The Problem and Its Background

Chapter One

The Problem and Its Background

Introduction

Saudi Arabian Airlines was born in 1945, after the then U.S. president Franklin D. Roosevelt's historical meeting with King Abdul Aziz Bin Abdul Rahman Al Saud, founder of the Kingdom of Saudi Arabia, at the Suez Canal on February 14, 1945. The U.S. president then gave the king of Saudi Arabia the gift of Douglas DC-3 Dakota. King Abdul Aziz, on the other hand, realized the need for a fast, comfortable and effective means of transport to link the distant areas of the kingdom and also, the need to strengthen the economy of the country by transporting goods from one place to another. Thus, King Abdul Aziz decreed that the Kingdom's first Douglas DC-3 become the heart of a national carrier. The DC-3 carried both passengers and cargos en route between Riyadh, Jeddah and Dhahran; three months after, two more DC-3 were purchased. (The Middle East, 2002; www.saudiairlines.com)

Saudi Airlines has endeavoured to maintain high performance standards in all aspects of its operation throughout the years. The on-time performance index is a major industry criteria that airlines struggle to increase, and the Saudi Arabian Airlines always strive to meet this criteria. Within the period of 1993 to 2002, a total of 809,626 flights have been successfully operated with an average time departure of ninety (90) percent. As of date, the Saudi Arabian Airlines owns one hundred thirty nine (139) aircrafts, which includes the latest and most advanced wide-bodied jets available in the market, like the  B747-400s, B747-300s, B747-100s, B777-200s, Airbus A300-600s, MD-11s and MD90s. (www.saudiairlines.com)

Safety, maintenance and service of aircraft, and punctuality are the top priorities of Saudi Airlines. Information Systems are utilized by the Airlines to enhance productivity and efficiency. (The Middle East, 2002) Being the largest carrier for both passengers and cargo in the Middle East, Saudi Arabian Airlines is also the longest established in the area. (The Middle East, 2003) Its present day mission statement proclaims "A New World of Choices", and aims to stay as "a world class airline with a distinctive Saudi character, that is customer driven and a caring employer." (The Middle East, 2002, p. 33+)

However, can the largest carrier in the Middle East still maintain their "glory" if one by one their good employees suddenly started to leave their establishment? More specifically, what will happen if the phenomenon of turnover from a technical position to a non-technical job of the Airlines' aircraft mechanics continues to plague the company? As Denton (1992) said: "It is hard to find good employees. Naturally, once you find them, it is essential to find ways to keep them." In such problems like this, companies should be aware of the things that can motivate their employees to stay with the company and remain committed.

What exactly are the implications of employees' tenure in a company? Tenure, according to McGuire (1993), "is a reflection of labour force demographics, nature of work, the economy in general, and to a lesser degree, job satisfaction. Intuitively, longer tenure would suggest high worker satisfaction, a stable economy, and a strong relationship between worker and job. Conversely, shorter tenure would suggest low job satisfaction, a volatile economy, or weak employee-job relationships." (p. 45+) He further discussed that the concrete factors influencing or affecting tenure with the employer or in a corporation include age, gender, industry or occupational growth, immigration, educational attainment and training, and compensation. (McGuire, 1993)

On the other hand, Kickul's (2001) study on the role of the psychological contract and the types of promises small businesses and its role to attract and retain skilled employees also produced the possible reasons why employees leave a company. Accordingly, the study showed that while small businesses made promises that may satisfy an employee's extrinsic needs (pay and bonuses tied to performance, and benefits), the there was a considerable number of promises perceived by employees that may fulfil their intrinsic needs (increasing responsibilities and opportunities for personal growth), and this is more important. If these promises were be broken, an employee is more likely to report negative feelings and attitudes toward the small business, have lower level of commitment, and have greater intention to leave. Also, when an employee feels that the organization failed to give them challenging and interesting work, freedom to be creative, opportunities to develop new skills, and autonomy and control, adverse feelings such as anger, frustration and hostility may occur, which in turn, may lead to the abandonment of the employee to his job. In addition, when employees did not receive opportunities for promotion and advancement, pay and bonuses tied to their performance, as well as job and professional training, employees lower their level of commitment because they feel that the firm can no longer fulfil its promised inducements and eventually, they may leave the company. When this happens, it will cost the small firm in terms of time, support resources, and capital just so to find qualified and competent individuals who can immediately assist in the operations and growth of the firm. (Kickul, 2001, p. 320)

Dennis' (1998) study, on the other hand, is about how management style affects job satisfaction and, in turn, employee turnover. The study basically determined correlations of age, gender, salary, supervisory status and education with tenure. The study yielded: "The strongest positive correlation was between the variable of empowerment and job satisfaction. The strongest negative correlation was between stress and empowerment, indicating that the less stress an employee experiences, the more empowered they feel." (p. 96+)

However, can all these apply in Saudi Arabia, where the culture is significantly different with the Western side? Shatkin (2002), for one, made a study that showed how very differently students from Saudi Arabia view work from their American counterparts. Shatkin found out those students from Saudi Arabia place more importance on Moral Values workplace, above all else, while in the United States, most occupations offering high prestige and achievement were considered.

This study basically wants to determine the reasons for turnover of Saudi Arabian Airlines Aircraft mechanics from a technical job to a non-technical position. More specifically, this study aims to identify the kind of organisational culture present in Saudi Arabian Airlines and compare it with the culture orientation of their employees. Also, this study wants to have an understanding of the compensation scheme in Saudi Arabian Airlines and, in turn, determine the views of their employees toward these compensation schemes. Another facet this study wants to know how the personal lives of the employees, more specifically, the aircraft mechanics of the Airlines, are affected by their work in Saudi Arabian Airlines. Finally, this study wants to identify the assessment of the employees of the Airlines on the management of Saudi Arabian Airlines as to how the management deal with their employees.  

With the foregoing impressions of the researcher, this study hopes to formulate generalizations and authenticate existing theories related to this study.

Background of the Study

Until recently, the western concept of a labour force available for hire in Saudi Arabia has a limited application due to the fact that a great majority of people in Saudi Arabia are engaged in traditional types of employment or self-employment. It was only until the establishment of the oil industry that opportunities for acquiring a regular and continuous employment of a modern, industrial type appeared. With the emergence of industrial employment, where much money has poured into the country in the form of wages and oil royalties, employment in other industries such as service employment, employment in trade and employment in handicraft industries that have always existed are being greatly modified. (Ani et al, 1959)

A job that requires a Saudi to be involved in an activity that makes him so busy has not been a mark of social distinction in the country. Rather, a man in Saudi Arabia acquires distinction by being able to enjoy leisure. Getting Saudis to be involved or to place value on work requires considerable change that an unemployment figure is relatively meaningless in Saudi Arabia. The recruitment, training and maintenance of a local labour force capable of operating new industrial installations or activities have almost uniformly been the main problem.  Although, of late, more and more persons are showing a willingness to do so in order to acquire savings for a subsequent career of leisure. (Ani et al, 1959)

However, in order to have a deeper perspective and understanding of the behaviour of the labour force in Saudi Arabia, one must first be acquainted with the social behaviour present in the country.

In Saudi society, the dominant relationships are personal relationships. Allegiance to Islam, loyalty to the family, and loyalty to the tribe are the strongest bonds felt by most Saudi Arabians. (Ani et al, 1959)

Arabs are known for their being emotionally responsive to language. Among Arabs, eloquence has long been considered a desirable trait. "The rules of Arabic concerning changing vowels and consonants, inflections and accents mean that reading or speaking is accompanied by emotional and physiological changes. Cross-cultural communication may actually be impeded because foreigners have difficulty in interpreting the verbal and non-verbal communication of Arabs, while Arabs may have equal difficulty in penetrating the meaning of foreign communicators." (Montana and Roukis, 1986, p. 77)

Another social behaviour among Arabs is their hospitality. According to historians, this can be pointed out to their belief that refusal to extend hospitality is an offence against God, and this refusal also denies a person the opportunity to display virtuous personality characteristics such as prosperity, cordiality, and generosity. (Montana and Roukis eds., 1986)

Pride is another facet of the Arabs because this is reinforced by Islam. "The success of Arab culture is seen as representative of the force of God. But, at the same time that they are proud, Arabs tend to be extremely sensitive to criticism." (Montana and Roukis eds., 1986, p. 78)

Honour is also integral to the Arab society. Women and their roles in society are closely intertwined with the conception of honour, and relationships within organizations (e.g., relationship between superior and subordinates) are highly affected by considerations of honour. (Montana and Roukis eds., 1986)

Arabs are also known to possess the strong behaviours rivalry and revenge. Rivalry is present mainly because mutual antagonism among tribes, clans, and families predates Islam. "In fact, Islam is a force which tends to contain and encapsulate conflicts of this nature in Arab society. The functioning of work groups within enterprises is an example of an area of work life which is highly affected by the rivalry variable." (Montana and Roukis eds., 1986, p. 78)

Revenge, on the other hand, is still present among contemporary Arab societies because there is still an underlying culture that supports it. "While open physical revenge would not be expected among urbanized, educated people in contemporary Arab societies, the underlying cultural support for revenge continues to be strong. Once again, intra-organizational relationships are highly affected by this variable. Observers suggest that this factor is relatively weaker in countries such as Egypt, Lebanon, Syria, and Iraq which have gone through extended "modernization" processes." (Montana and Roukis eds., 1986, p. 78)

Finally, Arabs are known for their alternating behavioural extremes. "Arabs tend to be secretive about communicating facts but tend to be more free in expressing feelings. Personal friendships and hostilities are especially prone to expression in terms of extremes." (Montana and Roukis eds., 1986, p. 78)

This study is conducted to assess the reasons for the turnover of Saudi Arabian Airlines Aircraft mechanics from their technical jobs to non-technical positions. To be able to do this, one must have an understanding of the culture that exists in an Arab society, for this must be one of the factors that greatly affected the decisions of the airline mechanics to make a shift from technical jobs to non-technical positions given the usual inclination of an Arab man towards work. Another facet to look at is to determine what can motivate an individual to be committed with his work. Also, an assessment of the Saudi Arabian Airlines is important, specifically, its relation with their employees and their compensation schemes.

Conceptual Framework / Theoretical Framework

This study will apply the input-process-output paradigm. This will provide the general structure and guide for the direction of the study in order to achieve its goal-to determine the reasons for turnover of Saudi Arabian Airlines Aircraft mechanics from a technical jobs to non-technical positions.

Organisational Culture present  in Saudi Arabian Airlines Cultural orientation of the employees of Saudi Arabian Airlines employees, specifically, the airline mechanics. Compensation scheme present in the Saudi Arabian Airlines How the work in Saudi Arabian Airlines affect the personal lives of their employees.

§         Descriptive research   §         Administer  researcher-made questionnaire to acquire data   §         Assessment and analysis of acquired data

Long tenure of the employees in the Saudi Arabian Airlines.   Basis for sound recommendation for the Saudi Arabian Airlines on  how to maintain their employees' commitment to the company.

INPUT                                                     PROCESS                                       OUTPUT

 

 

 

 

 

 

 

 

Figure 1

Conceptual Framework

Statement of the Problem:

            This research study basically aims to determine the reasons why Saudi Arabian Airlines Aircraft mechanics shift from a technical job to a non-technical position. Specifically, this study hopes to answer the following queries:

1.      What kind of organisational culture is present in the Saudi Arabian Airlines?

2.      Does the culture in Saudi Arabian Airlines and the culture orientation of their employees clash against each other?

3.      What is the compensation scheme present in the Saudi Arabian Airlines?

4.      What are the views of the aircraft mechanics towards the compensation schemes of Saudi Arabian Airlines?

5.      What are the effects of the work in Saudi Arabian Airlines on the personal lives of their employees, specifically, on the aircraft mechanics?

6.      What is the assessment of the employees of the Airlines on the management of Saudi Arabian Airlines and its relationship with the employees (how they deal with employees)?

Significance of the Study

            This study would be beneficial to the management of the Saudi Arabian Airlines. This may provide information on the best way of how to make their employees remain with them. Also, this study may provide recommendations on how to motivate their employees so they will perform better. Further, this study may provide an understanding for the general public on how to deal with people working in a non-traditional environment. Finally, this study may provide authentications on existing theories on consumer spending or at least provide generalizations that may contribute in the academe field (e.g., students and researchers).

Scope and Limitation

            This research venue for this study will be in Saudi Arabia only, specifically, in the vicinity of the Saudi Arabian Airlines. However, related literature and studies cited for this study came from different parts of the globe so as to draw a more clear description on the subject of employee motivation and tenure within a company. A number of respondents will be set, which will come only from the Saudi Arabian Airlines, so that essential data needed for this study will be supplemented. Specifically, the respondents must be the airline's aircraft mechanics because this study basically wants to determine the reasons for their turnover from technical jobs to non-technical positions, and it will be unrealistic if respondents will not be aircraft mechanics. Projected time period for the implementation of this study will be at least three to five months, or if possible, even shorter than three months, as long as all the objectives of the study have been met.

This research work was limited financially due to other expenses and projects outside the thesis. Time was limited, too, due to other obligations apart from the study.

 

 

 

 

 

 

References:

Ani, Moukhtar, Bigelow, Mildred C., Gillen, F., Larson, Thomas J., Lipsky,        George A., Matthews, A.T.J., Royce, Charles H. (1959). Saudi Arabia,           Its        People Its Society, Its Culture. New Haven, CT: HRAF Press.

 

Dennis, Gary L. (1998). Here today, gone tomorrow: how management style affects job satisfaction and, in turn, employee turnover. In Corrections          Today. Volume: 60. Issue: 3. Publication Date: June 1998. Page     Number: 96+.

 

Denton, D. Keith. (1992). Recruitment, Retention, and Employee Relations:          Field-Tested Strategies for the '90s. Westport, CT: Quorum Books.

 

Kickul, Jill. (2001). Promises Made, Promises Broken: An Exploration of          Employee Attraction and Retention Practices in Small Business. In          Journal of Small Business Management. Volume: 39. Issue: 4. Publication Year: 2001. Page Number: 320.

 

Maguire, Steven R. (1993). Employer and occupational tenure: 1991 update. In Monthly Labor Review. Volume: 116. Issue: 6. Publication Year:      1993. Page Number: 45+.

 

Montana, Patrick J. and Roukis, George S. eds. (1986). Workforce           Management in the Arabian Peninsula: Forces Affecting Development.         New York: Greenwood Press.

 

___. (2002). The making of a truly world-class airline. In The Middle East.          Publication Date: September 2002. Page Number: 33+.

 

___. (2003). A new world of choices: Saudi Arabian Airlines, consistently        the region's premier national carrier, has recorded an increase in             traffic despite the overall downturn in the aviation industry. In The   Middle East. Publication Date: March 2003. Page Number: 54+.

 

Saudi Airlines. (2004). Saudi Arabian Airlines Company Profile. In Saudi           Arabian Airlines. Available at:             [http://www.saudiairlines.com/homepage.jsp?param=3]. Accessed:     [15/01/04]

 

Shatkin, Laurence. (2002). The World of Work as Viewed from Saudi Arabia.              In Gary Johnson Communications. Available at: [www.newwork.com}.          Accessed: [16/01/04}.

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