The Industry Versus Its People
Authors: Cahoon A.R. , Rowney J.I.A. 
Published: March 2010

Clearly, a major factor influencing overall organizational viability and success in the energy industry during the next decade will be the ability of this strategic sector to maximize the inherent capabilities of its employees. The dramatic growth in requirements for the technical expertise necessitates a parallel revolution in human resource management.

This paper will focus on future needs, the educational demands, opportunities resulting from this revolution, and various approaches open to the industry in order to meet its people challenge in the 80s. The susceptibility of the industry to the imperative of technical change is obvious. Unfortunately, its approach to human resource development is quite unclear and has lagged behind. Evidence of these ineffective and traditional approaches to human resource management can be seen in staff turnover, absenteeism, low commitment to training and development, and a general dissatisfaction with the level of management competence.

The Challenge

The decade of the 80s represents a critical challenge to the energy industry to improve its productivity through enhancing its management of human resources. Responsibility to attract, identify and develop human resource potential is directly related to the industry's search for stable, cost-efficient energy sources. The dramatic growth in technical expertise required by today's energy industry requires a parallel revolution in its human resource management. This human resource challenge has two closely interrelated components. The first is the responsibility to attract, retain and effectively utilize its competent professional employees. The second is the challenge to the industry to develop more highly qualified management personnel. Indicative of the human resource problems are high staff turnover, absenteeism, poor quality output, disinterest, soaring grievances, generally low commitment to training and development, and a pervasive overwhelming dissatisfaction with the level of management competency within the industry(l,2).

The past three years have reflected an unprecedented growth in the petroleum industry. Despite rising unemployment in other areas, the industry has experienced critical manpower shortages in the skilled and professional sectors. In 1981, due to the National Energy Program, demands have stabilized, but the respite can only be viewed as short-term(J). Hopefully, this pause can be utilized to develop educational/training programs throughout the workforce, rather than cutting back on existing facilities. Often the latter is more prevalent in periods of uncertainty. The traditional strategies of the 70s are no longer viable and organizations must view their environments differently so as to develop long-range forecasting on radically altered assumptions(4). Such enterprises require both diverse and different management skills, as well as a new structure that reflects responsiveness and flexibility. Managers must be developed to reflect such a philosophy.

Today's labour force is quite different in many ways from workers of earlier times, and in Alberta's highly reactive environment there is even greater instability. Individuals are mobile and have limited organizational loyalty. The labour force is generally more educated, job opportunities are abundant, the technology is challenging and the organizational climates are dynamic. The highly sophisticated nature of the technology required to deliver stable, cost-efficient energy requires specialized higher education.