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Factors Affecting Employee Productivity PDF
Factors Affecting Employee Productivity PDF
Factors Affecting Employee Productivity PDF
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Research Student, School of the Environment, University of Brighton, Brighton, BN2 GJ, UK
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School of the Environment, University of Brighton, Brighton, BN2 GJ, UK
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School of the Environment, University of Brighton, Brighton, BN2 GJ, UK
E-mail: nfa1@bton.ac.uk
1.0 INTRODUCTION
The construction industry in UAE is a multibillion dollar industry, contributing
approximately 20 % to the nations GDP. It is buoyed by high liquidity, high oil prices,
stable political environment and availability of cheap labour from the Asian countries.
(Gulf News, 26 Dec 2006). The fast and vast economic transformation has resulted in
dramatic changes to the labour market which has affected the work, employers and
employees in many ways. The result is that the labour market is subjected to
influences from a variety of sources that are changing rapidly and drastically. The
influences include different management styles, language barriers, customs, new
currencies, availability of food materials, separation from families, level of
supervisors, camp accommodations and so on. Such influences have direct impact on
productivity rates.
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Productivity – achieving quantity and quality of results while controlling the inputs is
therefore a key challenge for all contractors. Improved productivity will help
contractors not only to be more efficient and profitable whilst executing the jobs,
knowing actual productivity levels could also make the contractors more competitive
whilst bidding for the projects. On the other hand, the shortages faced by the
construction industry could be overcome by better productivity on site and utilization
of available manpower resources. All contractors within the UAE face the same
amount of constraints; same specifications apply and therefore the bottom line
performance of contractors is influenced by how effective & well planned, the
construction methods are, and whether the construction operatives work at optimal
productivity.
a) Demographic Influences:
The UAE population is relatively low compared to the influx of foreign workers in
UAE, especially in the construction industry. Expatriate workers make up
approximately 90% of the UAE labour force, with 98% of the workforce in the private
sector. The total labour force is more than 3.3 million and this is dominated by foreign
workers, especially from the Asian countries.
d) Environmental Conditions
The UAE has a hot humid climate with temperatures reaching upto 45-47 degrees
centigrade and relative humidity, varying from 40 -80 and in some cases upto 95%.
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The UAE Labour Law stipulates midday break from 12.30 -3.30 pm during the hottest
months of July and August every year.
e) Living Conditions
Most of the workmen are housed in labour camps 8 to a room with / without cooking
facilities. It is common to find that monthly salaries are retained for upto two months
for workmen by most of the contractors. Most workmen go on leave once every two
years. High inflation and cost of transport limits their ability to shop and move around.
f) Sponsorship Laws
UAE Labour laws does not allow free movement of labour, except for some exempt
categories such as Engineers, Doctors, Qualified Accountants, etc. that too only after
they have served at least one year with the current sponsor.
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roughly as the safety needs (Maslow, 1987, pg. 18). Much of the management of job
security lies in the hands of the management, especially building confidence about the
future expectations of employment security and promoting progressive human
resources policies and practices (Guest, 2000, pg. 144).
4.2.2 Delegation
It is broadly accepted that delegation leads to success and proper expansion of
organizations. Organizations that are sized according to one man capabilities remain
limited regardless of the abilities of that man or his dormant team members (Rosinski,
2003, pg 120), where as, a hierarchal orientation can lend itself to the making of
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unilateral decisions and efficiency in dealing with a crisis situation, delegation
orientation will naturally cause managers to foster team work and an individual sense
of autonomy and responsibility.
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psychologists, namely possibility. On the whole, we yearn consciously for that which
might conceivably be actually attained (as in Maslow, 1987, pg. 12). Therefore setting
realistic attainable targets is important.
4.4.3 Age
Age plays an important role in performance. Generally speaking there is a direct
relationship between age and performance, assuming that we learn something every
day and become more experienced every day. However, we must note that with some
specific jobs that need physical attributes the performance is generally inversely
related to age. Age also inhibits ambition and could make man complacent.
4.4.5 Motivation
Human beings have an innate tendency to move towards higher levels of health,
creativity and self fulfilment. Business efficiency and personal growth are not
incompatible. In fact, the process of self-actualization leads each individual to the
highest level of efficiency. Performance is goal oriented, this means that individuals
are motivated to perform. The level of motivation therefore differs in individuals and
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affects productivity. Moreover, motivation is not related to the nature of the individual
only, but also related to the situation or environment in which the individual finds
himself (Friday, 2003).
As a first point of research, we intend to narrow down the significant factors affecting
performance. A questionnaire, ref. Annexure 1 - was designed which was sent to
different levels of personnel amongst the players identified above. Efforts are still on
to secure at least 50% response to the survey by personal interviews, telephone
conversations and email follow up from the targeted respondees. See table 1 below.
However, for the sake of this paper and as a means to test out the questionnaire, a
pilot study was conducted amongst selected company employees and similar levels
from other contractors. Results from this pilot study are being reported in this paper.
Following this pilot study, a detailed survey has been planned to include a cross
section of all interested parties – clients, contractors, subcontractors together with
different levels of personnel involved as depicted in table 1 above.
These questions asked were related to the four groups identified at the start of this
section earlier namely -
• Environmental Envelope
• Organization Work Policies
• Group / Team Dynamics and Interpersonal Relationships
• Personal Employee Factors
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Following formulas have been used to determine the importance index, frequency
index and severity index. (Kadir, et, al, 2005, pg 47)
Importance =
5n1 + 4n2 + 3n3 + 2n4 + n5
Index
5(n1 + n2 + n3 + n4 + n5)
Frequency Index =
3m1 + 2m2 + m3
3(m1 + m2 + m3)
Severity Index = Importance Index x Frequency Index
Where,
n1 = number of responses for “Very Important” degree of importance
n2 = number of responses for “Important” degree of importance
n3 = number of responses for “Neutral” degree of importance
n4 = number of responses for “Not Important” degree of importance
n5 = number of responses for “Strongly Not Important” degree of importance, and
n1, n2, n3, n4, and n5 each have a weight of 5, 4, 3, 2, and 1 respectively.
And,
m1 = number of responses for “High” frequency of occurrence
m2 = number of responses for “Medium” frequency of occurrence
m3 = number of responses for “Low” frequency of occurrence, and
m1, m2, m3 each have a weight of 3, 2 and 1 respectively.
Significant Factors – First 8 within groups
Rank
Ref. Importance Frequency
Category Probable Factors affecting productivity (Severity
No. Index Index
Index)
Proper Work Timings giving a balance between
1 0.9025 0.7339 0.6624
work and recreation and time with family
2 Salaries on time 0.8496 0.7507 0.6378
Environmental Factors
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6 Competence of supervisors 0.8244 0.7451 0.6142
Systematic method statements / procedures in
7 0.8345 0.7353 0.6136
place and known?
8 Setting of goals and targets 0.8496 0.7115 0.6045
1 Group Dynamics Individual or Personal Skills 0.8050 0.7633 0.6145
2 Knowledge of Work 0.8261 0.7423 0.6132
3 Overall Work Group / Team Skills 0.8126 0.7395 0.6009
4 Self Initiative and Competence 0.8118 0.7157 0.5810
5 Reasonable / Achievable targets given 0.7975 0.6961 0.5551
6 Nature of work given 0.7815 0.7059 0.5517
7 Frequent changes in teams 0.7412 0.7129 0.5284
8 Frequent changes in work allocation 0.7496 0.6961 0.5218
1 Technical qualified / educated for the trade 0.8437 0.7507 0.6334
Personal Factors
Total Questionnaires sent = 500
Medium = hard copies
Follow Up Medium = telephone /personal interviews / email
Time taken to respond = 1 month
Total Responses Received = 238
% Response = 48%
Environmental Organizational
Group Factors Personal Factors
Factors Factors
1 Proper Work Timings
giving a balance Technical qualified /
Leadership Skills of Individual or Personal
between work and educated for the
supervisors Skills
recreation and time with trade
family
2 Transparency and
Salaries on time Accountability of each Knowledge of Work Attitude of person
level of management
3 Reasonably well paying Overtime Paid for Overall Work Group / Overall appreciation
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job work done beyond Team Skills of ones work
normal Working hours
4 Safe Secured Job Materials available on Self Initiative and
Previous Experience
time Competence
5 A job where your voice Defined policies and Reasonable /
Overall job
is heard and experience procedures by Achievable targets
satisfaction
is valued management given
6 Employee Welfare
oriented schemes ? Competence of
Nature of work given Accumulated Training
Health, Recreation, supervisors
Vacation
7 Appraisals where Systematic method
statements / Frequent changes in Motivation of the
improvements needed
procedures in place teams Operative
are identified
and known?
8 Free and Frank Two Setting of goals and Frequent changes in Overall appreciation
Sided Performance
targets work allocation of ones work
Appraisals
Thus the most significant factors affecting productivity is related to the players
involved – the supervisors and their leadership skills, the workmen themselves – their
competency and attitude, work timings and whether salaries are paid on time and how
transparent and accountable the management is.
Other factors within the environmental envelop affecting productivity are related to
whether the workman is paid well, feels a sense of security and feels appreciated and
effective appraisals.
Organizational factors also include whether overtime is paid, whether materials are
made available, known management policies, procedures and method statements, set
goals and targets, how competent the supervisors are and whether goals are set.
Group factors also include the team skills, self initiative, achievable targets, nature of
work, whether teams are changed frequently and work allocation is disturbed.
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The personal factors further include overall appreciation of ones work, previous
experience, overall job satisfaction, training, motivation and overall competence of the
workman himself.
The above discussion summarized the factors within groups – however when we
assign the ranks and sort them out – the most significant factors with overall ranking
are:-
These factors will then be used further within the study as variable parameters to see
how the productivity is affected.
On the other hand a review of the factors which did not return high rankings are also
worth a mention – For example – political situation, high temperature / humidity or in
general climate conditions scored low – giving a possible indication of the mindset of
most of the expatriates in the UAE.
On the group / team front, the cultural differences seem not to matter as is the
nationality of the team members, structure and the language.
Again on the personal front, the age of person, creativity, overall communal feeling
and camp conditions seemed not to matter much in productivity.
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5.0 FUTURE RESEARCH
The significant factors found from this survey are being utilized to formulate how a
combination of these could affect productivity in the construction industry. Average
productivity rates currently used by Target Engineering Construction Company are
being used as a basis for comparison with specific productivity rates derived from data
collection from the selected sites. Data collection is currently under progress.
Following trades are being considered.
The study is being carried out at current projects being executed at different site
locations, varying the factor, then comparing the results and trying to find out the
correlations. The different sites have been purposefully selected as each of them is
unique in nature and productivity rates vary tremendously due to nature of client
involvement, location – remote / city based and the workmen demography /
competence levels will vary considerably.
6.0 CONCLUSIONS
Productivity of various trades in the construction industry are critical for an accurate
estimation of the time and cost of a job. Having better productivity would mean
optimal utilization of manpower resources; more accurate estimates of cost to build,
better profits, high morale of employees and better relations between employer and
employee. This is all the more important in UAE as the construction industry
workforce come from a varied background, and different cultures and there is shortage
of manpower.
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The most significant factors in their order of ranking are proper work timings giving a
balance between work and time for family, leadership skills of supervisors, technical
qualifications, whether they are well paid or not and on time, security of job,
transparency and accountability of management, payment of overtime, whether
materials are available, procedures, policies, work method statements are available, an
finally personal skills, competency of supervisors and knowledge of work on an
individual level.
The overall study is still ongoing and the best combination of factors that will lead to
increased productivity will be determined in due course of time in the form of a
model.
Further the study for significance itself could be limited by possible bias of the
company personnel and it is expected that as more responses come from non company
sources, the results might change a little.
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