining the construction industry because of the low wages (Salleh, 2008). The low wages are not sufcient to support the majority of local workforce life and the wages given can be erratic, depending on construction projects (Othman, 2004). Hence, the problem highlighted is concerned with the wage system offered to the local workforce for providing construction operation. Educational change has affected the inow of local workforce in the Malaysian construction industry (CIDB, 2007). Commonly, most societies see the labourers in the construction industry as lacking prestige and low class. Therefore, local young generations are seeking higher education to secure a more lucrative profession and consequently live a better life than their parents did. Another important issue to be discussed is the occupational safety issue (Salleh, 2008). Accidents on construction

sites are very common and everybody accepts it as an unavoidable feature of the industry (CIDB, 2007). Thus, accidents had tarnished the image of the construction industry besides being labelled 3D images which referred to dirty, dangerous and difcult. The proper training on safety and health training plays a signicant role in the enhancement of safety in the construction (Toolle, 2002). However, the awareness level of contractors for such training is not satisfactory. Besides that, temporary employment status as a labourer causes a lack of participation by local workforce in the construction industry. Temporary employment status means that the majority of labourers enjoy little or no social protection (income security or social security) (ILO, 2001). Local workers seek permanent jobs combining permanent wages and insurance protection as a guarantee to their life for the future. In addition, the accommodation provided by the employer (contractor) is less conducive to the average Malaysian labourers (CIDB, 2000). The reason also contributed to local workers shying away from the construction sector and considers employment in the construction sector as not dignied enough. There are also differences in the changes of development in the Malaysia situation. Ten years ago, most of the Malaysians participated in the construction industry to support the construction operation (Leng, 2005). Currently, there are varieties of competition in other sectors such as agriculture, manufacturing, services and plantation need big numbers of workforce to provide the operations. Meanwhile, the numbers of local workforces are unaccommodating to provide the operations. Therefore, the raising demands on foreign labourers to support the changes of situation. The analysis of workforce issue is to highlight the future workforce requirements (Deborah et al., 2003) and improves the forecasting performance of HRP in the construction industry (Paul, 2010). Thus, there is a need for intensive planning for future HR needs and possibilities (Tulacz, 2000). 2.2 HRP in the construction industry HRP is a common concept in management theory (Loosemore et al., 2003). It has been practiced in many elds such as business (Abdullah, 2009), engineering (Duffy and Salvendy, 2000), medicine (Busing and Gold, 2009) and science (Boudreau and Ramstad, 2007); as a corollary; it can practically be implemented in the construction workforces (labors) particularly in Malaysia. HRP is a process for identifying the numbers of employee, the types of employee skill and developing a plan to ensure that the appropriate workforce is available to provide quality services (Loosemore et al., 2003). The benets of conducting HRP are many and varied (Decenzo and Robbins, 1999). It allows organizations to restructure, reduce or expand their workforces (Abhishek, 2009). For instance, HRP is an essential portion in managing HR within a diversifying construction nature, therefore, the main contractor, consultant or developer needs to analyse the current and future workforce markets to ensure the right people with the required skills are employed in their rms (Leng, 2005). In Hong Kong, HRP factors have a long-run equilibrium effect to determine the local construction manpower supply by identied the internal (construction output, real wages, material price, bank rate and labor productivity) and external (technology, utilization capacity and various mix of work) of HRP inuencing factors ( James, 2006). In addition, the internal and external factors of HRP are not only creating, but also shape and change the issues and workforce numbers in the future ( James, 2006;

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Keel, 2006). Therefore, HRP is a signicant approach to improve the implementation of HRP for the local workforce supply in the construction industry in Malaysia. These factors can be categorized into two categories; internal and external factors. 2.2.1 Internal factors. The internal factors are controlled by the organization (Gupta, 1997). This can be characterized by at least six interrelated factors as listed in Table I. 2.2.2 External factors. The external factor of HRP is a macro factor which inuences HRP and cannot be controlled by the organizations (Khurana et al., 2008). Table II presents the four elements of external factors inuencing HRP in the construction industry. 2.3 Hypotheses Based on the literature review, hypotheses for this research were proposed as follows: Ha. Organization strategy, organizational culture, nature of work, leadership and experience, organizational changes, empowerment of labor, legislation, economic changes, demographic change and technology changes are signicant predictors of local workforce supply in the construction industry. 3. Methodology Semi structured interviews are required to observe current issues of local workforce and practices of HRP in the Malaysian construction industry while; survey questionnaires are used to measure hypothesis testing: signicant predictors of HRP for local workforce supply in the Malaysian construction industry and also to observe the dominant factors of HRP in this research. The use of such methods may gather accurate, less bias and high quality data (Creswell and Plano Clark, 2007). 3.1 Semi structured interviews Based on the literature review, the measures of HRP inuencing factors for local workforce supply in the construction industry is indistinct in the context of Malaysian practices. Therefore, semi-structured interviews were conducted to explore the current practices of HRP inuencing factors for local workforce supply in the Malaysian construction industry. It also captures the current issues of local workforce in the Malaysian construction industry. This method is more exible in that it allows greater spontaneity and adaptation of the interaction between the researcher and the respondents (Denzin and Lincoln, 2005). Thus, respondents have the opportunity to respond more elaborately and in greater detail compared to the survey questionnaire. 3.1.1 Respondents. The target of semi-structured interviews was industry experts who had experience in conducting HRP in the construction industry and who are currently holding managerial positions in aspects of construction management. Two types of respondents: government and non-government organization (NGO) were selected to discuss current issues of local workforce in the Malaysian construction industry and practices of HRP inuencing factors for the local workforce supply in the Malaysian construction industry. Local government in Malaysia operates on the principles and performs as specically enumerated in its various acts and by laws include all aspects such as: environmental, public (amenities, health and cleansing), social and developmental (Chee and Phang, 1992). NGO are self-governing, independently nanced organizations and societies that assign themselves specic roles, issues or disciplines paralleling governmental or ingovernmental organizations

Internal factors Organization strategy

Description Financial strength is a strategic asset in the organization to reach ingenious strategic plans (Warszawski, 1996) The traditional philosophy of construction planning placed a great emphasis on the ability to plan and execute projects (Thomas and Cheese, 2005) Two points in handling manpower at construction sites; allocate manpower whether to subcontract or to have a directly employed labor force and the allocation of directly employed manpower will depend on the needs of the various projects (Azreen, 2005) The imbalance of managers at operative and strategic level makes the strategic decision hard to make for workforce planning (Gabriel and Pontus, 2007) A small organization in the embryonic stage may not have an appropriate planning (Boyd, 2008). A need for planning is felt when the organization enters the growth stage likes layoff, retrenchment and retirement The role of construction rm components requires high exibility commitment (Grifn, 2008) Labors commitment and personnel behaviour absolutely impact to construction organization target (Azman et al., 2010). For instance, the limited time to stay in Malaysia gives a chance to foreign labor to work hard and consigns money to their family. Thus, a high commitment given by them towards construction tasks The culture of construction in the UK was inuenced by its young, male and white workforce (Barthorpe et al., 2000) Training initiatives are an important tool in cultivating a desired culture (Rameezdeen and Gunarathna, 2003) Most construction companies at USA are dominated by a strong clan culture like an extended family; emphasize teamwork, participation and consensus; have labors with a high level of loyalty; and emphasize human development (Yazic et al., 2007) People in the construction industry are like the clan culture. Individuals are rewarded when the nancial result is good or new market shares have been won (Nummelin, 2007) In Malaysia, culture of construction industry was inuenced by male of foreign labors that local refuses to do (Hong, 2010) Two-way communication helps to build condence and motivation of labor (Fraser, 2000) Majority of the construction manager felt that they should consider suggestion and ideas from the labors but they controlled the decision making process (Toor and Ofori, 2008) Leader should focuses on tasks and relationships between labor and supervisor (Panthi et al., 2008) Leaders inuenced on labor motivation, value and aspirations which subsequently inuence labor attitudes and behaviours ( Jenny et al., 2010) The use of authority and punishment was rated among the lowest of leadership behaviours in the construction rms (Sammy, 2010) Leadership effectiveness is necessary to understand an effort to inspire employees and thus achieve organizational goals and objectives (Amin and Abu, 2010) Empowerment is encouraging an organizational learning and rethinking the way to do things; such as strategic alliance formation and embracing a work environment (Gary et al., 2000) (continued )

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Organization changes

Organization culture

Leadership and experience

Empowerment

Table I. Internal HRP inuencing factors

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Internal factors

Description Empowerment of labor in completing his job task because he has information, skill, knowledge, experience and power (Kaur, 2006; Darlington, 2002) HRP is effectively in dealing the nature of job to attain the organization mission (Susan and Randall, 2001) HRP is the effective matching of the nature of work with employee performing the task (Boyd, 2008) The construction industry being a fearful when the majority of manpower is manipulated by foreign labor (Salleh, 2008) The task to be performed at construction site is more nature and need a physical durable (Hong, 2010)

Nature of work

182

Table I.

that have similar mandates (Shariff, 1996). Therefore, both perspectives are required to study the current situation of HRP in the construction industry of Malaysia. Semi structured interviews were employed with ten respondents, three government and seven NGO. A purposive sampling method was used to select the respondents based on operational construct (Patton, 1990). Seven of the ten respondents were project managers and three were directors of construction organizations. The respondents in these interviews had over ve years tenure with their organizations and had a variety of professional and organizational backgrounds. 3.1.2 Materials. Materials used for recruiting and screening respondents included the invitation to participate letter and the informed consent. Approval of the human subjects protocol (invitation and informed consent) was obtained via e-mail from all respondents. The interview questions are divided into two sections: (1) current issues on local workforce in the construction industry; and (2) current practices of factors inuencing HRP in the construction industry. Ten determinants of factors inuencing HRP were raised to all organizations. Internal factors: (1) strategy of organization; (2) organization changes; (3) organization culture; (4) nature of work; (5) leadership and experiences; (6) empowerment of labor; and external factors; (7) legislation; (8) economic changes; (9) technologies changes; and (10) demographic changes. To conduct the interview sessions, a 14 questions interview guide was prepared and tested with both peers and a trial respondent. This interview guide minimized bias,

External factors Legislation

Description Government law and regulations is a powerful external factor which affects organizations directly the federal regulations activities, policies and programmes (Leng, 2005) Health insurance is a direct benet to labor in term of improved health ( Jae, 2007). Labors will refuse to change jobs if they have pre-existing medical conditions and fear losing their medical coverage In Malaysia, government plans to increase the levy on foreign labor to reduce the dependency on foreign labor (Aziz et al., 2010) Economic forces inuencing in growth or decline of gross domestic product and increases or decreases in ination, interest rates and exchange rates (Darshan et al., 2006) The economic that Malaysia has seen for last decade is one of the leading causes of the worker shortage (Zahidi and Afzanizam, 2009) The low skills job is similarly with the low wages (Aziz et al., 2010) In Malaysia, there are perhaps a low wage needs to be increase in order to retain them in the construction industry and reecting with the nation economic (Hong, 2010) A constantly changing marketplace, technology has moved to the forefront for advancement potential in the construction industry (Abraham and Chinowsky, 2002) The employments of prefabricated components, large forms and high-strength concrete are lead to considerable cost savings and price reduction (Warszawski, 1996) The most part of construction projects are constructed in situ and manpower is important to provide the construction operation (Loosemore et al., 2003) In some cases, company may retain existing employee and teach them the new technology or remove existing people and appoint new employees (Paul, 2010) Workforce demographics provide necessary baselines such occupations, grade level, race, gender, age, length of service and retirement eligibility (London et al., 1990) The changing demographic changes the abilities, skill, interests and values of tomorrows workforce (Susan and Randall, 2001) Demographic change reduced the ow of younger workers who have typically provided much construction site labor (E-CORE, 2005) The changing prole of the workforce in terms of age, gender participation, literacy, technical inputs and social background has implications to HRP (Kaur, 2006) A number of people retire every year and a new batch of graduates with specialization turns out every year will change the appointment or the removal in the company (Paul, 2010)

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Economic changes

Technology changes

Demographic changes

Table II. External HRP inuencing factors

by providing a basis for a consistent sequence and approach to interviews and adopted a consisted wording of the applicable questions. This interview guide also served as the form for collecting respondents personal information and for collecting specic notes during the interview. 3.1.3 Procedure. Respondents took part individually at their respective organizations and the interviews were scheduled for 45-60 minutes. They were asked to read the description of the research which allowed for the respondents to ask any questions to clarify the nature of the study or their expectations. Respondents agreed and understood that they could refuse to answer any question and terminate the

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interview at any time. Respondents were then asked a series of open-ended questions in a semi-structured format from the interview guide. Respondents were encouraged to describe situations in signicant detail and were often followed by additional questions to probe for detailed explanations and each was later transcribed for use in analysis of respondents responses. 3.1.4 Data analysis. Interviewees were reecting their experiences and knowledge on the current issues of local workforce and HRP practices in the Malaysian construction industry. The researcher coded the result with the assistance of the Matrix table. It was divided into columns and rows with factors and descriptions from each respondent. The coding of the transcribed data to ensure the results was easy to use and understand at the end of this research. The researcher also made minor changes, which involved omitting words from some of the interview excerpts without affecting their meaning, in order to produce a more concise statement that would assist readers to understand it (Abraham and Chinowsky, 2002). The information gathered from interviews was used to develop the content of the questionnaire survey. 3.2 Survey questionnaire A survey was conducted to measure hypothesis testing: signicant predictors of HRP for local workforce supply in the Malaysian construction industry and also to observe the dominant factors of HRP in this research. This method is fairly exible in that it allows for the meaningful comparison of responses across respondents and sites study (Denzin and Lincoln, 2005). 3.2.1 Survey sample. The researcher attempts to use a large sample of respondents in order to obtained an appropriate data of HRP inuencing factors for local workforce supply in the construction industry. The target of the survey was contractors for construction project (large and small organizations) who are currently holding managerial positions in project management and operation management in the registered contractors and licensed builders rms in Malaysia. The targeted population for this study is 250 respondents who have worked in construction organization. Of that total, 206 usable questionnaires were returned to the researchers, yielding 82.4 percent response rate. A response rate ranged from 30 to 50 percent is common in social science surveys and can be accepted (Miller et al., 2000) while a response rate ranged from 50 to 80 percent is considered as good response rate (Roth and BeVier, 1998). Therefore, these questionnaire surveys were assumed as a good response with 82.4 percent response rate. 3.2.2 Data collection. The survey was distributed via e-mail, fax and post to contractors that were randomly selected to take part in the research. A self addressed and stamped envelope was providing in which to return the completed surveys to the researcher. These questionnaires distributed to respondents along with the cover letter, which explained about the purpose of the research, instructions on how to answer the questionnaires, anonymity and condentiality issues. The questionnaire consisted three sections. The rst section contains the questions capturing the prole of respondents. In the second section, the numbers of local and foreign labor have been employing in the organization was asked, followed by the question asking about the numbers of local and foreign labor in the six coming months. The last section included questions asking about ten variables of HRP inuencing factors for local workforce supply in the construction industry. In this section, 94 items present a list of statements

about HRP inuencing factors for local workforce supply in the construction industry. Respondents are requested to score according to Likert scale rating: . strongly disagree; . disagree; . neutral; . agree; and . strongly agree. 3.2.3 Data analysis. The responses from the survey were analyzed using Statistical Package for Social Science software. To measure respondents background, workforce background and dominant factors of HRP for local workforce supply in the Malaysian construction industry, descriptive statistics were performed. The descriptive statistics can be used to assess the research variables and the usefulness of the dataset (Foster et al., 1998). To measures signicant predictors of HRP for local workforce supply in the Malaysian construction industry, stepwise regression analysis (SRA) was used (Foster et al., 1998). SRA can be used to assess the relationship between many independent variables and one dependent variable and the contribution and inuence of each independent variable on dependent variable (Foster et al., 1998). To assess the validity of signicant predictor of HRP scales, exploratory factor analysis (varimax rotation) and conrmatory factor analysis (i.e. Kaiser Meyer Olkin (KMO), Barlets test of sphericity and Eigen values) were performed (Nunnally and Bernstein, 1994). 4. Data analysis and ndings The results are discusses with under two headings, semi-structured interviews and questionnaire surveys. 4.1 Semi structures interviews Interviewees were reecting their experiences and knowledge to responds the current issues of local workforce and current practices of HRP for local workforce supply in the construction industry. 4.1.1 Current issues. In total, 12 elements were mentioned as broadly current issues towards local workforce in the Malaysian construction industry: (1) Uncomfortable environment. Employers explained that uncomfortable environments such as: hot weather, un-healthy environment and no air conditioner causes local workforces to be uninterested in the construction industry. (2) 3D images dirty, dangerous and difcult. Employers labelled the construction industry as heavy work and exposed to accident at construction site. Accidents on construction sites are very common and everybody accepts it as an unavoidable feature of the industry (Kaur, 2006). Thus, accidents had tarnished the image of construction industry besides being labelled 3D images which referred to dirty, dangerous and difcult. Besides that, work at construction sites is difcult because of the need to provide heavy work such as: bricklaying, plastering, tiling, bar-bending, concreting and formwork. (3) Low wages. Employers mentioned that the low wages cause local workforces to be uninterested with the construction industry. The wage level is not applied

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(4)

186

(5)

(6)

(7)

(8)

(9)

(10)

(11)

(12)

properly according to the skilled labourer but it depends on the competency of the employer to payoff the labourer (Salleh, 2008; Othman, 2004). Temporary work. Employers also stated that labor force in the construction industry is temporary work. Our local workforce required a permanent job and wage in order to maintain their economy. Lack prestige and social behaviours. In addition, employers agreed that it lacks prestige to be employed as a labourer in the construction industry causing local workforces to be uninterested with the construction industry. This results in society regarding labor work as not dignied enough because it is viewed as a low status job (ILO, 2001). Young generations seek higher education. Employers mentioned that the lack of local workforce in the construction industry is due to education changes. The young generation seeks a higher education to have a lucrative life better than their parents did (CIDB, 2007). No insurance protection for labor. At the same time, labourers prefer an insurance protection as a warranty to their life whenever they are injured or accidentally. Employment Provident Fund (EPF) and Social Security Organization (SOCSO) are qualied enough if employers are no providing insurance protection to them. Occupational safety. The safety issue is also a worry among people to be involved in the construction industry (CIDB, 2007; Toolle, 2002). People need to keep away their feeling about the safety in the construction industry because construction personnel always remind labourers to use the safety tools to avoid any accidents. Development and technologies changes. There are many job opportunities within other industries that are easier than in the construction industry. In the construction industry, manpower is required for doing a wet trade job such as bricklaying, plastering, tiling, bar-bending, concreting and formwork. Difcult to get permission for leave. High commitment is required by labourers at a construction site in order to complete the construction operation. It is becoming difcult for the employer to allow their labourer leave. Un-predictable work. Sometimes labourers are required to work overtime in order to achieve an expectation project. However, the employer stressed that local labourers are un-willing to work overtime. Weakness on organizations strategies. The employer needs to study and analyse their HRP processes to retain and attract more local labourers in the construction organization (Leng, 2005). Some organizations are not planning their HRP smoothly causing labourers to quit their jobs.

4.1.2 Current practices of HRP in the Malaysian construction industry. There are various methods adopted by construction organizations to employ local labourers directly from their companion and friend. Meanwhile, an indirect method is applied through CIDB under a trainers programme. Traditionally, employers heavily focused on the goal of completing the construction project due to the duration of the project. Now, employers gave a greater emphasis to understanding the labourers interests and

the process to handling and managing local labourers in the organization. Ten determinants of factors inuencing HRP were raised to all organizations for local workforce supply are internal factors such as: (1) organization strategy; (2) organization changes; (3) organization culture; (4) nature of work; (5) leadership style and experiences; (6) empowerment; and external factors; (7) legislation; (8) economic changes; (9) technologies changes; and (10) demographic changes. All of determinants are signicant to predicting the reasonable level of local labor required for construction project as shown in Tables III and IV. HRP inuencing factors were listed relating to internal and external changes and how those changes will affect the requirements need by local labourers in the construction industry. 4.2 Survey questionnaire The questionnaire resulted in computing for descriptive statistics, SRA and factors analysis. 4.2.1 Descriptive statistics. A total of 206 usable responses were obtained. Detailed descriptive statistics relating to the respondents backgrounds are shown in Table V. Workforce background. There are 169 (82.0 percent) of respondents claried that their organization employs local labourers. On the other hand, 37 (18.0 percent) of respondents are not employing local labourers. While, 206 (100 percent) of respondents claried that their organization employs foreign labor. Thus, the majority of employers are employing foreign labourers as their main manpower at construction sites. On the other hand, Figure 1 shows the percentage of local and foreign labor in the six coming months. The majority of employers are planning to employ more than 100 foreign labourers while local labourers are between one and 25 as their main manpower at construction sites. Dominant factors of HRP. Figure 2 shows the central tendency measurement of all HRP inuencing factors for local workforce supply in the construction industry. Among the HRP inuencing factors, economic changes had the highest mean (M 4.849, SD 0.403). Therefore, economic changes were claried as dominant factors of HRP for local workforce supply in the construction industry. 4.2.2 Stepwise regression analysis. Table VI shows the SRA results of HRP inuencing factors in the construction industry. The results indicated that 81.2 percent of variance for local workforce supply in the construction industry was signicantly explained by HRP inuencing factors. However, only organization strategy, nature of work, economic changes and demographic (social) changes are signicant predictors of local workforce supply ( p , 0.0005). Thus, Ha was partially supported:

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Internal factors Organization strategy

Description

188

Table III. Internal HRP inuencing factors

Determined the ability and skill of labor Trained labor with the basic skill of workmanship Analyzed whole of nancial company Considered labor opinion and provides a complete safety tool Determined the long term labor requirement such insurance and health facilities Organizational change Employers decided to terminate and hired a new labor if labors are irresponsible to task Un-balance management potentially contributed to a nancial problem Un-skill labor impact to organization target Un-sufcient of labors force to provide the construction operation Organization culture Organizations are not distinguishing man or female involvement Foreign labor as external supply to support the lack of local labor Employers concerns with the punctuality of labor to complete their task Good relation among employers and every labor level show a good image for organization High cost will be spent by company to send numbers of labors to attend training course Empowerment Labors have a voice for un-satised of their acceptance Labor able to do their own activities after working hour Major factors of empowerment of labor are skill knowledge and experiences Labors are able to give an opinion or inform any problems Nature of work Un-xed salary and un-predictable work Pressures under leader or employer directive Labors are required to nd another work task after project completion Un-healthy environment such dirty and dangerous; and the poor accommodation There are no insurance protections provided by their employer There are more competitive of job opportunities in other industry Leadership and Good motivation inspires other labor in the construction industry experience Good communication and relationship was the most reliable predictor of labor satisfaction and winning labor trusty Leader guide individual or group to accomplish the task at the construction site Leader attributes in assisting of labor to obtain advance of salary and remind employers about the payroll date Note: Current practices

Ha. Organization strategy, nature of work, economic changes and demographic change are signicant predictors of local workforce supply in the construction industry. 4.2.3 Factors analysis. Table VII shows the results of factor analysis for four signicant predictors of HRP inuencing factors. A factor analysis with the varimax rotation was rst done for 37 items of four signicant predictors. Relying on Nunally and Bernsteins guideline (London et al., 1990), the analyses showed that: . all research variables exceeded the acceptable standard of KMO value of 0.6, were signicant in Barletts test of sphericity;

External factors Legislation

Description The cooperation encouragement between the education institution and construction organization will enhance service provision Employers applied a standard procedure in order to employ foreign labor The skill of labors reects the wages level Labor should be an educated group that learns the skill from education institution Labor should be placed under the government project to ensure they are continually able to generate their economy A strong of standard safety should be provided during in construction site Women are not supported to be involved as labor Employer should provide good facilities such insurance protection and health facilities High market demand toward skilled labor The strength growth of Malaysian economy required the numbers of qualied worker The growth economy may impact to labors in order to support their daily expenditure due to the price increase of daily products The wage system of the work labor must according to the current development of the nation economy The weak global economic cause the organization is unable to achieving the projected growth rate or may be no project target Majority of the job task at construction site required labor force especially for wet trade work The company may retain and train existing labor or remove and appoint new labor affect of technology change Employers suggest skill of labor must be parallel with technology change Improvement of technology able to assist and accelerate a work site progress Among people has high education for a better salary Majority of labor is dominated by male labor Young generations are rarely to participate as a labor force A poor family has no choice to involve as a labor force An attitude among people toward construction work is not respectfully enough There are more competitive with other job opportunities that more easily and more benets to job seekers

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Economic changes

Technology changes

Demographic changes

Note: Current practices

Table IV. External HRP inuencing factors

. .

all research variables had Eigen values larger than 1; and the items for each research variables exceeded factor loadings of 0.5.

The analyses conrmed that measurement scales used in this study have met the acceptable standard of validity analyses. Organization strategy produced two factors solutions with Eigen values greater than one accounting for 49.15 percent of the total variance. Factor 1 explained 33.32 percent of the variance was identied as operational awareness and factor 2 explained 15.83 percent of the variance was identied as analyzability. On the other hand, two factors had Eigen values greater than one accounting for 52.83 percent of the total variance for nature of work. Factor 1 explained 33.36 percent of the variance was

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Characteristics Designation

Category Managing director Project manager Project coordinator Quality assurance Quality controlling Other Total , 5 years 5-15 years . 15 years Total , 5 years 5-15 years . 15 years Total G1 G2 G3 G4 G5 G6 G7 Total Class A Class B Class C Class D Class E Class F Total

Frequency 57 74 27 12 26 10 206 35 133 38 206 25 116 65 206 0 0 0 13 33 50 110 206 111 49 33 13 0 0 206

% 27.7 35.9 13.1 5.8 12.6 4.9 100.0 17.0 64.6 18.4 100 12.1 56.3 31.6 100 0.0 0.0 0.0 6.3 16.0 24.3 53.4 100.0 53.9 23.8 16.0 6.3 0.0 0.0 100.0

190
Years of experience

Years of company in operation

CIDB grade

PKK class

Table V. Characteristics of respondents

identied as adaptability and factor 2 explained 19.47 percent of the variance was identied as salary system in the construction company. Only one factor had Eigen values greater than one were accounted for 62.64 percent of the total variance for economic changes was identied as economic consideration. Two factors had Eigen values greater than one accounting for 61.94 percent of the total variance for demographic changes. Factor 1 explained 45.83 percent of the variance was identied as variety of implication and factor 2 explained 16.11 percent of the variance was identied as social awareness. 5. Discussion Figure 3 shows four signicant predictors of HRP inuencing factors for local workforce supply in the construction industry. Organization strategy is required by employers to evaluate their current resource to show the overall operation of the organization (Leng, 2005). Operational awareness affects the organization by detemining the relative strength of hired foreign labourers to overcome the lack of labor, the labor competency, the expected numbers of labourers required for the vacancy and the long term labor requirement. Other criteria of the organization

Local Labour vs Foreign Labour (In the 6 Coming months) 0.00 >100 75-100 50-75 25-50 1.94 1-25 0 77.18 2.43 10 20 30 40 50 60 70 80 0.49 37.86 8.25 19.42 14.08 38.35

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Numbers of foreign labour in the 6 coming months with respondents = 206 Numbers of local labour in the 6 coming months with respondents = 206

Note: In the six coming months

Figure 1. Percentage of local labor in the construction organization

Central Tendency Economic Changes Nature of Work Demographic (Social) Changes Organisation Culture Legislation Leadership and Experiences Empowerment Technology Changes Organisational Change Organisation Strategy 0 4.85 0.403 4.83 0.409 4.80 0.437 4.66 0.470 4.55 0.514 4.54 0.517 4.50 0.584 4.33 0.656 4.29 0.787 4.04 0.805 1 2 3 4 5

Mean Standard Deviation

Figure 2. Dominant factors of HRP for local workforce supply in the construction industry

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Predictors Leadership style and experience Nature of work Organizational changes Organization strategy Organization culture Empowerment Legislation Economic changes Technology changes Demographic (social) changes Notes: p , 0.0005; adjusted R 2 0.812; F 35.007

b
0.008 0.185 0.041 0.394 0.041 0.252 0.238 0.184 0.006 0.324

p 0.353 0.000 0.278 0.000 0.200 0.357 0.001 0.000 0.004 0.000

192

Table VI. The results of SRA

Measures Organization strategy Nature of work Economic changes Demographic (social) changes

Item 10 10 7 10

Factor loadings 0.536-0.774 0.558-0.845 0.580-0.913 0.649-0.893

KMO 0.811 0.818 0.860 0.812

Bartletts test of sphericity 499.12, p 0.000 663.99, p 0.000 987.08, p 0.000 1,021.76, p 0.000

Eigen values 3.515 4.085 4.384 4.601

Variance explained 49.15 52.83 62.64 61.94

Table VII. The results of factor analysis

Adaptability Salary System and Benefits Operational Awareness Analyzability Economic Consideration Economic Changes External Variety of Implications Social Awareness Demographic (Social) Changes Nature of Work Internal Organization Strategy HRP Influencing Factors for Local Workforce Supply in Construction Industry

Figure 3. Framework of HRP inuencing factors for local workforce supply in the construction industry

strategy are analyzing the nancial strength of company to control HRP process (Warszawski, 1996; Azreen, 2005; Gabriel and Pontus, 2007). Finance is important to allocate manpower (whether to subcontract or to have a directly employed labor force) and assets at construction sites such as: temporary buildings which can be hired rather than owned. Nature of work was also identied as a critical HRP inuencing factors for local workforce supply in the construction industry. Labourers are required to adapt with

the environment in the construction industry. For example, the transient workforce poses many problems for labourers such as: longer working days, more expense in travelling to work and managing work-life balance issues, since their families may not be as mobile (Loosemore et al., 2003). Labourers are also exposed to high risks such as: accidents and 3D images dirty, dangerous and difcult (CIDB, 2007; Hong, 2010). Construction labourers are also known to have low wages; unxed salary, no insurance protections provided; and labourers are required to nd another work task after project completion. On the other hand, job opportunities in other industries give a lot of benets such as; EPF, SOCSO and insurance protection to job seekers. The majority of previous studies viewed the demographic as HRP inuencing factors process (Keel, 2006; Cotten, 2007; Deborah et al., 2003). Gender, age, family situation and current education were identied as HRP inuencing factors for local workforce supply in the construction industry. Demographic changes will reduce the ow of younger workers who have typically provided much construction site labor (E-CORE, 2005). Generally, a number of people retire every year and a new batch of graduates with specialization turns out every year and will change workforce trends in the company. In addition, the lack of social awareness and wrong perceptions such as low status as a labourer was attributed to local workforce supply in the construction industry. Economic changes were displayed as highly inuential to HRP for local workforce supply in the construction industry (Zahidi and Afzanizam, 2009). Economic changes impact workforce type and size, what they do; for whom they do it; and how they will recruit, retain and develop the workforce (Keel, 2006; Cotten, 2007; Deborah et al., 2003). A global economic condition has a tendency to contribute to the labor income; either labourers are able to generate their economic or unable to support their daily expenditure due to the price increase of daily products. Perhaps the low wage of a labourer needs to be increased to reecting the national economic condition in order to retain them in the construction industry (Hong, 2010). Employers believed the strength of economic growth will increase Malaysian development and requires a highly educated worker. However, a low rate of projected growth may cause the labourer to lose their job. 6. Conclusion The major nding of this study is used to support HRP for local workforce supply in the construction industry. It is not only a timely focus on the prospects of skill requirements in the construction industry from the point view of the changing nature of the industry, but also timely from the point view that little research has been conducted in this area. More importantly, this research provides a valuable theoretical frontier and offers a new attempt to improve several way of HRP manpower demand. At the industry level, this research provides an original application of HRP analysis to estimate the local workforce needs in the construction industry. These offer an integrated and enhanced forecasting system for the construction industry of Malaysia. This study has its signicance from the point of view that it is an attempt in an area in which there was no precedent research, both domestically and internationally. Overall, this research demonstrated that the analysis of workforce issue is to highlight the future workforce requirements and improve the forecasting performance of HRP in the construction industry. Thus, there is a need for intensive planning for future HR needs and possibilities. HRP is an essential portion in managing HR within a diversifying construction nature, therefore, the main contractor, consultant or developer needs to

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analyse the current and future workforce markets to ensure the right people with the required skills are employed in their rms. The results were contributed to new ndings of HRP context in the Malaysian construction industry. Importantly, these problems were captured at the HRP implementation through the HRP inuencing factors for local workforce supply in the construction industry. It is hoped that the ndings from this research will provide some indication to the industry practitioners involved in the Malaysian construction industry. This study was motivated by the need for an in-depth analysis of HRP to forecast the local workforce supply in the construction industry. To establish a framework of HRP inuencing factors for local workforce supply in the construction industry, managerial levels should understand the requirements for local workforce and make use of reliable methods for forecasting local workforce. The framework is to improve HRP implementation and potentially as a solution to facilitate a new practicing approach for local workforce supply in the Malaysian construction industry. It provides several factors that must consider by employers and managerial level as well as a guideline; which can be applied for their future HRP. Employers are able to forecast the local workforce supply and their requirement needs in order to conduct construction operation efciently. In view of that, employers get the impression that HRP is a rigid system that must be implemented in HR plan. Thus, the results were contributed to new ndings of HR context in the Malaysian construction industry. 7. Research limitation and future study This research had some limitations. The framework can be implemented in the suitable HRP model to explain the HRP process in Malaysian construction organization. It can be served as a practical and robust tool into the forecasting HRP models required for the construction industry of Malaysia for short to medium term (i.e. one to ve years). Therefore, HRP model can provide solid information to facilitate HRP and enables policymakers to foresee the trend of manpower demand and formulate policies and training programmes tailored to deal effectively with the industrys labor resource requirements in the construction industry. Thus, a better articial intelligence technique of the HRP model can be developed.
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