Research proposals
Research proposals
Jun, 2016
Addis Ababa
Assessment on factors affecting productivity of
employees in the construction industry, the case
of building projects in Addis Ababa; Executive’s
Perspective
Mesganaw Ayalew has done the study on the topic of:
Signature___________________________________
Mesganaw Ayalew
Signature_____________________
Date_____________________
ADDIS ABABA UNIVERSITY
SCHOOL OF GRADUATE STUDIES
College of Business and Economics
Department of Management
Executive Masters of Business Administration (EMBA) Program
i
Abstract
This study aimed to examine factors affecting productivity of employees in the
construction industry from the point of views of construction company’s
executives. Factors such as proper management and supervision, innovation,
supply chain management of construction inputs, demotivating factors,
motivational schemes, competence skill of employees and similar factors
contribute to the efficiency and productivity of the construction sector are
evaluated.
The construction industry in Ethiopia, worth billions of dollars every year and of
that enormous sum, significant portion of it is lost as wastage that reduces much
the effectiveness and productivity of the sector. The wastage is a combination of
many factors out of which problem related to human resources constitute the
major share that needs to be addressed in managing construction projects.
The sample size for the study is 288 comprising of executives leading and
administering Grade 1,2 and 3 construction company’s involving in building
constructions in Addis Ababa. The sample population was distributed between
contracting companies: 146 executives’ of grade 1 contractors, 60 executives of
grade 2 contractors and 82 executives of grade 3 contractors companies. In the
study, quantitative research methods were used. Primary data was obtained
using questionnaires and literature sources ware also collected from books,
journals, past research works, official documents and the internet. Purposive and
random sampling ware used to select proportional number of samples from the
study area. Data were analyzed using percentages, and correlation.
The study has also focused on examining the extent of awareness of construction
company’s executives about factors affecting productivity. The results obtained
from the study indicated that majority of the respondent executives do not give
much attention to factors hindering productivity of employees.
Some of the major factors that are given little or no attention includes:
compliant management systems, orientation at entry when employees join the
company, implementation of effective construction waste management, timely
monitoring and evaluation, capacity building schemes, and transparent
communication, are some of the major factors neglected in construction
companies employees management systems.
This paper suggests that there should be continuous effort to identify and
raise awareness of construction company executives, core staffs, other
employees and actors in the sector to improve the factors affecting productivity of
employees in the construction sector with special emphasis to building projects.
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Table of Contents
Acknowledgement
Abstract
Acronyms
List of Tables
Chapter One.................................................................................... 1
1.1. General Introduction ....................................................................... 1
1.2. Statement of the problem.............................................................. 4
1.3. Research Questions of the study ................................................... 5
1.4. Objective of the study ................................................................... 5
1.4.1. General objective of the study .................................................. 5
1.4.2. Specific Objectives of the study ............................................... 5
1.5. Scope of the research .................................................................... 6
1.6. Limitation of the study.................................................................. 6
1.7. Significance of the study ............................................................... 7
1.8. Organization of the research............................................................ 7
Chapter Two ................................................................................... 8
2. Theoretical Review of Literature ........................................................ 8
2.1. Introduction ................................................................................ 8
Employees Management ........................................................................ 8
2.2. Employeesand competence ........................................................... 8
2.3. Employees Management and supervision in construction projects...9
2.3.1. value adding activity ..................................................................... 9
2.4. Productivity ................................................................................ 1
2.4.1. Historical Development of Productivity ..................................... 11
2.5. Productivity improvement Factors and Techniques ....................... 11
2.5.1. Productivity improvement Techniques ..................................... 11
2.5.2 Productivity improvement Factors (Competence) ....................... 14
2.5.3 Motivation ................................................................................ 16
2.6. Construction in Ethiopia .............................................................. 17
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2.7. Conceptual framework .................................................................. 18
Chapter Three................................................................................. 19
3. Research approach, Methodology and Design ................................... 19
3.1. Research Approach ....................................................................... 19
3.2. Research Methodology .................................................................. 19
3.3. Research design........................................................................... 19
3.3.1. Study Sites ............................................................................. 20
3.3.2. Target population ..................................................................... 22
3.4. Sample Size Determination ........................................................... 23
3.5. Sampling method and sample size ................................................ 24
3.6. Unit of analysis............................................................................. 25
3.7. Data collection method ................................................................. 25
3.8. ANALYSIS OF FINDINGS .............................................................. 26
3.9. Rating Scale ................................................................................. 27
Chapter 4 ....................................................................................... 28
Findings, Data analysis and interpretation ............................................. 28
4.1 Demographic Characteristics............................................................ 29
4.1.1 Level of the company, gender and main business ................... 29
4.4. Level of education ........................................................................... 30
4.5. Years of Experience ......................................................................... 31
4.7. Productivity level of organizations.................................................... 32
4.8. Do you change your job in 12 months ............................................. 32
4.9. Timely pay and other motivations .................................................... 33
4.10. Safety and Security ....................................................................... 33
4.11. Motivate workers, giving bonus when doing major construction
Works .................................................................................................... 34
4.12. Demotivation factors .................................................................... 35
4.13. Timely Monitoring &Evaluation plan.............................................. 36
4.14. Waste reduction and management of construction materials ......... 37
4.15. Encouraging people with exceptional technical skill ...................... 38
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4.2 Mean rank and importance index of major groups of factors ............. 39
4.2.1. Mean rank and importance index of Motivational Factors ............. 39
Table 4.2.2 Mean Rank of Supervision and management related factors . 40
Table 4.2.3 Mean Rank of Demotivating Factors ..................................... 41
Table 4.2.4 Mean rank of innovation and creativity related factors.......... 42
Table 4.2.5 Mean rank of competence related factors.......................... 42
Table 4.2.6 Mean rank of supply and maintenance related factors ........ 43
Table 4.2.7. Over all Mean Rank of Factors affecting Productivity of employees
.............................................................................................................. 44
CHAPTER FIVE ................................................................................ 45
Conclusion and Recommendation ......................................................... 45
5.1 Conclusion ....................................................................................... 45
5.2. Recommendations ........................................................................... 47
5.3 Future Research ........................................................................... 48
REFERENCES
Annex
3
List of tables
Table 2.2.2 Mean rank and priority index supervision and management factors
4
Table 2.2.3Mean rank and priority index of innovation and creativity
5
List of Acronyms
BC Building contractor
GC General Contractor
HC Human Capital
ORG Organization
RC Road contractor
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Chapter One
1.1. General Introduction
1
also exert influence over the project, its deliverables, and the project team in
order to achieve asset of outcomes that satisfy strategic business objectives or
other needs (PMBOK Gide,2013).
The global construction industry, worth trillions of dollars every year and of
that enormous sum, 40% is lost as wastage. The wastage is a combination of
many factors out of which people problem constitute the major share
(O‟sullivian.2003). This implies, the contribution of employees has a major role
and indispensible share that needs to be addressed in managing construction
projects. As management is about obtaining results through people, the sector
needs implementing modern human resource management that incorporates;
acquiring, training, motivation, effective leadership, integration of the
employees with the organization‟s strategic plane, reducing wastage, avoiding
risks, practicing safety mechanisms and other facilitations to ultimately
improve productivity.
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1.2. Statement of the problem
Despite the booming trend of the construction industry in Ethiopian in
recent years:
Given the critical role the construction industry plays in Ethiopia, and the
poor level of performance of the industry, improving the productivity of the
industry ought to be a priority action. Among the problems, improving
Productivity of employees in the construction sector particularly in building
projects is the important factor which increases the performance of overall
organization.
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1.3. Research Questions of the study
The researcher investigated and tried to find more of empirical answers to the
following issues that are related to the main subject matter under study.
1. What are the major factors that can improve productivity of employees
working on building projects in Addis Ababa?
2.What is the status of employee‟s productivity in building construction
The main objective of the study is to assess the factors affecting productivity of
employee sin building construction projects in Addis Ababa from construction
company executive‟s perspective.
Based on the above main objective of this study and the problem statement,
the study will have the following specific objectives:
1.To make assessment son the major factors that can improve productivity of
employees working on building projects in Addis Ababa.
2. To evaluate the status of employee‟s productivity in building construction
Projects in Addis Ababa?
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3. To identify the priorities of construction firm‟s executives among the factors
that affect productivity of employees in building construction projects in
Addis Ababa
- The first reason, to limit the scope and focus on evaluating only executives
views about factors affecting employees productivity on building projects is, the
motive that executives are the one who knows most about the rate of
productivity of employee‟s in the sector.
- The work experience of the researcher on building projects is the other reason.
- The third reason is associated with the number of activities, work divisions and
human intensive involvements in building projects, which is much higher than
those in road or other projects.
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1.7 Significance of the study
Chapter Four will present data analysis and interpretation. And the last
chapter will present conclusion and recommendations.
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Chapter Two
4.1 Introduction
This chapter presents the findings from different reviewed literatures on the
subjects of construction, productivity improvement factors and techniques of
employees and evaluation of productivity from the point of views of company‟s
executives. The project management system of any project depends on the type
and methods of construction, the stage of construction, the type of contract
and delivery system and project type and complexity etc. Similarly the
productivity of employees also depends on factors similar to the project
management system. Hence, this part of the literature review will try to
highlight the issues in relation to productivity of human resource with the
main focus being on productivity of employees in building construction projects
and the views of executives about it.
The result of improper handling and managing of the human aspect on site
during construction process will influence the productivity, total project cost,
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time and quality. Leading management thinkers suggest that “it is not
technology, but the art of human- and humane-management” that is the
continuing challenge for executives in the 21st century (Drucker, Dyson,
Handy, Saffo, & Senge, 1997). Similarly, (Smith and Kelly 1997) believe that
“future economic and strategic advantage will rest with the organizations that
can most effectively attract, develop and retain a diverse group of the best and
the brightest human talent in the market place”.
4.4 Productivity
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4.5 Historical Development of Productivity
Productivity has been a major concern for long. Since (Adam Smith‟s work on
division of labor 1776), people have sought for methods to improve productivity
by organizing human efforts, such that their outputs will be maximal (Brief
A.1984).Frederick (Taylor,1911) worked on improvement of work methods to
help improve productivity. His principles of scientific management
revolutionized manufacturing. His contribution was the belief that
management should assume more responsibility for: Matching employees to
the right job, providing the proper training, providing proper work methods and
tools, establishing legitimate incentive for work to be accomplished. A scientific
approach to the analysis of daily work and the tools of industry frequently
increased productivity by 400% (Heizer J and Render B.1999)
(Lilian and Frank Gilberth,1992) carried out motion study and sought to cut
out unnecessary motion in an effort to increase labor productivity and make
work simpler for manual works.
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Method study- is often called motion study, method analysis or method
engineering is the systematic recording and critical examination of existing and
proposed ways of doing works in order to develop and apply easier and more
effective methods and reduce costs. It is used to improve processes and
procedures, plant layout, design of plant and equipment, to reduce human
efforts, use of materials, machines, manpower and to develop better physical
and working environment. Method study is a complex technique that combines
several simple tools, mostly charts, diagrams and other recording techniques
such as analysis of films. Using films to analyze motions, general and specific
questions to analyze and indicate purpose, place, sequence, person and means.
Pareto analysis- is named after an Italian economist, who noted the principle,
often called the 80/20 rule that 80 percent of the results come from 20 percent
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of the efforts. It is a useful tool for productivity analysis since it concentrates
attention on the most important few issues or problems and helps to establish
priorities. The basic steps of Pareto analysis are:
6. Repeat steps 1-4 for the items studied, the previous steps have all related to
cost: we now need to relate the “ABC” aspect to the percentage of items
contained in each category.
There are three main productivity factor groups (kopen2007): Job related,
resource related, and environmental related. These factors can be either
internal (controllable) or external (not controllable).
Hard factor, which are not easily changed and includes product, plant
equipment, technology, materials and energy consumption.
Soft factors are those that are easily changed and include people,
organization, system, work methods, and management styles. People are
principal resources and the central factor in productivity improvement roles to
play. Each role has two aspects: application and effectiveness.
Effectiveness- is the extent to which the application of human effort brings the
desired result in output and quality. This is a function of method, technique,
personal skill, knowledge, attitude and aptitude.
- Career planning
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The following key approach, methods and techniques can be used to improve
labor productivity: Wages and salaries, training and education, social security
such as pensions and health plans, rewards, incentive planes, participation
and codetermination, contract negotiations, attitude to work, to supervision
and to change, motivation for higher productivity, co-operation, organization
development, improved communications, suggestion systems, career planning,
attendance turnover and job security.
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4.7 Construction in Ethiopia
The construction industry has feature that are not usually encountered in
other industries. Some of the unique features includes; its difficulty to use
mass production techniques due to the variability of the construction site not
custom oriented,(Hillson D2009 ), have specific project characteristics, and
circumstances can influence it, involvement of different stakeholder who may
have competing expectations that might create conflicts within the project.
(Copare1990), stated that, the number of business failures in the construction
industry is high and the high failure rate is not because contractors do not
know the techniques of construction but rather they have not developed their
management skills. Among such skills, management to improve productivity of
employees is one of the key elements.
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4.8 Conceptual framework
Motivation
Innovation and
Productivity
creativity
of Supply
Employees
Competence
Supervision
Maintenance
And
Management
Research model
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Chapter Three
5 Research approach, Methodology and Design
5.1 Research Approach
Research is a process of collecting, analyzing and interpreting information to
provide solutions to questions or problems, (Kumar, 1999). In inductive
research, the goal of a researcher is to infer theoretical concepts and patterns
from observed data. In deductive research, the goal of the researcher is to test
concepts and patterns known from theory using new empirical data, (Anol
Bahattacherjee,2012). For the purpose of this study, research is defined as a
practical investigation to find out new facts or assemble old facts by scientific
ways for the purpose of developing existing theory or its application for real
problems. Accordingly, this research has explanatory approach.
Research Methodology
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5.2.1 Study Sites
This study was carried out between November 2015 and May 2016 on building
construction projects in Addis Ababa. Since the construction practice in other
parts of Ethiopia is similar, special emphasis were made onprojects in Addis
Ababa to represent the cases in Ethiopia. All national construction firms whose
grades are from 1 up to 3,and renewed their license up to April 2016 are
included in the study.
5.2.2 Target population
Construction firms in Ethiopia must be registered and licensed by the Ministry
of Urban Development housing and construction (MUDCO) in order to
undertake any construction work in Ethiopia. The Ministry has placed the
basic human and equipment requirements to attain different licenses with
different grades and only when these conditions are fulfilled the qualified firms
/people or companies\ be allowed to participate in the industry. Construction
firms are classified based on trend of work as follows: General
Contractors,(GC), Building Contractors,(BC), and Road Contractors,(RC). Each
category is classified into ten grades according to size, expertise and financial
capability requirements set by (MUDCO). Accordingly there are 146Grade one,
60Grade two, 82 Grade three, Contractors renewed their license for the current
budget year at the federal level.
The population of the study comprises executive bodies of contractors who are
involving in the building construction process in Addis Ababa. Since the
construction practice in other parts of Ethiopia is similar, observations were
made in building construction projects in Addis Ababa to represent the cases
in Ethiopia. The executives are considered as one of the key players in the
industry and are the one who knows most about the industry. Questionnaire
were distributed for either managers, deputy managers or any one represented
as executive of the construction company, working on building construction
projects in Addis Ababa.
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Construction Cost (Birr)
Categories Grade BC RC GC
Table: - 3.1 Construction cost limits for grades of BC, RC and GC [source
(MUDCO, 2015)
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5.3 Sample Size Determination
In order to evaluate and assess the current productivity level of employees in
construction on selected building projects in Addis Ababa, a wide range of
Construction parties were targeted.
In this research, the population includes executives of first, second and third
category Contractors. The firms included in this study are those that have valid
registration for the current budget year by MUDCO in Addis Ababa. The main
reason for purposively selecting only those categories of companies and their
executives are; most of them have more than hundreds of employees, their
sufficient experience in building construction compared to the remaining firms,
their relatively better managerial capability and having more than one hundred
million Birr contracting amount capacity.
Total number of 288 executives leading and administering Grade 1,2 and 3
contractor companies executive‟s involving in building constructions in Addis
Ababa are considered as study population.
The sample population was distributed between contracting companies based
on correction for finite sample equation. The following equation is used to
determine the sample size of each category contractor (Al-Moghany, 2006).
( )
………………………..Equation (1)
Where SS = Sample size
Z = Z value (e.g. 1.96 for 95% confidence level)
P = percentage picking a choice, expressed as a decimal (0.50 used for sample
size needed).
C = margin of error (9%)
( ) ( )
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Correction for Finite Sample:-
------------------------------------ (Equation 2)
( )
Based on the sampling method and criteria cited above, the researcher selected
eighty two (82) construction company‟s executives.
Purposive and random sampling techniques are used to select the respondent
executives‟ of the specified contractors‟ firms. According to (Walliman,2005),
purposive sampling is a useful sampling method which allows a researcher to
get information from a sample of the population that one thinks knows most
about the subject matter.Sampling for this study was conducted for executives
of contractor firms. The sampling for the study was selected at two levels.
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Secondly, having selected the construction firms, the researcher randomly
selected eighty two (82) respondent executives representing the selected
companies based on the above sample size determination formula.
It is the 'what', ”why”, ”how” or 'who' that was studied. In this research, ordinal
scales were used. Ordinal scale is a ranking or a rating data that normally uses
integers in ascending or descending order. The numbers assigned to the
agreement or degree of influence (1, 2, 3, 4, 5) do not indicate that the interval
between scales are equal, nor do they indicate absolute quantities. They are
merely numerical labels. Based on Likert scale the researcher has the
following:
Scale 5 4 3 2 1
From literature review it has been discussed factors which affect productivity of
the labor force in construction sites. 61 factors, from the perspective of
executives that have impacts in productivity of employees in building
construction sites in Addis Ababa have been selected.
It also indicated the need for the addition of other questioners. Rearrangement
of questioners was also made after the pilot test. Based on this the final
questionnaire containing41 factors influencing productivity of employees from
the perspective of firm‟s executives were prepared and distributed.
Respondents were asked to fill the questionnaire and they have assured that
the information will be confidential and only for research purpose.
The results from the document review/desk study and questionnaire were
presented, interpreted and analyzed in detail by SPSS version 23 software. To
summarize the collected data both descriptive (tables and figures) and
inferential statistics are used.
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5.8 Rating Scale
Rating scale is one of the most common formats for questioning respondents
on their views or opinions of an event or attribute. In this regard, participants
were asked to indicate agreement or degree of influenceof factors (research
variables) by rating them on a five point scale, (1= strongly disagree,2 =
disagree, 3 = nutral,4 Agree and 5 = strongly agree). This statistical technique
is intended to establish the importance of the factors. Each of the factors
has been assigned an importance index or degree of influence index, to help
rank them according to their importance, as follows.
Importance index = (Σi=0 Wi x fxi) x100) ...................................... [4.1]
3n
Where Wi = weight given to Ith response; i = 1, 2, 3, 4,5
fxi = Responses frequency
n = total No of responses (67 responses)
For example the importance index of the first factor “payment is made on time”
is calculated as shown in Table below.
Total
67 216
The ranking format is used for analyzing question in which respondents were
asked to place a set of attitudes in ranking order, indicating their importance
priorities or preferences.
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Chapter 4
Total 82 67 82%
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incompleteness. The effective response rate was 66 or 82%. This was believed
to be acceptable for the research. The information obtained from the
respondents is summarized using frequency distribution by using SPSS 23.0
As presented in the table above, the summary of figures from the respondent
executives indicates that 34 % of the respondents are executives of grade 1
construction companies, where as 21% of the respondent executives are
leading grade 2 construction firms and 25 percent of the respondent executives
are from grade 3 construction firms. This indicates that majority of the
respondent executives are from grade one construction companies.
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Table 4.2 what is your gender
29
there are also high school and elementary school educated executives leading
construction companies.
4.5.Years of Experience
30
4.7 Productivity
Total 70 100.0
Total 70 100.0
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Table 4.9Timely pay and other motivations
Table 4.10.Safety&Security
When respondents were asked about the concern of safety and security in their
construction firm‟s for employees more than 55% of the respondent executives
do not agree about the presence and practices of employee‟s safety and security
32
in their organizations. About 43% of the respondents agree to the existence of
safety and security practices in their firm.
When respondents were asked about other motivational schemes for employees
such as bonus for major work performances, more than 60% of the
respondents on average do not agree about the implementation of such
motivational factors.
This indicates that even though motivation sis basic to all human behavior and
thus to efforts in productivity improvement, it does not get significant attention
in construction companies.
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Table 4.12. Demonization factors
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4.13. Timely Monitoring &Evaluation plan-
The table above presented the existence of timely monitoring and evaluation in
individual organizations under this study. About 70% of the respondents said
there is no proper and timely monitoring and evaluation plan in their
organizations while the remaining 30% said there is timely monitoring and
evaluation plan in their respective organizations. The result indicated, most of
the target construction companies do not have a timely monitoring and
evaluation plan which help them properly track their achievements and key
indicator for their productivity.
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4.14. Waste reduction and management of construction materials
As shown in the bar graph below most of the respondents believe that their
organization do not have strict way to properly manage their construction
materials and reduce wastage. As wastage one major factor to reduce
productivity of construction outputs, construction companies need to improve
their management towards reduction of construction materials as well time
wasted as a result of improper handling and management of human resource.
Total 70 100.0
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4.2 Mean rank and importance index of major groups of factors
Importance Rank
Motivation related factors Mean index
Payment in my organization is paid in a timely 1
3.7910 87.8
manner
My organization motivates workers by giving pay
cheques (bonus) when they do major 2.7612 63.96 7
construction works
Communication in my organization regarding
measurement, promotion, etc.. is transparent 2.5672 59.47 8
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time payment to 54.7% for the availability of capacity building schemes such
as on job training, mentorship etc. in their organizations. Other motivational
factors like transparency of measurement to measure employees, equal and
fear treatments have got medium attention.
Motivation of employees such as material incentives, money reward,
recognition, involvement and learning opportunities, eliciting co-operation and
participation from workers in goal setting, incur aging workers to apply their
creative talents can improve productivity of the construction sector, but the
result from respondent executives indicate that motivation is not commonly
practiced in the industry compared to the importance index of other factors.
Importance
Supervision and Management related factors Mean index
We know where the direction of our org. in five years is
3.8955 90.24
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Respondents rated company goal setting, 90.24% as the highest important
factor for in efficient productivity. Second to this the existence of standard for
volume and quality of work measured in time to be accomplished by employees
with importance index of 84.02%. Having daily, weekly, monthly work plan
comes in the third place. Among supervision and management related factors
affecting productivity of employees, compliant management system is rated as
the least in the rank. Providing orientation for new employees at entry and the
implementation of timely monitoring and evaluation are rated 52.9% and
58.78% respectively. The result revealed that construction companies lack the
proper practice of supervision and management as a result cannot track their
achievements and key indicator for their productivity.
The survey results indicated that, respondents allocate high importance to,
demotivating factors compared to other factors. This indicates that majority of
respondents believe that demolition of works due to faulty designs, design
changes, misinterpretation of designs, poor quality of construction material,
poor workmanship and other problems are significant demotivating factors for
their workers. Equipment breakage and out of order machineries are the main
de-motivating factors for of the respondents above all the factors in this
40
category. Majority of the respondents also believe that bad weather negatively
affects their productivity.
Importance
Innovation and creativity Mean index
Factors related to innovation and creativity, as indicated in the table above are
rated as least priorities by respondents. When they were asked if their
organization strives to achieve and supply automation mechanisms to enhance
performance of the work process, their importance index is 71.54%. In
comparison to other factors, this indicates lower preference of respondents
towards it. The other factor, application of strict waste management reduction
and management of construction materials has got even more less priorities by
respondents. The overall implication of loss of interest to focus much on
creativity and innovation related factors will hamper the productivity of labor.
41
Importance
competence related factors Mean index
workers encouraged to communicate to
improve productivity 4.2537 98.54
Encouraging people with exceptional technical skill has also relatively higher
preferences by the surveyed respondents. From these it is possible to deduce
that competence related factors have got higher concerns among the surveyed
construction company executives.
Importance
Construction materials supply and maintenance Mean index
Construction input materials (eg cement , aggregate,
re-bar, electrical, sanitary, finishing, etc…) are
3.2985 76.41
available on site up on need
Table 4.2.7. Over all Mean Rank of Factors affecting Productivity of employees
The overall mean rank and importance index of factors affecting productivity of
employees in the construction sector are summarized as below in table 4.2.7.
The responses from questionnaire analyzed in detail by SPSS version 23
software. The mean rank and index data are the results of analysis of the data
collected through the research questionnaire. To arrive at the mean rank and
priority index summarized table, descriptive statistics analysis methods are
used.
Priority index is used for analyzing question in which respondents were asked
to place a set of attitudes in ranking order, indicating their importance
priorities or preferences. Accordingly, the factor, Workers encouraged to
communicate to improve productivity has got the highest priority index(98.54%) and to
the other extreme, the other factor, whenever there is compliant there are
management mechanisms has the least(52.2%) priority index as pointed out in the
table below. The other factors that affect productivity of the labor for in the
construction sector particularly on building construction projects are ranked in
descending orders based on their mean and priority index results.
43
Mean rank and importance index of major Factors affecting Importance
productivity of employees in construction Mean index
Workers encouraged to communicate to improve productivity 4.2537 98.54
I usually get discouraged by equipment breakage and out of order
4.1538
machine 96.22
Experience of professional boosts productivity 4.0149 93.01
We know the direction of our company in five years 3.8955 90.24
Payment is paid timely 3.7910 87.82
Company encourages people with exceptional technical skill 3.7576 87.04
Bad weather hampers construction works 3.6418 84.36
There is a standard for volume and quality of work in time 3.6269 84.02
There is work load in my organization 3.4627 80.21
Construction inputs are available up on need 3.2985 76.41
Our company have daily, weekly, monthly, work plans 3.2836 76.06
I get demotivated because of demolition and rework of substandard
3.2687
work 75.72
Sufficiency of human resource on site on demand 3.2537 75.37
Everybody treated fairly in my org 3.2090 74.34
There is incentives such as leave health insurance in my org 3.1791 73.64
Effective design standard are put in place in my org. 3.1045 71.91
Use of digital technology 3.0896 71.57
Is your salary sufficient 3.0299 70.19
Machineries and equipment maintained timely 3.0299 70.19
Happy in my job regardless of payment 2.9701 68.80
Safety and security is a concern 2.8806 66.73
Tools and equipment‟s available for my work 2.8209 65.34
I feel that most of the workers are honest 2.7761 64.31
pay cheques (bonus) eventually for major performances 2.7612 63.96
Employees feel responsibility for success and Failure of the org 2.6515 61.42
Managers are keen to coach and mentor workers 2.6119 60.50
Communication is transparent in my org 2.5672 59.47
There is timely M&E plan 2.5373 58.77
The company applies strict waste reduction and management 2.4925 57.74
Capacity building scheme are available in my org. 2.3731 54.97
There is orientation at entry for employees 2.2836 52.90
Whenever there is compliant there is management mechanisms 2.2537 52.20
Table 4.2.8. Over all Mean Rank of Factors affecting Productivity of employees
44
CHAPTER FIVE
Conclusion and Recommendation
5.1 Conclusion
The study found out major results concerning importance and priorities given
to factors affecting productivity of employees in building construction projects
from the point of views of construction companies‟ executives. Some of the
major results include:
Factors such as encouraging workers to communicate each other to share
ideas and skills, demotivating factors such as equipment breakage and rework
of substandard works, employing experienced and skilled workers have got
higher priorities.
45
innovation related factors consequently hampers the productivity of labor
output.
Proper and timely Supply of construction input materials, maintenance and
availability of construction machineries are given relatively medium priorities.
This study provides new insights into understanding of the factors that affect
performance, and productivity of employees in construction projects. The level
of understanding and priorities given by construction company‟s executives to
these factors is also evaluated. The research has important implications to
construction, design, consulting and supervision companies. Policy makers can
also use it as input in the planning and developing of activities that raise
productivity of the labor force in the construction sector to positively enhance
productivity. Besides, this research also stressed the importance of enhancing
knowledge of company executives, core staffs, and employees and, other actors
to realize and make use of factors contributing to labor productivity.
46
5.2. Recommendations
47
holders to infuse dynamism in the economic activity of the construction
sector.
As revealed by the results of this survey, contractors should give especial
emphasis to identify, analyze and implement those factors affecting
productivity of the human aspect.
This research has explored factors of national contractors' practice, with regard
to factors affecting productivity of employees from the points of views of their
executives. The research has also forwarded recommendations to improve the
practice and obtain improved result. However, the issues covered by the
research are so vast that it became difficult to present all relevant interventions
in a comprehensive and exhaustive manner. On top of that the research was
conducted from the perspectives of executives. Therefore, the following points
are recommended to be assessed in detail, as they can be focal points for
further research, to improve productivity:
The application of monitory and non-monitory motivational schemes from
the employees perspective
It would be interesting to explore the factor variables further to learn more
about employees productivity applying the factors more exhaustively.
It would also be interesting to explore the factor variables from the
perspectives of employees and clients of construction projects.
48
REFERENCES
DerejeKidane (2003). Contractors’ Entitlements under ‘FIDIC 87’ and ‘FIDIC 99’.
EACE
Bulletin, Vol. 5, No. 1, Addis Ababa.
http://www.Ethiopiahot.worldpress.comhttp://www.google.com.et/url?sa=t&r
ct=j&q=prevention%20of%20accident%20in%20constructi
51
ANNEX
1 Questionnaire for Primary Data Collection
How many years have you been working as an executive in the construction
sector
1. 5-10 years2. 10-15 years 3. more than 15 years
Do you have any intention to change your job in the coming 12 months?
1. Yes 2. No
55
MINISTRY OF CONSTRUCTION
A B C D E
1 Radar Construction --- 2636 BC-1
2 Yirgalem Construction P.L.C. 09296 0871 GC-1
3 CRBC Addis Engineering PLC --- 1846 GC-1
4 TikuBerhane Building Contractor --- 3025 BC-1
C.G.C. OVERSEAS CONSTRUCTION ETHIOPIA
5 13276 4146 GC-1
LIMITED
6 Amahara Road Works Enterprise -- 5039 GC-1
7 Yeshi PLC 13303 5310 BC-1
8 KassahunAbeje Building Contractor 13325 2648 BC-1
9 Roel Construction 13333 3574 BC-1
10 Samket Engineering & Construction PLC 07695 4865 BC-1
11 Cobalt Construction PLC 13387 4968 BC-1
12 BelayenehTesfaye 13474 0869 BC-1
13 Orrix Construction PLC ---- 9428 BC-1
14 Dugda Construction PLC 08581 5717 BC-1
15 SA Construction P.L.C. 01095 2108 BC-1
16 GutemaFirisa Building Contractor 13633 10228 BC-1
Geom Luigi Varnero P.L.C (Alber to Varnero)
17 11353 746 GC-1
18 Yotek Construction PLC -- 0799 GC-1
19 SA Construction P.L.C. ---- 2108 BC-1
20 MEDCON Engineering and Construction PLC --- 3986 RC-1
21 Jafar Construction & Real State 13759 2914 BC-1
22 EL General Business PLC 13788 4345 BC-1
23 TilahunAbebe General Contractor 10970 4569 GC-1
56
24 AbebeGirmaye Building Contractor -- 7761 BC-1
25 Megelta Construction PLC -- 4415 BC-1
26 Zamra Construction PLC -- 0620 BC-1
27 Yirgalem Construction PLC --- 0871 GC-1
28 TamratTemesgen Building Contractor 13904 0668 BC-1
29 AhmetAydeniz Construction --- 5580 GC-1
30 Anchor Foundation Specialist PLC 10526 8220 SC-1
31 Mohammed Abas 13985 3391 BC-1
32 Amhara Water Works Enterprise Construction -- 5617 GC-1
33 ATS Engineering PLC -- 2821 BC-1
34 Capstone Engineering 11144 2027 BC-1
35 YemaneGirmayBisrat General Contractor -- 3393 GC-1
36 Melcon Construction PLC -- 4991 GC-1
37 BereketEndashaw Building Contractor -- 3749 BC-1
38 Magercon P.L.C. --- 0605 BC-1
39 Justice Building Contractor P.L.C. 10301 3100 BC-1
40 Mohammed YesufeEshete --- 3288 BC-1
41 YaredTekelemedhinMengistu 14144 5201 GC-1
Afro Tsion Construction P.L.C. (SisayDesta
42 G/Yesus) --- 0380
GC-1
43 GemshuBeyeneBotte 11542 2758 GC-1
44 Samson G/Yohannes Building Contractor 06050 0984 BC-1
45 BerhanTobiawMareye --- 0009 BC-1
46 AberaLisanu Building Contractor --- 3077 BC-1
47 Mela Engineering & Construction P.L.C. --- 1427 BC-1
48 Bermog Construction PLC 14236 10566 GC-1
49 Rama Construction PLC --- 0915 GC-1
50 HawaAdemMusse ---- 4421 GC-1
51 Giga Con.P.L.C. (G/HiwotGirmay) ---- 0659 GC-1
52 Data Construction PLC ---- 0041 BC-1
53 Sur Construction PLC --- 0876 GC-1
54 BekeleSorsa Building Contractor --- 2974 BC-1
Lucy Engineering P.L.C. BC-1
55 --- 2869
56 Equator Engineering Construction PLC --- 0938 BC-1
57 Koracon Construction --- 0645 BC-1
58 Alas Construction PLC ---- 3383 BC-1
59 Universal Construction P.L.C. -- 0028 BC-1
60 SATCON Construction 14451 0774 GC-1
57
1073
62 --
EmneteEndeshaw General Contractor GC-1
63 Beaeka General Business PLC 09976 6034 GC-1
64 Bamacon Engineering P.L.C. --- 2604 BC-1
81 -- 6090 GC-1
Aser Construction PLC
82 Yohannes Haile Building Contractor -- 3675 BC-1
83 Amhara Building Works Construction Enterprise 14708 10866 BC-1
84 GAD Construction PLC -- 0993
BC-1
85 Fal General Contractor 14233 2784 GC-1
86 Bright Construction PLC -- 0599 BC-1
87 14725 0283 BC-1
Santa Maria Construction P.L.C.
88 Sina Construction P.L.C. --- 4745 BC-1
89 Crafts Construction PLC --- 2230 BC-1
90 Atem Building Contractor -- 1650 BC-1
91 DesalegnAsradeKassa -- 0064 BC-1
GC-1
92 -- 0135
Sunshine Construction
93 TIKS Construction -- 5320
BC-1
94 Dini Construction 12947 4741 BC-1
58
95 Bereka Construction 14911 0821 BC-1
96 3M Engineering & Construction PLC 14910 0086 BC-1
Rediete-Dagem Engineering & Construction P.L.C. BC-1
97 05421 0265
TeklehaimanotAsgedom Building Contractor BC-1
98 09517 0515
Ziquala Building Contractor BC-1
99 10120 1172
59
128 AyenalemeGashaweAriga ---- 3253 BC-1
129 TewodrosAbera General Contractor ---- 0778 GC-1
Unity Engineering P.L.C (AssefaDemssie)
130 -- 1031 BC-1
131 Samson Chernet Road Contractor 11889 4490 GC-1
RC-1
132 Senan Construction P.L.C. 01208 3152
28 14768 3925
Solomon Tilahun Building Contractor BC-2
29 -- 6729
TesfayeLegesse Construction GC-2
30 GashawMelese Building Contractor 14779 0327 BC-2
31 Select Construction PLC -- 4787 BC-2
BC-2
32 -- 4384
Haverim Construction
33 Fidel Con Engineering P.L.C. -- 4300
BC-2
34 WorknehMekonnen General Contractor 14860 4747 BC-2
35 MetaferiaKifle Building Contractor 10122 1134 BC-2
AfeworkGideyBerhe GC-2
36 10685 2584
61
51 PaulosZelekeGizaw 09858 6612 BC-2
52 Tefera Michael Wajebo 15771 3940 BC-2
53 12521 0416 BC-2
Daniel Berhe G/Medhin
54 -- 1106
CherenetChaneYimer GC-2
55 Mod Con Engineering P.L.C. 15823 4734 BC-2
56 EneyewAlemu Building Contractor -- 1816 BC-2
57 09898 7824
TewoldeGidey Construction BC-2
58 Safer Construction 15926 2040 GC-2
59 ZelekeRediBelachew 10302 7696 BC-2
60 10394 3653
Tedat Construction P.L.C. BC-2
62
24 Samson WoldaySahulu --- 6532 BC-3
25 Bencon Construction 11340 5437 BC-3
26 Hoha Engineering PLC -- 5872 BC-3
27 Ronali Construction PLC 07756 6511 BC-3
28 BekeleBeyore Building Contractor 13927 2338 BC-3
29 EyayuEshete Building Contractor ---- 0464 BC-3
30 HailegiorgisTamerat Building Contractor 10628 0094 BC-3
31 TesfayeAbebe Building Contractor 10139 0446 BC-3
32 AynalemGashaw Building Contractor --- 3253 BC-3
33 Kek Construction & Trading PLC 13990 10499 BC-3
34 Skill PLC 11514 3400 BC-3
35 TesfayeTsegaye -- 4111 BC-3
36 Abaya Building Contractor --- 1011 BC-3
37 KassahunZerihun Building Contractor 14004 3805 BC-3
38 BayrayTadesse Building Contractor --- 0706 BC-3
39 Solomon AbiyeDagne -- 3305 BC-3
40 Serja Construction And General Trading PLC 14100 5805 BC-3
41 Nayom Construction PLC 14096 6712 BC-3
42 Alroy construction PLC 09756 5672 BC-3
43 DawitEmiru Building Contractor ----- 1967 BC-3
44 AyalewAddisu 14199 10525 BC-3
45 YemanTekele Building Contractor -- 7160 BC-3
46 DawitAleneDesta 11155 8637 BC-3
47 GetachewAssefaMekonnen --- 2680 BC-3
48 Nued Construction 14263 8362 BC-3
49 MeyramMahe General Contructor 14257 6002 BC-3
50 AbebeAlemu Building Contractor 0216 BC-3
51 TesfayeKumsa Building Contractor ---- 0733 BC-3
52 Sabeh General Construction PLC 8048 BC-3
53 GetenetTesfayeWube 14306 3107 BC-3
54 Tekrom Construction 14339 1553 BC-3
55 Nisir Construction PLC 7186 7186 BC-3
56 PaulosZelekeGizaw --- 6612 BC-3
57 Akwos Building Contractor 12879 9694 BC-3
58 DebebeKinfe Building Contractor --- 3641 BC-3
59 Dehayeb Engineering 14419 10679 BC-3
60 Huikab Construction Materials Rental PLC 11837 8956 BC-3
61 Mekbet Engineering PLC 11464 5532 BC-3
62 HenokTamiruMentile Construction -- 6123 BC-3
63 Berhane Haile Building Contractor 14498 0527 BC-3
63
64 AlemayehuBayraDaba --- 1911 BC-3
65 AnjeloArsheDiddo -- 0629 BC-3
66 Ahmed WodmatasNuro 14546 6886 BC-3
64