ABSTRACT

Most of construction industry in Ethiopia is suffers due to unorganized human resource

management. This paper investigates the effect of Human Resources Management (HRM)
functions in the construction projects performance in Hawassa. This study introduced the
concept of HRM in general and in the construction projects in particular. Furthermore, due to
the improper and unorganized or local culture of human resource practice are usually seen in
construction industries. The thesis proposal mainly focuses on the effect of organized human
resource management practice for improvement of construction process.

The thesis will aim at effect of organized Human Resources Management (HRM) functions
perspective of the case to improve the construction process. It will comment on the various
documents and separate difficulties, comment good practice and will give recommendations
that can be workable to the corresponding problems and benefits. Four key performance
indicators namely: quality, quantity, time, and cost were used to evaluate the performance of
the construction projects. The analysis results revealed that there are strong relationships
between human resource management factors and construction projects performance
specially team work factor, and motivation factor so that a technique was developed to
improve project overall performance for firms that do not apply human resource management
systems
INTRODUCTION

Background
Construction is the world's largest and most challenging industry. Human resource today has
a strategic role for productivity increase of any organization, and this makes it higher in the
industrial competition. With the effective and optimal uses of it, all the advantages supplied
by the productivity growth can be obtained. Construction projects undergo with various
problems and complex factors such as cost, duration, quality and safety. Construction sector
is dissimilar as it contains contractors, consultants, designers, owners, and other stakeholders.

Management of human resources is that functions of the enterprises which provides for
effective utilization of people to achieve both the objectives of the enterprises and satisfaction
and development of employees.
The survival of any organization depends on the proper management of its materials financial
and human resources.

The management of all these human resources is in the hands of destined human beings.
Human resources management in the collaboration with other resources makes a business or
an organization to run effectively.
But the most important of these is man; people are keys elements an organization activity
focuses on. How well the man feels on an organization with in on doubt determine his
productivity. Therefore the concern of every organization should center on the satisfaction of
man.

An organization man produce or render services like any other organization in the same
business with the same resources employed or utilized, but they may differ in productivity as
a result of efficient human resources management.
The importance of human resources management in relation to productivity in an
organization cannot be over emphasized because it’s the life more and soul or heart beat of
every organization.
In any organization resources are basically grouped in two i.e. human and material resources,
among these resource desired for the provision of goods and services, the most difficult to the
manager its human resource, regardless of what product or service an organization provides
and no matter what it’s size, age or location.
It must procure human resources in order to remain viable. Further, if the organization is to
survive, it must design programmes to develop its human resources to their fullest capacities
and maintain ongoing worker commitment.

Human resource management as it practiced today recognized the dynamic and interaction of
personal function with each other and with objectives of the organization.
Most important it recognizes that human resource planning must be coordinated closely with
organization strategies and related planning functions.

As a result effort in human resources management is being directed towards providing

support for achievement of profit of government organization. Human resources planning are
clearly not just concerned with numbers. Plans for training, redeployment, promotion and
productivity all indicates the importance of getting three right staffs in the right jobs, as well
as the right numbers.
Construction is a process that consists of the building or assembling of an infrastructure.
Large scale construction is a feat of multi-tasking. Normally the job is managed by the
project manager and supervised by the construction manager, design engineer, construction
engineer or project architect. For the success of construction of any sustainable development
project, many aspects must be taken into consideration, inclusive of planning and
management, such as human resource, safety and health, construction delays, the designs of
architecture and engineering, material availability and quality; the clients need, and financial
or economic limitations. One of the aspects which are crucial in this study is human resource
management. The term ‘human resource management’
(HRM) and ‘human resources’ (HR) have largely replaced the term ‘personnel management’
as a description of the processes involved in managing people in organizations. In simple
words, HRM means employing people, developing their capacities, utilizing, maintaining and
compensating their services in tune with the job and organizational requirement. This study
will emphasize and discuss HRM in the construction of a sustainable development project as
the main factor for success of the construction project. In addition, it will also
analyze the factors that influence HRM and discover the methods or ways to
enhance and improve it.

Statement of the Problem

The main problems of human resource management in the construction project are project
managers’ roles, HR management and leadership practices, ways of handling workers, HR
planning, communication between team members, insufficient teamwork and technical labors
output.

One of the main causes of project failure is the lack of effective human resource management
practices. The need for effective human resource management (HRM) practices is accepted
among academicians and practitioners in construction industry. If these issues are identified
and addressed and due attention given to them, project performance will improve and
organizations will do well in terms of improved quality, cost time, delivery, productivity and
profitability.

THE OBJECTIVE OF THE STUDY

General Objective
The general objective of this study is designed to investigating the effects of organized HRM
practices on construction industries.
Specific Objectives
1. Determine the influence of current human resource management system on project
performance of organizations in hawassa construction industry.
2. Assess impacts of staff administration issues of human resources on project
performance of organizations within hawassa construction industry
3. To determine the relationship between technical expertise of labors and project
performance of organizations.
4. To examine the effects of HR planning on project performance of organizations
within hawassa construction industry.
5. To ascertain whether effective human resources management have any impact on the
company’s goals and objectives.
Research questions
The study is designed to investigating the effects of organized HRM practices on construction
industries and concerned with answering the following basic research questions.

1. What is the influence of current human resource management system on

project performance of organizations in hawassa construction industry??
2. What are the effects of staff administration issues of human resources on
project performance of organizations in hawassa construction industry??
 3. Is there a relationship between technical expertise of labors and project
performance of organizations in hawassa construction industry?
4. What are the effects of HR planning on project performance of organizations
within hawassa construction industry?
5. Have effective human resources management had any impact on the
company’s goals and objective?
Scope of the Study
The scope of this research will be study on the effects of organized human resource on
building construction projects in Hawassa city construction industry. However, the research
focuses only on building construction companies and projects due to the fact that construction
of buildings uses many human resources with various positions and skills.
Significance of the Research

The study is aimed at providing insights on how organized HRM affects the construction
industry performance. This research wills benefits the construction firm how they can
improve their building construction industries in terms of organizing the human resource in a
good manner. The research can also help the construction firm to properly apply its human
resources by improving the project according to cost, quality, time productivity and so on for
better customer satisfaction and profitability. By this, the construction firm also acquires
benefit creating competitive advantages in the market. The research study aims to provide
knowledge of building construction-related factors that affect the project’s success due to
human resource manner. Moreover, this research will help to client, contractor, consultant
and other stakeholders.

LITREATURE REVIEW
Introduction

This chapter focused on reviewing identified studies and theoretical bases on HRM with a
particular focus on Project Oriented Organizations on past studies. It discussed specific
features of POO and how they affect HRM thus creating certain challenges that are unique to
these organizations.
The Concept of HRM in POOs
Human resource is one of the important resources for successful development of every
organization. Several researchers, for example, Pickett L. (2000), Sparrow P. et al. (2000),
Evans P. et al. (2002), Hayton J. (2005) have proven convincingly, that HRM is one of the
most sensitive and important fields of action for the future success of project oriented
organizations. The issues and problems of knowledge management in project oriented
organizations have been put at the fore in such contexts (Peisenniece L. et al., 2010; Gann &
Salter, 2001; Lindkvist, 2004). Literature on project-oriented learning has also pointed to the
important role of projects for learning and building knowledge in the organization
(DeFillippi, 2001). However, only modest attempts have been made to understand the
competence issue and knowledge gap of HRM in POOs (Soderlund, Bredin, 2006). However,
competence issues within human resource management have been stressed in the literature
(Lengnick-Hall, 2003).

Human Resource Management (HRM), project-oriented companies are still struggling to

align HRM to the needs of project-oriented companies, however, changing HRM approaches
when developing into a project-oriented company seems to be often neglected in practice
(Heumann, 2010). “Management by Projects” is considered as the organizational strategy of
the project-oriented company to meet their objectives as well as gaining a competitive edge
over their peers (Gareis, 2005). The company applies temporary organizations such as
projects and programs to perform business processes, when appropriate (Gareis and
Stummer, 2008). Temporary structure such as projects and programs lead to organizational
differentiation within companies, which therefore also require specific integration structures,
such as, project portfolios, expert pool or a Project Management Office (Heumann, 2010).

Project-oriented companies have dynamic boundaries and contexts and the number and the
sizes of the projects they perform are constantly changing, permanent and temporary
resources are employed, and co operations with clients, partners and suppliers are organized
in teams, some of them are virtual (Gareis, 2005; Sydow et. al., 2004). Projects have been
described as temporary organizations to bring about change (Turner et al., 2003; Turner,
2006; Gareis, 2005; Turner et al., 2003; Sydow et. al., 2004). The implementation of project
management in an organization can be considered as a change which touches different
identity dimensions of the organization (Stummer et al., 2005). A central dimension to be
changed is “Human Resources”, as personnel require new competences and skills. Thus every
time a new project or program is started, the HR configuration of the organization must
change. This might create pressure on the organization and its available human resources. It
certainly impacts the work organization, and creates the need for new processes like
assigning personnel onto projects, dispersement from projects, and processes for linking
projects assignments to careers.
Definition of Project-Oriented Organizations

Some of the earlier works by Hobday (2000), position different „ideal types‟ of
organizational forms along a scale with the pure functional organization at one extreme, the
pure project-oriented organization at the other, and matrix organizations with various degrees
of project orientation in between. The main factor for deciding on the project orientation in
these typologies is the level of authority over personnel, finance, and other resources
(Hobday, 2000). In the typology of Hobday, the POO is accordingly defined as “one in which
the project is the primary a unit for production, innovation, and competition”, and where
“there is no formal functional coordination across project lines”.

Lindkvist (2004) suggests a broader definition and argues that “Firms that privilege strongly
the project dimension and carry out most of their activities in projects may generally be
referred to as project-oriented firms.” Similarly, Whitley (2006) describes the „project-
oriented firm‟ as a firm that “organize work around relatively discrete projects that bring
particular groups of skilled staff together to work on complex, innovative tasks for a variety
of clients and purposes”. However, these definitions are rather vague, particularly concerning
the nature of the activities that are being carried out in projects. For researchers, whose main
focus is on HRM and people management systems in project-oriented organizations, these
definitions seem to miss out on important aspects. Project-oriented structures, from other
studies‟ view point, do not necessarily equal to a total dominance of the project structure over
the functional structure. Other typologies take factors such as employment contracts,
affiliation and the level of repetitiveness of project work, into consideration when identifying
different types of organizational forms that include projects. For example, Söderlund (2000)
distinguishes four ideal types of organizations depending on the one hand on the
permanency/temporality of the structure, and on the other hand on the
permanency/temporality of the employment contracts. In Söderlund‟s typology, „project
organization‟ describes a situation where people have permanent employment contracts in an
organization that is characterized by work in temporary project constellations. Ekstedt (2002)
presents a similar typology.
Packendorff 13 (2002) discusses four types of „project work‟ depending on whether project
workers have their primary affiliation to the individual project or to the organizational
context, and on whether project work is considered to be routine or the exception. In this
typology, „project-based work‟ is regarded as one in which project workers have their
primary affiliation to the organizational context, and in which project work is routine.
Following this line of argument, PBOs consequently do not include „single-project
organizations‟ (Whitley, 2006), where the entire organization is dissolved after completion of
a project. The PBO by the definition subscribed to, instead concerns a permanent
organizational framework in which temporary projects are embedded (Sydow, et al., 2004).
The definitions and approaches discussed above suggest that the structures used for carrying
out core activities, the repetitiveness of project work, the permanency of the organizational
framework, and the nature of employment are matters that stand out as being particularly
important for what defines a project-based organization. Hence, in this study, the following
four features, in combination, are considered to define the project based organization:

The POO is an organization that privileges strongly the project dimension concerning its core
activities and carry out most of these activities in projects; In a POO, project work is routine
rather than the exception; The POO is a permanent organizational framework in which
temporary projects are embedded; In a POO, people are employed or hired by the
organization, not by individual projects.

Lastly, but also a very important point also to note, is the fact that the general projectification
trend in the modern economy can also be described as consisting of two principal patterns of
change in relation to the structuring of organizations; (1) that new firms increasingly start off
as project-oriented organizations and (2) that traditionally functional organizations change
into relying more on project-oriented structures. These two change patterns give rise to two
different types of project-oriented organizations, depending on their origins. The first type is
original POOs, which are organizations created as project-oriented from the start and that
hence have no history of organizing their core activities in functional structures which
includes NGOs, consultancy firms and advertising agencies. The second type of PBOs is
projectified organizations, which implies that the organizations have gone through (or are still
going through) a development from more functionally oriented to project-oriented structures.
Many engineering and high-technology, product developing firms could be examples of such
organizations.
HRM Challenges Facing Project Oriented Organizations

Project oriented human resource managers are accustomed to organized, predictable, logical,
well structured, detailed, and standardized environment governed by objective rules and
controllable variables (Srica, 2008). In contrast, projects tend to be characterized by crisis,
uncertainty, and suspense, which combine to test the ability and performance of the project
managers in coordinating and controlling a diverse selection of functional specialists, over
which they may have little direct authority (El-Sabaa, 2001).These contrasting positions
could make effective leadership one of the most challenging areas to apply in project
management (Irani, Sharif, & Love, 2005).

Project performance is often less a matter of understanding the constraints of the project and
more a function of the personal skills and capabilities of the potential leaders‟ available
(Jiang, et al., 2001).

The project management literature has often ignored the importance of HRM, while ascribing
importance to project management software tools, management processes and assorted “best
practices” (Shenhar, 2001; Sumner, et al., 2006). In addition project managers have
traditionally emphasized technical knowledge and skills as the key ingredients in managing
projects (Berg & Karlsen, 2007). The growing importance of the organizational and human
factors of project management, however, makes the requirement of leadership skills essential
for the effective management of projects (Sumner, et al., 2006).

Staffing and assigning appropriately skilled project resources present some of the most
challenging areas within which to employ effective project management techniques (ElSabaa,
2001). Real estate project managers, for example, have to combine technical knowledge and
expertise with behaviors that engender effective multi-organizational teamwork and
communication if successful outcomes are to be achieved (Turner & Muller, 2003). Engle
(2007) supports this position by pointing out that projects require process leaders, as projects
are primarily an exercise in dealing with other people using the key skills that are best
portrayed through leadership, organization, and communications. This means that the HR
department must employ the best practices, for example recruitment, training and retaining to
develop good leaders for project teams.

The Project Management Institute (2008) identified development and management of the
project team as core aspects of the human resource management competency in project
management. Project teams consist of individuals from previously loosely coupled areas in an
organization brought together to perform complex or specialized tasks of a multidisciplinary
nature (Turner and Muller 2003). The short-term interaction of projects presents one of the
greatest challenges to individuals managing performance within it (Turner & Muller, 2003).

Cabano (2006) pointed out that many projects are experiencing limited abilities in meeting
the demands of capital programs due to the limited skills of their human resources, he also
makes mention of the fact that resources level in project management is more acute than most
other disciplines. The allocation of human resources in the execution of projects is usually
made according to the experience and intuition of project managers. Successful negotiation
for project staff assignments is oftentimes dependent on the best HRdepartment assign
leadership to projects and based on their ability to ensure that the project receives
appropriately competent staff in the required time frame (Dainty, et al., 2005; Kotnour &
Vergopia, 2005).
HRM Practices
In this study, human resource practices refers to a combination of individual skills and
organizational routines (Huang, 200), which are routinely used as a part of the organization.
These consists of three components: One, Culture which refers to the beliefs, values, norms
and management style of the organization; Two, Organizational structure- job roles and
reporting lines of the organization; Three, People- the skill levels, staff potential and
management capability, and; Four- human resources systems- the people focused
mechanisms which deliver the strategy e. g. employee selection, communications, training,
rewards and career development.

According to Huang (2000), HRM practices are one area that influences employees‟
intention to leave, levels of job satisfaction, and organizational commitment. Bratton and
Gold (2007), illustrates the function of human resource management as “the process of
linking the human resource function with the strategic objectives of the organization in order
to improve performance”.

Bratton and Gold (2007) define HR planning as „the process of systematically forecasting the
future demand and supply for employees and deployment of their skills within the objectives
of the organization‟. Werner and DeSimone (2006), human resource planning helps
companies predict how changes in their strategy will affect their HR needs. Planning the
workforce needs of any company is very critical and important especially in the rapid
changes in external market demands. Koch and McGrath (1996) found a positive relationship
between HR planning and labour productivity.

Motivating employees through a good reward system constitutes a difficult and challenging
task for general managers as it can positively affect employees‟ behavior toward their jobs
and increase their commitment and thus their performance. Armstrong & Murlis (2007) states
that reward strategies are an important part of an organization‟s HRM and should be bundled
with other HR practices so that they complement and reinforce one another. Bratton & Gold
(2007) found that motivation through a good reward system can lead to an increase in
employees‟ productivity.

MATERIALS AND METHODS

Scope (Study Focus Area)

The scope or study area of this thesis is limited with certain issue both on place and topic
(title). in our case, when we discuss about the effects of organized human resource on
construction industry, we can find so many construction types as well as different countries in
Ethiopia. Places where to construct our thesis may probably many and these construction
types and areas are more over familiar with the human resource practice manner.
Construction types may vary in complexity, function, material etc. while places of
construction may vary in climatic condition, culture, material availability etc. So, it is
important to limit the scope of the study to get reasonable findings. This thesis is limited to
the comment on the effects of organized human resource on construction process in Ethiopia
region of S/N/N/P/R government capital city of sidamma zone called Hawassa. We will focus
on building construction projects which are in under construction phase. The Project may be
public or private that are more suitable for our research input and finally generate exact result
and solution.

Study Methodology

This research thought of to be successfully will carried out by observational study with group
members together. The thesis design is based on using both primary and secondary data and
Literature review is done to build a conceptual background on procedures and tools. This
design in general places more emphasis on the analysis of importance, techniques and criteria
of organized human resource management practice. The thesis strategy is known to perform
two main functions were conceptualizing operation plan and ensuring the validity and
reliability of this operational plan to thesis questions.
Data sources include primary and secondary data. Primary data will be obtained from
questionnaires and interviews with the clients of the project, Contractors and
Consultants/Engineers involved in construction projects and other stakeholders who are
involved in the construction industries. The purpose of the questionnaires and interviews
helps to know or identify the different understanding of contracting firms in construction
project about the effects of organized human resource construction process.
Secondary data will be obtained by thoroughly studying and investigating books, handouts,
previous studies and documents obtained from organizations and experienced people’s
written documents about the human resource management practice on construction process.
Those secondary data could be:-
 Written documents (Books)
 Contract documents
 Web sites
Both qualitative and quantitative methods will apply in the thesis because our aim is to
arrange and analyze the thesis problems, the data collected from the questionnaires and
interviews. The scope of this survey encompasses those contracting parties who are involve
in construction project and have experience on the issues of the topic.
Data Management and Analysis
In the interview several questions will ask in a manner where the respondent would state
whether they wish, rather than having to choose from defined response categories. An open-
ended question allows very specific items will be state, but can lead to detailed responses
because they will guide to focus to our research questions. To classify the open-ended
responses categories will develop and the responses will assign to the most appropriate
category. Placing limits on the number of items classify prevents the over representation of
one respondent’s viewpoints. Summarizing analytical review will made for the discussion
based on interview. Only key questions that are believed to include other questions will
analyze with respect to the research purpose. Finally, the data’s gathering from semi-
structured interviews conduct with key informants will be analyzing. Then the results will
compare with study design to see if they will agree or not will be discuss. Using analysis of
the collected data, conclusion will forward together with recommendations.
BUDGET BREAK DOWN

The total cost of this proposal is estimated to be 1140 ETB. Detail cost of the proposal is as
shown in table below:

No. Item Qty Rate Amount

(Birr)
1 Stationeries
1.1 Photo copy 240 0.50 120
1.2 Internet 600mi 0.40 240
n
1.3 Flash Disk (4GB) 1 180 180
1.6 Transportation 200km 2.00 400
1.7 Printing 200pcs 1.00 200
Grand Total 1140.00

TIME FRAME OR WORK PLAN

MONTHS

FEBRUARY MARCH APRIL MAY JUNE

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
1) Title
analysis
2) Proposal
Preparation
3) Proposal
Comment
4) Final
Proposal
Preparation
5) Study
design & data
collection
6) Data
Collection
7) Final
Thesis
writing
8)Final
Report
Submission

EXPECTED OUTPUT
The results obtained from this research are necessary to be used as a safe, easy and quality of
construction process improved by the practice of human resource management in the area of
study. This preliminary study will help to avoid construction problems which face due to
human resource matter for quality and performance of construction industry. The study will
benefit consultants, contractors, researchers. It is expected that construction industries to
carry out organized human resource management practice from planning phase to
implementation phase.
REFERENCES
Evans P., Pucik V., Barsoux J. (2002). The Global Challenge: Framework for
International Human resource. New York.

Hayton J., C. (2005). Promoting corporate entrepreneurship through human resource

management practice: A review of empirical research. Human Resource Management Review, 15,
21 -41. Heumann M. (2010). Considering Human Resources Management when developing a project-
oriented company: Case study of a telecommunication company. International journal of Project
Management 28, 361-369.

Pickett P. L. (2000). People make the difference. Industrial and Commercial Training. 225-229.

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