Implications

In this brief review of the thesis, a number of dimensions of training are considered. The results are drawn from the data analysis chapters, which present the hypothesis testing results for employees and employers (see Table 7.1). The findings from the participants’ responses to the survey questions are used in this section to give depth to the conclusions from this study in the form of implications for theory, the government and SMEs in KSA.

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The benefits of this study to the body of knowledge and for decision-makers are that it provides a measured response to the employee-training problem in the Kingdom and advocates for a strategic management approach within small family firms. Buckley and Caple (2010) find that executive management is a key factor in successful outcomes for firms, and this study finds evidence to support that contention. This research thus explores training theory, employee engagement and the transfer of global organisational concepts to an Arab environment. Using theory and empirical research, the practical outcome for this study is to present evidence of the need for a concerted SME effort to skill employers and employees, improve management training practices and provide more jobs in the process. Thus, it fulfils the recent calls of Shafloot (2012) and Kattuah (2013) for further research on private sector employee training with its outcome and impact on firm performance.

Employee training for Saudi SMEs is left to the government’s Nitaqat intervention, the technical and vocational training centres of which are used for generic training such as English fluency, computer system learning, customer service and administration, book keeping and marketing. In-house training on firm’s goals, performance objectives (for performance review), competition and the market environment are rare, and when such courses do occur, there is no follow-up or assessment by management. This study advocates for functional area training as vital for both employees and employers.

Further, while Muslim organisations frequently adopt international structures for their firms, Ali (2005) notes that this may conflict with Saudi societal norms and values. Of concern, and probably due to the transient nature of many international workers, human resource management is not appropriately pursued in modern Islamic organisations (Ali 2005; Kazmi 2006). These writers consider that recruitment and selection, and training and development, lack appropriate transparency and decision-making rigour, noting that Islam

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requires just reward for performance. Branine and Pollard (2010) concur, arguing that lack of progress in Islamic management practices stems from a disconnect between individualist-aligned global management practices and the requirements of a collectivist society. Their call for the development of a best practice style of management in Arab countries is supported by this research. In particular, findings support the need for reverse diffusion of host-country management knowledge and work values to global enterprises for their effective management of human resources in those countries.

8.3.2 Implications for government decision makers

Private sector skills are not being effectively delivered in Eastern Province. New functional skills are required to address technological change or expansion of firms into new markets (Tidd & Bessant 2011). A collaborative, high-level approach between the Ministry of Labour, the Human Resources Development Fund, the Technical and Vocational Training Fund and the Saudi CCI is required to identify the gaps between the generic training being offered and the technical and informational requirements of industry. It is important to move away from the ad hoc approach to training currently used by Saudi SMEs in skilling the Saudi labour force, and this is especially true for women. The findings of this research support those of Achoui (2009), AlMunajed (2012), Al-Rasheedi (2012), Al-Saleh (2012), Baqadir et al. (2011) and others who advocate for a concerted national effort to train the national labour force and bring Saudi labour law into line with global economic practices.

Employees need to be trained based on their individual needs, as well as in the generic basic training offered by the government. The small business sector should have greater access to resources such as working capital and skills acquisition in the fields of finance, leadership, marketing, ICT and strategic planning. These matters are lately part of the Saudi government’s renewal policies, addressing at least employment and salaries, if not

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productivity. Small businesses will be encouraged under Nitaqat to address skills issues in their firms.

8.3.3 Implications for SMEs

Both employers and employees seek training, and that initiative is necessary to achieve firm performance. However, there are many training issues to be resolved(Al-Saleh 2012; Baqadir, Patrick & Burns 2011). While Nitaqat delivers government-paid training to Saudis seeking jobs, this training is quite generic (e.g., English language, computer literacy, workplace practices), whereas the nature of small business training is individualistic and industry-based, focusing on functional areas. Given that SMEs must meet their Saudi quotas under Nitaqat, employers cannot afford the cost of tailoring external training to their specific needs, and struggle to organise the internal resources required to train new recruits to a productive standard. Individual SMEs would be better off using reduced-cost industry training from their local CCI, which could be supported by the Human Resources Development Fund. The government acknowledges its support for SMEs as the generators of the majority of jobs in the Kingdom; thus, an advisory group of SME is recommended, to communicate directly with the government to avoid delays caused by bureaucratic processes.