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Alogla has been accepted towards fulfillment of the requirements for Ph.D. degree in Sociology Major professor Date July 19, 1990 MS U is an Affirmative Action/Equal Opportunity Institution 0-12771 LIBRARY Michigan flute University PLACE IN RETURN BOX to remove this checkout from your record. TO AVOID FINES return on or before date due. DATE DUE DATE DUE DATE DUE MSU Is An Affirmative Action/Equal Opportunlty Institution cm OBSTACLES TO SAUDIZATION IN THE PRIVATE SECTOR OF THE SAUDI ARABIAN LABOR FORCE BY HAMAD O. ALOGLA A DISSERTATION Submitted to Michigan State University in partial fulfillment of the requirement for the degree of DOCTOR OF PHILOSOPHY Department of Sociology 1990 O 9/1»! ~ 0%? /5 ABSTRACT OBSTACLES TO SAUDIZATION IN THE PRIVATE SECTOR OF THE SAUDI ARABIAN LABOR FORCE BY Hamad O. Alogla The purpose of this study was to examine the factors that facilitate or hinder the process of Saudization in the private sector of the Saudi Arabian labor force as viewed by young Saudis eligible for work in the private sector. The dependent variable was attitude toward work in the private sector; three independent variables were socioeconomic status, educational type, and urban or rural background: and four intervening variables were attitude toward Saudization of the private sector, perception of extent to which private sector employment fulfills work needs, traditional views of work, and correspondence of skills and knowledge with public sector jobs. A sample of 1215 was selected and 1032 students responded to the self-administered questionnaire. The subjects were selected from nine educational institutions in Saudi Arabia: King Saud University, King Abdulaziz University, King Fahd University of Petroleum and Minerals, Technical Education Institution, Vocational Training Hamad O. Alogla Center, Commercial Secondary Education, the Institute of Public Administration's headquarters in Riyadh and two of its branches in Jeddah and Dammam. The analysis of data began with general descriptive data. Correlation coefficients and one-way analysis of variance were used to test the proposed hypotheses, and multiple regression was used to test the study models. The major findings of this study indicate willingness to work in the private sector by many of the younger Saudi generation. In addition, some important variables, while assumed to be obstacles to Saudization, do not appear to be so. These include enactment of laws protecting workers, traditional views toward acceptability of certain jobs, large family size, rural background, and educational types (Universities, Institute Of Public Administration, and Vocational Institutions). Finally, based on this study's findings, recommendations were proposed for further study to address the issue of Saudization in Saudi labor market at a macro level. I 1 . . 3 “out. thin humd- work '0 22:4 s-~"‘o:'. "A; w! 13y ' brothers and n :4' or :e . '.c-ir '. 5-1 my? '.er t, and supper ii‘ (@M‘a‘l . -r- ' . , ., . -,‘-.;.'.. Rh, ‘1‘.’ f! Dedication I dedicate this humble work to my mother, my wife, my son, and my brothers and sisters for their continuous love, encouragement, and support. iv Acknowledgements I extend my deep thanks and gratitude to Professor William A. Faunce, the chairperson of my Doctoral Dissertation Committee. Professor Faunce has always been helpful whenever I was in need. I am greatly indebted for his remarkable supervision, wise counsel, and continual support throughout my doctoral study at Michigan State University. My thanks and appreciation also to the members of my committee: Professor Christopher K. Vanderpool, Professor Jay W. Artis, and Professor Brian P. Rowan of Educational Administration. Their valuable comments, advice, and suggestions were a great help to me. My thanks are extended to the Saudi government for its financial help and support of my study abroad; in particular, to the Institute of Public Administration in Riyadh and the Saudi Cultural Mission in Washington, D. C. Their continuous contributions and support were greatly appreciated. My thanks and appreciation are also given to the more than eighty individuals who work in all the educational institutions that I chose for this research, to those who facilitated my entry to these institutions, and to those who helped distribute and collect the study instrument. vi Also I am deeply grateful to all the subject participants who responded to the study questionnaire. I am grateful to my friends and colleagues for help and advice that was invaluable to me. At Michigan State University, thanks to those who reviewed the Arabic version of the questionnaire: Abdullah Alsaid, Saad Alzahrani; and to Mohamed Kamali for his continuous help and assistance in statistics and computer work. In Saudi Arabia, thanks to Dr. Ali Sultan, Dr. Abdullah Alotabi, Dr. Ibraheem Albeayeyz for their help and assistance; and also to Mohammad Al-Ghaban of AlGhaban Printing Center at Riyadh for his extensive work in typing and producing the Arabic version of the questionnaire. Last, but not least, my deepest thanks and genuine gratitude to my beloved wife, Norah A. Alfouzan, and my sweet child, Khaldoon. Not only for their encouragement, help, and support during my doctoral program at Michigan State University, but also for their patience and toleration of being so far away from home. Table of Contents Page Abstract .......... . ....................................... i Dedication ................................................ iv Acknowledgment ............................................ v List of Figures ........................................... ix List of Tables ............. . .............................. x Chapter I. INTRODUCTION ........................................ 01 Introduction . ...................................... 01 Statement of the Problem ........................... O3 Importance of the Study ............................ 10 Organization of the Study . ............ . ............ 11 II. REVIEW OF THE LITERATURE AND DEFINITION OF TERMS ..... 12 Introduction . ...................................... 12 Definition of the Terms ............................ 13 Review of Literature ............... .. ...... . ....... 16 Theoretical Argument .............................. 20 Occupational background in Saudi Arabia ............ 26 Saudi labor market ................................. 33 III. RESEARCH METHODOLOGY ............ . .................... 47 The Study Area ............................... . ..... 47 Sampling procedure ............................... 48 Sampling Procedure and Data Collection ............. 53 The Survey Instrument ...... ..................... ... 58 Construction of the Questionnaire .................. 58 Translation and Pilot Study ....... ..... . ........... 59 Dependent and Independent variables ................ 61 Measurement and Scaling ..... ............ ... ........ 62 Hypotheses ..... ...... . ............................. 66 viii IV. ANALYSIS OF DATA ...................................... 71 Section 1: Descriptive Analysis ......... ........... 73 Section 2: Testing of the Hypotheses ............... 107 Section 3: Regression Analysis ..................... 119 V. SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS FOR FURTHER STUDY ......................................... 132 Summary ............................................ 132 Conclusions ........................................ 145 Recommendation for Further Study ................... 159 VI. APPENDICES English Version of the Study Questionnaire ......... 161 Arabic Version of the Study Questionnaire .......... 178 Letters of Approval ................................ 193 VII. BIBLIOGRAPHY ......................................... 201 LIST OF FIGURES Figure I. Causal link between dependent variable (attitude toward work in private sector), Independent variable (socioeconomic status), and intervening variables (attitude toward Saudization of the private sector, perception of extent to which private sector employment fulfill work need, traditional views of work, and correspondence of skills and knowledge with public sector jobs) as determinants of attitudes toward work in the private sector..... ..... . ...... ........... ..... .... ...... Figure II. Causal link between dependent variable (attitude toward work in private sector), Independent variable (education type), and intervening variables (attitude toward Saudization of the private sector, perception of extent to which private sector employment fulfill work need, traditional views of work, and correspondence of skills and knowledge with public sector jobs) as determinants of attitudes toward work in the private sector........................................... Figure III. Causal link between dependent variable (attitude toward work in private sector), Independent variable (urban and rural background), and intervening variables (attitude toward Saudization of the private sector, perception of extent to which private sector employment fulfill work need, traditional views of work, and correspondence of skills and knowledge with public sector jobs) as determinants of attitudes toward work in the private sector........................................... ix 69 7O MA Table Table Table Table Table Table Table Table Table Table LIST OF TABLES 2399 Saudi Arabian Operations Manpower History in ARAMCO ........................... 34 Saudi and Non-Saudi Labor Force Increase, 1975-1985 (thousands of people) ............. 36 Saudi and Non-Saudi Employment Progress in Public Sector from 1978-1989 ............. 37 Changes in the Number of Workers in Employment in both Sectors from 1984-1988... 40 Distribution of Workers in Employment By Region and Cities in 1988 ................ 41 Distribution of Workers in Employment By Economic Activity And Workers' Major Divisions Of Occupation in 1988 ............. 43 Projected Civilian Employment and Working-Age Population by Sex 1984/85 and 1989/90 (thousand)...... ...... . ............. 45 Distribution of Workers in Employment by Age Group and Monthly Wage Category in 1988 ..... 46 The Sample for the Study of "Obstacles to Saudization in the Private Sector of the Labor Market of Saudi Arabia"..... .......... 57 Frequency, Percentage and Type of Education For the Research Sample.......... ........... 74 xi Table 4.2: Distribution of Respondents' Age ............ 74 Table 4.3: Students' Estimated Family Annual Income.... 75 Table 4.4: Father's Education Background ............... 78 Table 4.5: Grandfather's & Father's Occupation ......... 78 Table 4.6: Respondents Who had Jobs in the Past ........ 80 Table 4.7: Grandfather's & Students' Urban-Rural Background .................................. 81 Table 4.8: Family Size of Students. Table 4.9: Students' Family Members Previous Work in Public and Private Sectors ............... 82 Table 4.9: Students' Family Members' Previous Work in Public and Private Sector ............... 84 Table 4.10. Most Important Source of Information to Look for Job in Both Sectors ............. 86 Table 4.11: The Distributions of Students and Their Level of Social Economic Status ............. 88 Table 4.12: Frequencies for Saudi Students' Perceptions Toward Saudization of the Private Sector .............................. 90 Table 4.13: Frequencies for Saudi Students' Perceptions Toward Fulfilling Work Need in the Private Sector...... ..... .. ............. 92 Table 4.14: Frequencies for Saudi Students' Perceptions for Traditional Views of Work in the Private Sector............... 95 Table Table Table Table Table Table Table Table 4.15: 4.16: 4.17. 4.18. 4.19: 4.20: 4.21: 4.22: Frequencies for Saudi Students' Correspondence of Skills and Knowledge with Public Sector Jobs .......................... Frequencies for Variable of Saudi Students' Attitudes Toward Work in the Private Sector. Frequencies for Items Concerning Students' Opinion If They Work in the Private Sector.. Frequencies for Items Concerning Students' Choice Between Jobs in the Same Occupations. Summary Table for One-Way Analysis of Variance of Students' Skills and Knowledge and Their Plans for Entering the Private Sector ...................................... Summary Table for One-Way Analysis of Variance for the Enactment of More Laws and Procedures and Students' Perception Toward Work in The Private Sector ................ .. Summary Table for One-Way Analysis of Variance of Students' Perception Toward Work in the Private Sector and Father's Education Background..... ......... . ................... Summary Table for One-Way Analysis of Variance for Students' Family Size and Their Attitudes Toward Work in the Private Sector. 96 98 100 103 109 116 117 118 I.INTRODUCTION The heavy reliance on migrant labor in the private sector of the Saudi Arabian labor force poses a real obstacle to Saudization. Therefore, the need to move Saudi citizens into private sector employment is an important step to be implemented during the next decades. Despite this need there has been a perceived reluctance of young Saudis to prepare for and seek employment in the private sector. This research examines the factors that facilitate or hinder the process of Saudization in the private sector of the Saudi Arabian labor force as viewed by young Saudis eligible for work in the private sector. The general question addressed by this study is: What social, cultural, economic, and political conditions have given rise to Saudi reluctance to work in the private sector? A total of 1215 respondents was selected from a range of educational institutions in Saudi Arabia that would give a cross-section of Saudi society. This target population was divided into three levels. (1) A total of 470 respondents was selected from senior university students: 160 students from King Abdulaziz University (KAU) in Jeddah (western province), 160 students from King Saud University 2 (KSU) in Riyadh (central province), and 150 students from King Fahd University of Petroleum and Minerals (KFUPM) in Dahran (eastern province). (2) Four hundred and four respondents were selected from the vocational institutions located in different cities of the same provinces: Vocational Training Centers (VTC) in Dammam, Technical Education Institutions (TEI) in Jeddah, and Commercial Secondary Education (CSE) in Riyadh. (3) 341 respondents were selected from the Institute of Public Administration, from its headquarters in Riyadh and from two branches in Jeddah and Dammam. Supportive documentary statistics concerning employment figures in both the private and public sectors were collected from the Civil Service Bureau, General Organization for Social Insurance, Ministry of Finance and National Economy, Ministry of Labor and Social Affairs, and Ministry of Planning. Statement of the Problem Since 1970 and the tremendous influx of petro—dollars, Saudi Arabia has been in the process of adopting a course of comprehensive development for all aspects of life, affecting all levels of society. In less than two decades, this modernization has attempted to bring the entire society from the eighth century to the final quarter of the twentieth century. In a setting such as Saudi Arabia where the religious and cultural traditions have served a vital stabilizing role, social conflicts have arisen with the new economic changes. These startling economic changes have brought with them a tremendous amount of pressure for change at the organizational level, as new rules and laws have had to be adopted and new procedures and methods created. In addi- tion, such changes require skilled manpower: first, to help build the necessary facilities; second, to install the necessary'modern technology and automated office equipment; and finally, to supply the necessary staff to operate the modern facilities. Such massive changes in such a short time have laid a heavy burden on the bureaucratic struc- tures in Saudi Arabia. Furthermore, the indigenous people, 4 who until two decades ago had never been exposed to such changes, have suddenly been struck by the influx of advanced technology and the flood of immigrant labor from all over the world. The increased demand for foreign labor to fill new jobs has come about because of the lack of a skilled indigenous labor force. The private sector has encouraged the influx of foreign labor by offering such economic incentives as higher wages than could be earned in the country of origin. In addition, with foreign labor, Saudi private sector employers do not have to worry about laborers demanding" unionization or‘ workers' rights, or being unwilling to move from place to place as indigenous labor might be. Overall, foreign labor is easier to manage. In essence, the foreign labor force appears to be in competition with indigenous workers and has become a real cause for growing unemployment among Saudis. In addition, it has increased the economic gap within the Saudi work force between the private and public sectors. Traditionally, Saudi society was founded on two different social strata, regardless of economic and social status (i.e., individuals could be classified socially as well as economically in any social level from either strata). As summarized by Lipsky: 5 A man's status depends upon his ethnic group (tribal.background), occupation, religion (sect), age, lineage, reputation, and wealth. Even though the lowly artisan, tinker, smith, or slave may be wealthier than a nearby Arab cultivator of noble tribal religion, he remains lower on the social scale. He can achieve a higher status only within his own ethnic and social group; his son, however, may move up socially by virtue of his father's wealth or such other acquired social assets as religious or technical learning (Lipsky 1959:83). The first stratum, called gabeeli, has been treated traditionally as an upper stratum in terms of its pure tribal heritage and one's belonging to a prominent tribal system. The second stratum, khadeeri, has always been treated as a secondary or lower level than the first. Both strata, however, have deep roots in the history of the tribal system of the Arabian peninsula. The fact that there is a range of difference in socioeconomic status within each group creates the possibility for status inconsistency since the individual cannot change tribal heritage. He will remain gabeeli or khadeeri irrespective of socioeconomic status. Before the impact of the oil economy, Saudi society offered limited occupational activities. For example, nomadic people practiced animal herding, small town dwellers depended on a primitive farming system, and those who lived in the urban centers became familiar with commerce and skills limited to a particular locale. Traditionally, strata differences played an important role 6 in determining an individual's occupational role. Specific occupations, such as carpenter, butcher, coppersmith, baker, plumber, tanner, etc., could not be practiced by any person within the gabeeli stratum. However, members of the khadeeri stratum could practice almost all kinds of occupations, including those practiced by members of the first stratum, such as farming, commerce, government employment, builder, etc. This occupational discrepancy between strata is still reflected deeply in individual attitudes and feelings towards some occupational roles, in particular, and toward work, in general. Some individuals are still reluctant to work at jobs which have been rejected by their own stratum of society. This may vary, however, between rural dwellers and those who live in urban and industrial centers (e.g., gabeeli members who live in urban and industrial centers are more likely to consider occupations rejected by their own social stratum, in contrast to gabeeli members who still live in rural areas). In the 1970s, the economic prosperity produced by the influx of petro-dollars brought with it tremendous changes affecting all aspects of life in Saudi Arabia, including occupational settings and the meaning of work. This generated confused feelings among the youth of that generation toward work, in general, and manual work, in particular, to the effect that they were very hesitant to 7 seek jobs. The decrease in economic prosperity since the early 1980s, however, has signaled a new trend in attitudes toward work. Young people are more eager to work. The policy of Saudization of the labor market in Saudi Arabia was designed to reduce dependence on foreign labor and increase the participation of Saudi citizens in all economic sectors. The Third National Development Plan 1980- 1985 emphasized this issue and pointed out the importance of Saudization for all economic sectors in the near future when it stated as one of its goals: "adopting incisive manpower development policies with the objective of replacing foreign. manpower with Saudis to the maximum possible extent, through increasing the number and the skills of the Saudi labor force and raising its productivity, both by greater efficiency within sectors and by intersectoral mobility" (Kingdom of Saudi Arabia. Third Plan, p.17). The importance of this goal was reflected in the amount of dollars allocated to human resources development. A total of almost $100 billion has been invested in the development of human resources from 1970 onward. Besides the development of human capital, the Saudization policy included other aspects of development which were meant to nationalize some foreign firms in a passive way. For example, the Arabian-American Oil Company 8 (ARAMCO) was Saudized so that "In 1973 the government of Saudi Arabia acquired 25% interest in crude oil concession rights, facilities and production, in 1976 increased to 60% and in 1980 to a full 100%" (Viola 1986:33). The Third Development Plan also increased chances for Saudi par- ticipation by stating: "Priority in awarding contracts for projects will be given to Saudi contractors. When contracts are awarded to foreign contractors, they will have the stipulation that some of the work must be sub-contracted to Saudi companies" (Third Plan, p.86). Furthermore, a change was effected in the policy of the Saudi Government toward foreign banks. In the late 19705, the government of Saudi Arabia started to Saudize the foreign banks by buying their financial assets and increasing the number of Saudi personnel in their operations (Mackey 1988:175). In spite of these goals and implementation, the achievement of Saudization still faces obstacles, specifi- cally in the private sector. For instance, in 1987 the total labor force in the private sector was 1,540,998 workers. Only 289,411 of these were Saudi, which means that 18.8% represented indigenous participation in the private sector, while 81.28 were non-Saudi workers (Riyadh Chamber of Commerce and Industries 1989:13). Furthermore, despite the economic incentives which were provided by the develop- ment plans and encouraged by government policy for young 9 Saudis to learn special skills, they are on their part still reluctant to take the initiative. Mackey notes: "The record of vocational education is even more dismal. In an attempt to attract students into courses on welding, carpentry, refrigeration, car mechanics, electricity and plumbing, the government during the Third Plan paid all educational expenses for the students plus giving them a salary during training. To sweeten the attraction even further, graduates were promised a SR200,000.00 ($53,333.00) interest-free loan to set up their own businesses. Yet there were few takers" (Mackey 1988:185). Saudization refers to the replacement of foreign workers with similarly skilled, trained, and educated Saudi nationals. This process is orchestrated by political and economic structures and continues to be a high national priority for the future. However, the implementation of this policy will be a continuing challenge for the authorities in Saudi Arabia. Therefore, this study will attempt to analyze the real application of what has been done concerning the Saudization issue and will attempt to identify factors influencing the extent it is realistic to expect a policy of Saudization to succeed. In summary, this study will provide a better understanding concerning the labor market in Saudi Arabia and how to reach a better procedure for "Saudizing" the private sector. Importance of the Study During the past two decades, job activities in the Saudi labor market have expanded as a result of major economic trends in the Gulf area. On the whole, these changes gave new hope for economic prosperity and assurances of a good future, particularly for the indigenous people of the area. Unfortunately, the skyrocketing of these possibilities in the 1970's, did not last. The economic downturn of the 1980's created a gloomy atmosphere in the labor market, as job availability became scarce in the market as a whole. Out-migration of foreign workers was one effect of this situation. More importantly, local unemployment increased day by day, creating potentially massive social problems that could lead to negative consequences. Moreover, the new decade of the 1990's started with an upheaval all over the world that leaves a blurred picture of the world market and potential effects on the Gulf area. In this unsettled context, the Saudi government has. launched its fifth economic development plan (1990-1995), aiming at higher development of the potential for human resources. However, at this point, the road appear to be rocky and future economic complexities are expected to escalate. 10 Organization of the Study The study began with an introductory chapter which presented an abstract, a statement of the problem, and discussed the importance of the study. The second chapter gives definitions of terms, a review of literature, the theoretical argument, an occupational background on Saudi Arabia, and a look at the Saudi labor market. Research methodology is the concern of Chapter III, which discusses major variables, measurement and scaling, target popula- tion, research design, sampling procedure, construction of the questionnaire, translation and pilot study, data analysis, hypotheses and study models. Chapter IV is devoted to analysis of the data. The last chapter contains a summary, conclusions based on the findings, and recommen- dations for further research. Appendices contain English and Arabic versions of the questionnaire, and letters of approval. 11 II. REVIEW OF THE LITERATURE AND DEFINITION OF TERMS Introduction Attitudes toward work have been a long-term interest in the literature on occupations and organizations. In the past two decades, they have received much attention, represented, for example, by the Kohn and Schooler studies that were introduced in the late 19605. Because there is a scarcity of literature on Saudi Arabia concerning this issue, we will depend primarily upon the literature that has been published in industrial countries such as the United States. However, wherever possible, the focus will be on research and studies conducted in Saudi Arabia and in nations which share characteristics with Saudi Arabia. It is also necessary to include non-attitudinal concepts, such as occupation, labor market, and labor migration, which will be used in our analysis. 12 Definition of Terms Most dissertations begin with definitions of the key terms and concepts. Relevant and important key definitions and concepts for this study are: EQLL; The term work has a very real meaning for almost all people in all human society. It has been defined by Hall (1986) as the following: "Work is the effort or activity of an individual performed for the purpose of providing goods or services of value to others; it is also considered to be work by the individual so involved" (Hall 1986:13). Occupation. This concept has a lot in common with the concept of work. Relating it to work, Hall (1975) defined occupation as follows: "An occupation is the social role performed by adult members of society that directly and/or indirectly yields social and financial consequences and that constitutes a major focus in the life of an adult" (1975:6). Attitude. The concept of attitude has been integral in the psychology literature since the start of this century and many theorists have enriched this concept through their psychological studies (LaPiere 1934, Allport 13 14 1935, Wicker 1969, Ajzen & Fishbein 1970). Attitudes develop out of the individual's interaction with an object in any given environment. As defined by Allport, "An attitude is a mental and neural state of readiness, organized through experience, exerting a directive or dynamic influence upon the individual's response to all objects and situations with which it is related" (Allport, 1935). Labor Market. The concept of labor markets, as noted by Kalleberg and Sorensen, has many connotations. "It has been used to denote geographical areas or occupational and industrial groups, as well as groups of workers defined by ethnicity, race, sex, and levels of education and skill. We define labor markets abstractly, as the arenas in which workers exchange their labor power in return for wages, status, and other job rewards" (Kalleberg and Sorensen 1979:351). Saudization. In the late 1970s, Saudization came into being as a new economic term. Viola (1986:177) points out that it means to nationalize some economic organizations, as well as to increase the indigenous labor force par- ticipation in the local productive market. Since Saudiza- tion represents new potential for personal economic advancement, Saudi Arabia's economic planners have made it a buzzword for the nation's human resource development. In 15 theory, it identifies the replacement of expatriate labor with similarly skilled, trained, and highly educated Saudi nationals. Gabeeli. Classified as a high social stratum with a strong heritage, gabeeli is associated with the strong tribes that have had much power and deep political involve- ment in the history of the Arabian Peninsula. The gabeeli can be those who dwell in permanent towns (called settlers) and those who live nomadic lives (called non-settlers). They clainl a superior social status because they view themselves as of pure blood descent within the tribal system. Therefore, they are associated with more pres- tigious occupations, such as farming, commerce (for settlers), and animal herders (for nomads). Khadeeri. The khadeeri classified as a low social stratum and is looked upon as having inferior status. Its members are considered descendants of ignoble tribes with weak political histories which at times included dependence as serfs of the powerful tribes of Arabia. On the whole, khadeeri are involved in all kinds of manual work; more specifically involving skills that have been rejected by the gabeeli stratum, such as carpenter, smith, butcher, tanner, and so forth. The fact that some of these occupations are typically in the private sector is what makes the distinction between gabeeli and khadeeri heritage 16 relevant to our concerns. If traditional views of work are held, they may influence attitudes toward work in the private sector. In this study, we hope to contribute to increased understanding of the relations among work, attitude, occupation, social structure, and internal standards of individuals toward work. In addition, contributions will be made to the literature related to Saudi labor markets and labor migration. Review of Literature Work attitudes have been a concern of many social theorists. For example, Kohn and Schooler (1969) examined the link between social structure and occupational status. Others who are prominent in the literature on this issue are Duncan (1961), Hall (1975), and Braun and Bayer (1973). They all focused on the individual's relation to work, and how work and occupation form meaning and value in human 17 society. However, several studies have proposed that the meaning and value of work differ from one social class to another. For example, Kohn and Schooler (1969) interpreted the relationship of social class to values and orientation toward work when they argued that: Social class is consistently related to men's val- ues, both their values for themselves and those for their children--and to their orientation to work, soc- iety, and self. Basic to all these class relation- ships is the distinction between self-direction and conformity to external authority, the former more highly valued by men of higher social class position, the later by men of lower class position (Kohn and Schooler 1969:659). This approach, by Kohn and others, paints a detailed image of how work and occupation become meaningful to individuals in all human societies. While several strands of the literature point to the effects of parents on childrens' values, this has been examined even further by Kohn and Schooler (1983). Kohn and Schooler found that the experience of self-direction in one's job is a major factor explaining the relationship between socioeconomic back- ground and values. Wright (1976) focused on the importance of parental values for children, especially on the com- ponent of self-direction versus conformity that was discussed by Kohn and Schooler. As explicated by Kohn, "By Parental values, we mean those standards that parents would most like to see embodied in their children's behavior" (Kohn 1969:662) . 18 This dynamic relationship between an individual's internal feelings and the outside world (social and parental values, and cultural aspects of his/her society) may be even more complicated in traditional societies than in industrialized ones. For example, in a society such as Saudi Arabia, where the father's role still dominates children's behavior, even in their maturity, the transition of values from father to son is something that should always be considered. Although, there appear to be no studies in this area, we contend that the internal feelings of Saudi individuals toward some occupations is influenced by the social tradi- tion, specifically by social strata's differing views toward particular occupations. In fact, parental values may be more influential regarding occupation among members of the gabeeli, who still behave in a traditional fashion toward some specific occupations. In a conservative society such as Saudi Arabia, this means that filling some occupations still faces serious obstacles. First, many Saudis, particularly those of the gabeeli stratum, believe manual labor and some specific skills would be humiliating to their family and tribal origin. Secondly, at least fifty percent of the Saudi society (women) has been frozen behind confined walls, which means that the vast majority of women are inactive in the economic sector. The result of these 19 ideas and practices is that most of the manual labor and work that might be performed by women is performed by foreigners. However, adherence to traditional views may be influenced by such variables as education, income, and place of residence. This possibility will be explored in this study. Another important aspect of Saudi culture has affected the changing work environment. The transformation of work from traditional, individual crafts to industrialized, group forms has imposed new trends on work and occupations, in general, and on individual feelings, attitudes, and beliefs, in particular. Bendix (1956) has succinctly summarized the differences between traditional and in- dustrial work: Traditionally, skilled work was performed at leisurely pace or in spurts of great inten- sity, but always at the discretion of the individual worker. In modern industry work must be performed above all with regular intensity. Traditionally, the skilled worker was trained to work accurately on individual designs: in modern industry he must adapt his sense of accuracy to the requirements of standardiza- tion. In handicraft production, each individu- al owned his own tools and was responsible for their care; by and large this is not true in modern industry, so that the care of tools and machinery is divorced from the pride of owner- ship. Traditionally, skills were handed down from generation to generation and, conse- quently, were subject to individual varia- tions. In industry the effort has been to standardize the steps of work performance as much as possible (Bendix 1956:203-4). Theoretical Argument Theoretical arguments concerning the relationship between individuals and labor markets have suggested that differences in the types of skills that workers bring to the market, and differences in traditional views toward some particular occupations, foster social divisions along occupational lines. The emphasis of this study, as stated earlier, is to focus on the relationship between the individual and some related variables regarding work in the private sector. Examination will be made of personal attitudes and the effect of various independent variables upon the individual. Also to be examined is the possible role of intervening variables in mediating the relationship between independent variables and attitude toward work in the private sector. The causal model paths will be estimated from independent variables to intervening variables, then to the dependent variable (attitude toward work in the private sector). Some important variables, such as social economic status, education and occupation of the father/family, type of education of the student, traditional views toward work held by different social 20 7....— 21 strata (gabeeli/khadeeri), and origin (urban/rural), will be looked at as direct determinants of occupational attitudes. Because of the relationship between father's education and a traditional view of work, father's education may mediate the effect of social stratum on the student's attitude toward work in the private sector. Accordingly, we will examine whether education has a strong or weak relationship with other variables and how it influences relationships among certain variables. In a society such as Saudi Arabia where traditional views have played an important role by determining occupa- tional status, new challenges introduced by industrial changes are challenging those views. However, we should emphasize that under certain social conditions, there is the strong possibility that new values will produce social pressures that enable students to transcend the old ways of life. The general educational level of Saudi individuals has risen. We propose that a strong relationship exists between father's education and traditional views of work. If the father has higher education, than it is more likely that the student will reject traditional views and accept work in the private sector. Our argument is premised on the importance of education to society, in general, and to the iladividual, in particular, and on how important the 22 educational system is to society's functioning. As pointed out by Inkeles, "education has often been identified as perhaps the most important of the influences moving men away from traditionalism toward modernity in developing countries" (Inkeles 1969:212). The recent development of the Saudi educational system shows a strong impact on society as a whole. For instance, the increased number of graduating students in all levels of education signals a new positive trend in Saudi society. This may have had an effect on traditional values and attitudes toward some occupations that had been considered demeaning work among members of the noble tribal system. Therefore, we are assuming that the educated Saudi person from the gabeeli stratum will yield and accept occupations that in the past had been shunned by his own social stratum. It is apparent that Saudi society is presently undergoing the process of transformation of cultural attitudes, values, and norms, affecting not only the individual alone but also society as a whole. These changes may influence the attitudes with which we are concerned. In any traditional society, individual locality (urban versus rural residence of family) has a strong effect on the individual's occupational role. Individuals who grow up in urban areas are more likely to accept the changes of 7—— 23 modernity than are those who grow up or are still living in rural areas. Inkeles (1977) summarized the syndrome of the modern man as follows: (1) openness to»new experience, both.with people and with new ways of doing things, such as attempting to control births; (2) the assertion of increasing independence from the authority of tradi- tional figures,such as parents and priests, and a shift of allegiance to leaders of government, public affairs, trade unions, cooperatives, and the like; (3) belief in the efficacy of science and medicine, and a general abandonment of passivity and fatalism in the face of life's difficulties; and (4) ambition for oneself and one's children to achieve high occupa- tional and educational goals. Men who manifest these characteristics (5) like people to be on time, and show an interest in carefully planning their affair in advance. It is also part of this syndrome (6) to show strong interest and take an active part in civic and community affairs and local politics; and (7) to strive energetically to keep up with the news, and within this effort to prefer news of national and international import over items dealing with sports, religion, or purely local affairs (Inkeles 1977:54). We believe, that Saudi students raised in rural and more traditional areas will be more reluctant to accept occupa- tions that have been traditionally rejected by their own social stratum than those students of the same stratum who have lived and been raised in urban areas. The traditional views are expected to have a strong effect on the individual's decision regarding occupation. We assume that students of the gabeeli social stratum are less likely to take just any type of occupation. This may produce a negative association with some intervening 24 variables (e.g., "perception of greater employment opportunity in private sector"); on the other hand, it may show a positive association with variables such as "correspondence of skills and knowledge with public sector jobs". We strongly believe that for gabeeli, acceptance of some occupations is difficult, and becomes extremely dif- ficult among those members who originally came from a rural background. Therefore, we are assuming that for rural students there will be a strong positive relationship among some variables, such as "correspondence of skills and knowledge with public sector jobs" and "perceived lack of job security in private sector". It is also expected that there will be a strong association between "vocational versus university students" and "job fulfillment and need for work". The reasoning behind this statement is that students who want to work and who have a strong concern for achieving goals will seek to prove their knowledge and skills in areas which provide opportunity and innovation, such as large petro-chemical corporations in the private sector; In addition, we are assuming that there will be some major differences in attitude between vocational and university students toward some occupational statuses. In Saudi Arabia the college graduate has more social prestige, and people prefer that their children and relatives have higher education, which 25 in turn provides higher occupational status. By and large, this is different for vocational students who prepare and train to become skilled laborers. Therefore, we are assuming a positive relationship between vocational training and the variables "perception of greater employ- ment opportunity in private sector" and "motivation and need for work". On the other hand, university education will be positively related to the variable "correspondence of skills and knowledge with public sector jobs". Paths from variables of social economic status to the intervening variables will indicate some positive and/or negative association with each variable. We are assuming that students of high SES will be more reluctant to take occupations which are spurned by traditional views; by and large, this may not be the same among students of low SES. The reason for this expectation is that there is less need for work among students from high income families. Also, it is reasonable to suppose that father's occupation will show some positive and negative relationships to other intervening variables. Here, we are assuming that father's skills could be handed down from father to son. We also believe that many Saudi bureaucrats like to see their children having a guaranteed job in government rather than a less secure job in the private sector. Therefore, we are assuming that students whose father's occupation is in the T..___________ 26 private sector will be influenced to apply for jobs in the private sector, and vice-versa. The relationships among the variables adopted in this study will be investigated in more detail according to the path relationship shown in Figures I, II, and III in Chapter III. We expect that, as the study diagram shows, intervening variables can be looked upon as mediators of the relationship between the independent variables and the dependent variable. Occupational Background of Saudi Arabia The growth and development of occupational patterns in any society or economic system is highly related to the environmental setting of local regions. Geographical location is an essential factor forming the sorts of occupational activities that characterize any given community. For example, inhabitants along shores or near large bodies of water are more familiar with occupations 27 such as fishing, pearl diving, or boat making, than are inland inhabitants. The Arabian Peninsula is characterized by a diversity of environmental settings--waterways, desert, mountains, and even semi-forest areas in its south- west region--that should be taken into account when examining the occupational structures of these different regions. The Arabian Peninsula occupies a valuable location; from Eden in the south to the Euphrates in the north, from the Gulf in the east to the Red Sea in the west, this area is one of the most strategic locations in the world. The Arabian Peninsula is the center connecting routes among the three major continents of Asia, Africa, and Europe. Its role in religion bestows upon the area an especially prestigious weight all over the Islamic world. Moreover, the political power of the region has given it a vital role in trade and economic activities. For instance, the succession of political powers such as the Ummayyad Caliphate in Damascus (A.D 661-750), the Abbasid Caliphate in Baghdad (A.D 750-1258), the Fatimids (rulers of Egypt in Fustat old Cairo A.D 909-1171), the Ottoman empire (A.D 1288-1922), or other smaller political groups, made the region a pendulum swinging back and forth between these strategic poles. This, of course, helped advance the trade 28 system and increased transportation between east and west. Ghaudhuri (1985) has commented that: Arab achievement made it possible to unite the two arteries of long distance trade known in antiquity between the Indian ocean and the Mediterranean. The twin channels of the trans—continental trade of Asia, the seaborne traffic through the Red Sea and the combined sea, river, and overland journey across the Persian Gulf, Iraq, and the Syrian desert were brought under the political control of single authorities, at first that of the Umayyad caliphs and later that of the Abbasids. Even the Mediterranean, divided as it was between a Christian north and a Muslim south, eventually recovered much of its economic unity through the activity of merchants and traders (pp. 44- 45). Before the discovery of oil in the area, all these reasons combined to give the Arabian Peninsula a unique economic and occupational configuration. We may divide the occupational structure of the Arabian Peninsula into two areas—-coastal and inland--with each having two major occupational divisions. 1) The Arabian Peninsula's location between two major international waterways, the Gulf in the east and the Red Sea in the west, has historically provided the area with two important occupational activities. Despite the rise and fall of political empires as well as the absence of a complex division of labor, the coastal areas of the Arabian Peninsula have been involved since antiquity with mercantile and fishing activities. Commercial satellite towns, both large and small, sprang up all along the 29 Arabian peninsula's coast, and most of them grew fast and became highly urbanized, such as Kuwait, Qateef, Manamah, Abu-Dhabi, Musqat, Aden, Mokha, Jeddah, and Suez. In fact, the historical importance of the Arabian Peninsula as an international crossroads, Lipsky notes, gave its coastal and inland towns particular importance: "The towns of Arabian Peninsula were located at the intersections of important.communication routes...because of these favorable strategic locations, they have been centers of local or regional authority, which have expanded or contracted at different periods of their long history" (Lipsky 1959:58). Commercial activities gave rise to two principal occupational arenas--the trading system and the transporta- tion system--which in turn were composed of various occupational specialties. The trading system, for example, had roles for the trader, commissioner, seller, exchanger, dealer, usurer, peddlar, cosigner, middleman, agent and so on. The transportation system was divided into navigation on the seas and caravans on the land, linking the Far East with Europe and interior of Arabia. Navigation of the sea had occupations such as sailor or seaman, rower, ship- master, protector, and loader, while the caravans provided places for the cameleer, caravan keeper, servant, porter man, usher, escort, and so forth. Fishing activities were also a major source of occupa- 30 tions, some dealing with fishing as a source of food and others dealing with fishing for pearls (in fact, pearl fishing was one of the most specialized occupations of Gulf inhabitants). Both occupations generated numbers of sub- occupations, such as dealers of fish and pearls, boat makers, jewelers, fishermen, and specialists in fish dehydration, while also being connected to trade and commercial networks. 2. The Arabian Peninsula inland consists of desert, mountainous areas, and even forests, but the vast majority of it, is desert, interspersed with more fertile areas. These geographical facts historically contributed greatly to the formation of two types of occupational activities: one was primitive farming in the oases of Arabia, and the second was animal herding. The majority of the inhabitants of the Arabian Peninsula have historically been unsettled nomadic peoples, making herding animals the predominant occupational practice. Both farming and animal herding generated a variety of work roles. Occupations associated with animal herding, for example, were dealers in animals and animal products, herders or shepherds, cameleers, weavers, and tanners. Farming also created diverse work activities, such as palm tree keepers, sellers of dates or molasses or treacle, welldiggers, basketmakers, carpenters, smiths of farming 31 equipment, sellers of provender, grocers, and so forth. In addition, commercial activities flourished, playing a mediation role between nomads and farmers. None of these occupational arenas should be considered as independent of the others. The villages, the nomad camps, the towns both coastal and inland were all integral units of a large community. All were interconnected and their specializa- tion in skills and crafts made them interdependent on each other. For instance, nomads depended upon villages and towns as buyers of animals and animal products such as wool, skins, and milk for food and necessary goods. Craftsmen in towns served not only their fellow townsmen but also the people of surrounding camps and villages; providing skilled services were farmers, craftsmen, traders, merchants, butchers, weavers, dyers, grocers, blacksmiths, tinsmiths, tailors, shoemakers, barbers, and so on. It is important to emphasize that in a traditional society such as that of the Arabian peninsula, members of any particular occupation were very likely related by blood. Each family or lineage within the tribal system specialized in an occupation, hence the occupational divisions were well associated with tribal divisions. As a result manual occupations were treated lowly because they were performed by lowly tribes. For instance, the produc- 32 tion of charcoal always belonged to a tribe with an ignoble background. In urban centers there were divisions into small occupational communities where each represented a particular work activity. As noted by Gerstl; ”An occupa- tional community means that people who are members of the same occupation or who work together have some sort of common life together and are, to some extent, separate from the rest of society” (Gerstl 1961:37). In the late 1930's, the discovery of oil had an immense impact on the traditional social and economic organization. Decline in the relative contribution of all the above major occupations led to new'patterns of develop- ment, affecting not only the occupational setting but the social setting as well. The introduction of crude oil industries followed later by petro-chemical industries, was enough to transform Saudi society from its traditional economic system to one of the most modernized oil in- dustries, bringing'with.it all modern types.of occupations. In fact, discovery of oil brought with it three major factors that influenced the old occupational setting: settlement of nomadic people; growth of a complex government bureaucracy; and creation of new private-sector organizations. These major shifts in occupational settings placed Saudi society on a new frontier. The Saudi Arabia Labor Force The aim of this section is to provide a short history of the labor force in Saudi Arabia, with emphasis on its present state. Although greatly needed, any study of this topic faces considerable difficulties because of the lack of reliable statistical resources. Even when these resour- ces are found, it is hard to accept them*without additional verification. Nonetheless, the historical background presented here of the labor force in Saudi Arabia divides it into three historical phases: the first is that time before the discovery of oil; the second phase includes the era after oil discovery (1938-1970); and the third phase covers the era of petro-dollar utilization (1970-1990). Before the discovery of oil, Saudi Arabia did not exhibit a clear division of classes as was the case in Western societies. The physical environment of the country reinforced the social and economic patterns of unsettled nomadic life for the majority of the population. There was no strong central government, no complex division of labor or large economic institutions, and no formation of a working class dependent on wage labor. However, with the discovery of oil in 1938, Saudi economic activities faced 33 34 the dawn of economic transformations that would make the oil industry the real back bone of the Saudi economic however, the formation of wage system. In the beginning, labor force was limited. ARAMCO was the first employer to plant the seeds for a new working class in Saudi Arabia; as the following table shows, Saudi manpower was always the majority of ARAMCO'S total employment. Table 2.1. Saudi Arabian Operations Manpower History in ARAMCO. Year Saudi Non-Saudi Total 8 8 1935 115 81.6 26 18.4 141 1940 2668 87.5 382 12.5 3050 1945 8037 71.5 3159 28.5 11246 1950 10767 63.8 6099 36.2 16866 1955 13371 65.1 7163 34.9 20534 1987 *33046 76.0 10435 24.0 43481 Source: Viola.J.W. 1986. Human Resources Development in Saudi Arabia. p.7 * ARAMCO Annual Reports 1987:28. 35 Although these figures represented a tiny fraction of the total Saudi population, the effect of the oil industry was of enough magnitude that it attracted many Saudis not only for oil production, but also for other related job activities, such as for railroad, construction, services, and small manufacturing. However, the discovery of oil had a minimum effect on society as a whole, so that during the decades of the 1940's through 1960's, the Saudi labor force was limited to oil production and other minor economic activities. The third phase in the development of the Saudi labor force generated wider economic and social transformations with more dependence on foreign workers and less involvement of indigenous labor. The decade of the 1970's can.be looked upon as an unusual era for the history of Saudi Arabia. In it, the implementation of the first two five-year development plans paved the road for a new epoch of industrialization. In this decade, the foundations of the economic infrastructure were established, such as home and building construction, roads, airports, seaports, petrochem- ical industries, energy production, communication networks, water distillation, schools, and hospitals. The full range of human needs were addressed in these developments. Two factors made these achievements possible: capital from the Saudi government and.a labor force imported fromioutside the 36 Table 2.2. Saudi and Non-Saudi Labor Force Increase, 1975-1985 (thousands of people) Nationality 1975 8 1980 8 1985 8 Saudi 1439.7 74.8 1518.7 47.3 1621.1 37.3 Non-Saudi 484.0 25.2 1694.0 52.7 2721.0 62.7 Total 1923.7 100 3212.7 100 4342.1 100 Source: GCC Secretariat-General, Economic Review #2 1987. p.248. country. Thereafter, heavy reliance on imported foreign labor dramatically increased year after year, as shown in the above table. Over the past two decades, while non-Saudi workers were increasing, Saudi workers were proportionally decreas- ing. The vast majority of the non-Saudis depicted in Table 2.2 were active in private sector organizations, but expatriate workers were also heavily represented in governmental organizations, presently accounting for about 37 Table 2.3. Saudi and Non-Saudi Employment Progress in Public Sector from 1978-1989. Year Saudi 8 Non-Saudi 8 Grand incr- incr- Total ease ease 1978 154789 - 57252 - 212041 1979 165056 6.6+ 64182 12.0+ 229238 1980 183501 11.2+ 69397 8.0+ 252898 1981 195604 6.6+ 72867 5.0+ 268471 1982 247978* 26.8+ 86243 l8.0+ 334221 1983 258124 4.1+ 106124 23.0+ 364248 1984 274459 6.3+ 121331 14.0+ 395790 1985 299738 9.2+ 129281 7.0+ 429019 1986 316629 5.6+ 140494 9.0+ 457123 1987 336456 6.3+ 144523 3.0+ 480979 1988 343629 2.1+ 12502** - 1989 356973 6.1+ 7284** - - Adapted from: Annual Report for Civil Service Figures 1987/88 (P.19). Printed by the National Center for Information, Ministry of Finance and National Economy. Riyadh, Saudi Arabia. * Since 1982 the statistical figures for the following employees (universities teaching staff, cadre of judges, and some of government agencies) have been added to the total employment figures of Civil Service Bureau. ** These figures have been taken from Civil Service Bureau Statistical Annual Summary for 1988 and 1989, which means the actual total number for Non-Saudi employment are not added yet (taking into consideration those Non-Saudis whose contract will end in these two years 1988 and 1989). 38 308 of government employees (please see Table 2.3.). Considering these statistics, the question arises, why is it the case that, while there is a shortage of jobs for Saudi nationals (especially those with more education), many government offices are operated by non-Saudi employees, exactly where one might expect to see more Saudis. An answer readily given is that the existence of non-Saudi employees in the public sector is not necessarily important since their eventual replacement by Saudi nationals is very likely. Nonetheless, there are reasons for this phenomenon” IFirst, Saudi Arabia's urgent need for professionals in fields such as medicine, higher education, and technical fields made it initially necessary to import professionals from other countries. Second, the majority of these non-Saudi employees were transferred from other Arab countries, such as Egypt, Jordan, Sudan, Tunisia, Lebanon, Syria, and the Yemen, as part of an effort by the Saudi government to ease some of the internal economic difficulties of those countries by giving indirect aid in the form of jobs, at the expense 'of the Saudi budget. Third, non-Saudi employees are more likely to be skilled and trained in their country of origin, with the result that some Saudi bureaucrats prefer non-Saudis not only for their managerial experience and loyalty to their employers but also because their wages fall below the standard rate 39 of pay for Saudi employees. Turning to the private sector, we find that while 30% of public sector employees are non-Saudi, 80% of the private sector work force are non-Saudi. It is difficult to precisely picture the private sector work force in Saudi Arabia because the statistics available, like those, for example, from the 6081 (General Organization for Social Insurance) annual statistical report. of 1988, do not reflect actual work force figures, but only deal with figures of registered workers who work in active organiza- tions. anetheless, these statistics still allow us to identify characteristics which shape the configurations of the private sector labor force, characteristics such as age, wages, occupations, and location. The decade of the 1980's was a turning point for the Saudi economy. In it the country tried to proceed with the development projects of the third and fourth five-year - programs of (1980-1990). However, in the mid-1980's economic recession set in after the decrease in oil prices, crippling many economic activities, which in turn affected the size of the labor force. As revealed in the Table 2.4, total employment decreased. year after year from 1984 through 1987. In 1988, as oil prices rose again, there was a 18 increase in the total labor force. 40 Table 2.4. Changes in the Number of Workers in Employment in both Sectors from 1984-1988. Years Sectors Grand Percent change total to grand total Government Private 1984 150707 1101921 1252628 - 1985 159900 965471 1125371 -10% 1986 161454 844893 1006438 -11% 1987 88929 729324 881253 -128 1988 91815 801780 893595 1% Adopted from GOSI 9th annual statistical report. p.267. The geographical and occupational distributions indicate important characteristics of the private sector work force. The majority, 69%, of Saudi workers are con- centrated in the large urban centers, mainly' Riyadh, Jeddah, and Dammam. This unequal distribution of the labor force among Saudi cities may harm the economic substruc- ture of towns and limit worker mobility. In fact, it deprives the rural area of participation in the work force; 41 Table 2.5. Distribution of Workers in Employment By Region and Cities in 1988. Region Cities No. Of Workers Percent Region in 1988 Total 8 Riyadh 225 224 25.2 Central Qassim 26 691 3.0 Bail 7 368 .8 29.0 Jeddah 160 453 18.0 Makkah 43 837 4.9 Western Madinah 29 916 3.4 Tabuk 19 336 2.2 Taif 28 994 3.2 Yanbu 16 810 1.9 33.5 Damaaa 230 552 25.8 Eastern Ahsa 25 374 2.8 Juhail 28 937 3.2 31.9 Abha 30 262 3.4 Southern Jizan 13 384 1.5 Najran 6 457 0.7 5.6 Grand Total 893 595 100.0 100.0 Adopted from GOSI 9th annual statistical report. p.122. 42 therefore, the skewing of the occupational distribution is a major obstacle for some Saudi nationals (particularly those who live in rural areas where the job availability in their towns or nearby urban area is limited). Table 2.6 presents the distribution of workers by major divisions of major occupations and economic activities. Of the nine major economic activities depicted in the table, four categories account for 77% (manufacturing 10%, construction 28.585, trade & hotels 21.2%, and finance & real estate 5.9%). Also, three major divisions of occupations account for 76.9% (professional 8 technical 7.8%, clerical 9%, and production, transport equipment operators and laborers 60.1%). These four major economic activities and three major occupational divisions represent the bulk of the labor force in Saudi Arabia. Another important characteristic of the Saudi labor force is the low wages among the majority of the work force, as indicated in Table 2.8. In fact, if we combine the first two columns of the wage categories, we find that 72%. of the total labor force earns an annual income averaging $6390. This low wage profile is one of the main reasons for relying on foreign workers, since they more easily accept low wages. In addition, distribution by age shows that, on the whole, the private labor force is young, 43 Table 2.6. Distribution of Workers in Employment By Economic Activity And Workers Major Divisions Of Occupations in 1988. Economic t Total Not Major Occupations Activity Indic- ated 7,8,9 6 5 4 3 2 0,1 Agriculture 1.0 8493 930 5858 316 113 198 487 101 490 and Fishing MiningaPetrol 6.6 58837 15690 22881 95 2945 166 8253 439 8368 Manufacturing 10.0 89788 11051 57106 139 2358 1572 9063 1290 7209 Water/Electr 4.5 40107 7714 19840 43 1649 129 5938 435 4359 Construction 28.5 254774 37976 182903 1174 5439 806 13411 1427 11638 Trade/Hotels 21.2 189734 27403 115713 703 8874 4984 17521 2494 12042 Transport 8 5.0 44493 5568 26321 71 1262 394 6122 714 4041 Communication Finance/Real 5.9 52609 10255 15188 104 3401 287 15027 1338 7009 Estate Community a 17.3 154759 33694 91368 392 6091 273 8287 589 14065 Social serv Not Indicated - 1 - 1 - - - - - - Grand Total 100.0 893595 150281 537179 3037 32132 8809 84109 8827 69221 Percentage 100.0 16.8 60.1 0.3 3.6 1.0 9.0 1.0 7.8 Adopted from GOSI 9th annual statistical report. p.128. Symbol Major Divisions of Occupations 0&1 Professional, technical & related workers 2 Administrative & managerial workers 3 Clerical 9 related workers 4 Sales workers 5 Services workers 6 agriculture 9 animal husbandry workers, fishermen 8 Production 8 related workers, transport equipment operators and laborers Adopted from GOSI 9th annual statistical report. p.278. 44 with 82% being below 44 years of age. Finally, one of the problems hindering the Saudi labor force is the limited participation of women in all economic sectors. In fact, deliberate planning freezes and limits this huge social resource. Projections by Saudi planners, as illustrated in Table 2.7, shows the limited inclusion of women as real participants in the labor force. It shows women as only 4.28 out of the total projected employment for 1989/90 (Saudi 2,160,700 and. non-Saudi 2,059,80084,220,500) and only 2.7% out of the total projected growth for the working age population. Shabon (1981:55) sums up how the Saudi economic system ignores women and restricts their role. In spite of the increasing demand for labor, about one half of the Saudi population does not participate in economic activities outside the home. The female labor force in urban areas contributes only about one percent to the economy. This small percentage works only in social institutions. Rural women participate more in providing a livelihood for the family, but their low productivity reduces their share in the total national product. The majority of working women at the present time are working in the public sector, mainly for two particular organizations, the General Presidency for Girl's Education (particularly segregated education) and the Ministry of Labor and Social Affairs. Women's participation in private- sector organizations is almost non-existent. 45 In conclusion, it is fair to say that, overall, the low participation of Saudi nationals in the private sector stems from three main reasons. First, women have limited access to work. Second, traditional negative views toward some menial jobs still predominate. And, third, reluctance by those in power, whether the owners of private sector organizations or decision makers in the political hierar- chy, to implement Saudization policy as they planned it. Therefore, expected negative economic consequences will be inevitable. Table 2.7. Projected Civilian Employment and Working-Age Population by Sex 1984/85 and 1989/90 (thousand) Saudi Nationa- 1984/85 1989/90 lity Males Females Total Males Females Total lian employment 92.38 7.78 91.88 8.2% Projected civi- 1649.2 136.8 1786.0 1984.1 176.6 2160.7 ing Age Popult Projected work- 2686.0 2659.0 5345.0 3237.0 3210.0 6447.0 Source: Fourth Development Plan, (1985-1990), Ministry of Planning. Riyadh. Saudi Arabia. p. (84 & 89) english version. 46 Table 2.8. Distribution of Workers in Employment by Age Group and Monthly Wage Category in 1988. Age Wage Category Total 8 Groups Less than SR1000- SR3000 SR5000- SR9000 SR 999 or 2999 or 4999 or 8999 or or $ 266 $267— 5800- $1334- $2400+ $1=SR3.75 799 1333 2399 15-29 91631 64314 23874 22912 4484 207215 23.2 30-44 180790 213683 59114 43961 27786 525334 58.8 45-59 18765 63078 21513 13115 17490 133961 15.0 60 + 951 13657 5418 1319 2011 23356 2.6 Not In- 684 1668 705 472 200 3729 .4 dicated Total 292821 356400 110624 81779 51971 893595 100 Percent 32.7 39.9 12.4 9.1 5.9 100 Combined from table in (p.167) GOSI 9th annual statistical report 1988. III.RESEARCH METHODOLOGY The Study Area The main focus of this study is the attitudes of young Saudi students who were eligible for work and ready to graduate in the academic year 1989/90. Three types of educational institutions are included: universities, the Institute of Public Administration, and vocational and technical institutions; these institutions are located in three different regions of Saudi Arabia: Western, Central, and Eastern. Finally, the target population is located in three different cities: Jeddah, Riyadh, and Dammam. These educational and training institutions supply labor to all economic sectors, and were chosen for several reasons. First, these institutions are large, and are located in all three regions. ‘ Due to the capacity and capability of the academic and training programs of these institutions, they admit students from all over the country. Second, graduates of these institutions are free to apply for jobs in any sector of the economy, unlike other training centers which are specialized and controlled by one organization: for example, the Male/Female Health Institute is controlled by the Ministry of Health, the Postal Institutes and 'Telecommunication. Center' by the 47 48 Ministry of Communication, and the Training Institute for Civil Aviation by the Ministry of Defense. Finally, because these universities and vocational institutions represent.general segments of Saudi society, we believe the targeted population provides the researcher with more diverse and representative opinions on Saudis‘ attitudes towards work in the private sector. Sampling Procedure Both the Institute of Public Administration (IPA) at Riyadh, and the Saudi Cultural Mission (SCM) at Washington D.C., sponsored andflhelped finance this study. In addition, they greatly assisted the researcher by providing official letters of introduction to the target educational institutions, which facilitated our contact with the target group. To obtain a representative sample of the students, a total of 1215 students were selected from senior students at the following institutions: King Saud University (KSU), King Abduaziz University (KAU), King Fahd university of Petroleum and Minerals (KFUPM), Institute of Public 49 Administration (IPA) , Vocational and Training Center (VTC) . Technical Educational Institute (TEI), and Commercial Secondary Education (CSE). These educational institutions have the ability to accommodate all kinds of fields, disciplines, and training programs, and are able to produce skilled laborers, therefore, the sample has enough scope to represent students who were eligible for work in Saudi Arabia, generally. The subjects also have varying levels of education because different types of schools are included. The sample has been drawn from schools in the most populated regions in Saudi Arabia (eastern, central, andwwestern) but includes students from the entire country. This sample was randomly selected, and provided the opportunity for every individual in the sample to be drawn. A list of all students expected to graduate in the academic year 1989/90 was obtained from each institution as the sampling frame for each group. Hence, all univer- sity students were organized as follows: - All students expected to graduate were classified according to their field, discipline, or training program. - All necessary information about the student. was available in the records such as their nationality and the courses they had registered for this term (including where and when courses met, and the professor's name). The systematic random selection method applied to 50 university' students, as indicated by Warwick (1975:101-2), is a method of selecting units from a list through the application of a selection interval (I), so that every Ith unit on the list, following a random start, is included in the sample. The interval (I) is readily determined by dividing the population size (N) by the desired sample size (n). This was the method we used for selecting a systematic sample of 160 and 150 students from the expected graduates list in each university. For example, the expected graduating students at King Saud University were about 800 Saudi students. The first step was to calculate the interval, I=800/160=5. Then we chose a random start number from the first segment of length I on the list of names in each field, discipline or training program, that is, I-5 for each major area. A random number within this interval was easily obtained from a table of random numbers. The number 3 was drawn, the third student on the graduation list was the first selection. The final step involved adding the value of the interval (5) to the random start (3) and to each succeeding number arrived at thereafter. Our sample of the graduation list for King Saud University was numbers 3, 8, 13, 18, 23, and so on; the students corresponding to the selected numbers comprised the sample. This procedure was also applied to the other universities. 51 In the case of vocational and training institutions, the random cluster technique was used for sampling. According to Warwick's (1975:98) definition: "cluster sampling is a procedure of selection in which the elements for the sample are chosen from the population in groups or clusters rather than singly." All vocational and training programs clustered in groups, and divided according to the _type of training program (some training programs having more than one group). Our aim was not to select more than one group for each program in the same institution. Of the 1032 students who responded to the questionnaire, the subjects were divided as follows. Senior university students, numbering 342, consisted of 135 respondents from King Saud University (KSU) at Riyadh, 114 respondents from King Abdulaziz University (KAU) at Jeddah, and 93 respondents from King Fahd University of Petroleum and Minerals (KFUPM) at Dammam. From three vocational and training institutions, 377 students responded: 144 respondents from Technical Education Institutions (TEI) at Jeddah, 121 respondents from Vocational Training Centers (VTC) at Dammam, and 112 respondents from Commercial Secondary Education (CSE) at Riyadh. In addition, 313 respondents from the Institute of Public Administration's headquarters in Riyadh and two of its branches in.Jeddah and Dammam numbered 94, 116, and 103 52 respectively. The reason that some non-response rates were higher than others is that some students have personal reservations and.did.not answer the questionnaire and there were more of these students in some places than in others. Each target group was classified as high, medium, or low, according to its educational level: the universities were high, the Institute of Public Administration was medium, and the Vocational and Technical Institutions were low. Sampling Procedure and Data Collection In order to draw a representative sampling of the target population, and to give an equal chance for each student to be selected, we used the stratified random sample method of selection. Applied to university students, the population was divided into subpopulations (colleges then departments); then a simple random sample was drawn from each of the subpopulations. Another method of selection was the cluster sampling technique, which was applied to vocational and training institutions in which the population was divided into a set of clusters (in a set of class rooms or training programs); then a simple random sample for each cluster group was drawn (in a group setting). For the selection of university students, we set the following conditions; a. The target group must be from students who are expected to graduate fall term 1989; if this was not possible, then we included students expected to graduate the following term, winter 1990. b. The target group consisted of male students only This is for two reason: (1) male researchers encounter difficulty reaching female students, and (2) severe limitations exist on women's participation in the economic work force in Saudi Arabia. 53 54 c. All in the target group must be Saudi citizens (non-Saudis were excluded). d. Medical schools were not included (because of shortages in local staffing in Saudi medical institutions, graduates of this field.have no difficulties at all finding jobs). e. Samples were drawn from each college separately. In this way we could cover all different fields, and could avoid elimination of any discipline that had only a small amount of expected graduates. g. The size of target groups in each university varied from 150 to 160 students. By permission of admissions and student affairs departments in each university, we asked for the total number of all expected graduates for fall term 1989. Because the universities differed in size, the total number of graduates varied. In King Saud University (Riyadh), for example, the Saudi students expected to graduate were just a little over 800. Their name, disciplines, and field of study were recorded according to the colleges and departments they belonged to. The same proportion of students were selected from each college and department. Since a total sample of 160 was to be drawn from 800 graduates, we selected approximately 2095 of each department's graduates (160/800 X 100). A total of 160 55 students were selected from KSU. King Abdulaziz University (Jeddah) had a total of 504 Saudi students who were expected to graduate. From this number, which represented all colleges (except the medical school), we selected 150 students. Therefore, 30% (150/504 X 100) had to be chosen from each department. King Fahd University of Petroleum and Minerals (Dharan) had a lower number of graduates; only a total of 153 Saudi students were expected to graduate. We asked for the list of all senior students which at 310 was approximately twice this number. Therefore, we chose 150 students out of the total number of all seniors which. gave us an equal distribution among university graduates. The second target group was drawn from the headquarters of the Institute of Public Administration (Riyadh) and twoibranches (Jeddah.and.Dammam) (All programs at the institute are two years of length and enroll high school graduates.) At the headquarters, out of 26 training programs we chose five training programs: Finance, Typing, Banking, Librarian, and Secretarial. From a total of 120 selected students, only 94 respondents answered the questionnaire. Jeddah branch had a total of ten training programs, from which we chose the following five: Hospital Administration, Financing Studies, Computer Basic, Advanced Secretarial, and Taxes & Finance Studies. A total of 126 56 students were selected, with only 116 returning the questionnaire. The Dammam branch also had a total of ten programs from which we chose the following five: Computer Program, Hospital Administration, Public Administration, Advanced Secretarial, Financial Studies. A total of 103 students were selected and all responded to the questionnaire. In the case of the vocational institutions, which we classified as a low level of education, three institutions were chosen in three main cities. (1) At the secondary commercial institute in Riyadh there were 250 student clusters in nine classrooms, all ready to graduate this academic year 1989/90. We chose four classrooms consisting of 113 students; 112 students responded. (2) The indus- trial institute in. Jeddah. had five different fields; Electricity, Automobile, Mechanic, Construction, and Electronics. The senior level was composed.of 359 students; we chose one clustered group from each field for a total of 144 students, who all answered the questionnaire. (3) The vocational institute in Dammam had nine different training programs: Carpentry, Typing, General Mechanic, Electricity, Welding, Automobile, Commercial, Tinsmith and Painting, and Air-Conditioning. From a total of 147 students selected, only 121 students responded. Table 3.1 summarizes the target groups. THE 57 Table 3.1. SAMPLE FOR THE STUDY OF "OBSTACLES TO SAUDIZATION IN THE PRIVATE SECTOR OF THE LABOR MARKET OF SAUDI ARABIA". Institution Popula- Return Percentage Name tion Respond of Response 1. KSU 160 135 84.48 2. KAU 160 114 71.38 3. KFUPM 150 93 62.08 Universities 470 342 73.08 Total 4. Industrial 144 144 100.08 Ins't in Jeddah 5. Vocational 147 121 82.38 Ins't in Dammam 6. Commercial 113 112 99.08 Ins't in Riyadh Vocational 404 377 93.38 Total 7. IPA/Jeddah 118 116 98.08 8. IPA/Dammam 103 103 100.08 9. IPA/Riyadh 120 94 78.08 IPA Total 341 313 91.88 [lGrand Total 1215 1 1032 85.08 I The Survey Instrument A self-administered questionnaire (translated into Arabic) was chosen as the means to conduct this study. The data were gathered by contacting the subjects in the locales of their educational institutions. In fact, all .students at 'vocational and training institutions ‘were visited in their classrooms by the researcher himself, and the selected students were asked to fill out the questionnaire voluntarily. In the case of university students, we distributed the questionnaire through their colleges and departments, and asked them to complete the questionnaires and return them to the person(s) in charge. Construction of the Questionnaire The questionnaire was divided into two sections: the first section, composed of 25 general questions obtained personal information about the individual's history and 58 59 his present living and social economic status. The second section was composed of 52 statements, 42 of which were ranged on the Likert scale from "strongly agree to strongly disagree", and explored the individual's attitude toward work in the private sector. The last 10 items of this section were a continuation to the first 42 but were in non-Likert format. Each section of the questionnaire began with brief instructions on how to proceed with answering the questions. In addition, a cover letter was attached to the questionnaire explaining the purpose of this study and urging students to participate. The letter emphasized the anonymity and confidentiality of the information provided ; we asked the respondents not to write their names on the questionnaire, or to answer inap- plicable question(s). Translation and the Pilot Study All respondents speak Arabic, therefore, the question- naire was translated from the English version into Arabic. The initial translation was made and checked by the researcher. It was a great advantage that a group of three 60 Arab graduate students at Michigan State University were available to make some commentary and offer comparisons on both versions. In fact, their comments and modifications were very helpful. Upon arrival in Saudi Arabia, the researcher immediately had the handwritten translated version printed in Arabic, and had the translations checked by three qualified IPA bilingual staff, who reviewed the entire instrument. Their evaluation of the translation, grammar, organization and design of the questionnaire were especially helpful and well-taken. A few days later (October 31, 1989) we chose 18 students from the IPA program (bilingual typing program) for conduct of the pre- test; they were asked to signal any difficulties or ambiguities they met with in answering the questionnaire. Their responses did provide some minor changes, and gave the green light to launch the study. We decided to administer the questionnaire first at.one~of the vocational institutions so that we could gauge if the questionnaire was applicable and ready to use or not. Toward that end, we chose the Secondary Commercial Institute in Riyadh, Afterwards, some minor modifications were made and the questionnaire took it final shape. Dependent and Independent Variables The major variables of this study are as follows. Attitude toward work in the private sector is treated as the dependent variable. Socioeconomic status (SES), type of education, and urban/rural background are treated as independent variables. In addition, four different variables have been treated as intervening variables. They are student's attitude toward Saudization of the private sector, perception of extent to 'which private sector employment fulfills work needs, traditional views of work, and correspondence of skills and knowledge with public sector jobs. All of these variables are included in the causal model as shown in figures I, II, and III (see pp. 68-70). In addition to the above variables, there are~a number of independent variables that are dealt with separately: perception of greater employment opportunity in the private sector, perceived effect of enactment of laws regulating the private sector, perceived lack of job security in the private sector. 61 Measurement and Scaling In order to measure the principal variables of this study, a number of scales based on the Likert technique were constructed. The items included in each scale were selected from a larger number of items and represent the items producing the highest Alpha level. Deleting any of the items would have reduced the Alpha. The Alpha for each scale is reported in Tables 4.12 to 4.16. Original items were developed by the researcher concerning the issue of attitudes toward work in the private sector. The dependent variable, attitude toward work in private sector, is measured by the following items: 1. I would especially like to work in the private sector. 2. I would be willing to work in the private sector but only in a high status job. 3. To me, there is no difference in working in either the private or public sectors. 4. I would believe that satisfaction in my life comes from my future job in the private sector. 5. The advantages and disadvantages of work in the private and public sectors balance each other. . 6. There are many more disadvantages than advantages in the public sector. For measuring the three independent variables (SES, type of education , and urban/rural background), a number of item(s) were collapsed for each‘variable. For example, items 62 63 used to measure social economic status (888) are the following: 1. How much education has your father completed? 2. What is (or was) your father's main occupation while you were growing up? 3. Approximately what is the total annual income of your family from all sources? The other two independent variables are rural/urban background and student's classification according to level of education. Each variable was measured by a single item asking respondents to identify their home background and type of education. All the intervening variables were also based on the Likert scale and measured by more than one item, constructed as follows: "Student's attitude toward Saudization of the private sector" is represented in the following items: 1. All foreign workers in the private sector should be replaced by Saudis. 2. Although the foreign workers get low wages, the government should impose more restrictions on importing foreign workers. 3. The private sector hiring policies can be seen as an obstacle to the Saudization process. 4. The government should adopt strong laws or procedures to speed up the Saudization policy. 5. The private sector should take the initiative toward implementing Saudization policy. 6. I would prefer a job where I would work only with other Saudis. "Perception of extent to which private sector employment fulfills work needs" is represented by: 64 Work in the private sector fulfills my need financially more so than work in the public sector. Work in the private sector fulfills my need emotionally more so than work in the public sector. Work in the private sector would give me oppor- tunity to learn and practice my skills. I am eager to learn more skills and knowledge, and, for this reason, the private sector is the right place for me. The private sector offers one a chance to put his own ideas into operation. ”Traditional views of work" is represented by the following items: 1. My family strongly disapproves of some types of occupation. 2. The following occupations, such as carpenter, smith, butcher, tanner, are not acceptable to my family. 3. Even if I have difficulty finding a job, the following occupations, such as carpenter, smith, butcher, tanner, are not acceptable to me. 4. I would not want a job that requires manual work. 5. Quite a number of things about manual work annoy me. "Correspondence of skills and knowledge with private sector jobs" is measured by the following items: 1. 2. The education and/or the training program I am in now gives me enough skills and knowledge to get a job in the private sector. My education or training program will provide me with more opportunity to get a job in the private sector than in the public sector. In addition, a number of independent variables can be measured by items similar to the above. For instance, a variable such as "importance of work" is measured by collapsing the following items: 2. 3. 5. 65 Work is more important to me than to most other People. Most things in life are more important than work. I think that, if I could not do my future job well, I would feel that I was a failure as a person. I wouldn't mind working eight hours a day six days a week. No matter what happens, work always comes first. "Perceived effect of enactment of laws in the private sector" is measured by collapsing the following: In my opinion the government should take more serious procedures providing job security in private sector. The private sector should have a standardized payroll as the public sector does. "Perception of lack of job security in the private sector" as an independent variable is measured by collapsing the following items: 1. 2. I am interested more in job security than other incentives. If you were choosing between two jobs, one in the private sector and one in the public sector, which of the following would be most important to you in making your choice? Job security, Easy job, Pay, Location in country, Chance of promotion, Job title. Examine—ass In this study, understanding and explanation of the obstacles to Saudization in the private sector center on Saudi students' attitudes toward work in the private sector. Therefore, the following research hypotheses about young Saudis' preference for work in the private sector are proposed: If Saudi students believe that private sector employment requires skills and knowledge that they do not have, they will be less likely to make plans for entering the private sector. In the opinion of Saudi students, the enactment of more laws and procedures for the rights and protection of workers would increase the likelihood that they would seek work in the private sector. Saudi students whose father's have a higher level of education are less likely to have negative views toward work in the private sector. The higher the family income, the more negative will be the students' attitudes toward private sector employment. Saudi students whose fathers have a higher occupational status are less likely to have negative views toward work in the private sector. Saudi students who have a large family are less likely to hold negative views toward work in the private sector. Saudi students are less willing to accept private sector employment if they hold traditional views regarding acceptability of occupations. 66 67 8. Saudi students who perceive that private sector employment will fulfill work needs are more likely to seek jobs in the private sector. 9. The greater the importance Saudi students attach to saudization of the private sector, the more favorable will be their attitudes toward employment in the private sector. 10. Students whose fathers are or have been employed in the public sector will have more negative attitudes toward private sector employment. 11. University students have a stronger preference for public sector employment, while vocational and IPA students have a stronger preference for private sector employment. 12. Saudi students who live in rural areas are more likely to prefer to work in the public sector. Figures I, II, and III present a causal diagram of the relationship among variables which summarizes the hypothes- es to be tested in this study. The diagram shows the influence of the independent variables (social economic status, region background, and type of education) on the dependent variable (student's attitudes toward work in the private sector) and the intervening variables (attitude toward Saudization of the private sector, perception of extent to which private sector employment fulfill work needs, traditional views of work, and the correspondence of skills and knowledge to public sector jobs). Causal link between dependent, independent, and intervening variables 68 FIGURE I as determinants of attitudes toward work in the private sector. Independent Variables _J Socioeconomic status (SES) Intervening Variables ,—) Dependent We Attitude toward saudizat- ion of the private sector Perception of extent to which P.S. employment fulfill work need Tradition- ,_) a1 views of work Correspon- dence of skills and knowledge with publ- ic sector jobs Queen Attitude toward work in private sector 69 HEB—3.11 Causal link between dependent, independent, and intervening variables as determinants of attitudes toward work in the private sector. Independent Intervening Dependent Variables Variables Variable Attitude toward saudizat- wr_o ion of the private sector QEEEQEQ Perception Education Type of extent ... .University to which .IPA L 9.3. Attitude .Vocational ) employment |.____> toward fulfill > work in work need ,___.> private _> sector Tradition- L__) a1 views of work Correspon- dence of skills and ......) knowledge A —- with publ- ic sector jobs 70 w Causal link between dependent, independent, and intervening variables as determinants of attitudes toward work in the private sector. Independent Intervening Dependent Varigblgs Variables Variable Attitude toward saudizat- _) ion of the private sector Outcome Perception of extent ‘——4 URBAN & RURAL to which BACKGROUND 1. P.S. Attitude ) employment | ——__0 toward fulfill > work in work need RF...» private 7..» sector Tradition- ,__9 a1 views of work Correspon- dence of skills and ,_) knowledge ‘ —m with publ- ic sector jobs IV.MAL!§IS OF DATA This chapter presents the results of‘data analysis and interprets study findings. The objective of this study is to examine the factors that facilitate or hinder the process of Saudization in the private sector of the Saudi Arabian labor force, as viewed by young Saudis eligible for work in the private sector. The main questions that need to be raised here are: how possible is it to increase indigenous labor force participation in the private sector, where the greater proportion of labor (828) is foreigners and what factors influence this possibility. This chapter'is divided into three sections. The first section provides general descriptive data, consisting of frequencies, cross-tabulations, and percentages. The second section moves to a higher level of analysis, showing bi-variate relationships among selected variables, and testing the proposed hypotheses by applying correlation coefficients, and one-way analysis of variance. The third section moves to a more complex level of analysis, one testing the actual models used for this study (see Figures I, II & III). At this stage, we will use a multiple regression procedure. If the theoretical expectation is, 71 72 for example (such as in Figure I), that the influence of social economic status on attitude toward work in the private sector is primarily indirect, that is to say that SES may influence, for example, traditional views of work which in turn influences the outcome variable (attitude toward work in private sector). We can then move from examining two or three variables at a time to a test of .the model as a whole. Here, we can deal with all variables simultaneously; therefore, multiple regression and multiple correlation analysis will be applied. Section 1: Descriptive Analysis This study has a total of 1032 usable respondents representing three types of educational institutions, all of whom were ready to graduate during the academic year 1989/90. Table 4.1 presents the distribution of students among the three types of educational institutions, and indicates an almost equal distribution: 33.18 of the students were from universities, 30.38 from the Institute of Public Administration, and 36.58 represent the vocational institutions. Table 4.2 presents the ages of respondents, which range between 16 and 32 years. Those under 19 years of age were 16.18. The majority (70.38) of respondents from all three types of education fell between 20-25 years of age. Only 8.38 were 26 years or older. The majority of the students (868) had never married, and most of them (73.48) came from or lived in urban areas. 73 74 Table 4.1 Fregpency, Percentage and Typg of Education For the Research Sample Type of Education Frequency Percent Universities 342 33.1 IPA 313 30.3 Vocational inst 377 36.5 Total 1032 100.0 Table 4.2 Distribution of Resppndents' Age Respondents Age Frequency Percent J UNDER 19YR 166 16.1 20-25YR 725 70.3 26YR+ 86 8.3 Missing 55 5.3 Total 1032 100.0 75 Table 4.3 Students Estimated Family Annual Income Family Annual Income Frequency Percent LESS THAN $9999 180 17.4 310,000-319,999 322 31.2 320,000-534,999 287 27.8 335,000+ 217 21.0 Missing 26 2.5 Total 1032 100.0 Table 4.3 shows estimated annual family income for the students (converted from Saudi Riyal into American dollars at current price of $1=3.75 SR). This table indicates that 17.48 of the students came from low economic social status, and 218 from high SES, while 598 were in the combined middle categories. Although the Saudi middle class is new, those acquainted with the five-year development plans realize that it has two dimensions, as noted by Sultan (1988:195-6). The Saudi middle class is composed of both a traditional and a new middle class. (A) The new middle class consists mainly of three elements: senior employees in the oil industry, military officers, .76 and Saudi university graduates. (B) The traditional middle class is composed of two elements: groups such as shopkeepers, real estate brokers, artisans, small entrepreneurs, etc., and small business farmers. In this study, as shown in Table 4.3, lower class indicates an annual income of less than $10,000, middle class income ranges between $10,000 and $34,999, and upper class means ,annual income of $35,000 or more. However, these groupings are arbitrary and may not represent the actual annual incomes for the class structure in Saudi Arabia. Table 4.4 illustrates the educational background of the students' fathers. A limited number (58) of the fathers had a college degree. The majority (58.78) had no formal education; this fact coincides with the official statis- tics which indicate that about 528 of the Saudi male population are illiterate (see Sirageldin 1984:42). It is clear that those fathers who grew up in a time when the Saudi educational system was still in its infancy did not have the opportunities their children have. Although those fathers who have a high school or, at least, some education represent a total of 35.58, it is important to remember that their educational backgrounds were likely the product of the non-administrative educational system (before the 1960's) or the night school educational system, which provided.minimum learning. Therefore, we can conclude that 77 the level of father's education for the vast majority of students is low. Table 4.5.presents the types of occupations held by students' fathers and grandfathers. Here, we can trace the historical background for occupational development over the past two generations. The table presents two historical dimensions (father/grandfather) and five types of occupations, so that we can follow how the increase in skills and organized work changed from grandfather to father (we are assuming that most grandfathers were a product of old Saudi culture). A low percentage of grandfathers had skilled occupations (ranging from 1.78 to 4.78), while most (72.38) were employed in unskilled types of occupations. Most of the grandfathers were involved in unskilled occupations such as subsistence farming and animal herding, in contrast to the fathers who represent the second generation, most of whom have lived through the transformation of the Saudi economy over the past three decades, particularly the era of the oil bonanza from 1970 onward. The table illustrates noticeable increase in all types of occupations for fathers, except for the category of unskilled jobs, which decreased from 72.38 for grandfathers to 29.28 for fathers. This reflects the increase and development of the occupational structure over the past three decades, when the fathers' generation has 78 Table 4.4 Father's Education Background Level of Education Frequency Percent NO EDUCATION 606 58.7 ELEMENTARY-INTERMEDIATE 281 27.2 HIGH SCHOOL 86 8.3 COLLEGE EDU 51 4.9 Missing 8 .8 Total 1032 100.0 Table 4.5 Grandfather's & Father's Occupation Type of Occupation Grandfather's Father's Freq Percent Frequency Percent Professionals 18 1.7 174 16.9 Manager & Official 29 2.8 180 17.4 Clerks 30 2.9 216 20.9 Skilled workers 49 4.7 62 6.0 Unskilled workers 746 72.3 301 29.2 Missing 160 15.5 99 9.6 Total 1032 100.0 1032 100.0 79 become more involved in organized work and professions that are mostly associated with modern economic activities. This finding, therefore, parallels statements in the literature (see Chapter II) about the development of work and occupations in the Saudi laborwmarket. This ongoing process of occupational development in Saudi Arabia will be encountered and better understood by the younger generation, and might foster a new and more positive perception toward manual work, in particular, and work, in general, among young Saudis. Table 4.6 illustrates past work experience of students. The table shows that 45.48 of students held a job in the past, but we should take careful notice that these jobs were most likely part-time or summer jobs, and that only a small portion were steady jobs. As indicated 53.78 had never held a job in their life. When asked the number of job(s) ever held, almost half of those who had a job had one job only. In addition, the majority of those who had jobs (71.08) were employed in the private sector, indicating that some students are exposed to work activity in the private sector. 80 Table 4.6 Resppndents Who had Job in the Past Have you work before Frequency Percent Yes 460 45.4 No 554 53.7 Missing 18 1.7 Total 1032 100.0 Table 4.7 indicates the community background of grandfathers and students, showing that only 18.88 of grandfathers lived in an urban area, while the remaining 80.28 lived in a rural area or were unsettled nomads. On the other hand, there has been a tremendous increase in the number of students (73.48) presently living in urban areas. This large statistical shift reflects the urban transformations that have occurred in Saudi Arabia since 81 Table 4.7 Grandfather's & Students Urban-Rural Background Urban Rural Grandfather's Students Background Freq Percent Freq Percent Large city 194 18.8 758 73.4 Small town 337 32.7 186 18.0 Village/Hejrah 413 40.0 75 7.3 Unsettled Nomad 78 7.6 Missing 10 1.0 13 1.3 Total 1032 100.0 1032 100.0 1970 as part of the modernization of Saudi traditional life (see Sirageldin et.al.1984:3-4). These changes ultimately affect not only society as a whole but also the attitudes of individuals (Inkeles 1977). Table 4.8 gives the family size of students. Only 2.78 of families are of two people or less, while the vast majority consist of at least three people, with almost 808 of Saudi students having family size of six people or more. This great proportion of large families indicates to us 82 that the Saudi family structure is an extended type, reflecting the image of the traditional family. The family structure in Saudi Arabia is the patriarchal extended family in which authority is strongly held by the eldest male (most likely the father) who ultimately has the final word in all family decisions, and in many cases controls offspring's future, where they live, who they may marry, and even the type of occupation they may have. Within this Saudi extended patriarchal family, women live in seclusion, usually concerned with the home and childbearing. Within this context, choice of occupation by Saudi students may fall between two antagonistic forces: on one hand, the Table 4.8 Family Size of Students Family Size Frequency Percent 1-2 PERSONS 28 2.7 3-5 PERSONS 180 17.4 6+ PERSONS 820 79.5 Missing 4 .4 Total 1032 100.0 83 influence of the traditional family, on the other, the influence of industrialization and modernity. Table 4.9 demonstrates previous work experience in both private and public sectors by members of the students' families. Overwhelmingly the occupational setting in Saudi Arabia is male-oriented. Sex segregation in all social spheres means that women's participation is severely .limited to only segregated work in the public sector, especially in the field of segregated female education. Public sector ‘work. by' mothers (older' generation) and sisters (younger generation) was only 2.58 and 20.68, respectively. Female participation in the private sector was almost non-existent. This sharp sexual segregation is one of the most fundamental causes of shortages in the Saudi labor force, since it means that the society as a whole is keeping almost fifty percent of its members captive behind doors. As the table shows, male participa- tion in the work force is more likely to be in the public sector than in the private; fathers were 40.88 and brothers 53.88 in the public sector, while work in the private sector for both fathers and brothers was about 308 for each. These figures indicate to us that work in the public sector is much more favored among family members than the work in the private sector, but they also can illustrate that the younger generations could be more motivated to Table 4.9 84 Students family members previous work in . Public and private Sectors Sectors Father's Mother's Sister(s) Brother(s) Freq 8 Freq 8 Freq 8 Freq 8 Public 415 40.2 26 2.5 213 20.6 550 53.3 Private 324 31.4 00 0.0 11 1.1 301 29.2 Missing 293 28.4 181 17.5 or not- working 1006 97.5 808 78.3 Total 1032 100. 1032 100. 1032 100. 1032 100. work in the private sector since a fair percentage of family members either work in or are associated with work in the private sector. Table 4.10 illustrates the sources of information students have when they start looking for a job in either sector. In the private sector the most reliable method to look for a job is through friends and family connections: almost 508 of respondents relied upon this method. The Office of Labor was considered the best way by 24.68, although that office mainly deals with foreign workers. in September 1989, the Council of Labor Recently, however, Force in Saudi Arabia opened an office concerned with Saudi 85 nationals in the labor force, with the mandate to play the role of a mediator and bridge the gap between the indigenous labor force and private sector institutions, by providing all necessary information needed by both parties. This office will remain under the supervision of the Ministry of Work and Social Affairs. This is an example of how, in the beginning of the development plans, Saudi economists and planners ignored an important aspect of the issue of Saudization. However, in the future, we can expect more reliance on offices such as these. In the case of the public sector, the majority of respondents (63.58) saw the office of Civil Service Bureau as the most reliable method to look for job. A smaller 24.88 of respondents thought friends and family connections were a very reliable method. However, we should emphasize the role of family and kin ties in Saudi traditional society as an important source of information. When we look to the schools as a source of information for finding a job, we find that in both sectors it is very limited: 2.28 in the private sector, and 1.38 in the public sector. These percentages unveil the lack of coordination between educational institutions and work organizations, and indicates the limited responsibility assumed by educational institutions for finding jobs for their graduates. In fact, during the data collection, we observed that only KFUPM had an.organized office for employment of students after gradua— 86 tion; it could. be easily' noticed, by' the numerous and different leaflets distributed in all KFUPM buildings concerning job openings in various private sector institutions. We strongly believe that offices such as these can be utilized, not only to facilitate job finding in the private sector, but also as a coordinating tool, Table 4.10 Most megrtant Source of InfOrmation to Look for Job in both sectors Source Private Sector Public Sector Freq Percent Freq Percent school 23 2.2 13 1.3 Friends & relatives 505 48.9 256 24.8 Office of labor and 254 24.6 Civil service bureau 655 63.5 Media 172 16.7 63 6.1 Self search 61 5.9 28 2.7 Missing 17 1.6 17 1.6 Total 1032 100.0 1032 100.0 87 connecting market needs with the necessary areas of education which are more needed. However, irrespective of the sources of information, there is no guarantee than being informed about a job will mean acquisition of it. Family connections is an important determinant of who actually gets a job. The media as a source of information was indicated by only a small percentage of respondents: only 16.78 in the private sector and 6.18 in the public sector. The media are supposedly an influential tool for connecting work institutions to the public domain. However, from the point view of the researcher, the Saudi media are like the ostrich hiding its head in the sand, and do not confront the issue openly on a scientific basis. For example, employment ads in Saudi newspapers are more likely to demand certain conditions and guali ties (such as many years experience, good level of education, speak English well ...etc.) which are hard to find among Saudi nationals. Table 4.11 shows the relationship between social economic status and types of education. The majority of students (64.58) came from middle income families. It is evident from the data in this table that there is a direct relationship between SES and type of education. That 43.48 of the respondents of high SE5 were university students indicates that the majority of high 535 preferred the 88 higher type of education; on the other hand, the majority of low SES (44.28) preferred vocational institutions. Those of middle SES had an almost even distribution between universities and IPA, while 38.28 of the middle SES chose vocational institutions. Generally speaking, among all types of education, the vocational institutions were preferred by the highest proportion of students (36.58), which is another sign toward the development of acceptance of occupations of all kinds. Table 4.11 The distributions of Students and their level of social economic status Students Social Economic Status (SES) Row Total Low Mid High universities 28 212 102 342 21.4 31.8 43.4 33.1 IPA 45 200 68 313 34.4 30.0 28.9 30.3 vocational 58 254 65 377 Institutions 44.2 38.2 27.7 36.5 Column 131 666 235 1032 Total 12.7 64.5 22.8 100.0 89 Table 4.12 indicates the frequencies for the variable of Saudi students' perceptions toward Saudization of the private sector. There were six items asked of all respondents, as shown in the table, and we have collapsed the Likert scale from five to three values because we are more interested in the agreement or disagreement of students toward Saudization. The table contains many cells, therefore to avoid repetition, we have calculated the weighted mean of all respondents in all columns; in this way we can summarize all results in one single row. This technique has been applied to Tables 4.12 through 4.16. As an indication of the reliability of these multi- item measures, the alpha level for all measures in these tables range between a minimum a=0.52 and a maximum 080.82. we think these levels are acceptable. With alpha values of a-0.60 and above we feel comfortable, while with those below this value we should be cautious in interpreting results. we can generalize from this table that the majority of all respondents (78.88) were in favor of Saudization, while only 17.18 disagreed with the issue of Saudization. Our assumption concerning this latter group is that those who are not in favor of Saudization may be benefiting from the use of foreign labor, whether in a direct way through their families' businesses in the,private,sector'or*in some 90 Table 4.12 Freggencies for the variable of Saudi Students' Perceptions Toward Saudization of the Private Sector Items Agree Neutral Disagree Missing Freq Freq 8 Freq 8 Freq 8 All Foreign workers in the private sector should be replaced by Saudis. 881 85.4 82 7.9 63 6.1 .6 Although the foreign work- ers get low wages, the government should impose more restrictions on impo- rting foreign workers. 836 81.0 97 9.4 89 8.6 10 1.0 The private sector hiring policies can be seen as an obstacle to the Saudizat- ion process 669 64.8 220 21.3 123 11.9 20 1.9 The government should adopt strong laws or proc- edures to speed up the Saudization policy. 878 85.1 84 8.1 55 5.3 15 1.5 The private sector should take the initiative tow- ard implementing Saudiz- ation policy 922 89.3 58 5.6 34 3.3 18 1.7 I would prefer a job where I would work only with other Saudis. 566 54.8 169 16.4 291 28.2 Weighted Mean=l(f x 8 )/ I frq 78.8 14.1 17.1 1.4 . The above items are from section II in the questionnaire (5, 6, 9, 10, 11, 23) respectively. . N=1032 . a (Alpha reliability test)=.71 91 indirect way. Overall, however, it is clear that the overwhelming majority of Saudi students are in favor of Saudization. In fact, when questions on the issue of foreign labor and Saudization (such as items 1,2,4,5) are included in Table 4.12, the vast majority of respondents, 85.38 (weighted mean for these items), are in favor of Saudization. Table 4.13 presents frequencies for the variable of Saudi students' perceptions toward fulfilling their work needs in the private sector. It shows that almost 508 think that the private sector can fulfill work needs, against only 25.58 who think otherwise. This tells us that, regardless of the lack of work experience in the private sector by students, a good proportion of the subjects can see fulfilling work needs in the private sector, which possibly indicates a strong commitment toward work, in general, and toward work in the private sector, in particular. Since, the reliability test here is the highest among all variables, alpha «£0.82, this appears to be a reliable indication that a substantial proportion of indigenous labor is willing to work in the private sector. It contradicts generally held ideas among private sector owners that students hold negative attitudes toward work in the private sector and are unwilling to work. 92 Table 4.13 Fregpencies for Variable of Saudi Students Perceptions Toward Fulfilling Work Need in the Private Sector Items Agree Neutral Disagree Missing Freq 8 Freq 8 Freq 8 Freq 8 Work in the private sector 443 42.9 308 29.8 269 26.1 fulfills my need financi- ally more so than work in the public sector. 12 1.2 Work in the private sector 403 39.0 300 29.1 312 30.2 fulfills my need emotion- ally more so than work in the public sector. 17 1.6 Work in the private sector 558 54.1 258 25.0 206 19.9 would give me opportunity to learn and practice my skills. 10 1.0 I am eager to learn more 419 40.5 295 28.6 304 29.5 skills and knowledge, and, for this reason, the priv- ate sector is the right place for me. 14 1.4 The private sector offers 608 58.9 298 28.9 113 10.9 one a chance to put own ideas into operation. 13 1.3 Weighted Mean=I(f x 8 )/ 48.4 28.4 25.5 I frq 1.3 . The above items are from section II in the questionnaire (24, 25, 26, 27,35) respectively. . N=1032 . 0 (Alpha reliability test)=.82 93 Table 4.14 presents frequencies for the variable of Saudi students' perceptions regarding traditional views of work. It shows that 37.68 of the students agreed with the items included in the table, while a slightly higher proportion (39.08) were in disagreement. We can speculate that the younger Saudi generation holds less traditional values than their families, who lived most of their lives by more restrictive traditions' more specifically, the younger Saudi generation, represented by these students who are going to graduate this year, may have different attitudes toward occupations that used to be rejected by the older generation. However, the distribution of responses to item 3, reporting the students' own views about unacceptables occupations, is almost identical to item 2 in which they report their perception of their families' views on this issue. It is possible that the social changes occurring in Saudi society have affected both the younger generation's opinion toward work and that of their families. We believe that the rate of change is likely to increase in the coming years, with the result that the degradation of some occupations and manual work, which used to be the case among the older generation, will decrease and.be replaced.by:new'values among younger Saudis (see Khon 1989). It seems likely that the positive response toward manual work in item 4, with 51.28 accepting manual 94 work, is higher than it would have been in the past. Our data, however, do not provide evidence about this change. Table 4.15 presents frequencies for the variable of Saudi students' perception of correspondence of their skills and knowledge with private sector jobs. It shows that the overall weighted mean is high (60.28) indicating agreement by most students that the education and training programs provide them with adequate knowledge and skills to get a job in the private sector. However, we should mention that most of these programs, as well as the educational system, are designed for public sector jobs. Although in some cases both private and public sector jobs are quite similar, we hold that the Saudi educational system, as well as the training programs of vocational institutions, has to be revised and modified to meet the new demand for skills in private sector organizations. In this regard, it should be noted that two-fifths of the students did not agree that they were well-prepared to enter the private sector. 95 Table 4.14 Fregpencies for Variable of Saudi Students Perceptions for Traditional Views of Work in the Private Sector Items Agree Neutral Disagree Missing Freq Freq 8 Freq 8 Freq 8 My family strongly disap- proves of some types of occupation. 348 33.7 284 27.5 371 36.0 29 2 The following occupations such as carpenter, smith, butcher, tanner are not acceptable by my family. 432 41.9 242 23.4 349 33.8 Even if I have difficulty finding a job, the follo- wing occupations such as carpenter, smith, butcher, tanner are not acceptable to me. 446 43.2 257 24.9 320 31.0 .9 I would not want a job that requires manual work. 281 27.2 206 20.0 528 51.2 17 1 .6 Quite a number of things about manual work annoy me. 384 37.2 256 24.8 380 36.8 12 1 .2 Weighted Mean=!(f x 8 )/ I frq 37.6 24.4 39.0 l .8 . The above items are from section II in the questionnaire 15, 21, 40) respectively. . M=1032 . a (Alpha reliability test)=.57 (4. 14. Private Sector Jobs 96 Table 4.15 Fregpencies for Variable of Saudi Studepts Corresppndence of Skills and Knowledge with Items Agree Neutral Disagree Missing Freq Freq Freq 8 Freq g The education and/or the training program I am in now gives me enough skills and knowledge to get a job in the private sector. 727 70.5 221 21.4 67 6.5 17 1.6 My education or training program will provide me with more opportunity to get a job in the private sector than in the public sector. 451 43.7 349 33.8 209 20.3 23 2.2 Weighted Mean=I(f X 8 )/ I frq 60.2 29.0 17.0 1.9 . The above items are from section II respectively. . N=1032 . 0 (Alpha reliability test)=.52 in the questionnaire (16, 17) 97 Table 4.16 presents frequencies for the variable of Saudi students' attitudes toward work in the private sector. It shows that there»is an almost equal distribution Zbetween agree and disagree (the weighted mean shows 44.08 and 44.38, respectively). In item 1, 42.38 agreed to wanting work in the private sector, against 26.08 who disagreed, showing an overall positive response toward work in the private sector. The second item shows that most of the students (66.08) took into account the social image of the job position, preferring a high status job; such positions provide individuals with more power and access that can be used or manipulated in one way or another for the individual's benefit (Kohn 1989). The proportions on item 3 reflect the differences in work benefits expected in the two sectors. The students favored the public sector at 44.38; this preference can be explained by the stability of work, job security, and the clear payroll system in the public sector. We emphasize the point that the private sector must have some system equivalent to that in the public sector. In response to item 5, 66.28 thought that advantages and disadvantages were not the same in both sectors: many thought that the public sector has more advantages than the private sector, according to responses to the last item on the table. 98 Table 4.16 Freggencies for Variable of Saudi Students Attitudes Toward Work in the Private Sector Items Agree Neutral Disagree Missing Freq Freq 8 Freq 8 Freq 8 I would especially like to work in the private sector. 437 42.3 319 30.9 268 26.0 .8 I would be willing to work in the private sector but only in a high status job. 681 66.0 174 16.9 149 14.4 28 2.7 To me, there is no diffe- rence in working in either the private or public sectors. 397 38.5 160 15.5 457 44.3 18 1.7 I would believe that sati- sfaction in my life comes from my future job in the private sector. 294 28.5 358 34.7 367 35.6 13 1.3 The advantages and disad- vantages of work in the private and public sectors balance each other. 101 9.8 238 23.1 683 66.2 10 1.0 There are many more disad- vantages than advantages in the public sector. 292 28.3 328 31.7 397 38.5 15 1.5 Weighted Mean=2(f x 8 )/ I frq 44.0 27.6 44.3 1.8 . The above items are from section II 20, 28, 36, 37) respectively. . N=1032 . c (Alpha reliability test)=.62 in the questionnaire (1, 2, 99 Table 4.17 shows frequencies for items concerning students' opinions toward aspects of work if they worked in the private sector. The table indicates that there is a general preference among students for office-relatedwwork (63.78) over non-office-related work (36.38). This preponderant preference for office-related work is probably the result of a general feeling among people that the nature of organized work is more like that of the office. Also many think office work is more comfortable than non- office work; this is of particular concern in a country with a hot climate, like Saudi Arabia. The second item on Table 4.17 concerns preference for work in either small or large organizations. The vast majority of students (93.38) preferred large organizations. This almost universal preference in Saudi Arabia may result from the economic setbacks of the mid-1980's that resulted in the death of many small organizations, leading many to believe that small economic organizations do not have the ability and capacity to survive that large organizations do. The third item on Table 4.17 was about preference for work in either urban or rural areas. Overwhelmingly, the majority of students (83.88) preferred work in urban areas. This result is not unexpected since the development of industries and work activities has been heavily concentr- 100 Table 4.17 Fregpencies for items concerning students op'pions if they work in the private sector Items Type of education Total Would you like to work in: universities vocational students students* Office related work 195 446 641 58.4 66.4 63.7 Non-office related work 139 226 365 41.6 33.6 36.3 Column total 334 672 1006 33.2 66.8 100. Large organization 306 630 936 91.6 94.2 93.3 Small Organization 28 39 67 8.4 5.8 6.7 Column total 334 669 1003 33.3 66.7 100 Urban area 277 569 846 82.4 84.5 83.8 Rural area 59 104 163 17.6 15.5 13.9 Column total 336 673 1009 33.3 66.7 100. * IPA students are included with vocational students. 101 ated in urban centers, leading to the availability of facilities that provide the amenities of life seldom available in rural areas. Table 4.18 presents frequencies for items concerning a student's choice between jobs in the same occupation but in different sectors. The table includes seven items offering seven different incentives. Our aim here was to understand students‘ choices between the two major economic sectors when such important incentives had been introduced. The first item asks for preference of work by sector when the private sector offers more pay. Most students (64.28) chose higher paying jobs in the private sector, while 35.88 chose less pay in the public sector. We would like to add that the absence of standardized payrolls among private sector organizations is a serious problem, and this lack in the private sector makes it more difficult for some students to accept work in the private sector. We believe that preference for work in public sector organizations is influenced by the existence of the payroll system in public sector organizations. The second item in this table, asks for preference between jobs with the same pay in both sectors but located in different areas (hometown vs other area). The table shows that 62.58 preferred jobs in the private sector in 102 the student's hometown versus 37.58 who preferred jobs in different towns. The third item in. Table 4.18 deals with sector preference assuming different opportunity for promotion in the two sectors. The table shows that 67.98 of the students preferred the high chance of promotion, even if it is in the private sector. A third of the students, however, preferred public sector employment even.withLa low chance of promotion. In general, students appear to prefer work environments with the possibility for upward mobility. The fourth item explores the preference for jobs in both sectors with emphasis on differences in job security. The greater proportion (89.98) of students preferred job security, even if it meant employment in the private sector. In fact, the issue of job security appeared to be an important aspect of job characteristics. This was also reflected heavily in the last question of the study instrument. In response. to question number 52 the majority of answers concentrated on the issue of security. It also was ranked as first choice among the six items in question.49 ‘which asked for a ranking of importance of job aspects. The fifth item offered a choice between a difficult but interesting job in the private sector versus an easy choice between jobs in the same occupations 103 Table 4.18 Fregpencies for items concerning students Type of education Total Items economic univ voc't sector students students choice of two jobs private 247 406 653 one in private sect- 73.5 59.6 64.2 or pays more, other in public sect pays public 89 275 364 less. 26.5 40.4 35.8 total 336 681 1017 33.0 67.0 100. choice of two jobs private 224 412 636 has the same pays, 66.7 60.5 62.5 one in private sec- tor in home town, public 112 269 381 other in public 33.3 39.5 37.5 sector in other area. total 336 681 1017 33.0 67.0 100. choice of two jobs, private 225 437 692 one in private sec- 75.7 64.1 67.9 tor and high chance of promotion, other public 82 245 327 in public sector 24.3 35.9 32.1 with low chance of promotion. total 337 682 1019 33.1 66.9 100. choice between two private 314 604 918 jobs, one somewhat 92.9 88.4 89.9 secure in public sector, other one public 24 79 103 even more secure 7.1 11.6 10.1 in private sector. total 338 683 1021 33.1 66.9 100. "Table 4.18 (Cont'd.). 104 choice between two private 271 477 748 jobs, one difficult 80.4 70.3 73.6 but interesting in the private sector, public 66 202 268 other, easy but less 19.6 29.7 26.4 interesting in the public sector. total 337 679 1016 33.2 66.8 100. in your opinion private 198 295 493 which sector provide 60.6 44.2 49.5 more incentives. public 129 373 502 39.4 55.8 50.5 total 327 66 995 32.9 67. 100. If you took a job oil & 172 29 465 in the private petro- 51.3 43. 45.7 sector what indu- chim stry would you prefer. Saudia 85 31 404 airline 25.4 46. 39.7 other co 78 7 148 23.3 10. 14.6 total 335 68 101 32.9 67. 100 105 but less interesting job in the public sector. The table shows that 73.68 of the students favored the job in the private sector regardless of its difficulty. This result sends a clear message to those private sector owners who think Saudi youth are not willing to tolerate job difficulties in the private sector. It also indicates the importance of interesting work. Item six tapped students' opinions on incentives in both sectors, and shows an almost equal assessment of incentives in the two sectors: 49.58 for the private sector versus 50.58 for the public sector. The stability of standardized payrolls, promotions, benefits and fringes among public sector organizations make them more reliable, leading some students to favor the public sector over the private sector. Nonetheless, it is also probably true that the majority of large organizations in the private sector provide better pay and training opportunities when contrasted with public sector organizations. The last item in Table 4.18 shows students' preferences for particular industries within the private sector. Oil and petro-chemical industries were the most favored at 45.78, while 39.78 favored Saudi Airline, and only 14.68 who favored other industries (such as banking, agricultural companies, manufacturing companies, and 106 service and transportation. companies). The strong preference for the Saudi airline can stem from several reasons. While it functions as a private sector organization in term of payrolls, incentives, training programs, and even the nature of work, this organization also provides jobs and incentives that are rarely found except among other large organizations in the private sector (such as ARAMCO or SABIC). It is also more directly related to the public domain by providing services that no other organization can compete with, especially in the Saudi local market. For those who would like to travel in or out of the country, the Saudi airline can become a first priority, therefore, individuals working for this company are sought after by others for help in obtaining hard-to- get reservations; airline employees form more connections with other people who may provide return services or personal help; and, finally, the airline ‘provides to employees super discount fare tickets to worldwide destinations. Such incentives attract many young Saudis. Section 2: Testing of the Hypotheses This section examines the proposed hypotheses, each of which represents some type of relationship between the principal variables of this study. Two different statistical tools are adopted for testing the hypotheses. The first nine hypotheses are examined by applying correlation coefficients. The last three hypotheses are examined by testing for significance of difference of means by adopting one-way analysis of variance. The correlation coefficient tells two things about the relationship between two variables: (1) whether the direction of the relationship is positive or negative, and (2) the magnitude of the correlation, representing the strength of relationship between the two variables. Hypothegis ;. If Saudi students believe that private sector employment requires skills and knowledge that they do not have, they will be less likely to make plans for entering the private sector. Table 4.19 shows the correlation coefficient between students' perception of the correspondence of their skills and knowledge and students' attitudes toward work in the private sector. It is evident from the data in this table 107 108 that there is a positive relationship between the two variables, r=.2834 with a significant p-value (p (.001). The data support the hypothesis that students will not plan to enter private sector employment if they believe they do not have the skills and knowledge required in that sector. Because, the Alpha for this measure is only .52, this result should be interpreted with caution. Hypothesis 2. In the opinion of Saudi students, the enact- ment of more laws and procedures for the rights and protection of workers would increase the likelihood that they would seek work in the private sector. Table 4.19 shows the correlation coefficient between the view that the government should enact more laws and procedures for the rights and protection of workers in the private sector and students' attitudes toward work in the private sector. The table indicates a negative and weak relationship between the two variables, r= -.0362 with no significant statistical relationship (p=0.122). The result of this analysis indicates that we should reject the above hypothesis: the enactment of more laws and procedures for the rights and protection of workers would not affect students' attitudes toward work in the private sector. 1-11 2-11 1-10 4'1! 5-11 0-10 1-10 0°11 9-10 10-00 11'?! 12-12 1°11 1.0000 2'00 .2014 1-11 '.0101 1 1012) 1 10291 1 1012) P= . 0= .000 1.0000 1 1029) P: . P: .122 -.0011 1 1029) P: .451 1.0000 1 1012) 9: . 4-10 -.0004 1 1014) P: .419 .1004 ' 1 1021) 0= .001 -.0101 1 1014) 1: .111 1.0000 1 1024) P: . l.()£1 Table 4.19 Pearson Correlation Cogffiicientg Betweep Major Vagiableg 5-11 .0005 1 1012) P: .494 .0011 1 1029) p: .195 .0214 1 1012) P= .210 .0411 1 1024) P= .005 1.0000 1 1012) P= . 0-10 .0159 1 911) P= .010 .0421 1 910) P= .091 .0401 1 911) P= .110 .1194 1 H" 0= .000 .0191 1 911) = .111 1.0000 1 911) P: . 1-15 .0001 1 1021) P: .490 -.0110 1 1025) P= .105 .0500 1 1020) P= .014 -.0201 1 1012) P: .201 -.0120 1 1021) = .140 .0029 1 910) P= .404 1.0000 1 1020) 1: . 1-11 -.0401 1 1000) 1: .012 .0142 11“” p: .009 .0201 1 1000) P: .204 .2114 1 999) P= .000 .1140 11“” P: .000 .1151 1 909) h.” .0410 1 1002) 1: .001 1.0000 1 1000) Pt . 9'10 -.0410 1 1011) P: .004 .0519 1 1021) P= .012 .0295 1 1021) P: .111 .0014 1 1010) 08 .025 .1101 1 1012) P= .000 .0545 1 ”fl 0: .049 -.0004 1 1019) 28 .195 .1519 1 990) For Testing Some of The Study Hypptheses. 10-88 -.0012 1 1012) 0: .015 .0000 1 1029) 0= .005 -.0110 1 1011) P= .111 .5051 1 1024) 0= .000 .1119 1 1012) P= .000 .1104 1 M” 0* .000 .0051 1 1020) 0: .411 .1294 11““ be” h.” 1.0000 1 1021) P= . .0909 1 1021) p: .001 1.0000 1 1012) P: . 11-01 .5004 1 1012) 0= .000 .1011 1 1029) P= .000 -.0912 1 10111 P: .001 .0521 1 1024) I: .040 .0924 1 1012) P: .001 .0000 1 9111 0= .012 -.0145 1 1020) '30“. .1110 1 10001 0: .000 .0551 1 1021) 0= .019 .0101 1 1012) P= .012 1.0000 1 1011) P= . 12-12 -.0159 1 1011) P: .125 .0125 1 10291 P= .149 .4100 1 1012) P= .000 -.0955 1 1024) P: .001 -.0040 1 10111 P= .449 .0101 1 911) P= .112 .0141 1 1020) 0: .000 -.0252 1 1000) P: .211 -.0124 1 1021) P: .140 -.0001 1 1012) P= .005 -.0555 1 1012) 0= .011 1.0000 1 mm 1': . 110 "Table 4.19 (Cont'd.)." l-AT 8 Students' attitudes toward work in private sector. 2-SK = Students' perception of correspondence of skills and knowledge with private sector jobs. 3-LW 8 View that there should be enactment of more laws and procedures in the private sector. = Students' fathers' educational level. 5-TR - Traditional views of work. 6-F0 = Students' fathers' occupational level. 7-FS = Students' family size. 8-FI 8 Students' family estimated annual income. 9-LO - Students' acceptance of low status occupations. 10-SS= Students' socioeconomic status. 11-FF= Perception of extent to which private sector employment fulfill work needs. 12-AZ= Attitude toward Saudization in the private sector. 4-FE N= 1032 Bold-faced print indicates significance at s .05 *********************************************************t Hypotheses 3, 4, and 5 are about the relationship between attitudes toward work in the private sector and socioeconomic status (father's education, family income, and father's occupation). Hypothesis 3. Saudi students whose fathers have a higher level of education are less likely to have negative views toward work in the private sector. Table 4.19 shows the correlation coefficient between students' fathers' level of education and students' attitudes toward work in the private sector. It is evident 111 that there is no relationship between the two variables, r=- -.0064 with no significant statistical relationship (p=0.419). The results do not support the above hypothesis that the higher the students' fathers' educational level, the more likely they have negative views toward work in the private sector. Hypothesis 4. The higher the family income, the more negative will be the students' attitudes toward private sector employment. Table 4.19 shows the correlation coefficient between students' family income and students' attitudes toward the private sector employment. The table reveals a negative relationship between the two variables, r=-.0461 but no significant statistical relationship (p=.072). The data do not support the hypothesis. Hypothesis 5. Saudi students whose fathers have a higher occupational status are less likely to have negative views toward work in the private sector. Table 4.19 shows the correlation coefficient between students' fathers' occupational Status and students' 112 attitudes toward work in the private sector. It is evident from the data in this table that there is a weak, positive relationship between the two variables, r= .0759 that is statistically significant (p ( .010). The data support the hypothesis, and suggest that Saudi students from higher status families are more willing to work in the private SBCtOI‘ . Hypothesis 6. Saudi students who have a large family are less likely to hold negative views toward work in the private sector. As indicated in Table 4.19, the correlation coefficient between students' family size and their attitudes toward work in the private sector shows that there is a weak positive relationship between the two variables, r-.0003 with no significant relationship (p=.496). The data do not support the hypothesis regarding family size and attitudes toward work in the private sector. Hypothesis 7. Saudi students are less willing to accept private sector employment if they hold traditional views regarding acceptability of occupations. 113 Table 4.19 shows the correlation coefficient between Saudi students holding traditional views regarding acceptability of occupations and their attitudes toward work in the private sector. The table indicates a nonsignificant, negative relationship between the two variables r=-.0476, (p=.064). The data indicate that the Saudi students may be willing to accept work in the private sector even if they hold traditional views such as those held by the gabeeli stratum regarding acceptability of occupations. This is positive evidence regarding Saudization since it suggests a willingness to accept occupations that had been traditionally viewed as low status. Because the Alpha level for this scale is only .57, these result should be interpreted with caution. Hypothesis 8. Saudi students who perceive that private sector employment will fulfill work needs are more likely to seek jobs in the private sector. Table 4.19 shows the correlation coefficient between students' perception of extent to which private sector employment fulfills work needs and their attitudes toward 114 work in the private sector. It is evident from the data in this table that there is a positive relationship between the two variables, r=.5464 that is statistically significant (p < .001). The data support the hypothesis, and suggest that students are willing to enter the private sector if jobs there fulfill work needs. This appears to be positive evidence regarding Saudization of the private sector so long as jobs in that sector satisfy work-related needs. Hypothesis 9. The greater the importance Saudi students attach to Saudization of the private sector, the more favorable will be their attitudes toward employment in the private sector. Table 4.19 shows the correlation coefficient between Saudization of the private sector and their attitudes toward work in the private sector. The table indicates a nonsignificant, negative relationship between the two variables r=-.0359 (p=.125). The results.do not support the above hypothesis, therefore, we should reject this hypothesis. 115 For the next three hypotheses we have used the one-way analysis of variance technique. The reason we have done so is that these hypotheses involve non-metric independent variables. Analysis of variance is a statistical test of the difference of means for two or more groups. Hypothesis 10. Students whose fathers are or have been employed in the public sector will have more negative attitudes toward private sector employment. Table 4.20 presents the results of one-way analysis of variance for the perceptions of students whose fathers worked or have worked in the public sector. The table shows a statistically significant difference among students whose fathers worked in the public sector. The proposed hypothesis indicates that students whose fathers' work in the public sector will have negative attitudes toward work in the private sector, meaning that they have been influenced by their fathers' work background. 116 Table 4.20: Summary table for one-way analysis of variance for fathers' employment in public sector with students' attitudes toward work in the private sector. Grp 1 284 2.1268 .8225 .0488 4.1200 .0428 Grp 2 292 2.2637 .7967 .0466 TOTAL 575 2.1962 .8117 .0338 Grp l= Students whose fathers' work in the public sect. Grp 2= Students whose fathers' work in the private sect. Hypothesis 11. University students have a stronger pref- erence for public sector employment, while vocational and IPA students have a stronger preference for private sector employment. Table 4.21 shows the preference of university students and vocational and IPA students for employment in the private sector. The data show no significant difference between the two groups regarding work in either sector (p=0.5078). Since university and vocational students do not differ in their preference between economic sectors, the result is a rejection of the proposed hypothesis. 117 Table 4.21. Summary table for one-way analysis of variance for university students and vocational students and their preference for jobs in the private sector. Grp 1 342 3.0001 .6200 .0335 .4389 .5078 Grp 2 690 2.9712 .6813 .0259 TOTAL 1032 2.9808 .6614 .0206 Grp 1- University students. Grp 2- Vocational and IPA students. Hypothesis 12. Saudi students who live in rural areas are more likely to prefer' to work in the public sector. Table 4.22 indicates that there is no effect of regional background on the student's preference regarding work in the private sector. The data show no significant difference between the two groups, meaning that students from rural or urban backgrounds do not differ in preferences between economic sectors. This is a positive indication toward Saudization since it could mean that rural students after graduation will look for jobs regardless of economic sector. Table 4.22. 118 Summary table for one-way analysis of variance for preference of students who came from rural areas for public sector jobs. GROUP N MEAN S.D S.E F P Grp I'm};"'STS;SS"TEEEZ"'TSSE3""'T3;IS"T;SSB" Grp 2 337 2.9817 .6497 .0354 TOTAL 1021 2.9739 .6553 .0205 Grp 1: Students from urban areas. Grp 2= Students from rural areas. Section 3: Regression Apalysis Pedhazur (l985:5) states that "regression analysis is a method of analyzing the variability of a dependent variable by resorting to information available on one or more independent variables." In the proposed models of the study, we will apply path analysis to the collective and separate effects of five independent variables on a dependent variable. All suggested models (I, II, and III) for this study share the same dependent variable (attitude toward work in the private sector), and they also share the same four intervening variables (attitude toward Saudization of the private sector, perception of extent to which private sector employment fulfills work needs, traditional views of work, and perception of correspondence of skills and knowledge with private sector jobs). Each has one major, different independent variable (social economic status, educational type, and urban and rural background). Our objective is to examine the expected changes in the dependent variable as a result ,of changes in the independent and intervening variables, by testing the model as a whole, simultaneously. The logical interpretation of the models is as follows: Independent ----- > Intervening ----- ) Dependent Variable Variable Variable 119 120 The idea behind this diagram is that an independent variable has an impact on an intervening variable which, in turn, has an impact on the dependent variable (the students' attitudes toward‘work in the private sector). The model diagrams show the path coefficients between these variables and significance level of the coefficients which indicates the strength of the relationships between pairs of variables. Each model presents the independent, intervening, and dependent variables from the left to the right. For example, model I started with the independent variable "students' social economic status" (1), four intervening variables [students' attitudes toward Saudization (2), perception of Saudi students toward employment in the private sector fulfilling work needs (3), traditional views of work in the private sector (4), and perception of correspondence of skills and knowledge with private sector jobs (5)], and the dependent variable "students' attitudes toward work in the private sector" (6). To avoid repetition of rewriting these variables, we think it is more appropriate to refer to these variables by using the assigned numbers (1) to (6). Figure I depicts a path diagram consisting of six variables and shows the direct and indirect relationships between the major variables. In order to calculate the path 121 coefficients for the model as a whole, we will apply multiple regression analysis. First, for the direct effect, we regressed the dependent variable (6) on the independent variable (1). Second, for the indirect effects we regressed (separately then collectively) the dependent variable (6) on the independent variable (1) taking into account all the intervening variables. The goal of this is simply to determine the path strengths among all variables. As indicated in the diagram, there are two different values shown above each path: the first one is the standardized 8 value or path coefficient and the second one is the significance level. By calculating the direct effect of variable (1) on variable (6) controlling for all intervening variables, we obtained B=-.O49 at P (.061 level of significance. The strength of the relation is weak‘and negative and indicates that there is no significant direct relationship between the two variables. When we regressed the dependent variable (6) and independent variable (1) via one or all intervening variables, we were actually looking for how much the intervening variable could explain variation within the dependent variable, which was explained before by the direct effect between the dependent and independent variables. 122 First, for the indirect effect of variable (1) on variable (6) via variable (2), we obtained 8= .004 at P=.894 for the path from (1) to (2) and also no significant relationship for the path from (2) to (6) (S=-.O41; P=.194). Here, the data show that, when introducing the intervening variable (student attitudes toward Saudization of the private sector), it appears there was no indirect relationship between the dependent and independent variables. Second, for the indirect effect of variable (1) on variable (6) via variable (3) we obtained E=-.049 at P (.061 level of significance for the path from (1) to (3), and S=.549 at P (.001 for the path from (3) to (6). This indicates that there~is no indirect effect.of socioeconomic status on attitude toward work in the private sector, but there was a strong direct effect between "perception of the extent to which private sector employment would fulfill work need and attitude toward work in the private sector" Third is the indirect effect of variable (1) on variable (6) via variable (4). Here, we obtained 8- .007 at the P (.831 level of significance for the path from (1) to 14) and E= -.003 and P=.922 for the path from (4) to (6), suggesting that there is no indirect effect between the independent and dependent variables via variable (4) (traditional views of work). 123 Fourth, it appears that there is no indirect effect of variable (1) on variable (6) via variable (5). For the path coefficient from SES to "perception of correspondence of skills and knowledge with private sector jobs" we obtained B= --.020 at P=.501, and from this variable to attitudes toward work in the private sector we obtained 8= .286 at P= .001 level of significance. This indicates that there is a direct effect of "perception of correspondence of skills and knowledge with private sector jobs" on attitude toward work in the private sector but no indirect effect of family SES. We can conclude from the data presented in figure I, that only two variables (3) and (5), "perception of extent tO‘which.private sector employment fulfills work.needs" and "perception of correspondence of skills and knowledge with private sector jobs," are involved in direct causal relations with attitudes toward private sector employment. However, the data indicates no causal relations between socioeconomic status of family origin and attitudes toward work in the private sector'nor between socioeconomic status and the rest of the variables. The analysis of Figure II, which depicts a path diagram of the independent variable ”educational type" and the main dependent variable "students' attitude toward work in the private sector" taking into account the effect of 124 FIGURE I Causal link between dependent variable (attitude toward work in the private sector on the independent variable (social economic status), controlling for intervening variables. Independent Intervening Dependent Variables Variables Variable Attitude toward saudizat L1 7.» ion of the private .004 sector (2) Outcome P=.894 -.041 (1) P=.194 -.049 Perception ,—) P=.061 of extent .549* ... Social to which P=.001 economic .007 P.S. empl- > Attitude status P=.831 L.) oyment fu- -.003 toward (SES) 1fi11 work P=.922 work in -.020 need (3) -—————_—> private P=.501 .286* sector , P=.001 Tradition- ‘_-————-> (6) ,_) a1 views of work(4) ‘ perception of corres- pondence of skills 1_) and knowl- edge with private sector jobs (5) -.049 P=.061 *. Significance at P s .05. 125 intervening variables separately as well as collectively as shown in the diagram paths. First, for the direct effect, we regressed the dependent variable (6) on the independent variable (1) taking into account all intervening variables for this path. We obtained 88.051 at P=.059, which indicates that the relationship between the two variables is positive but .weak, with no significant direct relationship between the two variables. Then we regressed the dependent variable (6) on the independent variable (1) taking into account the intervening variables separately as follows: First, for the indirect effect of variable (1) on variable (6) via variable (2), we obtained 8=-.017 at P=.596 for the path from (1) to (2), and no significant relationship for the path from (2) to (6) (8=-.039 at P=.223). This indicates that when introducing the intervening variable, student attitudes toward Saudization of the private sector, there was no indirect relationship between the dependent and independent variables. Second, for the indirect effect of variable (1) on variable (6) through variable (3), we obtained B=.060 at the P=.024 level of significance for the path from (1) to (3) and 88.554 at P (.001 for the path from (3) to (6). This indicates that there is an indirect effect of "educational type" on attitude toward work in the private 126 sector as a result of the intervening effect of perception of the extent to which private sector employment would fulfill work needs. Third, for the indirect effect of variable (1) on variable (6) using variable (4), we obtained =-.023 at P=.467 for the path from (1) to (4) and 8=-.005 at P=.865 for the path from (4) to (6), suggesting that there is no indirect effect. between the dependent and independent variables. Fourth, for the indirect effect of variable (1) on variable (6) controlling for the intervening variable (5), we obtained.:B=-.O26 at P=.038 for the path from (1) to (5) and also a significant relationship for the path from (5) to (6) with 88.284 at P (.001. Here, the data show that when introducing the intervening variable, perception of correspondence of skills and knowledge with private sector jobs, there is an indirect effect of "educational type" on attitude toward work in the private sector as a result of the effect of the independent variable on perception of correspondence of skills and knowledge with private sector jobs, which, in turn, affects attitudes toward private sector employment. We can conclude from data presented in figure II that there is a weak relationship between most variables, although two variables, ”perception of extent to which 127 .El!flfl&§.l¥£ Causal link between dependent variable (attitude toward work in the private sector on the independent variable (students educational type), controlling for intervening variables. Independent Variables Dependent Variable Intervening Variables (1) Educational TYPe .University .IPA .Vocational -.017 P=.596 ,,_) .060* P=.024 -.023 P=.467 1..) -.026* P=.038 —) .051 P=.059 Attitude toward saudizat ion of the private sector (2) Perception of extent to which P.S. empl- oyment fu- lfill work need (3) -.039 P=.223 ) .554* P=.001 3 Tradition- al views of work(4) Perception of Correspon- dence of skills and knowledge with priv- ate sector jobs (5) -.oos' P=.865 Outcome Attitude toward work in private sector (6) *. Significance at P s .05. 128 private sector employment fulfills work needs" and "perception of correspondence of skills and knowledge with private sector jobs,” are involved in indirect causal relations between "educational type" and "students' attitudes toward private sector employment." Figure III depicts the causal model for the same variables used for the previous figures, but with a different independent variable (urban and rural background). First, for the indirect effect of variable (1) on variable (6) through variable (2), we obtained B=.008 at P=.804 for the path from (1) to (2) and also no significant relationship for the path from (2) to (6) with 8=-.041 at P=.192. This indicates that when we inserted the intervening variable (student attitudes toward Saudization of the private sector) it appears that there was no indirect relationship between the dependent and independent variables. Second, for the indirect effect of variable (1) on variable (6) through variable (3), we obtained 88.028 at P=.029 for the path from (1) to (3) and 8:.546 at P (.001 for the path from (3) to (6). This indicates that there is an indirect effect of "urban and rural background" on attitude toward work in the private sector as a result of the intervening effect of ”perception of extent to which 129 private sector employment fulfills work needs." Third is the indirect effect of variable (1) on variable (6) through (4). Here, we obtained E=.008 at P=.798 for the path from (1) to (4) and E=-.OO2 at P=.948 for the path from (4) to (6), suggesting that there is no indirect effect. Fourth is the indirect effect of variable (1) on variable (6) via variable (5). Here we obtained S=.041 at P=.017 level of significance for the path from (1) to (4) and 82.288 at P (.001 for the path from (4) to (6), indicating that there is an indirect effect of "urban and rural background" on attitude toward work in the private sector' as. a result of the effect of the independent variable on perception of correspondence of skills and knowledge with private sector jobs and the effect of this variable on our dependent variable. Finally, for the direct effect of variable (1) on variable (6) controlling for all intervening variables, we obtained E=.036 at P=.175, suggesting that there is no direct effect between the independent and dependent variables, unless we introduce some of the intervening variables, in particular "the perception,of extent to which private sector employment fulfills work needs" and "perception of correspondence of skills and knowledge with private sector jobs." 130 Therefore, it is reasonable to conclude, from analysis of the regression equations 'which have been applied to all three models, that the variable of Saudi students' perceptions toward employment fulfilling work needs in the private sector had stronger direct and intervening effects in all the previous equations. Among all the variables included in the study, this one seems to have the greatest effect on attitudes toward work in the private sector. Students' perceptions that.their skills and knowledge'were appropriate for private sector jobs also had some effect. 131 JEIQEHQE_IJJL Causal link between dependent variable (attitude toward work in the private sector on the independent variable (urban and rural background, controlling for intervening variables. Independent Intervening Dependent Variables Variables Variable Attitude toward saudizat- _. 1..» ion of the private .008 sector (2) Outcome P=.804 -.041 (l) P=.192 .028* Perception ...—....) P=.029 of extent .546* Urban and to which P=.001 rural .008 P.S. empl- 3 Attitude background P=.798 1.) oyment fu- -.002 toward lfill work P=.948 work in .041* need (3) > private P=.017 .288* sector Tradition- ) (6) ,_) a1 views of work(4) Perception of Correspon- dence of skills and 1__> knowledge with priv- ate sector jobs (5) .036 P=.175 *. Significance at P s .05. V. SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS FOR FURTHER STUDY This study puts an emphasis on an important segment of Saudi society, those of the younger generation who will soon graduate and enter the realm of work. This group is a major human resource, and can be considered the future backbone of the newly-built economic sector in Saudi Arabia. This chapter presents the summary, conclusions based on the‘data findings, and recommendations for further research. SUMMARY This study has attempted to measure Saudi students' attitudes toward Saudization in the private sector and to determine what factors influence these attitudes. As mentioned earlier, Saudi students' attitudes and feelings toward work, in general, and the private sector, in particular, have been considered. In addition, the attitudes of students toward types of occupation, with emphasis on the role of Saudization, has been discussed. This study may have significant benefits for government organizations as well as for the private sector in Saudi 132 133 Arabia, such as the newly-built industrial base and modern commerce facilities which are desperate to utilize new resources and achieve the goals of the five-year development plans. Overall, the study challenges the ambiguous ideas afloat which hold that the younger generation lacks ambition, skills, and motivation for work, in general, and for the private sector, in particular. This study provides much better knowledge and understanding of how economic planners can rely upon indigenous human resources as an important factor in future economic polices, which are greatly needed in an economic setting like that of Saudi Arabia. This study can also be of help to the private sector as it tries to anticipate and ease the coming transitions in the Saudi labor market over the next few decades. 1 We treated Chapter I as an introduction to the study with emphasis on the statement of the problem. There, we thought it necessary to shed some light on the influx and utilization of petro-dollars during the past two decades, particularly the adoption of development programs that occurred in five-year sequences from 1970 onward. The decades of the 19703 and 19803 was a time of unusual change which brought Saudi society as a whole from a simpler life to a modern life engaged with new technology. As develop- 134 ment took place, the human factor appeared more and more to be an important issue among all these changes, particularly with the influx of migrant foreign labor from all over the world and the conflicts that it brought with it. Chapter II presented a review of the literature, relying on studies by Kohn and Schooler, and others such as Hall, Bendix, and Inkeles. It emphasized the occupational background in Saudi Arabia. We presented an historical overview of the Arabian Peninsula and discussed its role in world markets, especially the activities of merchants and how the area's strategic location provided routes connecting the Far East with the West. In addition, the religious prestige of having two holy cities added more weight to the area's importance for the Islamic world. Despite the harsh environmental setting of the Arabian Peninsula, and the absence of strong political government, these important factors provided inhabitants of the area with economic connections and activities throughout history, which in turn. generated ‘various occupational activities and skills. Therefore, before the discovery of oil and expansion of the modern economy, the area was well exposed to various types of occupations. Another important topic of the second chapter was change in the Saudi Arabian labor force. Again, we thought 135 it necessary to shed some light on the historical background of the labor market in Saudi Arabia but our aim was to focus on present Saudi labor market characteristics. Chapter III was devoted to the research methodology, including by the study area, target population, sampling procedure and data collection, major variables, measurement and scaling, and the study questionnaire. The study area consisted of three types of educational institutions: universities, the Institute of Public Administration, and vocational institutions. A total of 1215 male students were chosen from those institutions. The 1032 students who responded to the study instrument were seniors and ready to graduate this academic year 1989/90. Two methods of selection were applied: the stratified random sample method of selection. was applied. to university students, and cluster sampling technique was applied to IPA and vocational institutions. A self-administered questionnaire used as the study instrument was composed of a total of 77 questions designated into two sections” The primary section, composed of 25 general questions, obtained personal information. about. each. student's ‘history' and social setting; the second section consisted of 52 statements intended. to explore the student‘s attitude toward work, in general, and the private sector, in particular. The study instrument was translated from the 136 original English version to an Arabic version. In addition, this chapter presented three models consisting of all principal variables of the study, and showing the relationships between the independent and dependent variables. The fourth chapter was devoted to analysis of the data and interpretation of the study's findings. The chapter was divided into three sections: the descriptive data, hypotheses tests, and more complex testing of the actual study models. The first section of Chapter IV focused on data description. We started with respondents' characteristics, type of education, age, marital status, background of origin. Most of the variables were presented in tables that displayed frequencies, percentages, etc. From the descriptive analysis, we noted the growth of the urban middle class, as represented by student's estimated family annual income shown in'Table 4A3. Growth of the middle class is a new phenomenon associated with Saudi Arabian development projects, which paved the road for class divisions in Saudi Arabia. Students' fathers' education was an important aspect of this study, because it could be looked upon as an effective instrument determining students ' attitudes toward work in the private sector. We found that the majority of 137 students' fathers (85.98) have no education or one below the intermediate level. This vast proportion of fathers having no or low education could be interpreted as a negative influence on the younger generation regarding work in the private sector, but, as it turned out, it was not. In terms of the present types of occupations held by students' fathers and grandfathers (presented in Table 4.5), we traced the historical background for occupational development over the past two generations. We found that tremendous changes have occurred in the development of the occupational structure in Saudi Arabia, which could indicate a positive trend in the development of occupations as well as a positive sign regarding the future prosperity of the younger generation. In terms of work experiences of the students' families, we found that a huge gap exists between male and female work involvement, and we saw how much the work environment is dominated by males. This unequal state in the realm of work makes it difficult for researchers to be helpful in planning rational economic development. The recent social transformation from rural to urban residence was reflected by the origin of grandfathers and students. Table 4.7 indicates a tremendous shift between the two generations. This change is an outcome of the huge utilization of petro-dollars according to the developmental 138 plans which started in 1970. Family size, as indicated in Table 4.8, for the vast majority of the students' families consisted of six persons or more, suggesting predominance of the extended family type. However, we believe that family type is moving toward the nuclear type as a result of the housing projects and work activities introduced under the development plans to encourage industrialization and rapid social transition. With regard.to the source»of information that students can use when they begin looking for a job, we found that the majority of students depend on family connections or on an organized office, such as the Civil Service Bureau. There is less dependence on schools and the media. The low participation of these two major institutions may hinder the process of Saudization. Just.when such institutions are looked upon as influential tools for effecting change in modern times,they are not playing the role they could in Saudi Arabia. Several principle variables in this study are discussed in the following. Saudization was a variable that appeared to be highly favored among the majority of Saudi students. This new finding gives a strong clue that the younger generation wants to Saudize the local labor market and are enthusiastically willing to work and fully participate in their country's economic activities. 139 However, the variable of fulfilling work-related needs seems to be the strongest among other variables determinant of attitudes toward work in the private sector. This is an encouraging sign that students are willing to work in the private sector if jobs there fulfill their needs. In terms of Saudi students' perceptions regarding traditional views of work in the private sector, we found that the majority of students were in disagreement with their families' traditional values and attitudes toward some :menial occupations. This indicates that. the gap between the younger generation, represented by the students, and the older generation, represented by their families, is widening. When development was adopted in Saudi Arabia, it was inevitable that this phenomenon would occur. Another variable was Saudi students' perception of the correspondence of their skills and knowledge with private sector jobs. The data revealed that the majority of students (60.28) agreed that the education and training programs they have now will provide them with adequate knowledge and skills to get a job in the private sector. Another major variable was Saudi students' attitudes toward work in the private sector. In general, the data revealed an equal proportion of favorable and unfavorable responses when comparison was between the two sectors. We 140 feel this equal result is positive evidence that private sector work is acceptable to many students. In terms of students' preference between private and public sectors, although we found that students' opinions toward both sectors were almost the same, the public sector was looked upon as the base to compare other occupations against. We conclude that many Saudi students not only want to work in the private sector but also are willing to compete in its work environment. Another important aspect of this study was in regard to students' general preferences regarding work. If they were to work in the private sector, we found that the vast majority of students preferred office-related work, large institutions, and urban areas. However, when incentives were compared between both sectors, we found that the majority of students favored accepting jobs with good incentives, even if these jobs were in the private sector. This indicates to us that private sector incentives may be increasingly similar to those in the public sector, and that they will increase the likelihood of students seeking work in the private sector. Section two of Chapter IV was devoted to tests of the proposed hypotheses. Two different statistical techniques were used. Correlation coefficients were applied to the first nine hypotheses, while the last three hypotheses were 141 tested by one-way analysis of variance. For hypothesis 1, correlation coefficients were applied. The result showed a significant positive relationship between perception of the correspondence of their skills and knowledge and students' attitudes toward work in the private sector (r=.2834; P ( .001). We concluded from this hypothesis that students will not plan to enter private sector employment if they believe they do not have the skills and knowledge required in that sector. Hypothesis 2 dealt with the enactment of more laws and procedures for the rights and protection of workers. The results indicated a weak and negative relationship between the view that the government should enact more laws and procedures for the rights and protection of workers in the private sector and students' attitudes toward work in the private sector, with no significant statistical relationship. Therefore, we rejected the proposed hypothesis. Hypotheses 3, 4, and 5 were about the relationship between attitudes toward work and SES (father's education, family income, and father's occupation). The results for hypothesis 3 show that there was no effect of fathers' educational background on students' preference toward work in the private sector. This coincided with hypothesis 4, which indicated that family income had no affect on 142 students' preference for work in the private sector. Hypothesis 5 showed a highly significant positive relationship between the variables, which means that fathers' occupational status had an effect on students' preference for work in the private sector. Hypothesis 6 dealt with the relationship between the two variables of "attitude of students toward work in the private sector" and family size. It shows no significant relationship between the two variables, which means that the data do not support the hypothesis. Therefore, we rejected it. Hypothesis 7 involved the relationship between "traditional views regarding acceptability of occupation" and "students' attitudes toward work in the private sector." The data do not show a statistically significant relationship, which suggests that Saudis may be willing to accept work in the private sector, even if they hold traditional views regarding acceptability of occupations. Hypothesis 8 stated a relationship between the two variables of "private sector employment will fulfill work needs" and "students' attitudes toward work in the private sector.” The data reveal a positive and statistically significant relationship between the two variables, thus supporting the hypothesis. In fact, this variable appears to be the strongest among all other variables in its effect 143 on attitudes toward private sector employment. Hypothesis 9 tested the relationship between the two variables of "importance attached to Saudization of the private sector" and "students' attitudes toward work in the private sector." The result indicates an insignificant negative relationship. Therefore, we rejected the hypothesis. Hypothesis 10 involved the relationship between "fathers' present or previous employment in the private sector" and ”students' attitudes toward work in the private sector." The result of one-way analysis of variance indicated a statistically significant relationship between the variables, which supports the proposed hypothesis, meaning that students have been influenced by their fathers' work background. The one-way analysis of variance for hypothesis 11 indicated that university and vocational students do not differentiate between economic sectors. The test of hypothesis 12 showed that there is also no effect of regional background on the student's preference regarding work in the private sector. Section three of Chapter IV used regression analysis to examine variables in models I, II, and III simultaneously. In all three tests of the models, two variables had the greatest impact on the dependent 144 variable: "perception of extent to which private sector employment fulfills work need" and "perception of correspondence of skills and knowledge with private sector jobs." The fact that these variables were also significantly related to the independent variables, indicates the importance of these two variables as intervening variables between the three independent variables and attitudes toward work in the private sector. Conclusions These conclusions are’based‘upon.theistudy's findings. Some ideas are less involved with students' attitudes toward work in the private sector, while others are more related. The core problem addressed by these conclusions is how to increase the participation of Saudi nationals in the private sector of their own labor market. Among the results of this study, one of the major findings indicates the willingness to work of many in the younger Saudi generation, represented by senior students who are ready to graduate this academic year 1989/90 and prepared to enter the realm of work. In addition, these students emphasize the role and importance of Saudization, and of actual substitution for the foreign worker. In fact, students as a whole are seriously aware of the present economic situation and possible future consequences. According to this study, there were some important variables that, while assumed to be obstacles to Saudization, do not appear to be so. They are the following. The enactment of more laws and procedures for the rights and protection of workers does not appear to be an important issue among the majority of Saudi students. This 145 146 suggests that, in general, students are not concerned about laws governing the employment system. However, our position, based on other evidence, is different than that of the majority of the students. We think that the absence of a clear and defined strategy for employing indigenous labor is one of the most problematic issues facing Saudization. Despite the stand of Saudi planners toward .this issue, we think it needs major modifications. First, a strategy for Saudization should be spelled out with clear rules and policy. Second, it should indicate how the task will be implemented and, most of all, it should set time limitations. Our suggestion in regard to this issue is the following: in order to Saudize the labor market we should think rationally and understand real causes. It is only logical to think that substituting a huge labor force for another will not occur within a short period of time; therefore, time must be a real factor of constraint in the whole plan and must be set constructively. From our point of view, the next two decades (1990 to 2010) are sufficient to build a qualified national labor force capable of operating the system. The third modification is the acknowledgment that doing such a task as this needs the full cooperation of and coordination between three main buttresses: the Saudi bureaucracy, including all government organizations; the private sector organizations represented 147 by its owners and managers, especially those in the top hierarchy of the organizations; and Saudi individuals that represent all Saudi social segments. Then, substitution should be implemented through stages until the final plan is achieved. Another finding of this study is in regard to the traditional views toward acceptability of certain jobs. The data indicate the willingness of the younger generation to accept jobs that traditionally have been rejected by the older generations. We believe it is a natural process that when change is introduced to a society (in particular, to a traditional society like Saudi Arabia), new phenomena arise that eventually contradict the old society. Hence, with the rapid introduction of new technology, the growth of education, and the infusion of modernity in Saudi Arabia, it is inevitable that the gap between the older and younger generations will diverge. Then, ultimately, the idea.of1denigrating'some occupations is likely to languish. Another finding was that students from a large family do not hold positive views toward work in the private sector. Our assumption when we proposed the hypothesis was that students from large families would consider the importance of jobs regardless of economic sector. However, the result shows otherwise. To understand this finding, it is important to consider the influence of the family on 148 decision making by its children as they move into adulthood. Saudi families have tended to favor public sector jobs because, when they initially adopted the idea of organized. work, it was associated. with. government organizations, whereas the private sector has just recently been established. In the past, the preference for work among'many Saudi nationals has always been connected to the public sector. In addition, job incentives in the public sector, such as job security, existence of payroll, stability of work, less effort to perform the work, social prestige, etc.. have been looked upon as important factors by many Saudi nationals that may not be found in private sector jobs. Size of family, however, does not influence attitudes toward private sector employment of the students in our sample. A further finding concerns whether Saudi students who come from rural backgrounds differentiate between jobs in either sector. Initiallyy we thought that students who come from rural areas might prefer to work in the public sector, but it turns out this is not so. This is an important finding that could be utilized by the private sector through the creation of more jobs in rural areas. As mentioned earlier, there is concern about the clustering of Saudi industries and economic activities in only the three main cities. This finding could encourage the 149 private sector to move into cities other than just the three main ones. Another important finding is that students, according to educational types, did not differentiate in their preference between economic sectors. In the past, during periods.of scarcity’of graduates, university graduates were always granted payroll levels of the sixth and seventh grades, which increased the favorability of public sector employment among university graduates. Therefore, the results of the study indicate a possible new trend among Saudi students (in particular, the university graduates) for not differentiating between the two sectors suggesting that the private sector is becoming equivalent to the public sector. This finding also suggests that, for students as a whole, the bottom line may be getting a job, regardless of sector. Students' belief that they hold skills and knowledge needed in private sector jobs is another important finding. This variable was a strong determinant of attitudes toward work in the private sector, suggesting recognition of the great demand for new skills and knowledge that require some training, education, and experience. However, despite this finding, we feel the present educational and training programs were designed to fit the needs of the public sector. When development and growth of the private sector 150 began, there was not enough revitalization of the educational system to meet the new demands. Although some areas of education have begun to revise their programs, other educational institutions (such as vocational and training institutions) still suffer the lack of development needed to produce workers educated and trained to meet the changing needs of private sector jobs. Another important finding shows that an even stronger determinant of attitudes toward work in the private sector is perception of the extent to which private sector employment fulfills work needs. This variable appears to be the strongest among all principal variables, indicating how work in the private sector could satisfy work-related needs of an emotional or/and financial nature. In fact, many students believe this is true, especially with regard to large organizations in the private sector. While the findings discussed above are more specifically related to the issue of work in Saudi Arabia, the following points of discussion are concerned with the issue of general obstacles to Saudization. First, a lack of coordination between educational institutions and administrative organizations in the development of a coherent employment program retards Saudization. From our point of view, the educational institutions do not go beyond educating the student. They 151 do not take responsibility for what comes after. Students in our sample do not get help from educational institutions in finding jobs. We strongly believe that educational institutions such as universities, vocational, and training institutions must play a wider role in facilitating the student's entrance into the work force. They should also plan rationally to develop and improve an educational system that will satisfy the market's needs. Second, the performance of the media in Saudi Arabia presents an obstacle to Saudization. It is obvious that the media is not playing the role of linking the social domain and economic institutions together. Students do not get help from this source in finding jobs. Nowadays, it is evident in any society that the media becomes an instrumental mechanism; in fact, it could be seen as the mediator between the masses and economic organizations. Here, our aim is that the media should take a leading role, not only by publicizing job openings through more ads, but also increasing people's awareness by providing more information on the importance of work, in general, and occupational types and menial work, in particular. In addition, the media should investigate major economic and occupational problems that need more analysis and research. Third, laws and rules which would safeguard the occupational future of the individual are lacking. Despite 152 the finding that this variable does not affect attitudes toward work in the private sector, we believe that the lack of laws in the private sector makes some individuals feel unsafe about their work future and this is an obstacle to Saudization. Since 1969, the country has operated under an approved "labor law" that consists of 211 articles. However, this law still needs more elaboration, especially in areas such as protection of wages. In our opinion, there is a need to create a reasonable and standardized payroll system that would fit all occupations, and to provide protection and social services that have more insurance warranty. However, insurance on workers' lives or other aspects of life still faces rejection from the vast proportion of Saudi society, because many people believe it contradicts Islamic teaching. However, a country such as Saudi Arabia, which has great financial power, should play the role of protector by providing insurance for the workers, and by providing a guarantee of jobs or subsidies in case of economic problems. Fourth, Saudization is restricted by the severe limitation of women's involvement in the labor force. The issue of the male-female relationship can be seen as one of the most troubling social dilemmas that Saudi society faces and will continue to face in the future. Segregation and degradation of women is not to the benefit of society 153 or development. The result is that all development plans have ignored the women's role and treated it as a minor issue. In fact, the sensitivity of the woman issue always creates conflict, with religious fundamentalist groups and the political system together trying to enforce restrictions on women by using the old rhetoric that women should stay in and take care of the home. This huge frozen human resource presses like a heavy burden, not only on the economic and social systems, but also on males who must bear all economic responsibility and provide for all needs outside the home. Fifth, concentration of jobs in the three main urban areas makes it more difficult economically for individuals who live in small towns or rural areas. For example, the majority (698) of registered workers are distributed among the three main urban centers (Riyadh 25.28, Jeddah 18.08, and Dammam 25.88). This is a major problem that has developed because of the economic planners, whose policies deprived rural areas of development and helped swell the urban areas with.greater population than they can tolerate. Our suggestion is to plan more economic activities that encourage small industries to operate in small towns and to provide them with incentives they can not get in urban areas. Also, planners should encourage rural entrepreneurs by creating more economic activities and providing them 154 with help such as facilities and financial assistance, as the government used to do. Another important aspect of this issue is the need to increase basic facilities such as paved roads, health and municipal services, telephone, power, water, housing development in rural areas, etc. Sixth, the findings indicate that, in general, the Saudi people still hold some negative ideas about manual work in the private sector. This denigration of manual jobs among a vast number of the Saudi people has to be eliminated through an organized campaign using educational programs and the mass media, aimed at both the older and younger generations. Some of the educational programs below the college level need to be revised to meet labor market demands. They need to include vocational courses that have more relation.to:manual work, and.need to educate students, as well as their teachers, on the importance of manual work. Seventh, another problem is the lack of responsibility by private sector owners toward the issue of Saudization. We should not lay the blame on private sector owners alone, however, before considering some other major issues. One of them is that private sector owners lack direct participation in political decision making. Another is the competition from foreign goods in the local market that is encouraged by merchants and others who have strong 155 associations with the political elite; this behavior encourages the private sector to depend on imported labor and its low wages. Finally, when government employees are 308 non-Saudi, there is greater reason for the blame initially to be laid on government bureaucrats before we blame private sector owners. Eighth, the data indicate that the old slogan about the lack of indigenous skilled labor is not a reliable tactic any more. Therefore, minimizing expatriate labor is an essential step. This has to be implemented by enforcing a reliable plan such as that we suggested earlier. Ninth, the recruitment and treatment of immigrant labor works against Saudization. One problem is the bureaucratic rules and procedures within some government organizations, particularly those directly involved in the import of labor (such as the Ministry of Interior, the Ministry of Labor and Social Affairs, Civil Service Bureau, and the Foreign Ministry). These organizations should recognize the negative consequences of importing labor, and should emphasize its limitation by encouraging Saudization of the labor force. These government organizations should know precisely what is available and not available in the local market, and laws should be very restrictive so that employers can not import labor unless the local market can not provide workers. In reality, the import of labor has 156 become a corrupt business. Many foreign workers hired through special agencies in the country of origin can not have a Saudi visa without paying in advance up to six months of future salary to those agents. In addition, some Saudi agents (or kafeel) ask for more worker visas than they actually need, then they release the workers onto the street for work in exchange for some fixed amount paid each month to the Saudi agent. Another tactic of labor brokers is that they lend foreign labor (such as housemaids, drivers, farm workers, etc.) to other employers who pay higher wages than the worker's original contract (which ranges between $100 to $180 per month), and then pocket the difference. These exploitation tactics go beyond government observation and sometimes are hard to discover because foreign workers lack knowledge of Arabic for communication. and. fear' deportation. despite their' poor conditions (such as, in many cases, low wages, long work hours, and poor work conditions). They endure such privations because economic life in their countries of origin is often harsher. These practices, if documented in future research, should be stopped. Tenth, since the implementation of petro-dollars around 1970, the growth of organized work has led to incredible changes in occupations over the past two generations in Saudi Arabia. This is evident in our 157 comparisons between the occupational backgrounds of students' fathers and grandfathers. This growth will continue among the new generation because it is part of an inevitable process: no matter how society holds to its traditional values, they will not last long against the resistance and. pressure of industrial forces. Saudi society is an example of such conflict, where on one hand authorities and the older generation try to reinforce traditional values, while, on the other hand, the continuous influx of technology, education, and modernity increasingly pushes for diversion from the old social system. Evidence of this is reflected in the younger generation' 5 changing opinions about long-held assumptions, such as the role of father and family in a student's decisions about work preference and occupational choice. The diverging values of the new generation and the older generation have resulted in a widening of the gap between the two groups and an increase in conflict between them. Nonetheless, in concurrence with Kohn (1989:142-2), who studied the issue of occupational choice and parental values and how children follow the path of their parents' occupations along social class, this study shows evidence of a similar finding. The younger generation of Saudis follow in the footsteps of their fathers with regard to occupational status: the younger generation represented by 158 students is affected by the occupational level of their parents. A final thought worth mentioning is that the data indicate overwhelmingly that Saudi students are in favor of Saudizing the private sector, and that many are willing to work and participate in the labor force in this sector. These attitudes stem from actual needs and the necessity for work, but Saudi students also want not only to survive the present economic situation, but also to fulfill their emotional, as well as financial needs by involvement in economic organizations. In fact as mentioned above, this issue of fulfillment is one of the strongest variables determinant of attitudes toward.work in the private sector. Recommendation for Fupther Study Saudization and the importance of manual work in Saudi Arabia are important issues for the future. We suggest the following research to address these critical issues. This study is actually part of a larger topic: a comprehensive survey research study concerning the issue of Saudization in both private and public sectors needs to be made. Three important elements should be involved in such a study; government bureaucracy, private sector institutions, and Saudi citizens. -- Government bureaucracy needs to be represented by a sample from all government organizations, including employment figures, key bureaucratic office holders, and educational institutions, including vocational and training institutions. -- The private sector work force (including Saudi and non-Saudi employees) needs to be represented by a sample drawn from all economic institutions that are presently active and functioning'in the private sector, including key owners and managers. -- Saudi citizens need to be represented by a sample that 159 160 draws from the older Saudi generations, students of all level of educations, and women. This massive study should include all regional areas, taking into account urban and rural areas. The study should focus on the major variables, as mentioned above, as well as looking with more detail into the role of women. Education should be looked upon as an important variable among others. The effect of laws that can provide assurance and protection not only for individual workers, but also for economic institutions, should be considered. Overall, the study should aim at establishing a reasonable formula that will help utilize all human resources in the country. We recommend for this survey study that a scientific team of researchers be gathered that represents all major educational institutions and other related organizations (such as universities, IPA, research centers, Chamber of Commerce, Ministry of Labor and Social Affairs, Ministry of Interior, Manpower Council, Civil Service Bureau, etc.). We expect this team to organize a longitudinal study that will monitor the changes and developments in work and labor markets over the next two decades and beyond. APPENDIX ENGLISH VERSION OF THE STUDY QUESTIONNAIRE 161 Oct 20-1989 Dear Fellow Student: I am asking for your help and your participation in a study that examines the factors that facilitate or hinder the process of Saudization in the private sector of the Saudi Arabian labor force as viewed by you as student. Very little research has examined this issue. Your answers may be helpful in finding better ways of implementing the Saudization policy. Therefore, your input in this study is crucial for us to obtain a representative opinions of senior students in some colleges and vocational and training institutions in Saudi Arabia. Please take time to loomplete the attached questionnaire and return it to me or to the person who handed it to you. I would like to assure you that all information you give and opinions you express will be kept confidential. Please do not write your name on the questionnaire. Thank you for your time, consideration and cooperation. Sincerely Hamad O. Alogla PHD student at Michigan State University U.S.A Sponsored by the Institute of Public Administration Riyadh Saudi Arabia A: SENIOR STUDENTS QUESTIONNAIRE SECTION 1: GENERAL QUESTION Questions in section 1, are general information about you. Please mark the appropriate answer by using the check mark ( 4') front of each applicable question, THANK YOU. How old are you? years What is your present marital status? never married (If never married go to ques't 4) married separated divorced widowed How many children do you have? No children One child Two children Three children Four children Five children Six children or more 162 [21 [1] [21 [3] [4] [5] [11 [21 [3] [4] [5] [61 [71 163 4. In what administrative area is your home? Eastern Region [01] Riyadh [02] Qaseem [03] Mail [041 Tabuk [05] Arar [06] Al Jawf [07] Qurayyat [08] Medina [09] Mecca [101 Jeddah [11] Taif [12] Asir [131 A1 Bahah [14] Jizan [15] Najran [15] 5. Do you live in? Note: Large city has more than 50.000 inhabitants Small city has between 5000-50.000 inhabitants Village or Hejrah has less than 5000 inhabitants Large city [11 Small city [2] Village/Hejrah [31 6. Where have you lived most of your life? Large city [1] Small city [2] Village/Eejrah [3] 7. Where did your father's grandfather live most of his life. Large city [1] Small town [21 Village/Bejrah [3] Unsettled nomad [4] 164 8. Are you living with your parents while you are in school? Yes [1] No (Do you live alone, with relative, roommate, [2] school dormitory....etc, please specify ) 9. What is your major or training program? 10. How many people are living in your parents' home at the present time? Include any relatives or other people who are a regular part of the household (except servants). One person (just you) [1] Two persons [2] Three persons [3] Four persons [4] Five persons [5] Six persons [61 Seven or more persons [7] 11. How many brothers and sister do you have. brothers [1] sister [21 12. How do you rank in term of birth order among your brothers and sisters. First child . [11 Second child [2] Third Child [31 Fourth child [4] Fifth child [5] Sixth child [51 Other (please specify your birth order) [7] 13. What is (or was) your grandfather's occupation? Please give a specific job title, for example, farmer, merchant, animal herder, clerk ....etc. 165 14. How much education has your father completed? No Education [1] Just read and write [2] Elementary School [3] Intermediate School [4] High School [5] Bachelor's Degree [6] Higher education (master or Phd degree) [71 15. Is your father working now. Yes [1] No [2] If yes, is your father working in. Public sector [1] Private sector [2] Both [3] 16. Did your father work before. Yes [11 No [2] If yes, did he work in. Public sector [1] Private sector [2] Both [31 17. What is (or was) your father's main occupation while you were growing up? Please give a specific job tittle, for example teacher, manager Accountant, farmer, mechanic, carpenter ...etc. 166 18. How about the other members of your family? a. Is (or was) your mother working outside the home? Yes No (Go to next question) If yes please give a specific occupation title. b. Are any of your brothers employed? Yes No (Go to Next question) [1] [2] [1] [1] [11 [21 If yes please indicate job title for each of your working brothers Brothers Occupation Title Pub sect Prv sect U'lthH c. Are any of your sisters employed? Yes No (Go to Next question) [11 [2] If yes please indicate job title for each of your working sister? Sisters Occupation Title Pub sect Priv sec 015002003 [1] [21 [31 [41 [5] [1] [21 [31 [4] [5] 167 19. Are you working now? Yes [1] No (If no go to question 20). [2] If your answer is YES to the above question, please answer the following items. a. Are you working in the?. Public Sector [1] Private Sector [2] b. Are you working Full time [1] Part time [2] c. Years and months in present job years, months. d. After your graduation, do you intend to keep on working in your present job?. Yes [11 No [21 20. Have you ever held a job in the past (including summer job)?. Yes [11 No (Go to next question) [2] a. Number of jobs you ever had [1] b. Did you work in the?. Public Sector [1] Private Sector [2] Both [31 c. Did you work Full time [1% Part time [2 Both [31 168 d. Years and months of work in the last job years, months. e. After your graduation, do you intend to go back to your old job?. Yes [1] No [2] 21. The reason for your study or training program is. (please check the ppg most important reason below); To gain more knowledge and skills [1] To upgrade your work level [2] To get a decent job [3] To enhance your income [4] Because its demanded by your work activities [5] 22. What is the most important source of information for you to know about job opportunity in the private sector? (Please check the ppg most important source to you) School [1] Friends and relatives [2] Office of work and labor [3] Media [4] Other [5] (what source) 23. What is the most important source of information for you to know about job opportunity in the public sector? (Please check the pp; most important source to you) School [1] Friends and relatives [2] Civil service bureau [3] Media [4] Other [5] (what source) 169 24. Do you know any one who works in the private sector? Yes [1] No [21 If yes approximately how many (please chick one item)? Less than three persons [1] 4-6 persons [21 7-10 persons [3] 11-15 persons 14] more than 16 persons [5] 25. Approximately what is the monthly total income of your family from all sources? Less than SR 3000 [1] SR 3000-5999 [21 SR 6000-7999 [3] SR 8000-10999 [4] SR 11000-14999 [5] SR 15000-19999 [51 SR 20000 8 more [7] SECTION 2 The following statements are organized.to>measure students' attitude toward work in the private sector. Each statement has five different response categories (SA=Strongly Agree, A=Agree, N=Neutral, D=Disagree, and SD=Strong1y Disagree). Please read each statement carefully and choose the appropriate category of your agreement or disagreement by checking one box for each question. EXAMPLE SA A N D SD All eligible and able Saudi citizens should work. X The respondent in this example chose the second category (Agree), which represents his opinion about the statement? Please respond to the following statements by choosing one category for each question. 5= Strongly Agree 4= Agree 3= Neutral 2= Disagree 1= Strongly Disagree 1. I would especially like to work in the private-sector 2. I would be willing to work in the private sector but only in a high status job. 170 171 002 NO I would accept employment in an occupation even if my family traditions regarded that occupation as unacceptable My family strongly disapproves of some types of occupation. All foreign workers in the private sector should be replaced by Saudis. Although the foreign workers get low wages, the government should impose more restrictions on importing foreign workers. In my opinion the government should take more serious procedures providing jobs security in private sector. It would be easy for me to get a job in the private sector. The private sector hiring policies can be seen as an obstacle to the Saudization process. 10. The government should adopt strong laws or procedures to speed up the Saudization policy. ' 11. The private sector should take the initiative toward implementing Saudization policy. 12. Work is more important to me than to most other people. 13. My family would encourage me to take a job in any area in Saudi Arabia. 172 952 Nd 14. The following occupations such as carpenter, smith, butcher, tanner, are not acceptable to my family. 15. Even if I have difficulty finding a job, the following occupations such as carpenter, smith, butcher, tanner, are not acceptable to me. 16. The education and/or the training program I am in now gives me enough skills and knowledge to get a job in the private sector. 17. My education or training program will provide me with more opportunity to get a job in the private sector than in the public sector. 18. The major or training program I am in now was my choice (if your answer SA or Agree please go to question 20) 19. Even it was n't my best choice I am satisfied with the major or training program in which I am enrolled now. 20. To me, there is no difference in working in either the private or public sectors. 21. I would not want a job that requires manual work. 22. I plan to start my own business sometime after I graduate. 23. I would prefer a job where I would work only with other Saudis. 173 uz NU 24. Work in the private sector fulfills my need financially more so than work in the public sector. 25. Work in the private sector fulfills my need emotionally more so than work in the public sector. 26. Work in the private sector would give me opportunity to learn and practice my skills. 27. I am eager to learn more skills and know- ledge, and, for this reason, the private sector is the right place for me. 28. I would believe that satisfaction in my life comes from my future job in the private sector. 29. Most things in life are more important than work. 30. I think that, if I could not do my future job well, I would feel that I was a failure as a person. 31. The private sector should have a standardized payroll as the public sector does. 32. Regardless of the occupational type or location, if a job pays high wages I will take it. 33. I'd rather work in the public sector than the private sector. 34. I wouldn't mind working eight hours a day six days a week. 174 NU 35. The private sector offers one a chance to put his own ideas into operation. 36. The advantages and disadvantages of work in the private and public sectors balance each other. 37. There are many more disadvantages than advantages in the public sector. 38. If I took a job in the private sector it would be only temporary. 39. No matter what happens, work always comes first. 40. Quite a number of things about manual work annoy me. 41. I am interested more in job security than other incentives. 42. I wouldn't mind working under Non-Saudi supervisors. 175 In the following questions please mark the appropriate answer by using one check mark ( V1) in front of each question THANK YOU. 43. If you work in the private sector? a. Would you like to work in: Office related work [1] Non-office related work (such as farms, fact...) [21 b. Would you like to work in: Small organization [1] Large organization [2] c. Would you like to work in. Urban area [1] Smaller town [2] Village 131 44. If you had a choice between two jobs in the same occupation, one in the private sector which pays more, and the other one in the public sector which pays less, which one would you take? Private sector and more pay. [1] Public sector and less pay. [2] 45. If you had a choice between two jobs in the same occupation at the same pay one in the private sector in your home town, the other in the public sector in different area, which one you would take? Private sector in your home town. [1] Public sector in different area. [2] 176 46. If you had a choice between two jobs in the same occupation, one in the private sector with a high chance of promotion and one in the public sector with a low chance of promotion which would you take? Private sector and high promotion opportunity[1] Public sector and low promotion opportunity [2] 47. If you had a choice between two jobs in the same occupation, one a somewhat secure job in the public sector and the other one even more secure job in the private sector, which one would you take? Somewhat secure job in the public sector [1] Even more secure job in the private sector [2] 48. If you had a choice between two jobs, one a difficult but interesting job in the private sector and the other is an easy but less interesting job in the public sector, which one would you take? Difficult, but more interesting job in the private sector [1] Easy, but less interesting job in the public sector [2] 49. If you were choosing between two jobs, one in the private sector and one in the public sector, which of the following would be most important to you in making your choice? Put a "1" front of the most important characteristic, a "2" in front of the next most important, and so on until you have ranked all five characteristics. Job security [1] Easy job [2] .____ Pay [31 Location in country [4] Chance of promotion [5] Job title [61 50. 51. 52. 177 If you took a job in the private sector what industry would you prefer? Oil industries (e.g., ARAMCO, PATROMINE) [1] Petro-chemical (e.g., SABIC) [2] Banking [3] Agricultural companies (e.g., HADCO, NADIC) [4] Manufactory companies (e.g, Aluminum, Glass)[5] Services and transportation companies [6] Saudia Airline [7] Other [8] (please indicate the name) In your opinion which of the economic sectors will provide you with more incentives such as reasonable wages, promotions, benefits, promotion, paid vacations, training program, fringes, working conditions, etc. Public sector [1] Private sector [2] That is all of the formal questions. 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Alogla P.O. Box 6606 East Lansing, MI 48826 Dear Mr. Alogla: RE: 'OBSTACLES TO SAUDIZATION IN THE PRIVATE SECTOR OF THE SAUDI ARABIAN LABOR FORCE IRB# 90-058' TheaboveprojectisexemptlromfullUCRlHS review. lhavereviewedtheproposed mseardtprmooolandfindmmefightsmdwellamothwnansubjeotsappeartobe protected. You have approvaltooonduotthe research. You are remindedthat UCRIHS approval isvalidforone oalendaryear. Ifyou planto continue this project beyond one year. please make provisions for obtaining appropriate UCRIHS approval one month priorto February 12. 1991. AnydtangeshpmoedumshvoMnghwnansubjectsmustbemviewedbyUCRlHSpnor to initiation of the change. UCRIHS must also be notified promptly of any problems W%m,m,m)mmmmdmmmm Thankyouforbrhgingthlsprolecttoouattention. ltweoanbeolanyluturehelp. pleasedonothesitatetolettslmow. Sincerely. PmEMA Daniel A. Bronstein, sup. V106 Chair. UCRIHS JKl-l/sar oc: w. Faunoe nan-WWW” 194 HJ‘J—U‘mr—t ‘ Vii: E3Q’y’m - ‘3_ .155? ' pyli/WW (t 9);..." 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