Enhancing Labour Productivity within Construction Industry through Analytical Hierarchy Process, the Case of Gaza Strip

Abstract

Construction sector plays a leading role in economic growth for countries all around the world. Since construction is a labour intensive industry, productivity is considered a primary driving force for economic development. In the Gaza Strip, the economy is severely challenged by the combined effects of rapid population growth and the closure policy imposed on the area since 2007. Owing to this situation, construction projects are characterized by low profit margin, time and cost overrun making labour productivity a key component of company's success and competitiveness. Although, labour productivity has been subject of study by many researchers, a deeper understanding is still required to improve labour productivity. The main aim of this study is to identify key factors affecting labour productivity in the Gaza Strip. It also aims at formulating a labour productivity baseline model using the Analytical Hierarchy Process (AHP). By reviewing the literature and conducting depth interviews with experienced engineers, thirty critical factors related to labour productivity were identified and categorized into six groups: psychological, experience, supervision and leadership, physical, time and workload, and external factors. Based on the Analytical Hierarchy Process approach, a questionnaire was designed and delivered to sixty contractors to elicit the view on how labour productivity might be affected. A total of 56 feedbacks were analyzed through the AHP. The results indicated that Job satisfaction& security, lack of incentive scheme, skill& experience, drug use, overtime and weather changes have a significant impact on labour productivity in GS. In addition, the developed AHP model provides a framework that can assist managers in evaluating multiple factors and hence effectively improve labour productivity.