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The project would help in determining the impact of the emirate culture on the international HRM. The study will aim to get deep understanding of the international HRM, its role in organizations with respect to the UAE. This would be helpful to gain insights about the flaws and their solutions in the international HRM system. Eventually, the proposed alternatives can be adopted to improve the impact of Emirati culture on International Human Resource Management.
International Human Resource Management:
Human Resources Management is a process that encompasses the management of people in organizations in well structured and systematic manner. Similarly, the International Human Resource Management refers to the implementation of the HRM strategies and policies in multinational organizations in order to manage diverse culture and to sustain its own culture. In multinational organizations, culture is found to be highly structured and diverse in terms of language, region and tradition along with the culture which shape business environment that is very unique and effective. The IHRM is responsible for managing the current situations and enhancing overall performance of the organizations.
The culture impacts positively in the process of development of HRM. The Emirati culture has historically been used to justify and legitimize practices, behaviors and traditions of organizations in implementing HRM. The UAE is a country which has diverse workforce in organizations and in order to sustain standardized international HRM, the impact of culture plays a crucial role as emirates culture includes characteristics beyond ethnicity.
Impact of Region in Managing IHRM:
This source provides an overview of contribution of the political set up, culture, economic, legal and socio economic development in personalizing the functions of HRM in the Middle East.
"Managing Human Resources in the Middle East" explores that the environment of organizations and influence of the region is the vital factor which persuades HRM functions of organizations (Pawan S. Budhwar, 2006).This statement supports the argument that Emirati culture has major impact on the international HRM by illustrating the current situation in the UAE.
The distinct changes in the management structure of organizations have been observed in the region of the UAE. The impact of socio-economic cultural environment on the international HRM is a perfect example which explores the influence of the region in personalizing the functions of the management of organizations. The UAE is a Muslim culture based country and its social life is very much influenced by the Islamic culture and Arab is the declared official language of the country. The inherited Arab culture, customs, moral values and traditions plays influencing role in the routine life of the UAE citizens (Pawan S. Budhwar, 2006).
There are six layer of culture that influences management of organizations in the United Arab Emirates which are regional, social class, organizational culture, national, gender and generation in which HRM of organizations is much influenced by the regional layer (Pawan S. Budhwar, 2006).The major regional factor that influences the development of the HRM is to develop the people. This factor leads to establishment of the law of International HRM that focuses on the development of individuals within the organizations (Pawan S. Budhwar, 2006). It has been explored from the literature that the Emirati culture emphasized on the development of individuals which is a crucial factor implemented in core functions of HRM of organizations. Therefore, the Emirati culture has major impact on the development of international HRM in organizations.
Impact of Culture in HRM:
This source represents an overview of GCC countries, reasons of their dependency on the expatriate workforce and the challenges faced by the expatriates workforce in GCC countries and also suggest facilitating adjustment of expatriate workers.
Since the last six decades, the dependency on expatriate workforce of Gulf Corporation Council countries is constantly increasing and majority of the private sectors have expatriates workforce in organizations (Naithani, 2010). The GCC countries make several attempts in order to localize the workforce through their workforce nationalization programs but it was unable to obtain effective result (Naithani, 2010). This approach helps us to understand the impact of GCC culture in the management of the organizations which is faced by the expatriates. This supports our argument and would help to understand the impact of culture in implementing international HRM in organizations.
The expatriates faces several challenges in Gulf Corporation Council countries such as feeble labor law, working under hazardous condition, poor living condition, heavy house rent, religion discrimination, salary bias and gender bias. In order to enhance social and cultural interaction between the expatriates and local employee's the UAE government needs to implement several programs (Naithani, 2010). As the international HRM management laws and policies are structured on the basis of culture of the UAE in organizations. This reveal that the working policies of GCC countries and management strategies are much affected by culture of their countries and thus supports to the assertion that the international HRM are much affected by the Emirati culture.
Impact of Assimilative Strategy in Implementing HRM:
This source is conducted by multi method approach which combines data from more than four hundred workers. It is an attempt to compare view of the UAE workplace experience from native official and non native workers and favorably provides general view toward diversity in the workplace.
The United Arab Emirates has one of the largest net migrations rate and has number of workers from different countries that follows different culture of their nation (Al-Jenaibi, 2012). This has resulted in the strong interaction of the UAE with people of diverse custom, culture, language and ethnic background. Therefore, effective management of diversity is the concern of priority for many organizations in the UAE (Al-Jenaibi, 2012). In order to manage this diversity organizations use to implement several policies under which assimilative strategy is an effective strategy that many of the organizations have adopted. The UAE workforce is dominated by the foreign workforce and management of the diversity is found to be assimilative in nature. According to that, diverse workforce requires to adopt the culture of the organization beyond their national cultures and traditions. This factor supports the statement that Emirati culture has significant impact on the implementation of the international HRM.
In the UAE, to hire new employees the most common approach is assimilation, in which employees are expected to learn beyond national culture to establish a common ground. The aspects of national culture are even not considered in the evolution of management strategies of organizations. Therefore, most of the organizations are facing challenges in managing diversity among workforce (Al-Jenaibi, 2012).
The strategy of assimilation requires employees to adopt the UAE culture while ignoring other cultural variants and advancement strategies (Al-Jenaibi, 2012). The only concern about intercultural communication is that workers have to learn the dominant language apart from the culture of the UAE, values, norms so as to adopt intercultural communication in the organization (Al-Jenaibi, 2012). Hence, UAE is an Islamic country and its declared official language is Arab language which is a vital part of organizations and also a part of the international HRM that is implemented in organizations. Hence, these statements support the thesis statement of the project that Emirati culture affects the human resource management of international employees in the organization.
Impact of Policies and Strategies in HRM:
"International Human Resource Management: Policies and Practices for Multinational Enterprises" explores the Human Resource Management at international platform that ensures the development of organizational structure and country's growth by offering platform to the international employees. Policies and practices of HRM are designed to assist labor laws, international joint ventures, and cross border mergers. It comprises of provisions that are specifically made for human rights in organization which enables compensation, health and safety benefits although they formulate training and development programs also (Dennis R. Briscode, 1995).
Human resource policies and practices at international platform are structured in order to provide each aspects of HR such as planning, forecasting and outlined organizational strategies. These are formulated for the betterment and rights of employees. This not only emphasized on the human being but also incorporated strategies for global business (Dennis R. Briscode, 1995).
Environment, nature and culture of respective country have impact on business as well as employees who are working in such environment. Company's culture distinguishes from the nation's culture which also impacted on the global employees (Dennis R. Briscode, 1995). Human resource policies ensures the provision related to the benefits provided by the organization that includes tax procedure, compensation benefits, planning, organizing, programs for training and development that facilitates organization as well as employees for the improved performance.
International HR is different from Domestic HR. International HR consists of staffing, planning, strategies development and many operation with global people (Dennis R. Briscode, 1995). In the rapidly changing world, organization needs to change its strategies and policies in order to cope up with this competitive world. An Argument suggests that for establishing business at international platform, it encompasses of several challenges that affects the functioning of HR and operations in business.
Impact of Cross Cultural Training:
The source considers the experience of more than hundred project managers working in the UAE, their experience, their requirements and their training to demonstrate the dimensions of the cultural business environment.
"Cross Cultural Training: The Importance of Investing in People" explore that "The cross cultural training facilitates positive relationship to the expatriates and ability to adapt to new cultural environment. It also emphasized that international company need to focus on the concept of investing in employees in order to achieve greatest and most effective returns (Sabina Cerimagic, 2011)." This statement supports the argument that Emirati culture has major impact on the international HRM by illustrating the current situation in the UAE.
In UAE, the changes have been observed in the relationship among domestic employees and international employees. The cross cultural training programs in the organization facilitate a platform where expatriates can easily adapt new organizational and countries culture. Cross cultural training serves opportunities to the organizational employees for the contribution and development of strong relationship environment in the organization. It analyzed the cultural differences of the organization as well as countries and also examines its implications on relationship.
As UAE have potential for future growth that is why major international companies have been established here for setting up their business in order to grow their market. However there are cultural differences between UAE and other nations which made certain differences. It lights on certain aspects related to the organization such as unfamiliarity between social culture and business climate, distinct communication language. Hence, Cross cultural training is the key that facilitates faster adjustment of culture and employees in the organization and it is mandatory because UAE is all about maintaining and building relationship. It is also observed that by investing more on HR as an asset, an organization can earn more return because these investments results into an effective and developed employee.
Impact of National Culture on HRM:
"National Culture Influence on Management Practices in the Construction Industry of Unified Arab Emirates" explores the difference between the environments and culture that is considered as a significant element to differentiate management system. It emphasized on the organizational, national culture and management practices in the UAE (Abdulrahman Alyousif, 2010). It is analyzed that managerial behaviors, values, approaches and their efficiency are different from nations to nations. National culture has influenced on the management practices in the enterprise, in this regard it emphasized on the development of management practices model in order to determine the degree of national culture influence.
In the UAE, some of the construction companies are adopting mixed style of management that resulted into an integration and settlement process of two factors such as internal that comprises of human factor that influenced by Islamic and national culture and its traditional values and customs and the other one is external factor which includes necessities of advanced technology, globalization, expatriate culture and financial issues. All these characteristics of management style concluded that Islam play a significant role in life of the UAEs' people. It implies that Islam has strong influence on overall UAE which is also interrelated with national culture. Both of these factors influenced the organizational methods to be adopted in the management practices.
The study shows the culture and its unique societal factors continuously support various organizational and cultural models. These models and practices helps in understanding behavior, culture, society and its implications on people and also enhance individual's performances as well as organizations performance. Hence, it is analyzed that adopting a mixed approach in the management practices would able to enhance the implementation of International Human Resource Management in different organizations in the UAE.
The UAE culture is known for its informal, good manner and relaxed behavior and has strong vertical hierarchy. Arabs are trustworthy by nature and are strongly influenced by the values of their culture which they implemented in their organizations. The management and employees are expected to follow the standardized structure and policies of organizations that are influenced by the Emirati culture and hence, the Emirati culture has strong impact in order to implement International HRM.
This study would be helpful for Understanding International HRM. Its role and functions influence of Emirati culture in international HRM, managing diversity in organizations and overview of policies and practices of the international HRM.