Human resource management in European construction companies

There has been widespread interest in corporate integration within Europe in recent years. The reconfiguration of business activity poses questions about the relationship between corporate or international headquarters and levels of discretion in HR practices at local level. These issues are explored in the European construction industry, with a focus on larger enterprises. Data are derived from desk research and from European surveys on HR practice co-ordinated by Cranfield School of Management. Comparison is made of HR practices within larger European construction companies between 1992 and 1995. Decisions at national HQ and subsidiary level continue to be important for all key aspects of HR policy in construction – pay determination, recruitment, training, industrial relations, health and safety and workforce adjustment. There is little evidence that HR decisions are shifting to a European level. International HQ decision-making is more significant with respect to pay policy than on other issues, although even in this area it remains limited. Rather the trend is to decentralization. Sub-contracting is attractive to corporate and site management and has tended to grow in incidence and importance, although practices vary geographically. There is a tension between central corporate control and local flexibility. Central controls may be strongest in relation to financial management, with subsidiary level managers seeking flexibility while working within budgetary constraints.