Professional Documents
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Ijm 12 05 021
Ijm 12 05 021
Ijm 12 05 021
Volume 12, Issue 5, May 2021, pp. 224-247, Article ID: IJM_12_05_021
Available online at https://iaeme.com/Home/issue/IJM?Volume=12&Issue=5
ISSN Print: 0976-6502 and ISSN Online: 0976-6510
DOI: 10.34218/IJM.12.5.2021.021
ABSTRACT
Human resource is an asset, and retaining the workforce is very crucial in the labor-
intensive industry such as the construction sector. However, managing the human
resource and retaining the high-performance through talent management is very
complex compared to other resources, which are required to complete the construction
project. Various factors affect the talent management process, and the characteristics
are well established in this research paper. This research paper's main objective is to
provide suggestions to manage human resources by the effective usage of digital tools
and technologies. The primary and secondary analysis represents the existing practices
for managing the skill gap and forms the basis for formulating the research gap. Since
the workforce digitalization has increased after the COVID-19 outbreak, a comparative
study of the H.R.M software will help the human resource manager to rethink their
function requirement and usability of the H.R.M software. The practical implementation
of various digital tools has been examined in this research and aspects to be considered
by the human resource manager while introducing new digital tools at the enterprise
level have been discussed in the research paper.
Key words: Skill shortage; H.R.M Initiatives; Digitalization; Change management
process; Human resource management; Talent management
Cite this Article: Ramya Ganesh and Rajiv Tyagi, Managing the Shortage of Skilled
Construction Workers in India by Effective Talent Management in New Normal –
Technology Perspective, International Journal of Management (IJM), 12(5), 2021,
pp. 224-247.
https://iaeme.com/Home/issue/IJM?Volume=12&Issue=5
1. INTRODUCTION
The definition of skilled worker in the oxford dictionary is “Having or showing the knowledge,
ability, or training to perform a certain activity or task well" (oxford dictionary, 2021) . This
salient fact presenting the significant challenges in the construction industry in managing the
skilled labor shortages and retaining skilled labor. The importance of skilled construction
worker's employment is discussed in detail by (Hussain, 2020). "Improvements in project
performance due to enhancements in labor skills have been highly demanding in the
construction sector for a long time. It has been widely acknowledged that project performance
is based on the labor’s skills during the project' execution stage, whose skills and abilities can
affect the project's progress to a greater or lesser extent. This scenario is mostly the case for
construction projects". Table 1 represents the skill requirement of various construction
professionals defined by the National Skill Development Cooperation (NSDC).
Nine major criteria of skilled worker in the construction sector are safety regulation, Labor
code, Construction materials-related safety, and other regulation, equipment application
procedure-related safety and other regulation, work-related training, working experience
(minimum two years), education (minimum class 5), physically up to date, Indian construction
regulation (Ahmed, 2017). NSDC stated that 83.3% of the total construction force is unskilled,
and the demand for construction labor will increase after the COVID-19 outbreak. The
management of the resource is the effective way to tackle the shortage of human resources,
which is the critical feature of any successful business. Innumerable examples of conglomerate
and project crises in the construction sector occur because of human behavior. It appears that
practices of human resources management (H.R.M) have the potential to eliminate more risks
in the construction than any other management approach (A.R. Malkani, 2013). Traditional
human resource management has limitations like inadequate information, improper
actualization, inadequate development programs, and lack of support from top management
(Smriti chand, 2019). The H.R. practices should be transformed into a dynamic digital economy
to overcome the limitation of traditional human resource management practices. This research
paper focuses on managing the labor shortage by effective talent management with digital tools
and technology.
2. LITERATURE REVIEW
The Indian construction industry accounts for 11% of GDP, and second-large industrial sector
after agriculture. The Indian construction sector is labor-intensive, which creates direct and
indirect employment of 33 million in total (Indian government , 2021), and the current
workforce of 33 million is expected to increase to 72 million by 2022. With the massive demand
for housing and 100 % direct foreign investment, there is great demand for resources like
material and human resources. In terms of labor expertise, around 83.3 % of the total workforce
is unskilled, as per the Indian Ministry of Skill Development & Entrepreneurship report
(MSD&E).
83.3
Ramakrishna Nallathiga stated that many unskilled workers are employed and also required
in every part of the construction because of the shortage of skilled labor. The construction
worker demand is not matched with the supply because of the various factors and the shortfall
of the labor workforce worsened because of the COVID-19 outbreak. Various researchers have
conducted content analysis to find the factors affecting the skilled labor force in the Indian
construction sector. Several authors (Benjamin, 2020; Faizul A, 2016; Chini,1999; and Nirmal
2018; ) attributed that economic change, union/open shop changes, educational changes and
images, irregular and low remuneration, low motivation and innovation, increased demand for
craft workers, lack of job security, aging workforce, changes in skill requirements, geographical
allocation, high mobility, new technology, poor construction industry image, not meeting
employer expectation, skill workers migrate overseas, unattractive jobs/lack of worker-oriented
career path, poor safety/site management, and inadequate education/training affect the
construction worker’s skill development. Two approaches can be followed to manage the
shortage of skilled labor either by reducing the need of construction workers by using modern
construction technologies like modularization, prefabrication and the second approach is to
increase the skill development of the existing workforce (A.R. Malkani, 2013). The factors like
providing training /education, motivation and innovation, fragmentation, poor safety/site
management, aging workforce, and economic change can be tackled with effective human
resource management along with digital tools and technologies. For skill development of the
existing workforce in the general construction industry often experience complexities in
meeting project completion schedule and finance due to the non-availability of a sufficient
number of skilled laborers and staff to carry out the planned work. This kind of intricacy can
be managed and it efficiently possible to handle such issues with proper utilization of human
resource management techniques to avoid the shortage of laborers. It has been observed that
the concern of human resources management (H.R.M) in construction is increasing day by day
along with the greater emphasis on human resources (A.R. Malkani, 2013) . Human resource
practices are very crucial and it affects the performance of the entire project. (Muneer
Mohamed Imhmed Abuazoom, 2017 ) has created a conceptual framework for establishing the
relationship between the H.R. practices like “1. On-the-job training 2. Internal career ladders 3.
Result-oriented appraisals 4. Employee participation 5. Employee security 6. Information
sharing 7. Self-management 8. Employee rewards to the project’s performance”. After the
COVID-19 outbreak, there is an abrupt increase in digital tools and technology in Human
Resource Management (H.R.M). Deloitte experts identify three main areas of digital technology
influence on H.R. management field: “1) digital workforces: introduction of new management
methods, a culture of innovation and sharing, a set of practical skills that contribute to the
creation of a new network organization (Katz, 2017), 2) digital workspace: design of the
working environment, use of modern communication tools, 3) digital H.R management ”
(Alena Fedorova, 2018 ). There are research articles that expound on the E-H.R.M,
implementing the human resource practices and initiative in the organization with the aid of
web-based technology and digital tools. After reviewing the existing literature review, founded
that research work related to the practical applicability of digital tools, and human resource
management techniques in the construction industry to manage the skilled construction worker
shortage was not detailed out. This research gap forms the core outcome of this research paper.
3.RESEARCH GAP
Table 2 Research Gap Identified
Research gap Deficiencies in research
Ambiguity in the analysis of H.R.M • Comparison of H.R.M software available in the market is
software attributes and, its practical still required
applicability. • Practical application of the software has been neglected
• Suggestions related to the preparation of an effective
resource plan, regardless of various factors affecting the
accuracy.
Lack of discussion regarding the • Understanding the responsibilities and risk-sharing of the
collaborative E-training program collaborative training program on increasing the skill set of
module in training/vocational program the construction worker lacks
provided to the construction workers • Collaboration between the private parties and public bodies
and staff. and benefits realization has not been elaborated.
Neglected the consideration while • The importance of realigning the human resource policy
introducing the digital tools or any following new technology and process have not covered
automation into H.R.M practices of an • Identifying the suitable change management process for
organization in the construction sector. introducing the digital tool is disregarded.
• The importance of selecting digital tools and technology,
interoperability, and integrating human information with
other software and processes have been hardly understood
through the existing research.
4. RESEARCH METHODOLOGY
This research paper’s overarching goal is to provide a descriptive analysis of strategies to
increase the existing workforce skill development using digital initiatives, which are in line
with human resource management practices. This research outlines to achieve the research
objective has mentioned hereafter.
Content analysis keywords “skilled labor, H.R. initiatives, E-H.R.M, Labor shortage”
to understand the existing practices to manage the labor shortage: This research outline
adopted is mainly based on the literature review of the skill development in construction and
managing the labor shortage in the Indian construction sector. Research work includes the
content analysis approach to cross-referencing the sources of information to identify the factors
affecting skill development and measures taken to increase the labor shortage from the talent
management perspective.
Key H.R. initiatives for Skill development have been shortlisted: Based on the literature
review, H.R. initiatives and practices for managing the existing workforce shortage, which is
suggested in the existing research papers are listed out in the pilot survey. The pilot survey is
circulated to get an insight into current practices and, to prioritize the H.R. initiatives.
Identifying the research gap to frame the primary outcome of research: Based on the pilot
survey’s filtered initiatives from the pilot survey, the literature review has been conducted
again. The research gap about each initiative is listed with deficiencies[Table 2: Research Gap
Identified].
Quantitative data collection and analysis for understanding the key H.R. initiatives in
the various organization: The primary data collection in this study is questionnaire survey and
interview. The purpose of primary data collection and analysis is to get direct feedback from
the targeted respondents. The questionnaire has answered by personnel like Human resource
managers, contractors, construction workers, and subcontractors. The primary questionnaire
was constructed in the way: Questionnaire for Contractor, Questionnaire for a construction
worker, and Questionnaire for Human resource manager to get the insight of crucial stakeholder
involved. The sampling method chosen for the data collection is the stratified sampling method,
where the population is divided into four subgroups like human resource manager, contractor,
staff, and construction worker. The characteristic for the classification of the stratum is job role.
The non-equal sample size is chosen from each stratum.
Comparative study and recommendation of digital tools to aid the talent management
process in managing the labor shortage: The Discussion is divided into three sections namely
training the laborers – on-site and offsite training effective human resource management
digitalizing the workforce. The effective H.R practices and digital tools to be used, to bridge
the research gap are elaborated. For the effective human resource management section,
comparative analysis of the software used for human resource management and the evaluation
matrix is designed with nine attributes—the attributes of each software founded by web
scraping.
Practical application of digital tools and techniques: For digitalizing of the workforce
section, the case study was discussed and how the application of digital tools and their
implementation is examined to understand the benefits of the tools and technology.
5. DATA ANALYSIS
5.1. Pilot Survey
The pilot survey prioritizes the human resource manager’s initiatives to manage the labor
shortage and skill development in the existing workforce in the Indian construction sector—the
initiatives listed by reviewing the literature review. The pilot survey has circulated to get the
response from 50 people and various personnel like Human resource managers, construction
workers, and contractors from different organizations.
Number of respondent
Contractor
30%
Human resource
Manager
40%
Human resource Manager
Construction worker & staff
Contractor
HR Initiatives Priotisation
20
18
16
14
12
10
8
6
4
2
0
Number of respondents
Staff
19%
Human resouce
Manager
37%
Human resouce Manager
Contractor
Construction worker
Construction worker
19% Staff
Contractor
25%
• 85.7 % of the respondents agreed that construction staffs and employees are not given
proper training in their organization in accordance with the job role, and 32% responded
that training module provided to the construction worker and staffs accredited by the
government of India
• The question posed to the Human resource manager was regarding the benefits attained by
providing training to the construction worker and staff. The critical works observed are
“More productive” “Work awareness,” “Enhanced ethical and professional behavior,”
“Problem and critical thinking,” “Innovative” “Understanding the technicalities,” “Diverse
skill set,” “High profitability,” “Customer satisfaction”, “High self-confident”, “Increase in
quality and safety awareness.”
Trade Testing
Flexi MoUs
0 5 10 15 20 25 30 35 40 45
• It was observed that 72% of the respondent's organizations rely on digital tools for human
resource management and forecast.
• The question was posted to understand the software usage of the organization for human
resource and talent management. The critical words observed are “Oracle”, “SAP”,
“Microsoft Dynamic”, “ADP”, “Open H.R.”, “Suite” and “Bamboo H.R.MS.”
Yes No
Yes
92%
Figure 7 Percentage of the agreement for using the on-site data for resource planning
Count
6. RECOMMENDATION
6.1. Training the Labors – On-site and Offsite Training
To overcome labor shortage and increase labor quality, introducing the vocational skill
development program for both the on-site and offsite is very effective in increasing the multi-
skilled labor and productivity of the labor. Data Analysis shows that 85.7 % of respondents
agree that staff and employees have not been trained in accordance with job role in their
organization, and 80 % of the respondent’s organization do not have their inbuilt or
Construction Industry Development Council (CIDC) accredited training program. The labor
mainly trained for health, safety, and only around 10 % of respondent’s organizations have
training modules streamlined to the job requirement. Training the construction workers for
following the job role will increase the skill and qualification of the workforce.
For choosing the vocational skill development program for the labor, the laborer's skill
assessment will help to figure out the skill needs and creative way of delivering models for each
construction worker. The training shall be provided to the unskilled worker to bring them in
line with industrial requirements and skilled worker to the multi-skilled worker for enhancing
the cost-saving and more diverse set of knowledge among the labor. Based on the type of project
and the skill enhancement program required, the different kinds of training modules like
sponsored modules, PPP models, for-profit models, Industrial captive models, and outsourced
training programs shall be provided to high-order management to solve the top-level skills
shortage. The private bodies shall utilize the government schemes like Craftsmen Training
Scheme (CTS), Capacity Building Scheme, Vocational Training Programme for Women, Pre-
Departure Orientation Training (PDOT), Flexi MoUs, Trade Testing, Apprenticeship Training
under the Apprentices Act, 1961, and Crafts Instructor Training Scheme (CITS) for skill
enhancement of the construction workers.
Bharthskill -E-learning portal developed by the government of India under craftsman
training scheme, providing the free training and instruction training scheme like soil testing,
draughtsman, surveyor, painter, carpentry, interior designing, mason health safety,
environment, alternative energies, architectural draughtsman, and industrial safety
management. The course is available in various Indian languages and the lessons are provided
by the Directorate General of Training (DGT). These online modules have more significant
advantages like schedule flexibility, cost-saving, well-established training program, central
deployment.
After the training, skill evaluation shall be done to evaluate the vocational training program
skills. The rewards and incentives shall be provided to the construction worker based on the
skills attained to empower the construction workers. The National Academy of construction in
Hyderabad has developed a criterion with several indicators to evaluate the skill acquired after
the training program, especially for labor from the urban poor communities (Prof. K.R. Ramana,
2013).
One of the significant challenges in providing the training to many laborers is single party
holding the responsibility to bear the cost required for the training because there is no long-term
relationship between the client and the labor contractor, because of the fragmented nature of
the construction industry and the immobility nature of the construction product.
The digitalization of the workflow and collaboration between the stakeholders will enable the
long-term relationship among the stakeholders so that the cost requirement shall be shared
mutually by understanding the stakeholder’s benefits by providing vocational training to the
construction labor.
The collaborative training will be the initiative to establish a strong linkage between the
stakeholder and the training bodies to serve the collective interest and support mutually. In the
PPP projects, the government can promote collaborative training by enabling their training
provider like the Construction Industry Development Council (CIDIC), the National Academy
of Construction (NAC), and the Industrial Training Institute (ITI) assets to be available to the
private bodies by providing incentives. (Government of India Ministry of skill development &
Entrepreneurship, 2018). The government body should expand their skill development institute
to the rural area with a well-established framework assessment mechanism for increasing the
poor rural communities' economic livelihood.
Adrenalin
H.R.MS
ADP Workforce
ADP Vantage
HCM
Bamboo H.R.
Suit H.R
Source: Author
The second way to manage the construction worker effectively is a proper human resource
plan and forecast. “Human resource planning begins with a forecast of the number and types of
employees needed to achieve the organization’s objectives. Planning also involves job analysis,
which consists of preparing job descriptions and job specifications.” (Lunenburg).
Human resource planning is complex, and various factors affect the Human resource plan
such as macro-environmental factors, micro factors, human resource strategies, internal and
external factors.
Table 4 Factors affecting the resource planning show the factors and the attributes affecting
human resource planning and forecasting.
• Advertisements
• Human resource inventory
• Human resource mobility
External factors • Level of economic development
• International factors
• Business environment
• Government policies
• Level of technology
Internal factors • Type and strategy of the organization
• Environmental uncertainties
• Time horizons
• Type and quality of forecasting
information
• Sufficient lead time to recruit
• Outsourcing
• The human resources planning method
Human resource forecasting software feature evolves to calculate the labor requirement as
per the productivity considering the type of labor accurately. Figure 2 shows the image of the
residential project - labor requirement forecast with two towers (in a total of 72 floors) in
Mumbai. The pricing of construction labor requirements is also represented using the Candy
software.
Figure 9 Resource forecast for the residential project using Candy software
Source: Author
The resource planning and forecast accuracy can be affected by the variable factor-like
economic conditions, labor market (demand & supply). To tackle the external variable factors,
predictive simulation software that predicts the human requirement from previous similar
situations can be used. The construction site database will form the base of predicting the labor
requirement considering the varying external condition. The organization can use the human
resource forecasting software, which has interoperability with the predictive simulation
software, so any change in the resource plan can reflect the simulation software and vice versa.
The data source for the human resource forecast would be from the previous project data or the
live construction site data directly linked to the cloud-based forecasting software.
Project Objective
Effective construction project delivery of the high-rise building, with high client satisfaction
Before introducing digital tools or automation into labor, the following points need to be
addressed to attain the maximum benefits.
• Realign the Human resource policy in accordance with new technology and process.
• Identifying the suitable change management process for introducing the digital tool.
• To avoid the fragmentation of the digital process, the selection of digital tools and
technology should have interoperability and integration of human information with another
organizational process.
Resource Management System (H.R.MS) with the Human Resource Information System. The
HCM includes employee performance, H.R. services, onboarding analytics, onboarding, and
H.R.MS includes time and labor management and payroll processing. The effective selection
of H.R.IS software, customization, and integration capabilities is crucial since the H.R.IS will
affect organization behavior (totah, 2019 ).
The Human resource manager shall decide the functionality required for each module and
the standard of individual point solutions based on its requirement. And it is also crucial that
the software vendor understands the human resource manager requirement and customize it
with the value of a fully integrated software suite and interoperability with other existing
software. The fully integrated software includes certain benefits like access to data seamlessly,
360-degree visibility of information, and greater collaboration among all the stakeholders by
creating a holistic environment.
The CEO can apply the levers to the employee, considering the relationship with others and
their positional level. The individual will change the adoption stage starting from awareness,
second stage - trial, and finally to the adoption stage based on the CEO’s strategies.
Table 5 shows how the sustainable change management environment was achieved and the
timescale of 69 weeks. It took 71 weeks to make all the 20 members bring them into the
adoption stage and organization phase to sustain.
Table 5 Change process and its impact on the staffs along with the timeframe
Timeline How many people are aware Adoption stage of individual
of the change
Week Organizational Phase Awareness Interest Trial Adoption
0 Mobilize 1 1 1 1
1 Mobilize 7 1 1 1
2 Movement 20 3 1 1
3 Movement 20 3 1 1
4 Movement 20 3 1 1
5 Movement 20 11 1 1
6 Movement 20 11 10 1
7 Movement 20 11 10 1
8 Movement 20 11 10 1
9 Movement 20 11 10 1
10 Movement 20 11 10 1
11 Movement 20 11 10 1
12 Movement 20 11 10 1
13 Movement 20 11 10 1
14 Movement 20 20 11 1
15 Movement 20 20 11 1
16 Movement 20 20 11 1
17 Movement 20 20 11 3
18 Movement 20 20 11 3
19 Movement 20 20 11 3
20 Movement 20 20 11 3
21 Movement 20 20 13 5
22 Sustain 20 20 18 11
23 Sustain 20 20 18 11
24 Sustain 20 20 18 11
25 Sustain 20 20 18 11
26 Sustain 20 20 18 11
27 Sustain 20 20 18 11
28 Sustain 20 20 18 11
29 Sustain 20 20 18 11
30 Sustain 20 20 18 11
31 Sustain 20 20 18 11
32 Sustain 20 20 18 11
33 Sustain 20 20 18 11
34 Sustain 20 20 18 11
35 Sustain 20 20 18 11
36 Sustain 20 20 18 11
37 Sustain 20 20 18 11
38 Sustain 20 20 19 13
39 Sustain 20 20 20 13
40 Sustain 20 20 20 13
41 Sustain 20 20 20 15
42 Sustain 20 20 20 15
43 Sustain 20 20 20 15
44 Sustain 20 20 20 15
45 Sustain 20 20 20 15
46 Sustain 20 20 20 15
47 Sustain 20 20 20 15
48 Sustain 20 20 20 15
49 Sustain 20 20 20 15
50 Sustain 20 20 20 15
51 Sustain 20 20 20 15
52 Sustain 20 20 20 15
53 Sustain 20 20 20 15
54 Sustain 20 20 20 15
55 Sustain 20 20 20 15
56 Sustain 20 20 20 15
57 Sustain 20 20 20 15
58 Sustain 20 20 20 16
59 Sustain 20 20 20 16
60 Sustain 20 20 20 16
61 Sustain 20 20 20 16
62 Sustain 20 20 20 16
63 Sustain 20 20 20 18
64 Sustain 20 20 20 18
65 Sustain 20 20 20 18
66 Sustain 20 20 20 18
67 Sustain 20 20 20 18
68 Sustain 20 20 20 18
71 Sustain 20 2 20
Source: Author
Organisation Readiness
20 20 20 20 20 20 20 20 20
18 18
16
15
Targets
13
11 11 11
10
3 3
1 1
0
WEEK 0 2 10 20 30 40 50 60 70 71
Weeks
organizational change brought about by using leadership skills and by effective leadership, the
credibility of the leader has been increased in the organization.
The change management simulation software: power and influence V3 from the Harvard
business school help to understand the following
• Developing a change narrative.
• Relationship between the leadership, power, and relationship among the employees.
• Stakeholder management to plan the change.
• Using the right strategies depending on the stage of adoption among the individuals.
• Increasing the creditability of the leader by successful implication of the change.
• Developing a robust organizational culture and reward system for encouraging the change.
• Managing the change in the agile environment.
• Time impact on the change adoption.
7. CONCLUSION
The Indian construction sector is poised to relieve the economy after the COVID-19, but the
input resources like shortage of skilled labor will be very challenging to match with the demand
during the recovery period. The factor like migrant labor, and health & safety factor has
triggered the demand of the construction worker even more, and the positive impact of the
COVID-19 is that has triggered the decade of digitalization required in the construction sector
within the past year. Digital technologies have strongly influenced the human resource
management practices and the productivity of the construction worker. The Human Resource
shall focus on retaining the labor force with digitalization, which increases productivity,
turnover, collaboration, citizenship, and motivation among the workforce. The study presented
in this research article represents the ideas of retaining the construction worker shortage by
effective talent management with the usage of digital tools & technology. The questionnaires,
literature review and content analysis were carried out, to accomplish the objective of the
research. Based on the response of the survey, we have limited the detailed study and discussion
to certain specific areas of Human Resource Management for managing the skill shortage. In
the future, we have aimed to extend our research to analyze the worker’s behavior aspects by
the psych-diagnostic method.
The summary of recommendations provided in the research work are
• Accessing the free online modules offered by the government of India to attain the benefits
like cost-saving evaluation of the skill attainment through apprenticeship assessment.
• Collaborative training program to overcome the financial risk carried solely by one party
and various circumstances for collaboration between the parties is discussed.
• Comparative analysis of H.R.M software with the human resource process selected as the
attributes for the comparison.
• Usage of on-site life data or historical data of similar projects for the resource forecast to
get accurate estimates and to make fact-based human resource decisions.
• Creating a positive influence in the organization by aligning the human resource practices
with the digital implementation plan.
• Recommendation of strategies to be followed by the human resource manager while
introducing new digital technologies at the organizational level.
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