Current Trends of HR
Management and Employee Relations in UAE


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The system of
motivation for effective work is an effective management tool, the existence of
appropriate incentive algorithms for productive work permits possible
contradictions between the employee and the employer, stabilizes the balance of
interests. In the early 90s, the determining factor in choosing a job was a
high salary, the size of which was often determined intuitively. In a market
economy, organizations compete in the labor market, offering not only higher
wages, but also better working conditions, compensation packages, etc.
Strengthening competition in the labor market requires increasing the
effectiveness of work with staff and attention to labor problems. It is
becoming increasingly important not only to improve the current motivating
factors, but also to search for new ones.

manifestation of heightened interest in the implementation of targeted social
policy is due to the fact that owners, often earned funds, are not directed to
create jobs, introduce new technologies, re-equipment production, but
exclusively for their own consumption. Such use (squandering) of the country’s
resources creates conditions for the growth of public confrontation. Therefore,
the introduction of corporate social responsibility programs becomes
particularly important. The relevance of the research is related to the
increased awareness and positioning by organizations of their corporate social
responsibility, the desire to prove to the public that the owners of the means
of production and business entities are bona fide citizens of their country,
caring not only about your profits at the price, but also about public
interests. In economically developed countries, goodwill is one of the most
important components of the company’s intangible assets. It is evaluated in its
annual balance sheet and is mandatory for the listing of the company. (Gond, J. P., Igalens, J.,
Swaen, V., & El Akremi, A., 2011).

organization’s implementation of socially responsible policy contributes not
only to increasing the level of trust of partners and public authorities, but
also to increasing competitiveness in the market of goods and services,
attracting investors, etc. The relationship between the attractiveness of the
organization for employees and the availability of corporate social programs

Thus, the
growing interest in the role and importance of corporate social responsibility
in the face of increasing competition in the labor market, updates scientific
developments on the problems of the development of corporate social
responsibility, including its role in raising the level of labor motivation of
staff, which served as the basis for choosing themes of dissertational
research. (Hashim,
J., 2010).



Current Trends

Analyzing modern
methods of HR management and its influence on the corporate responsibilities
specifically in the United Arab Emirates, simultaneously there are several
factors that have a strong influence on the traditional forms of work with internal
stakeholders. (Forstenlechner, I., 2008).

Firstly, these
are demographic shifts, changed the staff of companies: increased number of
both younger and older employees, as well as their composition has become more diverse.
Generation Y (Millennials) currently is more than half of the workforce. Its
representatives have high requirements for and expectations for
remuneration.  Interesting and serious
work with the opportunity of continuing education and development, as well as dynamic
career growth are highly demanded. At the same time generation of “baby
boomers” born in 70’s and 80’s, it is necessary to adapt to new roles,
such as mentoring and counseling, and even often obey to younger colleagues.
Also globalization business contributed to the fact that the composition of the
workforce has become more diverse, forcing employers to concentrate on the
assimilation and common values ??that can rally people together.( Iles, P., Almhedie, A., & Baruch, Y., 2012).

universally applied digital technologies that change, often radically, business
models, working conditions and the workflow itself. Technologies such as mobile
devices, 3D printing, sensors, artificial intelligence and the Internet change organizational
structure of companies, methods of production and services. At that time, same
time revolutionary digital technologies and social networks create new
approaches to hiring, managing and supporting staff. Innovative companies based
in the UAE want to understand how simplify interaction with personnel could be
improved , introducing design- thinking and behavioral economics, including
usage of  a new approach called
“automation of HR”.

Thirdly, the pace
of implementation of changes has grown significantly. It is obvious that in the
field of technology a huge leap has taken place. In addition to the
significantly increased  pace of
implementation changes in business as a whole, which also requires from
organizations more rapid response. Newly implemented innovative solutions in
business models of such companies as Uber and Airbnb, make the company react properly
and change their market strategy to adapt quickly to changing conditions. In
the current unstable world, where communication has acquired great importance, force
majeure circumstances, also known as the “black swan” are extremely
important that emphasizes the need for quick adapt to external changes. (Kim, H. R., Lee, M., Lee, H.
T., & Kim, N. M., 2010).

            Fourthly, the new social contract,
concluded between companies and employees, makes significant changes in their
relationship. Employees no longer expect that all the way to career heights
they can do within the same company.

The younger generation believes that they
will work in different companies and get valuable experience in each of them.
It leads to expectations of rapid career growth, attractive position of power
in the future and flexible working schedule, as well as striving for the
mission of the company and its lofty goals. Today a third of the labor force
represents temporary employees and those who work part-time. At the same time,
most companies do not have necessary developments in the field of management personnel,
as well as corporate culture and proper support of such leadership schemes.



The economy of the UAE, for the most part,
is built on the principles of centralized management in a market economy. In
addition to small agricultural and private commercial enterprises, the public
sector controls all other branches of the economy. Concerns and other large
associations of industrial enterprises, telecommunications companies, media
industry, aerospace industry and other strategically important enterprises are
under full state control. The sphere of goods and services does not belong to
the object of central planning.  (UAE World Government Summit , 2016)

Since the UAE is
at the stage of intensive economic development, the concept of human resources
is of great importance for the effective achievement of state plans to increase
the country’s economic rating. UAE is a multi-ethnic and multi-confessional
state, in which the notion of tolerance is very important, which is important
to take into account when organizing the work of the personnel of Arabian companies.
Thus, managers and management of state-owned companies should be prepared to
address not only the problems of administrative and economic, but also
socio-psychological. (Budhwar, P., & Mellahi, K., 2007)

Since the very
concept of human resource management is of Western origin, therefore in
countries with a culture different from the European one, such as the UAE,
management should take cultural relativism into account. In other words, the
practical use of the concept of governance in a given state should be carried
out taking into account the specific characteristics of Arabian culture. Most
of the local companies are dominated by administrative and organizational methods
of personnel management, in which individual interest is inferior to the
company’s interest. However, despite this, the human factor plays a big role in
the management of ian state-owned companies. First of all, it concerns career
growth, which occurs in case of sufficient experience of the employee, or a
high level of his education. In addition, the company assumes the
responsibility for organizing health insurance and staff development. It should
also be noted that such a traditional rule, as respect for the elders, is
observed in the workplace in the form of special respect and high wages. At
present, the UAE highly appreciates the work of highly educated personnel,
which works in the strategic sphere of the Arabian economy. Here you can talk
about economic methods of management in a greater degree. That is, in the case
of effective activity, the employee receives bonus payments and career growth.
It should be noted here that despite the administrative and organizational
nature of Arabian personnel management, ensuring decent wages, social
conditions and guarantees are the most important elements of governance in Arab
state-owned companies. Social security is also part of Islamic morality –
mutual assistance and support. The management of companies undertakes to comply
with these norms, since The UAE is an Islamic republic and the country’s
legislation is based on Muslim law. Another important factor affecting the
effective production and development of the economy is the psychological
climate in the organization. In the UAE, with trepidation, the old traditions
and etiquette standards are kept, which must be respected both in the family,
and in society and at work. The leadership of the Arabian state-owned companies
is developing various measures to prevent or resolve conflicts arising in
production. Special measures are taken to rally the collective, joint trips are
organized to various cultural and religious centers of the UAE. In addition,
very often leaders resort to moral encouragement and personal example. Also,
religion is a special place, and special places for prayer are assigned to
production. Multinationality and multi-confessionality (Shiites, Sunnis,
Christians and Zoroastrians live in the UAE) also affect the process of human
resources management, which is why the leadership organizes conditions in which
no confession will be infringed. Thus, the management of companies guarantees
the preservation of a positive microclimate in companies, which has a
beneficial effect on production efficiency, company success and the state’s
benefits. The Arabian system of human resources management is dynamically
developing, based on the concept of the Dutch scientist Hofstede, and taking
into account the national specifics. Arabian economists are constantly working
on improving the methods of personnel management. (Afiouni, F., Karam, C. M., & El-Hajj, H., 2013)

Islam is the
second major world religion. A Muslim is bound by religious principles – a code
of conduct in interpersonal relationships in the process of his or her social
and economic activities. Religion is the dominant in all areas of life. Islam
has pronounced features in the construction of economic life. Some very
explicit economic principles are established directly in the Qur’an and approve
of free enterprise. The protection of private property rights is also
supported, but in this case property owners are considered to be trustees who
have the right to receive income from it, rather than owners in the western
sense of the word. In addition, property owners are persuaded to use it
correctly, socially useful and reasonable way. This reflects the regulation of
Islam by social legality. (Ali, A. J., 2010).

Islam does not
accept those who seek benefits through the exploitation of others. In general,
abstracting from the criticism of fundamentalism, Islamic countries tend to be
strict, obligatory and receptive to contacts with international enterprises,
while these enterprises behave to some extent in accordance with Islamic
ethics. Enterprises that are perceived as receiving unfair benefits through the
exploitation of others, by fraud or breach of contractual obligations, are
unlikely to receive a warm welcome in an Islamic country. The main qualities
inherent in a manager who works in an Islamic cultural environment should be a
deep knowledge of Islamic traditions, communication skills, flexibility. (Rettab, B., Brik, A. B., & Mellahi, K., 2009).









Due to the
continuing instability associated with a serious global economic downturn,
leading UAE companies are increasingly focusing on the development of personnel
and striving for new horizons in 2020. Particular attention is paid to the
development of employees, the problems of globalization, the growth and
development of innovation.

These most
relevant trends now include:

• Leadership of
the future;

• the management
changes the rules of the HR-game;

• improvement of
the company’s activities;

• struggle for
the development of human resources;

• transformation
of HR-functions for solving

new business

In the Middle
East, company executives point out that the development of employees is for
them the most relevant trend to date, in this their American colleagues
converge. Nevertheless, “Transformation of the HR function for solving new
business problems “also occupies a high place in the list of major In
addition to the influence that leadership for the development of human

It can also be
noted that managers from the UAE ay more attention to harmonize HR- with a
common business strategy. Most managers see need for improvement activities of
HR- and human resources specialists. As companies expand own horizons, they
collidewith a future that is strikingly different from those times left behind
(the times of the so-called Great economic recession or a “great
recession”). Approaching 2020, the managers of personnel and other
business units change their orientation in accordance with the future and the
realization that growth should be provided from new sources.

Strategies in the
field of personnel management should be changed in accordance with the needs of
global markets – developed and developing, they must also promote growth of
innovative activity for sustainable development. Number of possibilities
constantly increases – but the same occurs and with risks. A more complex and
dynamically developing world offers fundamentally new opportunities.

According to the
conducted research, staff and business leaders should be ready to invest in
management strategies personnel and employee development programs, which would
focus on:

• research or
development of new programs of action;

• execution or
development of new actions within existing programs.

Steps taken today,
during the transition period unknown and new opportunities, will create basis
for the future – and will determine company’s competitive abilities.