Emiratization and Qatarization - Research Paper Example

Emiratization and Qatarization Name Course Tutor Date Emiratization and Qatarization 1.0 Abstract Human capital being regarded as the most important asset of any organization, every contemporary firm wants to have the best workforce for competitive purposes. However, in places countries like AUE and Qatar in the Middle East, human resource still remains a challenge due to skill shortage and poor planning which have been witnessed in the past decade. In the recent years, these countries have enacted policies called Emiratization and Qatarization to see them improve their labor market. Therefore, the objective of this research is to compare and contrasts the HRM challenges in UAE and Qatar. The evaluation the Emiratization and Qatarization in context of effective HR planning and Knowledge Management found of that Emiratization was effective in both cases compared to Qatarization. The research targeted population Human resource managers for both domestic and international companies operating in Dubai, UAE and Doha, Qatar. The research will employ survey methods to collect data from the HR managers. The data will then be will be analyzed and shown in form of graphs and charts. Table of Contents Emiratization and Qatarization 2 1.0 Abstract 2 Table of Contents 3 2.0 Introduction 4 2.1 Background 4 2.2 Research Objective 6 2.3 Research Questions 7 2.4 Hypothesis 7 3.0 Literature Review 8 3.1 Introduction 8 3.2 Discussion into the Literature 9 3.2.1 Similarities of Emiratization and Qatarization 9 3.2.2 Contrasts between Emiratization and Qatarization 10 4.0 Methodology 11 4.2 Sample Selection 11 5.0 Discussion and analysis 12 6.0 Results 12 7.0 Conclusion 15 8.0 References 15 9.0 Appendix 17 2.0 Introduction As the 21st century unfolds, unemployment remains one of the challenges governments face across the globe. One the regions in the world which strong face human capital challenges are the Middle East (Gonzalezn et al. 2008). Currently, challenges are widespread and include market volatility accompanied with talent shortages and advancement in technology. Sfakianakis (2005) argues that this is a culmination that the economic growth of the region in the recent years has not been consistent with equally human resource development and buoyant labor. The Middle East countries particular United Arab Emirates and Qatar has been grappling with policies to close the gap between supply and demand of labor, in reference with quality and quantity available as the countries improves in terms of economic growth. Gonzalezn et al. (2008, p.) contends that while aptly leveraging Human Resource has remained a major theme of discussion over the years, both UAE and Qatar have adopted policies called Emiratization and Qatarization to help curb labour market challenges. Therefore, this research paper will compare and contrast the HRM challenges in UAE and Qatar. The paper will also evaluate the Emiratization versus Qatarization, in context of effective HR planning and Knowledge Management. 2.1 Background UAE is a Middle East having a population totaling to 9.2 million, with 1.4 million being local citizens while 7.8 million being expatriates (Al-Waqfia & Forstenlechnera, 2014, p.168). Over the years the country has registered a tremendous economic growth Emirates making it a high income economy. John (2013) hold that today UAE is ranked second biggest economy in the Middle East and 19th globally based on its GDP ($377 billion). This growth and trade activities has increased opportunities for individuals and business, thus increasing number of organization scrambling for the market. In these years, Dubai has risen to a business hub and having a large population. The situation has lead disorientation of the labour market and shortage to both local and international companies as they scramble for that important asset Government of the UAE (GoU, 2006c). The economic expansion has made companies to import labor in other countries to meet demand. While importation is to meet the demand, it has also denied local employment. As such, the government came up with policy known as Emiratization to help address the situation. In a nutshell, this initiative was used by UAE government to provide employment to its citizens through an efficient way in both private and public sectors (Figliolini, Hofmann & Kanjirath, 2008). The programs were also to encourage take up jobs in government and private sectors. The UAE nationals are known to favor easy government employment while regard private sector employments to be below par. They also had to wait for public sector jobs where they believe there more funding, less hours of work and benefits (Forstenlechner, 2010, p136). As such, they prefer reaming jobless if government jobs are not available. The situation can also was contributed poor education low education and technical knowledge about the jobs in private companies. Similarly, Qatar is also a middle east country and a member of the Gulf Cooperation Council. Just like UAE, the country has more expatriates making the larger part of its workforce. According to Nordland (2013) the total population of Qatar was estimated to have reached 1.8 million in 2013, with 278,000 being Qatari citizens while 1.5 million being expatriates. Qatar is ranked as the richest country in the world based on its per capita. According to CIA World Factbook, it is also rated as the 9th largest economy in the world with regards to its GDP in 2013 (Nordland, 2013). Just like UAE, Qatar depends greatly on foreign labor to improve its economy. Actually, foreign employees compose of 94 percent of the total workforce in the country. International Trade Union confederation ranked Qatar as one of the most awful countries for employees. Due to the large composition of non-national employees, the government has developed an initiative referred to as Qatarization to raise Qatari national workforce in every joint venture companies and government companies (Budhwar & Mellahi, 2007). The different between Qatari nationals and UAE nationals, is that Qatari nationals are willing to work in private sector. Cathleen, Eide & Martorell (2008) asserts that an increasing number of Qataris who have foreign education as well as US-educated ones are coming home to take up major positions previously occupied by the foreigner. In a bid to contain the major influx of emigrant employees, Qatar government has increased the supervision of its foreign workforce initiatives in the previous several years. 2.2 Research Objective The general objective of the paper is to find the comparison and contrast of the HRM challenges between UAE and Qatar. Specific objectives The research is guided by the specific objectives which include; To evaluate the Emiratization versus Qatarization in context of effective HR planning and Knowledge Management. To evaluate Emiratization versus Qatarization in the context of effective knowledge management 2.3 Research Questions What are the comparison and contrast of the HRM challenges between UAE and Qatar? 2.4 Hypothesis More purposely, the hypotheses that are being tested include are on the basis of comparing effectiveness contexts of HR planning and Knowledge Management between UAE and Qatar. Therefore, the hypotheses include: Hypothesis 1: UAE has more effective (realistic) plans for nationalization than Qatar Hypothesis 1: Qatar has more effective (realistic) plans for nationalization than UAE The viability of these questions will be investigated using the above hypotheses. This is critical since direct comparisons presuppose that the answers provided by respondents will be comparable. This acceptability of measurement of effectiveness is vital due to the fact that without it, disparities in participant’s ratings may not be true variations, as opposed to variations in the manner to which the effectiveness was interpreted. Hypothesis 3: UAE has more effectively contributed to Knowledge Management than Qatar, in terms of nationalization. Hypothesis 4: Qatar has more effectively contributed to Knowledge Management than UAE, in terms of nationalization. There are twofold explanations behind the Knowledge Management hypotheses. Since UAE participants are understood that Knowledge Management is effective in their country, they are likely not to perceive Qatar Knowledge Management as being effective and vice versa. Secondly, since the government of UAE tells their citizens that their knowledge management practice is effective, they may not select low ratings in the questionnaires. 3.0 Literature Review 3.1 Introduction Globalization and growth of countries in Middle East has led to more challenges in labor markets as both local and international firms scramble for low population workforce as manifested in countries companies (Silk, Andrews & Cole, 2005). UAE and Qatar are one of the countries with low population and are unable to meet the demand of the recommended workforce. Such situation has compelled companies more so international to import workforce from other countries to be able to meet production demands. Al Ali (2008, p.368) contends that in the recent past, these two countries have suffered from skills shortage due to less focus in education. In the case of UAE, attitude towards work has also contributed increase of expatriates taking up jobs meant for the local. In the past Emirati citizens have targeting only government jobs while reason that privates jobs are of low cadre, less benefits and having long hours of work. A recent research demonstrated that whereas practically all the 96% graduates of Women’s HCT, Abu Dhabi stated that they would join the labor force, just 12% shown a keenness to take jobs in private sectors, owing to the fact that the government guaranteed better benefits, short working hours and job security (Gonzalez et al., 2008, p.117) These claims have made them to remain jobless because not government jobs can only accommodate part of population. Normally, employment contributes economic growth of the nation through income taxes. Hence, these two governments developed programs that can help the citizens get jobs which had been taken by expatriates. While UAE developed Emiratization, Qatar designed Qatarization. In the two initiatives are focused on localization of workforce. 3.2 Discussion into the Literature 3.2.1 Similarities of Emiratization and Qatarization Government both Qatar and UAE had tried various reforms of labor market, but did not prove to be effective. Those earlier reforms touch mostly of improving education (Abbas & Haan, 2002). However, both Emiratization and Qatarization were developed so as to reduce the dependence on foreign workers. Just like Qatarization, Emiratization is a comprehensive word employed to explain a range of laws and policies which entails raising the share of the Emirati nationals working in a specific sector Gonzalez et al., 2008, p.117, 153. The laws and policies are also focused on limiting general dependence on imported labor in the total terms and also to raise the job share held by citizens in vital and higher-growth-prospective industries like gas and oil production, banking, tourism, trade and insurance among others. For instance, banking is one the sectors which emphasized due to its potential growth and due to the fact that proficient opportunities it present could draw attention of the nationals. Both the two focused on pushing and replace expatriates with citizens in the public sector (Gonzalez et al., 2008, p.131). Also in both cases Ministry of Labour are normally responsible for keeping watch on Emiratization and the steps made to improve labour market polices. Emiratization and Qatarization are initiatives which are conducted in collaboration with ministry of education to ensure the standard of education in these two countries are elevated to make sure nationals acquire technical skills to take up jobs both in public and private. In UAE alone, the Ministry of Education recently took measures to raise the share of male and female teachers to replace more than 500 foreigners to teach subjects such as mathematics, English and Arabic (Cathleen, , Eide & Martorell, 2008). The official government website claims that the initiative targets to make 90 percent of be Emirati nationals by 2020 (GoU, 2006c). The government of UAE also understands that increasing the benefits related with employment in private public sector is a critical method to attract Emirati nationals to take up jobs in that sector. As observed earlier, fewer benefits in the private sector compared to the public sector had become the biggest hurdles in keeping citizens from getting into private sector jobs. Gonzalez et al., (2008, p.131) states that one approach which been enforced by Emiratization is to put particular targets on how nations share jobs in both sectors. 3.2.2 Contrasts between Emiratization and Qatarization The major difference between these two initiatives is that while Emirati nationals are not keen to take up jobs in the private sector, Qatari nationals are willing to take up these jobs and are resigning from their foreign jobs to come home for such jobs (Al-Waqfi & Forstenlechner, 2010, p.368). Therefore, Qatarization is not keen of luring people to work in private but just to increase jobs for the nationals both in public and private (see figure 1). On the other hand, Qatar has smaller number of nationals compared to UAE nationals. Whereas population of Qatar nationals has reached 278,000, the population of AUE nationals is 1.4 million; hence it is easy to absorb Qatar nationals in all government jobs than UAE nationals. Al Ali (2008, p.371) claims that Emiratization is easier to implement because more Emirati citizens have technical skills compared to Qatari nationals. This is because more UAE Education is more elaborate and western oriented. On the other hand, Qatari nationals prefer to acquire their education abroad; the situation has hindered the growth of education sector a great deal (Abdalla et al, 2010, p.167). 4.0 Methodology 4.1 Sample Design The research design uses survey to measure International human resource manager’s feedback. The specific survey design used SERVQUAL questionnaires top gather primary data as shown in the appendix. The questionnaire comprising of 10 statements of perceptions of both Emiratization and Qatarization categorized into five dimensions ratings that can be focused on. Participants were asked present the ratings of effectiveness of HR planning based on the perception. On the other hand, respondents were also asked to present their opinion on the effectiveness of knowledge management in both The statements to be used in this survey can be rated through a five-point Likert scale, with 1 showing STRONGLY AGREE; 2 AGREE; 3 NEUTRAL; 4 DISAGREE; and 5, STRONGLY DISAGREE. Hence, the variation got from subtracting the HR planning based scores in Emiratization from Qatarization, and knowledge management scores in Emiratization from Qatarization shows the most effective initiative based on HR planning and knowledge management. 4.2 Sample Selection A sample of 120 human resource managers in public and private were selected from Dubai and Qatar for the survey; 60 from public and 60 from private sectors. The Non-probability sampling was used in the survey for picking the research respondents. Applying Non-Probability, is also called convenient sampling. It enables the research to establish and distribute questionnaires to individuals who have worked in the company in past and even presently which the study focuses on. This form of survey will provide the marketer convenience and help in avoiding higher study costs in that every entity of this population will not have a known and nonzero probability of being integrated in this study. 5.0 Discussion and analysis Data gathered was analyzed by quantifying participants’ answers of their degree of agreement with the set statements used to assess HR perception of effectiveness of Emiratization and Qatarization context of HR planning and also in the context of knowledge management. The degree of agreement on effectiveness perceptions were quantified though calculation; i.e. subtraction of Qatarization data from that of Emiratization. The scores received from calculation determined the comparison and contrast, and effectiveness of the two initiatives. Also, the study results lend an extra weight to the thought that background differences between countries certainly impacts responses on measures of Qatarization and Emiratization. 6.0 Results From the evaluation of the accessible literature and research on the effectiveness of Qatarization and Emiratization, in the context of HR planning and knowledge management the results emerged. In the first question concerning the effectiveness of the Emiratization on HR planning, 52 people strongly agreed that it was effective, 32 agreed, 18 neutral, 13 disagreed and 5 strongly disagreed. Same question on Qatarization were as follows HR planning, 50 people strongly agreed that it was effective, 27 agreed, 9 neutral, 24 disagreed and 15 strongly disagreed. When subtracted, 2 more people strongly agreed in Emiratization, 5 more HR managers agreed, 9 people more remained neutral Emiratization, while many people both disagreed and strongly disagreed in Qatarization. The second question was concerned effectiveness of Emiratization on knowledge management the research found out the 37 respondents strongly agreed, 23 agreed, 27 remained neutral, 15 disagreed and 18 strongly disagreed. In the same question on effectiveness of Qatarization on knowledge management 27 respondents strongly agreed, 39 agreed, 21 neutral, 31 disagreed and 2 strongly disagreed. In the second question there mix results with several respondents strongly agreeing with the effectiveness of Emiratization on knowledge management with few strongly disagreeing with Qatarization on knowledge management. The results are shown in the graph below Figure 2: Emiratization vs. Qatarization in context of HR planning Figure 3: Emiratization vs. Qatarization in context of Knowledge management 7.0 Conclusion From the study findings, it is clear that Emiratization is more effective in the context of human resource planning compared to Qatarization. The result also established that Emiratization is slightly effective compared to Qatarization in terms of knowledge management. The situation is also confirmed previous research conducted in 2006 which claim Qatarization is inactive and Qatar government has since done away with it. The research relied on 120 human resource managers in both Qatar and UAE to represent the whole workforce. However, the survey has a limitation in that 120 may not represent the general thoughts of all human resources in these countries. As such, further research is recommended in future. 8.0 References Abbas, A. & Haan, H. (2002). Skills and Training in the UAE: The Need for and the Dimensions of Institutional Intervention, Policy Research Paper No. 5, CLMRI, National Human Resource Development and Employment Authority. Dubai, UAE: CLMRI, 2002. Abdalla, I., Al-Waqfi, M., Harb, N., Hijazi, R. & Zoubeidi, T. (2010). Labor Policy and Determinants of Employment and Wages in a Developing Economy with Labor Shortage. Review of Labour Economics and Industrial Relations, 24, 163–177. Al Ali, J. (2008). Emiratization: Drawing UAE Nationals Into Their Surging Economy. International Journal of Sociology and Social Policy, 28, 365–379. Al-Waqfi, M.A., and Forstenlechner, I. (2010). Stereotyping of Citizens in an Expatriate Dominated Labour Market: Implications for Workforce Nationalization Policy. Employee Relations, 32, 364–381. Al-Waqfia, M. A. & Forstenlechnera, I. (2014). Barriers to Emiratization: the role of policy design and institutional environment in determining the effectiveness of Emiratization. The International Journal of Human Resource Management, 25, (2), 167–189 Budhwar, P. and Mellahi, K. (2007). Introduction: Human Resources Management in the Middle East. The International Journal of Human Resource Management, 18, 2–10. Cathleen, S., Eide, E.R. & Martorell, F. (2008). Postsecondary Education in Qatar: Employer Demand, Student Choice, and Options for Policy, MG-644- QATAR, Santa Monica, Calif.: RAND Corporation. Retrieved on 5th October 2014 from http://www.rand.org/pubs/monographs/MG64 Figliolini, A.J., Hofmann, A. & Kanjirath, T. (2008). Growth in the Middle East and HR Capabilities. Center for Advanced Human Resource Studies. Forstenlechner, I. (2010). Workforce localization in emerging Gulf economies: the need to fine- tune HRM. Personnel Review 39(1), 135-152 Gonzalez, G., Karoly, L.A., Constant, L., Salem , H. & Goldm, G.A . (2008). Facing Human Capital Challenges of the 21st Century: Education and Labor Market Initiatives in Lebanon, Oman, Qatar, and the United Arab Emirates. Rand-Qatar Policy Institute, p.1-299. Government of the UAE (GoU). (2006c). Employment and Social Security: Abu Dhabi. Retrieved 5th October 2014 from http://www.government.ae/gov/en/biz/employment/employment.jsp John, I. (2013). UAE's economy growth momentum set to pick up. Retrieved 5th October 2014 from http://www.khaleejtimes.com/kt-article-display-1.asp?section=editorschoice&xfile=/data/editorschoice/2013/December/editorschoice_December12.xml Nordland, R. (2013). New Hope for Democracy in a Dynastic Land. NYTimes.com. Sfakianakis, J. (2005). An Overview of the Gulf Economies: Challenges and Prospects in a Global Marketplace,” Gulf Yearbook 2004, Dubai, UAE: Gulf Research Center, 79–92. Silk, M.L., Andrews, D.L., & Cole, C.L. (2005). Sport and Corporate Nationalisms. Oxford International Publishers Ltd. 9.0 Appendix Questionnaire Please provide answers for questions below by marking or stating the most suitable answer. *General information* 1. Kindly specify your gender. (i) Male (ii) Female 2. Kindly state the company you work for? 3. How long have been HR manager in your company? 4. Specify whether which sector your company belongs to. (i) Public (ii) Private 5. Has Emiratization increased number of AUE nationals in your company? (for UAE HR managers) (i) agree (ii) disagree 5. Has Qatarization increased number of Qatar nationals in your company? (for Qatar HR managers) (i) agree (ii) disagree If you agree specify number of nationals and non-nationals 6. Has Engaging Emiratization has made HR planning effective? (for UAE HR managers) (i) Strongly agree (ii) agree (iii) Neutral (iv) Disagree (v) strongly disagree Explain briefly …………………………. 6. Has Engaging Qatarization has made HR planning effective? (for Qatar HR managers) i) Strongly agree (ii) agree (iii) Neutral (iv) Disagree (v) strongly disagree Explain briefly …………………………. 7. Emiratization is effective in terms of knowledge management. (For UAE HR managers) i) Strongly agree (ii) agree (iii) Neutral (iv) Disagree (v) Strongly disagree 7. Qatarization is effective in terms of knowledge management. (For Qatar HR managers) i) Strongly agree (ii) agree (iii) Neutral (iv) Disagree (v) strongly disagree. 10. Nationals are more effective than non-nationals. i) Strongly agree (ii) agree (iii) Neutral (iv) disagree (v) strongly disagree 11. Non-nationals are more effective than nationals. i) Strongly agree (ii) agree (iii) Neutral (iv) disagree (v) strongly disagree Thank you for answering our questions. Read More