Human resources management policies and labor laws in the UAE

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 3-

"In order to cater to the needs of the inhabitants, the HR Policies in Dubai has made it compulsory for organizations to give the national job seekers first priority over others."

I believe this policy should not be changed as it insures the prosperity of the UAE. As alluded to earlier, the HR policies of the UAE are short-term and near sighted in nature. However, through this mandate, I believe the UAE was correct. Culture can have a profound impact on an organization and the community it is located in. By giving national citizens priority, the UAE is in essence, pegging its prosperity to that of its businesses. By forcing organizations to hiring individuals for example, with origins in Dubai, the UAE is providing much needed monetary stimulus for their economies. By allowing people to earn more, these same individuals will spend more, thus creating more jobs in the process. However, as I have gone into detail about above, with this prosperity comes newfound problems, mostly in the incentive structure of jobs. As many more individuals obtain jobs, the HRM departments of the UAE must be ever more vigilant in guarding against abuses. However, looking at this policy in aggregate relative to the others, clearly the benefits outweigh the shortcomings. I will describe why below:

The culture of the organization must reflect newfound principles. This culture is primarily dependent on the cultural background of the individuals who comprise an organization. Here too HRM in the UAE has a very significant role. By utilizing culture differences as an ally, the UAE can in effect, change the culture of the organization. They can change the culture through interpersonal relationships between various individuals, departments, and executives. Through these interpersonal networks HRM can effectively change how the company thinks and operates, thus creating innovation which benefits society. This is because the organization itself will police its own activities through the standards of the individuals who comprise it. This may seem farfetched in theory, but we see this principle in action constantly. The army polices itself for example. If someone gets out of line, the group pressures that individual to correct that action, otherwise he is shunned by the group. Sports teams are the same way. They have a common goal, or standard (which is usually winning), and those who deviate from those goals are either reprimanded or released. The same concept can be applied to businesses. Here are how those interpersonal networks and individuals within the UAE work together. By mandating that UAE individuals get priority, in conjunction with those from outside nations, the UAE is encouraging diverse backgrounds to enter the workforce. American companies often tend to hire American individuals who have the same thought processes. By hiring an individuals from, say, Dubai, the American culture is obtaining a unique prospective from an individual within the UAE. These differing viewpoints may on the surface cause conflict, but conflict is often good. Companies should not want "group-think" as it can be a detriment to the overall goals of the organization. The UAE, who is dependent on business to drive economic growth, realizes this and their policies have created a means to prevent it.

To begin, interpersonal collaboration is extremely important as our society becomes more global. Professionals in each network vary in skills, experience and expertise. This fact is further compounded by the fact that many individuals within the group are from international backgrounds. As a global society, the network must overcome the differences in background for the greater good of the group. For example individuals from a UAE country such as Dubai will have a different value system then that of an American interpersonal network. The benefits of having an interpersonal network are quite obvious to the laymen. However, the benefit of and limitations of such a network are almost entirely defendant are the underlying culture aspects. For example, an interpersonal network of Chinese or Asian social workers could quite possibly be very different then the interpersonal network of an American social worker. This is where the UAE policies can make a difference. As many of these policies are still being ironed out. I believe it pertinent to give an example of how culture differences can have a profound impact on both society and its business. In this example I have chose two countries on the opposite ends of the spectrum in regards to culture: America and China. The implications of this example can apply to ANY AND ALL UAE nations and their HRM policies. The same result will occur if you substitute Dubai for China or China for America. The important aspect is to very how varied nations are, and by combining them into an organization, you can obtain, "The best of both worlds."

To elaborate on this point I will venture back to early Chinese history and in particular, that of farming. In china, the main cultivated