Employment Trends and Job Satisfaction in the Oil and Gas Industry Essay Sample

The popular imperativeness has late reported that the oil industry is come ining an evolutionary stage withseveral potentially long-run tendencies get downing to emerge. The writers present a reappraisal oftheoretically relevant work associating to these tendencies and a survey analyzing the expected effectsthese tendencies might hold on the employment environment in the oil and gas industry. The survey was conducted in two stages. The first stage was focus-qualitative utilizing interview groups. The consequences of these focal point groups indicated that the oil industry is sing a period of consolidation and retrenchment.

Reasons cited for these tendencies included down oil monetary values. minimized grosss. and reduced hard currency flows. The interviews emphasized that efficiency could be improved through the usage of centralised budgeting. capital intensive labour. improved care. and reward systems. The 2nd stage involved a study administered to employees of big and little oil companies in West Texas and New Mexico. Published graduated tables for occupation satisfaction were used to analyze differences in perceptual experience of occupation security and motive between big oil company and little oil company employees. Results show higher occupation security. occupation satisfaction. and general motive degrees among employees of little oil companies. The writers conclude with a treatment of relevant research and direction deductions. |


Directors of big. independent. and little oil companies are progressively recognizing that the oil and gas industry is in a province of flux. with several long term tendencies expected to significantly impact the function of the American oil worker. ( Chellgren 1995 ; Haines 1995 )

Research workers have investigated several dimensions of these industry tendencies. including the move to more corporate amalgamations ( Haines 1996 ) ; the focal point on industry consolidation peculiarly in the gas-gathering and selling spheres ( Haines 1995 ) ; the increased incidence of retrenchment ( Tobias 1996 ) ; the escalation of abroad production. peculiarly from non-OPEC states ( Gill 1995 ) ; the United States increased importing of foreign production ( Hirsch 1996 ) ; the increased usage of new 3D seismal techniques and horizontal boring ( Brown 1996 ) ; the cost-increasing effects of OSHA and EPA ordinances ( Chellgren 1995 ) ; and the demand to hike cost efficiency ( Baumann 1996 ) .

These tendencies combined with the outlook of low prognosis gas monetary values ( Haines 1995 ) are doing the oil and gas industry to concentrate on decreasing costs and hiking productiveness. Indeed. the focal point on cost film editing seems to be the major industry tendency ( Haines 1996 ) . This industry place is best summarized by Cross Timbers Oil Co president Steve Palko when he echoed the words of many:

no 1 is anticipating strongly increasing merchandise monetary values. so the thing to make is go more efficient by cut downing costs per net equivalent barrel. We have to demo growing without an addition in oil and gas monetary values. Thats merely world today. ( Haines 1996 )

This cost focal point is responsible for modifying the employment environment of the American Oil and Gas worker. Indeed. the cost focal point is doing the major employment tendency of increased cutbacks and layoffs. ( Knott 1996 )

Existing literature has highlighted several other employment tendencies. The most of import of which are: the reduced figure of full-time employees caused by the increased usage of impermanent trainees ( Walden 1996 ) ; the increased trust on contract workers ( Knott 1996 ) ; the intensified usage of reding houses ( Haines 1996 ) ; the tendency towards more joint research and the sharing of information ( Chellgren 1996 ) ; the effort to better operating efficiency through proficient consciousness ( Baumann 1996 ) and transverse functional groups ( Zignon 1994 ) ; the attempt to streamline direction in order to heighten corporate manoeuvrability and reactivity to market alteration ( Baumann 1996 ) ; and eventually. the heightened usage of the Internet by employees to do professional contacts ( Tobias 1996 ) and uncover proficient information
( Klann 1996 ) .


The intent of this survey is to look into how general industry tendencies are impacting employment tendencies. and how these employment tendencies are finally impacting occupation satisfaction and motive degrees. In peculiar. we would wish to analyze how workers perceptual experiences of employment tendencies differ between big and little oil companies. and how this difference in perceptual experience affects degrees of occupation security and motive.

Hence we hypothesize:

H1: Large and little oil companies perceive general industry trends otherwise.
In peculiar. we investigate two specific dimensions of these industry tendencies: the consequence of abroad production. and the consequence of domestic ordinance.

We expect that increased oil geographic expedition overseas will adversely impact the domestic oil industry by take downing the domestic oil monetary value and doing local manufacturers to take down production costs by cutting overhead. We expect these cost cuts to ensue in an increased figure of layoffs and cutbacks in big oil companies. These cutbacks will take down employee morale and diminish the degree of occupation satisfaction and security.

We besides expect the legal environment to raise the costs of making concern. peculiarly for larger companies that face more intense legal demands than little companies do. This addition will further add to be force per unit areas and may ask farther cutbacks and layoffs. Once once more. these cutbacks are expected to take down employee morale and general motive degrees.

Therefore. our general hypothesis has two subdivisions:

H1a: Large and little oil companies perceive the effects of increased abroad production otherwise.

H1b: Large and little oil companies perceive the alteration in legal ordinances otherwise.

We believe that little oil company employees will non be as adversely affected by industry tendencies. as their big company opposite numbers because little companies are more flexible and manoeuvrable. peculiarly when it comes to the direction of forces. Small companies tend to reconstitute in-between direction. redefining direction functions instead than extinguishing them. Therefore. we expect occupation security and satisfaction to be higher in little companies than in big companies.

This treatment can be summarized by the undermentioned major research hypothesis:

H2: Large oil company employees feel more threatened by new tendencies than do little oil company employees and have lower degrees of occupation security and general motive.



Before carry oning our chief survey. it was necessary to carry on in-depth interviews to find the countries of focal point needed for the development of a research questionnaire. Consequently. a sum of 10 in depth interviews were held over a two-day clip frame.

The 10 respondents were interviewed separately. The sample comprised entirely of males. All of the interviewees were selected from in-between direction. The bulk ( 60 % ) of them were selected from the oil-related concern sector ; the balance from conveyance ( 20 % ) . from chemical processing ( 10 % ) . and from independent catching ( 10 % ) .

The interviewees were told that they would be involved in a survey aimed at measuring the effects that industry tendencies were holding on employment outlooks in the oil and gas sector. To this terminal. nine open-ended inquiries were asked. and the interviewees answers were tape recorded. The tapes were subsequently reviewed. and a sum-up of the chief points created.

The interview inquiries were tailored to set up sentiments in three major countries of involvement: First. the effects that overseas geographic expedition and offshore boring have on the domestic oil industry. secondly. the consequence that OSHA statute law is expected to hold on the company. 3rd. the most of import industry tendencies impacting the employment environment.

Interviewees were farther invited to add any remarks that they felt would be pertinent to the survey.

In general. our interviewees showed a high degree of enthusiasm and engagement. Their remarks proved to be most helpful in the designing of the questionnaire.

Consequences and Discussion

The interviewees seemed to universally admit the being of the cutback and downsizing tendencies highlighted in the current research literature.

The interviewees mentioned that the increased usage of abroad production was really of import. They felt that this tendency would go on in the hereafter. as environmental and legal costs were raising domestic industry costs. However. they believed that basic boring costs were still lower in the United States than abroad. Several interviewees from related service sectors mentioned that as the major oil companies were concentrating their attending abroad. chances for little and manoeuvrable companies were turning. Maneuverability. flexibleness. and the demand to be able to accommodate rapidly to market forces were besides mentioned as of import features of little companies.

Interviewees had widely differing positions on the effects of OSHA and EPA ordinances on their industry. However. most of them agreed that OSHA ordinances were taking to increased costs and reduced net income borders. They besides mentioned that EPA and environmental statute law were increasing the costs of making concern in the United States.

Some interviewees felt that increased OPEC production was adversely impacting the domestic oil concern. It was widely believed that increased OPEC production would go on to diminish gas monetary values and. therefore. gas grosss for local oil concerns.

About all interviewees. some 90 % . mentioned that their companies had experienced important cutbacks in the past 3 old ages. Indeed. all interviewees emphasized that there was a definite move to streamlining operations and hiking cost efficiency. Depressed oil monetary values. minimized grosss. and reduced hard currency flows were cited as the major grounds for these cutbacks. Cutbacks took assorted signifiers. Cuting head counts through layoffs and abrasion. diminishing employee benefits. and replacing contract labour with in-house labour were mentioned.

From this focus-group session several of import findings materialized. Although. several tendencies were discussed. the most of import tendency that emerged was that increased abroad production was diminishing oil monetary values in the United States and ensuing in cost film editing through layoffs and downsizing. This determination was expected and served to back several other findings discussed in current literature ( Haines 1995 ; Tobais 1996 ) .


To obtain farther information about the survey aims. a selfadministered-questionnaire was conducted utilizing a nonprobability convenience sample method. This study instrument was designed and distributed to 300 oil and gas employees in the West Texas and New Mexico country by Christian Collins.

In the preamble to the questionnaire. topics were told that:

The undermentioned study is portion of a research survey being carried out by undergraduate pupils at Angelo State University in concurrence with their undergraduate Business Research Course. This study is non for commercial intents. The success of this survey depends on your engagement. All responses will stay confidential. Your aid with this survey is appreciated. Thank you for your cooperation.

The questionnaires were screened for truth and completeness as they were returned. In peculiar. they were checked for losing responses. wrong responses. and uncomplete replies. Problems arose with three open-ended inquiries wherein respondents were asked to rate and list any other countries non mentioned in the study. Several topics rated these open-ended inquiries. but did non name the country of concern. Therefore. when ascribing the information these inquiries were omitted.

The consequences were so imputed into a ASCII file utilizing a DOS editor.

This file was so used as input for the statistical plan Statistical Analysis System ( SAS ) . Frequency tabular arraies were used to develop basic thoughts about the information collected from these questionnaires. Descriptive statistics and factor analysis were used to place the implicit in dimensions of sensed industry tendencies. employment tendencies. and general satisfaction degrees. Analysis of Variance ( ANOVA ) and T-Tests were so used to turn to the survey aims.


The concluding sample consisted of 188 respondents. The study response rate was 63. 66 % . The demographic statistics of the sample are described overleaf in Table 1.

From Table 1 it can be seen that 85. 4 % of the respondents were male. The bulk ( 52. 2 % ) of the respondents were between 31 and 45 old ages of age. Most of the respondents ( 29. 8 % ) had worked in the oil industry for 21 old ages or more. The average income was between $ 30. 001 and $ 45. 000 per annum. The majority of respondents were employees ( 68. 8 % ) . However. proprietors ( 11. 2 % ) . supervisors ( 12. 8 % ) . and directors ( 5. 3 % ) were besides represented.

The writers felt that these demographic statistics were representative of the oil industry in general and felt justified in utilizing this sample.

Table 1

Description of the Sample

Demographic Characteristics No. ( 188 ) % No. ( 188 ) %

Gender Old ages in oil concern male 158 85. 41-5 old ages 23 12. 2 female 27 14. 6 6-10 old ages 22 11. 7 11-15years 36 19. 1 16-20years 51 27. 1 21 or more old ages 56 29. 8 Age Income 19 and under 0 0. 0 $ 15. 000 and under 18 12. 6 19-30 27 14. 7 $ 15. 001- $ 30. 000 40 28. 0 31-45 96 52. 2 $ 30. 001- $ 45. 000 44 30. 8 46-55 47 25. 5 $ 45. 001- $ 60. 000 25 17. 5 over 55 14 7. 6 over $ 60. 000 16 11. 2 Position Type of Company proprietor 21 11. 2Large 58 31. 2 supervisor 24 12. 8 Small 2 1. 1 director 10 5. 3 Independent 16 8. 6 employee 128 68. 1 Related concern 88 47. 3 other 5 2. 7 Other 22 11. 8

Analysis and Consequences

The questionnaire included 3 different steps to measure industry tendencies. employment tendencies. and motive degrees severally. Factor analysis was used in an explorative mode to analyse the interrelatednesss between the inquiry points. In peculiar. chief component analysis with varimax rotary motion was chosen to place which of these points would constellate together distinctively and function as a one-dimensional step of basic tendencies ( Hair et al 1995 ) .

This data decrease technique was used to make one-dimensional variables. Because these variables were used in subsequent testing. we performed correlativity analysis of the points stand foring each factor as suggested by Churchill ( 1979 ) .

Evaluation of industry tendencies:

Twelve inquiries utilizing a 5 point graduated table were used to measure perceptual experiences of basic tendencies in the oil industry. Several tendencies were itemized and ranked. Respondents were asked β€œto evaluate each of the following on a graduated table of 1 ( Highly of import ) to 5 ( Not of import at all ) ” . with 3 ( Neither Important Nor Unimportant ) . stand foring that the tendency was non evident. On utilizing factor analysis with varimax rotary motion. two factors emerged. The factor contents. rotated factor burdens. and Cronbacks Alpha explained by each factor can be seen in Table 2.

From Table 2 it can be seen that two factors were identified under factor analysis. They highlight general tendencies in the oil and gas industry. Each of the factors identified had Eigen values in surplus of 1. 00. The two groups of factors along with their Cronbacks Alphas are: domestic activities ( 0. 88 ) . and legal and abroad factors ( 0. 86 ) .

Domestic activities refer to those issues that straight affect the local oil industry. These effects. along with their burdens. include: a lessening in industry occupation satisfaction ( 0. 88 ) . a lessening in oil production ( 0. 85 ) . decreased oil geographic expedition ( 0. 84 ) . and an addition in layoffs ( 0. 79 ) . The postulated effects of increased oil production and geographic expedition have been good documented in current literature ( Chellgren 1995 ) . Consequently. we were non surprised by these findings.

The Legal and Overseas factor contains six points mentioning to legal and foreign issues that affect the oil industry. Their burdens range from 0. 84 ( Increased Oil Exploration ) to 0. 53 ( Low Morale ) . Two of the tendencies in the legal and abroad factor mentioned relate to ordinances. viz. environmental ( 0. 80 ) and safety ( 0. 69 ) ordinances. Once once more. the expected effects of increased ordinances are good documented in the current literature. Therefore. the determination of the legal and abroad factor was in conformity with our outlooks ( Chellgren 1995 ) .

Table 2

Correlations Between Industry Trends

Dimensions of Industry Trends Trend attributes| Legal and Overseas| Domestic|
Increase in abroad exploration| 0. 84| 0. 19|
Increas in environmental regulation| 0. 80| 0. 17|
Increase in cost effeciency| 0. 76| 0. 23|
Increase in abroad production| 0. 76| 0. 19|
Addition in safety regulation| 0. 69| 0. 27|
Increase in offshore drilling| 0. 64| 0. 37|
Low morale| 0. 53| 0. 33|
Decrease in occupation security| 0. 26| 0. 88|
Decrese in U. S. oil production| 0. 29| 0. 85|
Addition in employee layoffs| 0. 23| 0. 84|
Decrease in U. S oil exploration| 0. 23| 0. 79|
Cronbackss Coefficient Alpha 0. 86 0. 88

Note: Datas obtained by factor analysis with extraneous rotary motion ( varimax ) Underlined burdens place tendencies that are extremely correlated with a given dimension.

These two factors closely. but non precisely. fit one of the initial aims of the survey: which was to look into the effects that OSHA ordinances and increased abroad production have on the oil and gas industry. Because these findings were congruous with old research. we felt justified in utilizing these factors as variables for farther testing. Evaluation of how industry trends affect employment tendencies

A 13-item inquiry set was used to measure respondents sentiments on employment tendencies. Overall sentiments about how industry trends affect employment tendencies were measured by inquiring respondents to rate each statement refering the oil industry from 5 ( Strongly Disagree ) to 1 ( Strongly Agree ) ” . with 3 ( Neutral ) . stand foring the place that a peculiar industry tendency was non impacting the employee environment. Table 3 shows the relevant tendencies and factor burden.

Table 3

Correlations between specific factors impacting employment tendencies Dimensions of Employment Trends Employment tendency attributes| Market Effects| OSHAregulations| Overseasproduction| Increased market portion by little oil companies| 0. 70| 0. 23| -0. 01| Increased employment in little oil companies| 0. 68| -0. 05| 0. 04| Small oil companies will profit from tendencies in the industry | 0. 61| 0. 06| 0. 01| Increased wage in little oil companies| 0. 59| -0. 06| -0. 01| OSHA effects Small and independent oil companies| 0. 53| 0. 11| -0. 14| OSHA ordinances addition disbursals in my company| 0. 10| 0. 85| -0. 04| OSHA ordinances have increased the cost of making business| 0. 05| 0. 84| 0. 14| Abroad geographic expedition is aching big oil companies| -0. 03| -0. 22| 0. 80| Increased abroad oil production| -0. 13| 0. 25| 0. 72|

The figure of oil related concern has decreased| -0. 01| 0. 37| 0. 46|

Cronbackss Coefficient Alpha 0. 66 0. 69 0. 45

Note: Datas obtained by factor analysis with extraneous rotary motion ( varimax ) Underlined burdens place tendencies that are extremely correlated with a given dimension.

From Table 3 it can be seen that three factors were identified All three of these factors had Eigen values in surplus of 1. 00. The three factors. along with their Crombacks Alphas. are market effects ( 0. 66 ) . OSHA ordinance effects ( 0. 69 ) . and abroad production effects ( 0. 45 ) . These three factors are discussed individually below.

We believed that the comparatively high burden of the market consequence factor ( 0. 66 ) was an indicant of respondents belief that trends in the oil industry were impacting little companies. Several dimensions of the little company tendencies were identified. These include: increased employment in little oil companies ( 0. 68 ) . the addition in wage at little oil companies ( 0. 53 ) . the consequence that OSHA ordinances had on little oil companies ( 0. 53 ) . and the addition in market portion of little oil companies ( 0. 70 ) . Therefore. it can be postulated. that industry tendencies were non holding an inauspicious consequence on little oil companies because most of the tendencies listed have positive intensions. These findings were in conformity with our outlooks and current literature. wherein it had been postulated that little agile companies can profit from germinating tendencies ( Brown 1996 ) .

We had postulated that OSHA ordinances were increasing the costs of making concern in the United States. The fact that the OSHA ordinance consequence was identified lends strong support to this averment. Two elements of this factor were identified: increased disbursals ( 0. 85 ) . and increased costs of making concern ( 0. 84 ) . Once once more. this was in conformity with current literature. wherein it was suggested that the legal environment is increasing costs and ensuing in cutbacks in the workplace ( Howard 1994 ) .

Three elements of the abroad production factor were identified. These elements had burdens that ranged from 0. 84 ( Overseas geographic expedition is aching domestic concern ) to 0. 40 ( The figure of oil concerns has decreased ) . Current literature indicates that increased abroad production would diminish oil monetary values and hence adversely affects domestic oil companies. ( Tobias 1996 )

The fact that OSHA ordinances and abroad production were considered to impact employment tendencies is important because these two steps are the focal points of H1a and H1b.

The writers felt that the outgrowth of these factors gave sufficient logical evidences to prove H1 and H2. Consequently. ANOVA trials were subsequently conducted to analyze if there were important differences in the perceptual experience of these factors between big and little oil companies.

Evaluation of occupation security. occupation satisfaction and general motive degrees

A 10-item inquiry set was used to measure occupation security. perceived occupation satisfaction. and general motive. In response to a series of descriptive statements. topics were asked to β€œrate each issue covering with occupation satisfaction” on a 5 point graduated table of 1 ( Highly Dissatisfied ) to 5 ( Highly Satisfied ) . This inquiry set was based on the Specific Satisfactions Job Diagnostic study developed by Hackman and Oldham in 1975. These inquiries were selected because consequences from these graduated tables have been good documented in published studies by Hackman and Oldham ( 1974. 1975. 1980 ) . The writers felt that the usage of these established steps would impart truth and acceptableness to the survey.

Table 4 shows the consequences of the factor analysis.

From Table 4 it can be seen that factor analysis was once more used to place sub-components of general motive. Two component factors of motive were found. Each of the factors identified had an Eigne value in surplus of 1. 00. The two factors along with their Eigen values are: occupation security ( 1. 53 ) . and work context satisfaction ( 5. 75 ) .

The work context satisfaction refers to work environment issues such as wage and periphery benefits ( 0. 76 ) . just intervention from supervisors ( 0. 76 ) . and the sum of independent idea allowed ( 0. 69 ) . Hackman and Oldham have proven that this factor is concerned with intrinsic characteristics of the occupation. This factor refers to the grade to which an employee is satisfied with chances for personal growing and development on the occupation ( Hackman and Oldham 1975 ) .

The occupation security factor was considered to be really of import. as evidenced by the high Cronbacks Alpha of 0. 90. By analyzing the inquiry points. and their agencies. it became evident that respondents felt that occupation security is being decreased by current industry tendencies. This is of import sing that H2 relates straight to decreased occupation security.

Table 4

Correlations Between General Employment Attributes

General motive and occupation security items| Job Security| Specific Satisfactions| How unafraid things look for me in this organization| 0. 90| 0. 17| The sum of occupation security I have| 0. 89| 0. 12|

The sum of personal growing and development | 0. 29| 0. 79| The grade to which I am reasonably paid for what I contribute| -0. 01| 0. 77| The sum of wage and periphery benefits I receive| -0. 15| 0. 76| The grade of regard and just intervention I get from my boss| 0. 34| 0. 76| The sum of counsel and support I receive from my supervisor| 0. 36| 0. 72| The overall quality of the supervising I receive| 0. 35| 0. 71| The sum of independent idea and action I can exercise| 0. 15| 0. 69| The sum of challenge in my job| 0. 25| 0. 69|

Cronbacks Alpha 0. 90 0. 86

Note: Datas obtained by factor analysis with extraneous rotary motion ( varimax ) Underlined burdens place tendencies that are extremely correlated with a given dimension.

The find of these two dimensions was expected and congruous with old research done. utilizing these satisfaction graduated tables ( Hackman and Oldham 1975 ) . That general motive could be decomposed into these two tendencies is of import. sing that the major aim of this survey ( H2 ) was to measure both occupation security and general motive.

We investigated the research hypotheses by utilizing the analysis of discrepancy ( ANOVA ) process. This process was done in the mode recommended by Tukey. Because our group sizes were non equal. we were required to utilize Tukeys process. The Tukeys Studentised Range ( HSD ) Test controls the type 1 experimentwise mistake rate. However. it should besides be noted that this trial. by and large. has a higher type 2 mistake rate than other ANOVA trials.

During the ANOVA tests we compared the difference of agencies. of the above-described factors. as perceived by the employees of big and little oil companies. Table 5 presents the agencies of big and little companies. the F ratio and the P reading.

Table 5

Consequences of ANOVA Testing Between Means of Large and Small Oil Companies

Factor| Large Company Mean| Small CompanyMean| F-Value| p=| Industry Trends| | | | |
Legal and Overseas | 13. 28| 12. 17| 1. 49| 0. 23|
Domestic | 6. 92| 6. 86| 0. 82| 0. 49|
Employment Trends| | | | |
Small Company| 11. 80| 14. 11| 16. 06| 0. 001*|
OSHA Regulation| 3. 02| 3. 33| 5. 49| 0. 0012*|
Overseas Production| 8. 14| 7. 65| 0. 94| 0. 42|
General Motivation| | | | |
Specific Satisfactions| 18. 99| 14. 24| 5. 91| 0. 0007*| Job Security| 7. 93| 4. 22| 45. 71| 0. 0001*|

Note: 1 Figures obtained by utilizing The Tukeys Studentised Range ( HSD ) Test. 2* Implies that a important difference between big and little company means.

H1: Large and little oil companies perceive general industry trends otherwise
From Table 5. it can readily be seen that there was non a important difference between the perceptual experience of the legal and abroad factor and the domestic factor. The fact that both company sizes agreed on industry tendencies. was taken as an indicant that the tendencies were common across all company sizes and therefore were representative of the tendencies in the industry as a whole.

Furthermore. because the domestic factor included tendencies like a lessening in occupation security and increased employee layoffs ( see Table 2 ) . and there was no difference in this perceptual experience. it was felt that both big and little companies had experienced similar layoffs and cutbacks.

H1a: Large and little oil companies perceive the effects of increased abroad production otherwise

It can clearly be seen that big and little oil companies do non comprehend the consequence of abroad production otherwise. Because the abroad production factor contained inquiry points like abroad production is aching big oil companies. and abroad geographic expedition is aching oil related concerns ( see Table 3 ) . it can be implied that both big and little ( oil related concerns are normally little companies ) companies believe that abroad production adversely effects them.

H1b: Large and little oil companies perceive the alteration in ordinances otherwise

There was a important difference between big ( 3. 02 ) and little oil ( 3. 17 ) companies means associating to the OSHA ordinance factor. We interpreted this consequence as an indicant that big oil companies believe that OSHA ordinances would impact them more than it would impact smaller oil companies. Because the big company mean was lower than the little company mean. and hence considered more of import ( see Table 3 ) . we can reason that big oil companies believe that they will be affected more adversely by ordinances than smaller oil companies will.

H2: Large oil company employees feel more threatened by new tendencies than do little oil company employees and have lower degrees of occupation security and general motive.

Degrees of general motive were considered to differ significantly between big and little oil companies. It can readily be seen from Table 5. that both the specific satisfaction factor. and the occupation security factor were significantly different. This strong support lends acceptance to our original predication that little oil company employees do non experience as strongly threatened by industry tendencies as big oil company employees do because big oil companies are downsizing by extinguishing places whereas smaller oil companies are reconstituting. redefining employment functions. instead than extinguishing them.


Our research shows that workers perceive several industry tendencies. These industry trends lead to an increased accent on cost efficiency. hiking productiveness. retrenchment. and consolidation. These tendencies can be divided into two specific factors: domestic and legal and abroad. Both little and big oil companies consider the domestic factor to be every bit of import. but big companies consider the legal and abroad factor to be more of import than little companies do.

We were able to farther polish our findings. By measuring differences in the sensed effects of legal ordinance we were able to turn out that there is a important difference between perceptual experiences employees of little and big companies. Therefore. we can reason that the difference in the perceptual experience of the effects of legal ordinances is partly responsible for the difference in the perceptual experience of employment tendencies. Consequently. the ensuing different employment environments. in bend. affects occupation security and general motive degrees otherwise.

Of considerable involvement was the determination that little oil companies have a higher grade of occupation satisfaction and general motive than big oil companies do. We attribute this phenomenon to the impression that big oil companies are downsizing by extinguishing places. whereas smaller oil companies are reconstituting. redefining employment functions. instead than extinguishing them.


The chief message for directors in the oil industry is apparent- the full industry is going progressively competitory. and cost efficiency and increased productiveness are the major concerns of every company in the industry.

First. directors should be cognizant that cost efficiency is being achieved through restructuring corporations and spread outing the functions of workers. Downsizing. streamlining. and a committedness to flexibleness is the new order. As a consequence of these altering corporate constructions. layoffs and cutbacks are going progressively common.

Second. directors should recognize that improved productiveness is being achieved by concentrating on squad constructs. cross-functional groups. reward systems. improved technological consciousness. and enriched preparation. We felt that mentoring may be another method worthy of consideration. Small companies tend to hold a more cohesive relationship between staff and direction ; if big companies could emulate this construct. it might be possible to better their occupation satisfaction.

Third. directors should see that employees are being required to execute a wider assortment of undertakings. Employees presents are required to be more technologically cognizant. and to be able to work in squads. In the yesteryear. specialisation of employees was stressed ; today general. preparation is going more of import. Hence. directors are going responsible for supervising a wider assortment of divergent employment functions. With the work force going more diversified. directors will hold to broaden their cognition base. and be more flexible in undertaking rating and deputation.

Finally. this disruptive employment environment has radically affected occupation satisfaction. and motive. Directors are under increasing force per unit area to happen new methods to maintain the work force happy. focused. and productive. Many oil companies are utilizing reward systems and public presentation ends to assist maintain workers stimulated and motivated. It was felt that because occupation security was deemed of import. it may be possible to hike occupation satisfaction by offering non-monetary inducements. Job security inducements. such as LIFO and long term contracts. may hike occupation satisfaction and general degrees of motive.


An interesting avenue for farther research highlighted by our survey would be to measure the occupation satisfaction of employees of big oil companies runing abroad and compare it to that of employees of big oil companies runing in the United States. We investigated the occupation satisfaction of employees in the domestic sphere. We did non measure employment satisfaction for those employees runing abroad. With the international function of oil companies going progressively more of import. this facet of occupation satisfaction within the oil industry may turn out to be of great future significance.

Besides of involvement for farther research is the survey of a broader scope of oil companies. We classified oil companies as being either big or little. disregarding the industry section in which they operate. Further research could be conducted to measure occupation satisfaction within sectors of the oil industry such as boring. transporting. refinement. and selling. It may so be possible to measure which sectors of the oil industry are sing alterations in occupation satisfaction. These alterations may foreground employment chances for the hereafter.

Finally. it may be of involvement to analyze the methods directors are using to maintain employees motivated and satisfied in this unsure on the job environment. A broad assortment of methods are presently being implemented. The effectivity of these methods has non yet been to the full investigated.

The generalizability of this survey is limited because our sample was restricted to oil companies in Texas and New Mexico. Although our research has provided some utile consequences. farther research should take this survey closer to world by carry oning a study with a wider geographic base.

All of these demands provide interesting chances for coaction between faculty members and practicians.


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[ 1 ] . Throughout our survey. T-Tests ( ? =0. 05 ) for gender differentiations showed no differences.

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