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289 Pages·2015·2.74 MB·English

Perception on Training Programs in Family-owned Firms in the Kingdom of Saudi
Arabia

A thesis submitted for the degree of Doctor of Philosophy

by
Khalid S Alwekaisi

School of Business
Brunel University
June 2015

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Abstract
The Kingdom of Saudi Arabia (the KSA) has a rapidly growing and diversifying
economy that has made significant progress in manufacturing, construction, and agriculture.
However, the KSA remains a difficult place for the practice of human resources management
(HRM) because of, among other factors, a large non-native workforce and a majority of family-
owned firms. These complicating factors mean that, in Saudi firms, HRM practices are adopted
in a gradual manner and specifically, training programs are conducted with a view to develop
talents and improve worker performance. The study explored the current state of HRM
practices in KSA, perception on the training programs conducted and training effectiveness
captured as ‘Intent to participate’. The study primarily used qualitative as well as quantitative
data collected from family-owned business firms. It helps to gain a deeper understanding of
how perceptions on training programs vary across different organisations and demography of
the trainees that include age, qualification and experience. A framework predicting intent to
participate by the perception on training programs was developed based on the review of extant
literature. In order to capture the differences in the perception on training programs across
different organisations, age, qualification and experience, Multivariate Analysis of Variance
(MANOVA) was used. Results show that perception differed across organisations, age,
qualification and experience. In order to predict intent to participate by perception on training
programs, multiple regression analysis was used. Results show that perception on
identification of training needs, clarity of objectives, training design, behavioural modification
and performance improvement predict intent to participate.

The researcher also explored perception on training programs in family-owned business
firms by conducting an interview with 33 HR managers using a semi-structured interview
schedule. The HR managers belong to those companies where the employees hail from. The
schedule was developed and standardised using content validity and reliability. The study also
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gained insights into various areas of training required by the employees in order to achieve their
business results. It further provides inputs in terms of HR concerns and suggested HR
Interventions to make the management training function better aligned and integrated. The
study concludes with a set of recommendations for firms on implementing management
training effectively. Ultimately, the study proposes a model of training for family-owned
businesses in the KSA.

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Acknowledgements
.
The completion of my thesis and (subsequent Ph.D.) has been a long journey. Lots of things
happened and changed in the time I’ve been involved with this project. Many have questioned
whether I would finish my thesis and come back home, as have doubted my commitment to it.
I, on the other hand, barring losing confidence so many times I’ve lost count, getting writer’s
block just as many times, pure frustration in general specially after losing my older brother and
my beloved MOTHER.

Without these supporters, I may not have gotten to where I am today, at least not sanely.

Most importantly, I am extremely thankful to Dr. Nelarine Cornelius, Professor Adrian Woods
and my first supervisor Professor Mustafa Ozbilgin for being patient and supportive, the Saudi
firms and their managers who helped me in data collection and participated in my surveys and
for the employees who took part in my data collection process also proved to be a great help.

Last but not least I am thankful to my small family (my sons Saleh and Osamah and my
daughters Awrad, Yasmine and Alia) for their understanding and forgiveness of being busy
most of the time.

Special thanks to all the experts who assisted me and review my work and guided me.

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Table of Contents

Abstract .......................................................................................................................................... 1
Acknowledgements ....................................................................................................................... 2
CHAPTER ONE .......................................................................................................................... 11
Introduction ..............................................................................................................................11
The Economy of the KSA....................................................................................................11
The KSA and the Gulf Cooperation Council.......................................................................14
Human Resources Development Plans in the KSA.............................................................16
Family-Owned Businesses in the KSA................................................................................17
Training and Development in Kingdom of Saudi Arabia....................................................19
Models of Training and Development.................................................................................21
Problem Statement...............................................................................................................28
Research Objectives.............................................................................................................29
Research Questions and Hypotheses...................................................................................30
Significance of the Research Study.....................................................................................31
Research Roadmap..............................................................................................................34
CHAPTER TWO.........................................................................................................................36
Literature Review.....................................................................................................................36
HRM Practices in KSA........................................................................................................38
HRM issues in Family Businesses......................................................................................53
Summary..............................................................................................................................55
Training and Development..................................................................................................56
Training Need Analysis (TNA)...........................................................................................89
Trainiing Program Effectivness.........................................................................................102
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Summary............................................................................................................................113
Perception on training programs and intent to participate.................................................114
Summary............................................................................................................................122
Research Gap and need for the study ……………………………………………………123
CHAPTER THREE...................................................................................................................127
Research Methodology..........................................................................................................127
The Mixed-Methods Approach..........................................................................................127
Instrumentation..................................................................................................................131
Validity test........................................................................................................................132
The Pilot Study..................................................................................................................141
Results of the Pilot Study...................................................................................................141
Reliability Test...................................................................................................................142
Sampling Frame.................................................................................................................143
Sampling Technique..........................................................................................................143
Administration...................................................................................................................145
Respondent Profile for the HR Managers’ Survey............................................................145
Demographic Profile of the Surveyed Employees.............................................................151
Statistical Techniques Used...............................................................................................151
Summary............................................................................................................................151
CHAPTER FOUR......................................................................................................................152
Data Analysis & Results........................................................................................................152
Analysis of Employee Data...............................................................................................152
Testing for Multi - Collinearity and Common Method Variance......................................154
Objectives 1: To examine the perception on training programs in family-owned
business firms in the KSA.................................................................................................159
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Objective 2: To study the difference in the perception on training programs
in family-owned business firms in the KSA......................................................................160
Hypothesis Testing.............................................................................................................160
Testing of Hypothysis One............................................................................................160
Testing of Hypothysis Two............................................................................................166
Testing of Hypothysis Three..........................................................................................172
Testing of Hypothysis Four...........................................................................................178
Objective 3: To study the relationship between the perception on training
programs in family-owned business firms in the KSA and intent to
participate in the training programs...............................................................................181
Semi Structured Interviews with HR Managers................................................................183
Aligning Management Training with Strategic Goals ................................................... 184
Aligning Training with Customer Needs ....................................................................... 186
Job Requirements and Shareholder and Owner Interests .............................................. 188
Matching Applicants and Job Descriptions ................................................................... 190
Training and Development Programs and Job Requirements ....................................... 192
Re-evaluation of Managers Based on Job Requirements .............................................. 194
The Influence of the Competitive Environment ............................................................ 195
Clearer and Stricter Job Specifications .......................................................................... 197
Meeting Job Demands ................................................................................................... 198
Summary of Results and Findings.....................................................................................200
CHAPTER FIVE ....................................................................................................................... 202
Discussion and implication……………………………………...……………………….202
Robust TNA ................................................................................................................... 202
Lack of Emphasis on Managerial Training ................................................................... 206
HRM & Training ........................................................................................................... 209
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Barriers to Management Training Practices .................................................................. 213
Interventions for Training Effectivenes.............................................................................216
Operational Role of Management Training ................................................................... 216
Aligning Management Training with Business ............................................................. 219
Discussion of Qualitative Results .................................................................................221
Implications for HR...........................................................................................................231
Limitations and Scope for Future Research...................................................................236
Conclusion.........................................................................................................................238
References ................................................................................................................................. 241
Appendices ................................................................................................................................ 282
Appendix I: Questionnaire for Employees............................................................................282
AppendixII Semi - Structured questionnaire for Human Resources Managers.....................285
AppendixIII.Forms and Arabic translation............................................................................286

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LIST OF TABLES
Table 3.1 List of words / concept and themes derived.............................................................135
Table 3.2 Content validity ratio for employee questionnaire..........................................…......140
Table 3.3 Content Validity Ration for HR managers...............................................................144
Table 3.4 Reliability tests for employees................................................................... .….…....148
TABLE 3.5 Age, gender and nationality of the HR managers.................. .......…..................…152
TABLE 3.6 .Position and number of years of experienced in the current role......…..…..…..…153
Table 3.7 Organisational size, company geographic region, age of the organisation,
management structure where the HR managers are employed ......…………......................... 154
TABLE 3.8 Age, size and the use of TNA by the HR departments……………………..…….156
TABLE 4.1. Background characteristics …………………………..……………...…......…. ...159
TABLE 4.2 Means, standard deviation and inter-correlation ..................................................161
TABLE 4.3MANOVA between age groups and perception on training programs …………..167
Table 4.4 Tests of between-subjects effects for perception on training programs ..……...….169
Table 4.5 comparision of means between age and perception on training programs……..…..170
Table 4.6 MANOVA between education attainment and perception on training programs ....173
Table 4 .7 Tests of between-subjects effects for perception on training programs and
education attainment..................................................................................................................174
Table 4.8 Comparison of means between education attainment and perception no training
programs................................................................................................................................... 175
Table. 4.9. Multivariate Analysis of Variance (MANOVA) between
experience and perception on training programmes………….………………………..…...…178
Table 4.10 Tests of between-subjects for perception on training programs and experience ....179
Table 4.11 Comparison of means across experience and perception on training programs......181
Table 4.12 MANOVA between organisations and perception on training programs ...............185

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Table 4.13 Tests of between subjects effects for perception on training programs among
employees of different organisations...................................................................................... 186
Table 4.14 Regression results showing perception on training programs predicting intent to
participate...................................................................................................................................187

LIST OF FIGURES

FIGURE 1.1 COMPONENTS OF STUFFLEBEAM’S (2003) CIPP MODEL............................................29
FIGURE 2.1 THE TRAINING GAP (SOURCE: ARMSTRONG, 1996).................................................100
FIGURE 2.2 LINK BETWEEN ANALYSIS AND TRAINING NEEDS (SOURCE: SLEEZER, 1993)...........102
FIGURE 2.3 TRAINING NEEDS IDENTIFIED IN A SURVEY (SOURCE: LINDLEY ET AL., 2005)...........105
FIGURE 2.4 FRAMEWORK LINKING PERCEPTION ON TRAINING PROGRAM AND
INTENT TO PARTICIPATE..............................................................................................................127
Figure 4.1 Model linking perception on training programs and intent to participate................189
Figure 4.2 Proposed Model for Training in Family-owned Firms in the KSA..........................207

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