HRM Practices in Saudi Arabia between Local and Multinational Banks - Essay Example

The Banking sector in Saudi Arabia has developed considerably during the last few years. The government is developing this sector under the policy of developing the non-oil base of the economy. Globalization is posing considerable strains on the system. Human resources are keys to the success of a bank as its performance is highly dependent on the professionals.
The questionnaire method has been used for data collection. Equal numbers of people from local and international banks in Saudi Arabia were asked the questions. Likert scale was used to devise the questionnaire.
It has been found out that in the domain of recruitment and selection the main effective HR practices are scientific recruitment methods and clear job analysis. In performance management, the significant practices are quick and professional feedback. Effective training is also an effective HR practice. On the other hand, it was found that multinational banks have more effective HR practices than local banks.
The first chapter is prepared to give an insight into the research problem discussed. It provides background information on the overall structure and function of the Saudi banking sector. It then presents the literature review conducted to elucidate human resource management in general. Following up from the fundamentals the importance of this discipline is studied and explained with respect to the banking sector in particular. The study evaluates the significance of human resource management to this industry by comparing the theoretical grounds with the best practices. Finally, the purpose of the research will be explained along with the research question and research chapter description.
The Saudi economy has experienced periods and spurts of a great economic boost. The globalization of the world economy over the past two decades has had its impact on this Middle Eastern economy. With direct foreign investment on the rise, the local economic sector also boomed.