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BZU, BAHADUR SUB-CAMPUSLAYYAH
DEPARTMENT OF BUSINESS ADMINISTRATION
MBA 2009-12, SEMESTER 7
COMPARATIVE MANAGEMENT
MANAGEMENT INMANAGEMENT IN
OMANOMANSUBMITTED TO: Mr. HASHIM ZAMEER
SUBMITTED BY: Muhammad safdar(MB-!-"#$
DECEMER 14, 2012
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Acknowledgeme
ntI am %&r' ha)*fu+ A+mh' A++ah /h has %&) m& 0sdm
a)d 10&r +&ar) a)d s&&*. A++ 1ras&s a)d admra)s A+mh' A++ah 0h s h& 2r&ar f &%&r'h).
Tha)*s a+s Ha3ra Muhammad (PBUH$ 0h s sur2& f*)0+&d& a)d +&ad&rsh1 fr a++ ma)*)d fr&%&r.
I am a+s %&r' ha)*fu+ m' 4&+%&d &a2h&r Mr. Hashm Zam&&r,0h s 1rm1) us 0ards 1rf&ss)a+sm. T)s f ha)*s fr
hs %a+ua4+& su11r a)d 2)ss&) uda)2&.
Muhammad
safdar
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DEDICATION
ThsR&1r
IsD&d2a&d
T
OUR DEAR PARE5TS
/h ar& a+0a's a sur2& f +%&, a6&2) a)d )s1ra) fr us.
/hs& +%& a)d 1ra'&rs a+0a's a22m1a)&d us a)d ud& us +*&a sh)) sar 0h&)&%&r 0& 0&r& ) dar*)&ss a)d &)a4+& us
r&a2h hs sa&.
OMAN
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Histor
Islam had reached Oman within the prophet Muhammad's lifetime. By the middle of the
eighth century C.E., Omanis were practicing a unique brand of the faith, Ibadhism, which
remains a maority sect only in Oman. Ibadhism has been characteri!ed as "moderate
conser#atism," with tenets that are a mi$ture of both austerity and tolerance.
%he &ortuguese occupied Muscat for a ()*year period +)-/(-0, arri#ing a
decade after 1asco da 2ama disco#ered the seaway to India. In need of an outpost to
protect their sea lanes, the Europeans built up and fortified the city, where remnants of
their colonial architectural style still remain.
%he Ottomans dro#e out the &ortuguese, but were pushed out themsel#es about a
century later +3(0 by the leader of a 4emeni tribe, who began the current line of ruling
sultans. 5fter one last, brief in#asion a few years later by &ersia, Oman was free for good
of foreign*occupying powers.
Isolated from their 5rab neighbors by the desert, the Omanis became an economic
power in the early -))s, largely by using their position on the Indian Ocean and
seafaring 6nowledge gained from the &ortuguese to gain access to foreign lands. %hey
too6 control of the coasts of present*day Iran and &a6istan, coloni!ed 7an!ibar and
8enyan seaports, brought bac6 ensla#ed 5fricans, and sent boats trading as far as theMalay &eninsula.
5t this time, the country became 6nown as Muscat and Oman9, denoting two centers of
power, not ust the capital and the interior but also the sultan and the imam, the
Ibadhist spiritual leader.
%he British slowly brought about a collapse of Muscat and Oman's "empire" by the end of
the nineteenth century without use of force. %hrough gradual encroachment on its
o#erseas holdings economically and politically, they caused Oman to retreat to its
homeland. In time Britain held such sway in Muscat and Oman itself that it became in
effect, and later in fact, a British protectorate.
:a#ing control of the country's military, the British helped subdue rebel tribesmen in the
;)s, dri#ing most into 4emen. But the sultan ran a repressi#e regime, with laws
forbidding numerous acti#ities, including the building and e#en repair of his subects'
own homes without permission. In ;3), almost certainly with British bac6ing, he was
o#erthrown by his son, the present ruler,
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by forging a
treaty with 4emen. Oman's oil re#enue has been consistently in#ested in the national
infrastructure, particularly roads, schools, hospitals, and utilities. More than e#er, the
country is poised to ta6e ad#antage of its strategic trade location on the Indian Ocean
and the &ersian 2ulf to further its economic growth and role in the world.
E$cept for those who tra#el to remote Middle East locales, the country has seldom been
in the public eye other than for the use of its military bases by ?.=. forces in recent
years. 5merican and British bombing raids were launched in ;; from Oman against
Iraq in the 2ulf @ar. 5 decade later, ?.=. forces stationed there were in#ol#ed in raids
against 5fghanistan and Osama bin Aaden.
C!"t!r#
Even though Oman is a modern country, western influences are quite restricted. The !adi
form of slam is also conservative li"e #unni slam and #hi$a slam. A!out %&' of Oman is
Muslim. As is the case with most Middle Eastern countries, alcohol is only a#ailable in some
hotels and few restaurants.
Although Ara!ic is Oman$s official language, there are native s(ea"ers of different dialects, as
well as )alochi, or offshoots of #outhern Ara!ian, a #emitic language only distantly related
to Ara!ic. #wahili is also widely s(o"en in the country due to the historical relations !etween
Oman and *an+i!ar. The dominant indigenous language is a dialect of Ara!ic and the country
has also ado(ted English as a second language. Almost all signs and writings a((ear in !oth
Ara!ic and English
Oman is famous for its "hanar "nives, which are curved daggers worn during holidays as
(art of ceremonial dress. Today traditional clothing is worn !y most Omani men. They wear
an an"le-length, collarless ro!e called a dishdasha that !uttons at the nec" with a tassel
hanging down. Traditionally this tassel would !e di((ed in (erfume. Today the tassel is
merely a traditional (art of the dishdasha.
omen wear hia! and a!aya. #ome women cover their faces and hands, !ut most do not.
The a!aya is a traditional dress and it is current having different styles. The #ultan has
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for!idden the covering of faces in (u!lic office. On holidays, such as Eid, the women wear
traditional dress, which is often very !rightly colored and consists of a mid-calf length tunic
over (ants.
A very im(ortant (art of Omani culture is hos(itality. f invited into an Omani house, a visitor
is li"ely to !e greeted with a !owl of dates, qahwa /coffee with cardamom - standard
Ara!ic 0000and fruit. The coffee is served fairly wea" in a small cu(, which should !e
sha"en after three servings to show that you have finished. The dates are in lieu of sugar.
2alwa and other sweets are often given at cele!rations such as Eids.
The Omani culture is stee(ed in the religion of slam. Oman has develo(ed its own ty(e of
slam, "nown as !adhism. There are !oth #unni and #hia Muslims in Oman. ith this inmind the slam month of fasting, amadan and other slamic festivities are very im(ortant
events in Omani culture
National Dress
4or men the national dress is an an"le-length, collarless gown with long sleeves called the
dishdasha. There are several accesories including a mu++ar /a ty(e of tur!an, an assa /a caneor stic" and a 5hanar.The 5hanar is a ceremonial curved dagger that is a sym!ol of male
elegance and are worn at formal events and holidays.
The Dhow
An enduring sym!ol of Oman is the traditional 6how. These dailing shi(s have !een around
for several centuries, there is evidence of an Omani 6how reaching 7hina in the 8th 7entury.
the dhows are still in o(eration (rimarily used for fishing, e9(orting and tourism. The main
(orts of #ohar, #ur, #alalah and Muscat all maintain a large fleet. #ur also has an e9stensive
dhow !uilding industry.
E$o%o&
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7urrency Omani ial /:, OM4iscal year 7alendar year 7entral )an" The 7entral )an" Of Oman
#toc" Mar"et Muscat #toc" Mar"et
M'$ro-#$o%o&i$ tr#%(
This is a chart of trend of gross domestic (roduct of Oman at mar"et (rices estimated !y the
nternational Monetary 4und with figures in millions of Omani ials.
;ear # 6ollar E9change nflation nde9 /?@@@1@@
1B8@ ?,1B@ @.3C Omani ials 8@
1B8& 3,&B1 @.3C Omani ials %D
1BB@ C,CB3 @.38 Omani ials B&
1BB& &,3@% @.38 Omani ials 1@@
?@@@ %,D3B @.38 Omani ials 1@@
?@@& 11,DD@ @.38 Omani ials 1@1
4or (urchasing (ower (arity com(arisons, the ># 6ollar is e9changed at @.?B Omani ials
only.
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B#i%) ' M'%')#r i% O&'%
The !usiness set u( in Oman is e9tremely conservative and successful cross culturalmanagement will understand the im(ortance of maintaining a degree of formality. t is
common to hire a local agent to act as an intermediary. This (erson can arrange a((ointments
and ma"e the a((ro(riate introductions. The 7ham!er of 7ommerce or the commercial
attach of your countryFs em!assy in Oman can often recommend (eo(le to fill this im(ortant
role. Although a local agent is not technically required to do !usiness, it is often
advantageous, es(ecially is you do not have a large local (resence.
#ince Omanis (refer to do !usiness with those with whom they have a (ersonal relationshi(,a letter of introduction from someone they "now facilitates their trust.
Omanis do not require as much (ersonal s(ace as most western cultures. As such, they will
stand close to you while conversing and you may feel as if your (ersonal s(ace has !een
violated.
Omanis are e9tremely hos(ita!le and enoy hosting foreign guests. At the same time, they
e9(ect you to understand the rules of their country and o!ey them. This includes dressing
a((ro(riately and res(ecting (rayer time.
The Role of a Manager
7ross cultural management will !e more effective with an understanding of the individual
roles and e9isting hierarchy. Em(loyees do not question the decisions that have !een reached.
Managers or those in a (osition to do so will ma"e decisions, while in general their
su!ordinates will wait to !e told what to do.
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Approach to Change
OmanFs intercultural com(etence and readiness for ris" is low. Oman is a low ris" and low
change-tolerant culture. New (roects will !e carefully analy+ed to assure that whatever ris"
they re(resent is thoroughly understood and addressed.
n order for change to ta"e hold, the idea needs to !e (erceived as good for the grou( and !e
acce(ted !y the grou(. ntercultural sensitivity is im(ortant with OmanFs attitude toward ris"
dramatically im(acted !y the negative ramifications of failure on !oth the individual and the
grou(.
Approach to Time and Priorities
7ross cultural understanding is im(ortant when reviewing the a((roach to timelines. Omanis
will not want to u(set others in order to force adherence to a deadline.
Things generally ta"e longer than e9(ected since meetings are frequently interru(ted and
several meetings may !e required to do what could !e handled !y a (hone call at home.hen
wor"ing with (eo(le from Oman, itFs advisa!le to reinforce the im(ortance of the agreed-
u(on deadline.
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Boss or Team Player?
f you are wor"ing in Oman, it is im(ortant to remem!er that honour and re(utation (lay an
im(ortant role and so some cross cultural sensitivity will !e required. The ris"!ecomes am(lified in a team or colla!orative setting. f you would li"e to encourage
(artici(ation it is im(ortant first to clearly esta!lish a non-threatening wor"
environment and communicate fully that team-mem!er (artici(ation is desired.
Communication and Negotiation Styles
6ecisions are reached slowly and (atience is essential for effective cross cultural
management. f you try to rush things, you could ris" your !usiness relationshi(. Omanis areevent rather than time-driven. The actual meeting is more im(ortant than the timeliness or
outcome. Omanis are s"illed negotiators. They often see !argaining as entertainment.
Negotiation generally follows a GwinHloseG attitude. )e (re(ared to come down in !oth (rice
and terms. 6o not set your initial (rice so high that the ending (rice ma"es it a((arent that
you did not e9(ect to settle at that.
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Or)'%i*'tio%'" st"# o+ OMAN
N6O ON OMAN I )y Mohammed al )alushi I Management is all a!out managingthings, events, tas"s, and (eo(le. Management is !othJ a science and an art. hether you try
to manage (eo(le at your office or to manage your "ids at your home, you are a((lying the
GArtG segment of management. The management of functions, cele!rations, (icnics,
marriages and festivals is also an art. On the other hand, if you try to manage a software,
com(uters, cars, 6K6 (layers, TKs, mo!ile (hones and any other electronic items, it means
you are a((lying the GscienceG segment of management.
>nderstanding the management of finance was always vague to me, s(ecially the "nowledge
of how funds move and transit from hand to hand for the !usiness (ur(ose. was a!le to
understand the conce(t only when my grandmother once told me thatL Gf you have money,
never tightly hold it !y hands otherwise it will !ecome idle and useless, ma"e it mova!le. f
you have money in your hands never o(en hands com(letely otherwise funds will fly li"e a
!irdG. This really gave me great understanding on funds management, regarding how to have
them, where to invest them and wherenot to invest them.
ust li"e any other country, Oman throughout the years has given its contri!ution to the art
and science of management. The Omani management style comes with its advantages and
disadvantages. n a (revious
organisation, was a witness to a conflict on a (articular issue
!etween the 2ead of 2uman esources and the 2ead of 7entral O(erations. They had
o((osing views on the same issues. )oth of them were very rigid in the defence of the idea.
To me, it was o!vious that each one was ust showing his influence and (ower to the to(
management. )ut in the end it was the unior em(loyees who had to suffer !ecause of this
!attle !etween their su(eriors.
t does not ta"e much to ma"e the conflict a disaster, if (ower (olitics, anger, and issues are
not managed (ro(erly. The com(any, the em(loyees, even the society may have to suffer
!ecause of it. na((ro(riate and inconsiderate decisions will !e ta"en. >nnecessary rules,
(olices and regulations will also !e introduced, which might even affect the clients.
Although conflict is a common issue in organisations, it might not !e an easy one to resolve.
E9(erts suggest that communication, es(ecially through face to face meeting, is usually a
very effective way to solve or at least !ring different view(oints together.
There is a lot more to !e done to ma"e Omani management an effective one. There has to !e
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a right !alance !etween (eo(le orientationF and em(loyee orientationF. f an organisation is
not (ro(erly !alanced !etween these two orientations, the com(any might not survive for
long.
The management !y !rea"ing down all the ste(s into se(arate tas"s is an idea (o(ularised !y
4 Taylor /18&D-1B1%, who came u( with the idea of scientific methodF
ith a clear focus !y the organisational leaders, many o((ortunities can !e found for the
management to !ecome very effective in the com(etitive world. #cientific Management is
one of those management techniques that can assist managers in the analysis of com(le9
(ro!lems that are su!ect to quantitative constraints and in the o(timisation of decisions to
such (ro!lems. )ased on the #cientific Management theory, the management can !e
im(roved accordingly as there are many young !rilliant Omanis in the management who can
ma"e an effective Omani Management #tyle, if they are su((orted !y their su(eriors.
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REFERNCE
Dvir D., Sadeh A., Malach-Pines A. (2006) Projects and Project Managers: The elationshi!
"et#een ProjectManagers$ Personalit%, Project T%!es, and Project S&ccess. Project Management Journal,
' (): '6-*+.
ostede . (200/). Cultures consequences. 2nd edition. e#"&r% Par1 (A): Sage
P&"lications.
Dhola1ia, .. (/333). oing Sho!!ing: 4e% Deter5inants o Sho!!ingehavio&rs and Motivations. 7nternational 8o&rnal o etail andDistri"&tion, 2(*), /*-/6.