CHAPTER TWO

LITERATURE REVIEW
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2.1 Conceptual Review

2.1.1 Resources Management

Project resource management aims at planning, scheduling,

procurement and control of workers, materials and equipment required
for the completion of the project, economically and effectively Sears, et
al. (2008). According to Dharwadker (1989) management in general has
come to imply a disciplined approach to the use of available resources.
In other words, when managing construction projects, the manager is
essentially managing the procurement, deployment and supervision of
resources in a manner that would ensure achievement of project
objectives. Kafka (2007) defines construction resources management
(CRM) as a concept of overseeing and strategically managing every
physical asset, from consumables to tools and equipment in every
company department, for the advancement of the company. However,
Dharwadker (1989) indicated that the efficiency of management
depends on how well the available resources are utilized and how well
the best possible results are achieved. Resources are the key inputs to
construction projects. These include labour, plant, equipment and
materials (BSi, 2006). Kim et al. (2005) argued that efficient resources
management is a prerequisite for project success. Concurring with Kim
et al. (2005), Melton (2008) argues that any external resource needs to
be robustly managed in order to ensure that the required level of
performance is achieved. On the other hand, Killinc and Sen (n.d.) admit
that efficient and effective use of resources can often make or break a
project. Therefore to achieve project objectives, Kerzner (2004) argued
that the project manager must control company resources within time,
cost and performance. In fact, the functions of project management in
construction generally include the maximization of efficient resource
utilization through procurement of labour, materials and equipment
according to the prescribed schedule and plan . Several strategies have
been put in place by construction firms to optimize the use of resources.
Computer packages and software have also been developed to deal with
the problem of limited resource management. However, over investment
in computer packages and modelling takes away the human element in
managing projects. Whilst computer programmes provide the most
efficient method of preparing construction schedule Khattab and Soyland
(1998), the complex nature of construction activities and the scattered
nature of resources on construction sites make resources management a
complex function that cannot be left to computers and models. It is also
important to note that project resources management is not an event; it
is a process involving inputs, processes and outputs operating within a
resource management framework. Thus planning, coordinating, and
control of activities are the main management functions. These functions
squarely apply to resources management. According to Reiss (1992),
there are four major stages when dealing with resources management.
These stages are resource definition, resource allocation, resource
aggregation and resource leveling. Resource planning assists to
understand the type and quantity of resources needed for the project.
Against this background, the BSi (2006) postulates that resource
planning should precede resource management to make management
feasible.

2.1.2 Construction Resources Management Systems

Construction resource management systems differ in extent from one

organisation to another. However, the whole essence of having a system
is to enhance resource management in the organisation. Construction
resource management systems vary from those with very basic
capabilities to highly sophisticated enterprise-level programs. These
systems can be categorized as manual and computerized software
systems. Advanced computer software offer enterprise wide, fully
integrated functionality that not only manages complete inventories of
tools, equipment, materials, and consumables, but also provide visibility
of these inventories throughout an entire organization Kafka (2007). The
effectiveness of the system depends upon its ability to collect data in
real time. The use of web-based technology capable of transmitting
information through cell phones and personal digital assistants (PDAs)
has significantly assisted this process. In some advanced systems, global
positioning systems (GPS) and radio frequency identification (RFID)
technologies are employed to monitor resources usage through
„connecting‟ the construction site and head office in real time. Whilst
computer software is gaining affection with developed communities, the
paper-based system of resource management is still prevalent in most
developing countries. Forster (1989) details a multiplicity of paper based
forms of managing site resources. Whilst these systems are economic,
they suffer from the lag time between the time the resource is used and
the time when the information will be registered with the management
system According to Svidt and Christiansson (2006) the paper-based
system is time consuming in transferring information on working tasks,
material use and equipment use from the individual worker at the
construction site to the administration for economic follow-up, invoicing
customers and paying wages to workers. To reduce such problems,
some construction companies have turned to integrated, online software
solutions that streamline everything from estimating and bidding to
tracking job costs in the field, managing resources and maintaining
equipment. Bell and Stukhart (1987) noted that some construction
contractors have developed integrated, or “total concept,” materials
management systems (MMS) that combine and integrate the takeoff,
vendor evaluation, purchasing, expediting, warehousing, and distribution
functions. However, the choice of a resource management system
should be based on the capability to strike a balance between economic
considerations and the expected benefits from investing in such a
system. In either way, the most effective construction resource
management systems are designed to grow with a company, providing
the right level of functionality now and for the future Kafka (2007).

2.1.3 Project Performance

According to Enshassi, Mohamed and Abushaban (2009) project

performance can be measured and evaluated using a large number of
performance indicators that could be related to various dimensions or
groups such as time, cost, quality, client satisfaction, health and safety.
However, time, cost and quality are the predominant factors. Pheng and
Chung (2006) as cited by Enshassi, Mohamed and Abushaban (2009)
identified two common sets of indicators in evaluating project
performance. Most of the parties to the project will be interested in
completion time, but the attitude to cost will vary. The client will be
keen to keep the total cost to a minimum, but the contractor/supplier
will wish to maximise the profit margin between the actual cost of work
and the price paid by the client Woodward, (1997). A project is termed
successful when it satisfies project objectives. These, however,
commonly involve multiple dimensions or criteria (for example, the
time/cost/performance triad), and many "average‟ projects, though not
usually considered failures, do not satisfy objectives in all dimensions
Nicholas (1990). Concurring with Nicholas and Passenheim (2009) noted
that the three important factors for the success of a project are the
meeting or exceeding of the expectations of the customer and or the
management in terms of cost (budget), time (schedule) and
performance (scope). On the other hand Nkachukwu and Emoh (2011)
noted that project failure does not mean that the project may not have
been physically completed but the question is when is the completion, is
there any time or cost overrun, is the quality specified standard
achieved? Examples of unavoidable causes of failure are failures caused
by weather or labour problems, intractable technical difficulties, or other
forces neither foreseeable nor controllable. Surprisingly, none of these
are the cause of a great number of project failures. Nicholas (1990)
argued that the root cause of many project failures is not intractable
technical problems, nor uncontrollable forces, nor the user, but imply
bad project management. This kind of failure is the output of a defective
project management system – organisations, practices, or procedures.
However, the variety and great number of existing resources, both
human and material; the diversity of tasks which each working unity is
able to execute; the performance of each working unit; the involved
costs; the spatial distribution of all resources over the different places
leading to the need of transportation from one place to another
complicates management of resources (Olivera, Fonseca and Steiger-
Garcao, n.d). On the other hand, Sears, et al. (2008) noted that the
supply and availability of resources seldom can be taken for granted
because of seasonal shortages, labour disputes, equipment breakdown,
competing demands, delayed deliveries, and a host of associated
uncertainties. Projects are challenged by inadequate supply of resources
at the beginning of the project, fighting for control of resources between
functional managers and project manager

2.1.4 Management of Construction Projects

According to Mutchler and Widener (2000), construction management

services are aligned with the activities and tasks associated with building
design, construction documentation, construction procurement, and
construction. The scope and approach to construction management is
largely determined by the contractual arrangement established between
the firm providing construction management services and the client.
Managing a project includes:

i. Identifying requirements

ii. Establishing clear and achievable objectives

iii. Balancing the competing demands for quality, scope, time and cost

iv. Adapting the specifications, plans, and approach to the different

concerns and expectations of the various stakeholders.

However, construction projects are somewhat difficult to manage and

challenging due to the nature of the industry; such as complex and
unique nature, mobile workforce, ingrained culture, working conditions,
and project-based setup, diverse sub-contractors and suppliers, Arditi
and Balci (2009); in addition to regulatory bodies and changes in
government policies during the production process. These factors
significantly affect the efficient performance of construction site
management team, Fapohunda and Stephenson (2010) and in most
cases lead to project failure, Kar (2009). The reasons for such failure are
quite complex and it is not wise to pinpoint specific reasons to ensure
project success. However, it is felt the main reasons for project failure in
developing countries are lack of advance planning, a holistic approach,
lack of comprehensive engineering and management strategy,
inconsistency in monitoring and follow-up, coordination and
communication lapses and above all, absence of a methodical approach,
Kar (2009). Besides technical issues, Arditi and Balci (2009) posit that
professionals in the construction industry also need to handle
managerial issues. Agundu et al. (2003) attest that various factors have
been adduced for unhealthy scenario in management of construction
projects in Nigeria, the most notable being poor project analysis and
management. However, Bowen et al. (2002) argue that the concept of
managing construction projects is deeply embedded in the traditional
building procurement system. This is even as emerging project
management methods for construction projects generate new kinds of
challenges for construction practitioners Ala-Risku and Kärkkäinen
(2005). Ogege (2011) stresses that the success of any project
implementation process in the construction industry in the public and
private sectors depend largely on the project manager’s concept on staff
appointments and control, strict monitoring of time, cost, material,
quality and environmental constraints. Conversely, Kar (2009) contends
that managing complex, multi-disciplinary projects in a developing
country presents some special problems which vary from one project to
another. However, Jacob and McClelland (2001) argue that whether an
organization manages stand-alone or multiple projects, whether those
projects are small or large, whether the customers are internal or
external, or whether the nature of the work performed is product
development, construction, design, IT, or service; most projects are
difficult to manage because of two things:

i. They involve uncertainty, and

ii. They involve three different and opposing commitments: Due date,
budget, and content. Jacob and McClelland (2001) further aver that in
organizations that attempt to manage multiple concurrent projects with
common, shared resources, the job is even more challenging. Hence,
managers can quickly find themselves on “project overload” with
continual resource shortages and great difficulty in determining which
tasks are truly the most important.

2.1.5 Management Challenges in Construction Practice

As the demand for highly innovative construction managers is constantly

increasing, it has been acknowledged that management of construction
projects from conception to disposal is difficult and accompanied with
enormous challenges Ahn et al., (2010). The construction managers deal
with time, money, equipment, technology, people and materials in
managing a construction project. They organize these resources into
activities, execute the activities in logical sequences and manage to
complete the projects within the stipulated time, budget and specified
standard. The construction manager also manages the construction
process to meet the clients’ needs within legal, cost, time, quality and
environmental constraints. In addition, construction manager takes the
whole building cycle from inception to end of economic life, dealing with
the procurement, construction, design or property management,
recycling and disposal of building, and balancing the often conflicting
requirements of clients, users and the community. Unfortunately, the
complex nature of construction makes it one of the most adverse
businesses that have ever existed. Thus, construction projects have
often suffered from high fragmentation, large waste, poor productivity,
cost and time overruns, and conflicts and disputes for a long time Hai, et
al. (2012). Moreover, Amalraj (2007) agree that the challenges facing
today’s construction managers are bound to be formidable, while
identifying quality, cost and schedule as some of the aspects of project
management that are particularly challenging. Many of these challenges
are a direct result of construction operations, while others a result of
indirect, peripheral activities. Othman (2013) classifies challenges
bedevilling mega construction projects in the developing countries into
four categories of Engineering Challenges, Human Development
Challenges, Managerial and Political Challenges and Sustainability
Challenges. A surprising number of these challenges are not
construction issues but must be addressed and managed by the
construction manager to ensure project success. While some of the
construction issues include workforce considerations, safety, time
constraints, and the changing nature of the work, non-construction
challenges that construction managers face that are part of the business
landscape include legal issues, government regulations, environmental
concerns, and socio-political pressures. Findings indicate that significant
challenges facing contractors in Ghana are relating mainly to financing
for projects and a harsh business environment, besides other problems.
Yağmuroğlu et al. (2009) found that the most effective causes of
contractor failure are receivable difficulties, insufficient capital, lack of
managerial experience, lack of business knowledge, and family
problems.
[

2.1.6 Skills Required of Construction Manager

The job of construction project managers is demanding, complex and

varied, whilst requiring the juggling of several issues concurrently Pant
and Baroudi (2008). Eigelaar (2012) contends that though traditional
Project Management competencies are critical for project success,
communication between team members and the entire network is vital
to support a shared understanding of the project and its goals. Hence,
managing construction projects successfully requires an assortment of
skills, including interpersonal ability, technical competencies, and
cognitive aptitude, along with the capability to understand a situation
and people, and then to dynamically incorporate appropriate leadership
behaviours (soft and hard skills) Eigelaar (2012). Pant and Baroudi
(2008) categorize skills into six areas: communication, organisational,
team building, leadership, coping, and technological skills. But
Rutherford (2004) argues that nothing happens without humans-
therefore, the three most important competencies for project managers
are planning, team building and leadership. Rutherford (2004) further
looks at the latter two categories, and the soft skills that are required to
excel at them. Chapman (2004) observes that the blind spot in
traditional management mindsets is people and the construction industry
has overlooked these soft factors in risk analysis, and this has led to a
serious underestimation of the risks involved in construction projects. In
view of the forgoing, Belzer (2010) contends that soft skills to manage
projects are ‘the missing link’ in respect of project success. Some of
these skills include communication, organisational effectiveness,
leadership, problem solving and decision- making, team building,
flexibility, creativity and trustworthiness. Kondo (2007) views
construction project management as an art or skill. Thus, an effective
construction manager requires the ability to plan projects, assess project
status, and identify issues of risk. These are all skills that can be
learned, namely the technical skills. Kondo (2007) also notes that the
behavioural component of project management skills includes three
elements: the ability to anticipate, attention to detail and the ability to
convince others. These are personal qualities, and in some way the
product of related experience, are only in part teachable. Groult (2010)
states that it is vital to develop essential soft skills and embrace the
change, gain experience, if necessary get qualifications, define a clear
framework, encourage teamwork and cooperation, and embrace the
change. Furthermore, Saladis (2010) suggests that the need for
continued professional development and the enhancement of existing
interpersonal (soft skills) and technical skills (hard skills) is far greater
today than it has ever been. For Morreale (2008), it is a combination of
both the hard and soft skills that help to deliver successful projects and
successful project managers constantly assess themselves against the
soft skills, and take whatever action is required to enhance their abilities
to deliver successful projects. Thus, as the field of research surrounding
construction management continues to grow, it is becoming more
evident that success in the role of construction manager cannot be
attained with a technical skill set only. Technical skills are being
recognized as one of the minimal requirements for a construction
manager. The need for excellent interpersonal, or soft skills, are
necessary requisites for success, and although some would disagree,
others advocate that these are skills that can be taught (and learned)
rather than skills that are innate or genetic. Organizations must
therefore ensure that employees have not only the project management
and technical prowess, but also the leadership and strategic and
business management skills necessary to get the job done ,Young and
Conboy (2013). An in-depth literature review shows a number of
management challenges facing construction practice which can be
summarized into nine issues as: challenges of resource allocation
(materials, men, money and machines), Ugochukwu and Onyekwena
(2014); time and scheduling management challenges; cost management
challenges; quality management challenges ; safety management
challenges; complexity and multiple project and organisations
management challenges; change management challenges; risks and
uncertainties management challenges; and communication challenges.
The identified challenges would form the basis for investigation in this
particular study.

2.2 Theoretical Review

The development of modern Human Resource Management has been

punctuated by different schools of thought, which have explained the
existence, purposes and functioning of organisations in different ways.
This range of theories is often difficult to reconcile and modern
management thought remains a constantly changing cocktail of different
ideas, many of which provide a unique view of organisations and their
problems. A key feature of the study of management and organisational
behaviour is that it is difficult to identify a single solution to a particular
problem, Mullins (1999). Many seemingly contradictory theories exist,
some of which may seem on first sight to have little relevance or
application to the modern organisation. This can render the study of
management frustrating and confusing. However, gaining an
understanding of management theory is important because many of the
early ideas on management underpin modern approaches to the HRM
function. It would be counterproductive for managers to attach
themselves to one organisational theory in the belief that it can solve all
of their problems. It is more appropriate to develop an understanding of
them all, within the social, economic and political context in which they
developed. This enables managers to assess their value in a highly
dynamic world.

2.2.1 Contemporary management theory

During this period of history, change and uncertainty were constant

features of life, much as they are today. Indeed, it is generally agreed
that we are currently experiencing a second industrial revolution which
is similar in scale to the first, differing only in that its origins are in
electronics rather than mechanics. This has resulted in a second and
ongoing period of fundamental change in the construction industry in
terms of its professional boundaries, procurement and contractual
arrangements, technology, design, specialisation, fragmentation and
standardisation. Once again, this change is driving the need for
managerial skills in order that this be managed effectively and that the
industry and its organisations benefit from the transition.

However, while there are undoubted similarities between the original

and modern industrial revolutions, modern managers face very different
problems to those faced in the early eighteenth century. For example,
the power balances between operatives and managers within
organisations were very different in the eighteenth century than they
are today. Furthermore, in the eighteenth century managers had little
other than their own experience to draw upon in making decisions and
were largely uneducated in the discipline of management. In the
eighteenth century concerns were primarily with production capacity,
and technologies were enthusiastically embraced with little concern for
their human implications. In essence, modern managers and their
workforce are more educated than their predecessors, the power
balance between them is more equal, management is based on different
values to those of pure engineering, and the world is far more
competitive and egalitarian. In response to this changing industrial
environment management has developed considerably since the
pioneering work of Smith, Owen and Babbage. Essentially, three broad
themes have emerged, the earliest emphasising production efficiency,
the second emphasising human behaviour and the third emphasising
organisations as systems. Each school of thought is discussed below.

2.2.2 Contingency theory

Contingency theory evolved from the open-systems perspective and

refined it. Pioneers of this approach delved more deeply into the
relationship between organisations and their environments in the belief
that there was no one best way to organise for all situations. The
contingency approach does not define any optimum state for an
organisation, as it sees structure and success as being contingent upon
the stability of an organisation’s environment, the nature of its workers,
the technology used in production and the routines of the tasks
performed. In general, harder/scientific approaches are more effective
when workers do not want autonomy and undertake routine tasks, using
high-tech production-line-type technologies in a stable environment.
Softer, more humanistic approaches work in the opposite conditions.
This revelation has been a major advance in management theory and
has guided much contemporary construction management research.
This is particularly so in the area of procurement, where there have
been many attempts to identify the determinants of the most suitable
procurement system for differing types of project requirements. In
contingency terms, managers should seek to maximise the degree of fit
between an organisation’s internal structure and the demands of its
environment. Problems occur when a major misfit develops between an
organisation and its environment and thereby introduces the need for
radical change. Logically, it follows that the causes of an imbalance can
be either organisational (internal) or environmental (external) and that it
can only be addressed by changing one or both of these components.
The concept of fit led to considerable efforts being made to describe the
organisational characteristics which suited different environmental
conditions. For example, Burns and Stalker (1961) distinguished
between organic and mechanistic forms of organisation. Organic
structures are characterised by informal authority structures, free
vertical and horizontal flows of information, flexible attitudes and a high
commitment to task. In contrast, mechanistic structures emphasised
vertical information flow, rule-bound behaviour, formal authority and
little commitment to task. Burns and Stalker found that as the
uncertainty of the environment increased, so did the appropriateness of
the organic form. Until recently these ideas have had little influence on
the construction industry, which slavishly followed a highly mechanistic
model of management. The psychological and cultural origins of this
management style are explained below, although it is important to note
that there is still considerable resistance to move to an organic mode.
Other researchers, such as Lawrence and Lorsch (1967), considered the
concepts of differentiation (divisive forces) and integration (cohesive
forces). They found that to ensure efficiency, the level of differentiation
should be a direct reflection of environmental complexity but also should
be accompanied by an equivalent level of integrative effort. In these
terms, it is evident that, while the construction industry has
differentiated in response to increasing complexity (as seen in the
growth of subcontracting and, more recently, professional diversity), it
has struggled to provide the necessary levels of integration to counter
its adverse effects (NEDO 1988; Latham 1994; Egan 1998). In
theoretical terms, this is the challenge which faces the construction
industry today. Whilst contingency theory has reinforced and extended
the idea that appropriate management style is a function of situational
and organisational factors, it is not without criticism. For example,
Stopford and Wells (1972) highlighted the problem of structural change
lagging behind contingency factors, arguing that an environment needs
to become highly dynamic before a response is made. In other words,
minor problems will be ignored until they reach crisis proportions and
force a change in strategy. This phenomenon is often vividly illustrated
in the realm of construction safety, where accident investigations often
reveal that the early warning signs of accidents were ignored until it was
too late, Loosemore (2000). A further problem with contingency theory
is the confusion surrounding the exact relationships between structural
and environmental factors. Indeed, Mintzberg (1979) questioned the
reliability of some of the more abstract organisational concepts
developed by the contingency school to explain this. For example, he
argued that concepts such as decentralisation and participation are
difficult to measure. This implies that the contingency perspective
provides managers with little control over their destiny when faced with
a crisis. More specifically, Booth (1996) is critical of its failure to consider
adequately the way in which organisations can influence their
environments. From a problem solving point of view this is a major
issue, in that environmental control and manipulation can substantially
reduce or even reverse a crisis. Finally, there has also been criticism of
contingency theory from behaviouralists, who claim that the contingency
approach is a step backwards towards the prescription of scientific
management. This is because it is based on highlighting some rationality
and causal order between organisational structure and success.
Furthermore, it has the effect of making managers seem independent of
their organisation, and thereby clouds the importance of the relationship
between the manager and the organisation he or she manages. It is
important to note that, as well as achieving a good fit between
organisational structure and the business environment, it is also vital to
achieve a fit between people and their organisation.
2.3 Empirical Studies

Construction projects involve a wide range of stakeholders, Dey and

Ogunlana (2004). Lampel (2001) stresses that in order to successfully
manage, control and execute such mega projects, diverse players must
effectively and efficiently deal with diversity and confront this challenge.
Thus, successful achievement of organizational objectives relies on
delivering various projects within a scheduled time frame, budget
estimate and expected quality. However, it is argued that the traditional
drivers of successful project management are no longer adequate to
guarantee project success and eventually reach organizational goals and
objectives, Shenhar and Dvir (2007). Instead, Sheppeck and Militello
(2000) contend that the implementation of effective project
management and human-related strategies is the most appropriate
approach for the current business environment where most projects are
associated with complexity and uncertainty. According to Alnasseri
(2013) project managers who follow traditional ways of managing and
executing construction projects often give little attention or even
disregard the allocation of human-related factors within their
management agendas. Instead, they focus on time, cost, and quality.
This behaviour will have a significant impact on different expectations,
as no project would exist without people inputs. Hence, with the various
challenges and difficulties linked to construction projects, and all the
different expectations associated with project outcomes, when an
effective and an integrated project strategy exist, it would result to an
effective and efficient working environment. This is dependent upon the
project stakeholders and employees at all levels being structured to
facilitate effective lines of coherent communication . Furthermore,
Alnasseri (2013) argue that the integrated interplay between project
strategy and its human-related factors is the often overlooked factor of
success in strategic project management where managers structure a
framework of winning that involves a unique approach to strategic
project management practice. Notwithstanding, Wideman (2000) argue
that successful management of construction projects is hinged on twin
keys of commitment and communication, while Pamulu (2010) submits
that effective management of major projects relies on three key
concepts: early planning and organising, stakeholder communication and
project controls integration, and continuous improvement. On specific
term, Landrum (2014) infer that a commitment to safety is indispensable
in effectively managing risk in the construction industry.
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