AURECON Singapore: Project Report on Labour Management Issues

This project report delves into the management challenges faced by AURECON Singapore, particularly concerning skilled labour shortages and retention. The report begins with an introduction and company overview, highlighting AURECON's operations and key personnel. The core of the research identifies the problem of attracting skilled labour to enhance competitiveness. A comprehensive literature review explores existing research on skilled labour, its impact on productivity, and the importance of training and corporate culture in employee retention. Industry and company research provide context, emphasizing the construction industry's difficulties in retaining skilled workers. The study then applies management models and theories, including TOWS strategy and the 7S framework, to analyze internal strengths, weaknesses, opportunities, and threats. These frameworks offer strategic recommendations, such as new training programs and changes to corporate structure, to improve labour management. The report concludes with findings, a summary of the challenges and proposed solutions, and references to support the research.

Running Head: Business Management
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Project Report: Business Finance

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Contents
Introduction.......................................................................................................................3
Company overview...........................................................................................................3
Research problem.............................................................................................................3
Literature review...............................................................................................................4
Industry and company research........................................................................................6
Models and theories:.........................................................................................................7
Tows Strategy:..............................................................................................................7
7sFramework................................................................................................................9
Findings and summary....................................................................................................11
Conclusion......................................................................................................................12
References.......................................................................................................................13

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Introduction:
The report explains about the management issues in AURECON. It explains about the
various management issues in the organization and few strategies and techniques to resolve
those issues. For solving the management issues and challenges, various new management
thoughts have been studied and determined. The report explains about the various studied of
managers and the solution for the management issues in the organization. Firstly, the research
problem has been evaluated and on the basis of research question, various management
theories and management thoughts have been studied. Further, industry and company
research has also been done. For solving the management issues, tows Blue Ocean and 7s
framework has been evaluated.
Company overview:
AURECON Singapore is a private company which is owned by a trust. It is an
engineering, planning, design, project management and company consultation company in
Australia and South Africa. Company has been founded in 2009 and 7500 people are
employed by the organization. Currently, company is offering its services in 27 countries
through 80 offices. Key people of the company are Teddy Daka, Giam Swiegers. Total
turnover of the company is Australian $ 820 million dollar. The organization provides the
consulting services in various areas such as water resources and supply, purification, heavy
engineering, structure and building, infrastructure services, roads, transportation and
environmental science.
Research problem:
The research problem of this paper is that how the company could attract skill labour
in relation to be more competitive and advanced in market. The research paper concentrates

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on the management challenges and the issues in the organization and it briefs that how the
problem could be resolved?
Literature review:
Ball (2014) has explained into his study that skilled labour enhances the productivity
of a business. Skilled labour is the main key for innovation and growth of a company by
generating the new knowledge, supporting the firm to identify the business opportunity, by
developing the incremental operations etc. Powell, (2003) explains that skilled labour is
highly educated people who have graduated a territory level of education. Further, Azhar,
Farooqui and Ahmed, (2008) explains that the skilled labour is a segment of labour which
specialize training, know-how to carry out more mental or physical task than the routine job
operations. Bilginsoy, (2003) explains further skilled labour is quite essentially for global
competitive world. In developing countries and developed countries, organizations are
looking forward to hire skilled labour so that their productivity could be managed.
Future various rapid changes would take place in the market of skilled labour.
Currently the requirement of skilled labour is quite higher in the market. Skilled labour
manages the productivity of the business (Tabassi and Bakar, 2009). Skilled labours are
generally higher paid; more trained and have more duties and responsibilities than unskilled
labour. In Singapore market, it has been evaluated that skilled labours are required for the
market to manage the performance and the position of the company (Azhar, Farooqui and
Ahmed, 2008). Skilled labour is competitive for a company to set a position in the market.
Further, it explains by Fugar and Agyakwah-Baah, (2010) that the skill requirements of
organizations and jobs are changing rapidly and basically, the employer is determining the
changes in the job profile. Though, it has been evaluated that the employer determines the
skill requirements of a job (Abdul-Rahman et al, 2006). A job could be done in better way by

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the skilled labour than unskilled labour. Whether in a big, small or medium organization,
skilled labour is always required by the companies to manage the performance.
Zou, Zhang and Wang, (2007) explains that a business could enhance their ability to
improve, attract or retain the productivity by applying a process of “PRIDE” process. PRIDE
process could be explained as follows:
P- Provide a good working environment
R- Reward, recognize and reinforce the behaviour
I- Involve and Engage
D- Develop potential and skills
E- Evaluate the measure (Rojas and Aramvareekul, 2003)
This process makes it easy for an organization to evaluate and measure the
performance and attract, enhance and retain the employees and skilled labour of the
company. Though, in current days, it is becoming tough for the organizations to recruit the
skilled labour especially in AURECON Singapore. Further, it has been found that the
corporate culture and the training process of an organization could also help an organization
to manage the skilled employees and retain them (Khadria, 2002). In construction
management company, attracting and retaining the skilled labour is quite tough as there is
huge lack of skilled labour in the industry. The shortage of skilled labour affects the
construction company on a large manner (Fellini, Ferro and Fullin, 2007). Effective corporate
culture could come in a good form to safety and healthy measure for employees which would
attract the employees and would insist them to retain in the organization.
In addition, it has been argued by O'Mahony, Robinson and Vecchi, (2008) that a
good corporate culture is not that much helpful for an organization to attract, retain and

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improve the productivity of skilled labour of an organization. Organization should offer great
training to the labour to retain them in the company. Training is a good way to retain the
existing employees in the company and attract new hires for the company (Alburo and
Abella, 2002). Training could come in various forms such as on the job training, lunchtime
guest speakers, online courses, safety training and more. In construction company, where
labour are often jump from one contract to other contact, providing opportunities and training
even for short term to improve their skills would make a huge difference in organization’s
ability to attract and retain the labour.
Bhorat, Meyer and Mlatsheni, (2002) explains that skilled labours are always highly
educated individual who have graduated a territory level of education. So, it becomes
important for the organizations to manage and use their skills and attitude in right manner and
must offer them compensation accordingly so that they could be motivated to retain in the
organization. Further, Lowell, (2001) explains that the skilled labour is a segment of labour
which specialize training, know-how to carry out more mental or physical task than the
routine job operations. Wickramasekara, (2003) explains further skilled labour is quite
essentially for global competitive world. Future various rapid changes would take place in the
market of skilled labour.
Industry and company research:
AURECON Singapore is an engineering, planning, design, project management and
company consultation company in Singapore, Australia and South Africa. The company is
performing its operations under Construction Company. The evaluation on construction
company explains that the in the construction industry, attracting and retaining the skilled
labour is quite tough as there is huge lack of skilled labour in the industry. The shortage of
skilled labour affects the construction company on a large manner (Chaloff and Lemaitre,

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2009). Construction companies rare required managing a good corporate culture which would
help the organization and the labour to manage the safety and health measures which would
attract the employees and it would insist them to retain in the organization. In construction
company, where labour are often jump from one contract to other contact, providing
opportunities and training even for short term to improve their skills would make a huge
difference in organization’s ability to attract and retain the labour (Arvanitis, 2005).
In case of AURECON Singapore, it has been evaluated that the company is facing
shortage of skilled labour and sue to which the market position and competitiveness of the
company is getting affected. Company has changed various strategies and the policies to
manage, attract and retain the employees. The company has faced huge losses due to high
employee turnover and it has taken place due to lack of training programs and effectiveness
of employer towards the labour.
Models and theories:
Few models and theories have been evaluated to resolve the issue of skilled labour in
the company. Following are few models:
Tows Strategy:
AUREMON could take the help of following strategies to manage the
skilled labour:
External opportunities External threats
Internal Strength Certified professional
trainers
High quality and attractive
Always selective in terms of

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Corporate culture
Innovation and technology
Capacity, knowledge and
experience
Vocational education centre
team selection
Always follow the latest
strategies (Arvanitis, 2005)
Optimization of sales
Better training programme
Legal requirements and
safety standards
Internal Weakness Number of competitors
Lack of skilled labour
High rate of labour
Lack of research of
diversification
On the job training
Reimbursement and rewards
Evaluate the measure
(Mahroum, 2001)
Evaluate the market position
Measure the market
standards
Competition position
Industry trends
Above matrix explains that the company is facing huge problem in context to manage
the performance and the position of the skilled labour in the organization. It explains that the
company should evaluate all the related factor, industry factors and the competitors position
and evaluate that what strategies would be best for the company to manage the performance

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and enhance the level of skilled labour in the company. Organization should evaluate the new
training programmes, a team of trainers and new policies for the rewards to attract the skilled
labour towards the company.
The matrix explains that the company is facing various problems in context with the
hiring and retaining the skilled labour in the company. These problems could be resolved by
the company after preparing and implementing a proper strategy for the betterment of the
company. Further, it explains that the Number of competitors, Lack of skilled labour, high
rate of labour, Lack of research of diversification, on the job training, Reimbursement and
rewards, Evaluate the measure etc are the main weakness and opportunities of the company.
The organization should manage these weaknesses to convert into opportunities so that the
performance of the company could be managed.
7sFramework:
Further, the 7s framework study has been done on the company to evaluate the
important elements of the company. The key internal elements of the company are: strategy,
systems, structure, style, shared values, staff and skills in relation to evaluate that if they are
effectively related to each other to achieve the company’s objectives.

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(Vertovec, 2002)
Strategy:
Strategy explains about the plan which is devised to build and maintain the
competitive advantage on the competition. In the given case, company could use new training
programs and must makes few changes into the corporate structure to maintain and attract the
new labour and retain the employees.
Structure:
Structure explains that how the organization has been structured and who is the
responsible person in the organization. In the given case, company must make few changes
into the corporate structure and the organizational chart must be clear. It would help the
labour to maintain and attract the new labour and retain the employees (Alburo and Abella,
2002).

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Systems:
System explains about the daily activities and process which employees are engaged
to get the job done. In the given case, company must make few changes into its process and
the activities and must make it simplify so that organization could attract the new labour and
retain the employees.
Skill:
Skill explains about the know-how and knowledge of an employee in the
organization. In the given case, company must train the unskilled employees so that they
could develop the new and desired skill for the profile. It would help the company to manage
the skilled labour (O'Mahony, Robinson and Vecchi, 2008).
Staff:
Staff explains about the capabilities and knowledge of an employee in the
organization. In the given case, company must train the employees according to their job
profile. It would help the company to manage the skilled labour
Style:
Style explains about the various leadership capabilities which has been adopted. In the
given case, managers must adopt the style so that the labour could be motivated. It would
help the company to manage the skilled labour (Fellini, Ferro and Fullin, 2007).
Shared values:
Skill explains about the common goal of the organization which should be achieved
by the employed of the company. In the given case, company should focus on hiring and
training the new labour. It would help the company to manage the skilled labour.

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The above study explains about the various problems in context with the hiring and
retaining the skilled labour in the company. These problems could be resolved by the
company after preparing and implementing a proper strategy for the betterment of the
company. Further, it explains that the different strategy, shared values, systems, structure,
skills etc. could help the organization to achieve the goal of attracting new labour and retain
the new labour.
Findings and summary:
The above study explains that the company is facing shortage of skilled labour and
due to which the market position and competitiveness of the company is getting affected.
Company has changed various strategies and the policies to manage, attract and retain the
employees. The above study explains that few changes into its strategies and policies would
make it easier for the company to attract and retain the skilled labour. The study explains that
the different strategy, shared values, systems, structure, skills etc. could help the organization
to achieve the goal of attracting new labour and retain the new labour. On the other hand,
TOWS matrix would also make it easier for the company to achieve the goals.
Conclusion:
The research problem of this paper is that how the company could attract skill labour
in relation to be more competitive and advanced in market. The research paper concentrates
on the management challenges and explains that the few changes into the organizational
structure would make it easier for the AURECON Singapore attract skill labour in relation to
be more competitive and advanced in market.

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References:
Abdul-Rahman, H., Berawi, M.A., Berawi, A.R., Mohamed, O., Othman, M. and Yahya,
I.A., 2006. Delay mitigation in the Malaysian construction industry. Journal of construction
engineering and management, 132(2), pp.125-133.
Alburo, F.A. and Abella, D.I., 2002. Skilled labour migration from developing countries:
Study on the Philippines. ILO.
Arvanitis, S., 2005. Computerization, workplace organization, skilled labour and firm
productivity: Evidence for the Swiss business sector. Economics of Innovation and New
Technology, 14(4), pp.225-249.
Azhar, N., Farooqui, R.U. and Ahmed, S.M., 2008, August. Cost overrun factors in
construction industry of Pakistan. In First International Conference on Construction In
Developing Countries (ICCIDC–I), Advancing and Integrating Construction Education,
Research & Practice (pp. 499-508).
Ball, M., 2014. Rebuilding Construction (Routledge Revivals): Economic Change in the
British Construction Industry. Routledge.
Bhorat, H., Meyer, J.B. and Mlatsheni, C., 2002. Skilled labour migration from developing
countries: Study on South and Southern Africa. Geneva: International Migration Programme,
International Labour Office.
Bilginsoy, C., 2003. The hazards of training: Attrition and retention in construction industry
apprenticeship programs. ILR Review, 57(1), pp.54-67.
Chaloff, J. and Lemaitre, G., 2009. Managing Highly-Skilled Labour Migration.

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Fellini, I., Ferro, A. and Fullin, G., 2007. Recruitment processes and labour mobility: the
construction industry in Europe. Work, employment and society, 21(2), pp.277-298.
Fugar, F.D. and Agyakwah-Baah, A.B., 2010. Delays in building construction projects in
Ghana. Construction Economics and Building, 10(1-2), pp.103-116.
Khadria, B., 2002. Skilled labour migration from developing countries: Study on India. ILO.
Lowell, B.L., 2001. Policy responses to the international mobility of skilled labour. Internat.
Migration Branch, Internat. Labour Office.
Mahroum, S., 2001. Europe and the immigration of highly skilled labour. International
Migration, 39(5), pp.27-43.
O'Mahony, M., Robinson, C. and Vecchi, M., 2008. The impact of ICT on the demand for
skilled labour: A cross-country comparison. Labour economics, 15(6), pp.1435-1450.
Powell, W., 2003. Neither market nor hierarchy. The sociology of organizations: classic,
contemporary, and critical readings, 315, pp.104-117.
Rojas, E.M. and Aramvareekul, P., 2003. Labor productivity drivers and opportunities in the
construction industry. Journal of management in engineering, 19(2), pp.78-82.
Tabassi, A.A. and Bakar, A.A., 2009. Training, motivation, and performance: The case of
human resource management in construction projects in Mashhad, Iran. International journal
of project management, 27(5), pp.471-480.
Vertovec, S., 2002. Transnational networks and skilled labour migration (pp. 1-15).
University of Oxford. Transnational Communities Programme.
Wickramasekara, P., 2003. Policy responses to skilled migration: Retention, return and
circulation. International Labour Organization.

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Zou, P.X., Zhang, G. and Wang, J., 2007. Understanding the key risks in construction
projects in China. International Journal of Project Management, 25(6), pp.601-614.