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Semester: Second
Program: Business Studies - System Track
Course Code: T306B
Total Mark:
Awarded Mark:
Mark details
Allocated Marks
Allocated Marks
Question
s
Weight
Marks
Criteri
a
Q1
Q2
Q3
60
50
20
17
20
18
Presentat
ion -4
Marks
100
Referenc
ing -5
Total
85
Word
Count -3
2
Students Total Mark
ELibrary
-3
Total
-15
2
83
Notes on plagiarism:
A. According to the Arab Open University By-laws, the following acts represent cases of cheating and
Plagiarism:
Verbatim copying of printed material and submitting them as part of TMAs without proper
academic acknowledgement and documentation.
Verbatim copying of material from the Internet, including tables and graphics.
Copying other students notes or reports.
Using paid or unpaid material prepared for the student by individuals or firms.
B. Penalties for plagiarism ranges from failure in the TMA to expulsion from the university.
Declaration: I hereby declare that the submitted TMA is my own work and I have not copied any other persons
work or plagiarized in any other form as specified above.
Student Signature
Dear Maryam. Your performance is good. Your answers have encouraging features. You should
have paid attention to diagrams. Please see the notes below for more detailed comments. All the
Best.
Employee Turnover in
Saudi Arabia
Tutor Signature:Syeeda
Fahmeedunnisa
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Employee Turnover in
Saudi Arabia
1. Acknowledgement:
I would like to pay my utmost thanks to the Almighty Allah first
and then to the teachers and friends who helped me during my
four years of study at Arab Open University in Kingdom of Saudi
Arabia, Dammam Branch. During this period, I met a lot of
amazing people who influenced me to develop skills and
knowledge optimistically in many aspects. I am grateful to Arab
Open University which gave me an opportunity to achieve my
goal of obtaining a Bachelors in Business Studies. A special
thanks to my tutor Mrs. Syeda Fahmeedunnisa for her support and
guidance for T306B course and she did not hesitate to provide
any assistance required while formulating this project.
2. Abstract:
The main objective of this project is to discuss about the factors
that contribute to the Employee Turnover in Saudi Arabia over
the past years and propose viable solutions which can help
reduce the consequences faced by the turnover and improve the
situation. Applying the concepts from T306B course, I am going to
use the Soft System Methodology to tackle as the situation is a
mess. This project report is going to consist of three parts:
1) Tutor Report: In which the situation will be expressed by the
systems practitioner through applying BECM and also by using
diagrams and the Soft System methodology.
2) Client Report: In which I will comprehend the problem situation
to the client in non-systems manner to make them understand
the messy situation.
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Employee Turnover in
Saudi Arabia
3) Project Log: This is the last part which contains two subsections, weekly logs and the overall summary, of the process
time for preparing this project.
Ethicality Statement:
An ethical statement consists of the values, objectives and ethics
that a systems practitioner must aspire in their work. While
applying the BECM, a systems practitioner in ball B should be
aware and should be ethical and must take into consideration the
overall problem rather than in parts. In my ethical statement I
have taken into consideration certain crucial factors such as:
Respecting the perspectives of the other stakeholders which
are crucial in understanding the situation even better.
Accessed only trusted online information sources.
Views are not partial or biased about the turnover of the
employees, instead it is an overall view taken using the
reductionist approach.
My project will help give improvements and resolutions to
the people who face such problem situation.
It is confidential and is not shared with anyone who is not
part of the research.
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Employee Turnover in
Saudi Arabia
Introduction:
Saudi Arabia has been one of the major oil exporters in the world,
attracting millions of overseas labors to work on their land. In the
past years, Saudi Arabia has been dominated by the foreign
labors which resulted in many socio-economic problems faced by
the country because of relying on the expatriate labor force while
the citizens are still unemployed.
The private sectors have suffered from the Saudi and the nonSaudi turnover and are forced to implement the Saudization
program (which now has been replaced by the Nitaqat program)
which had unidentified targets aimed at imposing 30% of Saudi
nationals into the private sectors irrespective of their size and
activities. Nitaqat program, therefore, is a program which will take
into consideration the activity and the size of the entities over a
13 weeks period with Saudi nationals employed in accordance
and then dividing the entity into four bands: 1) Excellent, 2)
Green, 3) Yellow, and 4) Red.
There are many reasons for the high turnover faced by the Saudi
nationals as well as the expatriates such as technological
advancements. The main reason for the private sectors to recruit
the non-Saudi labor is that they cost cheaper than the Saudi
nationals, and as the entities in the private sector are undergoing
the development stage they need to grow and make profit while
still keeping their expenses low at first. Comparatively private
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Employee Turnover in
Saudi Arabia
sectors tend to pay less than the public sectors. The main
difficulty faced by the private entities is that it is impossible to
retain the Saudi employee as soon as they get trained. And due to
the unemployment among the nationals, Saudization has been
imposed on the private sectors.
Tutor Report:
There is a major need to address these issues of turnover in Saudi
Arabia for the sustainable development of the country.
Sustainable development is mainly concerned with the social,
economic, physical and environment aspects keeping present as
well as future in mind.
An aware systems practitioner analyzes and understands the
situation using the tools, concepts and methods to find the
solution to the problem situation. Since the situation is messy,
Soft System Methodology will be applied. According to the
author Nandish V. Patel (1995),
The methodology is simple to use, requiring no elaborate
tools except pen and paper, and yet it is quite
comprehensive and incisive in its ability to identify
problem areas (for instance, lack of information flows)
and to generate recommendations for improving the
expressed problem area.[1]
SSM is used with BECM approach and systems map, spray
diagram, sign-graph, influence diagram and control model to
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Employee Turnover in
Saudi Arabia
Employee Turnover in
Saudi Arabia
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Employee Turnover in
Saudi Arabia
System Map:
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Employee Turnover in
Saudi Arabia
Employee Turnover in
Saudi Arabia
Influence Diagram
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Employee Turnover in
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Multiple-cause Diagram:
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Employee Turnover in
Saudi Arabia
Employee Turnover in
Saudi Arabia
Employee Turnover in
Saudi Arabia
for the problem situation. Soft System Methodology deals with the
human emotions and different perspectives and consists of seven
stages which are applied and comprehended below:
Stage 1: Problem situation unstructured:
The first stage is important as to explore the problem situation
and finding diverse perspectives of the other stakeholders to find
improvements for the problem situation
Wali Rahman and Zekeriya Nas (2013) suggested in their
article that:
There are two widely acknowledged perspectives on
turnover intentions. They are the human capital theory
and social exchange theory. Understanding these
perspectives are considered powerful tools for
understanding workplace behavior (Malik et al., 2011).
The former rests on the assumption that education is
highly critical and instrumental in improving the
production capacity of a population.[2]
Saudi Arabia is a land which was previously said to be dominated
by foreign labor that are considered to have skills and experience,
flexible with the working hours and can be hired on low wages. As
per the Saudization and Nitaqat program most of the private
sector companies were obliged to hire a certain number of Saudi
nationals to create job opportunities for the nationals which lead
to the employee turnover for expatriates who had to lose their job
as it was necessary for the Saudi nationals to be hired. As a
consequence, it increased costs for the developing smaller firms
to shut down as they couldnt achieve the rules imposed by the
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Employee Turnover in
Saudi Arabia
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Employee Turnover in
Saudi Arabia
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Employee Turnover in
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Employee Turnover in
Saudi Arabia
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Employee Turnover in
Saudi Arabia
Customers
Actors
Transformation
World view
Owner
Environmental
Constraints
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Employee Turnover in
Saudi Arabia
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Employee Turnover in
Saudi Arabia
1)
Determining
the root
causes of
employee
turnover
caused by
the
Saudization
2) Improving
laws and
regulations
3) Seeking
for the
resources
required
Present in
the real
world
situation
Yes,
Government
authorities are
already
working on
improving the
systems.
Comment
Agenda
The ministry of
labor is already
working on
improving
No
Yes
Government
must
encourage the
technical skills
required for
jobs.
Yes
No, limited
resources are
there in the
private sectors
It is hard for
private firms to
provide high
wages to the
nationals,
Yes
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Employee Turnover in
Saudi Arabia
which is a
requirement
causing them
to shut down.
4)
Encouraging
the small
businesses to
take Saudi
nationals
Yes
Small
businesses
play a key role
in creating job
opportunities
rather than the
bigger firms.
Yes
5) Improving
the
situations for
the
prosperity
Yes, it is
partially
successful but
needs
improvements
Awareness of
education and
trainings must
be given to the
nationals so
that there is no
need for
imposing small
businesses to
hire them.
Yes
6) Motivating
the Saudi
nationals to
work hard
No, it is not
there in the
current
situation but
needs to be
It is important
to motivate the
current people
to help future
generations to
Yes
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considered.
Employee Turnover in
Saudi Arabia
follow the
footsteps for
prospering the
country.
Managing is the last ball of the BECM approach it deals with the
overall performance. It helps in managing the complex situation
looking at it in a holistic manner with respecting the perspectives
of the other stakeholders who are involved in the situation and
who will be a part in proposing viable solutions. There are three
choices to manage the engagement with the stakeholders; 1)
decide for other stakeholders, 2) decide with other stakeholders,
and 3) enable stakeholders to decide. According to Thomas N.
Garavan (1995), he stated in his article that:
Employee Turnover in
Saudi Arabia
Employee Turnover in
Saudi Arabia
These small private firms are much more important for the
economic growth than the bigger firms as they produce more
jobs. These small firms allow innovation to the business
entrepreneurs. Motivating and training the people on-the-job and
off-the job can help in improving the skills and people must be
encouraged to study, be productive and also encouraged to find
the area in which they have their interest and work for it with
passion to achieve it.
Stage 7: Action to improve the problem/situation:
At this stage, the root cause of the problem is found with the
conceptual map being made it is now recommended that the
discussion is transformed into action plan to improve the current
situation or eliminate the factors causing it. These following
changes will then lead to a decrease in employee turnover and
increased awareness among the other different sectors and
people.
Conclusion:
According to Alexandre Ardichvili (2012), he suggested in his
article that:
The first possible objection is that even in organizations
that are mindful of sustainability issues in their strategic
choices and business operations, HRD practitioners are
usually not hired to advance the sustainability agenda;
instead, they are asked to focus on immediate goals of
performance improvement. I agree that this is a realistic
assessment of the current situation in the majority of
business organizations.[4]
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Employee Turnover in
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Employee Turnover in
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Client Report:
To the Ministry of Labor,
I am a student of Arab Open University KSA branch, majoring in
Systems Practice, while doing my final year project on
Saudization: A root cause of foreign employee turnover, I have
come across many issues that need to be addressed to improve
the current situation. As you know that at present Saudi Arabia is
facing issues regarding employing its local people within the
private and the public sectors. The Saudization program which
has been implemented by the Government has only been partially
successful as it caused the turnover of expatriates who were
dominant in the jobs aspect of Saudi Arabia. The main issues that
the Kingdom can face are the shutting down of the businesses
due to ineffective and unskilled labor. This can cause the
suppliers or businessmen from the other countries to lose interest
in Saudi Arabia because of its strict laws and order and the
volatility of job due to Saudization in private sectors which is very
hard to keep up with. The main purpose of Saudization was to
give jobs to the locals but it has to be dwelled in gradually as the
private sectors can have negative impact of it. The lack of English
language among the locals and the fact that they are less inclined
towards manual work and cannot be fired or replaced is the main
challenge faced by the Kingdom.
I have come up with a few recommendations on improving the
current situation of chaos among the labor sectors for the
prosperity of the country being the sole purpose. The people must
be encouraged to be fluent with the English and have some
education background related to the job they will be hired for.
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Employee Turnover in
Saudi Arabia
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Employee Turnover in
Saudi Arabia
Project Log:
It took me 5 weeks to complete my project along with all the
research work and diagrams. Below is the summary of tasks I
completed each week:
Week 1:
In the first week, I did a lot of research on what current situations
are in the business world in Saudi Arabia. In relevance to the
current situations, I choose my topic and collected some basic
information about it and wrote an email to my supervisor to get
her acceptance on the topic by explaining all the data I collected
with how I will be dealing with the complexity. Luckily, my topic
got accepted and was advised to discuss about it in accordance
with the business rather than social issues only. Later, I did a
thorough research on the topic to collect vast information about it
to write in my report and get aware of the consequences. Often I
changed my mind about the topic as I questioned its relevance
with the business world. But the supervisor encouraged us to be
patient and deal with the topic she has approved. I did my
research and searched almost every website that had the
material about employee turnover in Saudi Arabia and started
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Employee Turnover in
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writing my report. And after all this I wrote my Weekly log for the
first week.
(187 words)
Week 2:
I started with revising my systems knowledge I gained from T205
course and T306 course. In this week, I started writing and
designing the cover page for my report. I wrote my abstract,
acknowledgment and ethicality statement which was the
reflection of my ethics which I was supposed to follow in my
project. Now I was ready to start with the Tutor report giving an
introduction about the case I was going to improve the situation
for with a brief discussion on BECM. After discussing about the
BECM, I had to decide what is my problem situation and how am I
going to solve it. According to the case, in my opinion I chose Soft
System Methodology to solve the case because the situation was
messy and was too ambiguous to clearly define what the cause
was for it, solution could not be found but changes can be made
to improve the current situation. I started with the SSM stages out
of 7; I did first 2 stages in this week. After this I updated my
weekly log in order to capture my weekly progress.
(185 words)
Week 3:
In this week, I did a preview of the stages I did in the previous
week and tried to complete the first 4 stages of SSM and also
discussed the CATWOE for root definition. I started making the
conceptual map and wrote the details about the conceptual
model and found some e-library resources to add in my project
and did referencing for it. Also I tried to make the comparison of
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Employee Turnover in
Saudi Arabia
Employee Turnover in
Saudi Arabia
project with the research work and diagrams. After this I wrote the
overall summary and completed the referencing and organized
my project on Word so that I can review it for one last time before
submitting it on the LMS.
(134 words)
Overall Summary:
This overall summary is going to tell how this course T306 has
helped me in grooming my knowledge about how real-world
situations can be assessed and how can they be improved and
solved if any problem arises. This course has helped me shape my
knowledge in a way that how the tangible and intangible aspects
of the real-world situations faced by organizations can be
problematic. T306 course has helped me look at the real-world
situations as a complexity which is a systems approach. It has
helped me in refining my systemic thinking rather than the
systematic thinking that we have been taught throughout our life
to solve any problem that may occur. This course has helped me
in learning different techniques through which you can tackle
situation. This course also helps you in getting familiar with how a
human can solve problems and manage complexities which are
essential in the business management. It has given me the
chance to act as a system practitioner and provided with the
opportunities to implement the concepts, methods, techniques,
strategies, and tools to improve and rectify any situation from the
real world. This course helps the systems practitioner to solve any
case at the right time in a right manner by using different
diagrams, methodologies, methods, ideas, tools and concepts,
and also describes the different cultures and environments that
may influence the organizations.
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Employee Turnover in
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The most important thing in this course and the most emphasized
concept I learnt was the BECM. The metaphor that they used for
the systems practitioner is the juggler. It is the duty of an aware
system practitioner to maintain the four balls while solving any
situation. These four balls are; Being, Engaging, Contextualizing
and Managing. These four balls emphasize on being aware of the
current situation and engaging in the situation and once you get
engaged in the situation and choosing on which method to choose
to solve the problem. We are supposed to reflect on the situation
by understanding and solving with the best suitable method in a
systemic way. Systemic approach is the approach which takes into
account the whole system rather than the part. Systematic
approach whereas takes in account the situation by dividing it into
parts. An aware systems practitioner evaluates the problem
situation in systemic way which takes in account all the aspects
that make up the system rather than just the part of the system.
In this course I learnt a lot about the information systems and
information technologies including the Data, Capta, knowledge
and information. This course encourages on reflection. Reflection
is of three types; reflection before action, reflection on action and
reflection in action. Reflection before action, for instance, can be
the time I started discussing the topic for my project. Reflection in
action, for instance, can be the time when I found the complexity
but faced a problem in solving it so had to change my perspective
on it. Reflection on action can be the example of when I finish my
project I will reflect on my action by reviewing it and making
amendments. All these aspects in the end have been reflected
through my project. The values, beliefs and circumstances were
also a topic in the T306 course it helped me in implementation of
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Employee Turnover in
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Referencing:
[1] Nandish V. Patel, (1995) "Application of soft systems
methodology to the real world process of teaching and
learning", International Journal of Educational Management, Vol. 9
Iss: 1, pp.13 23 [Online]. Available from: http://proxy.aouelibrary.com:9797/MuseSessionID=0910047m3/MuseProtocol=htt
p/MuseHost=www.emeraldinsight.com/MusePath/doi/full/10.1108/
09513549510075998 [Accessed on 30th April 2015]
[2] Wali Rahman, Zekeriya Nas, (2013) "Employee development
and turnover intention: theory validation",European Journal of
Training and Development, Vol. 37 Iss: 6, pp.564 579 [Online].
Available from: http://proxy.aouelibrary.com:9797/MuseSessionID=0910047ld/MuseProtocol=http/
MuseHost=www.emeraldinsight.com/MusePath/doi/full/10.1108/EJ
TD-May-2012-0015 [Accessed on 30th April 2015]
[3] Thomas N. Garavan, (1995) "Stakeholders and strategic
human resource development", Journal of European Industrial
Training, Vol. 19 Iss: 10, pp.11 16 [Online]. Available from:
http://proxy.aouelibrary.com:9797/MuseSessionID=0910047m3/MuseProtocol=htt
p/MuseHost=www.emeraldinsight.com/MusePath/doi/full/10.1108/
03090599510095825 [Accessed on 30th April 2015]
[4] Alexandre Ardichvili, (2012) "Sustainability or limitless
expansion: paradigm shift in HRD practice and
teaching", European Journal of Training and Development, Vol. 36
Iss: 9, pp.873 887 [Online]. Available from: http://proxy.aouelibrary.com:9797/MuseSessionID=0910047m3/MuseProtocol=htt
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p/MuseHost=www.emeraldinsight.com/MusePath/doi/full/10.1108/
03090591211280946 [Accessed on 30th April 2015]
[5] Christine Blackmore, Ray Ison, Jake Chapman, Rosalind
Armson and Simon Bell (2005), Managing Complexity: a systems
approach, T306 Course books (Blocks 1-5).
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