Evaluating Skilled Labour's Impact on AURECON: A Project Report

This project report examines the significance of skilled labor within AURECON, a Singapore-based construction company, focusing on its impact on company performance. The report begins with an executive summary and company overview, followed by a research problem identifying the challenges i...Read More

Running Head: Business Management
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Project Report: Business Management

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Executive summary
The report has been prepared to evaluate the importance of skilled labour in an
organization. For the report, a study has been conducted on AURECON Singapore and it has
been evaluated that how the skilled labour could positively impact on the performance of the
company. The paper researches about the skilled labour, their importance and their
competitiveness for an organization. Firstly, in the report, introduction has been given about
the company and the study. Further, the literature review has also been done. For the research
and analysis, numerous strategies and management techniques have been studied. Lastly, 7s
framework and TOWS strategy have been used to resolve the issues from the company.

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Contents
Introduction.......................................................................................................................3
Company overview...........................................................................................................3
Research problem.............................................................................................................3
Literature review...............................................................................................................4
Industry and company research........................................................................................7
Models and theories:.........................................................................................................7
Tows Strategy:..............................................................................................................8
7sFramework................................................................................................................9
Findings and summary....................................................................................................11
Conclusion......................................................................................................................12
References.......................................................................................................................13

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Introduction:
The report has been prepared to evaluate and analyze the challenges and issues faced
by AURECON due to management. The report briefs that how the changes could assist the
company to resolve the challenges and issues in relation to the management of the company.
Management issues and challenges could be resolved by an organization through evaluating
the related factors and implementing the new policies such as when an organization faces
technology related issues then the company should evaluate the market and adopt new
technology from the market. The paper researches about the skilled labour, their importance
and their competitiveness for an organization. For the research and analysis, numerous
strategies and management techniques have been studied. Literature review has also been
done to identify the importance of skilled labour. 7s framework and TOWS strategy have
been used to resolve the issues from the company.
Company overview:
AURECON is a non-profit organization which is run by a trust in Singapore. The
company mainly operates into construction industry. The main businesses of the company are
planning, designing, engineering, and handling the projects and consultation to the clients. It
also offers numerous services to its clients such as heavy engineering, purification, safety,
building and structure, roads, transportation, infrastructure services etc. The company has
been established in 2009. Currently, the company has employed 7500 people. In current
scenario, 80 offices are owned by the company in 27 countries. The CEO and CFO of the
company are Teddy Daka and Giam Swiegers. Annual reports of the company brief that the
total turnover of the company has been enhanced from last year. The current turnover is AUD
820.

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Research problem:
The paper has been prepared to evaluate the ways through which the AURECON
could hire and retain the skilled employees in order to maintain the position in the market and
set a competitive strength in the market. It focuses on the construction company as well as
few ways through which the skilled labour could be attracted, hired and retained in the
organization.
Literature review:
Debrah and Ofori, (2001) has described in his study that skilled labour is the person
who is expertise and specialized in a particular work. This expertise could be achieved by an
individual through study or the experiences. Zou, Zhang and Wang, (2007) has added further
that skilled labour is more responsible and more capable than unskilled workers. In addition,
it has also been added by Wickramasekara, (2003) that skilled labour is that individual who is
quite educated and knows his responsibilities in a better way. Vertovec, (2002) has also
added further that skilled labour knows that how to carry out and accomplish physical and
mental task efficiently in a routine job. They have specific knowledge about a job or a task
and accomplish it perfectly. Skilled labour is the chief way to enhance the growth and
innovation in a company through generating the new idea and knowledge about the job,
developing the incremental tasks and functions, supporting the company to evaluate the new
business operations etc.
Tabassi and Bakar, (2009) has found that the market of skilled labour has changed a
lot in last few years. The demand of the skilled labour is continuously enhancing in the
market. Developed market and the developing markets are demanding for the skilled labour
so that the task could be done with perfection and in lesser time. The skilled labour assists the

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businesses to manage and enhance the productivity (Khadria, 2002). Though, it has also been
briefed by Chaloff and Lemaitre, (2009) that skilled labour enhances the total cost of the
company as they are required to be paid more than the unskilled labour. In addition, it has
also been added by Bilginsoy, (2003) that skilled labour’s demand is quite higher in the
market and supply is quite lower which has enhanced the labour rate of the skilled labour.
In the market of Singapore, it has been evaluated that the demand of skilled labour is
quite higher. Companies are getting more innovative and technology freak and thus they are
hiring individual who could understand the operations and the functions of the company
easily. Further, it evaluates that companies from Singapore are looking forward to maintain
the position in the market and set a competitive strength in the market. Further, it has been
added by Ball (2014) that the supply of skilled labour in Construction Company is quite
lower as organizations hire individual for a short period in construction companies.
Alburo and Abella, (2002) evaluates that skilled labour enhances the productivity and
the position of an organization in the market. Further, Ball (2014) has added that the
unskilled labour could also be transformed into skilled labour though training and the
education. Though, Abdul-Rahman et al, (2006) have argued that it is of no use for the
organizations to invest more amounts to train individual as the labour would leave as soon as
the contract accomplish. Further, it has also been argued by Zhi et al, (2003) that it become
important in the current scenario from the organizations to hire the skilled labour as the jobs
and the demand are changing rapidly. Further, it evaluates that a skilled labour could done a
better job than an unskilled labour and thus an organization should hire the skilled labour
(Abdul Kadir et al, 2006).
For attracting and hiring the skilled labour, an organization should use new tactics and
strategies. Organizations could offer them high salary as well as the rewards could also be

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offered to them. Organization could also arrange an employee benefit program to manage the
hiring. Further, various new policies could also be made by an organization to attract, hire
and retain the employees such as:
Start from square one
Monitor your competitors
Keep a finger on the industry’s pulse
Incentivize employee referrals
Document your strategy (Fellini, Ferro and Fullin, 2007)
This process could assist an organization to attract and hire the new skilled labour in
the organization. Though, Huang and Yeoh, (2003) has argued that PRIDE is better strategies
for the organizations to attract, hire and retain the employees. PRIDE explains that an
organization should offer a good environment to the employees so that they could feel
connected, further, organization should offer various rewards and reinforce to the labour
according to their skills and behaviour. More, they should engage and involve the labour in
the tasks and the activities of the business.
In addition, organization should implement new plans in the business so that their
skills and potential could be improved more and lastly they should evaluate the performance
of the labour on the basis of various measures. Ling, Liu and Woo, (2009) has explained that
in construction companies, labours switch the job according to the contracts and hence
offering the training and the opportunities to that labour would cause huge loss to the
company. Though, Yeoh (2006) has argued that if an organization trains the labour then they
could retain that labour for a long period. Though, organizations could also use some other
ways to attract and retain the employees such as training, corporate culture, organizational

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chart etc. all these aspects plays an important role in managing the skilled labour of the
company and hire more.
Industry and company research:
AURECON mainly operates into construction industry. Construction company’s main
businesses are planning, designing, engineering, and handling the projects and consultation to
the clients. The industry also provides various services to its clients such as heavy
engineering, purification, safety, building and structure, roads, transportation; infrastructure
services etc. the construction company briefs that various changes are taken place into the
construction company now days (Debrah and Ofori, 2001). The technology has been
advanced and the machineries are also tough to run and thus, it is required for the industry to
hire and retain the skilled labour. Though, it has been evaluated that the supply of skilled
labour in Construction Company is quite lower as organizations hire individual for a short
period in construction companies (Ball, 2014). The main issue with construction industry is
that labours switch the job according to the contracts and hence offering the training and the
opportunities to that labour would cause huge loss to the company. Though, the companies
are adopting various new safety and health measures to attract the employees and industry is
also offering them a good labour rate (Yeoh, 2006).
In case of AURECON, it has been evaluated and analyzed that the company is facing
numerous challenges and issues due to management. The analysis briefs that the management
issues and challenges could be resolved by an organization through evaluating the related
factors and implementing the new policies. Company should evaluate the market and adopt
new technology from the market (Ling, Liu and Woo, 2009). The research explains that the
skilled labour is quite important for an organization to manage the performance and the
competitiveness of the company.

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Models and theories:
Few theories and models have been analyzed to determine the challenge of attracting
and hiring the skilled labour in AURECON. TOWS strategy and 7s framework has been
evaluated. Following are the matrix of the models:
Tows Strategy:
External opportunities External threats
Internal Strength Good profitability position of
the company
Huge growth in the revenue
of the company
Great market share
Capacity and knowledge of
the trainers
Corporate culture
Huge labour price
Risk of employee turnover
Technological issues
Legal requirements and
safety trends
Huge attractive and quality
Internal Weakness Lack of awareness about the
skilled labour
Lack of trainers
Technical expertise
Research of diversification
Competition level
Less supply of skilled labour
Economic growth
Huge capital investment
Industry trends

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Reimbursement and rewards
(Zhi et al, 2003)
On the job training
Market position evaluation
Above matrix explains about the strength opportunity, weakness opportunity, strength
threat and weakness threat of the company. It explains that on which factors company should
focus and which points would offer loss to the company. The matrix makes it easier for the
managers and the organization to identify the relevant factors which could be rectified. It
explains that the organization could resolve the issue of skilled labour hiring and retaining
through the help of new tactics and policies.
7sFramework:
Further, 7s framework study has also been done on AURECON to identify the
important factors of the company. The main elements of the 7s framework are: strategy, style,
shared values, systems, structure, staff and skills to analyze that how could these factors help
the company to achieve the goals.

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Following is the 7s framework of the company:
Strategy:
Strategy briefs that a plan could be devised to manage, maintain and build an
advantage of competitiveness in the market. In case of AURECON, company is suggested to
make and implement new changes into the strategy so that the organizational culture and the
corporate structure of the company could be maintained. It would attract the new labour
towards the company.
Structure:
Structure briefs that the corporate structure should be maintained by a company in
such as way that complexity could never raise. In case of AURECON, company is suggested

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to make and implement new changes into the corporate structure of the company as it would
attract the new labour towards the company.
Systems:
System briefs that a daily functions and the activities must be done in a proper way. In
case of AURECON, company is suggested to make and implement new changes into its
process and the activities so that it could attract the new labour towards the company.
Skill:
Skill explains that the employees should be enough qualified. In case of AURECON,
proper training could be given to the labour to develop the skills (Abdul Kadir et al, 2006).
Staff:
Staff explains about the knowledge, capabilities and the ability of employees in a
company. In case of AURECON, proper training could be given to the labour to develop and
manage the staff.
Style:
Style explains that the manager must have leadership qualities. In case of AURECON,
managers should adopt the leadership qualities to manage and retain the skilled labour.
Shared values:
Shared value explains that all the employees of an organization are required to
achieve the common goal of a business. In case of AURECON, proper training could be
given to the labour so that the company’s goal could be achieved.
Findings and summary:

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The above study briefs that the demand of the skilled labour is continuously
enhancing in the market. Developed market and the developing markets are demanding for
the skilled labour so that the task could be done with perfection and in lesser time. Further,
the supply of skilled labour in Construction Company is quite lower as organizations hire
individual for a short period in construction companies. The analysis briefs that the
AURECON issues and challenges could be resolved through evaluating the related factors
and implementing the new policies. Company should evaluate the market and adopt new
technology from the market such as changing into the organizational culture. The research
explains that the skilled labour is quite important for an organization to manage the
performance and the competitiveness of the company.
Conclusion:
To conclude, management challenges and issues could be resolved by the
organization with the help of proper research and proper know how about the company.
Further, it explains that the skilled labour is quite important for an organization to manage the
performance and the competitiveness of the company.

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References:
Abdul Kadir, M.R., Lee, W.P., Jaafar, M.S., Sapuan, S.M. and Ali, A.A.A., 2006.
Construction performance comparison between conventional and industrialised building
systems in Malaysia. Structural Survey, 24(5), pp.412-424.
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.
Ball, M., 2014. Rebuilding Construction (Routledge Revivals): Economic Change in the
British Construction Industry. Routledge.
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.
Debrah, Y.A. and Ofori, G., 2001. Subcontracting, foreign workers and job safety in the
Singapore construction industry. Asia Pacific Business Review, 8(1), pp.145-166.
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.
Huang, S. and Yeoh, B.S., 2003. The difference gender makes: State policy and contract
migrant workers in Singapore. Asian and pacific migration journal, 12(1-2), pp.75-97.
Khadria, B., 2002. Skilled labour migration from developing countries: Study on India. ILO.
Ling, F.Y.Y., Liu, M. and Woo, Y.C., 2009. Construction fatalities in
Singapore. International Journal of Project Management, 27(7), pp.717-726.

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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.
Yeoh, B.S., 2006. Bifurcated labour: the unequal incorporation of transmigrants in
Singapore. Tijdschrift voor economische en sociale geografie, 97(1), pp.26-37.
Zhi, M., Hua, G.B., Wang, S.Q. and Ofori, G., 2003. Total factor productivity growth
accounting in the construction industry of Singapore. Construction Management and
Economics, 21(7), pp.707-718.
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.