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Critical Appraisal of the Factors That Shape Hrm Approaches in the Construction Sector.

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Submitted By ogormanpcm
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BY DARREN O'GORMAN

Introduction

Site based projects are the everyday work environment for most individuals in the construction sector. Their competence and careers are built upon their contribution to these projects also their performance throughout the projects are what gives them reputation and makes them wanted for future jobs. Ferris et al. (1990) found that construction firms with higher levels of strategic, including human resource, planning have achieved higher organizational performance, including higher productivity, greater cost effectiveness, and greater overall efficiency. People and people processes are a source of competitive advantage for any company. Their skills and motivations result from an entire portfolio of “people policies, procedures, and processes which serve to train, develop, and retain” Gratton et al. (1999). Currently in the construction industry, there are few structured workforce management programs. There is however a need for a structured workforce management strategy in construction that can be used to effectively manage a workforce regardless of its skill level.

Similarly a Project Based Organisation incorporates the dilemma of the conflicting needs of the temporary projects and the permanent organisational setting that defends long-term development as well as routines and interorganisational coordination (Sydow, et al., 2004). Therefore, in the context of a construction organisation a tension or conflict can occur between soft and hard HRM systems and logics. In a construction project, people are employed by the main contractor or developer and not by individual projects. This would imply that the relationship between employees and the organisation would go beyond the time period of a certain project. It is more common nowadays in the construction sector that the main contractor rely on “sub-contractors” for completion

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