International & UAE-based HRM Practices - Assignment Example

Comparison between HRM Practices UAE & International Practices Literature Review 1) Requirement Gathering Process in UAE & Internationally General HR practices in UAE and at international level are rather similar. Considering the current dynamics of UAE market, it is important to note that it is highly robust after the recent market crunch. There are various misconceptions about UAE market which includes the notion that UAE economic portfolio is all about oil and every resident there is Arab. However, other than oil sector, banking, education and other parts of the economic umbrella are equally thriving. With the entry of expats into these sectors, the landscape is taking a sophisticated turn instead of its previous autocratic version. Where employees’ needs and training requirements are assessed while designing a job, employees’ views along with manager’s input is included in a job design. However, it is important to note that in traditional industries like oil and infrastructure building which involve considerable amount of physical work, employees’ input in overall job designing is given less preference as compared to practices prevailing internationally. Where employees’ requirements are not considered while designing a job profile and the necessary training required by the role, ultimate result is high turnover which is very common at junior-worker level as compared to international trends (Gonzalez et al., 2008). 2) Support in Personal Life Support in personal life defines policies of the organizations regarding care of employees’ self and his/ her dependents by the organization, means of offering work-life balance, flexibility in working hours, children daycare and education, and leave management along with utility provisions and other facilities provided by organizations for their employee welfare. For UAE nationals, the most common form of personal support includes healthcare provisions, unpaid sick leaves, paid 30 days annual leaves and maternity leaves along with end-of –service gratuity (Latham & Watkins, 2009). Most of the welfare activities take place in the form of donations, charities and philanthropic activities instead of defined policy structure meant to provide benefit to the employees (Ashencaen, 2008). It is important to note that prevailing UAE practices are rather rigid and do not contribute significantly in the name of corporate social responsibility. However, where the inflow of expats has increased and many foreigners are recruited in the senior managerial roles, organizations are slowly showing compliance to sophisticated personal care practices adhering to international HRM practices (Mansour, 2008). In the given context, the human resource management practices in UAE are being considered mainly with multinational models since domestic organizations in other countries may operate under the influence of their cultural forces which can be different than the culture prevailing in UAE. 3) Training & Development According to research conducted by Wilkins (2001), UAE companies are well-versed with the international practices in terms of training and development. Despite, the decreasing trend of performance in the oil sector, domestic companies are doing fairly well regionally. They are well-aware of the international practices of conducting training needs analysis and have dedicated departments and teams for it (Godwin, 2006). Main forces acting in this domain are culture, government policies, prevailing leadership of the organizations and business strategies governed by possible cost cutting. Most of the organizations conduct TNAs and provide on-job training coupled with formal trainings through seminars, workshops and relevant literature etc. With government dedication to emiratisation, more attention is being paid towards training local nationals and getting them recruited in the UAE based companies in order to reduce internal unemployment (Weston, 1998; Rees et al., 2007). Although, relevant policies and procedures are not highly sophisticated as compared to international practices due to national culture, lack of overall education, accumulation of wealth, presence of family based business instead of formal organizations and absence of literature on training and development but with overall growth, the outlook in this area looks promising (Council of Minsters, 2004). Most of the managers from public and private organizations have accreditations of international HR bodies such as CIPD and there are also various forums responsible for conducting trainings, seminars and workshops etc. 4) Code of Conduct Almost every organization in UAE has a certain set of principles in the name of code of ethics which are intended to govern the behavior and actions of their employees and officials. However, the nature of theses codes of conduct is more influence by cultural values, norms, government policies and ideology of organizational leaders (Latham & Watkins, 2011). It is important to note that Islam as a religion has a significant impact on the overall outlook of corporate culture in UAE (Nelson, 2004). The doctrines provided by this religion govern the norms and values and these values are well-reflected in organizational policies. One of the most important cornerstones of the corporate policies is compliance to government policies which themselves are influenced by the teachings of Islam. Therefore, treatment towards employees, colleagues and seniors along with general behavior towards work, health, safety and other issues demand the compliances of ethical principles having religious nature. Whereas international HR practices related to code of conduct are mainly defined by general human rights instead of the influence of a single religion. 5) Compensation Practices in UAE Overall working population of UAE comprises of 80 percent of expatriates. Where UAE once was a booming market, tax free income also acted as a major incentive for many to come over and work. Most of the work force from Asian countries such Philippines, India etc. belong to semi-skilled labor, therefore overall compensation is comparatively low in comparison with international standards (Younies et al., 2008). Like international practice, the compensation package includes a basic salary, housing allowance, transport allowance, utilities, bonuses, insurance, vacation allowances, and other target-based allowances. Where the components remain more or less common, the amount does vary greatly. Due to increased cost of living, the utilities amount and housing expenses fail to cover the actual expenses incurred in this respect (Manibo, 2008). Where the given package might by sufficient for nationals due to their own permanent accommodation, the value addition made by these allowances tends to remain minimal for the expats. According to international practices, the usual package offered to nationals and expats is governed by the skills brought in by individual and the cost organization perceive to be borne in relation to a particular job. But in UAE, the overall value of employees skill remains low in comparison with international standards. It is important to note that not many countries provide insurance coverage if an employee gets injured or dies while staying on-job and in the pursuit of performing official tasks unlike UAE labor law. 6) Company Values According to international practices, leadership and prevailing market trends act as a building block for organizational values. The mission and vision of the founder/ founders of the organization is later on, reflected into possible code of conduct, policies and procedures and these values in turn, act as the directive for overall organizational behavior. In UAE, most of the companies are family-owned businesses run by local nationals. Like stated earlier, religious and cultural values have a direct impact on organizational and government policies in UAE (Abubakr, 2006). Therefore, it can be viewed that company values are also under influence of religious bodies and authorities. Hierarchy and money are the major determinants in overall corporate culture (Christie, 2010). As compared to international organizations who have pre-determined board of directors with due authority and accountability, company operations and values are more of domestic nature than having a formal outlook. Money, age and power are the most significant factors in UAE corporate culture with each of these factors acting as the symbol of authority. 7) Cultural Comparison The organizational culture of organizations in UAE is under significant influence of external cultural reforms. UAE is known as an Islamic domain where Islam is reflected as a religion of hospitality and equality. Due to hospitality as a corner stone of organizational policies, Emiratis prefer to do business with a person than an organization. Also, since most of the businesses are family owned, a strict hierarchical vertical structure exists which governs the organizational culture as well. There are visible lines of commands and observable differences between the working segments (Communicaid, 2009). Since religion defines everything in UAE, therefore the working days begin from Sunday and continues till Thursday due to religious holiday i.e. Friday. The given practice is completely contrary to western practice and depicts the religious influence on culture. Emiratis are also perceived as lenient towards scheduling and delays which is quite contrary to international corporate practices. Since family and friends come before anything, therefore professional policies and procedures are often molded accordingly. Where religion is a major directive in UAE culture, women employees and managers face difficulties in operating within organizations (Mohamad, 2005). It is often considered important to know the exact title of the person that one is dealing with such as Sheikh, Ustaad etc. Titles and hierarchy are of significant importance in UAE culture. 8) Compliance with Regulation UAE as a country has strict rules and regulations in relation with almost every aspect of industry-based operations. Considering the overall outlook of organizational compliance to HR related practices, necessary pre-employment and post-employment legislation act as the main guidelines for the organizations while designing their HR policies; therefore, overall compensation i.e. minimum wages etc, working conditions and insurance etc, are directly influenced by state laws. This is rather similar to international HRM practices where state laws are considered as the main set of instructions for managing workforce in an organization (Latham & Walkins, 2009; Latham & Walkins, 2011). References Abubakr, M. (2006). Managing human resource in the Middle East: Human resource management in the United Arab Emirates. London: Taylor & Francis Ltd. Ashencaen, C. (2008). Dilemmas in international social work education in the United Arab Emirates: Islam, localization and social need. The International Journal of Social Work Education, 27(5), 536-548. Christie, K. (2010). Globalisation, religion and state formation in the United ArabEmirates and Pakistan. Totalitarian Movements and Political Religions,11(2), 203-212. Communicaid Group Ltd. (2009), Doing business in UAE, Retrieved 15 November 2012 from http://www.communicaid.com/access/pdf/library/culture/doing-business-in/Doing%20Business%20in%20the%20UAE.pdf Godwin, S. (2006). Education and Emiratization: A case study of the United Arab Emirates. The Electronic Journal of Information Systems in Developing Countries, 27(1), 1-14. Gonzalez, G., Karoly, L., Constant, L., Salem, H., & Goldman, C. (2008). Facing human capital challenges of the 21st century: Education and labor market initiatives in Lebanon, Oman, Qatar, and the United Arab Emirates. Santa Monica: RAND Corporation. Latham & Walkins LLP. (2009), Working issues in United Arab Emirates, Retrieved 15 November 2012 from http://www.lw.com/upload/pubContent/_pdf/pub2801_1.pdf Latham & Walkins LLP. (2011), Doing business in United Arab Emirates, Retrieved 15 November 2012 from http://www.lw.com/upload/pubcontent/_pdf/pub2783_1.pdf Manibo, M. (2007). Mercer's report on UAE employment trends shows rising cost of expatriate workers. Mansour, A. (2008). The impact of privatization on the United Arab Emirates (UAE) federal public sector. International Public Management Review, 9(2), 66-89. Mohamed, M. (2005). Attitudes towards women managers in the United Arab Emirates: The effects of patriarchy, age, and sex differences. Journal of Managerial Psychology, 20(6), 522-540. Nelson, C. (2004). UAE national women at work in the private sector: Conditions and constraints. AbuDhabi: Centre for Labour Market Research & Information (CLMRI). Rees, C., Mamman, A., & Bin Braik, A. (2007). Emiratization as a strategic HRM change initiative: Case study evidence from a UAE petroleum company. International Journal of Human Resource Management, 18(1), 33-53. United Arab Emirates Council of Ministers. (2004). Council of ministers resolutions on training and employment of UAE citizens in the private sector. Abu Dhabi. Weston, P. (1998), 'Emiratisation: changing currents in the workplace', Arabies Trends, April, 44-45. Wilkins, S. (2001), International briefing 9: training anddevelopment in the United Arab Emirates. International Journalof Training And Development, 5 (2), pp. 153-165. Younies, H., Barhem, B., & Younis, M. (2008). Ranking of priorities in employees' reward and recognition schemes: From the perspective of UAE health care employees. The International Journal of Health Planning and Management, 23(4), 357-371. Read More