Towards Best Practice Jobs Decision-Making: Institutionalising Fuller Consideration of the Social Context in Resource Projects F
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Towards best practice jobs decision-making: institutionalising fuller consideration of the social context in resource projects Fiona Rosanne Martin BBus (Accounting and Finance) MBA (Marketing) PGradDipEd (Senior Years) CPA A thesis submitted for the degree of Doctor of Philosophy at The University of Queensland in 2016 Sustainable Minerals Institute Abstract Towards best practice jobs decision-making: institutionalising fuller consideration of the social context in resource projects A cost-effective, skilled and productive workforce is necessary for the competitive delivery of large-scale mining and oil and gas resource sector projects with labour representing 20 to 40 percent of the capital and operating cost. Companies therefore put considerable planning into jobs decision-making during the project design and approvals phases to optimise the workforce model. Less is known, however, about how consideration of the social context informs this process, especially in developing economies where the imperative for job creation is most pressing. As used here, the term ‘social context’ refers to the location of the resource project and associated infrastructure and the social, cultural, economic, and political characteristics of the nearby localities and regions. The thesis addresses the following question: what weighting is currently given to the social context in jobs decision-making for large-scale resource projects and why and how should resource companies institutionalise its fuller consideration? The study uses a grounded theory methodology, drawing on analysis of data from semi-structured interviews and a case study of a large-scale gas project in Papua New Guinea. The research culminates in a series of propositions, informed by institutional theory that provides new insights on why companies should give fuller consideration to the social context in jobs decision-making. The propositions connect jobs decision-making and the social context to the project business case, the regulatory approval process, and the attainment of a ‘social licence to operate’. Analysis of the interview data confirms that jobs decision-making is mostly seen by companies as a technical process. The embedding of personnel with social expertise in jobs decision-making processes is often dependent on the relationship with the project team. This situation can constrain how companies consider the social context. Executives increasingly recognise the need for improved practice, but it continues to be difficult to integrate this expectation into project delivery. Being able to demonstrate a favourable business case is typically the priority for companies, followed by meeting project financier and regulatory requirements. Local and community expectations are next in importance. The research indicates that in the absence of regulatory requirements, and where companies 2 have assessed that conflict is unlikely to impact on the project, there will be less emphasis placed on meeting local and community expectations. The five interconnected themes of business factors, communities of interest, socio- economic considerations, service delivery enablers, and broad-based development define how the social context can impact on and inform jobs decision-making. Feedback from interviewees and a case study of the Papua New Guinea Liquefied Natural Gas Project confirms the practical relevance of these themes, especially in a third world, developing economy context. The research also identifies that the social impact assessment (SIA) is not an appropriate mechanism for the more commercially-sensitive thematic analysis required to draw out these issues to inform jobs decision-making. Social analysis should be separate from the SIA and excluded from public documentation in order to provide the maximum potential for the social context to guide jobs decision-making. The thesis concludes that fuller consideration of the social context in jobs decision-making through the alignment of internal cultural-cognitive, normative and regulative elements will result in better company and community outcomes and a greater capacity to demonstrate a mutual enduring benefit (‘shared value’). A ‘Towards Best Practice’ jobs decision-making tool shows how companies can institutionalise fuller consideration of the social context in practice by strengthening internal leadership and business processes. 3 Declaration by author This thesis is composed of my original work and contains no material previously published or written by another person except where due reference has been made in the text. I have clearly stated the contribution by others to jointly-authored works that I have included in my thesis. I have clearly stated the contribution of others to my thesis as a whole, including statistical assistance, survey design, data analysis, significant technical procedures, professional editorial advice, and any other original research work used or reported in my thesis. The content of my thesis is the result of work I have carried out since the commencement of my research higher degree candidature and does not include a substantial part of work that has been submitted to qualify for the award of any other degree or diploma in any university or other tertiary institution. I have clearly stated which parts of my thesis, if any, have been submitted to qualify for another award. I acknowledge that an electronic copy of my thesis must be lodged with the University Library and, subject to the policy, and procedures of the University of Queensland, the thesis be made available for research and study in accordance with the Copyright Act 1968 unless a period of embargo has been approved by the Dean of the Graduate School. I acknowledge that copyright of all material contained in my thesis resides with the copyright holder(s) of that material. Where appropriate I have obtained copyright permission from the copyright holder to reproduce material in this thesis. 4 Publications during candidature No publications. Publications included in this thesis No publications included. 5 Contributions by others to the thesis No contributions by others. Statement of parts of the thesis submitted to qualify for the award of another degree None. 6 Acknowledgements For my husband, Tony The pursuit of a degree of Doctor of Philosophy would not have been possible without the love and support of my husband and soul mate, Tony Martin. In our family, he took on the role of husband, father, provider and carer, freeing me to study full-time while also working. I dedicate this thesis to Tony. For my children, Jack and Sophie My children are too young to appreciate the family sacrifices made to attain this degree, but they have witnessed my commitment and effort to achieve it. I hope that in the future, they too pursue their passion in life with persistence and determination, for doing so is a very satisfying thing. To my academic supervisors from the University of Queensland I thank my academic supervisors, Emeritus Professor David Brereton (principal supervisor), Centre for Social Responsibility in Mining (CSRM) and Dr David Wadley, Senior Lecturer Human Geography (supporting supervisor). David Brereton gave me the academic freedom to explore and address the research problem in my way while being there to support me when requested, an approach that suits my learning style. David Wadley provided me with guidance on how to structure and design the research problem with academic integrity. I could not have completed this thesis without the support of both supervisors. To the interviewees who provided me with richness of context I am grateful to the interviewees who provided honest insights and shared their knowledge on the large-scale project decision-making environment. To the other University of Queensland staff that provided advice along the way Associate Professor John Steen from the Business School assisted me to better connect with the institutional theory research agenda as well as providing constructive peer review of my thesis during two milestones. John also connected me with Professor Alf Jorgen Sandberg, who generously shared his wisdom on how to structure a thesis research design and methodology. Thanks, must also go to Dr Glen Corder, Principal Research Fellow at CSRM, who has always made himself available to chair my milestone review sessions and has, therefore, seen my development through to the completion of this thesis. Other acknowledgements Clearly Edited provided high-level editing assistance in the finalisation of this study. 7 Keywords jobs, employment, institutional theory, large-scale project, communities, social context, shared value, social licence to operate, corporate social responsibility, resource sector Australian and New Zealand Standard Research Classifications (ANZSRC) ANZSRC code: 160801, Applied Sociology, Program Evaluation and Social Impact Assessment, 50% ANZSRC code: 150399, Business and Management not elsewhere classified (Management), 25% ANZSRC code: 140202, Economic Development and Growth, 25% Fields of Research (FoR) Classification FoR code: 1608, Sociology, 50% FoR code: 1503, Business and Management, 25% FoR code: 1402, Applied Economics, 25% 8 Contents Abstract ................................................................................................................................ 2 Declaration by author ........................................................................................................... 4 Publications during candidature ..........................................................................................