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Middle East Organization Behavior

Home Middle East Organization Behavior

The various forms of business organization are:

  • Service organization
  • Hybrid business
  • E-commerce
  • Sole proprietorship
  • Public limited business
  • Manufacturing business (Krey, 2017)

The best forms of business for Middle Eastern nations are sole proprietorship, partnership, corporation. This is so because these forms of business are well regulated, work under the compliances, have a better communal understanding, clarity with the stakeholder and most importantly ease of doing.

  • With the point of view of Doha Bank in Qatar, the following are the explanations:
  • responsibility: the bank is responsible to provide safe, secure and easy financial services to its customer's
  • authority: Doha bank has complete authority over sanctioning of loans, the rates of interest and several other services provided by them
  • Accountability: The Doha bank is accountable to its customers as well as the regulatory body for all the financial services and matters provided by them
  • Advantages of work delegation:
  • Minimizes the workload of managers: the managers are able to give work to others and be efficient
  • Increases efficiency: less work allows people to do it fast and in the right way
  • Saves time: when work is divided it allows the work done to be faster than otherwise
  • Motivation and morale: Delegation of authority is used to develop a feeling of status and victory among the subordinates to improve efficiency
  • The culture of trust: when a manager gives work to people, it means he trusts them with it.
  • The growth of business: Delegation of authority facilitates growth and expansion of business activities.
  • Decision making: when work is delegated, it allows for quicker decision making (Stewardson, 2016)
  • Training and development: once the work is divided, the managers are able to see if the employees are able to work and where they need extra help in the form of training
  • Stress-free work environment: delegating work relieves the stress.

The disadvantages of work delegation are:

  • Lack of commitment can ruin the project
  • Lack of knowledge and expertise too can ruin the project
  • The risk of inferior or wrong results is always there (Deshpande, 2018)
  • Employees can feel burdened if they do not find the work interesting
  • The employees will not be as efficient as required, creating problems for the manager
  • In order to make quick decisions, wrong decisions can be made
  • If the work is not as per the quality, the employee who has undertaken the work might feel dejected and demotivated
  • Owing to any issue within the work, there might be feuds with the top management and the employee or within employees as well (J.D, 2016)
  • Following are the challenges faced by business in the middle east and their respective solutions:

Challenge

Solution

Creating a brand presence since the middle east has a relatively set and tough market to enter

Being innovative and out of the box in marketing

Maintaining the presence; once it is achieved, it is essential to maintain it as well. This is tough since it involves a lot of

This has to be done by ensuring constant follow-ups and marketing strategies to retain a presence

Finance management

The Middle East is a fairly expensive place and managing the expenses can get tough if proper rationing is not done.

Organized workflow: Businesses in the middle east are either too organized or not at all organized. Being a part of such an ecosystem is tough.

In order to rectify this situation, it is best to be organized in all sectors to avoid any confusion while working with the unorganized members.

Finding the right employees: Finding the right employees with the right kind of knowledge and skills is difficult (Petch, 2017)

This can be sorted by hiring globally

Vendor relation: maintain good relations with the vendors is essential since they are quite limited in number (local)

This can be done by sorting the vendors and getting them as well as from them maximum business, proper communication and clear instructions.

Government policies: While the government policies aren’t too rigid, they are subjected to change quite often due to international pressure.

It is best to make financial reserves in advance for any such situation

Labour cost: the labour is mostly outsourced from Asian countries. And while it is cheap, the awareness of laws makes it tough to maintain them

Setting proper standards pricing with the labour to be increased as and when required

Getting investment is not a problem at first but maintain it once the business runs are

Creating a lucrative business model with quick and flashy returns

Getting the right kind of leadership to run the company (Fernandez, 2015)

Global hiring


  • Globalization with respect to the middle east is the essence of their entire economy; be it in the form of tourism or in the form of petroleum. Globalization has not been that easy to infiltrate the Middle East, owing to their relatively close markets(Looney, 2011). This concept is still an external threat and not all countries and organizations are open to embracing it in its entirety. This is so because the middle eastern countries feel threatened by the cultural change that is experienced by globalization. Protectionism in the middle east is currently on the rising. By definition this practice of protecting the local markets from foreign competition by taxing imports. This has created a lot of trouble for the country as foreign investors are most of the time quite sceptical about investing in the countries here (Pradhan, n.d.).
  • In order to double the sales of the car to be achieved by MaharabaPvt Ltd. The first and foremost thing that has to be done by the new leader of the company is to delegate the work. Since the prior leader had charge of possibly all the crucial activity, the success was pretty much defined. It is essential to divide the work and pass it on to actual qualified people and see the results multiply.
  • Following are the problems faced by QSR in Oman:
  • Equipment is expensive: go for alternative investments or suppliers
  • MIS is not updated: get an updated and MIS
  • No workforce integration: integrate the workforce with good HR policies
  • The characteristics of the business are:
  • Business is an economic activity involving the production of goods and services
  • Business is a continuous process
  • Business is profit motivated
  • Business comes with risk (Chand, 2011)
  • The three levels of management are:
  • Administrative level: this is the top management essential for all decision making and direct running of the company
  • Executive level: this is the mid-management which is required to execute the orders of the administration
  • Supervisory level: this is the lower management essential to operate and oversee the employees (Main, 2012)
  • Planning is essential to create a pre-decided path to achieve common goals and objectives. The nature of planning is to: contribute to goals, It is pervasiveness and results in efficiency.

Advantages of Planning

Disadvantages of Planning

An effective and faster way to achieve goals

Not always accurate

Ability to foresee the future and make corrections

Wastage of time

Cost minimization is possible

Takes into account only one way

ensures minimum wastage of resource

Brings rigidity to the system (WARD, 2019)


  • This process involves determining what work is needed to accomplish the goal, assigning those tasks to individuals, and arranging those individuals in a decision‐making framework.
  • Following are the steps in staffing:
  • Estimating requirement
  • Recruiting
  • Election
  • Placement and orientation
  • Raining and development (S, 2016)
  • The ten roles of managers are:
  • He has to lead the team
  • Liaison among the team
  • Be the contact for the team and the outside world
  • The bridge between the employee and the management
  • Passing on privileged information directly to subordinates.
  • Monitor the working of the team
  • Allocates the resources
  • Negotiate the requirements (Venkatesh, 2014)
  • Conflict resolution
  • Ensure work-place peace
  • The five purposes of controlling are
  • Makes plans effectively
  • Ensures activities are consistent
  • Makes the working efficient
  • Controls feedback
  • Helps in decision making

 

  • The five principles of direction are:
  • The principle of leadership: to lead with utmost effectiveness and in a result-oriented manner
  • The principle of informed communication: The management should recognize and utilize informal organization constructively.
  • The principle of direct supervision: The manager should control and supervise to ensure personal contact.
  • The principle of direct objectives: The manager should communicate effectively and motivate the subordinates for the most effective performance.
  • The principle of the harmony of objectives: The manager is responsible to maintain peace and harmony (Samiksha, 2015)
  • Factors affecting the real estate and automobile sector of the Middle East:

 

Real estate

Automobile

circumstances surrounding the business challenge

Mortgage, the high cost of rent, high taxes and lack of infrastructure.

lack of infrastructure, investment and innovation.

Stakeholder

Government and private constructors

Government and private constructors

Factors affecting business

revenues, and foreign exchange rate rent

 

FOREX rates

Potential solution

Increased interest and investment by the government

Ensure that outsourcing is done, a market is opened globally and post-sale service is improved


  • majority organizations in the Middle East are trapped between their need to grow and they want to be at the top. However, neither of these organizations are clear for the reason for doing so or the way by which they will achieve it. The need to grow can be substantiated by the fact that they wish to do so for the benefit of their employees and that of their stakeholders. However, they want to be at the top often is misjudged as working in an alternative and often unethical manner.

Staffing process

Current

Recommended

Estimating requirement

Falling staff number

Efficiency of work

Recruiting

Campus drives

LinkedIn and campus drives

selection

interview

Ability test and interview

Placement and orientation

Seminars

Seminars and shadow session

Training

Bi-annual

Whenever needed and quarterly


  • The difference between strategy and tactic are:
  • A tactic is the practical implementation of the plan while strategy is the plan itself. For example, we strategies to make a picnic plan, a tactic is to make the picnic successful
  • A strategy is for long term plans while the tactic is for immediate short term plans: for example, we strategies to increase sales by end of FY, a tactic is to increase it by the next two months
  • The tactic is a subset of strategy as a strategy overlooks the achievement of tactics (STI, 2014)
  • Following are the types of business communication:
  • Internal communication within the organization ie, communication with the employees
  • External communication with the public ie, communication with the consumer
  • Upward communication from employees to the employer ie communication to the leader from the employee
  • Downward communication from the leadership to the employees ie communication from the leader to the employee
  • Following are the management challenges faced in the 21st century and the ways they can be tacked with:
  • Customer trends are quite unpredictable which makes it quite uncertain for the company to sustain in the future
  • The rise of AI has created troubles for the workforce with the notion of replacing the jobs of the people now
  • Financial management might be a trouble for the companies
  • Not setting proper performance monitors to monitor the progress regularly

For any organization to tackle this situation in the best possible way, it is essential to understand that the best way to tackle such a situation would be to go right with the hiring process as the basis of all. Hiring the right people will reduce the stress to a much larger extent and allow the structure to be set.

The skills required are good domain knowledge, good communication skill and the ability to work under pressure.

  • The kind of planning done for a business is essential in understanding that both the short term and long term planning have a different effect on the success of the business. Long term planning focuses on solving the underlying problems permanently whereas the short term planning focuses on solving immediate current problems. Long term plans are visionary in nature and require a lot of researching and strengthening whereas short term plans are quite crisp for example, for a leader, require direct action.

 For example, Doha Bank focused on restructuring their technological needs to eliminate lack permanently and this led them to grow. However, the short term planning of National Bank of Kuwait focused solely on reforming the process, which did not do them much good except for some immediate growth

  • Planning: I undertook the step to plan a new strategy for a better customer service experience at Doha bank
  • Organizing: organized the drive single handily
  • Leading: lead a team of 20 diverse individuals
  • Coordinating: delegated the task and had to simply overlook the performance
  • Decision making is the ability of an employee to make decisions related to their work, independent of any bias or pressure. This is an extremely valued skill for any organization and is a sign of potential leadership as well. the crux in the analysis of the decision is understanding the problem first, then all the associated impact to it and eventually how the problem will be solved (Gray, 2016). For example, for a leader, the decision making comes to play when he or she has to decide to what kind of person is to be hired or the financial budgeting of the company.
  • Bounded rationality is the notion that in times of need and urgency, behaviour can change based on the urgency to get results. For example, employees want to achieve their goal, but in this, they cannot lose their temper and go irrational or unethical.
  • Following are the difference between programmed and un-programmed decision making:

Programmed decision making

un-programmed decision making

The manager is already aware of them or has made such decisions in the past as in the decisions requiring zero innovation and regular in nature like allotting work.

Completely new scenarios for the manager and require thinking, for example, creating a new team for specific work

The assistance of company policies and co-workers play a role in this and they ensure that they do their best to give inputs

These decisions are made almost independently without any external help. Since everything is new, no help is of any use.

Allows for streamline and consistent choices to be made (Richards-Gustafson, 2010)

The choices are completely off the trail and require time to fructify


  • Organizational culture is defined as the underlying belief and values that run an organization, emanating from its social and psychological constructs during the time of establishments and the kind of leadership. Organization culture is deeply influenced by the employees and factors such as diversity, social conduct, moral conduct and behaviour. For example, if the people of the organization are extremely happy and ethical, the organization culture to reflects it and this is how it shall remain unless a shift in employee attitude is observed.

 

  • The vision of an organization shows the future aims and goals it aims to achieve. The mission focuses on their general set of goal (often permanent) and the beliefs focus on the principles of the organization. For example, for Doha Bank, a vision statement is “to achieve the status of being a Qatari Insurance Company with a Global Focus and to Re-define Benchmarks in Service Standards”. Similarly, the mission statement states that "To be able to provide innovative and world-class Products & Services and become the ultimate choice of customers in Qatar and Gulf Markets".

 

  • Management skill mix is a mixture of all the definite leadership skill in a person which are required to manage the organization in an efficient and effective manner. For a leader, it is essential to have a lot of skills, interpersonal and domain both in order to successfully drive teams and get efficient results. this ensures that the people always look an up-to-the person and are always motivated by his or her presence. For example, a leader is not simply smart of intelligent, he has to be good in communication, building relationships and maintaining them as well.

 

  • Level 5 leaders display a powerful mixture of personal humility and indomitable will. These people have a lot of courage and will and want to win under any circumstance. However, these people display a lot of warmth and affection for their organization and are the most loyal ones as well. They can come in many personality packages, they are often self-effacing, quiet, reserved, and even shy. These are the kind of people who are responsible to take initiatives and work for the company. 

 

  • Following are the differences between a manager and a leader:

Manager

Leader

Managers are creators if goals to be achieved

Leaders are the people who are important for formulating the vision

Managers are important in formulating the strategies to interpret and put the vision into words

Leaders embrace innovation and disruptions, to bring the organization forward

Managers are simply concerned with getting the work done

Leaders are essential for everything that happens in the organization

Managers’ report to leaders

Leaders are often the top level executive

Managers are related to controlling the risk

Leaders take the risk

Managers are essential for building systems and process for the teams to work on (Arruda, 2016)

Leaders are important to foster relationships


  • PESTLE Analysis is used to judge the external environment of the company and how these factors affect the working of the company as well. these factors include the Political, Economic, Social, Technological, legal and environmental.

Qatar Airways is the national airlines of Qatar, established in 1970 and is one of the major airlines of the middle east.

Following is the example of a PESTLE Analysis of Qatar Airways:

  • Political: being the official carrier of the Qatar government, it has immense support from the government in any way it requires so. The airlines are preferred by the people of Qatar to travel into as well, and thus, enjoy great political immunity.
  • Economic: because of the protectionist policies of the middle east, the airline is seeing quite a trouble as various sanctions have been put by the Trump government on it. This will be trouble since it will slow down the airline's, as well as Qatar's economic growth due to the blockade by GCC nation.
  • Social: being a premium airline, it has a good customer following and loyalty, and people of all economic background prefer it since for a nominal price it offers luxury (to whatever extent possible). People are extremely supportive and thus, the growth of the airline is high.
  • Technological: Qatar Airways is one of the best airlines in the world which has adopted various technological changes to provide to its customer the best possible experience
  • Legal: there are certain regulations which the company itself has levied on its people such as not carrying or using laptops on the flight (for US Nationals only)
  • Environmental: the aircraft are of good quality which prevents carbon emission to the maximum possible limit
  • The financial performance of a business is of extreme importance, and managing finances requires a lot of time and skill. Once the business is operational, it is essential to understand that a lot of cost-cutting and budgeting has to be done. Budgeting is an essential task since it allows proper allocation of the financial resources which are essential to run the company. Business planning and budgeting further allow us to focus on understanding how to streamline the efforts and get the best possible benefits out of it as well. for example, during the year, in a company such as the Qatar Airways budgeting has to be done for various segments and departments such as the marketing, operations, sales and other miscellaneous areas. The main aim of an annual business plan is to set out the strategy and action plan for the business. Inclusive of a clear financial picture and strategy for the future.
  • The external environment of an organization is the environment or the factors which are beyond its control an often not of the organization such political, technological etc. these factors are at the macro level and are instrumental in the working of the organization. Task environment is concerned with the direct involvement of the consumer with organizational practices. The examples for the components of task environment are labour, customers and suppliers.
  • A conventional leader is someone who is regular in nature, believes in working with regular not so innovative method for the company. A transformational leader is someone with a vision and ability to take the risk (Surbhi, 2015).
  • Management science refers to the study of management as a scientific discipline and focuses on finding solutions to the problems using a comprehensive and logical approach. Artificial intelligence is the next big technological invention that is supposed to change the way business is conducted in the future. It will bring together an amalgamation of several different concepts of business and technology to ensure maximum results. for example, AI is being used in accountancy and forensic accountancy to catch frauds and prepare financial statements for the companies. While AI is extremely useful, it is also threatening the existing piece of our workforce and their possible employment in the future.
  • The systems approach to management was formulated with the view of bringing togetherness and cohesion within the organization by considering the organization to be an organic system which is made up of multiple subsystems. The underlying generalization made here is that the organization is interdependent and cannot work solely by the discretion of only one department. The purpose of this approach was to bring in cohesion and unity in the organization, along with diversifying the working and streamlining it to attain maximum efficiency as well.
  • Theory X and Theory Y as developed in 1960 by McGregor in sync with behavioural psychology; how employees behave and act under certain circumstances. Both these theories focus on people and the leadership style they best deserve based on their behaviour. Theory X states that naturally inert and lazy people who often do not perform well need to be set right with a tough leader and penalty so that they perform better. Conversely, Theory Y states that good result oriented and hard-working employees are the ones who deserve special treatment and motivation from an exceptionally good leader. Here, the focus also relies on the leadership style associated with the two kinds of people and how they are to be treated subsequently.
  • An organizational structure is a typically hierarchical arrangement of lines of authority. It determines how the roles, power and responsibilities are assigned, and how the work process flows among different management levels. Administrative management is management which focuses on structural working under a set hierarchy to be followed till the end. The flow of information is vertical and so is the decision making as well. often times, the top-down approach is best suited here and so is the conduct of such organizations. For example, Doha Bank follows such a structure since it puts into consideration its stakeholders first and then the following hierarchies set.

Fig 1: Organization Structure (Karell, 2015)

 

  • Scientific management is a set of processes which deal in managing the work-force in a more structured and scientific manner to get better results. it includes activities such as managing the employees, taking care of the training needs, recruitment processes and much more. The entire base of scientific management is to de-clutter the process and work in a systematic manner to increase the required efficiency and determine the "one best way" to do so and save time and resources.
  • Both these business terms are related to the growth of the organization and how it plans to achieve it. There are two very important components in an organization: stakeholder and shareholders. Stakeholders are the people who are associated with the organization in one way or the other (they can be internal or external); such as the employees, the suppliers, the customers or the investors. These are the people who are more concerned about the company's wealth. The stakeholder value focuses on increasing the value, cutting the cost and aiming for maximum satisfaction of all the stakeholders.

Shareholders, on the other hand, are the people who are concerned only with the financial stability of the company. These are the investors who invest heavily in the company and look for only profits. The shareholder value implies that the ultimate measure of a company's success is the extent to which it enriches shareholders

  • Capitalism is an economic concept defined as an ecosystem where there is private ownership of capital goods by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market. The middle eastern economy has faced a growing capitalistic economy where a few wealthy people and originated groups are now taking charge of the country’s economy to build more wealth over the existing wealth the country has (Stephens, 2019). This ensures a better economic development for the country and a more controlled flow of cash into and out of the system.
  • The industrial revolution in the Middle East has been an economic event in itself for long now. From a spiralling economy to wealth creation increased by 200%, the industrial revolution has been responsible for the current state of development of the countries(Ünay, 2017). Despite all the socio-political tension that the countries go through, the rate of growth has gone up, and the results are quite evident. Right from creating jobs to rise in the number of imports and exports, the middle eastern countries have been enjoying a lot of comforts amidst the growth of industries such as the construction, tourism and automobile.

References

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Deshpande, N. B. (2018). The Key Advantages and Disadvantages of Delegation of Authority. Retrieved from https://workspirited.com/delegation-of-authority-advantages-disadvantages

Fernandez, A. (2015). The challenges facing CEOs in the Middle East. Retrieved from https://www.arabianbusiness.com/the-challenges-facing-ceos-in-middle-east-604700.html

Gray, K. D. (2016). 5 Steps to Good Decision Making. Retrieved from https://www.corporatewellnessmagazine.com/article/5-steps-to-good-decision-making

J.D, A. J. (2016). The Disadvantages of Delegation in Management. Retrieved from https://smallbusiness.chron.com/disadvantages-delegation-management-33920.html

Krey, M. (2017). Forms Of Business Organization. Retrieved from https://www.investopedia.com/walkthrough/corporate-finance/1/forms-business-organizations.aspx

Karell, D. (2015). 4 Types of Organizational Structures. Retrieved from https://online.pointpark.edu/business/types-of-organizational-structures/

Looney, R. (2011). Globalization and its impact on the Middle East. Calhoun Journal.

Main, G. (2012). Three Levels of Management: Top, Middle & Lower. Retrieved from https://studiousguy.com/three-levels-of-management/

Petch, N. (2017). The Top Five Challenges Of Doing Business In Dubai. Retrieved from https://www.entrepreneur.com/article/290484

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