Indicate the implication of the article for Saudi Managers - Essay Example

The effect of regulations on HRM: private sector firms in Saudi Arabia by Kamel Mellahi The implication of the article for Saudi Managers The Human Resource Management (HRM) function has been shaped by the government of Saudi Arabia over the past few years in its private sector by means of a comprehensive legal framework. The article “explores the implications of the emerging legal framework for HRM in the private sector, and evaluates the adequacy of changing HRM practices through laws and regulations.

The paper discusses the implications of the research findings for private sector managers and policy makers.”The key characteristics of the emerging legal framework are stated in these objectives: “to replace foreign workers with competent Saudis, create more jobs for Saudis in the private sector, regulate the management of both local and foreign workers, and improve the welfare of Saudi and expatriates working in the private sector.” These are the emerging legal implications for Saudi managers.

Specifically, the new legal requirements are as follows:To achieve 75% SaudizationProvide female workers with four weeks maternity leave, and six weeks after childbirthPay 150% of the regular wage for overtime workGrant all workers a minimum annual vacation of 15 daysArrange for babysitters to take care of children under six for employers employing at least 50 female workersProvide employees with 21 days annual leave as a minimumThus, Saudi managers will have to ensure that their HRM practices comply with these laws.

In particular, vulnerable and endow workers have been granted basic legal rights concerning annual leave, health and safety precautions, maximum working hours, safe working environment, and for females, maternity leave. It will be the onus of the managers to guarantee that these basic legal rights are provided in the workplace. It is suggested that in Saudi Arabia “laws are often partially enforced and inequitably applied.” But, the government has laid out these laws to promote welfare so they should be implemented by all organizations to which they concern.

Keeping this in mind, the government lays stress on trying “to shape the cognitive norms that guide manager’s HRM policies and practices… by influencing managers’ beliefs about what is good HRM practice and what is not.” This shows that the government has not only established the legal framework to improve working conditions, but is also attempting to influence thinking by providing justifications, guidelines and offering incentives in order to make the policies accepted more widely.

In doing so, they are also keen to point out that these new laws do not contravene the shariah due to the pervasive influence of the latter. The government wants “to create sustainable employment for the increasing number of young Saudis joining the labour market,” hence the targeting of the private sector.The ground reality is that these laws are a concern for some Saudi managers. For example, it is not only convenient but also cheaper to hire foreigners instead of local Saudis. It is said, “the Saudi youth have too much pride to swallow” so do not like to accept low status, low salary and dangerous jobs.

Therefore, manager’s are reluctant if they are forced to employ local labour whom they would find difficult to pay, are not likely to work as hard and cannot fire either. This concern is more so in the private sector because most jobs here are manual and regarded as having a low status. On the other hand, it is not surprising that the government wants to reduce unemployment of locals as well as comply with international labour standards in respect of working conditions and social protection.

The government in addition wants to clamp down on illegal HRM practices such as visa trafficking,So, Saudi managers on the whole feel the government’s attempts are nothing but heavy regulation. Respondents to a survey “saw the HRM legal framework as more of stick to be used by the government in case of non-compliance than a carrot to encourage them to redesign their HRM policies.” However, interviews suggested that in practice many firms in the private sector “are reconfiguring their HRM practices so as to meet the new legal requirements.

” According to the aforementioned survey though, it is more due to “fear of punishment and not because they believed the appropriateness of the new HRM practices.” Some even indicated that they would revert to the old practices if the government did not enforce the policy especially in unfairness persists due to the culture of wasta.It is not only the greater expected costs of compliance, but some leading contractors even fear the Labour Ministry restrictions could lead to bankruptcy as reported in Aljazeera.

There are serious doubts whether the real objective of fair treatment can really be achieved. The conditions for foreign workers are least likely to improve due mainly to authoritarian practices and the language barrier. In practice, the new laws could lead to a dual HRM model though it violates the principle of fairness. If this becomes widespread, the implications for managers could be intergroup tensions and disrupted relationships creating havoc in the workplace.Regardless, the historical implications of such laws are profound because traditionally “interference by the Saudi government in the process of managing HRM in the private sector was kept to a bare minimum.

” Thus, managers will be made responsible for changing the traditional attitudes and ushering in a new era for HRM practices in Saudi Arabia. It may take a while as the survey analysis suggests but in the long term the pressure will compel managers to accept and adopt these practices.ReferenceKamel Mellahi. () The effect of regulations on HRM: private sector firms in Saudi Arabia. The International Journal of Human Resource Management. Vol.18, No.1, January 2007, pp. 85–99. Taylor & Francis.