Question:
Describe about the Equality and Diversity in the Nigerian Oil and Gas Sector?
In Africa, the oil industry is Nigeria is one of the largest. Oil explored in Nigeria in the year 1956 at Oloibiri located in the Niger delta area. But the oil discovery has brought various problems to the residents of Nigeria. The area has not shown any development as such. Nigeria has a population of about 162 million ranking seventh in the world; with forty nine percent women which includes 80.2 million women. There has been rising gender issues in Nigeria. The women populations in Nigeria do not receive the same benefits like the male counterparts. The legislation of the Government is not in favor of the women. The inequality issues at the oil and gas sector in Nigeria has been studied in the research proposal. Numerical flexibility has been the adopted in Shell Nigeria. The impact of its on the employees has been studied.
In Africa, Nigeria has the largest oil and gas industry. Oil was found in Nigeria in the year 1956 at Oloibiri located in the Niger delta area (Eia.gov, 2015). The oil discovery has brought enough hardships to the people than blessings. The area has not shown any development as such. Nigeria has a population of about 162 million ranking seventh in the world; with forty nine percent women which includes 80.2 million women [Anon, (2015)]. It must be noted that without recognizing the equality of women, no country can prosper in any field of work. The International Professionals in Energy Conference (IPEC) addressed on the opportunities and challenges that women can forward their career in the oil and gas sector also. Due to the large geographical disparity of Nigeria it has certain challenges and also opportunities related to the gender inequality. It is seen that the human development for women are far worse in the north region where the levels of poverty are twice high as compared to the southern part.
The discovery of gas and oil in Nigeria has brought hardships for the people rather than blessings. Since the time of discovery of oil by Shell in the year 1937, oil is exploited on a continuous basis (Johnson, 2010).
In Nigeria, the total women workers are about 15 per cent of the total workforce in the oil and gas industry. Women are mostly employed in various in house departments ranging from administrative, medical to public affairs and as well as legal departments. This is due to the fact of the hostile nature and harsh work conditions of the oil industry. The remote places of worksites and the conflict between family and work the women face make them less prone to work in the oil and gas industry. Moreover violence like rape, molestation, assault etc. on women has increased in Nigeria in recent times (Johnson, 2010). An apparent fact is that no development can be at local or international level without recognizing women; which can be done by empowering making them skilled and investing on their skills so that they could be utilized for better work condition.
Most of the countries in the world have very few women working in the oil and gas industry mainly in the administrative sector which accounts to only 10 to 20 percent of the total population of the countries. The Australian oil industry has pointed out that the oil industry is not ‘female friendly’.
The assignment will bring out the topic of numerical flexibility in Shell Nigeria. It has been affecting the employees for quite long time. It is important to analyze the issue that has been applied by one of the largest oil companies in the sub Saharan region.
Not only Nigeria but almost all oil and gas producing countries in the world are of the notion that women are weak as compared to their male counterparts in order to work in the oil and gas industry. Thus they are better suited for administrative work like medical, legal, public affairs etc. The study will highlight the areas regarding the various issues faced by the workers in the oil industry in Nigeria and how those issues can be resolved so that women feel free to join this sector and earn their livelihood. Inequality and diversity issues have been a great problem in Nigeria where women are treated harshly and rudely in the male dominated society.
The assignment contains the following details:
In Chapter 2: We will discuss about the ‘LITERATURE REVIEW’ review regarding the study.
In Chapter 3 the Introduction of the study, Research Methodology which will include the Research Method adopted, the type of data collected is stated. The data collected can be primary or secondary. This chapter also includes the Research Design, Interview Design and the Population on which the study was carried out. Chapter 2 also contains The DATA ANALYSIS part Reliability and Validity of the study the Ethical Issues regarding the study and the Summary of the Methodology.
Chapter 4 briefly contains the Discussions and Findings.
In Chapter 5, we discuss about the Conclusion, Recommendation, Limitations, and References taken. Apart from this there is Appendix 1 which contains The Interview Questions and Appendix 2 which contains the Transcribed Interview of a participant.
Introduction
This section introduces a basic survey of the accessible literature on flexibility. The section has been divided into three expansive subsections. The main area is a diagram of the development of human asset administration as an order and the key connections in the middle of flexibility and HRM. The second gives a discriminating examination of the idea of flexibility in light of the works of prior scholars and the suggestions for key human asset arranging. This prompts the third area which analyzes the effect of numerical flexibility on representatives with specific reference to the current literature on the Nigerian oil and gas industry.
Human resources, alongside money related and material assets, add to the creation and conveyance of products and administrations in any association. It is through the joined and cement endeavors of individuals that budgetary and material assets are saddled to attain to hierarchical objectives. The position of the administration of human resources in associations has experienced a considerable measure of move over the long haul, from one of relative inconsequentiality to one of vital criticalness. The administration procedure obliges that fitting consideration ought to be put on the proficient usage of assets, with specific reference to human assets. As of late, the term ‘human resource management’ now supplant the term personnel management’ (Mullins, 2007 p.480). The level headed discussion, as portrayed by Mullins (2007), is to a great extent focused on the suggestion that HRM is another and different logic with an ideal model transformation towards a more vital way to employee management. The Chartered Institute of Personnel and Development (2006) in Mullins, (2007 p.481) characterizes HRM as “the design, implementation and maintenance of strategies to manage people for optimum business performance including the development of policies and processes to support these strategies and the evaluation of the contribution of people to the business”. This definition gives an outline of the general goal of the HRM capacity. Quite compelling notwithstanding, is the point by point definition gave as a progression of exercises which: first empower working individuals and the association which utilizes their aptitudes to concur about the goals and nature of their working relationship, and furthermore, guarantees that the assertion is satisfied (Bratton and Gold, 2000).
Dessler (2000) has been able to identify the significance of the representative in the administration of the vocation relationship. This is a takeoff from customary faculty administration which was to a great extent focused on overseeing by destinations and the hobbies of the association were put in front of those of the workers. The development of the HRM work after some time has been determined by new improvements in data and correspondence innovation, changes in the realm of work including the ascent of adaptable working game plans and in addition the expanding criticalness of mental contracts. Gilmore and Williams (2009) have recommended that HRM intends to incorporate individuals administration with business technique while encouraging change and advancement. Visitor goes ahead to call attention to that empowering worker flexibility, responsibility and commitment and also creating representative abilities are among the expansive suggestions of HRM. The utilization of HRM spots an accentuation on creating representative ability and gives the association a chance to speak straightforwardly with representatives, keeping them educated of business advancements. In Guest’s view, this serves to encourage a solid hierarchical society in light of the reason that there is a typical reason in the middle of manager and worker (Bratton and Gold, 2000).
It is evident that, an adaptable and versatile workforce is a principal characteristic of the HRM attempt. In contemporary human resource management practice, human resource plan plays key part in foreseeing an association’s future prerequisites for human assets. This has prompted the utilization of the twin ideas of “hard” and “soft”. While these two methodologies raise applied issues, the principle challenge for the current HR capacity is coordinating both ways to create a profoundly beneficial workforce and gainful business element.
In conceptualizing flexibility, both methodologies (hard and soft) send the practice as a reaction to the context oriented circumstance of the association. Martin (2009) has focused on the point that the hard way to work flexibility is a peculiarity of faculty administration. She contends that the utilization of flexibility in that connection is pretty much determined by the association to expand productivity and benefit with inadequate respect to the needs of the representative. A basic investigation of Dyer’s study uncovers that this was mostly the case in manual businesses where the specialists’ data in the creation procedure was fairly ordinary and laborers obliged large amounts of managerial control. Flexibility consequently was conveyed as an apparatus of managerial control and guaranteeing the coherence of the creation prepare, a perspective imparted by Mathis and Jackson,(2003). With changes in social and financial conditions that have occur in late decades, the case for flexibility as was made in the early 1980’s has offered route to a contemporary methodology. As Mondy, Noe and Gowan (2005) have contended, the business case for flexibility has transformed from one of negative intention of managerial control, to one in which managers and workers are effectively looking for adaptable working courses of action as a method for enhancing work-life offset, worker engagement, inspiration and duty. With the workforce effectively looking for adaptable working courses of action, associations look to apply both the hard and delicate way to flexibility to keep up profit and proficiency. Bosses are presently more aware of “marking” and adaptable working now be one of the devices for enrolling and holding ability (Mullins, 2007).
From the above exchange in this manner, it can be contended that the HRM development that has advanced on the once more of conventional faculty administration is one of the primary reasons why the flexibility level headed discussion is more noticeable in contemporary associations as adaptable resourcing alternatives are looked for by businesses and workers (Vecchio, 2007). This not the slightest bit proposes that the dichotomy between staff administration and HRM from one viewpoint, and “hard” and “soft” HRM/HRP on the other, is as obvious as has been depicted. The writing however recommends an inclination of adaptable working alternatives for diverse purposes in the two methodologies (Noe, 2006).The test in the use of adaptable working alternatives notwithstanding, lies in adjusting the needs of the business with those of the representatives.
The idea and hypotheses of flexibility remain moderately obscure in the Nigerian setting, regardless of their prevalence in contemporary western HR writing. Flexibility has numerous implications and the entire thought of being adaptable indicates a circumstance of versatility to change. As Reilly (2001) recommends, flexibility is an adaptable idea in itself and can be molded to fit the needs of the analyst. In particular terms, flexibility signifies ‘the nature of responsiveness to evolving conditions’ (Tailby, 1999: 458). The thought of flexibility is not just utilized by associations to respond as a part of the transient to unverifiable changes, but at the same time is utilized by executives to deliberately drive the business sector, present items went for changing open and administration tastes, and settle on choices as far as vulnerability to maintain occupation cuts. It is likewise progressively utilized by the management to separate and designate different segments of work. Nonetheless, a refinement is made in the writing between outside or work market flexibility and inward flexibility. The idea of flexibility was initially utilized as a part of the 1960’s by Igor Ansoff. He proposed that organizations need outer and inner flexibility to adapt to capricious occasions. Ansoff had connected outer flexibility to ‘the slaying of not putting all of one’s investments tied up on one place (Harris, Watson and Leopold, 2005). They contended that outside flexibility alludes to the capacity of superintendents to bring in adaptable specialists from outside the organization through which a vocation relationship can be effectively settled and broken as required. As to flexibility, he expressed that that it ‘tries to give a pad to reaction to calamity’. Through inward flexibility, associations keep up adaptable relations with their current workers and roll out improvements to their obligations and working hours as required. The most recent three decades have seen an immense change in authoritative goals. There has been a significant movement from augmenting productivity, i.e. creating the most at the least cost and in time, to amplifying quality as encapsulated by TQM. This put the issue of flexibility on the front burners as associations looked to adapt to instabilities. Flexibility turned into a fundamental piece of the new train of human asset administration, giving an approach to associations to oversee time, materials and individuals all the more adequately inside the upturns and downturns of a worldwide economy. As has been said prior, flexibility additionally turned into an approach to draw in and hold capable representatives in a very focused work market (Chubb, 2008).
Various ambiguities is associated with defining the concept of flexibility. The ambiguity on the idea of flexibility was raised by the work of John Atkinson. Managerial enthusiasm for the idea of flexibility was excited after the distribution of Atkinson’s work on the adaptable firm in the 1980’s (Procter et al., 1994). Atkinson’s model has been exceptionally persuasive and produced exceptional scholastic civil argument about its merits and faults as a device of investigation. There have been various refinements to the model; however the fundamental structure has continued as before. The principle gimmick of the model is in view of the supposition that there exists an ‘adaptable firm’ which Atkinson sees as one that is focused in the advanced business environment. This firm is comprised of three fundamental gatherings of workers: center specialists, fringe laborers and a third gathering that are utilized just on a subcontracted premise (Sachs, Groth and Schmitt, 2010).
The core group is comprised of representatives who have the relative security of lasting contracts and whose aptitudes are of awesome worth to the head honcho. Consequently, the center workers are relied upon to exhibit an abnormal state of useful flexibility over an extensive variety of assignments. Pilbeam and Corbridge, (2010) proposed that this gathering will regularly incorporate information specialists, chiefs and other expert and specialized staff. This gathering is viewed as basic to authoritative achievement and through the ownership of vital learning, aptitudes and capacities which separate the association in aggressive situations. As an outcome of this, they are ordinarily decently compensated and have a tendency to have admittance to expert advancement and vocation movement to secure their long haul duty to the association.
The ‘periphery’ can be further categorized into primary as well as secondary categories. The essential gathering structures a piece of the association’s inside work advertise as in representatives in this gathering are utilized on contracts that have a certain level of perpetual quality. Individuals from this gathering have a tendency to have lower abilities than associates who appreciate the status of center representatives (Sachs, Groth and Schmitt, 2010). As people, they are less key to the accomplishment of the association as their abilities are all the more promptly accessible in the work market. As an outcome of this, they appreciate far lower professional stability as they have a tendency to be the first gathering to be laid off when the business encounters any type of financial downturn.
Beyond the second peripheral group are those representatives who are clearly outside to the association. Individuals from this gathering have a tendency to be utilized by an alternate superintendent or in independent work. Marchington and Wilkinson (2006) point out that this gathering has extended fundamentally in the course of the most recent two decades because of the increment in subcontracting and outsourcing inside associations. This gathering can likewise be extended to incorporate org laborers (Bach, 2005). Research studies have set forward various reasons why host associations initiate impermanent specialists through pro organizations, including moving of danger to the offices and accumulating laborers ‘without a moment to spare’ to tackle particular undertakings or fulfill set errands. Atkinson recognized two principle models of flexibility; useful and numerical which have been extended to incorporate fleeting and money related (Belcourt, Bohlander and Snell, 2005). The primary center of this work nonetheless, is numerical flexibility which is basically analyzed in the following sub section.
Numerical flexibility is at the heart of Atkinson’s model of the flexible organization. This is on the grounds that the general thought of numerical flexibility proposes that the association can react rapidly to changes in the inside and outside work showcase regarding the quantity of individuals it utilizes. This is attained to through the utilization of options to routine full time and lasting representatives, for example, fleeting contract staff, moving contracts, outworkers, and easygoing staff among others.
Belcourt, Bohlander and Snell, (2005) pointed out that numerical flexibility permits the association to extend or diminish work supply in extent to the interest for products and administrations. As a consequence of this, associations have the capacity to align in specialists with the “crests” and “troughs” in the business handle through what is alluded to as contracting and terminating. The utilization of numerical flexibility likewise permits the association to get work with particular aptitudes ‘without a moment to spare’ to finish a particular errand through a quick enlistment process. As has been expressed prior, it can be contended that numerical flexibility is the most clear manifestation of hierarchical flexibility. This is on account of the association reacts to a blast by expanding the workforce and reacts to a downturn by scaling down and redundancies. Atkinson (1984) contends that this methodology permits the association to make a fringe gathering to cradle against vulnerability in the process of childbirth business patterns, to adapt to crest and troughs and to cover fleeting unlucky deficiency. In the UK altered term contracts are the most well-known types of brief work making up around 51 percent of the makeshift gathering. In putting forth the business defense for flexibility in the UK administrations division, it has been stated that flexibility is the way to keeping any association above water in the furiously aggressive business environment. The involvement in the UK fabricating division is likewise a for example. A sample is the Nissan car assembling organization in Sunderland that has as of late enrolled around 1,000 adaptable workers to dispatch ’round the clock’ generation in light of expanded interest for its lead item. The use of numerical flexibility hence is pervasive crosswise over commercial enterprises as associations strive for productivity and benefit. The recent thought of ‘work forever’ has been dissolved by the increment in adaptable filling in as various specialists now have the chance to work for more than one superintendent (Benson et al., 2000).
Throughout the years, various scholars have proposed comparative models to Atkinson’s (Dessler, 2000). Notwithstanding, Atkinson’s model has remained the most persuasive in dissecting hierarchical and work market flexibility and has created a considerable measure of contention and level headed discussion. A basic examination of Atkinson’s adaptable firm model uncovers various applied and viable issues that have a tendency to have suggestions for its application in associations (Kahancová and Meer, 2006). Key to the idea of flexibility is the thought that that there exists two gatherings of workers; the center and fringe. This idea has echoes comparable ideas of work business division and social stratification use in financial and sociological examination. Utilization of these variables in the setting of the adaptable firm is somewhat dubious (Ketkar and Sett, 2010). Atkinson’s model accept that the work market has been homogenous throughout the years and the center/fringe qualification is something new. Pollert brings up that this is off base as the center/fringe banter about has existed ever political open deliberation (Boreham et al., 1996). More significant in Atkinson’s model is the idea that the center is comprised of aptitudes that are vital to the association’s prosperity and presents the fringe workforce as to a great extent easygoing and incompetent. However call attention to that very nature of numerical flexibility permits the director or association to place gifted representatives in the fringe and unstable work market (Martin, 2009). This is obvious in current associations where gifted specialists are gotten only for a particular venture. Inquiries emerge hence with reference to whether laborers ought to be delegated center in light of the fact that they interface with clients or fringe on the grounds that they are part-clocks. The judgment of what aptitudes are center is frequently left to the director who is given the flexibility to structure the workforce in like manner (Arvanitis, 2005).
Additionally contends that the utilization of the adaptable firm model as a systematic device is limited because of its prescriptive nature. It is hard to choose an association that will fit into the structure set forward by Atkinson (Worren, Moore and Cardona, 2002). However it has been found that more firms have started to hold onto flexibility as a vital alternative as anticipated by Atkinson. The model additionally tries to draw out a direct relationship between flexibility of work and flexibility of generation (Boreham et al., 1996). There is difference about the expenses and profits of numerical flexibility as it is hard to gauge the gainfulness levels of the adaptable representatives in connection to their center associates.
In the UK there are few lawful limitations to the utilization of numerical flexibility. Adaptable workers don’t have the same rights as their associates in the same employments. New enactment has been passed as of late to give adaptable workers the same rights as their perpetual associates after a qualifying time of 12 weeks (Valverde, Tregaskis and Brewster, 2000). Specialists in the Nigerian work business don’t appreciate such insurance. Head honchos have a tendency to utilize numerical flexibility to undercut the current enactment. This is done in different unpretentious ways, i.e. managers could captivate the administrations of a colossal number of foremen under contract for administration, as this bears the executive the chance of not having any formalized concurrence with the specialists and spares cost. For instance, in Nigeria, work regulations express that specialists are relied upon to be given a composed contract, in the wake of working in a work environment for a period not surpassing three months (Labor Act, 1971). Notwithstanding, specialists work past this period, at times for a considerable length of time with no composed contracts, benefits and other incidental advantages with either the foreman or organization they work for. One might say, these issues have additionally been upgraded by a frail union, out of date work approaches and the absence of structures set up to implement regulations (Hanratty, 2000). The following segment takes a gander at the utilization of numerical flexibility in the Nigerian oil and gas industry.
Numerical adaptability has been utilized as a vital apparatus by MNC’s in the Nigerian professional workplace through the years and is pervasive in the trans-national, multinational, private industry and casual parts. This has escalated in the course of the last few decades because of expanded worldwide rivalry and the journey for amplification of benefit. For example, between the late 1930s and 1960s, Shell supervisors had 100% self-rule regarding the quantity of laborers they enrolled and the territories to which they were sectioned in the work market. Amid this period, Nigeria was under the British pioneer standard. Income earned was part between Shell, the pioneer government and the UK (Gooderham and Nordhaug, 1997). Indeed after Nigeria picked up freedom in 1960, numerous indigenous specialists were still set in the fringe of the firm while outside ostracizes commanded the center of Shell’s workforce (Riley, 1992).
Toward the end of 1970, out of twelve individuals in administration framework, stand out was a
Nigerian and he was not by any means included in the specialized methodology of delivering and showcasing oil. In the expert and specialized positions, barring bookkeepers what’s more restorative faculty, there were twice the same number of exiles as Nigerians. In the evaluation of supervisory staffs, the numbers were about even (Mordi, Mmieh and Ojo, 2012). The organization has prepared around three hundred and forty (340) graduates amid the twenty-five a long time of exercises in the nation. This is for an organization whose turnover a year ago (1970) alone surpassed four hundred million pounds. Before the autonomy of Nigeria in 1960 and the few years quickly after, this circumstance was faulted for the way that Nigerians failed to possess the imperative ability to attempt the majority of the touchy employments named the center. Numerical adaptability amid this period put indigenous laborers in the outskirts and kept up a little center of ostracize staff. The few changes inside the creation of the inner work business sector of Shell just came in the wake of the nationalization approach of the Federal Government in 1973. These laws viably set the petroleum and gas assets in the hands of the Nigerian government and actually constrained Shell to retain more Nigerians into the center workforce. The worry of Shell directors to keep hold of control is connected to the extraordinary multiplication of atypical work contractual administrations as of now metered out to indigenous specialists. This circumstance, which has prompted the underestimation of indigenous laborers, has obviously encouraged the structures of control as showed in a two-level workforce. (Majchrzak, 1993)
Numerical flexibility as a method for controlling the work business sector has not just been utilized to make a two-level workforce. It has additionally been utilized to isolate indigenous laborers to the outskirts through the concentrated utilization of outsourcing and direct-employed contract (Kalleberg, 2003).
The circumstance in the oil business in Scotland is useful. Numerical adaptability is alluring to the organizations as it permits them to change the quantity of workers in accordance with the blasts and busts of the oil business, and to hold expenses around driving builders to seek their business (Gooderham and Nordhaug, 1997). Outsourcing is additionally unhelpful regarding security. Similarly as with a transient workforce, it is difficult to look after preparing, trust and union, and outsourcing smears the obligation regarding mischances in the middle of administrators and foremen. On the other hand, recounted records recommend that the use of numerical adaptability by Shell BP and Shell Nigeria contrasts in extent. While Shell BP in Scotland has a far less number of workers in examination to Shell Nigeria, the extent of adaptable representatives occupied with Nigeria (70 percent) is higher than those occupied with Shell’s North Sea operations in Scotland (Conley, 2006).
The primary ramifications of the applied utilization of numerical flexibility identifies with its contrarily with picking up representative responsibility to the association. Numerical flexibility makes a circumstance where work is conveyed to the association as and when needed, to amplify transient productivity. It has been depicted that t this as ‘attaining to flexibility through shakiness’ which thus makes low responsibility, inspiration and confidence from representatives. They propose that staff on unsafe contracts don’t relate to the points of the association. It can be contended thusly, that as an outcome, staff turnover rates will be higher in adaptable firms. Such associations may need to adapt to challenges in enrollment and maintenance as workers who are seen as “fringe” by the association start to act as needs be by showing an emotionless disposition to work (Hollenstein, 2003).
Besides, there is a peril that the utilization of numerical flexibility fabricates an exceptionally incompetent and untrained workforce for what’s to come. This is on the grounds that associations are hesitant to contribute assets to prepare fringe representatives since the method of reasoning for captivating them in any case is to spare expenses. It has been proposed that on the grounds that managers see their association with the fringe workforce as moderately short-term, they see no intrinsic monetary favorable circumstances for interest in preparing. This creates an uneven relationship in which the representative is dependably off guard (Zhou, Dekker and Kleinknecht, 2011).
A third ramifications, nearly identified with the above, is the utilization of numerical flexibility as an apparatus for managerial control. Workers on unsafe contracts are dependably effectively looking for security. By advancing a definitive prospect of being coordinated into the center workforce, businesses have the capacity to practice extraordinary impact over easygoing/fringe representatives. Over the long haul, this develops work-related anxiety for the representatives and has critical outcomes for their long haul wellbeing and prosperity (Nesheim, 2003).
Interpersonal connections in the working environment are additionally genuinely influenced by the utilization of numerical flexibility. This is especially the case in the Nigerian connection. The conceptualization of numerical flexibility as has been talked about prior makes an unequal work environment which is reminiscent of the unequal society. This circumstance makes a work environment that is not iron. The consequence of this is the production of groups inside the work environment and can have a tremendous effect on authoritative execution (Carvalho and Cabralâ€ÂCardoso, 2008).
In the Nigerian oil and gas industry, where the act of numerical flexibility (casualisation) is boundless, numerous easygoing/contract laborers are higher foundation graduates or gifted professionals, experienced drivers with long years of administration, administrative and assistant staff with regulatory aptitudes, and so forth. The vast majority of these workers spend quite a long while in their associations and are alluded to and treated as easygoing/ contract specialists. In some oil and gas organizations particularly those possessed by indigenous ambitious people, inspite of the way that their agreement staff are qualified to be made lasting staff, they are made to stay easygoing/contract laborers on a slave wage with a perspective to continue augmenting super-ordinary benefits at the barest least work cost.
A portion of the misfortunes of easygoing/contract laborers caused as specified by include: appalling low wages in examination to center representatives; unlucky deficiency of restorative care or recompenses; absence of employer stability or advancement at work, absence of benefits, tip and other severance advantages; absence of leave or leave stipend; imperiled opportunity of affiliation; absence of death advantage or mischance protection at work; nonappearance of arrangement or aggregate dealing understanding in the working environment (Addessi, Saltari and Tilli, 2014).
While these associations keep on making gigantic benefits, nature of work and life when all is said in done keep on dropping for workers. This is generally fuelled by the high rate of unemployment in Nigeria and the aggregate suspicion is that, a hard or awful employment is superior to no occupation whatsoever. The circumstance is aggravated by the non-presence of any type of standardized savings and the way that the legislature appears hesitant to tackle the substantial oil firms that accumulate the tremendously required venture to power the state infrastructure (Falconer, 2005). While the effect and ramifications of numerical flexibility on workers in the Nigerian oil and gas part are numerous and fluctuated, there is an absence of observational studies that have examined this sensation. A couple of position papers distributed by unions and the legislature papers have not laid out the full degree of this issue (Kok and Ligthart, 2014). This is incompletely because of the way that the oil and gas multinationals frequently create disinfected information and there is an abnormal state of connivance among the organizations (Kalleberg, 2001).
Conclusion
This chapter has scrutinized the theoretical framework for utilization of the numerical flexibility. The Atkinson’s model has been critically analyzed with significant stress on the numerical flexibility. It can be inferred that the flexible firm model proposed by Atkinson is the most important and relevant model for conceptualization of flexibility. This section also studies the implication of numerical flexibility. In case of oil and gas sector in Nigeria, practice o numerical flexibility has significant implications which are associated with non favorable conditions and terms of employment. Research gap has been identified in terms of the effect on employees in terms of compensation, job security, employee morale and motivation. This research will focus on filling the research gaps through understanding the role of numerical flexibility in context of Nigerian oil and gas sector.
Introduction
The process in which the research is conducted is described in the chapter of research methodology. The methodology of research is made focusing on the problem statement that has been mentioned in the first chapter (Bernard, 2011). The appropriate methods have been selected on the basis of the aims and objectives of the research. The methodology of the research has to match with the objective of the research (Kothari, 2004). The validity of the research can be addressed and the readers will be able to interpret the results by linking with the objectives of the research. The various component of the research methodology is equally important for conducting the research (Khan and Fisher, 2014).
The methods of research can be divided into two segments. They are namely qualitative and quantitative (Goertz and Mahoney, 2012). Usually quantitative analysis is done for large number of respondents that is conducted via questionnaire survey. The qualitative analysis is done by conducting structured and semi structured interviews (Creswell, 2003). The direct response of the respondents can be gathered by arranging structured and semi structured interviews. To find the factors and issues that result in inequality and diversity in the oil and gas sector in Nigeria, qualitative analysis has been done (Benz and Newman, 2008).
The data collection process is primary and secondary in nature (Rubin and Babbie, 2010). But in the present study the researcher has focused on primary data collection process (Kothari, 2004). The research topic focuses on the various factors that lead to inequality in the Nigerian oil and gas sector.
In the present study, interviews have been conducted with the NGOs working on various equality issues faced by the employees in Nigeria in the oil and gas sector. The interview has been conducted with the HR manager of oil and gas companies in Nigeria i.e. Nigeria LNG and Nigerian National Petroleum Corporation. Interviews have been arranged with the leaders of the labor union working in the above mentioned oil companies in Nigeria (Samouel et al., 2011).
The research approach provides a systematic structure to the entire research. It gives the research a proper direction (Maxwell, 2005). The research has been conducted to identify the factors that result in inequality issues in Nigeria. To proceed with the research is a proper way; the researcher has used the philosophy of positivism, deductive approach, descriptive design and primary data collection process (Jackson, 2005). Qualitative method has been used in the present research (Balnaves and Caputi, 2001).
Research provides a systematic structure to the way in which the research will be conducted. The research is conducted using significant steps. All the steps of the research are designed in particular series (Johnson et al., 2007). The author will reach at a desirable conclusion by going through each layer of the research onion. The strategies of the research are framed by the research onion. The objectives of the research can be met in a systematic way.
The first layer of the research onion is the research philosophy (Willis, 2008). It means that the other methods of the research are dependent on the research philosophy. In the present study, the author has to choose the right philosophy of research in order to determine the equality issues in the oil and gas sector in Nigeria. In the present study, the researcher has attempted to describe an insight analysis of the topic so that the research can be conducted in a better way. Among the various philosophies of research, the researcher has used the positivism of philosophy. The author can identify the real facts via identification of the various factors that affect the equality and diversity at the oil and gas sector in Nigeria. Positivism is the best way that helps the researcher to make a detailed structure of the particular research (7th European Conference on Research Methodology for Business and Management … Academic Conferences, 2008).
The second layer of the research onion is the research approach. There are two approaches of research. They are the inductive approach and the deductive approach (Babbie, 2007). According to Brannen (2009), the inductive approach follows observation, collection of data and analysis of the data by using effective tools of analysis and potential theories are developed in relation to the topic of the research (Devey, 1854). On the other hand the deductive approach goes through selection of appropriate theory, testing of the hypothesis, analysis of the data and implementation of the theories by analysis of the data and finally confirmation of the evidences gathered from the theory (Jones, 2004).
In the present case, the theories have been already described in the chapter of literature review. In the next chapter the data collected has been analyzed in order to show the worthiness of the evidences gathered from the theoretical evidences. In order to determine the issues affecting the employees at the oil and gas sector, it is important to identify the various factors that have resulted in the issues at the oil and gas sector in Nigeria.
The design of the research forms the third layer of the research. The result of the data analysis is interpreted by the researcher in this chapter. The data analysis is done on the basis of the objectives and the purpose of the study (Creswell and Plano Clark, 2007). There are three basic designs of research. They are exploratory, explanatory and descriptive. In the exploratory design of study, the back ground information related to the problem statement is enlightened. It has been opined by Crouch and Pearce (2012) that the explanatory design helps in finding out the reasons behind the problem statement. On the other hand, the descriptive form of the design relates the objectives of the study with the findings obtained from the study (Bickman and Rog, 1998).
The present study has been conducted by the researcher to relate the findings and conclusion of the research with the objectives of the research (Vaus and Vaus, 2005). The objective of the research has been mentioned at the beginning of the research. The researcher has maintained a relationship between the two segments of the research which shows the dedication and attentiveness of the researcher ( Lancaster , 2012).
Qualitative research can be complicated depending on the level of experience of the researcher. The researcher can expand his knowledge and experience using the qualitative design of the research. One of the most popular areas of a research protocol is the interview protocol. The interviews provide in- depth information from the experience of the participants and viewpoints regarding a particular topic. The present research has used semi-structured interview (Wengraf, 2001). The interviewer has a clear focus and a goal of the interview. In case of semi-structured interviews, the researcher remains open in having his understanding his view point. The researcher will ask open ended questions to the candidates. This open ended question allows the researcher to gather detailed information as desired. The participants can express their point of view fully. The biasness of the researcher is reduced by interviewing the participants using open ended questions (Hesse-Biber and Leavy, 2006).
As the research is based on primary data, sampling is a crucial method for selecting the samples. The sampling method is followed to select the appropriate candidate for the study. The sampling method is of two types. They are probability sampling and non probability sampling. Probability sampling method is the type of sampling method that uses a specific process to collect the samples. The individuals in the population get equal chances of being selected from the sample. On the other hand non probability sampling is based on the subjective judgment of researcher. It is not dependent on random selection. Non probability sampling is also known as convenient sampling. The convenient sampling is used for the reduction of the deviation of the responses collected from the candidates in case of primary data collection (Sekaran and Bougie, 2015).
In the present study, the researcher has interviewed ten candidates. Among the ten candidates chosen for the interview, three were permanent employees working at Shell Nigeria, three were contractual employees at Shell Nigeria. Four senior level management employees working in Shell Nigeria were interviewed. One of them was the Human resource manager.
The design of the qualitative research is to analyze the data collected in the field via in-depth analysis. Qualitative analysis transforms the data into findings. Qualitative analysis aims at labeling and coding the data in order to identify the similarities and differences can be determined. The analysis of the qualitative data collected through interviews, observation, focus groups and documentary analysis can be done. In the present study, data for qualitative analysis has been collected via semi-structured interviews. It involves direct interaction between the researcher and the respondent. The semi-structured interview is different from traditional structured interview. In case of semi-structured interviews, the researcher asks some core questions regarding the interview. There is no formal structure of the interview. The interviewer can move the conversation in any direction of interest in order to derive the correct answer. Using semi-structured interview process the researcher can explore the topic broadly. But the major issue with semi-structured interview is that it lacks a proper structure (Sekaran and Bougie, 2015).
Reliability is the degree in which the research provides stable and consistent results. There are various types of reliability of a particular research. It can be test-retest reliability, Parallel forms of reliability, inter-rater reliability and inter-consistency reliability. In the present research the internal consistency reliability test has been performed to evaluate the degree to which the different items of the test that probe the same construct produces similar results. Apart from reliability, validating the research is essential. Validity measured the fidelity of the research. It verifies whether the test actually measures the construct or the dimension. The validity of the research is obtained by comparing the test with other data or similar processes. In order to eliminate the errors of the research, the researcher has to eliminate the dimensions that evoke varied and inconsistent responses.
The ethical issues must be followed in conducting the survey. It will help to proceed with the research in a systematic manner. The reliability of the research is verified by the ethical considerations of the research. The data that has been collected for the research is used for commercial purpose. The questions in the interview have been asked in such a manner so that no personal questions can bother the respondents which can result in deviation of the responses from the desired results. The valuable information gathered from the interview has been kept strictly confidential. Another way in which the ethical issues of a research can be addressed is by using appropriate style of referencing. This will make the research more valid and reliable towards the readers.
The researcher has faced several limitations at the time of conducting the research. They are given below –
The entire research is based on primary data. This is a limitation. It is important to verify the primary data with secondary data. The historical results of the organization have to be pursued pointing the changes to the organization that has been adapted.
Time constraint is a major limiting factor in the present research. The research could have been conducted in a vast way if time was not a limiting factor in the research.
At the time of conducting the interview, the researcher has faced several difficulties to gather the primary data for the purpose of analysis of data. This will deviate the results of the study from the expected results.
The researcher has tried to adapt suitable techniques of the research for each component of the study. The choice of the techniques of the research is based on the prospects of the research and the objectives of the research. Each component of the methodology of the research has been chosen in a systematic manner to maintain the sequence of the research. In the present research, qualitative analysis has been selected to evaluate the factors responsible for rising equality and diversity issues in the oil and gas sector in Nigeria. The data analysis has been presented in the next chapter.
Question 1
What is your perception of numerical flexibility?
According to the employees working in the Nigerian oil sector, numerical flexibility is the ability and possibility of the organization to adapt the number of employees on a short notice. It can be said from the response gathered from the interview that an organization adapts to numerical flexibility to increase or reduce the number of employees by working employees on a temporary basis and employing people for fixed term contract. It can be said that numerical flexibility reduces the employment security rights ( Combined response of the employees).
Question 2
How are you affected by Numerical flexibility?
One of the major points expressed by the indigenous workers is that the employment at the oil and gas sector in Nigeria is being threatened on two fronts. The first fear of the employees is that the indigenous workers are being replaced by the expatriate workers and the indigenous workers are being threatened by the secondary workforce. The secondary workforces are being promoted by the initiatives from the managers. The managers working in the oil sector in Nigeria has started anti-indigenous managerial schemes since 1996. According to the employees numerical flexibility has adversely affected the indigenous employees. The indigenous workers have to experience redundancy, sackings, dismissal and demotion from the higher level. The salary of the indigenous workers is affected ( Combined response of the employees)..
Question 3
What are key disadvantages of numerical of numerical flexibility?
The major points put forward by the employees as the disadvantage of numerical flexibility is that the indigenous workers are being affected by numerical flexibility. The indigenous workers suffer from job insecurity after serving the organization for a long period of time. The managers working in the oil sector are concerned of maximizing the profitability without thinking about the indigenous workers. The managers of concerned of enlarging the secondary work force comprising of expatriate workers. The indigenous workers face discrimination, redundancy, sackings and they often face demotion from a higher level to a lower level. The indigenous workers in the oil sector suffer from insecurity due to subtle injection of the managers and encouragement provided to them to the secondary work force (Combined response of the employees).
Question 4
Please express your idea about the use of numerical flexibility in the oil sector in Nigeria
According to one of the HR managers, numerical flexibility has been applied in the oil and gas sector in Nigeria. According to them, sometimes a possibility arises where the management has to replace the core or the permanent employee with a reliable contractual worker. This is done to reduce the cost of the company. The temporary worker can be converted into a permanent worker with immediate effect. Numerical flexibility is applied in the oil sector in order to keep the indigenous workers at the core sector and the service sector. This is primarily done to reduce the disputes and strikes caused by the labor union. Thus there is increase in propensity for the recruitment of secondary workforce (Senior level management of Shell Nigeria).
Question 5
How is the organization benefitted from numerical flexibility?
Numerical flexibility has benefited the oil and gas sector largely. The view of one of the managers reflects that numerical flexibility has divided the workforce into two segments. The workforce of Shell Nigeria has been divided into permanent employees and peripheral or contractual employees. The contractual workers are not paid the additional benefits like the permanent employees. This is mostly done to maximize the profit by reducing the expenses of the organization on salary (Senior level management of Shell Nigeria).
Question 6
How much prominence does numerical flexibility have in Shell Nigeria against the flexible firm model?
According to the flexible firm model, secondary workers are not provided the same privilege like the permanent employees. In Shell Nigeria, the secondary workers working at the core segment do not enjoy the same benefits as the expatriate workers. According to one of the HR managers, the Shell management is constantly recruiting employees and increasing their contract to Nigerians without providing them with any additional benefits. Profit maximization is one of the main motives behind this. But there are various instances in the Shell Nigeria where the peripheral employees are being transformed into permanent employees. According to the flexible firm model the internal employees should not receive any benefits like the permanent employees (Senior level management of Shell Nigeria).
Chapter 5 : Conclusion
Objective 1
To gather the response of the employees regarding their perception of numerical flexibility and how they are affected by it
From the response gathered from the employees working in Shell Nigeria, numerical flexibility is the way in which organization can recruit contractual employees and at the same time adapt the existing employees. The organization adapts to numerical flexibility to increase or reduce the number of employees by working employees on a temporary basis and employing people for fixed term contract. The indigenous workers has experienced numerical flexibility in their organization Shell Nigeria has been recruiting secondary contractual employees at the cost of the permanent employees. The senior level managers working in Shell Nigeria has adopted various ways to recruit more contractual workers. This has affected the morale, motivation of the people working as permanently in Shell Nigeria.
Objective 2
To gather the view of the management on the use of numerical flexibility in Shell Nigeria and compare and contrast with the view of the employees.
Numerical flexibility is applicable in the oil and gas sector in Nigeria. There arises a possibility arises where the management replaces the core or the permanent employee with a reliable contractual worker. The company can reduce the cost by taking this measure. The temporary worker can be converted into a permanent worker with immediate effect. Numerical flexibility is applied in Shell Nigeria in order to keep the indigenous workers at the core sector and the service sector. This is primarily implemented to reduce the cost of the organization and reduce the number of strikes done by the labor union working in Shell Nigeria.
The management of Shell Nigeria work for maximizing the benefit of their company. On the other hand the employees suffer from lack of job security as a result of numerical flexibility. The contractual workers are being hired in Shell Nigeria at a constant basis in order to reduce the cost of the organization. The organization will be benefitted by getting the same amount of output at reduced cost. But the permanent employees suffer from job insecurity. They lack motivation to work. They also face issues regarding their salary.
Objective 3
To evaluate the use of numerical flexibility in Shell Nigeria against the background of the flexible firm model.
According to the flexible firm model, secondary workers are not supposed to receive the same privileges like the permanent employees. The secondary employee’s do not receive the same benefits like the permanent employees. The additional benefits can be only experienced by the core employees permanently employed in Shell Nigeria. This reduces the cost of the company. The Shell management is constantly recruiting employees and increasing their contract to Nigerians without providing them with any additional benefits. Maximizing the profit of the organization is one of the major reasons behind hiring the contractual employees who execute the same amount of work like the permanent employees. According to the flexible firm model the internal employees should not receive any benefits like the permanent employees.
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Employees
Senior Level Management
I would like to share my experience of numerical flexibility by stating an example. An indigenous graduate joining the organization in Nigeria is utilized on employment group 7, while his partner an expatriate joins on that day with the same capability outside Nigeria is utilized on job group 5 (a higher position and compensation). On affirmation the contractual employee is naturally elevated to job group 4, while there is no promotion to the following employment bunch for his Nigerian partner. The impact of this advancement and separation is exceptionally clear and noticeable in that when the contractual employee comes to Nigeria on the foreign assignment, he becomes the manager and boss of the Nigerian counterpart. On the other hand the contractual employee does not receive any benefit. Thus it is evident that numerical flexibility creates division of workforce. It leads to recruitment of contractual employees by sacking the permanent employees. I have seen numerical flexibility creating division in the work force. The organization enjoys the benefit of numerical flexibility. The manager takes initiatives and measures to enlarge the secondary workforce by threatening the indigenous work force. This is primarily done by the organization to maximize their profits. The contractual employee’s does not enjoy the benefits like the permanent employees. I am a permanent employee working at Shell Nigeria and my experience of numerical flexibility at Shell Nigeria has been worse. I suffer from lack of job security. As some of my colleagues have been sacked already, I suffer from discrimination and lack of promotion.
Shell Nigeria has been recruiting contractual employees for quite a long time. I feel that the management is thinking of maximizing their profit instead of thinking of the permanent employees. This has helped the organization but it has not benefitted the employees of the organization. I feel that numerical flexibility has segmented the workforce into two part. One part comprises of the contractual employees and the other part comprises of the permanent employees. I have experienced the way the management is ill treating the permenanent employees. This is very sad. I have lost the value of the job and there is reduction in the quality of my working life.
I feel that there no positive aspect of numerical flexibility from the employee point of view. I feel that it has creates a disadvantageous situation for the employees working at Shell Nigeria. We suffer from lack of motivation to work. It is the organization that is benefitting for numerical flexibility. I feel that my job at the organization is not secured. I can be retrenched at any point of time. The selfish act of the organization is unbearable. This is mostly done to reduce the team work of the labor union members. After so many years of service in the organization, we are considered as liable for the company. It has created a negative mindset amongst us. This is affecting our work.
Shell Nigeria has started numerical flexibility in their organization as a measure to reduce the burden of the company and increase the profit of organization. A general term used to portray laborers in the auxiliary/fringe work business of Nigeria’s oil division is ‘casualisation’. Ostensibly, casualisation is not another term in job relations, notwithstanding, as noted above administration of Shell Nigeria are not committed to this class of specialists in light of the fact that they don’t have direct contractual game plans with them despite the fact that some of these laborers have a tendency to stay optional over a drawn out stretch of time. There is a contention to be made be that as it may, that occasionally the way Shell Nigeria utilizes the optional/fringe workforce refutes the hypothesis of the adaptable firm. On account of the double work market division hypothesis, casualisation alludes to all specialists except for changeless laborers as auxiliary/fringe specialists. It hints a livelihood condition where the contractual terms and conditions may fail to possess the component of security and dependability. For example, I looked after that ‘most laborers in Shell and the oil part don’t see casualisation in a decent light, they see an easygoing specialist as one whose employment is not considered excessively important, a non-lasting, non pensionable laborer and not qualified for organization welfare advantages i.e. transport, lodging, therapeutic’
I personally feel that Shell Nigeria has implemented the policy of numerical flexibility in their organization as a measure to reduce the burden on the company. The decision has been taken by the company after meeting with the top management that it is important for the organization to think of maximizing the profit. Thus we have started the process of hiring contractual labors. They do not receive benefits like the permanent employees. This has reduced the burden of the company to a large extent. But we had to do it at the cost of some of existing permanent employees. Thus we had to retrench some of the old permanent employees.
I know of the flexible firm model. According to it, the secondary or the peripheral employees who are not under the direct payroll of Shell Nigeria will not enjoy the same benefits and privileges like the permanent employees. The core employees enjoy benefits as they are under the direct payroll of the company. We know that some of the contractual employees are dissatisfied with this measure as they put the same effort like the permanent employees. But this is the policy of the organization. Our hands are tightly fixed. We are unable to do anything about it.
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