Saudi Vision 2030 is a comprehensive program that is aimed to reduce the country’s economic and political dependence on oil and give the economy another direction. Its ultimate goal is to develop service sectors (including health care, education, tourism, and recreational activities) up to the maximum proving that the economy of the country does not rely solely on fossil fuels. The government has already started to spend much more on military needs and other industries not related to oil.
The vision emphasizes three main goals:
- to build a thriving society that will not depend on oil;
- to establish a diversified economy not relying on any of its sectors entirely;
- to create an ambitious nation striving for a highly dedicated government.
All these tangible goals are to be achieved within 10-15 years. It is supposed that the necessary diversification will be obtained with the assistance of the private sector of the economy. All the reforms will concern industries that are not related to oil (e.g. tourism, health care, education at all levels, commerce, etc.). The program is going to solve all the existing problems concerning unemployment and the absence of job perspectives in the labor sector. Moreover, it will address more drastic changes such as the empowerment of Saudi Arabian women. This change is now necessary to alter the country’s conservative, non-progressive vision. It is expected that the number of women in the labor market is going to grow by up to 30 percent (Bahgat 41).
However, no matter how promising Vision 2030 may seem to be, there still exist certain leadership challenges and flaws that can ruin the success of the program in case they are not addressed in due time. The paper at hand is going to investigate gaps and challenges concerning leadership that the program will have to encounter.
Manager Mentality vs. Leader Mentality
Even though the two terms are generally used interchangeably, it is essential to recognize the difference between them. While a manager is supposed to show an employee how to perform the task, the leader should help him/her show his/her full potential and reach both personal and organizational goals. The problem of Saudi Arabia is that the two notions are often mixed up. As a result of this, there appears a challenge for those people who occupy management positions. There are several mistakes they have to avoid to achieve success (Noël 75):
- They are focused more on direction than on motivation. A good leader is expected to motivate his/her employees to make them devote their time to the job mission and encourage team cooperation for reaching strategic goals. Since the country is conservative, the art of instructing is not supported by comforting, encouraging, and motivating at the same time. No one cares about people’s attitudes towards their work. The importance of each job is not highlighted. That is why it is often the case that people get frustrated in what they do and, receiving no reward, cease to do their best for achieving the goals of Vision 2030.
- They underestimate the role of incentives. Good leaders can always get more out of employees by inspiring them. In Saudi Arabia, the absence of the person-oriented approach in leadership is harmful to the overall outcome of the Vision 2030 implementation. It is now highly important for leaders to realize that if they want their employees to complete extra tasks without any additional payment, they have to provide non-financial incentives that would encourage the person to stay engaged.
- They often forget about supporting other leaders. Management style presupposes that you take care exclusively of yourself. However, good leadership implies that you are always there for other leaders and are ready to share your knowledge and experience. It is crucial to change the Arabian system in such a way that leaders realize that they are not simply managers but coaches both to their employees and other people of power.
- They underestimate the importance of corporate culture. The traditional managerial approach does not take into account the significance of the organizational culture, motivation of the team, and the creation of an ideal environment. It is a common problem for conservative countries to ignore fun as one of the major components of job satisfaction. However, the more happy employees are, the more they do for the good of the company.
Culture Challenges
Even though most organizations in Saudi Arabia have already accepted Vision 2030, their employees are still reluctant to improve their technical skills to answer the requirements of the new approach. The point is that workers in Saudi Arabia tend to be more status- than development-oriented. There are a lot of young people who are accustomed to luxury and prestige. Therefore, despite the abundance of job opportunities in management, they are unwilling to become leaders as the benefits that they receive are not enough. Also, the present-day Saudi Arabian labor market is abundant in job opportunities, which means that people are not striving for low-paid jobs. Most young professionals look for leadership positions since other jobs are considered to be dishonorable and even humiliating (Thomas and Peterson 58).
Moreover, cultural issues also have an impact on the assessment of organizational performance. It is not a rare case that leaders do not give an honest evaluation of the achievements and failures simply because such a direct position may be perceived as hostile and unacceptable by the employees. It is rather common for the Arabs to avoid direct conflict and send unpleasant news through an intermediary (Thomas and Peterson 58).
Another challenge for prospective leadership is the emphasis on teamwork. It is rather typical for people to believe that collective goals are far more important than personal ones. This approach would not be so bad if it did not deprive people of motivation to become leaders. Besides, the culture favors life employment, which implies that there is no incentive to improve the performance since you are already determined not to be competitive but to stay with the same company for the rest of your career (Thomas and Peterson 62).
Family ties
Even though Vision 2030 can be called a western-oriented program, there are still typical Eastern features deeply inherent in the society that may hinder its implementation. For instance, religion and family ties underlie practically all aspects of human life including the world of business. There is no division between connections with your closest relatives and other spheres. It is rather typical for representatives of other cultures to forget about the rule. Although this attitude often signalizes rather a healthy business structure (as it is based on the mutual trust of the leaders and their close connections), it is now becoming a serious barrier to further progress. Many businesses are run by families with family members occupying all the leadership positions. It prevents companies from broadening their vision and connections. Moreover, you can never be sure of someone’s relatives’ business talents. Since the program presupposes diversification, it means that other people should receive a chance to occupy managerial positions (Thomas and Peterson 63).
Generation Y
Generation Y consisting of people born between 1990 constitutes more than 75 percent of the country’s population. Those people are now considered to be the most high-maintenance labor force both in Saudi Arabia and across the globe. This generation mostly includes children of wealthy parents who are convinced that they can achieve anything they want no matter how high the requirements may me. Thus, those people present a certain challenge to the implementation of Vision 2030 as they often have inadequately high expectations and inflated self-perception. Most of them want technically challenging jobs that open perspectives for further development. That is why they do not accept any kind of routine middle management. Thus, it turns out that despite being ambitious, Generation Y representatives are too idle and self-absorbed to be able to assist in the implementation of the program (Noël 78).
Conclusion
As it is evident from the reasons listed above, there are a lot of obstacles and gaps that may hinder the success of Vision 2030. The program is well-elaborated and promises good results. However, it remains rather detached from the real modern business world of Saudi Arabia as it does not take into consideration its specific cultural issues, management style, family ties, and peculiarities of working generations. To achieve results, Vision 2030 requires significant modifications to be able to handle those problems.
Works Cited
Bahgat, Gawdat. “Lower for Longer: Saudi Arabia Adjusts to the New Oil Era.” Middle East Policy 23.3 (2016): 39-48.
Noël, Pierre. “The New Oil Regime.” Survival 58.5 (2016): 71-82.
Thomas, David C., and Mark F. Peterson. Cross-Cultural Management: Essential Concepts. Thousand Oaks, CA: Sage Publications, 2014.