Introduction
Research Purpose
In the 21st century, one of the recurring debates in the business field concerns the fundamental role played by employees in enabling organizations to accomplish their set objectives, including maintaining competitive advantage in the marketplace (Hakes, 1991).
A rapidly changing economic environment typified by such phenomena as vagrancies of the macroeconomic environment, globalization and deregulation of markets, shifting customer and shareholder demands, and escalating product-market competition, has turned out to be the norm, necessitating organizations to reformulate and restructure their practices and policies to remain relevant (Topolosky, 2000).
The stakes are even higher in the oil and gas industry, which is inarguably affected by a myriad of events as they unfold on the world map (Stevens, 1998).
One of the key priority areas that have been targeted by the oil companies as a matter of urgency is employee satisfaction and motivation, especially after the realization by leaders that people concerns are business concerns, and that success comes through people (Bruce & Pepitone, 1999).
This study is informed by the need for organizations to develop and implement processes and programs that will ensure employees remain productive and committed to the goals, objectives and aspirations of their respective organizations through embracing strategies, programs, and value propositions that enhance their productivity and commitment to the organization.
More importantly, The present study will purpose to critically evaluate employee satisfaction strategies, including current motivation and reward system in Qatar petroleum, with a view to inform human resource policy on the underlying issues related to how employees could be further empowered to push the company’s agenda forward.
Background to the Organization
This particular study will be focused on critically evaluating employee satisfaction, current motivation, and reward system in Qatar petroleum. This state-owned company, which runs joint ventures with other international oil giants such as Shell and Petrochina, is responsible for all oil and gas exploration, processing, and marketing in Qatar and Abroad (Qatar, Petroleum, 2010).
According to Siddiqi (2009), “Qatar, the world’s leading natural gas exporter, is home to the third-largest gas reserves, after Russia and Iran. The offshore North Field’s reservoir, covering a small area of 6,000 sq km, boasts more reserves than the combined proved figure for the Americas and Western Europe, as reported by BP at 756 trillion cubic feet” (p. 49).
The accomplishments of the Qatar Petroleum are mind-boggling, with industry players and published financial data portraying a company with proven verification of stellar growth in the past few years despite the volatility in the global economy occasioned by the 2008 financial crisis (Siddiqi, 2009).
Presently, the company has managed to enlarge its international investment portfolio through prudent management principles, insightful forward investment planning, and strategic investments in oil and gas projects around the world. Consequently, the company “remains focused on achieving long-term strategic targets and objectives…and now plays an essential role in supplying gas to regional markets as well as those in North America, Asia, and Europe” (Qatar Petroleum Home Page, 2010 para. 2 ).
The company’s management takes cognizance of the fact that these set of targets and objectives can only be realized and maintained through strategic investment in human capital. Towards the realization of this objective, Qatar Petroleum has invested heavily on strategies and policies aimed at boosting employee satisfaction to enhance their motivation levels.
Some of the strategies the company has put in place to enhance employee satisfaction, motivation, and reward system includes visas/residence permits, relief cover, overtime eligibility, guaranteed overtime, unscheduled overtime payment, and standby compensation allowances, among others (Employee Handbook, 2010).
Problem Discussion
In the modern dynamic and competitive business environment, many managers are contemplating on which methodologies they can possibly employ to offer satisfaction and motivation to their employees. The ramifications of an unmotivated workforce are a huge expense to the performance and productivity of any organization.
In terms of tangible organizational gains, employees can contribute fresh and innovative initiatives, put in more time and energy to satisfy a strategic customer, or have exceptional capabilities that no one else possesses. Organizations, therefore, stands to gain, productively, when employees are fully committed and engaged to the principles and core values set by management (Chen & Kocaoglu, 2008; Alford, 2009).
According to Harrell & Daim (2010), “managers need to make sure they are in tune with their employees’ motivators…Asking employees what motivates them and listening and acting on their responses is very important ( p. 23).
Not all employees have the same needs or value the same thing in regard to satisfaction and motivation strategies and reward systems. Organizations stand to gain immeasurable benefits from learning and understanding what their employees’ value in regard to satisfaction and motivation strategies and reward systems.
It is a well known fact that employees’ needs and goals are constantly changing and human resource strategies that may be in use today to satisfy and motivate an employee may not necessarily offer satisfaction and motivation some six months from now.
It is against this backdrop that this particular study will aim to critically evaluate employee satisfaction and current motivation levels and reward system in Qatar Petroleum with a view to inform HR policies and strategies on the industry’s best practice and offer remedies that can be used in these areas to achieve optimal employee performance.
Aims of the Study
The general objective of the study will be to critically evaluate employee satisfaction and current motivation and reward system in Qatar Petroleum. The following will be the specific objectives:
- Critically evaluate if the current employee satisfaction and motivation strategies are in line with Qatar Petroleum employees’ needs, aspirations, and goals;
- Critically evaluate the role of Qatar Petroleum’s leadership in establishing processes and procedures that support employee satisfaction and motivation, including the current reward system;
- Critically evaluate the relationship between employee satisfaction on one hand and current motivation and reward system on the other in enhancing employee performance and productivity in Qatar Petroleum;
- Analyze and report on probable alternatives that can be used by management to enhance employee satisfaction and motivation; and
- Formulate conclusions on the way forward regarding employee satisfaction and current motivation and reward system in Qatar Petroleum.
Review of Related Literature
Introduction
This section aims to look at literature related to employee satisfaction, motivation, and reward systems, including the study’s relationship to previous works, Qatar’s Petroleum experience, and formulation of key research questions.
Employee Satisfaction
The earliest employee satisfaction study took place in the decade of the 1930s (Lavigna, 2010). Since that time, significant progress has been achieved, both in applied perspectives and on theoretical fronts.
During the 1950s, established corporations were undertaking employee satisfaction research on habitual basis, and by the 1970s, some research analysts had already designed standardized employee satisfaction questionnaire tools for use by organizations (Sandler, 2010). Since then, thousands of research articles on employee satisfaction have been published (Topolosky, 2000).
In her 1992 research article evaluating the various facets of employee satisfaction, E. Ostroff argued that “…it has been proposed that satisfaction and the happiness of personnel heighten organizational effectiveness…Organizations that alienate workers through their practices will be less effective and efficient” (Topolosky, 2000 p. 15).
Other seminal research articles, including those of Drucker (1955) and Davenport (2000), have demonstrated the fact that satisfied employees are creative and productive employees (Allen & Willburn, 2002). Yi-Feng (2009) noted that organizational productivity and performance are achieved, to a large extent, through employee satisfaction initiatives, including focusing attention to employees’ physical and emotional needs.
Employee Motivation
The seminal studies of “…human motivation started as early as the Greeks, and is still intriguing many researchers today” (Harrell & Daim, 2010, p. 23). To date, numerous theories of motivation has been developed, including A. Maslow’s Theory of Human Motivation (1943), McGregor theories of X and Y (1950s), Herzberg’s Motivation –Hygiene Theory (1987), and Adams Theory of Inequality (2002), among others.
The most excruciating problem with employee motivation is that employers don’t discover motivated employees; they offer favourable environments for employees to become motivated. In her book on ways to motivate employees, Podmoroff (2005) wrote that “…even the sharpest and most refined recruitment and hiring strategies are no match for the culprits of employee de-motivation” (p. 9).
The key for organizational management, therefore, is to show their appreciation for employees’ efforts at the workplace, not only through monetary remuneration, but also through other benefits such as awards, training opportunities (Caligiuri & Lazarova, 2005).
Individuals are motivated by divergent value prepositions, needs, and aspirations (Irving & Montes, 2009). However, a positive motivation philosophy in an organizational setting is always welcome since it assists employees to improve productivity, commitment, quality, and service.
A 2002 Gallup study reported by Corporate Leadership Council (2003) revealed that highly motivated employees often demonstrate above average levels of the following attributes:
- Customer loyalty (56%);
- productivity (50%);
- employee retention (50%);
- safety records (50%); and
- profitability (33%).
There is, therefore, compelling evidence for organizations to enhance strategies and processes that will facilitate employee motivation.
Reward System
Many organizational theorists are of the opinion that an effective and balanced reward system plays a fundamental role for the organization. In most cases, the reward system is used by organizations to, among other things, pay employees for their performance, generate and maintain positive behavioural change, act as incentives for employees, and lifts employee performance, thereby lifting the overall productivity and profitability of the organization (Wilson, 1994).
An effective reward strategy should focus attention on facilitating positive reinforcement among employees because it motivates them to take actions in return of tangible or intangible benefits for performing their roles (Belcher, 1996). An effective reward system, according to Belcher (1996), should work on the basis of rewarding the energy and time commitments offered by employees as opposed to compensating them for their efforts.
The Qatar Petroleum Experience
Qatar Petroleum is undoubtedly a market leader in oil and gas industry in the Middle East and indeed in many other parts of the world (Al-Harthy, 2008). Such an outstanding feat can only be achieved through efficient management of the company’s strategic resources, including outstanding management of its systems and processes.
In the company’s revised employee handbook (2010), an assiduous and conscientious industry analyst cannot help noticing the rich aura of systems and processes put in place to safeguard the interests of employees, including coherent recruitment procedures, working schedules and overtime, salary administration, employee benefits and allowances, provisions for annual leave and official holidays, absenteeism, employee relations, training and development, and provisions for terminal benefits, among others.
The above provisions offer fertile ground for enhanced employee satisfaction and motivation. In particular, the social allowance, insurance schemes, housing allowance, furnishing allowance, location allowance, shift allowance, basic transport allowance, car loan, performance bonus, and social and recreational facilities (Employee Handbook, 2010), offers immeasurable morale and satisfaction for employees to perform and stay longer with an organization (Yi-Feng, 2009).
Yet, employee needs, goals, and aspirations keep shifting by the day, hence the need to conduct such a study to inform policy and identify possible gaps in enhancing employee satisfaction, motivation, and reward system in Qatar Petroleum.
Key Research Questions
This study will be guided by the following research questions
- Does the existing reward system in Qatar Petroleum in line with industry trends, and is the system doing enough to facilitate employee satisfaction and motivation?
- What are the employees’ projections and expectations regarding ideal employee satisfaction and motivation strategies that could be used by the management of Qatar Petroleum to push the organization’s agenda forward?
- What is the role of Qatar Petroleum’s management in helping design, formulate, and implement policies that enhance employee satisfaction and motivation, including revising existing schedules to align them with industry trends and adopting new innovative procedures in the company’s reward system to facilitate employee satisfaction and motivation?
- What is the role of employees in ensuring long-term growth and sustainability of Qatar Petroleum?
Methodology
Introduction
This segment purposes to discuss the research design, population and sample size, instrumentation, and data collection tools that will be used in this particular study. The segment will also discuss how data will be analyzed and relevant ethical issues relating to the study.
Research Design
The study will employ both quantitative and qualitative research designs to critically evaluate employee satisfaction and current motivation and reward system in Qatar Petroleum, with a view to inform the company’s human resource practice and policy on how it could be designed to alleviate possible gaps, thereby enhancing employee productivity.
Hopkins (2000) notes that most quantitative research designs are concerned with evaluating the correlation between variables, and are either descriptive or experimental. It is important to note that this study will utilize a descriptive strategy since the participants will only be measured once (Sekaran, 2006). A survey approach using internet protocols will be utilized to collect quantitative data among selected employees of Qatar Petroleum.
Qualitative data will be collected by means of telephone interviews, and will target selected managers of the company. Maxwell (2005) postulates that qualitative research approaches are predominantly ideal when the researcher is interested in assessing human behaviour, values, attitudes, preferences, and perceptions.
Qualitative research designs can employ either the case study strategy or survey design to collect the necessary data (Maxwell, 2005). The researcher will utilize the survey design using telephone interviews. An elaborate review of literature will also be undertaken; including a critical analysis of documents and reports found on the internet or availed by the company’s HR department.
Target Population and Sample Size
The population for this study will comprise of managers or supervisors and employees working for Qatar Petroleum. The sample will comprise of 50 managers or supervisors heading different departments and 100 employees, also working in different departments of the company. The managers or their supervisors will be sampled, online, through purposive sampling approach while the employees will be sampled using convenience sampling procedure.
Sekaran (2006) notes that participants in a purposive sample are selected based on their understanding of the topic under study, while a convenient sample comprise of participants in the research framework by virtue of being in the right position or environment at the right time.
Data Gathering Instruments
Quantitative data will be collected using self-administered questionnaires while qualitative data will be collected using telephone interviews. Self-administered questionnaires are cost effective and can be administered with much ease, not mentioning the fact that they are effective when the researcher wants to collect confidential data from study participants (Sekaran, 2006).
According to Maxwell (2005), interviews are advantageous in that not only does the method enable the researcher to create rapport with the subjects, hence achieving their cooperation, but it also permits the researcher an opportunity to explore and probe further for more information.
Reliability and Validity
Reliability
Reliability can be described as the consistency of measurement. In research studies, reliability can be described as the degree to which a data gathering tool is able to measure the variables or phenomena consistently when is used under comparable conditions (Handley, 2005).
Internal consistency of questionnaire and interview items will be employed to ensure adequate uniformity in responses given out by the two sets of participants. Items measuring similar concepts will be grouped together to ensure reliability. In addition, elaborate guidelines on how to complete the questionnaires will be issued to the subjects to abridge data collector’s error, which, if unchecked, leads to unreliable results.
Validity
Validity is a term that is used to describe a measure or instrument that correctly reflects the phenomena it is intended to measure, thereby strengthening the conclusions, deductions, or propositions made from the study findings (Handley, 2005).
Internal validity, which refers to the soundness of an investigation, will be achieved through employing appropriate sampling procedures and using a validated and reliable questionnaire schedule and interview guideline for purposes of data collection. The same procedures will be used coupled with the involvement of an adequate sample size to achieve external validity, thereby ensuring that the project findings could be generalized to other settings.
Ethical Considerations
Saunders et al (2007) posits that “…ethics refers to the appropriateness of your behaviour in relation to the rights of those who become the subject of your work, or are affected by it” (p. 178).
In addition to requesting for permission from the human resources manager in Qatar Petroleum to conduct the survey and interviews, the researcher will also take time to explain to the participants the nature and purpose of the study, not mentioning the fact that the researcher will keep the participants in the know about their rights, especially the right to informed consent and the right to privacy.
Data Analysis
Quantitative data will be analyzed using SPSS, with the analysis encompassing data coding, entry, cleaning, actual analysis, and interpretation of data. The software package will then be used to run univariate analyses purposed to generate frequency distributions.
The data resulting from the distributions will be further harnessed, interpreted and presented using statistical procedures such as pie-charts, bar-graphs, and normal text. Qualitative data will be analyzed using content analysis procedure, whereby data will be reduced, presented, and finally, conclusion drawing and verification made (Sekaran, 2006).
Stevens (2003) posits that, “…content analysis is the systematic description of behaviour asking who, what, where, why, and how questions within formulated systematic rules to limit the effects of analyst bias…It is the preferred technique for analysing semi-structured interviews” as is the case in this study (p. 143).
Plan of Work
The chart below shows all planned activities towards the successful completion of the research project.
Resources Required
Apart from the resource of time, which is fundamentally important in any research undertaking, financial resources will be needed to cover costs associated with conducting interviews and designing, issuing, and collecting the questionnaire schedules.
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