A Review of HRM Practices and Labor Productivity: Evidence from Libyan Oil Companies

Abstract

The aim of this study is to review how human resource management (HRM) practice influences labor productivity in oil companies in Libya. This study brought the fact that due to the distinct features of oil companies, common discourses of MRM very often ruled out. In addition, this study focused that HRM is applied at the micro level, which influences the labor productivity in oil companies. Nevertheless, the crucial determinants for fostering labor productivity are not individual level of HRM practice, instead the macroeconomic aspects such as political instability and quality of governance and diplomatic relation. Therefore, this study prescribes a holistic approach, which is that along with micro level of HRM practice and political and macroeconomic stability are crucially important to foster labor productivity.

The state of HRM in the Middle East: Challenges and future research agenda

“…Further, there are serious concerns related to employable skills of locals. Such developments have serious implications for the HR function in the region and in particular in relation to its role towards improving organizational performance (Iles et al, 2012;Mohamed et al, 2015;Waxin & Bateman, 2016).…”

“…The various HR processes are often designed with Western practices in mind, but when carried out, the practices are often not well aligned to business strategies, they are implemented for narrow administrative purposes and remain loosely connected to each other.^It seems that a mixture of Islamic principles and Western approach to management of HRs seem to be influencing HRM in Oman. This is further evidenced from Aycan, Al-Hamadi, Davis, and Budhwar's (2007: 30) analysis, where Bon the one hand, there is an increased emphasis on Omanization and adherence to Islamic principles yet, on the other hand, globalization imposes pressures to adopt global standardized HRM practices and policies.Ô ther themes emerging from our analysis include an emphasis on training and development in general and management development in particular, the effects of regulations on HRM in the Saudi Arabian private sector (Mellahi, 2007) and on employment policy in Kuwait (Al-Enzi, 2002), the impact of HRM on organizational commitment in the banking sector in Kuwait (Zaitouni et al, 2011), the efficacy of high-performance work practices in Algerian firms (Ramdani et al, 2014), the impact of HRM practices and corporate entrepreneurship on firm performance in Turkish firms (Kaya, 2006), talent management strategies in the UAE (Singh & Sharma, 2015), the impact of cultural value orientations on preferences for HRM (Aycan et al, 2007), HRM and labor productivity in Libyan oil companies (Mohamed et al, 2015), HRM and innovation in the Iranian electronics industry (Manafi & Subramaniam, 2015) and career development in Oman (Khan et al, 2015). Raheem (2016: 77), concluding her analysis about the scenario of talent management in the Middle East, argued that Brecent trends in the demographics of the local population, intensified demand for talent, the changing aspirations of the youth and women and the limited application of sound talent management practices, all make talent management issues even more challenging for organizations in the Middle East than in other parts of the world.^She further elaborated that Bhistorical precedents of talent management in the region have further hampered the sustenance of equitable working environments for both locals and expatriates.…”

The Role of the Job Title and Material and Moral Incentives in Achieving Job Satisfaction, The Case of Libya's Firefighting and Rescue Teams

“…Associated, satisfied, and committed employees also tend to stay with the company, helping to create a competitive advantage for consistent productivity (Kumar & Pansari, 2016;Sahi et al, 2017). Staff reactions such as commitment, satisfaction, engagement and performance are said to be at low levels in various developing countries such as Libya (Mohamed et al, 2015). The few studies conducted in Libya and the North African region claimed that personnel-related measures such as compliance and satisfaction are at a relatively low level, affecting job performance, encouraging scientists to investigate and research the causal variables behind these unsatisfactory measures (Al Adresi & Darun, 2017;Dardar, Jusoh & Rasli, 2012;ElObeidy, 2016;Mohamed et al, 2015).…”

The Middle East context: an introduction

“…Other themes emerging from the literature include the effects of regulations on HRM in the Saudi Arabia private sector (Mellahi, 2007) and on employment policy in Kuwait (AlEnizi, 2002), the impact of HRM on organisational commitment in the banking sector in Kuwait (Zaitouni et al, 2011), the efficacy of high-performance work practices in Algerian firms (Ramdani et al, 2014), the impact of HRM practices and corporate entrepreneurship on firm performance in Turkish firms (Kaya, 2006), talent management strategies in the UAE (Singh and Sharma, 2015), the impact of cultural value orientations on preferences for HRM (Aycan et al, 2007), HRM and labour productivity in Libyan oil companies (Mohamed et al, 2015), HRM and innovation in the Iranian electronics industry (Manafi and Subramaniam, 2015) and career development in Oman (Khan et al, 2015).…”

“…However, there are serious concerns related to employable skills and the mind-set of the locals who prefer not to work in the private sector and on lower-level positions. Such developments have serious implications for the HR function in the region and in particular in relation to its role towards improving organisational performance Iles et al, 2012;Mellahi and Budhwar, 2006;Mohamed et al, 2015;Zaitouni et al, 2011).…”