News Highlights
Author:
Maha Al-Azar,
Media Relations Officer,
Office of Information and Public Relations,
ma110@aub.edu.lb
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AUB HR conference encourages managers to invest in human capital
 | PM Siniora at the opening ceremony: 'Human capital is what gave confidence in Lebanon's economy'
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Investing in human capital is the most important thing companies can do, even during an economic crisis, said participants at a conference organized by the Suliman S. Olayan School of Business (OSB) at the American University of Beirut.
Held in West Hall on May 12 and 13, the "Second Middle East Human Resources Conference" attracted a large audience of academics, businessmen, and officials.
During the conference opening ceremony and gala dinner held on May 11 at the Phoenicia Intercontinental Hotel, Prime Minister Fuad Siniora argued that it is human capital that had made Lebanon resilient during the most difficult periods of its turbulent 65-year history since independence.
Siniora said that despite an absence of natural resources and wealth, Lebanon's dependence on the skills and talents of its citizens is what made it a success story throughout the sixties and early seventies of the last century. |
 | [L-R] Dorman, Siniora, and Najjar cut cake at gala dinner to inaugurate conference
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"This human capital was what gave [investors] confidence in Lebanon's economy," he said. "We have to reinforce this confidence through transparent fiscal, monetary, and economic policies as well as through a transparent public administration... and an independent judiciary...in order to build the rule of law."
Siniora blamed internal and external factors, including wars and political instability for Lebanon's stunted economic growth.
"The opportunities we were given over the past three decades...were great...but we wasted them, and we should all share the responsibility for that," he said.
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 | Najjar [L] thanks conference's corporate sponsor, NBK, through its rep, Hani Sharif
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Siniora projected a change in the dynamics of the world's economy, as indicated by the rise of two new economic powers, namely India and China. Both these countries, the former finance minister noted, have a developed manufacturing sector and will not rely on imports of cheap products as much as the current economic leaders do. On the other hand, countries with raw material, such as many on the African continent, will find new markets for their goods in China and India. All this will change the dynamics of the world economy, and emerging nations, such as Lebanon, will have to adapt to this new scenario. "Lebanon will have to develop its technology sector, and manufacture value-added goods... otherwise it will increasingly find itself as merely an importing country," said Siniora.
For the time being, what has compensated for Lebanon's lack of initiative in developing its pool of talented workers and value-added sector were expatriate remittances which have kept the economy from stagnating, added Siniora.
"Why can Lebanese succeed as individuals or companies, but not as a nation," asked Siniora.
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 | Azour calls for recruiting talent in politics, not just in public and private sectors
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In response, he suggested implementing his vision for a comprehensive national development plan that involves a partnership between the private and public sectors. Moreover, acknowledging that flaws in the current political system are what is handicapping the establishment of the rule of law and, subsequently, economic development, Siniora argued that the only way to end this vicious circle is by promoting "national belonging."
By this, he meant promoting equal opportunity, abolishing clientelism, and promoting national allegiance.
"That's why I confirm to you that the reform process which has started cannot stop...no matter how loud its detractors will shout," he said.
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 | Students display the audience's top poster picks
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This year's conference theme was "Talent Management in Time of Crisis."
It addressed a number of topics, including the impact of the crisis on Lebanese labor markets, effective leadership styles that work in a Middle Eastern culture, managing talent, and crisis management.
After a welcome word by Dean George Najjar, in which he thanked the conference's corporate sponsor, the National Bank of Kuwait, Former Finance Minister Jihad Azour delivered a keynote address, during the first session, in which he warned of the changes and challenges the economic crisis will bring. While it is natural for managers to think of cutting training and development budgets, Azour urged them all to think differently. "Countries that will succeed are those that will invest more in their own pool of talented individuals," he said. "[But] it's not enough to give them incentives and salaries, but also importance, leadership, and the ability to participate in part of the decision-making." |
| Moreover, Azour urged Lebanese to think of promoting talent in politics, not just in the public administration or the private sector.
"If there is an area we need to invest in, it should be less in infrastructure and buildings, and more in education and people," he added.
Nassib Ghobril, the chief economist and head of economic research and analysis at Byblos Bank, also warned Lebanese of being complacent and thinking that they are immune to the economic crisis.
"All those who say we are immune, are not being honest," he said. "The only country in the world that might be spared is probably North Korea," he added in reference to the closed-off communist country, prompting laughter. |
Ghobril argued that because Lebanon's economy relies heavily on expatriate remittances, the national economy will certainly be affected. Lebanese expatriates, he emphasized, work in countries that have been affected by the crisis, including Gulf Cooperation Council countries and the United States; as a result, tourism and the real-estate sector will see reduced activity. Lebanon is the largest recipient per capita of remittances, if the micro-economies of French Polynesia and New Caledonia are excluded, noted Ghobril.
A number of other prominent speakers also participated in the conference.
Mark Williams, the director of Leadership and Talent at the Hay Group, highlighted six different leadership styles, noting that effective managers generally use at least four of five styles to create a positive work climate that optimizes performance, productivity, and innovation.
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Unfortunately, about 70 percent of leaders in the Middle East, use a leadership style that stifles innovation, motivation, and initiative, according to a Hay Group study. This style--the coercive leadership style--is characterized by managers who command their workers on what to do, closely monitoring their work, and controlling their tasks. "If you use the coercive style as your only dominant style," said Williams, "you've got a 3.5 percent chance of creating a high-performance climate, which, to me, is a guarantee of failure."
Other speakers also included Middle East Airlines' Mohammed El-Hout, NBK's Khalil Kotran, George Saab from the Dubai Telecom and Media Free Zone Authority (TECOM), Rana Ghandour Salhab from Deloitte ME, Jacqueline Moukheiber from Audi Bank, Majda Labadi from Hikma Pharmaceuticals, and James Radulski, AUB's vice-president for HR. |
The two-day conference served as a platform for regional business leaders and human resources managers to address major challenges ahead, highlight legitimate concerns, and brainstorm for possible and viable solutions pertaining to our part of the world. A student poster exhibition on human resources was also held on the sidelines of the conference, and visitors were allowed to vote for their favorite.
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