Question:
I?m attaching conclusion chapter of PhD thesis. You need to consider comments in the chapter. In addition I?ll upload finding chapters and research propositions (chapter 2) that you will relay on it to consider the comments.
Make sure the research questions have been addressed properly. 3 research questions.
Answer:
Title: Conclusions, Implications and Recommendations (The relationship between HR practices and employee retention in public organization)
This chapter contains seven sections. The first section presents a summary of the study’s results. This is followed by the conclusions, implications for theory, implications for practice, discussion of results, and recommendations for future research.
1.1 Summary of Results
The purpose of this study was to identify HR practices and factors that affect employee retention in the United Arab Emirates, with emphasis being on public organizations in a comparative approach between Sharjah and Dubai. To accomplish this task, both quantitative and qualitative research approaches were used. A non experimental survey, using a semi-structured interview, was employed as the primary instrument to collect data. This was supplemented with a questionnaire and focus groups.
Based on the results of the study, answers to the research questions are discussed below:
1.2 Question 1: How do HR Practices Affect Employee Retention in UAE Public Sector Organisations?
The research objectives were to determine how approaches to managing human resources and specifically HR practices affected the retention and satisfaction of employees within an organisation. The questionnaire questions focused on aspects like leadership style, appraisal systems, compensation, and the environment of the workplace, decentralisation aspects, and strategies of development, training, and retention. These findings could then be used in understanding various human resources practices related to the retention of employees in public organisations.
The responses of the participants in the study give a clear indication of how HR practices affect the satisfaction of employees and have implications for their subsequent retention in the organisation. The major aspects that affect an employee, according to the findings are job security, job descriptions, and job profiles. The desires of most employees are decentralisation and reduced hierarchy in the workplace. They also desire empowerment and accountability in their areas of work. This means that they require specialised training (Barber & Bretz, 2000; Chiu, et al., 2001; Rynes & Gerhart, 2000).
In both Sharjah and Dubai, HR practices have been evaluated positively. The impression created is that government employees in general feel that their conditions are good. They are contented with the recruitment and selection processes, which they consider impartial and free of favouritism. The employees also seem happy with the opportunities offered to them for training, enabling them extend their professional abilities and skills. On the overall, the employees think that the organizations they are working for are committed to nurturing good relationships with their workforce. However, interviews with departed employees in Sharjah create the impression that the employees’ expectations have not been met. It is obvious that departed employees are unlikely to give a hundred percent approval of the companies for which they are no longer working. The reasons that made them move away must feature as one of the negative issues such employees would mention during interviews.
Majority of employees feel that the changes being made in terms of human resources management practices and style are not sufficient. They feel that the workplace environment is not fully suitable to the working needs of employees and they blame this state of affairs for both absenteeism and the rate of turnover. Safety is a major concern, and employees hold reservations about the extent to which their working environment is being ridden of any health hazards.
The interviews carried out on Sharjah government organisations indicate that employees are not quite satisfied with the efforts being made to inculcate a culture of growth, particularly through apportioning of sufficient and appropriate office space. For this reason, the employees fail to fully benefit from being part of an organisational culture and environment that facilitates personal growth. The employees seem to have a strong desire of being given tasks that facilitate personal development and professional achievement. Such an environment, they say, will enable them to have a sense of responsibility as well as motivation to work well. The work environment provided by UAE organisations is, according to most of the participants, unsatisfactory. One of the participants commented that the environment was poor because the building space in which the company was based was not designed with future goals in mind. There was also a lack of a pleasant working environment to work in, such as small office spaces and narrow corridors, offering an uncomfortable setting.
The participants feel that the attention being paid to cultural and socio-economic and political aspects because of the employees’ varied cultures is not sufficient. Meanwhile, they agree that the national culture has direct influence on organisational cultures. However, in the case of UAE, there is a rather peculiar problem in that majority of the workforce is expatriate, such that people from very different cultures are placed in close proximity. The research participants also indicated that workplace culture is not highly satisfactory, and strategies are needed to improve it.
Sound HR practices seem to affect employee retention in UAE public sector organizations in a positive way. The converse here is that unsound HR practices would definitely lead to an increase in the turnover rate. Sound HR practices are an indication of satisfaction with the current job, translating into a remote possibility of leaving the organization. Moreover, HR practices seem to have a lot to do with leadership. The results showed that whenever employees perceive organizational leadership positively, the likelihood of voluntary turnover is drastically lowered.
The study did not indicate any relationship between HR practices and the demographic variable of location. Although there is similarity between Sharjah and Dubai in terms of the soundness of HR practices, this does not in any way suggest a demographic trend in terms of location. This lack of relationship may be attributed to the overarching influence of the national culture, which overshadows any organizational differences that may exist between public sector settings within UAE. In contrast, the gender demographic reflects significant differences in not only HR practices, but also organizational commitment and leadership. On the overall, males showed significantly higher values than females in every case. This is an indication that HR practices are not being applied uniformly on both genders.
1.3 Question 2: What Factors Influence Employee Retention within UAE Organisations?
Lack of empowerment and management style are some of the factors that influence the retention of employees all over the world and within UAE organisations. Many of the participants in the research stated that the main style of leadership is the centralised style of management. There were indications that the employees do not like this centralised style of management which in turn affects their intention to stay at their organisations. Such organisations may benefit from a different style of leadership, one that is less authoritarian, and more participatory and delegating in style. The employees prefer a business management style that is autonomous, one that operates independently in aspects of costs and profits. In such a management style, the process of decision-making is such that middle managers are accountable not to the organisation’s top executive members but to the immediate superior manager. In this way, managers are accorded the responsibility of ensuring the effectiveness and success of a particular area. Such empowerment enhances self esteem, leading to a less rigid and more contented workforce.
Few participants in this study reported that the management style of their organisation was decentralised. Those under centralised leadership wanted changes that would enable them have a sense of responsibility, give them the power to make decisions and to be involved in decision-making. For example, one of the participants criticised the need for seeking approval for leave from the general department director, proposing that such approvals could be left to the HR director, so as to reduce the processing time for minor matters and create commitment within the HR system. Other forms of delegation of roles might entail allowing the accounts department to make decisions about petty cash transactions. A centralised form of management restricts employees from being creative and hampers them from making even the most minor decisions. Low job satisfaction is indicated in a work place which has such a low level of autonomy.
The leadership style used in an organisation shows various managerial behaviours, attitudes, and skills characteristics that directly influence job productivity, commitment and satisfaction. Performance appraisal is another aspect that influences employee contentment. Study participants requested programs of appraisal and assessment with clear and communicable criteria. If such programs are not well articulated, employees may feel that they are not logical or fair. Through appraisal programs, employees can evaluate themselves and consider ways of improving their performance. Unsatisfactory appraisal systems may easily provoke employees into leaving the job.
Participants also raised the problem of discrimination among supervisors during performance evaluation, a factor that negatively impacts on those employees who are not favoured. They also felt that the HR team should be clear about goals and consistent in matters of assessment when communicating the results of an evaluation to the employee. Such strategies will remind employees of organisational goals and help them remain consistently committed to those goals.
Employees in both Sharjah and Dubai indicated that having a good communication with their immediate supervisors is one of the most important aspects of their work. They also regarded highly the practice of being fairly treated by their supervisors all the time. Employees did not seem to draw a relationship between company policies and practices on the one hand and any aspects of their work on the other. This view may be expected, largely because there is no direct relationship between the company’s policies and one’s ability to feel good about his immediate work environment. It is common for an individual to assess his level of satisfaction relative to that of his colleagues. Therefore, the most important assumption among employees giving this view is that whatever policies and procedures put in place in the company should be applied uniformly.
The employees recognize leadership style of top managers as an indirect factor in employee retention. The aspects of communication, fairness in the treatment by supervisors, a clear understanding of what is expected of them, and being made to feel good about their work, all relate to a management style that is less authoritarian, more participatory and more delegating. It is clear that lack of discrimination among employees during performance evaluation and appraisal is a crucial factor for retention. In terms of priorities, employees clearly indicated that they would rather first of all have a supervisor with a desirable leadership style. From there, other aspects such fairness in performance evaluation and appraisal can fall into place.
1.4 Question 3: How do HR Practices Affect Employee Commitment and Job Satisfaction in UAE Public Sector Organisations?
Some UAE organisations have displayed aspects of discrimination and bias that have damaged their image and provoked employees into resigning. An essential role of HR is to ensure there is just and fair handling of the needs of all employees. HR personnel have the responsibility of ensuring proper salary and wages are given to employees, depending on the work level and quality. They should also devise a reward system which is systematic and fair, and one that supports the organisation’s norms and culture of equity (Lobel, 1996). A critical aspect in satisfying the needs of employees is to provide them with a job design and job description with which they have no problem. The compensation system should also be just and fair, as indicated by research participants. This means that there should be a salary scale that shows that one is paid according to one’s job performance.
Participants made the point that most organisations lack compensation benefits like allowances for air tickets, housing, or telephone, among others. The bonus established by the service civil law in Sharjah is not enough to attract educated staff such as Masters Degree holders. Health insurance was not being provided, and this made employees in Sharjah organisations feel insecure about working off medical bills.
According to Deloite (2007), the only way to attract and retain a desirable work force is by planning for the future needs of employees and providing sufficient initiatives to attract suitable personnel. Research participants called for the establishment of a department within organisations to plan for both present and future needs. They saw a need for staff to be taught the difference between administration management and human resource management, particularly the role that the human resources department plays in the tasks of attracting and retaining highly qualified applicants. Moreover, the participants called for leaders who could encourage employees in appropriate directions. This meant that HRM leaders needed to be highly qualified and committed to the needs of their staff, giving their organisations guidance on how to improve staff satisfaction and retention. The HR departments should also be responsible for providing training to employees; many of the participants reported that their organisations did not offer this, limiting the development usefulness of their staff. For organisations to start training its employees they first have to carry out assessments to weigh the points which require to be addressed within the organisation (Medcof & Rumpel, 2007); this, too, was seen as a task for the HR department
The most important factors that came out of research findings here include planning the future needs of all employees, eliminating discrimination and bias against some employees, installing a systematic and fair reward system, and providing compensation benefits, and allowances such as medical insurance. The factor that stood out as the most critical is the establishment of a department within the organization for planning both the present and future needs. This is a clear indication of a need for staff members to be enlightened on the difference between administration management and human resource management. This is particularly so in the case of the role that this department plays in attracting and retaining qualified employees.
1.5 A Comparison between Sharjah and Dubai
Both Sharjah and Dubai employees agreed to the soundness of HR practices In terms of job satisfaction, both Sharjah and Dubai employees’ responses showed no significant difference. Moreover, location did not appear to play a significant role in organisational commitment. The results show no significant relationship between organisational commitment and intent to leave.
However, leadership practices and the intent to leave or stay were significantly different: Dubai employees showed greater satisfaction with their organisations’ leadership practices than did Sharjah employees, who seemed to harbour a greater intent to leave than their Dubai counterparts. Some gender differences were noticed as well: males tended to show more commitment and leadership skills than females. In addition, a significant difference in attitudes to leadership was found, whereby those without a need to supervise seemed more in agreement than those with supervisory responsibilities. Age and education were not seen by participants to play any role in HR practices.
The results of the survey suggest that in general, respondents in both Dubai and Sharjah agree on the soundness of HR practices but are neutral concerning job satisfaction and organisational commitment. They agree on the levels of leadership within their respective organisations. They are neutral insofar as intention to leave their organisations is concerned. These results suggest that the respondents are generally neither satisfied nor dissatisfied with their jobs. Such neutrality is reflected in their level of commitment to their organisations.
The two locations show no significant differences on the variables selected for examination except on leadership, where Dubai respondents seemed to agree more. Sharjah respondents seemed to have a greater intent to leave than respondents in Dubai. These results suggest that employees in Dubai sense better leadership than those in Sharjah, and respond positively to it. This meets the expectations of the researcher, since employees who do not feel they are receiving strong leadership and influence from their superiors tend to find fewer reasons to stay within the organisation.
Summary
It has been observed that UAE employees are not motivated to improve their performance and are detached from the organisation’s progress. They also lack that enthusiasm at work required to bring profits to the organisation, but are not completely disinterested either. Employees willing to work on any given task at hand to retain their tenure are rare. Most employees are unable to relate their career growth to the organisation’s direction, and are not particularly happy about the HR policies in practice. There is no clear end to this neutral reaction: employees have not the slightest idea if they would make the effort to changing their job if there were a change in their personal responsibilities, or if they would prefer to wait for some major HR policy modification to occur. They are disinterested in the company’s success and growth, and lack a sense of belonging to a worthwhile enterprise or valued group of co-workers.
Mowday et al, cited in Price, 2003 p. 261) defines commitment as an employee’s involvement in the company’s growth. Only when employees looks up to their company as a ‘higher entity’ will they feel compelled to follow the HR principles (Foote, et al., 2005). Porter et al (1974) argue that employees must be satisfied in three ways to develop organisational commitment. The first is to comprehend the company’s targets, the second is to be motivated to accomplish those targets, and the third is to feel a sense of belongingness towards the company and to desire to stay with it (Meyer & Allen, 1997). Allen et al. (cited in Price, 2003, p. 262) point out that this effective commitment is directly proportional to the emotional attachment the employee feels towards the firm. Committed employees spread their values to colleagues (Sommer, et al., 1996). .
Mayer and Allen (1991) observe that commitment comes as the result of an employee’s fulfilment of needs. Companies have to control and manage the experiences that are offered to employees in order to enhance their commitment. When employees feel that the company does not offer the same amount of commitment that it demands from them, their loyalty is impossible to retain (J. Meyer & Allen, 1997).
Males are comparatively known to be more organisation-oriented than their female counterparts. In case of employee dissatisfaction, their commitment towards the organisation is at stake that will eventually lead to employee leaving the firm. However, the statistic results between the males and females are incomparable owing to the lesser participation of females in Sharjah organizations. That, perhaps, is one of the reasons for the female ratio to be comparatively lesser than men.
Providing job satisfaction is a major challenge to UAE organisations. Their employees’ lack of interest in their jobs is evidence of the fact that they are dissatisfied with the returns they are receiving for their work. Their ambivalence toward their jobs and companies are further a proof of the impact of their dissatisfaction with the degree of respect they receive from their seniors, such as denying them the right to think and make decisions. It is little surprise that this survey found job dissatisfaction was directly proportional to the tenure served under a single senior, with the highest satisfaction recorded in those with less than a year’s tenure and the lowest in the most experienced group.
It is a shock to find that job satisfaction overall is neutral. Carol & Richard (2001, p. 235) define job satisfaction as the employee’s reaction towards their work place; it is a mixture of intrinsic and extrinsic components (Clark, et al., 1995)Peter et al. , 2006. Skill development and the offering of responsibility and challenges are intrinsic components (Clarke et al, 1996), while materialistic and monetary factors such as salary and incentives are extrinsic. Purcell et al. (cited in Armstrong, 2003, p. 240) state that any firm’s success is based on employee motivation and commitment, derived from their job satisfaction, which in turn is derived from job opportunities and influence, and also in participation in the group’s extrinsic efforts. These are areas where UAE organisations need to improve.
The pay structure and the working environment together form strong elements in creating job satisfaction (S. Cohen & D. Bailey, 1997; Maertz & Griffeth, 2004; Taplin & Winterton, 2007). Naumann (1993) states that job satisfaction level as also their decision of continuing or discontinuing with the job is a result of the communication pattern with their colleagues.
Becker (1992), Williams and Hazer (1986), and Yavas and Bidur (1999) share the same opinion that job satisfaction is gained through commitment towards the firm. Commitment corresponds directly to job satisfaction (Chen, 2007). Against this claim, Curry et al. (1986) disagree about any link between commitment firm and satisfaction, this view is endorsed to an extent by Vandenberg & Lance (1992), according to whom, the organisational commitment is a result of job satisfaction and shares a cause-effect relationship as believed by Becker (1992), Williams and Hazer (1986), and Yavas and Bidur’s (1999) findings. Parsons (1998) accepts the link between job satisfaction and commitment and evaluates the concept to find that the ultimate result is the staff turnover.
The re-organisation of HR policies in Dubai to include job satisfying elements for employees has given rise to employee retention at a high level. This is crucial since the employee’s patriotism towards the firm encourages tenure, thus lowering employee turnover. Dubai’s approach differs from Sharjah’s, as this survey found out, and this is reflected in its employment retention patterns
There is general agreement on the value of effective leadership. Employees were commendatory of managers who were encouraging of slow employees and patient in explaining the complexities of a project, and were constantly working towards performance improvement. Attention givers, non-opinionated and effort influencing, were strongly commended. Respondents agree that their managers made them feel worthwhile and exercise autocratic rules that in turn, had positive effects on production.
Every respondent endorsed such leadership practices, with the Dubai ratings being higher than those of Sharjah. Employees at the managerial level were not so accepting of current leadership values, although those not at that level endorsed them. Risher & Stopper (2001) believe that employees achieving the following four assignments possess an effective leader qualities: providing help, confirming qualitative product or service delivery, commitment and dedication, and challenge-taking (Covin, et al., 1997). They also need to be persuading and motivating the team to contribute to planning, development and accomplishment of tasks. (Brower, 1995).
Adler (1991) is of the opinion that leadership is the end product of cultural factors. A good rapport between employers and employees alike, lead to employee retention (Morrow, et al., 2005). To gain employee’s cooperation, it is a must to form a leadership strategy that they can approve of (Savery, 1991). Reinout, et al (1998) found out that humanitarian leadership works towards accomplishing job satisfaction. Every person has varied choices and might not approve of a single form of leadership. Susan (1999) discloses that there should be a variety of leadership patterns for job satisfaction at different hierarchical levels. For instance, encouragement received from a leader leads to job satisfaction and a sense of achievement for the employee. A charismatic leader may develop a fan following that leads to employees trying to imitate his style and commitment (Bryman, 1992; Eby, et al., 1999; Nanus, 1992). According to Clarke (2001), Jones and Skarlicki (2003), and Taplin and Winterton (2007), leadership styles attract employee attention. However, it is important to note that there should only be a sole leadership pattern to be followed (Goleman, 2000).
Skilful employees tend to prove resourceful for long term, but retaining long-time employees has its own set of challenges, as the current survey results show (Barney, 1991; Price, 2003). At the same time, companies comprehend the profits they gain by retaining their present employees. In case of fewer tasks involving manual labour, companies begin a search for employees, who can deliver high productivity (Jones & Skarlicki, 2003), companies attempt to use new methods for rapid production (Leeves, 2000), while their employees are on the look-out for better career options, as an advantage to their requirement demand.
The targeted employees of this research belong to the UAE labour force, which is mainly expatriate, although the respondents were Emiratis. UAE employees have a high level of turnover. Research indicates that the expenditure in recruiting a new staff member is double that of retaining the old one. With this in mind, UAE HR practitioners need to identify the causes of turnover in their organisation, and then devise a program that will halt this trend (Sutherland, 2002). The current research results prove that organisations with lower rates of turnover implement methods such as offering opportunities to employees to contributing beyond their mere labour, stressing staff development, and being clear about terms and conditions of employment and promotion (Fernie & Metcalf, 1996).
The research results confirm the theoretical structure discussed in Chapter One. HR practices, job satisfaction, company culture, values of leadership, retention of employees, and commitment are interconnected concepts. HR practices are crucial in developing an employee’s commitment to work, and in promoting retention. The more employee-friendly HR practices are, the lower are the chances that workers will leave the firm. Also, as employees experience greater job satisfaction, they tend to become more enthusiastic about being a part of the organisation.
Good leadership, too, has a positive impact, lowering voluntary turnover. This can be seen in Dubai’s employees, who projected satisfaction with the organisation’s leadership methods, although the survey results do not display any relevant link-up between commitment and the intent of an employee to leave the firm.
The discussion above indicates that the work environment in UAE public sectors is unsatisfactory and requires a better strategic framework. As discussed in Chapter 2, job satisfaction is dependent upon many varied aspects such as the working environment and working conditions (Rad & Yarmohammadian, 2006). Next, Herzberg, et al. , (Herzberg, et al., 1959) emphasised that certain other aspects are a result of the extrinsic by nature. These are referred to as the ‘hygiene’ factors that may not motivate the employees but bring about liveliness in the workplace. Empirical studies researched by Kinnear and Sutherland (2001); Meudell and Rodham (1998) and Maertz and Griffeth (2004) also discovered that the workplace environment is the chief motivational variable that encourages the employees to stay in the organisation. This holds true in the UAE public sector, where employees are dissatisfied with the current work place environment and demand better conditions, as varied as documented job profiles, a good and healthy work ambience, and workplace safety measures. This study provides evidence supporting the theory that a good worker is a happy worker, drawing a link between job satisfaction and performance.
The features of UAE organisations’ management technique are that these are autocratic by nature with a one-way decision making power and are also directive. It has been judged as autocratic (Liu, 1986a, 1986b) and directive (Barret & Bass, 1976; Wright et al., 2000), owing to the centralised control of the staff and least work empowerment (Beehr& Gupta, 1987; LaBier, 1986; Likert, 1967), along with the overall theory that fosters collectivism (Tan, 2002).
A major concern revealed in this research was the extent of centralisation, and its effect on morale. The findings are similar to those of Mohammad (2006), in which the author finds a link between an absence of autonomy and a low level of job satisfaction. By deploying different leadership paradigms, managers can enhance employees’ job satisfaction and also their commitment and performance (Ali & Mohammad, 2006). Especially in the UAE, where work patterns are highly dependent on culture, job satisfaction is strongly influenced by the leadership style. Emphasising specific set policies, fostering a transactional attitude towards leadership techniques, setting common scenario-related rules will all aid public sectors in offering disincentive for employees to leave (Morrow, Suzuki, Crum, Ruben & Pautsch, 2005).
Performance appraisals are useful for motivating employees and so lessens voluntary turnover (Ryan & Todd, 2009, Poon, 2004, Zimmerman & Darnold, 2009). In the current study, performance appraisals in place in the UAE public sector were found to be unsatisfactory, since their standards were not set precisely and employees received little benefit from them.
The focus group analysis and semi-structured interviews both indicated that HR policies have a direct impact on employee dissatisfaction and retention. The chief aspects affecting an employee’s length of stay in the firm are compensation, decentralisation (autonomy), democratic communication (appraisal system and basis), and employee training and development seminars. Wager’s (2001) analysis of the relation between HR activities turnover finds that hi-tech HR systems lead to fewer employees quitting their jobs: no such systems are present in the high-turnover area of Sharjah’s public sector. Factors, such as the performance-based promotions, employees’ formal introduction, a structured pay policy during employee training, problem-resolving teams would help in retaining employees for a longer period of time. The current study results backed Wager’s research on the prime reasons for the employees’ decision to continue with their jobs. The challenges faced by the public sectors can be resolved by using the discussed HR techniques to succeed on their employee’s retention rate. The best solution would be the one identified by McGregor in his Theory Y that stresses the fact that employees have a tendency to work and achieve their targets and at a higher rate, especially, when there are incentives or bonuses that come complementary with it.
1.6 Limitations of this Study, and Indications for Future Research
Several limitations need to be recognised in this study. The first is that the participants in this research were not representative of all UAE employees. The entire focus group sample, for instance, was drawn from the government sector in Sharjah. This means that the results may not be transferable to employees in the private sector. Because this was a study undertaken in the government sector, it focused on a workforce cohort comprised predominantly of UAE nationals. This was a deliberate choice, partly because of the lack of research on employee retention in the United Arab Emirates; but whilst this study contributes new knowledge, it cannot be assumed that its findings can be generalised, even to other Arab Muslim countries. It is important to recognise the cultural differences which help form people’s attitudes: differences between countries in implementing Islamic Shariah law, differing local traditions, and the diverse economic and political contexts of any country will shape the nature of the workplace. In Arabic cultures in particular, for instance, such factors will affect the manner in which women are permitted to participate in the workforce.
This research was limited to a few people representing six UAE organisations in Dubai and Sharjah. It was further limited to those aspects revealed in the research to be of relevance to employee retention within the organisational and national culture of the UAE. This limitation provided an extra challenge because there is very little literature on UAE workplaces. In addition, the findings may not be applicable to other government organisations if researchers use different research methods.
The limitations and strengths of this research can offer guidelines for future research efforts in this or related topics. One future strategy that may be of value is the use of a model that can be expanded to other related and relevant variables, such as orientation strategies, leadership style management, and a firm’s business strategy. It may also be useful to consider aspects such as flexible work environments, employee’s empowerment, especially of the female portion of the UAE workforce, and HR practices for encouraging the retirement of weaker employees and attracting highly qualified individuals. One major opportunity for future research is the documentation of a research design that focuses on practical ways of establishing HR practices to influence employee retention. There is also the need to consider using a wider representative sample.
The second area that future research could examine is applying this study’s research proposition to longitudinal and case study designs. A small-scale study could present a comparison of HR performance of different organisations at different times, drawing conclusions about those aspects which most strongly influence employee contentment and thus reduction of turnover.
1.7 Implications for Theory
A study of employee turnover is required to consider the relationship between voluntary turnover and the performance of organizations. Research indicates that a review of international HR practices would assist HR management in the UAE, which could benefit by understanding the nature of the work and learning how to adapt a framework of HRM standards (James Guthrie & Olian, 1991; Jackson & Schuler, 1995; Locke & Thelen, 1995). The fact is that the UAE has few documents dealing with HR management when compared with other nations (Kamel Mellahi, 2007; Okpara & Wynn, 2008). Researchers have pointed that the Middle East, like any other developing region, is still assigning importance to cultural traditions and excluding employees from decision making (A. Ali, 2004; C. Robertson, et al., 2001; Tayeb, 1997). This was brought to light in the employees’ interviews with departed employees’ questionnaire, in which most respondents gave low scores to the HR standards adopted by organisations. Enterprises in Middle Eastern countries are known to adopt identical methods to accomplish their tasks, and hence they share attitudes towards HR policies. Social and cultural concerns are not the only distinguishing factors between nations. Several other influences frame the HR management as it is practiced in one region or another, chiefly marked as national and religious issues (Pawan Budhwar & Kamel Mellahi, 2007; Murphy, 2001).
A responsible, committed HR department is invaluable to any organisation that wishes to promotes employees’ participation in achieving organisational targets (Arthur, 1994; M. Youndt, 2000). Via responsible HR policies, employees learn the relevance and responsibility of their work and see how these relate to personal career goals; they can then associate their personal growth and profits with the organisations’ (B. Becker & B. Gerhart, 1996a; Delery, 1998; Delery & Doty, 1996b; James & David, 1999). It has been observed that female, elderly workers and these with (6–7 years of experience are most dissatisfied with HR practices. There may be many reasons for this, such as women’s diverted attention as they have to shoulder the household responsibilities or conflicts between diverse work populations of young and old, inexperienced and highly experienced hands. An organisation needs develop an HR system that caters for diverse needs in its drive to reach the organisations’ retention targets.
1.8 Contributions to Organisational Practices and Policy
Research suggests that it is important to consider current leadership style as a threat to labour in the UAE government workplace. Without devaluing the current effort of the UAE government to support leaders, the information gained from this research should provide a foundation for managers and policy makers to recognise that it is the responsibility of government to initiate measures that will make the workplace experience a more pleasant one for workers, and so weaken the intent to leave.
This research has both practical and theoretical significance, in the provision of information that will help in the understanding of HR practices that affect the retention of employees. The study of these two variables will contribute to the improvement of employee welfare in UAE public organisations. An understanding and identification of critical variables in the practices of HR and their association with organisational commitment and job satisfaction is also provided; these may improve employee retention among the public organisations in Dubai and Sharjah.
The current HR standards found in organisations located in the UAE and especially in Sharjah, score poorly. The cause could be, as suggested by Ali (2004), that organisations in the UAE have less documentation and more emphasis on cultural traditions than similar organisations in other countries; this includes not enabling employees with decision-making rights. Although these HR standards were approved by the Dubai and Sharjah respondents, their response to values such as deriving job satisfaction from their work and feeling a commitment to the enterprise was neutral. As people who enjoy the nature of their work are more inclined to maintain a long-term relationship with the organisation, the current study was interested in examining the factors that encourage UAE workers to quit the public sector; in this case, it may be asserted that worker dissatisfaction is partly a product of poor HR standards. Those in higher management levels wanted more choice and autonomy to be available; the neutral response to organisational commitment indicated by one and all may similarly be attributed to lack of this quality. This is in line with the findings of studies conducted by Clarke (2001), Jones and Skarlicki (2003), Morrow, et al. , (2005), and Taplin and Winterton, (2007), which highlight the crucial relationship between leadership and human resources. Maintaining a good rapport between supervisors and subordinates assists in retaining employees, while offering no emotional incentives to remain is a gateway for employees to resign their jobs.
From the results of this research, it is clear that UAE companies need to focus on their HR policies, which fall short of acceptable standards. As suggested by James and David (1999), companies should concentrate on satisfying their employees’ needs in order to receive more from them in return. Freedom to manage on their own, and the liberty to work on projects needs without interference (E Lawler, 1992) are two obvious and achievable goals.. Using such techniques that enhance commitment to the organisation and its policies, enables employees to improve their skills and develop greater levels of self-confidence (Kochan & Osterman, 1994; E Lawler, 1992; Levine, 1995b; Pfeffer, 1998). Not only will such changes in UAE organisations improve the chances of retaining employees (Arthur, 1994; Huselid, 1995; Shaw, et al., 1998) but it will enhance the chances of recruiting suitable employees from the dwindling numbers of job-seekers (James Guthrie, 2001b)
Moreover, positive results are expected from HR policies that recognise both the intrinsic and extrinsic qualities of UAE firms. This is in line with the findings of a survey by Huselid’s (1995), in which case over 900 US firms identified HR practices of two varieties: one that concentrated on developing employees’ skills, and one that placed stress on motivation. The first selected employees on talent, and provided training and motivation; profits in these companies increased significantly. The second promoted motivation though performance evaluation; the productivity level in these companies rose significantly. Arthur (1994) finds that high-commitment HR systems directly correspond to an increase in the numbers of long-term employees, which he attributes to developing their skills and increasing their opportunities to contribute towards the organisation. This confirms the current analysis, which is that HR policies practiced in the UAE are insufficient and inadequate, and require change.
1.9 Conclusion
The current high rate of employee turnover in the UAE is expensive. The role of HR departments is to satisfy the needs of employees through the provision of training, rewards systems, equality of treatment, and benefits, among others, to foster employee commitment and reduce the rate of employee turnover. This research presents a study of those aspects that HR has to perform in UAE public organisations to achieve these goals.
There is a clear need for changes in the human resources management practices and style in UAE public organizations in order to ensure employee satisfaction. This will greatly help reduce high turnover rates. The workplace environment needs to be made fully suitable for the needs of all employees by ensuring leadership styles that encourage decentralization and delegation of duties, equality in the implementation of employee evaluation and appraisal systems, and provision of sufficient employee benefits, rewards, and structures for recognition.
Organizational heads need to look into the various factors that influence employee retention in UAE organizations, key among them the leadership style of top managers, fairness in the treatment accorded to employees by their supervisors, a clear understanding of what is expected of them, and being made to feel good about their work. Discrimination, whether on gender basis or on grounds of one’s experience still remains a problem in need of an urgent solution. To deal with this problem the HR departments need to come up with practices involving planning the future needs of all employees, eliminating discrimination and bias against some employees, installing a systematic and fair reward system, and providing compensation benefits and allowances such as medical insurance.
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