Chapter 1 - introduction

TITLE: Impact of human resource management on performance of building contractors in

Tanzania.

1.1 research issue background;

According to Dessler 2015 Human resource management is the strategic approach to managing
an organization, it involves the strategic planning, coordination, and administration of workforce
within construction projects. It encompasses activities such as recruitment, hiring, training,
performance management, compensation, safety regulations compliance and employee relations.

 Recruitment and selection; finding and hiring skilled workers, including tradespeople,
engineers, project managers, and administrative staff.
 Training and development: providing ongoing training to enhance skills, safety training,
and professional development opportunities to ensure workers are equipped to perform
their jobs effectively
 Performance management; monitoring and evaluating employee performance, setting
goals, providing feedbacks, and addressing performance issues promptly.

Other human resource concepts include safety and health, labor relations, compensation and
benefits, diversity and inclusion, employee relations, talent management, and legal compliance.

According to Nkomo, T.K (2018), The challenges facing building contractors in Tanzania
include;

 Labor shortage: availability of skilled labor and workforce management.

 Workforce diversity: managing a diverse workforce with varying skills and backgrounds
 Safety and compliance: Ensuring compliance with safety regulations and labor laws
 Employee motivation: strategies to keep employees motivated and engaged.
 Training and development: opportunities for skill enhancement and career growth.

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According to Alan Cattel (2019), The following are Importance of effective human resource
practices

Emphasize that effective human resource practices can directly impact contractor performance
for instance;

 Hiring the right talent for specific roles through recruitment and selection.
 Enhancing employee skills through training and skill development.
 Regular evaluation and feedback through performance appraisal.
 Fair compensation and incentives through compensation and benefits.
 Maintaining positive relationship within the organization through employee relations.

Research gap:

According to Dessler 2015, Research gap is an area or topic within a field of study that has not
been sufficiently explored or understood. It represents a gap in existing knowledge that
researchers aim to address through further investigation or study. The existing gap in research
related to human resource management practices for building contractors in Tanzania lies in the
limited understanding of how cultural dynamics and local context influence human resource
strategies and their effectiveness within this specific industry.

1.2 statement of the problem;

According to Despite the critical role of human resource management in organizational

performance, there is limited research on how HR practices specifically impact building
contractors in Tanzania. This study seeks to fill this gap by examining the relationship between
human resource practices and building contractor performance.

1.3 RESEARCH OBJECTIVES

1.3,1 Main objective

 To assess the impact of HRM practices on the performance of building contractors in

Tanzania.

1.3.2 Specific objectives

 To identify the key HR practices adopted by building contractors in Tanzania.

 To analyze how these HR practices influence contractor performance.

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  To recommend effective HR strategies for enhancing contractor performance.

1.4 Research questions or and hypothesis

o What are the predominant HR practices implemented by building contractors in

Tanzania?
o How do these HR practices affect the performance of building contractors?
o What improvements can be made to HR strategies to enhance contractor performance?

Research hypothesis

o Effective HR practices positively correlate with contractor performance.

o Contractors with better HR practices exhibit higher productivity and quality
o Strategic HR interventions lead to improved project outcomes.

1.5 Significance of human resource in building contractors;

According to Tanzania contractors’ registration board (2002) the significance of the topic are as
follows;

 Skilled workforce management: HRM ensures that contractors have access to a skilled
and competent workforce. This involves recruiting, training, and retaining skilled workers
who are essential for completing construction projects effectively and efficiently.
 Compliance with labor laws: HRM helps contractors to comply with labor laws and
regulations in Tanzania. This includes ensuring fair wages, working conditions, and
health and safety standards for employees, which is essential for maintaining legal
compliance and avoiding penalties.
 Labor productivity and efficiency: effective HRM practices contribute to enhancing labor
productivity and efficiency on construction sites. This involves proper allocation of
human resources, scheduling, and coordination to optimize workflow and minimize
downtown.
 Conflict resolution and management: HRM helps to manage conflicts and disputes that
may arise among employees or between employees and management. By implementing

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 effective communication channels, grievance procedures, and conflict resolution
strategies, HRM can mitigate conflicts and maintain a harmonious work environment.

 Employee morale and retention: HRM plays a crucial role in maintaining high levels of
employee morale and job satisfaction. This is achieved through providing opportunities
for career development, recognizing and rewarding employee contributions and fostering
a positive work environment, all of which contribute to employee retention.

1.6 Definitions of key concepts about the topic;

According to Mushi, A.M. (2018) the key definition of terms are as follows;

 Human resource management (HRM): refers to the strategic approach to managing the
workforce within an organization to achieve its goals and objectives. It involves activities
like recruitment, training, development, compensation, and performance management.
 Performance: performance in the context of building contractors refers to the
effectiveness and efficiency with which construction projects are completed. It involves
factors such as meeting project deadlines, staying within budget, maintaining quality
standards, and satisfying client requirements.
 Employee morale: it reflects the overall attitude satisfaction, and motivation of employee
within an organization. High employee morale is associated with increased productivity,
better teamwork, and lower turnover rates.
 Labor productivity: it measures the output per unit labor input. In the construction
industry, it can be measured by the amount of work completed per worker or per hour
worked. Effective HRM practices can positively impact labor productivity by ensuring
proper training, resource, allocation, and motivation of workers.
 Training and development: refers to the process of equipping employees with the
knowledge, skills, and abilities required to perform their jobs effectively. This include
both initial training for new hires and on-going development opportunities to enhance
employee capabilities.
 Conflict resolution: involves the process of addressing resolving disputes or
disagreements that arise among employees or between employees and management.

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 Effective conflict resolution strategies can help maintain a harmonious work environment
and prevent disruptions to project progress.
 Succession planning: succession panning is the process of identifying and developing
potential future leaders within an organization. It ensures continuity and sustainability by
ensuring that key roles can be filled as order employees retire or leave the company.

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REFERENCE

Dessler, Garry, “human resource management.” personal education, 2015.

Nkomo, T, K (2018) human resource in Tanzania.

Allan Cattell “human resource in construction projects” strategic and operational approaches
(2019)

Tanzania contractors’ registration board (2022) “guidelines for contractors’ registration and
practice in Tanzania”.

Mushi, A.M. (2018) “The role of human resource management practices on performance of
building contractors in Tanzania.” The journal of construction engineering and management,
144(2).