Sample Assignment Evaluating an International HRM Strategy

Introduction:

In the year of 2019, Raytheon Company and Saudi Aramco have signed a contract related to Memorandum of Understanding (MoU) for developing their businesses as a joint venture which will develop the services of cyber security in Saudi Arabia (Defenseworld.net 2019). This joint venture will raise the cyber security related protections which is already available at Saudi Aramco. Saudi Aramco already protects its customers, suppliers and affiliates. It will be helpful for building up the cyber capabilities in Saudi Arabia (Defenseworld.net 2019). This joint venture will market and deliver the integrated software of defensive cyber security as well as hardware capabilities. It will perform for performing and developing the activities. Saudi Aramco is a leading producer for chemicals and energy which drives international commerce and it enhances the people daily lives internationally (Saudiaramco.com 2019). Raytheon Company is a technological based company along with innovation leader specializing in defense, cyber security and civil government related solutions (Raytheon.com 2019). This report will be based on the strategies of Human Resource Management of the joint venture of Raytheon Company and Saudi Aramcothat have a contract to develop a business in Saudi Arabia. Thisreport will also highlight the impact of economic factors of Saudi Arabia in the HR strategies.

Country profile of Saudi Arabia:

In Saudi Arabia, the market of cyber security is expected for demonstrating formidable development across the forecast period based on the growing awareness related account among the governmental enterprises and bodies related to cyber-attacks as well as enhancing internet user base (Techsciresearch.com 2019). In addition to this, the development of mobile workforce, coupled with increasing number of cyber-attacks in retail, defence sectors, healthcare, government and BFSI for recognizing the theft, account access, financial gain and so on, is also propelling the cyber security market of the country. The aim of Saudi Arabia is todevelop the security related Information and Communication Technology (ICT) that is also responsible for enabling the businesses as well as residents of Saudi Arabia for carrying out their daily basis activities with comfort and convenience that have been constant subjected to several types of cyber threats (Anon 2019). As a result, the many individuals can loss their private information and money. In the current scenario, Saudi Arabia wants to resolve cyber threat and protect the information of people and protect the privacy of the private sector and public corresponding investments and initiatives for realizing the vision related to a digitally secured economy.

Pestle Analysis

Political Factor: In Saudi Arabia, political condition is stable. It requires revamping policies as well as growing ties with China (SWOT & PESTLE.com 2019). Therefore, any international organization can be able to develop its own business in Saudi Arabia due to its stable political condition.

Economical Factor: In Saudi Arabia, there is a 10th development plan that is known as Saudi 2030 vision (SWOT & PESTLE.com 2019). The economy of Saudi Arabia is based on the oil production. The important fact is that Saudi Arabia is one of the richest countries for its oil production. The economic condition is also stable in Saudi Arabia. Therefore it is quite possible to expand the business in the market of Saudi Arabia which can be fruitful.

Figure 1: Saudi Arabia’s economy in a glance

(Source: Gao.gov 2019)

Social Factor: The most important aspect of Saudi Arabia is young population. Therefore new entities in a market can higher young generation with low cost (SWOT & PESTLE.com 2019).

Technological Factor: In Saudi Arabia, there are so many people available in the market with technical education (SWOT & PESTLE.com 2019). Therefore for this particular joint venture, the HRM can get the employees with technical background. There is strategic partnership dealing with the foreign organizations in Saudi Arabia also.

Legal: In Saudi Arabia, there are laws related to intellectual property rights and labor laws (SWOT & PESTLE.com 2019). The joint venture has to follow these rules for expanding their business in Saudi Arabia.

Environmental Factor: Due to stable environmental condition, the joint venture can easily expand their business in Saudi Arabia.

Comparison between host and home country with charts and graphs

There are several federal agencies along with the critical infrastructure of USA such as communications, transportation system, financial services and energy is based on the informationtechnology systems in order to carry out the process and process and operations related essential data and information. But in the USA there are certain amount of risks in terms of IT systems are constantly increasing containing internal threats from unwitting or witting emerging, employees and escalating threats internationally as well as the emergence of innovative and new destructive attacks (Gao.gov 2019). In the global cyber security data, the USA holds 21st rank and Saudi Arabia holds 79th rank.

Figure 2: USA’s position in national Cyber security index

(Source: Ega.ee 2019)

Figure 3: Saudi Arabia’s position in national Cyber security index

(Source: Ega.ee 2019)

In terms of national cyber security index Saudi Arabia places 23.38 and in terms of digital development level it places 67.64 (Ega.ee 2019).

Figure 4: Graph of USA’s cyber security in different sectors

(Source: Ega.ee 2019)

Figure 5: Graph of Saudi Arabia’s cyber security in different sectors

(Source: Ega.ee 2019)

The difference between both of these is -44.26. In terms of national cyber security index the USA places 64.94 and in terms of digital development level it place 82.33 (Ega.ee 2019). The difference between both of these is -17.39. Therefore, it is clear to all that the USA is in higher position and it has better cyber security system rather than Saudi Arabia.

Economic factors influencing the HR strategies in Saudi Arabia:

All the economic factors are belonging from the external factors that can be able to influence the HR strategies. Economic factors contain all the economic forces that affect the operation system of HR in Saudi Arabia. High levels of relevant economic factors are consumers, globalization, suppliers and competitors.

Suppliers: In terms of HRM, the suppliers provide human related resources to the joint venture in Saudi Arabia (Your Article Library 2019). The suppliers contain the colleges, universities, consultancy organization, training institutes, and employment exchanges and so on. The inputs related qualities of the employees are based on the suppliers.

Competitors: Competition in the joint venture in Saudi Arabia plays a vital and significant role in terms of functions and activities of HRM (Your Article Library 2019). This joint venture can gain the competitive advantage due to the presence of other cyber security related companies.

Globalization: Because of globalization, the HRM is required playing a challenging role. The HRM develops competitive advantage for their concern (Your Article Library 2019). The International organizations have to identify constantly their operations as well as redeploy their energies over the critical zones of competence.

Customers: The customers of joint venture influence the HR functions also. The consumers are referred as kings (Your Article Library 2019). They want high level of cyber security at very reasonable price. Everyemployee in that organization must share in the direction of accomplishing the quality of cyber security.

Global HR practice

There are some important practices that are conducted by the international human resource management in order to manage the organizational behavior and the work culture (AIHR Digital 2019). The practices are discussed below:

Organizational issues regarding HR practice implementation and development:

Cultural differences in Saudi Arabia

All Saudis practices Islamic religion and Islam operates their own personal economic, legal and political lives. Basically this Islamic religion was born in Saudi Arabia. Therefore, millions of Muslim visits in Saudi Arabia in every year. Most of the Muslims in Saudi Arabia are belonging from the Sunni however a huge number is also belonging from Shia (Commisceo-global.com 2019). The accurate time is listed every day in the local newspaper and on the television also. Friday is the Muslim Holiday for Saudi Arabia. In that day everything is closed. Most of the organizations close on Thursday also. At the time of Ramadan, all the Muslims must have fast from the time of dawn to dusk (Commisceo-global.com 2019). All the Muslims are permitted in order to six hours in every day. Fasting contains no drinking, eating, gum chewing or cigarette smoking. Expatriates are not needed to fast however the Muslims must not drink, eat, chew gum or smoke in publicly. It is possible to identify other places for the purpose of worship (mainly in Riyadh Jeddah and so on) for Hindus, Christians, and Sikhs that serve emigrant communities.

T&D section

Lack of Employee Engagement: It has been observed that in most of the cases the employees are reluctant to attend training and development program. According to Noe et al. (2017), in most of the organizations t&d are not focused on the day-to-day operational aspect.it is the main religion that the employees lose interest on the ineffective training and development program conducted by the company.

Lack of Managerial Support: another crucial organization issue regarding the training and development is lack of managerial support. In most cases the managers are fail to realize that an encouraging and supportive working environment can only achieve an effective training. Therefore, in order to conduct a successful training program the company needs to focus on creating a friendly and supportive work environment.

Low Return on Investment: The low return on investment is another major problem in the context of effective training and development. While constructive training and development session demands various expensive tools and resources, the immediate effect on the bottom line is negligible.

Inappropriate Training Program: It has been observed that most of the training programs do not address the actual weak areas of the employees. In the opinion of Sabella and Analoui, (2015), Inefficient training expert, insufficient training module are the major reasons for a successful training and development program.

Social Aspect of Saudi Arabia

Different Communication Style: The difference in communication style can be a major concern in the context of implementing HR practices. Without any proper briefing, the employees might be frustrated and confused. In addition to that, different approach of communication tends to hinder the employee performance and team efficacy. Moreover, the distinct societal role of different genders can hamper the gender equal selection policy of the company.

Flexible time management attitude: it has been observed that the Arabian employees take a different approach regarding the punctuality and time management. The Arabian society follows a more flexible time management concept compared to other European countries. This particular issue can be a major factor for missing the deadline and other important task schedule. In this context, the development of diverse team can be most challenging for the HR professionals. Without the application of efficient strategies, the company may experience lack of organizational performance due to these problems.

Evaluation of HRM functions:

Recruitment and selection

Strategy 1

Commercial talent network

Commercial "talent networks" are online podium, which is used in order to promote the corporation brand name. In the opinion of Vetrákováet al. (2018), the main aim of this strategy is to attract innovative faculty from a variability of sources, which contains job candidates, staffs, former students, followers, dealers and even clienteles. Commercial talent network strategy will be helpful for Saudi Aramco and Raytheon as it is used to interconnect job openings, profession information, and information of other organization. The company can easily apply this strategy as now a day it is very widespread among the large organizations and are progressively being implemented by minor and standard size organizations as well. A talent network assists as an promotion and publicity center for brand name of Saudi Aramco, Raytheon.

Strategy 2

Developing an end-to-end faculty brand

In current days, several organization are concentrating on developing end to end faculty brand in order to attract and find skilled candidates (Prathyusha, 2019). A talent brand refers to how Saudi Aramco and Raytheon are being professed by its existing employees, previous employees and future employees. In the viewpoint of Chungyalpa and Karishma (2016), in this strategy new talent will attracted as everything about the environment, culture and performance of the organization is clear to them. Saudi Aramco and Raytheon can develop sturdy faculty brand plan to decrease their budget per appoint and reduce turnover rates. In order to create a faculty brand the HR department and marketing department of the organizations need to work together. Faculty brand will set Saudi Aramco and Raytheon from other organizations and provide the clear reason why talented candidate should work with them.

Strategy 3

Practice of applicant tracking software (ATS)

One fast developing trend is quick implementation of Applicant Tracking Software. As opined by Do and Ohlsson (2018), the companies will get benefit from ATS strategy of recruitment, as the ATS is specially developed in order to meet recruitment requirement of an organization. This software emphasis on handling the whole recruitment procedure, observing ad movements, and making a brilliant candidate experience. According to Kulkarni and Che (2019), Saudi Aramco and Raytheon can use ATS in order to post career openings; screens recommences, and produce interview entreaties to possible applicants by e-mail. Moreover, ATS has many other features such as individual applicant tracing, appropriation tracking, computerized resume grade, and modified input forms, response tracing, pre-screening questions and multilingual competences which help to improve the selection and recruitment process of the companies.

Strategies

Impact upon organizational performance

Impact on employee commitment

Impact on workforce flexibility

Impact on workforce quality

Accessing Commercial Talent Network

The commercial talent network will help the organization to attract most efficient employees, which in turn will boost the organizational performance in the long run.

This direct interest on their profile and direct approach of recruitment will help to increase the employee commitment towards the company.

The company will be able to hire the employees, which are needed most. This particular approach will evidently increase the workforce flexibility.

The recruitment of efficient and necessary employees will increase the quality of the workforce.

Developing an end to end recruitment

It will eradicate the third party influence on this selection process. The company therefore can hire the employees with the sole aim of organizational performance.

The relationship between the employee and employer will be stronger, which will increase the employee commitment (Chungyalpa and Karishma 2016).

Without the undue pressure of third party, the organization can maintain its workforce flexibility while hiring.

The selection of most talented employees will boost the workforce quality of company.

Using Applicant Tracking Software

The company will be able to reach most talented employees for increasing its organizational performance (Do and Ohlsson 2018).

The direct appreciation from the company can increase the employee commitment.

The company can approach only those employees who are needed to formulate more effective team (Kulkarni and Che 2019).

Again, this direct approach will be able to enhance the quality of the company workforce.

Training and Development

Strategy 1

The most important strategy of HRM in terms of training and development purpose is internationalization of marketing integration(UKEssays.com 2019). This strategy is followed by the organization or joint venture while it aims to enhance business into the international market. The international organizations rely based on the low cost structure as well as offer the selected or given cyber security related products to Saudi Arabia where this joint venture has the expertise (Business Jargons 2019). As a joint venture, the HRM department should provide the proper training related to the new market, working structure, new product to the newly appointed employees as well as the previous experienced employees who are constantly working with these organizations in different nations. According to the Reinforcement theory, the behavior of the employees will change and they will behave for getting positive result or outcome (MBA Knowledge Base 2019). The training and development program should be associated with the organizational objectives. Therefore, the organization will expect the positive outcome with the help of conducted training and development program. For influencing the employees to take a part into the training program the HRM can arrange rewards programs that can be benefited either after giving exam related to the program or after implementing this on their job roles. In that case the rewards will be like that promotion, certificate, promotion or bonuses.

Strategy 2

Another important strategy is cross cultural factors(UKEssays.com 2019). Based on the cultural factor of the host country the HRM of the joint venture should arrange a regular team meeting for buildup internal communication. Therefore each member of the member can get to know each other. The most important thing is that the managers or team leaders will come to know each team member clearly. If the HRM delivers opportunities for the employees to accept acknowledgment for their multicultural skills or even identify them. As a result they can avid this outcome (Mitrefinch 2019). HRM should create the structure related to success. The management should know the cultural differences of the team. The HRM must develop rules and regulations as well as maintain them. According to the Hofstede’s cultural dimensions theory, the values of team member can be impacted by the culture of society. The employees can have a strong feeling related to pride (En.wikipedia.org 2019). The employees can place the importance of time and freedom. They can respect the privacy and for privacy (Mindtools.com 2019). The employees will be expressive and they are allowed for showing emotions, anger as per requirement.

Strategy 3

The third and most important strategy is importance of technological change(UKEssays.com 2019). The HRM should implement this strategy to find and retain the best talented employees.This technology is used by the human resource management in benefiting the hiring and recruitment method. Machine learning technology will improve the capability of the target candidates with their personalized job postings. With the help of this technology the human resource management will help the organization to understand their employees who are experiencing the organization (Techfunnel 2019). Technology allows for the employees feedback to be gathered and analyzed for creating better experiences for the employees. According to the theory of experiential learning, there needs and demands of the organization are addressed through this (MBA Knowledge Base 2019). Experiences give the employees of the HRM a maturity and it increases the power of learning with the proper knowledge. Because of the involvement, the HRM is capable to conduct attest related to self-evaluation that gives them to understand the effect of this learning.

Strategies

Impact on organizational performance

Impact on employee commitment

Impact on workforce flexibility

Impact on workforce quality

Strategy 1

Positive Impact

Positive Impact

It depends on the organization.

It depends on the employees.

Strategy 2

Positive Impact

It depends on the employees’ engagement

It depends on the organization.

It depends on the employees.

Strategy 3

Positive Impact

Positive Impact

Positive Impact

Positive Impact

Conclusion:

This report is based on based on the strategies of Human Resource Management of the joint venture of Raytheon Company and Saudi Aramco that have a contract to develop a business in Saudi Arabia. This report has been also highlighted the impact of economic factors of Saudi Arabia in the HR strategies. The most important thing is that this report has been highlighted mostly the HRM related aspects.

References:

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