EVALUATION OF THE EFFECTS OF MOTIVATION ON PRODUCTIVITY OF BUILDING CONSTRUCTION PROJECTS DELIVERY

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EVALUATION OF THE EFFECTS OF MOTIVATION ON PRODUCTIVITY OF BUILDING CONSTRUCTION PROJECTS DELIVERY

CHAPTER ONE

INTRODUCTION

1.1 Background

Productivity has been an essential contributor to corporate success. This is as a result of its direct translation into cost savings and profitability. Productivity has also been a key to long-term growth and sustainable improvement and when associated with economic growth and development generates non-inflationary increases in wages and salaries (Mojahed, 2005). The construction industry generally plays a vital role in a national economy due to the usage of its products such as roads, buildings and dams for the production of goods and services. An enhanced productivity has a positive effect on the gross domestic product (GDP) of every nation. In spite of the immense size and significance of the construction industry to the economies of most nations, its productivity is one of the controversial and least understood factors (Haskell, 2004). Productivity in the Ghanaian construction industry is largely unmeasured due to the unavailability of data for its determination.

In the construction industry, site workers account for 40% of direct capital cost of large construction projects and there is the need to maximise the productivity of human resources (Thomas et al, 2004). More so 30% to 50% of workers time is spent directly on the work and, hence, there is the need for proper utilisation. In Nigeria’s construction industry for instance, companies are currently applying various non-financial incentive schemes aimed at improving operatives’ productivity. This has significantly improved bricklayers’ productive time and accounted for 6% to 26% of variations in output between block laying and concreting activities measured (Olabosipo et. al., 2004).

Considering the fact that the construction industry in Ghana is quite similar to that of Nigeria, it can be concluded that the introduction of a non-financial incentive will contribute to worker motivation in Ghanaian construction industry. This will, in effect, enhance workers output and the overall productivity within the construction industry and further contribute to the national economy.

1.2 Problem Statement

Lack of workers’ motivation on construction sites has been identified and this has contributed the high employee turnover (Thomas et al, 2004). This has been a result of the difficulties in emphasising the positive side of worker motivation. These have generated numerous attempts over the years to enhance workers’ motivation as it is essential to eliminate the negative side of motivation which may be more psychological. According to Shun (2004), management is often frustrated by lack of motivation generated by the end of the year bonuses. Foremen, who form part of worker strength, are often unable to motivate the average craftsman today (Business Roundtable, 1989). There is therefore the need for craftsmen and other subordinates to be motivated by providing them with the right conditions and opportunity. A correlation exists between worker motivation and performance therefore, there is the need for worker to always feel motivated in order to increase performance.

According to Thomas et al, 2004, an unsatisfactory work environment can have an adverse effect on worker motivation that tends to make minimal effort towards work thereby lowering performance. This has contributed dwindling productivity that has been a major problem confronting the construction industry today which has led to the declining productivity every year for the past decades. Aggregate productivity measurements and studies have shown long-term decline with little improvement. Another major study revealed that productivity cannot be determined if it has increased, decreased or remained constant (Haskell, 2004). The labour cost component of direct capital cost of large construction projects gives the indication that, there is the need for its maximum utilisation so as to be productive.

Non empirical evidence shows that financial incentive is understood by the craftsmen to be a motivator to improve productivity in the Ghanaian construction industry. In a preliminary survey conducted on 10 organisations, 7 respondents indicated that management is not happy with the output, supervision and productivity on projects. Out of the 10 respondents, 6 found their current motivational levels to be low or fair while the remaining 4 found it high. However all respondents indicated that when the current motivational level is improved, it will go a long way to improve productivity. Workers resign from various establishments or lay down their tools for demand in improve working condition of service and this impacts on productivity. This might have contributed to Ghana’s 44^thposition on the World Labour Productivity report out of fortyeight (48) countries (Source, 1987). It is in this light that the government of Ghana set up the National Action Committee on Productivity Development to initiate and address activities that will promote wide spread awareness on the need for high level commitment and efficiency at workplaces to improve productivity (DAILIES, 2002).

In the United States it was reported that 1.53 man-days is required to put up 1m² of structures whilst Nigeria requires 5.98 man-days (Ahadzie, 2001). Productivity levels in Ghana being similar to that of Nigeria, it could be concluded that similar man-days will be required to undertake the same task. The onus, therefore, lies on construction managers to improve productivity of workers on construction projects by making sure that, supervisors at all levels are sufficiently skilled in handling tasks (Business Roundtable, 1989).

1.3 Justification of Study

The construction industry generally plays a vital role in a national economy due to the usage of its end products such as roads, buildings, dams for the production of goods and service. This is because the industry is used as an economic regulator by government who is a major client of the industry by intervening to regulate performance through financing, legislation and provision such as:

Intervention in the market through finance by grant, benefits, subsidies and taxation.
Grant for construction of industrial or commercial premises in areas of high unemployment.
Incentives for the construction of certain types of project such as private housing.
Influence construction activity through the development, repair or maintenance of project (Ashworth, 1999).

The construction industry further contributes immensely to the gross domestic product (GDP). In Ghana, an overall GDP growth rate of 5.8% and 6.2% were realized compared to targeted figures of 5.8% and 6.0% in the year 2005 and 2006 respectively (2005 and 2006 Budget). This was largely attributed to the boom in construction activities in those years. An increase in an organisation’s productivity in this sense leads to an increase in its annual turnover of construction companies which in turn promotes a country’s overall GDP growth.

Generally, a company’s productivity level is a reflection of its success and this depends on the motivation of workers. It has been discovered that labour accounts for up to a third of the total productive or non-productive time on construction site and its cost component has even risen in recent years as employers are always met with demands for higher base pay and increasing fringe benefits (Akindele, 2003). Lim and Alum (1995) productivity studies on issues encountered by Singaporean contractors revealed that, difficulties encountered in recruiting supervisors and workers lead to the low productivity in the country’s construction industry. One could adduce from this finding that the high labour turnover and communication in the construction industry contributed to the decline in worker motivation and that further impacted negatively on productivity. There is, therefore, the need to retain workers in the construction industry elsewhere of which Ghana is part since it is expensive and time consuming in recruiting new workers.

Management of the construction industry is, therefore, faced with the task of ensuring that a congenial working environment is established so as to motivate workers to stay and deliver their best. This will eliminate time overrun which is usually accompanied by cost escalation and, hence, the achievement of improved productivity. Furthermore nonempirical evidence indicates that productivity is difficult to measure in Ghana and other parts of the world since management of construction companies are unwilling to furnish researchers with data that enables the determination of productivity. This study is, therefore, to find strategies of motivating workers to improve performance which will, in effect, impact on productivity which contributes to national economic growth.

1.4 Aim And Objectives

The aim of this research is to develop ways of improving productivity through varied motivational strategies. This is as a result of the declining trend of productivity and difficulties in its measurement in the construction industry. In view of this, the research is to look into the problems relating to motivation in construction companies in Ghana.

The objectives of the above study include:

Identification of the factors that affect construction workers’ motivation at the workplace.
Establishment of the effect of the identified motivational factors have on productivity at site.
Recommendation of strategies that will motivate workers and improve productivity at construction sites.

1.5 Research Methods And Design

The methods and design adopted for this work is summarised below

1.5.1 Literature review

A thorough review of literature (i.e. publications, trade and academic journals) to identify factors that causes behavioural change and also the factors that influence productivity in the construction industry elsewhere. Various theories of motivation were reviewed to see how they can be related to the structure of the construction industry.

1.5.2 Field survey

This stage of the research involved the design, development and administration of questionnaire. The sample size was determined through statistical methods. However, distribution of questionnaires was done through random distribution. The questions were developed from information gathered from the review of literature and preliminary survey. Respondents were asked to give their opinion on general level of motivation and productivity in their respective companies. Furthermore, the factors gleaned from the literature were rated in order of degree of effect on motivation and significance on productivity from the perspective of respondent. The questionnaires were distributed and retrieved personally. Respondents were given two weeks after distribution to complete them.

1.5.3 Analysis of Data

The administered questionnaire was gathered and all data received were summarised. A critical analysis of summarised data was conducted by determining influential indices such as frequency, importance and severity on the various reviewed factors rated which enabled the researcher to:

Establish factors that motivate workers.
Establish the effect the factors have on productivity.
Recommend workable and suitable strategies that will motivate and enhance productivity improvement.

Details of the research methods and design can be find in chapter.

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