BZU, BAHADUR SUB-CAMPUS

LAYYAH
DEPARTMENT OF BUSINESS ADMINISTRATION
MBA 2009-12, SEMESTER 7
COMPARATIVE MANAGEMENT

MANAGEMENT IN
OMAN
SUBMITTED TO:
SUBMITTED BY:

Mr. HASHIM ZAMEER

Muhammad safdar
(MB-09-35)

DECEMER 14, 2012

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Acknowledgeme
nt
I am very thankful to Almighty Allah Who has given me wisdom
and power to learn and seek. All praises and admirations to
Almighty Allah who is the creator of everything.
Thanks also to Hazrat Muhammad (PBUH) who is source of
knowledge and leadership for all mankind forever.
I am also very thankful to my beloved teacher Mr. Hashim Zameer,
who is prompting us towards professionalism. Tons of thanks for
his valuable support and consistent guidance.

Muhammad
safdar

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DEDICATION
This
Report
Is
Dedicated
To

OUR DEAR PARENTS

Who are always a source of love, affection and inspiration for us.
Whose love and prayers always accompanied us and guide us like
a shining star whenever we were in darkness and enable us to
reach this stage.

OMAN
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History
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 majority sect only in Oman. Ibadhism has been characterized as "moderate
conservatism," with tenets that are a mixture of both austerity and tolerance.
The Portuguese occupied Muscat for a 140-year period (15081648), arriving a
decade after Vasco da Gama discovered 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.
The Ottomans drove out the Portuguese, but were pushed out themselves about a
century later (1741) by the leader of a Yemeni tribe, who began the current line of ruling
sultans. After one last, brief invasion a few years later by Persia, Oman was free for good
of foreign-occupying powers.
Isolated from their Arab neighbors by the desert, the Omanis became an economic
power in the early 1800s, largely by using their position on the Indian Ocean and
seafaring knowledge gained from the Portuguese to gain access to foreign lands. They
took control of the coasts of present-day Iran and Pakistan, colonized Zanzibar and
Kenyan seaports, brought back enslaved Africans, and sent boats trading as far as the
Malay Peninsula.
At this time, the country became known as Muscat and Oman*, denoting two centers of
power, not just the capital and the interior but also the sultan and the imam, the
Ibadhist spiritual leader.
The British slowly brought about a collapse of Muscat and Oman's "empire" by the end of
the nineteenth century without use of force. Through gradual encroachment on its
overseas 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.
Having control of the country's military, the British helped subdue rebel tribesmen in the
1950s, driving most into Yemen. But the sultan ran a repressive regime, with laws
forbidding numerous activities, including the building and even repair of his subjects'
own homes without permission. In 1970, almost certainly with British backing, he was
overthrown by his son, the present ruler, Qaboos bin Said Al Said, and the country
declared independence the following year as the Sultanate of Oman.

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Qaboos is generally regarded as a benevolent absolute ruler, who has improved the
country economically and socially. Oman has maintained peaceful ties on the Arabian
Peninsula ever since ending another tribal rebellion in the southwest in 1982 by forging a
treaty with Yemen. Oman's oil revenue has been consistently invested in the national
infrastructure, particularly roads, schools, hospitals, and utilities. More than ever, the
country is poised to take advantage of its strategic trade location on the Indian Ocean
and the Persian Gulf to further its economic growth and role in the world.
Except for those who travel to remote Middle East locales, the country has seldom been
in the public eye other than for the use of its military bases by U.S. forces in recent
years. American and British bombing raids were launched in 1991 from Oman against
Iraq in the Gulf War. A decade later, U.S. forces stationed there were involved in raids
against Afghanistan and Osama bin Laden.

Culture
Even though Oman is a modern country, western influences are quite restricted. The Ibadi
form of Islam is also conservative like Sunni Islam and Shi'a Islam. About 75% of Oman is
Muslim. As is the case with most Middle Eastern countries, alcohol is only available in some
hotels and few restaurants.

Although Arabic is Oman's official language, there are native speakers of different dialects, as
well as Balochi, or offshoots of Southern Arabian, a Semitic language only distantly related
to Arabic. Swahili is also widely spoken in the country due to the historical relations between
Oman and Zanzibar. The dominant indigenous language is a dialect of Arabic and the country
has also adopted English as a second language. Almost all signs and writings appear in both
Arabic and English
Oman is famous for its khanjar knives, which are curved daggers worn during holidays as
part of ceremonial dress. Today traditional clothing is worn by most Omani men. They wear
an ankle-length, collarless robe called a dishdasha that buttons at the neck with a tassel
hanging down. Traditionally this tassel would be dipped in perfume. Today the tassel is
merely a traditional part of the dishdasha.
Women wear hijab and abaya. Some women cover their faces and hands, but most do not.
The abaya is a traditional dress and it is current having different styles. The Sultan has

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forbidden the covering of faces in public office. On holidays, such as Eid, the women wear
traditional dress, which is often very brightly colored and consists of a mid-calf length tunic
over pants.
A very important part of Omani culture is hospitality. If invited into an Omani house, a visitor
is likely to be greeted with a bowl of dates, qahwa (coffee with cardamom - standard
Arabic ????)and fruit. The coffee is served fairly weak in a small cup, which should be
shaken after three servings to show that you have finished. The dates are in lieu of sugar.
Halwa and other sweets are often given at celebrations such as Eids.
The Omani culture is steeped in the religion of Islam. Oman has developed its own type of
Islam, known as Ibadhism. There are both Sunni and Shia Muslims in Oman. With this in
mind the Islam month of fasting, Ramadan and other Islamic festivities are very important
events in Omani culture

National Dress
For men the national dress is an ankle-length, collarless gown with long sleeves called the
dishdasha. There are several accesories including a muzzar (a type of turban), an assa (a cane
or stick) and a Khanjar.The Khanjar is a ceremonial curved dagger that is a symbol of male
elegance and are worn at formal events and holidays.

The Dhow
An enduring symbol of Oman is the traditional Dhow. These dailing ships have been around
for several centuries, there is evidence of an Omani Dhow reaching China in the 8th Century.
the dhows are still in operation primarily used for fishing, exporting and tourism. The main
ports of Sohar, Sur, Salalah and Muscat all maintain a large fleet. Sur also has an exstensive
dhow building industry.

Economy

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Currency
Fiscal year
Central Bank
Stock Market

Omani Rial (R$, OMR)

Calendar year
The Central Bank Of Oman
Muscat Stock Market

Macro-economic trend
This is a chart of trend of gross domestic product of Oman at market prices estimated by the
International Monetary Fund with figures in millions of Omani Rials.
Year Gross Domestic Product US Dollar Exchange Inflation Index (2000=100)
1980 2,190 0.34 Omani Rials 80
1985 3,591 0.34 Omani Rials 76
1990 4,493 0.38 Omani Rials 95
1995 5,307 0.38 Omani Rials 100
2000 7,639 0.38 Omani Rials 100
2005 11,660 0.38 Omani Rials 101
For purchasing power parity comparisons, the US Dollar is exchanged at 0.29 Omani Rials
only.

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Being a Manager in Oman

The business set up in Oman is extremely conservative and successful cross cultural
management will understand the importance of maintaining a degree of formality. It is
common to hire a local agent to act as an intermediary. This person can arrange appointments
and make the appropriate introductions. The Chamber of Commerce or the commercial
attach of your countrys embassy in Oman can often recommend people to fill this important
role. Although a local agent is not technically required to do business, it is often
advantageous,

especially

is

you

do

not

have

large

local

presence.

Since Omanis prefer to do business with those with whom they have a personal relationship,
a

letter

of

introduction

from

someone

they

know

facilitates

their

trust.

Omanis do not require as much personal space as most western cultures. As such, they will
stand close to you while conversing and you may feel as if your personal space has been
violated.
Omanis are extremely hospitable and enjoy hosting foreign guests. At the same time, they
expect you to understand the rules of their country and obey them. This includes dressing
appropriately and respecting prayer time.

The Role of a Manager

Cross cultural management will be more effective with an understanding of the individual
roles and existing hierarchy. Employees do not question the decisions that have been reached.
Managers or those in a position to do so will make decisions, while in general their
subordinates will wait to be told what to do.

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Approach to Change
Omans intercultural competence and readiness for risk is low. Oman is a low risk and low
change-tolerant culture. New projects will be carefully analyzed to assure that whatever risk
they represent is thoroughly understood and addressed.
In order for change to take hold, the idea needs to be perceived as good for the group and be
accepted by the group. Intercultural sensitivity is important with Omans attitude toward risk
dramatically impacted by the negative ramifications of failure on both the individual and the
group.

Approach to Time and Priorities

Cross cultural understanding is important when reviewing the approach to timelines. Omanis
will not want to upset others in order to force adherence to a deadline.
Things generally take longer than expected since meetings are frequently interrupted and
several meetings may be required to do what could be handled by a phone call at home.When
working with people from Oman, its advisable to reinforce the importance of the agreedupon deadline.Globalization and intercultural expansion means some local managers may
understand and appreciate the important of adherence to schedules and deadlines.

Decision Making
Managers reach decisions after many discussions with everyone involved. Once a decision is
reached, it is handed down to subordinates to implement. Employees are generally treated
with respect. In turn, employees treat their manager with the respect and deference
attributable to their position.
Meeting deadlines is often secondary to maintaining personal relationships. Managers do not
publicly chastise employees because it would cause the subordinate to lose dignity and
respect so intercultural sensitivity will be needed.

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Boss or Team Player?

If you are working in Oman, it is important to remember that honour and reputation play an
important role and so some cross cultural sensitivity will be required. The risk
becomes amplified in a team or collaborative setting. If you would like to encourage
participation it is important first to clearly establish a non-threatening work
environment and communicate fully that team-member participation is desired.

Communication and Negotiation Styles

Decisions are reached slowly and patience is essential for effective cross cultural
management. If you try to rush things, you could risk your business relationship. Omanis are
event rather than time-driven. The actual meeting is more important than the timeliness or
outcome. Omanis are skilled negotiators. They often see bargaining as entertainment.
Negotiation generally follows a "win/lose" attitude. Be prepared to come down in both price
and terms. Do not set your initial price so high that the ending price makes it apparent that
you did not expect to settle at that.

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Organizational style of OMAN

WINDOW ON OMAN By Mohammed al Balushi Management is all about managing
things, events, tasks, and people. Management is both; a science and an art. Whether you try
to manage people at your office or to manage your kids at your home, you are applying the
"Art" segment of management. The management of functions, celebrations, picnics,
marriages and festivals is also an art. On the other hand, if you try to manage a software,
computers, cars, DVD players, TVs, mobile phones and any other electronic items, it means
you are applying the "science" segment of management.
Understanding the management of finance was always vague to me, specially the knowledge
of how funds move and transit from hand to hand for the business purpose. I was able to
understand the concept only when my grandmother once told me that: "If you have money,
never tightly hold it by hands otherwise it will become idle and useless, make it movable. If
you have money in your hands never open hands completely otherwise funds will fly like a
bird". This really gave me great understanding on funds management, regarding how to have
them, where to invest them and where not to invest them.
Just like any other country, Oman throughout the years has given its contribution to the art
and science of management. The Omani management style comes with its advantages and
disadvantages. In a previous organisation, I was a witness to a conflict on a particular issue
between the Head of Human Resources and the Head of Central Operations. They had
opposing views on the same issues. Both of them were very rigid in the defence of the idea.
To me, it was obvious that each one was just showing his influence and power to the top
management. But in the end it was the junior employees who had to suffer because of this
battle between their superiors.
It does not take much to make the conflict a disaster, if power politics, anger, and issues are
not managed properly. The company, the employees, even the society may have to suffer
because of it. Inappropriate and inconsiderate decisions will be taken. Unnecessary rules,
polices and regulations will also be introduced, which might even affect the clients.
Although conflict is a common issue in organisations, it might not be an easy one to resolve.
Experts suggest that communication, especially through face to face meeting, is usually a
very effective way to solve or at least bring different viewpoints together.
There is a lot more to be done to make Omani management an effective one. There has to be

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a right balance between people orientation and employee orientation. If an organisation is

not properly balanced between these two orientations, the company might not survive for
long.
The management by breaking down all the steps into separate tasks is an idea popularised by
F W Taylor (1856-1917), who came up with the idea of scientific method
With a clear focus by the organisational leaders, many opportunities can be found for the
management to become very effective in the competitive world. Scientific Management is
one of those management techniques that can assist managers in the analysis of complex
problems that are subject to quantitative constraints and in the optimisation of decisions to
such problems. Based on the Scientific Management theory, the management can be
improved accordingly as there are many young brilliant Omanis in the management who can
make an effective Omani Management Style, if they are supported by their superiors.

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REFERNCE
Dvir D., Sadeh A., Malach-Pines A. (2006) Projects and Project Managers: The Relationship
between Project
Managers' Personality, Project Types, and Project Success. Project Management Journal,
37 (5): 36-48.
Hofstede G. (2001). Cultures consequences. 2nd edition. Newbury Park (CA): Sage
Publications.
Dholakia, R.R. (1999). Going Shopping: Key Determinants of Shopping
Behaviours and Motivations. International Journal of Retail and
Distribution, 27(4), 154-165.

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