Personnel Management

Leadership is the ability to influence and guide people to work willingly for the goals of the organisation. The leadership (supervisory) style is the way a leader uses authority and treats subordinates.

Main styles

1. Autocratic (authoritarian): the leader takes all decisions and gives orders; no discussion. Quick and clear, but low morale and creativity. Example: a site foreman who gives strict orders during a critical concrete pour or in an emergency. Suitable for unskilled labour, urgent work or safety-critical situations.
2. Democratic (participative): the leader discusses with the team and decisions are made with their inputs. Good morale and ownership but slower. Example: a project manager who consults the engineers and foremen before changing the construction sequence. Suitable for planning, skilled and professional staff.
3. Laissez-faire (free-rein): the leader gives the team freedom to decide with little guidance. It works for highly skilled and motivated people but can cause confusion. Example: senior design consultants or experienced sub-contractor teams working with only the goals fixed.
4. Paternalistic: the leader acts like a father, giving orders but caring about the welfare of workers. Common in Nepali small contractors and family firms.
5. Task-oriented vs people-oriented (Blake and Mouton grid): the first focuses on schedule and output, the second on workers' needs; the best style is high concern for both (team management).

Supervisory style in construction

Suitability in Nepal

Construction workers are often unskilled or semi-skilled and come from many regions, so a mix is best: a firm but caring (autocratic-paternalistic) approach at the labour level, and democratic at the staff level. No single style is the best; the leader should adjust to the situation, the skill level and maturity of the team (situational leadership).

Communication in a project is the exchange of information, ideas, instructions and feedback among the client, consultant, contractor, designers, workers, suppliers and authorities, so that all understand the project goals and their work.

Need and importance

1. Coordination: many parties and trades must work together; communication ties their work.
2. Clear instructions: correct drawings, specifications and orders prevent errors and rework.
3. Decision making: managers need timely information on progress, cost and problems.
4. Time and cost control: early warning of delays or shortages saves time and money.
5. Motivation and morale: workers who are informed and heard work better.
6. Safety: warnings and training reduce accidents.
7. Avoids conflict and disputes: written records clarify responsibilities.
8. Relationship with client, community and authorities.

Flow of communication

• Downward: orders, instructions, policies from the manager to engineers, foremen and workers.
• Upward: progress reports, problems, suggestions from workers to management.
• Horizontal (lateral): between departments or trades, such as the civil, electrical and plumbing teams.
• Formal and informal: letters, meetings, reports, drawings; and talk on the site (grapevine).

   Client
     |
  Consultant <-> Project manager
                    |
      Engineers <-> Foremen <-> Workers

Breakdown of communication

Communication fails when the message is unclear, the language or technical terms differ, there are too many levels, the channel is poor, noise on site, no feedback, mistrust, or information overload. Results: wrong work, delay, conflict and cost overrun. It is prevented by clear written instructions, feedback, regular meetings and simple language.

Motivation is the inner drive, or the process of stimulating people, to act willingly and with effort for achieving a goal. A motivated worker works harder and better.

Why motivation is necessary in construction

• Construction work is physically hard, outdoors and in unsafe conditions, with workers often temporary; motivation raises their willingness.
• Raises productivity and reduces cost and time.
• Improves quality and reduces rework and wastage.
• Reduces absenteeism, labour turnover and strikes.
• Improves safety awareness and discipline.
• Develops team spirit and loyalty, and improves the image of the contractor.

Herzberg's two-factor (motivation-hygiene) theory

Frederick Herzberg (1959) found that satisfaction and dissatisfaction come from two different sets of factors.

• Hygiene factors cause dissatisfaction if they are absent or poor, but even when they are good they only remove dissatisfaction; they do not motivate.
• Motivators create real satisfaction and motivation when present; their absence results in no satisfaction (not dissatisfaction).

 Dissatisfaction <--[Hygiene]--> No dissatisfaction
 No satisfaction <-[Motivators]-> Satisfaction

Use in construction

Pay fair wages, provide safe working conditions, housing, drinking water and good supervision (hygiene); and also give recognition, bonuses for early completion, responsibility to gang leaders, training and promotion (motivators).

Personnel management

Personnel management is the function of management concerned with obtaining, developing, utilising, maintaining and compensating the human resources of an organisation, so that the organisation's goals and the employees' needs are both met. It includes manpower planning, recruitment, selection, training, wages, motivation, discipline and welfare.

Steps in the selection of personnel

1. Manpower planning and job analysis: decide the number and kind of staff, and prepare the job description and job specification.
2. Recruitment: attract candidates through advertisement, public notice, employment office or reference.
3. Application form and screening: check the applications for qualification and experience; remove the unsuitable.
4. Selection tests: written, aptitude, skill or trade tests (for example a drawing test for a draftsman, a trade test for a mason).
5. Interview: the candidate is examined on knowledge, attitude, communication and personality by an interview panel.
6. Reference and background check: verification of certificates, past employers and character.
7. Medical examination: fitness for the job, especially for heavy site work.
8. Final selection and approval by the competent authority (Public Service Commission in government posts).
9. Appointment letter and joining: offer of terms and conditions and contract.
10. Placement and induction (orientation): introduction to the organisation, safety rules and the job, followed by probation and training.

Henri Fayol (1841–1925), a French mining engineer, in General and Industrial Management (1916) gave 14 principles of management (administrative principles), as guidelines for managers. He also described five functions: planning, organising, commanding, coordinating and controlling.

The 14 principles

1. Division of work: specialisation increases efficiency (separate masons, carpenters, bar benders).
2. Authority and responsibility: the right to give orders must go with responsibility for results.
3. Discipline: obedience and respect for rules and agreements.
4. Unity of command: each employee receives orders from one superior only.
5. Unity of direction: one head and one plan for a group of activities with the same objective.
6. Subordination of individual interest to general interest.
7. Remuneration: fair pay for both employees and the firm.
8. Centralisation: the degree to which authority is concentrated or dispersed, suited to the situation.
9. Scalar chain: the line of authority from top to bottom; Fayol's "gangplank" allows cross-communication.
10. Order: the right person and material in the right place at the right time.
11. Equity: kindness and justice to employees.
12. Stability of tenure: avoid high labour turnover.
13. Initiative: allow employees to plan and carry out ideas.
14. Esprit de corps: team spirit and harmony ("union is strength").

Use in construction

A site has unity of command (each foreman reports to a single engineer), clear authority, order in stores and layout, and discipline in safety. Fayol's ideas are general, universal and can be applied in any organisation.

Centralisation

Centralisation is the concentration of decision-making authority at the top of the organisation. Top management takes the main decisions; lower levels only carry them out.

Decentralisation

Decentralisation is the systematic delegation of authority and decision making to lower levels (branch, project or site managers), who can decide within the policy.

In construction

A contractor with several projects usually delegates site matters (labour, daily purchase, work order) to the project manager (decentralised) but keeps the policy decisions such as tendering, big purchases and finance at head office (centralised). The best organisations use a suitable balance of both.

Barriers to communication are factors that prevent a message from being sent, received or understood correctly. They cause delay, errors and conflicts in a project.

Types

1. Physical / environmental barriers: noise of machines on site, distance, bad weather, poor telephone or network, large number of sites.
2. Language and semantic barriers: different languages and dialects of workers, technical words, jargon, and unclear drawings or instructions.
3. Psychological barriers: prejudice, mistrust, fear of the boss, lack of interest, emotions, and differences in perception.
4. Organisational barriers: too many levels in the hierarchy, long chains of command, unclear authority, no feedback system, poor information flow.
5. Personal / attitude barriers: poor listening, status differences between engineer and labourer, resistance to change, bias.
6. Information overload or lack of information: too much paperwork, or missing or late data.
7. Cultural and educational differences: workers from different backgrounds and literacy levels.
8. Technological barriers: failure of equipment, lack of IT skills.

Overcoming

• Use simple, clear words and visual aids (sketches, signs), and written confirmation.
• Take feedback, listen actively and encourage two-way communication.
• Reduce hierarchy levels and hold regular meetings.
• Choose a suitable medium (face to face on site, written for contract matters).
• Train staff and build trust.

A trade union is an organisation of workers formed to protect and promote their common interests, such as wages, working conditions, job security and welfare, by collective bargaining with management. In Nepal, trade unions are recognised under the Labour Act 2074 (2017) and the Trade Union Act; construction workers also join unions.

Advantages

• For workers: collective bargaining power for fair wages and benefits; protection against unfair dismissal; better safety and working conditions; a means to settle grievances; training and welfare programmes.
• For management: a channel of communication with workers; helps in handling disputes; stable labour relations; workers' representatives can help to implement discipline and productivity programmes.

Disadvantages

• Strikes, bandh and stoppages cause delay and loss, which is serious for time-bound projects.
• Union demands can raise wages and costs.
• Political interference and rivalry between unions.
• Resistance to new methods, machines or reduction of staff.
• Pressure to employ members, which reduces management freedom.
• Disputes over contract rates and bribery-like "tax" in some places.

Relation with management

A healthy relationship is based on mutual respect, honest communication and written agreements. Management should recognise the union, hold regular meetings, pay on time, ensure safety and welfare, settle complaints early through a grievance procedure and negotiate collectively. Workers should follow discipline and give due output. When disputes occur, conciliation and arbitration under labour law are used. Good relations give productivity and industrial peace.

Leadership

Leadership is the process of influencing and guiding a group of people to willingly achieve a common goal. A leader inspires, directs and supports the team.

Characteristics of a good leader

1. Vision and goal-orientation: clear objectives and a plan.
2. Technical competence and knowledge of the work.
3. Integrity and honesty: the team trusts the leader.
4. Decision-making ability: timely, firm and fair decisions.
5. Communication skill: speaks clearly and listens.
6. Self-confidence and courage to take responsibility.
7. Empathy and good human relations: cares about the workers' welfare.
8. Ability to motivate and develop others.
9. Fairness and impartiality, and discipline.
10. Initiative, flexibility and ability to handle change and stress.
11. Physical and mental energy; leads by example.

Which style is better?

There is no single best style. Autocratic works for emergencies and unskilled labour; democratic gives better morale and ideas for skilled teams; laissez-faire suits experts. The democratic (participative) style is generally better in the long term for construction teams of engineers and skilled workers because it improves motivation and cooperation, but a good leader changes the style with the situation, the task and the people (situational leadership).

An interview is a face-to-face talk with a candidate, by which the panel tests the things that written applications and tests cannot show. For selecting project personnel (engineers, supervisors, foremen) the panel looks at the following abilities.

1. Technical knowledge and skill: command of the subject, codes, drawings, estimating, equipment, and ability to answer practical site problems.
2. Experience: relevant past projects, responsibility held and results achieved.
3. Communication ability: clarity, listening, language and confidence in expressing ideas.
4. Problem-solving and decision-making ability: how the candidate reacts to a given situation, such as a delay, a quality fault or a labour dispute.
5. Leadership and supervisory ability: capacity to direct workers and manage a team.
6. Attitude and motivation: interest in the job, willingness to work at the site, honesty and commitment.
7. Personality and behaviour: courtesy, maturity, emotional stability, appearance, and ability to work under pressure.
8. Teamwork and interpersonal skill: cooperation with others and with different groups.
9. Integrity and discipline: punctuality, ethics and record of conduct.
10. Physical fitness and willingness to travel or live on site.
11. Initiative, learning and potential for growth.
12. Expectations: salary and career goals compatible with the project.

The panel gives marks to each point on a rating sheet so that the selection is objective and fair.

Motivation is the inner force that drives a person to act and to put in effort to achieve goals. Managers motivate workers by fulfilling their needs so that they work willingly.

Maslow's need hierarchy (1943)

Abraham Maslow proposed that human needs are arranged in five levels; a lower need must be satisfied before the next becomes strong. A satisfied need no longer motivates.

        /\
       /5 \   Self-actualisation
      /----\
     / 4    \  Esteem
    /--------\
   /  3       \ Social
  /------------\
 /   2          \ Safety
/----------------\
|  1 Physiological|

Herzberg's two-factor theory (1959)

Herzberg found that factors causing satisfaction (motivators: achievement, recognition, the work itself, responsibility, advancement) differ from those that prevent dissatisfaction (hygiene factors: salary, supervision, company policy, working conditions, job security, relations).

• Hygiene factors only prevent dissatisfaction; they do not motivate.
• Motivators give real motivation.

Comparison

Maslow's lower-level needs (levels 1–3) roughly match Herzberg's hygiene factors, and upper-level needs (levels 4–5) match the motivators. A manager should first provide proper hygiene factors (fair wages, safe conditions) and then use motivators (recognition, responsibility, growth).

Maslow's theory of motivation (A. H. Maslow, 1943) states that human behaviour is driven by a hierarchy of five needs. People satisfy lower needs first; only an unsatisfied need motivates, and once it is met the next higher need becomes dominant.

The five levels

1. Physiological needs: food, water, clothing, shelter, rest. In construction: adequate wages, drinking water, accommodation.
2. Safety needs: physical safety, job security, health. For example safety equipment, insurance, and regular employment.
3. Social (belonging) needs: friendship, acceptance, team membership. For example good team spirit and cordial supervisors.
4. Esteem needs: self-respect, recognition, status. For example praise, awards, designation.
5. Self-actualisation: fulfilling one's potential, creativity, growth. For example challenging tasks, training, promotion.

   Self-actualisation
   Esteem
   Social
   Safety
   Physiological   <- start here

Use and criticism

Managers identify each worker's active need and offer incentives for that level. Criticism: needs do not always follow a rigid order, differ among cultures, and one action can satisfy several needs; but the theory remains a simple and widely used guide.

Training

Training is the planned effort to improve the knowledge, skill and attitude of employees for their present job. In construction, it is needed for new technologies, safety and quality.

Characteristics of training

• Planned and systematic, with clear objectives.
• Job-related and practical; short term.
• Based on the needs of the organisation and trainees (training needs analysis).
• Continuous process, with evaluation and feedback.
• Uses on-the-job methods (job rotation, coaching, apprenticeship) and off-the-job methods (lectures, workshops, simulation, case study).
• Improves productivity, quality and safety, and reduces wastage.

Selection

Selection is the process of choosing the most suitable people from the applicants for a job.

Characteristics of selection method

• Objective and based on job description and specification.
• Valid and reliable: tests measure what is needed and give consistent results.
• Fair and without bias; equal chance to all candidates.
• Multi-step (screening, tests, interview, reference, medical).
• Cost and time effective.
• Predicts future performance of the candidate.

Training develops the people who are chosen; good selection reduces the training needed.

Principles of management are fundamental guidelines or truths that explain how managers should act to manage an organisation effectively. They are flexible and are applied according to the situation.

Common principles

Division of work, authority and responsibility, discipline, unity of command, unity of direction, subordination of individual interest to general interest, fair remuneration, centralisation and decentralisation, scalar chain, order, equity, stability of tenure, initiative and esprit de corps (Fayol); and scientific selection and training, standardised methods, cooperation and a clear division of work between workers and management (Taylor). Others: planning, coordination, delegation and control.

Administrative principle vs management principle

Both approaches are complementary: administrative principles guide the organisation as a whole, while scientific management improves the work done in it.

Scientific management was developed by Frederick Winslow Taylor (1856–1915), the "father of scientific management", in The Principles of Scientific Management (1911). It is the application of scientific methods, instead of rule of thumb, to find the best way of doing a job and to increase productivity.

Four principles

1. Science, not rule of thumb: study each job scientifically (time and motion study) and set a standard method and standard output.
2. Scientific selection and training of workers: choose the worker best suited to each job and train them in the standard method.
3. Cooperation between management and workers: harmony, not conflict, so that work is done by the scientific method.
4. Equal division of work and responsibility: management plans and supervises; workers perform.

Techniques

Time study, motion study, standardisation of tools and methods, differential piece-rate wage, functional foremanship, and a planning department.

Merits and demerits

• Merits: higher productivity, lower cost, fair wages for output, standardisation.
• Demerits: workers may feel treated as machines, monotony, trade union opposition, ignores social needs.

Relevance in construction: work study of bricklaying, standard rates of output, gang composition, and productivity-based incentives.

Centralisation means keeping the main decision-making power in the hands of top management at one point.

Advantages

1. Uniform policy and decisions: the whole firm follows the same standards.
2. Strong control and coordination by the top management.
3. Economy: purchases, accounts and equipment are pooled, so costs are lower and resources better used.
4. Quick, firm decisions in emergencies by one authority.
5. Experienced top managers take the important decisions.
6. Less duplication of work and staff.
7. Simple organisation, easier fixing of responsibility.
8. Suitable for small firms or confidential matters.

Disadvantages

1. Delay in decisions for far sites since they must refer to the head office.
2. Overload of top management; they lose time on routine matters.
3. Low morale and initiative of lower managers and site engineers.
4. Poor use of local knowledge: the decisions may not suit the site condition.
5. Slow response to changes and problems.
6. Weak training for future managers.
7. Communication problems and distortion over long chains.
8. Not suitable for large, scattered projects like a road or hydropower.

Decentralisation means spreading authority to lower levels. It can be of two kinds.

Administrative decentralisation

Authority is transferred within the same organisation or government. Techniques:

1. Deconcentration: shifting some functions and staff to regional or field offices, which still report to the centre.
2. Delegation: the higher authority gives defined decision power to subordinates (e.g. site engineer sanctions small purchase), with accountability.
3. Devolution: powers are legally transferred to local bodies (e.g. local governments in Nepal under the 2015 Constitution) with their own resources.
4. Divisionalisation: organising by project or product divisions, each with its own manager.

Market decentralisation

Responsibility shifts from government or the head organisation to the private sector and market. Techniques:

1. Privatisation of public enterprises.
2. Outsourcing / contracting out of services such as maintenance and operation.
3. Public-private partnership (PPP), build-operate-transfer (BOT).
4. Deregulation and giving freedom to the market for pricing and supply.
5. User participation (user's committee in community projects).

Decision making is the process of choosing the best course of action from the alternatives to achieve an objective.

Levels of decision making

1. Strategic (top level): long-term, large decisions by the board or top management, for example entering the hydropower sector, buying a fleet of equipment, bidding for a big project. Information is uncertain and the impact is large.
2. Tactical (middle level): medium-term decisions by departmental or project managers to carry out strategy, e.g. project schedule, resource allocation, selection of subcontractors, budget.
3. Operational (lower level): daily decisions by site engineers and supervisors, for example work assignment, material issue, solving quality problems. Usually programmed and routine.

Stages (steps) of decision making

1. Identify and define the problem (e.g. delay in foundation work).
2. Collect and analyse information (facts, causes, constraints).
3. Develop alternatives (more labour, overtime, change method).
4. Evaluate the alternatives by cost, time, risk and feasibility.
5. Select the best alternative.
6. Implement the decision (assign tasks, resources and time).
7. Monitor and follow up the result and take corrective action; feedback.