Importing Western Human Resource Systems and Practices Into a Saudi Company: A Case Study Analysis

Abstract

This research investigated the importation of Western-originated human resource systems (HRSs) and associated management practices into a Middle Eastern (ME) Saudi company. The first goal of the study was to understand how and why the key decision-makers in an ME company made and enacted a strategic decision to implement and adopt a Western-developed HRS and its associated management practices into their workplace. The second goal was to investigate how the strategic decision influenced individual employees in the company. In theory, HRSs and practices help organisations to achieve their overarching goals by strategically creating focused systems and management practices such as attracting, retaining and nurturing members of the organisation to support the alignment of employees' personal goals with the primary goals of the organisation. The literature indicates that Western HRSs and practices were founded based on Western cultural contexts and values; consequently, these systems and practices may not apply in a Saudi context, where values and behaviours are different. This is explained by national cultural differences between Western and ME countries. To apply these systems, the literature indicates that change management strategies can be used to facilitate readiness and the success of the desired change. The literature also indicates that there are key success factors for the implementation of HRSs and change that may involve progressive leadership, effective change strategies and cultural compatibility of the system to the context. To explore the Research Questions, an in-depth, interpretive single case study approach was undertaken using the qualitative data collection methods of semi-structured interviews (with decision-makers, system implementers and system users) and document analysis. This assisted in unravelling the decision-making and implementation approach and justification, as well as the implications for HR practices, managers and individuals in the case setting. Also, triangulation of the two methods was carried out to further ensure the validity and richness of the data sources. The study was conducted in the Saudi Telecom Company (STC), which is the largest player in the ME region. Three broad themes pertained to the Research Questions resulted from the iterative coding process of the interview data. Theme 1 indicated power dynamics in the selection and decision-making facilitated or hindered the adoption. Theme 2 indicated an opposing dynamic between the gains and challenges in the system's implementation. Gains (intended or actual) resulting from the adoption, such as integration, meritocracy and control, are challenged by several cultural and organisational factors, including Saudi cultural influences and weaknesses in the STC's performance culture. The two categories of influences created forces that resulted in several negative reactions to the adoption, as shown by an almost total absence of change leadership and change management strategies-especially in the absence of comparative cultural analysis-as an important part of the adoption process. This is discussed under the third theme. The overarching conclusion from the study highlighted a significant misalignment of cultural differences in the assumptions embedded in the HRS and its associated management practices, which contrast with Saudi cultural assumptions embedded within the STC. This misalignment was not addressed in the decision-making, adoption and implementation processes. Moreover, there was evidence of dynamic interplay between cultural misalignment and the company's structure, organisational culture, leadership and change management strategies, which further reduced the efficacy of the adoption and implementation processes. The STC's bureaucratic leadership and siloed structure hindered effective communication between individuals and management. This misalignment exacerbated communication issues resulting from conflicting culture-based communication rules. Also, the STC's organisational culture was not historically supportive of HR functions. HR activities were deemed to cost more than they returned. Cultural misalignment made this perception even more problematic because the system caused issues that reinforced people's scepticism about the value and utility of HR activities. Finally, the interview data indicated that the company did not manage change well, with obvious gaps in the change process. At the same time, cultural ambiguity caused by the misalignment created a negative reaction to the change, and this was not addressed in any change management strategies. Implications for theory, methodology and practice are suggested by the findings. Human resource management (HRM) theory should encompass national cultural dimensions because it is no longer sustainable for national cultural expectations and issues to be ignored in favour of the 'one-size-fits-all' best practice type of logic that currently dominates and that was detected in this research. To contribute to this area, a proposed adaptation of Lewin's change model was modified to include two operative components that emerged from the findings of this study: a comparative cultural analysis component and a systems-level and organisation-level congruity analysis phase. Methodologies used for future HRM research should include those that can provide insights into the cultural context. Practical implications include applying and evaluating the proposed change model by adapting it to any adoption or evaluation of the importation of a Western HRS into a non-Western context. Further, the STC could send managers and implementers to a Western workplace to inculcate themselves in management cultural practices, and vendors could consider sending their system designers to customers such as the STC to understand the key cultural aspects and develop a mutual understanding of the contexts and concepts.