An effective econometric study should have its basic magnitudes and specifications established on accurate empirical foundation. The reason for this is to ensure that the theoretical model from the subject of the study is not misperceived because it will misguide a research study. Empirical studies by Watcher, Perry, Parnes and Hall have raised central macroeconomic questions regarding laying off of workers, inflation and unemployment (Ghasabeh, Reaiche & Soosay, 2015). The problem of laying off workers is one of the major management issues today. In the oil and gas sector, an increase in oil price is often a key setback that leads into massive downsizing.
Regardless of how one looks at it, reductions in force, rightsizing or layoffs for economic reasons do not merely worsen the state of unemployment. It also creates a pool of job losers. Finding new jobs therefore comes on after a general business upturn. However, modern research tends to argue that the current unemployment level is not caused by layoffs or loss of previous jobs. Rather, it argues that it could be due to changes in workforce re-entering new work areas and in some cases, some workers quit voluntarily. In my opinion, this argument is a distortion of the varied views of lay-offs. It hinges on the notion that temporary layoffs cause unemployment, a spell which only lasts for four weeks without job change after which a rehiring occurs. It is true that all layoffs are temporary in some sense. While the phenomenon of layoffs and its obvious importance continue to raise questions, current theories of unemployment require major reevaluation (Hillier, Cannuscio, Griffin, Thomas, & Glanz, 2014).
Insider action research on layoff in the oil sector reveals that workers are constantly being laid off temporarily or permanently, a situation that calls for planned intervention (Hillier et al., 2014). While their work environment might be complicated, these workers are structurally subordinate and not autonomous. Human resource analysts agree on the important role that employees in an organization play in realizing the set vision. Employees create a critical interlink between the different entities in an organization. The latter contributes towards economic growth. Laying them off creates a challenge towards realizing the set goals and objectives. There should be proper legislations that protect workers against layoff as opposed to hiding behind the existing loopholes in the legislations (Björkman & Sundgren, 2005).
Studies reveal that employees are placed on a critical balance between the possibilities of a layoff due to economic downturn and legislations that support highly oppressive employers (Hillier et al., 2014). Owing to the increasing layoff in the oil sector that stands at about 15% in my organization and 20% reduction in salaries, there is need to challenge current employment legislations in order to seek ways to override the existing trend in the sector. Most importantly, the legal systems that support it should also be considered. As Harris & Clark (2014) put it, an employment legislation that protects workers against layoffs system should be created in order to ensure that there are no professional gaps occasioned by downsizing (Coghlan & Brannick, 2014).
Motivation among workers in the oil and gas industry is the single most influential factor in achievement of higher productivity and profitability. Over the years, the role of motivation to bring out the best in a workforce acts as the main springboard in effective promotion of an organization’s management plans. It is from this notion that motivation in the gas an oil sector is very critical in case of a rebound. It should be assimilated not just at the top management level, but at the lower sections to derive genuine intrinsic returns. This should be employed to effect the necessary changes and assimilate holistic productivity and progress in the industry.
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