Luận văn thạc sĩ UEH factors affecting the fluctuation of labour productivity in the construction

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

------------------------------

Bui Trung Kien

FACTORS AFFECTING THE

FLUCTUATION OF LABOUR PRODUCTIVITY

IN THE CONSTRUCTION PROJECTS

MASTER OF BUSINESS (Honours)

Ho Chi Minh City - 2012

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UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

------------------------------

Bui Trung Kien

FACTORS AFFECTING THE

FLUCTUATION OF LABOUR PRODUCTIVITY

IN THE CONSTRUCTION PROJECTS

ID: 60340102

MASTER OF BUSINESS (Honours)

SUPERVISOR: Dr. CAO HAO THI

Ho Chi Minh City - 2012

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i

ACKNOWLEDGMETS

Firstly, I would like to express my deepest appreciation to my supervisor Dr. Cao Hao

Thi for his professional guidance, valuable advice, continuous encouragement, and

motivated support that made this thesis possible.

I would like to extend deep senses of gratitude to Prof. Nguyen Dinh Tho and lecturers

who have taught and transferred me valuable knowledge and experience during the

period of Master of Business course at International School of Business.

Special thanks, to all of my dear friends in MBUS 2010 class, who gave me useful

material, response and experience to conducting this study.

I would like to express my grateful thanks to my friends and all the construction

company in Vietnam who participated in filling the questionnaires and provided the

valuable information for this study.

Personally, I wish to express my deep gratitude to my parents, my wife, sister and

brother for their spiritual support and encouragement during the time of study.

Ho Chi Minh City, Vietnam,

12 Dec. 12

Bui Trung Kien

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ABSTRACT

Productivity has an important role to help construction companies to be competitive,

achieve set goals, meet stakeholder and value propositions. The objectives of this

research are to identify the factors affect to the Labor Productivity Fluctuation in

construction project in Vietnam, to access the impact strength of influenced factors on

the fluctuation of labor productivity and to suggest recommendations to reduce the

fluctuation of labor productivity.

The objective of this study have been achieved through study 233 questionnaires and

the results of analysis of 46 variables considered in questionnaire show that, there are

five main factors positively affect to Labor Productivity Fluctuation in construction

project. They are Supervision factor, Motivation factor, Workforce factor,

Material/Equipment factor and Schedule factor. After conducting Multiple Linear

Regression and ANOVA analysis, the model of study have been indentified which

could explains 68.7 % of the total variance in Labor Productivity Fluctuation and

ANOVA testing result also shows that there are significant different among project

characteristic group on LPF.

The results of this study recommend that construction companies have to conduct

labour productivity study in their project to reduce Labour Productivity Fluctuation. It

is important to have training program to increase labour skill, improve labor

commitment and the relationship among worker by increasing labor benefit and team

building program. It also suggested that the planning software should be used in the

project to have a good planning work to reduce the frequency of working overtime and

make the labor more productivity.

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TABLE OF CONTENT

ACKNOWLEDGMETS....................................................................................................... i

ABSTRACT......................................................................................................................... ii

TABLE OF CONTENT ..................................................................................................... iii

LIST OF FIGURES ........................................................................................................... vii

LIST OF TABLES............................................................................................................viii

LIST OF ABBREVIATIONS............................................................................................. x

CHAPTER 1: INTRODUCTION .................................................................................. .1

1.1 Statement of the problem .............................................................................................. 1

1.2 Objective of the study.................................................................................................... 2

1.3 Scope of the study.......................................................................................................... 2

1.4 Research contribution.................................................................................................... 2

1.5 Research Structure......................................................................................................... 3

CHAPTER 2: LITERATURE REVIEW....................................................................... 5

2.1 Definition related to project and project management................................................ 5

2.1.1 Project......................................................................................................................... 5

2.1.2 Project Management .................................................................................................. 5

2.2 Definitions related to productivity................................................................................ 6

2.2.1 Productivity................................................................................................................. 6

2.2.2 Labor Productivity ..................................................................................................... 7

2.2.3 Total Productivity....................................................................................................... 8

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2.2.4 The formulation for the fluctuation of labor productivity........................................ 9

2.2.5 Construction productivity ........................................................................................ 10

2.3 Factors affecting construction productivity ............................................................... 10

2.4 Factor and indicators affect to labour productivity fluctuation ................................ 17

2.4.1 Factor related to workforce..................................................................................... 17

2.4.2 Factor related to management team ....................................................................... 18

2.4.3 Factor related to motivation .................................................................................... 18

2.4.4 Factor related to schedule compression ................................................................. 19

2.4.5 Factor related to material/equipment..................................................................... 20

2.4.6 Factor related to supervision................................................................................... 22

2.4.7 Factor related to safety ............................................................................................ 23

2.5 Project characteristics.................................................................................................. 24

2.6 Conceptual framework................................................................................................ 25

CHAPTER 3: METHODOLOGY ................................................................................ 27

3.1 Research process.......................................................................................................... 27

3.2 Sampling design........................................................................................................... 28

3.2.1Population.................................................................................................................. 28

3.2.2 Sample size................................................................................................................ 28

3.3 Measurement scales..................................................................................................... 29

3.4 Questionnaire design ................................................................................................... 29

3.5 Pilot survey .................................................................................................................. 30

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3.6 Data collection ............................................................................................................. 31

3.7 Descriptive statistics.................................................................................................... 31

3.8 Reliability analysis ...................................................................................................... 31

3.9 Exploratory analysis .................................................................................................... 32

3.10 Multiple regression analysis ..................................................................................... 32

3.11 ANOVA analysis....................................................................................................... 32

CHAPTER 4: DATA ANALYSIS................................................................................. 33

4.1 Sample descriptive statistics ....................................................................................... 33

4.2 Reliability analysis ...................................................................................................... 36

4.3 Exploratory factor analysis ......................................................................................... 39

4.4 Revised the research model......................................................................................... 43

4.5 Multiple regression analysis ....................................................................................... 44

4.5.1 Correlation testing ................................................................................................... 44

4.5.2 Multiple linear regression analysis......................................................................... 45

4.5.2.1 Theory model......................................................................................................... 45

4.5.2.2 Result on the linear regression analysis.............................................................. 45

4.5.3 Hypothesis testing..................................................................................................... 47

4.5.4 One-Way ANOVA Analysis in project characteristic............................................. 49

4.5.4.1 One-Way ANOVA testing in type of project ........................................................ 49

4.5.4.2 One-Way ANOVA testing in project ownership .................................................. 51

4.5.4.3 One-Way ANOVA testing in project budget ........................................................ 53

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4.5.5 Results of ANOVA testing on project characteristics............................................. 53

4.6 Summary of data analysis result................................................................................. 53

CHAPTER 5: RECOMMENDATION AND CONCLUSION................................. 55

5.1 Research finding.......................................................................................................... 55

5.2 Managerial implications.............................................................................................. 56

5.3 Limitations and future research .................................................................................. 57

APPENDICES.................................................................................................................. 61

Appendix A: Questionnaire (English Version)................................................................ 63

Appendix B: Questionnaire (Vietnamese Version) ......................................................... 69

Appendix C: First time running- Eigenvalues ................................................................. 76

Appendix D: First Time Running – Factor Loadings...................................................... 77

Appendix E: Charts of Multiple Regression Analysis..................................................... 79

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LIST OF FIGURES

Figure 2.1: Factor model of construction labor productivity......................................... 11

Figure 2.2: Factors that are statistical significant ........................................................... 12

Figure 2.3: External affects to construction on-site productivity .................................. 13

Figure 2.4: Internal affects to construction on-site productivity ................................... 13

Figure 2.5: Workforce factor and LPF ............................................................................ 19

Figure 2.6: Management team factor and LPF ............................................................... 19

Figure 2.7: Motivation factor and LPF............................................................................ 20

Figure 2.8: Schedule compression factor and LPF......................................................... 21

Figure 2.9: Material/Equipment factor and LPF............................................................. 22

Figure 2.10: Supervision factor and LPF ........................................................................ 23

Figure 2.11: Safety factor and LPF ................................................................................. 24

Figure 2.12: Conceptual framework................................................................................ 25

Figure 3.1: Research process ........................................................................................... 27

Figure 4.1: Revised conceptual model ............................................................................ 43

Figure 4.2: Final research model ..................................................................................... 53

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