An exploration of Human Resource Management in Saudi Arabia

I. Introduction

  1. Explain the importance of human resource management in driving organizational performance.
  2. Highlight the importance of assessing HRM practices in Saudi Arabia.

II. Overview of the HRM landscape in Saudi Arabia

  • Evaluate the challenges facing HR managers in Saudi Arabia
    1. Overreliance on foreign labor that presents challenges in the development of local labor force
    2. Lack of diversification (overreliance on oil industry) that presents challenges in assessing workforce for emerging industries (e.g. the service industry)
    3. Disparities in employment due to culturally-entrenched gender differences and challenges in aligning HR practices in an Islam-defined work context.
    4. Social values that fail to develop a work ethics’ culture among the population
    5. Training and education programs that are not aligned to contemporary industry needs
    6. High pricing of local labor (in the public sector) that makes local labor uncompetitive in the private sector.
    7. High employee turnover especially among the individuals who have recently graduated from training institutions
    8. Assess the human resource needs of companies working in Saudi Arabia including availability of skilled labor and need for diversified skills due to government’s economy diversification projects.
  • Current efforts to address HR challenges in Saudi Arabia
    1. Legislation and government policies to promote employment of locals in the private sector (Saudization policies) including incentives such as awarding government contracts to private companies employing locals and offsetting partial cost of employing locals.
    2. Increased expenditure in education infrastructure to develop the capacity to offer training for skilled labor

III. Strategies to Enhance HR development in Saudi Arabia

  • Proactive recruitment initiatives that encourage workforce diversity to address the challenge of gender disparity
  • Development of training and development programs that encourage development of relevant skills in the workforce
    1. Partnership with education institutions to introduce targeted programs that address industry needs
    2. Providing opportunities for industry specific training to entrench global best practices that enhance competitiveness of the workforce
  • Offering opportunities for career advancement through aspects such as job redesign
  • Development of HRM strategy that is cognizant of the Islamic work ethic and Sharia law provisions; culturally-relevant HRM strategy

IV.  Conclusion

  1. Thesis re-statement – the role of HRM in Saudi Arabia
  2. Summary of main points
  3. Recommendation on the future of HRM in Saudi Arabia
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