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Employer’s turnover

 

  • Executive summary

Oman is rich with oil and gas and there are a lot of people who have adopted the business of oil refinery in Oman. This fact is seen that oil refinery business and oil transportation is playing a vital role in the economic development of Oman. Due to great contribution of petroleum industry for the economic development, it is the responsibility of petroleum industry to manage the organizations in such a way which would be beneficial for the development of petroleum industry. Nevertheless, the management of the organizations totally depends on the performance of the employers. There are numerous employers working in the petroleum industry which are playing a vital role in the progress of petroleum industry but some employers also usher to create hurdles for the petroleum industry by increasing the turnover rate. The turnover rate of employers is considered to be the basic problem for the industries and there is a need to overcome this problem. This problem can easily be substituted by focusing on the reasons which leads to increasing the turnover rate of employers in petroleum industry of Oman.

Mostly, this problem occurs due to lack of communication, improper management and faults in leadership performance. This is why there is a need to overcome these faults. Consequently, the petroleum industry can run easily. Actually, the fact is to keep in mind that if there are any problems faced in the petroleum industry tends to create problems for the economic development of Oman in many ways like financial aspects i.e. decrease in GDP of Oman, etc.

  • Introduction

Employer’s turnover rate is considered to be an important factor for the progress of the petroleum industry. If the turnover rate is low then it would be helpful to instigate the performance of the industry. But if the turnover rate of the employers is high, then it could lead to create severe problems for the industry in the form of financial problems, impact the operations of the organization, etc.

In this era, petroleum industry of Oman is struggling due to this problem. Surprisingly, petroleum industry is the largest industry in Oman and there is a huge part of the community which is currently working in the petroleum industry of Oman. But due to several factors, turnover rate of employers is increasing. It may be due to retirement of the people and lack of attraction and motivation of the young generation toward the petroleum industry (Ongori, H., 2007).

This report is to discuss in detail about the turnover rate of employers in the petroleum industry of Oman. In summary, there are a lot of factors discussed that leads to the increase of turnover rate of employers. No doubt, increase in turnover rate of employers is not helpful for the progress of the petroleum industry. Hence, there is a dire need to make plans and strategies to overcome this problem for enhancing the performance of petroleum industry. It can be possible by critically analyzing the attribute of every single factor which influences the turnover rate of employers in the petroleum industry of Oman.

Some of the important factors are management, leadership, needs of the organization and employers, etc. This is why there are theories of leadership and needs given in this report. There is also a model for the quality management analyzed in this report which would be helpful to focus as to why turnover rates increases.

There are different framework of analysis which are used in this report for analyzing the data like Fish-Bone Theory as this theory gives the possible root causes about the problem. So, it becomes easy to analyze the problem and its facts. In this report, there are a lot of models and theories discussed which would be helpful for decreasing the turnover rate. Factuality remains that the management of petroleum industry is responsible to increase the turnover rate of employers because it is the responsibility of the management to provide that leadership which motivates the employers towards petroleum industry. In order to reveal the importance of leadership for the progress of petroleum industry, some theories related to leadership are also discussed in this report. This analysis gives a lot of possible cause of increasing the turnover rates of employers in the petroleum industry of Oman. It is the only way to get rid from the turnover problem of the petroleum industry by focusing on the weak departments of the industry like management.

Some recommendations and suggestions are also a part of this report which would be helpful for the petroleum industry to make changes for decreasing the turnover rates of employers by petroleum industry of Oman (Morrow, P.C., Suzuki, Y., Crum, M.R., Ruben, R. and Pautsch, G., 2005).

  • Background about Petroleum Industry in Oman

It is well known fact that Oman is affluent with oil and gas. So, it is the top industry of the Oman which also richly contributes in the economic development of Oman.  It is not only fulfilling the local demand of the petroleum and gas but also exporting the oil and gas to different countries which is beneficial in stabilizing the economy of the Oman. In this era, Oman is starting to boost up the oil refinery process due to increase in demand of oil and gas by the local people.

According to a research, 943,000 barrel crude is daily refined to fulfill the demand of the people.

3.1Vision

It is the vision of the petroleum industry of Oman to fulfill the demand of oil for the people. In this regard, there are a lot of oil refinery companies which are currently working in petroleum developed Oman. This fact is seen that this sector is still on the top despite the rich contribution of government toward this sector.

  • Mission

It becomes the mission of the petroleum industry to use the Enhanced Oil Refinery techniques (EOR) just for the sake to boost up the production of oil and gas. It is also the aim of the petroleum industry to achieve 22 percent oil output by 2021.

  • Problem statement

The problem is all about the turnover rates of employers in the petroleum industry of Oman. Actually, increase in turnover rates show the faults of leadership and also the management. This report not only focuses on the turnover rates of employers but also focuses to reveal that how leadership and management influences the turnover rates of employers in petroleum industry of Oman. This report also shows that how GDP affects due to increase in turnover rates of employers.

  • Framework for analysis of the problem statement

As it is discussed, there are lots of theories and techniques that are used to analyze the facts that influence the turnover rates of employers. In this regard, Fish-Bone Theory is considered to be most productive for analyzing this problem. Actually, it is well known that the turnover rates of employers influence the functioning of the whole industry. Employers are considered to be the pillars of the industry and it is too difficult for the organization to maintain the human resource according to the requirements. There is a proper method of selection, motivation and maintenance of the employers which is done by the petroleum industry for hiring the staff. But once they leave the industry, then it clears that there may be problem in selection, maintenance or motivation. This is analyzed by the help of Fish-Bone theory because it is the theory which also gives a proper infrastructure to analyze the problem from different aspects which gives the basic cause of problems, the root cause of the problem. (Liu, L. and Chi, L., 2002).

There are some factors which cause an increase to the turnover rate are analyzed below:

  • Environment

Environment of the petroleum industry is the leading cause to increase the turnover rates of employers. It should be the responsibility of the organization to provide the suitable environment for working. But this fact is seen that there is a huge workplace diversity which is present in the petroleum industry of Oman. Actually, there are a lot of foreigners who are working in the petroleum industry due to which local people of Oman do not like to work in such kind of workplace diversity which leads to an increase in the turnover rates of employers especially by the local employers of Oman. It affects the working of the whole petroleum industry and leads to creating problems for the economic development of Oman.

5.2 People

It is the responsibility of the petroleum industry of Oman to manage the workplace diversity in such a way which would be beneficial for both the foreigners and the local people. In this era, it is considered as a big issue for hiring people in the organization. Sometimes, there are problem due to conflict of interests because the local people like to make a community of their friends in the organization because they don’t like the foreigners. It also creates an issue due to which there are a lot of local people or sometimes foreigners leaving the petroleum industry which leads to increase the turnover rate of employers.

  • Management

Management and leadership is also responsible in increasing the turnover rate of employers in Oman. Actually, it is the responsibility of the management or the leadership to guide the employers in such a way that it motivates the employers to work for the development of industry and the organization. This fact is seen that there is a need to develop the management and leadership of petroleum industry. Due to lack of interest of management toward the industry or in fact,  poor coordination between the employers and management also leads to an increase in turnover rate of employers in the petroleum industry of Oman (Gelade, G.A. and Ivery, M., 2003).

  • Process

Processes and policies of the industry is playing vital role to attract or detract the employers from the industry. This is why industry should make policies in such a way which can easily attract the employers towards the industry. Factually, Oman is rich with oil and gas. So they follow the same policies and processes adopted by the entire organization which may not be suitable for the employers. Which in a way, increases the turnover rate of employers within the organization.

  • Material

There are a lot of employers who left the petroleum industry at a young age due to the material. Oil is not extracted in pure form. There is a complete process which converts crude oil into petrol and it’s a difficult process where sometime refinery material is not suitable for the employers. There are some employers who have some allergies. They don’t like to use these processes due to the kind of material used. These are some possible reasons due to which employers left the petroleum industry in Oman (Lindbeck, A. and Snower, D.J., 1989).