Vision 2030: Reshaping Human Resource Management in Saudi Arabia

This report provides a detailed analysis of Saudi Vision 2030 and its impact on Human Resource Management (HRM) in Saudi Arabia. It highlights the plan's focus on decreasing dependence on oil, diversifying the economy, and developing public sector services. The vision is built on three themes: a vibrant society, an ambitious nation, and a thriving economy. The report discusses how Vision 2030 aims to develop human capital, increase labor force participation, reduce unemployment, and refit the education system. It also addresses challenges such as the inflexible gender division and the need for modern HRM practices in the Saudi job market. The report concludes by emphasizing the importance of adapting HRM strategies to align with the goals of Vision 2030. Desklib provides access to similar solved assignments and past papers for students.

Running head: INTRODUCTION TO HRM
2020
Introduction to HRM
vISION 2030

INTRODUCTION TO HRM 1
Table of Contents
Introduction................................................................................................................................2
Overview of Vision 2030.......................................................................................................2
Impact of Vision 2030 on HRM in Saudi Arabia...................................................................3
Conclusion..................................................................................................................................4
References..................................................................................................................................5

INTRODUCTION TO HRM 2
Introduction
The aim of this report is to discuss in detail about the Vision 2030 and its impact on
the Human Resource Management of Saudi Arabia.
Overview of Vision 2030
Saudi Vision 2030 is the plan of the government of Saudi Arabia to decrease the
dependence on oil, focus on the diversification of its economy, and growth the services of
public sector like infrastructure, tourism, health, recreation, and education. The goals of this
vision are comprised of reinforcement of investment and economic activities, augmenting the
trade of non-oil industry between nations by the use of consumer and goods products, and
augmenting the investment or spending of government on the ammunition, manufacturing
equipment, and military. The initial details of this vision were announced by Mohammad bin
Salman who is the Crown Prince of the country on 25 April 2016 (Vision 2030, 2020). The
Council of Economic and Development Affairs has authorized the Council of Ministers to
recognize and monitor the measures as well as mechanisms that are important for the
execution of the "Saudi Arabia’s Vision 2030"
The Vision 2030 of Saudi Arabia has been developed on three major themes as discussed
below:
 The first theme is vibrant society which focuses on the unique cultural and social
values of the Kingdom and includes commitments and targets focused at endorsing
the deep-rooted national identify of Saudi Arabia.
 Second theme is ambitious nation theme which focus on how the country’s central
government can work or move to be a responsible, accountable, and efficient
organization.

INTRODUCTION TO HRM 3
 The third theme is thriving economy which concentrates on the diversification of the
economy, enhancing the business environment, enticing the best international and
local talent, and developing opportunities with the encouragement of investment (The
Embassy of the Kingdom of Saudi Arabia, 2020).
Impact of Vision 2030 on HRM in Saudi Arabia
The development of human capital will perform a major part in the Saudi Vision
2030. The labor force of the country will attain an approx. of 8.6 million by the year 2030
with the participation rate of 44%. The average of around 203 thousand jobs are estimated to
be created on yearly basis for the people of Saudi Arabia who are taking entry in the labor
market. The Saudi Vision 2030 is focusing on decreasing the overall rate of unemployment
from 11.6% to 7%, refit the system of education and augment the participation rate of female
in the labor force from 22% to 30% (Pesync, 2017).
On the other side, the Saudi Vision 2030 also have some challenges. In the private
sector the human resource management is one of the new and largely known variable in the
Saudi’s job, where seniority is classically a role of age, service longevity, and other influence
sources, specifically in the public sector in which most of the people of Saudi Arabia work.
People at the managerial post mostly cannot be criticised or advised, which is considered to
be a problem specifically in the institutions where young employees are more qualified in
comparison to their managers.
In today’s time period, women of Saudi Arabia are more motivated as well as trained
in comparison to men, but their access in the job market is still constrained due to the
inflexible gender division. This division of gender involves high cost for institutions, as they
have to arrange a separate training and educational institutions to separate entrance halls and
separate offices. This not just influence to decide which job will women do, but it takes
valued attention away from the subjects like ways to create vibrant space for work, labor

INTRODUCTION TO HRM 4
laws, and policies for encouraging youth to contribute their maximum efforts in the
development of Saudi Arabia.
Conclusion

INTRODUCTION TO HRM 5
References
Pesync. (2017). Saudi Vision 2030 Human Capital Development Summary. Retrieved from
https://www.pesync.com/saudi-vision-2030-human-capital.html
The Embassy of the Kingdom of Saudi Arabia. (2020). Vision 2030. Retrieved from
https://www.saudiembassy.net/vision-2030
Vision 2030. (2020). Our Vision. Retrieved from https://vision2030.gov.sa/en