RECRUITMENT SOURCES AND EMPLOYEE TURNOVER IN ...

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

CONTENTS

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

11

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




8.7 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 8.17 Source and Age at Recruitment 161






Figure 8.23 Length of Service 165



Figure 8.26 Employees Above/Below Mean Service 166

Figure 8.27 Source and Mean Service Produced 167


Figure 8.29 Organisation No3 % Recruited by Source 171

ix

Page Number











' Figure 8.40 Source Variance from Mean Service 177

Figure 8.41 Organisation No4 % Recruited by Source 180












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 8.8 Quit Rates for Organisation No3 177


' Table 8.10 Quit Rates for Organisation No4 188


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

Chapter 1.0

INTRODUCTION

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

Chapter 2.0

THE CONSTRUCTION INDUSTRY

14

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

Chapter 3.0

ORGANISATIONS,

PEOPLE AND

MOTIVATION

27

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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32

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

Chapter 4.0

LABOUR TURNOVER

AND

RECRUITMENT PRACTICES

57

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

Chapter 5.0

RAMIFICATIONS OF TURNOVER

81

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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8 recruitment- I..planningresource utilisation

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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

Chapter 6.0

SYNTHESIS

OF THE

RESEARCH

101

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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103

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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Chapter 7.0

METHODOLOGY

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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.

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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.

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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.

141

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.

142

Chapter 8.0

RESULTSOF THE

RESEARCH

143

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.


1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

No 1

X X X X _ X - - X _ _ _ - - x


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


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.


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


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.


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



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


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.


<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


-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


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.


1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

No 3 - - - - - x - - - - - - x x x



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


0.9"

48.51%

45 •"•

F509+561,653,5552,55=M:521

3

Figure 8.29


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.


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


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.


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


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.


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



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%


Source 23.48%

El is U 25-12s 13s E 15.

Figure 8.41

13s

45 E

2s

is


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.


-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


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


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.


1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

No 5 x - - - - - - - x x x x x x



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


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


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


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


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


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

Chapter 9.0

DISCUSSION AND ANALYSIS

OF THE RESULTS

201

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







5 Preferred 14 46.23 1.42 nil in periodBetter* 10 7.14 18.43Worst 14 46.23 1.42


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

Chapter 10.0

CONCLUSIONS ANDRECOMMENDATIONS

FOR FURTHER RESEARCH

211

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

APPENDIX 1

ORGANISATION RESPONSES

224

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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296

APPENDIX 3

ONE-WAY ANOVA

297

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

*

9

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415

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6

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2

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3

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

1.4982 Src 31.5500 Src 121.9880 Src 22.0161 Src 12.0420 Src 62.3443 Src 72.7167 Src 92.7800 Src 112.8500 Src 103.7267 Src 4

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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

APPENDIX 4

TWO-WAY ANOVA

No. 1

303

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


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

APPENDIX 5

TWO-WAY ANOVA

No. 2

308

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 * * *


Variable + CategorySOURCE

N


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 ***


Variable + Category

COMPANY


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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