Factors Affecting Management Decisions in the UAE

Many factors influence management decisions that could be specific to organizational
context, the capacity of the decision-maker, and even industry level elements. The Middle East
has a strong Arabic presence where Islam teaching is a main defining element of interpersonal
relationships and the business environment. However, the rise of expatriate managers due to
economic tourism continues to change dominant management styles to reflect international
business management norms. In many managerial publications, authors notify of the
complexities of the business climate in Arab countries, which ultimately affects management
styles and managers’ decision-making processes. According to the literature on management
practice in the UAE, immense religious influence, strong culture, and family traditions
characterize the business environment, which is different from the Western context. Although the
UAE has a high percentage of Arabic culture than any other culture, many expatriates are
working in both foreign and local companies, meaning that traditional management practices
might not be effective in sustaining successful organizations.
The role of wasta (relationships) and the centralized nature of power strongly influence
management in the UAE. However, the influence of a multicultural workforce in major
economic capitals, such as Dubai, means that there is a need for effective cross-cultural
communication. Bhealer and Bhagopan note that some of the major problems facing managers
are the presence of language difficulties and poor levels of interpersonal relationships (294). The

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capacity to maintain positive interpersonal relationships plays an important role in effective
management. The positive impact of wasta is noticeable in non-formal settings where authority
figures known to adhere strictly to wasta are consulted in case of conflict (De Waal and Frijins
237). In addition to this, wasta could mean that the career success of many managers in Arab
countries is due to informal relationships that are common in Arabic workplaces. However, there
is a rise of a “new order,” which is more aligned with dynamic international human resource
practices and has gradually changed the strong influence of an “old order” in management (De
Waal and Frijins 242). The impact of globalization continues to play a significant role in
transforming traditional management practices in the Arab workplace to reflect effective styles
that serve a more multicultural workforce.
Islam teaching teachings has have a strong influence on the management style for Arab
executives, in which they are required to consult before making any decisions. As a result, Arab
managers identify more with consultative management dimensions compared to any other style
(Behery 17). However, this inclination might also include the pseudo-consultative style where
subordinates might be consulted, but it does not necessarily mean their opinion counts (Al
Mazrouei and Pech 37). A study seeking to establish comparative leadership styles across
Europe, the USA, and the Middle East revealed that managers in the UAE are more passive,
avoidant, and less transformational compared to representatives of standard norms on
management norms in Europe and the USA (Bealer and Bhanugopan 294). According to Yousef,
the level of technology and organizational culture have a profound impact on decision-making
styles (370). Contrary to findings from most studies published on factors affecting the
management style in the UAE, Yousef’s research disregards the element of cultural influence.

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The strong Arab culture influences managers’ decision-making despite the influx of
expatriates in the UAE. Cross-cultural communication is an important element of successful
management of firms due to an immense multicultural workforce. Wasta, an interpersonal
relationship phenomenon that defines career development for manager in the UAE, is an
important factor that also impacts decision-making. Many studies contrast the business
environment in the Middle East to that of Europe and the USA in an effort to investigate the
major defining elements that inform decision-making. Others, such as Yousef, reveal that
managerial decisions are influenced by the level of technology and organizational structure just
like any other context in international business management. Ultimately, the role of wasta and
centralization of power play a key role in defining management approaches in the UAE.

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Works Cited

Al Mazrouei, Hanan, and Richard J. Pech. “The Expatriate as Company Leader in the UAE:
Cultural Adaptation.” Journal of Business Strategy, vol. 36, no.1, 2015, pp. 33-40.
Bealer, Dianne, and Ramudu Bhanugopan. “Transactional and Transformational Leadership
Behaviour of Expatriate and National Managers in the UAE: A Cross-Cultural
Comparative Analysis.” The international journal of human resource management, vol.
25, no. 2, 2014, pp. 293-316.
Behery, Mohamed H. “Retracted: Leadership Behaviors that Really Count in an Organization’s
Performance in the Middle East: The Case of Dubai.” Journal of Leadership Studies, vol.
2, no. 2, 2008, pp. 6-21.
De Waal, André, and Miriam FrijnsFrijins. “The Influence of the UAE Context on Management
Practice in UAE Business.” International Journal of Islamic and Middle Eastern Finance
and Management, vol. 9, no. 2, 2016, pp. 236-253.
Yousef, Darwish A. “Predictors of Decision-Making Styles in A a Non-Western Country.”
Leadership & Organization Development Journal, vol. 19, no. 7, 1998, pp. 366-373.