Abstract

In the changing phase of the market, all organizations have some opportunities to grab and challenges to meet. The oil and gas sector in Cameroon, in particular, presents huge opportunities due to the high demand for oil and gas products. In the same vein, there are challenges such as the demand and supply equilibrium, lack of adequate skilled labour and, of course, skilled gap deficiencies in the labour force that needs to be overcome to meet with organizational goals.

The main aim of this research was to investigate the extent to which training and development in COTCO and Addax Petroleum addresses skill shortage in the organization, the study also has its specific objectives. A sample size of 50 with 25 questionnaires for each of the two companies is used to collect data. The study is an exploratory research in which an experience survey was carried out in other to obtain insight on how training and development can bridge the skill gap that exist in the oil and gas sector.

The study made use of descriptive statistics such as frequency and percentages and chi-square to test hypothesis set for the study. It was imperative to find out the strategies used by COTCO and Addax Petroleum to address skill shortage in their organization. From the findings, the two hypothesis set for the study was tested and to confirm or reject this hypothesis respondents were asked to rate the relevance of training received in line with the quality of the trainer’s content.

Thus, it is relevant training will fill skill gaps and improve productivity level. However, it was therefore recommended that both companies should focus on areas they are doing well and continue to improve on areas lack especially when it comes to training.

CHAPTER ONE

GENERAL INTRODUCTION

1.1 Background of the Study

Skills gaps are constraining companies’ ability to grow, innovate, deliver products and services on time, meet quality standards and meet environmental and social requirements in companies (Mallikarjun et al. 2004). Closing skill gaps directly impact improved productivity, employment and enterprise creation, whether in the formal or informal sector. A skill is a proficiency or facility that is acquired or developed through education, training or experience to ensure that an individual meets his/her objectives.

However, the concern for skill development emerged as part of the general revolution in the human relations approach to management (McGraw-Hill, 2013). This approach emerged in what is popularly called organizational behaviour and were rooted in the behavioural sciences- the science of human relations which was developed in the late 1940s. It is based primarily on psychology (which attempts to determine why individuals behave the way they do) and sociology (which attempts to determine how group dynamics affects organizational performance); social psychology, economics, and political science have also contributed to organizational behaviour.

During the 1950s, research in human behaviour was conducted in large organizations. By the late 1970s, organizational behaviour was recognized as a discipline in its right, with teachers, researchers, and practitioners been trained in the organizational behaviour itself. Organizational behaviour is a social science that has built its knowledge base on a sound foundation of scientific theory and research. Human relations take a practical, applied approach. It attempts to anticipate and prevent problems before they occur and to solve existing problems of interpersonal relations in organizations (Mc Grow-Hill, 2013). This writer went further by bringing out the works of Frederick Taylor and Robert Owen

where they cited that, during the Industrial Revolution people left the farms to work in factories that were all privately owned. The corporation form of business did not become prominent until much later. These early family-run businesses was concerned with profits, not employees, and managers viewed people only as a source of production that is human capital. They did not realize how workers’ needs affected production. Since the labour supply was plentiful and the cost of labour low, they could easily replace employees who had complaints.

In this situation, most of the early owner-managers gave little thought to the working conditions, health, or safety of their employees. Working conditions were very poor—people worked from dawn until dusk under intolerable conditions of disease, filth, danger, and scarcity of resources. They had to work this way just to survive; there was no welfare system. On the other hand, Robert Owen believed that profit will be increased if employees worked shorter hours, was paid adequately, and was provided with sufficient food and housing.

Due to this, following the recognition of the human factor in organizations, many began reflecting on how to make effective use of human capital in the organization. The result is recognition of the value of staff development or training and development. In fact, the roots of formal training and development can be tracked down to the twenty-first century and evolved since the earliest stages of human civilization and has been gradually refined into the sophisticated process that it is today (Chinese, 2010).

Different types of training have been brought up and had different periods that they started. An example of one of those training is the Vestibule training that is also well referred to as on-the-job training. This training emerged during the period of industrial revolution whereby employees who were working in factories, did not have all the required knowledge and skills to be able to work with the machinery that produced the goods and materials needed by the society.

Thus, it became an activity that was carried out within the factory (Patty G, 2010). Within this perspective, for any company especially those in the oil and gas industry like COTCO and Addax Petroleum Cameroon, to succeed in its mission of extracting and transporting oil and gas, training and development should be an integral part of their business.

Nevertheless, the potential staff development to reduce the company’s reliance on external man power relies on the efficiency of skill gaps identification. Training involves the application of formal processes to impart knowledge and help people to acquire the skills necessary for them to perform their jobs satisfactorily (Armstrong, 2009). To achieve organizational goals, employers within COTCO and Addax Petroleum must ensure that their employees have the necessary knowledge, skills and experience required to undertake their duties competently.

According to Clark, (2012) this can be ensured by embracing the concept of a skills gap analysis. It allows employers to highlight the areas where employee skills may be lacking and thus informs the two parties on any gaps that need to be rectified. In recent years, workplace efficiency has become a priority for employers worldwide due to the global recession and the cost efficiencies measures that have been implemented, that is, workplace efficiency could mean combining two jobs into one, even if a current employee lacks a certain skill, or expanding the job role of one individual to prevent a future hire.

Due to this, completing a skills gap analysis allows organisations to stay on top  of employee development, channel their resources effectively and adapt to future skills demands (Asset Skills Barometer, 2011). Employers can use a range of different approaches following their skills gap  analysis  to  facilitate  appropriate employee development and training plans for example, relevant on the job training or continuing professional development, to membership of professional bodies and attainment of career related qualifications (Asset Skills Barometer, 2011).

As the workplace evolves, employees are being charged with learning new skills, developing old skills, and learning to be proficient in all areas across the board. Skills gaps are self-defined by employers and the process in that employers used to effectively and efficiently identify skill gaps is to do skills testing which will allow the employer to see where their employees stand about specific skill sets. Thus, when an employer perceives that an employee lacks certain skills preventing them from being fully proficient in their job role, training is delivered to bridge that gap. Thus, skill gap analysis is an aspect of training which is of growing importance to companies seeking to gain an advantage among competitors. In this light, there is a significant debate among professionals and scholars as to the affect that training has on both employee and organizational goals and also training leads to an increase in turnover and high employee retention. (Colarelli&Montei, 1996, Becker 1993).

Staff development is very vital in any company or organization that aims at progressing. This aspect of skill gaps can have significant implications for companies if they are unable to reach their potential productivity and profitability. Within the oil and gas sector, there are some skills that are required and very necessary to improve productivity and profitability, For example in COTCO, for an operator, skills like good communication, fluency in spoken English and French, good computer knowledge and, of course, ability to perform preventive and corrective maintenance on piping and pumps especially for technicians, will definitely help the company to reach their potential productivity and proficiency.

According to Duggan, (2013), employers should be able to identify the critical and non-critical skills required to achieve a higher standard of work by comparing the list of required skills with the actual skills possessed by the individual employee (QFinance,2009). From an individual perspective, the results of performance appraisals can be used to develop training plans or justify pay reviews. For a department, a skills gap analysis can be used to identify which staff members have knowledge, in a particular area as well as that individuals lack certain skills facilitating the mentoring process within teams. This can also support recruitment practices as employers can select candidates with skills required by a particular department (QFinance,2009).

Staff development on the other hand generally puts emphasis on broader skill which are applicable in a wide range of situations. This includes decision making, thinking creatively and managing people. According to Antonucci and d’Ovidio, (2012), a skills gap analysis is traditionally undertaken using paper-based assessments and supporting interviews; however, technological advancements, such as skill management, are allowing large companies like COTCO and Addax Petroleum to administer a skills gap analysis without using a significant proportion of human resources.

In the changing phase of the market, all organizations have some opportunities to grab and challenges to meet. The oil and gas sector in Cameroon, in particular, presents huge opportunities due to the high demand for oil and gas products. In the same vein, there are challenges such as the demand and supply equilibrium, lack of adequate skilled labour and, of course, skilled gap deficiencies in the labour force that needs to be overcome in order to meet with organizational goals. In such an environment, only dynamic organizations such as COTCO and Addax Petroleum may survive the steep competition. In the face of these challenges, there is great pressure on the shoulders of management to make necessary changes at the workplace in other to meet the expectation of the job.

Thus to meet up with company’s objectives, managers are changing their policies, rules and regulations in favour of more work enhancement/facilitation policies such as higher payer, flexible work schedule, skilled gap deficiencies and lack of well-trained employees. One of the areas managers are having a lot of pressure is in the area of competent or talented work force. Consequently, they are constantly looking for ways of improving production methods, by adopting new advanced technology and adopt policies that will enable employees to be more productive at their job (Dugan et al.2003)

The success of any organization depends upon the quality of its work force, but in order to maintain the quality of the work force that will with stand competition, many organizations come across some obstacles. These obstacles include attraction of the qualitative workforce towards the organization, recruitment of intelligent, dynamic as well as enthusiastic people in the organization, motivation of current employees with different techniques and retention of the current workforce for maintaining the organizational status in the competitive market.

For surviving the business and becoming a successful pillar in the market, training is a tool that can help in gaining competitive advantages. Training proves to be a parameter for enhancing the ability of the workforce for achieving the organizational objectives (Dugan et al. 2003). In this perspective, Organizations nowadays exist in turbulent and competitive environments and are faced by more challenges than ever before. These challenges are not unique to any specific organization or industry, but affect all organizations, regardless of their structure and size. To stay in this competitive environment organizations like those in the oil and gas sectors need to complete skill gap analyses which allow them to stay ontop of employee development, channel their resources effectively and adopt future skills demands. To survive and outplay their competitors, these organizations need collective brain power to succeed. Hence, the competition for highly skilled and experienced staff is rife in the sector. While many organizations in the industry are constantly in search of workers with such skills, others prefer internal development of these skills, through staff development.

Therefore growth and change that are inherent in organizations, create a plethora of training needs, which must be resolved for organizations to cope with their dynamic nature of growth and change. This can be done through a continuous process whereby, organizations can effectively respond to change by providing individuals with the opportunities to improve their existing skills as well as learn new skills. Collectively these new skills can improve profitability and proficiency that will lead to the accomplishment of organizational goals. (Dugan et al. 2003).

1.3 Statement Of The Problem

Increasingly, the business of exploration and transportation of oil and gas is gaining grounds in Cameroon and these oil and gas companies find themselves in a high competitive market. To face this rising competition, Cameroon oil companies need to equip effectively their human resources with the skills necessary for 21st-century competition.

But often quit,for the oil and gas industry specifically, there is two major business challenges: (i) reduction in production caused by supply shortages of workers; and (ii) a reduction in productivity due to an ageing workforce, which has led to the inefficiency of the workers and thus less productivity. Current statistics shows that two-thirds of the employees working with the oil and gas sector are 40 and above, and they will soon go on retirement. Overall, the skills shortage has resulted in the use of contract labour on a regular basis in almost all occupations, including senior positions.

A primary cause of the skills shortage is demographic: large numbers of experienced workers are retiring, and fewer young skilled workers are entering the industry (Tennant et al. 2012). The absence of specialized training schools in oil and gas in the country may account for the lack of young skilled workers. This shifts the responsibility of skill management directly onto the companies. Unless the industry begins to address these challenges today, it may face a skill crisis within the next decade. The oil and gas industry is undergoing radical changes because global demand for crude oil is escalating. The prices for crude oil and natural gas has remained high and investment in the oil and gas industry has surged. Consequently, the industry is increasingly facing a shortage of qualified workers. It needs to take a proactive role, adjusting to these labour market transitions to support its future workforce demands.

Furthermore, skill gaps are rarely identified, and a limited attempt is made by most Cameroonian oil and gas companies to address existing skill gaps. The need for training has therefore become highly competitive in the oil and gas sectors, and this is because consequently, they will be unable compete with foreign- owned oil and gas companies. Therefore, this research seeks to explore existing skill gap analysis in COTCO and Addax and how it relates to employee training and development.

1.4 Objectives of The Study

1.4.1 Main Objective

The main objective of this study is to investigate the extent to which training and development in COTCO and Addax Petroleum addresses skill shortages in the organization.

1.4.2 Specific Objectives

Specifically this research is to;

1. To identify the skill shortages in COTCO and Addax.
2. To examine training and development strategies and its contribution towards skill shortages in COTCO and Addax
3. To identify the factors that affect training in COTCO and Addax.

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