CHAPTER ONE
INTRODUCTION
1.0 BACKGROUND TO STUDY
The Nigerian Construction industry is deemed to operate by diversified workforce, hence managing human resource issue deems to be a challenging task. However, as the role of Human factors in the process of business and productive activities, Human Resource Management is the key factor which has the immediate impact to the organizational structure, especially in the Construction Industry, so Human Resources are the most valuable source of Capital, (Phan, 2012)
According to Wikipedia (2001), HRM is a function in organizations designed to maximize employee performance in service of their employer’s strategic objectives. HRM is primarily concerned with how people are managed within organizations, focusing on policies and systems. HRM departments and units in organizations are typically responsible for a number of activities, including employee recruitment, training and development, performance appraisal, and rewarding (e.g., managing pay and benefit systems). HRM is also concerned with industrial relations, that is, the balancing of organizational practices with regulations arising from collective bargaining and governmental laws. HRM is the process of managing people in a company/firm as well as managing the existing interpersonal relationships. These two processes are key in the success and growth of a business. Human resource management is the management process of an organization's workforce, or human resources. It is responsible for the attraction, selection, training, assessment, and rewarding of employees, while also overseeing organizational leadership and culture and ensuring compliance with employment and labour laws (Anthony and Kothai, 2014)
HRM is a product of the human relations movement of the early 20th century, when researchers began documenting ways of creating business value through the strategic management of the workforce, (Wikipedia 2004). HRM is concerned with managing people within the employer-employee relationship. Specifically, it involves the performance of people in achieving the organization's objectives and the satisfaction of personal employee needs. HRM can be a major contributor to the success of the enterprise. HRM has been regarded in various industries as one of the most critical elements of business success. The successful implementation ofHRM functions are elements for improving personal, team and organizational performance, Dainty, Belout and Gauvreau, (2004). A number of authors state that the basic functions of HRM include planning, job design devising position descriptions, employee selection/recruitment, employee training, performance appraisal systems, reward systems, employee relationships and employee's health and safety according to Druker,  Maloney, Bratton Gold, Koch, Loosemore and Ramlall (2003). HRM substantially influences the output of business, for example, on quality, technology, competitive strategy and development. Furthermore,HRM should include practices, which provide training and development opportunities for all employees to improve individual skills and flexibility of roles (Mullins, 1999).
Human resource management has a significant influence in the QS firms. Although construction technologies and management techniques have advanced rapidly, project managers still need to pay more attention to people management. Human resources still account for the majority of costs in most construction projects (Loosemore et al., 2003). International construction projects normally require a longer time span and more parties are involved (Chan and Tse, 2003). HR issues have positive and adverse implications for construction industries in all countries (Ofori, 2003). HRM is also a significant aspect of the whole planning and project management  process in construction projects, in particular international construction projects that involve foreign firms as collaborators or competitors (Bon and Crosthwaite, 2000; Mawhinney, 2001).
The complex international construction climate, caused by increased global price competitiveness, development of technologies, changing industry and employment legislation, and changing workforce composition has prompted project managers to utilise their employees more effectively to gain competitive advantage and project success. In recent years there has been a widespread realisation that improvement ofHRM performance is a critical element to achieving improvement in efficiency, productivity and cost effectiveness in the construction industry. Howes and Tah (2003) describe how the situational model of HRM, the staff performance model of HRM and the socio-technical model of HRM are being implemented in the construction industry.
In view of this research, the aim of looking at the relationship between HRM and performance of contractors’ organisation in the Nigerian construction industry is based on the review of the research questions. This will aid us to know level at which HRM practices has improved the performance level of the contractors’ organisation in the Nigerian construction industry as well as its contribution to the Economy.