The HR Activities in Omans Private Sector - Dissertation Example

? Research Proposal “Competency-based HRM Activities in Oman’s Private Sector” Contents Introduction Background Challenges Competency-based training Research Aims Purpose of Study Literature Review Methodology Data Collection Method Analysis of Findings Conclusion References Title Competency-based Human Resource Activities in Oman’s Private Sector Introduction Background Human resource development (HRD) has gained increasing prominence in the development agenda of the Sultanate of Oman. This has intensified with the need for Omanisation. Of great concern to the government of Oman is the need for a well trained, highly skilled and competent labour force. With projections of growth in the population it is extremely important that the foundation is set for adequate competency-based training and development to achieve the Omani Vision 2020 goals. The vision as outlined in its HRD strategy (Vision 2020) is: “To develop human resources and the capabilities of the Omani people to generate and manage technological changes efficiently, in addition to facing the continuously changing local and international conditions, in a way that ensures maintaining the Omani traditions and customs.” The need to diversify in order to reduce its reliance on oil is of major importance and the expectation is that the private sector will be most able to help the country to realise that vision. According to Potter (1989, p.26) effective localisation (Omanisation) occurs when a local (Omani) filling a job is sufficiently competent to fulfil organisational needs. The strategies by which the Government of Oman plans to achieve its long-term “Vision 2020” plan are: sustainable development within a stable macroeconomic framework; human resources development; diversification of the economy; and development of the private sector (UNESCO Report n.d.). All of these strategies are integrally related and the development of human resources through the education system as well as through competency-based human resource activities in the private sector is critical. It is therefore important that organisations especially those in the private sector develop a strategic human resource management program with competency-based training and development activities at its core. Challenges The dependence on expatriate labour has serious consequences politically, economically and socially (Rees et al 2007). Oman along with other Middle Eastern countries has been highly dependent on expatriate workers for advanced technical and professional expertise and manual labour (Aycan et al 2007, p. 13). Human capital is recognised as the means to social progress and economic development, and therefore the development of Omanis is seen as the key to the realisation of Oman’s vision. This is especially important with the emphasis that has been has placed on Omanisation. According to Ghailani and Khan (2004) the private sector is viewed as one of the main vehicles for growth and development through which greater employment generation is likely to occur. In the long run Omanis rather than expatriates are expected to promote efficiency and effectiveness in the private sector (Al-Hamadi et al 2007). In this regard the Government’s social policy and specifically that connected with the development of the skills of Omanis has taken priority as it strives to enhance the capacity of its people to participate effectively in the country’s development (UNESCO Report n.d.). Another challenge is the increasing unemployment of Omanis, especially those who have only completed secondary education. This situation exists amidst the high percentage of expatriates employed in the private sector. Omanis remain reluctant to take up certain positions in the private sector. Al-Hamadi et al (2007, p.104) states that data suggests that Omanis have a preference for certain sectors while they reject others such as construction and other manual jobs. Therefore, there are doubts that targets for certain industries in the private sector will ever be met without some fundamental interventions. The banking sector has shown success in the Omanisation process and research has indicated that Omanis represent a stunning 91% of the labour force (Al-Lamki 2005). However, a certain stigma is attached to Omanis in the private sector in terms of their attitudes. This reputation has cast doubts on their suitability for employment. Additionally, the private sector discourages and disqualifies Omanis from applying for jobs by placing emphasis on work experience and English Language skills Al-Lamki (1998, p. 392). Furthermore, the conditions of employment - wages, hours of work and non-monetary benefits are not as attractive as in the public sector. As a result of these challenges Omanis generally strive to obtain jobs in the public sector rather than the private sector. Competency-based approach To deal with the problem of Omanis leaving secondary school and not being able to gain employment the government has sought to increase the levels of competency by emphasising vocational training. However, the support of the private sector in this regard is critical in providing an enabling framework to facilitate this development. This requires a competency-based approach to HRD. This will allow for the transfer of tacit knowledge as well as the development of skills and competencies which are important for organisations and nations to gain competitive advantage. It is also critical for businesses to meet certain competitiveness challenges. According to Noe et al (1997) these competitiveness challenges encompass global, quality, social and high-performance work systems challenges. It is considered that a competency based framework will take these challenges into account. The competency-based approach is considered as a powerful tool for contemporary HRM competency based models and have been developed and customised across a broad range of industry sectors. According to Horton (2002) competency management has rapidly turned into a key HR strategy. Research aims This research seeks to determine the following: 1. The existence of a framework that relates the competencies gained in the educational system with the requirements in the workplace. 2. The extent to which companies in the private sector are involved in internship programmes that will better enable graduates of various institutions to gain work experience. 3. The existence of a special programme that allows for the transfer of tacit knowledge in the workplace to help the company in maintaining competitive advantage. 4. The extent to which employee development programmes that are practiced allow for the development of the necessary competencies that will facilitate effective performance. 5. The regularity of training programmes 6. The extent to which performance appraisals are carried out to determine gaps in employee learning and to act as a basis for the determination of training needs. 7. The extent to which competencies are reviewed against the needs of the jobs and informed by future focussed workforce plans that predict the nature and requirements of future roles (CIPD 2010). 8. How competency based tools are developed Purpose of the Study The purpose of this study is to examine HRD systems within the private sector of the Sultanate of Oman against the foregoing background. Specifically, it is designed to: 1. Analyse the HRD issues in the private sector and to determine the context in which they occur; 2. To identify ways in which HRD can be redefined to accommodate the changing realities of the 21st century and the need for organisations to adopt a competency-based strategic human resource management system. 3. Offer recommendations that could inform the effective development and utilisation of human resources in the private sector in order to facilitate an effective Omanisation program for the sector. Literature Review According to CIPD (2001, p. 2) the words competence and competency are used interchangeably leading to some amount of confusion with regards to whether they refer to activities, personal skills, tasks or skills. Miller et al (2001) distinguishes between behavioural competencies which relates to soft skills (how people are expected to behave in order to perform well) and technical or functional competencies which relates to hard skills (what people are expected to know in order to perform their jobs well). Ogrean et al (2009) states that what is of real importance for an organisation is the way it combines the unique set of resources to create value. This knowledge of the way resources are transformed into products and the specifics of this process define organisational competencies. Ogrean et al (2009) further states that both capabilities and competencies are important for an organisation. Competency represents the theoretical aspects of the process while capability represents the practical aspects of the process of value creation. Spicer (2009) a practitioner and Vice President of Human Resource and Administration at Luxottica Retail (an eye wear business) in Mason Ohio define competencies as “sets of skills, knowledge, abilities and attributes - characteristics that enable people to successfully perform jobs.” In giving a first person account on building a competency model Spicer (2009) indicates that Luxottica built business drivers that they use to hire, measure performance and train against. When persons are recruited and developed they are expected to apply the skills learned in a variety of tasks both currently and in the future. The competency model that was built for Luxottica was done to support the life cycle of the employee from selection to performance management through to succession planning. All the tools from pre-hire selection assessments, performance management criteria, succession planning programmes for top talent and training and development curriculum are anchored in these competencies. CIPD (2010) indicates that competency frameworks can be extremely useful from recruitment through to development, performance management and talent recognition. These will only aid the decision making process if they are reflective of both job and organisational needs in terms of skills, experience and behaviour. CIPD (2010) further suggests that competencies should take account of both job and person specification, reflect the “ethos and values” of the organisation along with the organisations medium to long term needs for talent. CIPD (2010) also states that in order to be effective, competency frameworks need to be “constantly reviewed against the needs of jobs and informed by future focussed workforce planning; predicting the nature and requirements of future roles. Methodology The study hypothesizes that the HRD system in the private sector is inadequate to respond effectively to the HR needs and requirements; to help steer the economy towards its quest for Omanisation. HR needs and requirements encompass organisational programmes and processes that facilitate employee development. A knowledge based economy requires a private sector with the capabilities and organisational structures that are adequately developed to allow it to interface with a dynamic world environment. The private sector must be able to respond proactively to national development objectives. The research seeks to examine the structures and processes in the HRD system and to analyse their effects on a number of variables including: recruitment and selection, performance management, training and development, utilisation, motivation, welfare and employee benefits, succession planning and retirement benefits. The conceptual framework will be drawn from the works of various theorists and practitioners in the competency-based approach to strategic human resource management. A brief overview of human resource development in Oman provides a basis for the analysis of some of the fundamental issues and problems that impact the functionality of the HRD system in the private sector. A quantitative methodology will be employed because it is considered easier to analyse and less time consuming. The survey method will be used and respondents will be contacted by telephone and questionnaires mailed. Zikmund (1997) indicates that survey is the most common method of generating primary data. Category scales will be employed for some of the questions. According to Zikmund (1997) expanding the response categories provides the respondents with more flexibility in the rating tasks and more information is provided if the categories are ordered according to the descriptive or evaluative dimension. Zikmund (1997) states that: the category scale is flexible and provides easy responses. However, items may be ambiguous and where only a few categories exists only gross distinctions can be made. These points will be taken into consideration in preparing the questionnaire. Data Collection Questionnaires will be sent to Human Resource Managers along with all departmental or divisional managers in a wide cross-section of organisations. This will take approximately ten weeks. A pre-test of the questionnaire will be carried out to ensure that the questions are clear before engaging on the major task. Disproportionate stratified random sampling will be applied in the selection of companies where the sample size for each stratum is based on analytical considerations. According to Zikmund (1997) the logic for this relates to the general argument for sample size wherein as variability increases, sample size must be increased to provide accurate estimates. Therefore the stratum that exhibits the most variability will be sampled more heavily in order to increase sampling efficiency and thus a smaller random sampling error. Analysis of Data The data will be analysed using tables, graphs and charts and other statistical methods considered appropriate. This process will take eight weeks. Limitations A limited amount of funds are available and so to cut down on costs the questionnaire will be sent via the internet. Conclusion Conclusions will be drawn based on the findings obtained from the analysis of data. Limitations will be stated and recommendations will be made where appropriate. Working on a limited budget (funds) this research is expected to take approximately 26 weeks. The final report will take the following format: Title Table of Contents Abstract Introduction (background and research aims) Literature Review Methodology Results Limitations Conclusions and Recommendations References Appendices (data collection forms, tables, charts) References Al-Hamadi, A.B., Budhwar, S. and Shipton, H. (2007) Management of Human Resources in Oman. International Journal of Human Resource Management: 18(1). p. 100-113 Al-Lamki, S.M. (1998). Barriers to Omanization in the Private Sector: The perceptions of Omani graduates. International Journal of Human Resource Management: 9(2). p. 176-188. Al-Lamki, S.M. (2005) The Role of the Private Sector in Omanization: The Case of the Banking Industry in the Sultanate of Oman. International Journal of Management: 22(2). p. 176-188 Aycan, Z., Al-Hamadi, A.B., Davis, A. and Budhwar, P. (2007) Cultural Orientations and Preferences for HRM Policies and Practices: The Case of Oman. International Journal of Human Resource Management: 18(1). p. 11-32 Boyatzis, R.E. (1982) The competent manager: a model for effective performance. London: Wiley Chartered Institute of Personnel Development (2010). Competency and Competency Framework. Retrieved: http://www.cipd.co.uk/subjects/perfmangmt/competnces/comptfrmwk.htm. Last accessed 28 Jan 2011. Clardy, A. (2008) The Strategic Role of Human Resource Development in Managing Core Competencies. Human Resource Development International: 11(2). p. 183-197. Crisman, D.W. (2008) Using Competencies to Drive Talent Management. Workspan: 51(9). p. 70-75. Dess, G., Lumpkin, G.T., Eisner, A.B. (2007) Strategic Management: Text and Cases. New York: McGraw-Hill Irvin Ghailani, J.S and Khan, S.A. (2004) Quality of Secondary Education and Labour Market Requirement. Journal of Services Research: 4(1). p. 161-172 Horton, S. (2002) Competencies in People Resourcing. In Pilbeam, S., Corbridge, M. People resourcing: HRM in Practice. Prentice Hall Miller, L., Rankin, M and Neathy, F. (2001) Competency Frameworks in UK Organisations: Key Issues in Employer’ Use of Competencies. London: Chartered Institute of Personnel Development (CIPD) Ministry of National Economy. (n.d.) Vision 2020 – Chapter 3. Retrieved http://www.moneoman.gov.om/book/vision/enhlish.pdf Last accessed 28 Feb 2011 Noe, R.A., Hollenbeck, J.R., Gerhart, B and Wright, P. M (1997) Readings in Human Resource Management. 2nd ed. USA: The McGraw-Hill Companies, Inc Ogrean, C., Herciu, M and Belascu, L. (2009) Competency-Based Management and Global Competencies – Challenges for Firm Strategic Management. International Review of Business Research Papers: 5(4). p. 114-122 Potter, C.C. (1989) Effective Localisation of the Workforce: Transferring Technology in Developing Countries: Training of European Industrial Training: 13(6). p. 25-30 Rees, C.J., Mamman, A. and Bin Braik, A. (2007) Emiratisation as a Strategic HRM Change Initiative: Case Study Evidence from UAE Petroleum Company. International Journal of Human Resource Management: 18(1). p. 33-53 Spicer, C. (2009) Building a Competency Model. HR Magazine April 2009: p. 34-37 UNESCO Country Report (n.d.). Oman Country Report. Retrieved http://www.unesco.org/education/wef/countryreports/oman/rapport_3.html. Last accessed 23 Jan 2011 Zikmund, W.G. (1997) Business Research Methods. 5th ed. USA: The Dryden Press, Harcourt Brace College Publishers Read More