PROJECT HR PLANNING AND BUDGETING
2ND WEEK – 21-10-2021

THE SUSTAINABILITY OF HUMAN RESOURCE PLANNING FOR CONSTRUCTION
PROJECTS
Introduction:
Effective Planning before implementation is significant for successful delivery of every project but there
are indications of inadequate efforts and time in planning construction projects especially at tender
process.
Nevertheless, the significant factor in implementing organization's planning policy in construction is the
need of each employee performance measurement through effective training.
Objectives:
• To critically review literature relating to challenges of HR planning for construction projects and
develop proper understanding of current situation in Construction industry;
• To collect data from contracting organizations including Wolverhampton city council on challenges of
HR planning for construction projects;

• To analyze data collected and validate a framework that could help stakeholders focuses their
priorities of sustainable HR planning for construction projects.
• To draw conclusions on the relevance of sustainable HR planning for construction projects and makes
recommendations to practitioners and for future research.
Research Questions:
• What is the relationship between HR planning and construction project productivity;
• How can sustainable Human Resource planning be used to improve individual and team performance
at both construction organization and project levels

2.1 HR PLANNING IN CONSTRUCTION
A process that ascertains current and future organizational human resources needs to achieve
organizational goals is described as Human Resource Planning. However, HR planning should be the
link between HRM and the overall organizational strategic plan.
HR planning is a way that an organization estimates the demand for workforce and evaluates its nature,
size and sources of supply to meet the demand.
Nonetheless, construction firms must ensure that current and future market analysis are carried out to
meet functions of HR planning thereby ensuring that right percentage of individuals with right skill are
considered.
2.1.3Internal Availability Analysis:
2.1.4 Employee Turnover Analysis

2.2 SUSTAINABLE HR FOR PLANNING FOR CONSTRUCTION PROJECTS
Project HR manager must possessed wide knowledge about market, product and method the
organization is operating. This will allow project work analysis and labor requirement be carried out.
Techniques and Tools for Project Organizational Planning:
• Project Templates- Since every project is distinctive, definitions of responsibility of a distinctive,
definitions of responsibility of a of organizational planning in a new project.
• Human resource procedures and practices – Many organizations operates different guidelines, policies
and procedure with series of facets of organizational planning that can support project team. Example
is where organizations allow a manager to perform his duties like a coach.
• Analysis of Stakeholder– The needs of stakeholders should be identified, analyzed and met.

2.3 IMPACTS OF SUSTAINABLE HR PLANNING ON PERFORMANCE
• Enhance Technical Performance-
• Increases Technical Innovations-
• Improves Effectiveness In execution Of Project
• Increases Personal Growth
• Boost Business Performance-

CAUSES OF FAILURE OF HR PLANNING
• Poor management and leadership commitment
• Poor organisation’s management support;
• Poor commitment of stakeholders concerning HR practices
• Resistance to change in new HR techniques and tools
• Neglect of significance of HR involvement in a project

CONCLUSION & RECOMMENDATIONS
 The key consideration factors for Sustainable Project HR Planning (Organization's structure with
responsibilities given to right individuals and assessment of current resources) will bring about
putting into practice of new HR Planning technique and tools for construction project.
 Strategic plan should be incorporated into construction organization system;
 HR planning objective should be incorporated into the construction organizational strategic plans
 Concerted efforts should be maintained by strategic decision makers in construction organizations to
encourage contemplative learning and incessant improvements through training for individuals and
teams;
 Sustainable application of HR technique and tools application should be encouraged to assess the
need organization and projects.

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THE ROLE OF HRP
 Definition:
“The process for ensuring that the HR requirements of an organization are identified and
plans are made for satisfying those requirements.”
 Activities involved:
1. Identify and acquire the right number of people with the proper skills.
2. Motivate them to achieve high performance.
3. Create interactive links between business objectives and people-planning activities.

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HIGH COMMITMENT MANAGEMENT STRATEGY
 Create functional flexibility
 Design jobs to provide intrinsic motivation
 Eemphasize team working
 De-emphasise hierarchies and status differentials
 Increase employment security
 Reward people on basis of organizational performance
 Enact organization-specific values and a culture that bind the organization together and
give it focus

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THE HRP PROCESS
Four main categories of staff:
 Existing staff
 New recruits
 Potential staff
 Leavers

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DECISIONS INVOLVED
Category:
Existing staff
Decisions required about:
Performance appraisal
Productivity
Deployment
Training
Remuneration
Promotion/career development

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DECISIONS INVOLVED
Category:
New recruits
Decisions required about:
Recruitment methods
Selection procedures
Induction
Training
Terms of contract

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Decisions involved
Category:
Potential staff
Leavers
Decisions required about:
Recruitment methods
Public relations
Wage/salary levels
Employee benefits
Dismissals for poor performance
Retirements
Redundancy procedures
Labour turnover

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THE PROCESS
Corporate
objectives
Demand for
personnel
Market demand Assess personnel
supply
Labour market
Existing potential
Personnel estimates
Recruitment plans Training plans Promotion/successio
n
Pay/productivity
proposals
Retirement/redundan
cy programmes
Periodic reviews

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AIMS OF HUMAN RESOURCE PLANNING
 Attract and retain the number of people required with the appropriate skills, expertise and
competencies;
 Anticipate the problems of potential surpluses or deficits of people;
 Develop a well trained and flexible workforce to contribute to the organisation’s ability to
adapt to an uncertain and changing environment;
 Reduce dependence on external recruitment when key skills are in short supply by
formulating retention, as well as employee development strategies;
 Improve the utilization of people by introducing more flexible systems of work.

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SOME USEFUL TIPS FOR PRACTICE
 Resourcing strategy
 Scenario planning
 Estimating future requirements
 Labour turnover
 Action planning

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RESOURCING STRATEGY
Components:
Resourcing plans
Find people from within and/or train to help people learn new skills
If not attract high quality candidates as ‘employer of choice’
Flexibility plans
To enable the best use of people and to adapt swiftly to changing
circumstances
Retention plans
To retain the people we need – loyalty & commitment

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RESOURCING STRATEGY
Checklist:
 In the light of the business plan how many people do we need in each of our key operational
or functional areas in the short and longer term?
 What skills are we likely to need in the future?
 Will we be able to meet them from within the organization? If not … what… where?
 Do we have problems in attracting and retaining key staff?
 Is there scope to make better use of people by increasing flexibility?

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SCENARIO PLANNING
Aim:
To obtain a better understanding of the possible situations that may have to be dealt with in the
future
That involves:
An intellectual process seeking to identify issues and to examine the possible consequences of
events
To open minds to a range of possibilities that organisations may have to confront
Possibilities are then ordered to produce a series of internally consistent pictures of alternative
futures
Broad assessments of likely internal development (Where do we want to go from here?) and the
likely implications on people requirements.

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ESTIMATING FUTURE REQUIREMENTS
 Demand forecasting
Ideally based on annual budgets and longer term business plans – translating
plans into activity levels for each function/department (e.g. setting up a new
regional office)
Techniques include:
 Managerial judgement (close to scenario planning)
 Ratio trend analysis (study of past ratios to predict)
 Work study techniques (work measurements to calculate how long operations take and
number of people)

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LABOUR TURNOVER
Analysing the numbers of people leaving the
organisation – wastage
Some aspects of labour turnover:
 Significance
 Methods of measurement
 Cost

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SIGNIFICANCE OF LABOUR TURNOVER
 A graphic illustration of the turbulence within an organisation
 High levels can:
 Destabilise a business
 Demotivate people
 Rises in recruitment, induction and training costs
 may be a function of negative job attitudes, low job satisfaction and better opportunities elsewhere
 Normal part of organisational functioning – acceptable levels can be beneficial