Ronald Coase, a Nobel Prize winner in the field of Economics, in 1973 has clearly demarcated the distinction between the activities that are coordinated by markets while others that are managed and coordinated within firms. Human resource management (HRM) is an important aspect of an organisation and has great share in contributing towards the success. HRM can be defined as the process through which an organisation manages its employees including hiring, screening and appraising. The HR professionals are also responsible for setting up compensation policies and making a new employee aware of the current organisational environment in a specific company (Coyle-Shapiro, et al., 2013). It plays an instrumental role in helping the concerned company is achieving the set targets in a socially and environmentally sustainable way (Strandberg, 2009). A number of theories have already been developed in relation to HRM which encompasses various aspects of well-being of the employees while ensuring that the company gains from the efforts being employed towards the employees (Itika, 2011).
Qatar is a one of the emerging emirates among the Gulf countries and is one of the richest countries in the world (Gonzalez, et al., 2011). Over the years Qatar has been on the path of high growth and is one of the most preferred countries by professionals from India, Pakistan, Arab, etc. which can lead to the assumption that majority of the Qatari economy is dependent upon the contribution of the labours from foreign countries and other experts of foreign origin. All the major organisations comprise expatriates even in significant leading positions. The Qatari population finds it difficult to get employed in both private and public companies. Against this backdrop the HR professionals are having tough job in aligning the company goals with individual objectives of the employees. In this research paper First Finance Company has been selected to understand the role of HRM in an organisation in Qatar.
Purpose of the project: This paper focuses on the role of human resource management in shaping the organisational culture of the company. Through the detailed analysis the researcher has identified the issues related to HRM and how these problems impact the efficiency of First Finance Company. Whenever there is an issue related to the management of HR the performance of the entire organisation gets affected and may result in disruption in corporate culture giving raise to conflicts. Under such circumstances management may turn to implement some changes within the structure of the company. The outcome of such changes may be towards the interest of the company or otherwise. This paper provides the ways that had been operational in order to manage the problems till date. In conclusion this paper provides recommendations to tackle the issues related to HRM in a more efficient way.
The company was founded in the year 1999 and is regulated by the Central Bank of Qatar. The investors had started with an initial capital of 50 million Qatari Riyals and within a span of a decade First Finance Company was successfully operating with a capital base of 639 million Qatari Riyals. The year 2010 can be regarded as the turning point for this finance company as 100% of its shares were acquired by Barwa Bank (First Finance Company, 2015a). This acquisition established the status of First Finance Company as a major player in the local market. The company has been committed to provision of quality services to its customers and all its financial activities are aligned to the full range of Shari’a financial service norms. First Finance Company serves both individual and corporate customers located in small and marginal enterprises. First Finance Company has been a proud contributor of the success of Barwa Bank Group which is regarded as the most progressive bank in Qatar (Barwa Bank, 2015).
The primary objective of First Finance Company is to establish its name as one of the world’s leading Islamic finance company. The company objective encompasses their progressive philosophy and superior service quality so that they can become one of the significant contributors towards improvement in Qatari society. The company prefers to have a modern outlook while preserving the essence of traditional culture (First Finance Company, 2015b). The working environment of First Finance Company is in need to certain reforms which can attract, motivate and retain skilled employees so that they can accomplish further tasks with efficiency resulting in further addition to the capital base of the company. The challenges faced by the company with respect to management of it human resource can be regarded as one of the limitation to further growth. In the next sections the problems will be discussed in details and the paper will conclude with the recommendations to improve the current scenario.
There are several issues related to individual hiring some of which are described here.
Unavailability of skilled job applicants- The first and foremost issue that the HR professionals have to face is the shortage of skilled labour and it is a significant issue to the HRM of First Finance Company. The HR professionals of the concerned company are unable to recruit skilled labour from within the Qatari population. For any organisation to compete successfully in the global arena it is very important to hire educated and skilled labour so that the company can go ahead and incorporate advanced technological solutions to solve the deficiencies in the production process. The intense completion is a feature in the baking and financial accounting sector in Qatar.