Successful Project Management

1. Successful Project Management • Relies on successful resource management including: • Plant • Materials • Labour

2. The Most Important Asset ?

3. The Human Resource Director • Aims of Lecture To establish the principles of Human Resource Management • Objectives of Lecture: • Identify the nature of the construction workforce • Calculate the cost of employment • Consider recruitment and training needs • Appreciate the effect of size of construction companies on HR strategy • Understand the need for Respect For People

4. Human Resource Strategy • Should aim to ensure sufficient staff to achieve company objectives • salaried and hourly paid • with right mix of skills • with reasonable age profile • at an economic cost • includes recruitment, training and retention

5. Construction Workforce • There are 3 general divisions of employment • Salaried - engineers, project managers, Q.S., estimators, admin. etc. • Manual - directly employed • Manual - self employed • Manual includes labourers (standard and skilled), craftsmen, plant operators etc.

6. Salaried Employees • Often professionally qualified • Salary determined by market forces • Tend to stay with company • Training, working conditions and promotion important • Employment cost = salary + overtime + bonus + N.I. + pension + holidays + sick leave + training + office + car + admin. support = typically 2.3 x salary

7. Manual, Directly Employed • May have ‘trade’ qualification • Hourly rate set by ‘Working Rule Agreement for the Civil Engineering Industry’ • May be employed permanently or for specific project • Training via CITB levy

8. Manual, Directly Employed (cont.) • Employment cost = • wage + overtime + bonus / PBR + premium payments = ‘A’ • N.I. = 8 - 11% A • Employers insurances = 3.5% A • CITB levy = 0.25% A • Small tools and PPE • Travel / lodging allowance • Pension, holidays, sick leave • Employment cost = typically 1.8 x salary

9. Manual - Self Employed • Rate set by negotiation / tender • No employers contribution to pension, holidays, sick leave • Travel / lodging allowance ? • Short term employment • Employment cost = ?????

10. Weekly Employment Pay For Manual

11. European Weekly Employment Pay

12. Recruitment and Training • Workforce need to become increasingly more productive • training, • management effectiveness • Recruitment is a constant requirement • retirement • move from area • move to competitor

13. An Increasingly Productive Workforce

14. Few Females in UK Construction

15. Age Profile of Construction Workforce(CIB, Nov 2000)

16. Trades Recruitment • CITB (2000), estimated the industry will require about 73,000 new trades recruits each year for the next five years. • Government policies encourage more young people to stay in education. • The CITB 2000/2001 intake was 43,000

17. Professional Recruitment(CIB, Nov 2000) • Between 1996 and 2000 applications for degree courses fell • From 3,200 to 1,600 for Construction / Building courses (-50% ) • From 3,100 to 2,050 for Architecture courses (-34% ) • From 4,200 to 2,000 for Civil Engineering courses (-52% )

18. Size of Company • Dictates responsibility for HR management • Effects structure of HR function • Effects formality of HR operations • in small companies often one of duties of owner(s) • in large companies, more structured, requires access to Board

19. Changes in Company Size

20. Company Size and Staff Levels • Number of employees required dictated by type of work and volume of work • Employees need supervision & support • Supervision span of control • Expense vs control ? • Employees require administrative support • Expense vs efficiency ?

21. Typical Span of Control

22. Conclusions • If a company is to achieve its strategic goal it must have • the right people • with the right skills • with the right attitude • It is the responsibility of the HR Director to ensure this happens within an ever changing market

23. Care for People If the industry is to become more attractive to young people (and their families and teachers) it needs better physical conditions on site and improved career prospects." Sir Michael Latham, Constructing the Team, 1994

24. Commitment to People this means not only decent site conditions, fair wages and care for health and safety of the work force. It means a commitment to training and development of committed and highly capable managers and supervisors. It also means respect for all participants in the process, involving everyone in sustained improvement and learning, and a no-blame culture based on mutual interdependence and trust.The Construction Task Force, Rethinking Construction, 1998

25. Respect for PeopleMovement for Innovation, Nov. 2000 • Better standard of work • More cost effective projects • Fewer delays / mistakes • Fewer accidents / ill health • Reduced staff turnover • Earlier completion dates • Advantage over competition • More repeat business

26. Mangame H.R. – 1. Determine Staff Levels and Tender Points

27. Mangame H.R. – 2. Determine Size of Office

28. Mangame H.R. – 3. Choose Office

29. Mangame H.R. – 4. Market for Offices • Office supply and rental charges governed by ‘Supply & Demand’ • When should you enter market ? • Size office for expansion ? • How long should you commit for ? • Multiple or single office site ? • ALL THESE DECISIONS INVOLVE RISK ASSESSMENT