HR Management in the Saudi Arabian Context - Assignment Example

Human resource management in the Saudi Arabian context al affiliation Media portfolio Introduction The Saudi Arabian job market has experienced transformation in the recent past and this has instigated a number of practices that have gone a long way in improving the labor relations in this country. Labor relation is associated with the practice and process of handling and supervising unionized employment situations. In relation to the Saudi Arabian labor market, this paper provides a comprehensive discussion on three issues that are critical to the Saudi Arabian labor relations. These issues are saudization, roles and responsibilities of supervisors in the workplace and health, safety and security in the Saudi Arabian human resource management. The three critical issues in this market present the major pillars of human resource in the country. It is important to note that the Saudi Arabian labor market was not celebrated much in the past due to some unwanted practices including alleged mistreatment of employees. Therefore, during this time that the market in undergoing transformation, revitalization and healing, employee safety and the roles of supervisors in the workplace come in handy. That notwithstanding, saudization is also critical to the healing of this market because of its relation to the replacement of foreign employees in the Saudi Arabian labor market with Saudi nationals especially in the private sector. Discussion The Saudi Arabian labor market has not been able to achieve its economic competitiveness in the recent past. This situation has been associated with a number of factors including the most recent being saudization. The employees in this market have also experienced unfavorable working conditions that have deterred them from achieving their maximum potentials at their respective workplaces (Avery, 2005). In addition to that, these employees have not been well motivated to offer their best towards achieving organizational goals and it is for this reason that reports have indicated that Saudi Arabia has been declining in its global economic competitiveness over the last few years. However, there have been efforts to thwart the dangers accompanied by these economic conditions in the labor market. For example, Saudi Arabia has formulated and implemented a number of health, safety and security protocols for its employees in a bid to enhance their motivation and satisfaction and subsequently harness the most out of them. The roles of supervisors, who were previously in the limelight for perpetrating employee frustrations, have been completely overhauled. I. Saudization Saudization can be described as the process through which foreign workers at the workplace are replaced by Saudi nationals especially in the private sector. This scheme was introduced between 1985 and 1989 during the Fourth Development Plan. It was during this period that Saudi nationals got employed with their government. Nonetheless, there were only few vacancies in government institutions which could not be able to serve all the unemployed Saudi nationalsm (Agho, Mueller, & Price, 1993). On the other hand, the private sector was thriving quite well and was employing many foreigners. Saudization was therefore aimed at replacing the foreign workers in the private sector with the Saudi nationals who were unemployed due to lack of employment opportunities in the public sector. The goal of this scheme by 2003 was that at least thirty percent of all the employees in private corporations with twenty of more employees must be Saudi natives. In order to meet this prerequisite, there were a number of stun measures taken against companies and immigration offices. Measures taken in order to ensure the success of saudization The first measure to ensure the success of saudization was the tightening of immigration. It became quite difficult for undocumented foreigners to enter the country as a way of minimizing the number of immigrants who came to the country in search of greener pastures as far as employment was concerned (Avery, 2005). In addition to that, undocumented foreigners were also deported back to their motherlands as a measure of reducing the number of immigrants in the country. Documentation of foreign nationals was also done after an unequivocal scrutiny that disqualified most applicants. All these were meant to reduce the number of foreign nationals who came to Saudi Arabia with the aim of finding employment opportunities (Dinsmore, & Jeannette, 2011). Aside from the immigration policies, private companies operating in Saudi Arabia were also subjected to a number of rules that they had to abide by in order to continue their operations in the country. These rules were legalized by the Nitaqat initiative of 2011 that was brought forth by the Saudi Ministry of Labor. The initiative divided the private firms that operated in the country in four categories. These categories were: Premium Green Yellow Red It is important to note that the companies that were categorized under the premium and green categories had relatively high rates of saudization whereas the yellow and red categories comprised of companies with relatively low saudization rates. All the four categories were associated with certain powers, privileges and penalties. Powers, privileges and penalties of companies in the four categories a) Premium category This category of companies was also referred to the VIP because it comprised of companies with above 40% of Saudi natives as their employees. As a result of these statistics, the companies in this category enjoyed privileges and powers and not penalties. For example, they were able to employ foreign workers with the use of much easier visa processing and get a twelve-month grace period in the event that their registrations of licenses expired (Avery, 2005). They were also allowed to employ foreign nationals from the red and yellow categories and transfer their visas without the consent of their employers. The companies in this category were also in a position of transferring the visas of foreign national employees from other companies inconsiderate of whether the employees had been with their first employers for more than two years or not. b) Green category The companies that fell in this category were also referred to as excellent compliance companies. They were the companies that achieved percentages of between 12 and 39 of Saudi natives as their employees. As a result of these statistics, these companies enjoyed certain privileges including the chance of applying for new visas one in every two months (Agho, Mueller, & Price, 1993). These companies were also allowed to transfer the visas of foreign workers from other companies without the consent of their former employers and could not be penalized for six months after their licenses or registrations expired. Lastly, the companies in this category were also given the privilege of renewing the permits of their foreign workers whose visas were valid for more than three months. c) Yellow category The companies in this category were also referred to as the poor-compliance companies and were therefore given penalties as a result. For example, such companies were allowed to get new visas for their employees but could only one visa in the event that two of their employees departed. They were also deterred from transferring visa and could not stop either yellow of premium companies from transferring the visas of their foreign employees. d) Red category This category comprised of companied that were labeled as non-compliant companies. These companies had less than eleven percent of Saudi natives as their employees. As a result of these statistics, these companies were denied certain privileges including getting and transferring new visas. They were also barred from renewing the permits of their foreign employees and could neither change the profession of employees nor open new facilities or branches within the country. Saudization in not assisting the economic competitiveness of Saudi Arabia After an unequivocal evaluation of saudization and its relevance to the economy of Saudi Arabia, scholars have noted that it has come with only limited assistance to the economy. This is an implication that there is still some level of deficiency in the country’s labor market despite efforts of ensuring better rates of employment an employment opportunities amongst the Saudi natives. The most recent World Economic Forum report stands at position 70 out of a total of 148 nations in relation to labor market efficiency and competitiveness. When it comes to competitiveness, it is worth noting that Saudi has dropped two positions in terms of the global competitiveness ranking in the 2014 report as compared to the 2013 report. The major reason behind this drop was the inefficiency of the labor market that is largely attributed to saudization. For this reason, there have been recommendations for the banishment of this program (Avery, 2005). II. Workplace health, safety and security in Saudi Arabia Since the defaming of Saudi Arabia as a non-compliant market in terms of labor relations, there have been some reforms especially when it comes to workplace health, safety and security. Companies, both private and public, have since adopted compliance policies alongside best practices aimed at making the Saudi labor market look more lucrative in order to attract more skilled workers. It is noteworthy that suggested practices have also come in handy in making the labor market of Saudi Arabia more attractive to employees. It is important to note that workplace health and safety policies have been incorporated in the laws of Saudi Arabia in conjunction with related promulgations and dates. There are a number of recently passed laws that have critical impact on the safety and health standards. These laws are aimed at reinventing the Saudi labor relations and doing away with the negative notions that people had on it before (Agho, Mueller, & Price, 1993). For example, the Minister of Labor Decree Number 159(7/3/1430 H), Establishing a Chart of Occupational Diseases in The Kingdom of Saudi Arabia of 2009 was established to take care of the health and safety interests of workers in terms of occupational diseases. According to this law, employers were to compensate employees for contracting occupational diseases. Occupational diseases were described in this law as the health complications that arise from activities related to the occupation. Therefore, in the event that an employee sustained injuries or contracted a disease related to the workplace, the law stipulated clear compensation policies. Aside from the laws, there were certain prerequisites that employers had to meet in order to maintain their licenses of operations. For example all the employees of both private and public institutions have to be trained on the basic safety measures and handling of first-aid kits at the workplace. As a regulatory measure, all employees are required to hire health officials who are charged with the responsibility of ensuring that all the stipulated health and safety procedures and principles are followed by all the employees at all times. Also included as one of the prerequisites is the facts that all workers and employers ought to be familiar with all the provisions of the Saudi Labor Laws. Additionally, all employers are required to inform a competent labor office of certain vital information in the form of writing. Suggested workplace safety and health provisions The Saudi Ministry of Health can consider implementing certain occupational health and safety suggestions that can be imperative in redefining the labor relations of the nation. These include avoiding and managing all the workplace risks related to health and safety. It should also consider making it very easy for employees to return to work after long illnesses or injuries provided the victims are in proper health to execute either their former duties or other duties of the company as may be assigned. III. The duties of a Saudi supervisor The duties of a Saudi supervisor in whatever company is significant for this research because supervisors have, for a long time, been related to the ills that employees go through at the workplace. They have been considered as the perpetrators of strict and unfavorable conditions at the workplace. This is because they act as the direct link between employers and their employees. Certainly, employers form oppressive rules but supervisors implement them. It is for this reason that the duties of supervisors are imperative for the purposes of this study. It is important to note that there have been demands for the reshuffling of the duties of supervisors in Saudi Arabia in order to conform to the newly documented labor laws. Here are some of the duties of the contemporary Saudi supervisor (Agho, Mueller, & Price, 1993). He or she is supposed to corporate with the occupational health committee. This is meant to ensure that all the health policies are adhered to and that all the employees take heed to the rules. They are meant to make sure that all the hazards are properly identified and effective steps taken to ensure that they are properly alleviated. Supervisors are meant to inspect all the workplaces with the aim of correcting all the unsafe conditions. They are supposed to ensure all the equipment and machinery are properly used and maintained. They are supposed to report and evaluate incidents in a prompt manner in order to make all employees aware of the dangers involved. They are supposed to make sure that all employees wear protective equipments when undertaking dangerous duties and provide the workers with the necessary protective equipments. They are meant to implement and understand emergency and crisis control procedures. Conclusion Owing to the fact that the labor relations in Saudi Arabia did not receive much credit in the past, there were concerns to revitalize the market. During this time that the market was undergoing transformation, revitalization and healing, employees’ health and safety and the roles of supervisors in the workplace came in handy. In addition to that, saudization was also critical to the healing of this market because of its relation to the replacement of foreign employees in the Saudi Arabian labor market with Saudi nationals especially in the private sector. These three critical issues, as discussed in the paper, were imperative in defining the Saudi labor market as it was in late 29th century and the transformation in has witnessed in the last decade. References Agho, A.O., Mueller, C.W. & Price, J.L. (1993). “Determinants of employee job satisfaction: An empirical test of a causal model”. Human Relations, 46(8), 1007 – 1027. Avery, G. C. (2005). Leadership for Sustainable Futures: Achieving Success in a Competitive World. Cheltenham: Edward Elgar Pub. Dinsmore, P. C, & Jeannette, C. (2011). The Ama Handbook of Project Management. New York: American Management Association. Read More