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Chapter One Introduction to the Research THE DEVELOPMENT OF A FRAMEWORK FOR MANAGEMENT DEVELOPMENT IN THE LIBYAN OIL SECTOR: A CASE STUDY OF THE UPSTREAM OIL COMPANIES Nagi Mohmed MILLAD School of the Built Environment College of Science and Technology University of Salford, Salford, UK Submitted In Partial Fulfilment of the Requirements of the Degree of Doctor of Philosophy, June 2013 i IN THE NAME OF ALLAH, MOST GRACIOUS, MOST MERCIFUL DEDICATION Much-loved Parents “And your Lord has decreed that you worship none but Him; and that you be dutiful to your parents. If one of them or both of them attain old age in your life, say not them a word of disrespect, nor shout at them but address them in terms of honor” (Qur’an, Surat Al-Isra (17),Ayah23). Best Brother For his full support and an endless encouragement Dear Wife For her continuous bear, patient and love Eldest Sweetheart Daughter For her full help, prayers and patience Honey Sons and Daughters Alaa, Mohamed, AbdulRauf, Asraa, Suzan, Fatima Hoping to be a candle that lights their future Beloved Sister, Brother and their families For their incessant support, encouragement and love ii ACKNOWLEDGMENTS IN THE NAME OF ALLAH, MOST GRACIOUS, MOST MERCIFUL All praises are due to Allah SWT who created man and taught him things which he never knew who has taught (the writing) by the pen. Has taught man that which he knew not”. Alhamdulillah, with permissible of Allah, for giving me the health and an effort to make the completion of this thesis possible. And peace and prayers be upon the messenger Mohammed. I would like to thank my parents and pray for them for many years of their love, guidance, appreciation, understanding, support and patience in all my academic pursuits, without their prayers, satisfaction and support I would never have reached this stage. “My lord, bestow on them your mercy as they did bring me up when l was small”. The author would like to appreciate and thank the following people who have contributed greatly in accomplishment of this thesis, to them I owe a great deal, and I must convey to them my thanks and acknowledgement, and without whom this thesis would not have been possible. First of all, my greatest gratitude and sincerest appreciation is given to my supervisors Dr. Monty Sutrisna and Professor Les Ruddock for their constant guidance, great co- operation, immense assistance, patience, constructive comments, kind treatment, support and their continued encouragement throughout the different stages of this research. I am most grateful to all members of staff in school of The Built Environment and The College of Science and Technology at The University of Salford for their help and support. Especially, Professor Vian Ahmed, Professor Charles Egbu, Dr Jason Underwood, Cheryl Batley, Moire Mort, Rachel Lilley, Carol Gordon, Nathalie Howarth and Catriona Barkley. My thanks also due to staff of different libraries which I used during my research: Salford University Libraries, Manchester University, MMU, Bolton University. Libyan iii oil sector Library, General Authority for information Library and Central Bank of Libya Library. I wish to extend my thanks to my colleague and friends at the University of Salford. Much gratitude also to theses who were involved in my pilot study both in the UK and Libya for their kindness and comments. I would like to express my sincere acknowledgement to those mangers of the Libyan oil companies (Waha and Repsol companies) and National oil corporation (NOC), special thanks are owed to Mr A. Salama the member management committee of Waha company and Mr M. Khazmi the Head of Law department in Repsol company who participated in this study, spending a long time and offering valuable data, without their patience and help it was impossible to complete this study. My greatest gratitude is to my brother, sister and their families for their patience, encouragement and support. My special thanks to my brother Saad for his love and guidance towards the beneficial avenue of seeking knowledge and understanding this Life and the hereafter. My last but certainly not least, gratitude and sincerest appreciation is given to my large family: my wife Khearya, my sons Alaa, Mohamed, AbdulRauf, my daughters Turea, Asraa, Suzan and Fatima for the patience shown by them in allowing me to occasionally discord some aspects of family life, and being with me here in the UK that is make my time more enjoyable and lively. My special love and thanks are due to lovely wife and eldest sweetheart daughter for their tolerance, encouragement, prayers, help, patience and continuous support throughout the period of this research. I would like to express my heartfelt thanks to whoever made any contribution in this study. iv ABSTRACT Due to increased globalisation of markets and liberalisation of local economies, businesses all over the world are developing increasingly competitive strategies. Management development is central to the success of these strategies. Therefore there is an increasing interest in management development and human resources development in Libya. The hope being that these forms of development can improve, and upgrade, the performance of Libyan human resources to achieve the required level of effectiveness, and to attain competitiveness in the world economy. The main objectives of this research are to develop the framework to implement management development programmes and to analyse the current management development practices in Libyan organisations and explore the extent to which transference of Western management development practices, if such transference is possible, has in fact occurred. The study carried out was essentially an evaluation to assess the value of management development; the specific focus of this evaluation was on two comparative cases in the Libyan oil Industry. The research project was carried out in the oil sector which has a particular importance to Libya’s economic prosperity and should be the first place that management development takes place, but equally would be the best place for the transfer of Western management practice to occur. A case study design was used which involved an empirical investigation of a particular contemporary phenomenon within its real life context using multiple sources of evidence. The main data collection tool was a questionnaire which meant that all the completed responses could be collected within a short period of time and any initial doubts that the respondents might have on any question were clarified on the spot. This also allowed the introduction of the research topic and meant the respondents could be motivated to offer their frank answers. Telephone interviews were used in retrospectively to gather specific information regarding management development within the companies which allowed triangulation. Reliability analyses using Cronbach’s alpha as well as univariate analysis were carried out as were multivariate analyses such as factor analysis (FA) and multiple logistic regression. The non parametric Mann-Whitney test was used to evaluate the association between the instruments (scale). The results of this study show that there is no priority given to manager development at a strategic level in either of the companies. There is no senior endorsement of management development via a written management development policy and no systematic mechanisms for accurately diagnosing group/individual training needs nor any evaluation processes to ensure training remains high quality and business-focused in place at Waha or Repsol either. The Libyan environment and Arab culture have negative effects on perceptions of training in general, and management development in particular, which leads to no serious attention being given to the implementation of management development activities. v TABLE OF CONTENTS Page Dedication Ii Acknowledgement Iii Abstract V Table of Contents Vi List of Tables Xii List of Figures Xiv List of Abbreviations Xv References Xvi Appendixes Xvi CHAPTER ONE INTRODUCTION TO THE RESEARCH Page 1.0. Introduction 1 1.1. Human Resource Development 3 1.2. National Human Resource Development 4 1.3. Organisational Human Resource Development 5 1.4. Management Development 7 1.5. Management Development in Libya 8 1.6. The Significance of the Oil Sector 9 1.7. The Need for this Research 11 1.8. The Research Outline 12 1.8.1. Research Aim 12 1.8.2. Resreach Objectives 13 1.9. The Research Contribution 13 1.10. Structure of the Thesis 14 . vi CHAPTER TWO THE POLITICAL, ECONOMIC, SOCIAL AND TECHNOLOGICAL ENVIRONMENT OF LIBYA Page 2.0. Introduction 16 2.1. Background to Libya 71 2.2. Political Developments Since Independence 71 2.3. Libyan Economic Environment 02 2.3.1. The Period from 1969-1980 02 2.3.2. After the Revolution 1980-2000 03 2.3.3. The New Millennium 06 2.3.4. Economic Development from a Knowledge 29 Perspective 2.4 The Social System 29 2.5. Technological Environment 32 2.6. Arab and Libyan National Human Development 37 2.7. Arab and Libyan Management Development 39 2.8. Conclusions 40 CHAPTER THREE THE IMPACT OF CULTURE ON MANAGEMENT DEVELOPMENT (MD) IN LIBYA Pages 3.0. Introduction 44 3.1. The Concept of Culture 47 3.2. Cultural Differences Across Nations 48 3.3. National Culture 52 3.4. Organisational Culture 53 3.5. The Influence of National Culture on Organisational Culture 55 3.6. The Influence of Organisational Culture on Managerial 57 Culture 3.7. Management in Developing Countries 60 3.8. Transferability of Management Theory Across Cultures 62 3.9. Conclusions 64 vii CHAPTER FOUR HUMAN RESOURCE DEVELOPMENT AND MANAGEMENT DEVELOPMENT LITERATURE REVIEW Pages 4.0. Introduction 68 4.1. The Need for Human Resource Development HRD 69 4.1.1. The Purpose of HRD 71 4.1.2. Performance Management 73 4.1.3. Performance Improvement 74 4.1.4. Value of HRD 76 4.1.5.
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