Post on 12-Jan-2023
RECRUITMENT SOURCES AND EMPLOYEE TURNOVERIN SECTORS OF THE CONSTRUCTION INDUSTRY
by
James SommervilleM.Sc., M.C.I.O.B., M.I.Mgt.
This thesis is submitted in accordance with the requirements ofHeriot-Watt University for the degree of Doctor of Philosophy.
Department of Building Engineering and SurveyingHeriot-Watt University
September 1993.
This copy of the thesis has been supplied on the condition that anyone who consults itis understood to recognize that the copyright rests with its author and that no quotationfrom the thesis and no information derived from it may be published without the prior
written consent of the author.
© copyright 1993
Page Number
Contents i
List of Appendices v
List of References v
List of Figures vi
List of Tables xi
Acknowledgements xiii
Abstract xiv
CHAPTER 1: Introduction
1.1 Introduction 1
1.2 Hypotheses 1
1.3 Objectives 2
1.4 Reasons for carrying out the Research 4
1.5 Methodology and Sample 5
1.5.1 Limitations on Sample 6
1.5.2 Timescale 6
1.6 Contribution of Research 7
1.7 Thesis Format 7
CHAPTER 2: The Construction Industry 14
2.1 Defining 'The Construction Industry' 15
2.2 Resources: Labour and its substitutes 18
2.3 Industry Uniqueness 23
1
Page Number
CHAPTER 3: Organisations, People and Motivation 27
3.1 The Organisation 28
3.2 Human Resource Management 33
3.2.1 Organisational Strategies and Human Resources 34
3.3 Managing People 35
3.4 Organisational Behaviour 35
3.5 Work, Rest and Play 37
3.5.1 Motivation and Job Satisfaction: 38Protagonists /Theories
3.5.2 The Work of Maslow 40
3.5.3 The Work of Herzberg 42
3.5.4 Subsidiary Theories 46
3.6 Control 52
CHAPTER 4: Labour Turnover and Recruitment Practices 57
4.1 Labour Turnover 58
4.2 Turnover Defined 61
4.2.1 Voluntary or Involuntary 69
4.3 Measurement of Labour Turnover 69
4.4 Causal Factors in Labour Turnover 75
4.4.1 Isolated Factors 75
4.4.2 Recruitment Procedures 78
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Page Number
CHAPTER 5: Ramifications of Turnover 81
5.1 The Ramifications of Labour Turnover 82
5.2 The Employee's Perspective 83
5.2.1 Monetary and Non-monetary Aspects 83
5.2.2 The Employee's Determination 86
5.3 The Employer's Perspective 86
5.3.1 Non-positive Consequences 88
5.3.1.1 Monetary: Wage Costs and Non-wage Costs 88
5.3.1.2 Non-monetary 93
5.4 The Wider Environment 98
5.5 The Industry 99
CHAPTER 6: Synthesis of the Research 101
6.1 Human Resources 102
6.2 Functions of Recruitment 102
6.3 The Applicant Pool 104
6.4 Recruitment Sources 107
6.4.1 Investigations into Sources and Effectiveness 113
6.4.1.1 Factors in Differential Source Effectiveness 113
6.4.1.2 School and Vocation 115
6.5 Synthesis 117
111
Page Number
CHAPTER 7: Methodology 123
7.1 Method 124
7.2 Research Classification 124
7.2.1 Purpose of Research 125
7.2.2 Approach to Research 126
7.2.3 Nature of Research 126
7.3 Consideration of the Subject 127
7.3.1 Approach to the Research 127
7.3.2 Applicable Methods 130
7.3.3 Data Sources 131
7.4 The Pilot Study 132
7.4.1 Feedback from the Pilot Study 135
7.4.2 Procedure 136
7.4.3 Use of Feedback 138
7.5 Analysis of the Pilot Study and other Data 138
7.5.1 Statistical Analysis of Data 140
7.6 Underlying Rationale 141
7.6.1 Nature of Contribution 142
CHAPTER 8: Results of the Research 143
8.1 The Main Study 144
8.1.1 The Contibuting Organisations 144
8.2 Organisation Nol. 147
8.3 Organisation No2. 159
iv
Page Number
8.4 Organisation No3. 170
8.5 Organisation No4. 179
8.6 Organisation No5. 189
8.7 Further Analysis of the Data 198
8.7.1 ONE-WAY and TWO-WAY Analysis 198of Variance (ANOVA)
CHAPTER 9 Discussion and Analysis of the Results 201
9.1 Generally 202
9.2 Humans in Construction 202
9.3 The Construction Industry 203
' 9.4 Adopting Alternative Ideas 204
9.5 Supply and Demand 205
9.5.1 Recruitment Sources 206
9.6 Progression with the Research 207
9.7 Analysis of the Results 208
CHAPTER 10: Conclusions and Recommendations for 211Further Research
10.1 Conclusions 212
10.2 Achievements of the Research 215
10.3 Implications and Applications 218
10.4 Recommendations for Further Research 222
V
Page Number
APPENDICES
Appendix 1 Organisation Responses 224
Appendix 2 Raw Data 226
Appendix 3 ONE-WAY ANOVA 297
Appendix 4 TWO-WAY ANOVA Nol 303
Appendix 5 TWO-WAY ANOVA No2 308
LIST OF REFERENCES
Chapter 1 313
Chapter 2 314
Chapter 3 317
Chapter 4 327
Chapter 5 331
Chapter 6 335
Chapter 7 339
LIST OF FIGURES
Chapter 1
Figure 1.1 Flowchart of the Overall Process 8
Figure 1.2 Thesis Structure 9
Figure 1.3 Development of the Thesis Structure 10
Chapter 2
Figure 2.1 The Interaction within the Construction Industry 15
Figure 2.2 Output - v - Interest 18
Figure 2.3 Males and Females in certain Occupations 20
vi
Page Number
Figure 2.4 Employees in Employment in Contracting 20Organisations
Figure 2.5 National Construction Turnover Index 23
Figure 2.6 National Construction Turnover Indices 25
Chapter 3
Figure 3.1 Four Organisational Variables 28
Figure 3.2 Conceptual Model 31
Figure 3.3 Contingency View 32
Figure 3.4 Two-Way Flow 36
Figure 3.5 Motivation Model 38
Figure 3.6 Maslow' s Hierarchy 40
' Figure 3.7 Maslow - Alderfer Interface 44
Figure 3.8 The Influence of the 9 C's upon Expectancy 50
Figure 3.9 Individual Controls 53
Figure 3.10 Control Forces 54
Chapter 4
Figure 4.1 Functional/Dysfunctional Taxonomy 60
Figure 4.2 Total Employees - v - Self Employed 62
Figure 4.3 Number of Male and Female Employees 63
Figure 4.4 Employees in Types of Organisations 64
Figure 4.5 Low Turnover and Factors which 66Influence/Promote it
Figure 4.6 High Turnover and Factors which 67Influence/Promote it
vii
Page Number
Figure 4.7 Management of Voluntary and Involuntary Turnover 70
Figure 4.8 Log-Graph Cohort Analysis 76
Chapter 5
Figure 5.1 Consequences of Employee Departing 85
Figure 5.2 Turnover Management Economics 89
Figure 5.3 Performance- Replacement Strategy Matrix 90
Figure 5.4 Taxonomy of Turnover Consequences 94
Chapter 6
Figure 6.1
Relationships between recruitment and 102the Organisation
' Figure 6.2 Recruitment Approach Typology 106
Figure 6.3 Modelling the Enigma 119
Chapter 7
Figure 7.1
Inquiry Process
128
Figure 7.2
Organisation Selection Matrix
134
Chapter 8
Figure 8.1 Organisation Nol % Recruited by Source 148
Figure 8.2 Number of Recruits by Source 149
Figure 8.3 Source and Age at Recruitment 150
Figure 8.4 Recruits sorted by Sex and Source 151
Figure 8.5 Recruits by Age and Sex 152
Figure 8.6 Distribution of Ages at Recruitment 152
viii
Page Number
Figure 8.7 Recruits by Sources each Year 153
Figure 8.8 Numbers recruited each Year 154
Figure 8.9 Length of Service 154
Figure 8.10 Number Above/Below Mean Service 155
Figure 8.11 Length of Service and Sex 155
Figure 8.12 Employees Above/Below Mean Service 156
Figure 8.13 Source and mean Service Produced 156
Figure 8.14 Source Variance from Mean Service 157
Figure 8.15 Organisation No2 % Recruits by Source 160
Figure 8.16 Number of Recruits by Source 160
. Figure 8.17 Source and Age at Recruitment 161
Figure 8.18 Recruits sorted by Sex and Source 162
Figure 8.19 Recruits by Age and Sex 162
Figure 8.20 Distribution of Ages at Recruitment 163
Figure 8.21 Recruits by Sources each Year 164
Figure 8.22 Numbers recruited each Year 164
Figure 8.23 Length of Service 165
Figure 8.24 Number Above/Below Mean Service 165
Figure 8.25 Length of Service and Sex 166
Figure 8.26 Employees Above/Below Mean Service 166
Figure 8.27 Source and Mean Service Produced 167
Figure 8.28 Source Variance from Mean Service 168
Figure 8.29 Organisation No3 % Recruited by Source 171
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Page Number
Figure 8.30 Number of Recruits by Source 171
Figure 8.31 Source and Age at Recruitment 172
Figure 8.32 Recruits sorted by Sex and Source 173
Figure 8.33 Recruits by Age and Sex 173
Figure 8.34 Distribution of Ages at Recruitment 174
Figure 8.35 Recruits by Sources each Year 174
Figure 8.36 Numbers recruited each Year 175
Figure 8.37 Length of Service and Sex 175
Figure 8.38 Number Above/Below Mean Service 176
Figure 8.39 Source and Mean Service Produced 176
' Figure 8.40 Source Variance from Mean Service 177
Figure 8.41 Organisation No4 % Recruited by Source 180
Figure 8.42 Number of Recruits by Source 180
Figure 8.43 Source and Age at Recruitment 181
Figure 8.44 Recruits sorted by Sex and Source 182
Figure 8.45 Recruits by Age and Sex 182
Figure 8.46 Distribution of Ages at Recruitment 183
Figure 8.47 Recruits by Sources each Year 184
Figure 8.48 Numbers recruited each Year 184
Figure 8.49 Length of Service and Sex 185
Figure 8.50 Number Above/Below Mean Service 186
Figure 8.51 Source and Mean Service Produced 186
Figure 8.52 Source Variance from Mean Service 187
x
Figure 8.53
Figure 8.54
Figure 8.55
Figure 8.56
Figure 8.57
Figure 8.58
Figure 8.59
Figure 8.60
Figure 8.61
Figure 8.62
' Figure 8.63
Figure 8.64
Figure 8.65
Figure 8.66
Organisation No5 % Recruited by Source
Number of Recruits by Source
Source and Age at Recruitment
Recruits sorted by Sex and Source
Recruits by Age and Sex
Distribution of Ages at Recruitment
Recruits by Sources each Year
Numbers recruited each Year
Length of Service
Number Above/Below Mean Service
Length of Service and Sex
Employees Above/Below Mean Service
Source and Mean Service Produced
Source Variance from Mean Service
Page Number
190
190
191
192
192
193
194
194
195
195
196
196
197
198
LIST OF TABLES
Chapter 2
Table 2.1
Table 2.2
Table 2.3
Table 2.4
Construction Output
Typical Range of Employment
Contracting Organisation's Employees
Construction Sector Turnover
17
19
20
22
Chapter 7
Table 7.1 Organisation Contact 134
xi
Page Number
Chapter 8
Table 8.1 Organisation Descriptions 145
Table 8.2 Composite Recruitment Sources 146
Table 8.3 Sources of Recruitment Utilised (Nol) 147
Table 8.4 Quit Rates for Organisation Nol 157
Table 8.5 Sources of Recruitment Utilised (No2) 159
Table 8.6 Quit Rates for Organisation No2 168
Table 8.7 Sources of Recruitment Utilised (No3) 170
Table 8.8 Quit Rates for Organisation No3 177
Table 8.9 Sources of Recruitment Utilised (No4) 179
' Table 8.10 Quit Rates for Organisation No4 188
Table 8.11 Sources of Recruitment Utilised (No5) 189
Chapter 9
Table 9.1
Source Effectiveness
208
Table 9.2
Organisational Source Usage 209
xii
Acknowledgements
No author is an island, each relies on a multitude of other individuals for support,succour, advice, guidance and unstinting faith.
This author would like to thank Mr R. K. Stocks for the vast support, advice andguidance given so freely, over the years.
Mrs S.A. MacAllister of Glasgow Polytechnic deserves due recognition for theguidance on all things statistical.
The organisations who facilitated the research are held to be shining examples ofenlightened participants within the industry, and are thanked for their willingnessand support.
Finally, thanks must go to the greatest support of all; my wife Lynda.
Abstract
The construction industry organisation must secure recruits who will not only serve
to execute the immediate tasks, but also enable management of the organisation to
adopt longer term strategic frameworks. In order for management to execute these
longer term strategies the human resources employed must be perceived as being
available as and when required, or else having stable tenure.
Recruitment practices within the industry have ignored an important factor when
seeking to secure the potential recruit i.e. which source of recruitment is the more
effective in terms of securing employees who remain within the organisation for an
acceptable period of time. Personnel records of construction industry organisations
were analysed and from this analysis sources identified which are predictive of
' lower turnover rates and also of stable or longer employee tenure. As a control, an
organisation quite distinct from those related to construction was analysed as part of
the study, to ensure that the findings were not spurious nor unique to this particular
industry.
The procedure is applicable to all organisations within the construction industry as
well as other industries. Being relatively straight-forward to setup and execute, the
procedure involved affords the organisation the opportunity to focus on those
sources of recruitment which are clearly shown to be the more effective thus
releasing organisational resources e.g. finance, managerial expertise, for application
in other areas.
The research clearly shows the link between Recruitment Source and Employee
Turnover.
xiv
1.1 INTRODUCTION
The catalytic impetus for this research stems from the author's own participation
within the construction industry. Several managerial posts with national and.
multinational organisations giving rise to the interest in the alternatives faced by those
recruiting employees within the construction industry.
The construction industry as considered within this work may be taken in the broadest
sense i.e. to include all those professions and activities which contribute towards the
production of the built environment e.g. Architects, Surveyors, Contracting
Organisations (both Public and Private Sector), Component Manufacturers, Materials
Suppliers, etc. The bodies which make up the construction industry require
employees to carry out numerous tasks and the sources used to secure these
employees, and the resultant influence of each of the recruitment sources on employee
turnover is the focus of this research.
The following text sets out the underlying hypotheses along with the objectives of the
work, and also offers reasons as to why the work was executed. Suggestions as to
how the work and its findings contribute to the wider pool of knowledge are explored,
as are suitable research methodologies and the sample studied. Following on from
this is a brief description of the contents of each chapter which should guide the
reader into and through the thesis.
1.2 HYPOTHESES
In executing any research it is implicit within the work that the researcher holds
certain hypotheses to be true. Within this research there are four hypotheses which
will be considered and either supported as true, by the literature available and
research findings, or rejected as mistaken. These hypotheses are as follows:
1
Hypothesis A
That the use of particular recruitment sources will result in an organisation
recruiting employees who remain with the organisation for significantly longer
periods of time.
Hypothesis B
That the use of certain recruitment sources will result in employee cohorts whose
turnover rates are more manageable.
Hypothesis C
That the use of certain recruitment sources will improve the overall effectiveness
of the recruitment practices and procedures carried out within the organiation.
Hypothesis D
That employees joining or leaving the organisation will have significant effects on
other employees, and the organisation generally.
With a clear statement of the underlying hypotheses to be considered within the
research, it allows the researcher to focus on applicational objectives.
1.3 OBJECTIVES
Gannon (1) indicated the importance and usefulness of analysing the various
recruitment sources used to secure employees within one specific organisation in New
York, which although suggesting predictive sources, subsequently received little
further impetus or investigation.
Securing contracts (irrespective of their nature e.g. for design services, for production
of components, delivery of materials, construction of the building), entails future
2
execution of obligations and as such management must be capable of resourcing each
obligation, with human resources being perhaps the more difficult of all resources to
plan for succinctly and accurately.
This research therefore investigates and reports on the recruitment sources used in
various sectors of the construction industry, it relates the recruitment sources used to
the organisation's employee turnover and assesses whether any of these recruitment
sources may be useful in indicating stable employees and also be predictive of
employee retention.
The primary applicational objectives of the research can be summated as follows:
To investigate recruitment sources used by construction organisations and to
deduce if any of the recruitment sources used may act as an aid in improving the
recruitment process as a function of the construction industry.
This objective is viewed from the point of view of Management: they are charged
with securing and executing sufficient profitable work as will ensure full employment
for all members of the organisation. The recruitment sources used may well be a
major influence on the success or otherwise of the effort directed towards meeting the
human resourcing need.
A secondary applicational objective of the research can be stated as follows:
To consider and summarise the effects of employee turnover upon the
organisation, and the use of each recruitment source, especially those which may
serve as indicators of long term employee tenure within the organisation.
This objective is viewed from a two pronged perspective, namely; those of
management and of the potential employee. From management's point of view long
3
term tenure allows them to consider strategic options on a more substantial basis.
Considered from the employee's point of view it may be that they derive substantial
benefit from long term tenure, not only in remunerative terms but also in
psychological currency. Additionally, this objective may be viewed from the
individual organisations' standpoint and also from that of the industry as a whole i.e.
image, culture, desirability, function, roles, environmental impact (on the wider
business community, rather than nature).
A tertiary applicational objective of the research may be stated as follows:
To consider the hypotheses stated and provide substantive data and findings
which may be replicated and/or expanded by others at a later date.
This objective being viewed as an integral part of a sound research undertaking which
attempts to explain and/or expand the current knowledge within any field.
These objectives infer that there is some underlying reason which supports execution
of the research.
1.4 REASONS FOR CARRYING OUT THE RESEARCH
The reasons for carrying out any piece of research may be considered under several
broad headings( 2,3):
a) Those which are personal; and,
b) To review current and existing knowledge seeking to grasp its wider
meaning and impact; and,
c) To offer a construct which may be new or novel; and,
d) To explain some fact, previous finding or occurrence.
In this instance all four headings are applicable since:
i) the personal reward of enquiry, expertise development and comprehension can only
be brought about by work of this nature; and,
4
ii) the consideration of current and existing knowledge allows the researcher to focus
the available material and pass on resulting information to others; and,
iii) construction from, or explanation of facts, may prove of worth to others and so
add to the greater pool of knowledge; and,
iv) the industry itself may be able to take the work, or elements from it, and make use
of them; and,
v) the work and its findings may prompt others to consider areas in some detail; and,
vi) Several Professional and Industrial bodies, alongside individual researchers, have
shown the need, and indeed the importance, of fully understanding the influences
which act upon employees and the recruitment processes used within the construction
industry.
This research represents an attempt to analyse a particular aspect of these processes
using a readily replicable methodology.
1.5 METHODOLOGY AND SAMPLE
An implied objective of this research is that it should be non-specific, but rather
generalisable and therefore applicable to organisations within the construction industry
generally. Based on this premise it was decided that the research should encompass a
suitably broad spectrum of organisations with regard to:
A. Recruitment Sources utilised.
B. Employee Turnover.
C. Employee Turnover related to Recruitment Source.
D. Operational areas.
E. Composition of workforce.
F. Diversity of duties undertaken by employees.
5
The methodology implemented is fully discussed later in the thesis, and is supported
by the results obtained from the research which relate to a range of organisational
types and sizes, viewed both longitudinally and transversely.
Cognisance is taken of the physical constraints placed upon the researcher whilst
collecting, assimilating and processing data. The individual seeks to secure sufficient
data as will make the research worthwhile, both on a personal level and on an
industrial plane and supervision by Mentors proves invaluable when allocating time
towards the necessary field work, processing data and presenting the information and
the resultant findings for consumption.
1.5.1 Limitations on Sample
Whilst many organisations were approached to take part in the research, the resulting
number who actually participated reflects an underlying resistance to research from
the industry's constituent members. The organisations which participated within the
research do however form a broad band from within the industry. They include: a
Multi-disciplinary Surveying Practice, a component Manufacturer, a Contracting
Organisations, a firm of Project Managers, and also an organisation which is on the
edge of the construction industry.
1.5.2 Timescale
The construction industry by its very nature undergoes cyclical trends (4,5,6) which
influence the level of recruitment at any point in time. In order to reduce the anomaly
of these cyclical trends, a period of 5 years was selected as being the minimum
framework which would be suitably dynamic and yet stable enough to iron out some
of the cyclical influences and provide a framework from which to collect data.
Data permitting, then the fullest possible time period within the organisation is
covered, in order to eliminate discrepancies and also to ensure a sufficiently broad
6
time frame. Coupled with the time period selected, and often a primary constraint, is
the need to reduce the intrusion into personnel data to the very minimum possible and
also to reduce the disruption caused to the operating unit under consideration, whilst
bearing in mind current legislation e.g. The Data Protection Act. The researcher is
there as an invited guest, and as such should not take unnecessary liberties nor impose
too heavily on those engaged in their everyday course of duties or business activities.
1.6 CONTRIBUTION OF RESEARCH
This research examines the Recruitment Sources used in Sectors of the Construction
Industry and the relationship between these sources and Employee Turnover. It
further considers organisational implications of recruitment and generally, manpower
resourcing. Demanding literature searches have shown that this approach is
innovatory in the construction field, therefore the findings furnish a complementary
qualitative and quantitative analysis of Recruitment Sources and Employee Turnover.
1.7 THESIS FORMAT
The thesis is presented in a structured format which offers the research in a logical
and comprehensible fashion. The text is divided into a series of numbered chapters,
each presenting component sections of the research. The chapters themselves are so
structured that they support and interrelate with each other and pilot the reader
towards subsequent sections.
Figures 1.1, 1.2 and 1.3, provide the reader with overviews of the processes involved
in the construction and development of the thesis.
7
Start
I consider topic
preliminaryliteraturescanning
consult.withsupervisor
1
develop hypotheses
searchesmanual and
on-line
literature review considermethodologies
initialframework
setidentify data
sources
consult withsupervisor
1
collect data
findings no
considerareas of
divergence
no
Pilot and Main
no
proceedyes
consider areasfor further research
or the beginningof pastures new
Figure 1.1 Flowchart of the Overall Process
8
Chapter 3Organisations,
People andMotivation
Chapter 4Labour Turnover
andRecruitment Practices
Ramificationsof Turnover
Chapter 5
Chapter 2The Construction
Industry
Using the Flowchart from Figure 1.1 as the basis for proceeding forwards, it then
allows the fuller development of the research and the thesis. The Thesis structure is
shown in Figure 1.2.
Chapter 1
Introduction
Chapter 6Synthesis ofthe Research
Chapter 7Methodology
Chapter 8Results
Chapter 9Discussion and
Analysis of Results
Chapter 10Conclusions and
Recommendations
Figure 1.2 Thesis Structure
This structure may be expanded as shown in Figure 1.3, to provide the reader with a
flavour of the elements within the work.
9
Chapter 2The Construction
Industry
Chapter 1Introduction
Overview
4%44% Indu resources— Supply and demand
Organisation
• Background4141n4444. Research relating to
Definition
Eft . 'ts On
Chapter 6Synthesis ofthe Research
Chapter 7
Methodology
— faxonomy
/ Recruitment practice
Measures+ve
monetary/non
-ye
inMactPoolsoft,..
Sources
FunctionsHypotheses refinement
A'pplicab
c. racy
Practice
Replicability- - - - - - - Pilot study
Effectiveness
Chapter 8Results
Chapter 9Discussion and
Analysis of Results
Chapter 10Conclusions and
Recommendations
, Review
s s S• ****"."•••• Statement' ,
.., s
Findings ' , ,.- - -\ / Data collectionOrganisations
Conclusions -Recommendations
Thesis Chapters Avenues of Consideration/Research
Specifically people
Chapter 5Ramificationsof Turnover
Main research
;Data analysis
Information
Chapter 4Labour Turnover
andRecruitment
Practices
Chapter 3Organisations,People andMotivation
LEGEND
note: not all links/pathways have been shown
1
Impact linkage
Influence pathways
Principal path
Theories
- "Forwards ...-
-
0 Hypothesesdevelopment
Figure 1.3 Development of the Thesis Structure
10
Figure 1.1 illustrates the wider, more general aspects of the thesis construction.
Emphasis has been given to the major milestones within the work and the diagram is
designed to indicate to the reader the underlying model upon which the whole work is
founded. The emphasis on milestones of course does not exclude the many subsidiary
issues which have also been considered and resolved.
Figure 1.2 outlines the general structure of the thesis and the various chapter titles,
whilst Figure 1.3 focuses on many of the important topics areas which naturally arise
when considering the recruitment sources used and their impact on the overall process
of turnover. The diagram seeks to show the reader the detailed main path through the
research, and also to illustrate how the subsidiary topics relate to the main path and
serve to reinforce the areas shown as lying on the main path.
Both figures intend that the reader should develop an early awareness of the overall
content of the work and also comprehend how each of the chapters relate to, and
integrate with each other, and lead to the final chapter. The remaining chapters
within the thesis are outlined below:
Chapter Two considers the construction industry and the various resources utilised
within the industry along with the impact of substitution of these resources.
Consideration of people as the most important resource leads into Chapter 3.
Chapter Three considers the organisational setting and the human within the
organisation. It further discusses why the individual works, along with the underlying
theories of Motivation and the attainment of Job Satisfaction. Understanding why the
individual works and the influence of the workplace upon the individual may help in
the grasping the reasons for particular recruitment sources being more effective than
others. The recruitment sources are part of wider recruitment practices and these are
discussed in Chapter 4.
11
Chapter Four gives some consideration to specific areas of the recruitment practices
found within the industry and seeks to define turnover and its taxonomy, both from an
organisational stand point and from the individual's viewpoint. The measurement of
turnover is discussed and is considered in relation to the recruitment sources used and
overall recruitment practices. Turnover has knock-on effects and these are considered
in Chapter 5.
Chapter Five gives consideration to the ramifications of labour turnover, at the
individual, organisational, and industry levels. These effects may affect the
individual, the organisation and the industry, and reinforce or reduce the influence of
a particular recruitment source.
Chapter Six synthesises the work and seeks to establish a model for Recruitment
Sources which may be utilised by prospective employers and employees. The chapter
also establishes a framework for the theoretical development of a general theory of
Recruitment Sources used, in relation to source effectiveness.
Chapter Seven describes the methodology utilised in the pilot, and validation studies.
The primary available methodologies are discussed and the resultant chosen
methodology is detailed. Consideration is given to the field work executed in
securing adequate data sources, and the resulting resolution of subsequent issues. This
is then linked to the main experimental section by relating the chapters to the findings
of the initial pilot research, which acts as the foundation of the methodology and aids
in the formulation of the main research hypotheses. These hypotheses are stated in
the light of an overall literature and pilot research, results synthesis.
Chapter Eight describes the results from the main field research in light of the
organisations participating as data sources and the Pilot Research. The results are
presented graphically with text descriptions, and suitable statistical analysis.
12
Chapter Nine discusses the results and seeks to reinforce the synthesis of the literature
whilst maintaining close links with the previous chapters, in order to comprehend the
work.
Chapter Ten offers conclusions of the research; a consideration on the attainment of
the three objectives established and also outlines the implications and applications of
the work. The chapter also suggests areas which have shown potential for further
research.
Appendices follow which support the various points raised within the preceding
chapters.
References are provided to enable location of the various supporting articles,
publications and documents.
13
Suppliers,' Trade •Associations
,.</ Organisations /
ProfessionalInstitutions
2.1 DEFINING "HIE CONSTRUCTION INDUSTRY'
The Central Statistical Office (1), and The Inland Revenue (2), each give a slightly
varying description of the many occupations, professions and organisations which they
consider key to the construction industry as a whole. Nonetheless, both these bodies
are generally agreed that the industry is comprised of a multitude of occupations,
professions and organisations. Langford and Male (3), sum up the definition problem
when saying that the industry "is amorphous and diverse".
Each of the key elements within the industry interact to provide the image which the
wider environment sees as the 'Construction Industry'. The complexity of this
interaction is shown in Figure 2.1, which attempts to show the overlapping and
intermingling of occupations, professions and organisations.
permeable
boundary ••
//--Research '\ Financiers )1 ._ -
__Bodies ')=-- - - - - - ,--- ii- .-
- ,. / Technician \---
,/ Employer's 7 ', i\ Societies ,//, ,/ \\ Organisations'
AClients n--------- /-----I Materials - -
Y - - - - -- - - \I Employee' \Employee's \
The Wider Environment
Figure 2.1 The Interaction within the Construction Industry
The organisations which make up the industry vary in: location, size, nature,
objectives, structure, activities, and efficiency of resource usage, and collectively they
provide a significant contribution towards total Gross Domestic Product.
15
Conditions for the construction industry as a whole, on the long run, appear to be
immensely favourable (4,5,6,7). Throughout the history of the modern construction
industry booms and recessions have come and gone. Parry Lewis (8) in his
painstaking analysis of the industry from 1700 through to 1964 clearly demonstrated
the existence of a cyclical nature to the industry.
The cyclical trends highlighted were found to be subject to influence from several
factors; the more important being:
population fluctuations; and,
shocks, such as war; and,
credit.
It may be argued that the more applicable of these factors for the present, is of course
CREDIT; its availability and associated interest payment rates having pronounced
effects on all organisations.
Successive Governments of varying persuasions, have sought to control the nation's
growing inflation rate through restraining the construction industry, more specifically
the housing sector and its associated rise in capital values and hence, perceived
disposable wealth. Recent recessionary trends within the industry are, when viewed
in the wider historical context, slight deviations from a perceived cycle of growth.
Construction output (at constant 1985 prices, seasonally adjusted) for the U.K., is
shown in Table 2.1, which clearly indicates in Figure 2.2 cyclical trends, and when
correlated with year end mortgage interest rates, then the marked effect of interest
rate of credit upon the industry is readily seen. In general, the values of output have
been on the increase relative to 1985 and allowing for the recent high interest rates it
can be argued from Figure 2.2 that the next major upswing in the UK is not far off
(9). When it does arrive, the upsurge will unleash many of the problems witnessed in
the mid 1980's.
16
16 —
14 —
12
o 10 —c2
V
6 —
4
2 —
—40000
— 35000
— 30000
— 25000-50-
— 20000 2",
— 15000
- 10000
— 5000
00
Year Output Year Output Year Output
69 31661 77 26713 85 27850
70 30986 78 28747 86 28757
71 31364 79 29178 87 31022
72 31957 80 27830 88 33269
73 32267 81 25141 89 34684
74 28965 82 25470 90 35037
75 27266 83 26647
76 26842 84 27536
Table 2.1 Construction Output
All output values are in Ern. at constant 1985 prices, seasonally adjusted Source: Central Statistical Office.
In addition to its contribution to the Gross Domestic Product, Ward (10) notes that the
industry's contribution may, to some degree, be measured by its provision of
employment. Briscoe (11) reinforces this and adds strength by considering the
industry's demand for inputs from other industrial sectors such as distribution,
finance, and metal products.
Construction Output -v- Interest Rate
Interest rate
s p •g: 2 e F.: r-c
a...s ; g tog ss, 1:8 goz gsa
Year
Figure 2.2 Output - v - Interest
17
This demand for inputs from the other sectors may well stimulate, or lead to,
employment in each of the these sectors. The employment of people reduces the
available labour in the market place and so may force the organisation to consider
substituting other resources for the reduced labour pool.
2.2 RESOURCES: LABOUR AND ITS SUBSTITUTES
The construction industry takes as its basic inputs: capital, land, enterprise and
perhaps most importantly, labour (12). These basic factors of production may be
subject to substitution in varying degrees, but labour remains the more unpredictable
(13). Drucker (14) perceived that management of an organisation worked with one
specific resource: man.
Therefore due to the nature of labour supply the ramifications of shortfall or excess
are considerable. Samuelson (15) when reviewing financial implications considers
least-cost factor combinations for given outputs in order to arrive at the least-cost
input combination. Consideration given to iso-product curves (16) generated for
varying rates of marginal substitution suggest that there exists a technical limit to the
extent to which it is possible to replace manpower by capital. McFillen and Maloney
(17) rightly emphasise that whilst the assumption is made that units of labour are
interchangeable, in reality the labour units may well have widely varying skills,
attributes and abilities and so be non, or only partially interchangeable.
Table 2.2, and 2.3 along with Figures 2.3 and 2.4 indicate to some extent, the
numbers of people and range of employment within the construction industry.
18
StandardOccupationClassification .
26 Architects, Town Plannersand Surveyors
31 Draughtspersons, quantityand other surveyors
50 Skilled construction trades
101 Other occupations inconstruction
400 —
000's
300—
200—
100—
CI Architectso Draughts0 Skilled0 Others
Males Females All000's 000's 000's
102 10 112
111 20 131
632 11 643
190 0 190
Table 2.2 Typical Range of Employment. Source: Employment Gazette, Sept 1992.NB Management occupations and several others are considered within other all-embracing classifactionswhich obscure them from full view.
700—
600 —
500—
rnminrannarnmlI
Males Females
Figure 2.3 Males and Females in Certain Occupations
19
All000's9831021
10561040940
812.9Employees Source: Employment Department, SSD D2.
1200 —
1000 --
800-
000's 600-
400-
200 —
0
StandardIndustrialClassificationDivision5
Year
1987
1988
1989199019911992*
Table 2.3 Contracting Organisations'
* estimate at Feb 1993.
EmployeesMale000's864
894918904800673.4
in EmploymentFemales000's119127
138140140139.5
1987
1988
1989 1990
1991 1992
Year
Figure 2.4 Employees in Employment in Contracting Organisations
Management must ensure that the organisation has sufficient resources in order to
carry out a variety of tasks. The most important of all these resources are the humans
within the organisation. McBeath (18) fully comprehended the need to analyse and
plan the optimum means of obtaining the organisations' manpower requirements. As
the available pool from which the manpower may be drawn diminishes
(19,20,21,22,23,24), so the necessity to carefully plan and target the correct
individual becomes paramount. Guest (25) forecasts that in 5 years time the industry
may well be facing a shortfall of some 250,000 employees and is given support in this
view by the Training Agency (26) and the Institute for Employment Research (27),
who see the industry's population endeavouring to increase, substantially, over the
remainder of this decade.
20
During the last boom period many of the industry's participants were only too well
aware of the shortages of skilled human resources in particular geographic, as well as
skill areas. Now that a perceived downturn is facing the industry, the "Demographic
Time-bomb" seems to have dematerialised. The problem has not vanished, but
simply been masked from full view.
Employers seeking to recruit in the next rising current will be faced with several
difficulties:
i) Pressure on management to secure the skilled personnel; and,
ii) Induced stress on existing staff; and,
Increased recruitment costs; and,
iv) Restrictions on business take-up from lack of human resources.
These problem areas will not be confined to the shores of the UK. The European
Community has, since 1985, witnessed a constant upswing in the activity of many
member nation's construction industry. Table 2.5 and Figures 2.5 and 2.6, illustrate
the growth in construction activity in the UK and several of the European Community
member states. So long as this buoyant mood continues then the greater will be the
pressures on all EC industry participants who seek to recruit various forms of labour.
The Directorate-General for Employment (28) have clearly considered this impending
problem in some detail and seek to highlight alternatives which may be open to
employers. Nonetheless to satisfy the demand for output, so then employers must
secure and retain the manpower to carry out their contractual obligations.
21
National Construction Turnover Index
1988 Base = 1985, index 100
19871989
1988
c_D
1985160 J
140
120
I60
loo 1
80
40
20
0
Country
1985
Year and Index value
1986 1987 1988 1989
The Netherlands 100 95.2 84.7 89.6 92.4
Ireland 100 96 88 84 92
Italy 100 100.9 99.8 101 104.6
Germany 100 102.5 102.5 107.1 113.1
UK 100 103.1 111.2 119.1 123.8
Belgium 100 103.1 108.4 122.9 134.4
France 100 103.2 107.5 113.7 118.9
Spain 100 105.9 116.9 129 145.9
Denmark 100 115.3 116.1 112.9 108.6
Table 2.4 Construction Sector Turnover (1985= base year)
Source: Euroconstruct-BIPE (index values derived from turnover
values at 1989, before taxes, in 1000M ECU' s)
Countr y
Figure 2.5 National Construction Turnover Indexhorizontal axis shows YEAR, vertical axis shows % CHANGE
22
The industry on a European wide basis will seek to draw the necessary human
resources from what may be considered as a finite pool. The Europeans in their own
countries will seek to secure sufficient human resources as fulfil their contractual
obligations for what ever type of work. Therefore whilst the European dimension
may have little or no direct immediate impact on this work, the influence will come
about in the long run.
2.3 INDUSTRY UNIQUENESS
It must be emphasised that the construction industry is unique, and this uniqueness
spills over onto the organisations within the industry (29,30,31). The product is
large, seldom able to be transported to new locations and therefore the actual site
often becomes the centre of numerous productive processes. The environment in
which the construction industry operates is subject to a wide range of influences and
seldom, if ever, remains static. These influences emanate not only from within the
industry itself, but also from external bodies such as Government, pressure groups,
the public at large and other industries. The product is produced on a wide variety of
locations; the product includes many component parts supplied by others who may be
either factory based or mobile; no two projects are the same; the climatic conditions
under which the operatives have to operate are constantly fluctuating; the
organisations which make up the industry are predominantly small firms; the
workforce is perceived as being the poor relation in terms of education, training and
development, and also in terms of financial stability and security.
Detailed consideration of the construction industry shows that:
- The construction industry client is often heavily involved in the construction
process, dealing directly with end-service providers. As such the client is in a strong
position to influence the various processes which are underway. Contrast this with a
purchaser of a motor vehicle, where the contact is only with the retail outlet.
- Construction invariably involves large-scale and highly complex assemblage of
components which are awkward to handle and require fasten, especially on site. The
23
Belgium
6411 111 1 II
so
co alco
•
co
•
co co coo, a, CO 07 CO- r 7- 1- r
140-120 -1W
Denmark
1201151101051009590
LO CO I,- COCO CO CO CD01 01 CO 01
Spain
160140 i1201008060
42g0 I III1.0 CD N- 07OD 03 OD CO OD07 07 07 07
Italy
105104103102101100999897
117 In N- CO 07CO01
CO07
CO07
CO07
CO07
1- r r. 1-- r
manufacturing industries may consider themselves blessed that their assembly takes
place within an environment which allows wide use of mechanical aids and apparatus.
U.K. Netherlands France140 100 123120 11595100 110
10560oa
1
II_ I
95
111100
20 90 950 93
1.17 COCO CO CO CO
LO (-0co
coCO CO OD7-
Figure 2.6 National Construction Turnover Indices
24
- Construction activities generally take place outdoors and as such suffer from all
that the British climate can throw at them. Other industries mainly execute their
activities within controlled, construction industry provided, environments.
- The sequencing of activities involved in the execution of any project demands that
planning for the allocation of resources be seen as a critical factor in the completion
of the project. Schedules must be met on time, with the risk of serious cost
implications if they overrun. Manufacturing industries with 'conveyor belt type'
facilities are able to more closely tune or re-tune the production processes so as to
meet the schedules set.
- Construction operations are executed in an environment where safety measures are
difficult to implement fully, and are set against a background of strong stereotyped
image i.e. the macho male.
- The project under construction may be such that access to it, around it, and
through it, may pose serious restrictions on the operations of the individual
organisations.
- The working hours of the project may be limited in order to avoid nuisance to
neighbours and emissions/waste from the operations under way may be heavily
controlled.
- The project is usually unique in terms of design, therefore no significant jigs,
moulds or templates may be transported from one project to another. The majority of
manufacturing industries rely on the economies of scale likely to result from the re-
use of such items e.g. repetition, standardisation..
- The majority of projects executed within the industry are of relatively short
durations. The design activities may last for only a few months, the physical
construction may take a few years; only the maintenance of the finished product
continues for a prolonged period of time. Therefore the human resources required
must gel together very quickly, be able to disperse with similar speed at the
completion of the activities, be able to relocate, and be fairly flexible towards the
activities embraced within their job title. The manufacturing industry is able to adopt
longer, more strategic time-frames.
- The construction industry is transitory in that the project locations may be many
miles from the resource base and so introduces substantial, short term, transportation
requirements. Other industries tend to be located in one spot for a reasonable period
of time.
25
- The construction industry tends to be more fragmented than other industries, with
many transient organisations/individuals.
With these many distinguishing features it might be said that the argument for
rejecting all management thoughts and theories derived from mainly manufacturing
industries appears sound. However, whilst many of the writers discussed earlier have
taken management thinking on organisations (which are primarily fixed in the one
location, or a singular product, or a clearly defined, stable market, generally
manufacturing) and applied these thoughts liberally across the widest possible
organisational spectrum, no doubt exists as to the likelihood that many of the basic
tenets underpinning general organisation theory will apply to the bulk of the
construction industry participants, but so also will we see those organisations which
do not fully fit within the stereotypes portrayed.
Much research is needed which focuses directly on the construction industry and its
constituent member organisations. Because of these areas of uniqueness, careful
consideration must be given to the organisations which operate within the industry,
and also to the effects these organisations may have upon the people who make up the
workforce.
The following chapter considers the nature of organisations and the impact they may
have upon the individual and also the individual's contribution to the organisation.
26
3.1 THE ORGANISATION
The construction industry is comprised of a wide variety of organisations. A range of
tasks and processes are carried out within each of these organisations, and it is people
who carry out these activities. Therefore in order to proceed further it is only logical
to attempt to define what an organisation is, and why it is that people act the way they
do when part of, or attempting to become members of, the organisation.
Definitions as to the meaning of the term "organisation" abound. Barnard (1) defined
the organisation as being "a system of consciously co-ordinated activities of two or
more persons." Anthony et al (2) considered that the organisation acquired resources
which, hopefully, were utilised efficiently in producing outputs of goods and services.
Kast and Rosenzweig (3) see the structuring and integrating of activities amongst
people co-operating and working together in relationships which are interdependent,
and that these activities are directed towards the attainment of defined objectives, as
being fundamental elements within the organisation.
Leavitt (4) classified the organisation as being a collection of multivariate systems,
within which a minimum of four interacting variables are predominant. These
variables are illustrated in Figure 3.1, which illustrates and reinforces the earlier
descriptions of an organisation.
(permeable boundary
External Community
Figure 3.1 Four Organisational Variables developed from Leavitt, 1985, p363.
Organisational Environment
28
Each of these attempts to define the term adds to the overall comprehension of the
term and generates further argument and/or analysis of the topic. The four
(minimum) variables deemed necessary by Leavitt may be expanded further by
suggesting that:
i) Task: underlies the reason for the very existence of the organisation i.e. servicing,
producing, etc., and also including the multi-variate subtasks which reside within the
organisation. The task may not be solely profit orientated and might well be highly
complex; and,
ii) Actors: are deemed to include the individuals who comprise the organisation and
all their resultant actions; and,
iii) Technology: is an all embracing title which includes not only hardware e.g.
lathes, but also various processes or procedures which may solve problems, assist in
their resolution or be utilised in controlling, or directing, machinery ., and,
iv) Structure: encompasses, amongst other things, information systems,
communicative processes, personal roles, work flow, establishment of authority,
control mechanisms and reporting procedures.
Figure 3.1 clearly illustrates that each of these four variables is not an island in
isolation, but rather an integral part of a greater whole and therefore a change or
adjustment in one area will have a push or pull effect on the others.
Silverman (5) expresses three distinguishing features which characterise an
organisation:
they may be perceived as consciously established artefacts which serve to attain
certain purposes, within rule boundaries, which may be displaced over time.
relationship patterns are clearly discernible.
discussion and execution of planned changes in social relations are afforded
considerable attention.
29
The latter two components are considered the more important due to their pervasive
nature and their impact on the manpower within the organisation.
Torrington and Chapman (6) provide a general systems overview of the organisation;
six subsystems comprised of variables which interact and are interdependent. These
subsystems they classify as:
People, Structure, Technology,
Task, Process, Technique.
Thus they view the organisation as a "dynamic process involving component parts
which are in interaction with each other and the environment of which it is a part".
From this approach they are able to develop a conceptual model of the organisation
(Figure 3.2), which (although much more detailed in content) complements Lupton's
(7) model and Kast and Rosenzweig's 'Contingency View' which is shown in Figure
3. 3 .
The "Contingency View" as described by Kast and Rosenzweig (8) sees the
organisation as a system, within which resides subsystems, which may be demarcated
from the environmental suprasystem. It endeavours to comprehend the relationships
emanating from, within and between the subsystems, the organisation and its
environment. The complex intermingling of the organisational subsystems is clearly
highlighted, and thus the effects of the actions of one sub-unit or group of sub-units
may become greatly magnified before being perceived by the internal or external
environments.
As the external environment becomes more complex, so adjustments will be made
within the organisation's internal environment (including all appropriate sub-systems)
to accommodate the new perceived 'status quo', these adjustments in themselves being
witnessed by the external environment as the organisation's "behaviour".
30
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The organisation must consider interfaces between itself and the employee, and also
itself and the wider environment. These interfaces will be non-static and as each
interface reaction occurs so its nature may well be unique or similar to previous
reactions. The organisation is required to accommodate each interface reaction and to
manage these reactions in such a manner that the organisation receives the fullest
utility from them. Each of these figures serves to reinforce the notion that
interactions within the organisational framework are of an immensely complex nature
with many variables acting upon each other, sometimes simultaneously. The
identification of the various subsystems and the resulting interactive processes
demands that management be aware of, and fully able to control outcomes and
performances.
Manpower at all levels within the organisation will establish relationships both
longitudinally and transversely. Kolb et al (9) discuss how improvements in the
effectiveness of an organisation can only be achieved by giving due consideration to
the system of relationships among the organisation, the institutions and the
professionals that mould it. Bowey (10) contends that "relationships develop through
the interpretations which each person puts on the behaviour of the other." Therefore
inter-personal relationships and intra-organisational relationships will interact to
produce action that the environment sees as the organisation's behaviour. Silverman
(11) validly suggests that the organisation itself is derived from the outcome of these
inter-personal relationships. Managing these human relationships may well prove to
be management's greatest task.
3.2 HUMAN RESOURCE MANAGEMENT
The availability of labour is a clear constraint on the efficient running of an
organisation (12,13,14,15,16), in order that the organisation may grow, develop and
metamorphose, so the necessary human resources must be available (17,18). Heron
(19) noted that in order to accomplish the tasks before them "management must enlist
or buy co-operation of workers" People are the workers who must do the things that
33
management strive to achieve, and in support of this Armstrong (20) saw four
elemental principles in the approach to management of human resources:
i) the most important asset of an organisation is its people; they must be managed
effectively.
ii) corporate objectives and strategic plans must interface with personnel policies and
procedures.
iii) organisational culture influences the ascertainment of high standards.
iv) human resource management is an integrative process.
Therefore from these four basic elements it is clear that humans operating within an
organisation must be considered under an holistic approach. Livy (21) perceived that
any demands placed on manpower were derived from interaction with other
organisational activities. Clegg (22) reinforces these views noting that:
employees are considered an asset rather than a liability.
the individual interacts with other workers and the organisational culture.
the individual, if managed properly, will strive to attain company goals.
3.2.1 Organisational Strategies and Human Resources
Johnson and Scholes (23) see that development and implementation of strategic
decisions involves the matching of the organisation's activities with the available
resources. Taylor and Sparkes (24) further subdivided the needs of strategy
development and implementation suggesting that it strove to: improve co-ordination
amongst divisions, achieve diversification, anticipate change, and also, to ensure that
resources were allocated rationally. Penrose (25) emphatically states that the function
of both the market place and the organisation is to apportion resources.
34
The emphasis of control over the organisation' s resources is highlighted since it may
well be that the very success of the organisation is dependent upon the employment of
these resources. Kumar (26) perceived the limitations placed on the success of the
organisation by the available resources and also how these resources influence the
direction taken by the organisation. Glueck and Jauch (27) underline the need for
correct and precise application of resources to reinforce strategic choices.
Hillebrandt (28) suggests that human resource considerations may well usurp the
profit-maximisation approach to the objectives of the organisation. This is supported
by Bull (29) who argues that whilst profit may well be one of the objectives of the
organisation, the welfare of employees is as important as liquidity and survival.
3.3 MANAGING PEOPLE
Cuming (30) and others (31), assert that the prime function of the Personnel Manager
is to obtain the best staff for the organisation. McBeath (32), and Haimann et al (33)
also attach a high degree of importance to attracting the appropriate personnel types at
the most advantageous price and on time.
Barber (34), Hunt (35), and McBeath (36), argue that the quality of the workforce
and the management of this workforce may well account for differences both inter-
organisationally and intra-organisationally. Torrington (37) noted that studies (38,39)
of the interaction between organisational structure and employee performance, along
with the relationship and interaction of organisation and employee morale has
modified the judgements made towards the notion that the body of management and
their organisation must develop, not in isolation, but as a simultaneity.
3.4 ORGANISATIONAL BEHAVIOUR
The basic premise underlying the comprehension of organisational behaviour is the
study of the psychosocial system within. It endeavours, through research, observation
35
and theoretical supposition, to analyse and understand the attitudes, feelings,
perceptions, behaviour and motives of those people within the organisation framework
(40,41,42,43) and theories of how and why people behave in organisations abound
(44,45). Boot (46) noted that significant emphasis (47,48) had been placed upon
human relationships at the workplace and the impact of these relationships upon
productivity. Hackett (49) illustrates in her "two-way flow" Figure (Figure 3.4) the
influence of organisation members upon other constituent members.
Organisational Goals
Individuals Groups
Figure 3.4 TWO-WAY Flow
Individuals come together to form the groups. In doing so, the individual will take
with them into the group an established set of values, goals, roles, norms and desires.
This set of values will be modified somewhat by the individual's inclusion within the
group and, the individual will also seek to modify the group's established set. Both of
these organisational members will form part of, and endeavour to modify the
behaviour seen as belonging to the organisation.
Motivation is one specific theoretical area in which behaviour is analysed, and whilst
Motivation & Job Satisfaction are not the sole subject matter of this research they do,
nonetheless, appear as significant factors in determining why an individual may
respond to, or vacate, a particular opening (50,51). Consideration is therefore given
to the advocates of underlying 'needs' and the attainment of satisfaction.
Ribeaux and Poppleton (52) consider motivation as the 'power house' of man,
ultimately, they conclude we do things because we are so motivated either by election
or applied force. Dessler (53) concurs with this basic premise and expands more fully
on the impact motivation has on behaviour and behavioural modification.
36
3.5 WORK, REST and PLAY
When considering the human within the organisation, a basic question which must be
asked is why does the human work?, and what ensures that the organisation receives
the maximum benefit from employing the individual?
In considering this question Morse and Weiss (54) deduced that work is more than
simply an income provider. They noted that the act of working provided:
i) unification with society as a whole.
ii) a purpose in life.
iii) achievements worth attaining.
iv) utility of the individual.
Drucker (55) reinforces this conclusion by saying the worker "demands, over and
above economic returns, returns as an individual, a person, a citizen". He further
describes the demands placed on the organisation by the "whole man" as including:
fulfilment of societal promises, attainment and maintenance of high performance
standards, exhibition of managerial competence, and that the work itself be earnest
and material. Brown (56) emphasises that "work is the source of man's most basic
satisfaction, it is his social catalyst, the purveyor par excellence of his status and
prestige among his fellows". Taylor and Sparkes (57) see manpower as desiring three
ingredients in a job:
intrinsic challenge along with mental and physical taxation.
the recognition due for above average performance.
personal advancement and growth coupled with mercantile surety.
Argyle (58) noted that people differed in their abilities, social performance, interests
and motivation. He discusses that whilst an individual may have the necessary
attributes for a specific job, they must desire to do the job, if not, then they may be
ineffective and derive little satisfaction from the work.
37
Selected behaviour
Boot (59), and Cole (60), suggest that the acceptance of a loosely defined description
of need, allows the adoption of a basic motivational model (Figure 3.5) upon which
the understanding of motivation at work may be founded.
Figure 3.5 Motivation Model
From this basic model it is seen that there is a direct linking pathway between the
motive, or basic need, and the goal state or object to be desired. The selected
behaviour or activity will be directly related to the goal state or object, whether it be
tangible or intangible. Other writers, especially the Expectancy Theorists, have taken
this basic model and developed it, and considered further the behaviour or activity
selected.
3.5.1 Motivation and Job Satisfaction: Protagonists/Theories
Motivational theory may be bisected into two main schools (61,62,63), Process
Theories and Content Theories.
The Process Theories endeavour to explain the fundamental processes through which
motivation takes place. They proffer certain basic terms such as 'reinforcement',
'incentive', 'expectancy' and then draw specifications as to how these variables might
interact and lead to motivation.
35
The second group of theories 'The Content' are perhaps more generally considered
under the 'needs' heading. They seek to answer questions asking: What are the basic
needs people try to satisfy? What incentives are the more potent, etc?
Whilst viewed in isolation, each of these theory groups appears to search for divergent
ends, they do however have common features:
1. they aim to explain motivation; and,
2. they interrelate to build a general theory of motivation.
A discussion of the main protagonists' theories of motivation and job satisfaction aids
in understanding the behaviour of human resources within the organisation.
Two well researched Motivation Theories worthy of note are: The Needs Hierarchy
Theory of Maslow and The Achievement Motivation Theory of McClelland.
Maslow' s theory implies that the management control and adopted systems should be
founded on individual interest in needs fulfilment, which varies with time and
conditions, and indeed, from individual to individual. McClelland suggests that the
individual will be influenced by a desire for success, a search for power and the
longing for affiliation. Therefore an adoptive management control system must be
based on these motives. Another general theory worthy of initial scrutiny is that
attributed to Katz.
Katz's (64) three behavioural types reinforces both these theories and in some respects
attempts to bridge between them. He describes the three types as:
i) inducement of the individual to enter and remain within the organisation.
execution of role assignments within tolerances.
achievement of organisational objectives whilst still maintaining individualism.
39
knows and understands
freedom of enquiry and expression
self-fulfilment: realisation of potential,use of all talents
esteem: self-respect, reputation, status with others.
social need: acceptance socially, friendship,love, group belonging.
safety and security: air, water, food, rest.
The first of these three descriptive types supports Maslow's "social" need and
McClelland' s "affiliation". The second descriptive type is congruous with
McClelland's "success" i.e. achieving goals. The final descriptive type correlates
with Maslow' s "self-fulfilment" and also McClelland' s "success". The initial
introduction to motivation shows the impact it may have on the individual and the
organisation and leads to consideration of the matter in some depth.
3.5.2 The Work of Maslow
Maslow (65) postulated a hierarchical order of needs which influence the individual's
behaviour. A hierarchial order is suggested because man is perceived as a creature of
distending needs. Satisfaction of the basic biological needs prompts other more
complex social and personal desires to assume prepotency. A lower need does not
require 100% satisfaction. When needs have been fairly well met, they no longer
maintain strong motivational force and the efforts of the individual will be directed
towards the satisfaction of needs at the next successive level of the hierarchy. As
each needs level in the hierarchy is sated, so the individual's goals change. The
hierarchy proposed by Maslow is illustrated in Figure 3.6.
Higher Levels
Lower Levels
Figure 3.6 Maslow' s Hierarchy
40
Maslow argued that, in a society with a high standard of living, the majority of people
regularly satisfied the lower three needs levels and thus negated the motivational
effects of these levels. Therefore industry should concentrate application of effort
towards meeting the needs in the two uppermost levels. Fraser (66) supports this
drive for action directed towards "satisfaction of the higher order needs".
Friedlander (67) considered Maslow's hierarchy and supported its structure by noting
that workers in 'blue-collar' jobs tended to emphasise such work values as pleasant
co-worker relationships, acceptable worker-supervisor associations, and job security.
Workers in 'white-collar' jobs placed greater emphasis on the available opportunities
for self-expression, achievement, and stimulating, challenging work. Cole (68)
asserts that Maslow's theory has provided a useful framework from which to discuss
the variety of needs encountered by workers and how motivation may be achieved.
Argyle (69) asserted that the main corroborative evidence for the needs hierarchy
comes from the lower needs in the hierarchy and that there is cryptic evidence for the
uppermost needs, although the basic premise of the theory ".111 terms of satisfactim,
rests on its emphasis on self-actualisation.
Hackett (70) suggests that Maslow's hypothesis is faulted by the building in of a value
system within the hierarchy. The degree of respectability attaching to a higher order
need becomes more prominent than that attaching to a lower order need such as
monetary recompense. She further argues that, whilst Maslow suggests if a need is
met it will remain so indefinitely, this is not always factual. Warr and Wall (71)
discussed the vagueness of Maslow's theory and the structural ordering given to the
hierarchy. They saw the theory as being acceptable with regard to white-collar jobs,
but unpalatable when viewing manual work. Warr (72) said that the notion of a
hierarchy of some form is indeed plausible but empirical evidence supporting and
testing predictions from the theory, is lacking. He cites Wahba and Birdwell (73)
along with Wanous and Zwany (74) as sources of evidence which does little to
support Maslow's theory. Schien (75) expands on how the underlying strength of
Maslow's theory may be seen to be the attention afforded to the variety of needs and
41
motives which are operational, but the evidence for the hierarchic notion is fragile and
the need categories appear to be encyclopaedic. The example of self- actualisation is
cited, wherein it may be achieved in many different ways and the precise meaning of
self-actualisation may be non-static under the influence of developmental stages, so
the knowledge that everyone is concerned with achieving it may be of little worth.
Dessler (76) cites the research findings of Hall and Nougaim (77) along with Wanous
(78) as non-supportive of the five level hierarchial structure and suggests that a two
level hierarchy is more indicative. These two levels being structured such that
"security" needs are at the base and "higher needs" on top. The basal needs equate
closely with Maslow' s three lower elements and the higher needs corroborate
Maslow' s top two elements.
Dawson (79), Hackett (80), Warr (81) along with Ribeaux and Poppleton (82) suggest
that Alderfer' s (83) E.R.G. theorem, (existence, relatedness, and growth) offers some
relief to the difficulties associated with Maslow' s theories. Alderfer' s continuum
within the straight line relationship allows flexibility in the directional travel of the
individual. Hackett illustrates the relationship between Maslow's 'needs' and those
identified by Alderfer (Figure 3.7) demonstrating the support afforded the basic tenets
of 'Content Theory'.
3.5.3 The Work of Herzberg
Herzberg et al (84,85) perceived satisfaction and dissatisfaction as representative of
two quite independent dimensions of man's nature. Satisfaction stemmed from quite
different sets of factors than dissatisfaction. Satisfaction is sought in aspects of job
content e.g. advancement, achievement, etc, that provide for growth in the individual
and equate closely to Maslow' s higher needs. These Herzberg called the "satisfiers"
and have been labelled motivators by many subsequent writers (86,87,88). In
general, these factors form an integral part of the performance of the work. The
factors identified as being strong determinants of job satisfaction are:
42
- responsibility- advancement- achievement- the work itself- recognition
These factors are intrinsic to the job and their absence will not cause dissatisfaction,
but rather, lack of satisfaction.
Dissatisfaction derives from a different range of factors termed "dissatisfiers". Their
tendency is to act in a negative direction and they are contextually on the periphery of
the job itself. These factors have long been the foundation from which managers have
traditionally directed their efforts towards motivating the workforce. Included within
these factors are;
- working conditions
- company policy and administration
- peer relationships
- supervision
-job security
- remuneration
Herzberg, using a medical analogy, labels these factors "hygiene" or "maintenance"
factors; they are extrinsic to the job itself. A shortfall in the level of these factors
leads to dissatisfaction. Surfeit on the other hand, would not lead to job satisfaction,
but merely no dissatisfaction.
When compared with Maslow's hierarchy, the di ssatisfiers relate closely to the needs
falling within the lower three levels. This then tends to support the implicit
contention of Maslow that the lower level needs proffer little motivational effect when
a high standard of living exists.
43
Self Actualisation
1
t
t
11111I1
1I v,
Esteem 1 1I ZI
1I
Social 111
11 I
1 1
1 1
111
1 1
Safety
Physiological
44
From Herzberg' s studies, the suggestion is made that the dissatisfiers will rarely act as
satisfiers although, under the correct conditions, satisfiers may induce dissatisfaction
e.g. where recognition is not forthcoming. In order to achieve maximum effect from
the satisfiers there should be a lack of active dissatisfiers. Dissatisfiers which are
present will be negated by the satisfiers.
Boot et al (89) state that, "while it is important to get the hygiene factors right, if the
manager wants to motivate his employee, he should focus his attention on the job
itself and attempt to manipulate the motivator factors". This statement is supported
by Myers (90) who sees an environment which is rich in 'satisfiers' as one which will
stimulate employee development and a sparsity of such opportunities leading to a
preoccupation with the dissatisfiers.
Improved motivation and satisfaction may be attained by developing; the nature of the
work itself, the degree of responsibility given, the recognition offered, enhancing the
opportunities for achievement and/or advancement. Mawhinney (91) suggests that
extrinsic hygiene factors should not be completely ignored since both intrinsic and
extrinsic factors are considered as interacting with each other (uniquely to each
individual) to produce overall motivation. Nord (92) emphasises this point by
suggesting that there is a great deal of support for the proposition that money, job
security, working conditions etc, are important to a large number of workers. He
goes on further, noting that the economic pay-off from work i.e. monetary, may
frequently be the main focus of concern rather than rewards stemming from prestige
or intrinsic content of work. This is partially corroborated by McDougall (93) who
indicated from his study that financial reward assumed a position of significance as a
motivator.
Many writers (94,95,96,97,98) have considered Herzberg's ideas and whilst
applauding the basic pattern (99) they nonetheless offer severe criticism. McKenna
pours scorn on the suggestion that such a rigid distinction may be drawn between
45
hygiene factors and motivators. He further goes on to cite the work of House and
Wigdor (100) wherein they discuss the methodological and sample errors induced into
the study from respondent's bias and lack of controlled conditions. The range of
occupations considered was deemed to be too narrow by Ewen. He further saw the
use of only one measure of job attitude, the lack of reliability or validity of data, and
the apparent contradiction of some factors (e.g. salary, which is a hygiene factor, but
may in fact be viewed as a recognition of work well done i.e. a satisfier) as areas of
major criticism. Dessler (101) also addresses the problem of factor ambiguity stating
that "Herzberg's insistence on the idea of two uni-polar continua seems indefensible,
both logically and empirically".
Further research is called for in a wide diversity of cognate occupational situations in
order to fully test and apply Herzberg's theory. The nature of satisfiers and
dissatisfiers (if this is the correct labels for the variables) is complex and the
interaction of each set with the other, and the individual, along with the influence
occupational type has on the whole equation demands that no attempt be made to
generalise Herzberg's theory as being applicable to all situations.
3.5.4 Subsidiary Theories
As discussed earlier Motivation Theories have tended to be allocated within two main
subsets. These two subsets are not the exhaustive thoughts on this area of
management, indeed several other theories are gaining ground and are therefore
worthy of discussion.
Lawler (102) drew on the work of Vroom and others to construct his model of
motivation wherein the employee's motivation is seen as being a function of variables:
First:
46
Effort-Reward Probability, which seeks to quantify the individual's perceived
probability that x units of effort directed towards performing effectively will result in
achievement of a given reward or outcome which has attaching positive value. Lawler
noted that this variable was in itself subject to two further influences: the probability
that effort will result in performance and also that performance will achieve the
reward. Vroom (103) labelled these subsidiary variables as "expectancy" and
" instrumentality" , respectively.
Secondly:
Reward Value (Valence), evaluating the individual's perception of the reward or
outcome which may be achieved by appropriate action and performance. The
argument is put forward that many outcomes have reward value stemming from the
fact that the outcome is in some manner able to satisfy singular or multiple needs.
Thus the work of Maslow (discussed earlier) may well serve as an underpinning
theory to 'Expectancy'. Care must be taken to note that not all employees will derive
the same value from each outcome and therefore, be unable to fully satisfy, or over
satisfy a particular need.
Lawler's work demonstrated that the effort exerted by the employee is determined by
the interaction of: the belief that the required performance can be attained; and, the
belief that performance as desired will lead to reward; and, the value attaching to the
reward, i.e.
Effort > Performance ----> Reward ---> Satisfaction
The employee's expectancy of converting effort into performance is a function of the
employee's ability, skills and knowledge. All individuals have varying quantities of
each of these, and in themselves these attributes change through time. Therefore as
these attributes increase and are enhanced, so too the employee's expectancy that the
effort will lead to the desired performance,
47
In the recruitment process this aspect may show up directly with the employee's
displayed, and perceived confidence. The high levels of the appropriate skills,
abilities and knowledge supports the individual's belief that the desired performance
i.e. securing the post, is attainable. Therefore greater effort is directed to securing
the post and so the process may in some ways be seen as self-supporting.
With the position secured, the employee is placed in a situation where resources will
require to be drawn on in order to execute the tasks before them. Lack of the
requisite resource will modify the employee's perception of the ability to perform as
required. Also, in order that the employee might execute the task required,
instructions as to what must be carried out are to be given. If this information is
defective or lacking in clarity, then the employee's certainty will wane. Therefore
'Expectancy' is subject to many subtle influences which may bring about fairly
significant changes in the individual's displayed motivation. The motivation then is
seen as being derived from the composite function:
M=E x E (I x V)
where E is Expectancy, I is Instrumentality, and V is Valence
As stated earlier, the employee's skills, attributes and knowledge, needs and demands
are non-static. So the motivation levels exhibited will vary from time to time and
from situation to situation. The many factors considered all lend weight in
determining that M=ExE(IxV) should be chameleonic and extremely complex.
Dillard and Ferris (104) utilise Expectancy Theory when seeking to quantify the
individual's decision processes at, or during, 'migration' from one employer to
another, and clearly demonstrate the complexity of the problem facing the researcher.
Newsom (105) when formulating his model, based on Expectancy Theory, took the
basic content and substantially added to it. He saw the reality of the expectancy
theory as being summed up by "The 9 C's" being:
Capability, Confidence, Challenge, Criteria, Credibility, Consistency,Compensation, Cost, and Communication.
48
The first three C's deal with the individual's perception as to the relationship between
effort and performance:
Capability- is the individual capable of performing the job well.
Confidence- does the individual believe that they can perform the job well.
Challenge- does the individual have to work hard to perform the job well.
The remaining C's may be described as follows:
Criteria- does the individual know the difference between good and poor performance.
Credibility- there must be belief in promises being fulfilled.
Consistency- all employees are receiving similar preferred outcomes for good andpoor performances.
Compensation- do the actual outcomes associated with good performance reward theindividual, sometimes more than in simple monetary terms.
Cost- what is the cost to the individual of expending effort and of the outcomesforegone.
• Communication- good communication is seen as being essential to the effectiveoperation and use of the other eight C's.
When these nine C's are superimposed upon the basic Expectancy model we now
arrive at a significantly more complex, yet realistic, model of this theory. Indeed its
very complexity now suggests that it is eminently suitable for use directly in the
construction industry where fluidity is almost the watchword. Figure 3.8. illustrates
the amended layout of the basic theory and the C's.
Alderfer' s grouping of needs into three basic categories (discussed earlier in 3.5.2)
provides the potential for measuring the quantity of each need an individual has at any
specific location in time. The approach acknowledges the underlying possibility that
not everyone will have a comparable magnitude of each of the basic needs, as implied
by Maslow's theory.
49
Vroom saw economic and non-economic factors as the two broad reasons for an
individual's activity. In his view, job satisfaction is considered in terms of the
attractiveness of a particular job, and the rewards to be obtained from the job (106).
The Classical organisational theorists (Taylor, Gantt, etc) assumed that the individual
had to be driven to work by means of the carrot and the stick. Economists (107,108)
in their concept of economic man still maintain a similar view and whilst the Human
Relations writers (Mayo, Argyris, etc) have generally rejected such a viewpoint,
money still remains an important motivator, reaching beyond the realms of biological
needs. Incomes Data Services (109) note that salaries may be subject to biannual
review along with inducement loadings of 50% or more.
In their analysis, published in 1977, Katz and Van Maanen (110) identified three
cognate groups of factors which they labelled the "loci of work satisfaction". These
factors were clearly discernible and are described as being derived from the
following:
1. the job itself (intrinsic factors)
2. the interaction context (other people and job environment)
3. the organisational policies (pay, working conditions, etc)
(the latter two factors being extrinsic to the job itself)
The workforce of a Japanese organisation (111) perhaps best illustrates that the
extrinsic factors are important in the overall motivation and satisfaction equation. The
influence of corporate culture and policy along with the 'birth-to-death' relationship
(112,113) must impinge upon the individual's overall perception of motivation and
satisfaction.
51
The identification of these factor groups reinforces the theories discussed earlier and
underlines the need for consideration of the theories prior to discussion of the sources
of manpower and the retention of the recruit. Armstrong (114) saw that for an
organisation to reach its objectives it must have the proper work executed with the
maximum degree of commitment from the workforce. This commitment could be
influenced by adequate leadership, increased motivation, and satisfying the worker.
The ability to secure the manpower in the first place is limited by management's
cognisance of behavioural aspects such as motivation, aspirations and job enrichment
or satisfaction (115). Support is given to this argument by many writers
(116,117,118) who have focused on the construction industry and sought to consider
the relevance and applicability of such theories to this industry. Understanding of
such issues may allow management to better control human resources within the
organisation. Bowey (119) sees the manager as being concerned with controlling
events occurring within the organisation and in order to exercise this control function
they require comprehensive knowledge of the multifarious processes and relationships
between variables, from which the incidents they wish to control, emanate.
3.6 CONTROL
The manpower of an organisation consists of individuals with their own economic,
physical, psychological and social needs (120,121,122). The satisfaction of these
needs will modify their reactions to varying situations. The satisfaction of the
individual's needs will lead to greater productivity and greater harmony between the
individual and the organisation. This basic premise is supported by, amongst others,
Hunt (123), and McBeath (124). Etzioni (125) saw the need to restrain and control
the behaviour of the organisation' s members, to ensure the performance requirements
were attained. This compliance being achieved through the organisation's control
structures and motivation of the individual.
52
Wieland (126) succinctly states that control may be defined as "obtaining desired
behaviour from another person". Anthony et al (127) corroborate this statement and
apply the definition more liberally to include also machinery and equipment, being
directed towards the attainment of objectives or goals. Weiner (128) discusses the
process of control in greater depth and the essential elements are illustrated in Figure
3.11.
From this Figure it is clear that several essential features exist within a good control
system, namely;
i) a method or device which will observe or detect and measure activities or events
which are under consideration and may be the focus of control: and
ii) some format for assessing and evaluating the performance of the activity or event.
Standard performances are a pre-requisite in order to allow comparisons to be made;
and
iii) a device which will enable alterations or changes to be made to performance; and
iv) a communication network enabling information flow among the various
component parts.
Essential to the successful operation of the control system is the feedback loop. The
interrelationships and effects of each component are monitored via this channel.
Johnson and Scholes (129) acknowledge Dalton (130) as the source of three methods
whereby individuals may be controlled, namely: Organisational, Social, and Self.
Figure 3.9 outlines these controls acting upon the individual.
Organisational Social Selfi I I
Control
Figure 3.9 Individual Controls
53
Figure 3.10 expands on the basic skeleton, considering some of the specific forces
which may act upon the individual.
Organisational
Social Self
quantitaive e.g. social pressures e.g.
behaviournorms
profitroles
market-share motivation
cost variance behaviour
III
CONTROL
Figure 3.10 Control Forces
Whilst it is clear that the many forms of control do exist, the exact quantity of any
one form acting at any one time will be dependant upon several factors, not least of
which is the individual themselves.
Motivation is seen as a primary method whereby the organisational member may be
controlled. The various attempts at inculcating this "self-control" within the
construction industry's members have led to many disputes and caused much ill
feeling. Many factors will work together to produce inertia from the individual. The
action seen will vary from time to time and from situation to situation. As such,
management must be able to view the overall processes at work and to comprehend
the influence that each of the active factors may have upon the individual, whether it
be to apply for vacant positions within the organisation, or to withdraw from the
organisational framework. To have the individual actually enter the organisational
setting is, in some senses, an achievement in itself i.e. have elements of the vacancy
raised relevant issues within the individual, for which some form of resolution is
sought?
54
To retain an employee would suggest that many of the underlying areas, discussed
within this chapter, are either being sated, or maintained at such a level as make the
employee see employment retention, within the organisation, as being a worthwhile
outcome of the effort expended and the application of the held skills, abilities and
attributes. When the employee no longer sees this as being worthwhile then departure
may ensue, or at the very least, levels of motivation will decline. The departure of
course being part and parcel of the Turnover process.
The whole issue of motivation and motivation theories still requires much work,
especially research which focuses on the construction industry specifically. Much of
the research and findings discussed within this chapter emanate from industries which
are clearly dissimilar to construction e.g. manufacturing, retail. The individuals who
comprise the construction industry workforce are drawn from a disparate background
and must carry out their range of duties under conditions which are non-static. The
very nature of the industry i.e. its cyclical trends and external influences, and the
work itself, encourages a transient workforce, whether the level be managerial or
operative, i.e. the location of the project is seldom close to home, and as one project
draws to a conclusion so the workforce migrate towards the locus of the next project.
Because of the perceived uniqueness of the industry and its workforce, the
applicability, directly or otherwise, of motivation theories must be viewed with an
element of suspicion. The import of theories into an industry which is such a
significant element within the overall economic supra-system must be carefully
considered by all involved. Part of management's attention should be focused on the
issues underpinning motivation, since some of these factors or forces may have
enticed, or driven, the worker to enter the organisation. These same underlying
forces may well serve to spur the employee onwards towards greater opportunities or
to join organisations which afford the possibility of attaining some desired objective.
Should the employee seek the latter, then the organisations' labour turnover rate will
increase and may lead to serious short and/or long term ramifications.
55
Chapter 4 considers in some detail the various aspects associated with labour turnover
and its effects on the organisation. It also considers the influences which act upon the
organisation in terms of recruitment practices, with specific emphasis on one
particular aspect of the recruitment practices. Management's responses to labour
turnover are discussed, as are strategies available to eradicate or reduce some of the
difficulties emanating from this turnover.
56
4.1 LABOUR TURNOVER
Labour turnover is present within the construction industry and as such its effects will
bear on all organisations and individuals who operate within the industry. The
following material provides a definition of turnover and suggests the influence of
organisational recruitment practices (specifically recruitment sources) upon labour
turnover. The material also brings together the foregoing chapters by showing how
motivation theories may affect the individual and ultimately the organisations which
make up the industry.
Organisation members will decide to leave, or are coerced into leaving the firm, so
giving rise to labour turnover. This turnover may well serve as an indicator of the
organisation's state of health (1), and may bestow both positive and negative benefits
on the organisation. Dalton et al (2), consider both sides of the argument i.e.
functional and dysfunctional as further amplification of the voluntary/involuntary
dichotomy. Illustrated in Figure 4.1 are the possible effects voluntary turnover may
have upon the organisation.
As a positive benefit, the employee's departure may create opportunities for
promotion of others and indeed, bringing in new blood to fill the vacuum may be a
prerequisite action to ensure the organisation avoids stagnation and institutionalisation.
The negative aspects can be viewed from terms of financial impact and organisational
disruption i.e. in work cycles. Financial considerations must take account of:
replacement costs, training, induction, loss of output, loss of goodwill, overtime and
where necessary, sub-contracting of workload. Burch (3), classifies costs associated
with labour turnover under five categories:Training & InductionAdministrative CostsLoss of OutputScrap, Waste & RectificationInitial Increased Supervision
These costs identified, whilst taking a simplistic approach, illustrate the complex
nature of turnover costs.
58
Loss of goodwill (amongst other facets) is given scant attention by Burch, and yet in
an industry with such a high profile, this must be an important aspect in determining
future workload, along with the employee, or potential employee's perception of the
organisation' s image in the community as a whole.
Rothwell (4), and Brayfield and Crockett (5), emphasise the morale of the individual
as one of the contributory factors leading to turnover, an exhibition of behaviour.
Leavitt (6), noted that three interrelated assumptions may be made regarding human
behaviour:
1 Behaviour is caused; and
2 Behaviour is motivated; and
3 Behaviour is goal-directed.
Therefore the individual's or the organisation' s exhibition of behaviour, leading to an
exit from the organisation, is the culmination of the interaction of these factors
Flamholtz (7) argues that human resource replacement cost may well be an area which
is capable of enveloping not only individuals, but also whole cohort groups. Many of
those recruiting employees perceive the new recruit as simply a substitute service
provider. Roles assume predominance rather than the need to replace the 'whole'
person.
A significant proportion of the research executed in this field has focused on
manufacturing industries and specifically on the individual unit of provision. The
construction industry may be seen as being fairly unique in that it calls for service
provision not only from the individual unit, but also seeks provision from the
collective, composite, unit e.g. bricklayers in squads of: two tradespersons and one
labourer, or three tradespersons and two labourers. It may be argued that the
individuals comprising the group perceive themselves as a homogenous entity and will
seek employment only under conditions which favour the cohort i.e. employ the
squad, not the individual. With the increasing use of sub-contracted labour within the
industry, so the need to study in depth their replacement costs.
59
60
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It becomes clear then that an important aspect of human resource management in any
organisation is the desire to reduce turnover, and its financial implications, to an
acceptable level. Considered along with these areas, is the need to ensure that the
correct labour/skill-mix is available at all times. The construction industry with its
formative and summative training regimes, coupled with the cyclical nature of the
industry, perhaps suffers greater than other industries in skill-gaps (8) (9). Strategic
decisions made by management must take heed of manpower planning and the
organisation must have information as to the length of service likely from an
employee, also the probability of their departure. For any of the industry's
organisations, turnover is a powerful tool to be utilised by management. Figures 4.2-
4.4 illustrate the nature of manpower levels within several constituent members of the
industry.
Analysis of turnover rates and trends will enable accurate planning of future
strategies, execution of contracted workload, optimum resource utilisation, reduction
in costs and may enhance the image of the organisation itself, if not of the industry
generally. Before considering various measures of labour turnover, effects and
strategic impact further, it is necessary to establish an acceptable defmition of labour
turnover.
4.2 TURNOVER DEFINED
Price (10), took for his definition "the degree of movement, exhibited, by individuals
across the membership boundaries of a social system". This definition is sufficiently
catholic to encompass not only the individual's movement from one organisation to
another and intra-organisationally, but also other aspects of the social system itself i.e.
unions, industries. Price's definition is much too expansive and therefore leads to the
development of a defmition much more organisationally specific. Hence Rothwell's
(11), description is considered suitable for the needs of the thesis. Rothwell sees
labour turnover as being "the total movement of people in and out of a company", and
this is given support and reinforcement by Gupta and Jenkins (12).
61
Total Employees -v- Self Employed
Self employ
200 •n••
000's
1400
1200
=OM
1000
800 molm•
600 —
\400 =NW
0
1971 1979 1981
1983
1986 1989 1990
Year
figure 4.2 Source: Social Trends 22
62
\Employee
I I I
S
— 140
— 135
— 130
— 125
w
— 120
920 —
900 —
880 —
860 —
. 840 —
820 —
800-'-
Number of Male and Female Employees000's 000's
— 115
780 —
— 110760 —
740 105
1987 1988 1989 1990 1991
Year
Figure 4.3 Source: Statistics Division, Employ'
63
Figure 4.4 Source: Statistics Division, Employ
Employees in Types of Organisations
19901980500 —
1985
450
400 —Others
General Builders
250 —
Civil Engineers Building and Civil Engineering Contrac
200
150
100 —
Year
64
With this continual accession and departure, labour turnover must be considered
dynamic and this dynamism has prompted writers to consider labour turnover as a
'process'. Figures 4.5 and 4.6 illustrate the elements contributing to both high and
low turnover.
Bucklow (13) saw the 'process' as being resultant from the interaction of:
a) the organisation, and
b) the individual, and,
c) the employment field.
Parnes (14), when viewing the turnover 'process' identified two basic processes
whereby the supply of labour may adjust to fluctuations in demand.
The first requires a relatively long time frame and involves external factors such as,
technological change, which alters the diacritical rates of accession to the various
employment opportunities. Wellman (15), notes that the demand for labour is a
derived demand and emanates from "the demand for goods or services which the
enterprise supplies and is moderated by the technology employed". Burns and Stalker
(16), in their study, noted the full impact of particular technological innovation on a
specific labour force.
The second basic process identified by Parnes requires a much shorter time span and
involves those already within the labour pool, responding to perceived changes in the
skill-mix demanded by employers.
65
Within this process are changes in labour mobility arising from:
a) occupational mobility
b) inter-organisational mobility
c) intra-organisational mobility (both locale and function)
d) entrance and exit from the labour pool
e) inter-industry mobility
f) geographical relocation
These changes are supported by Shorey (17), and Greenhalgh (18), who go on to
amplify the employee's search for firms paying wages higher than those currently
received along with those that have a suitable opening, and the effects of this 'search'
upon labour supply.
Each of the factors listed above may occur simultaneously and in conjunction,
therefore the situation of an individual changing geographical location whilst also
changing occupation is not an uncommon occurrence. Entrance to and exit from the
labour pool, is the exclusive factor in labour mobility and is pronounced in certain
demographic groups. Indeed as the labour pool of 16-25 year olds decreases along
with the lowering of retirement age, so the exclusivity of entrance and exit will have a
greater impact upon labour mobility. Curran (19), notes that "quits vary inversely
with the level of unemployment in the economy as a whole", therefore with a shortfall
in prospective employees, and the continued high work load levels, then the employer
may well be faced with increased labour mobilisation.
Further consideration will be given to labour mobility and sources of supply of labour
in a following chapter.
Thus labour turnover has been distinguished for the purposes of this study, however,
within turnover there are two basic types: voluntary and involuntary (20) (21).
Distinction between the two will serve to clarify matters further.
68
4.2.1 Voluntary or Involuntary
Within any organisation both voluntary and involuntary turnover may be exhibited.
The former occurs when the employee leaves the organisation by his/her own
volition. Involuntary turnover is generally initiated by the organisation within which
the individual occupies a post, it includes: death, ill-health and redundancy. Any
organisation in attempting to limit turnover, will consider carefully those areas of
turnover that may be regulated and emphasise these areas when formulating and
implementing policies. Figure 4.7 illustrates the nature of voluntary and involuntary
turnover when considered with those areas that may or may not be regulated.
Whilst employees are primarily concerned with involuntary turnover i.e. how safe is
their job, the organisation is rightly concerned with those who desert, which may be,
and often is, the major element of voluntary turnover. March and Simon (22),
promulgated a comprehensive view of labour turnover, noting that the perceived
desirability of leaving and the perceived ease of movement had great influence upon
voluntary turnover. That is to say that when activity in the market place is high and
labour supply is tight, then, any movement will be voluntary, conversely, when high
unemployment prevails then involuntary mobility assumes predominance.
4.3 MEASUREMENT OF LABOUR TURNOVER
Measures of Labour Turnover abound, and whilst it is not the intention to delve
deeply into this matter, a brief summary of several commonly utilised techniques that
may be applied to this research, are given below.
Consideration will be given to the following:
a) Crude Rate Analysis (both accession and departure)
b) Labour Stability Index
c) Survival Patterns
69
VOLUNTARY
deserts
job-share
early retirement
job release
voluntary redundancy
inter-plant transfer
inter-company transfer
marriage
pregnancy
INVOLUNTARY
deaths
illness
retirement
redundancy
dismissal
down-turn
liquidation
figure 4.7 Management of Voluntary and Involuntary Turnover
70
Attention is given to these measures since in arriving at strategic decisions
management must take cognisance of the labour turnover rate and strive to measure its
rate of change (23) (24).
A) Crude Rate Analysis
Whilst being less refined than other actuarial methods, the crude rate nonetheless
provides a measure of the general level of labour turnover within the organisation.
The crude rate may be calculated as follows (25) (26) (27):
Accession Rate = Ar = ( Ne/T )x 100 (1)
Departure Rate = Dr = ( Ni/T )x 100 (2)
where Ne = number of new employees engaged
= number of employees who left
T = the average number of employees
all considered during the same time period e.g. one year.
These crude rates may be applied to the organisation as a whole or to specific
departments/occupations. Since they are crude rates, they inevitably have inbuilt
misgivings. Cuming (28), emphasises the unavoidable nature of some separations i.e.
those of pregnancy and career advancement, and in doing so, adjusts the basic
Departure formulae (Formula 2) to take account of these. Hence
Dr = ( Ni/T )x 100
(2)
is amended to become
Dr = ( - U/T )x 100
(3)
where U = unavoidable separations.
Furthermore, the crude rates calculated may be influenced by the condition of the
organisation i.e. expansion or contraction. Van der Merwe and Miller (29), noted
that a departure rate of 100% per annum could in fact harbour many varying scenarios
e.g.:
71
a) the entire workforce had been turned over in the space of one year; or alternatively,
b) a third of the workforce had been turned over three times, etc.
Other areas of importance which fail to be highlighted by the crude turnover rate are:
length of service
stable workforce cores
short-term employees
These areas are of importance to management in long term forecasting and resource
utilisation, as an alternative to Crude Rate Analysis, the Labour Stability Index may
be employed.
B) Labour Stability Index
This index expresses the number of employees with more than one years service, as a
percentage of those employed one year ago and provides a measure of the tendency of
longer service employees to remain with the organisation. The Labour Stability Index
may be calculated thus:
Labour Stability Index = Lsi
Lsi = ( Nmtl /T )x 100 (1)where Nmti = number of employees with service exceeding one year; and,
T = the total number of employees at the beginning of the period.
An example will serve to illustrate the use of this index and its ability to clearly
highlight problem departments or occupations.
Example 4.1Department X100 employees of which90 leave and are replaced
Department Y100 employees of which10 leave and are replaced9 times.
i) Crude Turnover Rate
Dept X = (90/100)x 100 = 90% Dept Y = (90/100)x 100 = 90%
ii) Stability Index
Dept X = (10/100)x 100 = 10% Dept Y = (90/100)x 100 = 90%
72
Clearly then, although both departments have exhibited the same crude turnover rate,
the labour stability index for Department X is significantly lower than that for
Department Y and must give cause for concern. The motivational aspects considered
within Chapter 3 are emphasised by the labour stability index and this index serves to
reinforce many of the basic tenets considered within the foregoing chapter. Writers
such as Livy (30) and Bowey (31), suggest a strong correlation between "reinforcing
the right reasons for staying" (32), and the labour stability index.
C) Survival Patterns (Cohort Analysis)
Whilst the two indices discussed above are useful guides, for human resource
planning, on the state of well-being of an organisation, a more pedantic method
capable of use in forecasting is required. A functional weakness of the Labour
Turnover Index is its failure to allow for the length of service variable within
determinations. Analysis of homogenous groups (Cohorts (33)), i.e. employees
grouped according to dates of engagement, leads to detailed rates of survival for each
cohort of employees through time. Care should be exercised to ensure that the cohort
consists of members with similar characteristics, occupations and dates of recruitment
(34). The loss rate for each cohort is recorded until the rate has stabilised to a small
and slowly diminishing value (35). Once this "stability" has been attained a survival
curve for the cohort may be plotted. This survival curve may then be utilised to
predict the turnover which may be expected from cohorts over a given time period.
The forecast assumes that time may be applied liberally to both past and future trends.
In reality of course, the economic, as well as social conditions may vary so wildly as
to vitiate the forecast.
Calculation of the Survival Rate and its associated Wastage Rate may be derived as
follows:
73
Survival Rate = Sr = ( L/Tn )x 100
where L = the number of new employees who remain during the periodTn = the total number of new employees recruited
Wastage Rate = Wr = ( Tn-L/Tn )x 100
Plotting results for particular cohorts onto log-graph paper leads to straight line
derivations, which assist in the forecasting process (Figure 4.8 illustrates this
process).
This line may be extended into the future and facilitate prediction of expected losses.
Therefore management have information on which to base future requirements and
strategies. Bryant (36), when considering cohort analysis, noted an important
concept, that of "half-life" (37), i.e. the time taken for half the original group to
waste. Benefits deriving from the half-life are:
a) it offers a measure of stability both intra-organisationally and intra-occupationally,
since it is independent of length of service; and,
b) it may be utilised in predictive processes involved in recruitment and manpower
planning, e.g. 4 labourers are needed in 1 years time and the half-life of labourers is 6
months.
Recruitment needed now = 16
first half-life loss = 8 therefore core = 8
second half-life loss = 4 therefore core = 4
Finish number = 4, the desired number.
The half-life of cohorts and occupations will vary, therefore careful research and
analysis of the data is required prior to the actualisation of the technique.
Cohort analysis then, offers the advantages that we may assess the resulting effects of
various recruitment methods and policies along with the ability to forecast future
turnover and human resource requirements.
74
4.4 CAUSAL FACTORS IN LABOUR TURNOVER
Underlying reasons for labour turnover are multi-variate, (as discussed earlier), the
actual turnover may be by the employee's own volition or derived from the
organisation. Within each of these sources many individual factors may be isolated.
These factors will seldom, if ever, work in isolation. Rather, they will tend to act and
work in conjunction with other factors, to create a complex foundation structure
which leads to the turnover. Herzberg (as discussed in Chapter 3), showed in his
research on motivation that factors tended to intermingle and offer a convoluted
problem for the researcher to solve.
Much has been written on the subject of prime movers in labour turnover
(38,39,40,41,42), and therefore a brief consideration of relevant aspects will be given
within the following sub-chapter.
4.4.1 Isolated Factors
A complex combination of individual characteristics, organisational practices and
labour market conditions, leads to the phenomenon of labour turnover. Within this
"soup" of ingredients, a range of likely factors would include:
Individual: age, sex, marital status, skill level, educational standard, race, length of
service, personality, aptitude, ability, ambitions, social interests, family ties, etc.
Organisation: size, structure, composition of labour force, terms and conditions of
employment, employment practices, job satisfaction, unionisation, etc.
Labour Market: growth, decline, local conditions, national conditions, competition,
economic trends, etc.
Beaumont' s study (43), reinforces the consideration given to many of these
ingredients within the "soup" and in particular illustrates how several aspects are of
paramount importance e.g.
75
1
10
100
% Leaving plotted actual values
Figure 4.8
all values are hypothet
Log-Graph Cohort Analysis
Months96 % Remaining 80 50
10
100
4
N
20
half-life of 20 mon s
10 •
1
1
76
U.K. Region most preferred to work in
Location Position in TableWales/south west 1South east (excluding London) 2London 3North west 4 total %Yorkshire/Humberside 5 willing toScotland 6 move homeNorth east/North 7 to next job = 56%West Midlands 8
East Midlands 9
Northern Ireland 10
Also emphasised are the factors associated with terms and conditions of employment
e.g. working hours, holiday entitlement, pensions and health schemes, amongst
others.
When considering the top five reasons for alternating employment, the study found
that:
a) the desire for more experience was pre-eminent,
b) the lack of promotion opportunities was second in the respondent's table,
c) the desire to simply "have a change" occupied the third position,
d) the offer of a "good job" came fourth in the ranking of main reasons; and
surprisingly,
e) the desire to obtain more money was bottom of this table of main reasons.
It was a main reason, but the least important of the five listed reasons.
These findings support many of the tenets suggested by writers on motivation, and
further illustrate the complexity of the process of labour turnover. Therefore it
becomes clear that the picture of labour turnover causal factors as a whole, is akin to
peering into a pool of muddy water.
77
Of particular interest to this research is the organisation' s employment practices.
Within these employment practices are:
- recruitment procedures
- training
- discipline
- working conditions
- supervisory style
The area of recruitment procedures provides the focal point for further discussion.
4.4.2 Recruitment Procedures
Many writers consider improper recruitment procedures as a significant factor in the
process of labour turnover (44) (45) (46) (47) (48). Laser specifically considers
"improper personnel selection techniques", as a primary cause of employee turnover.
Selecting the employee who will not integrate into the organisation either because they
lack some essential skill, or fail to share common interests with other employees, may
well lead to termination of the employment.
In the selection process management are faced with several problems:
Firstly: the available pool, (as discussed in Chapter 2), may well limit the actual
number of applicants coming forward for consideration; and,
Secondly: the lack of a consistent approach to the selection process may lead to
judgements based on: physical appearance, first impressions, mutual interest of
interviewer and interviewee, etc.; and,
Thirdly: failure to fully communicate the tasks and functions of the vacancy whilst
over emphasising the virtues of the organisation as a whole, leading to confusion and
"blinding" of the applicant, since not only is the applicant being chosen, but they too
are choosing i.e. the organisation.
78
Therefore in establishing a systematic approach to recruitment procedures i.e. in
utilising a particular recruitment source, it is envisaged that this research will consider
the use of recruitment sources as an indicator of:
a) stable employee recruitment; and
b) a correctly applied technique; and
c) a reducer of labour turnover.
Labour turnover within the construction industry has generally been taken to be an
acceptable everyday occurrence. Management faced with the task of adequately
resourcing the obligation must seek measures which will ensure some form of
predictability in their labour resource i.e. how stable is the resource.
The issues and areas which may influence the existence of labour turnover and its
physical rate, may be considered in isolation, or more appropriately, considered under
an holistic approach. The previous material on motivation theories (Chapter 3) has
shown that each individual may require specific attention, likewise any group within
the organisation which the individual may be a constituent member of.
It has been shown that the labour turnover, if managed properly and strategically,
may well be a useful weapon to be fully utilised by management, under the correct set
of circumstances.
Labour turnover has a profound effect on the organisation, the various measures of
labour turnover discussed, each exhibit advantages and disadvantages. It is suggested
that whilst no measure has the right to be used in isolation, they do contribute to the
overall picture of labour turnover within the organisation. Use will be made of these
measures within the analysis of the research field data in order to highlight differences
between the recruitment sources used.
79
The recruitment source perceived as having the greatest utility may well be one which
is fully accommodated at present or one which should be taken on board as the 'in-
house' preferred recruitment source. Use of this preferential source may well go
some way towards introducing a degree of stabilisation in the recruitment practices of
the organisation.
An aspect of labour turnover which has been touched on briefly, is that of
ramifications deriving from the turnover. No doubt, any labour turnover will have
both direct and indirect influences upon the organisation and these influences will be
discussed further in the following chapter.
80
5.1 THE RAMIFICATIONS OF LABOUR TURNOVER
One of the objectives set at the beginning of this work was that of producing a
summation of the effects of labour turnover. In doing so consideration is given to
several viewpoints i.e. those of the industry as a whole, those of the singular
organisation, and also those of the employee. Producing the summation provides a
valuable overview of the effects of labour turnover and also acts as a link between the
earlier chapters.
The ramifications of labour turnover do not go unnoticed. Works within the fields of
construction management (1), construction economics (2,3), corporate strategy (4,5),
labour economics (6,7), and industrial psychology (8,9), all highlight succinct areas
which may be considered when endeavouring to establish the potential of any outcome
deriving from labour turnover. Globerson and Malki (10), along with Rees (11),
consider the "negative" consequences, whilst Dalton (12), and Kesner (13), focus on
the "positive" outcomes of labour turnover.
Review of a general range of such works points to:
a) functional/dysfunctional consequences: and,
b) monetary/non-monetary consequences; and,
c) salary/non-salary consequences,
as being the group headings under which the majority of outcomes may be classified.
Turnover, despite its counteractive connotations, may in fact offer positive benefits to
the organisation. The question as to balance poses the major challenge to
management i.e. at what stage is there too much labour turnover and when is there
not enough (14). The consequences tend to provide the key to this balance equation.
Examples of the negative consequences the organisation must grapple with include:
financial loss and loss of goodwill. Positive consequences may include: increased
skill levels and a better mix in the labour force.
82
Further consideration of the consequences emanating from labour turnover demands
that the argument be viewed from several perspectives, namely; those of the
employee, those of the employer, those of the wider environment, and those of the
industry itself.
5.2 THE EMPLOYEE'S PERSPECTIVE
To the employee, the act of leaving the organisation may have both beneficial and
counteractive repercussions. The index of consequences shown in Figure 5.1,
illustrates the positive and negative effects likely to be encountered.
If the exit is voluntary, then the employee expects that the change in his place of
employment will lead to "net advantages" (15,16,17). It is to be anticipated that:
salary will increase, increased self-actualisation will occur, greater challenge will be
offered, along with the various other positive aspects shown in Figure 5.1. The
decision to leave then, involves comparing the outcomes of leaving with those of
remaining. Detailed examination may be given to the monetary and non-monetary
outcomes and in particular, emphasis placed upon the wage/non-wage areas.
For the employee who leaves the organisation involuntarily, then no such comparison
is available. Choices available to them follow a fairly well defined format i.e.
unemployment benefit, social security payments, etc.
In light of this, the remainder of this sub-chapter will consider the monetary and non-
monetary aspects associated with those voluntarily departing.
5.2.1 Monetary and Non-monetary Aspects
An individual leaving his present employer may bisect monetary costs into those
associated with salary and those non-salary related.
83
Considered within salary costs would be items such as:
i) increase or reduction in the level of remuneration received.
ii) loss of bonus or special payments, or vice-versa.
iii) loss of shares or share options, or vice-versa.
iv) enhanced P.A.Y.E. contributions, along with other statutory payments.
v) possibilities of further salary enhancement.
vi) subsidy, or loss of subsidy, on transportation.
vii) entry or exit from expense account schemes.
The non-salary related items would include consideration of:
i) health plan exit or entry.
ii) increase or reduction in travelling time.
iii) job-search costs i.e. time, mail, telephone.
iv) loss or gain of pension benefits and rights.
v) enhancement or reduction in leisure time.
Therefore in choosing to leave the organisation, the net benefits deriving from the job
substitution must be perceived by the employee as being substantially greater than
costs.
The non-monetary costs for the person departing may be seen as being either
psychological/personal or social. The psychological costs include consideration of
contributory elements such as:
challenge, self-actualisation, stress, perceived promotion or possibilities for
promotion, enhanced self image, career enhancement.
Beaumont (18), shows in her study that challenge; respect from work group peers;
individual freedom; fresh knowledge, appreciation; being able to assist others;
suitable training; being liked, and peer group respect, are highly important factors in
providing a substantial degree of job satisfaction.
84
C)
—o
— loss of friends
o — black listing
g— skill atrophication
g _ disruption in family life
— loss of confidence— lowered self image
O — lowered expectations— o
f.) — increased stress
a— paranoia
loss of statuszs reduced employment prospects
- oZ reduction in living standards
.51 state support—
[ loss of earnings
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85
One other aspect worthy of note at this juncture is that of the social stigma attaching
to those unemployed, whereby Blackburn (19), noted that employers showed
prejudice against unemployed persons, considering them to be unstable. Thus
reinforcing the enhanced self image aspect, considered above, and suggesting that the
ability to move to a new job improves the self image.
Social costs borne in mind may include:
i) improved family conditions.
ii) mobility, both geographically and socially.
iii) enhanced status in the community.
iv) winning and losing friends.
v) financial stability or uncertainty.
vi) enhanced or reduced credit worthiness ratings.
5.2.2 The Employee's Determination
Where the positive monetary and non-monetary benefits of leaving prove
advantageous to the individual and family, then the move will be well founded and
provided circumstances remain unchanged, should lead to a reasonable period of
employment stability. The elements considered within this form of 'cost benefit
analysis' all combine to produce an algorithm which varies from individual to
individual.
5.3 THE EMPLOYER'S PERSPECTIVE
Traditionally, the turnover of labour has been perceived as being a generally negative
event for the organisation (20,21,22). Many current writers suggest that in fact the
situation may harbour both advantages and disadvantages for the organisation (23,24).
Bluedorn discusses how labour turnover may be economically justifiable, Figure 5.2,
and expands on various reasons for actually desiring labour turnover e.g.:
86
a) a presentation of a youthful image.
b) facilitation of change.
c) introduction of innovation.
Further enhancement of the desirability of turnover is provided by Martin and Bartol
(25), who illustrate in their Performance-Replaceability Strategy Matrix (Figure 5.3),
the effects and opportunities available from labour turnover. The permutation of
possibilities contained within this matrix are readily applied to the construction
industry e.g.
The following examples illuminate their categories:
Category F.
A labourer on a site who is repeatedly late, performs poorly and generally harbours a
negative attitude towards execution of the work in hand.
Category E.
A junior Estimator who is pricing one specific project and has continually incurred
errors and inaccuracies. Whilst he knows the project well, to allow continued
employment may lead to serious financial implications.
Category D.
The Cost-Bonus Clerk who performs on average and executes relatively routine tasks.
Someone with knowledge of computer based systems e.g. spreadsheets or databases,
may increase productivity i.e. operating over several sites, and lead to significant cost
reduction.
Category C.
The Buyer who has established a high rapport with suppliers and detailed knowledge
of where the most advantageous terms and conditions may be obtained.
87
Category B.
A Project Manager or Contracts Manager who achieves time and financial targets
whilst maintaining quality standards.
Category A.
Contracts Director or other director, whose detailed knowledge, expertise and
technical skills are paramount.
Categorisation of individuals contained within the organisation into each of the above
group headings would facilitate instant appraisal of the action necessary upon
notification of intention to leave, or dismissal.
5.3.1. Non-Positive Consequences
As discussed earlier, labour turnover may have both beneficial and non-beneficial
ramifications for the organisation. Figure 5.4 illustrates the likely effects deriving
from this labour turnover and there follows a discussion of some of the key non-
positive areas outlined.
5.3.1.1 Monetary: Wage Costs and Non-wage Costs
Monetary wage cost has two constituent parts; direct and indirect productivity costs.
The direct costs would relate to the salary given whilst the new entrant is striving to
match, or exceed, the productivity levels of the employee being replaced. This
induction period, whilst offering low marginal productivity, nonetheless is important
in the overall process of labour turnover. Buonocore (26), emphasises the transitory
nature of employees at this juncture in their organisational life and proposes that
"Mentoring" may well eliminate many fears, anxieties or misconceptions that the new
employee may harbour.
88
TurnOver within theseboundaries may be
—1insufficient
i
High
As the quantity of the human resources increase, so themarginal utility of each individual decreases. Thepoint where the marginal utility slope and the marginalcost slope cross, defines the organisation's optimisedturnover rate.
Marginal Cost Slope
1Turnover within theseboundaries may beexcessive I
Marginal Utility Slope
10 20 30 40 50
Annual % Turnover Rate
All values are hypothetical
figure 5.2 Turnover Management Economics Source: Bluedorn,1982, p8
89
Difficult
Easy
•II • • • •A •
Highly dysfunctionalturnover = retain or de-velop employee andwhere possible preparean understudy •
• • •
:;W:,;;;,•:;n,:,: •
r/
LOW
Figure 5.3 Performance - Replacement Strategy Matrix
90
HIGH
1.2:1171
4V-E-
Source: Martin and Bartol, 1985, p66
REPLACEABILITY
The responsibilities of the Mentor may be considered during three distinct phases,
namely:
pre-entry, induction+ x, and post induction.
Pre-Entry.
Prior to entering the organisation the Mentors may introduce themselves, whilst
explaining the basic premise of the mentoring function. A discussion and answer
session on the organisation and the new employee's roles and responsibilities, will
serve to provide beneficial prior knowledge. Goldstein (27), and Krockhardt et al
(28), support this general pre-induction information session noting that organisations
should "provide the prospect with a window which shows the firm in as true and as
clear a light as possible".
Induction + x (a time period of say, two weeks)
As the new employee enters the organisation the Mentor will be on hand to familiarise
the new employee with utilities e.g. cafeteria, store rooms, and also operational
procedures.
Post Induction
The Mentor will now begin to be seen more as the adviser e.g. introducing 'experts'
or deciphering organisation 'jargon', whilst still introducing new concepts i.e. social
groupings such as golfers. The Mentor will be available for moral support and
guidance but will at this stage have the opportunity of severing the mentoring
umbilical chord arrangement, when the employee is perceived as stable, capable and
functionally secure. Wanous (29), Reilly (30), Ilgen (31), and others have given
considerable attention to the issue of induction i.e. the complete process of entry into
the organisation. Information given prior to entry is believed to function as a realistic
precursor to the actual job itself and may reduce turnover in one or more of the
following manners:
a) by offering the potential employee the opportunity to 'self de-select' from the
available position; or,
91
b) by reducing expected job conditions, thus when in place, the actual conditions are
seen as favourable and lead to higher levels of satisfaction. Porter and Steers (32),
show how "met-expectations" may lead to significant increases in satisfaction and
hence stability; or,
c) increasing commitment to the organisation since the decision to participate was
voluntarily made; or,
d) by enhancing the capability to comprehend and deal with less desirable job
changes.
Indirect Costs
Indirect costs would include disrupted productivity, labour shortage and decreased
productivity. Becker (33), discusses how productivity disruptions are greatly
influenced by the skill-level or quality of the employee exiting. If the skills are
general in nature then these employees are significantly less disruptive and may be
more readily replaced from the labour pool. Martin and Bartols' Performance-
Replaceability Strategy Matrix (as discussed under Figure 5.3 ), reinforces the
perception of likely disruption from any employees' departure.
Monetary Non-Wage Costs.
Many formative analyses of monetary non-wage costs have enabled detailed
statements of constituent elements to be tabulated (34,35,36).
The monetary non-wage costs may be segregated into direct and indirect costs. The
direct costs including items such as areas concerning recruitment and selection, and
those arising during the employment but which are not related to hours of work e.g.
C.I.T.B. Levy. The indirect costs including amongst other aspects, the need to
consider redirecting strategies and the implications deriving therefrom.
Direct Costs.
Recruitment and Selection:
Costs to be considered within this heading would include:
92
advertising, employment agency fees, application processing, screening, applicant
expenses for travel etc., interviews, medical examinations, along with overhead costs
associated with maintaining an employee on the organisations' payroll e.g.
Accounting and Personnel Departments.
Training Costs:
Considered within this sub-heading are costs arising from:
trainers' time, materials utilised, employees' time, reduced productivity, orientation
of the employee, off-site training or education, and increased wastage and error from
the new employee.
Non-hour Specific.
Oi (37), discusses social security payments, pension plans, life insurance cover and
items such as levies as being non-wage costs which are borne by the employer
regardless of the number of hours expended by the employee.
Indirect Costs
Whilst being more subtle, or on occasions violent in its nature, the strategic planning
of the organisation is a vital issue. Where the organisation is going and how it intends
to achieve these goals and aims, will be greatly influenced by labour turnover.
Proctor (38), notes that in corporate or strategic planning the organisation must take
full cognisance of strengths and weaknesses. Labour turnover, if at unacceptable
levels, is seen as a corporate weakness.
5.3.1.2 Non-Monetary
Having given consideration to monetary costs of labour turnover, attention must now
be focused on non-monetary aspects. Generally, these may be thought of as referring
to those costs not directly attributable to production labour e.g. motivational
influences, morale, organisational structure, image, etc. The subject may be
bifurcated into those areas relating wholly to the organisation and those of a more
pervasive, subtle, nature which influence the external environment.
93
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Organisational Issues:
Staw (39), recognised the influence which leavers possess. The departure signals to
the remaining cohort that alternative employment is available, thus lowering the
morale of those abiding and at the same time encouraging these stable employees to
consider job-search. Spencer, Steers and Mowday (40), discuss the linkage between
the probability of fmding acceptable alternative employment and the turnover process.
The employee leaving clearly signals that such a probability is high and therefore
departure must be considered as an acceptable risk. The cohesiveness of the
workforce is reduced and the likelihood of further departures must be enhanced
significantly.
A departure at sufficiently senior level may well lead to reorganisation of workloads
or even departments. Thus the structure of the organisation may radically alter as an
after effect of the employees' departure.
Formal and informal communications and networks may be influenced, with resultant
interference of planned programmes, strategies or policies.
Environmental Issues:
Organisations show a public image, just like any individual. This image will
influence customers and potential recruits since very often the image is the first
contact made between the organisation and the individual. The perception of this
image is important and any loss or unsavoury attention will lead to increased
difficulties in: recruitment of new staff, retention of existing, and curtailment in sales.
The recent C.I.T.B. (41), survey of the image perceived of the construction industry
by school age students, amplifies just how powerful the image factor is.
Within the C.I.T.B. study, only 9% of the respondents saw the construction industry
as an industry worthy of respect, whilst 56% of the respondents perceived
office/clerical work as worthy of respect. This significant difference i.e. 47% clearly
95
demonstrates that the construction industry as a whole must invest substantially greater
effort, manpower and resources into improving and modifying the perceived image of
the industry.
So far, the issues under consideration have tended to be negative in nature. As stated
earlier, the labour turnover may in fact give rise to organisational benefits. These
positive consequences will be considered further.
Positive Consequences:
Johnson (42), illustrates that "recruitment drag" may lead to savings in manpower
budgets without loss of posts. The recruitment drag involves deliberately holding a
post vacant for a specified period of time thus distributing the work tasks over the
remaining workforce and effecting savings of labour costs.
New recruits may bring a fresh approach and increased assertiveness into the existing
workforce, whilst leading in re-evaluation and re-assessment of all that has gone
before. Group norms and procedures will come under close scrutiny, as will
communication procedures and personal linkages.
The employee who departs may well have been under-productive, troublesome and a
poor attender. The disruptive alternatives to quitting i.e. absenteeism and sabotage,
may well have already been exhausted by the employee. Absenteeism as a precursor
to labour turnover is well documented (43,44,45,46), and its effects on the
organisation are painfully obvious e.g. loss of productivity, dissension at workload
sharing by other workers, challenge to management's authority. Employees who
exhibit such behaviour are desirable as candidates for departure.
Other benefits that may befall the organisation are:
i) introduction of new knowledge or skills.
ii) updating of technological advances, via the recruit.
96
iii) increased stimulation of changes in policies and practices.
iv) increased internal mobility opportunities.
v) an increase in the flexibility of the structure.
vi) decrease in other withdrawal behaviours.
vii) increased opportunities for cost reduction i.e. lower salaries.
viii) consolidation of cost reduction techniques.
ix) increased satisfaction in the remaining cohort.
x) reduction in holiday entitlement.
All of these factors may have no hard, discernible, cash value, but nonetheless have
subtle, subjective benefits for the organisation. Factors worthy of further discussion
are those of reduction in holiday entitlement and lower salaries.
Holiday Entitlement:
The right to paid vacation time is usually pro-rata to the length of service i.e. the
longer the service, so the greater the holiday entitlement. With most individuals
wishing to take these holidays at the best climatic period i.e. summer, so then the
productivity of the organisation may decrease. Summer is generally the construction
industry's' busiest period. A new recruit to the organisation will generally tend to
receive the lower levels of leave entitlement, until sufficient length of service has
accrued, along with being last on the rota of date availability i.e. when they can
actually go on leave, thus the employee is available at the peak period and the
disruption to production may be minimised.
Lower Salaries:
Where conditions in the labour market are right i.e. excess supply and little demand,
then the organisation may be able to drive down the salary levels being offered to new
recruits and at the same time impose more onerous conditions of employment e.g.
longer basic hours before overtime is paid, and thus make significant savings.
97
Flamholtz (47) offers detailed analysis on human resource replacement costs. His
work clearly illustrates the costs incurred when replacing presently engaged human
resources with substitutes. The model outlined in his work considers many of the
costs considered previously within this chapter, but, excludes from the cumulative
arithmetic any discount allowance emanating from the beneficial aspects of the
turnover. Indeed, in his earlier works (48), a detailed model for establishing the
individual's value to the organisation had been proposed. The inference drawn from
this hypothesised model is that all values will have a resulting residual positive value.
The important issue to be drawn from his work is that the individual's expected
realisable value to the organisation is a product of two components, namely:
a) the individual's conditional value ( i.e. potential): and,
b) the probability that the individual will remain within the organisational
framework.
Many influences combine to produce the realisable value, some which may be directly
under the control of the organisation, others which are at the behest of the individual.
Management of the organisation must seek to manipulate the factors over which they
have direct control, in order to produce the greatest possible positive effect.
5.4 THE WIDER ENVIRONMENT
The many interacting forces which coalesce to form the wider environment e.g.
legislators, pressure groups, lobbyists, end-users, associated industries, financiers,
sub-contractors, etc., all take on board the level of labour turnover which is prevalent
within an organisation. The information may be fed in directly e.g. via employment
statistics, employees discussing the matter, employees entering new organisations, the
organisation's inability to fulfil orders due to lack of staff, recruitment
advertisements, or indirectly through tribunals, litigation, output or productivity
levels, backlogs, staff morale, day to day dealings i.e. new faces, different contacts,
etc. The organisation' s ability to entice new recruits to enter within its confines must
98
be modified by the wider environment's perception of the organisation itself. New
recruits will have the opportunity to consider carefully the various domains seeking to
acquire their utility.
5.5 THE INDUSTRY
The industry as a whole may wish to present the best possible appearance to its
constituent members, end-users, and supporters. In order to do so it must ensure that
all aspects of its operation are deemed to be acceptable. An industry with excessive
levels of labour turnover may be subject to unwanted public, or other, scrutiny. If the
industry must take an active role in the control or management of labour turnover then
it may deflect its attention or resources away from other more important strategic
issues. This does not preclude some labour turnover, indeed the possible positive
benefits emanating from the turnover have already been discussed in some detail.
Nonetheless it does involve the industry in monitoring its levels of turnover and
considering comparisons which may be made with other industries, although the
uniqueness element of the construction industry should be well considered prior to
drawing any conclusions from the comparisons made.
Whilst many aspects which interact to produce the conditional value are within the
control of the organisation and so may be manipulated to produce a positive effect or
value, the probability that the individual will remain with the organisation is subject
only to the individual's own input. No doubt many issues and factors will play on the
individual's perception of the desirability, or otherwise, of remaining within the
organisation, but as stated, these are prioritised only by the individual.
Therefore in order to enhance the expected realisable value the organisation must
endeavour to ensure that the probability of the individual remaining within the
organisation is as high as possible and positive, i.e. by use of a recruitment source
which is predictive of low turnover and also long term employment; based on the
organisation's definition of what constitutes long term.
99
The ramifications of labour turnover have profound effects upon the organisation as a
whole, the individual and the external environment. The stereotyped image of
replacing an individual leaving the organisation with a duplicate must change, to
encompass the belief of engaging 'the whole being' rather than simply an individual
who can slot into particular role areas and carry on the work without interruption of
the flow. Since the individuals applying to fill the vacancy will bring with them
baggage consisting of varying degrees of skills, attributes, abilities, knowledge and
beliefs, so then management must accept that a straightforward swap-over is virtually
impossible.
Whilst labour turnover initially appears negative in nature, there may be as many
counteracting positive issues as there are negative. Lack of turnover would tend to
suggest that the individuals within the organisation are "blissfully content" and
perhaps lacking in some of the basic motivating forces considered within chapter 3.0.
The 'Shangri-La' may become in itself, locked into rigid routines and operations and
so miss out on vital opportunities available in the market place. Those organisations
which are perceived as being complacent are very often seen as being easy prey by the
more avaricious organisations.
As discussed earlier, the positive and negative aspects of turnover may well be of such
complexity that management must consider the wider ramifications and issues before
reaching any conclusion. One underlying premise to both the negative and positive
outcomes is that there are potential employees in the market place. Where the recruits
may come from, and the influence this source has on the length of service, will be
considered in the following chapter.
100
6.1 HUMAN RESOURCES
Management must arrive at an appropriate decision as to the degree of reliance to be
placed on recruitment of 'ready made' employees from the labour market pool and/or
the quantity of recruits to be drawn from internal sources (1,2). Johnson & Scholes
(3) observe that in the final analysis "the success of a strategy is heavily dependent on
the people required to put it into effect". This issue is supported by Badger (4) who
notes that in the ultimate resort, the proper and efficient use of manpower lies with
management. It is the responsibility of management to deploy resources, of which
manpower is an important constituent, (see 2.2), so that desired objectives are
achieved (5). In order to successfully deploy the manpower resources, then
management must recruit them.
6.2 FUNCTIONS OF RECRUITMENT
Schuler (6) suggests that the principal purpose of recruitment lies in providing an
organisation with a pool of aspirants who are deemed potentially suitable, Livy (7)
concurs with this policy and sees recruitment as being concerned with:
i) locating suitable sources of supply
ii) communicating information relating to vacancies
iii) the generation of attraction in vacancies
Figure 6.1 illustrates the interactive relationships existing between the recruitment
function and the organisational whole.
102
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EXTERNAL ENVIRONMENT
Consideration of Figure 6.1 illustrates that recruitment comprises several specific
purposes and involves many important activities. Activities encompassed within the
functional role include: planning and forecasting needs both on a long range and
short term basis; job market analysis; development of effective recruitment programs;
evaluation of recruitment effort and effectiveness; determining legal implications and
ramifications; maintenance of records and databases; providing the applicant pool
(8,9)-
Consideration, in detail, will be given to two of these aspects, namely: the provision
of the applicant pool and evaluation of the recruitment effort i.e. how effective is each
source.
6.3 111E APPLICANT POOL
When a tender (for whatever type of goods, work or services) has been accepted and
the contract signed, then the focus of attention shifts to considering where exactly all
the resources, especially manpower, will come from.
Two basic sources of human resource supply are considered (10,11,12), these being
those sources intrinsic to the organisation itself and those which are extrinsic to the
organisation. Ford et al (13) bisect the sources intrinsic to the organisation into two
sub-groups, namely "The Internal Labour Market" (ILM) and "The Extended Internal
Labour Market" (EILM). The distinction being derived from the perception that
ILM seeks to fill vacancies from the organisation's existing workforce, either by
promoting or re-deployment, EILM operates to secure new recruits from those who
already have tenuous links with the organisation e.g. friends or family employed
there.
A range of the literature available (14, 15, 16) suggests that Intrinsic sources available
to the recruiter include:
104
- Groomed candidates i.e. those undergoing training and some form
of development for specific roles.
- Promotion of existing employees.
- Trawl of potentially suitable candidates.
- Interdepartmental transfer.
- Internal advertisement.
- Employee referrals.
- Retraining.
Available extrinsic sources, whilst in theory being boundless, are nonetheless fairly-
well delineated in practice and include:
- Direct advertising, both locally and nationally.
- Government bodies and agencies.
- Commercial employment bureaux and agencies.
- Head-hunters or selection consultants.
- Schools (considered fully in a later subchapter).
- Colleges and Universities.
- Introductions.
- Re-employment of former employees.
- Casual call-ins.
A general typology of approaches to recruitment may be developed from the various
sources. Figure 6.2 illustrates this typology, and this figure serves to underline both
the cost implications and the diversity of the applicant pool being trawled.
Each of these potential approaches exhibit both advantages and disadvantages, and a
brief summary of these is presented following Figure 6.2.
105
RESULTANT
Lower Increasedcost of labour pool
process
A
yHighcost
RECRUITMENT APPROACH
GENERAL SPECIFIC
APPROACH METHOD
Informale.g. sources No.6 and 7.
Personal contactBy staff or by line employee
Fairly Informale.g. sources No.8,9,10,11, and 13.
InternalNotice board at gates.University sources.School sourcesCareers service.
Formale.g. sources No.4,5,12, and 14.
AgenciesJob centres.Commercial agency
Advertising* (sources No 1, 2, and 3)Internal generationExternal generation
Consultants (source No 12)Management selectionExecutive search
Lownumbers
of potentialapplicants
Figure 6.2 Recruitment Approach Typology * available for use in all approaches.
Informal:
Strauss and Sayles (17), believe that the new recruit supplied by satisfied employees is
amongst the best source available to the organisation. Ullman (18), notes that 85% of
employers questioned, preferred to utilise informal channels when recruiting particular
staff. Hill (19), sums up the underlying belief by stating that "the quality of referrals
may depend on the morale of the employees, the accuracy of the information and the
closeness of the intermediary friend". The first two of these important factors having
been amplified earlier. Costs borne by the organisation, when using this approach,
are minimal but, accordingly, the actual range of applicant brought forth will be
restricted.
106
Fairly Informal:
In order to increase the possibility of securing potential employees, the applicants
should receive as accurate a picture of the organisation and the actual post open, as
possible (20). This information may well lead to securing their fullest co-operation in
the organisation's endeavours and satisfy the applicants' own needs i.e. meet
expectations.
As the input from the organisation increases, so the associated costs rise i.e. in
management time, reference take up, etc. The applicant pool has however widened
and offers a much greater scope for selective processes.
Formal:
The greatest possible pool of applicants should now be available for selection. In
order to achieve this enhanced group the costs attributable have multiplied
significantly and may give no guarantee of long term success.
Consideration is given to the sources available as a prelude to a discussion on the
efficacy of each source, it also allows the fuller picture to be developed of the
recruitment sources available to the organisation.
6.4. RECRUITMENT SOURCES
Within the research consideration is given to fifteen possible recruitment sources:
1 - Local Press advertisement2 - National Press advertisement3 - Trade or Business Journal advertisement4 - Recruitment Agency (main)5 - Subsidiary Recruitment Agency6 - Referred by current employee7 - Re-employment of an individual8- Referred from school9 - College/University "milk-round"10 - Casual call-in to office11 - Training Agency12 - Head hunted13 - Internal source14 - Job Centre15 - Other/Unknown
Whilst being some of the more generally applicable sources of recruits, the above list
is not exhaustive. Radio and television sources are two amongst others which have
107
been omitted primarily on the basis of infrequency of use. Source number 15 i.e.
'Other' has been left entirely open to allow the respondents full reign in their
response.
Each recruitment source may be seen to have advantages and disadvantages associated
with its application:
Advantage Disadvantage
Local Press Advertisement
Encourages those seeking 'local'
employment to respond to the vacancy
Local press incurs
significantly lower insertion
costs
May not be seen as prime source
of vacancy information
Advertising format may lack
sufficient punch to be eye-catching
Vacancy is kept within
geographical constraints
National Press Advertising
Increased potential applicant
pool
Selected newspapers perceived
as the spot in which to locate
appropriate vacancies
Significantly increased cost of
inserting vacancy
Greater vetting of applicant
required and associated
administration increases
Image conveyed is that of a Likely increase in overall
national organisation or at
benefits package i.e. cover
least an organisation operating removal expenses etc.
nationally
108
Advantage
Disadvantage
Trade or Business Journal
Targeted population reading
Low circulation periodical
advertised vacancy
Standard of applicant enhanced
All potential applicants may
not respond or do so after
closing dates
Recruitment Agency (Main)
Applicants selected from
May produce staff who
nation wide sources prefer limited tenure
Relatively quick response times
Internal applicants may be
excluded
Early vetting carried out
Costs tend to be prohibitive
ensuring accurate and rise according
candidate referral
to position filled
Recruitment Agency (Subsidiary)
Anonymity ensured when
Recruit may remain on
soliciting applicant
database and be solicited
again
Reduces administrative tasks Element of mis-trust generated
in-house
109
DisadvantageAdvantage
Referred by Current Employee
Applicant fully versed in
expected responsibilities and
duties via realistic job preview
Restricted applicant pool
Referee offers some degree of
guarantee as to applicant's
suitability
Low cost to secure and
administer
More suitable applicants
may be bypassed
Reliance placed on existing
employees
Referred from School
Regular annual flow of
Lack of genuine comprehension
interested applicants of organisations' aims, goals,
structure, etc.
Early opportunity to secure Substantial training in more
suitable school-leavers 'real-life' skills required
College/University 'Milk-Round'
Continuing source of graduates Searchers are window-shopping
rather than buying
Inexpensive and relatively Schedules for securing
simple to administer applicants maybe restrictive
110
Advantages
Disadvantages
Casual Call-In to Office
Little administrative costs
Lack of background know-
involved
ledge of applicant
Responsive to day-to-day
Close supervision in initial period
needs may be required
Able to offer immediate use
of skills
Training Agency
Source of carefully vetted
applicants
Poor attitude from applicants
Subsidies may reduce
Short term tenure due to costs,
employment agency restrictions or rules
Pre-training may reduce on-site
requirements
Head Hunted
Specific candidate for specific
post
Significant increase in post's
professional fees
Reduced administration
Candidate may not integrate with
existing structure or teams
Confidentiality
111
Advantages
Disadvantages
Internal Source
Provides maximum channel to
Applicant pool is severely
employees curtailed
All internal candidates may
No comparison available
consider applying
between internal and
external candidates
Reduced induction and training
'Clique' image conveyed to
periods external environment
Relatively simple administratively
to execute and low cost
Considering the fifteen sources under the general typology of approaches, it can be
discerned that 13% are informal, 33% are fairly informal, 27% are formal and 27%
are available for allocation within any one of the three general approaches.
Many writers have studied the numerous modes of possible recruitment (21,22,23,24)
but few have linked identified sources with the term of employment generated by each
source.
Consideration of the linkage between recruitment source and employment duration
may well serve to highlight the efficacy of each individual source and suggest those
sources which should be utilised in preference to others. Decker and Cornelius (25),
Reid (26) and Gannon (27) are amongst the few who have given in-depth
consideration to recruitment sources and employee turnover.
A brief summary of the findings of those studies carried out which endeavour to
quantify the link between recruitment source and employee turnover, assists in
providing the background framework on which the present work is underpinned.
112
6.4.1 Investigations into Sources and Effectiveness
Much has been written in support of, or denouncing, specific recruitment sources.
Schwab (28), concluded that employee referrals gained pre-eminence as the more
effective recruitment source. This view is supported by Hill (29) and Ullman (30),
who whilst quantifying their acceptance of the resulting data nonetheless conclude that
this source is pre-eminent. Gannon (31), noted that the consistently better performer
in providing stable employees was the source of re-employment of past employees.
Taylor & Schmidt (32), also concluded that re-hires were the better attenders, higher
performers and exhibited the longer durations of employment tenure.
The important concept emerging from all such studies is that sources do exhibit
differential effectiveness and therefore study of these sources may be utilised by
organisations to identify the most applicable source of applicants, relevant to their
organisation.
6.4.1.1 Factors in Differential Source Effectiveness
Causal factors giving rise to differential source effectiveness may be addressed by at
least two approaches.
The first considers differential effectiveness as a function of the realism found
contained within the information relating to a vacancy passed onto the potential
employee. Realistic information given by particular sources such as existing
employees is considered more realistic than information given via e.g. advertisements
or other sources. The information given by the more realistic source is believed to
function as a 'realistic job preview'.
The second approach proposes that recruitment sources vary in effectiveness primarily
due to reaching applicants from dissimilar populations. An advertisement in a quality
113
newspaper may not reach the same reader profile as an advert placed in one of the
many tabloids. The deduction drawn is that the individuals recruited from the
differing sources vary in respective abilities affecting job performance, values in job
satisfaction, and therefore participation behaviour i.e. absenteeism and length of
employment.
As discussed earlier realistic job previews may serve as a provider of realism for
vacancy candidates. Wanous (33) hypothesised that the differential effectiveness of
various sources of recruitment may be a function of the realism found within the
information available relating to the vacancy. Of those studies reviewed, Reilly,
Tenopyr and Sperling (34), Ilgen and Seely (35), Macedonia (36), Farr et al (37),
Wanous (38), Youngberg (39), Weitz (40), four are clearly successful in exhibiting
significant variances in turnover when considered with the availability of realistic
preview information. Three studies note varying effects deriving from the realistic
preview e.g. Reilly, Tenopyr and Sperling show that a significantly lower acceptance
rate was obtained for those receiving a realistic job preview than those receiving
favourable or those receiving no special information. An eighth study, that carried
out by Manwaring (41), points to word-of-mouth recruitment as being extremely
prevalent and indicates that this form of recruitment practice is advantageous to
employers in terms of access to reliable supplies of employees, cost, appropriately
skilled potential recruits, and a perceived reduction in both turnover and absenteeism.
Manwaring also discusses how this form of recruitment affords the potential employee
opportunity to access data and information on conditions, wage rates, organisational
culture, etc.
Two studies carried out to consider the influence of "individual's differences" support
the argument that the individual's characteristics do in fact precipitate differential
source effectiveness.
Taylor & Schmidt (42), show conclusive support for individual characteristics as
causes of differential recruitment source effectiveness. They note that with respect to
114
absenteeism and tenure their study shows strong support for the linkage between the
individual's characteristics and differential source effectiveness. Breaugh (43) shows
tentative support for the argument by noting that those recruited through newspaper
advertisements lost almost twice as many work days as those recruited through other
sources. Further description is given to the variance in work attitude exhibited by
these same sources of recruitment where the newspaper advertisement generated
recruits were the poorer performers. Both approaches predict certain characteristics
of recruits and both may well be utilised by an organisation in order to fully account
for and comprehend the source of referral deemed the most applicable.
Motivational issues considered earlier in the thesis are once again highlighted. The
pervasive affects and effects of motivation and satisfaction are such that they may play
a key role in determining the effectiveness of any recruitment source and thus
influence the practices implemented by the organisation.
An area highlighted as a fairly informal (and therefore a reasonably low cost) source
of potential employees is that of schools. Little effort has been devoted by the
construction industry to winning minds and hearts at an early age.
6.4.1.2 School and Vocation
"Pupils from Airmyn First School are being taught building skills" as are those at
Stanbury First (44,45). The comments attributed to children actually taking part in
this 'filling-out' exercise suggest that they enjoyed the work involved. Few other
such schemes are found in the education system and indeed, construction as a whole
receives very little impetus from education. Given that the construction industry now
accounts for some £40BN (46), more should be done to encourage aspiring school
leavers to enter, or at least consider the industry.
The Royal Bank of Scotland, The Bank of Scotland, along with the Trustees Savings
Bank., have long since seen the wisdom in catching them early. Between these banks,
115
they have opened 339 in-school banks (47), primarily operated by the pupils
themselves, and the banks all agree in suggesting that the long term benefits i.e. a
stable client base, will more than justify the investment made.
Scottish education offers the student the choice of some 98 subjects in The Scottish
Examination Boards' ordinary, standard and higher categories (48). Of these 98
subjects only a limited number may be even remotely linked to the construction
industry i.e. Engineering, Technical Drawing, Technological Studies, Woodwork,
Metalwork, Physics, Computing Studies and Maths.
The Scottish Vocational Education Council on the other hand perceive the true impact
of the construction industry and from a total possible range of 2505 National
Certificate Modules, offers 412 modules specifically related to the built environment
produced by the construction industry (49).
There can be no doubt that by the time the pupil is ready to leave school the golden
opportunity to impress and persuade, will have been missed. St. Francis Xavier (50),
epitomises the thoughts when saying "give me a child for the first seven years and you
may do what you like with him afterwards". More must be done to enter schools and
convey the message of the worthwhile and challenging professions available. The
C.I.T.B. Report (51), illustrates the dire consequences of doing little or nothing. This
report shows that of those 12-14 year olds questioned, 44% mentioned trades such as
bricklaying, concreting, plastering, as the image they associated with the construction
industry. A further 19% merely mentioned building in a general sense.
These numbers represent a vast potential army of employees who are receiving at
best, misguided information, and at worst, completely false information, regarding
the construction industry, as a whole. Gale (52) has shown that the image of the
industry is capable of enhancement by means of 'Insight' courses. The results from
the studies carried out into image change clearly demonstrate that the problem is not
insurmountable, given that the appropriate resources and expertise are fully committed
116
towards attaining a worthwhile change. These 'Insight' courses may be viewed as
realistic job previews. . Therefore in terms of motivation they may be seen as
providing the vital spark which the individual needs in order to overcome some
barrier towards entry to the industry as a whole and more specifically to enter some
organisation.
As discussed earlier, realistic job previews are a strong motive force in the armoury
by which recruits may be secured. Entry to schools with the intention of allowing
children access to much more comprehensive information and time spent allowing
'hands-on' in the industry must be seen as a priority issue.
The expenditure of effort in this area can only serve to bolster the number of
applicants generated by this particular source and may go some way towards
developing a degree of long term commitment from those responding to recruitment
from this source.
6.5 SYNTHESIS
Many areas have been considered so far and each of them has shed some light on the
central issue i.e. how does the recruitment source influence the employee turnover
within the construction organisation? In order to address this question the areas are
shown as a composite whole within Figure 6.3. This model indicates the interaction
between and within the many elements and highlights the importance of considering
the central issue. Whilst the foregoing chapters have considered the elements shown
in some detail, they are now drawn together into a model which allows the reader to
grasp the wider appreciation of the subject.
Figure 6.3 shows that the various individual elements whilst appearing to act
independently of each other do in reality influence others, and as such changes in one
element may have significant effects on the composite model. The synthesis of the
research paradigm is aided by using and integrating relevant areas of the material
considered in earlier chapters. For instance:
117
Gannon' s work provides the initial framework upon which to develop a broader
picture which may nonetheless be made specific to the Scottish construction industry.
His work whilst being at the forefront of theoretical appreciation was nonetheless
limited in its scope, range and application.
Focusing on a singular organisation which offers a limited range of occupations and
seeks recruits from a restricted labour market ensures that weaknesses are inherent in
the research. The analysis of data given by such a short time period i.e. 5 years, may
also contribute towards the inclusion of faults which could have been erased by
considering data from a wider timebase.
Within this research the number of recruitment sources considered has been greatly
expanded, from an initial research item which considered only seven sources to the
present covereage given by fifteen sources. The organisational types have been
enlarged to consider not only large, but also small and medium sizes. Also, the
actual number of organisations considered will be increased from only one, and so
provide a much broader range from which data may be extracted, and the work areas
under scrutiny will also be expanded to accomodate a wider diversity of individuals
and occupations. The inclusion of a much wider range of recruitment sources and
organisation types/sizes reinforces and expands the research efforts carried out by the
writers considered earlier.
The ramifications of labour turnover have also been considerably expanded, to
consider more than just the direct financial cost of recruiting an employee, towards
developing a wider appreciation of the whole picture of labour turnover ramifications.
The impact on the organisation, the individual and the industry have been analysed in
some detail. This expansion provides the reader with a much more comprehensive
view of the likely effects or outcomes of labour turnover.
118
The PotentialEmployee
Image
Recruitment Sourcesused
Application tofill vacancy
Employment
Length of ServiceStability
Employee Turnover
The Construction Industry Envelope
Ramifications
)
...
The Organisation
Desirabilityof vacancy_ Recruitment
Motivational Source PracticesState Vacancy Effectiveness
Information
The Wider Environment
LEGEND
permeable boundary between the industry and its environment
permeable boundary between the organisation and the industry
influence/linkage path
Figure 6.3 Modelling the Enigma
Integrated within the research has been consideration of the influence of motivational
state upon the employee or potential employee. Many writers have considered
motivation in all its guises but few have taken the issue and applied it to recruitment
sources and employees. Many factors may influence the motivational state and these
have been considered along with the wider issues of how the individual and the
organisation interface.
119
Recruitment source effectiveness has been given scant consideration in the past,
especially in times when the labour market was bouyant and employers faced little
concern as to where the next recruit might come from. The much heralded
demographic changes have provided some impetus for employers to consider the
longer range view of labour markets, and in particular whether the sources will be
internal or external to the organisation. The consideration of source effectiveness
adds to the development of a wider understanding of the recruitment process as a
whole and specifically the impact of using particular recruitment sources in preference
to others.
The use of particular recruitment sources may well have significant impact on the
'perceived' image of the organisation and so have some influence upon the likely
success of recruitment strategies implemented. This image may prove to have
significant influence upon the motivational state of the potential or existing employee
and so serve to reinforce or limit labour turnover.
Several writers have shown how quit rates for each of the recruitment sources
considered may be developed, and this approach is fully integrated within the research
in order to support and substantiate the objectives set out within the introduction. The
development of quit rates for each of the sources aids in establishing which of the
recruitment sources provides the more stable employee and also provides an indication
as to where the longer term employee may be secured.
The hypotheses generated, literature reviewed, and research undertaken, have shown
that the sources utilised in securing employees for the organisation may have
significant impact on the effectiveness of recruitment and in practical terms, the
stability and impact of the recruit on the organisation. No doubt exists as to the
importance of research into this sphere of recruitment practice, rather, the question
remains as to why such a relatively diminutive quantity of research has actually been
executed in this area?
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The organisation may gain significant benefits from use of the appropriate recruitment
source, more than simply in monetary terms. From the stability point of view, the
ability to be able to say with some degree of statistical confidence that a particular
candidate is likely to remain for a period falling within empirically proven time
parameters can only be seen as a 'plus point'. The construction industry has been
shown to require individual employees and also certain squads, each of whom may be
key players in the execution of contractual obligations.
Reduction in costs apportioned to the composite recruitment process must be viewed
as worthwhile by management and this objective may be attained by precise targeting
of candidates, rather than the adoption of a blanket approach towards securing the
employee. Cost reduction/savings may also come about by skillful use of labour
turnover at times of labour surpluses or shortfalls.
The recruitment process operates as a function of the industry generally and attempts
at improving the effectiveness and efficiency of this process have been relatively
limited. Research aimed specifically at improving this organisational function has
been shown to be worthy of the effort directed towards it. Labour turnover must be
subject to management control and this control must be founded on a solid
understanding of the processes involved.
The research has taken a basic skeleton and expanded the concepts into a substantive
effort to secure information and answers to hypotheses on recruitment sources and
their influence upon organisational labour turnover. Which recruitment sources are
more effective and therefore worthy of usage may be established by gathering and
analysing sufficient data.
The literature available and past research efforts considered in previous chapters
coupled with the synthesis model illustrated in Figure 6.3, shows that the research
may provide important information affecting the recruitment process as a function
within management of the organisations which comprise the construction industry.
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Many other areas of worth and benefit have been discussed previously and serve to
reinforce the basic tenet that consideration of the recruitment source utilised is
beneficial to the organisation, directly, and of merit to the industry as a whole.
In order to find information and answers to the hypotheses raised within this research
it is necessary to execute further research in the field. In order to do so, it becomes
necessary to establish a methodology which will not only provide sufficient data, but
also withstand the rigours of subsequent scrutiny, digestion and regurgitation.
Replicability must also be considered since others may wish to verify findings of the
research and where necessary, replicate the exercise. Bearing in mind the work
carried out by earlier researchers, and to some extent avoiding their limitations, the
approach to the field-work may be considered from several viewpoints i.e. those of:
the researcher actually carrying out the work; and,
the organisation under scrutiny; and,
the industry as a whole.
The researcher may be constrained by many factors and must seek to overcome these.
The organisation providing the data must do so freely and willingly, and see clearly
the potential worth of the research. The industry as a whole requires input which is
informative, beneficial, factual, and capable of incorporation within everyday
operational processes or procedures.
The following chapter discusses the approach to the field-work and establishes the
methodology to be adopted and employed.
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7.1 METHOD
Establishing a methodology for undertaking an advanced piece of research demands
that many constraints and variables are given due consideration. The methodology
chosen must also take into account reliability, validity and replicability. Others may
well consider the subject matter and the research work itself, seeking to expand and
reinforce it or to find some fault.
All research projects are limited by time but none more so than those for post-
graduate degrees and dissertations where the quantity and quality of output is
substantial. Consideration therefore needs to be given to the approach and selected
method, which are able to meet the constraining time element. Sources of data and
references should be available to assist in both the literature review and the research.
Bailey, (1), lists several sources e.g. Libraries, Periodicals, Dissertations; use will be
made of these and other sources.
These considerations and, what may be perceived as constraints, will bear on the
purpose, approach and to some extent, the depth of the topic being researched.
7.2 RESEARCH CLASSIFICATION
Howard & Sharp, (2), give a definition of research as being action "seeking through
methodical processes to add to one's own body of knowledge and, hopefully, to that
of others, by the discovery of non-trivial facts and insights".
In addition to classification by field, such as the social sciences, life sciences, physical
science, etc., Howard & Sharp identify three other classifications, which do not
preclude in-depth knowledge of the researcher's subject. Stapleton (3) expands on the
definition, into areas of practical ability and application, seeing research as being:
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a) search or enquiry which is executed with care; and/or,
b) seeking to discover facts by scientific study; and/or,
c) engaging in a course of critical investigation; and/or,
d) a process which expands and advances the frontiers of knowledge.
The focus of research may be seen to be the element of the unknown. The element of
the unknown being facts to be discovered in their own right, or relationships between
unknowns. Leedy (4) rightly asserts that research is a cyclic process; in the beginning
is the unanswered question, this leads on to the clear statement of the problem, which
directs us to sub-divide the problem into appropriate sub-problems, this leads us to
postulate hypotheses which in turn send us seeking for facts which will be collected
and assimilated, this in turn leads to interpretation of, and finding meanings within the
facts, which hopefully will support or reject the hypotheses and thus answer the
question set, or pose a set of new questions. The research need may be chronic or
episodic, with the episodic research need being the more difficult to cater for, due to
its non-permanent nature. The researcher engaged in work for higher degrees must
view the research effort in the light of both camps i.e. the degree work is episodic
since there may be little further concentration on the area considered after the
successful completion of the thesis, but their also exists a chronic need for research on
a variety of topics and interest areas.
7.2.1 Purpose of Research
The four common and generally accepted purposes of a research project are:
a) To review current and existing knowledge
b) To establish and describe some situation or problem
c) Construct something novel
d) Explanation
1 25
Lin (5) sees research as being directed towards detecting regularities and offering
clues to possible solutions to problem areas. The research being executed in order to
satisfy conceptual or theoretical reasons and also to state pragmatic or applicational
reasons. Therefore it can be argued that the purpose of research is subject to
consideration by the individual asking the question i.e. not everyone will agree on the
same underlying reasons, but will be able to put forward some form of justification
for the research effort being expended.
7.2.2 Approach to Research
The majority of research projects are approached by one of the following methods:
a) Laboratory experiment
b) Field experiment
c) Case study
d) Survey
Each approach being useful to the researcher at various points in time and under
appropriate circumstances. Wax (6) traces the foundations of research approaches to
their origins and highlights potential pitfalls for, in particular, the field-worker.
Filstead (7) sees objectivity of the researcher as a key element within the approach
selected for implementation. The researcher must maintain a balanced relationship
and utilise appropriate supports in order to obtain this objectivity.
7.2.3 Nature of Research
Howard & Sharp acknowledge Grinyer (1981) as the author of this approach where
the variation by nature and type of contribution to knowledge is used as a
classification being:
a) pure theory
b) testing of existing theory
c) specific problem solving
d) description of the state of the art
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7.3 CONSIDERATION OF THE SUBJECT
The decision as to which methods to employ in studying the efficacy of recruitment
sources employed requires that a review of the constraints applicable be carried out.
The major constraints may be seen to be time and the access to the data which is
considered to be suitable and adequate.
Time is particularly relevant since the research, to be seen as beneficial, must have
relevance on a time-base i.e. if purely historical then it may have little applicational or
informational significance.
The quantity of data required in order to ensure validity, accuracy, depth and width,
soon amasses and places significant constraints upon the researcher in terms of;
collection, especially where substantial records or databases have to be searched;
collation, into some form of coherent mass of data and information sources; analysis,
such that the data gathered is discernible as meaningful or not; interpretation, in order
to arrive at some sensible deduction or conclusion; summating, so that the data and
subsequent findings are coherent, meaningful, logical and sound; and presentation of
the research and findings into a format that others will be able to access and find
constructive.
7.3.1 Approach to The Research
Several conceptual models have been put forward by others to serve as a basic guide
towards a systematic approach. Without a systematic approach then the research will
be inefficient.
Tudor (8) analysed the processes involved in inquiry, arriving at six elemental
constituent components, which are subject to influence from the wider environment.
These elements were seen to have boundaries which overlapped at the borderlines and
thus were determined to be 'loose' fits. Figure 7.1 illustrates the interaction of each
of the elements and highlights the 'grey' areas which may be found at element
boundary interfaces.
127
Whilst, admittedly, being seen as loose fitting, the elements of: experience,
interpretation, derivation, testing, establishing, and explaining, do mesh together to
form a cohesive approach to inquiry.
Each of the elements contribute towards the development of the composite process:
Experiential:
being aspects of our world or environment which we encounter and perceive as
being significant and/or problematic. Reasons for, and underpinning, the
encounter being perceived as totally open ended.
Interpretational:
preconceptions will bias all individuals towards some standpoint and/or view.
The preconceptions held being subject to the influences of time, and the
situation i.e. not all preconceptions will always apply in all situations.
Derivation:
being the use of, and the establishing of, preconceptions, based on experiences
gained earlier and those still arriving. Personal and situational factors will
influence the derivative processes.
Test:
where we compare, review, and evaluate the interpretations against new
experiences which may emanate directly or indirectly from other experiences.
Establish:
the 'truth' as we see it is compiled and is put forward within the social
context.
Explanation:
the 'truth' is utilised in explaining further experiences and aids in the
development of understanding of our world. The environment within which the
experiences are being gained and the inquiry is taking place, will have a major
influence on the process as a whole.
129
Rummel & Ballaine, (9), proposed a six step model which comprised, "a felt need,
the problem, the hypothesis, collection of data, concluding belief, and general values
of conclusion". Each of these steps may be viewed in isolation but develop greater
synergy when taken as constituent elements of the overall process of 'inquiry'.
7.3.2 Applicable Methods
In considering the 'approach' to the topic, time would suggest that as wide as possible
surveys be executed in order to secure sufficient quantity of data and ensure width and
depth, by gaining access to a range of organisations.
Descriptive surveys have been considered as a means of collecting data but rejected on
the grounds that:
i) observation is seen as the principal means of data capture;
ii) the study population requires to be chosen carefully, specifically delimited and
clearly defined, in order to achieve discretion;
distortion may be transported into the research via bias in the research design;
iv) validity and accuracy of data and conclusions must be ensured at all times, and be
replicable.
Thus the qualitative nature of descriptive surveys would suggest that they are of little
value when one of the primary objectives is to ensure reliability and replicability.
Validity none the less is an important issue, strongly emphasised by qualitative,
empirically based studies.
The approach towards the technique which is seen by the quantitative researcher as
being the optimum, will, hopefully, ensure reliability and replicability. The issue of
replicability has been well argued by Borg and Gall (10) and Bauernfeind (11) who
note the essential role it fulfils in any programme of inquiry. It may be argued that an
130
essential element within the research is the capability of the work to stand up to later
scrutiny in the form of replication by others, working in other locations or situations.
The subject does not lend itself to laboratory experiment and thus by its nature
reinforces the choice of comprehensive field-work as being considered the most
suitable approach. The Analytical Survey veers away from trying to describe what the
data is trying to say, towards collation of primarily numerical data and the application
of statistical tools in order that inferences may be drawn from the meanings which lie
within the data. The use of inferential statistics will aid in the resolution of problems
relating to estimation and hypotheses with a statistical base.
Thus the Analytical Field Survey is perceived as being the more appropriate method
to be employed in this research, and the method capable of providing the greatest
quantity of appropriate data.
7.3.3 Data Sources
There are three main sources of primary data for a study of the referral sources
utilised and acted upon by management of construction industry organisations:
writings on recruitment sources, and their implementation in the wider business
environment, including material relating to the wider, general, practices of human
resource management,
interviews with those involved in the day to day implementation of theory and
practice,
case histories of organisations and situations, or instances, which have been well
documented.
131
The possibility exists for the comparison of primary data obtained from the above
sources with secondary data from ongoing recruitment activities and developments in
the field. In the first instance data from a suitable source may be used as the ' Guinea-
pig' , this data being gathered by means of the execution of a Pilot Study.
7.4 THE PILOT STUDY
There are no results presented for the Pilot Study, only coverage of the processes
executed and feedback data on the exceution of the Pilot Study generally. This
feedback data being used as a tuning instrument for re-focusing the overall approach
to the fieldwork.
The Pilot Study serves several ends in itself in that it:
identifies respondents; and,
clarifies characteristics sought; and,
enables refinements of applicable instruments; and,
highlights the feasibility of the research; and,
clarifies operating procedures; and,
focuses and enhances data analysis procedures.
The opportunity is also afforded the researcher of immersion within the respondent's
social environment and thus be able to gain valuable insight and comprehension of the
complexities and dynamics of the organisation' s environment. The researcher is also
able to commence trial analyses of the collected data and feed the results into the
general context of the research body. Hypotheses may thus be reviewed, if only
superficially, in order to establish their cohesiveness or need for adjustment or
reformulation. Since this research is founded on several hypotheses, the Pilot Study
provides a golden opportunity for review and re-appraisal.
The anticipated availability of suitable organisational records and ancillary data
suggests that ample opportunity will be afforded to capture sufficient relevant
information. In reality the organisations approached proved to be somewhat reluctant
132
to participate in research of any kind, let alone research which delved into the
organisation' s personnel records. Even though the utmost confidentiality was assured
at all times, there was still substantial resistance to any incursion into organisational
records. A barrier to this research and all such research generally.
In order to secure sufficient quantities and quality of data, fourteen (14) organisations
were approached and asked to participate in the research. These organisations being
as typical a cross section of the industry as possible i.e. small, medium, and large
organisations, as well as a variety of professions, work areas and geographical
locations.
With an industry as diverse as construction then care must be taken to secure as
representative a sample from the wider population as constraints will permit. The
overriding limit on the actual sample is of course the commitment of the organisations
themselves; they must be willing participants in the research. The organisations
selected were split into three broad categories:
i) those which provided some form of technical service to the industry e.g.
Surveyors, Architects; and,
those which carried out activities directly on site; and,
iii) those which provided raw materials or components which would be incorporated
within the industry.
Considered alongside each of these three broad bands was the geographical location of
the organisation, in order to reduce the bias towards one location or other.
Table 7.1 and Figure 7.2 show the organisation contact matrix used in striving to
ensure that the organisations selected would provide the required industry width and
depth. Note that there is no significance to the organisation numbers, at this stage
they act simply as a reference point.
133
Organisation' s Positionon or within planes Reference Planes
West
Materials/Components
Organisation Work AreaNumber
Location Size
1 3 Central Medium2 1,2 Central Large3 2 East Small4 3 Central Small/Medium5 1 West Medium6 1,2 West Large7 1 East Medium8 1 West Small9 2 East Small/Medium10 2 East Small11 2,3 East Large12 2,3 West Large13 2,3 West Large14 2 Central Medium
Table 7.1 Organisation Contact
Work Areas: 1= Technical Services: 2= On Site; 3= Materials/ComponentsSize of organisation is based on number of employees:Small <200, Medium > 200< 500, Large >500
Location
_---,NN
,
--------- N" 1— 2 ,
s--, , 14
.N
,\,, ---, ,'''.4 _,,, \
, 11_ _----- '`—,,------
, , _ m
, ....-- —
10
\-11,,
,, 9 ____---,\ 7
_-------,
, __--
East \---- On siteTechnical
Service
OrganisationSize
_L
WorkArea
Figure 7.2 Organisation Selection Matrix
Each organisation' s position is plotted relative to the three axes i.e. Location, Size,and Work Area
134
Table 7.1 and especially Figure 7.2, shows that there is a wide spread of organisations
within the research which will hopefully lead to an ample variety of data sources and
available data.
The organisations were contacted in two batches; the first batch being an approach to
6 organisations seeking their participation, followed by a second tranche of
approaches to a further eight organisations. A batched approach being executed in
order to provide an opportunity for the first batch to respond, so that the response
level from these might be analysed in terms of positives and negatives and also in
terms of organisation size, type, location and work area. The second batch of
approaches being aimed at making up whatever shortfall in organisation types, etc.,
may have been exhibited in the first batch. The two batches were considered
appropriate bearing in mind the likely time lag between making the initial approach
and actually receiving some form of response; time of course having a direct influence
on the researcher.
Of the fourteen organisations contacted only six (6) responded favourably. One of
these, although showing initial enthusiasm, subsequently placed so many restrictions
on the access to the personnel records that the resulting data made available would
have been meaningless. The other eight (8) organisations offered many reasons
(excuses) for refusal to participate in the research and samples of these refusals are
shown in Appendix 1. The five (5) organisations who actively participated in the
research have been outlined in the introductory chapter and are discussed in detail in a
later chapter.
7.4.1 Feedback from The Pilot Study
Flaying executed the Pilot Study it enabled certain conclusions regarding the
methodology and hypotheses to be arrived at.
1 35
The Pilot Study was conducted on the premises of the Organisation henceforth to be
known as Nol . The data retrieved from this organisation' s records and subsequent
findings will not be discussed in this subsection, rather the input to the overall
research process will be the focus of attention. The actual data will be considered in
some depth in a later subsection of this chapter.
7.4.2 Procedure
The original methodology envisaged a questionnaire being forwarded to the
organisation for their completion and subsequent return to the researcher. The
organisation was asked to complete the questionnaire as fully and as quickly as
possible.
Several important issues were highlighted by the execution of this Pilot, namely:
i) the reliability and validity of the data; and,
ii) the time involved; and,
iii) the reluctance to release certain "delicate" pieces of information; and,
iv) the poor condition of the organisation' s records; and,
v) the correctness of considering the recruitment sources chosen for inclusion.
Items one and five above are perhaps the most important in that the reliability and
validity of the collected data is the fundamental cornerstone of the whole research. If
the data is invalid or unreliable then any subsequent analysis or derivation of
conclusions must be faulted. The sources of recruitment (discussed in Chapter 6.4)
were found to be appropriate since they were actively being used by all the
organisations.
Item two above raised an important issue which affects all researchers, that of the
time taken to collect the data. The organisation saw the allocation of valuable
resources, to a task which might only have tenuous benefits for them, as being of very
136
low priority. Therefore the time taken to collect the necessary data took slightly
longer than might have been expected from an organisation which was prepared to
commit sufficient resources to the task.
Item three proved the greatest concern in terms of resolution. The organisation
simply would not release data concerning items which might be seen to be of
commercial worth to rivals, even though the utmost confidentiality was assured at all
times.
Item four manifested itself through several features:
a) the organisation's inability to extract the required data due to in-house records not
being immediately available; and,
b) files being located in other than the 'normal' places; and,
c) files being poorly maintained e.g. irregular updates; and,
d) the general lack of attention to details which might prove useful or necessary at
some future point in time.
From the outset of the Pilot Study it was obvious that the organisation had their own
"peculiar' in-house style and format for the human resource records, the maintenance
of which was delegated to lower levels within the administrative hierarchy. Data
extraction therefore proved to be time consuming and tedious.
Whilst much is made of the importance and applicability of Information Technology
within organisations, the pilot organisation had made no efforts what so ever to apply
IT to maintenance of human resource records, even though human resource records,
by their very nature, lend themselves to applications founded on databases. This
shortcoming was to be found in all the organisations which participated within the
research despite the perceived benefits of the use of IT.
137
7.4.3 Use of Feedback
The execution of the Pilot Study produced meaningful learning experiences and also
provided a useful review of the use and applicability of the research instrument i.e.
the questionnaire. The feedback was taken onboard and incorporated within the
future main research methodology. An unambiguous emphasis was placed on the fact
that the researcher would carry out a detailed search of all available human resource
records thus relieving the organisation of any need to provide resources other than the
physical documentation and a suitable desktop. The intrusion into the human resource
records was clearly stated to be under the greatest possible levels of confidentiality.
This assurance of minimal resource requirements undoubtedly assisted in convincing
the organisations to participate in the research.
Collection of the data by the researcher also resolved some of the other issues raised.
The data collected would be reliable and accurate in terms of the research, the time
involved would be reduced to the minimum possible due to personal commitment
towards the research, and the idiosyncrasies of each organisation's in-house styles
would be negated by the personal collection of the data rather than asking the
organisation to complete a questionnaire which they did not feel completely happy
with.
7.5 ANALYSIS OF THE PILOT STUDY AND OTHER DATA
Having executed the Pilot Study, the resulting data requires to be processed in some
meaningful fashion, this sub-section outlines the feedback on the approaches available
in order to analyse the data. The sub-section does not present any detailed analysis of
data, only consideration of the approaches to analysis.
The analysis of data serves several ends in that: it communicates the value of the
findings, whether they be in social, scientific or academic terms; it strives to convince
the reader that this knowledge value enhances the perception of contribution to the
1 38
research in question; and that the research itself is seen as being of a standard worthy
of academic acceptance.
Analysis may be taken as the process of ordering and structuring the data in such a
manner as will allow the production of knowledge, and as such, involves both
quantitative and qualitative methodologies. Much emphasis is placed on the
quantitative analysis of data in particular, through the application of statistical
techniques, which it may be argued stems from the mathematicians seeking to provide
solutions to scientific problems primarily directed towards philosophers.
Analysis must be seen to have a purpose, whether this he 'description', 'construction
of some scale', 'generation of relationships', 'explanation', or 'prediction'. The
research undertaken for this study will seek to address several of these underlying
purposes. On the basis that the analysis is deemed appropriate and accurate, then the
researcher is free to concentrate on an important aspect of any research i.e. the
consideration of its depth. With application of robust statistical techniques then the
probability of rejection due to lack of depth should be minimised.
Within this research the data is subjected to statistical resolution by means of One-
Way and Two-Way ANOVAs. The ANOVA (Analysis of Variance) seeks to find
which of any factors present, or combinations of factors, has an appreciable effect on
final results, and to quantify each factor's influence on the overall variability of the
result under consideration (12,13).
Other statistical techniques e.g. Contingency Tables, are available which will suggest
relationship, trends or links between the various sources of recruitment and the
employee turnover, but few will provide the robustness and accuracy of the ANOVA.
In calculating the ANOVAs, use was made of SPSS-PC (The Statistical Package for
Social Sciences-Personal Computer), running on an IBM compatible 386 (eventually a
139
486) processor. The output from the calculations are shown whereas the actual
calculations are not, but these may be considered by referring to works such as:
Freund et al, Elementary Business Statistics, 5th Ed., Prentice-Hall International,
London, 1988, pp408-430. or Daniel W.C. and Tewel J.C., Business Statistics, 4th
Ed., Houghton Mifflin Company, London, 1986, pp300-344.
These works clearly illustrate the processes involved in analysing the collected data
and interpreting the results from the calculations.
7.5.1 Statistical Analysis of Data
Using the SPSS poses several problems in itself:
i) the user must be fully acquainted with the software package; and,
ii) the hardware used will determine the time consumed on each run of the package;
and,
iii) the data being fed into the package must be in an appropriate format; and,
iv) the user must be able to make sense of the output.
Item i) is overcome by repeated use of the package itself, the on-line help facility
within the package providing appropriate prompts and guidance where necessary.
Area ii) is very much dependent on the physical quantity of data present. As the data
collected was fed in, so it became obvious that the more there was to process, so the
slower the machine became. With an increase in the computer's processor to that of a
486, so the processing times reduces dramatically.
SPSS will not take any/all data as collected by the researcher. there must be some
form of filtering/sorting in order that the vital components are input for processing.
With patience and effort the initial data was sifted into the appropriate format. This
sifting being achieved by means of a spreadsheet (EXCEL4) and
database/wordprocessor (WORD for WINDOWS). These pieces of software being
more than capable of taking in large quantities of data, sorting them into the
140
appropriate format and providing the required output in a variety of modes.
Therefore item iii) is resolved with the application of diligence and effort.
In seeking to resolve item iv,) it is encumbent upon the researcher to study sufficient
literature and examples of the statistical technique as will allow the researcher to
become familiar with, and able to apply, the resultant output from the calculations.
The Pilot Study not only provided input to the data extraction and collection processes
and other cogent areas, but also aided in focusing the research itself on the hypotheses
under consideration. The initial analysis of collected field data also provided an early
insight into the support, or otherwise, which would be given to the underlying
hypotheses.
7.6 UNDERLYING RATIONALE
Proceeding on the basis that the reader having digested the foregoing chapters now
comprehends the topic under investigation, then logic points to the consideration of
the reason/s for bothering with the research in the first place.
The review of current literature, coupled with collection of field data may go some
ways to contributing, however insignificantly, to the database of existing knowledge.
Locke (14) et al, in seeking to explain why a study is worthwhile suggest that pointing
to "potential utility of results in either or both of two domains" may be sufficient
justification. These domains they see as being:
the contribution to the evolving structure of knowledge; and,
the applicability of the study in practical situations.
Both being areas which in themselves suggest great utility, and if conjoined, then
offering great scope for utilisation.
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7.6.1 Nature of Contribution
The constraints previously described suggest that this topic will require to be a
summative description of the past and of the existing situation in several companies.
Pure theory and the testing of existing theory require the time that can only be made
available through a research degree, and must therefore be reviewed with this borne in
mind.
Consideration has been given to the various constraints and choices in this research
project. It is concluded that within these constraints, the research should proceed as
analytical field surveys of organisations and their practices along with review of
published theoretical data. Statistical analysis of the collated field data will enable
trends to be highlighted, links to be established and support, or otherwise, be given to
the basic underlying hypotheses. The Analytical Survey will allow as wide a range of
organisation types as possible to be surveyed and thus ensure that the research is broad
and deep, so aiding in replicability i.e. by its non- specificness, and reliability. The
organisations chosen for survey will be as representative of the wider industry
population as the research constraints will permit, bearing in mind the resistance that
may be exhibited towards the researcher seeking to scan through organisational
information. Indeed the resistance to intrusion may well prove to be the greater
barrier to be overcome.
As the research progresses, so the opportunity will be afforded to the researcher to
reconsider the methodology selected and the effectiveness and applicability of the
study.
The following chapter considers the data collected from the analytical surveys and to
some extent the analysis and interpretation of this data.
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8.1 THE MAIN STUDY
As discussed in Chapter 7, an integral part of good research is the Pilot Study and
feedback from, and the analysis of, this Pilot Study proved beneficial in providing a
launch pad into the main study, and also aided in the resulting composite analysis of
the main body of the research.
Reporting on the Main Study will take the format of an initial report outlining each of
the individual organisations; followed by analysis of each of the organisations, which
comprises descriptive statistical information and subsequent evaluation; followed by a
secondary report which pulls together the data from the individual analyses and
provides support for the inferential statistical analyses. This compilation report
section will lead towards the discussion of the findings and conclusions emanating
from the research.
8.1.1.The Contributing Organisations
Organisation Nol provide Project Management services to a variety of clients in
West-Central Scotland. Their office is located in the centre of Glasgow, and at the
time of the study the total staff complement was 51 persons, the majority of whom
were male.
Organisation No2 is perhaps the largest Direct Labour Organisations in Scotland,
serving the major proportion of its Regional Council's building needs. At the time of
the study there were some 2061 weekly paid operatives employed within the
organisation.
Organisation No3. is a producer of specialised domestic components which are
utilised in commercial, domestic and industrial buildings. Their principal production
facilities are located in Falkirk with subsidiary/ancillary plants in England. At the
time of the study the records for 101 employees were made available, the majority of
whom were male.
Organisation No4 are amongst the largest practices of Surveyors in Scotland. The
head office is located in Edinburgh, with regional branches throughout Scotland.
During the data collection there was a total staff complement of 178 individuals, with
the majority again being males.
144
Organisation No5 provides an ancillary education service to the construction industry,
with its principal location in the centre of Glasgow, with annexe locations on the
periphery of Glasgow. Due to this peripheral nature of the organisation in terms of
true construction activity it may be argued that this qualifies the organisation for
inclusion in the role of 'control'. At the time of the study, access was granted to only
56 weekly paid employees' records, the majority of whom were male. The foregoing
information is summated in Table 8.1.
1Organisation
2 3 4 5Location West West Central East West
Nature Limited Co. Local Private Co. Partnership LocalAuthority Authority
Work area ProjectManagement
Repair/New
Comp-onents
Surveying Ancillary
Size* Small-medium Large Medium Medium Medium
Table 8.1 Organisation Descriptions *overall employee strength
As discussed in Chapter 7, the ability to offer as broad and as representative a sample
as possible was given careful consideration. The data in Table 8.1 shows that the
range of organisations is wide and the nature of the work undertaken is suitably
diverse. Employee strengths of the organisations complements those found within the
industry itself. The location of the organisations is also sufficiently diverse as to
eliminate any particular geographical bias or trend within the research. The data
collected from these organisations represents a valid sample of the industry as a whole
and may be seen to be as free from bias and error as the constraints placed upon the
research will permit. No doubt much greater co-operation from other organisations
would have ensured even greater quantities of valuable data.
The Sources of Recruitment used by the five organisations are as shown in Table 8.2.
From this table it may be ascertained that the sources considered within the research
were valid, due to their use by the majority of the organisations.
145
Organisation Source of Recruitment (key to numbers shown below)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
No 1 x x x x - x - x - - - - - x
No 2 x x - x x x x x x - x x x
No3 - - - - - x - - - - x x x
No 4 x x x x - x x - x x x x x - x
No 5 x ------ - x x x x x x
x = used, - = not used.
Table 8.2 Composite Recruitment Sources
Numerical indicators have been given to each Source of Recruitment and henceforthin the narrative these source numbers will be referred to rather than their full textualdescription.
Key to source numbers.1 = Local press advertisement, 2 = National press advertisement, 3 = Trade or business journaladvertisement, 4 = Recruitment agency, 5 = Subsidiary recruitment agency, 6 = Referred bycurrent employee, 7 = Re-employment of an individual, 8 = Referred from school/careers dept.,9 = College/University 'milk-round', 10 = Casual call-in to office/return of application blank,11 = Training Agency, 12 = Head hunted, 13 --= Internal sources, 14= Job centre/D of Emplt.,
15 = Other/unknown e.g. phone call, letter.
Table 8.2 shows that the Sources of Recruitment were well used by each of the
organisations, with many of the organisations using a variety of sources on a repeat
basis. The only source common to all organisations was Source No15
(other/unknown), and the reasons for the inclusion of this source and its use by the
organisations are considered within the following narrative.
Each of the organisations are now considered on an individual basis, in detail, and
descriptive statistical support used to complement the narrative
146
8.2 ORGANISATION No 1
Organisation Nol is actively engaged in providing Project Management services to a
wide range of clients in West-Central Scotland. Their office is located in Glasgow,
and at the time of the study the total staff complement was 51 persons, the majority
being male.
The organisation utilised seven (7) discrete Sources of Recruitment when recruiting
staff, each source providing a varying percentage of the total staffing. The sources
actually utilised are as shown in Table 8.3.
Organisation Source of Recruitment (key to numbers shown below)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
No 1
X X X X _ X - - X _ _ _ - - x
x = used, - = not used.
Table 8.3 Sources of Recruitment Utilised
Key to source numbers.1 = Local press advertisement, 2 = National press advertisement, 3 = Trade or business journaladvertisement, 4 = Recruitment agency, 6 = Referred by current employee, 9 = College/University'milk-round', 10 = Casual call-in to office/return of application blank, 15 = Other/unknown e.g.phone call, letter.
From these seven sources the organisation recruited the various percentages of the
total staff cohort as shown in Figure 8.1.
147
13.48%26.92%
19.23%
4s2s M 3sL15 15s6s Li sssource
Figure 8.1
The actual numbers of individuals are as shown in Figure 8.2, and from these figures,
source number 2 (National press advertisement) is seen to be the predominant source
in terms of percentage staff recruited. Whilst the organisation does not operate on a
Nation wide basis they nonetheless appear to recruit a substantial proportion of staff
from such advertisements.
The underlying demographics of each of the source groups is an area which requires
much deeper and detailed research in order to fully comprehend the motivational
influences at work on each source group and also to ascertain if there are specific
factors at work within each of the source groups. Several of the theories
underpinning motivation have been considered in Chapter 3 and it may be considered
that the whole, or aspects of, one or all of the theories are operational within each of
the source groups.
148
Number of Recruits by Source
MM
OM
MOM
nnn
1nI
••••
10 2
4
6 8
10 12 14
Number recruited
Figure 8.2
Consideration of the demography of each source group highlights other interesting
aspects of their composition. Figure 8.3 illustrates the age ranges for each of the
Sources of Recruitment. From this figure it can be ascertained that the use of
Recruitment sources Nol., No2. and No3. (Local and National Press and Trade or
business Journal, respectively) has produced the largest groups of employees in the
lower age band. Conversely, sources No4., No6., No9., and No 15. have produced
the largest groups with the greatest ages. This would tend to support the contention
that the younger recruits are seekers of 'live' job vacancy information, whereas the
older recruits rely predominantly on 'dated or established' sources. The argument
may be made that the younger recruits are still ambitious, interested in a wide range
of issues surrounding their chosen occupation, keen to succeed and highly motivated,
therefore they give greater attention to these 'live job specific' sources of information.
The wider, more positive, social and professional images conveyed in published
media may also have some bearing on the respondents expected from an
advertisements placed within the publication's covers.
149
Is 2s 3s
4s
68 98 15s
Source
9-
8
7
6Ages
16 to 25
26 to 35
0 36 to 45
LI
Source and age at recruitment
Figure 8.3
Many journals in themselves may be perceived as dynamic, striving, challenging, and
stimulating, to which their readers feel some degree of empathy. The older recruits
on the other hand may simply be seeking an organisation which they perceive as being
'solid' due to the methods used in conveying vacancy information. These sources
employed by the older recruits may be perceived as well established and entrenched
formats, utilised by organisations which believe they have a long term future. This
long term future or job security may be one of the key elements which drives the
older applicant to respond to the vacancy.
The distribution of males and females for this organisation is shown in Figure 8.4,
which indicates some clear divides in the sources utilised by males and females. No
females were recruited via source No3, nor any males recruited via source No4.
These two sources may be described as sex exclusive i.e. only males coming from
source No3 and only females coming from source No4. The other Sources of
Recruitment utilised indicate a mixture of both male and female recruits. Figures 8.5
and 8.6 add further clarification to the distribution of sexes and ages within the
organisation. The organisation may be said to be 'youthfully male', since the
predominance within the workforce is towards males below the age of 36 years. The
150
171 Fameles
Moles
females display a greater bandwidth of ages, with none greater than 45 at age of
recruitment. The argument is put forward that this lack of women recruits over 45
years of age shows a missed opportunity for the organisation. Potential recruits who
are women greater than 45 years of age may well be seen as the more productive and
stable worker since many of the pressures associated with female early years i.e.
marriage, childbirth and raising the family, are behind them and thus release the
individual to concentrate fully on the chosen occupation.
Recruits sorted by Sex and Source
1.
2.
3.
4.
6a
9.
15.
Source
Figure 8.4
151
E Males
111 Females
to25
261o35
361045
461055
4."-Asi,44/Sr:
53.55%
_1 1 11 1 111 1111 1 1 11 11 1 1111111 111 1 1 1
36.54%
1.92% 7.69%
16 /0 25 g 26 to 55
36 to 45 0 46 to 55
152
Recruits by age and
Age at recruitment
Figure 8.5
Age at recruitment
Figure 8.6
20 -.-
10 -..-
0
-10 -.-
-20 vv-
Mean service of 5.83 Years
-30 -v-
30 —
i 171171171
1 1---1 1
<1 1 to 5 6 to 10 11 to 15 16 to 20
26 to 30
Years
Number above/belowMean service
-40 n•
Figure 8.10
Length of Service and Sex
30 —
2s —
20 n
15 v.-OR Males
0 Females
10 —
5 —
Figure 8.11
When the Sources of Recruitment are considered in relation to length of service then a
clear 'better performer' emerges, as shown in Figure 8.13. Source No3. gives a
significantly greater mean length of service and its variance from the organisation's
mean length of service is one of only two positive values. Prima Facie evidence that
the use of source No3. leads to an increased length of service from the recruit.
155
14.00
12.00Organisaion's mean service
5.83 yeas10.00
8.00Gw>-
6.00
4.00
2.00
0.00
Is 2s 3s 41
Source
-20..-
-30 n.•
10 —'"
1111 Females
0 MalesS
Number of employeesabove/below mom -10 -.•
service
Mean service of 5.83years
—
Figure 8.12
Source and Mean Service Roduced
Figure 8.13
Consideration of the variance from the organisation's mean service period (Figure
8.14) shows that source No3. is clearly substantially greater than all other sources.
Source No3 giving a mean service period of some 13.87 years, in contrast with the
organisation's mean service period of only 5.83 years.
In order to consider the significance of the initial findings and to delve further, Quit
Rates for each source were established. The Quit Rates for each of the Sources of
156
•
Source No. Quit Rate ( %) Overall
Quit Rate
35%
number of recruits = 40, quits = 14.
Recruitment utilised during the period 1985 - 1990 (inclusive) are shown in Table 8.4,
along with an overall quit rate for the period considered.
Source variance from mean service
IMO
••••••••••••••••• ••••••• •
••=1.
AIM
• w'88,8 88448). 4;44%. ss:40):.:::::•:•.:84:•••sax+
•• ••
-2 0 2 4 6 8 10
Years
Figure 8.14
The Quit Rate for source No3. is seen to be 50%, which is mitigated by the length of
service obtained from the employees who remain with the organisation. The Quit
Rates for all sources reduces to only 35% due to the influence of sources Nol. and
No15., source Nol. having a Quit Rate of 30% (for the period considered). The use
of source Nol. would tend to suggest that employees coming from this source are
more stable than employees derived from other sources, even though the actual length
of service obtained may be less than that for the 'best performer'.
for source
1 30
2 50
3 50
4 50
6 50
9 40
All sources
Table 8.4 Quit Rates for period 1985 - 1990
157
The set of data used in calculating the Quit Rates is applicable for one specific period
in the organisation's life, and it may well be that at over a wider timebase then the
picture developed would appear significantly different. Management may use the
Quit Rate to analyse departments or sections where the turnover of labour is either
higher than an acceptable norm, or conversely, lower than a desired level. Those
sources which produce significantly divergent Quit Rates are to be avoided, unless the
effects are actually desired by management.
The complete set of collected raw data was subjected to processing by means of both a
ONE-WAY and a TWO-WAY ANOVA. The ONE-WAY ANOVA seeking to
establish the significance of differences in the length of service given by each source
within the individual organisation. The TWO-WAY ANOVA being a robust
statistical test for the analysis of variance present in a set of data, in this instance the
complete set of data for all five organisations. The results from both the ANOVAs
are discussed later, with the output from the data processing being shown in
Appendices 3, 4, and 5.
158
8.3 ORGANISATION No2
This organisation is one of the largest Direct Labour Organisations in Scotland,
serving the major proportion of its Regional Council's building needs. At the time of
the study there were some 2061 weekly paid operatives employed within the
organisation. No data was available regarding salaried staff, this being held by a
separate division of the Regional Council.
As can be seen from Table 8.5, the organisation utilised eleven (11) discrete Sources
of Recruitment, these being sources No: 1, 2, 6, 7, 8,9,10,11,13,14, and 15.
Organisation Source of Recruitment (key to numbers shown below)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
No 2 x x x x x x x x x x x
x = used, - = not used.
Table 8.5 Sources of Recruitment Utilised
Key to source numbers.1 = Local press advertisement, 2 = National press advertisement,6 = Referred by current employee,7 =-- Re-employment of an individual, 8 = Referred from school/careers dept., 9 =College/University 'milk-round', 10 = Casual call-in to office/return of application blank, 11 =Training Agency, 13 = Internal sources, 14= Job centre/D of Emplt., 15 = Other/unknown e.g.phone call, letter.
These eleven sources produced the various percentages of total operatives as shown
in Figure 8.15. The actual numbers of individuals are as shown in Figure 8.16, and
from these figures it can be ascertained that the bulk of total operative recruitment
was via four sources i.e. sources No: 8, 10, 13, and 15.
159
2.47% 5.77%
22.85%
1.60%
1s 11 2s 6s
7s
8s Ti 9s 111 10s
11s::97 13s
14s 15s
Figure 8.15
12.91%
4.56%
024%
% Recruited by Source
Number of Recruits by Source
600 —
500
400 —•
200 —
100 —
011111111 11 11 11
is 2s 65 75 85 95 105 115 135 145 15
Source
Figure 8.16
160
36 to 45
26 to 35
ri 16 to 25
Age
V A
N
0
50
100
150 200 250 300 350
Of these four sources, source No15. secured the greater number of operatives. In
order to consider the sources further it is useful to assess the age bands recruited by
each source, and these age bands are shown in Figure 8.17.
Source and Age at recruitment
15s Ix NW\ N
14sV
13s
us
a)
A
lOs ks.
9s
8
56 to 65
E 46 to 55
Number
Figure 8.17
Clearly source No15. attracts the majority of its recruits who are in the age range 16
to 25 years. This may be due in some part to the younger age group looking to secure
employment with an organisation where they will enjoy some form of long-term job
security, especially in their formative training years. Maslow's theory on motivation
is particularly applicable when one considers the 'security' need. The other three
principal sources also have a high proportion of recruits who fall within the age range
16 to 25 years. Source No9. would clearly be biased towards the younger age bands
since it is dealing with individuals who recently have, or are about to, leave school.
Source No10. (the casual call in/ application blank) having a high proportion of
younger recruits suggests that the younger individuals are quite prepared to take the
161
1.36%
14.65%
16 to 25
26 to 35
36 to 45 LII 46 to 55 56 to 65
The total employee cohort showed a marked bias towards the younger age groups,
with some 75.4% being 35 years of age or younger. Clearly a very young workforce.
The distribution of ages at recruitment is shown in Figure 8.20.
Age at recruitment
56.23%
Figure 8.20
In analysing the data on recruitment within this organisation it should be noted that
prior to 1974 the organisation existed in a different format. Prior to 1974 the various
functions were executed by Burgh and Town Councils, with their
amalgamation/rationalisation at Local Government Reorganisation. The Burgh/Town
Councils providing much of the feed stock for the new Regional and District
Councils. The recruits by source and each year are shown in Figure 8.21 and Figure
8.22 respectively. The recruitment just prior to reorganisation is shown as a grouped
value, and subsequent recruitment is shown by the individual sources and years. It
can be seen from Figure 8.21 that source No15. has been utilised on a consistent basis
throughout the organisations life span. The greatest number of recruits from this
source occurring in 1881, when the organisation recruited the greatest total number of
employees in any one year.
163
0
Source
50
111 ls
Figure 8.21
100
150
2s 16s M 7s
8s
200
9s 1 s :',11111 15s
300250
B 13s III 14s
--- grouped value
Recruits by sources each year
90 Mt_ ,111'1„„Iljf
89_ 1111„
88 111111V
87 - re>
86 11111M85 Bil
84 iE til
83 ILI___Ilk\\\\\\\\\\82I.81 80 E:7ri79_ 78 111
76757473
77 111-11&
+WSWI 61
Numbers recruited each year
73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91
Year
Figure 8.22
164
• 4.,Nia""40::
From the data it is established that the mean service given by the employees was 7.85
years, with the majority of employees falling into the service bands of: < than lyear,
and 1 to 5 years. Figure 8.23 indicates the service bands and the number of
employees within each service band, whilst Figure 8.24 indicates the number of
employees whose service is above or below the mean service period.
Length of Service
600 —
<1
1 to 5
6 to 10
11 to 15
16 to 20 21 to25
26 to 30
31+
Veers
Figure 8.23
1000
500
0
Number above/below
Mean Service
-500
Mean service of 7.85 years
-1000
-1500
Figure 8.24
165
Fsmel es
0 Miles
Number of employeesabove/below mean
service
Men savice of 7.85-SOO yeas
-1000
-1200
Clearly shown in Figure 8.23 is the large number of employees who give a service of
less than 1 year. In organisational terms this must prove extremely expensive. The
expense arising from several of the heads discussed in Chapter 5. Accession,
induction, disruption, training, exit, and subsequent replacement hiring, are all cost
areas which must be considered by management of the organisation. Whilst the mean
service for the organisation is 7.85 years, it can be ascertained from Figures 8.25 and
8.26 that the majority of both male and female cohorts give a service which falls well
below the mean level.
Length of Service and Sex
<1
1 to s 611;10 111015 164)20 21 to 25 26 to 30
31+
Years
Figure 8.25
Figure 8.26
166
When service is related to the Recruitment source utilised it becomes evident that
there is again a 'best performer'. Figure 8.27 shows the source of Recruitment and
the mean length of service produced by each source. Source No 13. clearly provides a
substantially longer mean period of service than any of the other sources. The
recruitment of candidates via internal sources may well mean that the applicant has
received a realistic job preview, since in effect all that is happening is the switch from
one operating section within the wider organisation to another operating section. This
realistic job preview going some way towards ensuring that the applicant will
assimilate into the new operating section with the minimum of disruption and stress,
and having worked within another operating section of the wider organisation,
perhaps simply see the relocation as part of an ongoing continuous service with the
wider organisation. Source No 13. is the only Recruitment source which provides a
mean length of service greater than the organisation' s collective mean value, as can be
seen in Figure 8.28. The other Sources of Recruitment falling well below the
organisations mean value.
Source and Mean Service produced
Is 2s 6s
7s
es 9s
108
lls 13s 14s
15s
Figure 8.27 Source
167
MAN; 'YVAN',V,rse
-Wpw.00102:90&4004?..:::W404:400tfneS;
en001: 05aft.,M.f 1.rx'Agri
Source variance from mean service
-8 -6 -4 -2 0
2
4
6 8 10
YearsFigure 8.28
The Quit Rates for each of the sources begin to clarify the stability of the various
employee groups and these Quit Rates for the period 1984 to 1991 (inclusive) are
shown in Table 8.6
Source No. Quit Rate ( %) Overallfor source Quit Rate
1 16
2 24
6 34
7 74
8 12
9 100
10 41
11 3
13 8
14 26
15 28
All sources 27.2%Table 8.6 Quit Rates for Organisation No2 number of recruits = 1065, quits = 280
168
Sources No7 and 9. stand out immediately, with Quit Rates of 74% and 100%
respectively. The remaining sources having rates which are fairly low, thus reducing
the overall organisational quit rate to only 27%. Mention must be made of source
No11. which stands out in terms of the stability of the recruits coming from any
particular source, with a Quit Rate of only 3%. The use of source Nol 1. as opposed
to the 'best performer' i.e. in terms of the mean service derived (source No13.),
would suggest that the workforce recruited may well be more stable. However care
must be taken in the use of this stability value since the number of recruits for each
source varies for each year considered in the analysed time period and also due to the
fact that the length of service will fluctuate according to the start date of the recruit.
The collected raw data for the whole of organisation two was entered into the
ANOVAs in order that further analysis could be undertaken, and the results from
these ANOVAs are discussed later.
169
8.4 ORGANISATION No3
Organisation No3. is a producer of specialised components which are utilised in all
buildings. Their principal production facilities are located in Falkirk with ancillary
plants in England. Operations commenced in mid 1985 following the management
buy-out, from the Receiver, of a division of a one time world renowned
manufacturer. At the time of the study, data was made available for only one section
of the organisation and within this data there were no salaried staff i.e. all the
employees being paid weekly. The study considered the records for 101 employees,
the majority of whom were male.
Organisation Source of Recruitment (key to numbers shown below)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
No 3 - - - - - x - - - - - - x x x
x = used, - = not used.
Table 8.7 Sources of Recruitment Utilised
Key to source numbers.6 = Referred by current employee, 13 = Internal sources , 14= Job centre/D of Emplt., 15 =Other/unknown e.g. phone call, letter.
The organisation utilised four (4) discrete Sources of Recruitment when recruiting
their employees. These sources are as shown in Table 8.7, and are sources No: 6,
13, 14, and 15. From these four sources the organisation recruited the various
percentages of the total employee mass as shown in Figure 8.29. The actual numeric
values are given in Figure 8.30, and from these figures source No15. is evidently the
source whereby the greater percentage of employees are recruited.
170
14s
15s
% Recruited by Source
0.9"
48.51%
45 •"•
F509+561,653,5552,55=M:521
3
Figure 8.29
Number of Recruits by Source
6s
13s
14s 15s
Source
Figure 8.30
The age ranges for the employees, shown in Figure 8.31, indicates that of the Sources
of Recruitment utilised the majority of sources tended to secure employees who were
in the age range 16 to 25 years. Only source No14. produced a major proportion of
171
M 16 to 25
El 26 to 35
11111 36 to 45
II 46 to 55
DE 56 to 65
Age
its recruits in the age range 26 to 35 years. This age range would be consistent with
those made unemployed or seeking new horizons. The Job Centre perhaps being
perceived as a primary source of their vacancy information, indeed if the applicant is
unemployed it may well be that the Job Centre has directed them towards the vacancy.
Source No15. shows a pronounced swing towards the younger applicant and this may
be linked to the type of work carried out within the organisation i.e. predominantly
manual, non or semi-skilled tasks. Therefore individuals with little or no
qualifications, apart from youthfulness and physical fitness, would find any vacancy
appealing (always provided sufficient motivational stimuli are present in terms of
financial or other rewards), and would actively seek out such vacancies on their own
volition.
Source and Age at recruitment
6.
13e
14s
158
Source
Figure 8.31
Figure 8.32 indicates that the organisation's female cohort are drawn from all sources
except No6., with the distribution of female recruitment being fairly evenly spread
over the remaining Sources of Recruitment utilised.
172
54.26%
37.23%
0 16to 25 26 to 35 0 36 to 45 0 56 to 65
Figure 8.34
Recruits by sources each year
40 —
85
86
87
89
90
YearFigure 8.35
Consideration of the total employee cohort shows that the organisation secured a mean
length of service of 1.61 years. Figures 8.37 and 8.38 illustrate the length of service
(and split amongst sexes) and the numbers of employees whose service exceeds or
falls below the mean service level. Both males and females tending to produce
service periods in excess of one year, although there are substantial numbers in both
sex groups who produce periods of service which are less than one year.
174
I iI0
so —
50 —
40 —
30 —
20 —
10 —
0
81, M < 1
E
•
0 1to 5>-
1 i.NONEMM58
1Melee Females
Numbers recruited each year
15 •-••
10 • • •
5 -n
89 90ss as Si ss
Year
Figure 8.36Length of Service and Sex
Sex
Figure 8.37
Analysis of the Recruitment source with relation to the length of service produced
shows that the 'best performer' was sources No6., with source No13. also producing
a mean length of service which exceeded the organisation's mean service period. This
analysis is shown in Figures 8.39, with Figure 8.40 indicating the variance of each
source from the organisation's mean service period.
175
Mean service of 1.61
Years-40
Number above/belowMean service
0
Organisation's meanservice 1.61 years
3
MOM2.5
2
n••
MINN
13. 15s14;
1
0.5
•
60 —
Figure 8.38
Source and Mean service produced
Source
Figure 8.39
The other two Sources of Recruitment gave mean lengths of service which fell below
the organisational mean value. Clearly then source No6. appears to be the source
which should be utilised by this organisation when seeking to secure as long an
employee tenure as possible. Several reasons may underpin the success of this source
in securing longer serving employees; it may be that realistic job previews are being
given by the existing employee to the potential recruit, it may also hold that the
existing employee is able to spark motivational thresholds the applicant holds as being
176
triggers e.g. by informing of pay levels which are above the norm, or describing how
bonus may be readily earned or the potential for earning bonus, or working conditions
which are exemplary, it may be that the existing employee is able to provide news of
vacancies faster than other sources and this secures the applicants commitment, or it
may simply be that the new recruit feels some form of loyalty or owes a debt of
gratitude to the existing employee.
Source variance from mean service
MID
1NED
144
MEM
13s
MED
6s
4.4 4.2 • 5.2 0.4 5.8
Years
0.8 1.2 1.4
Figure 8.40
Quit Rates for each of the sources were established and are as shown in Table 8.8.
The period covered in the Quit Rate analysis covers the life-span of the organisation
from buy-out in 1985, until 1990.
Source No. Quit Rate Overallfor source Quit Rate
6 100
13 52
14 65
15 55
All sources 57%
Table 8.8 Quit Rates for Organisation No3. number of recruits = 101, quits = 58
177
Whilst source No6. produced the longest mean service it also produced the greatest
turnover rate of 100%. Source No13. produced the lowest turnover rate and was
second to source No6. in terms of mean length of service produced. The overall
organisational turnover rate of 57% must give management grave cause for concern,
unless of course the high turnover rate reflects many of the positive effects of turnover
(as discussed in Chapter 5), and these positive effects are actively desired by
management. The introduction of 'fresh faces' on a regular basis may well serve the
organisation positively in that the new recruits come in with enthusiasm and a
willingness to work at reasonable output levels. The production levels achieved may
diminish as the routineness and monotony of the work begins to wear them down. A
second positive view of the high turnover is the constant stream of new recruits who
may be moulded into the organisation's methods and work practices, thus enabling the
constructive, or otherwise, removal of those who are perceived as no longer worth
retaining.
Again it may be that the period considered is insufficient to allow the fuller picture to
develop within the organisation and only further data collection and analysis would
allow this current view of the Quit Rates to metamorphose, giving the wider view of
the organisation's true or underlying Quit Rates..
In order to establish the significance of the mean service levels produced the complete
set of organisation No3' s data was entered into the ANOVAS for further processing,
and the results from the ANOVAS are discussed later.
178
8.5 ORGANISATION No4
This organisation are, at the time of the study, the largest practice of Surveyors in
Scotland. The head office is located in Edinburgh, with regional branch offices
throughout Scotland. At the time of the data collection there was a total staff
complement of 178 individuals, with the majority being males. The personnel records
of this organisation were perhaps the poorest in terms of regular updating and
completeness. Accordingly data was not available for all years of the organisation's
existence, but those years for which data was available have been included in the
research.
Organisation Source of Recruitment (key to numbers shown below)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
No 4 X X X X X X X X X X X
x = used, - = not used.
Table 8.9 Sources of Recruitment Utilised
Key to source numbers.1 = Local press advertisement, 2 = National press advertisement, 3 = Trade or business journaladvertisement, 4 = Recruitment agency, 6 = Referred by current employee, 7 = Re-employment ofan individual, 9 = College/University 'milk-round', 10= Casual call-in to office/return of applicationblank, 11 = Training Agency, 12 = Head hunted, 13 = Internal sources, 15 = Other/unknowne.g. phone call, letter.
The organisation utilised twelve (12) Sources of Recruitment when seeking to recruit
staff, these sources are as shown in Table 8.9, and are sources No.: 1, 2, 3, 4, 6, 7,
9, 10, 11, 12, 13, and 15. Within these twelve sources the organisation recruited the
various percentages of the total staff cohort as shown in Figure 8.41. The numerical
values of each of these component percentages are as shown in Figure 8.42, and from
these values it can be observed that the organisation secured the majority of its
staff by means of source No 1. ( Local Press advertisements).
179
17.32%
% Recruited by Source
Source 23.48%
El is U 25-12s 13s E 15.
Figure 8.41
13s
45 E
2s
is
Number of Recruits by Source
0 10 20 30 40
SO
60
70
80
Number recruited
Figure 8.42
Whilst the organisation operates on a national basis the recruitment of staff is founded
on source No 1., with the use of the other eleven sources to supplement the staff
recruited by source Nol. The number of recruits secured by the other eleven sources
180
44
0 65+
M 56 to 65
46 to 55
36 to 45
0 26 to 35
g 16 to 25
cr.
38
suggests that there is no clear cut internal policy regarding sourcing recruits via these
other Sources of Recruitment other than the use of each source as and when a vacancy
occurs.
The age ranges of the organisation recruits are from the 16 to 25 bracket, all the way
up to those in the 65+ age range. The nature of the organisation itself and the work
it undertakes modifying the acceptable recruitment age ranges within its staff structure
i.e. senior citizens recruited and employed as Consultants. Figure 8.43 illustrates the
age ranges of the various recruits and the appropriate source of Recruitment utilised in
their recruitment. The organisation shows a bias towards the lower age ranges at
recruitment but still none the less accepts those who are maturing.
Source and Age at recruitment
-UN
128
A
I
1s1
0 10 20 30 40 50 60 70
Number
Figure 8.43
The distribution of males and females within the organisation are shown in Figure
8.44, along with the various Sources of Recruitment utilised to secure each male or
female member of staff. As can be seen from Figure 8.44, the majority of the female
members of staff were recruited via source Nol. with small numbers being added to
their cohort from the other eleven sources.
181
0 Females
M Males
:4M3McgtOOMM4?;1s
0
10
20
15s
136
41.
38
28
6s
Recruits sorted by Sex and Source
OEM
Number of recruits
Figure 8.44
The majority of the male members of staff were drawn from sources Nol, 13, and
15., with sources No13. and No15. sharing equally in their contribution to the total
male staff cohort.
Figure 8.45 and 8.46 indicate the ages and sex of the recruits. These Figures confirm
the emphasis of youth within the organisation, tempered by a degree of maturity in
other staff members. Some 55.1% of all staff members being under the age of 36,
with an almost even split of this sub-group of staff members being male and female.
182
3
Recruits by Age and Sex
60 —
16 to 25
26to 35
36 to 45
46 to 55
65+
Age at recruitment
Figure 8.45
The nature of the tasks undertaken by the organisation may well influence the age
ranges deemed desirable. Execution of surveys, property valuations, field
inspections, land and property management, of any nature, demands that the
individual be flexible, physically active, and prepared to work in varied and wide
ranging environments. Also influencing the age range of recruits will be the image of
the organisation which must be perceived by clients as dynamic, challenging and yet
professional and stable. These ends are met by securing both the younger candidates
and also the mature applicants.
The organisation made available data for eleven years of recruitment and from
analysis of this annual data, the various numbers of recruits by each source may be
established, and this information is shown in Figure 8.47.
183
4.08% 8.16%
np.•
88MO.
87
HIM &I86
85NIA
84
4.\\..‘\\79
77
72
M 15s
13s
E 9s
L 7s
4s
3s
2s
Distribution of Ages at recruitment
16 to 25 26 to 35 36 to 45 46 to 55 0 65+
Figure 8.46
Recruits by Source each year
ORM
ea.
83 ow-82
80
5 10 15 20 25 30 35 40
Number
Figure 8.47
184
I llllllllll I
87 ss868583 8482807977
Year
Number recruited each year
40.00 -••
35.00 ..-
30.00 ....
25.00-
200020.00 ..r.
its.00 --
10.00 --
5.00 —
0.00
72
Figure 8.48
This analysis clearly suggests that in the last six years, of the available data, the use of
source Nol. has assumed predominance. The numbers of recruits secured by the
organisation, each year, has witnessed substantial growth during this six year period,
as shown in Figure 8.48. This growth may in some part be due to the cyclical nature
of the UK Construction Industry, and its associated service sectors (as discussed in
Chapter 2).
Analysis of the lengths of service provided by each recruit from the various Sources
of Recruitment indicates that the organisation secured a mean service of 3.14 years
from the staff. The various lengths of service are shown in Figure 8.49, along with
the distribution of the service periods for males and females. The data clearly
indicates that the females have a large proportion of their cohort giving service of less
than one year, whereas the majority of the males are seen to fall within the 1 to 5
years service bracket. Figure 8.50 indicates the numbers of staff whose service
exceeds or fall below the mean service period. No female member of staff exceeded
the mean service period of 3.14 years.
185
Males
0 Females
70 -••
60 is.lw
50 •.'
.g2
30 SEIM
20 —
10 •••
0 I-.
1
Figure 8.50
186
M Males
0 Females
20 -..
Number of employees e
sbove/below Meanservice
0 -
40 .....
Mean service of 3.14Years
Laigih of Service and Sex
80
<1 1 loS
6 10 10 11 lo 15
Years
Figure 8.49
The Sources of Recruitment are next considered in relation to the mean service
produced by each source, and this information is indicated in Figure 8.51. From this
figure it can be established that three sources provided service periods which exceeded
the organisational mean service period. These sources were Nos4 ,13, and 15.
12.
AMR.
9s
7s
6s
4s
3s
-2.00 -1.00
Source and Mean Service produced
9.00 ••••
8.00 n••
7.00 •n•
6.00 •n•
5.00 •n•
4.00 ••••
3.00 •n•
2.00
1.00
Organisation's mean service3.14 years
0.00 1 1 1 1la 26 34 7s lls 12s 13. 15s
Source
Figure 8.51
The internal recruits providing the greatest mean length of service, followed by the
use of a Recruitment Agency, and the Applicants Own Initiative. The variance from
the organisational mean service is shown in Figure 8.52 and serves to emphasise the
variation in the mean service levels produced.
Source variance from mean senrice
MID
1SsMOB
134
11s
10s
2s
1s
IMBSENCI
0.00 1.00 2.00 3.00 4.00 5.00 6.00
Years
Figure 8.52
187
Development of Quit Rates for each of the Sources of Recruitment allows further
analysis of the situation pertaining within this organisation, these Quit Rates are
shown in Table 8.10.
Source No Quit Rate ( %)for source
1 37
2 40
3 10
4 50
6 50
7 71
9 0
10 100
11 0
12 0
13 0
15 46All sources
OverallQuit Rate
34.8%
Table 8.10 Quit Rates for Organisation No4 number of recruits = 126, quits = 44.
The Quit rate for source No3. is 0%, compounding the view that this source of
Recruitment may be viewed as the 'best performer' both in terms of the mean length
of service produced and also in terms of stability of the cohort secured by this source.
The overall Quit Rate of 35% may be perceived as one which is realistic, and
acceptable, in light of the large number of female staff who stay with the organisation
for less than one year.
The composite data collected for the organisation was entered into the TWO-WAY
ANOVA and the resulting output from this testing is discussed later in this chapter.
188
8.6 ORGANISATION No5
This organisation provides a non or semi-skilled ancillary education service to the
construction industry, with its principal location in the centre of Glasgow, with
annexe locations on the periphery of Glasgow. Due to this peripheral nature of the
organisation in terms of true construction activity it may be argued that this qualifies
the organisation for the status of 'control'. Full data on all personnel was not
available at the time of the study, access being to the weekly paid employees' records
only.
At the time of the study there were 56 such individuals within the organisation,
having been recruited from the seven (7) Sources of Recruitment as shown in Table
8.11.
Organisation Source of Recruitment (key to numbers shown below)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
No 5 x - - - - - - - x x x x x x
x = used, - = not used.
Table 8.11 Sources of Recruitment Utilised
Key to source numbers.1 = Local press advertisement, 10= Casual call-in to office/return of application blank,11 = Training Agency, 12 = Head hunted, 13 =-- Internal sources, 14= Job centre/D of Emplt.,
15 = Other/unknown e.g. phone call, letter.
These Sources of Recruitment gave the various percentages of recruitment as shown in
Figure 8.53. The major proportion of the employees being secured by the use of
source No14., from which some 46.23% of all employees were recruited. This
analysis is supported by the numerical values shown in Figure 8.54.
189
10s
11s
13s
O 14s
, N 15s
46.43%
25.00%10.71%
,T, •••n
9cS lie
96 Recruited by Source
Figure 8.53
Number of Recruits by Source
MIMI
15s
MEM
. 14s
MI=
13s
MIO
10s
MIN
Is
o 5 10 15 20
Number recruited
Figure 8.54
O is
E
When the age ranges of the recruits are analysed it can be ascertained that the more
prevalent age bracket within this particular Recruitment source group is the 26 to 35
year olds, indeed some 57% of all Recruitment sources utilised have this age group as
the more prevalent range. The distribution of ages at recruitment are shown in Figure
8.55, which indicates that recruits from within all age ranges have been employed by
the organisation.
190
15s
14sPA
56 to 65
46 to 55CT,
,
El 26 to 35
11111
36 to 45
16 to 25
lOs
is
Source and age at recruitment
0
5
10
20
25
Number
Figure 8.55
This age range (26 to 35) would be consistent with individuals who had had previous
employment experience and now sought either new employment or, if unemployed,
employment. The Job Centre being perceived by the potential recruit as perhaps the
front line in terms of securing news on vacancies which would allow the full use of
any or all of their limited talents, and seen by the organisation as a ready source of
'able' individuals especially in light of the organisations limited work areas and
therefore need for employees who are relatively poorly qualified or unskilled. Of the
sources used, only one did not bring about the employment of any females, this being
source Nol. The numbers recruited from each source of Recruitment are bisected
into sexes in Figure 8.56.
Further analysis of the sexes into age bands shows that the major proportions of both
males and females fall within the two bands of ages 16 to 25, and 26 to 35 years old.
This data is shown in Figure 8.57, with the percentages distribution for each age band
shown in Figure 8.58.
191
El Males
Females
Recruits by age and sexFigure 8.56
12
—
s —
1:3 Females
1E1 Males6
4
2
0
3645 46-55 56-65 65+26-3516-25
Recruits sorted by Sex and Source
30
Is
1es
Us
136
14s
15s
Source
Age at recruitment
Figure 8.57
It is interesting to note that the organisation were actively prepared to employ
women in the age range 46 to 55 years old, with some 14.28% of employees falling
into this category.
192
17.86%
16-25 E 26-35
36-45 2 46-55 E 56-65 0 65+
1.79%
42.86%
Age at recruitment
Figure 8.58
The sources utilised in securing employees each year are shown in Figure 8.59, from
which it may be established that on an annual basis, source No14. has been regularly
utilised in sourcing the employees. The actual numbers recruited each year are shown
in Figure 8.60, with the peak years being 1988 and 1991, although it can be seen that
the numbers recruited has been growing steadily from 1988 onwards.. The remaining
years have shown almost a cyclical nature in that there are 2 - 3 years where numbers
recruited are low, followed by 1 -2 years where recruitment is high.
The various recruits secured each year give a variety of service periods as shown in
Figure 8.61, from which it may be established that a large number of the employees
have given not more than five years service. The organisation's mean service is 5.37
years, as shown in Figure 8.62.
193
10
8
6..
Ez
6
4
2
I
61 64 75 78 80 81 83 to 85
I I
87 88 89 90 91 92
III
ss
I II
15sRecruits by sources each year
12 —v4
14s
61 64 75 78 80 81 83 84 85 86 87 88 89 90
Year
Figure 8.59
Numbers recruited each year
92
12 1=•n
10
s
16
4
2
Year
Figure 8.60
194
1 1
1/ 1JJ I I I 1
\
20 —
10 —
•
Number of employees
with more or less than 46 —
Mean service
-2* —
.30 —
-40 —
Length of Sewice
30 —
25-
_2020
15 ...
10 •••
5_
1 10 1 i< than 1 1 to 5 6 to 10
11 to 15
16 to 20 26to 30
Years
Figure 8.61
Mnew SerN4oe af 5.37
Years
Figure 8.62
Figure 8.62 also indicates the numbers of employees whose service period exceeds or
falls below the mean service period. When these service periods are further analysed
it is evident that the female employees are the members who provide the lower service
periods, with the longer service periods i.e. greater than 11 years, being generated
exclusively by males, the processed data is shown in Figures 8.63 and 8.64.
195
iR
<1 1 b5 6 to 10 11k1515 1610 72 266136
Figure 8.63
2. .n
1.5 ......
Number of employeesabove/below mean 5 0111M
service
El Males
El Females
Mean service of 5.37 years
Length of Service and Sex
16
Years
Figure 8.64
Analysis of the service periods produced relative to the sources utilised shows that the
organisation secured the longest mean service period from source No10., with only
one other source ( source Nol. ) exceeding the organisational mean. The mean
service periods are indicated in Figure 8.65, with the variances from the
organisational mean shown in Figure 8.66.
196
20.00 —
18.00 --
16.00 -.-
14.00
12.00
10.00 —
8.00 —
6.00 —
Source and Mean Service Produced
Organisation's mean seivice 5.37
years
f I
1s 105 11s 13s 148 156
Source
Figure 8.65
Whilst the organisation has favoured the use of source No14. as the principal
recruitment method (26 employees recruited via this source as opposed to 4 employees
recruited via source 10), it is clear that source No10. provides a substantially longer
mean service period. Source Nol. also provides a longer mean service period than
that for source No14. It may well be that the employees being recruited via source
No14. view the vacant post as simply a transitory position prior to securing much
more acceptable long term employment, or that the work to be undertaken is lacking
in challenge or stimulus, certainly it cannot be the lack of long term job security since
the organisation will offer the recruit a long term employment period if that is the
recruits need.
During the period 1985 to 1991 there were no Quits from the organisation and
therefore it was felt that the quits prior to this time period would be too historical and
thus no analysis of quit rates was performed for this organisation. The collected raw
data was however entered into the ANOVAS for further analysis.
4.00 —
2.00
0.00
197
15s
14s
amp.
139
11s
Source variance from mean service
MN.
ales
10s
is
els
'IMMO
I
-6.00 -400 -200 000 2.00 4.00 6.00 800 10.00 12.00 14.00 16.00
Years
Figure 8.66
8.7 FURTHER ANALYSIS OF THE DATA
The data contained within the 2448 personnel records is capable of yielding much
more meaningful information i.e. qualifications, age and qualifications, etc. This
research is concerned with only a few important aspects of the data but it should be
borne in mind that the data, with the correct processing, may be of assistance to other
researchers or capable of further analysis. In order to carry the present analysis
further use is made of the ONE-WAY ANOVA and the TWO-WAY ANOVA, and
the output from the processing of these ANOVAs are discussed in some detail. The
raw data used in all analyses is shown in Appendix 2.
8.7.1 ONE-WAY and TWO-WAY ANOVA
Thus far, a substantial quantity of data has been gathered and incorporated within the
research e.g. 5 organisations, 2448 personnel records, 15 Sources of Recruitment, and
from the initial analyses of this data certain trends are suggested for each of the
organisations and the Recruitment sources utilised in their recruitment of employees.
These initial trends are clearly shown in each of the foregoing figures. Sound
research should not rely simply on suggestions or implied trends to support any
198
argument, but seek to secure substantial support for the conjectures or hypotheses put
forward. This substantial support may be secured by the means of robust statistical
anlysis of the gathered data. In this research the ONE-WAY and TWO-WAY
ANOVA (Analysis of Variance) are utilised in analysis of the length of service given
by each employee for each source of Recruitment. By partitioning the data in certain
ways, different sources of possible variation in length of service may be examined and
it is possible to highlight the relative importance of the various sources of variation.
The output from the ONE-WAY ANOVAs are shown in Appendix 3, with the output
from a TWO-WAY ANOVA shown in Appendix 4. When executing the TWO-WAY
ANOVA it may be argued that the size of organisation No2. may in some way distort
the underlying true picture. In order to counter this argument a second TWO-WAY
was carried out with the data from organisation No2. excluded from the processed
data set, and the output from this test is shown in Appendix5. Note that since the
same data have been utilised for different tests, care should be exercised when
interpreting the probability associated with the calculated F values.
The TWO-WAY ANOVA shows both organisation and source of Recruitment as
significant sources of variation in length of service, and also indicates interaction
between source of Recruitment and organisation. This is true whether Organisation
No2 is included or omitted from the data set.
Following the idea that the source of Recruitment utilised will serve as an indicator of
the likely stability and tenure of the new recruit, one of the hypotheses tested was
that:
Ho: mean,mean,2 = mean, 15
(where means is the mean length of service for Recruitment source n over all
organisations), against the alternative that at least one mean was different from the
others. There is only sufficient statistical evidence to reject the Null hypothesis
whenever the calculated value of F in the ANOVA Table has an associated probability
of less than the chosen significance level, which is generally 0.05.
199
Partitioning the data into organisations and executing 5 ONE-WAY ANOVAs allows
the testing of the hypothesis that for each organisation:
H0 : mean' = mean2 = means = mean is
(where meann is mean length of service for those recruited from source), against the
alternative that at least one is different.
The output from the 5 ANOVAs shows that except for organisation No3, there is
statistical evidence to support the rejection of the Null hypothesis. This implies that
for each of organisation Nos 1, 2, 4, and 5, there are differences in mean length of
service for certain sources. Further analysis using Tukey's Honestly Significant
Difference statistic clearly indicates for each organisation those Sources of
Recruitment which give significantly different mean lengths of service. The values
derived from the ONE-WAY ANOVAs are shown in Appendix 3.
For Organisation No3, however, there is no statistical evidence to support any
difference in the length of service for each source of Recruitment since the computed
probability for the organisation is some 26.5%. Although examining the mean length
of service for each source of Recruitment does suggest that source No6 is 'better' than
the other three Sources of Recruitment utilised by Organisation No3. The analysis
may have been affected by the organisation's extremely high quit rate for each
individual source of Recruitment (100, 52, 65, and 55 % respectively), as well as the
composite quit rate for the organisation as a whole i.e. 57%, and also by the fact that
the organisation was factory based. With a longer timebase perhaps the statistical
analysis might give some significant differences.
200
9.1 GENERALLY
It has been shown that construction activity is like many other industries in that it is
subject to fluctuations. These fluctuations may be in line with, preceding, or lagging
behind the general economic situation. Whilst the construction demand may have
peaks and troughs, there remains a need for a basic level of output, which may be a
general requirement, and this output must be attained through the efficient use of
resources. Management of the human resource has, historically, been the area where
management within the construction industry have exercised least precision and
comprehension. Legislative issues are readily taken on-board and integrated within
the organisation's operations, whilst the more unfamiliar psychological management
topics are, relatively speaking, shunned.
Labour turnover is readily seen within the industry and yet in many respects is
accepted as 'the norm'. 'How' and 'Why' the turnover should occur are central
themes to both this research and efficient management of the human Tesouice, and
have been considered within the foregoing chapters.
The following narrative seeks to ensure that the reader has grasped the nature of the
subject, the four hypotheses stated and developed, and the need for the research.
9.2 HUMANS IN CONSTRUCTION
The literature reviewed and general industrial experience has shown that the human
resource is an important element within the construction organisation, and generally,
within the industry as a whole. The cyclical nature of the construction processes often
ensures that consideration of issues relating to management of the human resource are
placed low down in the order of priorities. Thus labour turnover, whilst having
significant ramifications, is given little attention by management. Attention focused
on labour turnover may provide the organisation with positive benefits which negate
or reduce those effects which are seen to be negative in nature.
202
The thesis has shown that there is a clear need to consider the various Sources of
Recruitment utilised and the relationship of these sources to Labour Turnover within
the construction industry. The little research which has been executed in this general
area has typically been related to other industries. The construction industry in many
ways deserves to be considered unique because of the reasons given earlier (Chapter
2), resulting in the need for research which considers the topic from a construction
standpoint. This standpoint is supported by the many interacting forces which are
seen to be at work within the industry.
Forces at work act upon the individual, the organisation, and the industry, each of
which may ultimately bring about or lead to labour turnover. Each of the forces may
serve to act as the primary cause of labour turnover or perform as either a
contributory element, or as a catalyst. Consideration has been given to many of the
more relevant factors (in Chapters 2, 3, and 4), and whilst the factors themselves have
been scrutinised so too have the ramifications emanating from their influence. These
ramifications having both positive and negative outcomes for the individual, the
singular organisation and the industry as a whole.
9.3 THE CONSTRUCTION INDUSTRY
There can be little doubt that the construction industry's environment is constantly
changing. This change being brought about by influences such as: legislation, new
technologies, new materials, new or modified working practices, a variety of pressure
sources, lobbyists, clients, and also the industry itself. It may be argued that the
industry should be perceived as being unique since the product is constantly produced
on varying locations; the product is comprised of numerous component parts supplied
by others who may be either static i.e. factory based or mobile; no two projects are
totally similar, even the modern housing estate whilst appearing repetitious may
contain many variations in each dwelling; the climatic conditions under which the
operatives have to operate are subject to fluctuation, and are seldom conducive to a
203
healthy working lifestyle; the organisations which make up the industry are
predominantly small in nature; the workforce is generally perceived as being the poor
relation in terms of education, training and development, and also in terms of
financial stability and security. All of which serve to make it stand out from other
industries. Because of this uniqueness there exists a strong argument for management
to look at theoretical models or hypotheses proposed by writers considered within this
thesis, which generally have been derived from other industries, and to positively
filter the applicable areas whilst resisting those areas which may be considered to be
obscure or unrelated. Many of the writers discussed earlier have taken management
thinking on organisations (which are primarily fixed in the one locus or a singular
product or a clearly defined, stable market, generally manufacturing) and applied
these thoughts liberally across the widest possible organisational spectrum. This
approach clearly negates the perceived uniqueness of the construction industry. No
doubt many of the basic tenets underpinning general organisation theory will apply to
the bulk of the construction industry participants, but so also will we see those
organisations, and individuals, who do not mesh within the stereotyped jigsaw.
9.4 ADO PIING ALTERNATIVE IDEAS
Since the construction industry is in many ways unique, so management must be seen
as willing to adopt, or at least consider, new or interesting ways of maximising the
functional utility of the human, both as a person and as a resource. Motivation
theories have long been seen as a primary method by which this functional utility may
be increased.
Human motivation is complex and subject to many influences, both at the individual
level and at the industry base. No doubt exists though at to its power in determining
courses of action. Control, or at least direction, over these courses of action enables
the organisation and the industry to achieve desired goals and objectives. The
applicant responding to or accepting a vacancy is directly influenced by the then
204
current motivational state. So too the decision to exit any position in the organisation,
this course of action will have been carefully considered and measured by the
individual. The ramifications from the individual's actions may affect not only
themselves but also many others.
Labour turnover has profound effects upon the management of the human resource.
Therefore management of the organisation must be able to view the overall processes
at work and to comprehend the influence that each of the active factors may have
upon the individual, whether it be to apply for a vacant position within the
organisation, or to withdraw from the organisation. The departure of course being
part and parcel of the Turnover process.
9.5 SUPPLY AND DEMAND
Chapter 4 has considered, in some detail, numerous aspects of labour turnover and
effects on the organisation. Management's responses to labour turnover have been
discussed along with strategies available to eradicate or reduce some of the difficulties
associated with this turnover.
Labour turnover within the construction industry has generally been taken to be an
acceptable everyday occurrence, and therefore management who are faced with the
task of adequately resourcing the contractual obligation must seek measures which
will enable some form of forecasting or predictability in their labour resource supply.
It has been shown that the issues and areas which may influence the existence of
labour turnover and its physical rate may be considered in isolation, or more
appropriately, considered under an holistic approach. Work within the research has
shown that each employee may require both individualised attention and consideration
when part of some grouping. Evidence has been provided to show that labour
turnover, if managed properly and strategically, may well be a beneficial weapon to
be fully utilised by management under the appropriate set of circumstances, and aid in
205
smoothing the peaks and troughs often seen with human resource supply and
demands.
Various measures of labour turnover have been considered, with the advantages and
disadvantages of each highlighted. It is suggested that whilst no measure has the right
to be used in isolation, they do contribute to the overall picture of labour turnover
within the organisation.
9.5.1 Recruitment Sources
An underlying premise within the consideration of labour turnover is that there are
potential employees in the market place. Where the recruits may come from, and the
influence this source has on the length of service is of significance in the overall
process of labour turnover. The source of recruitment seen as having the greatest
utility may well be one which is used at present or one which should be adopted as the
in-house source for recruitment. The research undertaken has shown that the sources
used in securing employees for the organisation may have significant impact on the
effectiveness of recruitment and in practical terms, the stability and impact of the
recruit on the organisation. The organisation may gain significant benefits from use
of the appropriate recruitment source, e.g. in monetary terms, stability, the ability to
be able to say confidently that a particular candidate is likely to remain for a certain
period, reduction in costs, precise targeting of candidates, and also the improved
general image of both the organisation and the industry. When seeking to enhance the
expected realisable value of the individual within the organisation then the
organisation must ensure that the probability of the individual remaining within the
organisation is as high as possible, i.e. by use of the appropriate recruitment source.
Many other areas of positive benefit have been discussed and serve to reinforce the
basic argument that consideration of the recruitment source used is beneficial to the
organisation, directly, and of merit to the industry generally.
206
Management may require to consider the belief of engaging 'the whole being' rather
than simply an individual who can slot into particular role areas and carry on vacated
work areas without interruption of the flow. Since the individuals applying to fill the
vacancy will bring with them baggage consisting of varying degrees of skills,
attributes, abilities, knowledge and beliefs, so then management must accept that a
straightforward swap-over is virtually impossible.
9.6 PROGRESSION WITH THE RESEARCH
In order to carry the research farther it became necessary to establish an appropriate
methodology which would not only provide sufficient quantities of data for analysis,
but also withstand the rigours of subsequent scrutiny. The approach to the field-work
may serve to simplify the workload for the researcher, or if inappropriate, add to its
complexity. Therefore careful consideration has been given to establishing the most
appropriate methodology suitable for adoption.
The various constraints and choices in this research have been outlined and considered
in some depth and from this, the conclusion is drawn that the execution of the field-
research by Analytical Surveys is appropriate. The Analytical Survey allows as wide
a range of organisation types as possible to be surveyed and ensures that the research
is broad and deep, so aiding in its replicability. The organisations chosen for survey
are seen as being as representative of the wider industry population as the research
constraints will permit.
Also shown by the thesis is how the execution of the Pilot Study provides the
researcher with the opportunity to reconsider the methodology selected and the
effectiveness and applicability of the study. From the Pilot Study carried out, it is
clear that the methodology, after minor adjustment, is sound and that the research has
many specific areas which address and underpin the four hypotheses, stated in Chapter
1, and therefore may be seen as being applicable to the wider sample population.
207
9.7 ANALYSIS OF THE RESULTS
The analysis of the collected data shows that the organisations have preferred sources
which are utilised when seeking to secure employees. These preferred sources may
not always be the most effective in terms of the length of service produced by the
recruit nor in terms of stability of the employee i.e. quit rates. Table 9.1 summates
the findings from the research and clearly indicates the disparity between sources
favoured and those which are the more effective.
Organisation Source No % Recruited Service** Quit Rate
1 Preferred 2 26.82 6.32 50%Better* 3 18.23 13.87 50%Worst 1 15.38 2.38 30%
Organisational mean 5.83
2 Preferred 15 28.08 1.38 28%Better* 13 22.85 16.85 8%Worst 2 5.77 0.84 24%
Organisational mean 1.61
3 Preferred 15 48.51 1.38 55%Better* 6 0.88 2.88 100%Worst 15 48.51 1.38 55%
Organisational mean 1.61
4 Preferred 1 47.48 2.02 37%Better* 13 11.73 8.64 0%Worst 3 2.8 1.5 10%
Organisational mean 3.14
5 Preferred 14 46.23 1.42 nil in periodBetter* 10 7.14 18.43Worst 14 46.23 1.42
Organisational mean 5.37
Table 9.1 Source Effectiveness
* in terms of length of service, ** mean service period in years, - in period
considered.
208
In 75% of the organisations studied the 'better' source gave Quit Rates which either
equalled or were lower than the organisation's preferred Recruitment source, and in
all organisations the 'better' source gave mean lengths of service which exceeded the
in-house preference by at least 100%. Thus providing further support for the use of
the 'better' source in preference to other sources.
The output from the 5 ONE-WAY ANOVAs allows the construction of Table 9.2 to
highlight the Sources of Recruitment which have significant differences in mean
length of service for each organisation. The Sources of Recruitment are placed as
ROW and COLUMN headings with any significant difference between numbered
Sources of Recruitment being indicated in the body of the table by the number of the
organisation for which they occur.
Source
12
345
6
7
8
9
10
11
12
13
14
15
1 2 3 4 5 6 7 8 9
Source
10 11 12 13 14 15
1111111
111111115111
1
141
144
1 1 1 1
4
22
4
2
1
42
2
2
2
2
5
4 4
2
2
2
2.
2
5
2
2
2
222
5
4
5
2
1
2
2
2
5
2
2
each organisation is shown by its numerical indicatorin each of the sources where significant difference occurs.
Table 9.2 Organisational Source Usage
209
Making use of Table 9.2, it can be seen that for organisation No5 there are significant
differences between sources No10 and each of sources No 1,11,13,14,15, also there
are significant differences between source No10 and each of sources No 1, 2, 6, 13,
and 14, for Organisation No2. For Organisation No 5 there is also a significant
difference between sources No14 and 15. Tables 9.1 and 9.2 therefore suggest
Sources of Recruitment which should be used by the organisations involved in the
study, in preference to their own in-house chosen source of Recruitment.
The ANOVAs have shown that there are factors at work and the impact of these
factors may be quantified and so allow management to consider recruitment sources
which are to be preferred before others.
The results derived from the analysis of the collected data allow certain conclusions to
be drawn; the development of implications from the research, and also suggestions as
to the applications for the findings contained within the research. These are discussed
in the following chapter.
210
10.1 CONCLUSIONS
It has been shown that there is a four-fold problem faced by all managers of
construction, or construction related organisations, in that they must:
i) secure sufficient human resources in the face of competition and a varying
marketplace;
ii) obtain from these human resources an adequate return in terms of length of service;
iii) exert control over the rate of turnover of the human resources;
iv) comprehend the ramifications deriving from the human resource turnover.
The recruitment practices found within the construction organisations have so far
ignored the analysis of recruitment sources as a means of establishing the most
effective source of recruitment in terms of both length of service and stability of the
human resources recruited via each source. This omission, of such a worthwhile
analytical approach, by the construction organisations may add to the strain placed on
stretched resources, and also detract from management's ability to fully maximise the
resources available to them. Focusing on recruitment sources which may be seen as
being less effective in terms of lower employee stability, higher labour turnover rates
and negative effects on the organisation, may simply be adding to management's
operational problems rather than solving them.
Broad consideration of the recruitment sources used within the participating
organisations shows that the organisations do focus on preferred sources but without
any detailed analysis of the effectiveness of these sources or the impact of these
sources on the efficiency of the recruitment process. Factors which may be seen as
integral elements and interacting variables within the practice of recruitment are: the
function of recruitment, the underlying demographics of both the industry and
employee cohorts, applicable motivational theories and the nature of the construction
organisation/industry. These factors interact to compound the challenge facing those
who manage the construction organisation, but nonetheless, they have been considered
in some detail bearing in mind the uniqueness of the construction industry.
212
The fifteen sources of recruitment identified and employed within the research were
widely used by the organisations, with individual organisations using numerous
sources on a recurring basis. Individual source usage by the organisations was as
follows:
Local Press advertisements used by 80% of the organisations, National Press
advertisements used by 60% of the organisations, Trade or Business Journals used by
40% of the organisations, Recruitment Agencies used by 40% of the organisations,
Referral by employee used by 80% of the organisations, Re-employment of an
individual used by 40% of the organisations, Referral from School/Careers used by
20% of the organisations, College/University milk-round used by 60% of the
organisations, Casual call-in used by 60% of the organisations, Training Agency used
by 60% of the organisations, Head hunters used by 40% of the organisations, Internal
sources used by 80% of the organisations, the Job Centre/Department of Employment
used by 60% of the organisations, Other sources e.g. phone call, used by 100% of the
organisations.
Subsidiary Recruitment Agencies was the only source which was not used by any of
the organisations; if a recruitment agency was employed then it was on a singular
basis. Therefore with an overall usage rate of 93.3% the sources were found to be
valid, with no other unmentioned sources of recruitment being discovered in use.
Analysis of the individual organisation's usage of the recruitment sources shows
clearly the favouring of particular sources above all others. These in-house
preferences were successful in recruiting substantial quantities of human resources but
these human resources were found to exhibit lower service periods and stability rates
than human resources recruited from those sources identified as the 'better' sources.
One organisation preferred to use National Press Advertisements to secure the bulk of
their recruits even though this source gave substantially lower mean employee service
periods than the 'better' source, i.e. Trade or Business Journals. The recruitment
sources giving mean service period values of 6.32 years and 13.87 years respectively.
213
The second organisation preferred the use of Other sources which gave a mean service
period of 1.38 years in contrast to the mean service period of 16.85 years from the
'better' source, Internals. The third organisation also preferred to use Other sources
which gave a mean service period 1.5 years lower than that given by recruits from the
'better' source, Employee Referrals (2.88 years). The fourth organisation used Local
Press Advertisements in preference to Internal sources, with the respective mean
service periods being 2.02 and 8.64 years. The fifth organisation preferred to use the
The Department of Employment/Job Centre which gave a mean service period value
significantly lower than the value given by the 'better' source, Casual Call In (1.42
and 18.43 years, respectively).
Statistical analysis of the data by means of the ONE-WAY Analysis of Variance
supports the initial findings regarding the usage of the recruitment sources within the
individual organisations, indicating those sources which give significantly different
values from the other sources of recruitment. The TWO-WAY Analysis of Variance
markedly highlights the significance of the differences in mean lengths of service
given by each of the 2449 recruits from the individual sources of recruitment utilised
in the composite study. It also highlights the importance of considering the
organisation type in relation to the sources of recruitment utilised, since there was
significant interaction between these two possible sources of variation.
The in-house preferred sources of recruitment may be seen as a back-up to the sources
indicated as the 'better' performers, but generally produced the poorer values in terms
of service length and quit rates and therefore are to be avoided if possible. Stemming
from analysis of these results it is argued that substantial organisational resources may
be being committed towards the use of recruitment sources which at best prove only
marginally useful, and at worst are a drain or hindrance on the efficient operation of
the organisation.
214
Turnover of the employee cohort has significant effects upon the organisation as a
whole, with these effects being described and discussed in some detail in Chapter 5.
The complexity of these ramifications demands that management give considerable
attention to their nature and to the potential benefits or negative effects which may
arise from the turnover. None of the organisations had given in-depth consideration
to the fuller ramifications of employee turnover upon the organisation, the employees
remaining within particular cohorts and the industry generally.
The rate of turnover may or may not fall within acceptable boundaries and therefore
be perceived as either negative or positive by the management of the organisation.
The levels of turnover for each organisation were examined and Quit Rates established
and related to the source of recruitment used in recruitment of the employee. From
this examination and subsequent analysis it is evident that particular sources of
recruitment are strong indicators of employees who are likely to remain with the
organisation. The values established for each source of recruitment clearly indicating
the source which exhibits high quit rates and those sources which have low quit rates.
The individual organisation's preferred sources of recruitment, used to secure the
human resources, have been shown to be less effective in predicting stability of the
employee.
10.2 ACHIEVEMENTS OF THE RESEARCH
At the outset of the research four hypotheses were clearly laid out and discussion
follows on the support given to each of these hypotheses i.e.:
Hypothesis A:
That the use of particular recruitment sources will result in an organisation recruiting
employees who remain with the organisation for significantly longer periods of time.
The data analysed within the research and the results clearly support this hypothesis.
Significantly longer periods of employment were found for employees recruited by
215
particular sources within each of the organisations. Each organisation was found to
have its own preferred 'in-house' source of recruitment which gave lengths of service
which fell below the period of service to be found when recruits were secured by the
source seen within the research as the 'better' source. Therefore the organisation may
be seen to be failing to maximise the opportunity presented to it, and inappropriately
applying managerial resources by not securing employees from the 'better' source.
Hypothesis B:
That the use of certain recruitment sources will result in employee cohorts whose
turnover rates are more manageable.
This hypothesis is clearly supported by the research. Turnover rates for all employees
from all recruitment sources were established and compared with the 'better' source's
turnover rate. From this analysis it is clear that employees entering the organisation
within specific recruitment source groups lead to lower turnover rates and so demand
less managerial input into control of turnover. The concentration on particular
recruitment sources may allow management to re-focus much of the managerial effort
towards areas more productive for the organisation.
Hypothesis C:
That the use of certain recruitment sources will improve the overall effectiveness of
the recruitment practices and procedures carried out within the organisation.
The research provides substantial support for this hypothesis. Consideration of the
many factors at work within the recruitment practices and procedures shows that
focusing of the efforts may lead to substantial improvements in the recruitment
function. Resources may be channelled to a specific source of recruitment which is
shown to be more effective, thus improving utilisation of the resources. Management
will be better able to develop, implement, monitor and control the overall function of
recruitment ensuring that future recruitment strategies may be better prepared and
implemented
216
Hypothesis D:
That employees joining or leaving the organisation will have significant effects on
other employees, and the organisation generally.
The research has considered a broad spectrum of ramifications from employee
turnover and, in conjunction with the available literature, shown the potential
outcomes from employee turnover. There is clear support for the hypothesis with
substantial evidence of the effects on both the employee and the organisation.
Generally within the research there is substantial support for the four hypotheses
stated and considered. Thus the research findings are seen to validate the research
effort.
Also stated at the outset of the research were three objectives:
i) To investigate recruitment sources used by construction organisations and to deduce
if any of the recruitment sources used may act as an aid in improving the recruitment
process as a function of the construction industry; and,
ii) to consider and summarise the effects of employee turnover upon the organisation,
and the use of each recruitment source, especially those which may serve as indicators
of long term employee tenure within the organisation; and,
to consider the hypotheses stated and provide substantive data and findings which
may be replicated and/or expanded by others at a later date.
It has been shown that objectives i) and have been achieved through the formation
and development of a specific model which encompasses the use of the various
sources of recruitment and shows how these recruitment sources interact with the
other processes and functions of recruitment (Figure 6.3). The model clearly
demonstrates that the recruitment source used may be subject to influence from the
recruitment practices adopted and may in turn influence such areas as: image of the
organisation (which may be a two-way flow), the source effectiveness, vacancy
information passed to potential applicants, perceived desirability of the vacancy, the
employee cohort who respond to the vacancy information and ultimately, the actual
length of service period given by recruits and the wider effects of labour turnover
217
upon the organisation. The data gathered and analysed has provided considerable
statistical support for the work in general, and specifically for the particular
recruitment sources used by the organisations. Whilst the participating organisations
have been relatively few in number the research, nonetheless, is shown to be valid,
replicable, and offering a significant contribution to the knowledge surrounding the
use of recruitment sources within various construction industry organisations.
The ramifications of labour turnover have been mapped together in order to provide
the reader with a concise summary of the likely outcomes. Whilst all of the outcomes
may not be seen within an organisation, it is clear from the work that the organisation
will witness some of the outcomes. Whether the outcomes seen are considered
beneficial or not is a matter for the organisation and the individual concerned.
10.3 IMPLICATIONS AND APPLICATIONS OF THE RESEARCH
Recruitment practices are a vital component within the overall management of an
organisation and the findings from this research may be utilised by those in
construction management to improve the general recruitment process. The reduction
in time and resources expended on sources of recruitment which are inefficient along
with the greater accuracy in the recruitment process must prove beneficial to the
organisation. The ability to say with some degree of confidence that an employee,
recruited from a particular source, is likely to remain within the organisation for a
period of time which falls within acceptable boundaries allows management to plan
more accurately for their output demands and human resource needs. This confidence
coming about through careful analysis of in-house records which show recruitment
sources used and lengths of service derived.
Implications for management and the industry as a whole may be considered under
three broad heads: Precision and accuracy, Cost effectiveness, and Application.
218
- The analysis of in-house human resource records which have been regularly updated
and well maintained should ensure that the data extracted from the files is precise, in
that it relates to a specific organisation and source of recruitment; the accuracy is
ensured by the regular monitoring of the processes involved in the record
maintenance. Indeed the regular monitoring of the recruitment sources used and their
various success rates provides valuable feedback to management which enables the
focusing on specific sources which are better performers. The participating
organisations as a whole lacked any co-ordinated approach to which recruitment
sources were to be used in seeking recruits. Most used an ad-hoc basis for
establishing which source to use, and even this basis was subject to the whims of the
individual who was given the responsibility of executing the particular task. The issue
of who was given the task of using the appropriate recruitment source appeared to rely
on the principle that the youngest, and generally the least experienced, member of
staff would be more than capable of carrying out this 'mundane' task. Greater
understanding and awareness of those instigating the use of various recruitment
sources is required. Improved training in the allocation/application of particular
sources is required in order to highlight the full impact of the chosen recruitment
source upon the organisation.
- The records themselves were lacking in coherence. Each organisation adopted an
in-house style which may have come about simply through an individual's personal
whims and tastes. Whilst there were organisations which had Personnel Officers who
had formal Personnel Management qualifications, this made little impact on the
'personal factor'. The Personnel Manager being seen more as the Legislation
Interpreter and Enforcer rather than a true Manager. New Technology is readily
available which should be employed and would take much of the routine,
mundaneness, out of personnel records management. None of the organisations
applied New Technology to their specific personnel records: IT was in use in other
areas of the organisation, even within personnel departments e.g. word-processing.
Standardisation of approaches, documentation, procedures, practices and technology
219
employed has many implications for the organisations concerned and may well be an
issue to be addressed at professional, academic, and industry levels.
- Generally it would appear from the records made available in all the participating
organisations that personnel management is still somewhat of a 'hit and miss' affair
with the particular aspects of this research being much too deep in the subject area for
general management's consideration. Only when the full ramifications of labour
turnover are illustrated is there a sudden glimmer of interest, especially when 'savings
to be made' are mentioned. The organisations were unable to quantify the overall
cost incurred when recruiting an employee. Given that in many instances the
employee may be part of a larger work unit which must be employed e.g. a design
team, a bricklaying squad, then it would appear sound commercial sense that the costs
involved are readily known and available. The implications arising from the lack of
precise cost control are well known to managers operating within the construction
industry.
- None of the organisation's records showed any attempt at 'exit interviews'.
Therefore in many instances the organisations had no ideas whatsoever of why the
employee was leaving. The issue of exit interviews impinges on the whole concept of
employee motivation. The data available in the records would suggest that the
organisations are simply viewing the individual employee as a 'work unit' which can
be replaced as and when required. Productivity is certainly considered when
reference is made to bonus payments on the data records, but bonus payments are
only one small area of the wider issue. The issues surrounding motivation and
productivity as related to those who work within the construction industry, should be
considered on an industry specific basis, and further, on an organisational type basis.
- Application of the analytical technique shown within this thesis is relatively
straightforward, especially where there is an abundance of computing power. The
data required may already be available within the organisation's records or database
220
and simply requires extraction and suitable processing. Alternatively, to implement
the process manually requires no more than a methodical approach to record keeping.
With the introduction of suitable IT and Databases, then the costs involved in actually
analysing the data becomes relatively small, whilst the potential benefits derived from
the introduction of the analysis may be immense e.g. reduction in advertising costs,
reduced repetition of training of new recruits, controlled turnover rates, enhanced
external image, etc.
- The length of service has been shown to be related to the source of recruitment used
and it may therefore be possible to develop an algorithm which expresses this
relationship numerically i.e. Ls = Rsm +/- C.
where Ls = length of service expected, Rsm = mean length of service from
each source of recruitment, and C = a constant derived from other factors
which may influence the length of service e.g. the individuals motivational state,
the organisation's geographical location, and the job vacancy itself.
This algorithm can be used as a ready indicator for the organisation's recruiters. The
ability to focus on specific sources of recruitment which are indicators of better
performance, in clearly defined terms of reference, ensures that the organisation
directs maximum attention to the better source.
- With wider application of the analysis of recruitment sources and resulting
employee turnover it may be that the recruitment process is enhanced, that
organisational efficiency is improved and that organisational costs incurred in
recruitment are reduced.
The overall process of considering the recruitment source utilised and the resulting
turnover is one which may be applied to all construction organisations, irrespective of
their size, geographical location or work area, as an integral element within their
recruitment process. The narrative and analysis of the data contained within this
thesis has shown the need to better understand the recruitment process and where
possible to assist the successful application of the process by means of appropriate
221
management tools. The analysis of recruitment sources is one such tool and is readily
followed by the user.
The process should not only be limited to application within the construction industry
but also applied over the wider industrial organisational base existing in the nation.
The type of organisation or work undertaken may be held as being irrelevant to the
process, the important aspects being correct and accurate data maintenance along with
suitable extraction and processing of the data.
10.4 RECOMMENDATIONS FOR FUTURE RESEARCH
Many aspects of the research are worthy of future consideration in their own right
e.g. the influence of group demographics on the service periods and also upon quit
rates. However, areas put forward for future research should perhaps be seen as not
only complementary to the initial work, but also adding to the depth of the subject and
allowing further developments to take place. The following areas are put forward as
suggestions for others to actively pursue in order to take the research on to new depths
and to allow those who follow to develop the subject into a widely acknowledged area
for advancement and application: Approaches to Recruitment Sources, Recruitment
Costs, Employee Motivation, Wider Use of the Model.
- The research has shown biases within the organisations, and also the recruitment
sources, towards certain clearly defined age groups. The question arises as to how
influential the demographics of each group are in moderating the effectiveness of each
source of recruitment and whether any such derivative influence may be isolated
and/or manipulated?
- The individuals who respond to job vacancies bring with them many traits, beliefs,
goals and values. The analysis of the impact of these aspects upon the individual and
upon the source of recruitment utilised, and the inclusion of many of these aspects
within job vacancy information may further enlighten the exact nature of the process
222
and so allow modification of its application.
- Analysis of organisational data with regard to specific occupations and sources of
recruitment utilised by applicants and organisations may lead to a honing of the
process, thus allowing precision targeting of applicable sources to specific
occupations.
- The research methodology should be applied to other organisations outwith the
construction industry in order to fully validate the findings and also to provide a wider
analysis of the recruitment sources used, along with the various quit rates found in
other industries. Particular emphasis may be placed on the interaction between
organisation type and the particular sources of recruitment utilised in order to
ascertain the full impact of this interaction.
223
Organisation Description Response
National Contractor
UK-wide contractor
referred to local office resulting in the following:"You will appreciate that I have a duty ofconfidentiallity to the staff we employ and couldnot allow someone from outside the companyaccess to their records".
"We are an enormous organisation operatingthrough a multiplicity of smaller business units,rendering the task of retreiving the informationyou require extrememly time consuming".
Local component "We are a relatively small company with themanufacturer minimum of personnel records and I am not sure
that we would be in a position to give you all thedetailed information which you require".
Project Managers positive input
Local component positive inputmanufacturer
National contractor "We are unable to assist you in this matter".
National contractor no response
Surveyors positive input
Consulting Engineers initially positive then conditional
Local Authority positive inputBuilding & Works
Ancillary services positive input
UK-wide house no response
builder
Localised contractor no response
UK-wide contractor "We are unable to commit resources to suchand house builder work".
225
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SPSS/PC+ The Statistical Package for IBM PC
7/2/92process if (company= 1).oneway variables= service by source(1,15) / ranges=tukey.
ONE WAY
Variable SERVICE By SOURCEAnalysis of Variance
Sum of Mean F FSource of varia D.F. Squares Squares Ratio Prob.
Between Groups 6 2066160.683 344360.1138 5.0720 .0005
Within Groups 45 3055245.951 67894.3545
Total 51 5121406.634
Multiple Range TestTukey-HSD Procedure Ranges for the .050 level - 4.36 4.36 4.36 4.36 4.36 4.36
The ranges above are table ranges. The value actually compaared with Mean(J)-Mean(I) is. 184.2476 * Range * Sqrt(1/N(1) + 1/N(J))
(*) Denotes pairs of groups significantly different at the .050 level
SSSSSSSr rrr rrrc cc c c c c
Mean
123.8550136.5160158.7150168.5483196.9186329.6329681.4290
Source
Src 1Src 9Src 4Src15Src 6Src 2Src 3
1
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9
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415
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6
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2
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298
process if (company =2).oneway variables= service by source(1,15) / ranges=tukey.
Analysis of Variance
Sum of Mean F FSource of varia D.F. Squares Squares Ratio Prob.
Between Groups 10 153862467.1 15386246.71 160.6980 .0000
Within Groups 2050 196280005.7 95746.3442
Total 2060 350142472.7
SERVICE By SOURCEMultiple Range TestTukey-HSD Procedure Ranges for the .050 level - 4.55 4.55 4.55 4.55 4.554.55 4.55 4.55 4.55 4.55
The ranges above are table ranges. The value actually compared with Mean(J)-Mean(I) is.. 218.7994 * Range * Sqrt(1/N(1) + 1/N(J))
.(*) Denotes pairs of groups significantly different at the .050 level
Mean Source
SSSSSSSSSSSr r r r r r r r r r rC c c c c c c c c c c
11 1112 9 1 6 1 4 7 8 0 5 3
43.9931 Src 246.4000 Src 984.2265 Src 1130.8589 Src 6166.3324 Src 11
193.3126 Src 14 *
198.21 74 Src 7 *
245.9431 Src 8 * *
312.4985 Src 10 * * * *
362.8360 Src 15 * * * * * * *
883.9664 Src 13 * * * * * * * * * *
299
process if (company =3).oneway variables= service by source(1,15) / ranges---,tukey.Analysis of Variance
Source of varia
Between Groups
Within Groups
Total
Sum ofD.F. Squares
3 18794.2851
97 452474.2502
100 471268.5353
Mean F FSquares Ratio Prob.
6264.7617 1.3430 .2650
4664.6830
Multiple Range Test
Tukey-HSD Procedure Ranges for the .050 level - 3.70 3.70 3.70
The ranges above are table ranges. The value actually compared with Mean(J)-Mean(I) is.. 48.2943 * Range * Sqrt(1/N(1) + 1/N(J))No two groups are significantly different at the .050 level
300
process if (company =4).oneway variables=service by source(1,15) / ranges=tukey.
SERVICE By SOURCEAnalysis of Variance
Sum of Mean F FSource D.F. Squares Squares Ratio Prob.
Between Groups 11 814.5248 74.0477 14.3952 .0000
Within Groups 167 859.0342 5.1439
Total 178 1673.5590
Multiple Range Test
Tukey-HSD Procedure Ranges for the .050 level - 4.68 4.68 4.68 4.68 4.684.68 4.68 4.68 4.68 4.68 4.68
The ranges above are table ranges. The value actually compared with Mean(J)-Mean(I) is.. 1.6037 * Range * Sqrt(1/N(I) + 1/N(J))(*) Denotes pairs of groups significantly different at the .050 level
SSSSSSSSSSSSr r r r r r r r r r r rCCCCCCCCCCCC
1 11 11Mean Source 3 2 2 1 6 7 9 1 0 4 4 3
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301
*
process if (company =5).oneway variables= service by source(1,15) / ranges=tukey.Analysis of Variance
Sum of Mean F FSource of varia D. F. Squares Squares Ratio Prob.
Between Groups 5 3121860.663 624372.1326 11.1603 .0000
Within Groups 50 2797287.643 55945.7529
Total 55 5919148.306
ONE WAYSERVICE By SOURCE
Multiple Range Test
Tukey-HSD Procedure Ranges for the .050 level - 4.19 4.19 4.19 4.19 4.19
The ranges above are table ranges. The value actually compared with Mean(J)-Mean(I) is.. 167.2509 * Range * Sqrt(1/N(I) + 1/N(J))
(*) Denotes pairs of groups significantly different at the .050 level
SSSSSSr r r r r rC CC C CC
111 1 1Mean Source 1 4 3 1 5 0
78.4267 Src 11143.6304 Src 14248. 8043 Src 13353.8067 Src 1517.1167 Src 151012.9975 Src 10
302
SPSS/PC+ The Statistical Package for IBM PC 7/2/92
data list file= free/source service company.list variables=all/cases to 10. 2449cases are written to the compressed active file. SOURCE SERVICECOMPANYanova variables= service by source(1,15) company(1,5)/option 10.
ANAL YSIS OF V ARIANCE SERVICE BY SOURCE BY COMPANY
Sum of
Mean
SignifSource of Variation
Squares DF Square of F
Main Effects
172712068.329 17 10159533.431 120.810 .000SOURCE
150544650.222 13 11580357.709 137.705 .000COMPANY
22167418.107 4 5541854.527 65.900 .000
2-way Interactions
22360593.742 22 1016390.625 12.086 .000
SOURCE COMPANY 22360593.742 22 1016390.625 12.086 .000
Explained 195072662.072 39 5001863.130 59.478 .000
Residual 202585872.531 2409 84095.422
Total 397658534.603 2448 162442.2122449 Cases were processed. 0 Cases ( .0 PCT) were missing.
CELL MEANS
TOTAL POPULATION 360.89 ( 2449)
SOURCE1 2 3 4 5 6 7
44.35 71.45 325.27 65.72 .00 128.61 183.78( 147) ( 138) ( 21) ( 5) ( 0) ( 70) ( 95)
8245.94
( 266) (
15340.40
( 640)
9 10 11 12 13 1470.98 320.72 143.38 1.55 795.83 136.1713) ( 303) ( 40) ( 3) ( 531) ( 177)
304
SERVICE BY SOURCE BY COMPANY
Sum of Mean SignifSource of Variation Squares DF Square F of F
Main Effects 172712068.329 17 10159533.431 120.810 .000SOURCE 136709503.509 13 10516115.655 125.050 .000COMPANY 22167418.107 4 5541854.527 65.900 .000
2-way Interactions 22360593.742 22 1016390.625 12.086 .000SOURCE COMPANY 22360593.742 22 1016390.625 12.086 .000
Explained 195072662.072 39 5001863.130 59.478 .000
Residual 202585872.531 2409 84095.422
Total 397658534.603 2448 162442.212
2449 Cases were processed. 0 Cases ( .0 PCT) were missing.
MULTIPLE CLASSIFICATION ANALYSIS
SERVICE By SOURCE By COMPANYGrand Mean = 360.886
Variable + Category
SOURCE
N
Adjusted forAdjusted for Independents
Unadjusted Independents + CovariatesDev'n Eta Dev'n Beta Dev'n Beta
1 147 -316.54 -183.622 138 -289.44 -325.603 21 -35.61 42.304 5 -295.16 -187.936 70 -232.27 -252.497 95 -177.10 -193.398 266 -114.94 -153.309 13 -289.91 -291.9610 303 -40.16 -75.7811 40 -217.50 -215.9212 3 -359.34 -98.1613 531 434.95 429.3414 177 -224.72 -136.7915 640 -20.49 -30.12
.62 .59
306
MULTIPLE CLASSIFICATION ANALYSIS
SERVICE By SOURCE By COMPANYGrand Mean = 360.886
Variable + Category
COMPANY
Adjusted for
Adjusted for Independents
Unadjusted Independents + CovariatesN Dev'n Eta Dev'n Beta Dev'n Beta
1 52 -56.85 123.692 2061 48.29 38.363 101 -277.06 -331.014 179 -357.74 -261.185 56 -81.08 -94.86
.30 .26
Multiple R Squared .434Multiple R .659
307
process if (company ne 2).anova variables=service by source(1,15)company(1,5)/statistics all.
*** CELL MEANS ***
SERVICE BY SOURCE BY COMPANY
TOTAL POPULATION 104.40 ( 388)
SOURCE1 2 3 4 5 6 7
23.16 243.41 325.27 65.72 .00 118.76 2.34( 96) ( 19) ( 21) ( 5) ( 0) ( 13) ( 7)
8 9 10 11 12 13 14.00 86.34 810.97 35.20 1.55 103.99 71.45
( 0) ( 8) ( 5) ( 7) ( 3) ( 60) ( 83)
15 127.43 ( 61)
COMPANY1 2 3 4 5
304.03 .00 83.82 3.14 279.80
( 52) ( 0) ( 101) ( 179) ( 56)
COMPANY
SOURCE1 2 3 4 5
1 123.86 .00 .00 2.02 353.81( 8) ( 0) ( 0) ( 85) ( 3)
2 329.63 .00 .00 1.99 .00( 14) ( 0) ( 0) ( 5) ( 0)
3 681.43 .00 .00 1.50 .00( 10) ( 0) ( 0) ( 11) ( 0)
4 158.71 .00 .00 3.73 .00( 2) ( 0) ( 0) ( 3) ( 0)
5 .00 .00 .00 .00 .00( 0) ( 0) ( 0) ( 0) ( 0)
6 196.92 .00 155.29 2.04 .00( 7) ( 0) ( 1 ) ( 5) ( 0)
7 .00 .00 .00 2.34 .00( 0) ( 0) ( 0) ( 7) ( 0)
8 .00 .00 .00 .00 .00( 0) ( 0) ( 0) ( 0) ( 0)
9 136.52 .00 .00 2.72 .00( 5) ( 0) ( 0) ( 3) ( 0)
10 .00 .00 .00 2.85 1013.00( 0) ( 0) ( 0) ( 1) ( 4)
11 .00 .00 .00 2.78 78.43( 0) ( 0) ( 0) ( 4) ( 3)
12 .00 .00 .00 1.55 .00( 0) ( 0) ( 0) ( 3) ( 0)
13 .00 .00 102.99 8.64 248.80( 0) ( 0) ( 25) ( 21) ( 14)
14 .00 .00 79.87 3.84 143.63( 0) ( 0) ( 26) ( 31) ( 26)
15 168.55 .00 74.68 .00 517.12( 6) ( 0) ( 49) ( 0) ( 6)
310
*** ANALYSIS OF VARIANCE ***
SERVICEBY SOURCE
COMPANY
Sum of Mean SignifSource of Variation Squares DF Square F of F
Main Effects 8501785.702 15 566785.713 32.268 .000SOURCE 2828490.371 12 235707.531 13.419 .000COMPANY 3706955.989 3 1235651.996 70.347 .000
2-way Interactions 2379139.785 13 183010.753 10.419 .000SOURCE COMPANY 2379139.785 13 183010.753 10.419 .000
Explained 10880925.487 28 388604.482 22.124 .000
Residual 6305866.878 359 17565.089
Total 17186792.365 387 44410.316388 Cases were processed.
0 Cases ( .0 PCT) were missing.*** MULTIPLE CLASSIFICATION ANALYSIS * * *
SERVICE By SOURCE By COMPANYGrand Mean = 104.402
Variable + CategorySOURCE
N
Adjusted forAdjusted for Independents
Unadjusted Independents + CovariatesDev'n Eta Dev'n Beta Dev'n Beta
1 96 -81.24 -15.042 19 139.01 37.853 21 220.87 189.664 5 -38.68 -49.456 13 14.36 -40.547 7 -102.06 -5.489 8 -18.06 -89.2110 5 706.57 598.1011 7 -69.20 -82.4712 3 -102.85 -6.2813 60 -.41 -1.4414 83 -32.95 -45.0915 61 23.03 -4.88
.53 .41
311
*** MULTIPLE CLASSIFICATION ANALYSIS ***
SERVICE By SOURCE By COMPANYGrand Mean = 104.402
Variable + Category
COMPANY
Adjusted forAdjusted for Independents
Unadjusted Independents + CovariatesN Dev'n Eta Dev'n Beta Dev'n Beta
1 52 199.63 171.783 101 -20.58 -5.854 179 -101.26 -96.575 56 175.40 159.72
.57 .52
Multiple R Squared .495Multiple R .703
312
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