Star Engineering was established in 1961 and is based in

London. The firm has nearly 5,000 employees located in 140

offices worldwide. The organization consists of civil, industrial,
and environmental divisions. A strategic focus for the civil
division has been large transportation projects. The United Arab
Emirates (UAE) has been a promising market, as the countrys
rapid growth has required the development of significant
transportation infrastructure including highways, bridges, ports,
and rail networks. Star Engineering has had a presence in the
UAE for the last twelve years and has managed two or three
small projects per year.
Two years ago, the UAEs Ministry of Transportation (MoT)
decided to proceed with a large, state-of-the-art bridge project.
In many industrialized countries, an agency within the
government would serve as the overall program manager and
manage all of the consultants and contractors involved in the
project. However, given the complexity of this project, the MoT
recognized that it did not have the experience or capacity to
manage all of the coordination and contract interfaces.
The project was put out to bid, and Star Engineering was
awarded the contract. The contract was significant to Star for a
couple of reasons. First, although most of the firms revenue is
generated in the United Kingdom and other industrialized
countries, having additional sources of revenue is important, and
this is particularly true given the recent downturn in the global
economy. Second, having ones name on a landmark project
such as this one would contribute to the success of future
marketing and sales initiatives.
Given the UAEs rapid growth over the last few decades, the
government is making a concerted effort to develop its own
workforce. Thus, one of the conditions of the bridge contract
was that Star Engineering would develop UAE nationals so that
they would be able to manage all aspects of similar projects in
the future. This case study examines the strategies and
challenges associated with developing UAE engineers in the
context of a large-scale project.
1

Historical Background

The UAE was established in 1971. Living conditions up through

the 1960s were fairly impoverished, with a heavy reliance on
fishing, pearling, farming, and trading for income and survival.
Oil was discovered in 1960 off the coast of Abu Dhabi, the
current capital of the UAE, and the UAE began to receive
significant revenue from oil-related exports in the 1970s. The
UAE has nearly 10 percent of the worlds known petroleum
reserves.
The UAE government had to develop the oil fields and build the
supporting infrastructure. This work required expertise that was
not available within the UAE, so the government needed to rely
on international organizations to achieve its objectives. This
resulted in a major influx of expatriate labor. Among the current
UAE population of about 8 million, it is estimated that 80
percent are expatriates.
The UAE is governed by heredity rule, and the rulers or Sheikhs
retain a great deal of power. For instance, unions and collective
bargaining do not currently exist in the UAE. However, the
rulers tend to be paternalistic and humane (Muna, 1980). The
UAE government has been rather generous in distributing its
wealth among UAE citizens. During the initial years of growth,
UAE nationals were systematically placed into government
organizations. The employment terms in the public sector were
rather attractive including, for instance, relaxed performance
standards, high compensation, short working hours, and
generous amounts of leave time (Al-Ali, 2008). Thus, the
discovery of oil has led to a dramatic improvement in UAE
lifestyle over a relatively short period of time. Expatriate labor
has been

Human Resource Background

Despite the benefits associated with rapid economic growth,
there are also major challenges. The heavy use of an expatriate
labor force places tremendous political and social pressure on
the UAE government and its citizens. From a strategic
perspective, the nation is not able to independently manage its
own affairs and future (Rees, Mamman, & Braik, 2007).
Although UAE nationals may own businesses and provide

others with general direction, they often do not possess the

knowledge and skills needed to perform much of the nations
work.
There are also fundamental economic and employment issues.
The population is growing, but government organizations have
now become saturated (Forstenlechner, 2008). This has created
the need to place UAE nationals in the private sector. This is
extremely challenging for UAE nationals, as they must now
compete with an international labor force, and the employment
terms are far less attractive than those offered in the public
sector.
The UAE government has made a significant effort to support
the transition of UAE nationals into the private sector, including
a heavy emphasis on education and training (Suliman, 2006).
There has also been pressure on the private sector to hire UAE
nationals, such as quotas for UAE nationals and additional fees
placed on the use of expatriates. The systematic effort to recruit
and develop UAE nationals to reduce the countrys dependence
on an expatriate workforce is referred to as Emiratization.
However, given the countrys rapid growth, the educational
systems were not competitive with those in most industrialized
nations. Thus, UAE nationals often lack the skills needed to
succeed in the private sector (Al-Ali, 2008). Skill deficiencies
tend to revolve around critical thinking, mathematical reasoning,
and writing. UAE nationals are also generally unprepared for the
levels of motivation and discipline that are required in the
private sector (Al-Ali, 2008).
The previous cohort experienced fairly relaxed working
conditions in the public sector. As a result, young adults have
little prior experience with the demands of a global economy. In
addition, UAE nationals tend to have negative attitudes toward
engaging in manual labor (Al-Ali, 2008; Suliman, 2006). Such
negative perceptions often extend to many lower-level positions
and any routine or non-intellectual work. This is likely due, at
least in part, to the fact that the UAE, along with many other
Middle Eastern countries, is considered a high-power-distance
culture (Carl, Gupta, & Javidan, 2004; Hofstede, 2001). In other

words, the power difference between leaders and followers is

more dramatic than it is in many other countries. In high-powerdistance cultures, leaders are expected to make virtually all
major decisions and maintain a degree of distance from
followers. UAE nationals risk losing status or prestige if they
engage in work that is typically conducted by those at lower
levels of society. As a result, despite many job opportunities in
the private sector, UAE nationals often remain unemployed
owing to skill deficiencies or an unwillingness to accept
positions that are perceived as overly demanding or demeaning.
Thus, despite a rapidly growing economy, employing and
developing UAE nationals remains a significant strategic
challenge for the UAE government.

The Bridge Project

The project involved designing and building a bridge over a
large channel of water. The contract also required building
approach freeways, ramps, and interchange structures to connect
the bridge with existing highways. The project was expected to
take two years to complete. All major decisions regarding
transportation issues were made by the executive committee of
the MoT. This committee consisted entirely of UAE nationals.
The executive committee relied on a managing director, an
expatriate from the United Kingdom, to provide technical
guidance and serve as the operational leader for all major
projects. All consulting firms and contractors working on major
transportation projects reported to the managing director.
Given the visibility and complexity of this project, the executive
committee and managing director wanted to hire a leading
global firm to serve as the program manager. As a result, the
request for proposal (RFP) was circulated internationally. The
executive committee and managing director had two general
criteria for evaluating proposals. First, they were seeking design
and building expertise related to this specific project. Second,
they required a clear plan for developing UAE nationals so that
they would be able to serve as program managers for similar
projects in the future. The RFP indicated that UAE nationals
should gain experience on all aspects of program management.

The RFP also stated that the executive committee would select
the UAE nationals for this project and that the UAE nationals
would be employees of the MoT. Thus, although the UAE
nationals would work with the contractor on a daily basis, they
would be paid by the MoT and would receive all government
benefits such as those related to holidays, vacation, and sick
leave.
Star Engineering was eager to submit a proposal as this project
was aligned with its strategic objectives. The technical aspects
of Stars proposal were solid, as it had completed similar
projects in the United Kingdom, Hong Kong, and Japan. The
proposal gave significant attention to the development of UAE
nationals. The proposal included the establishment of a new
project office in Abu Dhabi to accommodate a total of forty
employees. The organization structure had four core functions:
finance, contracts, engineering, and construction. The proposed
organization chart included five UAE nationals, with one
reporting directly to the head of each of the four functions and
one reporting directly to the general manager, who served as the
head of the entire project. The proposal also indicated that Star
would provide all five UAE nationals with cross-functional
training on topics such as contracts, design, and project
management.
HR support for this project would be provided by Stars regional
office located in Dubai. This office included five HR generalists
that focused primarily on compensation, visa, housing, and
employee-relations issues for Star employees. Star recognized
that it needed additional HR expertise to support the
development of the UAE nationals. The proposal indicated that
a training and development specialist from Stars home office in
London would assist by conducting initial orientation and needs
analysis meetings with the UAE nationals. The training
specialist would also conduct quarterly follow-up meetings with
Stars leaders and the UAE nationals to assess progress and
provide additional guidance as needed. The proposal was based
on time and materials rather than a fixed fee, so staffing
adjustments could be made later without jeopardizing the

financial viability of the project.

The managing director and executive committee reviewed a
large number of proposals and selected five firms, including Star
Engineering, to make formal presentations. After further review,
Star Engineering was awarded the contract. The managing
director indicated the decision was based on Stars design
expertise relevant to this specific project and the integrated plan
to develop UAE nationals.

Developing UAE Engineers

Consistent with Stars proposal, the executive committee
selected five UAE nationals to join the team. These placements
were considered prestigious assignments and were assigned to
candidates who were viewed as having significant leadership
potential. There were three males and two females. Stars
leadership team was pleased to learn that all five held four-year
engineering degrees, with one earned in the Developing UAE

Engineers
Consistent with Stars proposal, the executive committee
selected five UAE nationals to join the team. These placements
were considered prestigious assignments and were assigned to
candidates who were viewed as having significant leadership
potential. There were three males and two females. Stars
leadership team was pleased to learn that all five held four-year
engineering degrees, with one earned in the UAE and the other
four earned in the United States or the United Kingdom.
Stars leaders were, however, surprised to learn that none of the
UAE nationals had previous work experience related to
engineering. This would be acceptable for entry-level positions,
but it was not consistent with the level of the positions in the
proposed organizational structure. Stars general manager raised
this issue with the managing director. The managing director
indicated that none of the candidates had prior work experience
and that it was difficult to find UAE nationals with prior
experience. After much debate, Star decided to maintain the
proposed structure, with the UAE nationals reporting to the
general manager and four function heads, but it was clear that

the job responsibilities would have to be simplified to match

their lack of experience.
The arrival of the UAE nationals at Stars new project office
was a positive experience for all involved. The expatriates were
interested in gaining additional exposure to the local culture and
welcomed the opportunity to help others learn about the
execution of such a large project. The UAE engineers were also
pleased to join the project. Large infrastructure projects tend to
be a source of pride in the UAE, and being directly involved in
such a visible project was rather prestigious.
The training and development specialist arrived from London
during the first week. He conducted in-depth meetings with the
UAE engineers to assess skill levels and interests. He also met
with Stars leaders to provide guidance with regard to coaching
and developing the UAE nationals. The training specialist spent
considerable time working with Stars leaders to identify
assignments that would be suitable for entry-level engineers.
This was somewhat challenging, but it appeared there were
enough entry-level tasks for the UAE engineers to play a
meaningful role in the project.
The general direction to Stars management team and all of the
other expatriates was to treat the UAE nationals as they would
treat one another. Star Engineering had an excellent reputation
and received international awards for having high performance
standards and a supportive, team-oriented culture. As a result,
Stars philosophy was that the UAE engineers should be treated
the same as Stars own employees.
The expatriates found working with the UAE nationals to be
enjoyable. The UAE nationals were extremely respectful and
seemed genuinely interested in building strong interpersonal
relationships. The UAE nationals seemed bright, as they were
able to grasp new, complicated concepts with relative ease.
Initially, the UAE nationals joined Star employees on a number
of site visits, and this seemed productive for all involved. The
interaction was pleasant, and the UAE nationals were clearly
engaged in conceptual issues related to engineering and
financial matters.

The UAE nationals were particularly helpful to Star employees

in a couple of respects. First, they provided useful insights into
government issues in the UAE. Second, when Star employees
visited government agencies to request information or seek
approvals they were given instant credibility if they were
accompanied by a UAE national.
However, after a few weeks, it was apparent that the initial plan
regarding the UAE nationals was untenable. The UAE engineers
failed to complete many of their assignments. The UAE
nationals had some skill deficiencies that were more serious
than Stars initial estimates. For instance, their ability to write
technical memos or reports was well below standard. However,
the primary issue revolved largely around the lack of
motivation. The official work hours for the UAE nationals was
from 7:00 a.m. to 3:30 p.m., but they often arrived late and left
early. The expatriates often worked twelve or more hours per
day to meet project deadlines. The UAE nationals were often
absent. In addition, there was also a lack of attention to detail, so
much of the significant detail work had to be re-checked by
expatriates. As a result, virtually all work was transferred to
expatriates.
The UAE nationals also became frustrated. They wanted to
make a meaningful contribution to the project and requested
more interesting work assignments. The UAE nationals argued
that they had engineering degrees and should be focusing on
thinking and learning rather than executing routine work.
The UAE nationals complained to the executive committee and
managing director that they were bored and not being properly
developed by the project team.
The situation was also challenging for Star leaders, who were
being held accountable for completing a major project under
tight time constraints and for developing the UAE nationals.
Stars general manager complained to the managing director on
multiple occasions. The managing director was sympathetic and
indicated he understood the issue. However, he emphasized that
development of UAE nationals was a critical aspect of the
project and Star was responsible for managing the issue. The

managing director indicated that he did not want the UAE

nationals complaining to him or anyone else that they were
bored or not being properly developed. The managing director
reminded the general manager that the contract was time and
materials so Star should do what was required to complete the
project and develop the UAE nationals.
Star made a couple of major changes to achieve its overall
objectives. First, it hired additional experienced engineers to
handle the workload that was initially assigned to the UAE
nationals. Second, Star leaders transferred much of the day-today responsibility for training the UAE nationals to the training
function. Additional training specialists were brought from the
United Kingdom and assigned to this project on a full-time
basis. The specialists designed a range of formal training
seminars on topics such as concrete, traffic management, safety,
quality control, and contract management. There was also
increased pressure to document the development of the UAE
nationals, so the training specialists made a more concerted
effort to document attendance and learning at the seminars.
The bridge and related infrastructure are near completion and on
schedule. The costs have exceeded the initial proposed budget
owing to the additional engineers and training initiatives. The
expatriates do not believe the UAE engineers would be able to
manage similar projects in the future. The UAE nationals
believe they have been exposed to the major aspects of the
project and could provide the appropriate direction on future
projects.

Case Study Questions and Activities

1 Role play exercise: Form groups of three and have one person
play the role of a Star leader, one the role of a UAE
engineer, and one the role of the managing director. The
Star leader should begin by coaching the UAE engineer on
efforts she might consider to contribute to her own
development. The UAE engineer should respond by
sharing her perspective. The Star leader and UAE engineer
should have an opportunity to respond to each other. After
hearing both sides, the managing director should offer

suggestions to both the leader and the UAE engineer on

how each might contribute to the development of the UAE
engineer. What issues do the three agree on? What
differences remain? How might such differences be
resolved?
2 Assume you have an opportunity to rewrite Stars proposal for
the bridge project. What might you suggest to facilitate the
development of the UAE nationals? You may consider all
aspects of HRM, such as staffing, structure, performance
management, compensation, and training/development.
3 What role do actual work experience and accountability play
in learning and career development? In other words, what
(if anything) do we learn from actual work experience that
is often not learned from training programs? How might
developmental experiences be modified to reduce the
amount of time or effort required?
4 What is the general view of training versus developmental
experiences in your country? How might training
programs be modified to produce the learning and
development that are typically gained from actual work
experience? Are there learning objectives that require
actual experience and cannot be achieved through formal
training programs?
5 What long-term, strategic recommendations might you offer
for developing UAE nationals? Do any of your
recommendations conflict with a high-power-distance
culture and a reluctance to engage in lower-level work? If
so, how might you address such cultural issues?

Note
(Hayton)
Hayton, James. Global Human Resource
Casebook. Routledge, 04/2012. VitalBook file.

Management