The paper "Human Resource Management at Saudi Aramco Arabian American Oil Company" is a perfect example of a business assignment. To understand Human Resource Management (HRM) in the Saudi Aramco (Arabian American Oil Company) context, it is important to have an overview of the HRM and business systems in the Middle East region. Studies suggest that Western and Middle Eastern organizations have adopted different approaches for human resource management in the region (Westerduin, 2010). As compared to other developed countries, there are major differences in the cultures in Arab countries which are observed in their management.
There are also different managerial approaches which have various pros and cons. The company requires skilled and experienced labor and thus requires an effective human resource management strategy. Chevron, a Saudi Aramco stakeholder, has had to review contracts with the state on issues concerning employment and training of global workers. The costs and benefits of recruiting local, rather than using international managers have become a strategic employment matter for Saudi Aramco. Saudi Aramco is the leading company in Saudi Arabia offering the best employment services on the island and it offers similar conditions to both its national and international employees.
It is estimated that about eighty-seven per cent of Saudi Aramco employees are Saudi nationals (Thompson, 2011). Thompson adds that another advantage of domestic human resource management is that, the largest portion of the Saudi Aramco workforce is made of geophysicists-and geologists who are highly educated and most of them trained abroad. There is no problem concerning culture or managing diversity because most of the workforce is Saudi, while the managers and the experts are hired from different countries to do their work the Saudi way.
Therefore, having trained a small number of managers abroad with competent and high-level skills, and using a large domestic labor force, it is easy to coordinate the activities of the company. According to Duerr (1986), having the right people in the right place at the right time emerges as the key to a company’ s international growth. If Saudi Aramco is successful in solving this problem, there is the confidence that they can cope with other problems. Saudi Aramco is run by a team of highly qualified managers who have studied in very innovative and excellent universities such as Harvard.
This opens the conversation about the bright side of international human resource management. Saudi Aramco gives direct recruitment opportunities to applicants from all nationalities, but it has comprehensive early career training programs open to Saudi and Kuwaiti nationals as they lead by eighty-seven per cent. The main problem faced by Saudi Aramco is to make the performance of its workforce meet international standards. In each of its operations, it has had to compete with other national and international oil producers for the recruitment of thousands of highly skilled engineers.
It should, therefore, invest in the training and development of a national workforce in order to keep abreast of international developments. In other words, it has to manage its local workforce globally. The company should also offer a very competitive salary package and a variety of incentive awards to all its employees. This managerial approach will benefit the company by giving it competing for power (Morley, et. al, 2011).