ROLE OF MANAGERS IN PAKISTAN

Being a Manager in Pakistan

To ensure successful cross cultural management in Pakistan, you need be aware of the importance of maintaining a degree of formality at all times. Older people and those in senior positions should be deferred to and treated with dignity and respect. Status is important and it is a good idea to seek situations where you can flatter your colleagues. You must exercise patience in your business dealings. Things generally take longer than expected since meetings may be interrupted and patience will be necessary. Pakistanis are hospitable and enjoy hosting foreign guests. At the same time, they expect you to understand the rules of their country and obey them. Do not appear overly friendly when you are first introduced. Relationships take time to grow and must be nurtured. Pakistanis often ask personal questions as a way to get to know you as a person. If possible, it is best to answer these questions. Businesswomen will be asked about their marital status and the number of children they have.

The Role of a Manager

Successful cross cultural managers in Pakistan will remember that each person has a very distinct role within the organization, and maintaining that role helps to keep order. In Pakistan, as in other hierarchical societies, managers may take a somewhat paternalistic attitude to their employees. They may demonstrate a concern for employees that goes beyond the workplace and strictly professional concerns.

Approach to Change
Pakistans intercultural competence and readiness for risk is low. Pakistan 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 Pakistans attitude toward risk dramatically impacted by the negative ramifications of failure on both the individual and the group.

Approach to Time and Priorities

Pakistan is a fluid time culture, and as is the case with many fluid time cultures, it is also very relationship-oriented. People in Pakistan will not want to upset others in order to force adherence to a deadline, and while appointments and schedules need to be set well in advance as a sign of respect for the individual, you need to understand that those schedules are seen as flexible, not necessarily needing to be adhered to. Successful cross cultural management will depend on the individuals ability to meet deadlines. Global and intercultural expansion means that some managers may have a greater appreciation of the need to enforce timescales and as such, agreed deadlines are more likely to be met.

Decision Making
Pakistani managers tend to have a rather autocratic style. At the same time, the boss is seen as a paternalistic figure and is expected to assist subordinates with personal problems. Decisions are made at the top of the company and handed down to managers to implement. Although the decision maker may consult with technical experts before reaching a decision, he is not seeking consensus, simply sufficient information to make an intelligent decision. To ensure successful cross cultural management, you will need to bear in mind the importance of people in the office maintaining the proper behavior relative to their position.

Boss or Team Player

If you are working in Pakistan, it is important to remember that honor and reputation play an important role. The risk becomes amplified in a team or collaborative setting. When meeting together and moderating ideas, intercultural sensitivity is necessary. It is important to qualify ideas that are raised in a gentle manner, protecting the reputation of those bringing up ideas, so no one is shamed.

Communication and Negotiation Styles

Cross cultural communication will be easier if you understand the importance of personal relationships in business. Being introduced by the proper people and making the right connections is extremely helpful. Pakistanis are non-confrontational and they will seldom say "no" overtly, so you must watch their non-verbal cues. It often takes several visits to accomplish simple tasks. Pakistanis are highly skilled negotiators. Price is often a determining factor in closing a deal.

SHAREHOLDER ORIENTATION IN PAKISTAN

Introduction To Shareholder Orientation
The basic conflict arises between stakeholder orientation and shareholder orientation. Shareholder orientation focuses only on the shareholders of the firm whereas stakeholder orientation focuses on all the groups that may have direct or indirect impact on the activities of the firm.

International Perspective Of Shareholder Orientation

According to one survey it was found that the difference in answers between Japan, Germany, France, the U.S. and UK is very interesting. Japanese firms want to cut 3

dividends and maintain employment. However it is the exact opposite in the U.S. and U.K. In these two countries shareholders of a firm take higher priority above everyone, including workers. In Germany and France, firms prefer to maintain employment than pay dividends when faced with tough economic conditions. Giving shareholders more power to influence management (especially in America) and encouraging them to use it should prompt them and the managers they employ to take a longer view. In America, Congress is considering several measures to bolster shareholders at managers expense. In Britain, the Financial Reporting Council has proposed a stewardship code to invigorate institutional investors.

Shareholder Orientation In Pakistan:

A major issue confronting the country's economic managers is how to induce a sizable portion of the country's population to embrace shareholder capitalism. Indeed, the number of shareholders is put at a mere 1.8 million in an estimated population of 150 million and is a dismal low when compared to the ratios in developed markets. In the USA and Australia, 50 per cent of the population directly or indirectly owns shares. The underlying issue is how to develop shareholder capitalism. The Rules 2000 lays down that a company may have more than one kind of share capital and may have different classes of shares under each kind. These have to be specified in the company's memorandum and articles along with their different rights and privileges which have been listed as follows: (a) voting rights; voting rights disproportionate to the paid up capital value of the shares held; voting rights for specific purposes only; or no voting rights at all;" (b) different rights for entitlement of dividend, right shares or bonus shares or entitlement to receive notices and to attend general meetings; and "

(c) rights and privileges for an indefinite period, for a limited specified period or such periods as may for time to time may be determined by the members through special resolution." In case share capital of a company has different classes having different rights and privileges and the same is to be offered to the general public, the fact shall be distinctly mentioned in the offering document and difference in the rights and privileges of any class of share capital shall be conspicuously mentioned in the offering document, prospectus etc." But for all this, the company would have to seek approval of the Security and Exchange Commission of Pakistan.

Conclusion
Our economic managers tend to follow the United States as a role model for developing the country's market. This is a phony war between shareholder capitalism and stakeholder capitalism. However Pakistan is following the footsteps of America and gives more importance to shareholders than stakeholders.

REFERENCES
http://www.kwintessential.co.uk/intercultural/management/pakistan.html http://www.economist.com/node/15954434 http://archives.dawn.com/2004/05/10/ebr1.htm http://www.tommywonk.com/2009/05/stakholder-capitalism-andshareholder.html