HRM in Oman…do we need to think differently!

Convergence, Divergence or Middle of the Path: HRM Model for Oman

Abstract

We are living in a highly dynamic, complex and chaotic world of business where organizations have to be an effective customer responsive organization. They have to gear up for becoming an effective global competitor. In GCC countries and especially in Oman, firms have no choice left as well. They are facing the onslaught of globalization and the recent economic recession has further worsened the situation. They have to be flexible and re-look at their HRM system and structure and its hard-defined procedures though still it remains a challenge for them to adopt these changes. But it is evident that they are trying hard to be efficient and responsive organization in the recent past. It is widely accepted now that HRM can act as a key means to achieve a competitive advantage in Omani firms.

Despite all acceptability of HRM, certain questions need to be answered. Researchers have made great attempt in examining the applicability of some of the theoretical models of HRM but very little research or probing exists for this part of world. Researchers have questioned the universal applicability of the Anglo-Saxon model. There is no denying to the fact that the development of HRM has witnessed a two bipolar paradigms i.e., universalistic/convergence and the contextual /divergence paradigm. The applicability of an HRM model for GCC counties is also an issue which needs to be reevaluated. Most of the oil-based economies of GCC have their contextual factors which are sharply different from the US and Western developed countries. For example, Omani firms depend heavily on the expatriate workforce and they comprise 54 percent of the total workforce. GCC countries’ expatriate workforce exceeds 10 million and constitutes up to 70 percent of the GCC labor force. It accounts for 88 percent in UAE, 83 percent in Qatar, 81 percent in Kuwait, 72 percent in Saudi Arabia and 55 percent in Bahrain. GCC countries have and taken many steps to strategically cut down its reliance on expatriate workers and Oman has also adopted Omanization policy (employing Omani nationals only—where certain percentage of employment has to be attained by firms by certain date, which is different from sector to sector) has become an important issue and many firms believe that it limits their ability to compete and impacts the value chain of their competitive advantage.

But this is an important fact that the HR function has attracted the attention of corporate managers, consultants and researchers alike in GCC countries and in Oman as well. Though, the contextual factors have generated a dilemma before the firms in Oman in dealing with the change in their respective HR process. Either they should adopt the divergence or the convergence approach. The convergence approach or labeled as the best practices approach is based on the normative statements of what HR practices should look like together with the proposition that the adoption of these practices will lead universally to the organizational success. This approach is highly influenced by American researchers and commentators whereas the divergence approach advocates that the HRM model must be embedded and reflects their culture-specific elements. These approaches need to be evaluated in GCC countries’ socio-cultural context for serving the objective of the realization of organizational goals in their firms. Many researchers had compared the different HRM systems/models relevant to different parts of world and find that the relevant socio-economic context is highly pertinent for establishing an effective HR system and an integration of convergence and divergence approaches is the most useful approach to overcome the deadlock between proponents of the two concepts. In this background, the present paper based on secondary data will attempt to analyze the HRM model relevant for Oman and identifies issues and factors which impinge upon the formulation of HR system, HR policies and HR practices in Oman. There is hardly any research conducted on this issue in this part of world and this paper will contribute to generate an enquiry in that direction. The convergence and divergence debate is enriching and determining the whole HR agenda worldwide and some researchers are also propagating the middle path. This paper will surely shed some light on national HRM policies and practices which have impact on organizational performance and how different stakeholders are contributing towards this end in Oman. The need for understanding and analyzing these underlying issues is huge and this paper will provide a purposeful insight into this. In the absence of any research on this theme, this paper will surely help in contributing towards the HR debate in this part of world and especially in GCC and Oman. This can be seen as a first enquiry in this regard which can be expanded to the GCC countries in the next episode.

Looking forward to comments: khan.drsami@gmail.com