Burj Al Arab Hotel & the Labour Laws of United Arab Emirates - Case Study Example

Order#: 480731 Topic: Human Resources Assessment Questions. Part A (A. C 1.1, 1.2, 1.3) (500 words) The employment law in the United Arab Emirates has impacted on the employment process in a number of ways. But in a general term, internal and external factors affect the employment relationship in any organization the most. According to Armstrong (p 39), the commonest internal factors include the organizational resources that are available for accomplishing organizational goals. It is observed that acquiring a reliable human resource base with the right technological knowhow is a fundamental consideration that needs careful planning (Armstrong, p 65). Similarly, the organization’s recruitment policy is critical because it specifies the underlying objectives and provides a framework for the recruitment program like the minimum qualifications needed. The external factors are resident in the political- social- legal environment where the UAE government has set regulations requiring organizations to determine nationality and appearance of job applicants, thereby enhancing discriminatory employment (Armstrong, p 76). Accordingly, many foreigners dotting high qualifications miss job opportunities based on their looks as noted by Armstrong (p 65). Secondly, the availability of manpower both within and outside the organization plays an important role in influencing the employment process. Armstrong (p 90) advices that retraining of existing staff is necessary outsourcing becomes unattainable. Research has shown that there are common three types of employment statuses identified in the UAE and elsewhere in the world. An individual is either a regular full-time employee scheduled to work 8 hours a day for 5 days a week on a regular basis and should remain in employment for more than a year (Armstrong, p 76). The employee is eligible for all benefits and paid time-off. Secondly, a regular part-time employee is scheduled to work for up to thirty hours per week on a regular basis for a minimum period of one year so as to merit some paid time-off for sick, vacation and holidays (p 72). Finally, a subcontractor agrees to do a certain type of work for a limited duration with an established deadline (Armstrong). The employee attends work on a regularly scheduled basis and is entitled to mandatory benefits. In regards to this, employers must determine the employment status of all their employees for certain reasons. Firstly, the UAE government may want to know ones employment status to determine how much money to be paid and the individual’s rights at work. In the views of Armstrong (p 311), UAE has both skilled and unskilled employees who take home different earnings. Moreover, Emirates nationals are given preferential treatment on the job aspect compared to expatriates. Additionally, employment status is critical in establishing whether each and every employee is remitting the right amount of tax and receiving the right rebates for the particular category of employees. If an anomaly is noticed to have been happening by mistake or design, then corrective measures is instituted, however painful that may be. It finally gives the self-employed individuals their employment rights particularly in issues related to tax remittance (p 45). Part A (A. C 1.1, 1.2, 2.1, 2.2) (650 words) In Burj Al Arab hotel, the approach of collecting, storing and using HR data is typical to what is adopted elsewhere. Studies have indicated that HR data is collected for various reasons in majority of organizations. In my organization, HR data is collected first and foremost to monitor absenteeism and regular attendance of employees. Study findings by Armstrong (p 84) indicate that chronic absenteeism in employees is catastrophic to organizations and should be minimised at all costs. In business terms, absent employees from work are unable to carry out their mandate as expected and their responsibilities are taken up by other employees to avert irreversible consequences to the organization. Secondly, HR data can be used at the highest level of management to guide line managers on how to motivate dissatisfied employees. Since chronic absenteeism is a good indicator of dissatisfied employees, data showing employee attendance to work can be fundamental in directing the management on available motivators to increase performance in employees (p 88). Apart from the foregoing reasons, research has similarly listed a number of various types of HR data that can be useful in measuring human capital. Demographic data for instance collects the bio data of all the employees in an organization and basically shows the composition of the workforce based on age, gender and ethnicity (p 102). A forward looking organization should be considerate in this matter and strive to strike a balance between these aspects of demographic data. This simply implies that the employees should not be skewed towards one aspect more than the other, may it be age, gender or ethnicity. Recruitment and retention data is another fundamental HR data kept by proactive organizations. this type of data is significant in determining the number of applications for available vacancies, the rate of attrition, length of service of each employee, numbers of vacancies that need to be filled and if on permanent or temporary basis as illustrated by Armstrong (p 119). After HR data has been collected, various storage methods are suggested for each individual type with their associated benefits. Under the Executive Information System (EIS) which refers to the unified collections of computer hardware and software that track the essential data of a business’ daily performance and present it to managers as an aid to their planning and decision-making (p 135). This is the most common used term in modern day business world where computers have become commonplace in small and large companies alike. With an EIS in place, reports show that Burj Al Arab hotel can track inventory, sales, and receivables, compare today's data with historical patterns. In addition, an EIS will aid in spotting significant variations from “normal” trends almost as soon as it develops, giving the company the maximum amount of time to make decisions and implement required changes to put their business back on the right track. This would enable EIS to be a useful tool in an organization’s strategic planning, as well as day-to-day management (p 302). In connection the HR data available to Hotel Burj Al Arab, there are several essential items of legislation that should be accorded to the recording, storage and accessibility of the said HR data. Research has shown categorically that organizations are required by law to comply with the Data Protection Act which is concerned with organisational and business use of personal information or data about living people where individuals can be identified through that data (p 120). For this reason, an organization must possess explicit consent from all individuals concerned to hold sensitive data for them. Armstrong (p 129) contends that sensitive data may include information concerning an individual’s ethnicity and nationality; religious and political affiliations; physical and mental health statuses as well as their sexual life and criminal record. Secondly, all the HR data kept in storage for the employee should be secure and yet accessible to all authorized individuals as demand may arise. Part A (A. C 1.1, 1.2, 1.3, 2.1, 2.2) (1000 words) The underlying business objectives of Burj Al Arab hotel are to be a leader in marketing of hospitality services and associated goods in international standards as well remain a high class employer capable of attracting, recruiting and retaining the best of employees in the industry across the globe. To achieve these identified business objectives, Burj Al Arab hotel has tailored its performance management system to be in line with these said objectives. In the views of Armstrong (p 313), performance appraisal of employees is conducted for a number of significant reasons that include but not limited to the ones enumerated hereunder. From the outset, most organizations use performance appraisal in making payroll and compensation decisions based on the discovered performance levels of the employees. Armstrong (p 78) further underscores the importance of performance management data in identifying training and development needs in the organization. This is crucial in determining the duration for which the proposed training is going to be offered, the cost of the training, types of training given, length of time to reach competence levels. In addition to this, performance appraisal helps in identifying the gaps in desired and actual performance and its cause as well as in deciding future goals and course of action as observed by Armstrong (p 95). In terms of treating and handling employees, performance management data becomes fundamental in executing promotions, demotions and transfers of employees within the organization. There are several components of performance management processes that need to be explained as they are conducted in Burj Al Arab hotel. To begin with, the performance management process is reported to comprise of three components namely: preparation, conduction and following-up (p 100). During the preparation stage, amble time should be set aside to enable proper preparations for both the appraising team and the employees. The employee to be appraised should review the performance appraisal forms to acquaint with the earlier agreed upon performance measures (p 149). This in itself should aim to establish whether the employee being appraised made any tangible improvements base on the recommendations of their previous appraisal summary. The second component of the process entails conduction of the appraisal process by first of all having a review of performance by looking back at how well previously set performance measures and standards were achieved in considerations of the factors that affected their achievement (p 135). This first activity gives way to the second one which involves planning performance by similarly having a “forward” look at new performance measures and standards to be achieved during the next performance period as propounded by Armstrong (p 115). Finally, the following-up component puts into consideration the next performance period that should be agreed and viewed as a negotiated contract. At this point, employees are committing themselves to achieve certain objectives in return for specified support from their line managers (p 8). Performance management is a component of motivation demonstrating a deep relationship between the two. This argument is supported by numerous theories proffered by renowned psychologists of our times. For instance, Abraham Maslow’s Hierarchy of Needs model (theory z) and Herzberg’s dual model motivational-hygienic factors are good indicators of how motivation is related to performance in employees. Maslow’s assertion of taking care of the lower basic needs subsequent to attaining higher levels of needs and Herzberg’s dual model motivational-hygienic factors all demonstrate the factors that motivate/satisfy frustrated employees as opposed to the dissatisfying hygienic factors (negative motivational forces within the firm) (quoted in Armstrong). The assertion by Maslow emphasises the importance of satisfying the most basic needs of employees before even thinking of the higher monetary needs. Similarly, Herzberg stresses the importance of eliminating the dissatisfactions experienced by employees before helping them find satisfaction in their work (p 196). These factors were named “hygiene factors” and “job enrichment” respectively as cited in (Armstrong). In retrospect, it is found that these foregoing theories emphasised the importance of taking a more humanistic approach to organisational development rather than a scientific or mechanical approach that dehumanised people to the level of machines within a firm as currently exemplified by the hospitality industry. Organizations have erroneously used the concept of reward within a performance management process by probably emphasizing on the monetary aspect rather than the non-financial aspect. Just as illustrated in earlier paragraphs of this report, it is critical organizations to provide all possible psychological support their employees through praising, recognition and encouragement to, if not anything else retain them and reduce attrition levels (p 91). Research findings have on one hand cited employee turnover as the greatest affliction of organizations all over the world. A good number of organizations worth their names and statuses have been involved in concerted efforts to try and arrest this problem. Apart from addressing the employee turnover problem, employees can be motivated by rewarding to increase their performance levels. One very effective method of rewarding employees for this purpose is through giving them physical support in the areas of work environment including tools, equipment, finances, supportive staff (p 174). Armstrong (p 181) further demonstrates that employees are motivated by seeing their line managers’ presence where the action is keenly observing their performance, enquiring about progress, and offering assistance where applicable. In my view, this gesture goes a long way in motivating employees into energized performance. This can further be invigorated by line managers arranging the necessary training and coaching sessions the staff as identified (cited in Armstrong). I have already indicated in my earlier portions of text that a total reward system comprises of both financial and non-financial nature. Study findings have variously indicated that non-financial rewards are more effective in motivating employees than the financial ones. This claim is supported by the fact that the former encompasses a wide range of aspects including the following. Gain-sharing programs involve the sharing of bonuses among employees and the organization to foster a sense of belonging and hence improve organizational performance (p 105). Similarly, teambuilding is critical through exercising employee empowerment by fully involving them in matters of the organization and giving them autonomy to make key decisions about their work. This aspect of total reward system increases employee loyalty and fosters ownership as asserted by Armstrong (p 162). Finally, reward system can incorporate housing benefits in employees’ commensurate package to ease the strain of looking for housing facilities which prove to be challenging in these dynamic times. Part B (A. C 2.1, 2.2, 2.3, 2.4, 2.5) (500 words) As already indicated elsewhere in this discourse, there is no such thing as minimum wage under the United Arab Emirates labour law and as such, unskilled workers put in working hours ranging between eight and twelve hours a day with fluctuating pay rates which are definitely less than what is given to the skilled labour force. This category works for a fixed salary under fixed timings of work as shown by study findings. But in general terms, work timings in Burj Al Arab hotel are quite tight with many people living “living work”. Implication of this is that employees literally have no free time to themselves except when taking lunch and sleeping (p 92). Despite this tight schedule, there is no official allocated provision for overtime because employees are required to work through shifts. Religion is a revered issue in the UAE and therefore workers get their official days off during prayer times but otherwise there are no other recognised mandatory days off by law. There are very slim areas of employer support that could impact on terms and conditions of employment for a family member because the foregoing section has shown that the work schedule UAE is very tight. For women employees, law had not been recognising them as regular workers in the past and as such were legally mandated by Islamic law to stay back at home. With the advent in their engagement in gainful employment in recent times, plans are underway to come up with laws that can offer flexible working hours for expectant and nursing mothers (p 98). In the same vein, study findings have shown that regular employees in my hotel are entitled contributory scheme for medical insurance as well as some bit of nursing service/housing care in government institutions. There are no such provisions for part time employees because they get every bit of their pay at the end of the week. Organisations have been advised on more than once to treat their employees fairly in relation to pay in order to earn a good name and fame for themselves as well as make the employees feel appreciated and valued. Research has similarly shown that everyone has personal affairs, families, opinion and struggles, consequently requiring that all employees be treated equally regardless of position within the organization (p 111). These provisions of fair treatment for all employees should be entrenched in the company’s policy statement and planned objectives that have to be S.M.A.R.T.E.R, i.e. Specific, Measurable, Attainable, Realistic, Timely, Ethical, and Relevant (p 114). Pursuant to these S.M.A.R.T.E.R objectives and policies, organisations the world over have been urged insistently to exercise fairness and transparency in their dealings, equal employment opportunities for minority and disadvantage groups and protective policies for women and children against sexual harassment. These are virtues of successful organizations as stipulated by Armstrong (p 157). Part B (A. C. 4.1, 3.1, and 3.2) (500 words) A briefing guide for Line Managers who are new to Burj Al Arab Company- the guide will first and foremost touch on the frequency, purpose and process of performance reviews/appraisals. According to research work done by numerous scholars and experts alike, performance appraisal has been shown to be practiced in over three quarters of the organisations found in the world as regularly as three times a year. According to works by Armstrong (p 163), it has been established that self-appraisal and potential appraisal are a major component of the performance appraisal processes as addressed in another section of this document. A list of the key functions accomplished by the performance appraisal activity has been proposed by (Weightman, 2004) as cited in (Armstrong). Accordingly, performance appraisal is largely used to: review the performance of the employees over a given period of time judge the gap between the actual and the desired performance help the management in exercising organizational control diagnose the training and development needs of the future Additionally, an overwhelming majority of respondents indicated that performance appraisal is crucial in providing information that can assist in HR decision making in such areas like employee promotions, transfers and probably demotions (p 179). It is further argued that the same “provide clarity of the expectations and responsibilities of the functions to be performed by the employees” (p 167). Moreover, performance appraisal helps in judging the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development (p 251). Finally, Armstrong (p 272) has cited that performance appraisal is fundamental in “reducing grievances of employees and strengthens the relationship and communication between superior – subordinates and management – employees”. Certain factors are a must when an organization is managing performance, both good and bad. From study findings, it is important to put into consideration the issue of performance first for all employees and treat them in advising and mentoring them. Various items of data are available for use by both Line Managers and the member of staff being interviewed during the appraisal process. Staff handbooks have been identified to be handy in providing guidance from human resources for the fair and consistent treatment of staff (p 361). Policies and procedures on the other hand are most useful when applied as guidelines rather than as inflexible rules and laws and can be used in writing policy manual or employee handbook for organizations. Part C (A. C 3.1, 3.2, 3.3) (750 Words) Requirements for handling a disciplinary case for the MD in an organization will presuppose that there is enough familiarization with the rules of the organization for both the employees and the management. More so to the employees, express knowledge in the area of the desired code of conduct and or standards of behaviour in the organization should be at the finger tips. With this knowledge in cue, the MD should make concerted efforts to publish the said code of discipline in the employee handbook as required by law (p 401). The disciplinary process follows that timely enquiry is launched immediately to conduct investigations into the allegations of breaking the code of conduct in the organization this is the mandate of the MD and should be congruent to avoid delaying the enquiry as this may cause the aggressor become more forgetful feel that the punishment meted out is not deserved (p 410). At the time of passing judgement, the MD is required to very impartial giving fair and just punishment to all for similar offences or misconduct (p 415). There should be no favouritism whatsoever, enforcing uniform discipline at all times. However, discipline action should be in a positive approach whereby the aim is to prevent and correct and not so much as to be punitive (p 436). The MD should also take up advisory roles and concentrate on preventing misconduct rather than imposing penalties. There are inherent differences that determine whether dismissal is fair or unfair. First of all, fair dismissal is illustrated when an employee has demonstrated unbecoming conduct characterised by chronic unbearable issues like “excessive drinking especially during working hours, alcohol abuse, undisciplined in work, dishonest, theft and malicious conduct” as listed in (Armstrong). Secondly, Armstrong (p 146) has illustrated fair dismissal as when an employee is found unqualified in doing the duties assigned to him or her due to lack of constant refresher courses or even by failing to keep abreast with the dynamism of the work itself. If therefore the work an employee becomes very unsatisfactory and is full of mistakes, the organization may be forced to resort in dismissing the employee. Armstrong (p 32) has further listed another reason for fair dismissal as when someone is laid off under medical grounds. Thus if an employee is take ill with a terminal disease or is ripe for retirement, then such an employee can be dismissed fairly. If the reverse of the foregoing reasons happens, then dismissal becomes unfair. Based on the circumstances outlined in the scenario, I rather consider the action taken by my organization as a fair dismissal. My argument is based on the fact that the employee is involved in a case of suspected theft. As indicated in the recently handled section, an employee’s conduct touching on issues of his or her character that has a poor image to the public may lead to summary dismissal. Theft is one of such confirmed character, may it be assumed or real. Reading from the legislation’s list of five specific types of reason which can justify dismissal for organizations, it is clear that the indicated case merited the action carried out by my company. For once, conduct is listed to be by far the most common reason for dismissal and the one which leads to the largest number of complaints of unfair dismissal (p 40). Thus on this basis, the conduct of the employee of suspected theft could not receive any other form of treatment. Exit interviews have become a common presence in most organizations for the obvious reasons enumerated below. Those organizations which want to save face and look good in the corporate world conduct exit interviews to appease the disgruntled employees, who might otherwise leave with vengeful intentions for the organization (p 51). Additionally, employees who remain behind regard exit interviews as a sign of positive culture demonstrated by the organization which is considered caring and compassionate (Armstrong, p 58), a sign that the organization has gained enough maturity to expose itself to criticism. Further arguments by Armstrong (p 67) illustrate that exit interviews are critical in accelerating growth of managerial leadership skills in those managers participating in the exercise. This is attributed to the fact that “hearing and handling feedback is a powerful development process” in business world. Finally, exit interviews are known to provide direct indications to the organization on the best methods to use in improving staff retention as claimed by Armstrong (p 76). Within the potential redundancy situation, Armstrong (p 174) has recommended certain key stages to be followed when managing redundancies. From the outset, redundancies must be avoided by all means through proper organisational planning including but not limited to freeze on recruitment, retraining or voluntary exit (p 184). Secondly, Burj Al Arab hotel can invite willing redundancy volunteers in the event of eminent layoffs. This can be motivated by offering an attractive entitlement as observed by Armstrong. Armstrong further underscores the importance of consulting employee representatives one month before proposed redundancies take effect. Failure to comply, the redundant employees are entitled to three months’ pay in lieu of notice (Armstrong, p 188). In addition to this, selection of redundant employees must be most amicable to avoid discontent amongst them. It is also in record that suitable alternative employment must be sought for the redundant employees, but of course in line with laid down procedures (p 208). Moreover, Armstrong notes that dismissed employees who had served for more than two years are legally entitled to a pre-determined minimum redundancy payment. The exiting workers should finally be accorded counselling and support services to help them adjust appropriately in their thereafter lives. Works cited Armstrong, M. A Handbook of Human Resource Management Practice (10th Edition). London: Kogan Page, 2006. Read More