Management Practice for the Built Environment

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Chapter One: Human Resource Functions

Although the construction industry is among the main labor- demanding, individual

issues are not addressed carefully. Additionally, the emphasis on HR has been on the strategic

characteristic of the HR function, however, most serious operational issues occur from the

construction industry (Yankov & Kleiner 2001). In the construction industry, executing and

tracking of human resources strategies is normally complicated than other fields. This industry

requires that human resource functions are implemented in getting skilled workers to form a

limited ability pool. For human resource manager to run an efficient job in the construction

industry, there should be a thorough understanding of hiring, training, and retention.

Lean Talent Pool

The biggest problem facing HR managers in the construction industry is the requirement

for certain skill-set which is not easy to locate (Loosemore, Dainty & Lingard 2003). HR

managers in the construction industry should look and hire experienced applicants basing on the

specification of the project. Since every project has different requirements and getting the most

suited person may not be an easy task. The HR manager has to search in a lean talent pool to

recruit the right applicants (Chinowsky & Meredith 2000). The HR manager is required to go

through a search when recruiting by targeting their advertising correctly. The selection procedure

is essential because they need to filter the applicants that don't qualify for the job. The

construction industry has diverse roles ranging from the professionals to unskilled workers.

Industry Training

After recruiting the right professionals, the HR managers have to ensure that those hired

are appropriately trained in relations to the particular requirements. The HR implements

necessary policies for training in the use and application of types of equipment, machinery,
health and safety training, or acquiring of certification (Egbu, 2004). Even when the applicants

have the necessary qualifications such as civil engineering degree, it is important for HR

managers to make sure that extra certificates and training particular to the project are provided.

Health and safety in the construction industry should be the most important concern for HR

managers since the workers are exposed to various risks and dangers.

Contractor and Employee Retention

Because of the requirements of the construction industry, it is a bit difficult to retain

employees and constructors. For instance, a graduate civil engineer may get other openings in

other organizations which make him jump to better offers. As the construction industry seems to

operate on a project-by-project basis, retaining employees can be a very challenging task. The

HR manager focuses on the best policies of retention such as incentive-based bonuses after

achieving the project goals. Additionally, the HR manager applies other benefits and incentives

such as vehicles, accommodation, and allowances for equipment and tools. Offering financial

reimbursement for additional qualifications can be very encouraging and achievement of

retention of employees at the construction industry (Loosemore, Dainty & Lingard 2003).

Chapter Two: Strategic Management Process

During the strategic management process in the construction industry, the first step is to

understand the intentional position of the company by scrutinizing and scanning the internal and

external environments. Then the managers prepare the possible way to act and evaluate and make

a choice between them (Egbu, 2004). Finally, planning how to implement the choices of the

strategy. Strategic management of the construction company occurs in a complex business

environment. Consequently, it is necessary to understand the external business environments and

the appraisal of internal environments. External impacts such as technological, political and
economic can be analyzed by PEST analysis. On the other hand, the construction company can

use SWOT to analyze its internal influences that helps in balancing pragmatism and idealism.

After strategic analysis, the managers will have a strategic choice. Strategic choices are

the main elements of strategic management. There are three kinds of assessment criteria that can

be applied namely feasibility, acceptability and suitability (Egbu, 2004). Strategic management

in the construction industry is rapidly gaining acceptance because of the changing markets which

entail better corporate awareness of transformations and its applications. The strategists in the

construction industry are supposed to have tools and skills to develop and implement the

strategies that improve the performance of the company.

The strategists in the industry should have a clear strategy, improve the corporate accord

of the company and provide the employees with clear information about where the organization

is heading. Hence, the construction industry strategists should always evaluate the market they

operate, look for the most modern trends and how the competitors operate (Egbu, 2004). The

most triumphant firms in the construction industry are applying the development process to

conform to the market competitive reality. At the time managers are implementing strategic

planning process they need to believe in the dynamic, embedded and complex nature of the

construction industry.

The development will help to capitalize on competitive advantage and assess the value

developed by the strategy that enables identification of striking markets and realize how it can

improve profitability. Time also plays a vital role in the strategic management of the firm to

achieve success. There is a likelihood of enhanced financial performance if actions are logical

with the pragmatic forecast. Another step is for the managers to focus on the business’s capital

return and if it is not positive then necessary measure should be implemented to correct the
problem or abandon the strategy (Chinowsky & Meredith 2000). At the planning step, managers

should forecast changes earlier to avoid the issue becoming more complicated and respond

accordingly. Different forms of innovations in the construction industry should be adapted like

supply chain management, partnering, and alliances. Most construction industries have failed to

succeed because they don’t follow the required strategic management process.

Chapter 3: Current Management Issue

The construction field seems to be at a crossroads. there is a high demand for

construction professionals which have a negative implication on the management of the HR

department. even though the construction industry is the largest in the world, challenges such as

shrinking of construction skilled and unskilled workforce, digitations, performance, and

productivity could hamper the growth (Egbu, 2004). However, the main issue affecting

management in the industry is workforce particularly hiring a skilled workforce.

The construction industry has been grappling with the issue of skilled labor deficiency.

this has resulted in a serious current management issue. 78% of the businesses in the

construction industry believe that it is hard to get construction professionals such as engineers,

estimators, and supervisors. With few professionals in the market, the organization has to attract

experts who are already working somewhere else (Loosemore, Dainty & Lingard 2003). The

shortage of skilled workers in the industry makes the organization to face major competition

from well-established firms. The skilled and unskilled labor force in the company delays major

projects and increases the costs.

The organization is already putting in place measures in salary, compensation plans, and

other benefits just to ensure that it retains workers and attract a new skilled workforce. One

measure of getting the required number of workers is through investment in apprenticeship and
training. Doing this gives the company the chance to recruit skilled labor and retain the current

employees to proceed with its project load (Chinowsky & Meredith 2000). As the company

seems to operate on a project-by-project basis, retaining employees has been a very difficult

assignment. The HR manager focuses on the best policies of retention such as incentive-based

bonuses after achieving the project goals.

Additionally, the HR manager applies other benefits and incentives such as vehicles,

housing, and allowances for equipment and tools. presenting financial reimbursement for

additional credentials can be very encouraging and achievement of retention of employees at the

company. since the problem of shortages of skilled workers seems to persist, the company needs

to start focusing on other alternatives to deal with the issue. It should try innovation skills where

it will overcome problems in the future (Loosemore, Dainty & Lingard 2003). One of the

strategies is to be proactive in the management and operations. The future of construction

companies is bright. However, growth has established a critical management issue that must be

tackled if they intend to survive in the future.

Constriction Industry
Development Board: South Africa
Construction Industry Status
Report.
Constriction industry Development
Board, Pretoria (2015)
Constriction Industry
Development Board: South Africa
Construction Industry Status
Report.
Constriction industry Development
Board, Pretoria (2015)
Constriction Industry
Development Board: South Africa
Construction Industry Status
Report.
Constriction industry Development
Board, Pretoria (2015)
Constriction Industry
Development Board: South Africa
Construction Industry Status
Report.
Constriction industry Development
Board, Pretoria (2015)
Constriction Industry
Development Board: South Africa
Construction Industry Status
Report.
Constriction industry Development
Board, Pretoria (2015)
Bibliography

Chinowsky, P. S., & Meredith, J. E. (2000). Strategic management in construction. Journal of

Construction Engineering and Management, 126(1), 1-9.

Egbu, C. O. (2004). Managing knowledge and intellectual capital for improved organizational

innovations in the construction industry: an examination of critical success

factors. Engineering, Construction and Architectural Management, 11(5), 301-315.

Loosemore, M., Dainty, A., & Lingard, H. (2003). Human resource management in construction

projects: Strategic and operational approaches. Routledge.

Yankov, L., & Kleiner, B. H. (2001). Human resources issues in the construction

industry. Management Research News, 24(3/4), 101-105.