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3.Main Problems Existing in Saudi Employee Incentive Mechanism 8
3.1 Arbitrary Incentive Lacking System Guaranty 8
3.2 Lack of Long-term Incentive Mechanism 9
3.3 The Unitary Motivation Approach 9
4 Main Reasons for the Lack of Incentive Mechanism 10
4.1 Low Quality of Managers 10
4.2 Lack of Basic Work 10
4.3 Opaque Salary System 11
4.4 Lack of Good Enterprise Culture 11
5 Innovation of Enterprises’ Employee Incentive Mechanism 12
5.1 Managers’ Striving to Improve the Quality 12
5.2 Insisting on Having Material and Spiritual Incentives together 12
5.3 People-oriented Career Planning and Management 13
5.4 Establishing Scientific Performance Evaluation System 14
5.5 Strengthening Enterprise Culture Construction 14
6 Conclusion 14
1 Introduction
1.1 Research Background
Human Resources Management (HRM) is gaining predominance in the Kingdom of Saudi Arabia and with it the belief that HR department should be managed by highly qualified and experienced inpiduals. Under the influence of the macroeconomic background and the world financial crisis, the establishment of incentives has become a new direction and a new stage of strategic human resource development.
Saudi is at a critical stage of development, we should continue to take advantage of labor resources and talents. As more companies should pay attention to the training and retention. Saudi Arabia is one of the largest Arabic country in Middle East . The country is bordered by many countries in north Jordan , Iraq in northeast, Bahrain, Kuwait, Qatar and in the east the United Arab Emirates , the Red Sea in west and Oman in southeast. Saudi Arabia has more than 28 million people, and its about 830,000 miles . Saudi Arabia has a desert-based climate (MEP, 2011 Nian). With $ 435 billion in 2010, nominal GDP ($ 510 billion in 2011) . Saudi Arabia consider the Gulf's largest and most stable economy and in the world too. Saudi Arabia joins WTO in December 2005, which makes the Saudi economy becoming increasingly important to the Arab region and the world (the United Arab Emirates, 2002).
Saudi Arabia reserves are one of the most biggest or largest in the world . the main product the country have is oil and petrochemical with 2 of the biggest company in the world (ARAMCO ) for the oil business and (SABIC) for petrochemical the country have 90% export oil and 75%of government revenuse(UsDs.2o11)both of this 2 company's plans to grow bigger and invest in the new mining field and refining . as also the country signed a framework agreement with a US trade and investment in July 2003, and in December 2005, join the World Trade Organization.
Kingdom of Saudi is a young country more than 60% of the population are less than 30 even though the unemployment rate at 10.8% and the rate rises to 40% for youth under 30years of age. Based in the labor force survey , there is 14.9% of the workforce are public employees. Compared with 2001 at 15.54%, considering that the government only employs only Saudis. Theses statistic somewhat are puzzling in a country that one third of its workers are expats.
Companies compete in the new century, and one of the most important competition is the competition of labor force, which has become a common concept in the academic world. Advocating the transformation of the large population of labor force, the market competes increasingly fiercely, so we should better tap our human resources in order to servive in the fierce competition of the market place.