Abstract
The
HR practice in the UAE is plagued with challenges in the management of a
diverse and dynamic work force drawn from both nationals and foreign workers.
Using Alhosn Gas as a case study, an analysis of the HR practice in the UAE was
performed and possible challenges derived from this analysis. In the
performance of the research, Mr. Sami al Zaabi HR Director at Alhosn Gas
Company was interviewed to derive some insight on the research topic. According
to this research, the two major challenges that were derived were management of
a multicultural work force, and the issue of emiratization. The use of
contractual agreements between the employee and the employers was also a
challenge due to the poor legal structures to support an employee, especially
foreign workers in the event of work place maltreatment. Future challenges to
the HR practice in the UAE was identified as managing the influence of
globalization in the work place, and the stringent overreliance on religion and
cultural inclinations among the country’s populace.
Challenges and Future of HR Function in the UAE
Section I
Overview of the Company
Question:
How
was the Alhosn Gas company founded, what type of business is it involved in and
has much has it grown since its founding?
Mr.
Sami al Zaabi:
Alhosn Gas is a company that was founded in 2011 and is based in Abu
Dhabi. It is a subsidiary of the Abu Dhabi gas & oil development company
(ADHOC) and was founded as a means of the company refining its operations and
service delivery. Its main field of business is in the production of gas and
development of sour gas reservoirs in the Shah region (Al Hosn Gas,Abu Dhabi Gas Development Ltd).
The company was founded to act as a drilling company and manage to complete
projects for oil well drilling operations. In the four years of its existence,
it has managed to dig more than 17 wells and plans are already underway to
drill more wells. Therefore, the company can be considered as mainly not fully
grown since its operations and existence is still in the project phase of
drilling the wells. This means that it is yet to generate any commercial value
for the products it generates from the oil wells.
Question:At
this particular point in time, what is the capacity of production of this
company and where and how do you obtain the labor force to achieve that level of
production?
Mr.
Sami al Zaabi: Since its inception, the company has
grown and dug several oil wells. As of December 2013, it had 1067 employees,
410 of which were UAE nationals (Al Hosn Gas, Abu Dhabi Gas Development Ltd).
This is a positive move since it is in alignment with the government’s position
on emiratization where 41% of its employees are nationals, and the company plans
to increase this figure to 50% by 2015 (Al Hosn Gas, Abu Dhabi Gas Development Ltd).
The employees of the company are mainly drawn from foreign workers, as the
country does not have enough personnel to fill the specialized job segment of
the company. Additionally, majority of the UAE nationals do not prefer working
in the private sector since their packages are not as attractive as those for
government jobs are. This could be one of the major reasons for the minimal
number of UAE nationals acting and performing as employees in the company.
HR in the UAE
The Issue of Emiratization
Question:As
with most other countries, there is the problem of brain drain where skill
people choose to look for opportunities outside their countries. This can have a
negative effect on the country. Is there anything your company is doing to
solve this problem? If yes, how is it tackling it?
Mr.
Sami al Zaabi: One of the prime principles guiding HR
practice in UAE is the need to employ more nationals into the companies. This
is because statistics indicate that only a meager 45% of the UAE labor force is
drawn from the UAE nationals. Therefore, the HR professionals are integrating
strategies and methodologies to promote a culture of acceptability and passion
for UAE nationals to join the labor work force. In Alhosn Gas, the HR
department has integrated programs geared towards promoting emiratization by
offering employment to fresh UAE graduates, retaining current employees through
benefits and remuneration packages, and offering education and training to
employees on improving their knowledge and skills. Additionally, the HR
department is mandated by the company to support its employees seeking further
education to ensure that the company retains the best talent.
Problem with Contract Agreement and
Management
Question:It
is evident that there are a lot of foreign workers in the UAE, and inside your
company too, I suppose. Being that they are foreign laborers and that they are
also many in number, contract agreement and management can be a big challenge.
How does your company confront the challenge?
Mr.
Sami al Zaabi: Due to the large number of foreign
workers in the UAE, the HR personnel is faced with the stiff challenge of
maintaining contract agreements between the company and its employees.
According to the agreement, terms, and conditions set under the UAE labor laws,
it is paramount that an employer ensures that the employee adheres to the full
terms and conditions of the contract. A contravention of this contract cannot
result in dismissal or suspension from work. However, employees tend to feel
marginalized or victimized once their contract is terminated or cancelled due
to flimsy reasons. Since the law does not have enough restrictions and
protection measures against such employees, it is the role of the HR
professionals to act as mediators and ensure that the company’s needs are met,
while maintaining the employees’ rights and terms of contract.
Question:Mr.
Sami al Zaabi, being the HR of such a big company, and considering that such a
scale also means an overwhelming labor force, are there challenges you face,
especially considering also that the government is comes in as a third player?
Mr.
Sami al Zaabi: The unique environment of HR practice
in the UAE provides an interesting avenue to perform a research and assess how
its professionals are dealing with the challenges and issues that plague the
industry. Additionally, the industry has a unique work force drawn from
different countries, as well as labor laws that enforce certain regulations to companies,
which may be considered as hostile to the employment industry. HR professionals
have a daunting task in maintaining order and labor standards for the company,
its employees, and the government regulations.
Question:
Do you think it would be worth it to research the matter? Would it be of
benefit to human resource management?
Mr.
Sami al Zaabi: A research on the subject will be
paramount to enhancing the HR practice in UAE by not only identifying the
challenges plaguing this practice, but also possible solutions to the problems.
Section II
Literature Review
Managing a Multicultural Work Force
Question:What
is the one major challenge facing the management of workforce in your company,
or rather in the UAE as a whole? It is noticeable that workers come from across
the world. Does the cultural diversity have a role in the management of your
workforce?
The
UAE is one of the major industries and economies that employ a diverse and
dynamic workforce drawn from different fields, geographical locations,
religious inclinations, gender, ethnicities, races, among others. All this
means that the work force presents a multicultural setting in the work place. Since
these multicultural work force represents approximately 55% of UAEs work force,
it is paramount that their needs be considered during the period of their
employment (Tansky
and Heneman 59).
This is one of the principle challenges facing the HR professionals in managing
a multicultural work force, while simultaneously trying to meet the needs and
requirements for government regulations such as emiratization. The latter is a
government directive to all companies and their citizens to integrate the UAE
nationals into the labor work force in the country to reduce overreliance on
foreign workers.
According to research, one of the strategies being
employed by HR professionals in dealing with a multicultural work force is the
employment and consulting with cultural experts and professionals on dealing
with people from particular cultures. For instance, there is a ban on alcohol
and tobacco use in UAE, which is a deterrent to the foreign workers that are
heavy consumers of these two drugs. Therefore, the HR practice counters this
problem by requiring that all workers sign a contract obligating them to adhere
to the terms of the contract such as not using drugs during the period of their
employment. However, the HR professionals have to ensure that the requirements
do not make the foreign workers feel caged. Therefore, regular leave periods
are granted where the workers are free to visit the city for site seeing, or go
home to visit their families.
Dealing with Contracts
The
use of contracts is also becoming an issue plaguing the HR practice. According
to government regulations, a contract between an employee and the company
should be adhered strictly. However, once a foreign worker signs the contract, some
clauses refrains the employee from seeking legal redress against the company in
the event of their dismissal or unfair work place culture being leveled on
them. This means that the HR professionals have to deal with these issues of
not only standing up for the rights of the employees, but also maintaining the
integrity and operability of the company. Therefore, this forms a logjam that
needs to be sorted out by the HR professionals.
According to research, maintaining the employee’s rights
in a hostile company is paramount due to its need to avoid legal suits or
workers striking. This hostile companies usually experience poor work output by
the employees, which could be injurious to the company’s modus operandi and
performance. Therefore, the HR professionals are mandated to ensure that this
practice is controlled and measures and policies developed to ensure that in
spite of the company’s hostile nature to its employees, there are safeguards to
ensure that the employees feel appreciated and have a sense of belonging within
the company. For instance, one research shows that using and setting up dispute
resolution committees drawn from both the company and the workers can be
instrumental in reducing cases of poor employee maltreatment. It could also act
as a means for employees to forward their grievances, which they believe the
company can address to not only meet their needs, but also improve work place
efficacy, productivity, and work output.
Government Regulations
Question:
how is the HR department dealing with government regulations?
The
government regulations in the UAE also protect the employer-employee
relationship once the latter signs a contract. Under the law, once the employer
has instituted a contract, it is their prerogative to deal with the employee as
they consider fit when executing the needs of the company, as long as the work
is cognizant with the human rights and parts of the labor laws. In some cases,
especially in the manufacturing and industries sector employees are forced to
work for 14 hours per day, though overtime is paid. This is in contravention
with the government law that requires that the country’s labor should only work
for eight hours per day, and 48 hours per week with the necessary compensations
paid for overtime work. In contrast, private employment where contracts have
been signed, the workers may work continuously for six days and 14 hours per
day, which is an unfair human practice.
According to Mr. Sami Al Zaabi HR Director at Alhosn Gas
Company, this scenario is replicated at Alhosn Gas where the pressures of adhering
to certain deadlines have forced the company to institute measures where
workers work overtime. However, the company has developed a strict time
guideline and leave periods where workers are compensated for the long hours
not only with better remuneration packages, but also with better leave periods
to ensure that they rest and recover from the long working hours. According to
research, the HR professionals are mandated to develop policies, systems, and
structures to promote a culture of employee protection of their labor and human
rights.
International Laws
Question:
how is the HR department dealing with the changing global trends of common
international relations and adherence to human rights activism?
Another
issue plaguing the HR practice in the UAE is the need to adhere to international
laws and standards that advocate for gender equality. In the UAE, majority of
women are not supposed to work or perform other activities considered as normal
in other countries. This limits their employment opportunities and other basic
rights due to religious and cultural inclinations. Therefore, the HR
professionals are mandated to strike a balance between adhering to
international human rights advocacy, and managing the needs of the
organization, the country, the religion of the country, and their cultural
inclinations.
According
to research, since the HR professionals have measly powers to effect any change
to the rules or laws of the land, their only avenue to countering this issue is
through public and organizational sensitization. This should be crafted in a
manner that ensures that its content is educative, rather than discriminative,
offensive, or prejudicial (Tansky
and Heneman 322).
For instance, Mr. Sami Al Zaabi HR Director at Alhosn Gas Company believes that
the HR professionals could provide the company with a blueprint on favorable
positions for women and the value it would add to the company such as improving
on the emiratization drive. However, in spite of this positivity in promoting
gender rights, the HR professionals would still be faced with the challenge of
finding favorable candidates with the necessary educational and skill
experience to fill any of the positions being advocated. Therefore, this would
serve as one of the future challenge for the HR practice.
Section III
Methodology
In
the performance of this research, the methodology employed was a blend of
quantitative and qualitative research. This was paramount due to the need to
acquire a wide scope of information on the research. The quantitative research methodology
employed was interviews and content analysis. The interview was conducted on Mr.
Sami Al Zaabi HR Director at Alhosn Gas Company. The content analysis was
essential to assess the large pool of information and derive quality data that
is pertinent to the research. The qualitative research methodologies employed
were online research for eBooks, journals, and newspaper articles, as well as
the online access to the Alhosn Gas website from which valuable data and
information were retrieved (Storey
266).
The
online eBooks and journals were important for retrieving information on other
researches that have a high similarity index to my research, as well as their
outcomes, methodologies and discussions. The importance of the use of journals
was informed by the fact that both professional and academic experts accredit
them. For instance, the online eBooks and journals had a wide scope of
information on general HR practices, as well as those being used in the UAE.
This was important since information derived from newspapers and magazines were
not accredited as to their authenticity and accuracy. They only provided
keywords for use when performing the research.
Section IV
Outcomes of the Research
The results revealed that the HR profession in the UAE is
marred with numerous challenges in striking a balance between meeting the needs
of the employees, government regulations, company regulations and standards, and
religious and cultural inclinations of the country. Therefore, Mr. Sami Al Zaabi
HR Director at Alhosn Gas Company believes that better strategies need to be
employed and implemented to enhance their work output and employee management.
A general observation was that the future of the HR practice in the UAE was
plagued with major challenges as the practice struggles to adapt to the
changing global trends, as well as the country’s future goals.
Another
discovery of the research was the stringent labor laws being used by the
government in the management of the country’s labor force. According to the
data and information retrieved, the government has enacted measures to entice
UAE nationals to join the labor force by providing a policy framework where the
government uses both laws and public relations to promote the emiratization
ideology. Another outcome of the research was the poor protection o foreign
workers in the country by the government due to the laxity in laws aimed at
achieving this objective. Therefore, the HR professionals believe that it their
duty to enact laws, policies, systems, and structures to ensure that the rights
and needs of the employees are upheld and promoted, respectively.
Section V
Discussion of the Research Outcomes
The
research showed that the HR practice in UAE operates in a very intricate and
effectual environment. Accordingly, these HR professionals have had to change
their modus operandi and tap into the core teachings of their education to
propose, compose, formulate, design, and implement strategies and policies that
would be essential in meeting the needs of their respective organizations (Storey 114).
From the interviews gathered, it was evident that the HR professionals could be
considered as useful professionals for a case study in HR management in a
multicultural world with stringent religious and cultural inclinations that are
not representative of the global trends.
Enactment of Organizational Policies
Some
of the strategies that should be employed to enhance the HR practice are the
enactment of organizational policies that support some of the challenges and
proposals of the HR practice being suggested. This would be paramount since it
is vital that as the HR professionals try to adapt to the global trends,
organizations should also be adaptive to changes in the global business and
management trends. One of the strategies being employed by Mr. Sami Al Zaabi HR
Director at Alhosn Gas Company is the education and training of its employees
on not only knowledge and skill development, but also on strategies and means
of improving their work output. For instance, it provides workers with
voluntary and compulsory seminars aimed at improving the employee’s social,
psychological, financial, and physiological welfare.
Use of Performance Appraisals
One
of the new approaches to the field of HR management is the use of performance
appraisals to assess the work output of employees, as well as their contribution
and importance in the organization. In the UAE, this strategy is important
since the HR professionals can use this strategy to root out employees that are
not performing their duties and responsibilities effectively. According to this
strategy, majority of workers could face sacking if they do not conform to
organizational standards. This strategy, while effective, could also be
disastrous to the UAE labor force since majority of the employees being
integrated into private companies have zero to minimal experience in their
field of profession. Therefore, in spite of the promotion of the emiratization
program of hiring UAE nationals, their lack of knowledge, skills and experience
could act as an impediment under these performance appraisals. This is because
some companies recommend that the appraisals be conducted biannually, which
could be insufficient to the new UAE employees to have acquired the necessary
skills, knowledge, and competencies to perform assigned duties and tasks.
Section VI
Final Purport
The development of the research resulted in the
generation of several pertinent outcomes that affect the HR practice in the
UAE. Using Alhosn Gas as a case study of the HR practice in the UAE, major challenges,
and issues were drawn from this company. Foremost, the issue of dealing with a
multicultural work force was a challenge to the HR professionals to maintain
the needs, issues, and requirements presented by this unique workforce (Tansky and Heneman
212). Another challenge derived was the need for emiratization of its work
force to ensure more nationals join, without compromising the organizational
systems, structures, goals, and objectives. This is further complicated by the need
to educate and train these employees on work ethics, output, productivity,
skills, and knowledge, which could be arduous and expensive for the company to
manage and implement.
There
was also a logjam presented due to the government laws and regulations regarding
the labor force protection in the country. According to some HR professionals,
these laws and regulations set by the government were acting as impediments to
the promotion of good working conditions for its workers. The contractual
agreements signed between the employers and employees are acting as problematic
when promoting the rights and needs of the workers, while maintaining the organization’s
modus operandi, systems, and structures. Therefore, this research provides
avenues and solutions to these issues plaguing HR practice in the UAE, and
gives possible strategies to counter strategies to sort them. The use of Alhosn
Gas as a case study was also paramount in the assessment of some of the HR
practices that they have used to ensure that contractual agreements are met,
and employee’s rights are upheld. Future issues in HR practice in the UAE were
also analyzed and possible solutions given only to the current issues plaguing
the industry. In future research, focus could be made on the effect of emiratization
on HR practice, or the challenges of managing a multicultural work force.
Works Cited
Al Hosn Gas. Emiratization, training and development, and Why Alhosn Gas. Abu Dhabi Gas Development Ltd. 2015. Web.
Storey,
John. (Ed.). Human Resource Management: A Critical Text. London, UK: Cengage Learning EMEA.
2007. Print.
Tansky, W. Judith and Heneman, L. Robert (Ed.). Human Resource Strategies for the High Growth Entrepreneurial Firm (Hc). New York, NY: Information Age Publishing. 2006. Print.
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