Addis College

Faculty of Technology
MSc in Construction Technology & Management

People & Organization in Construction

3. Human resource Management in Organization

 Resource Management
 Project Resource Management:

► The processes to identify, acquire, and manage the resources needed for the successful

completion of the project.

► Right resources will be available to the project manager and project team at the right time and

place.

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 Resource Management
 Resources should be carefully managed if the project is to reach its goals.

 The f/f factors should be taken into account when mobilizing, utilizing, and demobilizing

resources:
► Resource types
► Project location
► Project size and type

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 Resource Management
Resource Types
 Resources can be classified in many ways.

 Most common resources used for construction projects:

► Human resources.
 The team managing the project
 The team actually performing the construction itself.
► Machinery.
 The machines that are used in replacement of direct human work to perform construction
activities.
 E.g., cranes, bulldozers, and trucks.
 Machinery is also called equipment. 4
 Resource Management
Resource Types
 Most common resources used for construction projects:

► Tools.
 Elements that are used by human resources in order to enhance their capability to directly
perform construction activities.
 E.g., shovels and hammers.
► Permanent equipment.
 Equipment that is installed as part of the facility being built and that is managed by tag
number.
 E.g., pumps, HVAC equipment, compressors, boilers, and electric panels.

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 Resource Management
Resource Types
 Most common resources used for construction projects:
► Bulk materials.

 Materials that are installed as part of the facility being built.

 Because of the use of these materials in different parts of the facility, they are controlled in
bulk quantities such as meters (feet) or kilograms (pounds).
 E.g., electric cables, steel pipes, and floor tiles.
► Consumption materials.
 Materials that are applied in construction activities and processes that are consumed as
part of the construction work in large quantities.
 E.g., welding electrodes, industrial gases, dust masks, nails, bolts, rivets, and fuel.

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 Resource Management
Resource Types
 Most common resources used for construction projects:

► Consumption resources.
 Electric energy and water are applied in construction activities and
processes in a similar way as consumption materials but are
differentiated because they are managed in a different way.
► Temporary facilities.
 Site camp, warehouses, machinery maintenance shops, and other
temporary structures built for accommodating the project team and
other resources, as well as all the equipment necessary for their
functioning, such as furniture and software.
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 Resource Management

Project Location

 The location is almost always unique to the project

 It may differ from the home location of many of the management team - usually in the

temporary environment of a construction site.

 This situation means dealing with resource providers that are new to the performing

organization,

► Which may require a greater level of formality and bureaucracy in resource management.

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 Resource Management
Project Size and Type
 Depending on the size of the project, hundreds or even thousands of human resources may be

employed.
 In such large teams, it is not possible to rely solely on the interpersonal skills of the project

manager for leadership, communication, negotiation, and conflict resolution.

► Interpersonal skills are required at all layers of the project hierarchy and of every
stakeholder's human resources working on the project.

 The type of facility being built may require resources from multiple origins.

 This adds complexity to the logistics of activities

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 Resource Management Planning

► Processes for resources receiving, handling, stocking, preserving, and delivering to the point

of application, along with responsibilities and authorizations for requesting resources.

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 Resource Management Executing
 Important points to consider when managing resources during the execution of a project:

► General resources
► Human resource

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 Resource Management Executing

Human Resource – Staffing

 Although the staffing process is the same for both the labor and managerial forces,

► The tools and techniques that are effective for each may be different.

 For example, networking is an important tool for staffing the management team.

 Construction projects usually require certain types of people with specific characteristics

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 Resource Management Executing
Human Resource – Team Building
 Construction projects usually bring together different stakeholders working in conjunction to

reach a common result.

 The various stages of construction activities require the mobilization of crews with different

skills, so the team-building effort is always at a start.

 Team development strategies for the labor workforce should use different techniques from

those applied to the managerial workforce.

 Offer incentive programs such as

► Awards based on crew performance in terms of safety, productivity, and other factors.

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 Resource Management Executing
Human Resource – Team Building
 Incentive programs…

► A barbeque lunch for the labor and managerial workers on a job site, may be effective for team
building.
 These events may include subcontractors and some form of celebration or recognition,
especially around completion of key milestones or deliverables.

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 Resource Management Executing
Human Resource – Interpersonal Skills
 Interpersonal skills are an important tool for managing project teams.

 In construction projects, the project team can be very diverse in terms of;

► Culture,
► knowledge,
► education, and
► other aspects, which makes interpersonal skills even more important, not only for the PM, but
also for the entire team.

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 Resource Management Control
 Productivity and consumption rates estimate;
► How much a given resource can produce in a given time, or
► How much of a resource is consumed to produce a unit of a given deliverable.
For example,
► The productivity of a bulldozer can be measured in cubic meters per hour of earth moved,
► The consumption of welding electrodes can be measured in kilograms of electrode per inches of
weld performed.

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 Resource Management Control
 Productivity of labor can be measured in terms of labor hours per unit.

 Productivity and consumption rates are widely used as a basis for;

► Estimating resource usage,

► Leading to activity resource requirements, and
► Activity cost estimates.

 Controlling productivity during the execution of the project is usually a key factor

for performing the project within the time and cost baselines.

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 Resource Management Control
 Productivity control is performed by;

► Measuring executed quantities in work packages and

► Then measuring and relating workforce, machinery, and materials usage to those work
packages.

 For the productivity control process to actually work,

► Construction strategy should be accurately translated into a matching set of work breakdown
structure, cost breakdown structure, and time schedule.

 The success of the productivity control process is established during planning.

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 Resource Management practice
Trends and Emerging Practices
 Resource management methods.

► Due to the scarce nature of critical resources, in some industries, several trends have become
popular in the past several years.
 Lean management,
 Just-In-Time (JIT) manufacturing,
 Kaizen,
 Total Productive Maintenance (TPM),
 Theory of Constraints (TOC), and other methods.

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 Resource Management practice
Trends and Emerging Practices
 Self-organizing teams.

► The increase in using agile approaches mainly for the execution of IT projects has given rise to
the self-organizing team.
► Successful self-organizing teams usually consist of generalized specialists, instead of subject
matter experts, who continuously adapt to the changing environment and embrace constructive
feedback.

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 Human resources management Process

 For many years, the role of personnel administration was very much a
procedural of staff matters such as leave, pensions, and salary

 Generally there are 10 knowledge area and 5 process group to manage

organization
 10 knowledge are
 Integration management
 Scope management
 Schedule management
 Cost management
 Quality management
 Human Resource management
 Communications management
 Risk management
 Procurement management
 Stakeholders management
 5 process group

 Initiation process group

 Planning process group

 Execution process group

 Monitoring and controlling process group

 Closing process group

 1. Human Resource Planning (HRP)
 HR Planning is more than just having the “right people in the right
place at the right time”.
 HR Planning in its simplest form is about answering three questions:
 what are our business needs,
 how/what do we need to meet those needs and
 what strategies should we take to ensure our needs are met?
 Major Objectives of HRP
 Preventing understaffing and overstaffing
 Ensure the organization has the right employees with the right skills at the
right place at the right time
 Ensure the organization is responsive to cope with its environment
 Types of Planning
 Aggregate Planning
– Anticipating the needs of groups of employees in specific for lower-level
jobs and the general skills employees will need to ensure sustained high
performance.
 Succession Planning

– Focuses on ensuring that key individual management position in the

organization remain filled with individuals who provide the best fit for
these critical positions.
 HRP and Environmental Scanning
 The systematic monitoring of the major external forces
influencing the organization.
• Economic factors
• Competitive trends
• Technological changes
• Political and legislative issues
• Social concerns
• Demographic trends
 Scanning the Internal Environment
 Cultural Audits
– Audits of the culture and quality of work life in an organization.
• How do employees spend their time?
• How do they interact with each other?
• Are employees empowered?
• What is the predominant leadership style of managers?
 Benchmarking
– The process of comparing the organization’s processes and
practices with those of other companies.
Forecasting Demand for Employees
Quantitative Approach:

Trend Analysis

Markov analysis
 Qualitative Approaches to Demand Forecasting
Management Forecasts
– The opinions (judgments) of supervisors, department managers,
experts, or others knowledgeable about the organization’s
future employment needs.
Delphi Technique
– An attempt to decrease the subjectivity of forecasts by soliciting
and summarizing the judgments of a preselected group of
individuals.
– The final forecast represents a composite group judgment.
Forecasting Supply of Employees: Internal Labor Supply

 Staffing Tables
 Markov Analysis
 Skill Inventories
 Replacement Charts
 Succession Planning
 Forecasting Internal Labor Supply

 Staffing Tables

– Graphic representations of all organizational jobs, along with

the numbers of employees currently occupying those jobs

and future (monthly or yearly) employment requirements.

 Internal Supply Forecasting Tools
 Skill Inventories
– Files of personnel education, experience, interests, skills, etc.,
that allow managers to quickly match job openings with
employee backgrounds.
 Replacement Charts
– Listings of current jobholders and persons who are potential
replacements if an opening occurs.
 Forecasting Supply of Employees: External Labor Supply

 Factors Influencing the External Labor Supply:

– Demographic changes in the population

– National and regional economics

– Education level of the workforce

– Demand for specific employee skills

– Population mobility

– Governmental policies
 HRP Considerations

 HRP is a forward looking function and an organizational tool which identify skill and
competency gaps.
 HRP ensures benefits to the organizations by creating a reservoir of talent, preparing
people for future cost cutting and succession planning besides creating a back –up in
case of diversification and expansion.

Balancing the gap

between supply and demand
 HRP Considerations
Optimum manpower planning, therefore, aims at:
 Balancing demand, supply, distribution and allocation of manpower, Controlling cost of
human resources,
 Formulating policies on transfer, succession, relocation of manpower.

 HRP is a planning process by which an organization can move from its current manpower
position to its desired manpower position.
2. Executing process group
Responsibility assignment matrix

Activity Abebe Nardos Tomas Senayit

Project plan A R R R

Team Budget C A R R

Team Building R R A C
Design C I R A
 Conflict management
 Conflict is an opportunity if managed properly
 Conflict is inevitable (always exist)
Main Source of conflicts:
 Scarce resources
 Scheduling priorities
 Personal work style
 Conflict management (cont.)

 Measures that PM can take to avoid conflict:

 Provide the details of the project and inform the exact project
status.
 Assign each team members a work, insuring there is no
overlapping of responsibilities.
 Motivate the team and ensure that everyone gets to work on
interesting and challenging assignments.
Thank you