Introduction
History of the Company
Nonetheless, the initial goal of the free zones development was the attraction of the foreign investments into the United Arab Emirates (Commins 289). The first zone was established in 1985, and the other free trade zones such as Shrajah Free Zone were created in the next years to attract the overseas investments (Commins 289). Nowadays, this organization has a similar intention, as it is one of the most beneficial ways to attract foreign producers to the Arabic market.
The Shrajah Free Zone has a connection with the port, Hamriyah, which was fully established in 1986 (“Department of Seaports & Customs: Hamriyah Free Zone” par. 1). After the functioning for several years, the port was acquired by Shrajah Free Zone and experience tremendous growth due to the attraction of extended volumes of external investments. Nowadays, the port is known worldwide and has a positive reputation (“Department of Seaports & Customs: Hamriyah Free Zone” par. 1). Nonetheless, the port is only a small part of the Shrajah Free Zone, as it tremendously developed over the years.
In the end, the attraction of the foreign investors and increase of the international relations were the primary intentions of the establishment of Shrajah Free Zone. It enhances the relationship with the other countries and brings the economic situation in the United Arab Emirates to the new level. Lastly, it has a tendency to expand and develop due to the ability to provide the favorable conditions for the business development globally.
Nature of the Business
It could be said that the primary goal of the Shrajah Free Zone is to provide favorable conditions for the business development of the companies from different countries. The main benefit of the company is the fact that it provides “a trouble-free working environment” in terms of avoiding transportation and other types of difficulties (“Saif Zone” par. 5). Moreover, the Shrajah Free Zone offers “the exemption from corporate and personal income taxes” and from the export and import (“Saif Zone” par. 5). It remains evident that these benefits attract the international companies to grow their business in the Shrajah Free Zone.
It could be said that it is beneficial for the companies, which require rapid growth and development, as the Shrajah Free Zone provides prebuild warehouses and other types of the necessary business units including the facilities for manufacturing, import, export, packaging, and others (“Saif Zone” par. 5). Lastly, it provides the legal and other services, which enhance the maintenance and make the coordination between the departments easier. Providing these opportunities is beneficial on both national and international levels due to the favorable conditions and investment in the national economy.
Nonetheless, this type of business is very complicated, as many participants are involved in the process and have to be monitored by the HR department to provide good conditions for the future development. Nonetheless, the diversity of the human resources eases the process, as the interactions are conducted between different nationalities. Furthermore, it helps create the international environment of the development of the foreign companies.
In this instance, it remains evident that the organization is involved in the interactions with the international businesses and organizations due to the nature of the business. The diversity is the essential element of its functioning since the company tends to spend time in the international arena while attracting foreign investments. Despite having positive intentions, the diversity creates difficulties for the sufficient management of human resources.
List of Competitors
Nonetheless, despite offering the unique market proposal, the competition has a tendency to exist due to the attractiveness of the business model. Nowadays, a significant number of free zones is currently operating in the United Arab Emirates, as it remains evident that this type of the business model is beneficial for the foreign investors and national economic environment. The most competitive free zones include Dubai Healthcare City, Fujairah Free Zone, Hamriyah Free Zone, and Ras Al Khaimah Free Trade Zone (IBP, Inc. 235). It remains evident that the free zones offer similar conditions to its investors. However, the location of the companies varies.
In the end, the Shrajah Free Zone has some benefits over its competitors due to the well-established infrastructure, network, and a perfect location with the access to the various ports and transportation roots. However, it has to pay high attention to the development of the future trends in HR related to the diversity. Nonetheless, the company has to pay strong attention to the diversity of the organization since the competition tends to intensify over a period.
HR Department (General Overview)
Functions and Activities
The functions of the HR department imply a high level of interactions with the other business units due to the international nature of the Shrajah Free Zone. Speaking of functions, one of them is planning, as HRM should be able to set and plan the achievement of organizational goals (Medina 8). Nonetheless, its central functions involve hiring, recruiting, training, professional development, maintenance, and motivation of the employees (Medina 8).
These actions help monitor the efficiency of the human resources and efficiently distribute them between the departments. It remains evident that the functions of the HRM are more complicated while operating in the Shrajah Free Zone, as it involves the diversity. In this instance, it involves monitoring of the efficiency of the functioning of the employees’ groups in the particular multicultural environment. Lastly, human resource management has to maintain whether the employees’ actions correspond with the ethical principles due to the functioning in the multicultural environment.
Speaking of the activities, HRM has to establish the criteria for the selection of the suitable candidates, provide training sessions, conduct seminars, develop study programs, and monitor the efficiency of the activities (Kleynhans et al. 10). Speaking of the Shrajah Free Zone, the activities remain the same. However, high attention has to be paid to the diversity due to the international nature of the company. In this instance, HRM department organizes various seminars and events to underline the significance of diversity.
In the end, the activities and functions of human resource management remain the same while operating on the international level. Nonetheless, the example of the Shrajah Free Zone revealed that the high attention has to be paid to the cultivation of the principles of the diversity in the organization due to its international nature. In this instance, the Shrajah Free Zone organizes the events and seminars to cultivate the necessity of the diversity in the corporate culture and avoid misunderstandings due to the difficulties in cultures.
Success and Failure Stories
It remains evident that the HR department has success and failure stories during its operations since different kinds of situations tend to happened. It could be said that this aspect tends to exist due to the inability of the companies to adapt rapidly to the existing trends and new features in the business world. Nonetheless, the Shrajah Free Zone also had some difficulties while operating in the international environment.
One of the success stories is the fact that the company was able to grow rapidly despite being vehemently diverse. Nowadays, the diversity is highly popular, but the companies tend to fail to apply the relevant HR strategies to cultivate the diversity. Nonetheless, the Shrajah Free Zone was able to adapt to the international environment and made the space available and favorable for the foreign companies. One of the results of these actions is current sufficient functioning of the corporation and its ability to attract the significant number of investors (“Saif Zone” par. 5). Today, it is one of the leading free zones, which provides the favorable conditions to all the interested businesses.
However, it is apparent that the companies fail to adapt to the new changes, and the competitors have a tendency to gain the significant shares of the market. One of the stories lays at the beginning of the establishment of the free zone, as the company was not strongly prepared to cultivate the principles of the diversity in the organization while hiring new personnel. Nonetheless, the company was able to overcome the difficulties and grow rapidly by overcoming the competitors (“Saif Zone” par. 5).
In the end, every organization tends to have both success and failure stories due to its ability to adapt to the new environment. The example of the Shrajah Free Zone revealed that the companies should focus on the international trends and pay high attention to the actions of the competitors to avoid the risky situations. Nonetheless, the modifications in the Human Resource Management have to be introduced to avoid the misunderstandings on the international level.
Role of HR Department in Development and Change Management
In turn, it remains evident that the HR department plays a vital role in the development and change management since it forms the trends, which affect the flow of the events in the organization. Nonetheless, managing change and development are the essential aspects for the company’s success in operations (Smillie and Hailey 23). It could be said that they define company’s growth strategy and their ability to reach success on the market.
As for the HR department and development, the Human Resource Management tends to establish new ways of training and development to enhance productivity and efficiency of the business processes within the organization (Krishnaveni 335). In this instance, the HR department has a right to establish and introduce new strategies and approaches to enhance and improve the quality of the services. Additionally, it cultivated the significance of the diversity in the human resources due to the importance of the international relations in the organization in the context of the Shrajah Free Zone. It could be said that the HRM underlines the importance of the multiculturalism and globalization while establishing the necessity to put these principles in the priority.
As for the change management, the human resource management is constantly informed about the skills and competences of its workers while continuously enhancing the quality of training for the employees (Baker 99). It could be said that the human resource management is the primary facilitator of change in the organization since it has the relevant knowledge about all departments and their functioning. Nonetheless, the opinions of the other departments also have to be taken into account, as they have a tendency to form central marketing and sustainable strategies for the organization.
In the end, the HR department highly influences and affects the flow of operations in the development and change management due to its necessity to set and reach the organizational goals. It remains evident that these aspects cannot be underestimated since they play a significant role in the functioning of the organization. Lastly, it was underlined that the Human Resource Management has a tendency to form and develop strategies and influence the flow of events.
Role of Diversity in HR
Importance of HR in my Organization
It remains evident that HR plays an important role in any organization, as it tends to control the diversity and flow of the workforce in the organization. It is apparent that the Human Resource Management can move the organization towards reaching the common goals and improving its current position of the organization on the current market (Evans 92). The HRM tends to set organizational goals and establish the international diversity as the center of the corporate culture. In the end, the role of HR department cannot be underestimated since it creates value and builds the corporate culture (“HR and Corporate Culture” 2).
Nonetheless, the HR also plays a significant role in the Shrajah Free Zone, as it operates on the international level, but the functions of the organization are extended due to the presence of the international relations in the business. In the context of the Shrajah Free Zone, the human resource management has to control the functioning and efficiency of the other departments, which provide warehousing, legal services, assembly lines, and transportation networks (“Saif Zone” par. 5). Moreover, the company is in the constant contact with the other countries and foreign investors. In turn, the company utilizes efficient software to maintain the flow of the processes (“Saif Zone” par. 5).
It could be said that in the context of the Shrajah Free Zone, the human resource management highly affects the financial part due to the distribution of financial resources. Furthermore, the HRM is integrated with the governmental authorities, as it tends to attract the foreign investments to the country. In this instance, the HRM also affects the national economy, as the efficiency of its distribution defines the success of the organization. Lastly, HRM determines the right international strategy, which the company has to utilize, and aiming towards the diversity leadership style is the priority of the Shrajah Free Zone due to the activities of the HRM.
In conclusion, it could be said that HR and diversity are highly connected in my organization due to the company’s operations on the international level. It remains evident that HR controls the flow of the workforce in my organization, as the Shrajah Free Zone is a complex organization, which consists of different entities. In the end, HR department is essential in any organization due to its ability to have a relevant control over the departments and plays an important role in the establishment of the trends.
Diversity Trends in My Organization
As it was mentioned earlier, the attraction of the international investments is the key goal of Shrajah Free Zone, as it provides favorable conditions for the business development while providing the business entities with the well-established networks (“Saif Zone” par. 5). The diversity is the key factor, and its aspects help the company to stay competitive on the market. Nonetheless, the primary goal of this section is to discuss the diversity trends in my organization.
Nonetheless, the presence of the diversity in the Shrajah Free Zone tends to grow due to the ability of this phenomenon to attract more foreign investments. Development of new leadership styles is one of the trends, as the diversity leadership is based on emphasizing the importance of diversity between different levels of subordination (Lewis, Green and Surry 2). It could be said that the expert of the Shrajah Free Zone tends to expand their operations in the near future and develop new approaches to interacting with the clients. Expanding the communicative languages is one of the essential trends, which is related to the diversity in the company
Another trend is in the Shrajah Free Zone is defined by aiming towards internationalization and expanding the company’s activities in the business environment. This approach cultivates the trend of the presence of the employees of various nationalities, who can communicate in different languages efficiently. These aspects aim towards the expansion of the language base inside the company. Additionally, another trend is the ability to the company to hire the employees with the right set of skills and abilities. In this instance, it will develop the trend of conducting the interviews and presence of the centers around the world to attract more qualified personnel.
In the end, the trends towards the diversity have a tendency to grow due to the globalization and multiculturalism in the modern world. Nonetheless, the nature of the Shrajah Free Zone identifies the presence of the diversity in this organization due to the operations on the international level. In this instance, the presence of the diversity is beneficial for the company’s marketing and HR departments since they are able to control the strategies and the ability to reach the potential objectives. In this case, the Shrajah Free Zone highly focuses on the cultivation of the presence of the diversity in the company while establishing new trends and leadership styles to enhance the organizational performance.
Help of Diversity
Additionally, the role of the diversity in the organization cannot be underestimated since it cultivates particular trends related to equality and trends of multiculturalism in the society. Nonetheless, the diversity of the human resources tends to help the company to establish image on the market and develop new approaches to the interaction with the employees. In this instance, the fundamental goal of this section is to discuss the beneficial influence of the diversity of the functioning of the Shrajah Free Zone as a complex mechanism.
Firstly, the diversity helps build the image in the global market due to the international orientation of the Shrajah Free Zone. Additionally, diversity creates the favorable conditions for the cultivation of equality in the organization. The Shrajah Free Zone is a highly diverse company, which implies that people with different cultural backgrounds aim towards reaching the particular organizational goal. Nonetheless, sometimes the discrimination has a tendency to occur. In this instance, the importance of the diversity in the organization helps to avoid misconceptions regarding this matter.
As it was mentioned earlier, the importance of the diversity helps establish the new leadership styles, which improve the company’s productivity. In this instance, the diversity leadership style was introduced, as it helps understand the importance of the cultural diversity in the organization while paying attention to the principles of globalization (Lewis, Green and Surry 2). Additionally, this aspect helps the Shrajah Free Zone chose the focalization strategy to pay attention to the particular customers and slowly expanding the niche of the users.
Consequently, the aspects, which are mentioned above can enhance the organizational performance of the Shrajah Free Zone. In turn, it helps the company to have the sufficient communication with the other infrastructural units such as transportations lines and airports. In this instance, hiring and choosing the right personnel will assist in having sufficient interactions with the governmental authorities. In this instance, the Shrajah Free Zone builds its image not only on the international but also on national level. It could be said that this approach helps to establish the right reputation in front of the government.
In the end, the diversity tends to help establish the image on the international level. Moreover, the diversity helps the company to reach the organizational goals in the Shrajah Free Zone. Nonetheless, the company would not be able to achieve better results in the organizational performance without focusing on the diversity while performing on the international level. Lastly, it influence on the ability of the company to achieve the organizational goals cannot be underestimated, as it highly affects the flow of the business processes in the organization.
Benefits and Problems of Diversity in My Organization
Despite being highly valued in the business world, the diversity tends to have both benefits and drawbacks on the organizational level. This phenomenon has a tendency to occur since the diversity is the complex mechanism, which strongly affects the knowledge sharing in HR practices (Shen, Tang and D’Netto 1720). One of the primary benefits is the fact the diversity corresponds with the nature of the company, as its key goal is to attract international companies and investors to operation on the free zone. This aspect helps underline the international nature of the corporation and build the image on the international level.
Another advantage is the ability of the diversity to provide the company with the international presence and recognition in the world. This factor tends to exist due to the global advertising campaigns, as they are aimed at the foreign and international companies and investors. The promotion of diversity attracts the external companies, as it offers capabilities and opportunities for the development. In this instance, this trend takes place due to the popularization of the diversity in the world and strongly affects the HR practices (Rivera 71). Lastly, the diversity tends to provide better opportunities for the international and national development, as, in this instance, it offers a wide range of opportunities for the establishment of new trends and discovering new possibilities.
Nevertheless, the drawbacks of the diversity have a tendency to exist due to the complexity of this phenomenon. One of them is the presence of misunderstandings and misconceptions of data due to the multiculturalism. In this case, the Shrajah Free Zone involves interactions between different departments, and the misunderstandings take place due to the extended range of nationalities, which are present in the Shrajah Free Zone.
Another drawback is the difficulty in applying the principles of diversity due to the presence of many levels of subordination and business segments. The structure of Shrajah Free Zone is complicated, and the difficulties might be present. It remains evident that the organizational structure of the corporation might create difficulties to the diversity due to the presence of particular limitations. In turn, the diversity might also complicate the communication between different levels of subordination.
In the end, it could be said that the benefits outweigh the disadvantages and make diversity one of the most important elements of the business structure of the organization. It could be said that the cultivation of the diversity in the organization will have a beneficial impact on the organization due to the necessity to be present in the different countries. The nature of business requires the presence of the diversity due to the operations on the international level.
Diversity Trends Internationally and in UAE
Nowadays, the diversity tends to develop, as it is one of the necessary aspects of the modern business world. Nonetheless, the diversity is starting to gain high popularity in the world due to the globalization processes and international relations. Firstly, the diversity trends on the international level have to be described. In this instance, the diversity of the human resources tends to intensify due to the ability of the demographic trends, which take place globally and internationally (Barak 78). The mobility of the people increased, and nowadays the companies aim towards the development and cultivation of the importance of the diversity of the organizations. In this instance, it remains evident that diversity grows in popularity in the business world.
Nonetheless, it is also essential to focus on the diversity trends in the United Arab Emirates. The primary goal for this necessity of the trend analysis is the location of the Shrajah Free Zone in the United Arab Emirates. It could be said that the diversity is gaining popularity in the United Arab Emirates due to the presence of the cultural diversity in the country. It could be said that this approach was the critical reason for the creation of the free zones on the country’s territory (Commins 289). The growing popularity of diversity cannot be underestimated, and more and more companies tend to open the vacancies for the international candidates.
In the end, it remains evident that the diversity is highly growing in the popularity in the business world due to the globalization and internationalization trends. The diversity is gaining popularity both in the world and in the United Arab Emirates due to the necessity to operate at the international level. It remains evident that these trends cannot be underestimated, as they define the company’s success on the globally.
Relevant Cases Happened at the Company
The Shrajah Free Zone has some cases, which happened at the company, related to the interdependence between diversity and the functions of the HR department. The primary goal of this section is briefly present the cases, which took place in the organization to show its cultural environment. Nonetheless, it has to be mentioned that only a limited number of the cases is present.
One of them is the inability of the company to provide the coordination of the HR with the other departments due to the lack of the competence in the maintenance of the diversity. Another aspect was the fact that it took the company several years to build the relevant brand image in the international field, as the coordination while building the infrastructure was dependent on the external factors. In the end, these cases have a tendency to occur due to the presence of the diversity trends on the national and international levels. Nonetheless, the Shrajah Free Zone was able to overcome the difficulties due to its ability to improve the roles and importance of the diversity in the HR department. Furthermore, the other relevant cases are presented in the other sections of the report due to their application to the topics.
Problems Faced by the HR
Despite being in the constant control of the situation, the HR department has to overcome the difficulties to enhance organizational performance and improve the quality of the internal interactions. The issues related to the presence of diversity have a tendency to exist, as the business world is a constantly changing environment. The primary goal of this section is to provide the relevant descriptions of the problems, which are highly connected with the functioning of the Shrajah Free Zone and the operations of the HRM.
Despite having operations at the international level for a long time, the Shrajah Free Zone faced some issues related to the sufficient functioning of HR. Nonetheless, one of the potential issues was the inability of the company to support the diversity during the first years of operations due to the necessity to coordinate a significant number of the departments such as marketing, assembly lines, and maintenance of legal systems (“Saif Zone” par. 5).
In turn, the diversity, which was rapidly growing in the organization, made the communications difficult, as the participants did not have a high access to the sources of communication. In this instance, this aspect had negative consequences on the overall functioning of the organization since the business units were not able to interact efficiently with each other and the foreign participants of the business process. Lastly, hiring the right employees is also a challenge due to the fact that not all potential candidates are prepared to perform their duties in the international environment.
In conclusion, the problems tend to present due to the complicated nature of the diversity. Moreover, the companies lack the competence while adapting the principles of the diversity to the HR practices. It remains evident that these factors create complications for the sufficient functioning of the human resource management. In the end, the solutions have to be found to minimize the risks and optimize the functioning of the Human Resource management in the international context.
HR Department’s Coordination with Other Departments
In turn, the HR department is highly connected with the other units due to the presence of the diverse employees in business segments. It remains evident that HR has to understand the principles of functioning of each segment to provide them with the qualified workers. Nevertheless, these aspects will be discovered in general, and, then, the connection with the other departments will be analyzed in more details. In this instance, it remains evident that the human resource management is responsible for the ability of the company to reach organizational success and meet common goals, and building the trusting relationships with the other departments is essential (Deb 12). In the end, it could be said that the human resource management is one of the critical elements of the functioning of the company, as it defines the flow of the business processes in the company by controlling the personnel.
In the context of Shrajah Free Zone, it remains evident that the sufficient functioning of the HR department is dependent on an extended number of business entities, which are interdependent. In this instance, the human resource management of the company has to distribute employees between marketing and other maintenance departments to assure the ability of the organization to provide the clients with the high-quality services on time (“Saif Zone” par. 5). In the end, the role of the human resource management cannot be underestimated since it helps deliver the desired services to the users.
In conclusion, it remains evident that the HR department plays an important, as it connects different departments together. It helps monitor the efficiency of the workforce in the departments, as the HRM is responsible for monitoring the ability to reach the organizational goals. In this instance, the significance of the HR while providing and cultivating the diversity in the organization cannot be underestimated, as the Shrajah Free Zone operates on the international level, and the role of the diversity cannot be underestimated in the context of its operations.
Recommendations
The primary goal of this section is to provide the potential recommendations to enhance the functioning of the organization based on the analysis of the diversity trends, HR functions, and HR’s interdependence with the other departments. It remains evident that the Shrajah Free Zone has to cultivate the principles of diversity due to its presence on the international level. Following these recommendations will assist in building the successful image of the company in the global market.
One of the potential ways to improve the quality of interactions and enhance the diversity in the organization is the improvement of the IT systems, which will imply rapid and constant knowledge-sharing within the organization (Evans xiv). This approach will help enhance the relationship of the HR department with the other business segments while establishing the principles of diversity in the organizational goals. Another recommendation is to conduct continuous research to evaluate the trends and establish the sufficient strategy in the HR department (Mucherji and Dhar 26).
In this case, the companies tend to generate additional revenues due to the ability to distribute the workforce efficiently. Furthermore, the research will help establish the sufficient projections and forecasts for the future functioning of the company. Lastly, conducting various training will benefit while cultivating the importance of the diversity in the organization, as the seminars will help the employees understand that the diversity is an essentiality in the modern world for the sufficient functioning of the company.
In conclusion, following these recommendations will help the company to avoid the mistakes while operating in the international environment. Nonetheless, the Shrajah Free Zone has to adapt to all recommendations simultaneously, as, in this instance, they will be more efficient due to the interdependence of the actions. In the end, these actions will help the organization reach higher revenues and gain sufficient position on the market.
Conclusion
The report revealed that HR is a key instrument for the organization to be able to reach organizational goals. It helps establish relevant relationships between different business units and finding the suitable solution to enhancing the organization performance and distributing the workforce. Nonetheless, it is one of the tools for the diversity generation in Shrajah Free Zone.
In the end, diversity is one of the essential elements in the HR, as it helps to cultivate the international atmosphere and multiculturalism in the company. Additionally, the principles of diversity correspond with the principles of the company of the attraction of the foreign investments, as it implies having the international relationships with the other countries and business entities. Moreover, it creates an image on the international level and tend to position the company as the one with the principles of multiculturalism.
Nonetheless, the difficulties in the functioning of the Shrajah Free Zone tend to be present. Firstly, the size and complexity of the structures might create misunderstandings as it remains evident that the success of the HR department is dependent on the quality of its interactions with the other business segments. Secondly, problems might have a tendency to exist due to the presence of cultures with various social and religious beliefs.
Nevertheless, the recommendations based on the information, which is presented above have to be proposed, as the diversity is essential for Shrajah Free Zone. Improving and enhancing the information sharing software will bring the quality of interactions to the new level, as high volumes of information have to be shared between different business segments constantly to support the diversity of the organization. Additionally, paying attention to the research and development is necessary to monitor the activities of the competitors. Lastly, conducting seminars and training to underline the significance of the diversity while operating in the modern business world on the international level.
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