Application of strategic compensation

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Abstract

This research paper explores different life situations in which an individual can apply human resource concepts and theories within the UAE. The paper illustrates different real world incidences where human resource methods or models can be applied in resolving business related difficulties. The study analyses contexts using human resource philosophies and ideas.

It also adopts recommendations on the basis of the reviewed thoughts. The paper bases its findings on human resource theories, research articles and sources that can be found in the UAE. It identifies three significant real life instances in which one can apply the motivational theory.

The contexts may include a transformation within the business, a disastrous event or an occasion of determination of salary. The research illustrates several applications of human resource concepts majorly through a review of relevant literature. In addition, it gives suggestions on how to apply human resource management ideas in real life contexts. The paper concludes with an explanation on the critical role of human resource management in enhancing organizational success.

Introduction

A systematic study of efficient management of compensation and benefits in organizations is crucial in human resource management. Ideas like strategic compensation planning, elements of the total pay mix, job evaluation systems, the compensation structure, and governmental regulation of compensation can be relevant to a human resource manager when discharging his functions.

In addition, theories on employee benefits and service programs, administration of incentive plans, and other primary compensation issues like variables, skills and knowledge based pay plans, and linking pay to performance can also be necessary in human resource management. This paper explains different real life situations where the concept of strategic compensation can apply in the management of Human resources within the UAE.

Real life situations where HR concepts apply

Human resource management involves the control of associations among groups of people in their functions as employees, employers and managers. The control requires the use of relevant human resource approaches. The approaches can be utilized in different real life contexts within the UAE. The circumstances may include instances when an organization may be going through change and difficult experiences. Situation I: Migrant workers in Dubai protest against underpayments

The first real life situation where the concept of strategic compensation can apply is the strike witnessed in Dubai of migrant workers over the issue of payment. In this case, several migrant employees working for leading organizations in Dubai staged street demonstrations to demand better salaries and wages. The workers were also seeking compensation for overtime. The strike was an unusual one. The government does not allow strikes in Dubai. It was the first major labour unrest since the historical

Dubai economic crisis.

During this strike, employees in Dubai’s leading shopping malls, in Deira District and the Industrial area, moved to the streets to complain over insufficient pay and lack of support by the companies for their families. The employees claimed that their pay was too small to cater for their needs.

The employees were earning about 650 Dirhams equivalent to US $190 in a month. They also complained over lengthy delays in their pay. In addition, the employees noted their work schedules during overtime were not adequately compensated by the companies (Nuseibeh, 2009).

An article in the “7-Days-in-Dubai” online newspaper also recounts a story when Dubai workers stopped working to protest poor pay. The Arabtec Construction Company workers claimed that the kind wages their organizations offered them could not sustain their livelihoods. The real life context depicted the theory of strategic compensation to resolve the crisis. It is essential for companies to ensure that their remuneration can maintain the survival of their employees in terms of a fair pay and a living wage (7-Days-in-Dubai, 2013).

Situation II: Nepali workers offered a high salary but with stringent demands

An article in the Republica Economy and Business newsfeed features a story about Nepali manpower agencies’ receipt of high remuneration demands from labour organizations. The article explains that employment agencies within the UAE region are offering competitive salaries and remuneration for employees. The story notes that there is high demand from Gulf countries like Qatar, UAE, Saudi Arabia and Malaysia to lay-off workers and cut expenditure on human resource as a result of global financial crisis.

However, UAE organizations are working hard to deliver better remuneration for their workers (Ghimire, 2010). The human capital theory can be utilized to rectify this problem. Gulf countries may use the theory to recognize the utilitarian value of workers in enhancing productivity. Proper reward structures can be introduced to boost the morale of workers and consequently the companies can increase their profits.

Situation III: Indian workers’ problems in UAE

An article on the Hindu online newspaper recounts how Indians face diverse challenges in the UAE. This fact is evident with the high rate of suicide among workers in blue-collar jobs. Despite the UAE being a wealthy nation, the region has a high dependence on imported human resource to develop and maintain the production processes. However, a World Bank report on the human resource situation in the UAE and other Middle East countries explains that Indians workers face various forms of discrimination.

A number of the forms of discrimination may include abuse and job restrictions and poor remunerations. The strategic compensation and motivation theory can resolve this challenge through drafting measures that can improve the welfare of employees. This fact is necessary in the promotion of the productivity of employees (Kumar, 2012).

Situation IV: Filipino maids shunned in UAE over minimum wage demands The Philippine government has a standard minimum wage of about US$410 (Dh1, 468). This wage bill is almost double that of the wages set by other nations like the United Arab Emirates. This aspect makes UAE employers favour maids from Sri Lanka, Indonesia and India. Most UAE employers may not be willing to meet a salary limit of US$410 (Dh1, 468).

The article recounts that this fact leads to a decrease in the number of Filipino maids moving to United Arab Emirates to seek work (Ruiz, 2013). The strategic compensation theory can resolve this real-life challenge through setting of international wage standards around the globe. In addition, organizations can use the cost of living to gauge the minimum compensation package for an employee.

Analysis of situations using HR theories

Application of human resource theories may be necessary. They can be essential in a situation in which an organization needs to change or transform its system. These real life situations reveal that the strategic compensation concept is applicable in human resource management. Resolution of these situations can be done through the increase in employee compensation. This point leads to an improvement in the way in which workers discharge their duties.

Human resource theories epitomize the power of the motivational theory of human resource management. The motivational approach illustrates that the function of the human resource manager is to find the appropriate balance of improving the opportunity of the employees. This fact is evident in the reviewed real life situations in the UAE.

Since the world economic regression, the fate of migrant employees has been worsening in Dubai. This crisis has led to delay or cancellation of diverse development projects. Companies need few employees to cope with the amount of work. For instance, the Al Habtoor Leighton Group of companies has been trying to cope with human resource challenges. The company has been struggling despite having a heavy investment with Emirate’s most successful business families.

It is apparent that most companies do not adhere to workers’ rights in the United Arab Emirates. The UAE has come under intense criticism over workers’ rights from international labour organizations. Workers in the construction industry form the largest proportion of Dubai’s population.

These immigrant workers come from the populous Indian subcontinent. They work under a three-year contract initiative that binds them to unpredictable employers. This fact controls the labour market in favour of UAE companies. It comes at the expense of thousands of labourers.

The human resource management concept of strategic compensation can address this real-life situation in the UAE. Companies need to address difficulties through the enforcement of labour rights. Companies need to appreciate the rationale for improving employees’ welfare. The employee unrest indicates serious underlying grievances that face employees in the UAE.

A number of the problems can be resolved through the application of strategic compensation theories. Issues like insufficient wages and salaries can be resolved through competitive remuneration that can motivate and empower employees. Organizations need to resolve the problem of delayed payments to contractors as part of the employee compensation plan.

The Dubai government may identify a minimum payment structure to avoid under-payment of employees. In addition, organizations may offer time-offs bonuses and other incentives to motivate employees to discharge their functions. This aspect can be realized through the application of the strategic compensation concept in this real life situation in the UAE.

It is evident that employees’ motivation can affect the level of productivity within an organization. This fact makes it paramount for organizations to improve their compensation for employees as a motivation incentive (Ghimire, 2010).

Application of HR theories on jobs in the UAE

The resolution of Dubai’s strikes and labour unrest can be done through the application of the compensation concept and motivation theory. This fact provides solutions for most challenges affecting companies within the UAE. It is essential to apply human resource theories on employees or work matters. Organizers exert pressure on employees to deliver their mandate in the UAE. Employment agencies adopt a systematic approach to determine the right employees for companies in the UAE.

The UAE applies diverse human resource theories to determine job duties, activities, objectives, products, services, or processes for a given job. Certain human resource development policies guide UAE organizations. The UAE applies principles like staffing, opportunity analysis, competitive recruitment and human resource compensation in labour management. The UAE is also effective in the application of employees’ health programs and maintenance of a respectful workforce and human resource development and management.

It is unavoidable for organizations to have situations that may alter the state of production. The management of a company may initiate plans to change the company’s customer management and production systems, or application of information technology. This deviation may compel the company to apply human resource theories of strategic compensation to cater for the transition.

Strategic compensation may comprise of different rewards that staff receive. This notion may apply when the administration seeks to reward employees for performing their jobs. These rewards may comprise of intrinsic or extrinsic compensations. Intrinsic compensation represents employees’ critical psychological states that result from performing their jobs. In contrast, extrinsic compensation includes both monetary and non-monetary rewards.

The occurrence of tragic events within the environment of an organization can be a reminder of the issues human resource officers may address. It may be difficult for the officers to determine prospective occurrence of disasters. However, employment regulations require employees’ compensation to offset the effects of disaster. A company must apply human resource concepts to constitute a formal system for managing diverse aspects of human resource.

Power and political structures of an organization play an essential function in the day-to-day running of different roles. The organization of political power may affect employees’ behaviour in terms of reporting, designation of authority, decision making and business specialization. Human resource experts may resolve the diverse real life challenges in the United Arab Emirates through a combination of these essential factors.

Recommendations

Human resource managers ought to ensure that employees contribute positively towards their work. Managers need to create mechanisms of improving motivation within employees in order for them to contribute meaningfully to their jobs. In addition, employees can improve their motivation through redesigning their jobs to reduce monotony, improve autonomy and allow devolution or delegation of duties to other trusted employees.

The task of a human resource manager is to ensure clarity and determine the appropriate use of human personnel within an organization. The manager may assist employees in the achievement of organizational goals. This research postulates that human resource departments need to introduce philosophies that contribute to the improvement of employees’ participation. Workers can be the greatest assets of organizations.

They run the production processes in organizations. Human services play crucial roles in the management of vital functions in the daily operations of an organization. Therefore, motivation of human personnel needs to be ranked as a top priority by relevant organizations seeking to maximize their performance and achieve success in the production world.

Organizations need to integrate human resource principles and ideas in real life contexts in order to resolve human resource problems. This fact may ensure efficient resolution of challenges in organizations and improve the level of productivity of workers. Integration of human resource models and ideas in real life situations may point out the shortcomings of company departments. It can also highlight areas that need further improvement.

Different factors can motivate workers in organizations. Motivating factors may include money, affiliation, status or meaningful duties. However, every employee may express diverse needs due to different targets and talents. The motivational theory of human resource management likens employees to reservoirs of prospective talents. Various real life situations reveal the importance of the motivational theory of human resource.

For instance, determination of salary provides human resource officers with an opportunity to reward workers according to their efforts. In addition, disaster compensation may provide the administration the chance to reward employees who go through some challenges. Difficult roles may motivate workers to work hard in their duties to achieve organizational objectives.

Conclusion

Organizations within the UAE operate in dynamic environments. They compete to acquire the best human resource talents from the job market. Most organizations invest large amounts of resources in the advertisement and hiring of appropriate job applicants. This factor may be an indicator of the competitive business nature within the UAE. Organizations need to adapt to shifting operations to remain relevant in the business sector.

Professionals must employ reliable human resource theories to solve real life challenges. Application of human resource theories and models can be effective in resolving most human resource dynamics in organizations. This paper demonstrates that an expert can employ human resource principles to solve challenges and manage disasters within organizations, determine appropriate salaries of employees and enforce a change or transformation.

Companies need to improve the overall capacity of application of human resource management principles and approaches to resolve their challenges. Human resource management professionals need to develop a structure for organizing and implementing human resource policies within an organization.

A reliable framework for resolving real life situations through human resource management concepts offers a basis for coordination and rapid expedition of the development of an organization. Organizational human resource development enhances the prospects of the realization of objectives. Businesses in the UAE need to adopt measures to boost their institutional capacity, efficiency and realization of a desirable output.

References

7-Days-in-Dubai. (2013). How can we feed our families with Dhs 750? Web.

Ghimire, P. (2010). Nepali workers offered a high salary with higher demands. Republica Business and Economy. Web.

Kumar, A. (2012). Indian workers, lost in a gulf of despair. The Hindu. Web.

Nuseibeh, G. (2009). Migrant workers in Dubai protest against underpayments. Risk and Forecast. Web.

Ruiz, R. (2013). Filipina maids shunned in UAE over minimum wage demands. The National. Web.

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