Assessing the Relationship between Human Resource Strategies and Local Content in Tanzania Oil and Gas Industry

Nuru Kalufya,Henry Chalu,Francis Michael

doi:10.19026/ajbm.7.2107

Abstract

Localisation of workforce is the major driving force for Human Resource Strategies in the OG Industry. However implementation of local content policy in the industry is facing major challenges. This study focused on assessment of HR strategies used in implementing the localisation in OG industry and also to determine the factors affecting localisation of Human Resource in the industry. Four case studies selected from the industry were employed to collect in-depth information. The study finds that all of the cases studied companies seem to be committed to local content policy. However it was observed that the practicability of their commitment to local content compliance was facing challenges during the implementation as there is a lack of locals with the needed qualifications in the industry, there are no local training institutes specialized in Oil and Gas, also many of the companies in the industry in Tanzania are new and some in early stages of their operations. It was further observed that local businesses are facing the same challenges of qualifications of locals and their business in rendering the services as per international or desired standards. Lack of localisation related HR Strategies and Government system support and commitment to the localisation seems to be the main factors affecting the localisation of Human resource in Tanzania. So in order for the Local content to be achieved, Human Resource strategies has to be localisation related and the Government has to be fully committed and support the localisation in the industry.

Highlights

The Human Resource discipline is becoming a central concept to any organization today
Human Resources strategies i.e., recruitment, training and succession planning when implemented well in Oil and Gas industry will influence the achievement of local content through job creation of locals, develop the capacity of locals and fostering technology transfers through trainings, procurement of local goods and services and empowerment of local suppliers to meet the needs of the industry in term of quality, quantity and timing
Was applied as it produces a detailed data on the phenomenon being investigated as they are derived Human Resource (HR) strategies used in implementing the localisation directly from people involved or stakeholders (Patton, of human resource: As it is shown in Table 1 above, 2002 cited in Brikci, 2007)

Summary

INTRODUCTION

The Human Resource discipline is becoming a central concept to any organization today. Human Resources strategies i.e., recruitment, training and succession planning when implemented well in Oil and Gas industry will influence the achievement of local content through job creation of locals, develop the capacity of locals and fostering technology transfers through trainings, procurement of local goods and services and empowerment of local suppliers to meet the needs of the industry in term of quality, quantity and timing. All of these depend on the size of organization, type of organization whether is in Oil or Gas industry and ownership of the organization in terms of nature of shareholders involved. Local Content Policy need to take into consideration size of OG reserves, structure of labour market in terms of skill levels, size and structure of OG sector and the level of regulatory and institutional capacity customized to Tanzanian framework as no ‘one size fits all’ in terms of local content policy with respect to employment, purchasing strategies, localization and the transfer of knowledge

RESEARCH METHODOLOGY

OF THE FINDINGS

CONCLUSION