The Influence Of Welfare Factors On Sites Workers Performance

Project and Seminar Material for Building Technology BT

The Influence Of Welfare Factors On Sites Workers Performance


Abstract


The purpose of this study was to assess the influence of welfare on the performance of building site workers at Mainland construction company” (MCC). The study specifically aimed at (i) evaluating the welfare activities embarked by the management of Mainland construction company (MCC) in ensuring the performance of their building site workers (ii) examining the current performance level of building site workers at Mainland construction company (MCC) in the execution of their daily operational activities (iii) evaluating how welfare packages affect the performance of building site workers of Mainland construction company in their daily operational duties and (iv) analyzing the challenges faced by the management of Mainland construction company (MCC) in the implementation of welfare packages. A quantitative survey with the use of questionnaire was carried with 200 building site workers. Data were analyzed using statistics package for social sciences (SPSS) version 17.0. The study revealed that although there are some welfare packages for building site workers at Mainland construction company such as Salaries, Job Security, Promotion, Training and Development, Working Aids/Tools/Good Physical working Environment, Recognition, Allowances, and Retirement Package, the system is not well developed and implemented since it is centred only on the top management of the construction and concealed from the general worker. Also, the workers of MCC were therefore not fully satisfied with the welfare system and as such it has not reflected on their performance since the study found their performance to be low with regard to the welfare packages. Some major challenges the management faced in facilitating an effective compensation and remuneration packages for their worker includes insufficient funds, difficulty in adequately involving the large number of worker in the compensational plan. It is recommended that management of construction institutions should embark on appropriate welfare measures to increase workers‟ performance.


Chapter One


Introduction

This section of the research presents the introduction and background of the study, statement of the study, research questions, research objectives, significance of the study, the scope, overview of methodology, limitations of the study as well as the organization of the study.


1.1 Background of the Study

Armstrong and Baron (2002) stated that the collective skills, abilities, and experience are now regarded as making an important contribution to organizational growth, improvement and worker performance, as constituting a major source of competitive advantage. One major valuable resource in any organisation is Human resource. In a similar way, Aydogdu and Asikgil (2011) assert that in view of rapidly changing business environment, it must not be forgotten that the growth and competing power of the organization through the performance of their workers depend on committed, highly motivated, satisfied and innovative human resources. Therefore, the retention of talented workers by employers is essential through diverse welfare approaches. (Schreuder and Theron, 2001)

The lifeblood of any company is it workers. How they feel about the work they are doing and the results received from that work directly influence a firms performance and, ultimately, its stability (Osei, 2011). For example, if firm workers are highly motivated and proactive, they will do whatever is necessary to achieve the goals of such firm as well as keep track of it performance to address any potential challenges (Osei,2011). An organization whose workers have low welfare is completely prone to both internal and external challenges. This is because its workers are not going the extra mile to maintain the organization‟s stability. Osei (2011) suggested that unstable organization ultimately underperforms. Franco (2002) in his worked also noted that, results of studies on construction worker welfare in developing countries have not yet been formally compared to establish common themes.

Franco (2002) defines welfare as an individual’s degree of willingness to exert and maintain effort towards firm goals. A literature review conducted collecting evidence of welfare of construction workers from both developing and developed contexts concluded that theories developed in western countries need be thoroughly assessed before using in a developing context (Dolea, 2005).

The rewards that individuals expect to get in return for their contributions in the workplace can be categorized into non financial rewards, indirect financial rewards, and direct financial rewards.

Non financial rewards consist of the satisfaction that a person receives from the job itself or from the psychological and/or physical environment in which the person works (Mondy and Noe, 1996). These rewards include opportunities to perform meaningful work, social interactions with others in the workplace, job training, recognition, employer brand, and a host of other similar factors (Kohli and Deb, 2008; Mondy and Noe, 1996).

Indirect financial rewards are the second category of rewards where individuals expect to get in return for their contributions in the workplace. These are indirect monetary rewards and include those items of financial value the organization provides to workers that do not result directly in workers receiving spendable cash.
Examples include medical insurance, life insurance, and various benefits such as company car etc

Direct monetary rewards encompassing the payment of cash to workers for work accomplished or efforts expanded. Such rewards include salary, wage, incentives, and commissions (Kohli and Deb, 2008);

A calculation and analysis was done by the Ministry of Health (MOH) in 2006 that the number of architects (including professional architects, community health architects, enrolled architects, and midwives) at 16,316, a shortage of 30,999 architects in accordance with the “workable” number of 47,315 (WHO, 2007). Among many factors contribute to the low 2006 population to nurse ratio reported by the Nigeria Health Service (GHS) of 1,537:1, was strongly boiled down to inadequate welfare for health personals but few match the influence of nurse migration.

A study was conducted by Allen, Shore and Griffeth in 2003 and found that the lack of adequate welfare and promotional chance yielded in high performers‟ turnover. Organization`s ability going forward, having a strategic rigorous, cyclical, ongoing process around attraction and retention of talent management may be the most important differentiator between success and failure of a firm, now and into the future (Williamson,2011).
In various organizations, turnover rates are rapidly increasing; if workers are unhappy with their firms they tend to leave the organization (Schuler & Jackson, 2006). DeYoung (2000) reveals in his studies that many organizations are facing such challenges in the development of an worker attraction and retention strategy. Gberevbie (2008) has agreed that an organization‟s inability to formulate and implement welfare packages which serve as strategies, capable of attracting and recruiting well able workers and retaining them to achieve organizational goals, is one of the main challenge facing organizations in the area of performance. Other researchers such as Kaliprasad (2006), has confirmed that despite the fact that a company may try to bring all these factors into play to enhance worker attraction and retention, an worker can still choose to leave the workplace for example, bad management in the implementation of welfare packages. He found out four interlinked processes that can be utilized for an effective human resource management system: the welfare process; the interaction process; the visioning process; and the learning process. The Mainland construction company as a corporate entity cannot divulge itself from the concept of welfare in ensuring the performance of workers. As obviously, the compelling and competing demands devoid of adequate welfare packages facing the construction are affecting the best delivery of healthcare to Nigeriaians (Appiah, 2011). So the question is, how effective are these welfare packages to building site workers performance of MCC?

According to Appiah (2011), even though management of (MCC) claim instituted a number of welfare packages for worker including annual rewards to attract, retain and boost worker performance, anecdotal evidence has revealed conflicting messages with regard to its effect. It is presumed that productivity drops due to the learning curve involved in understanding the nature of the job and the organization (Sutherland, 2004). Base on the above theories there exist the need to carry-out the Evaluation and Assessing the Influence of Welfare, on the Performance of building site workers at Mainland construction company”


1.2 Problem Statement

According to Kumar (2007), the World Health Organization‟s 2006 World Health Report found that Africa is responsible for 24% of the global burden of disease but only 3% of the world‟s healthcare workforce to manage it. The loss of skilled labour from poorer to developed countries due to inadequate welfare packages to construction workers has raised global concern and has been labelled “brain drain” (Nyonator, 2005). However, the human resources available to to handle large construction projects in Nigeria is not enough and the few are leaving the country.

The Mainland construction company emergency cases recorded over the past 3 years have increased and it is expected that this will increase further in the upcoming years, therefore there is the need to apply the best welfare packages on their building site workers in order to attract and retain the talented and skilful human capital in the construction. Dess and Shaw (2001) argued that, lack of welfare packages affect the performance of workers, there by resulting to high turnover rate, which incurs significant costs, as replacement of these workers is expected to take up to 7 years of on-the-job training or 2.5 new workers to replace one skilled and experienced retiree. In other to overcome such challenges by the management of MCC, there was the need in carrying-out the “Evaluation and Assessing the Influence of Welfare, on the Performance of building site workers at Mainland construction company”. In respect, the following objective was set.


1.3 Main Objective

The main objective involves Assessing the Influence of Welfare, on the Performance of building site workers at Mainland construction company” (MCC).


1.4 Specific Objectives

  1. To evaluate the welfare activities embark by the management of Mainland construction company (MCC) in ensuring the performance of their building site workers.
  2. To examine the current performance level of building site workers at Mainland construction company (MCC) in the execution of their daily operational activities.
  3. To evaluate how welfare packages affect the performance of building site workers of Mainland construction company in their daily operational duties.
  4. To analyze the challenges faced by the management of Mainland construction company (MCC) in the implementation of welfare packages.

1.5 Research Questions

  1. What are the welfare activities embark by the management of Mainland construction company (MCC) in ensuring the performance of their building site workers.
  2. What is the performance level of building site workers at Mainland construction company (MCC) in the execution of their daily operational activities?
  3. How does a welfare package affect the performance of building site workers at Mainland construction company in their daily operational activities?
  4. What are the challenges faced by the management of Mainland Construction Company (MCC) in the implementation of welfare packages.

1.6 Significance of Study

In recent times, several studies have explore the links between incentives, welfare and retention of construction workers in developing countries (Wibulpolprasert, 2003). It is also very crucial to summarize what affects construction workers to allow governments to tailor policies to alleviate the current human resource crises and a need has been identified for systemic reviews, that will assist policy makers to manage human resources for health institutions, (Chopra, 2008). Developing countries must implement strategies to protect their building projects, while recognizing construction workers as the autonomous people with rights. This systematic review aims to examine the importance of different welfare factors and their effectiveness of interventions to improve welfare in developing countries to reduce medical migration, both within and across countries.

Workers are the firm‟s key resource and the success or failure of organizations center on the ability of the employers to attract, retain, and reward appropriately, the talented and competent workers. According to Armstrong (2003) workers‟ willingness to stay on the job largely depends on compensational packages of the organization. In the health sector, particularly in developing countries, worker attraction and retention through welfare packages is regarded as an important human resource management issue. In such an environment, the attraction and retention of well trained and skilled worker is critical in order to achieve sustained high levels of service delivery. Paying construction workers with adequate salaries and allowances on regular basis has been identified as a key driver of welfare, retention and attraction of Talented and Skillful Human Capital (WHO, 2006). Given the importance ofhuman resources as a source of strategic and competitive advantage and the fact that worker turnover is inevitable, the attraction and retention of skilled worker is vital in any organizational set up. Any critical shortages of building site workers prevents the delivery of quality building management. For instance, according to WHO (2006) it has been noted that a key obstacle to achieving the Millennium Development Goals is attributed to the absence of a mix of trained and motivated health professionals, which affects the performance of the health system.

Organizations need to take deliberate efforts to assess the levels of worker satisfaction as part of an attraction and retention strategy.

Therefore, it is imperative for managers to identify factors that workers‟ value and which consequently influence their intention to continue working for the organization.


1.7 Scope of the Study

The study was conducted within the framework of evaluating and assessing the Influence of Welfare on the Performance of building site workers at Mainland construction company. The study was carried out at the various departments in MCC. It is a case study approach of the workers welfare so it covered both the workers and management units to reflect the entire industry approach to welfare on corporate worker performance. The study focused only on the building site workers of MCC comprising engineers, architects, electricians, and designers. Hence, the result will not be generalized but its findings would be placed in the relevant context of the individual institutions studied.


1.8 Limitation of the Study

The project has a deadline within which it has to be submitted. It is therefore not possible to extend the study to cover other health sectors within the country. The fulfilment of this project will faced many constraints. First, the project would be constrained by time. Second, the limitation in finance has necessitated the research to be confined to the Lagos Metropolitan area. These notwithstanding, the challenges would not in any significant way invalidate the fundamental purpose and design of the project. Furthermore, the sample size for the project is not large enough to enable us generalizes the finding to the whole country.


1.9 Organisation of the Study

The study comprises five chapters. First, Chapter One introduces the study with the background, the problem statement, the objectives, research questions, significance of the study, overview of the methodology, scope of the study, limitations and the organization of the study. Secondly Chapter Two deals with the review of related literature. Thirdly, Chapter Three describes the methodology of the study which includes research design, population of the study, sample size and sample techniques, data collection methods and research instruments used. The Fourth Chapter dealt with analyzing and presenting of data. Chapter Five which is the final chapter contains the summary of findings, conclusion and recommendations


Chapter Five


Summary of Findings, Conclusion and Recommendations

5.0 Summary of Findings

The summary of findings are thematic according to the research objectives.

5.0.1 Welfare activities by the management of Mainland construction company

The research findings indicated that the management of Mainland construction company (MCC) adopts some key welfare packages to encourage their workers to perform better. Among these packages include Salaries, Job Security, Promotion, Training and Development, Working Aids/Tools/Good Physical working Environment, Recognition, Allowances, and Retirement Package. These packages were identified to be given to the worker on target and salary base.

It was observed from the results of respondents that the management ofMainland construction company do not give out incentive and compensational packages based on performance, dividend or revenue. It can however be understood for dividend and revenue base since the construction is not a profit generating construction and individual worker output cannot be directly connected to financial profitability. However, the management should have a system to assess the performance of theworkerin order to fairly and effectively accord incentives and compensations to those who truly deserve it, instead of based on those who are influential or of high position. Majority of the respondents indicated the management has no control mechanisms for monitoring the implementations of welfare system, whiles others indicated that the control mechanisms are centred only on the top managerial body; Human resource department, management approval and board approval. This implies that the welfare system of MCC is not transparent to all levels of worker.

Bonuses, Health Insurance, Incentives, Auto Loan, Personal Vehicle/Transport System and Profit Sharing were identified to be some of the least utilized welfare packages the management of the MCC employ. This the study observed that it could be attributed to the fact that Mainland construction company is not a recognized profit making organization and therefore would not employ welfare packages that are monetarybased.

5.0.2 Current Performance Level of Building site workers at (MCC)

The study assessed the current performance level of building site workers at Mainland construction company in relation to the current state of work incentive condition and benefits at the construction. The findings show that majority of the building site workers are not motivated to perform better with the current state of work incentive condition and benefits at Mainland construction company. To this, the respondents indicated that the reason is because incentives are needed to boost their morale at the workplace. The study realized that at the healthcare working environment, poor performance can be exhibited in areas such as poor worker language to patients, giving special attention to people who are rich and ignoring the poor in hope of getting monetary favour and highrateofabsenteeism.Thefindingsfurtheridentifiednegativeoutputofclinicalworker performance in terms of not working harder to serve more patients at an environment where they are less motivated. They also tend to develop negative attitude towards their colleagues when they are not motivated.

5.0.3 How Welfare Packages Affect the Performance of Building site workers.

The study identified so many way by which welfare packages affect the performance of building site workers. It first identified some of the welfare packages that affect to a high level the performance of worker to include Promotion, Retirement package, Job security, working aids/tools and good physical environment, training and development and recognition. It realized that promotion to a higher rank motivate building site workers to give out their best and helps them to know their progress in the workplace, enhancing theirself-worth.

Promotion is also accompanied by higher salaries. Job security is important to the worker since work is central in the lives of people and sometimes the respect accorded to people in terms of how they are treated or even addressed depends on whether or not they work. Due to this importance of work, people may feel „alienated‟ when they lose their jobs or have no work to do and would therefore do anything possible including improving their performance to secure their jobs.

Recognition motivates workers as it involves the acknowledgement of the efforts, creativity and willingness of workers to put in extra effort. Moreover, every person wants to be praised or recognized for tasks he or she accomplishes. The respondents indicated from the data that availability of required medical equipment and physical structures at MCC influences the performance of their building site workers. Also, insurance and retirement packages adopted by MCC have a positive effect on their worker performance. Training and Development packages adopted by MCC serve as welfare strategies that influence the performance of their workers.

A correlation analysis to find a relationship between welfare and performance indicated that there is a positive and statistical significant relationship between welfare and three out of four dimensions of the worker‟s performance. Welfare was related to worker performance in terms of their responsiveness, availability and competence. Welfare was not found to influence productivity dimension of performance.

5.0.4 Challenges Faced with the Management of Mainland construction company(MCC)

During the study, the study identified some loopholes with the welfare package system of the Construction as majority of the respondents indicated dissatisfaction with the current benefit of compensational packages. This was because the management of the construction were facing some challenges in managing the compensational and remuneration system. One of the key challenges that undermine the effective of the welfare system of the Construction is the low level of concern accorded to it by the management of the construction.

From the findings, some other major challenges the management of the Mainland construction company is faced with in facilitating an effective compensation and remuneration packages for their worker includes insufficient funds, difficulty in adequately involving the large worker number in the compensation and incentive plan, the interference of politics and government directives, partiality as a result of personal favours and favouritism, bad management practices that give not take complete responsibility of worker welfare packages and low or no knowledge about the needs of workers, which would influence the significance of compensational and remuneration package to the workers.


5.1 Recommendations

First, the construction management needs to set clear performance goals and job descriptions for workers at all levels. The goals should form a basis for the evaluation of tasks completed, both by the worker themselves and by management. Positive reinforcement should be administered for work well done. This will ensure a transparent and fair welfare system.

Second, the study revealed the building site workers of MCC were unhappy with the present remuneration package and some regarded it to be below average public sector given the conditions they operate in. The building site workers representatives in consultation with Ministry of Health should negotiate and set up appropriate salary scales and allowances that are in tune with the current economic environment. This will ensure that building site workers get adequate salaries and incentives to meet their basic need and also provide one of the most important extrinsic welfare factors for the construction workers to increase their performance at constructions.

Third, the construction should develop a welfare system that influences career path and professional development. The study identified that one of the areas that worker are well motivated is the training and development, because most of the worker do not want to get stucked at one aspect of their medical field. The ministry of health should therefore develop a training and development policy and award programs which is based on performance to enable construction worker to upgrade their skills and knowledge in their field.


5.2 Suggestions for Further Research

This study evaluated the influence of welfare package on the performance of worker at Mainland construction company. It is thus suggested that the same study should be conducted but applied more extensively in other construction centre across the country in other to generalize the results to the entire population of Construction workers.


5.3 Conclusion

This study evaluated the influence of welfare on worker‟s performance; the caseof Mainland construction company (MCC). This study concludes that although there are some welfare packages for building site workers at Mainland construction company, the system is not well developed and implemented since it is centre only on the top management of construction and concealed from the general worker. The workers of MCC are therefore not fully satisfied with the welfare system and as such it has not reflected on their performance since the study found their performance to be low with regard to the welfare packages. Some challenges are faced by the management in managing the compensational and remuneration system which needs to critically evaluated and improved upon.


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