Strategic Human Resource Management in the UAE - Case Study Example

Strategic Human Resource Management (Name) (Institution) Introduction Human resource is well-thought-out as one of the organizational assets that provide a platform for sustainable competition. The commercial sector is undergoing several transformations such as globalization, focus on profit maximization, labor demography, and technological advancements. The drive of the study is to deliver an understanding of the application and perception of Strategic Human Resource Management in the United Arab emirates and Abu Dhabi. Further discussions compare the perception and application of SHRM in other parts of the world and the transformations that have gone through the management practice. 1. Strategic Human Resource Management Strategic human resource management is widely viewed as the human resource management activities that contribute to the success of the business. The core success of business and organizations is directly linked to the effectiveness of Human Resource Management activities. Strategic human resource management also refers to pre-emptive management of human as a resource. The strategy call for fast thinking and planning by the human resource to enable the company meets their objectives in time. creating a human resource plan for strategic human resource management require the planner to put into considerations the employees demands and what the company or the organization is in a position to offer (Armstrong & Armstrong, 2011). An effective strategic human resource management requires a full understanding of the organizational planned objectives that need to be a achieved within a period of time. the strategy is also aimed at improving the business or the performance of the organization by developing policies and practices that are aligned with the organization objectives. Strategic human resource management is the practical approach to managing human as an important resource for the organization that provide long term support to the success of the business or organization. The strategy focuses on people issues of concern, values, quality, culture, and commitment that are in line with the working environment. The strategic process defines intentions that allocate consistent need for resources that are aimed at promoting the organization goals and strategic plans for success (Armstrong & Armstrong, 2011). The strategy for human resource is about implementation of the effective management changes and planning for the organization. Strategic human resource management can take the approach of various definitions such as a plan that act as a guide or course of action that are applicable in delivering effective human resource. The strategy can also consider a pattern and perspectives that bring consistency of the organization and fundamental ways in which the business or the organization operates. Strategic human resource management is therefore an approach that helps in making effective decisions on the plans and actions an organization intend to apply concerning the management of staffs, hiring, training, performance management and empowering or personals. The strategy also takes into account an integrated employee relationship and the organizational policies and code of ethics (Goldfinch & Wallis, 2009). Strategic human resource management considers the use of planning as a comprehensible approach to designing and managing personnel systems depending on the organization employment policy. The strategy is expected to match human resource management policies and actions to enhance the success of the business. Workforce is a key factor for organizations, and strategic human resource management should consider the staff as a strategic resource for achieving the target competitive benefits (Spraggon & Bodolica, 2014). 2. Description of SHRM Strategic human resource management is the tactics hat the human resource department or an organization is putting in place to ensure the organization or the department achieves the set objectives. The strategy considers that demands for the business and the human resource strategies of formulating and implementing the business or the organization strategies. The concept of strategy, in the strategic human resource management refers to the actions that the firm or the department must maintain or look out for and match the necessary resources and capabilities to the available opportunities in the internal and external environment to compete fairly. The nature of strategy in human resource should consider the elements of purpose, factors affecting formulation and implementation of organization strategies and creating a conceptual understanding of the human resource function and responsibilities. SHRM is a cooperate approach of managing the origination staff or employees that work toward achieving the organization goals and objectives. Human capital within the organization can be described as competitive resource for implementing the organization strategies. The advantageous competition is promoted by various elements such as the organization internal processes that are affected by the external environmental factors (Armstrong & Armstrong, 2011). The second element is that strategic human resource action call for the organization of the response of the business. In order to deliver or achieve the new strategies in the HR department, the organization must design and implement deviations in the human resource structure and system. Finally, the element of environmental pressure such as technological advancement, competition, and customers or organizational demands as some of the promoting factors towards the adoption of SHRM for the advantage of cooperate interest (Goldfinch & Wallis, 2009). Historical / Evolution of SHRM In the early 1900’s, Fredrick Tylor, who is also referred to as the father of science management, is appreciated for playing a significant responsibility in the milestone of personnel development and functionality. The scientist proposed the benefits of personal training and provision of incentives as a way of rewarding workers to enable them develop the motivation and perform exceptionally. The principle laid a good foundation for the Human Resource Management for industries and institutions. As the ‘father of science’ was working towards the implementation of scientific human resource management, other pioneers in the management sector were working towards the application of psychology in selecting, recruiting and training of workers (Goldfinch & Wallis, 2009). The procedure was applied to the recruitment of military soldiers during World War I and was proved to be successful. Hawthorne research (1920s and 1930s) at Western Electric stimulated an emphasis on the informal aspect and social at the workstation. The research interpretation focused on the kind of relationship that employees had to the factors that contributed to their productivity and satisfaction (Armstrong, 2008). A collective bargain in the 1940s and 1950s contributed to an advantageous progress in unionizing the workers and increasing the benefits in order to realize good results. Therefore, the philosophical human relationship and relations in the labor sectors dominated the apprehensions for Human Resource Management. In the year 1964, Human Resource Management was revolutionized by the passage of the seventh title on the right of Civilians Act together with other legislations that discriminated the labor force. The milestone created equal opportunities and designed affirmative actions that enhanced the performance of the human resource management functions in the contemporary organizations. The transformation in the labor demographics, globalization and technological advancement in the 1980s brought a positive impact in the human resource responsibilities. A definition posed by Wright and McMahan in the year 1992 state that strategic human resource management is aligned and focuses on providing a human resource that will deliver the firm strategic plans and objectives. A classical book by Jim Walker (1981) on Human Resource Planning, considered the elements that would bring a transformation in the HRM to be in operations with the business operations and plans. In the years 1981, an article written by Devanna and Tichy’s on HRM and strategic perspectives factored in the already existing human resource strategies and delineated the human resource practices that can be associated with the strategic human resource management. This analysis of Human Resource Management was referred to as vertical alignment (Armstrong & Armstrong, 2011). In the year 1984, Beer et al. discovered a new approach to the sub-functions of human resource, giving it a new framework of the human resource strategy. The personality argues that historical and current development in the Human Resource department should focus on the entire Human resource department but single out specific practices. The ideal established an understanding of the different ways in which various Human Resource functions could be merged into the organization functions (Spraggon & Bodolica, 2014). The alignment was referred to as vertical, horizontal alignment, which was aimed at achieving the organization goals and objectives, reasonably concentrating on individual functions. The combination of vertical and horizontal alignment was the birth of Strategic Human Resource Management and the contribution of Human Resource Department to achieving organizational goals. The Human Resource responsibility is, therefore, to lay emphasis on the implementation of strategic formulation and not to formulate the organization strategies for growth. The strategies to be implemented consist of establishing a positive shift in strategic management plans that bring a change in the staff perception of the organization. Global Perception and Practice of SHRM Organizations around the world exist to perform different functions such as service delivery, product production or for the benefit of the community. Strategic human resource management can be appreciated to the success of these organizations, industries, and institutions. Human resource management is perceived to be the most unpredictable due to the emotional and rational elements that it entails. In the United States and China, HRM is considered to be more costly and consume many revenues and at the same time considered to be the most valuable department within an organization. China consider human SHRM to be an important department for organization growth which need proper and effective management and be treated with a lot of ethics and equality for the department to participate in achieving the organization strategic goals and objectives (Armstrong, 2008). Strategic Human Resource Management has been the practice for a period more than twenty years in the United States, Europe, and Australia. The practice in these regions has seen a drastic shift in focused management skilled staff operating within global organizations. The shift has proved a more cohesive perception that involves the knowledge of Human Resource Management in the global environment, to what is referred to as the Strategic Human Resource Management (SHRM) (Spraggon & Bodolica, 2014). The expansion of SHRM has been realized by the international organizations to be boosting growth and development of the various organizations. Organizations that have adopted the human resource strategy include, Virgin, IBM, Citibank and Shell among others. In the global aspect, internet-based companies such as Facebook, Amazon.com, google and Microsoft, have adopted the strategic human resource (Armstrong & Armstrong, 2011). In Australia, the several organizations have deployed the use of Strategic Human resource management in manufacturing and service provision companies. The industries and organizations have realized the benefits of the deploying the strategy due to the realized improvement. The small and medium enterprises in Australia have also recognized the importance of relating SHRM with the general operation of the organization (Boxall & Purcell, 2011). The small and medium organizations promote the practice of SHRM to the continuous investment in training, staff retention and awarding workers through dividend payments. The strategy is being applied in both private and public sectors organizations since the effect shaves been realized to be providing quality process and organizational performance. Therefore, in Australia, strategic human resource management plays an important role in facilitating the growth, development and maintaining a quality culture in the country economy (Spraggon & Bodolica, 2014). In America, Europe, and Asian countries, the common perception is that strategic human resource management is apprehensive with managing the labor force by developing features and strategies promote the leadership development and global mindset in the human resource management system (Perkins, Shortland & Perkins, 2006). In India, the role of SHRM is realized to be containing some leadership elements that are good for the success of the organization. The findings further reveal that human resource management and employees ability to learn are related and contribute to the wellbeing of the organization management system. However, according to study conducted by Rao et al. 2002, strategic human resource management cannot be said to be similar to personal management when it comes to delivering on the responsibilities. SHRM in Practice The functionality of SHRM is to link the management of employees with the help achieve the business or the goals and objectives of an organization. Practicing SHRM system can make a positive improvement in an organization towards improvement in productivity, work quality, development and job satisfaction. Therefore, the application if strategic human resource management take part of the company policy formulation and activities that help achieve organization goals (Armstrong & Armstrong, 2011). The strategic practice is carried out considering the external and internal work environment and is vertically aligned to the organization goals. Many industries and organization are currently integrating the management system with SHRM in order to develop personnel programs and creating consistent interrelationships to help in the implementation of policies and code of business conduct (Boxall & Purcell, 2011). Strategic planning in human Resource is efficient in the implementation of the horizontal and vertical planning in the organization. The planning is appropriate for setting company strategies towards developing business plans and operational strategies that make every department within the organization to deliver on their responsibilities. The application strategic human resource management can be a long-term or short-term project with the strategy taking the approach of descriptive, dynamic, static or prescriptive (Armstrong, 2008). Depending on the strategy, that an organization has taken, all the approaches are expected to improve the performance of the organization. Investigations have determined a conclusion that the successful companies are adopting SHRM that has played a significant role in improving the business performance. Despite the wide spread adoption, the effectiveness of SHRM all depend on the care and skills involved in the implementation of the strategy. 3. SHRM in UAE Global economic progress that comes with foreign concepts and practices, facilitated by technological development has brought several changes in the United Arab Emirates. The developments come with numerous competitions in the human resource management (HRM) sector, with many organizations having a challenge of retaining staffs (Spraggon & Bodolica, 2014). The challenge of staff retention does not only affect the UAEs, but it can be escalated to the global challenge of various management and top officials facing feeling the impact of losing potential employees due to market competition. However, Organizations in the UAE are well informed about the challenges hence are formulating strategic human resource management that will help retain committed and most talented staffs that can contribute to the success of the various organizations (Perkins, Shortland & Perkins, 2006). United Arabs Emirates is the most important economic hub in Middle East hence has experienced rapid growth in the global economy. The region is faced with the influx of human resource management practices, both local and international experts and influence of organization cultures. Other findings from the Indian perspective reveal that HRM system is still influenced by political factors, cultural, social and economic elements of the existing human resource and organization policies (Armstrong & Armstrong, 2011). The liberation of Asian economy is one of the contributing factors that are advantageous to the human resource management and practices. The economic freedom has since been making many improvements in terms of resource management and progressive growth in the economic world. 4. Compare SHRM in UAE and other Regions (US, Europe, China) SHRM is widely used in the UAE education and in the trade sector to enable the growth and development in the region. The strategy has provided an excellent platform for leadership, sharing of organization best practices and establishing professionalism in the Human resource community (Perkins, Shortland & Perkins, 2006). Through continuous learning and collaboration in the UAE Human Resource sectors, numerous advancement have been realized in the way people are managed and made to work towards meeting the institution and organization goals and objectives. The human resource society has laid a foundation on improving the Human Resource Management through collaborative communication, research and development, HR academic institutions and consultancy services for individuals and businesses (Boxall & Purcell, 2011). Education institutions in the UAE have been for a long time experience management challenges in an attempt to provide higher education. The sector had challenges in providing education standards that would be recognized internationally and meet the global stands. Considering the studies conducted in the region, it was revealed that the learning institutions did not give a change to the significance of human resource as an important element of management. The research also revealed that the existing HR only focused on the aspect of administration with clear classification of the HR roles and responsibilities (Spraggon & Bodolica, 2014). The introduction of SHRM in the market created a competitive strategy whereby, considerable number of management heads had to adopt the strategy to compete with other management team. According to Yeung et al. (2008), case on Asia HRM, Strategic Human Resource management was adopted in the Asian and European region in time. The early adoption revealed tremendous changes in the human management sector. The growth of Asian continent is promoted by globalization, strategic economic reforms and business development that required an effective human resource management system that would take care of the advanced practices. In the United States and Asia, the modification of Human Resource management to Strategic human Resource management was widely influenced by the social forces and the domestic norms at the workplace (Armstrong, 2008). In China, that the practice of human resource management was not just in the same position to those practices in US and Asia. The international pressures and the collective bargaining power of the United States and Europe played a role in motivating the Chinese to adopt the strategic human resource management in the administration system. Transforming from the usual HRM to SHRM is a process, and it took China to implement the strategy quickly as a tool to embrace integrity and enhance organizational performance. Some of the contributing challenges to the implementation of SHRM in china was brought about by the economic, and socio-political factors. The nation has to put new policies in place to provide proper guidelines on how the transition would take place in the public and private sectors (Goldfinch & Wallis, 2009). The regions, including China, Asia, Europe and United States that have adopted the SHRM have seen the great improvement in managing people and service delivery. The development in the HR responsibilities in China, western countries and Asia has succeeded in organization management and formulating strategic organization plan. Just like the UAE, other nations that have adopted the strategy have realized organizational dependency and prolonged partnership with the employees who are ready to deliver good results for the organizations. However, in United Kingdom, UAE, and Australia there are still restrictions to adopting the SHRM system because there are still independent organizations that are still independent (Armstrong & Armstrong, 2011). These organizations are not facing competition hence are still not ready to adopt the changes due to fear or expenditures that come with the implementation of the strategy. 5. Conclusion In the UAE, little is still known concerning the difference between project management and Strategic Human Resource management systems that can be applied to improving the management techniques. However, a tremendous progress has been seen in the region with the existing multinational companies adopting the well-formulated SHRM system. The strategy is applicable to every organization and learning institutions, where it is widely applied in the management of these institutions. The adoption of strategic human resource in UAE has develop an appreciated leadership and well-organized management skills in the managing learning institutions and the wider business hub. The strategy has also contributed to the formulation of organizational policies and chronological orders that is important in managing successful organizations that are established in Abu Dhabi (Goldfinch & Wallis, 2009). Studies conducted have revealed that the UAE region have realized the functionality and the strategic alignment of SHRM in managing a prosperous business. The current trend has seen many organizations moving towards the HR strategy because of the clear policies and stability that has been seen in the originations that adopted the strategy in the first place (Armstrong, 2008). The implementation of the strategy can be demanding but with a good commitment by the management and the staff towards the project, the team can take the ownership of implementing the strategy through trainings and providing information. To conclude, strategic human resource management in the UAE is aimed at making a continuous improvement and development of the business and learning institutions (Boxall & Purcell, 2011). The region is making appropriate configuration in the relevant leadership techniques with consideration to human capital and organization requirements. Despite all these realized changes, there is a need to conduct further research to improve the general human resource management strategies as a tool for decision-making and empowering employees. References Armstrong, M. (2008), Strategic Human Resource Management (SHRM): A guide to action. London: Kogan Page Armstrong, M., & Armstrong, M. (2011)., Armstrong’s Handbook of Strategic Human Resource Management. London: Kogan Page Boxall, P. F., & Purcell, J. (2011)., Strategy and Human Resource Management. Hound mills, Basingstoke, Hampshire: Palgrave Macmillan. Goldfinch, S., & Wallis, J. (2009). International Handbook of Public Management Reform. Cheltenham: Edward Elgar Perkins, S., Shortland, S.,& Perkins, S., (2006). Strategic International Human Resource Management: Choices and Consequences in Multinational People Management. London: Kogan Page Spraggon, M.,& Bodolica, V. (2014). Managing Organizations in the United Arab Emirates: Dynamic Characteristics and Key Economic Developments. Thomson/South-Western Cengage Learning. Read More