FulltextThesis.pdf - \u201cThe Impact of Saudi Arabia\u2019s Societal Culture on Human Resource Management Practices within The Public and Private Sectors The

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Unformatted text preview: “The Impact of Saudi Arabia’s Societal Culture on Human Resource Management Practices within The Public and Private Sectors: The Case of Saudi Arabian Airlines” By Hattan Al-Sharif A thesis submitted in partial fulfillment of the requirements of Brunel University for the degree of Doctor of Philosophy School of Engineering and Design Brunel University October 2014 ! Abstract( Abstract Culture plays an integral role in shaping Human Resource Management (HRM) practices and policies within any organisation. This role is manifested through determining the norms and accepted behaviours in any given society. However, the extent of this societal cultural influence has been deemed to be greatly unexplored among researchers. Societal culture has been defined by Prasad and Babbar (2000) as the compilation of values and ideologies that are shared among an assembly of individuals in a certain country or region. Researchers have been concerned by the relationship between societal culture and HRM practices in developing countries; HRM practices are defined by Armstrong (2006) as all aspects associated with the management of people within the organisation. Therefore, this research represents an investigation of the link between Saudi Arabian societal culture and existing HRM practices within the public and private sectors. Taking into consideration elements affecting Saudi societal culture, such as changing economy and globalisation, these elements impact organisations in Saudi Arabia on two levels. First, the local level, where public organisations are gradually transforming into private organisations with a focus on profitability. Second, the global level, represented through multinational organisations adapting to societal culture elements in order to achieve success. As a result of both levels, HRM practices are changing in order to be effective. Therefore, the aim of this research is to explore this particular development and discover how Saudi societal culture impacts five specific HRM practices – highlighted following a comprehensive review of literature – and the role they play in shaping those practices. These practices are: job desirability, recruitment sources, performance appraisal, compensation and rewards, and training programmes. For the purposes of this research, a case study has been conducted in order to provide an in-depth examination. This benefits from a unique opportunity to investigate an ongoing privatisation process within a leading organisation in the Middle East. Saudi Arabian Airlines (SAA) represents an ideal candidate for this study, as the technical services section of the company, SAEI, is going through a privatisation process; this started in 2009 with expected completion in 2015. As the research data collection took place over seven weeks in 2013, this timeline allowed the examination of the transition from public i Abstract( to private sector within one organisation with the same workplace environment. Furthermore, having both sectors within the same organisation creates the possibility of making comparisons between them, as it would have been impossible to find two organisations from each sector possessing the same organisational structure, financial level and operational levels. Moreover, this study involved adopting a mixed-methods approach to incorporate qualitative and quantitative methods. This approach included semi-structured type interviews with eight senior HR managers as well as non-HR managers, and disseminating questionnaires among 200 engineers within the SAEI department. The findings and results of this case study have shown the extent to which each HRM practice interacts with Saudi societal culture. There have been HRM themes greatly influenced by the societal element, while other themes remained neutral and did not reflect any cultural influence. Furthermore, the findings produced mixed results when compared to those in the existing literature. As for the HRM practices affected by societal culture, three were affected based on the collected data: compensation and rewards, job desirability, and training programmes. These practices show clear indication they were influenced by Saudi Arabian societal culture. As for the HRM practices that remained neutral – performance appraisal and recruitment sources – they remained independent of any societal influence. However, after concluding the study and its discussion, this research provides several contributions to the field of HRM practices in Saudi Arabia on two main levels. On the theoretical level, the outcomes confirm a link between Saudi Arabian societal culture and compensation and rewards, training programmes, and job desirability practices. On the other hand, recruitment sources and performance appraisal practices are not greatly influenced. A further contribution is the up-to-date investigation of the impact that Saudi Arabian societal culture has on HRM practices, which helps to address well-known and documented gaps in the literature. As for practical contributions, one contribution is providing a first-hand review of the ongoing transition using primary and secondary research methods for SAA. This is 00considered beneficial for practitioners and multi-national corporations, as this study provides an action guide and insight into preferred HRM practices in Saudi Arabia. Further practical contribution is associated with the developed framework utilised in this research, where this particular framework can be ii Abstract( used in the future to accommodate similar privatisation processes or make comparisons with international organisations. iii Acknowledgments.. ! Acknowledgments. My sincere gratitude and appreciation goes to my supervisor Dr. Susan Grant. Who helped and guided me through every step during my PhD. I would like to thank her for her understanding and patience, which aided me immensely in concluding this thesis. Also, I would like to thank professor Kai Cheng for his support and backing throughout my study and all individuals responsible for me obtaining this PhD. It goes without saying that I am forever grateful and thankful to my father Talal, my mother Fatmah, and my brother Rakan and my sister Dima for their unconditional support and love since I have started my academic journey. They have always been there for me and to them I dedicate this thesis. ! iv! Table&of&Contents& Table&Of&Contents& Abstract!……………………………………………………………………………………………! i! Acknowledgments!…………………………………………………………………………….! iv! Abbreviations!…………………………………………………………………………………...! x! List!of!Figures!…………………………………………………………………………………...! xi! List!of!Tables!…………………………………………………………………………………….! xii! ! Chapter&1& 1.0!Introduction!………………………………………………………………………………..! 1! !!1.1!Background…………………!……………………………………………………….! 1! !!1.2!Societal!culture…………………………….……………………………………! 3! !!1.3!Human!Resource!Management…………….……………………………………! 4! !!1.4!Public!Sector………………….……………………………………………………..! 5! !!1.5!Private!Sector……………….……………………………………………………….! 7! !!1.6!Research!Aims!and!Objectives!……………………………………………………! 8! !!1.7!Thesis!Structure…………………………………………………………………………! 11! !!1.8!Research!Scope…………………………………………………………………………! 13! !!1.9!Research!Contributions………………………………………………………………! 14! !!1.10!Summary……..………………………………………………………………………! 17! ! Chapter&2& 2.0!Literature!Review!………………………………………………………………………! 20! !!2.1!Introduction………………………………..……………………………………………! 20! !!2.2!Impact!of!Societal!Culture!on!Work!Ethics!…………………………………! 20! !!2.3!Impact!of!Societal!Culture!on!HRM!Practices……..……………………….! 23! !!2.3.1!CollectivismUIndividualism!Dimension……………….……………………! 34! !!2.4!CollectivismUIndividualism!Dimension!Impact!on!HRM!Practices…! 40! !!2.4.1!Job!Desirability……………………………………………………...........................! 41! !!2.4.2!Recruitment!Sources….…………………………………………………………….! 42! !!2.4.3!Performance!Appraisal!……………………………………………………………! 46! !!2.4.4!Training!Programmes………………………………………………………………! 47! !!2.4.5!Compensation!and!Rewards..……………………………………………………! 49! !!2.5!!!Gaps!in!The!Literature………………………………………………………………! 51! ! v! Table&of&Contents& !!2.6!!!Summary…………..………………………………………………………………! 55! ! Chapter&3& 3.0!Methodology!and!Framework………………………………………………………! 57! !!3.1!Introduction!………………………………………………………………………………! 57! !!3.1.1!Use!od!a!Case!Study!…………………………………………………………………! 58! !!3.2!Philosophical!Stance………….……………………………………………………….! 59! !!3.3!Introduction!to!the!Methodology………………………………………………..! 62! !!!!3.3.1!Adoption!of!a!MixedVMethods!Approach…………………………………! 64! !!3.4!Framework……...…………………………………………………………………………! 67! !!!!3.4.1!Stage!One………………………………………………………….............................! 68! !!!!3.4.2!Stage!Two………………………………………………….…………………………..! 69! !!!!3.4.3!Stage!Three……………………………………………………………………………! 70! !!!!!!3.4.3.1!Qualitative!Data!Analysis!…………………………………………………..! 70! !!!!!!3.4.3.2!Quantitative!Data!Analysis……..…………………………………………..! 76! !!!!!!3.4.3.2.1!Validating!Quantitative!Data……..……………………………………..! 77! !!!!!!3.4.3.3!Conclusions’!Quality!Standards……..……………………………………! 80! !!3.5!Selection!of!Participants………………………………..…………………………...! 86! !!3.5.1!Sample!Size…………………………………………………..………………………….! 87! !!!!!!5.3.2!Participants..……………………………………………………………………...! 88! !!!!!!!!5.3.2.1!Human!Resource!Employees!………………………………………….! 88! !!!!!!!!5.3.2.2!NonVHuman!Resource!Employees!…………………………………! 90! !!3.6!Data!Collection!Process..………………………………..…………………………...! 92! !!!!!!3.6.1!Design…………………..………………………………..…………………………...! 92! !!!!!!!!!3.6.1.1!Interviews…………………..………………………………..………………….! 92! !!!!!!!!!3.6.1.1.1!Job!Desirability…………………..………………………………..………! 93! !!!!!!!!!3.6.1.1.2!Recruitment!Sources…………………..………………………………..! 95! !!!!!!!!!3.6.1.1.3!Performance!Appraisal…………………..…………………………! 96! !!!!!!!!!3.6.1.1.4!Compensation!and!Rewards…………………..………………………! 97! !!!!!!!!!3.6.1.1.5!Training!Programmes…………………..……………………………….! 98! !!!!!!!!!3.6.1.2!Questionnaires…………………..………………………………..…………..! 99! !!!!!!!!!3.6.1.2.1!Job!Desirability…………………..………………………………..………! 100! !!!!!!!!!3.6.1.2.2!Recruitment!Sources…………………..………………………………..! 101! ! vi! Table&of&Contents& !!!!!!!!!3.6.1.2.3!Performance!Appraisal…………………..……………………………! 101! !!!!!!!!!3.6.1.2.4!Compensation!and!Rewards…………………..………………………! 102! !!!!!!3.6.2!Data!Collection!Stages…………………..………………………………..……..! 102! !!!!!!!!!3.6.2.1!Week!One.…………………..………………………………..………………….! 102! !!!!!!!!!3.6.2.2!Week!Two.…………………..………………………………..…………………! 103! !!!!!!!!!3.6.2.3!Week!Three.…………………..………………………………..………………! 104! !!!!!!!!!3.6.2.4!Week!Four…………………..………………………………..…………………! 105! !!!!!!!!!3.6.2.5!Week!Five.…………………..………………………………..………………….! 105! !!!!!!!!!3.6.2.6!Week!Six.…………………..………………………………..………………….! 106! !!!!!!!!!3.6.2.7!Week!Seven.…………………..………………………………..………………! 106! !!!!!!!!!3.6.2.8!Data!Collection!Process!Conclusion…………..………………………! 107! !!!!!!!!!3.7!Summary………………………………………….…………..………………………! 108! ! Chapter&4& 4.0!Findings!and!Results…………………………………………………………………….! 111! !!4.1!Introduction!………………………………………………………………………………! 111! !!4.2!Aim…………………….………………………………………………………………………! 112! !!4.2.1!Development!of!the!Matrices…………………….………………………………! 112! !!4.3!Data!Collection!Findings!and!Results…………………………………………...! 113! !!!!4.3.1!Interviews’!Findings!Introduction...…………………………………………! 113! !!!!!!!!4.3.1.1.!Interviews!Findings……………….………………………………………! 114! !!!!!!!!4.3.1.1.1!Job!Desirability……………….……………………………………………..! 114! !!!!!!!!!!!4.3.1.1.1.1!Job!Desirability!Analysis……………….…………………………..! 116! !!!!!!!!4.3.1.1.2!Recruitment!Sources……………….…………………………………..…! 117! !!!!!!!!!!!4.3.1.1.2.1!Recruitment!Sources!Analysis……………….………………..…! 120! !!!!!!!!4.3.1.1.3!Performance!Appraisal……………….…………………………….……! 122! !!!!!!!!!!!4.3.1.1.3.1!Performance!Appraisal!Analysis……………….………….……! 124! !!!!!!!!4.3.1.1.4!Compensation!and!Rewards……………….……………………..……! 125! !!!!!!!!!!!4.3.1.1.4.1!Compensation!and!Rewards!Analysis……………….…..……! 127! !!!!!!!!4.3.1.1.5!Training!Programmes………..……………….…………………….……! 128! !!!!!!!!!!!4.3.1.1.5.1!Training!Programmes!Analysis………..……………….….……! 129! !!!!4.3.2!Questionnaires’!Findings!Introduction...…………………………….……! 130! !!!!!!4.3.2.1!Questionnaires’!Findings!–!Private!Sector..…………………….……! 135! ! vii! Table&of&Contents& !!!!!!!!!!!4.3.2.1.1!Job!Desirability……………………………………………………………! 135! !!!!!!!!!!!4.3.2.1.2!Recruitment!Sources……………………………………………………! 136! !!!!!!!!!!!4.3.2.1.3!Performance!Appraisal………………………………………………...! 137! !!!!!!!!!!!4.3.2.1.4!Compensation!and!Rewards…………………………………………! 138! !!!!!!4.3.2.2!Questionnaires’!Findings!–!Public!Sector..…………………….……! 139! !!!!!!!!!!!4.3.2.2.1!Job!Desirability……………………………………………………………! 139! !!!!!!!!!!!4.3.2.2.2!Recruitment!Sources……………………………………………………! 141! !!!!!!!!!!!4.3.2.2.3!Performance!Appraisal………………………………………………...! 141! !!!!!!!!!!!4.3.2.2.4!Compensation!and!Rewards…………………………………………! 142! !!!!!!4.3.2.3!Questionnaires’!Findings!–!Overall…………..…………………….……! 143! !!!!!!!!!!!4.3.2.3.1!Job!Desirability……………………………………………………………! 143! !!!!!!!!!!!4.3.2.3.2!Recruitment!Sources……………………………………………………! 145! !!!!!!!!!!!4.3.2.3.3!Performance!Appraisal………………………………………………...! 146! !!!!!!!!!!!4.3.2.3.4!Compensation!and!Rewards…………………………………………! 148! !!4.4!Summary……………………………………………………………………………………! 150! ! Chapter&5& 5.0!Discussion……………………………..……………………………………………………..! 154! !!5.1!Introduction.………………………………………………………………………………! 154! !!5.2!Recruitment!Sources…………………..………………………………………………! 155! !!5.3!Performance!Appraisal………………………………………………………………! 159! !!5.4!Compensation!and!Rewards………………………………………………………! 165! !!5.5!Job!Desirability…………………………………………………………………………! 172! !!5.6!Training!Programmes.………………………………………………………………! 177! !!5.7!Conclusions.……………………………………………………………………………….! 179! ! Chapter&6& 6.0!Conclusions!and!Recommendations!……………………………………………..! 184! !!6.1!Conclusions.………………………………………………….……………………………! 184! !!6.2!Contribution!to!Knowledge………………….…..…………………………………! 187! !!6.3!Recommendations!for!Future!Work………………..…..………………………! 188! ! ! ! viii! Table&of&Contents& References!..…………………….……………...…………………….………………………! 189! & & Appendices& Appendix!I:!Publications…………...…………………………………………………….! 000! Appendix!II:!Questionnaires..………………………………………………………….! 000! Appendix!III:!Interviews…………………………………………………………………! 000! Appendix!IV:!Coding!&!Matrices………….…………………………………………..! 000! ! ! ! ! ix! Abbreviations,, Abbreviations HRM MNC SAA SAEI NCCC ! Human resource management Multi-National company Saudi Arabian Airlines Saudi Aerospace Engineering Industries National Center of Cultural Competence x! List%of%Figures% List of Figures Fig 1.1 Fig 1.2 Fig 1.3 Fig 1.4 Fig 1.5 Fig 1.6 Fig 1.7 Fig 1.8 Fig 2.1 Fig 3.1 Fig 3.2 Fig 3.3 Fig 3.4 Fig 3.5 Fig 3.6 Fig 3.7 Fig 3.8 Fig 3.9 Fig 3.10 Fig 3.11 Fig 3.12 Fig 3.13 Fig 3.14 Fig 3.15 Fig 4.1 Fig 4.2 Fig 4.3 Fig 4.4 Fig 4.5 Fig 4.6 Fig 4.7 Fig 4.8 Fig 4.9 Fig 4.10 Fig 4.11 Fig 5.1 ! Research key areas…………………......………………………………………… Thesis structure…………………......………………………………………..... Research scope…………………......…………………………………………..... Employees percentages at SAEI…………………......…………………………… Privatisation progress at SAEI…………………......…………………………….. Relation between HRM practices and Saudi Arabian societal culture…………… Factors affecting Saudi Arabian societal culture ………………………………… Breakdown of the mixed-methods approach implemented ……………………… Maslow’s hierarchy of needs ………………………………………..…………… Research components………………………………………………..…………… Research framework………………………………………………………..……. Quantitative data handling……………………………………………………….. HR employees who were involved in the interviews…………………………… Non-HR employees who were involved in the interviews……………………… Design process of the interviews………………………………………………… Questions in the final interviews form…………………………………………… Data collection main concepts……………………………..…………………….. Job desirability main themes……………………………..………………………. Recruitment sources main themes……………………………………………….. Performance appraisal main themes…………………………...……………….... Compensation and rewards main themes…………………………….………….. Training programmes main themes……………………………………………… Design process of the questionnaire……………………………………………… Questions in the questionnaire…………………………………………………… Percentages of employees belonging to each sector…..………………………… Important aspects to private engineers………...………………………………… Important aspects to public engineers………..…………………………………. Important aspects to engineers overall………………………………………….. Preferred work styles of engineers overall…….………………………………… Preferred recruitment sources according to engineers overall…………………… First recruitment sources engineers look at………………………………………. Favorable performance appraisal methods……………………………………… Favorable performance appraisal style…………………………………………… Favorable compensation system………………………………………………… Favorable rewards system……………………………………………………… Relation between HRM practices and Saudi Arabian societal culture ………… xi! 1 11 13 14 14 15 16 17 34 67 69 77 89 91 92 93 94 95 95 97 98 99 99 100 134 135 140 144 145 146 147 147 148 148 149 181 List%of%Tables% List of Tables Table 1-1 Table 2-1 Table 2-2 Table 2-3 Table 2-4 Table 2-5 Table 2-6 Table 3-1 Table 4-1 Table 4-2 Table 4-3 Table 4-4 Table 4-5 Table 4-6 Table 4-7 Table 4-8 Table 4-9 Table4-10 ! ! Main characteristics of public & private sectors………..…………….….. Main characteristics of public & private sectors………..………………... Difference between collectivistic & individualistic cultures (1).………… Difference between collectivistic & individualistic cultures (2).………… Difference between collectivistic & individualistic cultures (3).………… Negative traits of collectivistic cultures.…………………………………. Negative traits of individualistic cultures.……………………...……...… Summary of the data collection process as SAEI……………………….. Relation between societal culture and job desirability themes ……….. Relation between societal culture and recruitment sources themes …….. Relation between societal culture and performance appraisal themes ….. Relation between societal culture and compensation and rewards themes. Relation between societal culture and training programmes themes.……. One-sample statistics for the private sector……………………………… One-sample test for the private sector…………………………………… One-sample statistics for the public sector………………………………. One-sample test for the public sector……………………………………. Summary of the responses from public and private sectors……………… xii! 8 22 35 37 38 39 40 103 117 122 125 128 130 132 132 133 134 150 Chapter 1: ! ! ! Introduction Chapter(1:(Introduction( Chapter 1 - Introduction 1.1 Background This chapter defines the main players of the research area targeted in the study. As this research aims to investigate the impact of Saudi Arabian societal culture on five specific HRM practices, based on the literature review, key players were identified as the main factors affecting the three overlapping research topics. These three research areas are HRM, Saudi Arabia, and culture (as shown in Figure 1.1). Out of HRM came the five specific HRM practices: recruitment sources, performance appraisal, training programmes, compensation and rewards, and job desirability. In addition, Saudi Arabia contributed the public and private sectors, and culture provided the specific concept of societal culture. Figure1.1: Research key areas. The main players are important when resolving the lack of literature available on the link between societal culture and HRM practices – specifically in Saudi Arabia and the Middle East region – as illustrated in the gaps in the literature section. Moreover, the investigation carried out in this research will help to address the gaps identified throughout the concerned literature. Furthermore, this investigation will provide an upto-date review of current HRM practices implemented in Saudi Arabia, which can ! 1! Chapter(1:(Introduction( represent an update to the out-dated studies already identified. In addition, this investigation will take into consideration new elements introduced in the country that did not exist during previous studies, such as the introduction of e-business solutions...
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