The dissertation title is:
The internal and the external factors that affect the performance of employees in oil and gas
companies in state of Qatar after 2015 oil price drop
Thank you for having time to work on my paper
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MANAGEMENT DISSERTATION PROPOSAL PROFORMA
Aim, objectives and feasibility of the dissertation
Background Information:
Among the Gulf Cooperation Council members (GCC), Qatar is considered to
have weathered the reduction of the global demand for petroleum products following the
markets glut. However, the 70- percent decline in this global oil prices in 2015 has
shaken the economy of this nation (Milmo, 2016, pp.38). This has resulted in this state
running below its budget threshold into a budget deficit of close to $13.0 billion, a figure
that is equivalent to 0.8% of the economies GDP.
For a developed economy such as that of Qatar, a relative dependence on oil and
its products as inputs in the state’s industries are likely to result in the deplete in these
prices, an aspect that would equally decrease the related input costs of this
product(Milmo, 2016, pp.39). Alternatively, the input costs are also likely to decrease
thus decreasing the cost of production and increasing unemployment rates of this state.
As a result of the development of energy efficient policies for the last decades, the
tendency towards the world has changed into the consumption of greener technology, an
aspect that has decreased the consumption of oil.
According to existing literature, more focus has initially been turned towards the
relationship between internal and external factors that affect the performance of
employees within oil and gas companies in well-developed states such as Qatar,
especially in the wake of price drops, a factor that this research study aims to establish.
This study is of interest to me primarily because it probes to establish some of the
challenge’s employees within the oil dependent economies face, an aspect that would
determine approaches of solving such issues. In the wider context, the study would be of
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significance for others as well since it establishes the essence of HRM practices and their
essence within the functions of an organization.
On the other hand, the study is motivated by the need to discover investment
channels that companies can invest in rather than the reliance on oil as the only generator
or revenues. The benefit of this research study is in the development of other areas and
investment activities that can profit organizations during this depression in oil prices and
also establish the manner in which factors affecting the performance of employees can be
enhanced. The insights gained from this study will therefore be employed in management
with the aim of enhancing the managerial practices directed towards enhancing the
performance of employees.
The study is significantly tied to the concept of human resource management and
the theory of employee performance is critically studied to contract their relevance to the
functions of an organization amidst oil and gas price drops. These theories will address
the essence of HRM functions and their need in enhancing the performance of employees
within the oil and gas industries in Qatar.
Aims of the Study
It is essential to determine that the performance of employees within an
organization departmental, managerial and leadership levels impact the goals of such
organizations positively or negatively. In this case, the performance of employees can be
affected by several elements in a work environment. This study therefore aims at drawing
focus on some of the internal and external challenges the employees working in oil and
gas company experience especially when the deplete in oil prices hit an economy such as
Qatar. The study will alternatively detail some of the variables affecting the performance
of employees both internally and externally.
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Research Question:
- What are the internal factors that affect the performance of employees within oil and
gas companies within well-developed states such as Qatar in the rise of oil price
drops? - What are the external factors that affect the performance of employees within oil and
gas companies within well-developed states such as Qatar in the rise of oil price
drops? - What are the approaches that can be employed in solving the internal and external
factors that affect the performance of employees in these companies as a result of
drops in oil prices?
Research Objectives
The primary objectives of this study include: - Establish the internal and external factors that impact employee performance in oil and
gas companies in the state of Qatar following the drop in oil prices. - Establish appropriate recommendations and conclusions that identify approaches of
solving the negative impacts of these factors on the performance of employees within
organizations in Qatar.
The Feasibility of the Study
In meeting the objective of this study, a culmination of the necessary resources
required has been achieved. The study will gain access to the requisite data by collecting
information from other research respondents through a survey and questionnaire that will be
distributed to 200 respondents that have worked in the gas and oil industries in Qatar.
The survey and questionnaire will be distributed online to enhance the process of data
collection. A consent letter has been granted from our organization that permits this study
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with a similar developed to provide to the respondents in getting their consent to conduct this
study. The respondents of this study have shown willingness by accepting to engage in the
study that will be conducted within a timeframe of 7 months.
Literature review
After the decision of GCC in 2014 not to cut the production of oil following the drop
in oil prices, the cost of a barrel of oil has significantly fallen to its lowest since 2015.
According to Milmo (2016), the drop in oil prices in this case affects the economy of this state
since the stock markets around the world are significantly affected by these drops (pp.38).
The decrease in oil prices in Qatar was brought about by several factors that include: GCC’s
changing policy objectives, the increasing decline in global oil product demands, and an
increase in oil production among other economies. Additionally, the decrease in GCC’s
geopolitical concerns that appertain to supply disruptions in other countries that depend on oil
from Qatar is also another challenge that result attributed to the drop in oil prices.
Krane (2015) on the other hand supports the views of Milmo (2016) by stating that in
as much as several importing counties have immensely benefited from the drops in oil prices,
the effects and impacts of these price drops may not be positive worldwide (pp.16). This can
be depicted in the fact that some of the leading oil producing states such as Qatar struggle in
maintaining their economy and stability as a result of declines in oil revenues (‘United Arab
Emirates Oil & Gas Report’ 2015, pp.110). As a result of the destabilizing effects that result
from a drop in oil prices, serious implications for companies and their workforce are
considered to be immense.
Smead (2015), states that a decrease in oil prices has the capacity to significantly
strengthen the dollar, a factor that would affect other corresponding currency of Qatar as a
result of the state’s dependence on commodity exports (pp.85). As a result of oil drops to a
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state’s financial assets to oil, widespread default on companies are likely to be experienced.
This is attributed to the fact that the precipitation of financial contagion may result to
instabilities in such organizations.
However, Marais (2016) contrasts to the views of other authors since he alleges that
Qatar significantly seems to be immune to the effects of price drops in its oil products.
According to this author, the economic performance of Qatar is still strong even with the drop
in oil prices, an aspect that is attributed to the state’s expansion in other entities such as the
non-hydrocarbon industry (‘Qatar Oil & Gas Report’ 2015, pp.65). This industry is considered
to drive the state’s economic momentum, thus propelling the spending made on investments.
On the other hand, Breunig, & Tse Chern, (2015) also points to Qatar’s construction and
banking industries as robust in recording the state’s economic growth (pp.114).
Webb, Jeffrey, & Schulz (2011) points out to the fact that employees are the
organizations resource and need to be properly compensated in order to achieve the goals of
an organization. As detailed initially, the development of the HRM approach is vitally based
on approaches aimed at utilizing people and treating them as resources in order to realize an
organizations objectives (pp.212). This clearly denotes the functional role of HRM within
these organizations, an effort directed towards initiating high performance work systems. This
aspect consequently entails linking the workforce in different departments within an
organization. Thus, oil and gas companies incorporate the use of effective HRM systems to
increase their competitive nature through an investment in employee development.
The concept of employee performance is on the other hand associated with the
workforce’s ability to achieve quality in relation to output, the presence of employees on the
job, the timeliness of the output, and the effectiveness of the work completed Fedor, &
Rensvold, (2012) states that an efficient leadership style has a bearing that encourages
employee performance (pp.790). On the other hand, Lin (2011) states and supports the views
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of this author by asserting that employee performance involves the successful completion of
duties and responsibilities as developed by the supervisors of an organization (pp.895). In
this case, the performance of employees according to these authors may be considered in the
perspective of three elements that enables them to perform better, with the determinacy of
their performance considered as wholly dependent on their declarative knowledge,
motivations and procedural knowledge. In short, it is essential to establish that efficient HR
practices have a positive impact on the performance of employees within an organization.
As a result of the drops in oil prices in Qatar, Das, Smith, Hennigan, & Yeager (2013)
notes that there are five internal human resource management practices that affect the
performance of employees. This consequently includes organizations efforts directed towards
eliminating recruitment packages and competitive compensation levels, the elimination of
training and development, including personal appraisals and the layoff of staff members with
the aim of stabilizing the functions of these organizations (pp.52). In this case, organizations
are forced to restructure their systems and functions during such periods in order to remain
competitive in the market.
Hu, & Kaplan, (2015) points out that the sharp decline in oil prices has tipped several
companies into recession, an aspect that has slumped investment levels within the oil and gas
industry. Several employees have been laid off as a result of this slump, thus affecting the
functions of HRM within the organizations (pp.125). In this journal, the author suggestively
points out that the layoffs of employees within this sector, thus affecting the production of
goods and services within these projects such as oil and gas ripping services, engineering and
construction services.
The crush in oil prices has seen employees in organizations in the state of Qatar
experience external issues that impact their performance. Jaffe, & Elass, (2015) purports that
the drop in oil prices has seen the cancellation of a series of projects within the energy
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companies proposals, a factor that has resulted in job cuts. Several expatriates have also left
Qatar for holidays and letting their families stay at home. According to this author, these
results from the outcome of these companies’ efforts aimed at establishing the right sizing of
their organizations human resources (pp.125). Oil companies in this region have therefore
taken steps in downsizing and cancelling their projects as an approach of cushioning the
workforce on the impact of the falling oil prices. Hu, & Kaplan (2015) supports the views of
this author by pointing out to several companies in Qatar denounced the renewal of their
contracts with other companies such that the European energy company since these
companies are not sure whether they would get enough projects to supplement the needs of its
employees.
In addition to this, the depression in oil prices has also seen oilfield service companies
and their sub-contractors suffer from some of the huge drop in their organizational activities,
thus impacting the performance of employees. Instances of reductions in spending on staffs
on pertinent activities such as training and development, motivation and empowerment have
been ripped off by organizations as a result of low incomes received by these companies
(Salehi, Save, Nel, & Almquist, 2015, pp.47). The drops in oil prices have also seen several
employees in companies dealing in oil and gas encounter an increase in financial pressures.
This results from swelling prices of products and services within the emirates economy of this
nation, an aspect that has affected these employees immensely. As a result of the scope of
staff cuts, the citizens of Qatar working in these companies have been rendered jobless, thus
their survival has turned out to be challenging.
Research Methodology and Methods
This study will therefore use the interpretivism approach as an epistemological stance
that believed in reality as relative and multifaceted. The knowledge acquired from this study
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is socially constructed with the aim of developing an understanding and interpretation of the
factors that affect the performance of employees in oil and gas companies rather than a
generalized cause and effect. The study is consequently open to new knowledge that aims to
develop it further with the help of informants.
This study will use the quantitative research method in analyzing and establishing
some of the factors that affect the performance of employees in oil and gas companies in the
state of Qatar following the drop in oil prices. The qualitative research method will therefore
give an explanation of these phenomena through the collection of numerical data that will be
analyzed through a mathematical method in particular reference to statistics (Ngulube, 2015,
pp.130).
For the primary purpose of this study, the performance of employees will be gagged as a
dependent variable while the factors that affect their performance viewed as independent
variables.
To address the studies objective, the research will use questionnaires in the collection
of data. Questionnaires are considered as the primary source that aids in obtaining data for a
research endeavor. In view of this, the research will design an efficient questionnaire that is
valid, unambiguous and reliable (Ngulube, 2015, pp.130). The study will therefore make use
of a series of questions that will be developed to find out the required information that will be
filled by the participants. The participants will fill these questionnaires either through written
forms or through an online survey that will allow the respondents to answer the research
questions.
In order to improve the validity of the data that will control the respondent’s answers
as detailed in the research questions and objectives, the study will make use of a high-
structured questionnaire. It is essential to establish that the culture of employees in Qatar
depicts the hesitation of people in expressing their views, feelings, assessments, or their
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advice in a straightforward manner (Ngulube, 2015, pp.130). However, through the use of
questionnaires, the element of anonymity on all the respondent of the study will be considered
since the information of the participants will be confidential. This will allow the respondents
to feel free in giving their views honestly, an aspect that will establish the reliability of
collected data.
In consideration of this research approach, the collection of relevant data will depend
upon the choice of the right respondents within several organizations. The research will
therefore issue 200 questionnaires to the respondents and employees of these companies
within this research area (Ngulube, 2015, pp.130). Data collection will primarily be done by
taking into account the organizations involved in the study, with a population of 200
employees targeted within the oil and gas industry in Qatar. On the other hand, the survey will
use close-ended questionnaires that will be designed to aid data collection. The questionnaire
will be designed through the formulation of close ended questions that will maximize the
margins in establishing the factors that impact the performance of employees in these
companies.
Key Findings of the Research Study
As detailed in the findings of this study, it has been established that employees remain
of significance within the functions of an organization and need to be adequately compensated
in order to achieve the goals of an organization (Das, Smith, Hennigan & Yeager, 2013,
pp.54). According to the findings of this study, the HRM functions contribute to high
performances within the work environment, an element that can be achieved when the
functions of HRM are incorporated within an organization. In this case, oil and gas companies
use HRM functions and systems with the aim of improving their competitive nature, an aspect
that can be achieved when investments are made on the development of employees.
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However, the drop in oil prices has been noted as significant in affecting the manner in
which organizations dispense their HRM functions. The study established that some of the
internal factors that affect the performances of employees within oil and gas industries. These
factors include the efforts of these organizations to eliminate recruitment packages and
competitive compensations, training and development, job cuts and personal appraisals with
the aim of right sizing organizations (Das, et.al.pp.54). Organizations are in this case forced to
structure their functions by limiting the activities of HRM in order to stabilize during such
economic period.
On the other hand, the study established that there are external factors that also affect
the performance of employees within oil and gas industries in Qatar. The drop in oil prices
has resulted in the cancellation of several projects within energy industries, an aspect that has
resulted in heavy job cuts thus affecting different employees and their families (Das, Smith,
et.al.pp.54).. Efforts of companies to downsize their employees have resulted in
unemployment, an aspect that has affected the economy of this state. On the other hand, a
huge drop in the activities of organizations has been experienced as a result of these price
drops, an aspect that has ripped off the element of motivation and empowerment of employees
due to the low income levels achieved.
Recommendations and Conclusions
Qatar is considered to have weathered the reduction of the global demand for
petroleum products following the markets glut. For a developed economy such as that of
Qatar, a relative dependence on oil and its products as inputs in the state’s industries are likely
to result in the reduction of oil product prices, an aspect that would equally decrease the
related input costs of this product. It is therefore significant for the emirate economy to
consider diverting its attention to other industries such as the infrastructural development
industry and the construction industry in stemming the impact of price fluctuations in the oil
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industry. On the other hand, organizations and companies operating within the oil and gas
industry need to establish the need to invest in other activities and markets, also taking into
consideration the essence of HRM practices in elevating the performance of employees.
- Timing mileposts
NB: You must reach Stage 8 at least 4 weeks before your deadline. A 30-day
contingency provision is also advisable to allow for potential slippages. This will
enable your DA to give you sufficient feedback on your final draft.
You should produce a final Proposal for submission to the DA for approval within 1 to 2
months from your module start date. However, please aim for 7 weeks from your start
date at the latest, to ensure time for any necessary revisions and final approval by the 8
week cut-off.
Milestone Description Due date Remarks
1 Stage 1: Area of interest identified
2 Stage 2: Specific topic selected
3 Stage 3: Topic refined to develop
dissertation proposal
4 Stage 4: Proposal written and
submitted
5 Stage 5: Collection of data and
information
6 Stage 6: Analysis and
interpretation of collected
data/information
7 Stage 7: Writing up
8 Stage 8: Final draft prepared—
submission of dissertation
9 Final Deadline—9 months from
module start date.
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References
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Effect of High Oil Prices on Ratings’, International Review Of Finance, 15, 1, pp. 113-
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Das, B, Smith, D, Hennigan, J, & Yeager, R 2013, ‘Situational Factors Affecting
Performance-rating Ability’, International Journal Of Operations & Production
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2016.
Fedor, D, & Rensvold, R 2012, ‘An Investigation Of Factors Expected To Affect Feedback
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Copyright – Laureate Online Education © All rights reserved, 2000–2012,
The module, in all its parts: Syllabus, guidelines, Weekly Notes, Discussion Questions, technical notes, images
and any additional material is copyrighted by Laureate Online Education B.V.
Last update: 9 July 2016
Lin, W 2011, ‘Relevant factors that affect service recovery performance’, Service Industries
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