An emprical evaluation of strategic human resource management within construction sites

Strategic Human Resource Management (SHRM) offers a peoplemanagement framework which promotes improved performance, innovation and competitiveness. However, little research has considered how such practices are implemented within Construction SMEs, and whether they complement overall business strategy. The nature of the UK construction industry requires construction organisations to balance project requirements with competing organisational and individual employee expectations, priorities and needs. This conflict raises several complex and problematic issues for SHRM within the construction industry as well as opportunities for improvement. However to date, despite this sector exhibiting the well-known `labour-intensive' and `people oriented' characteristics, there is little informed understanding of the complex interplay of factors that shape strategic decision making processes, and approaches to SHRM within construction SMEs. The overall aim of this thesis was to explore the types of HRM strategies used by construction SMEs and develop a framework to improve their organisational performance. The objectives of the research were: 1) To establish whether construction SMEs undertake strategic management, the types of strategies employed and how they implement their strategies, 2) To establish whether construction SMEs undertake SHRM, the types of strategies employed, how they implement their strategies and whether size of firm influences their practices; 3) Examine the relationship between the different SHRM approaches, the associated strategic organisational goals, in order to establish whether the approaches and goals are mutually supportive; and 4) To develop a framework linking SHRM approaches to specific organisational goals for construction SMEs. The study explored the current SHRM practices of a sample of construction SMEs using qualitative methods. Fifteen exploratory semi-structured interviews with strategic managers from construction SMEs informed six longitudinal case studies which comprised 23 further semi-structured interviews with strategic managers and HR specialists supported by documentary analysis. The framework derived from the results of the research was validated within four other construction SME firms. This thesis revealed the following related to the research objectives: Construction SMEs undertake strategic management, the nature of strategic decision making was often emergent, a wide diversity of types of strategies existed, differentiation strategy was prevalent and the nature of niche markets was wide. Construction SMEs do undertake SHRM, and there is a clear link between the size of the organisation and the approaches used. The larger organisations generally have more sophisticated approaches than smaller organisations. HRM is integrated in the business strategies of construction SMEs to varying degrees. The SHRM processes and organisational structures support the business strategy. Three generic themes for improving integration of the organisation’s business strategy and their strategic approaches were found: Improving the communication of business strategy to their employees; Encouraging employee participation; and Linking SHRM and the business strategy. There is scope for construction SMEs to improve linking their SHRM approaches to specific organisational goals, through the use of a support decision framework designed and refined within this research.