ANALYSIS OF FACTORS AFFECTING HUMAN RESOURCE MANAGEMENT OF CONSTRUCTION FIRMS USING RII METHOD, IMP.I. METHOD AND RIR METHOD

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International Conference on: “Engineering: Issues, opportunities and Challenges for Development”
ISBN: 978-81-929339-3-1
09th
April, 2016, S.N. Patel Institute of Technology & Research Centre, Umrakh, Bardoli 1
ANALYSIS OF FACTORS AFFECTING HUMAN RESOURCE
MANAGEMENT OF CONSTRUCTION FIRMS USING
RII METHOD, IMP.I. METHOD AND RIR METHOD
Dr. Jayeshkumar R. Pitroda 1
, Ashish H. Makwana 2
, Nareshkumar M. Prajapati 3
Assistant Professor, Civil Engineering Department, B.V.M. Engineering College,
Vallabh Vidyanagar, Gujarat, India 1
Assistant professor, Civil Engineering Department, Marwadi Education Foundation,
Rajkot, Gujarat, India 2
Planning & Monitoring Engineer, Patel Infrastructural PVT LTD., Anand, Gujarat, India 3
Abstract: Human resource is required for an organization to conduct different business
activities. Without the support of human resource, the organization cannot exist or operate
effectively. The success of any organization depends on the effective use of human resources.
Human resource is the major contributory force for any kind of organization in India. Due to
this, management of this human resource, i.e. Human Resource Management (HRM) must
have more significance in India. Also, human resources are major risky to manage in the
construction field, as they are not mostly permanent like other industries. Therefore, it is
necessary to analyze the Human Resource Management (HRM) in the construction industry.
However, studies have shown that research on HRM in the project management context is yet
undeveloped and publications are relatively rare and most research simply involves case
studies or expert reports. Past research has been done on HRM are mostly qualitative and
there is a lack of quantitative research. Due to this lack of quantitative research, there is no
good-developed framework for factors affecting HRM in the construction industry. A
framework of human resource management has been developed. This framework contains 73
factors and it is divided in 8 Main Criterias as: (a) Job Analysis and HR Planning, (b)
Recruitment and Selection, (c) Education and Training, (d) Retaining, Motivation and
Performance Appraisal, (e) Compensation and Rewards, (f) Employment Relations, (g)
Health and Safety, (h) Other External Factors. Data is collected through questionnaires and
personal interviews targeting Engineers, Project Managers, HR Managers and Contractors.
All factors affecting HRM have been ranked using RII Method, IMP.I. Method and RIR
Method using the response acquired from stakeholders.
Keywords: Construction Field, Factors, Human Resource Management (HRM), Organization

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I. INTRODUCTION
Human resources are nothing but the personals working in the organizations for
achieving the goals of the business and earning benefits for themselves for their survivals or
for their specific purpose. They may be skilled, semi-skilled or may be unskilled. Human
resource management deals with the management of these human resources for achieving the
desired business goals. Human resource management incorporates the vast fields like
construction, banking, manufacturing, processing, etc. Every type of business includes human
resources in it thus; human resource management is a very important component of the every
type of organizations in today’s developing world. It deals with the vacancy identification,
recruitment and selection, retention of employees, motivation, etc. Thus, it deals closely with
effective utilization of human resources of a business. So, human resource management is the
unavoidable component in every business because without it we cannot get the work done,
which may lead to un-fulfillment of the goals of a business.
II. NEED OF THE STUDY
Human resources are the major risky to manage in the construction field, as they are not
mostly permanent like other industries. They may change from project to project, place to
place, time to time and also with respect to the type of work. Therefore, factors influencing
human resources management are very much critical for any construction firms. And also, the
studied literature shows that there is a very strong need to carry out this kind of quantitative
study because in the past, there is much rare work has been done like this study. This thesis
deals with the identification of factors influencing effective utilization of human resources
(which is to be carried out by human resources management) in the construction firms and
develops a model for future use in study in the area of HRM in the construction. Thus, it is
very worthy to carry out the research like this is to be done by integrating the past literature,
then developing a model and finally carrying out the investigation.
III. OBJECTIVES OF THE STUDY
 To identify the factors related to human resource management of construction firms.
 To develop the integrated framework that can be useful in analyzing factors affecting
the human resource management of construction firms.

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 To determine Engineers, Project Managers, Human Resource (HR) Managers and
Contractors perceptions towards the relative importance of the key indicators of HRM
of construction firms in central Gujarat region of India.
 To identify the most significant key indicators of HRM of construction firms in
central Gujarat region of India.
IV.SCOPE OF THE STUDY
The scope of this research work of development of human resource management is
considered for four cities of Central Gujarat Region of India: Ahmedabad, Nadiad, Anand,
and Vadodara.
V. SURVEY WORK AND DATA COLLECTION
The data collection to determine the most influential factors on HRM practices of
construction firms was done through a survey by explorative questionnaire to the respondents
involved in daily activities of construction firms in various regions in the central Gujarat
region of India. The questionnaire was designed so that respondents can give the rank to their
answers based on the Likert scale. The analysis of these data was done by Relative
Importance Index (RII) method, Important Index (IMP.I.) Method, Relative Importance
Ration (RIR) Method using Microsoft Excel.
VI.SAMPLE SIZE CALCULATION
To obtain statistically representative sample size of the population, following equation 1
is used:
………………………………….……………………………................. (1)
Where, n, m and N represents the sample size of limited, unlimited and available
population respectively. Here, m is calculated by following equation 2.
……………..………………………….………………................... (2)
Where,
z = the statistic value for the confidence level used, i.e. 1.96 and 1.645 for 95% and
90% confidence level respectively

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p = the value of the population that estimated
e = the sampling error to estimated, because the value of p is unknown.
(Sinich et al. (2002) suggest the value 0.5 to be used in sample size.)
According to the targeted City and Stakeholders, the total no. of available population
comprises of 618 construction firms. Table-1 represents the distribution of the sample
population among the cities considered for the study. The number of construction firms for
Ahmedabad, Anand and Nadiad are taken from the list of registered contractors of Road and
Building Department of Gujarat. The number of construction firms in Vadodara is taken from
the list from yellow pages.
TABLE 1: - POPULATION DISTRIBUTION AMONG THE AREA OF STUDY
City Construction Firms Source
Ahmedabad (a) 355 Road and Building Department, Gujarat
Anand (b) 98 Road and Building Department, Gujarat
Nadiad (c) 55 Road and Building Department, Gujarat
Vadodara (d) 110 Yellow Pages
Total (a + b +c +d) 618
Thus,
Here, the confidence level is taken as 90%.
Thus, contact with minimum 62 respondents of construction firms must be made for this
study. To overcome the risk of not responding from the respondents and to reflect higher
reliability and benefits for the study, the sample of 70 construction firms is considered and if
possible, more than these respondents shall be contacted.

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VII. QUESTIONNAIRE DISTRIBUTION AND COLLECTION
The questionnaire was distributed to various stakeholders by informing them regarding the
purpose of the research and asking them about their willingness to participate in the research.
Once the initial willingness was shown by the respondents, a questionnaire was given to
them. Total 120 questionnaires were distributed to different respondents in Ahmedabad,
Nadiad, Anand and Vadodara District. Total 95 respondents provided their response for this
research work. Fig. 1 represents the distribution of responses throughout the area of the study.
Figure 1: City wise Distribution of Respondent
Figure 2: Stakeholder wise Response Rate
Figure 3: City wise Response Rate

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VIII. RANKING METHODS
A. Relative Importance Index (RII) Method
Relative Importance Index method helps to determine the relative importance of the
various factors affecting HRM of major construction firms. The six-point scale ranging from
1 (No impact on HRM) to 6 (Very high impact on HRM) is adopted and it is transformed to
relative importance indices (RII) for each factor as follows:
.....………………………………………………………………………... (3)
Where:
W = the weight given to each factor by the respondents and ranges from 1 to 6
A = the highest weight = 6
N = the total number of respondents
B. Importance Index (IMP.I.) Method
Assaf and Al-Hejji (2006) used this Importance Index (IMP.I.) as a function of severity &
frequency to rank the causes of delay of large construction projects of Saudi Arabia.
1) Frequency Index (F.I.): A formula is used to rank risk event based on frequency of
occurrence as identified by the participants.
……………………………….………….. (4)
Where,
a = constant expressing weighting given to each response (ranges from 1 for rarely
upto 4 for always)
n = frequency of the responses
N = total number of responses
2) Severity Index (S.I.): A formula is used to rank risk event based on severity as indicated
by the participants.
………………....……………………….. (5)
Where,
a = constant expressing weighting given to each response (ranges from 1 for little upto
4 for severe)
n = frequency of the responses
N = total number of responses

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3) Importance Index (IMP.I.): The importance index of each event is calculated as a function
of both frequency and severity indices, as follows:
………………………......……………………….. (6)
C. Relative Importance Ratio (RIR) Method
Haseeb et al. (2011) applied this statistical formula to find out the relative importance of
different causes of delays and effects in construction projects of Pakistan.
……….......……………………….. (7)
Where,
RIR = relative importance ratio (ranging from 0 to 1)
PR = percentage of respondents
I = importance
TR = total respondents
In the RIR value, zero is not inclusive. Lower the RIR value, higher the effective or
important the variable.
TABLE 2:- RANKING BY RII, IMP.I. & RIR METHODS FOR OVERALL RESPONSE
Group
SN. Factors RII Rank IMP.I. Rank RIR Rank
A 1 Regular job analysis 0.9456 13 79.4044 23 0.1782 13
A 2 Regular human resource planning 0.9316 17 90.0942 9 0.1816 19
A 3 Emphasis on service employees 0.7491 53 39.5464 70 0.2271 56
A 4 Human resource information system 0.7895 48 43.7825 67 0.2147 51
A 5 Employee attitude surveys 0.8018 47 57.5048 56 0.2121 49
B 6 Number of Job Applications 0.7088 58 51.2978 63 0.2608 66
B 7 Tests and Candidates Assessment 0.9281 18 89.4391 10 0.1824 20
B 8 Recruitment Policy 0.8825 26 68.0609 38 0.1919 29
B 9 Efforts in Selection 0.9263 19 80.5000 22 0.1814 18
B 10 Amount of Money Spent on process 0.8263 41 64.8276 46 0.2053 45
B 11 Education of Candidates 0.8789 27 73.8262 32 0.1909 26
B 12 Working Experience of Candidates 0.9895 2 97.1219 1 0.1688 2
B 13 Language knowledge of Candidates 0.7333 54 53.8068 61 0.2314 60

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B 14 Technical knowledge of candidates 0.9596 8 94.5208 3 0.1753 8
B 15 Members of selection team 0.8544 35 58.8158 54 0.1970 37
B 16 Poor communication 0.8474 37 59.6510 52 0.2026 42
B 17 Social background of candidates 0.7000 60 32.4391 72 0.2688 68
B 18 Type of work 0.8684 31 70.1053 34 0.1942 32
C 19 Quality of Programmes provided 0.9614 7 90.4709 8 0.1758 10
C 20 Adequacy and Quantity of Programmes 0.9526 11 88.4003 12 0.1761 11
C 21 Attendance of workers 0.8053 46 55.3795 59 0.2133 50
C 22 Money spent on Programme 0.8105 45 59.0471 53 0.2083 48
C 23 Kinds of training 0.8316 40 65.2452 45 0.2044 44
C 24 Opportunities for training 0.8193 44 68.0554 39 0.2067 46
C 25 High priority on training 0.7772 51 56.3560 57 0.2191 53
C 26 Systematically structured training process 0.9719 4 95.0582 2 0.1723 4
D 27 sufficient work to workers 0.7526 52 55.4460 58 0.2279 57
D 28 Hygiene Environment 0.8579 34 75.5319 28 0.1961 36
D 29 Good Working Culture 0.9509 12 87.2839 14 0.1765 12
D 30 Paying competitive wages 0.9789 3 95.0582 2 0.1709 3
D 31 Timely payments 0.9404 15 88.6565 11 0.1793 15
D 32 Providing PF 0.7281 55 48.7770 65 0.2355 62
D 33 Employees’ opinion and ideas 0.8737 28 67.9744 40 0.1927 31
D 34 Probability of promotion 0.9404 15 82.1260 21 0.1793 15
D 35 Regular performance appraisal 0.9561 10 86.2105 16 0.1754 9
D 36 Due weight to service performance 0.8649 32 70.7784 33 0.1949 33
D 37 Proper HR information system 0.8930 24 67.1676 41 0.1902 25
E 38 Bonuses 0.8526 36 68.6904 35 0.2001 40
E 39 Incentives 0.7877 49 52.2161 62 0.2158 52
E 40 Pay for performance 0.9351 16 85.2853 18 0.1796 16
E 41 Competitive salaries 0.9684 5 91.5028 6 0.1735 5
F 42 Clearly defined duties 0.9579 9 90.8753 7 0.1751 7
F 43 Accurate job description 0.9649 6 88.1053 13 0.1737 6
F 44 Employees involvement in decisions 0.9053 22 74.8670 29 0.1863 21
F 45 Awareness to the employees 0.8386 39 59.8248 51 0.2006 41
F 46 Involvement in suggesting improvements 0.8614 33 68.2853 36 0.1983 39
F 47 Flexible work hours 0.8439 38 67.1468 42 0.2284 58
G 48 Accommodation 0.7246 56 49.7389 64 0.2334 61
G 49 Job security 0.9281 18 85.2355 19 0.1811 17
G 50 Life security 0.9930 1 93.5277 4 0.1681 1
G 51 Health service 0.9351 16 83.2299 20 0.1796 16
G 52 Insurance 0.8912 25 75.9765 26 0.1911 27
H 53 Trade unions 0.7088 58 48.0789 66 0.2619 67

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H 54 Action by competitors 0.7895 48 54.7507 60 0.2241 55
H 55 Contractual conflicts 0.9211 20 77.7181 25 0.1922 30
H 56 Local government legislation 0.8702 30 75.6150 27 0.2029 43
H 57 Local economic conditions 0.7035 59 43.6267 68 0.2466 64
H 58 Sufficient work to organization 0.9018 23 74.4910 30 0.1869 22
H 59 Knowledge transfer 0.8719 29 68.1025 37 0.1951 34
H 60 Labour strikes 0.9456 13 86.7590 15 0.1870 23
H 61 Extra work 0.7895 48 61.0616 50 0.2212 54
H 62 Large volume of work 0.8579 34 65.8172 43 0.1956 35
H 63 Length of work day 0.7088 58 38.9765 71 0.2392 63
H 64 Rework 0.7825 50 61.8781 49 0.2922 69
H 65 Changing crew members 0.8246 42 57.6316 55 0.2069 47
H 66 Improper crew design 0.9684 5 92.7673 5 0.1737 6
H 67 Firm size (No. of employees) 0.9421 14 85.6704 17 0.1788 14
H 68 Organizational culture 0.8474 37 63.3199 47 0.1972 38
H 69 National policies 0.8228 43 65.2694 44 0.2302 59
H 70 Labour act 0.9175 21 74.3483 31 0.2067 46
H 71 Disputes 0.9281 18 79.3213 24 0.1901 24
H 72 Organizational Unstability 0.8789 27 62.9377 48 0.1916 28
H 73 Political Emergencies 0.7211 57 42.2091 69 0.2562 65
IX.CONCLUSION
 Knowledge of human resource management practices during the overall management
of construction organization and its’ operations can make our ways easy and can
improve the overall performance.
 The results from calculations of Relative Important Index (RII) Method, Importance
Index (IMP.I.) Method, Relative Importance Ratio (RIR) Method from different
stakeholders’ point of view indicates that the most important factors affecting HRM
of construction firms are: Life security, Working Experience of Candidates, Paying
competitive wages, Systematically structured training process, Competitive salaries,
Improper crew design, Accurate job description, Quality of programs provided,
Technical knowledge of candidates, Clearly defined duties, Regular performance
appraisal, Adequacy and quantity of programs, Good Working.
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ANALYSIS OF FACTORS AFFECTING HUMAN RESOURCE MANAGEMENT OF CONSTRUCTION FIRMS USING RII METHOD, IMP.I. METHOD AND RIR METHOD