HUMAN RESOURCE MANAGEMENT AND ORGANIZATIONAL PERFORMANCE OF CONSULTING FIRMS IN THE NIGERIAN CONSTRUCTION INDUSTRY

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                                                  ABSTRACT

This research work aims at assessing the impact of human resources management of organizational performance of quantity surveying firms in Nigeria. In order to achieve this aim, the study aims at assessing the level of human resource management practice among quantity surveying firms, determining the relationship between human resource management practice and organizational performance of quantity surveying firms and identify which of the human resource management practice mostly influence organizational performance. Extensive welfare reviews was carried out to review what past researcher has done on the topic and the relevance of their work to the present research. A descriptive survey method was adopted in the study where structural questionnaire was sent to the respondents of the study which were selected using purposive sampling technique. Data collected was analyzed using spss tools of frequency, percentages, mean and ranking index.  The results of the study from this research shows that the most adopted of all HRM practices in the construction consulting firms is Job Evaluation which is determination of the worth of a job to an organization. According to this research work also, Job Evaluation is the most important and most influential of all HRM practices which is commonly practiced by the HR departments of respective consulting firms. The study is concluded by recommending  measures that should be enforced from the year establishment is the increase in number of employees in the Construction consulting firm which implies the more the number of employees in an organization the more the increase in performance. 

 

 

TABLE OF CONTEN

        Pages

TITLE PAGE                                                                                                           I

CERTIFICATION                                                                                                   II

DEDICATION                                                                                                         III

ACKNOWLEDGEMENT                                                                                       IV

TABLE OF CONTENTS                                                                                         V

LIST OF TABLES                                                                                                   IX

ABSTRACT                                                                                                              X

 

CHAPTER ONE : INTRODUCTION

1.0 Background to Study                                                                                           1

1.1 Statement of Research Problem                                                                            3

1.2 Research Questions                                                                                               4

1.3 Aim and Objectives of the Study                                                                         4

1.4 Significance of the Study                                                                                     5

1.5 Scope and Delimitation of the Study                                                                   5

1.6 Definition of Terms                                                                                              6

 

CHAPTER TWO : LITERATURE REVIEW                                                                

2.0 Introduction                                                                                                          7

2.1 The Nature of Human Resource Management                                                     7

2.2. Performance of the Contracting Organization                                                     7

2.2.1 Nigerian Contracting Organization in the Construction Industry                     8

2.2.2 Human Resource Management                                                                          8

2.3 Definition of Management                                                                                   10

2.3.1 Issues in Human Resource Management                                                           11

2.3.2 Functions of Human Resource Management                                                     12

2.3.4.5 Activities of Human Resource Management                                                  13

2.4 Models of Human Resource Management                                                           15

2.5 The Fombrun, Tichy and Devanna Model of HRM                                             15

2.5.1 The Harvard Model of HRM                                                                             16

2.5.2 The situational factors                                                                                        16

2.5.2.1 The stakeholder interests                                                                                16

2.5.2.2 Human resource management policy choices                                                 17

2.5.2.3 The human resource outcomes                                                                        17

2.5.2.4 The long term consequences                                                                           17

2.5.2.5 feed-back loop.                                                                                               18

2.5.2.6 The Storey Model of HRM                                                                            18

2.5.3 The Warwick Model of HR                                                                               20

2.5.4 Reward System in Organizations                                                                      21

2.6 Reward System                                                                                                     21

2.6.1 Wage and Salary Administration                                                                       22

2.6.2 Aspect of Wage and Salary Administration                                                      23

2.6.3 How to Determine the Overall Wage and Salary Level                                    24

2.6.4 Job Evaluation                                                                                                   26

2.7 Morale, Motivation and Performance in Construction Organizations              27

2.8 Staff Morale and Motivation                                                                                28

2.8.1 Job Analysis, Job Satisfaction and Performance                                               30

2.9 Task                                                                                                                       31

2.9.1Duty                                                                                                                    31

2.9.2 Position                                                                                                              31

2.9.3 Job                                                                                                                      31

2.9.4 Job Specification                                                                                                31

2.9.5 Job Classification                                                                                               31

2.9.6 Job Description                                                                                                  31

2.9.7 Job Satisfaction and Performance                                                                     32

2.10 Personnel and Human Relations                                                                         34

2.11 Principles of Human Relations                                                                           35

2.12 Organizational Culture, Personnel Commitment to Work and Organizational Effectiveness                                                                                                                38

2.13 Definition of an Organization                                                                             38

2.13.1 Personnel Commitment to Work in Organization                                            41

2.13.3 Organizational Effectiveness                                                                           45

 

 

CHAPTER THREE : RESEARCH METHODOLOGY                                                

3.0 Introduction                                                                                                          48

3.1 Sources Of Data Collection                                                                                  48

3.2 Primary Data Sources                                                                                           48

3.2.1 Secondary Data Sources                                                                                    49

3.2.2 Research Design                                                                                                49

3.3 Research Population                                                                                             50

3.4 Sampling Design and Techniques                                                                         50

3.4 Sampling Procedure                                                                                              50

3.4.1 Sampling Size                                                                                                    50

3.4.2 Questionnaire Administration                                                                            52

3.5 Questionnaire Design                                                                                            52

3.5.1 Questionnaire Distribution                                                                                 52

3.5.2 Method of Data Analysis                                                                                  53

 

CHAPTER FOUR : DATA PRESENTATION, ANALYSIS AND DISCUSSION       OF FINDINGS.                                                                                               

4.0 Introduction                                                                                                          54

4.1 Correspondence to the Research Instrument administered                                  54

4.2 Year of Establishment or respondent’s Organization                                           55

4.3 Position of respondent in management                                                                 55

4.4 Academic Qualification of respondent                                                                 56

4.5 Respondent’s Professional Qualification                                                              56

4.6 Working Experience of Respondent                                                                     56

4.7 Total number of Employees in your Organization                                                57

4.8 Possession of Human Resources Management Department in

    your Organization                                                                                                   57

4.9: HR Department                                                                                                   57

4.8The level of HRM practices amongst Consultants in the Nigerian

   construction Industry                                                                                               58

4.10 The influence of HRM practices on Organizational Performance of

     Consulting Firms                                                                                                    59

4.11 Measurement of Organizational Performance in Terms of Growth                    60

4.12 Discussions of Findings                                                                                      60

4.2 Appraisal of the level of HRM practices amongst Consultants in

      the Nigerian Construction Industry                                                                      61

4.3 The Influence of HRM practices on Organizational Performance of

      Consulting Firms                                                                                                   61

4.4 Measurement of Organizational Performance in Terms of Growth                      61

 

CHAPTER FIVE : CONCLUSION AND RECOMMENDATION                             

5.0 Introduction                                                                                                          62

5.1 Conclusion                       

                                                                                    62

5.2 Recommendation                                                                                                  63         

References                                                                                                                  64

Appendix                                                                                                                    68

 

 

 

 


 

LIST OF TABLES

 

Table 2.1 the Storey model of HRM                                                                          20

Table 4.1: Response rate to the research instrument                                                   54

Table 4.2: Year of Establishment                                                                                55

Table 4.3: position of respondent                                                                               55

Table 4.4: Academic Qualification                                                                             56

Table 4.5: Professional Qualification                                                                          56

Table 4.6: Working Experience                                                                                   56

Table 4.7 Total number of Employees in your Organisation                                      57

Table 4.8: HR Department                                                                                          57

Table 4.9: level of HRM practices                                                                              57

Table 4.10: Influence of HRM on Organizational Performance                                 58

Table 4.11: Measurement of Organizational Performance                                          59

 

 

 

 

 

 

 

 

 

 

 

 

CHAPTER ONE

INTRODUCTION

1.0 BACKGROUND TO STUDY

The Nigerian Construction industry is deemed to operate by diversified workforce, hence managing human resource issue deems to be a challenging task. However, as the role of Human factors in the process of business and productive activities, Human Resource Management is the key factor which has the immediate impact to the organizational structure, especially in the Construction Industry, so Human Resources are the most valuable source of Capital, (Phan, 2012)

According to Wikipedia (2001), HRM is a function in organizations designed to maximize employee performance in service of their employer’s strategic objectives. HRM is primarily concerned with how people are managed within organizations, focusing on policies and systems. HRM departments and units in organizations are typically responsible for a number of activities, including employee recruitment, training and development, performance appraisal, and rewarding (e.g., managing pay and benefit systems). HRM is also concerned with industrial relations, that is, the balancing of organizational practices with regulations arising from collective bargaining and governmental laws. HRM is the process of managing people in a company/firm as well as managing the existing interpersonal relationships. These two processes are key in the success and growth of a business. Human resource management is the management process of an organization's workforce, or human resources. It is responsible for the attraction, selection, training, assessment, and rewarding of employees, while also overseeing organizational leadership and culture and ensuring compliance with employment and labour laws (Anthony and Kothai, 2014)

HRM is a product of the human relations movement of the early 20th century, when researchers began documenting ways of creating business value through the strategic management of the workforce, (Wikipedia 2004). HRM is concerned with managing people within the employer-employee relationship. Specifically, it involves the performance of people in achieving the organization's objectives and the satisfaction of personal employee needs. HRM can be a major contributor to the success of the enterprise. HRM has been regarded in various industries as one of the most critical elements of business success. The successful implementation of HRM functions are elements for improving personal, team and organizational performance, Dainty, Belout and Gauvreau, (2004). A number of authors state that the basic functions of HRM include planning, job design devising position descriptions, employee selection/recruitment, employee training, performance appraisal systems, reward systems, employee relationships and employee's health and safety according to Druker,  Maloney, Bratton Gold, Koch, Loosemore and Ramlall (2003). HRM substantially influences the output of business, for example, on quality, technology, competitive strategy and development. Furthermore, HRM should include practices, which provide training and development opportunities for all employees to improve individual skills and flexibility of roles (Mullins, 1999).

Human resource management has a significant influence in the QS firms. Although construction technologies and management techniques have advanced rapidly, project managers still need to pay more attention to people management. Human resources still account for the majority of costs in most construction projects (Loosemore et al., 2003). International construction projects normally require a longer time span and more parties are involved (Chan and Tse, 2003). HR issues have positive and adverse implications for construction industries in all countries (Ofori, 2003). HRM is also a significant aspect of the whole planning and project management  process in construction projects, in particular international construction projects that involve foreign firms as collaborators or competitors (Bon and Crosthwaite, 2000; Mawhinney, 2001).

The complex international construction climate, caused by increased global price competitiveness, development of technologies, changing industry and employment legislation, and changing workforce composition has prompted project managers to utilise their employees more effectively to gain competitive advantage and project success. In recent years there has been a widespread realisation that improvement of HRM performance is a critical element to achieving improvement in efficiency, productivity and cost effectiveness in the construction industry. Howes and Tah (2003) describe how the situational model of HRM, the staff performance model of HRM and the socio-technical model of HRM are being implemented in the construction industry.

In view of this research, the aim of looking at the relationship between HRM and performance of contractors’ organisation in the Nigerian construction industry is based on the review of the research questions. This will aid us to know level at which HRM practices has improved the performance level of the contractors’ organisation in the Nigerian construction industry as well as its contribution to the Economy.

  1.1 STATEMENT OF RESEARCH PROBLEM

Construction companies experience many challenges in human resource management and development because of the high number of temporary staff, Alvin (2011). This he says is mainly due to the fluctuation in the demand of the industry not to mention the subjective reasons (i.e. specific procedure in production, material and technology) that limit the workers decision making process.

According to Adeagbo and Oyemogum (2012), human resource development is not regularly practiced in most construction firms in Nigeria. Majority of the firms are small and medium sized with more semi-skilled and unskilled work force than skilled work force.

Lack of timely project delivery of construction projects are influenced by lack of full commitment by workers due to the company’s reward system which causes them job dissatisfaction.

 Great expenditures of time, money and resources, both human and material, are wasted each year because of inefficient quality management procedures.

A serious limitation that recent reviews of the literature points out is that the link between HRM and organizational performance is considered like a ‘black box’, i.e., lack of clarity regarding ‘what exactly leads to what’ (Gerhart, 2005).

 

1.2 RESEARCH QUESTIONS

1.      What is the level of HRM practices amongst consultants in the Nigerian construction industry?

2.      What are the HRM practice factors that influence the consultant’s organisation performance?

3.      What is the relationship between organisation performance (in terms of growth) and HRM best practice?

 

1.3 AIM AND OBJECTIVES OF THE STUDY

The aim of the study is to determine the effect of HRM practices in the improvement of organisation performance of the consultants in the Nigerian construction industry.

Objectives:

1.      To determine the level of HRM practices amongst consultants in the Nigerian construction industry

2.      To identify the HRM practices that influence performance of consultant’s organisation

3.      To determine the relationship between HRM  practices and organisation performance measured in terms of growth

 

1.4   SIGNIFICANCE OF THE STUDY

This study will show the importance of HRM in Quantity Surveying organizations and as well as its influence on employees in Quantity Surveying firms in the Nigerian construction industry

 The result of the study will also show the importance and the impact of HRM practices in the development of construction projects in the Nigeria construction industry. The study will also show the relationship level between HRM and contractors and its contribution to the Nigerian economy.

An assessment of the study would provide valuable information on the Influence of Human resource management on organization performance of contractor’s in the Nigerian construction industry.

1.5 SCOPE AND DELIMITATION OF THE STUDY

The scope of this research is limited to the influence of Human resource management basic practices on organization performance of QS firms in the Nigerian construction industry.

The study is limited to Respondents construction organizations within Lagos Metropolitan because Lagos has larger number of organizations practicing and they also have their headquarters in Lagos which will lead to easy access of information by the researcher.

Target respondents for this study are professionals in the contractor’s organization and Lagos metropolitan is to be studied for this research work.


1.6 DEFINITION OF TERMS

a.       HUMAN RESOURCES: This is the part of the management process that specializes in the management of people in work organizations

b.      MANAGEMENT: Management may be seen as a science or as an art. The image of management as a science is based on the view that experts have accumulated a distinct body of knowledge about management which, if studied and applied, can enhance organizational effectiveness.

c.       EMPLOYEES: This refers to people that are paid to work

d.      STAFFING: This deals with obtaining people with appropriate skills, abilities, knowledge and experience to fill jobs in the work organization

e.       REWARDS: This involves the design and administration of reward systems. Practices include job evaluation, performance appraisal, and benefits

f.       JOB EVALUATION: This is the determination of the worth of a job to an organization

g.      JOB SATISFACTION: Job satisfaction is the quality, state, or level of satisfaction which is the result of various interests and attitudes of a person.

h.      CONSULTING ORGANIZATION/FIRM: A consulting firm/ organization is a firm of one or more experts (consultants) that provides professional advice to an individual or an organization. The primary purpose of a consulting firm is to provide access to industry specific specialists/consultants and subject matter experts.

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