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llilll,,ll lilllll l lllll'lll ll llllllllllll o E: inf [email protected] w.abbeybookbinding.co.uk t 1'.a. PRIFYSGOL CYMRU THE UNIVERSITY OF WALES WORKFORCE ANALYSIS FOR THE LIBYAN HOTEL SECTOR: STAKEHOLDER PERSPECTIVES AHMED ALI ABDALLA NAAMA, BSC., MSC. Thesis submitted to the Cardiff School of Management in partial fulfillment of the requirements for the degree of Doctor of Philosophy. 2007 Cardiff School of Management, University of Wales Institute, Cardiff' Colchester Avenue, CARDIFF, CF23 9XR United Kingdom l_l\Nlic Declaration DECLARATION I declare that this work has not previously been accepted in substance for any degree and is not being concurrently submitted for any other degree. I further declare that this thesis is the result of my own independent work and investigation, except where otherwise stated (a bibliography is appended). Finally, I hereby give consent for my thesis, if accepted, to be available for photocopying and for interJibrary loan, and for the title and abstract to be made available to outside organisations. Ahmed Ali Abdalla Naama (Candidate) Dr. Claire Haven-Tang (Director of S ) ones (Supervisor) Acknowledqements ACKNOWLEDGEMENTS Praise be to Allah; the Cherisher and Sustainer of the worlds; most Gracious, most Merciful. He has given me the ability to do this work. This thesis would not have been possible without the guidance, information and support provided by many people. In particular, I would like to thank my Director of Studies, Dr. Claire Haven-Tang and my supervisor, Professor Eleri Jones for their continuing support, valuable input during the work, patience and undoubted knowledge and wisdom. I would like to express my sincere thanks and appreciation to all the managers and staff of the Libyan hotel sector, who participated in this research. Without them, there would not be a thesis to submit. And special thanks to Emma Bettinson for her support and assistance. I had an inspiring time at the University of V/ales Institute, Cardifl, which is mainly due to the cooperative staff and my research colleagues. I want to thank them very much indeed for every pleasant interaction and for providing immeasurable help. On a personal level, I would like to thank my family, especially my mum, my wife and my little daughters, whose patience made the completion of this research possible. To all mentioned, I dedicate this work. Wales, November 2007 Ahmed Ali Naama il Abstract A,BSTRACT Tourism in Libya is perceived as the best long-term alternative to the oil industry upon which the country's economy has been heavily dependent. Hotels are a key element in the tourism industry. This study focused on developing a model of workforce analysis (WFA) for the Libyan hotel sector to support the development of Llbya as an internationally competitive tourism destination. Specifically, the objectives of this study were: to explore tourism development in Libya and critically analyse Human Resource Development (HRD) strategy proposed in the Libyan Tourism Master Plan (LTMP) for the Libyan hotel sector; to carry out a critical review of literature to identiff HRD issues in the tourism and hospitality industry as well as altemative models of workforce planning (WFP) to inform adaptation of a unified theoretical model; to identiff Human Resource (HR) issues facing the Libyan hotel sector and establish congruence and dissonance between the hotel soctor, Hospitality Education Institution HEI and government views on these issues and to develop a best practice WFA model appropriate to the needs of the Libyan hotel sector. This study was carried out in four main stages. The first stage involved an extensive literature review to generate a background and develop a theoretical framework for the research. This study adopted a case study approach (Yin, 2003), incorporating semi- structured interviews with hotel managers? HEI staff and government officials. The second stage involved the use of the Delphi technique to build consensus on the best practice WFP model for the Libyan hotel sector. The third stage involved conducting further semi-structured interviews with hotel managers, HEI staff and government officials to identify key WFP issues within the Libyan hotel sector. The fourth stage provides recommendation to solve the existing human resource problems facing the hotel sector and V/FP implementation strategy. The study concludes that there are some major HR issues facing the Libyan hotel sector, including: recruitment and selection; skills gaps; inadequate practical training; minimum opportunities given to overseas workers; role of public and private sector in HR development; shortage of qualified academic staff; outdated curricula; inadequacy of LTMP; funding of Libyan HEIs; lack of co-operation between the hotel sector, HEIs and the government; leakage of graduates and academic staff and poor image. To tackle these HR issues, this study proposes a best practice WFP model for the Libyan hotel sector. The WFP model comprises seven elements: the government; the hotel sector (demand side); the HEIs (supply side); gap analysis; workforce development plan (WFDP); implementation strategy and evaluation. The main contributions of this study include: the understanding of the key HR issues confronting the Libyan hotel sector; the application of Delphi technique to build consensus on the essential elements for V/FP model for the Libyan hotel sector and the development of a best practice WFP model. ill Table of contents TABLE OF CONTENTS CHAPTER ONE: INTRODUCTION 1.1 ECONOMIC DIVERSIFICATION THROUGH TOURISM l-2 1.2 THE IMPORTANCE OF THE TOURISM INDUSTRY IN LIBYA ... 15 1.3 THE LTBYAN TOURISM MASTER PLAN (LTMP)...... t-7 1.4 PREVIOUS RESEARCH.... 18 1.5 RESEARCH QUESTIONS...... ll0 1.6 RESEARCH AIM AND OBJECTIVES.... 1-11 1.7 WHY CHOOSE TRIPOLI AS A CASE STUDY?.. l-t2 1.8 STUDY DESIGN.. 1-13 1.9 STRUCTURE OF THE THESIS... r-16 CHAPTER TWO: TOURISM IN LIBYA 2.1 INTRODUCTION..... .2-3 2.2THE LIBYAN CONTEXT 23 2.3 NATIONALISATION OF THE PRIVATE SECTOR IN LIBYA. ...2-13 2,4EMPLOYMENT AND WAGES LAW. ....2-17 2.5 IMPACTS OF EMPLOYMENT LAV/S: PUBLIC VERSUS PRTVATE SECTORS IN LIBYA .2-23 lv Table of contents 2.6 TOURISM DEVELOPMENT IN LIBYA 226 2.7 LTBYAN TOURISM MASTER PLAN (LTMP). 2.8 SUMMARY...... 2-s7 CHAPTER THREE: LITERATURE REVIEW 3.1 INTRODUCTION.... .3-2 3.2 HUMAN RESOURCE MANAGEMENT (HRM) .3-3 3.3 HUMAN RESOURCE DEVELOPMENT (HRD) 38 3.4 HRM AND HRD ISSUES IN THE TOURISM AND HOSPITALITY INDYSTRY .3-t4 3.5 V/OMEN IN THE HOSPITALITY SECTOR WORKFORCE 338 3.6 WORKFORCE PLANNING,..., ..3-43 3.7 SUMMARY. ..3-73 CHAPTER FOUR: RESEARCH APPROACH 4.1 INTRODUCTION 42 4.2 RESEARCH OVERVIEV/ 43 4.3 QUALITATTVE OR QUANTITATIVE RESEARCH?............. 44 4.4 THEORETICAL PERSPECTIVE 4-6 4.5CASE STUDY OF LIBYA 410 4.6 PRACTICALAPPROACH: OBJECTIVE THREE 4.7 PRACTICAL APPROACH: OBJECTIVE FOUR 4.8 RELIABILITY, VALIDITY AND TRIANGULATION. 4.9 GENERALISATION OF RESULTS.... 4.IO SUMMARY. v Table of contents CHAPTER FIVE: WORI(FORCE PLANNING FOR THE LIBYAN HOTEL SECTOR 5.1 INTRODUCTION 52 5.2 WFP MODEL 5.3 PROBLEMS FACING WORKFORCE PLANNING (WFP) IN THE LIBYAN HOTEL SECTOR .. 55 5.4 CRITICAL ISSUES ARISING FROM THE INITIAL V/ORKFORCE ANALYSIS FRAMEV/ORK..... 516 5.5 BUILDING CONSENSUS ON THE WFP MODEL.... ........5-21 5.6 PROPOSED BEST PRACTICE WFP MODEL FOR LIBYAN HOTEL SECTOR. ....5-23 5.7 SUMMARY. s-46 CHAPTER SIX: HR ISSUES IN THE LIBYAN HOTEL SECTOR 6.1 INTRODUCTION .6-3 6.}THEPERSPECTIVE OF THE LIBYAN HOTEL SECTOR. .......,.6-4 6.3 THE PERSPECTIVE OF THE LIBYAN HOSPITALITY EDUCATION INSTITUTIONS (HEIs). 626 6.4 THE PERSPECTIVE OF THE LIBYAN GOVERNMENT. 639 6.5 CONGRUENCE AND DISSONANCE BETWEEN KEY STAKEHOLDERS' VIEWS ON HR ISSUES FACING THE LIBYAN HOTEL SECTOR. 651 6.6 SUMMARY. ....6-59 vt Table of contents CHAPTER SEVEN: RECOMMENDATIONS 7.1 INTRODUCTION 72 1-) 7.2 GENERAL RECOMMENDATIONS. 7.3 RECOMMENDATIONS FOR THE LIBYAN HOTEL SECTOR. ...7-4 7.4 RECOMMENDATIONS FOR THE LIBYAN HEIs.. ...7-6 7.5 RECOMMENDATIONS LIBYAN GOVERNMENT ...1-8 7.6 WORKFORCE DEVELOPMENT PLAN (WFDP) A SOLUTION FOR WORKFORCE PLANNING ISSUES IN LIBYA...... .... 7-t3 CHAPTER EIGIIT: CONCLUSIONS 8.1 INTRODUCTION .8-2 8.2 REVIEW OF RESEARCH OBJECTIVES. .8-2 8.3 LINKING RESEARCH FINDINGS TO RESEARCH QUESTIONS 8-15 8.4 RESEARCH CONTRIBUTION TO THEORY. 8-20 8.5 RESEARCH CONTRIBUTION TO PRACTICE..... 8-21 8.6 LIMITATIONS AND SUGGESTIONS FOR FUTURE RESEARCH 8-22 8.TPERSONAL THOUGHTS.. 8-25 REFERENCES APPENDICES vlt List of Appendices LIST OF APPENDICES APPENDIX 1: LIST OF INSTITUTES OFFERING COURSES IN HOTEL SECTOR AND TOURISM INDUSTRY IN LIBYA 1 APPENDIX 2 : INCREMENTAL STAFFING REQUIREMENTS BY SKILL CATEGORY 3 APPENDIX 2: INCREMENTAL WORKFORCE REQUIREMENTS BY LOCATION TYPE AND GRADE OF ESTABLISHMENT........4 APPENDIX 3: TNTERVIEW QUESTIONS ON WORKFORCE PLANNING.........5 APPENDIX 4: TNTERVTEW QUESTIONS FOR HOTEL MANAGERS. ........7 APPENDIX 5: LIST OF PUBLIC HOTELS IN TRIPOLI IN LIBYA . I O APPENDIX 6: THEMES DISCUSSED WITH KEY STAKEHOLDERS .........11 APPENDIX 7: FUNCTIONAL GRADES AND SALARIES FOR EACH GRADE....... t4 vilt List of tables LIST OF TABLES Table 1.1 GDP according to economic sectors in the years 1998,2000 &. 2004 (LD'000'). T2 Table 1.2 Visitor arrivals to Libya. .t-7 Table 2.1Changes in the nationalisation of the private sector in Libya. .........2-I4 Table 2.2Mainthemes in the Libyan employment laws. .....2-18 Table 2.3 Gross National Product (GDP) with the cost of the income factors with fixed prices, 1986-2002 (Million LD).. 2-29 Table 2.4 Gross National Product (GDP) with the cost of the income factors with current prices, 1986-2002 (Million LD)... 229 Table 2.5 Employment in the Libyan hotel sector in relation to the total employment, t986-2002 ('000').