ABSTRACT
Human resource management (HRM) in Algeria is not too different from that of many other developing and former socialist countries, but it has its distinctive characteristics when considered in relation to other Middle Eastern countries, especially in the light of the past fifteen years of political turmoil and socio-economic problems. In its endeavour to modernize and to move from a planned to a free-market economy Algeria has been facing acute problems at all levels and particularly in managing its human resources (HR). To explain this situation, it is appropriate in this chapter to start with a brief account of the socio-economic and political context in which people are employed and managed. Then the two main systems of employment relationship, self-management (1962–9) and socialist management of enterprises (1971–90), that characterized the historical development of HRM and industrial relations for nearly thirty years are analysed critically, highlighting the reasons for their eminent failure. The role and importance of HRM in the current economic reforms are explained before discussing the key factors that determine HRM policies and practices such as recruitment and selection, training and development, rewards and remuneration and industrial relations. Some of the recent changes in HRM policy and practice are described and the key challenges for future development are explored. Finally, it is concluded that the problems and the characteristics of managing HR in Algeria are intertwined with contradictory policies, practices and attitudes that have their origins in the cultural, historical, political and socio-economic developments of the country. Therefore suggestions are made on how to improve employment relationships, create jobs and ameliorate working conditions in a fast changing, turbulent and volatile free-market environment.
