THE IMPACT OF CRISIS ON HUMAN RESOURCE STRATEGY IN OIL COMPANIES IN NIGERIA (A CASE STUDY OF EXXON MOBI)
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THE IMPACT
OF CRISIS ON HUMAN RESOURCE STRATEGY IN OIL COMPANIES IN NIGERIA (A CASE STUDY
OF EXXON MOBI)
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Today, the
changing conditions governing the organizations, increasing the competition and
the need of its effectiveness in such conditions indicate their requirement of
a valuable generation of the employees, a generation which can be called as the
organizations soldiers. Undoubtedly, these employees are the point which means
the organizations are effective. Considering the changes within the
organization, Sarawagi (2008) introduced eight challenges of change in the
employees’ expectations, globalization, balance between work and life,
increasing the moral aspect of the activities of human resources,
organizational restructuring, and management of variety in the work force and
developing group attitude which the human resources facing with, (Sarawagi,
2008); and also in his book of Management Human Resources (2007) and with a
look at both the changes within and out of the organization, Robert Mathis
referred to four major challenges related to distribution and contrasts in
human force, accessibility of the human force and the necessity of improving
quality, economic and technological changes and the structural changes of the
organization (Robert Mathis, 2007). What the different researchers agree about
it is that the human resources cannot cope with the challenges it faces just
through having traditional and conventional roles and it requires playing newer
roles and value creation in other areas.
Ulrich
(1997) mentioned four tasks of strategic partner, administration affair expert,
employees’ supporter and change agency as the future roles of human resources.
The strategic partner is about the compatibility of activities and practices of
human resources with the general business strategy. The administration affairs
expert is about the provision of routing tasks and administrative tasks of the
human resources such as employment, training, services compensation, etc. with
a better quality and lower cost. As the employees’ supporter, the human
resources must be aware of the employees’ needs, care about their interests and
support them against organizational changes. The role of change agency is about
supporting the changes and effects of the business change in the human
resources (Ulrich, 1997).
Lawler and
Mohrman (2003) have considered three roles of administrative, strategic partner
and business partner for the modern human resources (Lawler and Mohrman, 2003).
The characteristic of today’s organization is dynamicity, complexity, ambiguity
and tradition abscondence and dealing with crisis. In the path of crisis, the
organizations are consistently under the influence of the surrounding environment
and they have accepted change as an unavoidable necessity (Rashidi, 2014). With
understanding the fact that the crisis has become the inseparable and essential
part of the organizations of the third millennium, it is necessary to have the
power of being compatible with the recent changes in various social and
economic fields. In order to overcome the uncertain, complex and dynamic
conditions, the only way the managers have is to empower the organization and
employees through obtaining the knowledge and skill which quickly becomes
obsolete. Hence, having capable and efficient human resources which are
considered the base of national wealth and the vital properties of the
organization will be followed by a major amount of advantages for companies,
organizations and economic enterprises (Bazaz Jazayeri, 2002). In the current
era, one of the factors causing crisis in the organizations is inefficient use
of the intellectual resources, mental capability and potential capacities of
the human resources. Most of the organizations do not use the employees’
capabilities in and optimized way and the managers are not able to utilize
their potential capabilities.
The scholars
of change management and optimization of the organization have introduced the
necessity of empowerment of the human resources as an influencing strategy for
organizational performance and optimization and they believe that the human
resources empowerment is one of the attitudes of the modern era which is used
by the organizations right now and in fact, it is a respond to the critical
need of the contemporary era’s management (Kinela and Dennis, 2004). In other
words, one of the conditions of success of any organization for coping with
crises and environmental changes and appropriately reacting to them is to have
strategic look at the human resources. In the same regard, the concept of
development of human resources and a long-time look at providing the human
resources for accessing the organization’s success has been posed and its role
and importance increasingly become more obvious and clearer. The significant
point of this matter is that the human resources development requires paying
attention to the crises, environmental changes and consistent examining of
needs and necessities in order to access the necessary providence for
responding them. In other words, any social system must consistently search and
examine its surrounding environment in order to survive and be alive and be
able to cope with threats, mange the crises and benefit from the opportunities
through identifying the needs, opportunities and environmental threats. Hence,
it is necessary for any organization to identify the facing challenges and
determine the strategies of dealing with crises and manage the different
aspects of crises. Therefore, this study will investigate the impact of crisis
on Human Resource strategy in oil companies in Nigeria.
1.2 Statement of the Problem
In a
situation of crisis, it could be important to create organizational structures
and processes that build organizational resilience potential. Rather than
viewing plans as an outcome of a process to be utilized in a step-by-step
fashion during a crisis, perhaps it is best to consider whether certain
elements of planning activities can lead to effective response through building
of organizational resilience potential that, when realized, enables adaptive
behaviours and takes advantage of improvisation and creativity. When mentioning
the importance of stimulating resilience potential, it is important to refer that
the employees could benefit from it too. When concerning the dilemma that
organizations sometimes face between structure and flexibility, “minimal
structures” are an appropriate template for striking a balance between both
(Bastien and Hostager, 1988; Brown and Eisenhardt, 1997; Kamoche and Cunha,
2001). According to this literature, such a balance ensures that, while certain
key processes are more or less maintained as given, other complementary ones
are allowed to fluctuate in order to facilitate change and innovativeness.
Maybe paying attention to some factors will make a difference in the
organizations in terms of the measures they are forced to apply in turbulence
environments such as in a crisis scenario.
1.3 Research Objectives
The study
has both general objective and specific objectives. The general objective or
main objective of this study is to investigate the impact of crisis on Human
Resource strategy in oil companies in Nigeria. The specific objectives are:
i) To ascertain the effect of crisis
on Human Resource strategy in oil companies in Nigeria.
ii) To examine the economic effect of
crisis on Human Resource strategy in oil companies in Nigeria.
iii) To understand the reasons for crisis
in the department of Human Resource Management in oil companies in Nigeria.
1.4 Research Questions
The
following are some of the questions which this study intends to answer:
i) What are the effects of crisis on
Human Resource strategy in oil companies in Nigeria?
ii) What are the economic effects of
crisis on Human Resource strategy in oil companies in Nigeria?
iii) What are the reasons for crisis in
the department of Human Resource Management in oil companies in Nigeria?
1.5 Research Hypotheses
The
following will be the research hypotheses to be tested for this study
i) There is no significant difference
in crisis on Human Resource Management and employee performance.
ii) There is a significant relationship
between crisis on Human Resource Management and financial performance of an
organization.
1.6 Significance of the Study
This study
focuses on the impact of crisis on Human Resource strategy in oil companies in
Nigeria. Therefore, the main focus will be to try to understand how the
employees are facing the crisis that is affecting the country and most of the
organizations; try to see how they are dealing with the measures taken in terms
of HR and how it affected them and, as a consequence, if it affects or not the
organization, especially in terms of productivity. It is hoped that this study
will be important for practice in the way that if organizations understand how
the measures they take influence so much their employees and consequently their
productivity, they will pay more attention to it and it can be a way to, in the
end, increase productivity.
1.7 Scope of the Study
This study
focuses on the impact of crisis on Human Resource strategy in oil companies in
Nigeria. Port Harcourt, Rivers State shall be the focus of this study. This is
because there are many oil companies in this area. This will make the work
quicker and faster.
1.8 Limitation of the study
This study
faced limitation that need to be taken into consideration. Apart from the
obvious time limit and the delicate subject matter, there were issues that
arose from the methodological choices applied to the study. Some respondents
were not willing to disclose accurate information needed for the validity of
the study.
1.9 Definition of Terms
The
following terms were used in the course of this study:
Crisis: any
event that is going (or is expected) to lead to an unstable and dangerous
situation affecting an individual, group, community, or whole society.
Human
Resource Management: is the strategic
approach to the effective management of organization workers so that they help
the business gain a competitive advantage, Commonly referred to as the HR
Department, it is designed to maximize employee performance in service of an
employer's strategic objectives.
Strategy: involves setting goals, determining actions
to achieve the goals, and mobilizing resources to execute the actions.
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