THE RELATIONSHIP BETWEEN HUMAN RESOURCE MANAGEMENT (HRM) AND ORGANISATIONAL PERFORMANCE IN CONSTRUCTION: SYNTHESIS OF HRM MODELS

The performance of the construction industry in Libya can be significantly improved through better organisation and management. The implementation of effective human resource management practices is essential for this country as it strives to keep up with advancements in this area. In order for their managers to efficiently supervise their personnel, it is crucial that Libyan players in the construction industry come up with more sophisticated HRM strategies. It is an established fact that the Libyan construction industry functions in accordance with a time-honoured procurement system. With this system, communication is mostly in an oral rather than in a written form. Predictably, this circumstance gives rise to several drawbacks. While foreign professionals struggle to employ and comprehend the body language involved in such communication, Libyan employees are at a loss when it comes to taking instructions. Although previously conducted investigations revealed a link between HRM strategies and organizational performance, these investigations did not take into consideration the mediating effect of the ‘black box’. With this in mind, we examined the relationship between HRM practices and organizational performance while considering the skills, attitude, and behaviour of employees as the ‘black box’ content. Additionally, we forwarded a hypothetical structure of HRM and organizational performance in relation to the Libyan construction industry. We anticipate that the results derived through this study will pave the way towards improvements in this area.