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Current Practices of Human Resource Management (HRM) in Thai Construction Industry: A Risk and Opportunity Perspective

Review of Integrative Business & Economics Research 07/2012; 1(1):1-14.

ABSTRACT Construction industry accounts for a significant portion of world economic activities,
especially in emerging economies where infrastructure developments are much
needed. Construction industry is typically characterized as a labor-intensive and
low-tech sector. Meanwhile, it is also the sector consistently found the least
productive. Commonly cited reasons for such poor performance in this sector are
fragmentation, project-based culture, and temporary teams. These factors have
something in common; they pointed to the difficulty in managing human resources.
Therefore, one way to increase the performance of this sector is to leverage more on
human capital through the use of human resource management (HRM). In this paper,
we provide an overview of previous research on HRM, especially in construction
industry. We also investigate into the effect of HR policies and practices on three
critical success factors of a construction project: time, cost, and quality. To this end,
we develop a model comparing and contrasting the current HR practices (1) between
construction industry and other industries and (2) between companies in construction
sector and those in other sectors in Thailand. Finally, we provide the critical analysis
of the risks and opportunities of the current HRM practices adopted by Thai
construction companies in domestic and international markets.

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