Three Central Issues in HRM
Global Workforce
The UAE economy was earlier driven by oil sector majorly but now the development of non-oil sectors and its contribution in country’s GDP has strengthen the economy of the country. Its emerging construction and real estate business has attracted foreign investors and expatriate workers from around the globe. These workers come majorly from Asia, some from Europe and South America. The major HR issue arises before HR managers to manage such a diverse workforce in the company. This issue is important because it can create communication gap between the employee and employer. Availability of such a diverse workforce in the region provides employers options for their recruitment process.
Nationalization
The Nationalization program of the country is called Emiratization. Nationalization policies of a country are focused on the development of the nationals. The UAE government is concerned about the ratio of UAE nationals in private and public sectors and has a willing to increase the no. of national workers in the private sector and balance the ratio. So the UAE has fixed quota in each sector for the UAE nationals. Multinational Companies working in UAE have to recruit nationals even if they are not enough qualified for the post.
Negative Stereotype UAE Nationals
The UAE nationals do not put much effort for the inconspicuous opportunities of employment that creates negative stereotype of them. UAE nationals are not motivated and dedicated enough for the rigorous jobs in private sector. They are not regular and punctual at work and get loose interest in the job too rapidly and leave jobs in 6-7 months. But some companies have to pay these under performers because of the Emiratization quota compelled by the government.
Global Workforce
Managing the global workforce is a key issue for HRM in UAE. As the 90% of the workforce in UAE comprise of the people from other countries thus they have their own culture, language, and values. The UAE has become a business hub for many multinationals companies so expatriate workers get attracted to UAE. Cultural differences are a big hurdle in the communication channel between the employees and the management level. So to align the diverse and global workforce with the objectives of the company this issue has to be discussed thoroughly. The global workforce has helped in establishing diverse work environment in the UAE corporate culture. Emiratization can be an alternate of the problem of workforce diversity.
HRM Case Study Review
Summary
The article entitled The Impact of Human Resource Management on Organizational Performance: Progress and Prospects written by Brian Becker and Barry Gerhart portrays the impact of Human Resources as strategic advantage in the competitive environment. HR system of an organization is a core competency that cannot be simulated by a competitive firm. The HR strategies have additive impact on the performance of the organization. The term ‘best HR practice’ cannot be used unanimously for any system. Sometimes the pay variable has much importance and in other cases the less importance than the variable grievance procedure. It can be clarified in a better manner if it is applied for policies and their effects simultaneously. A best practice effect is termed as an element of the HR architecture. The HR practices within an organization must be parallel to the HR system architecture to increase the performance of the company. Two companies may practice different HR policies but their HR system architecture may be similar. An empirical study from a high performing HR system show the improvement in value associated with the HR system of the firm. In the corporate world performance based measures of the market are conceived as broader than periodic accounting and books based measures. These performance based measures are used for empirical studies for the relation between company’s fiscal performance and it HR. Different sets of HR practices of an organization may be effect different variables of company’s market values like profitability or growth. The implementation of HR systems may significantly affect the performance of the organization. Market value of a company can be affected from $1500 to $4500 per employee and even the survival of a new company by 22%. Retention of the HR is an important source of value for an organization. So a cost centered part of the HR system in any do exists. In this study the major point of attraction and focus is the HR system not the HR functions of an organization.
Evaluation
The theories discussed in the article are logically applicable in a real scenario and may bestow for the organization as they are justified by various empirical studies done by many renowned researchers. The content in the article is relevant to the title and the research studies discussed. The hypothesis of the study is based on past researches done in the field of Human Resources but the theory has to be tested by the managers in companies. The measures taken into account are appropriate for the study. Some theories and empirical studies do not have any impact on the findings of the article. The major issues are clear from the study as it is clearly written in a proper logical format.
Content Related to the UAE
The content of the study is related to the UAE corporate world to a certain extent. HR management is a key issue in the diverse UAE market where companies have options for workforce. It is company’s discretion for adopting certain set of HR practices for its organizational performance. The theories in the article can be applied in the UAE organizations. The competition level in the country is very high so it would be better for a company to develop this invisible asset for the organization.