CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Organizations are social system made up of structures, technology and the

environment. The common denomination among the three is ‘people’ Human being is the
most essential of everything. If one dig deep into any problem or success, we would get
people. The human element is involved in designing, building and operation of organizational
structures. People are involved in the development and use of appropriate technology for
achieving cooperate goals. (Akinpade, 1996)

However, no matter how effective a firm’s machines, tools and equipment’s are, and
no matter how vast the financial and materials resources of an organization may be,
somebody who is the human element have to put them in use. It’s the entrepreneurial spirit
and executive initiative, which can utilise these resources profitably for the organization.
(Barney, 1991)

It will be naive of us therefore; if we pretend that there is no productivity crisis in the

construction firms in Nigeria, but the fact still remains that it is higher in one than the other. It
would even be more dangerous to think that it constitutes no serious threat to the survival and
viability of the organization. In some quarters the reason has been attributed to declining
motivation to work, poor attitude to work, while in some quarters, the reason lie in
employer’s insensibility to worker concern and resultant deteriorating standard of living both
view point are complementary. Employers therefore, must restructure their human resources
programmes with a view of placing higher premium on the development of their quality of
work life.(Ulrich and Lake 1990)

In an organization whose human resources are well managed, well developed and
well compensated, the frequency of employee turnover is usually very low. On the contrary,
the cost of hiring new employees will definitely tell on the company’s financial stand and
integrity. (Lado and Wilson, 1994)

Human resources are considered the most important asset of an organization, but very
few organisations are able to fully harness its potential. (Lado and Wilson, 1994) define a
human resource system as a set of distinct but interrelated activities, functions, and processes

1
that are directed at attracting, developing and maintaining (or disposing of) a firm’s human
resources.

Economic environment is changing rapidly and this change is characterised by such

phenomena as the globalization, changing customer and investor demands ever-increasing
product-market competition. To compete successfully need to improve their performance by
reducing costs. Innovating products and processes and improving quality, productivity and
speed to market.

In view of the above, it is necessary for a growth oriented construction firm to be

more concerned with how to effectively managed its human resources because, it is only the
capacity to plan, cogitates, execute and achieve the organizational results.(Cole 1999)

Parallel to the understanding that, human resources are vital for an organization,
Human Resources Management (HRM) function is to going up in organizational hierarchy.
Human Resources Management (HRM) aim is to ensure that the organization obtains and
retains the skilled, committed and well-motivated workforce it needs. This means taking steps
to asses and satisfied future people their contributions, potential and employability by
providing learning and continuous development opportunities.

Consequently, construction companies especially the indigenous ones must fashion

out a comprehensive means of managing human resources that will enable the human
element to contribute maximally to the organizational growth and survival.( Cole 1999)

1.2 NEED OF THE STUDY

It is observed over the past one or two decades that some companies especially the
construction companies in Nigeria, who were functioning well in the past are folding up
while the foreign construction firms situated in Nigeria operating for almost a century are still
very much in operation and even taking the lead in the same country.

What then is responsible for these? The instability of the workforce, job
dissatisfaction on the part of the worker as well as feeling of insolvency of these construction
firms foreign construction firms are doing fine and the firms also still performing.(Cole 1999)

Therefore, the need to investigate, evaluate and assess the effect of human resources
management (HRM) on the construction firms in Nigeria.

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1.3 AIM OF STUDY

This study aimed at assessing human resources management and its effect on project
performance.

1.4 OBJECTIVE OF THE STUDY

The objective of the study was;

i. To Compare Nigeria based multinational company with indigenous

construction firm of human resources management (HRM).
ii. To assess HRM factors affecting effectiveness of HRM.
iii. To assess HRM factors affecting project performance.
iv. To assess HRM factors affecting management development.

1.5 STATEMENT OF THE PROBLEM

The study sought to investigate Human Resources Management (HRM) and its effect
on project performance.

The problem was tackled by looking at the following statements;

i. Poor performance of project is caused by host of factor.

ii. Poor project performance prevalent among indigenous firms in Nigeria.
iii. There is a relationship between Human Resources (HR) policies and practices
and project performance.
iv. Several factors promote the occurrence of poor project performance in
Nigeria.

1.6 SCOPE OF THE STUDY

Obviously, there are large numbers of construction firms in Nigeria.

Moreover, this study will be limited to some of the construction firms where both
building and civil engineering of significant nature are in progress.

1.7 LIMITATION OF THE STUDY

An important threat to the validity of my findings is the time factor, financial

and the compilation of the sample.

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 1.8 IMPORTANT OF THE STUDY

This study is necessitated by the urge and the need for the research, reader and
organization in general to understand the advantages of implementation of human
resources management on productivity stem that it will serve as tool for achieving
higher organization productivity. The following are the significant of study to the
researcher;

i. To serve as guide to cooperate individuals organization and student alike in

furtherance to their research on the subject matter.
ii. To help government in the determination of how productive is both public and private
sector of the economy.

1.9 DEFINITION OF KEY TERMS

Human Resources Management (HRM):- This is a set of distinct but interrelated

activities, functions, and processes that are directed at attracting, developing and
maintaining (or disposing of) a firm’s human resources. (Beatty, R. W., & Schneier,
C. E.1997)

Project-Oriented Organizations (POO):- This is one in which the project is the

primary a unit for production, innovation, and competition, and where there is no
formal functional coordination across project lines. (Turner and Keegan 2001)

Project:- This is a collaborative enterprise involving research or design that is

carefully planned to achieve a particular plan.( Turner, J.R. 2007)

Performance:- This can be define as the fulfilment of an obligation in a manner that

release that performer from all abilities under the contract. (Huselid, M. A. 1996)

Management:- It can be define as the organization and coordination of the activities

of an enterprise in accordance with certain policies. (Boxall, P., & Purcell, J. 2000)

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 CHARPTER TWO

2.0 LITERATURE REVIEW

2.1 INTRODUCTION

The current study intends to examine human resources management and its effect on project
performance and the extent to which the construction firms has achieved success in its overall
performance.

Recent conceptual work on the resource-based view of the firm (Barney, 1991) support the
notion that Human Resources Management (HRM) may be an important source of
competition advantage, Barney (1991) argued that resources lead to sustainable competitive
advantages when they are valuable, rare, inimitable, and non-substitutable. While technology,
natural resources, and economies of scale can create value, resource-based theory argues that
these sources of value are increasingly available to almost anyone anywhere and they are
easy to copy, especially when compared to complex social systems like human resource
management (Ulrich and lake 1990).

The human capital theory recognizes employee skills, experience, and knowledge as assets
with the potential to generate economic rent (Coff, 1997). However, this theory evaluates
human resources through productivity gains. In recent years, researchers and practitioners
have realized that HRM systems can be used as strategic levers to focus on value creation that
goes beyond traditionally emphasized cost reduction (Becker and Gerhart, 1996). As a result,
several authors (e.g pfeffer, 1994; snell et al. 1996 wright and mcmahan 1992,) have
contended that human resources management may be a better source of core competencies
which can lead to sustainable competitive advantage.

The history of HRM is said to have started in England in early 1800s during the craftsmen
and apprenticeship era, and then further developed with the arrival of the Industrial
Revolution in the late 1800s. In the 19th century, Frederick W. Taylor suggested that a
combination of scientific management and industrial psychology of workers should be
introduced. In this case, it was proposed that workers should be managed not only for the job
and its efficiencies but also for the psychology and maximum well-being of the workers.
Moreover, with the drastic changes in technology, the growth of organizations, the rise of
unions and government’s concern and interventions resulted in the development of personnel

5
departments in the 1920s. At this point, personnel administrators were called ‘welfare
secretaries’ (Ivancevich, 2007). HRM is said to have started from the term ‘Personnel
Management’ (PM). The term ‘PM’ emerges after the Second World War in 1945 as an
approach by personnel practitioners to separate and distinguish themselves from other
managerial functions and make the personnel function into a professional managerial
positions. Traditionally, the function of PM is claimed to ‘hire and fire’ employees in
organizations other than salary payments and training. But there were many criticisms and
concerns of ambiguity expressed about the purpose and role of PM to HRM (Tyson, 1985)
Therefore, the term HRM gradually tended to replace the term PM (Lloyd and Rawlinson,
1992). However, writers argue that the term HRM has no appreciable difference from PM as
they are both concerned with the functions of obtaining, organizing, and motivating human
resources required by organizations. At the same time, writers are defining the terms HRM
and PM in many different ways (Beer and Spector, 1985). The rebranding of the term from
PM to HRM was done due to the evolvement and changes in the world of management and
therefore, a contemporary term would seem appropriate that can encompass new ideas,
concepts and philosophies of human resources (Noon, 1992, Armstrong, 2000). Indeed, some
writers comment that there are ‘little differences’ between PM and HRM and it has been
criticized as pouring ‘old wine into new bottle’ with a different label (Legge, 2005). Whether
HRM is considered to be different than personnel management is a continued debate on both
its meaning and practices (Marchington & Wilkinson, 2002; Legge, 2005).

Strategic Human Resource Management (SHRM) has grown considerably in the last years.
Schuler, Dolan and Jackson (2001) described the evolution of SHRM from personnel
management in terms of a two-phased transformation: first from personnel management to
traditional human resource management (THRM), and then from THRM to SHRM. To
improve performance and create a competitive advantage, a firm’s HR must focus on a new
set of priorities. These new priorities are more strategic oriented and less geared towards
traditional HR functions such as staffing, training, appraisal, and compensation. Strategic
priorities include team-based job designs, flexible workforces, quality improvement practices,
employee empowerment, and incentive-based compensation. SHRM is designed to diagnose
strategic needs and plan talent development, which are required to implement a competitive
strategy and achieve operational goals (Huselid, Jackson and Schuler, 1997).

Kovacs & Gergely (2009) explain human resources management is one of the management
functions, dealing with people as the essential resource of the organization. This function

6
aims at the most efficient usage of employees in order to realise both organization and
individual goals. Nowadays high significance is attributed to human resources management,
since the human factor is the resource that determines the success of an organization.

Dessler G. (2004) describes the various training programs are formulated to provide dual
purposes. Courses like, Team Building, managerial skills, negotiation and conflict resolution
can be fully utilised to improve inter as well as intra personal and communication skills.
Technical training programs not only cover the theoretical aspect of civil, electrical and
mechanical technologies but also how efficiently and effectively companies make use of it at
different sites. Moreover, one of the most serious problems facing HRM and project
performance is the acute shortage of qualified resources. Some of this problem are;
management of fund, funds kept for the proper planning management of the organization is
always converted to their private pocket by top management. As a result of lack of motivation
however, it will not allow a construction firm to use qualified skilled labour. The rate of
labour turnover is decreasing because of lack facilities.

Jackson & Schuler (1990) describes human resource planning have traditionally been used by
organization to ensure the right person is in right job at the right time. Under past condition of
relative environmental certainty and stability, human resource planning focused on the short
term and was dictated largely by line management concerns. Increasing environmental
stability, demographic shift, changes in technology, and heightened international competition
are changing the need for and the nature of human resource planning in leading
organizations. The human resources mean the human that are in the organization. Without
them there cannot be production. So there is need for the organization to manage well its
human resource.

2.2 FUNDAMENTAL OF HUMAN REDSOURCES MANBAGEMENT

Human resource management (HRM) is arguably one of the oldest management concepts. It
provides an organization with competitive edge over its competitors. In essence, it is the
human resources and ranges from hiring new employees to developing them into successful
organization members to managing their separation from the company. Also, HRM is often
used to change altitude and behaviours of employees toward the organization, which could
result in better organization’s performance. Human resource (HR) professionals administer
these programs and can be generalists or specialists. Generalists have some knowledge about

7
 each HR function, while specialists are experts in one particular function such as recruitment,
labour relations or training (Armstrong, 2006).

In order to maximize the effectiveness of human resource management, there should have the
following aligned activities;

i. Strategic human resource management

ii. Job analysis
iii. Recruitment and selection
iv. Training and development
v. Career development
vi. Performance management
vii. Compensation and benefits
viii. Discipline, safety and health.

Moreover, pfeffer (1998) described that HRM activities that promote a sustainable path to
competitiveness should involve the following;

i. Employment security
ii. Selective recruiting
iii. High wages
iv. Team and job redesign
v. Training as skill development
vi. Incentive pay
vii. Employee ownership
viii. Participation and empowerment

2.3 EFFFECT OF HUMAN RESOURCES MANAGEMENT ON

PROJECT PERFORMANCE

HRM practices in construction firms played a huge role in the success of a project. The major
effective use of human resources management (HRM) on project are;

a) To improve the performance of construction companies

b) It’s improved the quality work in construction firm
c) It is also improve cost and time factor.

8
The most important factor affecting the companies performance are;

i. Job evaluation, especially in those companies that have more frequent job assessment,
such as two or more per year.
ii. Strategic human resources management such as the alignment of the pattern of
planned human resource management and activities intends to enable the organization
to achieve its goals.

We also found that human resources planning (e.g. estimation of required workers, time to be
deployed and expected costs of labour) played an important role in the construction
companies under the study.

The main problems faced by the foreign construction firms situated in Nigeria are;

i. Lack of appropriate skill

ii. Unfamiliarity with methods and materials
iii. Language barriers and educational background

2.4 HUMAN RESOURCES MANAGEMENT

The required quantity and quality of human resources is often hard to come by (acquire) as at
when needed unless the need is preceded by long term managing. By its nature, the human
resource is complex, unpredictable and sometimes difficult to change. It may not be available
in the right quantity and quality when needed yet, it is the most vital and critical resource
required for organizational performance.

People significantly affect the success of an organisation and depending on how they are
chosen and acquired, will bring few or many problem to the organization. They (people)
often make either their own or the organization life relatively pleasant or unpleasant. In a
short note, the viability, growth and survival of any organization are tied to the availability of
competent and well-developed people within the organization per time.

Randall (1992) defined human resources planning as that part of the overall organization
planning process by which an organization tries to ensure that it has the right number of
people and the right kind of people at the right time, at the right places performing functions
which are economically useful and which satisfy the needs of the organization and provide
satisfaction for the individual involved.

9
Factors of project performance are;

i. Construct better quality productivity.

ii. Human resource satisfaction.
iii. They are more innovation.
iv. HRM has directly contributed to the growth of the company.

2.5 RATIONALE FOR HUMAN RESOURCES PLANNING

To have the right number and the quality of people requires effective human resources
planning and serious managerial attention and commitment. This is important for the
following reasons;

i. For an organization to achieve a reasonable degree of success, it must neither be

plagued with excess or inadequate manpower.
ii. Effective human resources planning can be useful in stabilizing employment levels
particularly when a firm is faced with variable product demand curve. Stabilization
can;
a. Reduce the firms unemployment compensation liability cost incurred due to
layoffs.
b. Provide more job security to the organization’s employees, and
c. To minimise the cost of overtime during peak periods of demand.
iii. The need to cope with possible future changes competitive forces in both labour
market and technology calls for a realistic and effective human resources planning
while companies who require such a high level of skilled personnel must plan ahead
for the needed manpower.
iv. For organization to grow and survive in the increasingly competitive construction
world, it must possess an optimum stock of talented manpower.
v. Human resources planning helps to minimize or avoid the usual chaotic problem of
management succession created either by the sudden death or resignation of key
executive.
vi. Since an extra-ordinarily long term is required for a worker to achieve full potencails,
it makers it compulsory therefore that human resources planning must be a continuous
exercise.

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2.6 STAFFING PROCESS

(Sherman and chruden, 1997) said that once an organization has realistically
and reliably determined its present and future needs through its human resources
planning process the next step is to embark on the appropriate human resources
management strategy necessary to get the organization properly staffed. One such
strategy is through recruitment and selection.

2.7 THE RECRUITMENT FUNCTION.

Recruitment can be defined as the process of reaching out, searching for and attracting
a large supply of people or a large pool of interested applicant from which the organization
can choose it consider competent or most qualified for the job.

In general, organizations embark on recruitment drive to achieve a number of

objectives. First and foremost there must be a very clear specification and determination of
the organization’s long medium and short-range man power needs. This being quantised in
terms of numbers of people required the type of skills required and by job titles and the level
in the organization for which they are requires.

Besides, it is crucial that recruiter have a comprehensive understanding and awareness

of the objective and goals of coverall man power staffing plans.

Otherwise, the recruitment may be based on flimsy, shaky and unreliable sets of
assumption that could spell disastrous consequences for the organization.

2.8 SOURCE OF RECRUITMENT

Randal (1992) declared that organization often explore all possible sources of getting
potentially qualified candidates of in order to be able to tap the best skilled individuals in the
labour market. According to him, source recruiting new employees are broadly classified into
two; Internal and External Sources respectively.

2.9 INTERNAL SOURCES

When vacancies occur, the normal practice for most firms is to carry out a search
within the company to fill the positions. This could take form promotion or transfer. It may

11
be possible for a potentially suitable or qualified person to be moved to fill up a vacancy in
another department.

Sometimes, it may take the form of lateral transfer in which case an employee on the
same level is move to fill a vacancy that may involve a rise in pay or status in another
department. (Schuler, R.S. and Jackson, S.E, 1997)

ADVANTAGES

1. A company that consistently follows a policy of filling availably job openings

from within is a morale booster for its employee and a motivator for good
performance.
2. When a vacancy is filled by promoting an employee to the higher position, a
succession of promotion is created with result that a promotion to a vacant
position tends to result in successive promotion down the line.
3. When a sensitive position has to be filled, the risk of selecting a wrong people to
fill the vacancy is reduced, as there is simple opportunity for better assessment of
the abilities of the internal applicants than it is the case with external applicants.
4. In some cases, the cost of recruitment is very low. You don’t need newspaper
advertisement neither do you need to engage the service of external recruiting
agency. (Schuler, R.S. and Jackson, S.E, 1997)

2.10 EXTERNAL SOURCES

In the alternative, he also opined that the internal sources of recruitment may not often
produce enough qualify job applicant from where the organization can pick the best. This is
the case with some companies who have large demand for highly skilled professional or as a
result of some technological development, new skill may be required and the need to go
outside the organization to look for people having the right training, experience and education
may become necessary.

Also, the need to avoid stagnation and inbreeding may a good reason for looking
outside the organization for new result e.g. for people who belong to related professional
organizations such as COREN, CORBON, NIOB, NSE, etc.

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 ADVANTAGES

1. External recruitment is usually free of politicking as in the case of internal

sources.
2. By going outside to fill the vacancy, the organization is able to infuse new
blood and new ideas into the organization and be able to identify problems and
prescribe solution from different perfectives.
3. In case of high position reasonably qualified people are usually hired from
outside so that the company does not have to spend so much on training as
would have been the case if people were to be groomed from within. (Schuler,
R.S. and Jackson, S.E, 1997)

DISADVANTAGES

1. There is usually the risk that the newly hired person may not ‘fit’ into the
organization and may therefore constitute a big organization problem.
2. Despite the fact that less training effort are required discussed above,
people hired from outside may require longer period of orientation or
adjustment.
3. Where an organization consistently looks outside to fill a job vacancy
present employees who feel they have been over-looked or over-sighted
may develop serious morale problems.

2.11 EMPLOYEE TRAINING AND DEVELOPMENT

Bench (1980) defined training as an organised procedure by which people learn knowledge
and or skills for a definite purpose, it is a process of equipping the employees particularly the
non-managerial employees with specific skills e.g. technical skills like plumbing, electrical
wiring, repairing e.t.c. that would enable them to improve on their performances and overall
efficiency.

According to Gardner (1973), the objective of job training is to enable an employee to

perform his job in such a way as to meet the standard of output, quality, waste control, safety
and other operational requirements.

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2.12 DEVELOPMENT AND TRAINING OF MAN-POWER FOR
CONSTRUCTION FIRMS

Wahab (1990) observed that there is death of supervisory staff as well as shortages in the
senior level manpower and that Nigeria as a Nation still lacks to propel the construction
industry to self-sufficiency and maximum utilization of the human resources for construction.
He however concluded that this must include incentives for high productivity and
establishment of a centre for advanced studies in construction.

THE RATIONALE FOR EXECUTIVE DEVELOPMENT

According to Rao and Rao (1990), coupled with the fore-going discussion, the rationale for
executive or management development includes the need to:

a. Improve the versatilities of the management team.

b. Keep them current on new developments around them, which may affect his job
performance.
c. Be able to provide maximum productivity from the human resources necessary to
ensure corporate growth.
d. Prevent manpower obsolesce over time through training and development to revitalize
their skills to enable them cope more effectively with the ever increasing complexities
of modern technology.
e. Enhance managements understanding and perception of issues relating economic,
cultural, social, technical and political matters that may be relevant to successful
performance of his job.
f. Identify persons with innate abilities and potentials that may be groomed up for future
higher responsibilities

2.13 COMPENSATION MANAGEMENT OF HUMAN RESOURCES

One of the most important complex and problematic issues in managing human
resources in any organisation is ‘compensation management’ hardly is any issue more
relevant and crucial to any employee, whether junior or senior than his financial
remuneration, it is further disclosed that scarcely has any matter led to strained labour and
management relations or led strike action much more than wages related issues. It is therefore

14
proper to say that compensation management is a matter that is closest to the heart of every
employee and the employer.

Moreover, compensation can further be defined as the total of the financial and other
non-financial rewards that an employee receives in return for his labour and services. It
includes his basic pay and other numerous financial and non-financial benefits and incentives
the totality of which determines how well he lives in the society, it was revealed further that
workers values and expectations have changed remarkably in the past two decades
necessitating the need for management to be more tactful and realistic setting pay levels and
determining various sizes of employee benefits.

According to Coles (1999), successful management of human resources require a

grasp of how to compensate or motivate people and, how to avoid de-motivating them. He
said further that to ensure that motivation is reliable the management should make clear to the
workers what they should expect from the position or assignment and what they should
expect. In his findings, the result shows that recognition brings satisfaction. It is a positive
reward for effort and therefore a powerful motivation.

The survey carried out by Owoh (1993) revealed that in spite of the different classification of
the indigenous construction firms based on their annual turnover and areas of specialty, the
problems encounter were very much similar.

It was observed that the non-familiarity and no perceived benefits of the techniques.
He therefore concluded that there were needs for formal construction education in the
indigenous construction firms.

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 CHAPTER THREE

3.0 RESEARCH METHODOLOGY

3.1 Introduction

This chapter presents the research design, target population, location of study, sample size
and sampling procedure, research instruments and method of data collection on human
resources management (HRM) and its effect on project performance.

3.2 Research Design

The research design used in this study was descriptive survey. Kombrabail (2005) defines
descriptive research as a characteristic process which focuses on answering questions such as
who, what, when, where and how of the subject under investigation.

3.3 Location of the Study

The study was conducted in western part of Nigeria. It consists of project-oriented

companies.

3.4 The Target Population

The target population for this survey study comprised all the indigenous and foreign
construction firms.

3.5 Sampling Method

To make the sample representative. It was divided into three categories: large (over 500
employees), medium (7-499 employees) and small (less than 1-7 employees).

3.6 Data Collection Instruments

This study use both primary and secondary data collection tools. The primary data were
obtained from the field using questionnaires. These were developed in a manner that captured
all the key components of the research and clearly aligned with the objectives of the study.
The secondary data comprised of comprehensive literature review from the various sources
including books, referred print and electronic journals, annual and strategic reports, and
reviews from relevant industry-related newspapers and magazines.

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3.7 Data Collection Procedure

The researcher delivered the questionnaires in person to the respondents in order to increase
the response rate. The respondents were allowed one week to fill the questionnaires and
thereafter the researcher collected them for entry and analysis.

17
 CHAPTER FOUR

RESULTS PRESENTATIONS AND DISCUSSIONS

4.0 INTRODUCTION

The survey results are presented in different sections namely: Demographic information of
respondents, the effects of human resources management on project performance, the effects
of HRM planning on performance in POO operating in Nigeria. The findings are discussed in
the context of the study objectives.

4.1 SAMPLE SIZE

A total of 50 questionnaires were distributed to HRMs and project managers in both foreign
and indigenous construction firms. Of these 35 questionnaires were successfully completed
and returned by respondents.

4.2 GENERAL INFORMATION

These Demographic Profiles provides valuable comparative attributes within the

organization. On operation and experience the data suggests that employee turn-over is
moderate since majority (22.9%) had an experience of 6-10 years within the same
organization.

Demographic information, year of experience, year of operation, and foreign construction

firm and indigenous construction firm

Table 4.2.1; Frequency Table

Is your company a foreign or indigenous firm?
Frequency Percent Valid Percent Cumulative Percent

Valid Yes 26 74.3 74.3 74.3

No 9 25.7 25.7 100.0

Total 35 100.0 100.0

Therefore, Table 4.2.1 shows that, the Yes were 26 (74.3%) while the No were 9 (25.7%).

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Table 4.2.2; For how long has your company been in operation?
Frequency Percent Valid Percent Cumulative Percent

Valid 1-5yrs 5 14.3 14.3 14.3

6-10yrs 8 22.9 22.9 37.1

11-15yrs 10 28.6 28.6 65.7

16-20yrs 12 34.3 34.3 100.0

Total 35 100.0 100.0

Table 4.2.2 shows the distribution of respondents by year of operation. Of the 35 respondents,
5 (14.3%) were of the respondents were below 1-5 years, 8 (22.9%) of the respondents were
between 6-10 years, 10 (28.6%) of the respondents were between 11-15 years and 12 (34.3%)
of the respondents were between 16-20 years.

Table 4.2.3
Your education qualification is?

Cumulative
Frequency Percent Valid Percent Percent

Valid ND 4 11.4 11.4 11.4

HND 16 45.7 45.7 57.1

BSC 7 20.0 20.0 77.1

MSC 8 22.9 22.9 100.0

Total 35 100.0 100.0

Figure 4.2.3 The distribution by education level shows that most respondents (54.3%) had a
bachelor degree, closely followed by masters‟ degree holders (45.7%).

19
Table 4.2.4; What is your professional qualification?
Frequency Percent Valid Percent Cumulative Percent

Valid NIOB 15 42.9 42.9 42.9

NIQS 8 22.9 22.9 65.7

CORBON 5 14.3 14.3 80.0

COREN 7 20.0 20.0 100.0

Total 35 100.0 100.0

Table 4.2.4: The distribution by level of professional qualification shows that most
respondents were 15 (42.9%) had a NIOB, followed by NIQS 8 (22.1%), COREN were 7
(20.0%) and CORBON were only 5 (14.3%).

Table 4.2.5;

What is your year of experience in the construction industry?

Frequency Percent Valid Percent Cumulative Percent

Valid 1-5yrs 7 20.0 20.0 20.0

6-10yrs 11 31.4 31.4 51.4

11-15yrs 9 25.7 25.7 77.1

over 20yrs 8 22.9 22.9 100.0

Total 35 100.0 100.0

Table 4.2.5; the minority (34.3%) of the respondents were above ten years that had worked
for their organizations for a period ranging from 11-15 years while 65.7% had worked for
less than 6-10 years suggesting high recruitment rate occasioned by high staff turnover. Table
4.5.4 also shows that, the majority (65.7%) of the respondents were within ten years
experienced.

Objective One: To determine factors affecting the foreign construction firms situated in
Nigeria

The respondents were asked about their opinions, to indicate the extent to which they agreed
or disagreed with statements concerning certain factors affecting the foreign construction
firms situated in Nigeria. The points ranged from 1 for strongly disagree to 5 for strongly
agree.

Figure 4.3 to 4.3.2 Provide data obtained from the field survey which was used to tackle
objective One

20
Table 4.3; Unfamiliarity with methods and materials

Frequency Percent Valid Percent Cumulative Percent

Valid SD 3 8.6 8.6 8.6

D 5 14.3 14.3 22.9

A 12 34.3 34.3 57.1

SA 15 42.9 42.9 100.0

Total 35 100.0 100.0

Table 4.3 shows that, the majority of the respondent were strongly agreed 15 (42.9%) with
the factors affecting the foreign construction firm situated in Nigeria 42.9%. followed by
agrees (34.3%)

Table 4.3.1 Language barriers

Frequency Percent Valid Percent Cumulative Percent

Valid SD 4 11.4 11.4 11.4

D 6 17.1 17.1 28.6

A 14 40.0 40.0 68.6

SA 10 28.6 28.6 97.1

44.00 1 2.9 2.9 100.0

Total 35 100.0 100.0

Table 4.3.1 shows that, the majority of the respondents were agreed 14 (40.0%)
with the factors affecting the foreign construction firm situated in Nigeria 42.9%.
followed by strongly agrees 10 (28.6%), disagreed 6 (17.1%) and strongly
disagreed 4 (11.4%).

Table 4.3.2; Lack of appropriate skill

Frequency Percent Valid Percent Cumulative Percent

Valid SD 3 8.6 8.6 8.6

D 10 28.6 28.6 37.1

A 14 40.0 40.0 77.1

SA 8 22.9 22.9 100.0

Total 35 100.0 100.0

21
Table 4.3.2 shows that, the majority of the respondents were agreed 14 (40.0%) with the
factors affecting the foreign construction firm situated in Nigeria 40.0%. followed by
‘disagreed’ 10 (28.6%), strongly agreed 8 (22.9%) and strongly disagreed 3 (8.6%).
The respondents were asked about their opinions, to indicate the extent to which they agreed
or disagreed with statements factors that maximize the effectiveness of HRM issues in their
organizations. The points ranged from 1 for strongly disagree to 5 for strongly agree.

Objective Two: To determine HRM factors maximizing the effectiveness of human

resource management

Table 4.4; Recruitment and selection

Frequency Percent Valid Percent Cumulative Percent

Valid SD 4 11.4 11.4 11.4

D 9 25.7 25.7 37.1

A 9 25.7 25.7 62.9

SA 13 37.1 37.1 100.0

Total 35 100.0 100.0

Table 4.4 shows that, the majority of the respondents were strongly agreed 13 (37.1%),
followed by ‘disagreed’ 9 (25.7%), agreed also 9 (22.7%) and strongly disagreed 4 (11.4%).
Table 4.4.1; Strategic human resources management
Frequency Percent Valid Percent Cumulative Percent

Valid SD 2 5.7 5.7 5.7

D 12 34.3 34.3 40.0

A 8 22.9 22.9 62.9

SA 13 37.1 37.1 100.0

Total 35 100.0 100.0

Table 4.4.1 shows that, the majority of the respondents were strongly agreed 13 (37.1%),
followed by ‘disagreed’ 12 (34.3%), agreed were 8 (22.9%) and strongly disagreed were 2
(5.7%).

22
Table 4.4.2; Compensation and benefits
Frequency Percent Valid Percent Cumulative Percent

Valid SD 5 14.3 14.3 14.3

D 10 28.6 28.6 42.9

A 9 25.7 25.7 68.6

SA 11 31.4 31.4 100.0

Total 35 100.0 100.0

Table 4.4.2 shows that, the majority of the respondents were strongly agreed 11 (31.4%),
followed by ‘disagreed’ 10 (28.6%), agreed were 9 (25.7%) and strongly disagreed were 5
(14.3%).

Table 4.4.3; Job analysis

Frequency Percent Valid Percent Cumulative Percent

Valid SD 3 8.6 8.6 8.6

D 5 14.3 14.3 22.9

A 12 34.3 34.3 57.1

SA 15 42.9 42.9 100.0

Total 35 100.0 100.0

Table 4.4.3 shows that, Of these 35 questionnaires were successfully completed and returned
by respondents, the majority of the respondents were strongly agreed 15 (42.9%), followed
by ‘agreed’ 12 (34.3%), disagreed were 5 (14.3%) and strongly disagreed were 3 (8.6%)

Objective Three; To determine HRM Factors to be considered for management

development

The regression of the management development indicator factors on the project‟

performance. Results reveal a positive relationship, the overall management factors and the
performance of the firm, and thus, confirming the different past research findings, for
example, those by Huselid (1995 and Youndt et al. (1996) which indicated that a relationship
exists between management development and organizational performance. Furthermore,
Gardner et al. (2001) and Purcell and Hutchinson (2007) argue that it is the style of

23
management that transforms indented HR practices to actual HR practices that eventually
impacts on project performance.

The respondents were asked about their opinions, to indicate the extent to which they agreed
or disagreed with statements concerning certain management issues in their organizations.
The points ranged from 1 for strongly disagree to 5 for strongly agree.

Table 4.5 Improve the versatile of the management team

Frequency Percent Valid Percent Cumulative Percent

Valid SD 6 17.1 17.1 17.1

D 3 8.6 8.6 25.7

A 16 45.7 45.7 71.4

SA 10 28.6 28.6 100.0

Total 35 100.0 100.0

Table 4.5 above shows that, the majority of the respondents were agreed 16 (45.7%),
followed by ‘strongly agreed’ 10 (28.6%), disagreed were 3 (8.6%) and strongly disagreed
were6 (17.1%)

Table 4.5.1 Provide maximum productivity

Frequency Percent Valid Percent Cumulative Percent

Valid SD 3 8.6 8.6 8.6

D 10 28.6 28.6 37.1

A 13 37.1 37.1 74.3

SA 9 25.7 25.7 100.0

Total 35 100.0 100.0

Gardner et al. (2001) and Purcell and Hutchinson (2007) argue that it is the style of
management that transforms indented HR practices to actual HR practices that eventually
impacts on organizational performance. Additionally, Purcell et al. (2003) and Purcell et al.
(2004) add that it is the culture of the organization and the management style in general (but
especially of the immediate line managers and team leaders) that moderates the precise
effects of the HRM practices.

24
Table 4.5.2; Enhance management understanding
Frequency Percent Valid Percent Cumulative Percent

Valid SD 5 14.3 14.3 14.3

D 9 25.7 25.7 40.0

A 11 31.4 31.4 71.4

SA 10 28.6 28.6 100.0

Total 35 100.0 100.0

Table 4.5.2 shows that, the number of the respondents were strongly agreed 10 (28.6%),
followed by ‘agreed’ 11 (31.4%), disagreed were 9 (25.7%) and strongly disagreed were 5
(14.3%).

Table 4.5.3; Current on new development

Frequency Percent Valid Percent Cumulative Percent

Valid SD 3 8.6 8.6 8.6

D 10 28.6 28.6 37.1

A 13 37.1 37.1 74.3

SA 9 25.7 25.7 100.0

Total 35 100.0 100.0

The table 4.7 shows that, the majority of the respondents were agreed 13 (37.1%), followed
by ‘disagreed’ 10 (28.6%), strongly agreed were 9 (25.7%) and strongly disagreed were 5
(14.3%).
Objective Four; To determine HRM Factors affecting project performance

Table 4.6 Human resource satisfaction

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 Frequency Percent Valid Percent Cumulative Percent

Valid SD 9 25.7 25.7 25.7

D 4 11.4 11.4 37.1

A 9 25.7 25.7 62.9

SA 13 37.1 37.1 100.0

Total 35 100.0 100.0

Table 4.6 shows that, the majority of the respondents were strongly agreed 13 (37.1%), the
agreed and strongly dis agreed were in the same frequency 9 (25.7%), disagreed were 4
(11.4%).
Table 4.6.1; Construct better quality work
Frequency Percent Valid Percent Cumulative Percent

Valid SD 3 8.6 8.6 8.6

D 5 14.3 14.3 22.9

A 12 34.3 34.3 57.1

SA 15 42.9 42.9 100.0

Total 35 100.0 100.0

Table 4.6.1 shows that, the majority of the respondents were strongly agreed 15 (42.9%),
followed by ‘agreed’ 12 (34.3%), strongly disagreed were 3 (8.6%) and disagreed were 5
(14.3%).
Table 4.6.2; They are more innovative
Frequency Percent Valid Percent Cumulative Percent

Valid SD 6 17.1 17.1 17.1

D 4 11.4 11.4 28.6

A 15 42.9 42.9 71.4

SA 10 28.6 28.6 100.0

Total 35 100.0 100.0

Table 4.6.2 shows that, the majority of the respondents were agreed 15 (42.9%), followed by
‘strongly agreed’ 10 (28.6%), strongly disagreed were 6 (17.1%) and disagreed were 4
(11.4%).

26
Table 4.6.3; High wages
Frequency Percent Valid Percent Cumulative Percent

Valid SD 2 5.7 5.7 5.7

D 3 8.6 8.6 14.3

A 15 42.9 42.9 57.1

SA 15 42.9 42.9 100.0

Total 35 100.0 100.0

Table 4.6.3 shows that, the majority of the respondents agreed and strongly agreed in the
same frequency 15 (42.9%), followed by disagreed were 3 (8.6%) and strongly disagreed
were 2 (5.7%).

Table 4.6.4; Training as skill development

Frequency Percent Valid Percent Cumulative Percent

Valid SD 5 14.3 14.3 14.3

D 7 20.0 20.0 34.3

A 13 37.1 37.1 71.4

SA 10 28.6 28.6 100.0

Total 35 100.0 100.0

The table 4.6.4 above shows that, the majority of the respondents were agreed 13
(37.1%), followed by ‘strongly agreed’ 10 (28.6%), disagreed were 7 (20.0%)
and strongly disagreed were 5 (14.3%).
Table 4.6.5; Employment security
Frequency Percent Valid Percent Cumulative Percent

Valid SD 6 17.1 17.1 17.1

D 9 25.7 25.7 42.9

A 13 37.1 37.1 80.0

SA 7 20.0 20.0 100.0

Total 35 100.0 100.0

27
Table 4.6.4; Training as skill development
Frequency Percent Valid Percent Cumulative Percent

Valid SD 5 14.3 14.3 14.3

D 7 20.0 20.0 34.3

A 13 37.1 37.1 71.4

SA 10 28.6 28.6 100.0

Table 4.6 to 4.6.5 shows the effects of HR Planning on Project Performance

Table 4.9 gives results of respondents on scale of 1-5 (Where is 1= strongly
disagree; 2=disagree; 3=neutral; 4=agree; 5=strongly agree) which indicates their
opinions on the different degrees of importance of the factors of planning. These
responses were then collapsed and a composite index (mean score) computed for
each planning factor to show the direction of their opinions. On average the
results shows that respondents “agreed” to the selected six statements on
planning (see Table 4.6). The study also established that organizational
performance is closely related to HR planning (Table 4.6.1). According to
Werner and DeSimone (2006), human resource planning helps companies predict
how changes in their strategy will affect their HR needs. Planning the workforce
needs of any organization is very critical and important especially in the rapid
changes in external source. A company can achieve a competitive advantage and
reach its goals by adopting an efficient usage of its HRM.
Table 4.6.6; Job evaluation
Frequency Percent Valid Percent Cumulative Percent

Valid SD 2 5.7 5.7 5.7

D 2 5.7 5.7 11.4

A 15 42.9 42.9 54.3

SA 16 45.7 45.7 100.0

Total 35 100.0 100.0

Table 4.6.6 above shows that, the majority of the respondents were strongly agreed 16
(45.7%), followed by ‘agreed’ 15 (42.9%), strongly disagreed and disagreed were in the same
frequency 2 (5.7%).

28
Table 4.6.7; Strategic human resource management
Frequency Percent Valid Percent Cumulative Percent

Valid SD 3 8.6 8.6 8.6

D 6 17.1 17.1 25.7

A 14 40.0 40.0 65.7

SA 12 34.3 34.3 100.0

Total 35 100.0 100.0

Table 4.6.7 shows that, the majority of the respondents were agreed 14 (40.0%), followed by
‘strongly agreed’ 12 (34.3%), strongly disagreed were 3 (8.6%) and disagreed were 6
(17.1%).
4.7 Project Performance

To measure organization performance respondents were asked to rate (on 1-5 likert scale,
where 1= strongly disagree; 2=disagree; 3=agree; 4=strongly agree) their perception on
various development indicators about their organization’s performance over the past two
years compared to others in their industry.

DISCUSSIONS

The results are shown in table 4.6-4.12. On average the respondents “agreed” that they have
realized positive growth in most of the sectors of their operations. The most important finding
is that almost all respondents “strongly agreed” that effective of HRM has directly
contributed to the growth of the project performance. These findings are in line with those of
Purcell and Kinnie (2007) who used human resources perception to assess project
performance then compared the findings with those obtained from multinational company.
The two results compared very well thus indicating that people’s perception can be used to
assess project performance.

Cross tabulation was done to determine whether there was a significant difference between
foreign and HRMs. On average, the respondents “agreed” that there has been a positive
growth on indicator factors of project performance while HRMs “strongly agreed” to these
factors. There was also a greater variation in responses as indicated by variance analysis.

29
 CHAPTER FIVE

5.0 CONCLUSION AND RECOMMENDATIONS

Summary

This chapter gives the summary of the findings based on the study objectives which were “To
assess HRM factor affecting effectiveness of HRM, assess HRM factors affecting
management development, and assess HRM factors affecting project performance of
organizations within Nigeria”. This is followed by the recommendations and suggestions for
further research.

5.1 Conclusion

This study employed the three broad HRM domains of technical expertise to perform
(resourcing and development), and HRM planning to perform (job design and resource
utilization) to predict performance in POO. The results of the study revealed that HRM
practices influence performance, however, are moderated by managerial style (degree of
decentralization), and organizational culture. The other issue that came out in this study is
staff turnover demonstrated by a fairly high number of staff who has served the organization
for barely 3 years in the management level. This may have impact on project implementation
and success, thereby affect overall organizational performance. Many large, established
companies employs fairly standard practices for the traditional processes, within guidelines
set by the central HR department the above view by recommending that project manager be
appointed from within the business unit most affected by the project.

The study concluded that;

 Human resources management (HRM) practices does have an impact on project

performance.
 It is well established that effective HRM practices will improve HRM project
performance.
 The human resources management HRM should be concern about welfare-
compensation and other incentives.

30
  The adequate provision facilities such as Medical and transportation facilities for the
HRM will improve project performance

5.2 Recommendations

It is true that, in the project-oriented organization, there are additional processes in HR

management, as well as traditional processes which need to be applied differently. Current
practice is quite the opposite, with many project managers not paying much attention to it.
Against this background, this study proposes that the role of the HR department needs to be
different from the classically-managed organization.

1. To deal with the different application of traditional HRM processes, the HR

department needs to ensure that salaries of workers in the construction firms ought to be
increased to better their standard of living in order to improve project performance.

2. They also need to develop policies, standards, rules, and guidelines to deal with the
additional HRM processes required by those parts.

3. It should also be appreciated that without proper HR policies, standards, rules, and
guidelines to deal with the additional roles, organizations may not realize their objectives.

4. Management should be concerned about the welfare of the workers and their families
especially in the indigenous construction firm in Nigeria.

Therefore, organizations must embrace the culture and practices that leads to good
performance. They must learn from the past experiences and enhance the management style
that enhances the flexibility required to develop practices for project performance.

5.3 Suggestions for Further Research

The relationship between Nigeria based multinational company vs indigenous company and
HRM practices is dynamic and need to be reviewed constantly. However, from the empirical
standpoint, the causality effect of HRM on project performance is not clear since large
companies with good performance usually adapt HR practices of long-term perspective.
Thus, the crucial question to ask is whether it is people who cause higher performance, or it is
high-performing firms that afford good people management which calls for deeper
investigation to establish. And again, there is need to investigate how exactly HRM practices

31
impact on project performance in the Nigeria context, whether its effects is mediated through
other employees’ factors.

REFERENCES

Akinpade J.O (1996) ‘’Postulate of management’s impact on construction worker’s

productivity’’ Journal of the NIQS vol. 27
Armstrong, M. and Baron, A. (2006). Strategic HRM: the route to improved business
performance, CIPD, London.
Barney J. B., Wright, P.M. (2002). On becoming a strategic partner: The role of human
resources in gaining competitive advantage. Human Resource Management
Beatty, R. W., & Schneier, C. E. (1997). "New HR roles to impact organizational
performance: From 'partners' to 'players'." Human Resource Management,
Vol. 36
Boxall, P., & Purcell, J. (2000): "Strategic human resource management: where have we
come from and where should we be going?" International Journal of
Management Reviews, Vol. 2, No. 2
Cole E.J (1999) ‘’project organisation & people’’ The Journal of the NIQS vol. 26
Delaney, J. T., & Huselid, M. A. (1996). The impact of human resource management
practices on perceptions of organizational performance, Academy of
Management Journal
Guest, D. (1997). Human resource management and performance: A review and research
agenda. International Journal of Human Resource Management
Randall S. Schuler (1981) ‘’Personnel and Human Resources Management’’ West
publishing Co. St. Paul
Schuler, R.S. and Jackson, S.E. (1997). Human Resource Management: Positioning for the

21st Century, Minneapolis: West Publishing.

Turner, J.R, Huemann, M. and Keegan, A.E. (2007). “Human resource management in the

project-oriented company: an underexplored topic”, in Proceedings of

EURAM 2006

32
APPENDIX I: LIST OF ABBREVIATIONS

CORBON: Council of Registered Engineers of Nigeria

COREN: Council of Registered Builder of Nigeria

NIOB: Nigerian Institute of Building

NIQS: Nigerian Institute of Quantity Surveyors

NIM: Nigerian Institute of Management.

33
 THE FEDERAL POLYTECHNIC, ADO-EKITI, EKITI STATE

SCHOOL OF ENVIRONMENTAL STUDIES

DEPARTMENT OF BUILDING TECHNOLOGY

APPENDIX II: QUESTIONNAIRE DESIGN

Dear Sir/Ma,

I am a final year student (HND) of building technology in the above

named institution. This questionnaire is meant for a research project topic
‘HUMAN RESOURCES MANAGEMENT AND ITS EFFECT ON
PROJECT PERFORMANCE’. It will be appreciated, if you could take time
off your busy schedule to help in filling the questionnaire.

I hereby solicit for your help and I would be glad if my request is granted.

Thanks for your cooperation.

Yours faithfully,

OJO ABIODUN RUFUS

GENERAL INFORMATION (SECTION A)

Please fill in or tick as appropriate. Like this 

1. Name of your
company…………………………………………………………………
2. Company’s
Address…………………………………………………………………….
3. Is your company a foreign or indigenous construction firm?
Yes No

34
4. For how long has your company been in operation? 1-5yrs
6-10yrs 11-15yrs 16-20yrs 21-25yrs
over 30yrs
5. Your educational qualification is?
ND HND BSC MSC
PGD PHD Others, please
specify…………………………….
6. What is your designation/rank in the Organization?
…………………………………
7. What is your professional qualification? NOIB NIQS
CORBON COREN NIM
8. How many capital project has your firm undertaken?
Since, its inception………………………………………
Since, you have joined the company…………………………………..
9. What is your year of experience in the construction industry? 1-5yrs
6-10yrs 11-15yrs over 20yrs

(SECTION B)
Please filling in or tick appropriate.
10.How would these factors affect the foreign construction firms situated in
Nigeria by using 4 for strongly agree, 3 for agree, 2 for disagree and 1 for
strongly disagree.

SA A D SD
4 3 2 1
a. Unfamiliarity with methods and materials
b. Language barriers
c. Lack of appropriate skill

11.How would you rate these suggested factors maximize the effectiveness
of human resource management (HRM)

SA A D SD
4 3 2 1
a Recruitment and selection
b Strategic human resource management
c Job analysis
d Compensation and benefits

35
12.How will you considered these factors as the rationale for executive or
management development by using 4 for strongly agree, 3 for agree, 2 for
disagree and 1 for strongly disagree.

SA A D SD
4 3 2 1
a Improve the versatile of the management team
b Provide maximum productivity
c Enhance managements understanding
d Current on new development

13.How would you rate these factors affect the project performance by using
4 for strongly agree, 3 for agree, 2 for disagree and 1 for strongly
disagree.

SA A D SD
4 3 2 1
a Human resource satisfaction
b Construct better quality work
c They are more innovative
d High wages
e Training as skill development
f Employment security
g Job evaluation
h Strategic human resource management

36