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An Empirical Analysis of the Human Resource Management Activities in

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Interdisciplinary Journal of Research in Business ISSN: 2046-7141
Vol. 2, Issue. 1, (pp.01- 14) | 2012

An Empirical Analysis of the Human Resource Management Activities in

Retail Sector: A Study of Saudi Arabian companies

Dr. Abdalelah S. Saaty

Dean, College of Business (COB), King Abdulaziz University, Rabigh, Saudi Arabia

Mohammed Owais Qureshi

Lecturer, Human Resource Management, College of Business (COB), King Abdulaziz University,
Rabigh, Saudi Arabia
Email: drzaidansari@gmail.com

ABSTRACT

Human resource management (HRM) generates competitive advantage for a company and also the subsequent
performance of a company is influenced by a set of effective human resource management activities. The
success evident in the Saudi Arabian retail industry is attributable to numerous lucrative activities undertaken
by respective human resource departments. This ranges from planning endeavors to appropriate grievance
handling mechanisms. In this study, we intend to assess the human resource practices in retail companies in the
Kingdom of Saudi Arabia. Primary data based on 355 respondents were analyzed to assess human resource
activities being practiced by retail companies in Saudi Arabia. Six factors were analyzed. ‘Human resource
planning and recruitment’ was fairly practiced in retail organizations. Recruitment practices observe
transparency and equality and thus offer due opportunities. It was also observed that human resource planning
incorporated knowing and sourcing when, where, and how potential employees will be attained to meet the
business demands. ‘Selection’ was also found to be moderately practiced. Though investigating training needs
and organizing promptness to initiate training programs to enhance viable staff development was observed.
‘Training and development’ was found to be moderately practiced in the retail firms. ‘Performance Appraisal’
was found to be moderately practiced in the retail firms. Performance appraisal practices include the use of
standardized assessment templates, periodic and consistent assessments, viable performance criteria, feedback
plans, fairness, and disciplinary processes. ‘Compensation and benefit’ activities include establishment of
attractive base pays and incentives for performing employees. Some common benefits evident in most
organizations entail health insurance and retirement benefits. Finally, impartial ‘Grievance Handling’ is
evident in the Saudi Arabian context. Thus, this paper illuminates the central human resource activities in the
retail sector with regard to the Kingdom of Saudi Arabia.

Research Type: Research paper

Keywords: compensation and benefits, grievance handling, human resource management, performance
appraisal, recruitment, retail, selection, Saudi Arabia, training and development.

1. INTRODUCTION

In this era of strict competition, the retail companies are forced to be competitive. Staffs are a major resource in
any business. This is particularly true in retail industry, which has a very large amount of employees and which
provides a range of services to its customers. The retail human resource environment has its special features: a
large number of inexperienced workers, long hours, highly visible employees, many part-time workers, and
variations in customer demand. Those features also create difficulties to retailers (HRM-Retail Industry, Mary
Anne Winslow). The traditional ways of competitive advantage have to be supplemented with organizational
capability i.e. the firm’s ability to manage people (Ulrich and Lake 1990). Organizational capability relates to
hiring and retaining competent employees and developing competencies through effective human resource
management practices (Ulrich and Lake 1991).

The roles of human resource (HR) department in numerous organizations are reputable regardless of the
business scale. Every organization requires a proficient human resource department in order to acquire viable
competitive advantages upon its contenders and achieve its business strategies (Martin, 2008). This provision is
applicable in the retail sectors with the intent of enhancing market divide, competency, productivity, and
relevancy of employees. It is vital to establish a proficient human resource unit in order to realize corporate
goals. The Saudi Arabian retail sector enjoys rich human resource provisions despite business challenges

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engulfing the industry. Prime retail sub-sectors in Saudi Arabia incorporate massive grocery businesses,
automobile dealers, pharmaceuticals dispensers, computers outlets, and prominent electronic shops among
others (Shoult, 2006). Evidently, Saudi Arabian retail entities have adopted varied human resource practices to
aid their dexterity in the market as they strive for a wider market divide and nationwide presence. Human
resource processes are vital in obtaining and maintaining competent employees following the increasing needs
for viable human capitals in the country. The nature and implementation of human resource management
practices is critical in this context as it establishes the fate of the concerned organization. Consequently, the
Saudi’s retail industry has adopted and implemented numerous human resource practices capable of propelling
the industry competitively (Dransfield, 2000).

2. REVIEW OF LITERATURE

Human Resource Management is directed mainly at management needs for human resources (not necessarily
employees) to be provided and deployed (Torrington and Hall 2005). There is greater emphasis on planning,
monitoring and control, rather than of problem-solving and mediation. It is totally identified with management
interest, being a general management activity and is relatively distant from the workforce as a whole (Michael
Poole 2003).

Planning is a vital aspect in the human resource operations. Human resource management uses planning to
scrutinize the present as it focuses on the future (Budhwar & Mellahi, 2006). The changing market demands
require frequent change of strategies in the human resource sectors. This move has provided the Saudi Arabian
retail companies with remarkable flow of human capital globally (Bernardin, 2002). Retail human resource
managers have to consider the current and future concerns of the human resource unit to avoid assumptions and
mismatch of interests (Sharma, 2009). It is notable that Saudi Arabia retail companies have endured their rapid
expansion, and varied market demands through appropriate planning in the human resource context. Retail
industry possesses fluctuating demands for its products hence appropriate prediction of the market trends is
important (Ali, 2005). This helps human resource to plan for the requisite human wealth for the varying seasons,
which is crucial when one considers the aspects of claims and supply hence offering the required workforce.
Concerned human resource management ought to understand the organization’s revenue prospects and plan in
accordingly (Sims, 2002).

Recruiting competent personnel who understand the Saudi Arabia market in the realms of shopping trends,
cultural influences, seasonal changes, and demographic issues is critical in the human resource context
(Kleynhans, 2006). Recruitment is a process of attracting a pool of high quality applicants so as to select the best
among them( Kulik 2004). There are steps in human resource planning and recruitment depending on the nature
of the entity. In practice, the human resource in the retail companies has to consider appropriate planning and
recruitment strategies in order to stay relevant in the Saudi Arabian limelight (Walsh, 2009).

Selection is the process of choosing individuals with the relevant qualifications to fill existing or projected
openings. Staffs selection forms a pivotal process in the human resource department. It depicts the nature of
workforce an organization is going to establish and nurture for its progress. There are numerous practices played
by human resource’s at retail levels in the Saudi Arabian context. Numerous entities have strived to create a
viable selection process where the involved firms provide an equal opportunity milieu for all prospective
employees (Van den Bossche, Segers & Jansen, 2010). Retail companies ranging from oil dealers to grocers
have enacted viable selection practices despite some challenges in the workforce sector. Some companies
undertake employee selection through consultants mandated to embrace such services. Such companies might
use various criteria including advertisement of the concerned vacancies, separating applicants, aptitude tests,
interviews, and the final selection for the organization’s management to verify (Nankervis, Compton &
Morrissey, 2009).

Human resources development is the medium that drives the process between training and learning. Human
Resources Development is not a defined object, but a series of organized processes, “with a specific learning
objective” (Nadler, 1984). Training and Development is a continuous process within the retail industry
following the constant emergence of the new business trends and fresh commodities in the market, which might
require personnel competency in handling and promoting them (Cartwright, 2003). Practices that ensure
effective training and development (TD) are similarly evident in the Saudi Arabian context. The retail industry
in Saudi Arabia has strived to enact viable practices to ensure that the training and development efforts are
successful hence establishing competitive employees within the organization (Randhawa, 2007). Another viable
practice is the consideration of the learning styles and personalities of the target group for appropriate planning
of the training processes (Talwar, 2006). Setting clear objectives, knowing the number of trainees, formulating

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appropriate training and development format, choosing the right venue, and effective training and development
appraisal strategies are other viable practices (Ekerman, 2006). Most retail companies in Saudi Arabia have
embraced these practices. It is crucial to prepare trainees, explain the rationale of the training and development,
incorporate practical demonstrations, and monitor the progress.

Compensation is all forms of financial returns and tangible services and benefits employees receive as part of an
employment relationship (Milkovich and Newman 1999). Organizations use attractive compensation schemes to
attract and retain potential employees. Retail companies in Saudi Arabia similarly practice this trend to ensure
their competitiveness within the industry. Human resource units consider numerous compensation and benefits
practices to ensure maximum utilization of the human capital within the industry (Pynes, 2008). Pawan S.
Budhwar and Yaw A. Debrah compare the basis for compensation for Saudis and non Saudis where the authors
says that the basis for compensation for the non Saudis is cost incurred by the organisation. For Saudi national’s
in the public sector the basis for compensation is cost and socio cultural factors( Human Resource Management
in Developing Countries By Pawan S. Budhwar, Yaw A. Debrah). It is evident that the industry employs both
skilled and unskilled workers hence creating the disparities noticed in the compensation margins (Michel &
Chênevert, 2008). Human resource departments are considering employee due for hire before setting the
compensation scale. The issues concerning basic pay are critical in this context hence demanding cautious
consideration. Additionally, numerous organizations in the industry have enacted bonuses and profit sharing
mechanisms among other benefits pegged on productivity. The act of practicing equity is another crucial aspect
evident among most organizations in the Saudi Arabian context despite the challenges (Wiseman, Gomez-Mejia
& Fugate, 2000). Varied genders in similar ranks usually receive similar pay despite variability in some
organization, which still discriminate women on cultural grounds. Some common benefits evident in most
organizations entail health insurance, retirement benefits, and issuance of company shares among others. The
benefits’ package operates independently, but as a complement to the base compensations and incentives given
to employees (Gomez-Mejia & Balkin, 1992).

Performance appraisal, employee appraisal, performance review, or (career) development discussion may be
defined as any procedure that involves setting work standards, assessing employee’s actual performance relative
to these standards, and providing feedback to the employee with the aim of motivating the worker to eliminate
performance deficiencies or to continue to perform above par. Evaluation of employees’ performance is a
critical provision amid firms. It provides vital information regarding the productivity of an employee and
allocation of benefits that characterize such provisions. Additionally, periodic appraisals act as the driving force
for exemplary performances amid employees (Capko, 2003). Conducting fair performance assessments is
crucial to avoid unwarranted prejudice and promote the objectivity, productivity, and responsibility of
employees (Campion et al. 2011). Most retail entities have set standardized appraisal procedures that give
consistent and reliable results on each employee. Some employees employ a 3600 feedback where the entire
organization’s stakeholder provides their response concerning a given employee (Williams, 2011).

Saudi Arabian retail companies have enacted viable appraisal measures welcomed by the majority of
stakeholders. Other appraisal procedures notable in the region incorporate self-assessment criteria. Concerned
personnel perform their appraisals for consequent adjustments to match the company demands. This is a crucial
aspect since it depicts the elements of self-responsibility and achievement of self-resolutions. Varied companies
use numerical indicators to exhibit the level of performance (Storey, 2007). This incorporates the aspects of
coding where some numbers depict given performance scores. It is crucial to note that varied companies use the
appraisal results to allocate bonuses, decide on promotions, and increase salaries/wages. Saudi Arabia has varied
companies in the retail division; thus, appraisal practices vary from one company to the next (Snape & Redman,
2010).

Handling employees’ grievances is an integral duty of numerous human resource managers. It is crucial to
conduct it transparently with no impartiality in order to restore normalcy within the concerned company
(Venkataratnam, 2004). Retail companies in Saudi Arabia have adopted numerous practices meant to aid the
handling of grievances amid the stakeholders. Various companies have enacted procedures, which they perceive
as viable and effective. One universal approach employed by most human resource incorporate a fair hearing to
the claiming parties and derivation of amicable solutions. Grievances emerge from numerous sources including
disagreements on pay, deprived working conditions, violating employee rights, disagreements amid employees,
discrimination of any kind, sexual harassment, and performance issues among others (Rees & Porter, 2008).
Human resource division has to deal with every grievance to the satisfaction of the victim while exercising
integrity. Human resource unit thus enhances harmony in the organization by promptly solving emerging
matters in its docket.

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Another concurrent practice is the use of divine laws (Quran teachings) to assess and judge grievances
(Budhwar & Debrah, 2004). Evidently, Saudi Arabia is an Islamic territory hence under the influence of
religious doctrines. Quran teachings usually form a remarkable proportion of the grievance handling approaches.
Exercising fairness in every case is essential as indicated before. Moreover, most retail organization have
categorized grievances into groups and designated them to various departments, which can handle them
efficiently within the company (Durai, 2010). Saudi has numerous retail companies with varied norms in the
realms of the grievance handling.

3. OBJECTIVES OF THE STUDY

The main objectives of the study are to assess the human resource management activities being implemented in
retail sector operating in Saudi Arabia. To achieve the main objective, the following sub objectives were set:
1. To access activities regarding human resource planning and recruitment.
2. To access the effectiveness of selection activities.
3. To access the practices of training and development in retail sector.
4. To assess the practices of performance appraisal in retail sector.
5. To assess the activities of compensation and benefits related activities in retail sector.
6. To assess the activities of grievance handling being undertaken by the companies in the retail
sector.

4. STATEMENT OF THE PROBLEM

Despite its unique challenges, Saudi Arabia remains an exciting retailing opportunity. Retailers across the
spectrum are looking to enter this market to cater to a large and growing domestic demand, driven by its
sizeable young population. Those retailers and retail centre’s that can create a uniquely Saudi experience will be
the ultimate winner as they will be able to fully capitalize on the market potential and increasing levels of
spending power available to the Kingdom’s consumers (David Macadam, joneslanglasalle).

All these challenges have forced the retail companies to be competitive. What makes a firm best is not just
technology, bright ideas, masterly strategy or the use of tools, but also the fact that the best firms are better
organized to meet the needs of their people, to attract better people who are more motivated to do a superior job
(Waterman 1994). Thus, the management of human resources becomes very important. And in turn, this study
on HRM activities in retail sector in Saudi Arabia was taken up.

5. RESEARCH METHODOLOGY

5.1 Methodology: The study is primarily based on primary data collected from employees currently working in
retail sector of Saudi Arabia. The respondents were grouped into six sub sectors within the retail sector i.e.,
hyper markets, automobile dealers, pharmaceuticals, financial services, computer outlets and small grocery
stores. The study was proposed on a sample size of 400 respondents. 420 questionnaires were randomly
administered to employees. Approximately 355 usable questionnaires were received.

Consequently, the research involved an extensive literature review on the area of concern to provide an
overview of retail companies in Saudi Arabia and the viable HR practices experienced in the sector. Developing
relevant objectives of study proved viable in focusing the entire research on unveiling the current HR practices
utilized in the Saudi Arabian retail industry. Consequently, a viable research design occurred leading to the
materialization of the set objectives. Data collection occurred through literature review (secondary data
collection) from relevant books, peer journals, and current electronic publications (valid websites). Enough
information was attainable from these sources thus allowing for appropriate analysis, compilation,
interpretation, and structuring of the entire report.

5.2 Survey instrument: A comprehensive questionnaire was developed for data collection from the current
employees of the retail sector on the topic of study. The questionnaire consisted of ten questions based focusing
on areas such as general education level of the employees, specialized degree for retail, level of experience of
the employees, satisfaction of the executives from their job, amongst others. The questionnaire was originally
developed into English and translated into Arabic for high response rate. The questionnaire contained question
enquiring respondent about their education and experience.

5.3 Statistical tools: The data collected questionnaire from the respondents was analyzed by SPSS software.
Statistical tools used were percentages, mean and Chi-square test.

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6. HYPOTHESIS

Thus, on the basis of literature review, we propose following hypotheses (H):

H1 The employees in the retail sector have appropriate level of general education (Bachelors
degree).

H2 The employees in the retail sector possess specialized degree in retail management.

H3 The current employees of the retail sector are experienced in insurance business.

H4 The employees in the retail sector are satisfied with their job.

H5 Retail companies operating in Saudi Arabia use human resource planning and recruitment
practices like advertisement, job fairs, campus placement & recruitment consultants.

H6 Retail companies operating in Saudi Arabia use practices regarding selection processes like
interviews, tests, group discussions and behavioral events.

H7 Retail companies operating in Saudi Arabia use practices regarding training and development.

H8 Retail companies operating in Saudi Arabia use competitive compensation and benefit
practices.

H9 Retail companies operating in Saudi Arabia use the practice of performance appraisal.

H10 Retail companies operating in Saudi Arabia use the practice of grievance handling.

7. CONCEPTUAL FRAME WORK OF THE STUDY

From the review of literature and guided by the objectives of the study, researcher finalizes the conceptual
framework of the study. The research has been categorized into three broader stages of problems and challenges
i.e., Employees, Organization’s human resource activities and impact on job satisfaction. The review of
literature shows that employee of a retail company plays a very important role in any organization, thus in the
first stage the researcher investigates the profiles of employees working in the retail sector of Saudi Arabia. In
the second stage the researcher investigates the problems and challenges faced by the retail sector in Saudi
Arabia vis a vis human resource management. This factor is very important in any industry especially retail
because the previous studies show that one of the important factors affecting the growth of retail sector is its
human resources. The third important factor affecting any business organization is the impact of human resource
activities on job satisfaction of the employees working in the retail industry.

8. RESULTS AND DISCUSSION

8.1 Results: Profile analysis of the respondents: Table 1 the presents the profile of the respondent employees
currently working in the various retail sector companies of Saudi Arabia. From the total distributed
questionnaires, 355 usable questionnaires were received and out of which 310 respondents answered all the
questions. The respondents were grouped into six sub sectors within the retail sector i.e., hyper markets,
automobile dealers, pharmaceuticals, financial services, computer outlets and small grocery stores. The response
from the six sub sectors was analyzed vis-à-vis age, general education level, salary, experience, management
level and gender. Most of the sales executives are young with under graduation or graduation qualification. On
the contrary other executives, possibly senior and on key posts are over thirty years of age and highly qualified
with graduation or post graduation. The point to be noted is that only (8) 2.3% of the respondents have a post
graduation degree and none had a specialized diploma or a degree in retail management. Thus, for better
performance the retail sector, companies should provide specialized training in retail to their employees.

Hypothesis 1: The employees in the retail sector have appropriate level of general education (Bachelors
degree).

As presented in table 1, the respondents are mainly young people below the age of 30 years. From the total 355
respondents 37.46 % were below 30 years and approximately 20% were between 31 to 40 years of age. The
education level of the large number of executives was not very impressive. Approximately 73.8% of the

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respondents had just completed high school or were pursing graduation or other diploma’s. Only 23.9% of the
respondents had done graduation degree. It is interesting to note that those completed their graduation are either
working as supervisors or are at the store management level. Those with high school degree and undergoing
graduation were mainly employed as sales executives. Thus from the results it can be said that companies in the
retail sector in Saudi Arabia are in need of qualified employees to carry on their business, therefore hypothesis
one is rejected.

Hypothesis 2: The employees in the retail sector possess specialized degree in retail management.
Besides general education level the specialized degree of the employee respondents in insurance was
depressingly low. From the total of 355 respondents no one said they have specialized degree in insurance. Only
8 respondents had a post graduate degree. Thus based on the response of the current employees the above
hypothesis is rejected (Table 1).

Hypothesis 3: The current employees of the retail sector are experienced in retail sector.
Table 1 presents the experience of the employees in retail sector. The experience of the employees was
categorized as follows, less than 6 months, more than 6 months to 2 years, more than 2 years to 5 years, more
than 5 years to 10 years and more than 10 years. The response of the respondents were as follows, (21) 5.9%
respondents were new entrants into retail job having less than 6 months of experience, (142) 40% respondents
were having experience ranging from more than 6 months to 2 years,(67) 18.9% respondents were having
experience of more than 2 years to 5 years, while (93) 26.2% had the experience of more than 5 years to 10
years and interestingly (32) 9% said that they have experience of more than 10 years in retail sector. Those with
experience of more than 10 years were mainly working at the senior management level. Those with experience
of less than five years were mainly working as supervisors or sales executives. From the above given facts it can
safely be said that the retail sector in Saudi Arabia needs more experienced employees, majority of the
employees are with very having less experience, i.e., less than five years.

Hypothesis 4: The employees in the retail sector are satisfied with their job.
The employees in the retail sector seem to be satisfied. As is shown in table 2, 87.3% of the respondents said
that they are satisfied with their jobs and only 12.7% said that they are not. The salesman and marketing
executives were satisfied however comparatively the dissatisfaction and confusion was higher in the other
executives. The highest level of dissatisfaction was found at employees working in the computer outlets where
(30) 60% of the respondents said that they were not at all satisfied with their jobs.(Table 2)

Hypothesis 5: Retail companies operating in Saudi Arabia use human resource planning and recruitment
practices like advertisement, job fairs, campus placement & recruitment consultants.
Human resource management uses planning to scrutinize the present as it focuses on the future (Budhwar &
Mellahi, 2006). Table 3 show that approximately (280) 79% of the respondents said that human resource
planning and recruitment practices were being used by the companies operating in the retail sector. However
2.5% said that they were not being used at all. It should be noted here that from Table 1 we deduce that out of
the 79% respondents who said that planning and recruitment practices are being used maximum are under
graduates. The respondents significantly did not differ in their response shown by Chi-square value acceptable
95% confidence level (Chi square =46.77, Sig.= 0.005). The results shows that the companies did use human
resource planning and recruitment practices and thus the hypothesis is accepted.

Hypothesis 6: Retail companies operating in Saudi Arabia use practices regarding selection processes
like interviews, tests, group discussions and behavioral events.
Recruiting competent personnel who understand the Saudi Arabia market in the realms of shopping trends,
cultural influences, seasonal changes, and demographic issues is critical in the HR’s context (Kleynhans, 2006).
From Table 4, we deduce that the employees from the retail sector seem to be satisfied. (166) 48.5% said that
the companies use selection processes like interviews, tests, group discussions and behavioral events. But at the
same time approximately (52) 15 % respondents did not think so. There are numerous practices played by HRs
at retail levels in the Saudi Arabian context. Numerous entities have strived to create a viable selection process
where the involved firms provide an equal opportunity milieu for all prospective employees (Van den Bossche,
Segers & Jansen, 2010). The six groups of the respondents were significantly different in their response (Chi
square =262.85, Sig.= 0.005) acceptable at 95% confidence level.

Hypothesis 7: Retail companies operating in Saudi Arabia use practices regarding training and
development.
One of the most important question regarding human resource activities in Saudi Arabia is the level of focus the
retail companies give on training and development of their employees. From Table 5 we find out that, from the

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range of options given to the respondents (136) approximately 44% said they were only satisfied with it while
27% said it was excellent. The retail industry in Saudi Arabia has strived to enact viable practices to ensure that
the training and development efforts are successful hence establishing competitive employees within the
organization (Randhawa, 2007). Thus the hypothesis that retail companies operating in Saudi Arabia use
practices regarding training and development stands true.

Hypothesis 8: Retail companies operating in Saudi Arabia use competitive compensation and benefit
practices.
The employees from the retail sector seem to be satisfied with the compensation and benefit practices. Human
resource units consider numerous compensation and benefits practices to ensure maximum utilization of the
human capital within the industry (Pynes, 2008). Almost (130) 42% of the respondents were satisfied with their
compensation and benefit practices and (66) 21.3% of them said it was excellent but it is important to know that
(11) 3.5% of the respondents also said it was ‘worst’. Thus this hypothesis stands true.

Hypothesis 9: Retail companies operating in Saudi Arabia use the practice of performance appraisal.
Performance appraisal is an important tool for keeping a fair eye on the performance of an employee, which
inturn acts as a motivational factor for the employee. Most retail entities have set standardized appraisal
procedures that give consistent and reliable results on each employee. Some employees employ a 3600 feedback
where the entire organization’s stakeholder provides their response concerning a given employee (Williams,
2011). In table 7,we find out that (110) 35.5% of the respondents were of the opinion that performance appraisal
practice was not used at all but at the same time (139) 44.8% of the respondents replied that it was mostly in
use, while (18) almost 6% said it was used occasionally. Keeping in mind the above results from the table, chi
square was applied and we found out the above hypothesis stand true i.e. retail companies do use performance
appraisal in Saudi Arabia. Thus, Saudi Arabian retail companies have enacted viable appraisal measures
welcomed by the majority of stakeholders.

Hypothesis 10: Retail companies operating in Saudi Arabia use the practice of grievance handling.
Retail companies in Saudi Arabia have adopted numerous practices meant to aid the handling of grievances
amid the stakeholders. Another concurrent practice is the use of divine laws (Quran teachings) to assess and
judge grievances (Budhwar & Debrah, 2004). The respondents were given four options namely ‘Mostly’,
‘Occasionally’, ‘Not at all’, ‘ Can’t say’. The response of the individuals gave the following results. (125)
40.3% of the respondents said that the companies use practice of grievance handling while (27) 8.7% of the
respondents said the companies ‘not at all’ used the practice of grievance handling while (40) 12.9% of the
respondents preferred that option ‘can’t say’. Thus the above results partially support the proposed hypothesis
that the retail companies in Saudi Arabia use the practice of grievance handling.

8.2 Findings
The researcher proposed ten hypothesis to be tested in the study to arrive at the meaningful conclusion. The
proposed hypothesis were expected to provide clear picture of Saudi Arabia’s human resource management
activities in the retail sector. The results were also expected to show the impact of human resource activities
being undertaken by the companies on the job satisfaction level of the employees. From the results and analysis
the researcher presents the following highlights of the findings.

Summary of hypothesis and brief findings

(1) (2) (3) (4)
HI No Appropriate level of general education (Bachelors degree) Rejected
H2 No Specialized degree in retail management. Rejected
H3 Yes Experience in retail sector Accepted
H4 Yes Satisfied with their job Accepted
H5 Yes Practicing human resource planning and recruitment Accepted
H6 Yes Techniques of Selection process in use Accepted
H7 Yes Practicing training and development Accepted
H8 Yes Using competitive compensation and benefit practices Accepted
H9 Yes Practice of performance appraisal is in use Accepted
H10 Yes Practicing grievance handling Accepted
NOTES Column headings are as follows: (1) hypothesis, (2) significant difference, (3) results, (4)
hypothesis rejected/accepted.

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8.3 Discussion
In the current study the researcher proposed ten hypotheses to test, through which six objectives would be
achieved. In this section the results of the study and objectives are discussed.

The results of the study show that the retail sector of the Kingdom of Saudi Arabia need more qualified and
experienced employees. The current Saudization policy where by Saudi or non Saudi retail firm has to employ a
minimum of 27% to a maximum of 37% employees from the Kingdom of Saudi Arabia is also a factor
contributing to the less number of experienced employees (Saudization, Aljadaan). The reason being that not
many universities have a specialized course for retail management. There is huge requirement of employees
who have a degree or a diploma in retail management. The industry currently needs large no of employees
which is ever increasing given the fact that retail sector in Saudi Arabia is growing fast. Sales in this sector are
forecast to increase from an estimated $4.03 billion in 2011 to $5.01 billion by 2015, a rise of nearly 25 percent
(Saudi retail sales, sachaorloff).

The first objective of the study was to find out if the practices of human resource planning and recruitment like
advertisement, job fairs, campus placement & recruitment consultants are being implemented by the retail sector
companies or not. The result showed that approximately 79% of the respondents said that human resource
planning and recruitment practices were being used by the companies operating in the retail sector. However
2.5% said that they were not being used at all.

The second objective of the study aimed to find out that if the retail companies operating in Saudi Arabia use
practices regarding selection processes like interviews, tests, group discussions and behavioral events. And the
researcher found out that that the employees from the retail sector seem to be satisfied. (166) 48.5% said that the
companies use selection processes like interviews, tests, group discussions and behavioral events. But at the
same time approximately (52) 15 % respondents did not think so.

The third objective aimed to find out that if retail companies operating in Saudi Arabia use practices regarding
training and development. And thus we find out that, from the range of options given to the respondents (136)
approximately 44% said they were only satisfied with it while 27% said it was excellent.

The fourth objective aimed to find out that if retail companies operating in Saudi Arabia use competitive
compensation and benefit practices. The employees from the retail sector seem to be satisfied with the
compensation and benefit practices. Almost (130) 42% of the respondents were satisfied with their
compensation and benefit practices and (66) 21.3% of them said it was excellent but it is important to know that
(11) 3.5% of the respondents also said it was ‘worst’.

The fifth objective aimed to find out that if retail companies operating in Saudi Arabia use the practice of
performance appraisal. The researcher thinks that though performance appraisal is an important tool for keeping
a fair eye on the performance of an employee, which inturn acts as a motivational factor for the employee. From
the study the researcher finds out that (110) 35.5% of the respondents were of the opinion that performance
appraisal practice was not used at all but at the same time (139) 44.8% of the respondents replied that it was
mostly in use, while (18) almost 6% said it was used occasionally.

The sixth and last objective the study aimed to find out that retail companies operating in Saudi Arabia use the
practice of grievance handling. The respondents were given four options namely ‘Mostly’, ‘Occasionally’, ‘Not
at all’, ‘ Can’t say’. The response of the individuals gave the following results. (125) 40.3% of the respondents
said that the companies use practice of grievance handling while (27) 8.7% of the respondents said the
companies ‘not at all’ used the practice of grievance handling while (40) 12.9% of the respondents preferred that
option ‘can’t say’. Thus the from the above result, the researcher finds out that the employees partially support
that the retail companies in Saudi Arabia use the practice of grievance handling.

9. CONCLUSION AND PRACTICAL IMPLICATIONS

From the foregoing study and analysis the researcher unveiled numerous HR practices regarding the retail
industry in Saudi Arabia. The researcher confidently concludes that this study has practical and policy
implications for the companies in the retail sector. The finding present that companies in the retail sector can
improve their performance by emphasizing excellent human resource practices. It is worth mentioning here that
the study found that the impact of human resource management has positive impact on the job satisfaction level
of the employees working in the retail sector of Saudi Arabia. However the results showed that most retail
companies operating in Saudi Arabia should do proper planning on recruitment, selection and maintain viable

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Interdisciplinary Journal of Research in Business ISSN: 2046-7141
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employees. Presently the industry is in huge demand for workforce at various levels which is always expected to
increase in future. The employees are satisfied with the career in retail sector. However they lack sufficient
education. Additionally, there should be viable focus on training and development of employees to match the
company demands. Compensations & benefits, performance appraisal, and grievance handling are other human
resource activities which need a lot of focus in the Saudi Arabian context.

9.1 Practical Implications

For Retail Companies: Although the retail sector is growing leaps and bounds but at the same time the results
indicate that retail companies have to significantly improve their practices regarding training and development,
performance appraisal, compensations and benefits, HR planning and recruitment and grievance handling. The
companies should focus on transparent and fair recruitment and selection practices, training and development
should be giving extra focus and proper budget allocation. Performance appraisal methods used should be
employee centric. Compensation and benefit packages should be competitive and effective grievance handling
procedures should be fully implemented and focused keeping in mind the Sharia’h rules and regulations of the
Kingdom of Saudi Arabia.

For the Government: Educational institutions should start collaborating with the retail sector so that the
industry specific courses are introduced. Saudization is a good step forward but needs to be implemented in a
way so that new talent both from overseas and from Saudi Arabia is introduced without any bias in the retail
industry.

Limitations
The study is based on data collected from companies in Saudi Arabia only, which could have been collected
from other regions of the middle east countries. Further the questions that were included did not establish a link
between human resource practices with the performance of the employees. Future researchers can take up
studies on human resource management by including the above mentioned limitations.

ACKNOWLEDGEMENT

We would like to extend our thanks to overall administration and policy of King Abdulaziz University in
general in encouraging and promoting the research activities. However we would like to extend our gratefulness
to the Deanship of Scientific Research for their continuous support and guidance in conducting this study and
making it a reality.

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ANNEXURE:
Tables(s)
Table -1
Profile analysis of respondents (employees)
Retail Sub Sectors Hyper Automobile Pharmaceuticals Financial Computer Small Total
Markets Dealers Services Outlets Grocery
Stores
(Local
Shops)
Profile N % N % N % N % N % N % N %
AGE
21-30 44 41.9 9 18 36 48 13 52 10 20 21 42 133 37.4
31-40 25 23.8 5 10 25 33.33 4 16 12 24 1 2 72 20.2
41-50 29 27.6 10 20 14 18.67 1 4 15 30 25 50 94 26.4
51-60 7 6.67 14 28 0 0 5 20 6 12 3 6 35 9.86
61 & above 0 0 12 24 0 0 2 8 7 14 0 0 21 5.92
Total 105 100 50 100 75 100 25 100 50 100 50 100 355 100
EDUCATION
Under Graduate 90 85.7 18 36 71 94.7 19 76 34 68 30 60 262 73.8
Graduate 15 14.3 27 54 4 5.3 5 20 14 28 20 40 85 23.9
Post Graduate 0 0 5 10 0 0 1 4 2 4 0 0 8 2.3
Total 105 100 50 100 75 100 25 100 50 100 50 100 355 100
SALARY
1000 to 2000 16 15.2 13 26 6 8 9 36 10 20 21 42 75 21.1
2100 to 3500 28 26.7 10 20 25 33.3 5 20 17 34 8 16 93 26.2
3600 to 5000 40 38.1 21 42 35 46.7 8 32 15 30 20 40 139 39.2
5100 & Above 21 20 6 12 9 12 3 12 8 16 1 2 48 13.5
Total 105 100 50 100 75 100 25 100 50 100 50 100 355 100
EXPERIENCE
0 to 6 months 4 3.8 2 4 2 2.7 2 8 2 4 9 18 21 5.9

7 months to 2 years 39 37.1 16 32 28 37.3 10 40 20 40 29 58 142 40

2.1 years to 5 years 21 20 10 20 13 17.3 5 20 10 20 8 16 67 18.9

5.1 years to 10 years 31 29.5 16 32 27 36 5 20 10 20 4 8 93 26.2

Above 10 years 10 9.5 6 12 5 6.7 3 12 8 16 0 0 32 9

TOTAL 105 100 50 100 75 100 25 100 50 100 50 100 355 100
MANAGEMENT
LEVEL

Senior Management 8 7.6 16 32 4 5.3 4 16 6 12 6 12 44 12.4

Store Management 34 32.4 4 8 26 34.7 6 24 12 24 14 28 96 27

Supervisors 29 27.6 17 34 22 29.3 9 36 12 24 3 6 92 25.9

Sales Executives 34 32.4 13 26 23 30.7 6 24 20 40 27 54 123 34.6

Total 105 100 50 100 75 100 25 100 50 100 50 100 355 100
GENDER
Male 76 89.4 50 100 63 96.9 25 100 28 100 96 94.1 338 95.2
Female 9 10.6 0 0 2 3.1 0 0 0 0 6 5.9 17 4.8
Total 85 100 50 100 65 100 25 100 28 100 102 100 355 100

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Table – 2
Job satisfaction of the respondents
Retail Hyper Automobile Pharmaceuticals Financial Computer Small Total Chi-square
Sub Markets Dealers Services Outlets Grocery
Sectors Stores
(Local
Shops)
N % N % N % N % N % N % N %
Yes 1 100 45 90 75 100 25 100 20 40 40 80 310 87.3 133.66 0
0
5
No 0 0 5 10 0 0 0 0 30 60 10 20 45 12.7

Total 1 100 50 100 75 100 25 100 50 100 50 100 355 100

0
5

Table – 3
About human resource planning and recruitment practices
Retail Hyper Automobile Pharmaceuticals Financial Computer Small Total Chi-square p
Sub Markets Dealers Services Outlets Grocery
Sectors Stores
(Local
Shops)
N % N % N % N % N % N % N %
Yes 84 80 43 86 68 90.7 13 52 32 64 40 80 280 78.9 46.77 0
No 0 0 1 2 0 0 0 0 6 12 2 4 9 2.5
Can't Say 12 11.4 3 6 3 4 6 24 6 12 5 10 35 9.9

Somewhat 9 8.6 3 6 4 5.3 6 24 6 12 3 6 31 8.7

Total 105 100 50 100 75 100 25 100 50 100 50 100 355 100

Table – 4
About techniques of selection process
Retail Sub Hyper Automobile Pharmaceuticals Financial Computer Small Total Chi-square p
Sectors Markets Dealers Services Outlets Grocery
Stores
(Local
Shops)
N % N % N % N % N % N % N %
Yes 90 72.6 5 11.1 69 92 1 4.2 1 5.3 0 0 166 48.5 262.85 0
No 5 4 9 20 2 2.7 12 50 5 26.3 19 34.5 52 15.2
Can't Say 8 6.5 30 66.7 2 2.7 10 41.7 12 63.2 20 36.4 82 24

Somewhat 21 16.9 1 2.2 2 2.7 1 4.2 1 5.3 16 29.1 42 12.3

Total 124 100 45 100 75 100 24 100 19 100 55 100 342 100

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Table – 5
About training and development activities
Retail Sub Hyper Automobile Pharmaceuticals Financial Computer Small Total Chi-square p
Sectors Markets Dealers Services Outlets Grocery
Stores
(Local
Shops)
N % N % N % N % N % N % N %
Excellent 32 30.5 3 6.7 46 61.3 1 4 2 10 2 5 86 27.7 170.19 0
Good 44 41.9 2 4.4 22 29.3 2 8 1 5 3 7.5 74 23.9
Satisfactory 27 25.7 38 84.4 6 8 19 76 14 70 32 80 136 43.9

Worst 2 1.9 2 4.4 1 1.3 3 12 3 15 3 7.5 14 4.5

Total 105 100 45 100 75 100 25 100 20 100 40 100 310 100

Table – 6
About compensation and benefit
Retail Sub Hyper Automobile Pharmaceuticals Financial Computer Small Total Chi-square p
Sectors Markets Dealers Services Outlets Grocery
Stores
(Local
Shops)

N % N % N % N % N % N % N %
Excellent 21 20 2 4.4 36 48 2 8 2 10 3 7.5 66 21.3 141.905 0
Good 60 57.1 2 4.4 26 34.7 8 32 3 15 4 10 103 33.2
Satisfactory 22 21 39 86.7 12 16 13 52 13 65 31 77.5 130 41.9

Worst 2 1.9 2 4.4 1 1.3 2 8 2 10 2 5 11 3.5

Total 105 100 45 100 75 100 25 100 20 100 40 100 310 100

Table – 7
About performance appraisal
Retail Sub Hyper Automobil Pharmaceuticals Financial Computer Small Total Chi- p
Sectors Markets e Dealers Services Outlets Grocery square
Stores
(Local
Shops)
N % N % N % N % N % N % N %
Mostly 66 62. 4 8.9 61 81.3 2 8 4 20 2 5 139 44.8 190.067 0
9
Occasionall 5 4.8 2 4.4 4 5.3 3 12 2 10 2 5 18 5.8
y
Not at all 9 8.6 36 80 2 2.7 17 68 12 60 34 85 110 35.5
23.
Can't say 25 8 3 6.7 8 10.7 3 12 2 10 2 5 43 13.9
10
Total 5 100 45 100 75 100 25 100 20 100 40 100 310 100

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Table – 8
About grievance handling
Retail Sub Hyper Automobil Pharmaceutical Financial Compute Small Total Chi- p
Sectors Markets e Dealers s Services r Outlets Grocery square
Stores
(Local
Shops)
Profile N % N % N % N % N % N % N %
Mostly 58 55. 3 6.7 56 74.7 3 12 2 10 3 7.5 12 40. 161.41 0
2 5 3
Occasionall 10 9.5 2 4.4 3 4 2 8 0 0 1 25 27 8.7
y 0
Not at all 21 20 37 82.2 2 2.7 18 72 15 75 2 62. 11 38.
5 5 8 1
15. 12.
Can't say 16 2 3 6.7 14 18.7 2 8 3 15 2 5 40 9
10 10 4 31
Total 5 100 45 100 75 100 25 0 20 100 0 100 0 100

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