Human Resource Functions in UAE Business - Essay Example

Name] [Unit] [Name of professor] [Due date] Human resource management Table of content 1.0 Achievement of competitive advantage through strategic utilization of people 3 2.0 Human resource functions in UAE business 5 2.1 Overreliance on expatriates 5 2.2 Natural resource dependency and changing industry face in UAE 6 2.3 Cultural diversity in the place of work 8 3.0 Work cited 10 Expedia.com. Marriott Abu Dhabi City hotels in Abu Dhabi Emirate, United Arab Emirates, 2013, http://www.expedia.com/Abu-Dhabi-City-Abu-Dhabi-Emirate-Hotels-Marriott.0-n6084523-0--bMarriott.Travel-Guide-Filter-Hotels 10 1.0 Achievement of competitive advantage through strategic utilization of people The quality of employees within an organisation, their job satisfaction and enthusiasm and the organisation all significantly impact the level of customer service, productivity of the organisation, survival and reputation. In every area within an organisation, human resource is a critical component. Managers and supervisors confront issues in human resource. The presence of human resources is to ensure efficient and effective utilization of human talent in order to accomplish the goals and objectives of the organisation. Utilization of human resources as a competitive advantage will mean the factors that are essential for the long-term success of the organisation. Such areas that are necessary include hiring effective employees, organisational design, and strategies of promotion, definition of performance measures and competencies, development and training programs, recognition systems and rewards and the perceptions of employees (Jassim, 399). People are usually viewed as the most crucial resources to an organisation where human resource strategy is central to achieve competitive advantage. HR strategy becomes an important tool for competencies integration and for linking the capabilities of employment with the strategy of organisation. Thus human resources management need to fit perfectly with organisational management. For effective performance of an organisation, the objectives of the organizational strategy should be fully supported by the distinctive capabilities. These capabilities are developed through efficient combination of abilities, behaviours and knowledge which only originates from employees, with other factors controlled by the organisation. Through personal competencies that are possessed by employees as well as apply during their job execution, human resources of the company thus become strategic factors gaining its competitive advantage. The abilities, knowledge and behaviours of employees together with interactions between employees potentially provide the basis for implementation of organisational strategy. It is also important to note that the strategic objectives of the company based on organisational, technological and financial value are created through the competencies of employees (Seyedjavadin, & Zadeh, 2). The responsibility of management is to ensure that the employees are productive and motivated about their work. This means that there is an integration of the practices of human resources the core practices of business practices. This shows how the objectives of the organisation are linked to the people and as a result improve the productivity and the value of the organisation. The positive human resources within a business lead to translation into financial impact within the organisation. In every organisation that acknowledges the significance of the knowledge, skills, abilities and behaviours of their employees, they create a difference in the achievement of the organisational objectives. This also becomes a crucial ingredient of the competitive advantage of the organisation. Thus, successful organisations strategically link the objectives of human resources to the objectives of the organisation as a way of preventing the isolation of people. This is because people serve as an integral part of business strategy (Seyedjavadin, & Zadeh, 21). For example, Marriot Hotel Abu Dhabi is a private sector which successfully extends its reach to customers as a hospitality company. It focuses on business intelligence systems and customer experience in order make a right fight on accommodation and pricing given that they are very important in maintenance and achievement of competitive advantage. The hotel also recognises its employees through a Motivate-Reward-Inspire system. The system rewards it employees to ensure sustainable competitive advantage (Expedia.com.). 2.0 Human resource functions in UAE business 2.1 Overreliance on expatriates Overreliance on expatriates can be very challenging thus leading to various disadvantages such as local of understanding the economy of the host country and short-termism. Due to such reasons, it is important that the companies have effective strategies for recruitment and retaining of local people in order to ensure that there is building of a sustainable workforce. Saudi Arabia has been experiencing shortage of local its local experts due the imbalance between available talent and growth, young population, and rising figures of unemployment. As most of the business relay heavily on expatriates, there is less tendency of investing on Saudi Arabian worker’s productivity. Such expatriates usually work on temporary contract and later go back to their countries. In other ways, expatriates usually look for the next challenge in regard to the global marketplace which makes them to move rapidly in order to test new ventures once established. Such lack of commitment to their place of country of work may lead to short term making of decision (Kenexa, 2). This factor ensures that they have a little contribution to the Saudi’s economic growth. Such contributions from expatriates as well as unemployment explain the challenges in management of human resource. With rapid growth in Saudi’s population, the number of expatriates is still large. When companies realise that there is a continued overreliance on expatriates, they see the need for development of processes of talent management in regard to developing markets. It is also important to ensure that companies adapt global programmes in order to be more relevant in developing local companies. In addition to overreliance of expatriates, various problems also develop which include high attrition, low productivity, poorly skilled and qualified staff as well as inadequate skilled personnel. In UAE, the strategic challenge in management of human resource is identification of measures which will ensure proper training, utilization and deployment of human resources and ensuring that they are also in adequate numbers. There may be adequate number of skilled personnel but it may turn that the personnel is underutilized and wrongly deployed. In addition, in order to address such shortages, the companies require having a clear understanding of the organisational environment in UAE. This includes being aware of changing dynamics in regard to skills, knowledge and abilities as well as having a proper approach to leaders in UAE. However, in order to address the issue of overreliance of expatriates, there are strategic options that would ensure that the human resource function is better managed. Such options include creation of training opportunities for already employed personnel, instituting a proper system of rewarding employees and establishment of optimum levels of staffing. In addition, public service needs to be depoliticised as well as establishment rewards in regard to good performances, promotion based on merit and enhancing guidance and counselling on career in school (Kenexa, 3). 2.2 Natural resource dependency and changing industry face in UAE Dependency on natural resources in UAE has created a significant impact on management of human resource. The economy of UAE greatly depends on oil and natural gas, a factor that has made it to have a strong influence on organisations such as OPEC due to its reliability in supplying gas and oil the world market. The UAE’s dependency of oil and gas, lack of restrictions in regard to the capital movement together with great openness to foreign market. This has a great impact on management of human resources since it gave way to importation of high skilled personnel to assist in management of the natural resources. As a result, this was one of the causes of overreliance of expatriates. In addition, due to open markets and lack of alternative options to depend on rather than oil and gas led to provision of cheap labour to both the low skilled personnel within the Kingdom as well as from neighbouring Arab countries (Elhiraika & Hamed, 4). However, due to richness of oil in UAE, they heavily relied on export of oil which greatly determined the number of personnel. Presence of oil also contributed to creation and development of certain skills in different levels. For instance, the personnel involved in the process of extraction of oil involved a variety of skills. Identification of the resource required high skilled personnel which greatly depended on expatriates. In addition, most activities of extraction called for low skills creating a large group of low skilled employees. Other processes also led to creation of highly skilled personnel. As a result, there is a creation of a wider gap in regard to wages between the low and highly skilled personnel. It is worth notion that management of human resources in natural resource dependency in such Kingdom is greatly affected by fluctuating prices of oil and revenues. Low prices of oil and gas directly affects the human resources since this is also reflected in personnel’s wages. However, due to such fluctuations, UAE put more effort on non-oil sectors leading to creation of manufacturing sector and others (Elhiraika & Hamed, 15). Such industries were created during high growth performances in oil and gas which created more employment and improvement of social infrastructure. Development of social infrastructure such as institutions played a significant role in development of skills in schools. This has led to an increasing number of high skilled personnel as well as reduction in reliance of expatriates. In addition, development of human capital led to an increase in human capital investment causing an increase in the ratios in primary, secondary, and tertiary enrolment. Beside such an increase in education in regard to the local workforce, local labour force is also educated in foreign countries. This ensures that foreign skills, knowledge and abilities are transferred from foreign countries to local organisations for improvement of workforce, growth and productivity. Thus, dependency of natural resources later led to development of other industries and improvement of workforce through acquiring of high skills, knowledge and ability both locally and internationally (Elhiraika & Hamed, 8). 2.3 Cultural diversity in the place of work The culture of organisations has great influence in the performance of organisations. If an organisation will develop an atmosphere that is friendly and supportive, its employees become more innovative. However, the management in UAE organisations ignores the importance of a work culture that is commitment based but instead; they usually rely heavily on top and down mechanisms and monetary rewards in order to combat job hopping. Based on social capital, gender inequality is focused on female employees in regard to undermining, subordination and marginalisation. Based on the traditions of Arab countries there is a great pay gap and negative attitudes in regard to the leadership position of female employees. As part of the same social environment, UAE has the same cultural attitudes towards the role female employees in a society that is dominated with male. For example, for any given job, females must be legally earning less. Such challenges can also occur where given job descriptions, education and seniority; most female personnel may be exposed to pay rates dissimilarities. Such differential in pay may also be related to greater opportunities for males in regard to career development. Such factor greatly contributed to high turnover rates foe female employees in UAE. In addition, in regard to social capital, management of human resource is greatly affected where a certain percentage of female employees may be exposed to discrimination in terms of the available employment opportunities and promotion (Al-Ali, Shee, & Foley, 4). Based on language, English has become essential for advancement of technology, trade and management. Fluency in English greatly affects the employability of the people of Emirate. This is because the fluency level in English is a great concern to the people of UAE where the view of employees includes a perception of English fluency deficiency in the UAE. This creates challenge in management of human resource especially in expression of skills and abilities. Creation of an environment of learning and training are recognised as key elements for the organisation for achievement of competitive success or advantage. Through training, the management is assured that the skill behaviours, knowledge and attitudes of the human resource are obtained through learning experiences. This in turn will ensure achievement of effective performance. As a result, if workers are well trained, they form a foundation in regard to their productivity with clarity in market place (Al-Ali, Shee, & Foley, 5). However, there is a great challenge in training of employee in UAE as they do not get enough training. Thus, this creates a challenge in management of human capital as lack of enough training has great significance achievement of the effective performance within an organisation (Al-Ali, Shee, & Foley, 3). 3.0 Work cited Al-Ali, J., Shee, H. K., & Foley,P. Structural Barriers to Emiratisation: Analysis and Policy Recommendations,2006, 5th March, 2013, < http://www.wbiconpro.com/230-Al-Ali,J%20&%20Others.pdf> Elhiraika, A. B. & Hamed, H. H. Explaining Growth In An Oil-Dependent Economy: The Case Of The United Arab Emirates, 1-35, 2002, 5th March, 2013, Expedia.com. Marriott Abu Dhabi City hotels in Abu Dhabi Emirate, United Arab Emirates, 2013, http://www.expedia.com/Abu-Dhabi-City-Abu-Dhabi-Emirate-Hotels-Marriott.0-n6084523-0--bMarriott.Travel-Guide-Filter-Hotels Jassim, R. K. Competitive Advantage through the Employees, 387-413, 5th March, 2013, Kenexa. How to Address Saudi Arabia’s Leadership Shortage, 2012, 5th March, 2013, Seyedjavadin, S. R., & Zadeh, M. H. HR strategy and its aligning with organisational strategy and human capabilities, 1-24, 5th March, 2013, Read More