THE UNIVERSITY OF HULL Motivation of Bank Employees and Effects of Culture in the Islamic Banking Sector A Case Study of Al Rajhi Bank Being a thesis submitted for the degree of Doctor of Philosophy In The University of Hull, United Kingdom By ABDULLAH AL-WEHABIE Master of Science in Business Management (MSc), University of Hull, 2007 Postgraduate Diploma in Research Training, University of Hull, 2009 July 2011 ABSTRACT Motivation has been thoroughly explored by researchers in many social science disciplines, including business studies in general and human resources management in particular. The primary purpose of the research reported here is to investigate how culture affects motivation within the context of Saudi Arabia and its Islamic banking sector, with reference to workers at branches of Al Rajhi Bank in Riyadh. This research adopts an epistemological interpretive perspective. Epistemology is primarily concerned with how we understand the world and our interpretation of what is happening. Thus this research is that of a practical epistemology as it looks at how workers at the bank interpret their lives through daily practice. Thus it has an ultimately practical aim: to make recommendations as to ways in which the Al Rajhi management could improve the motivation and thus the performance of its workforce. A qualitative approach is adopted, drawing on semi-structured interviews and focus group discussions with managers, supervisors and employees of the bank. The study examines motivational theories in a practical context with particular reference to major cultural dimensions, especially religion, which is found to play a very important role in the Saudi context. It explores the complex relationship between Islam, culture and gender relations in the workplace. Among the many constraints on this project were that it was impossible for the male researcher to interview female employees face to face, as he did with male respondents. The notion of culture is difficult to integrate within the context of motivation, since they are two separate phenomena that are studied and researched by distinct groups of writers and scholars. The study is nonetheless able to conclude that culture appears to affect motivation at work quite differently in the present context from that to which Western motivational theories apply, largely because culture in Saudi Arabia is closely bound up with religion. Islam influences and defines Saudi culture much more strongly and directly than is accounted for in most Western motivational theories. Indeed, Saudi culture cannot be defined without reference to Islam. Management theories have been developed in the West through empirical studies that have shaped Western notions of i motivation and which cannot therefore be straightforwardly applied in the Middle East. This thesis argues that such theories may nonetheless be partially and validly applicable to the Saudi context, in spite of the fact that its culture and society are dominated by Islamic values. This research contributes to existing work in the management field on motivation and culture. An extensive body of knowledge relating to these two topics has been identified and coordinated in the process. This, it is envisaged, will inform organisational policies in the Saudi banking system. It is anticipated that the study will help to achieve a degree of understanding of motivation at work that are applicable to the Saudi Islamic banking sector. ii DEDICATION This thesis is dedicated to the memory of my mother Thanks for all your love and sacrifices for us. Your deep love of your children imbued in us a strong sense of intimacy and brotherhood. May Allah have mercy on you and place your souls among those of believers. iii ACKNOWLEDGEMENTS Alhamdulillah. Praise be to Allah, the Merciful, for giving me the blessings, strength and courage to bring to a conclusion the interesting journey of my study. The completion of the study has been made possible by the support and help of a number of individuals and institutions. First and foremost, I thank the Government of Saudi Arabia – in particular, the Ministry of Education – for granting me study leave and a scholarship to pursue this research. I wish to express my deepest gratitude to my supervisor, Dr Denise Thursfield of the Business School, University of Hull. Her invaluable guidance, advice and constructive criticism of my draft were highly appreciated; without them, this thesis would never have been completed. Her support and advice have always been a source of inspiration and strengthened my self-confidence. I am also indebted to Dr David Bright for his positive comments on my work during the earlier stage of my research. I am grateful to all members of the Department who have participated in my research, for their willingness to share their thoughts and experiences. Last but not least, I would like to express my sincere appreciation to my mother, Haya, for her prayers and encouragement. I am particularly grateful to my wife, Modi, for her prayers, love and sacrifice, and to my children, Lujain, Mohammed, Tamim, Asan and Shear, for their understanding and support. Without them around, life itself would be bereft of joy and happiness. Thanks to my brothers and sisters, for their prayers and support, and to my friends and colleagues, for their help and their sharing of thoughts and laughter. You will always be in my mind, and may Allah reward you for your generosity and kindness. iv ABBREVIATIONS CB Conventional Bank HR Human Resource(S) HRD Human Resource Development HRM Human Resource Management IB Islamic Bank IFI Islamic Financial Institution IHRM International Human Resource Management LTO Long-Term Orientation MAS Masculinity PD Power Distance PM Personnel Management PDi Power Distance Index SAMA Saudi Arabian Monetary Agency UA Uncertainty Avoidance uwbp Upon Whom Be Peace v TABLE OF CONTENTS ABSTRACT ....................................................................................................................... i DEDICATION ................................................................................................................. iii ACKNOWLEDGEMENTS ............................................................................................. iv ABBREVIATIONS .......................................................................................................... v TABLE OF CONTENTS ................................................................................................. vi LIST OF TABLES ............................................................................................................ x LIST OF FIGURES ......................................................................................................... xi CHAPTER 1: ................................................................................................................... 1 INTRODUCTION ............................................................................................................ 1 1.1 Focus of study ......................................................................................................... 1 1.2 Research approach .................................................................................................. 3 1.3 Brief introduction to HRM and Saudi society ......................................................... 8 1.4 Research questions ................................................................................................ 12 1.5 Research objectives ............................................................................................... 13 1.6 Contribution to knowledge .................................................................................... 14 1.7 Organisation of thesis ............................................................................................ 15 1.8 Conclusion............................................................................................................. 15 CHAPTER 2: ................................................................................................................. 18 THE KINGDOM OF SAUDI ARABIA AND THE BANKING SYSTEM OF SAUDI ARABIA WITH REFERENCE TO AL RAJHI BANK ................................................. 18 2.1 Introduction ........................................................................................................... 18 2.2 Organisational culture in Saudi Arabia ................................................................. 20 2.3 The culture of Saudi Arabia .................................................................................. 23 2.4 HRM and culture in Saudi Arabia ......................................................................... 24 2.5 Women and the labour market in Saudi Arabia .................................................... 32 2.6 The political and economic climate of Saudi Arabia ............................................ 37 2.7 Islam and property rights ...................................................................................... 42 2.8 Culture and Islamic banking ................................................................................. 43 2.9 The economic environment and Islam .................................................................. 48 2.10 Saudi Arabia and Al Rajhi Bank ......................................................................... 49 2.11 Al Rajhi and Islamic banking .............................................................................. 54 2.11.1 Dependence on Shariah ...............................................................................