Compensation and Reward Systems Used In Todays Companies In UAE - Essay Example

Abstract Compensation and reward systems are determined to be important elements for the Human Resource Management (HRM) department of companies in the United Arab Emirates (UAE). Companies are adopting enhanced as well as various incentive along with bonus plans in recent business context. It has been observed from the research study that UAE companies adopt lucrative remunerations and benefit plans with the objective of attracting and retaining competent employees. Moreover, these rewards and remunerations systems are demonstrated to be the major motivation factors amid employees. These rewards systems are perceived to be encouraging employees to conduct their business operations in an efficient manner. The two of the leading UAE based companies which include Emirates and Abu Dhabi Commercial Bank (ADCB) have adopted effective remuneration policies for retention of potential employees. In this regard, it can be comprehended that compensation and rewards systems are considered as important factors among the UAE companies. Table of Contents Chapter 1: Introduction 1 1.1 Background of the Study 1 1.2 Objectives of the Research 2 1.3 Structure of the Research 2 Chapter 2: Literature Review 3 2.1 Overview of HRM in UAE 3 2.2 Challenges for HRM in UAE 5 2.3 Importance of Compensation and Rewards in UAE Companies 8 Chapter 3: Analyses 11 3.1 Case Study 1: Emirates 11 3.2 Case Study 2: Abu Dhabi Commercial Bank (ADCB) 13 3.3 Analysis of Case Studies and Literature Review 16 Chapter 4: Conclusion 19 Works Cited 21 Chapter 1: Introduction 1.1 Background of the Study Human Resource Management (HRM) is a process of managing as well as coordinating the activities or tasks of employees or staffs of an organization. HRM is also determined as an activity of recruiting and selecting appropriate individuals who will be able to perform their activities in a proficient manner. The HRM is one of the important segments of the management of an organization in order to ascertain that the business operations are performed successfully. HRM is also identified as a framework of policies, practices and procedures for managing the relationship between employers and employees i.e. management and the workforce respectively (Eslami & Nakhaie, “Effects of Human Resource Management Activities to Improve Innovation in Enterprises”). The major functions of HRM include resourcing, performance, reward, learning and development and employment relations. Resourcing signifies the process of selecting and recruiting employees. Performance refers to performance appraisal in accordance with team and group performance. Reward implies benefits and other provisions offered. Learning and development signifies training and development programs provided to employees. Employment relations imply the involvement of employees in the management decision making process. These are the various most important functions of HRM of an organization (SAGE Publications, “HRM in Context”). 1.2 Objectives of the Research The research will be based on case study analysis. The objective of the case study analysis in this research will assist in determining the HRM policies with regard to compensation and rewards in the UAE companies in present day context. The case studies are based on two companies which are the Emirates Group and Abu Dhabi Commercial Bank (ADCB). The HRM policies of these two companies recognize the HRM practices which are adapted in the UAE companies. Moreover, the HRM policies of these two companies identify the compensation and rewards systems which are offered to employees. The research is performed with the hypothesis of determining the intention of providing compensation and rewards to employees. Furthermore, the research will support in understanding the HRM conditions of companies performing business operations in UAE. 1.3 Structure of the Research The research will be based on four chapters. The first chapter is ‘Introduction’ which deals with the background as well as objective of the research. The second chapter is ‘Literature Review’ which brings out the conditions and practices of HRM in the UAE companies in today’s business context. This chapter depicts the HRM policies of Emirates and ADCB with regard to compensation and rewards. The third chapter is ‘Analyses’. This chapter aims at providing the findings of the research from the case studies in the literature review. The last chapter is ‘Conclusion’ which summarizes the findings and the analysis performed in this research study. Chapter 2: Literature Review 2.1 Overview of HRM in UAE HRM is an important aspect for better management as well as coordination of workforce of an organization. Alnaqbi stated that compensation and benefits are observed to be the most significant factors in order to motivate employees of an organization in UAE. The employees of UAE companies are provided with both cash as well as non-cash compensations with the intention of increasing their satisfaction level. The employees are provided with benefits such as health and housing allowances, medical leave and travel allowances (Alnaqbi, “The Relationship between Human Resource Practices and Employee Retention in Public Organisations: An exploratory Study Conducted in the United Arab Emirates”). The UAE is determined to be a fast growing country within the Gulf region. It has been observed that companies in the UAE are adopting innovative management practices such as HRM with the objective of improving the performances as well as growth (Siddique, “Job Analysis: A Strategic Human Resource Management Practice”). Siddique stated that the companies in the UAE have determined appropriate HR practices to be adopted as compared to Western countries with the intention of enhanced performance of the companies. In this regard, companies of UAE adopt job analysis as a planning tool in order to formulate suitable HR policies as well as practices. Moreover, job analysis will assist in better identification of cross-cultural elements in the workforce in order to manage as well as coordinate their activities in an efficient manner. The HRM of companies are required to make decisions in various areas or segments in relation to recruitment, selection, training and development, compensation and benefits, performance appraisal and health and safety requirements. These HRM decisions will assist employees to perform their operations in a successful manner (Siddique, “Job Analysis: A Strategic Human Resource Management Practice”). In a similar context Budhwar and Mellahi denoted that in the UAE, companies have adopted HRM practices both among public as well as private sector companies. In order to improve the effectiveness of the HRM policies as well as practices, huge investments are made towards the development of HR activities. These investments are made with the aim of improving the efficiencies as well as skills of employees for better performance of companies. The public as well as the combined sector (i.e. both public and private) are offered with immense capital or financial support with the motive of improving the HR practices as well as policies. The Government of UAE is also observed to launch a program named ‘Creating a High Performance Government: Public Sector Innovation’ with the purpose of offering training in order to enhance leadership as well as management skills of senior officials. Budhwar and Mellahi also stated that UAE companies have adopted steps and measures to improve the HRM policies as well as practices. Companies with better policies and practices will be able to perform their business operations with better effectiveness (Budhwar and Mellahi 72-74). According to Randeree, HRM of companies in the UAE are required to adopt Emiratisation formulated by the ‘Ministry of Labour’. Emiratisation has formulated this policy with the intention of employing more UAE nationals as compared to foreign expatriates. Moreover, with the assistance of this policy, the HRM of companies are required to provide training to local national employees of UAE with the objective of imparting better skills as well as competencies to perform their activates in an efficient manner. As further noted by Randeree , HRM personnel in this regard, are required to be transparent towards foreign expatriates with regard to their deployment or career advice (Randeree, “Strategy, Policy and Practice in the Nationalisation of Human Capital: ‘Project Emiratisation’”). It can be comprehended from the above discussions that both public as well as private sector companies have adopted different strategies or policies with the intention of acquiring better HR practices. The Government of UAE has formulated and implemented programs as well as policies with the objective of managing and coordinating workforces of companies in an effective manner. It is also perceived that HRM is determined to be an important part of companies for making various important decisions in terms of the facet of management of employees. Moreover, HRM of companies are also responsible for motivating as well as satisfying employees to conduct their activities in a proficient manner. 2.2 Challenges for HRM in UAE Diversity of workforces is recognized to be an important aspect in order to improve the creativity as well as competency of employees. However, it has been observed that in the UAE, HRM has faced various challenges due to workforce diversity. Workforce diversity is identified as a problem in the UAE as in companies it may lead to miscommunication and certain barriers with regard to behaviors or relationships amid employees and management of companies (Al-Jenaibi, “The Scope and Impact of Workplace Diversity in the United Arab Emirates – An Initial Study”). In accordance with Al-Jenaibi, companies in UAE have faced immense problems regarding recruiting and managing workforce with diverse culture as well as racial backgrounds. In this regard, companies in the UAE are required to formulate effective HRM polices in order to implement appropriate strategies for enhanced communication and maintenance of diverse cultural workforces. Moreover, the HRM managers of companies are required to be proficient for better coordination of diverse workforces (Al-Jenaibi, “The Scope and Impact of Workplace Diversity in the United Arab Emirates – An Initial Study”; Bono and Heijden 112-126). Globalization and rapid development of the economy of UAE have resulted in a culmination of more expatriates which has intensified competition for local people to be employed in the UAE companies. Moreover, it has been observed that in UAE, there is a high rate of unemployment (Al-Ali, “Structural Barriers to Emiratisation: Analysis and Policy Recommendations”). In this regard, Al-Ali has stated that the employees of UAE tend to lack commitment as well as satisfaction to work. The employment of large number of expatriates in the companies of UAE has developed language as well as cultural problems. Furthermore, the HR managers are observed to face a lot of challenges in managing the workforce with such diversity. The HRM of companies are required to formulate effective policies and measures with the intention of motivating employees to be involved with companies for a longer period of time (Al-Ali, “Structural Barriers to Emiratisation: Analysis and Policy Recommendations”). HRM plays an important role in managing the workforces of companies. In this respect, Khan has stated that in the UAE, the companies are required to develop an improved HRM framework with the objective of better management of employees. The HRM framework will also assist in maintaining the cross-national as well as cross-cultural differences which exist in the workforces of the UAE companies. The aforementioned issues have raised problems for both workforces and the management of companies in the UAE. In this concern, it is demonstrated that there is a high rate of employees’ turnover due to dissatisfaction and diverse work culture problem (Khan, “Convergence, Divergence or Middle of the Path: HRM Model for Oman”). In a similar context, Forstenlechner, Lettice and Ozbilgin (2012) indicated that companies in the UAE are observed to adopt techniques of diversity management such as quotas. These techniques have been utilized with the intention of managing the diverse workforces in relation to gender, age, ethnicity, educational background and disability among others. Quotas are adopted by UAE companies with the aim of increasing the number of local people in the workforces. The number of unemployment has been raised among local people in the UAE due to increased employment of foreign expatriates. UAE companies devise HRM policies with the motive of employing more local people as compared to foreign expatriates (Forstenlechner, Lettice and Ozbilgin, “Questioning Quotas: Applying a Relational Framework for Diversity Management Practices in the United Arab Emirates”). It has also been observed that the foreign expatriates do face immense problems before being engaged with any corporate sector business entities in the UAE as stated by Latham & Watkins (2009). Latham & Watkins (2009) also signified that foreign expatriates or non-UAE nationals are required to acquire employment visa with the objective of being employed to UAE companies. Moreover, the non-UAE nationals should be registered as well as licensed with the ‘Federal Ministry of Labour and Social Affairs (Ministry of Labour)’. Foreign expatriates are also required to undergo medical tests in order to obtain the employment visa. These are the certain issues which are faced by foreign expatriates before being employed. The HRM of companies are required to formulate policies in adherence with the labor laws compliant with ‘Ministry of Labour’. All these above mentioned factors can create certain complications for HRM of companies (Latham & Watkins, “Employment Issues in the United Arab Emirates”). It is recognized that these are the challenges which are faced by companies operating in the UAE. There is a problem of unemployment in the UAE. The major challenge faced is cultural diversity due to the employment of a large number of foreign expatriates in UAE companies. This challenge has also led to unemployment of local nationals. HRM of companies also faces problems in managing as well as coordinating activities of employees due to diversity in workforces. 2.3 Importance of Compensation and Rewards in UAE Companies Alnaqbi has also stated that the workforces of the companies have changed in an immense manner. These changes are administered due to race, age and family backgrounds. Moreover, changes are identified with respect to the structure of companies and relationships which exist between the management and workforces. These changes are perceived to be affecting the motivation of employees and their commitments towards a company’s goals and objectives. It has also been observed that companies in UAE face problems with regard to retention of employees. In this respect, HRM policies play a significant role in managing as well as coordinating the workforces of companies. Additionally, these companies formulate effective HRM policies with the intention of acquiring skillful labors or workforces. The HRM policies also comprise certain compensation and benefits plans in order to attract as well as satisfy employees (Alnaqbi, “The Relationship between Human Resource Practices and Employee Retention in Public Organisations: An exploratory Study Conducted in the United Arab Emirates”). In a similar context, Younies, Barhem and Younies stated that rewards and compensation are adopted in the HR polices of companies in the UAE in order to motivate the workforces. The HRM of companies should seek that performance of employees are appraised. In this respect, different companies are recognized to adopt diverse rewards and compensation polices with the objective of satisfying employees to perform their business operations effectively. Younies, Barhem and Younies also specified that diversity in workforce structure is identified to be one of the major reasons for various challenges faced by UAE companies (Younies, Barhem and Younies, “Ranking of Priorities in Employees’ Reward and Recognition Schemes: From the Perspective of UAE Health Care Employees”). According to Suliman and Al-Sabri, the HRM policies of companies in the UAE include compensation and benefits with the aim of motivating employees to perform their assigned tasks effectively and efficiently. Moreover, the performance of employees both individually and as a team are required to be appraised in order to motivate them for improved performance in future. The employees are also facilitated with compensations and benefit plans for better satisfaction of employees. As stated by Suliman and Al-Sabri, employees of the UAE companies are required to be motivated as well as satisfied with the intention of retaining skillful employees. Furthermore, the demand of employees should be met with attractive incentive plans. In accordance with these requirements of the workforces HRM policies should be formulated for better retention and motivation of employees (Suliman and Al-Sabri, “Surviving through the Global Downturn: Employee Motivation and Performance in Healthcare Industry”). Ahmed and Dablan stated that performance appraisal plays a significant role in motivating employees of companies to enhance their working capabilities. Companies with proper performance appraisal procedures will be able to ascertain the achievement of employees as well as provide better training facilities with the intention of improving their future performance and skills. Performances of employees should be measured with the intention of determining the areas of improvement and to initiate proper measures for better conduction of business operations. In this respect, compensation and rewards are offered on the basis of their performances of employees in order to motivate and satisfy their requirements. All these factors have assisted companies in the UAE to perform their business operations in an effective manner as well as to retain more employees (Ahmed and Dablan, “The Role of the Appraisal System in Developing Employees’ Performance: The Case of Oman Insurance”). In this context, it can be comprehended that compensations as well as benefits in the HRM policies play an important role in order to motivate and satisfy employees to perform their activities proficiently. These compensation and benefit plans also assist companies in the UAE to attract as well as to retain more employees. Chapter 3: Analyses 3.1 Case Study 1: Emirates 3.1.1 Company Background The Emirates Group is recognized to be a vast organization which operates its businesses from Dubai in different business fields comprising aviation, leisure and tourism industries. The company has been identified to be leading in every aspect of business with regard to travel as well as tourism. In the Group, Emirates airline is determined to be the major segment of the business due to its excellent services worldwide. The other segment of the Group is dnata providing services which include ground handling, IT solutions, cargo, flight catering and travel. Dnata was established in the year 1959 and now-a-days it is considered to the fourth largest provider of air services with its reach in around 40 countries. The performance of business operations of the Group in a united manner has assisted it in acquiring greater strengths [1] (Emirates, “Company Overview”). Furthermore, the Group has expanded its business operations towards leisure, retailing as well as hotels along with tourism establishments. In this concern, it has been identified that there are over 50 divisions of businesses with which the Group is engaged with [2] (Emirates, “Our Brands”). The Emirates Group is also observed to be the largest employer in the UAE. In this perspective, it has been observed that there are over 62,000 workers from different nationalities as well as culture who are involved with the Group [2] (Emirates, “Our Brands”). The vision of the Emirates Group is to perform its business operations in an ethical manner. Moreover, the business ethics of the Group are recognized to be their foundation as well as they are among the important factors for the success of the Group. A strong as well as stable management team with better decision making and idea generation capabilities is recognized to be a key factor for enhanced performance of the business. Furthermore, the Group values employees, the environment, stakeholders and the communities with the intention of developing better future for the Group [3] (Emirates, “Our Vision & Values”). 3.1.2 HRM Policies of Emirates (Compensations and Benefits) The Emirates Group identifies employees to be the greatest assets as well as the factors responsible for the success of the Group. The Group is observed to be employing individuals from different diverse cultures, which is determined as a critical strength for the Group to perform business operations effectively. In this respect, the employees are provided with a number of compensation as well as benefit plans with the objective of offering better satisfaction. These compensation and benefit plans have assisted the Group in motivating employees to perform their operations effectively and proficiently. The Group is recognized to offer substantial benefits with the aim of assisting global employees to reside in Dubai. The remuneration policy of the Group has been devised on the basis of analysis as well as research. On the basis of analysis, the Group formulates benefit plans in order to attract as well as retain skillful and talented employees in order to perform business operations effectively in the different market segments. In this respect, the Group has a segment named ‘The Emirates Group Career Centre’ which is responsible for assisting applicants willing to be employed with regard to total package as well as rewards to be offered on employment (The Emirates Group, “The Emirates Group Careers Centre”). Moreover, the reward packages of the Group comprise both cash and non-cash features. The cash rewards offered to employees include salaries which are tax free. The employees are provided with accommodation and travelling allowances. There are certain employees who are offered with special schemes in terms of profit share and protection of exchange rate. The non-cash benefits which are applicable to employees are annual leave and gratuity at the end of services. Furthermore, there are employees who are provided with certain other benefits on the basis of their role which include leave tickets, allowances for education support, insurance concerning accidents and personal life, dental as well as medical provisions, pension scheme of government and provident fund. The employees of the Group are also offered with additional benefits which consist of concessional travel facility and Emirates Card for having attractive discounts in dining, hotel and retail outlets in Dubai along with in certain other places in the UAE. These are the compensation and benefit plans which are offered by Emirates in order to attract as well as retain employees (The Emirates Group, “The Emirates Group Careers Centre”). 3.2 Case Study 2: Abu Dhabi Commercial Bank (ADCB) 3.2.1 Company Background ADCB is recognized to be a leader in the banking sector of the UAE. ADCB is identified to the third and second largest bank in the UAE and Abu Dhabi respectively with respect to assets which account to AED 184 billion by the end of the year 2011. In the UAE, the bank tends to be having around 48 branches with 294 ATMS. Moreover, the company has over 4,000 employees from 49 different nationalities and culture. The bank possesses as well as serves around 450,000 and 34,000 retail customers as well as corporate and SME clients respectively. The businesses of the bank are segregated into four different segments which include Consumer Banking, Wholesale Banking, Property Management and Treasury and Investment [1] (ADCB, “Annual Report and Accounts 2011”). The vision of the bank is to be recognized as the best bank in the UAE. Moreover, the bank with continuous innovation and financial performance is planning to acquire a greater place amid customers, competitors as well as the community. The mission of the bank is to procure a better as well as a long-lasting relationship with customers by treating each customer individually and also by providing innovative products as well as services. The bank has adopted certain strategies with the objective to enhance growth as well as performances. These strategies will assist it to grow in an immense manner in the UAE with a control in the internalization process. Additionally, these strategies will also assist the bank to efficiently conduct its business operations. The strategies will aid in attracting, retaining as well as developing competent employees through the assistance of attractive incentive and compensation plans [1] (ADCB, “Annual Report and Accounts 2011”). 3.2.2 HRM Policies of ADCB (Compensation and Benefits) The HRM policies of ADCB regarding compensation and benefits are formulated with the objective of attracting as well as retaining skillful or potential employees. In this respect, it has been observed that the bank provides certain level of remuneration in order attract as well as motivate employees to perform their activities or tasks in a competitive manner. ADCB formulates the compensation and benefit plans on the basis of duties as well as responsibilities of employees. Rewards are generally offered to employees in accordance with their performances and appraisal process. The compensations which are offered by the bank to employees should be in compliance with the interests of the shareholders. The performance of employees will determine the long as well as short-term incentives. Additionally, rewards or benefits on the basis of performance will motivate employees to perform efficiently as well as minimize the problem of employee turnover [2] (ADCB, “Management Remuneration & Variable Pay”). ADCB also has a variable pay structure in order to facilitate employees with additional benefits. The variable pay is paid along with fixed remunerations in accordance with the performance of employees in relation to their achievement of targets and performance appraisal. The variable pay of ADCB comprises cash as well as share rewards. In this context, employees of the bank are offered rewards partly in cash and partly in shares. The variable pay structure has been planned by the bank in order to minimize excessive risk taking initiatives of employees and encourage them to execute operations for the better performance of the bank in the long-term [2] (ADCB, “Management Remuneration & Variable Pay”). ADCB offers fixed pays on the basis of the role or function of employees. The fixed pay structure of the employees depends on the accomplishment of objectives of the bank and performance level of employees. The fixed pay structure comprises basic salary as well as general allowances [2] (ADCB, “Management Remuneration & Variable Pay”). 3.3 Analysis of Case Studies and Literature Review It has been observed from the above case studies that the companies acquire majorly foreign expatriates as compared to local nationals of the UAE. This aspect has increased cultural diversity among workforces. The management of companies faces huge problems in managing as well as coordinating the activities of employees. Moreover, this problem has also raised the issue of employee turnover. The companies aim at providing better services as well as products with the intention of serving the customers successfully. The objectives of the companies are to serve their customers with greater value as well as to build enhanced relationships for improved performances in the operational market segments. In this regard, the companies have adopted effective HRM policies with the objective of providing better compensation as well as benefits in order to attract and retain potential along with capable employees. Moreover, the companies have initiated these incentives and benefits plans with the objective of offering better job satisfaction as well as meeting the requirements of the employees. The compensation and benefit plans of the companies include accommodation and housing allowances with the aim of assisting foreign expatriates employed in the UAE companies to reside in the nation while serving the companies. The employees are also facilitated with tax free salary and general allowances on a fixed basis for providing better satisfaction as well as meeting their requirements. The compensation and reward systems of companies comprise both cash as well as non-cash schemes. The employees are offered cash benefits which include salary or fixed pay and other payable allowances. These cash benefits enable in motivating employees to perform their business operations efficiently and effectively. The non-cash benefits and incentives which are offered to employees constitute leave benefits, gratuity at the end of service, pension schemes, provident funds, education allowances and share rewards among others. The cash as well as non-cash rewards are offered to the employees with the intention of providing additional benefits and satisfying the invaluable assets i.e. employees of the organizations. It has been analyzed from the case studies and literature review that the major problem which exists among the companies in the UAE is cultural diversity among workforce. Moreover, it has been observed that foreign expatriates are the ones who are majorly employed which in turn is resulting in the minimization of local nationals in companies of the UAE. In this respect, HRM of companies has formulated effective policies with the objective of attracting as well as retaining skillful employees. In many companies in the UAE, cultural diversity is observed to be a challenge for HRM to manage the workforces effectively. However, diversity in workforces is demonstrated to improve productivity as well as performances of companies. The companies offer attractive or lucrative compensation and benefit plans for better satisfaction and retention of employees. The employees of UAE companies are offered incentives and rewards on the basis of their performances. This signifies that performances of employees are appraised in accordance with their performance level. It can also be comprehended from the case studies and literature review that companies in the UAE are required to adopt effective compensation and benefit plans for better retention of capable employees. Moreover, due to the significant rise in minimization of local nationals among the UAE companies, these compensation plans have been formulated. The UAE government is also observed to adopt programs and plans such as Emiratiastion and quotas with the intention of employing more local nationals of the UAE. In this respect, it can be comprehended that compensation and reward system plays an important role in the UAE companies to attract as well as retain skillful and competent employees. These are the various compensation and rewards system which are adopted by companies in the UAE in modern business context with the motive of possessing competent employees. Chapter 4: Conclusion The research has been conducted with the objective of determining the importance of compensation and rewards systems in the UAE companies. The research also recognized the various rewards and incentives which are offered to the employees for their better satisfaction and attraction. Literature review has been performed with the motive of ascertaining the HRM policies of the UAE companies. Moreover, it has been perceived that there are various challenges which are faced by HRM of companies in terms of cultural diversity and turnover of employees. The literature review has also revealed the importance of compensation and rewards which are provided to the employees of companies. The research has been based on case study analysis of two companies which are established and operating in the UAE. The first company is Emirates, which performs its business in three different segments comprising aviation, leisure and tourism. The Emirates Group has many business segments out of which Emirates airline and dnata constitute the major sections and it employs over 62,000 employees from diverse cultures. The Group provides various compensation and benefit plans which include both cash as well as non-cash schemes. The incentive plan includes tax free salary, accommodation and travelling allowances along with leave benefits. The second company which has been analyzed is ADCB which is identified to be one of the largest banks in the UAE. ADCB has 48 branches with over 4,000 employees from 49 nationalities. The bank operates with the aim of developing a better relationship with customers. Moreover, it plans certain pertinent strategies with regard to remuneration policies with the objective of acquiring and retaining potential employees. The remuneration policies includes fixed and variable pay structure to be offered to employees for enhancing their job satisfaction and especially for making them feel an integral component of the company. These two companies are observed to adopt effective remuneration and reward policies also for better management and coordination of diverse workforces. These benefits or rewards are offered with the intention of attracting as well as retaining of employees. Furthermore, these remuneration and benefit plans have assisted companies in acquiring more employees. These rewards plans also act as a motivational factor for employees to perform their business operations effectively and proficiently. The employees are provided with benefits and rewards as well as are appraised on the basis of their performance. The reward systems have also assisted companies to perform their business operations effectively in the different market segments with the retention of skillful employees. It can be comprehended from the findings of the research that companies in the UAE perform their business operations effectively with better compensation and reward system. In the UAE, compensation and reward system plays an important role for attracting as well as satisfying employees with the incorporation of salary and incentive packages. Moreover, talented employees from both local and foreign nationals are attracted with the intention of enhancing business performance of companies in the worldwide market. Therefore, compensations and rewards system are observed to encourage employees to perform their operations proficiently as well as to retain employees for a long-term. Works Cited [1] ADCB. Annual Report and Accounts 2011, 2011. Web. 20 Mar. 2013. [2] ADCB. Management Remuneration & Variable Pay, 2013. Web. 20 Mar. 2013. Ahmed, Abdel Moniem and Duaa I. Dablan. The Role of the Appraisal System in Developing Employees’ Performance: The Case of Oman Insurance. Article, 2007. Web. 20 Mar. 2013. Al-Ali, Jasim. Structural Barriers to Emiratisation: Analysis and Policy Recommendations. United Arab Emirates, 2008. Web. 20 Mar. 2013. Al-Jenaibi, Badreya. The Scope and Impact of Workplace Diversity in the United Arab Emirates – An Initial Study. Journal for Communication and Culture 1(2): 49-81. Print. Alnaqbi, Waleed. The Relationship between Human Resource Practices and Employee Retention in Public Organisations: An exploratory Study Conducted in the United Arab Emirates. Article, 2011. Web. 20 Mar. 2013. Bono, Silvio De and Beatrice Van Der Heijden. Managing Cultural Diversity. Germany: Meyer & Meyer Verlag, 2011. Print. Budhwar, Pawan S and Kamel Mellahi. Managing Human Resources in the Middle-East. United Kingdom: Routledge, 2006. Print. [1] Emirates. Company Overview, 2012. Web. 20 Mar. 2013. [2] Emirates. Our Brands, 2012. Web. 20 Mar. 2013. [3] Emirates. Our Vision & Values, 2012. Web. 20 Mar. 2013. Eslami, Nooshin and Hamid Nakhaie. “Effects of Human Resource Management Activities to Improve Innovation in Enterprises.” 3rd International Conference on Information and Financial Engineering IPEDR 12 (2011): 518-522. Print. Forstenlechner, Ingo, Fiona Lettice and Mustafa F. Ozbilgin. “Questioning Quotas: Applying a Relational Framework for Diversity Management Practices in the United Arab Emirates.” Human Resource Management Journal 22(3): 299-315. Print. Khan, Sami A. “Convergence, Divergence or Middle of the Path: HRM Model for Oman.” Journal of Management Policy and Practice 12(1): 76-87. Print. Latham & Watkins. Employment Issues in the United Arab Emirates, 2009. Web. 20 Mar. 2013. Randeree, “Strategy, Policy and Practice in the Nationalisation of Human Capital: ‘Project Emiratisation’.” Research and Practice in Human Resource Management 17(1): 71-91. Print. SAGE Publications. HRM in Context, 2010. Web. 20 Mar. 2013. Suliman, Abubakr M. and Nawal Al-Sabri. “Surviving through the Global Downturn: Employee Motivation and Performance in Healthcare Industry.” The Open Business Journal 2 (2009): 86-94. Print. Siddique, C. M. “Job Analysis: A Strategic Human Resource Management Practice.” International Journal of Human Resource Management 15.1 (2004): 219-244. Print. The Emirates Group. The Emirates Group Careers Centre, 2012. Web. 20 Mar. 2013. Younies, Hassan, Belal Barhem and Mustafa Z. Younies, “Ranking of Priorities in Employees’ Reward and Recognition Schemes: From the Perspective of UAE Health Care Employees.” International Journal of Health Planning and Management (2007): Print. Read More