THE CHALLENGES OF HUMAN RESOURCES MANAGEMENT IN THE OIL INDUSTRY (A STUDY OF SELECTED OIL COMPANIES IN RIVERS STATE)
ATTENTION:
BEFORE YOU READ THE
PROJECT WORK, PLEASE READ THE INFORMATION BELOW. THANK YOU!
TO GET THE FULL
PROJECT FOR THE TOPIC BELOW PLEASE CALL:
08068231953,
08168759420
TO GET MORE PROJECT
TOPICS IN YOUR DEPARTMENT, PLEASE VISIT:
THE CHALLENGES OF HUMAN
RESOURCES MANAGEMENT IN THE OIL INDUSTRY (A STUDY OF SELECTED OIL COMPANIES IN
RIVERS STATE)
ABSTRACT
This study examined the
challenges of human resource management in the oil industry. Data were obtained
from 96 managers in selected oil companies in Rivers State, and the statistical
tools used in analyzing the data were the percentage tables, spearman rank
order correlation coefficient and the Kendall coefficient of concordance. The
result revealed that there is significant relationship between demographic
constraints (job experience) and employee recruitment and selection. A
significant relationship was also found between technology and employee
training and development. Also, significant relationship exists between globalization
and wages/salary administration. More so, it was established that there is
significant relationship between organizational change and employee
performance. Our data therefore, support the hypotheses of relationship between
the various challenges of HRM and the functions of human resource managers. It
is therefore concluded that the challenges of human resource management in the
oil industry are demographic constraints, technology, globalization and
organizational change.
TABLE OF CONTENT
Title Page i
Dedication ii
Declaration iii
Certification iv
Abstract v
Table of
Content vi
CHAPTER ONE: INTRODUCTION
1.1 background of the study 1
1.2 statement of the problem 7
1.3 purpose of the study 8
1.4 research questions 9
1.5 research hypothesis 10
1.6 significance of the study 11
1.7 scope of the study 12
1.8 limitations of the study 12
1.9 definition of terms 13
1.10
organization of the study 16
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction 19
2.2 The Nigerian oil industry an overview 20
2.3 Oil companies in Nigeria 25
2.4 Human resource 27
2.5 Strategic importance of human resource in the
Oil industry
30
2.6 Human resource management 33
2.7 Human resources planning 35
2.8 Recruitment and selection 38
2.9 Human resources training and development 42
2.10 Wages
and salaries administration 48
2.11 performance appraisal 53
2.12
challenges of human resource management
In the
industry 57
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction 71
3.2 research design 71
3.3 population sample size and sampling procedure 72
3.4 data collection method 75
3.5 questionnaire design 76
3.6 operational measures of variables 76
3.7 data analysis techniques 78
CHAPTER
FOUR: PRESENTATION AND ANALYSIS OF DATA
4.1 Introduction 83
4.2 questionnaire
distribution and collection 83
4.3 Analysis
of data 84
4.4 testing
of hypotheses 93
CHAPTER FIVE: SUMMARY, CONCLUSION AND
RECOMMENDATION
5.1 Introduction 116
5.2 Summary 116
5.3 Conclusion 119
5.4 Recommendation 120
Bibliography 124
Appendixes 125
CHAPTER ONE
INTRODUCTION
1.1
BACKGROUND
OF THE STUDY
The
oil industry if perhaps one of the most important industries in the Nigerian
economy the industry generates the highest level of revenue for the government.
It is because of this that much emphasis has been paid to this industry.
Companies in this industry, engage in oil exploration and exploitation,
drilling, production, marketing and other related oil activities in order to
achieve certain objectives. Some of the most notable multinational oil companies
in Nigeria include; Shell Petroleum Development Company (SPDC), Nigeria Agip
Oil Company (NAOC), Elf Nigeria Limited, Nigeria National Petroleum Corporation
(NNPC), Chevron Nigeria Limited, to mention but a few. However, for these oil
companies to achieve their predetermined goal, they need to bring together
different kinds of people to carrying out their oil operations. This is the
essence of human resource management (HRM). While people have always been
central focus to these companies today; they have taken on an even more central
role in building their company’s competitive advantage. As Prehald and Hamel
(1990) observed, success of any company increasingly depends on “People embodies
know-how”. Bratton and Gold (1999) described this as competencies.
To
work with people effectively and achieve competitive advantage, human resource
managers in the oil industry must effectively perform certain functions that
represent the components of human resource management. These functions as
identified by Nwachukwu (2000) include; human resource planning, recruitment,
selection, training, compensation (wages and salaries) and performance
appraisal. However, certain factors have continued to pose challenge in which
these human resource functions are performed in the oil industry.
One
of such factors which constitute a great challenge to human resource management
(recruitment and selection) in the oil industry is demographic constraints (job
experience). Ryder (2007) noted that the oil industry in its recruitment and
selection policy often requires people with at least 10 years or more of job
experience. Consequently, there are simply too few opportunities with 10 years
or more experience, whether they are geologists, petroleum engineers, chemical
engineers, or technical sales or service people. The lack of experienced
workers is expected to intensify. Panelists at a recent topical discussion at
the offshore technology conference conclude that oil and gas companies in
Nigeria are likely to lose more than 60% of their employees by 2010, along with their
experience and knowledge, due to retirement; therefore, finding a replacement
of this category of workers with the required experience, is a though challenge
to these companies (Rodrik, 2001).
Another
important factor which posed a great challenge to human resource management in
the oil industry is technology. According to Anakwe (2002), technology
advancement has changed the way in which tasks are performed in the oil
industry (i.e. from manual/physical to digital). Technology is shifting the
basis of competition from physical to knowledge based assets. Physical or
manual skills that were applicable become obsolescence. Most employees in the
oil industry often see technology application as a threat to their job.
Nwachukwu (2000) explained this saying that technology application could lead
to workers frustration and a frustrated worker is a threat to the entire
organization. Training, retraining and development seem to be the only option
available to curb the problem of shifts in skill requirements.
Also,
globalization is not left out as one of the crucial challenge to human resource
management (wages and salaries administration) in the oil industry. According
to the World Bank (2002), globalization refers to the growing economic
interdependence of countries worldwide through the increasing volume and
variety of cross border transactions in goods and services; and of
international capital flows and also through the mere rapid and wide spread
diffusion of technology. Over the years, foreign and cross-border movement of
technology, laobur and capital have been massive and irresistible. Recently,
the demand for more skilled workers has increased in the oil industry at the expense
of less skilled (experience) workers, and the income gap between the two groups
has grown. Mathew & Philip (2000) noted that the movement of labour from
one country to another directly affects wages .
An
important issue in the advanced economics is whether immigration of
less-skilled workers from developing countries depress the earnings of less
skilled natives. Often times, employees with international assignments receive
special allowance for relocation, children’s education, housing, travel, or
other business related expenses. This challenge can also be viewed in terms of
higher wages/salaries offered to expatriates. Thus integrating a fair
wages/salaries structure for an expatriate or employee with and international
assignment is a key global human resources challenge facing oil companies
around the world.
Apart
from the above factors discussed above, change is another factor affecting
human resource management (performance appraisal). Change is inevitable in any
organization. Management in oil companies often introduce change in order to
respond to the dynamic nature of business environment. Thornhill (2001) stated
that the consequence of any change process is that employee will need to think
and/or behave differently. This will apply whether the change is operational,
for example, adjustments to working practices or the introduction of new
policies and procedures such as performance appraisal or strategic, where
change will be more dramatic and pervasive, as with the culture change
programme. From these examples, we can see that different behaviours will be required
either at the level of individual employees, work groups or units or even,
potentially, the whole workforce. Irrespective of the degree or scope of change
some type of human resource development process will be inevitable to move
staff from where they are now to where the organization wants them to be.
Therefore,
effective human resource management in contemporary times requires a good
knowledge of the requisite tools and techniques to respond to the dynamic
nature of environment. More and more practioners have realized the need for
some theorizing, conceptualization, modeling policies, plans programmes and
other essential strategies that would assist organization to address these
human resource challenges and achieve their objectives within the described
dynamic and highly competitive global economy.
1.2
STATEMENT
OF THE PROBLEM
Human
resource management is a very important issue to any organization. It plays a
significant role in the success of an organization. The oil industry is one of
the crucial industries where effective human resource management is required
because the achievement of the goals and objectives of companies in this
industry depends on how effective the human resource functions such as
recruitment, selection, training and development, wages/salaries administration
and performance appraisal, are performed.
In
recent times, several factors have continued to pose serious challenge to these
human resource functions in the oil industry. Fajana (2006) noted that human
resource managers in oil companies are today faced with numerous challenges in
the course of performing the human resource functions effectively. But what are
the challenges of human resource management in the Nigerian oil industry?
Studies carried out in the advanced nations (United States of America) showed
that demographic constraints, technology, it is still not clear whether the
above identified factors constituting challenges to human resource management
in the oil industry of advanced nations, equally affect oil companies in
Nigeria. This therefore, calls for investigation.
1.3
PURPOSE
OF THE STUDY
The
purpose of this study is to examine the challenges of human resource management
in the oil industry using selected oil companies in Rivers State as a survey
study. In order to achieve this, the study intends to attain the following
objectives
1. To
identify the challenges confronting human resource functions in the oil
industry.
2. To
find out whether demographic constraints (job experience) constitute a great
challenge to employee recruitment and selection in oil companies.
3. To
determine whether technology pose a challenge to employee training and
development in oil companies.
4. To
find out whether globalization constitute a great challenge to wages and salary
administration in oil companies.
5. To
ascertain whether organizational change pose a challenge to performance
appraisal in oil companies.
6. To
provide the necessary recommendations for the study based on the findings.
1.4 RESEARCH QUESTIONS
In order to adequately address the problem and
objectives of this study, the following questions were put forward:
1. What
are the challenges of human resource management in the oil industry?
2. Does
demographic constraint (job experience) constitutes a great challenge to employee recruitment and
selection practices in oil companies?
3. To
what extent does technology pose a challenge to employee training and
development in oil companies?
4. Does
globalization constitutes a great challenges to wages and salary administration
in oil companies?
5. To
what extent does organizational change constitutes a challenge to performance
appraisal in oil companies?
6. How
can oil companies address the above challenges of HRM so as to enhance
effective human resource management in their organization?
1.5 RESEARCH
HYPOTHESES
The
following hypotheses are postulated to guide this study
H01:
There is no significant relationship between demographic constraint (job
experience) and employee recruitment and selection practices in oil companies.
H02:
There is no significant relationship between technology and employee training
and development in oil companies.
H03:
There is no significant relationship between globalization and wages/salaries
administration in oil companies.
H04:
There is no significant relationship between organization change and employee
performance appraisal in oil companies.
1.6 SIGNIFICANCE OF THE STUDY
This
study would be of value to the general public, if published as it would enable
them know the challenges of human resource management in the oil industry. More, importantly, the result of this study
would be relevant to human resource managers in oil companies. Their knowledge
of human resource challenges to their profession will be broadened.
The
Nigeria oil industry and other organizations would equally benefit from this
study, as the recommendations for the study would make way on how to address
the problems associated with human resource management in their organization.
The
government would also benefits from this study as a result of the
macro-economic effect. Finally, the findings of this study would to the
existing stock of knowledge in this issue, which scholars, writers’ researcher
and students would find useful for the purpose of future research on it.
1.7 SCOPE
OF THE STUDY
The
scope of this study has been limited to selected oil companies in Rivers State.
The sample (respondents) constituted top, middle and lower level managers of
the selected oil companies in Rivers State. It is hoped that the findings from
this area covered will be used for generalization to all the oil companies in
Nigeria.
1.8 LIMITATIONS
OF THE STUDY
The
following factors were the limitations to this study.
Inadequate Finance:
The researcher was highly constrained by lack of adequate fund to finance the
huge expenses associated with this study. As a result of this, the research was
not able to visit all the oil companies in Nigeria.
Inadequate Time:
Time inadequate is another limiting factor to this study. The time available to
the researcher was too insufficient to extensively conduct this study.
Scarcity of Current Secondary
Materials: There was a problem of dearth of current
materials such as textbooks, journals, magazine, newspaper, etc which
adequately dealt specifically on the
challenges of human resource management in the oil industry in Rivers State
and Nigeria at large.
Non-Challant Attitude of
Respondent: Some of the respondents were
reluctant in filling the administered questionnaire let alone attending the
oral interview. This constituted a great limitation to this study.
1.9 DEFINITIONS
OF TERMS
The
following are the contextual meaning of key terms used:
Human Resources:
The energies, skills and knowledge of people which are or which potentially can
or should be applied to the production of goods and services.
Human Resource Manager:
An officer charge with the responsibility of sourcing for and making proper
utilization of manpower needs of the organization.
Human Resources Management:
all activities involved in the effective utilization of people to achieve both
the objectives of the organization and the satisfaction and development of the
employees.
Human Resource Information System
(HRTS): A computerized system that provides current data
for the purpose of control and decision making.
Employee:
A person who enters into a contract with another (the employer) to perform some
work. The term employee is also used the same as worker, staff or personnel.
Recruitment:
The person of discovering the potential of applicants for actual or anticipated
organizational vacancies. It can also be looked at as a linking activity,
bringing together those with jobs and those seeking jobs.
Selection:
Choosing from a pool of (potential employees) applicants the most
suitable/qualified candidate for employment.
Recruitment/Selection Practices: The
ways in which recruitment and selection (pooling together applicants and
choosing from them) are carried out. These include the methods used and
policies/guidelines that influence them.
Training:
The purpose of applying appropriate educational methodology to those situations
in which improved performance can result from effective learning. It can also
be defined as a systematic development of knowledge, skills and attitudes
required by individuals to perform adequately a given task of job. It involves
learning of various kinds and in various situations.
Employee Development:
This refers to those processes directed towards equipping employees with the
skills, knowledge and attitude necessary to achieve corporate objectives both
now and in the future.
Motivation:
Ability to influence to the behaviour of employees through the provision of
desired work outcome.
Globalizations:
This is an economic phenomenon, involving the increasing interaction, or
integration of national economic systems through the growth international
trade, investment and capital flows.
Technology:
A development of plans and equipment for solving human problems. It includes
innovations, technique and organizational knowledge of how to do things electronically.
Technology includes computers, internet facilities, telegram facilities and
information electronic devices.
Proactive Change:
Change initiated to take advantage or targeted opportunities. Reactive change:
change but occurs after external forces have already affected performance.
1.10 ORGANIZATION
OF THE STUDY
This
study is organized into five (5) chapters.
Chapter
one is the introductory chapter which comprised of the background of the study,
statement of the problem, purpose of the study, research questions, research
hypotheses, significance of the study, scope of the study, limitation of the
study, definition of terms and organization of the study.
Chapter
two is tilted literature review. This chapter was devoted to review of some
literature/work of previous scholars and writer related to this study.
Chapter
three dealt with the research methodology and it was discussed under the
sections like the research design, population, sample size and sampling
procedure, data collection method, and questionnaire design, operational
measures of variables and data analysis techniques.
Chapter
four is concerned with presentation and analysis of data, and
Chapter
five dealt with the summary, conclusion and recommendations.
AFFILIATE LINKS:
Comments
Post a Comment