Research Articles Base: Introduction To The United Arab Emirates

Research Paper Introduction to the United Arab Emirates

Table of Content     Introduction to The United Arab Emirates. 3 Cultural Dimensions and Analysis. 4 Power Distance. 4 Individualism vs. Collectivism.. 5 Masculinity Vs Felinity. 6 Uncertainty Avoidance. 6 High Context Culture. 6 Polychromic. 7 Cross Cultural communication. 7 Negotiating in the I.E.. 9 Negotiating Style and Building the Relationship. 9 The Stages of Negotiation and Key Tips. 10 Teams in United Arab Emirates. 13 Leadership. 13 Persuasion. 13 Credibility. 14 Office Relations. 14 Motivation. 15 Expatriates in the I.E.. 15 Current Expatriate Situation. 15 Why do expatriates fail in USE?. 17 Ethical Issues In the USE. 18 Reference. 21     Introduction to The United Arab Emirates The United Arab Emirates is a federation of Arab monarchies including In 1971 the federations formed when it achieved independence from Great Britain and now consists of 4.32 Million people with 80% of the population being expatriates[1]. The U.A.E is bordered by Saudi Arabia and Oman and is made up of mostly desert. Abu Dhabi has the highest GDP of the Emirates at approximately US3 Billion and 40% of the total population[2]. The second largest Emirate is Dubai which accounts for one quarter of the GDP and is the center for commerce, transportation, tourism and finance. Dubai has taken a lead in trade by establishing history, relationships and developing into a pro-business environment allowing many western firms to enter the region with little restrictions and government controls. It is imperative to be familiar with the Muslims’ prayers times, which tend to differ by countries, due to the fact that the prayers times follow the sun. Hence, meetings and gathering should be schedule outside those times. Furthermore, working days in the Middle East region differ from those around the world. Working / Business week starts on a Saturday and ends on a Thursday. Reason for this is, so that local can participate in the compulsory Friday Prayers, which takes place mid day. Extensive development and growth over the past three decades has increased the per capita income of the country to one of the world highest at US,000.[3] This expansion has been driven by a booming oil sector and a flood of expatriate labor which has legitimized the non-oil sector and aided in its development and competitive nature. Although the U.A.E has taken a pro western view of the business world there are many traditions and cultural differences to be aware of. The country is 96% Muslim and as such these belief and values cross over into business relations[4]. The Royal Families are highly respected in the society and hold the final say in all business transactions that happen outside of the free trade zones. Cultural intelligence and cultural awareness are extremely important traits to possess when dealing in the United Arab Emirates and values and norms should be studied extensively to avoid offending your business partners. Cultural Dimensions and Analysis Hofstadter’s cultural dimensions provide information of significance for undertaking business ventures in the United Arab Emirates. These dimensions are implemented to maintain a better understanding of the underlying Arabic culture that drives the values of the United Arab Emirates. Power Distance “Power Distance index (PD) is the degree to which power differences are accepted and sanctioned by a society.”[5] Hosted scored U.A.E an 80 on power distance thus showing a need for hierarchical structure and the belief that everyone has a place in society.[6] Examples of this power distance are <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Family hierarchy within the ruling families. The President of the United Arab Emirates is the head of the Al  family of [7]</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Can not do business in the United Arab Emirates without the partnership of a member of one of the 7 ruling families.</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Seniority, Family and Age are greatly valued within the culture. Therefore must give gifts to senior family members as a sign of respect.</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Privileges are expected for high status and high powered individuals. </li> </ul> Individualism vs Collectivism “Individualism (IDA) is the degree to which individual decision making and action are accepted and encouraged by the society.”[8] Hosted scored the United Arab Emirates a 38[9]. This demonstrates a greater good mentality and collectivist society that focuses on long term group commitment.[10] Above all the Emirates are Collectivist. High value is put on family, honor and hospitality. Examples of Collectivism are: <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Negotiations revolve around the relationship and fit of the two business.</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Once male Emirates reach the age of majority they are provided with a new car and a yearly salary by the government.</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Education is paid for by the government if you are an Emirate either male or female.</li> </ul> Masculinity Vs Felinity “Masculinity is the degree to which traditional male values are important to society.”[11] Hosted rated the United Arab Emirates as 52[12] showing that due to the Muslim culture women are limited. However the culture of the country is becoming more westernized. Women have begun to take leadership roles and are highly educated. Examples of Masculinity are: <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="color: black; text-align: justify; line-height: 200%"> Women and Men are separated for education. Although they do learn the exact same material and take equal tests.</li> <li class="MsoNormal" style="color: black; text-align: justify; line-height: 200%"> A single women must be accompanied by a male family member in public</li> <li class="MsoNormal" style="color: black; text-align: justify; line-height: 200%"> Women are not welcome in business negotiations.</li> </ul> Uncertainty Avoidance “The degree to which a society is willing to accept and deal with uncertainty.”[13] The Muslim ideals have crossed over through rules, laws and policies which reduce the uncertainty of the society. The United Arab Emirates score a 68[14] on Hofstadter’s Dimensions, although this score is low on acceptance of uncertainty, it is changing as western business floods into the country. Examples of Uncertainty Avoidance are: <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="color: black; text-align: justify; line-height: 200%"> The strict social and religious laws of the Muslim Faith to direct behavior. </li> <li class="MsoNormal" style="color: black; text-align: justify; line-height: 200%"> Family loyalty above all else to ensure security.</li> </ul> High Context Culture The United Arab Emirates is a high context culture with their style of communication involving a lot of body language, non verbal signals and hidden meanings. The Arabs rely a lot on implicit meaning to help save face. Being vague is a form of politeness and can often be misinterpreted. [15]  Polychromic Emirates are polychromic and treat time as an infinite resource. They manage many things simultaneously and will always see a friend, family member or coworker even when no appointment was made. When meeting if the exchange is going well the time will be extended and overlap with other arrangements. However is the meeting is going poorly many managers will reschedule and cut the time short in order to revisit the issue and save face. [16] National culture of the United Arab Emirates is derived from many variables. As a Middle Eastern country is it extremely business friendly and looking towards to west to sustain its economic development. The Islamic religion is very prevalent in the societies values and norms, however traditional and modernism are blending to bring slow change to the culture.  There is an extremely tolerant and cosmopolitan feeling emerging and many expatriates practice their own traditional cultural activities without persecution. Cross Cultural communication Communication in the USE is extremely unique compared with most western ideas of interaction. Compared with most western cultures, the USE is very high context culture. Communication systems are so complex and diversified that they rely heavily on body language or non-verbal signs, intonations, idioms, euphemisms, anecdotes, and hidden meanings to the extent that the spoken word is simply one of several ways to communicate.[17] Gestures plays a significant role in the Middle East region as Arabians are known to be touchy even among men. In both team and business situations, men hold hands to show great friendship and this is normal in the Arabian Culture. Something to remember when communicating with a high context culture such as the USE is that while they may seem to be evasive, vague or slow, a low context western business man may appear to the Arab as being impersonal, impatient and rude.[18] This is why an understanding of the customs of communication between the cultures is so important. Some general guidelines and rules to follow when doing business in the USE are as follows[19]; · Do not get too wrapped up in what you say, rather concentrate on what is being understood by the other person. · Be prepared to repeat yourself and visit the same point a number of times. If you have not been understood, avoid using the same wording or phrases when you repeat. · Get used to ‘offshore English’ rather than ‘traditional English’, use simple rather than sophisticated words. · Give examples and relate to case histories when trying to explain something rather than using generalizations, avoid idioms or euphemisms. · As high context cultures tend to be holistic in their approach to problem solving, make the first meeting a general one and don’t expect to get much business done. After that, try and schedule several short meetings rather than one long one to control the information exchange to an optimum level. · Listen very carefully to the other person with both your ears and eyes. If their body language conflicts with the spoken word, it is usually better to believe the body language · When it comes to communication for the purpose of negotiation, you must remember that the USE, like most collectivist and high context cultures, are very good negotiators since they are patient and persistent. Be prepared for them to try and wear you down and do not get discouraged if an agreement is not met within the first few meetings. Negotiating in the I.E.. Across cultures negotiating standards, techniques and procedures differ greatly and have been acknowledged as the most challenging part of international business interaction. Due to the large oil deposits, booming economies and high growth potential, the ability to negotiate effectively with Emirates has become an integral part of successful business integration within the country. With business practices steeped in religious ideology, western cultures face a number of hurtles to overcome, however proper training and cultural awareness can help companies avoid misshape and common blunders. Teams in United Arab Emirates The Hofstadter’s Cultural Dimension has shown that the people of United Arab Emirates (USE) are Collectivist and teamwork has always been regarded as a vital process to success. It is fundamental for everyone in the team to understand the objective and goals for forming the teams. More importantly due to the High Power Distance in their culture, it is crucial to recognize the top authorities of the group, and of course get to know the sub dominates. Leadership There is a clear line drawn between sub dominates and managers within the Arab companies. The ones with the most authority are highly respected and usually age and family background plays quite a significant role on the Leadership Status. This leadership culture can be observed not only in the business world but also in the public society, such as the government industry and general families. Arabian managers are said to behave like fathers and protectors of their sub dominates, hence the patriarchal style of leadership. Even though, research shows that Arabian culture is not so much of an individualism culture, mangers tend to view organisational problems as subjective, so when mangers have solutions for the problems, they have the tendency of being firm with their decision. Persuasion A key value in the Arabian culture is not to lose face, similar to those values in the Asian Region. This is a very important value to keep in mind and practise. Putting pressure on an Arabian counterpart will only place them in an uncomfortable position, this is essential also when dealing with your sub dominates. Since the Middle East culture may be considered as a Particularise culture, friendship and respect are highly valued by Arabians. Hence, family and close relationship would influence many decision making. Credibility Emeriti are a high context communication society. It is very important for the team to note everything thing that happens in a meeting, useful for future reference as well. At the team introduction stage, handing business cards is very common but not necessary; ensure that both the Arabic and English version of the information is printed on the card and always present it in the left hand. When engaging in team task, English is the business language spoken, but if you can communicate in the Arabic language with them, you are at an advantage. Emirate prefer to have a face – to – face meeting, regardless of it being personal or business. In addition, similarly to the Asian culture, building the relationship plays a key role before any party can engage in business deals. Motivation A famous psychologist Abraham Maslow came up with a motivation framework, which covers all area of basic needs of an individual or society which would satisfy them. The Maslow’s Hierarchy of Needs consists of five different levels of needs, from bottom (priority) to top, the Physiology Needs, Safety Needs, Belonging Needs, Esteems Needs and the Self-actualisation Need. Many might argue that this framework is universal; Research shows that Emirate managers place Self-actualisation Need in the middle of the pyramid while placing the Belonging Needs, Esteems Need at the top, and others remind the same. The Emirates value maintenance roles that impact organizational behaviour and respond greatly to socioemotional rewards such as a pat on the back and praise. The individual is working for the benefit of the family and relatives that they support and all monetary or material rewards should be geared towards them.   Credit:ivythesis.typepad.com

Research Paper Introduction to the United Arab Emirates

Table of Content Introduction to The United Arab Emirates . 3 Cultural Dimensions and Analysis . 4 Power Distance . 4 ...