Saudi Arabia's Oil Impact on World Economy Research Paper

Saudi Arabia's Oil Impact on World Economy - Research Paper Example The establishment of Saudi Arabia Historically, the development of the oil industry in Saudi Arabia has been closely associated with the political events that led to the establishment of the state. Most oil exporting countries in developing world historically entrusted their mining operations to national companies, mainly because of lack of adequate capacity to embark on the process and Saudi Arabia is not an exception. The building of Saudi Arabia state differs from other neighboring states in the region such as Iraq and Turkey. According to Huyette (1985), Saudi Arabia is a relatively new state founded in 1932 following the merger of Hejaz and Nejd kingdoms. Islam, one of the major religions in the world originated from Saudi Arabia in the early 7th century (David and Johns, 1982). One of the most distinguishing characteristics of the country is its homogenous Arab population, which has enabled development of an indigenous political system that has ruled the country for many years without significant foreign influence. According to Huyette (1985), Arabs originated from Saudi Arabia and historically, the Ottoman Empire was the only foreign influence in the country. Although most of the current Saudi Arabian territory was under the Ottoman Empire, its influence in the country remained minimal especially in the interior. ... The poor control of the Saudi Arabia territory by Ottoman Empire resulted into the emergence of Wahhabism, a Saudi dynasty in the mid 18th century. The Saudi dynasty headed by the indigenous Al Saud family established the current Saudi Arabian territory and the dynastic rule that continues up to date (David and Johns 1982). Abdul Aziz a ruler of the Al Saud family established the current Saudi Arabian country after seizing the control of Nejd kingdom and Al Hasa region from the Ottoman Empire and King Al Rashid. The vast oil deposits were later discovered the in Al Hasa region, which included the Persian Gulf (Vitalis, 2007). Therefore, the formation of Saudi Arabian country resulted from a gradual process of reunification, where the local Al Saud rulers fought and defeated the indigenous rulers, and seized the conquered territories that were later united to form the current Saudi Arabia. Turkey did not enjoy indigenous political process such as Saudi Arabia. Historically, different empires, including the Hittite, Persian, Roman, and the Byzantine empires governed Turkey (Lloyd, 1999). Later in 13 century, the country fell under the Ottoman Empire. When the Ottoman Empire declined in the 17th century, involvement of European countries such as Russia, France and Britain greatly influenced the formation of the Turkish state. Turkey was formally formed in 1923 and radical reforms undertaken to modernize the new country (Lloyd, 1999). Administrative structures established by the Ottoman Empire such as ottoman sultanate and caliphate were banned and replaced with modern political and economic reforms. In addition, the country secularized its society from

Discuss the statement In the future, hierarchical management Essay

Discuss the statement In the future, hierarchical management structures will be less evident. The management of intellectual - Essay Example 23). Hierarchical management structure is an organisational structure in which each and every entity of an organisation follows a top down hierarchical level. It is true that the trend of hierarchical organisational management structure is shifting towards the flatter organisational management structure to enhance organisational communication process between several departments of the organisation (Boxall and Purcell, 2007, p. 98). There are several advantages and significance of flatter organisational structure. It enhances decision making process, operation cost control and better communication between the employees of different departments in an organisation. The essay will discuss on the statement that â€Å"In the future, hierarchical management structures will be less evident†. ... These economic issues and fluctuating global economic environment will motivate the leaders or the management of the organisation to adopt flatter organisational management hierarchy (Buchanan and Huczynski, 2010, p. 31). Each and every organisation is trying to focus on the business operation cost reduction. It is highly important for the organisations to control the operation cost in order to ensure high profit maximisation (Buelens, Sinding, Waldstrom, Krietner and Kinicki, 2011, p. 69). Several leading organisations are adopting flatter organisational structure in order to reduce business operation cost. A flat organisational structure can be defined as an organisation structure with limited or no management level between the staff and management level employees. Flat organisation structure deals with low employee supervision (Burke, 2012, p. 36). The leaders in a flat organisation use to promote the employees and involve them in the decision making process. Organisation can gain huge benefit through flat organisational structure in this economic distress period. The major objective of flat organisation structure is to eliminate the level and salaries of middle management. This reduction in management level and salaries help the organisation to reduce overall business operation cost and budget of an organisation (Dawson, 2003, p. 84). In addition to this, flatter organisational structure elevates the level of responsibility of the employees in an organisation as this organisational structure brings more efficiency in the organisational communication process (Maylor and Blackmon, 2005, p. 89). As this organisational structure removes the excess layers of a management structure, the speed of coordination and communication