Investigating the role of Knowledge Management and Human Resources Management in assisting the employee replacement process: the case of Saudi Arabia’s new localisation program “Nitaqat”.
Creators: name: alshanbri, nawaf
Publisher: name: RMIT University
Year: 2024

description: This research investigated the relationship and the links between Knowledge Management (KM) and Human Resources management (HRM). It also investigated the role of using KM and HRM in assisting the employee replacement process and sustaining knowledge once employees have been replaced. It investigated and explored the new localisation program called “Nitaqat” which operates in Saudi Arabia’s private sector. In particular the drivers behind this program were examined.<br><br>The research was carried out in four stages. In the first stage a literature review was conducted and it found that the relationship between KM and HRM is a strong one. Moreover, during this stage the researcher found, documented and suggested 15 strategies that were linked to the HRM core activities and could assist in retaining and sharing knowledge between employees.<br><br>During the second stage, an interview with Nitaqat’s manager in Saudi Arabia’s Ministry of Labor was conducted. Archival analysis was done involving government documents and reports including those published by the Saudi Ministry of Labor. As a result of this stage the key drivers behind the new localisation program were found to include a high percentage of unemployment of Saudi Arabians, the high percentage of foreign workers in the country and the large remittances that those foreign workers send to their home countries. Moreover, this stage documented the steps that the Saudi’s Ministry of Labor took before and during the implementation of the new localisation program. Studies have been conducted on the program before and after the implementation stage with an emphasis on the initiatives involved.<br><br>During the third stage of this research, thirteen case studies were carried out involving thirteen companies in the Saudi private sector. Five economic sectors were considered and selected to be covered in the case studies, where mostly foreign workers are employed in the private sector in Saudi Arabia, (1) Construction, (2) Wholesale and Retail Trade, (3) Manufacturing Industries, (4) Agriculture, Forests, Hunting and Fishing and (5) Transport, Storage and Telecommunications. A total of 39 interviews were conducted with 13 Human Resources Managers, 13 local private sector employees and 13 non-local private sector employees. This stage identified and documented the following: HRM and KM current status and activities in the private sector companies; the effects of “Nitaqat” - the new localisation program - on the selected companies; the barriers of Nitaqat program based on the view of HR managers, Saudi national employees (locals) and foreign employees (non-locals); the barriers of sharing knowledge between employees; the motivation tools for sharing knowledge between the private sector employees and finally the views of the 39 participants on Nitaqat program and its implementation. <br><br>The fourth stage of the research linked the three previous stages and is concerned with recommendations that could assist Saudi Arabia’s Ministry of Labor in the successful implementation of Nitaqat by reducing the problems that it causes the private sector companies. Recommendations were listed in general and for HR managers in particular to help them sustain and retain the knowledge that may vanish when employees are replaced as a result Nitaqat program.