ARAB ORGANIZATIONS AND

MANAGEMENT CHALLENGES:

THE IMPERATIVE NEED FOR A

PROACTIVE STRATEGIC ARAB
PARTNERSHIP IN THE FIELD OF
MANAGEMENT R&D

Prof.Laouisset
 CATEGORIZING ORGANIZATIONS IN
TRANSITION:A HIERARCHY:

• CATEGORY I : ARE ORGANIZATIONS THAT ARE

CONSTANTLY LEADING CHANGES/MDC’S

• CATEGORY II : ARE ORGANIZATIONS WHICH

ARE FOLLOWING THESE CHANGES/EMERGING
COUNTRIES

• CATEGORY III :ARE ORGANIZATIONS WHICH

ARE JUST WATCHING AND WONDERING WHAT
IS HAPPENING/AFRICAN&ARAB COUNTRIES
ARAB ORGANIZATIONS AND THE ONGOING
GLOBALIZATION PHENOMENON:

• CHOICE 1:PARTICIPATE IN THE EVER

CHANGING NEW DIVISION OF LABOR

• CHOICE 2:BELIEVE THAT IN AN ABSENCE OF A

CURRENT ARAB COMPETITIVE ADVANTAGE
THE REMAINING CHOICE IS JUST TO KEEP
IMPORTING INNOVATIONS IN ALL FORMS
THE COSTS INVOLVED WITH THE SECOND
CHOICE:

• HUGE FINANCIAL BURDENS TIED TO

PERMANENT IMPORTS OF TRAINING
&CONSULTING SERVICES WHICH END UP MANY
TIMES IRRELEVANT FOR ARAB ORGANIZATIONS
DUE TO CULTURAL DIFFERENCES
• RISING TRADE DEFICITS WITH MAJOR
TRAINING&CONSULTING SERVICE PROVIDING
COUNTRIES/US/GB/CANADA
• HIGH OPPORTUNITY COSTS
• SOCIOCULTURAL ALIENATION COSTS ARE
ALSO HIGHLY INVOLVED
• DEEPENING “DEPENDENCY” IN ALL ITS FORMS
 ANALYZING BASIC MANAGEMENT
ASSUMPTIONS:

• MANAGEMENT IS OBVIOUSLY A SOCIAL

SCIENCE DISCIPLINE AND AS IN ALL SOCIAL
SCIENCES MANAGEMENT ALSO HAS ITS OWN
ASSUMPTIONS , I.E HYPOTHESES WHICH OF
COURSE HAVE BEEN ROOTED IN A SPECIFIC
AND DETERMINANT SOCIAL , ECONOMIC
POLITICAL AND CULTURAL ENVIRONMENT.
 ASSUMPTIONS VS.REALITIES:

• UNLIKE NATURAL SCIENCES MANAGEMENT

ASSUMPTIONS WHICH WILL BASICALLY SHAPE
THEORIES WILL AS IT IS THE PROPER OF A
SOCIAL SCIENCE AFFECT SOCIETY I.E THE
BEHAVIOR OF HUMAN BEINGS WITHIN A
SOCIETY. HUMAN BEINGS AS IT IS STATED IN
AGENCY THEORY WILL TRY TO LIVE UP TO
WHAT IS EXPECTED FROM THEM IN ENGAGING
IN A CONFIRMING BEHAVIOR LEADING TO A
SELF FULFILLING PROPHECY.
 MANAGEMENT PARADIGMS VS
MANAGEMENT FALLACIES:

• THERE MUST BE ONE RIGHT ORGANIZATION

I.E THE ORGANIZATION STRUCTURE
DESIGNED ABROAD I.E MDC’S
• THERE MUST BE ONE RIGHT WAY OF
MANAGING PEOPLE I.E THE PERSONNEL
MANAGEMENT POLICIES DESIGNED IN MDC’S
• BUT THERE IS A WELL KNOWN MANAGEMENT
NOTION KNOWN AS SITUATIONAL OR
CONTINGENCY MANAGEMENT WHICH TAKES
INTO ACCOUNT TIME AND SPACE I.E THE
ENVIRONMENT OF THE FIRM
 BASIC MANAGEMENT PRINCIPLES:

THEY HAVE BEEN BROUGHT UP IN A PARTICULAR

POLITICAL,SOCIAL,CULTURAL ECONOMIC ENVIRONMENT
• HOW COULD THESE SAME PRINCIPLES EMBEDDED AND
ROOTED IN WHOLLY DIFFERENT ENVIRONMENTS BE
TRANSPOSED AND APPLIED AS IT IS IN ARAB ORGANIZATIONS
WITHOUT TAKING INTO ACCOUNT THE NECESSARY
STRATEGIC FIT AND ADAPTATION…
• THE EXPECTED NATURAL RESULT IS THE REJECTION OF
ARAB ORGANIZATIONS TO ANY UNRECOGNIZED ELEMENT I.E
THE IMPORTED MANAGERIAL TECHNOLOGY,AND THAT IS ONE
EXPLANATION WHY IT HAS BEEN WITNESSED AN INCAPACITY
OF EFFECTIVE TECHNOLOGY TRANSFER
• IF INDIVIDUALS DO NOT REJECT THIS IMPORTED
TECHNOLOGY THEY HAVE THE CHOICE TO MAKE IT THEIRS
AND ACCEPT ALL ITS ASSUMPTIONS AS TRUE AND
UNCONSCIOUSLY WILL SWITCH TO A FOREIGN
ENVIRONMENTAL REFERENTIAL AND BECOME NOT AN AGENT
FOR CHANGE BUT AN AGENT OF ARAB DECULTURATION AND
FOREIGN RECULTURATION..AND THIS A BIG IDENTITY
THREAT.MODERNIZING IS NOT BY ALL MEANS WESTERNIZING.
 THE SEARCH FOR THE RIGHT
ORGANIZATION:

• THE SEARCH IS STILL GOING ON …IT IS A

NEVER ENDING SEARCH…
• BECAUSE WHAT WAS VALID YESTERDAY IS
NOT ALWAYS VALID TODAY
• ANY PARTICULAR MANAGERIAL CONCEPT CAN
BE ERODED, SUCH AS FOR INSTANCE THE
NOTION OF SUBORDINATES WHICH HAS
BECOME OBSOLETE DUE TO THE NEWBORN
CONCEPT OF KNOWLEDGE WORKER WHO
KNOWS MORE ABOUT HIS JOB THAN HIS
SUPERIOR,WHO IS NOW THE SUBORDINATE ?
LET US REFLECT ON SPECIFIC EXAMPLES:

• EACH AND EVERY MANAGEMENT CONSULTANT

WOULD TELL YOU THAT THE MATRIX
STRUCTURE WOULD SAVE YOU MONEY BY
USING OPTIMALLY YOUR HUMAN RESOURCES
BUT HOW ABOUT THE WELL GROUNDED BUT
IGNORED BY MOST CULTURALLY INSENSITIVE
CONSULTANTS I.E THE ARAB PRINCIPLE OF
LOYALTY WHEREAS THE MATRIX
ORGANIZATION MIGHT VERY WELL PUT ARAB
MANAGEMENT EXECUTIVES IN A SITUATION OF
CONFLICTING LOYALTY…THAT MIGHT TRIGGER
CONFLICTS THAT OBVIOUSLY WOULD NOT
SERVE THE ORGANIZATION...THE INITIAL
OBJECTIVE WOULD BE MISSED.
 SOME MANAGERIAL CONTRADICTIONS:

• AT A GIVEN TIME MOST CONSULTANTS WERE ADVISING

VERTICAL AND HORIZONTAL INTEGRATION AND SOLD ON
BEHALF OF MAJOR INDUSTRIAL CORPORATIONS SO MANY
TURNKEY AND PRODUCT IN HAND PROJECTS TO ARAB
ORGANIZATIONS…
• NOW THE SAME MAJOR CONSULTING FIRMS ARE
RECOMMENDING TO THEIR ARAB CLIENTS DISINTEGRATION
AND PRIVATIZATION WITH ITS HIGH SWITCHING COSTS,DUE TO
TRENDS IN GLOBALIZATION OF PRODUCTION,LOWER
TRANSACTION COSTS.
• THIS IS A COST TO BEAR WHEN CONSEQUENTIAL STRATEGIC
DECISIONS AND STRATEGIC CHOICES ARE INFLUENCED BY
OUTSOURCED EXPERTISE WHOSE LOGIC IS THE LOGIC OF JUST
SELLING NEW IDEAS TO WHOMEVER IS ATTRACTED BY
IMITATION AND FOLLOWERSHIP TO PRESTIGIOUS CENTERS OF
INNOVATION.
• UNFORTUNATELY, ARAB ORGANIZATIONS OFTEN SERVED AS
EXPERIMENTAL LABORATORIES FOR UNTESTED MODELS…
BECOMING A LEARNING ORGANIZATION IN
AN ERA OF KNOWLEDGE THROUGH
ACTION LEARNING:

• ORGANIZATIONS PREPARING THEMSELVES FOR THE

MANAGERIAL SHOCKS OF THE FUTURE WILL BE THE LEADERS
AND WILL GO ON DOMINATING TOMORROW…

• IN CASE ARAB ORGANIZATIONS DO NOT REACT AND RIDE THE

WAVE OF CHANGE THEY WILL FOREVER STAY BEHIND AND
MAY NEVER RECOVER…

• THIS IS A CALL FOR A CONCERTED ARAB EFFORT AND

STRATEGIC PARTNERSHIPS WITH CENTERS OF EXCELLENCE
TO PARTICIPATE IN MANAGERIAL INNOVATIONS,PAVING THE
WAY TO AN ARAB MANAGEMENT PARADIGM , IT IS A
DESPERATE CALL FOR MOVING FROM A ZERO TO A NON ZERO
SUM GAME
 THANKS …
FOR READING

dlaouisset@gmail.com