Framework of human resource planning (HRP) influencing factors for local workforce supply in...

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Framework of human resourceplanning (HRP) inuencing

factors for local workforce supplyin Malaysian construction

industryNorhidayah Md Dom, Narimah Kasim and Alina Shamsudin

Department of Real Estate and Construction,University Tun Hussein Onn Malaysia, Batu Pahat, Malaysia

AbstractPurpose Human resource planning (HRP) is important during workforce supply to helporganizations appoint the right people in the right job. However, few studies have considered the roleof HRP practices for local workforce supply in the Malaysian construction industry. The purpose of this paper is to identify the implementation of HRP and framework development of HRP inuencingfactors for local workforce supply in the Malaysian construction industry.Design/methodology/approach A mixed method was adopted to interpret the data of semi-structured interviews and questionnaire survey. Semi-structured interviews were conductedwith ten interviewees from government and non-government organizations. Questionnaires weredistributed to a random selection of contractors in the urban areas of Malaysia. The data wereanalyzed using the Statistical Package for Social Science (SPSS) and the Matrix Table.Findings The ndings revealed that economic changes were dominant HRP inuencing factors.Only organization strategy; nature of work; economic changes; and demographic (social) changes aresignicant HRP inuencing factors for local workforce supply in the Malaysian construction industry.Research limitations/implications Future research should try to adapt the HRP framework inthe suitable HRP model to explain the HRP practices in construction organization.Originality/value The paper offers insight into HRP implementation in construction rms andHRP inuencing factors for local workforce supply, focusing on the construction industry in Malaysia.

Keywords Malaysia, Construction industry, Labour market, Workforce planning,Human resource planning, Inuencing factors, Local workforce

Paper type Research paper

1. IntroductionIn the Malaysians construction industry master plan for the 2006-2015 period, humanresource (HR) is the main issue in the construction industry. Therefore, it was taken asthe focus of this study (CIDB, 2007). HR is dened as labor or the people who carry outbusiness or work for an organization (Gilley et al., 2002). Human resource planning(HRP) is mostly ignored in HR in most organizations because those at the topmanagement do not know the value of HRP (Vareta, 2010). Thus, there is the

The current issue and full text archive of this journal is available atwww.emeraldinsight.com/1746-8779.htm

This research is supported by Universiti Tun Hussein Onn Malaysia, UTHM, under projectFundamental Research Grant Scheme (GIS) no. 0816.

HRP inuencingfactors

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Journal o f Technology Managementin China

Vol. 7 No. 2, 2012pp. 177-197

q Emerald Group Publishing Limited1746-8779

DOI 10.1108/17468771211242863


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possibility that the lack of local workforce participation in Malaysia is due to a paucityof positive examples of where such tools have been used successfully in HRP.

Workforce is a number of workers available to complete an activity, job or project inthe scopes of work (Randy et al., 2006). For instance; the construction industry placesheavy reliance upon the skills of its workforce (Chiang et al., 2004). Accordingly, theMalaysian construction industry is highly reliant on workforce energy to providethe construction industry operations (CIDB, 2007). The country expects the majority of the construction works should be carried out by the local workforce (Hong, 2010).However, the lack of local workforce participation has become a problem in theMalaysian construction industry (Salleh, 2008). In the context of this research, the localworkforce refers to general workers (labourers) which perform construction activitiessuch as bricklaying, plastering, tiling, bar-bending, concreting and formwork.

HRP is a systematic analysis of HR needs to ensure the availability of the correctnumbers of employees with the necessary skills is available when they are required inthe organizations (Vareta, 2010; Cherian, 2011). HRP is seen as a process that focuses onHR need anddevelops the essential initiatives to satisfy HR needs (Kaur, 2006). A stronganalysis of internal and external factors has been used to ensure the success of HRP(James, 2006). HRP factors are not only creating, but also shaping and changing theissues and workforce numbers in the future ( James, 2006; Keel, 2006). In addition, HRPframework is used to develop strategic planning in order to face a shrinking labor pooland understand the basic element of HRP in the organization (Cotten, 2007).

In Asian countries, there are limited research studies on HRP in the constructionindustry (James, 2006). The uniqueness of this research is the implementation of HRPand framework development of HRP inuencing factors for the local workforce supplyin the Malaysian construction industry. It starts with a comprehensive literature reviewon local workforce issues in the construction industry and HRP in the constructionindustry. Apart from that, it discusses the lack of local workforce in the Malaysian

construction industry in terms of internal and external HRP inuencing factors.

2. Literature reviewThe literature review is discussed under two headings, local workforce issues in theconstruction industry and HRP in the construction industry.

2.1 Local workforce issues in construction industryThe numbers of local workforce became a problematic due to the lack of localworkforce participation in the Malaysian construction industry (Hong, 2010). Localworkforces are uninterested in joining the construction industry because of the lowwages (Salleh, 2008). The low wages are not sufcient to support the majority of localworkforce life and the wages given can be erratic, depending on construction projects(Othman, 2004). Hence, the problem highlighted is concerned with the wage systemoffered to the local workforce for providing construction operation.

Educational change has affected the inow of local workforce in the Malaysianconstruction industry (CIDB, 2007). Commonly, most societies see the labourers in theconstruction industry as lacking prestige and low class. Therefore, local younggenerations are seeking higher education to secure a more lucrative profession andconsequently live a better life than their parents did. Another important issue to bediscussed is the occupational safety issue (Salleh, 2008). Accidents on construction

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sites are very common and everybody accepts it as an unavoidable feature of theindustry (CIDB, 2007). Thus, accidents had tarnished the image of the constructionindustry besides being labelled 3D images which referred to dirty, dangerous anddifcult. The proper training on safety and health training plays a signicant role inthe enhancement of safety in the construction (Toolle, 2002). However, the awarenesslevel of contractors for such training is not satisfactory.

Besides that, temporary employment status as a labourer causes a lack of participation by local workforce in the construction industry. Temporary employmentstatus means that the majority of labourers enjoy little or no social protection (incomesecurity or social security) (ILO, 2001). Local workers seek permanent jobs combiningpermanent wages and insurance protection as a guarantee to their life for the future. Inaddition, the accommodation provided by the employer (contractor) is less conducive tothe average Malaysian labourers (CIDB, 2000). The reason also contributed to localworkers shying away from the construction sector and considers employment in theconstruction sector as not dignied enough. There are also differences in the changesof development in the Malaysia situation. Ten years ago, most of the Malaysiansparticipated in the construction industry to support the construction operation (Leng,2005). Currently, there are varieties of competition in other sectors such as agriculture,manufacturing, services and plantation need big numbers of workforce to provide theoperations. Meanwhile, the numbers of local workforces are unaccommodating toprovide the operations. Therefore, the raising demands on foreign labourers to supportthe changes of situation.

The analysis of workforce issue is to highlight the future workforce requirements(Deborah et al., 2003) and improves the forecasting performance of HRP in theconstruction industry (Paul, 2010). Thus, there is a need for intensive planning forfuture HR needs and possibilities (Tulacz, 2000).

2.2 HRP in the construction industryHRP is a common concept in management theory (Loosemore et al., 2003). It has beenpracticed in many elds such as business (Abdullah, 2009), engineering (Duffy andSalvendy, 2000), medicine (Busing and Gold, 2009) and science (Boudreau andRamstad, 2007); as a corollary; it can practically be implemented in the constructionworkforces (labors) particularly in Malaysia. HRP is a process for identifying thenumbers of employee, the types of employee skill and developing a plan to ensure thatthe appropriate workforce is available to provide quality services (Loosemore et al.,2003). The benets of conducting HRP are many and varied (Decenzo and Robbins,1999). It allows organizations to restructure, reduce or expand their workforces(Abhishek, 2009). For instance, HRP is an essential portion in managing HR within adiversifying construction nature, therefore, the main contractor, consultant ordeveloper needs to analyse the current and future workforce markets to ensure theright people with the required skills are employed in their rms (Leng, 2005).

In Hong Kong, HRP factors have a long-run equilibrium effect to determine the localconstruction manpower supply by identied the internal (construction output, realwages, material price, bank rate and labor productivity) and external (technology,utilization capacity and various mix of work) of HRP inuencing factors ( James, 2006).In addition, the internal and external factors of HRP are not only creating, but alsoshape and change the issues and workforce numbers in the future (James, 2006;


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Keel, 2006). Therefore, HRP is a signicant approach to improve the implementation of HRP for the local workforce supply in the construction industry in Malaysia. Thesefactors can be categorized into two categories; internal and external factors.

2.2.1 Internal factors . The internal factors are controlled by the organization (Gupta,1997). This can be characterized by at least six interrelated factors as listed in Table I.

2.2.2 External factors . The external factor of HRP is a macro factor which inuencesHRP and cannot be controlled by the organizations (Khurana et al., 2008). Table IIpresents the four elements of external factors inuencing HRP in the constructionindustry.

2.3 HypothesesBased on the literature review, hypotheses for this research were proposed as follows:

Ha. Organization strategy, organizational culture, nature of work, leadership andexperience, organizational changes, empowerment of labor, legislation,economic changes, demographic change and technology changes are

signicant predictors of local workforce supply in the construction industry.

3. MethodologySemi structured interviews are required to observe current issues of local workforceand practices of HRP in the Malaysian construction industry while; surveyquestionnaires are used to measure hypothesis testing: signicant predictors of HRPfor local workforce supply in the Malaysian construction industry and also to observethe dominant factors of HRP in this research. The use of such methods may gatheraccurate, less bias and high quality data (Creswell and Plano Clark, 2007).

3.1 Semi structured interviewsBased on the literature review, the measures of HRP inuencing factors for localworkforce supply in the construction industry is indistinct in the context of Malaysianpractices. Therefore, semi-structured interviews were conducted to explore the currentpractices of HRP inuencing factors for local workforce supply in the Malaysianconstruction industry. It also captures the current issues of local workforce in theMalaysian construction industry. This method is more exible in that it allows greaterspontaneity and adaptation of the interaction between the researcher and therespondents (Denzin and Lincoln, 2005). Thus, respondents have the opportunity torespond more elaborately and in greater detail compared to the survey questionnaire.

3.1.1 Respondents . The target of semi-structured interviews was industry expertswho had experience in conducting HRP in the construction industry and who arecurrently holding managerial positions in aspects of construction management. Twotypes of respondents: government and non-government organization (NGO) wereselected to discuss current issues of local workforce in the Malaysian constructionindustry and practices of HRP inuencing factors for the local workforce supply in theMalaysian construction industry. Local government in Malaysia operates on theprinciples and performs as specically enumerated in its various acts and by lawsinclude all aspects such as: environmental, public (amenities, health and cleansing),social and developmental (Chee and Phang, 1992). NGO are self-governing,independently nanced organizations and societies that assign themselves specicroles, issues or disciplines paralleling governmental or ingovernmental organizations

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Internal factors Description

Organization strategy Financial strength is a strategic asset in the organization to reach ingeniousstrategic plans (Warszawski, 1996)The traditional philosophy of construction planning placed a great emphasison the ability to plan and execute projects (Thomas and Cheese, 2005)Two points in handling manpower at construction sites; allocate manpowerwhether to subcontract or to have a directly employed labor force and theallocation of directly employed manpower will depend on the needs of thevarious projects (Azreen, 2005)Theimbalanceof managers at operativeand strategic levelmakes thestrategicdecision hard to make for workforce planning (Gabriel and Pontus, 2007)

Organization changes A small organization in the embryonic stage may not have an appropriateplanning (Boyd, 2008). A need for planning is felt when the organizationenters the growth stage likes layoff, retrenchment and retirementThe role of construction rm components requires high exibilitycommitment (Grifn, 2008)Labors commitment and personnel behaviour absolutely impact toconstruction organization target (Azman et al., 2010). For instance, thelimited time to stay in Malaysia gives a chance to foreign labor to work hardand consigns money to their family. Thus, a high commitment given by themtowards construction tasks

Organization culture The culture of construction in the UK was inuenced by its young, male andwhite workforce (Barthorpe et al., 2000)Training initiatives are an important tool in cultivating a desired culture(Rameezdeen and Gunarathna, 2003)Most construction companies at USA are dominated by a strong clan culturelike an extended family; emphasize teamwork, participation and consensus;have labors with a high level of loyalty; and emphasize human development(Yazic et al., 2007)People in the construction industry are like the clan culture. Individuals are

rewarded when the nancial result is good or new market shares have beenwon (Nummelin, 2007)In Malaysia, culture of construction industry was inuenced by male of foreign labors that local refuses to do (Hong, 2010)

Leadership andexperience

Two-way communication helps to build condence and motivation of labor(Fraser, 2000)Majority of the construction manager felt that they should considersuggestion and ideas from the labors but they controlled the decision makingprocess (Toor and Ofori, 2008)Leader should focuses on tasks and relationships between labor andsupervisor (Panthi et al., 2008)Leaders inuenced on labor motivation, value and aspirations whichsubsequently inuence labor attitudes and behaviours ( Jenny et al., 2010)The use of authority and punishment was rated among the lowest of

leadership behaviours in the construction rms (Sammy, 2010)Leadership effectiveness is necessary to understand an effort to inspireemployees and thus achieve organizational goals and objectives (Amin andAbu, 2010)

Empowerment Empowerment is encouraging an organizational learning and rethinking theway to do things; such as strategic alliance formation and embracing a workenvironment (Gary et al., 2000)

( continued )

Table I.Internal HRP inuencing

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that have similar mandates (Shariff, 1996). Therefore, both perspectives are required tostudy the current situation of HRP in the construction industry of Malaysia. Semistructured interviews were employed with ten respondents, three government andseven NGO. A purposive sampling method was used to select the respondents based onoperational construct (Patton, 1990). Seven of the ten respondents were projectmanagers and three were directors of construction organizations. The respondents inthese interviews had over ve years tenure with their organizations and had a varietyof professional and organizational backgrounds.

3.1.2 Materials . Materials used for recruiting and screening respondents includedthe invitation to participate letter and the informed consent. Approval of the humansubjects protocol (invitation and informed consent) was obtained via e-mail from allrespondents. The interview questions are divided into two sections:

(1) current issues on local workforce in the construction industry; and(2) current practices of factors inuencing HRP in the construction industry.

Ten determinants of factors inuencing HRP were raised to all organizations. Internalfactors:

(1) strategy of organization;(2) organization changes;(3) organization culture;(4) nature of work;(5) leadership and experiences;(6) empowerment of labor; and external factors;(7) legislation;(8) economic changes;(9) technologies changes; and

(10) demographic changes.

To conduct the interview sessions, a 14 questions interview guide was prepared andtested with both peers and a trial respondent. This interview guide minimized bias,

Internal factors Description

Empowerment of labor in completing his job task because he hasinformation, skill, knowledge, experience and power (Kaur, 2006; Darlington,2002)

Nature of work HRP is effectively in dealing the nature of job to attain the organizationmission (Susan and Randall, 2001)HRP is the effective matching of the nature of work with employeeperforming the task (Boyd, 2008)The construction industry being a fearful when the majority of manpower ismanipulated by foreign labor (Salleh, 2008)The task to be performed at construction site is more nature and need aphysical durable (Hong, 2010)Table I.

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by providing a basis for a consistent sequence and approach to interviews and adopteda consisted wording of the applicable questions. This interview guide also served asthe form for collecting respondents personal information and for collecting specicnotes during the interview.

3.1.3 Procedure . Respondents took part individually at their respectiveorganizations and the interviews were scheduled for 45-60 minutes. They wereasked to read the description of the research which allowed for the respondents toask any questions to clarify the nature of the study or their expectations. Respondentsagreed and understood that they could refuse to answer any question and terminate the

External factors Description

Legislation Government law and regulations is a powerful external factor which affectsorganizations directly the federal regulations activities, policies andprogrammes (Leng, 2005)Health insurance is a direct benet to labor in term of improved health (Jae,2007). Labors will refuse to change jobs if they have pre-existing medicalconditions and fear losing their medical coverageIn Malaysia, government plans to increase the levy on foreign labor to reducethe dependency on foreign labor (Aziz et al., 2010)

Economic changes Economic forces inuencing in growth or decline of gross domestic product andincreases or decreases in ination, interest rates and exchange rates(Darshan et al., 2006)The economic that Malaysia has seen for last decade is one of the leading causesof the worker shortage (Zahidi and Afzanizam, 2009)The low skills job is similarly with the low wages (Aziz et al., 2010)In Malaysia, there are perhaps a low wage needs to be increase in order to retainthem in the construction industry and reecting with the nation economic(Hong, 2010)

Technologychanges

A constantly changing marketplace, technology has moved to the forefront foradvancement potential in the construction industry (Abraham and Chinowsky,2002)The employments of prefabricated components, large forms and high-strengthconcrete are lead to considerable cost savings and price reduction (Warszawski,1996)The most part of construction projects are constructed in situ and manpower isimportant to provide the construction operation (Loosemore et al., 2003)In some cases, company may retain existing employee and teach them the newtechnology or remove existing people and appoint new employees (Paul, 2010)

Demographicchanges

Workforce demographics provide necessary baselines such occupations, gradelevel, race, gender, age, length of service and retirement eligibility (London et al.,

1990)The changing demographic changes the abilities, skill, interests and values of tomorrows workforce (Susan and Randall, 2001)Demographic change reduced the ow of younger workers who have typicallyprovided much construction site labor (E-CORE, 2005)The changing prole of the workforce in terms of age, gender participation,literacy, technical inputs and social background has implications to HRP (Kaur,2006)A number of people retire every year and a new batch of graduates withspecialization turns out every year will change the appointment or the removalin the company (Paul, 2010)

Table II.External HRP

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interview at any time. Respondents were then asked a series of open-ended questions ina semi-structured format from the interview guide. Respondents were encouraged todescribe situations in signicant detail and were often followed by additional questionsto probe for detailed explanations and each was later transcribed for use in analysis of respondents responses.

3.1.4 Data analysis . Interviewees were reecting their experiences and knowledgeon the current issues of local workforce and HRP practices in the Malaysianconstruction industry. The researcher coded the result with the assistance of theMatrix table. It was divided into columns and rows with factors and descriptions fromeach respondent. The coding of the transcribed data to ensure the results was easy touse and understand at the end of this research. The researcher also made minorchanges, which involved omitting words from some of the interview excerpts withoutaffecting their meaning, in order to produce a more concise statement that would assistreaders to understand it (Abraham and Chinowsky, 2002). The information gatheredfrom interviews was used to develop the content of the questionnaire survey.

3.2 Survey questionnaireA survey was conducted to measure hypothesis testing: signicant predictors of HRPfor local workforce supply in the Malaysian construction industry and also to observethe dominant factors of HRP in this research. This method is fairly exible in that itallows for the meaningful comparison of responses across respondents and sites study(Denzin and Lincoln, 2005).

3.2.1 Survey sample . The researcher attempts to use a large sample of respondents inorder to obtained an appropriate data of HRP inuencing factors for local workforcesupply in the construction industry. The target of the survey was contractors forconstruction project (large and small organizations) who are currently holding

managerial positions in project management and operation management in theregistered contractors and licensed builders rms in Malaysia. The targeted populationfor this study is 250 respondents who have worked in construction organization. Of thattotal, 206 usable questionnaires were returned to the researchers, yielding 82.4 percentresponse rate. A response rate ranged from 30 to 50 percent is common in social sciencesurveys and can be accepted (Miller et al., 2000) while a response rate ranged from 50 to80 percent is considered as good response rate (Roth and BeVier, 1998). Therefore, thesequestionnaire surveys were assumedas a good responsewith 82.4 percent response rate.

3.2.2 Data collection. The survey was distributed via e-mail, fax and post tocontractors that were randomly selected to take part in the research. A self addressedand stamped envelope was providing in which to return the completed surveys to theresearcher. These questionnaires distributed to respondents along with the cover letter,which explained about the purpose of the research, instructions on how to answer thequestionnaires, anonymity and condentiality issues. The questionnaire consistedthree sections. The rst section contains the questions capturing the prole of respondents. In the second section, the numbers of local and foreign labor have beenemploying in the organization was asked, followed by the question asking about thenumbers of local and foreign labor in the six coming months. The last section includedquestions asking about ten variables of HRP inuencing factors for local workforcesupply in the construction industry. In this section, 94 items present a list of statements

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about HRP inuencing factors for local workforce supply in the construction industry.Respondents are requested to score according to Likert scale rating:

. strongly disagree;

.

disagree;. neutral;. agree; and. strongly agree.

3.2.3 Data analysis . The responses from the survey were analyzed using StatisticalPackage for Social Science software. To measure respondents background, workforcebackground and dominant factors of HRP for local workforce supply in the Malaysianconstruction industry, descriptive statistics were performed. The descriptive statisticscan be used to assess the research variables and the usefulness of the dataset (Fosteret al., 1998). To measures signicant predictors of HRP for local workforce supply in

the Malaysian construction industry, stepwise regression analysis (SRA) was used(Foster et al., 1998). SRA can be used to assess the relationship between manyindependent variables and one dependent variable and the contribution and inuenceof each independent variable on dependent variable (Foster et al., 1998). To assess thevalidity of signicant predictor of HRP scales, exploratory factor analysis (varimaxrotation) and conrmatory factor analysis (i.e. Kaiser Meyer Olkin (KMO), Barlets testof sphericity and Eigen values) were performed (Nunnally and Bernstein, 1994).

4. Data analysis and ndingsThe results are discusses with under two headings, semi-structured interviews andquestionnaire surveys.

4.1 Semi structures interviewsInterviewees were reecting their experiences and knowledge to responds the currentissues of local workforce and current practices of HRP for local workforce supply in theconstruction industry.

4.1.1 Current issues . In total, 12 elements were mentioned as broadly current issuestowards local workforce in the Malaysian construction industry:

(1) Uncomfortable environment. Employers explained that uncomfortableenvironments such as: hot weather, un-healthy environment and no airconditioner causes local workforcesto be uninterestedin the constructionindustry.

(2) 3D images dirty, dangerous and difcult. Employers labelled theconstruction industry as heavy work and exposed to accident at construction

site. Accidents on construction sites are very common and everybody accepts itas an unavoidable feature of the industry (Kaur, 2006). Thus, accidents hadtarnished the image of construction industry besides being labelled 3Dimages which referred to dirty, dangerous and difcult. Besides that, work atconstruction sites is difcult because of the need to provide heavy work such as:bricklaying, plastering, tiling, bar-bending, concreting and formwork.

(3) Low wages. Employers mentioned that the low wages cause local workforces tobe uninterested with the construction industry. The wage level is not applied


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properly according to the skilled labourer but it depends on the competency of the employer to payoff the labourer (Salleh, 2008; Othman, 2004).

(4) Temporary work. Employers also stated that labor force in the constructionindustry is temporary work. Our local workforce required a permanent job andwage in order to maintain their economy.

(5) Lack prestige and social behaviours. In addition, employers agreed that it lacksprestige to be employed as a labourer in the construction industry causing localworkforces to be uninterested with the construction industry. This results insociety regarding labor work as not dignied enough because it is viewed as alow status job (ILO, 2001).

(6) Young generations seek higher education. Employers mentioned that the lack of local workforce in the construction industry is due to education changes. Theyoung generation seeks a higher education to have a lucrative life better thantheir parents did (CIDB, 2007).

(7) No insurance protection for labor. At the same time, labourers prefer aninsurance protection as a warranty to their life whenever they are injured oraccidentally. Employment Provident Fund (EPF) and Social SecurityOrganization (SOCSO) are qualied enough if employers are no providinginsurance protection to them.

(8) Occupational safety. The safety issue is also a worry among people to beinvolved in the construction industry (CIDB, 2007; Toolle, 2002). People need tokeep away their feeling about the safety in the construction industry becauseconstruction personnel always remind labourers to use the safety tools to avoidany accidents.

(9) Development and technologies changes. There are many job opportunities withinother industries that are easier than in the construction industry. In theconstruction industry, manpower is required for doing a wet trade job such asbricklaying, plastering, tiling, bar-bending, concreting and formwork.

(10) Difcult to get permission for leave. High commitment is required by labourersat a construction site in order to complete the construction operation. It isbecoming difcult for the employer to allow their labourer leave.

(11) Un-predictable work. Sometimes labourers are required to work overtime inorder to achieve an expectation project. However, the employer stressed thatlocal labourers are un-willing to work overtime.

(12) Weakness on organizations strategies. The employer needs to study and analysetheir HRP processes to retain and attract more local labourers in theconstruction organization (Leng, 2005). Some organizations are not planningtheir HRP smoothly causing labourers to quit their jobs.

4.1.2 Current practices of HRP in the Malaysian construction industry . There arevarious methods adopted by construction organizations to employ local labourersdirectly from their companion and friend. Meanwhile, an indirect method is appliedthrough CIDB under a trainers programme. Traditionally, employers heavily focusedon the goal of completing the construction project due to the duration of the project.Now, employers gave a greater emphasis to understanding the labourers interests and

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the process to handling and managing local labourers in the organization. Tendeterminants of factors inuencing HRP were raised to all organizations for localworkforce supply are internal factors such as:

(1) organization strategy;(2) organization changes;(3) organization culture;(4) nature of work;(5) leadership style and experiences;(6) empowerment; and external factors;(7) legislation;(8) economic changes;(9) technologies changes; and

(10) demographic changes.

All of determinants are signicant to predicting the reasonable level of local laborrequired for construction project as shown in Tables III and IV. HRP inuencingfactors were listed relating to internal and external changes and how those changeswill affect the requirements need by local labourers in the construction industry.

4.2 Survey questionnaireThe questionnaire resulted in computing for descriptive statistics, SRA and factorsanalysis.

4.2.1 Descriptive statistics . A total of 206 usable responses were obtained. Detaileddescriptive statistics relating to the respondents backgrounds are shown in Table V.

Workforce background. There are 169 (82.0 percent) of respondents claried thattheir organization employs local labourers. On the other hand, 37 (18.0 percent) of respondents are not employing local labourers. While, 206 (100 percent) of respondentsclaried that their organization employs foreign labor. Thus, the majority of employers are employing foreign labourers as their main manpower at constructionsites. On the other hand, Figure 1 shows the percentage of local and foreign labor in thesix coming months. The majority of employers are planning to employ more than 100foreign labourers while local labourers are between one and 25 as their main manpowerat construction sites.

Dominant factors of HRP. Figure 2 shows the central tendency measurement of allHRP inuencing factors for local workforce supply in the construction industry.Among the HRP inuencing factors, economic changes had the highest mean( M 4.849, SD 0.403). Therefore, economic changes were claried as dominantfactors of HRP for local workforce supply in the construction industry.

4.2.2 Stepwise regression analysis . Table VI shows the SRA results of HRPinuencing factors in the construction industry. The results indicated that 81.2 percentof variance for local workforce supply in the construction industry was signicantlyexplained by HRP inuencing factors. However, only organization strategy, nature of work, economic changes and demographic (social) changes are signicant predictors of local workforce supply ( p , 0.0005). Thus, Ha was partially supported:


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. all research variables had Eigen values larger than 1; and

. the items for each research variables exceeded factor loadings of 0.5.

The analyses conrmed that measurement scales used in this study have met theacceptable standard of validity analyses.

Organization strategy produced two factors solutions with Eigen values greaterthan one accounting for 49.15 percent of the total variance. Factor 1 explained33.32 percent of the variance was identied as operational awareness and factor 2explained 15.83 percent of the variance was identied as analyzability. On the otherhand, two factors had Eigen values greater than one accounting for 52.83 percent of thetotal variance for nature of work. Factor 1 explained 33.36 percent of the variance was

External factors Description

Legislation The cooperation encouragement between the education institution andconstruction organization will enhance service provisionEmployers applied a standard procedure in order to employ foreign laborThe skill of labors reects the wages levelLabor should be an educated group that learns the skill from educationinstitutionLabor should be placed under the government project to ensure they arecontinually able to generate their economyA strong of standard safety should be provided during in construction siteWomen are not supported to be involved as laborEmployer should provide good facilities such insurance protection and healthfacilities

Economic changes High market demand toward skilled laborThe strength growth of Malaysian economy required the numbers of qualiedworker

The growth economy may impact to labors in order to support their dailyexpenditure due to the price increase of daily productsThe wage system of the work labor must according to the current developmentof the nation economyThe weak global economic cause the organization is unable to achieving theprojected growth rate or may be no project target

Technologychanges

Majority of the job task at construction site required labor force especially forwet trade workThe company may retain and train existing labor or remove and appoint newlabor affect of technology changeEmployers suggest skill of labor must be parallel with technology changeImprovement of technology able to assist and accelerate a work site progress

Demographicchanges

Among people has high education for a better salary

Majority of labor is dominated by male laborYoung generations are rarely to participate as a labor forceA poor family has no choice to involve as a labor forceAn attitude among people toward construction work is not respectfully enoughThere are more competitive with other job opportunities that more easily andmore benets to job seekers

Note: Current practices

Table IV.External HRP inuencing

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identied as adaptability and factor 2 explained 19.47 percent of the variance wasidentied as salary system in the construction company.

Only one factor had Eigen values greater than one were accounted for 62.64 percentof the total variance for economic changes was identied as economic consideration.Two factors had Eigen values greater than one accounting for 61.94 percent of the totalvariance for demographic changes. Factor 1 explained 45.83 percent of the variancewas identied as variety of implication and factor 2 explained 16.11 percent of thevariance was identied as social awareness.

5. DiscussionFigure 3 shows four signicant predictors of HRP inuencing factors for localworkforce supply in the construction industry. Organization strategy is required byemployers to evaluate their current resource to show the overall operation of theorganization (Leng, 2005). Operational awareness affects the organization bydetemining the relative strength of hired foreign labourers to overcome the lack of labor, the labor competency, the expected numbers of labourers required for thevacancy and the long term labor requirement. Other criteria of the organization

Characteristics Category Frequency %

Designation Managing director 57 27.7Project manager 74 35.9Project coordinator 27 13.1Quality assurance 12 5.8Quality controlling 26 12.6Other 10 4.9Total 206 100.0

Years of experience , 5 years 35 17.05-15 years 133 64.6. 15 years 38 18.4Total 206 100

Years of company in operation , 5 years 25 12.15-15 years 116 56.3. 15 years 65 31.6Total 206 100

CIDB grade G1 0 0.0G2 0 0.0G3 0 0.0G4 13 6.3G5 33 16.0G6 50 24.3G7 110 53.4Total 206 100.0

PKK class Class A 111 53.9Class B 49 23.8Class C 33 16.0Class D 13 6.3Class E 0 0.0Class F 0 0.0

Total 206 100.0

Table V.Characteristics

of respondents

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Figure 2.Dominant factors of HRP

for local workforce supplyin the construction

industry

Central Tendency

0.805

0.656

0.584

0.517

0.514

0.437

0.4090.403

4.04

4.29

4.50

4.54

4.55

4.66

4.80

4.83

4.85

0.787

0.470

4.33

0 1 2 3 4 5

Organisation Strategy

Organisational Change

Technology Changes

Empowerment

Leadership and Experiences

Legislation

Organisation Culture

Demographic (Social) Changes

Nature of Work

Economic Changes

MeanStandard Deviation

Figure 1.Percentage of local labor

in the constructionorganization

2.43

1.94

19.42

37.86

38.35

77.18

14.08

8.25

0.49

0.00

0 10 20 30 40 50 60 70

1-25

80

25-50

50-75

75-100

>100

Local Labour vs Foreign Labour (In the 6 Coming months)

Numbers of foreign labour in the 6 comingmonths with respondents = 206

Numbers of local labour in the 6 comingmonths with respondents = 206

Note: In the six coming months


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strategy are analyzing the nancial strength of company to control HRP process(Warszawski, 1996; Azreen, 2005; Gabriel and Pontus, 2007). Finance is important toallocate manpower (whether to subcontract or to have a directly employed labor force)and assets at construction sites such as: temporary buildings which can be hired ratherthan owned.

Nature of work was also identied as a critical HRP inuencing factors for localworkforce supply in the construction industry. Labourers are required to adapt with

Predictors b p

Leadership style and experience 0.008 0.353Nature of work 0.185 0.000Organizational changes 0.041 0.278Organization strategy 0.394 0.000Organization culture 0.041 0.200Empowerment 0.252 0.357Legislation 0.238 0.001Economic changes 0.184 0.000Technology changes 0.006 0.004Demographic (social) changes 0.324 0.000

Notes: p , 0.0005; adjusted R 2 0.812; F 35.007Table VI.The results of SRA

Measures ItemFactor

loadings KMOBartletts test of

sphericityEigenvalues

Varianceexplained

Organization strategy 10 0.536-0.774 0.811 499.12, p 0.000 3.515 49.15Nature of work 10 0.558-0.845 0.818 663.99, p 0.000 4.085 52.83Economic changes 7 0.580-0.913 0.860 987.08, p 0.000 4.384 62.64Demographic (social)changes 10 0.649-0.893 0.812 1,021.76, p 0.000 4.601 61.94

Table VII.The results of factoranalysis

Figure 3.Framework of HRPinuencing factors forlocal workforce supply inthe construction industry

Adaptability

Economic Consideration

Variety of Implications

Social Awareness

Salary System and Benefits

Operational Awareness

Analyzability

Nature of

Work

OrganizationStrategy

Internal

External

HRP InfluencingFactors for Local

WorkforceSupply in

ConstructionIndustry

EconomicChanges

Demographic(Social)Changes

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the environment in the construction industry. For example, the transient workforceposes many problems for labourers such as: longer working days, more expense intravelling to work and managing work-life balance issues, since their families may notbe as mobile (Loosemore et al., 2003). Labourers are also exposed to high risks such as:accidents and 3D images dirty, dangerous and difcult (CIDB, 2007; Hong, 2010).Construction labourers are also known to have low wages; unxed salary, no insuranceprotections provided; and labourers are required to nd another work task after projectcompletion. On the other hand, job opportunities in other industries give a lot of benets such as; EPF, SOCSO and insurance protection to job seekers.

The majority of previous studies viewed the demographic as HRP inuencing factorsprocess (Keel, 2006; Cotten, 2007; Deborah et al., 2003). Gender, age, family situation andcurrent education were identied as HRP inuencing factors for local workforce supplyin the construction industry. Demographic changes will reduce the ow of youngerworkers who have typically provided much construction site labor (E-CORE, 2005).Generally, a number of people retire every year and a new batch of graduates withspecialization turns out every year and will change workforce trends in the company. Inaddition, the lack of social awareness and wrong perceptions such as low status as alabourer was attributed to local workforce supply in the construction industry.

Economic changes were displayed as highly inuential to HRP for local workforcesupply in the construction industry (Zahidi and Afzanizam, 2009). Economic changesimpact workforce type and size, what they do; for whom they do it; and how they willrecruit, retain and develop the workforce (Keel, 2006; Cotten, 2007; Deborah et al., 2003). Aglobal economic condition has a tendency to contribute to the labor income; eitherlabourers are able to generate their economic or unable to support their daily expendituredue to the price increase of daily products. Perhaps the low wage of a labourer needs to beincreased to reecting the national economic condition in order to retain them in theconstruction industry (Hong, 2010). Employers believed the strength of economic growth

will increase Malaysian development and requires a highly educated worker. However, alow rate of projected growth may cause the labourer to lose their job.

6. ConclusionThe major nding of this study is used to support HRP for local workforce supply inthe construction industry. It is not only a timely focus on the prospects of skillrequirements in the construction industry from the point view of the changing natureof the industry, but also timely from the point view that little research has beenconducted in this area. More importantly, this research provides a valuable theoreticalfrontier and offers a new attempt to improve several way of HRP manpower demand.At the industry level, this research provides an original application of HRP analysis toestimate the local workforce needs in the construction industry. These offer anintegrated and enhanced forecasting system for the construction industry of Malaysia.

This study has its signicance fromthe point of view that it isan attempt inan area inwhich there was no precedent research, both domestically and internationally. Overall,this research demonstrated that the analysis of workforce issue is to highlight the futureworkforce requirements and improve the forecasting performance of HRP in theconstruction industry. Thus, there is a need for intensive planning for future HR needsand possibilities. HRP is an essential portion in managing HR within a diversifyingconstruction nature, therefore, the main contractor, consultant or developer needs to


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analyse the current and future workforce markets to ensure the right people with therequired skills are employed in their rms. The results were contributed to new ndingsof HRP context in the Malaysian construction industry. Importantly, these problemswere captured at the HRP implementation through the HRP inuencing factors for localworkforce supply in the construction industry. It is hoped that the ndings from thisresearch will provide some indication to the industry practitioners involved in theMalaysian construction industry.

This study was motivated by the need for an in-depth analysis of HRP to forecastthe local workforce supply in the construction industry. To establish a framework of HRP inuencing factors for local workforce supply in the construction industry,managerial levels should understand the requirements for local workforce and makeuse of reliable methods for forecasting local workforce. The framework is to improveHRP implementation and potentially as a solution to facilitate a new practicingapproach for local workforce supply in the Malaysian construction industry. Itprovides several factors that must consider by employers and managerial level as wellas a guideline; which can be applied for their future HRP. Employers are able toforecast the local workforce supply and their requirement needs in order to conductconstruction operation efciently. In view of that, employers get the impression thatHRP is a rigid system that must be implemented in HR plan. Thus, the results werecontributed to new ndings of HR context in the Malaysian construction industry.

7. Research limitation and future studyThis research had some limitations. The framework can be implemented in the suitableHRP model to explain the HRP process in Malaysian construction organization. It canbe served as a practical and robust tool into the forecasting HRP models required forthe construction industry of Malaysia for short to medium term (i.e. one to ve years).Therefore, HRP model can provide solid information to facilitate HRP and enablespolicymakers to foresee the trend of manpower demand and formulate policies andtraining programmes tailored to deal effectively with the industrys labor resourcerequirements in the construction industry. Thus, a better articial intelligencetechnique of the HRP model can be developed.

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Corresponding authorNorhidayah Md Dom can be contacted at: [email protected]

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