The link between internal strategy and overall performance application of socio-economic approach to management in a multi-activity family business in Kingdom in Saudi Arabia

Abstract

The Socioeconomic approach to management claims to enhance the productivity of a company by mainly searching for the hidden human potential and the hidden costs of the company. This paper describes the case of a company in KSA, called Contec, where the Socio-economic approach to management (SEAM) was introduced during 18 months. The company was suffering mainly from lack of strategic planning, communication and very poor human resource management. The study was to apply the SEAM HORIVERT process, including the calculation of hidden costs in two of the business units. In addition, it introduced some of SEAM tools and evaluated its effects on the managers and personnel. This doctoral thesis describes how SEAM unfolded during this period at Contec, and how people reacted to the methodology. Moreover, it talks about the key achievements of the project be it Quantitative, Qualitative or Financial. At the end of the project the company was subjected to a methodology that revealed the importance of its human potential and its effect on the financial results.