Essays on Abu Dhabi Islamic Bank in the United Arab Emirates Case Study

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The paper "Abu Dhabi Islamic Bank in the United Arab Emirates" is a perfect example of a human resources case study. Human resource management can be defined as all the activities that are associated with the management of people in the organization. Based on the definition of human resource management, most researches on human resource management have been focusing on a multiplicity of roles instead of single and isolated management activities. Human resource management practices in most organizations are classified based on the recruitment process, selection and retention of employees, development and talent management, training, motivation, and enhancement of performance, teamwork and staff participation, job security, performance-based compensation, and planning of communication (Cooke, 2001).

The competitiveness of any organization in a dynamic business environment is the ability to manage a very effective human resources system to be in line with the strategies of the organization. In today's, banks, the choice of the human resource practices is playing an important role in influencing the financial position of the organization. The banking sector is categorized as a service industry and no serious risk management can be done without an efficient and knowledgeable human resources (Cooke, 2001). This essay is focused on the Abu Dhabi Islamic bank in the United Arab Emirates.

The essay will start with a description of the organization as well as its human resource function. The paper will also deal with the human resource function within the organization play a ‘ strategic role’ as defined by theory. Lastly, it will give human resources specific steps that could be taken to enhance the effectiveness of the human resource function within my organization. A Brief History and Background of the Organization Abu Dhabi Islamic Bank is an Islamic bank based in Abu Dhabi city in the United Arab Emirates (Huidobroet al 2007).

Founded in 20th May 1997 as a public joint share company through the Amir Decree number 9 of 1997, the organization officially began its operations on November 11th, 1998 and was officially inaugurated by Abdullah bin Zayed, the then United Arab Emirates minister in charge of information and culture on the 18th day of April in 1999. The company’ s operations are carried out in accordance with the Islamic religion’ s Sharia principles (Huidobroet al 2007). The Human Resource Department in the organization The Abu Dhabi Islamic bank’ s human resource management department was established at the time when the bank officially started its operations formally in 1998.

The main task of the department has always been to carry out the recruitment process, selection and retention of employees, development and talent management, training, motivation, and enhancement of performance, teamwork and staff participation, job security, performance-based compensation, and planning of communication (Huidobroet al 2007). Being an Islamic institution, the bank’ s operations have been tailored to meet the requirements of the Sharia principle which are a set of rules subscribed to by the Islamic religion.

However, the organization like others in the industry has always faced a major human resource challenge (Huidobroet al 2007). The Islamic banking industry has been growing at an encouraging pace, but the market was established to have a deficit in the human resources who have been trained on a banking system that is Sharia-compliant. This meant that Islamic staff had to be sought from non-Islamic institutions to offset the deficit although they did not have knowledge of the Islamic financial system as well as the culture.

In response to this, the United Arab Emirates in 2000, forced all the domestic banks as well as the foreign-owned banks to significantly increase the number of Islamic employees in their banks in what was known as the Emiratization policy where only UAE nationals were hired (Huidobroet al 2007). As a result of this policy, the Abu Dhabi Islamic bank enforced the policy by placing the Islamic financial system trained managers in all their branches and rolled out a training program for its existing workforce on the management of Sharia-compliant banking operations (Huidobroet al 2007).

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Huidobro, B., di Girólamo, S., Zegers, G., & Valdivieso, C. (2007). Abu Dhabi commercial bank: Abu Dhabi, Emiratos Árabes Unidos. ARQ (Santiago).no. 66, pp. 32-36. doi:10.4067/s0717-69962007000200005

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