The Arab Cultural Values and Influences on Leadership and Management Practices - Literature review Example

Culture, Values of GCC and Leadership

Many countries do not practice the same management and leadership countries; they share different managerial values due to the different cultural beliefs instilled in them since childhood (Ali & Al-Shakis, 1985, p. 135-151). According to Hofstede (2001), national is “the collective programming of the mind that distinguishes the members of one group or category of people from each other” (p. 9). Thus, national culture is defined as patterned mannerisms of thinking, reacting, and feeling; obtained mainly by symbols, resulting to the distinctive achievements of human clusters including their attached values and traditions. National culture clearly explains how nations differ from each other in the negation process, style and leadership practices.

Culture is a principal aspect that affects the business environment and society in the Arab World (Al-Faleh, 1987, p. 19-33). Culture is a way of thinking and feeling, which are acquired and transmitted through symbols that form the distinctive achievements of humans and their attached values (Hofstede, 2001, p. 9). In the past few decades, culture has been defined as the beliefs, customs and norms that guide a particular group in society (Adler & Kwon, 2002, p.17-40).

Hofstede’s cultural dimension with the focus on the Arab and GCC countries scores

According to Hofstede (1980), national culture has been categorized into four dimensions: Power Distance, Individualism versus Collectivism, Uncertainty Avoidance and Masculinity versus Femininity (p.1). In regard to Hofstede’s cultural dimensions, results on how the Gulf council Countries scored are high in power distance index, moderate in masculinity, low in individualism and high in uncertainty avoidance. These results differ when compared to the Western Countries, in that they scored low in uncertainty avoidance as they are more exposed and due to their advancement in technology. The western Countries also scored high in individualism, low in power distance index. For example, we would expect that the Arab leaders are more collectivist oriented, have a large power distance from their subordinates and feminine like in nature while Western leaders are more individualistic oriented, prefer equality in the workplace and more masculine. Evidence to support the results in the Arab Countries is the empirical studies done by Al-Faleh (1987, p. 19-33) and Abbas, Abdul & Krish (1997, p. 629-637). These studies prove that the leaders in GCC nations live in a society where family and friendship are influential factors in the functioning of groups and organization. This evidently shows that collectivism versus individualism plays are a significant role in the leadership style as the Arabs rely on family and friendship ties to get things done in the organization. In the case of power distance index, there is a suggestion of social distance between the superiors and subordinates. Moreover, Al-Faleh (1987, p. 19-33) and Abbas, Abdul & Krish (1997, p. 629-637) have proved that cultural dimensions developed by Hofstede, namely power distance, uncertainty avoidance, masculinity and individualism do influence the daily life and work of Arab Culture. These factors impact the management and leadership practice in the Arabic culture positively in the sense that strong relations are established and wealth acquired is kept within.

Power Distance Index

Power distance index can be described as the extent in which the subordinates acceptance and expect in the unequal distribution of resources within an organization (Hofstede, 1980, p.15). In high power distance cultures, the subordinates follow their superiors without question. In low power distance cultures, the children are brought up to voice out the opinions calling in to question the directive they have been called to carry out (Søndergaard & Hofstede, 2001, p. 243-246). Arab traditions recognize status hierarchy; explaining why decision making is left entirely to the superiors without the subordinates questioning them. One of the aspects in which the United Arab Emirates differs from the United States is the way each society handles inequality (Adel, 2001, p. 27-53). For instance, physical capacity, wealth, power, and status may or may not go together. For example, athletes may not hold political power. According to Leadership Cultural Values of the United Emirates, there are some underlying factors that to may affect the power index such as the size of a population, advancement in technology and level of education as well as wealth (Abbas & Schaupp, 1992, p.19-26; Rice & Mahmoud, 1996, p. 715-730). For example, low power distance countries can move to high power distance through the advancement of technology and provision of quality education.

Individualism versus Collectivism Index (IDV)

Individualism is the tendency to look after one’s interests and his immediate family only. Collectivism is the tendency for one to be in a group and to take care of each other (Hofstede, 1980, p.18).Arabs are collectivist in that they tend to be driven by relationships rather than the task at hand. Moreover, those with the collectivist nature tend to take into account the group feelings toward the situation. Kabasakal & Bodur (2002, p.40-54) mentioned that they prioritize the group in the workplace. For example, they would hire new employees who are already related to those currently working for them. Though Islam is against tribalism, Abbas (1996, p. 4-21), argues that the Arabs have skillfully blended tribal values with the Islamic to the extent that one cannot differentiate between the two (Abuznaid, 2009, 278-288). This tribalism they practice tends to favor them as the strong relations they have formed make them loyal to one another as well as making their organization networked (Abbas, 1998, p. 1-20). This is further proven that those in high ranks in the organization have a close relation to the board or owners of the company. Hofstede (1994, p.4-13) indicated that individualism prevails in developed and Western countries while collectivism is more evident in developing and Eastern countries. This is because industrialization reinforces individualism (Ali, 1993, p. 53-73).

Uncertainty avoidance

Another factor that affects the leadership style are uncertainty avoidance where people are not able to cope with ambiguous situations and masculinity, where the Arabs tend to nurture and maintain stable relationships (Ali & Azim, 1996, p. 165-172). Uncertainty avoidance prevails among the Arabs, UAE, and Kuwait as they do like jumping into any situation without having a predetermined outcome and result (Abbas, 1997, p. 629-637).

Values and Social Norms That Would Have Impact on Leadership Style and Practice

In the Arab Society, culture and social norm in the daily life and the workplace are mainly influenced by Islam, which is guided by the Quran (Hala, 2004, p. 123-145). The ethical guidelines that are mentioned in the Holy Quran govern one's interaction with daily life and work (Robertson et al., 2002, p. 583-601). Some guidelines include: being honest and ready to help: the verse states Prophet Mohamed (PHUB) “should forgive, pray for them and take consult in them in times of public concern” (3:159). Apart from the Islam work ethic, there are also factors such as individualism versus collectivism, Wasta concept, nepotism, power distance index, attitude, and Consultative style. These are among the six components of culture.

Collectivism versus Individualism Concept

Individualism, in the Arabic culture, may be viewed as a context towards a particular group; tribe extended family or religious group. We can see plainly that an individual is more focused on the set target that his employer has set him out to do; he tries to match his interests with that of the owner. None the less, he may be more efficient and his rewarded based on his sole performance. According to Hofstede’s cultural dimensions, Arabs tend to be more loyal therefore unknowingly practice collectivism (At-Twaijri & Al-Muhaiza, 1996, p. 121-131). Individualism hence is seldom practiced as the collectivists feel they are stronger together as a united front. Collectivist cultures according to when an executive Arab says "Yes" may tend to be influenced by the group before making and decision (Al Suwaidi, 2008, p. 19). The collectivist orientation the Arabs portray is a good quality among leaders. They also tend to hire a relative of the staff; practicing nepotism which is discussed below.

Wasta Concept

Wasta may be defined as intercession or meditation according to Taming of Wasta to Achieve Development. The concept can be categorized as intermediary. Wasta is where a third party is hired by a client to act as a proxy and meditation Wasta where a mediator is put in charge of solving the issue between the disputing parties (Hutchings & Weir, 2006, p. 141-156). The primary Wasta channel is the family; where in the case the family knows an influential person their kin may be able to score a job opportunity (Al-Ramahi, 2008, p. 35-62). The mediator would have to follow then up on the client's habits in the workplace so as to avoid slacks. The Wasta Concept Model influences the management practices in that the inter-mediator would have to ensure that he secured you a job then follow up with a promotion and all the perks that come along with it. The different applications of Wasta are used in decision making. The intercessory Wasta has been cited as ineffective in government systems according to Taming of Wasta to achieve development; remedies from the western sides-reforming the administrative structures have not stemmed the Wasta tide (Cunningham et al., 1994, p.29-41; Al-Hegelan & Palmer, 1985, p. 345-378).

Nepotism

This is observed in the collectivist culture where the organization is likely to employ family members of those who are already working for them. The basis of this belief is that the person is viewed as a member of a group so they would expect disappointment to the standards they have set. For example, Rice (1999, p. 345-358.) states that they are willing to hire a member of the family to fill in the position as seen in most Arab organization. The executives view the organization as a family unity and prove that they value loyalty over efficiency. In most Arabic countries, one can easily see that companies and organizations are kept within the family; where the board is relatives as well as the staff (Neal, 2010, p. 242-266). Stock profits are just enjoyed with the family. Nepotism though a vice cultivates strong relations in the organization.

Power Distance Index (PDI)

Power distance index can be described as the measure which the subordinates acceptance and expect in the unequal distribution of resources within an organization (Hostfede, 1980, p.124). Power Distance can be categorized as high or low. In high power cultures, individuals respect their seniors without question whereas, in small power distance cultures, individuals may call to ask what their superiors say. Subordinates may feel comfortable with the situation they are in and won't call into question the unfairness in the distribution because they do not want to be in the unpredicted situation. According to Leadership Cultural Values of the United Emirates, there are some underlying factors that to may affect the power index such as the size of a population, advancement in technology and level of education as well as wealth (Mahmoud, 1987, p. 19-33).

Attitudes

Attitude towards risk in Arabic culture scores lowly unless the move is predetermined; do not take risks unless they are able to predict the result. This falls in Hofstede's (1980, p.1) dimension, uncertainty avoidance. Attitude towards time which is punctuality is that less concern as well as deadlines that are work-related. Time to them is not of the essence. Also, Arabs have an attitude towards manual labor; they deem an educated person is worthy of a clerical work as opposed to the latter (Ali, 1995, p. 7-30).In this case, they should see work as a means to an end and work to better their circumstances. Masculinity versus Feminism is also perceived as an attitude as women are viewed in low regards. According to Hofstede, typical masculinity values are assertiveness, aggressiveness and are action-oriented. Feminists, on the other hand, are more focused on the nurturing and maintaining of stable relations (Hofstede, 1980, p.589).

Consultative style

Consultation has a significant role in decision making in Arab culture. Leaders consult other people not with the aim of improving the quality of the decision but to boost their egos. Moreover, managers have shown a preference for the consultative style for sociological and psychological reasons (Khakhar & Rammal, 2013, p. 578-590). Islam creates a consultative environment termed as Shura. The Quran also noted that Prophet Mohamed (PHUB, 3:159) takes consult in decision making. The Arab tribal culture also lays emphasis on consultation, where the work of a sheik is to arbitrate and not impose. Thus explaining why Arabs take preference meeting in a demonstration of influence by Islam culture in all aspects of their life and work (Feghali, 1997, p. 345-378).To improve the leadership and management practices, the traditional Arab environment should practice consultation.