Varazdin Development and Entrepreneurship Agency Faculty of Commercial and Business Sciences
editors Davor Filipovic and Anita Goltnik Urnaut
Economic and Social Development 2nd International Scientific Conference Book of Proceedings
Paris, 5th April, 2013
Varazdin Development and Entrepreneurship Agency Faculty of Commercial and Business Sciences
editors Davor Filipovic and Anita Goltnik Urnaut
Economic and Social Development 2nd International Scientific Conference Book of Proceedings
Paris, 5th April, 2013
Title Economic and Social Development: Book of Proceedings of the 2nd International Scientific Conference, Paris, France, 5th April 2013 Editors Davor Filipovic and Anita Goltnik Urnaut Scientific Committee Marijan Cingula, University of Zagreb, Croatia (President); Tanuja Agarwala, University of Delhi, India; Leonid K. Bobrov, State University of Economics and Management, Novosibirsk, Russia; Allen Bures, Radford University, USA; Eugenio Corti, University of Sannio, Italy; Mirela Cristea, University of Craiova, Romania; Sreten Cuzovic, University of Nis, Serbia; Marli Gonan Bozac, Juraj Dobrila, University of Pula, Croatia; Myrl Jones, Radford University, USA; Marina Klacmer Calopa, University of Zagreb, Croatia; Demetri Kantarelis, Assumption College, Worcester, USA; Anastasios Karasavvoglou, Kavala Institute of Technology, Greece; Dafna Kariv, The College of Management Academic Studies, Rishon Le Zion, Israel; Brano Markic, University of Mostar, Bosnia and Herzegovina; Marjana Merkac Skok, Faculty for Commercial and Business Sciences, Celje, Slovenia; Guenter Mueller, University of Freiburg, Germany; Zsuzsanna Novak, Corvinus University of Budapest, Hungary; Constantinos N. Phellas, University of Nicosia, Cyprus; Vojko Potocan, University of Maribor, Slovenia; Wolf Rauch, University of Graz, Austria; Galina Shirokova, St. Petersburg University, Russia; Aziz Sunje, University of Sarajevo, Bosnia and Herzegovina; Davor Filipovic, University of Zagreb, Croatia; Kiril Todorov, University of National and World Economy, Sofia, Bulgaria; Sedat Yuksel, College of Applied Sciences, Sultanate of Oman Review Committee Davor Filipovic (President); Tomislav Bakovic; Sanja Blazevic; Stjepan Dvorski; Robert Fabac; Ivica Filipovic; Fran Galetic; Domagoj Hruska; Oliver Kesar; Marina Klacmer Calopa; Tatjana Kovac; Vladimir Kovsca; Marjana Merkac Skok; Guenter Mueller; Alka Obadic; Najla Podrug; Vojko Potocan; Mario Spremic; Hana Suster Erjavec; Daniel Tomic; Anita Goltnik Urnaut; Ilko Vrankic; Goran Vukovic; Snezana Zivkovic Organizing Committee Domagoj Cingula (President); Davor Filipovic; Jelena Horvat; Marina Klacmer Calopa; Erlino Koscak; Katarina Podkriznik; Damijan Pesjak Publishing Editor Katarina Podkriznik Publishers Varazdin development and Entrepreneurship Agency, Varazdin, Croatia Faculty of Commercial and Business Sciences, Celje, Slovenia Design Faculty of Commercial and Business Sciences, Celje, Slovenia Print Varazdin development and Entrepreneurship Agency, Varazdin, Croatia Copies 300 CDs © 2013 Varazdin development and Entrepreneurship Agency, Varazdin, Croatia and Faculty of Commercial and Business Sciences, Celje, Slovenia All rights reserved. Authors are responsible for the linguistic and technical accuracy of their contributions.
CIP - Kataložni zapis o publikaciji Narodna in univerzitetna knjižnica, Ljubljana 330.34(082)(086.034.4) 316.42(082)(086.034.4) ECONOMIC and social development [Elektronski vir] : 2nd international scientific conference, Paris, 5th April, 2013 : book of proceedings / editors Davor Filipovic and Anita Goltnik Urnaut. - Varazdin : Development and Entrepreneurship Agency ; Celje : Faculty of Commercial and Business Sciences, 2013 ISBN 978-961-6825-73-3 (Fakulteta za komercialne in poslovne vede) 1. Filipović, Davor 266187008
CONTENTS CHALLENGES OF THE MODERN WORLD CONTEMPORARY ECONOMY AND GLOBALIZATION ABE AKIHIRO ■ 2 THE ROLE OF ICT ON CULTURAL HERITAGE TOURISM: A CASE STUDY
AYUBA A. AMINU, DESMOND I. ELUWA, YAHAYA Y. MALGWI ■ 9 THE IMPACT OF TAX REFORMS ON GOVERNMENT REVENUE GENERATION IN NIGERIA
RITITINGAR APPOLINAIRE, ANDJAFFA DJALDI SIMON, DJONWE MBERE DANGSALA ■ 19 DESPERATE DISEASES REQUIRE DESPERATE REMEDIES: NEW PRODUCTION UNITS FOR BOOSTER THE ECONOMIC AND SOCIAL DEVELOPMENT IN THE CHAD
GOURI SANKAR BANDYOPADHYAY ■ 35 ENDANGERED FOLK RELIGION IN THE ERA OF GLOBALIZATION
HAIMANTI BANERJI ■ 43 GLOBALIZATION CAN LEAD TO INCLUSIVE GROWTH IN DEVELOPING COUNTRIES – MYTH OR REALITY
LEONARDO FERNANDO CRUZ BASSO ■ 53 SAVING THE EURO: CREATING SOCIAL REGIONAL CURRENCIES, TAXES ON FINANCIAL TRANSACTIONS, AND MINIMUM INCOME PROGRAMS
IVAN BELIK, HENRY HEXMOOR ■ 63 THE STABILITY ASSESSMENT IN SOCIAL NETWORKS
JADRANKA BENDEKOVIC, DORA VULETIC ■ 74 DEVELOPMENT OPPORTUNITIES OF PORT OF RIJEKA IN THE FUTURE
IRINA BERZKALNE, ELVIRA ZELGALVE ■ 83 TRADE-OFF THEORY VS. PECKING ORDER THEORY – EMPIRICAL EVIDENCE FROM THE BALTIC COUNTRIES
ZRINKA BLAZEVIC, MARIJANA SPOLJARIC ■ 94 ANALYSIS OF CROSS-SECTOR DIFFERENTIATION DURING STRATEGY FORMULATION
NARISSARA CHAROENPHANDHU, YUKIO IKEMOTO ■ 104 INCOME DISTRIBUTION AND THE MEDIUM-TERM TREND OF INEQUALITY IN THAILAND
PRZEMYSLAW CHMIELECKI ■ 113 UNIVERSITY EDUCATION TOWARDS MARKET REGULATION - AN ATTEMPT TO RE-THINK ABOUT THE BENEFITS AND PROBLEMS ARISING FROM THAT
DOMAGOJ CINGULA, DINKO PRIMORAC, FRANJO BOROVIC ■ 122 CATEGORIZATION AND OFFER IN TOURISM USING ANALYTIC HIERARCHY PROCESS - AHP METHOD
GYORGY CSOMOS ■ 130 CENTRES OF THE ECONOMY IN THE ASIA-PACIFIC REGION: CITIES IN THE SHADOW OF TOKYO AND BEIJING
SLOBODAN CVETANOVIC, IGOR MLADENOVIC, MILJAN JOVANOVIC ■ 141 EMPIRICAL ANALYSIS OF SERBIAN INNOVATION POTENTIAL IN THE PERIOD 2009–2011
FELIPE DE FIGUEIREDO SILVA, EVANDRO CAMARGOS TEIXEIRA, JOAO EUSTAQUIO LIMA ■ 152 THE EFFECT OF THE EARLY ENTRANCE TO JOB MARKET ON THE HEALTH STATUS OF THE BRAZILIANS IN 2008
ALBA DUMI, ELISABETA DUCELLARI, MA ESTELA COBAJ, HAVA MUCOLLARI ■ 163 THE INFLUENCES OF ORGANIZATIONAL CLIMATE AND INNOVATIVE BEHAVIOR, OF THE ROLE OF JOB INVOLVEMENT IN ALBANIA REGION, UNDER EU STANDARDS
ALBA ROBERT DUMI, EDIT URA ■ 173 REFORMING POLICY AND CLIMATE CHANGE MANAGEMENT OF ALBANIA AS AN EU CANDIDATE COUNTRY
JAMIL FARKAT, RODOLFO FERNANDO, NATHALINE FALCAO, FERNANDA CRISTINA BARBOSA PEREIRA QUEIROZ, JAMERSON VIEGAS QUEIROZ ■ 182 UNIVERSITY COMPANY GOVERNMENT INTERACTION: FAPEMIG AS PROPELLER AGENT OF THE SCIENTIFIC-TECHNOLOGICAL DEVELOPMENT IN MINAS GERAIS
DIANE FULTON, RICHARD FULTON, THOMAS GARSOMBKE ■ 192 THE 3/2 COUNTRY MARKET EVALUATION MODEL: INCLUSIVE EMERGING MARKET PARADIGM
ALINA GASUMYANOVA ■ 206 LEGAL REGULATION OF THE SPECIAL ECONOMIC ZONESIN RUSSIA
MIRJANA GLIGORIC, IRENA JANKOVIC ■ 212 TESTING STABILITY OF REMITTANCE INFLOWS IN SERBIA
ANITA GOLTNIK URNAUT ■ 223 EDUCATION FOR SUCCESSFUL INTERCULTURAL COMMUNICATION AND CULTURAL INTELLIGENCE
MIRYAM DE LA CONCEPCION GONZALEZ-RABANAL ■ 234 CHALLENGES OF THE WELFARE STATE: THE SPANISH CASE
STEFKA GORENAK ■ 241 INTERNATIONALISATION AND MOBILITY IN HIGHER EDUCATION
JASMINA GRZINIC, MIRELA SUCIC CEVRA ■ 250 DESTINATION MANAGEMENT ORGANISATION IN FUNCTION OF ENABLING AN INTEGRATED DESTINATION MODEL
SURANGI H. A. K. N. S. ■ 260 WOMEN ENTREPRENEURIAL NETWORKS AND SMALL BUSINESS DEVELOPMENT: A STUDY BASED ON TOURISM INDUSTRY IN SRI LANKA: ONGOING RESEARCH PROJECT
JERZY HANDSCHKE, ALEKSANDRA HECKA ■ 270 ENVIRONMENTAL INSURANCE AND BUILDING CSR
VELI HIMANEN ■ 280 LINKS BETWEEN GOVERNANCE AND DEVELOPMENT
JELENA HORVAT, MARINA KLACMER CALOPA, KRISTINA DETELJ ■ 291 RECRUITMENT OF EMPLOYEES AND LABOUR MARKET IN CROATIA
OXANA IVANOVA ■ 302 KNOWLEDGE MANAGEMENT
IRINA IVASHKOVSKAYA, YURY RUKAVISHNIKOV, ANDREY GUSCHIN ■ 311 CAPITAL STRUCTURE CHOICE AT DIFFERENT LIFE-CYCLE STAGES IN TURBULENT ENVIRONMENT: THE EVIDENCE FROM RUSSIAN EMERGING CAPITAL MARKET
MALGORZATA JABLONSKA, IZABELA POPIEL ■ 322 EUROPEAN UNION REGIONAL POLICY AS A TOOL FOR EFFECTIVE INTENSIFICATION OF INTERREGIONAL COOPERATION
DANIJELA JACIMOVIC, VESNA KARADZIC ■ 334 CHARACTERISTICS OF BOLOGNA PROCESS IMPLEMENTATION IN MONTENEGRO HIGHER EDUCATION SYSTEMS
MARIETTA JANOWICZ-LOMOTT, KRZYSZTOF LYSKAWA ■ 345 FINANCING THE EFFECTS OF CATASTROPHIC EVENTS IN LOCAL GOVERNMENT UNITS - THE SEARCH FOR THE OPTIMAL SOLUTION
MARIA KANEVA, GALINA UNTURA ■ 356 DEVELOPMENT OF SIBERIA AND THE REGION INNOVATION PROFILE
HACER SIMAY KARAALP ■ 367 THE EFFECT OF PUBLIC INVESTMENT AND FIRM BASED INVESTMENT INCENTIVES ON EMPLOYMENT: A PANEL DATA ANALYSIS FOR TURKEY
SAYED YAHYA KAZEMI, AZIM NAGHDIZADEH ROSHAN, MOJTABA MOJAVERIAN, SEYED HASSAN ZALI ■ 379 ROLE OF ST. JOHN’S WORT NATURAL HABITAT PRESERVATION ON SUSTAINABLE DEVELOPMENT OF LOCAL ECONOMY
MARIA KOKOREVA, AZIZA ULUGOVA ■ 384 AGENCY COSTS AND CAPITAL STRUCTURE CHOICE IN EMERGING MARKETS
TATJANA KOVAC, BOJAN KOSTANJSEK ■ 397 ICT DECISION MAKING SUPPORT – CHOICE OF THE ADEQUATE PROGRAM FOR BUSINESS INTELLIGENCE
IRENA KRALJEVIC, DINKO PRIMORAC, TOMISLAV BUNJEVAC ■ 406 ASSESSMENT OF THE ORGANIZATIONAL CULTURE OF COMPANIES BY BUSINESS-SCHOOL STUDENTS IN CROATIA
SEAD KRESO, SELENA BEGOVIC ■ 426 MONETARY REGIME, FINANCIAL DEVELOPMENT AND THE PROCESS OF MONEY MULTIPLICATION IN THE EUROPEAN TRANSITION COUNTRIES
SANDRA KRTALIC, EMIL SETIC ■ 443 TAX IMPLICATIONS OF USING TRANSFER PRICING
KATARZYNA KUBISZEWSKA ■ 454 A DEMOCRACY AND ECONOMIC DEVELOPMENT IN WESTERN BALKAN
IRINA KUZNETCOVA, ELENA MIULLER, ALEKSANDR GAGARINSKIY ■ 463 DEVELOPMENT OF MECHANISM FOR RATIONAL USE OF THE UNIVERSITY’S HUMAN CAPITAL IN INTERNATIONAL PROJECTS
LEJLA LAZOVIC-PITA ■ 471 TRANSITION AND PERSONAL INCOME TAXATION: CASES OF SELECTED WESTERN BALKAN COUNTRIES
SUN LEI, OLGA SIROTINA, LEONID BOBROV ■ 482 PROBLEMS OF MEDICAL AND RECREATIONAL TOURISM DEVELOPMENT: LOGICAL FRAMEWORK APPROACH
AGNESE LIGOTNE ■ 493 THE COMPARATIVE ANALYSIS OF HIGHER EDUCATION GOVERNANCE INDICATORS AND ITS EFFECTIVENESS IN EUROPEAN COUNTRIES
HWEE LING LIM ■ 505 MANAGING GEN Y IN THE UNITED ARAB EMIRATES: CHALLENGES IN A UNIQUE LABOR MARKET
ANDJELKO S. LOJPUR, SANJA VLAHOVIC, SANJA PEKOVIC, ANJA A. LOJPUR ■ 515 THE COMPETITION PROLEMS IN COUNTRIES OF TRANSITION: THE CASE OF MONTENEGRO
LADISLAV LUKAS ■ 526 BASIC COMPARATIVE MACROECONOMIC ANALYSIS USING DIFFERENTIAL GEOMETRY APPROACH
BRAHAMI MENAOUER, SEMAOUNE KHALISSA, BENZIANE ABDELBAKI ■ 533 CAPITALIZATION OF KNOWLEDGE AND COMPETENCE: A LEVER FOR CHANGING PRACTICES IN THE EDUCATION SYSTEM
MARKO MILETIC, LUKA MLADINEO, IVAN AKRAP ■ 545 DIVIDEND TAX IMPLEMENTATION EFECTS IN CROATIA
MARINA MILEVSKAYA ■ 553 GREEN SHAREHOLDER ACTIVISM AS A RESPONSE TO FINANCIAL CRISIS
ARUP MITRA, CHANDAN SHARMA, MARIE-ANGE VEGANZONES VAROUDAKIS ■ 553 ARE REFORMS PRODUCTIVE?: EXPLAINING PRODUCTIVITY AND EFFICIENCY IN THE INDIAN MANUFACTURING
MOHAMED M. MOSTAFA ■ 583 CITIZENS AS CONSUMERS: PROFILING E-GOVERNMENT SERVICES’ USERS IN EGYPT VIA DATA MINING TECHNIQUES
SEYYED MOHAMMAD MOUSAVI, ASGHAR NAZARIAN ■ 592 URBAN FORM AND SUSTAINABLE DEVELOPMENT: THE CASE STUDY OF TEHRAN CITY
A. G. MURZAGALIYEVA, D. S. AUSHAKHMAN, S. B. GUMAROVA ■ 601 RISK MINIMIZATION IN HIGHER EDUCATION UNDER THE REQUIREMENTS OF QUALITY IMPROVEMENT
ROY NELSON ■ 605 THE CULTURAL FOOD DYNAMIC IN IRELAND
PHUNG MINH HANG NGUYEN, UTZ DORNBERGER ■ 620 FUNCTIONAL UPGRADING IN GLOBAL APPAREL VALUE CHAIN: THE CASE OF VIETNAM
NOORSIDI AIZUDDIN MAT NOOR, CHRIS EVES, NOOR FAIZAH ABDUL MUTALIB ■ 629 THE SIGNIFICANCE OF THE RESIDENT’S KNOWLEDGE MANAGEMENT IN MANAGING THE RESIDENTIAL PROPERTY
MARIA OBESO, MARIA SARABIA, JOSE M. SARABIA ■ 640 KNOWLEDGE MANAGEMENT LIKE A KEY ELEMENT IN OECD COUNTRIES
LUTFU OZTURK, SEMA AY, HILAL YILDIRIR KESER ■ 650 TURKEY’S CONVERGENCE TO THE EU: CATCHING UP OR FALLING BEHIND?
PALOMA SANTANA MOREIRA PAIS, FELIPE DE FIGUEIREDO SILVA, EVANDRO CAMARGOS TEIXEIRA ■ 658 IMPACT OF BOLSA FAMILIA PROGRAM UPON CHILD LABOR IN BRAZIL IN 2006
A. P. PAKHOMOV, M. V. BALASANYAN, Y. V. DUKHOV, V. V. MINAEV ■ 669 LEGAL REGULATION AND MECHANISMS OF A CURRENCY TURNOVER CONTROL IN THE RUSSIAN FEDERATION
RUTJA PHUPHAIBUL, MANEE APANATIKUL, KUSUMA KHUWAWATSAMRIT ■ 679 A MODEL FOR HEALTH DEVELOPMENT BASED ON THE SUFFICIENCY ECONOMY PHILOSOPHY IN THAILAND
DAMIR PIPLICA ■ 689 POLITICAL BUSINESS CYCLES IN TRANSITION COUNTRIES, EU MEMBER STATES
NAJLA PODRUG, MAJA DARABOS, JOSIPA SEMREN ■ 701 MANAGING FOREIGN SUBSIDIARIES IN FRENCH MULINATIONAL CORPORATIONS
EVA PONGRACZOVA ■ 711 SOCIAL ENTREPRENEURSHIP AND CORPORATE SOCIAL RESPONSIBILITY IN SLOVAKIA
RENU POOKBOONMEE, RUTJA PHUPHAIBUL ■ 718 PREDICTING HELMET USE INTENTION AND BEHAVIOR DURING MOTORCYCLE RIDING OF THAI ADOLESCENTS
LJILJANA RAKIC, RADIVOJE STOJKOVIC ■ 727 NEW PUBLIC MANAGAMENT IN EDUCATIONAL SYSTEM OF THE REPUBLIC OF SERBIA
KERRY J. REDICAN, PATRICIA KELLY, KAJA M. ABBAS, FRANCOIS ELVINGER, MADISON GATES, KATHY HOSIG, SUSAN WEST MARMAGAS, SHEILA CARTER-TOD ■ 735 MALAWI, ZAMBIA, AND THE UNITED STATES: CREATING SYNERGY AND PUBLIC HEALTH CAPACITY BUIDLING TO ADDRESS HEALTH AND SOCIAL PROBLEMS
SANDA RENKO ■ 745 CONCEPTUAL RELATIONSHIPS BETWEEN TRADE AND TOURISM
RUSTEM SAGINDIKOV ■ 755 STRATEGY OF INTENSIFICATION OF FOREIGN ECONOMIC ACTIVITIES OF KAZAKHSTAN UNDER WORLD ECONOMY GLOBALIZATION
APPIAH SARPONG, MICHAEL ADUSEI ■ 763 MULTINOMIAL LOGISTIC ANALYSIS OF “SUSU” CONTRIBUTION IN GHANA
MUSTAFA SEVUKTEKIN, HİLAL YILDIRIR KESER, SEMA AY, ISİN CETIN ■ 773 TRANSPORTATION SECTOR IN TURKEY: FUTURE EXPECTATIONS ABOUT RAILWAY TRANSPORTATION IN TURKEY
DIPAK DAYANAND SHINDE ■ 786 SOCIAL SECTOR DEVELOPMENT IN INDIA
SILVIA SIPIKALOVA ■ 796 REFLECTION OF POVERTY AND SOCIAL EXCLUSION IN THE CHANGED SOCIOECONOMICS CONDITIONS IN THE SLOVAK REPUBLIC
ANNA SITEK ■ 807 ROLE OF NON-GOVERNMENTAL ORGANIZATIONS ON RURAL AREAS IN POLAND
DRAGOLJUB STOJANOV ■ 814 QUO VADIS GLOBAL ECONOMY? (TITANIC (THE WORLD ECONOMY) SAILS ALL OVER THE WORLD OCEANS WITHOUT A CAPTAIN)
AGATA SUDOLSKA ■ 826 CRITICAL SUCCESS FACTORS FOR PRO-INNOVATIVE COOPERATION BETWEEN FIRMS – EMPIRICAL RESEARCH IN POLAND
ONUR SUNAL, AYDA BUYUKSAHİN SUNAL, HATİCE MUTLU ■ 837 FINANCIAL WELL BEING AND FINANCIAL BEHAVIOUR: A CROSS CULTURAL STUDY (TURKISH AND FRENCH STUDENTS)
OSMAN MURAT TELATAR, MURAT CAN GENC, HILAL YILDIRIR KESER, SEMA AY, M. KEMAL DEGER ■ 843 THE CAUSALITY RELATIONSHIPS BETWEEN FDI AND R&D IN EUROPEAN UNION
ILARIA TUTORE ■ 851 EXPLORING THE EFFECT OF NATIONAL CULTURE ON CORPORATE ENVIRONMENTAL PROACTIVITY
JAMERSON VIEGAS QUEIROZ, ABNER VICENTE BRAGA, FERNANDA CRISTINA BARBOSA PEREIRA QUEIROZ, JESSICA MONYK TIBURCIO DE SOUZA, RENATA DE OLIVEIRA MOTA ■ 862 STRATEGIC PARTNERSHIP BETWEEN PRIVATE ORGANIZATIONS AND UNIVERSITIES: THE SEARCH FOR REGIONAL DEVELOPMENT THROUGH SOLUTIONS FOR HOSPITAL MANAGEMENT
MANAGING GEN Y IN THE UNITED ARAB EMIRATES: CHALLENGES IN A UNIQUE LABOR MARKET Hwee Ling Lim The Petroleum Institute, Sas Al Nakheel Campus, UAE
[email protected] ABSTRACT The demographic trends of the United Arab Emirates (UAE) herald the entry of a large Generation Y (Gen Y) segment into the country’s workforce that occurs in tandem with the retirement of the Generation X. Companies in the UAE need to attract and retain talented human resources hence this trend has implications for the continued economic growth of the country. However, little is known about Gen Y in the UAE since research on this young cohort has largely been conducted outside the Arabian Gulf. Furthermore, the asymmetric distributions of the UAE population and labor force by nationality, which are positively skewed for expatriate residents, present a diverse population that poses further challenges in understanding the motivations of this generation. This study examined the life priorities and work preferences of Gen Y Emiratis and expatriates in the UAE to further understand their motivations, strengths and aptitudes that could guide organizations in forming strategies to effectively recruit, retain and integrate this new generation into the nation’s workforce. Survey and interview results were analyzed for correspondence between choices made for life priorities and work preferences, as well as differences in the preferences of Emirati and expatriate respondents. Recommendations for the effective recruitment and retention of Gen Y were provided to help organizations manage this young generation who are central to the future of the Middle-East region. Keywords: Generation Y, Generational studies, Human resource management, Motivation 1 INTRODUCTION The United Arab Emirates (UAE) population demographics indicate the imminent entry of a large Generation Y (born 1980–1999) segment into its workforce. The country’s continued economic growth depends on its ability to attract and retain this new cohort of talented human resources. However, little is known about Generation Y (Gen Y) in the UAE since research on this group has largely been done outside the Arabian Gulf region. Moreover, the asymmetric distribution of the UAE labor force by nationality, which is positively skewed for expatriate residents, presents a diverse and unique workforce composition that poses challenges to understanding the motivations of this generation. This study examines the life priorities and work preferences of Gen Y Emiratis and expatriates in the UAE. It also provides recommendations to organizations for the effective recruitment and retention of Gen Y workers. The findings would provide greater insight into Gen Y motivations, strengths and aptitudes that would help companies organizations manage this young generation who are central to the future of the Middle-East region. 2
LITERATURE REVIEW
2.1 UAE demographic and workforce generations A generation is a cohort of individuals grouped by its age, and shares the historical and social experiences, behavior and beliefs that are common to that time (Kupperschmidt, 2001). There are five commonly accepted generations (Rajan, 2007) grouped by birth years: Traditionalists
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(1925–1945); Baby Boomers (1946–1964); Generation X (1965–1979); Generation Y (1965– 1979); and Generation Z (from 2000), all of which are present in the UAE population. In 2011, the UAE population was estimated at 5.1 million with 19% nationals (Emiratis) and 81% expatriates. The 2010 labor force displayed a similar pattern with 15% Emiratis and 85% expatriates (CIA-The World Factbook, 2011). Table 1 shows the whole population distributed by generation, which indicates that in 2010, Gen X and Y were the two largest demographic groups (35%; 36%) followed by Gen Z (16%). However, by 2015, Gen Y will be the largest group (45%) whereas Gen X will have declined (26%). As official UAE labor force statistics distributed by both generation and nationality are not available, an extrapolation of the population figures to the workforce suggests that the retirement of Gen X will have a large impact in terms of worker replacement numbers and knowledge transfer. Of special concern is Gen Y’s entry into the labor market as they will overtake Gen X in sheer numbers by 2015. Table 1: UAE population, 2005–2015 by generations (US Census Bureau, 2012) Generation Traditionalist 1925-1945 Baby Boomer 1946-1964 Generation X 1965-1979 Generation Y 1980-1999 Generation Z from 2000 Total
2005 70,360 2% 758,786 19% 1,682,728 41% 1,190,636 29% 384,092 9% 4,086,602
2010 45,057 1% 567,243 11% 1,752,082 35% 1,811,635 36% 799,576 16% 4,975,593
2015 29,784 1% 383,721 7% 1,513,689 26% 2,588,396 45% 1,264,170 22% 5,779,760
A generation is more than a group of individuals within the same age range. Each cohort is bound by shared experiences of the political, economic and social events of that time, that shape the generation’s values, attitudes and behavior (Crumpacker and Crumpacker, 2007). If that is the case, the Gen Y cohort would have shared experiences of life events in the UAE that shaped their values and attitudes. However, it may not be possible to assume that they are a homogenous group who had undergone critical development periods together in the same time and place, and therefore have similar life and work motivations. While Emiratis are citizens; born and mostly raised in the UAE, the expatriates are from diverse countries who had mainly migrated to the UAE for work. With this unique labor market composition, there is likely to differences in life values and work attitudes between the Emirati and expatriate Gen Y workers. A better understanding of these differences from this study would help companies in the UAE recruit and integrate this heterogeneous cohort into its existing workforce. 2.2 Values and motivation: Concepts and instruments from the literature Values are “desirable states, objects, goals, or behaviors, transcending specific situations and applied as normative standards to judge and to choose among alternative modes of behavior” (Busacca, Beebe and Toman, 2010, p. 3). Schwartz’s (1994) values theory defines 10 life values by their underlying motivation.
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The theory assumes that a) individuals differ in importance placed on values; b) values are a basis for judging appropriate behavior; c) values provide a sense of future goals individuals would like to achieve. The Schwartz Value Inventory (SVI) measures an individual’s assessment of the importance of 10 life values grouped into four dimensions: - Self enhancement (values: achievement, power, hedonism) - Self-transcendence (values: universalism, benevolence) - Conservation (values: security, tradition, conformity) - Openness to change (values: stimulation, self-direction, hedonism) Motivation refers to forces acting on or within an individual to direct behavior (Gibson, Ivancevich, Donnelly, Jr. and Konopaskeet, 2006). In the context of work, motivation describes the internal and external factors affecting employee productivity. According to Herzberg’s (1968) two-factor theory, job satisfaction is affected by extrinsic and intrinsic factors. Extrinsic (hygiene) factors do not necessarily motivate a person in his job, but their absence would result in dissatisfaction. Intrinsic factors include feelings of achievement, responsibility, recognition. Their absence may not result in dissatisfaction, but their presence increases motivation. Herzberg’s theory assumes that hygiene factors must be present to avoid employee dissatisfaction before intrinsic motivators can be used to stimulate work performance. Herzberg’s distinction between extrinsic and intrinsic factors forms the basis for understanding Twenge, Campbell, Hoffman and Lanceet’s (2010) model used here to measure work preferences on five motivational dimensions: - Extrinsic work motivators are tangible rewards such as salary, benefits, promotion opportunities, status of job title. - Intrinsic work motivators are intangible rewards that reflect an inherent interest in the work that lead individuals to being motivated to work for its own sake. - Leisure work motivators are rewards that enable a work-life balance such as having flexible work hours and independence from direct supervision. - Social/Affiliation work motivators are emotional rewards that satisfy the need to be connected to others such as interpersonal relationships with members in work teams. - Altruistic work motivators are intangible rewards that satisfy the need to help others and contribute to the wider society. The SVI and Twenge et al.’s motivational model were used here with the assumption that work preferences are the means by which life priorities could be achieved. In other words, individuals who regard Self-enhancement (focus on self) as an important life priority are likely to also regard the values of Achievement, Power and Hedonism as important. Hence, they would be more motivated by extrinsic work motivators such as having a job that offers a high salary, status and promotion opportunities. 3
METHODOLOGY
3.1 Sample and instruments Purposive sampling (Patton, 2002) was used to select participants with the following characteristics: Emiratis; expatriates; aged 20–30 (in 2010); both genders; working adults and
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university students from engineering and business fields. Face-to-face surveys and interviews (individual; focus group) were conducted with a self-administered paper-based survey questionnaire and an interview questionnaire. The closed and open-ended questions covered demographics, life priorities, work preferences, and suggestions on strategies for Gen Y recruitment and retention. The quantitative and qualitative data obtained were statistically and interpretively analyzed, respectively. This mixed-methods design enabled method triangulation: when the same questions were asked in both the survey and interview, it compensated for the weaknesses present in using only one method, thus strengthening the validity of the study. The sample size was 166 respondents of which 79 respondents were surveyed and 87 respondents interviewed (Table 2). 9 surveys and two individual interviews were discarded. The usable datasets were 70 survey returns, 70 individual interviews and 5 focus group interviews (n=15). The results presented here are based on 155 respondents. In this research, ethical issues of confidentiality and participant protection were ensured by deleting participant identifying details and replacing actual names with codes in data processing and publication. Informed consent was handled by explaining to participants the topic being researched, what was expected and that they could withdraw from the study at any time, without penalty. Table 2: Datasets Datasets Usable Survey returns 70 Individual interviews 70 Focus group interviews 5 x 3* (n=15) Final datasets 155 *5 focus groups with 3 respondents each
Discarded 9 2 0 11
Total 79 72 15 166
3.2 Constructs and measures Life priorities refer to the guiding principles in life by which individuals assess the importance of 10 personal values combined into four inter-related and interacting groups (Schwartz, 1994). The Schwartz Value Inventory (SVI) was adapted to measure an individual’s assessment of the importance of 10 life priorities on four dimensions (section 2.2). Table 3 lists the questions that are the operationalized measures of the construct. Work preferences are the beliefs and motivators that influence employee behavior at work (Dose, 1997). Twenge et al.’s (2010) model was used to measure the importance of work preferences on five motivational dimensions (Table 4). These measures assume that work preferences are the means by which life priorities could be achieved.
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Table 3: Life priorities questions Dimensions Self enhancement (focus on self)
Personal Values* Power, Achievement, Hedonism
Self-transcendence (focus on non-self)
Universalism, Benevolence
Conservation (seeking stability)
Security, Tradition, Conformity
Openness to change (seeking change)
Stimulation, Self-direction, Hedonism
Measures as survey questions (Q12)** a) Being successful in a high-paying career or profession e) Having lots of free time to relax or do things you want to do f) Being famous c) Living a very religious life d) Being a good parent g) Helping other people who are in need b) Having a successful marriage c) Living a very religious life d) Being a good parent h) Owning your own home e) Having lots of free time to relax or do things you want to do
*Certain options may overlap values and dimensions. For example, choice of option c. living a very religious life, may imply valuing Benevolence or Tradition. **Q.12 To what extent are the following goals in life important to you personally on a scale of 5 (One of the Most Important) -1 (Don’t Know)?
Table 4: Work preferences questions Motivational dimensions Extrinsic Intrinsic Leisure Social/Affiliation Altruistic
Measures as survey questions (Q17)* a) Having a job with high salary, status and chances for promotion b) Having a job where I can learn new skills and be creative c) Having a job that leaves a lot of time for other things in my life d) Having a job where I can meet a lot of people e) Having a job where I can help society directly
*Q.17 To what extent are the following aspects about your job important to you personally on a scale of 5-1(One of the Most Important) -1 (Don’t Know)?
4 RESULTS AND DISCUSSION The demographic data showed that the 155 respondents consisted of Emiratis (42%) and expatriates (58%) who were mainly single, male, in their early 20s (20–24 years), employed (42%) or university students (54%). The Emirati and expatriate respondents differed most in their income and living arrangement. More expatriates declared a lower average monthly income (below USD 5,172) and were more likely to live alone. 4.1 Findings: Life priorities and work preferences Respondents ranked the importance of a set of personal life values that were represented by 8 statements (Table 3) on a 5-point scale (One of the Most Important [5] - Not Important [2], Don’t Know [1]). The common most important life dimension to Emirati and expatriate respondents was Conservation: valuing Security, Tradition, and Conformity. Although Self-
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transcendence (valuing Universalism, Benevolence) was the second most important life dimension to Emiratis, it was least important to the expatriates (Table 5). Table 5: Most important life priorities: Emirati and expatriates Life priorities Emirati Conservation (seeking stability) Self-transcendence (focus on non-self) Self enhancement (focus on self) Openness to change (seeking change)
56.5% 47.7% 31.8% 29.2%
Expatriate Conservation (seeking stability) Self enhancement (focus on self) Openness to change (seeking change) Self-transcendence (focus on non-self)
39.2% 31.9% 30.0% 27.8%
For work preferences, five work motivational dimensions were ranked based on Twenge et al.’s model (Table 4). Each dimension was represented by a statement, on the same 5-point scale. No differences were found in work preferences ranking between the nationality groups (Table 6). Both Emiratis and expatriates regarded extrinsic work motivator as most important and the altruistic work motivator as least important. This finding was consistent with the expatriates’ low ranking of Self-transcendence. However, Emiratis regarded Selftranscendence as the second most important life dimension. Hence, it is surprising that they did not desire a job where I can help society directly. Table 6: Work Preferences: Most Important Work Preferences Extrinsic motivator Intrinsic motivator Leisure motivator Social/affiliation motivator Altruistic motivator
Emirati 63.1% 46.2% 30.8% 21.5% 18.5%
Expatriate 67.8% 43.3% 23.3% 15.6% 12.2%
4.2 Discussion of findings This study held three main assumptions: (a) individuals value 10 basic priorities in life and their work preferences indicate the means by which they choose to achieve these life goals; (b) there would be a correspondence between life priorities and work preference choices. Hence, the study assumes that individuals who regard the Self-enhancement life dimension as most important would value highly power, achievement, and hedonism. To attain selfenhancement, they would prefer jobs offering extrinsic motivators that provide tangible rewards towards that life goal (section 2.2). Also, given the unique UAE labor force composition, with a highly heterogeneous workforce in terms of nationality, culture and background, a third assumption was held: (c) differences are present in the life priorities and work preferences of Emirati and expatriate respondents. The assumption of a correspondence between choices for life priorities and work preferences was partly supported. Conservation was the most important life dimension to both Emiratis and expatriates (Table 5) and they were most motivated by extrinsic rewards which is
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consistent with the chosen life dimension. To further explain: since respondents seek stability in life domains such as family (marriage, home ownership, parenting) and spirituality (religious life), it was expected (and found in the results) that the extrinsic motivator was also most desired as it enables the material means to attain such stability. Interestingly, expatriates ranked both Self-transcendence and altruistic work motivator as least importance which matched the life priorities and work preferences choices. However, this consistency was absent in the Emirati results. Emiratis regarded Self-transcendence as the second most important life dimension yet did not desire a job where I can help society directly. This pattern could be an effect of the instrument since only one of three measures for Self-transcendence (Q.12g. helping other people who are in need) corresponded directly to the altruistic motivator (Q.17e. having a job where I can help society directly) which could have weakened the association. It could also be due to economic factors in the UAE as the country had experienced rapid inflation in the recent years. The assumption that Emirati and expatriate respondents would show differences in life priorities was also partly supported. Although Conservation was most important to both groups, there were differences in the ranking of the other life dimensions. In particular, the second most important life dimension was Self-transcendence for Emiratis but it was Selfenhancement for expatriates. This pattern could be due to a demographically heterogeneous workforce: Emiratis are citizens with strong familial/societal roots in their own country and their values of Universalism/Benevolence are manifested in the extension of care and concern to the wider local community. However, the expatriates had migrated to the UAE for work and would subsequently return to their countries of origin. Hence, self-enhancement or the egocentric needs to achieve career success and be independent are naturally high priorities. Contrary to the assumption of differences in work motivators between Emirati and expatriate respondents, no differences were found in their ranking of all work preferences (Table 6). Since differences were found in the ranking of life dimensions (besides conservation), work preferences were expected to show differences as well. This symmetrical prioritization of work preferences by both groups could be due to factors beyond life values held. The importance placed on extrinsic work motivators could be due to the recent high inflationary pressures in the UAE. The rising cost of living would have impacted all residents regardless of nationality. The importance placed on intrinsic work motivators by expatriate respondents was expected since foreign workers are mainly recruited for their strong job skills and work ethics. Hence, having a job with opportunities for career and skills development would be vital to the continued employability of expatriates. However, the same importance given to intrinsic work motivators by Emiratis was unexpected. In contrast to the negative stereotyping of Emirati workers by private sector employers as under skilled, unmotivated and unproductive (Mashood, Verhoeven and Chansarkar, 2009), the Emirati respondents seek jobs that offer training and career development prospects. This could be explained by forthcoming changes to employment opportunities for nationals. As public sector employment for nationals reaches saturation (Al Ali, 2008), Emirati Gen Ys would face greater competition for government jobs especially when the cohort becomes the largest demographic group by 2015. Hence, the Emirati Gen Ys would need to develop strong work skills to effectively participate in the private sector job market.
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5 CONCLUSION AND RECOMMENDATIONS In the interviews, respondents were asked for strategies that UAE employers could adopt to recruit and retain Gen Y workers. The main themes from the suggestions indicated that the extrinsic motivator is a factor in both recruitment and retention but the intrinsic motivator seems to gain importance in retention. Hence, this study offers the following recommendations: - offer competitive salaries and benefits so that future/current employees would feel financially secure hence enabling them to fulfill their most important life priority of seeking stability and meeting their need for extrinsic work motivators. - offer professional training programs so that Gen Y employees would feel that they are learning new skills and benefiting from working in the company. They may also regard their important life goal of seeking stability as achievable when they feel that the organization is investing in their career development that enhances their employability. - allow creative space and less direct supervision so that Gen Y employees would have opportunities to bear greater responsibilities and prove themselves. This would fulfill their need for interesting and challenging work that provides intrinsic satisfaction. With a small purposive sample, this study had presented a limited picture of the unique labor market challenges in the UAE that is not claimed to be statistically generalizable to wider populations. Hence, avenues for future research may include the following: use a larger and more varied sample that includes other occupational types which would capture a more representative Gen Y cohort. Also, as more Emirati females enter the country’s workforce, a comparative study on motivators of male and female Emirati Gen Y could reveal different patterns in work preferences that could inform better managerial practices in the UAE. 6 1.
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