HRM policies in the UAE
Human resources play an integral role in any organization. The allocation of human capital is critical to the overall success of the organization. Depending on the particular industry, talent and its subsequent retention is directly correlated to the overall profitability of the firm. In many instances, as is the case in our current economic cycle, improper human resource activity can have a profound effect on our overall society. By employing and retaining the correct individuals for the corresponding position, both the business and society benefit. For example, the most creative individuals will be placed in the positions that utilize their talent most effectively. This talent will thus be cultivated in the position allowing the individual to grow and develop. This development allows the individual to create products or solutions that another individual with less talent may overlook. This is primarily how Microsoft, Google, Intel, and IBM countinue to generate new and innovate products decade after decade. They simply have the right people in the right places through the use of HRM.
Human Resource Policy Number 1-
"The labor laws in Dubai thus have mandated weekly an individual needs to dedicate 48 hours professionally. Any issues pertaining to overtime or extra working time would be permissible strictly in the fields of security and hospitality, while barring many other mainstream jobs"
I do not agree with this policy, as the UAE is inhibiting its own growth. There should not be a mandate on the amount of hours a particular individual in Dubai should work. If individuals desire to work 50 hours a week, I believe it is in the nations best interest to allow that individual to do so. For one, depending on the industry, more goods or services are being produced. The more goods being produced or the more supply of goods, the cheaper the products are to society in general terms. Further, the individual is earning more wages that will allow him to purchase more goods or services for his own personal consumption. By purchasing these goods, he in turn, is creating demand. With this demand, companies will be forced to hire to compensate for the increase in the amount of goods and services needed. By capping hours, the UAE is actually hindering the process which is in direct competition of its goals. This policy, I believe should be loosened to allow all industries to allow are individuals to work as the demand for the products dictates. This will allow labor to be used in hire demand industries more efficiently, while also eliminating labor in industries will low demand for their goods and services. This, in turn, will create more efficiency in UAE nations in regards to their HRM policies.
Human Resources Policy Number 2-
"Under the new HR policy in Dubai there shall be better salary structure in action, and incentives. Altogether a revised and attractive pay structure has been ushered and encouraged by the government in Dubai."
Human Resources however can be a detriment to our society is used in an incorrect manner. Here, the UAE is developing a value system predicated on money and achievement. This system and its subsequent compensation methods may do more harm for the economy than good. I say this, because relying soling on compensation, may in turn create a system of cheating in the UAE in order to receive more compensation. When given the wrong incentive, which in this instance is only monetary, individuals with the UAE are encouraged to cheat. Depending on what industry these incentives are in located within will determine the extent of the damage to the UAE. This is a very contentious issue that has been given little attention in the media or through general conversation. I believe it is vital to the overall mission of the UAE, to effective deal with this issue.
To elaborate on this point I will use our current economic situation as an example of an incorrect incentive structure and its possible consequences to the UAE. The following two examples are from both the financial services and health care industries. They both illustrate brilliantly how human resources, and in particular incentives can be a detriment to society. I believe this comparison to be relevant as the UAE is aspiring to obtain a capital structure similar to that of the United States. In its effort to persuade and entice individuals to relocate to the UAE, countries like Dubai are offering attractive compensation packages. What is not being considered are the implications of solely relying on compensation as a means of obtaining "talent?" The following examples are classic cases that could occur to the UAE...
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