CHAPTER 1 INTRODUCTION 1.1 Introduction The construction industry is an important sector for a developing country like Malaysia. Although it is not the main industry in Malaysia, it is still important, because this industry affects both upstream and downstream users. The effect of the construction industry is like a ripple effect. It benefits not only the major stakeholders in construction projects, but also material supplies, raw materials, processed materials and so forth. It also affects consumers such as house buyers. It also affects bank, in term of bank loans, not only from the customers, but also from the developer or the contractor. On the big picture, the construction industry spurs the economy of a country to some extent. The construction industry is further divided into several types. There are residential construction, commercial construction, industrial construction and heavy constructions (Shexnayder and Mayo, 2004). Residential construction consists of homes, apartments, and assisted living facilities. Commercial construction deals with office 2 buildings, stores, schools, and any other type of buildings other than homes. Industrial construction, however, deals with manufacturing plants, high-tech facilities and refineries. Heavy construction deals with dams, canals, bridges, tunnels and highways. The construction industry is a labour intensive industry (Langford et al.1995). The construction industry involves a lot of key players. They are client, architect, engineer, quantity surveyor, contractor, sub contractor, blue-collared workers and general workers. The roles of each and every one of the key players are second to none. Each and everyone are dependable on each other. For example, without a civil engineer, there will be no structural drawings. Without a contractor, no one will construct the structure. However, for the context of this paper, only civil engineers will be studied upon. Civil engineers are involved in several stages of constructions. They may be involved in designing, supervising, managing the project, procuring materials, preparing progress report, solving problems on the site and the list goes on. It is often expected of engineers to perform a multi task of job. This is partly because due to the nature of construction industry, engineers are expected to know almost everything. Besides that, they are also expected to do multi tasking. Hence, there is a saying that " An engineer hired, is equivalent to a quantity surveyor, a sales purchase officer, a design engineer, a project manager and an on-site engineer." This shows the importance of a civil engineer towards an organization. The thesis is not a study of management philosophy, construction techniques or problems in construction. However, it focuses on the human resources issues. In view of this, it is exploring the needs of employees in terms of motivation, focusing on the needs of civil engineers in the construction industry. The importance of identifying the needs of this technical profession is vital for construction managers to retain them. This is based on the belief that the core of a company is the employee. The employees are the driving 3 force for a company. When employees are satisfied and happy, their effort brings returns in magnitudes. They not only tend to achieve their personal goals, but indirectly, they help to achieve the firm's goals as well. This in the end helps in gaining competitive edge for the company. Motivation is the driving force in individuals that drives them physiologically and psychologically in order to pursue their goals and needs. There are two types of motivation, extrinsic and intrinsic. Intrinsic motivation is about self-fulfillment in completing a task, while extrinsic motivation is regarding tangible awards, such as money and benefits (Lam & Tang, 2003). In order to keep employees happy, managers need to know what motivates the employees. Besides that, understanding the motivational needs of employees is very crucial. If the employees' needs are ignored, or unfulfilled, or made in such a way that it is beyond the employees reach, the end result will be unsatisfied employees. When they are unhappy, they tend to look elsewhere for better options, for greener pastures. As mentioned earlier, employees are the core of a company. Without them, is like a car without fuel. Thus, without employees or with unhappy employees, the driving force is depleting or gone. With the emergence of new management philosophy, such as Total Quality Management, Just In Time Management, Lean Engineering, Business Process Engineering, Benchmarking and even Knowledge Management, there is no doubt that such management philosophies focus on management effectiveness and gaining competitive edge. These management philosophies also emphasizes on the integration between employees with the overall company's objectives, goals, and also working environment. There is no denial that motivation plays a role in such management philosophy. Thus, this shows that motivation should not be taken lightly anymore. It should be integrated at every part and level of an organization to ensure not only a good working environment, but most importantly, to ensure that your employees work for you, effective and efficiently, without any complaints. 4 1.2 Problem Statement "A frequent observation of young engineers indicates that many of them are unhappy in their jobs. This is in spite of the numerous internal and external training programs attended by an increasing number of engineering and technical supervisors. Why do trained supervisors often fail in motivating young engineers?" (Westbrook, 1982) "The United States Air Force is currently experiencing a severe shortage of scientific, engineering and technical personnel…" (Rumsey and Moor, 1982) "…job satisfaction is significantly lower among military officers than among their civilian counterparts, it was desired to explore the motivational factors among this group of base-level engineers in order to determine whether local supervisors could significantly affect job satisfaction and motivation…" (Rumsey and Moor, 1982) " Motivation has become one of the most widely discussed concepts in general management. Although it has not generated the same enthusiasm in the construction industry, substantial efforts have been made to apply the concept to construction operatives" (Olomolaiye & Price, 1989) " Despite the significant improvements being made by modern technology to equipment, materials and methods of design and construction, actual productivity in the construction industry is often seen as being below par when compared with that within other 5 industries. Some industry experts point to the need for better management of human resources" (Mansfield & Odeh, 1991) "It has been estimated that there is a shortage of about 17,000 engineers by the year 2000 of which civil engineers account for about 30%" (Gue, 1996) " Management's failure to reward engineers with motivations beyond those appealing to non professionals has resulted in a higher rate of turnover among the former than among the latter group on comparable organizational levels" (Petroni, 2000) " There is a growing need to retain engineers in the workforce beyond traditional retirement age. However, little research has been conducted in the area of the motivation and therefore, retention and productivity- for these valuable employees" (Robert, 2002) " Workers on civil engineering projects are frequently confronted with problems that could lead to demotivation" (Ng et. al 2004) The quotations above show the problems that are faced in the construction sector today. Although attention has been focused on the issue of motivation among engineers 20 years ago, the issue of motivation and meeting the motivational needs of engineers still present today. This also shows the seriousness of losing engineers to other firms, and that attention should shift to how to motivate and retain engineers. In today's society in Malaysia, the supply of engineers, especially in the construction industry is less than the demand. The lack of engineers or the small pool of engineers available causes a high demand for engineers. When the demand is high, certainly construction firms will try to attract and retain engineers into the firm. This may 6 be done by offering higher salary. This has caused construction companies facing risk of losing their engineers to other firms, which offer better benefits. Besides that, when engineers know that they are highly in demand, they have better options when it comes to work. They also may be tempted to leave their current firms to look for greener pastures. According to Hessen (2000), who conducted a study on design engineers, the increase in demand has caused design engineers to have higher salary expectation at all levels. Employees are important towards the firms they work at. Good employees are assets to the companies they work for. The same goes to construction firms or design firms. Construction professionals such as engineers, architect, quantity surveyors or project managers are valuable to the firm. Their expertise is so valuable in such a way that it provides the winning edge for the firm they work in. Losing good employees will affect the performance of the current firm. When an employee leaves, so does his/her expertise. One's departure may also affect the morale of the people whom he worked with, or his subordinates. The rippling effect is devastating to the firms. Fitz-enz (1997) stated that the average company loses approximately $1 million with every 10 management and professional employees who leave the organization. He also noted that with addition to direct and indirect costs, the total cost of an exempt employee turnover is a minimum of one year's pay and benefits, or a maximum of two year's pay and benefits. Furthermore, it is difficult to find an identical replacement, in terms of knowledge, abilities, capabilities and expertise. This is because, in engineering, a fresh graduate's universities knowledge may not be enough in the working field. A fresh 7 graduate still have to start from the basic level, in order to learn the tricks of the trades. Only after working for sometime, one will be able to master his/her trade well. And only when they are more experienced and more capable in their expertise, will they become more valuable and marketable. Thus, it is hard to replace an experienced engineer. If a fresh engineer is hired to replace the more experienced engineer, the fresh engineer needed to be trained from the basic again. Here, much time and money is lost here. Time, is something that construction firms lack of, and time is also sometimes the winning edge to be competitive. According to Bessell et al. (2002), managers often fail to utilize motivation in order to retain their employees. This is partly because they lack sound understanding of motivation, or it could be they fail to understand the needs of their employees. This is further supported by Oglesby et al. (1989), who claimed that most managers thought what motivates them, would therefore motivate their employees. Therefore, managers used the wrong techniques in retaining their employees. Oglesby et al. (1989) quoted, "Since measurements of the effect of money on productivity are undependable, the assumption is that it is a motivator. For on-site managers, the alternative approaches to motivation are often unknown, untried, tricky or frightening. Who knows, money may work." Besides that, the motivational needs may vary from age groups. The needs for younger engineers may differ from the needs of senior engineers. However, there has been a lack of attention in this area. Managers usually assume that all employees will be motivated by the same motivational needs. This may be true to a certain age groups of engineers, but it may not be true to other age groups of engineers. Such failure in 8 understanding the needs of the employees will create a backlash in employees' motivation. Engineers in general, are rather unique and secretive individuals. Their behaviour and needs are different from accountants, lawyers, salesman or even entrepreneurs. Engineers are usually very task oriented, and they believe in achieving personal goals and organizational goals. From the nature of their work, and their behaviour, engineers' motivation needs varies as compare to other profession. How significant are the difference, is anybody's guess. Due to their unique behaviour, their working environment, as well as their motivation needs should be tailored to the engineer's needs. In saying so, how much is known about engineers in general, and civil engineers in particular? Having compared the needs of civil engineers within their own age groups and with other profession, lets not forget about intrinsic and extrinsic motivation. Are civil engineers extrinsically motivated? Do they look only for monetary rewards? Perhaps, they may be intrinsically motivated. 1.3 Aims and Objectives of Research There is no deny that a lot of key factors are involved in order for a construction firm to be successful not only in the context of construction project, but also successful in meeting the firm's goals. Having said that, it is an understatement to say that employees' motivation does not play a part in it. Indeed, this topic is often overlooked and neglected because most people looks at the big picture, but neglect the finer details of an artwork. 9 Thus, it is with a strong hope and desire that, with this research, I could come out with a comprehensive study on what motivates civil engineers. This will further break down into the motivational needs of civil engineers. Very much often, in Asian cultures, monetary benefit plays a big part in our work, as well as motivation. This research will further emphasize and lists out possible needs that civil engineers consider important to them. Besides that, this research will also stresses on the demotivators of civil engineers work. This is to provide a better understanding of what demotivates or inhibits them from a satisfactory work in a day. This, will indirectly points out the problems that civil engineers faces in their work place. And from there, a corrective action may be suggested and discussed to provide a better understanding on the needs and the demotivators. Below is a list of the aim and objectives of this study 1. To study on the motivator of civil engineers in construction 2. To find out on the demotivators or the dissatisfiers of civil engineers in their work 3. To identify if engineers are extrinsically or intrinsically motivated 4. To suggest how managers can retain and motivate their engineers 1.4 Scope of Study The scope of this study is on civil engineers involved in the construction sector which includes design engineers and construction engineers. Civil engineers in the academic fields and other disciplines such as sales, marketing or anything beside 10 construction are not included in this study. There is no limit in age as one of the objectives is to study how the age factor affects the motivational needs of civil engineers. This research will focus only on local engineers. With this research, it provides a collection of field data and analysed data of motivational needs for civil engineers. Not only will it benefits the engineers themselves, but also it will provide a platform for managers to make their engineers happy, to keep them and to retain them in the firm. 1.5 Research Methodology This section shows the process of achieving aims and objectives of the research. For problem statement and literature review, reading materials such as journals, books, and conference papers are used to provide in depth coverage of literature review and the problem statement. Nevertheless, the Internet is not to be forgotten as it is also used as a portal to obtain necessary information to assist in this research. Questionnaires are used to obtain necessary data from the targeted group of study. From the data collected, an analysis is conducted and the result will be used to derive the conclusion and the recommendation. 11 1.6 Organisation of the Thesis This thesis is made up of six chapters. They are: Chapter 1: It highlights the introduction of the subject of study. It also stresses on the problems statement, aim and objectives, and research methodology of this study. Chapter 2: This chapter reviews on the role of civil engineers in constructions. It also provides an introduction of civil engineers, from the past until today. This chapter also highlights on the behaviour of civil engineers. Chapter 3: This chapter highlights the introduction of motivation and the basics of motivational theories. It also focuses on intrinsic and extrinsic motivation, motivational needs and motivation in construction. Chapter 4: This chapter reviews on the research methodology and also focuses on the preparation of questionnaire. The process of data collection and data analysis is also highlighted in this chapter. Chapter 5: This chapter focuses on the analysis process of the data collected from the questionnaire. A mathematical and statistical approach is used to analyse the data. Chapter 6: This chapter, focuses on the conclusion and recommendation on the motivational needs of civil engineers. This chapter serves as a good platform for 12 discussion as certainly some of the queries raised before will be answered. Nevertheless, to every answered question, there will be ten more new questions.