Improving Employee satisfaction and organizational performance in Dubai banks

Dubai Banks


Owing to the challenges faced by the banking industry in Dubai, it has become extremely important for the proper implementation of human resource management practices in order to survive (Youssef, Haak-Saheem and Youssef 2017).

Dubai is an emirate of UAE, which is one of the most developed economies of the world. However, there is a lack of research papers and literature available related to human resource practice in banks of Dubai. HRM can be defined as the abilities and capabilities of individuals and groups which are beneficial for an organization. The approaches to the human resource management of different multinational companies are different due to different external and internal factors. The environment of the banking sector has changed considerably due to the divergent nature of the business world. In order to attain a competitive edge and improve organizational performance, accurate HRM practices and models must be adopted. Banking firms are facing challenging situations due to privatization and globalization. This has led to the increasing importance of people in the banks as they are associated with organizational success (Wilkins, Butt and Annabi 2018). It is seen that human resources are capable of creating organizations that are more efficient, competitive and profitable. However, for the overall improvement of the banking industry, employee satisfaction is equally crucial, since employees are the backbone of any firm. If employees are committed and loyal to their organization, the profitability and yield augment (Waxin et al. 2018).  Therefore, it has become vital to choose between the best practice or best fit model for the banks in Dubai and adopt them.

The choice between the Best-fit approach and the Best-practice approach

According to Obeidat (2017), employee satisfaction can be improved by the best practice approach by implementing guidelines and strategies.  But the organizational performance can be increased by adopting the best fit model since it gives an organization the competitive edge. Thus, the same model cannot be adopted for both objectives. The banks of Dubai mainly try to implement the best practice method owing to the recent dissatisfaction among the employees and it has been found that it has led to an exponential rise in work culture and profitability. It is thus necessary to critically analyze both the models and understand their advantages and disadvantages (Brewster, Chung and Sparrow 2016).

The banks of Dubai are implementing the best practice model which are a bundle of activities to improve competence, enforce motivation and augment commitment among their employees (Taamneh, Alsaad and Elrehail 2018). According to these strategies, lower levels of absenteeism and higher quality of work are observed in these banks.  The management board of the Dubai banks are using this model in selection practices so that the skilled employees appropriate for the post can be hired and the performance of the banks can be improved (Ahmad, Jasimuddin and Kee 2018). This also leads to the selection of employees who are sustainable in this competitive field and are extremely ethical. The best-practice model promotes the system of remuneration and reward system to increase employee satisfaction depending upon their performance (Crucke and Decramer 2016). This is a part of employee management of these banks since performance appraisals measure the performance of the bank employees and increase their dedication if they are praised for their efforts. This is advantageous for both the banks and the employees since the operational performance improves simultaneously. Many factors like initiatives, ethical principles, teamwork and abilities should be considered while remunerating the employees. The banks of Dubai are also seen to train and develop the skills of the employees based on the best practice approach. Efficient training programs generate skilled and knowledgeable employees and thus gives these banks a competitive edge in the global market. These programs are also aimed at improving the work-life and personal life balance of the workers and this improves employee satisfaction (Bhatia and Awasthi 2018).

Many banks of Dubai are implementing this approach as a tool for better communication among the employees and the higher authority in the organization as the expanding financial organizations must depend on efficient communication for their smooth operations. The best practice model also results in effective leadership and improved organizational performance (Obeidat, Tarhini and Aqqad 2016). The banks absorbing this policy have seen employees who are highly self-aware and self-managed. They are efficient in assigning certain tasks to appropriate teams, can take suitable actions during the crisis, fulfill the organizational goals and produce a high-quality performance (Azar, Khan and Van Eerde 2018). Thus, the banks are profited due to this approach in many dimensions. The employees have achieved high levels of confidence, team unity and effectiveness have improved. Moreover, the economic performance of the banks and calibration are on the rise due to the higher commitment of the employees and a better workplace environment (Guerci et al. 2018). But, the best practice model of HRM has certain drawbacks in terms of Dubai banks. These strategies most of the time lack linkages to the organizational strategies and this can risk the overall functioning of the banks if they are influenced by employees too much. The performance appraisal system sometimes leads to too much competition among the bank employees and deterioration in teamwork (Mory, Wirtz and Göttel 2016). The strategies are not suitable for all the employees since their individualistic goals are not fulfilled. The concepts of the team working and reward system are thus mutually prohibitive. The implementation of such standardized policies and strategies require extremely meticulous management by the higher authorities of the bank and can hamper their other sectors of operation. Despite these criticisms and disadvantages, the best fit practice model is said to be best for improving employee satisfaction in the banks of Dubai and will ultimately lead to an improved organizational performance in the future (Masa’deh et al. 2018).

Some banks of Dubai are seen to adopt the best practice model, which is also known as the contingency model (Lim, Loo and Lee 2017). This practice of HRM believes in the fact that the strategies should vary organization wise and one universal set of policies cannot solve the problems of individual firms. This model acts as a bridge between the external environment of Dubai and the internal bank environment. As human resource strategies are aligned with the organization’s competitive policies, the banks can take a lead in the global asset proportion (Gupta and Sharma 2016). The customers, suppliers, political environment and the labor markets are taken into consideration for this model.  But this approach has several drawbacks for them to be implemented in the banks of Dubai. It is impossible to adjust and change human resource strategies frequently according to the global trend. Moreover, the differing policies in various banks will reflect a picture of the inconsistent corporate culture and the stock market can be affected. Thus, it is better to avoid the adoption of this model by the banks (Kanyurhi and Bugandwa Mungu Akonkwa 2016).


The above analysis shows that both the best-fit approach and the best fit model are an essential and powerful means of shaping human resource management practices in multi-national companies. Both models must be analyzed critically before their implementation in any corporate sector. The factors influencing them can be internal and external. The organizations must consider what is more important to them, competitive edge or employee satisfaction. In this scenario, the best policy for the banks of Dubai is to adopt the best practice model due to recent employee unrest in the country. The financial sector of Dubai is already flourishing thus they do not have the urgent need of a competitive win and the best fit model can be adopted later if needed. The amalgamation of business strategy along with the appropriate HR practices can lead to expansion and evolution of the multinational establishments in this age of changing corporate rules.   

Reference List

Ahmad, K.Z.B., Jasimuddin, S.M. and Kee, W.L., 2018. Organizational climate and job satisfaction: do employees’ personalities matter?. Management Decision56(2), pp.421-440.

Azar, S., Khan, A. and Van Eerde, W., 2018. Modelling linkages between flexible work arrangements’ use and organizational outcomes. Journal of Business Research91, pp.134-143.

Bhatia, M.S. and Awasthi, A., 2018. Assessing relationship between quality management systems and business performance and its mediators: SEM approach. International Journal of Quality & Reliability Management35(8), pp.1490-1507.

Brewster, C., Chung, C. and Sparrow, P., 2016. Globalizing human resource management. Routledge.

Crucke, S. and Decramer, A., 2016. The development of a measurement instrument for the organizational performance of social enterprises. Sustainability8(2), p.161.

Guerci, M., Decramer, A., Van Waeyenberg, T. and Aust, I., 2018. Moving Beyond the Link Between HRM and Economic Performance: A Study on the Individual Reactions of HR Managers and Professionals to Sustainable HRM. Journal of Business Ethics, pp.1-18.

Gupta, N. and Sharma, V., 2016. The relationship between corporate social responsibility and employee engagement and its linkage to organizational performance: A conceptual model. IUP Journal of Organizational Behavior15(3), p.59.

Kanyurhi, E.B. and Bugandwa Mungu Akonkwa, D., 2016. Internal marketing, employee job satisfaction, and perceived organizational performance in microfinance institutions. International Journal of Bank Marketing34(5), pp.773-796.

Lim, A.J.P., Loo, J.T.K. and Lee, P.H., 2017. The impact of leadership on turnover intention: The mediating role of organizational commitment and job satisfaction. Journal of Applied Structural Equation Modeling1(1), pp.27-41.

Masa’deh, R.E., Al-Henzab, J., Tarhini, A. and Obeidat, B.Y., 2018. The associations among market orientation, technology orientation, entrepreneurial orientation and organizational performance. Benchmarking: An International Journal25(8), pp.3117-3142.

Mory, L., Wirtz, B.W. and Göttel, V., 2016. Factors of internal corporate social responsibility and the effect on organizational commitment. The International Journal of Human Resource Management27(13), pp.1393-1425.

Obeidat, B.Y., Tarhini, A. and Aqqad, N., 2016. The impact of transformational leadership on organizational performance via the mediating role of corporate social responsibility: A structural equation modeling approach. International Business Research10(1), p.199.

Obeidat, S.M., 2017, August. An examination of the moderating effect of electronic-HRM on high-performance work practices and organisational performance link. In Evidence-based HRM: A Global Forum for Empirical Scholarship (Vol. 5, No. 2, pp. 222-241). Emerald Publishing Limited.

Taamneh, A., Alsaad, A.K. and Elrehail, H., 2018. HRM practices and the multifaceted nature of organization performance: The mediation effect of organizational citizenship behavior. EuroMed Journal of Business13(3), pp.315-334.

Waxin, M.F., Lindsay, V., Belkhodja, O. and Zhao, F., 2018. Workforce localization in the UAE: recruitment and selection challenges and practices in private and public organizations. The Journal of Developing Areas52(4), pp.99-113.

Wilkins, S., Butt, M.M. and Annabi, C.A., 2018. The influence of organisational identification on employee attitudes and behaviours in multinational higher education institutions. Journal of Higher Education Policy and Management40(1), pp.48-66.

Youssef, M., Haak-Saheem, W. and Youssef, E.M., 2017. A structural equation model for knowledge sharing behavior in an emerging economy. Journal of Knowledge Management21(4), pp.925-945.

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