HUMAN RESOURCES MANAGEMENT IN MALAYSIAN CONSTRUCTION INDUSTRY

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1 HUMAN RESOURCES MANAGEMENT IN MALAYSIAN CONSTRUCTION INDUSTRY Zakaria Mohd Yusof 1, Mohd Saidin Misnan 2, Sarajul Fikri Mohamed 3, Norazam Othman 4, Juliani Jamil 5 1,2, 3,4,5 Department of Quantity Surveying, Faculty of Built Environment, Universiti Teknologi Malaysia, UTM Johor Bahru, Johor, Malaysia b-zyusof@utm.my ABSTRACT Workforce development is one of the main agenda in the Tenth Malaysia Plan (10MP). The main emphasis is on skills training to ensure that the human capital meets the need of the industry. The construction industry is no exception. A quality and skilled human capital are important to ensure that the planned development can be achieved. However, the careers in construction are less preferred by the local youth. Most of the workers in construction industry are foreign. The purpose of this study is to determine the number of local trained workers produced each year by the public construction skills training institutions (CSTI) in Johor. The other objectives are to identify the perception of current trainees toward the construction industry and the reason affecting the trainees to be trained in construction related skills. To achieve the aims of the study, two set of instruments are produced. The study found that, the averages of trained workers produced each year are only 269 people. The survey conducted show that the perceptions toward the career prospect in construction are low and most of the trainees choose to be trained in CSTIs merely because of the benefit received during the training. Keywords: Human Resource, Malaysian Construction Industry, Skill Training. 1. Introduction Human capital development is an important issue that is often discussed, especially in the new millennium. The discussion do not only involves macro level but also at the micro level. This shows that most of the countries are aware of the requirements and development of human capital in the era of globalization including Malaysia. The national progress and the development of technology had changed the pattern of the current workforce. The ability to maintain the productivity and competitiveness in the international arena is one of the key factors for economic and industrial growth in Malaysia. Competitiveness and industrial productivity will be affected by the highly motivated, skilled and educated workforce. Therefore, the future generations should be exposed to the sufficient information in order to produce skilled and educated human resources and technology towards achieving the national goal of Vision In order to produce a skilled workforce, enhancement has been done by increasing the number of public training institutions, adding further courses in technical fields, strengthening the system of standards and quality of technical education and encourage private sector participation in this exercise (Noor Aini and Ishak Yusof, 2009). Eventhough there is a lot of human capital development programmes undertaken by the government and certain private bodies, labour shortage still become the biggest concern. Thus, we had to rely on foreign workers, particularly in areas such as agriculture, industry and construction. Before independence, Malaysia had a population of just 7.4 million. The population has grown rapidly, such that by 2005 the country had 26.8 million people and, on current estimation the number will rise nearly 29 million. Apart from natural increase, population growth also reflects a steady influx of immigrant 179

2 labour, primarily from Indonesia, the Philippines, Bangladesh, and Nepal (Yusof and Bhattasali, 2008). The used of foreign workers in the construction industry growth rapidly due to several factors. One of it is due to the inability of the local manpower to fulfill the demand. Chandranayagam D. (2009) stated that the inability of the local manpower is due to some reasons. They do not want to take up the 3D job that is dirty, dangerous and difficult work. The increasing needs of the Malaysian workers were not reliable in term of punctuality or even turning up for the job. Malaysian Country Report (2009) also stated that the local citizens are not interested in the construction sectors working environment due to an unattractive payment structure and service terms that do not guarantee job security. In the Master Plan (2008), an estimation of required workers from 2006 until 2020 according to the industry had been published and the amount needed are 111,500 people. Due to this estimation, this study was conducted to determine how far the total output of skilled manpower that can be produced by CSTIs. The trainee s perceptions towards construction industry were also been measured. However, the scope of this study is limited to the state of Johor only. 2. Perception on Construction Industry Kamus Dewan (1991) stated that perception is a picture or shadow of the heart and/or mind of someone (about something), view (through the senses) and responses. Perception is the process of preparation and administration of mind, acquired through the senses that give meaning to the environment. Consistently, studies on perception have shown that individuals might see the same thing but they may have different interpretation (Robbin and Coulter (1999). In the eyes of the local youth, the work in construction industries regarded as a low job status. According to the report by International Labour Office (2001), the youth in Malaysia would rather be unemployed than working in construction industry. These are due to the several reasons like working environments, wages and benefit obtained as well as career prospects in construction industry. 2.1 Working Environment According to the CIDB (2004), there are several causes why the local workers were less keen to participate in the construction sectors; the practice of wages payment by day, uncomfortable work environment and the safety at construction site, the contractors also contribute to the pattern of the sector, when they tend to employ foreign workers rather than local. This is also supported by Bodapati and Naney (1998) which stated that working environment in construction are not attractive whereas the scope of work are difficult, with unsuitable atmosphere and the nature of work sometimes considered as dangerous 2.2 Wages and Benefit ILO (2001) reported that in many countries, piece work is the predominant wage form for temporary worker in the construction industry. Most of them are forced to work for long hours. Others choose to do so, either because the rates of payment are so low or simply because they want to earn as much as possible while work is available. In the United States, recent research revealed that self employed construction workers are paid per shift and the shift is normally ten to twelve hours per day for six day per week. A research conducted by Abdul-Aziz (2001) revealed that most factors that pressing concern both local and foreign worker in construction revolved around of the social security, occupational safety and living condition on site. 180

3 2.3 Career Prospects According to ILO (2001), public has considered construction sector as a sector which offer a vague career path. Dale Wissman (2002) mention that construction sectors was identified as a sectors that has a tough job, lower paid, inadequate training and an industry which has limited career path. London West Learning and Skill Council (2004) in their report Building Your future has reported similar factors that prevent a person from choosing the construction industry as career choice. These factors include: 1. The image of the industry itself 2. Culture in the construction industry 3. Career prospect are not clear 4. Recruitment is not systematic 5. Lack of support from certain parties to encourage local residents to choose the construction industry as career 6. The focus at the school level is stressed to the purely academic of vocational subject 7. Lack of information resources in the schools that provide vocational training 8. Lack of awareness among career advisor about the opportunities offered by the construction industry in terms of income and career development. 3. Factors affecting the career choice Bockert (2002) suggested three most influential factors that will contribute to the career choice among the teenager are the environment, personality and opportunity. The result from the research shown that, the factors that most influence the student in career choice is their own personality, followed by the opportunity and the environment. Whereas Yahaya and Fariza (2002), stated that, there are four factors influencing career choice, which are the student interest, external factor, career counselling and job situation. The findings indicated that job situation is a factor influencing students in making career choices. Findings in a study conducted by Adnan et al (2006) also supported these statements. However, student personality showed some has influence in the career choice (Yahaya et al,). Kappia et al (2005) stated that formal careers information, family influences and informal social networks must be considered as equally important in the career choice of new entrants to the construction industry. A research conducted by Chileshe and Haupt (2008) had indicated that salary, working conditions, opportunities for promotion and lifelong learning are likely to be the most important factors for high school students considering a career within the construction industry. Study also found that, male students were more likely to be influenced by salary, working conditions, opportunities for promotion, as well as status and prestige in joining the construction industry. On the other hand females are more likely to be influenced by the teachers and counsellors. Amir Awang (1982) in his study stated that the important factors influencing the choice of vocational among adolescents are their ambition or aspiration, self esteem, parents occupation, prestige, socioeconomic status, parental requirements and personal characteristics such as interests and abilities. Study conducted by Mahdi (1998) showed that family has a significant relationship with career choices of students instead of school and academic achievements. This indicates that the school does not play a significant role in shaping students' career. 181

4 4. Methodology 4.1 Sample Respondent of this study were divided into two groups of respondents from CSTIs and using two different types of questionnaires. First group were the representative from the management and second group were among the trainees from the selected CSTIs. There are (3) CSTIs within the state of Johor which offer construction related training programmes. There are Akademi Binaan Malaysia (ABM), Kolej Kemahiran Belia Negara (KKBN) and Pusat Giat Mara (PGM). Among the respondents, 48% were from Kolej Kemahiran Belia Negara, followed by 44% were from Akademi Binaan Malaysia and the other 8% were from Pusat Giat Mara. The academic qualification among trainees are varies from standard six up to university level. 5% of the trainees have basic educational which is standard 6, 7% form 3, 4% with PMR certification, 77% with SPM and only 7% among them have other qualification further than SPM. 5. Discussion of Finding The data then analysed using Microsoft excel and SPSS The results are shown as below. Table 1: supply of construction skilled manpower from year from Johor state Table 1 shown the result obtained from the management representative of CSTIs which showed that the number of place offered (O), enrolment of trainees (E) and graduated trainees (G) from 2006 to The data revealed the current trend and amount of skilled workers that can be produced each year by the selected CSTIs. For ABM, out of 2,610 places offered, the enrolment only 1,170 or 44.8%. For KKBN, out of 500 offered, only 137 or 27.4% enrolled while for PGM, only 46.3% enrolled. Overall, for a period of five years, there are only 42.3% or 1,418 enrolled in construction related skills programmes in Johor. Out of that number only 1,343 completed the training programmes. It is also revealed that the amounts of skilled construction workers produced each year are declined. Table 2: Trainee Perception on construction industry Perception Aspect Mean Significant Ranking Work Environment Wage and Benefit Career Prospect

5 Table 2 above shows the perception among trainees on three aspects; work environment, wages and benefit, and career prospect. It is found that the career prospect is the worst perception, followed by the wage and benefit and the working environment. This result has been in line with ILO report (2001) where it reported that, public has considered construction sector as a sector which offer a vague career path. Dale Wissman (2002) also mentioned that construction sectors was identified as a sectors that has a tough hob, lower paid, inadequate training and a industry with limited career path. Table 3: Factors influencing the trainee to be trained in CSTIs Factor Mean Significant Ranking Source of the information Internal Factor External Factor Course Benefit Table 3 above shows the factors influencing the trainee to be trained in the CSTIs. It is found that, the factor that influence most is the course benefit obtained during the course followed by the external factors, internal factors and source of information. However, the result found in table 2 is contradicted with a research conducted by Bockert (2002) that, the internal factors or their own personality is the most influence factor in career choice. 6. Conclusion As a conclusion, from all the placed offered, the amounts of enrolment are low and do not achieve 50% from the offered place. The amount of the graduated from the enrolment does not achieve 100% which means there is a drop out during the training period. The low number of enrolment may be due to the negative perceptions toward the industry itself particularly in the career prospect. Most of the trainees choose to be trained in construction course related because of the benefit obtained during the course. Among the benefit include the allowance offered as well as the interaction with people in the industry. Hence, in order to increase the number of enrolment, some reforms are needed. The public perceptions on the construction industry need to be addressed and corrected especially in the career prospect since this industry offers a large amount of work with a high income within the specific skill. In addition to that, the information on career and opportunities in construction industry need to be addressed at the early stage of education. As this study only limited to the state of Johor only, it is suggested that another study which covers the whole country should be carried out, so that more accurate findings can be obtained. The result will be useful to the construction industry to outline the right strategies in the future. REFFERENCES Abdul-Aziz Abdul-Rashid (2001) Site Operatives in Malaysia : Examining the foreign local asymmetry. Unpublished report for ILO 1995 : Foreign Labour in Malaysian Construction Adnan Ahmad, Sukri Saud, Norida Mohd Shariff (2006) Pemilihan Kerjaya di Sektor Pembinaan oleh Pelajar Pengajian teknik kursus kejuruteraan awam: satu tinjauan. ICIC Borchert, M (2002) Career choice factor of high school student. The graduate college. University of Winconsin Stout. Menomonie CIDB Malaysia (2004) Tinjauan Industri Binaan , Lembaga Pembangunan Industri Pembinaan Malaysia (CIDB) 183

6 CIDB Malaysia (2009) Malaysian Country Report, Lembaga Pembangunan Industri Pembinaan Malaysia (CIDB) International Labour Organization (2001), Tripartite Meeting on the construction industry in the twenty first century: its image, employment prospect and skill requirement. Geneva. Kamus Dewan (1991). Dewan Bahasa dan Pustaka Kementerian Sumber Manusia (2008), Pelan Induk Latihan dan Pembangunan Kemahiran Pekerjaan Malaysia :Tenaga Kerja Mahir Memacu Daya Saing Global Malaysia. Promax Marketing. Malaysia Robbins, S.P. and Coulter, M Management New Jersey: Prentice Hall international, Inc. Syed Nasir Syed Mahadi (1998) Faktor-faktor pemilihan kerjaya pelajar. Ijazah Sarjana Sains Pengurusan. Universiti Utara Malaysia. Yahaya A and Fariza Kassim (2006) Faktor-faktor yang mempengaruhi pelajar tingkatan empat dalam pemilihan aliran kejuruteraan elektrik dan elektronik sebagai pembentuk awal kerjaya di sekolah menengah teknik di Tawau, Sabah. Universiti Teknologi Malaysia. Yusof, Z.A and Bhatassali, D (2008) Economic Growth and Development in Malaysia : Policy Making and Leadership. Working paper no.27. Commision on Growth and Development. The World Bank. Washington. 184

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