Corporate Governance Practices in Abu Dhabi

This assignment delves into corporate governance practices within Abu Dhabi's business landscape. It examines the emirate's economic aspirations outlined in Plan Abu Dhabi 2030 and explores how corporate governance contributes to achieving these goals. The analysis considers the influence of key stakeholders, including government entities, corporations, and international organizations, on shaping corporate governance frameworks. Furthermore, it investigates the challenges and opportunities that Abu Dhabi faces in implementing effective corporate governance practices, drawing upon relevant case studies, research findings, and industry best practices.

Running Head: The strategic role of corporate governance mechanisms on employee management in the
government sectors of Abu Dhabi – An initiative to vision 2030
The strategic role of corporate governance mechanisms on employee
management in the government sectors of Abu Dhabi – An initiative to vision
2030
Research Proposal

The strategic role of corporate governance mechanisms on employee management in the government
sectors of Abu Dhabi – An initiative to vision 2030 1
Table of Contents
Abstract.......................................................................................................................................................1
Introduction & Background of Research......................................................................................................2
Review of Literature:...................................................................................................................................4
Corporate Governance............................................................................................................................4
Strategy for employee role in corporate governance..............................................................................5
Vision 2030 of Abu Dhabi........................................................................................................................5
Research Gap...............................................................................................................................................6
Justification and Relevance of the study.....................................................................................................7
Relevance to the Private Health Care Sector...........................................................................................7
Relevance to the Academicians, Students and others.............................................................................7
Need & Scope of Study:...............................................................................................................................8
Objective of the Study.................................................................................................................................8
Research Framework...................................................................................................................................8
Hypothesis of the Study...............................................................................................................................9
Research Design........................................................................................................................................10
Research Methodology..........................................................................................................................10
Sampling design.....................................................................................................................................10
Universe............................................................................................................................................10
Sampling Unit....................................................................................................................................10
Sampling Element.............................................................................................................................10
Sampling Technique..........................................................................................................................10
Sampling Size....................................................................................................................................10
Data Collection Technique.....................................................................................................................11
Statistical Techniques for Data Analysis................................................................................................11
Descriptive statistics..........................................................................................................................11
Reliability..........................................................................................................................................11
Validity..............................................................................................................................................11
Normality Test...................................................................................................................................11
Hypothesis Testing............................................................................................................................11
Timeline of the study.............................................................................................................................11
Limitations of the study.............................................................................................................................11

The strategic role of corporate governance mechanisms on employee management in the government
sectors of Abu Dhabi – An initiative to vision 2030 2
References.................................................................................................................................................13
Abstract
Abu Dhabi is the capital of the UAE and is the largest of the seven emirates of UAE it lies on the
T shaped Island spread over 972 km2 with population of approximately 1.145 million with high
capita per income, AbuDhabi holds two third of the United Arab emirates economy that accounts
for $ 400 Billions. Abu Dhabi is been transformed into large and advanced metropolis and is the
center of political and industrial activities, Abu Dhabi is under the control of United Arab
Emirates government, who always favors the phased development of the city, United Arab
Emirates has a vision of 2030 in need of sustainable and phased and quality growth (Abu Dhabi,
2017)
The OECD Principles of Corporate Governance state "Corporate governance involves a set of
relationships between a company’s management, its board, its shareholders and other
stakeholders. Corporate governance also provides the structure through which the objectives of
the company are set, and the means of attaining those objectives and monitoring performance are
determined." (OECD, 2004)
Corporate governance is the most important tool to attain the specific objectives with the proper
balance between external and internal stakeholders that too with proper accountability
This research proposal is an attempt to study the role of strategic corporate governance on
employee management in the government sectors of Abu Dhabi in achieving the vision of 2030
Keywords: (Corporate Governance, Abu Dhabi, Vision 2030, Employee Management)

The strategic role of corporate governance mechanisms on employee management in the government
sectors of Abu Dhabi – An initiative to vision 2030 3
Introduction & Background of Research
Corporate governance as per the Cadbury report 1921 “ corporate governance is the system by
which companies are directed and controlled “and it is the duty of the person at higher hierarch
level to control and coordinate in order to achieve the organization goals as per the principles of
the corporate organization corporate framework should protect the rights of shareholders and
should make sure that shareholders get the value of their investment done and all the
shareholders get the equal treatment , corporate governance should ensure the legal rights of
stakeholders and the board of directors should control and direct the management in order to
achieve the company’s goal
In order to fulfill any big vision the foremost thing that can help in achieving that goal is the
corporate governance as true corporate governance can only help in achieving the big vision
whether it is at the organization level or the city or country level this research proposal is an
attempt to understand the role of corporate governance in the managing the employees of
government sector to achieve the big vision by the chief of Abu Dabi known as Vision 2030
which is to take Abu Dabi on the next phase of development the vision and to achieve this big
vision it is very essential to have a strong corporate governance because to achieve this vision all
the public sectors employees will have to pay pivot role
Corporate governance is the most important element for full filing any goals whether it is the
goal of some small company or MNC or whether it be the achievement of goal at city or country
level corporate governance is very essential, it is the framework under which big goals can be

The strategic role of corporate governance mechanisms on employee management in the government
sectors of Abu Dhabi – An initiative to vision 2030 4
achieved in systematic way keeping in mind the mutual growth of both the parties under the
framework of corporate governance there four famous theories Agency theory, stewardship
theory, resource dependency theory and stakeholders theory.
Agency theory gives the clear distinction between the owners (shareholders) of the company and
the “principals” recruited to manage the company called as agent, according to the stewardship
theory employees of the organization managers or executives are stewards of the owners of the
organization and both of them work on the common goal thus board of directors should not be
controlling mode whereas they should be in supportive role. Thinkers of resource dependency
theory believes that board of directors are the resource providers of the organization for e.g.
human resources, financial and other resources and the last but not the least is stakeholders
theories which is based on the concept that stakeholders should be treated well and should be
assured return for their investment.
Employee management is another important element for achieving any important goal at
company, city or country level. Human capital plays biggest role in achieving any goal and
managing the employees of the organization to achieve set goals, and to get the best productivity
from the employee it is very essential that employees are motivated and satisfied, motivation and
satisfaction are important variables of employee management, thus it is the duty of the board of
directors or the head of the organization to develop plan for time to time motivation so that big
goals and plan like vision 2030 can be achieved smoothly. Thinkers have developed many
theories on employee management based on the marshlow’s hierarchical need when the
organization belives take the need of employees at highest level employees work for the
organization at highest potential another theory developed is Douglas McGreorge theory X and
Y thinker of this theory divided employess in two categories X and Y employee X do not like

The strategic role of corporate governance mechanisms on employee management in the government
sectors of Abu Dhabi – An initiative to vision 2030 5
work and responsibilities for them rules and regulation and strict policies are required and y
employees like to work and they are self-motivated people when they are at their office and the
extension of this theory was theory Y developed by Dr William Ouchi who believes that social
interaction and group work can bring the increased productivity and is also the source of self-
motivation (Cole, 2004).
.
Review of Literature:
This part of proposal has been divided in three categories including research papers on corporate
governance, Abudabi Vision 2030
Corporate Governance
Black, et.al in his research study sought to study the impact of corporate governance on market value of
korean public companies, for this study, researcher developed the corporate governance index for 531
companies , and the research study revealed that corporate governance and market value of the companies
are positively related to each other there is a strong co-relation between corporate governance on
companies of the Korea on their market value (Black, et.al, 2003).
(Akram, 2014) in his research paper investigates the relationship of corporate governance on the
profitability of financial companies of Pakistan according to the researcher corporate governance is the
most important element in the current international business scenario as corporate governance is all about
thinking beyond the concept of profit maximization as it aims the win win situation for both , corporate
governance is actually the effective control of the top management in order to achieve the goals of the
organization keeping in mind the value of money for the stakeholders. Study revealed that corporate
governance is very essential for the profitability of the financial companies in Pakistan (Akram, 2014).

The strategic role of corporate governance mechanisms on employee management in the government
sectors of Abu Dhabi – An initiative to vision 2030 6
Strategy for employee role in corporate governance
(McDonnell,B 2011) in his research paper investigates the strategies for an of employees of the
organization in corporate governance and the research paper suggest that sustainability of
employees in effective completion of organization’s goal (McDonnell,B 2011
(Ngwube, 2013) investigates the factors which are essential for the success of corporate
governance in the organization according to researcher the function of board of directors in the
organization is to work for the shareholders in true spirit they should be able to make policies
and should continuously direct, control and regulate from time to time , researcher suggested the
factors which are responsible for the success of the organization are transparency for the sound
function of corporate governance in the organization transparency in day to day task is very
essential as low level of transparency leads to unethical managerial behavior, another factor is
whistle blowing which means rules and regulation for reporting of unethical practices in the
organization and a proper safeguard for the person who has reported the same this all depends on
the proper hierarchy in the organization. Other factor responsible for the success of the
organization is power concentration, concentration of power should not be in few hands as power
can bring the feeling of superiority in the person and can damage the subordinate’s confidence in
the system thus there should be balance in distribution of power other factor is formal and
periodic evaluation of the CEO this will help in time to time regulations of the task and if
necessary any step required to rework on some strategies can be worked out simultaneously.
Vision 2030 of Abu Dhabi
(Low, 2012) in the book Abu Dhabi’ s vision 2030 author concentrates on the journey of
Abudhabi for economic development author in book says the AbuDhabi is already moving on

The strategic role of corporate governance mechanisms on employee management in the government
sectors of Abu Dhabi – An initiative to vision 2030 7
fast track growth with the highest per capita income ,vision 2030 aims at” creative and
innovative knowledge based economy” with political and social development. Aim of vision
2030 is to convert traditional oil based economy to energy based economy (Low, 2012).
Figure 1 Transforming Abu Dhabi into a sustainable new economy by reversing Porter’s linear 3-stage
into a 4-stage development model.
Source: Jurong International Consulting et al., 2005, Book 1, Diagram 2, p. 27 (low, 2012)
Research Gap
The observation of the article reviewed shows that Lot of studies are done on corporate
governance , employee management and vision 2030 of AbuDhabi but yet none of the study
been done on the role of corporate governance mechanism on employee management in the
government sectors for full filling the vision 2030 effective.
AbuDhabi vision 2030 is the most biggest dream of AbuDhabi to the city in next level of
development to make them more economical strong with total work life balance with more and
New Energy-based
Service-based Knowledge-
based economy
Factor Driven Investment
Driven
Innovation
Driven Wealth Driven
Traditional oil based oil-
based economy

The strategic role of corporate governance mechanisms on employee management in the government
sectors of Abu Dhabi – An initiative to vision 2030 8
more connectivity and to provide the residents of Abu Dhabi the green environment to have
healthy life.
Justification and Relevance of the study
Various studies on, corporate governance and employee management and vision 2030 of
AbuDhabi but none of the study been done on the role of corporate governance mechanism on
employee management in the government sectors for full filling the vision 2030 lack of such
study provides motivation and scope for the present study.
Relevance to the Private Health Care Sector
 This study enables us to do the exploratory study on corporate governance and
employee management and vision 2030 of AbuDhabi
 The results of the study will help the board of directors and managers under them, they
will be able to have a better insight on the implication of effective corporate governance
for managing the employees of public sector in achieving vision 2030
Relevance to the Academicians, Students and others
 The study will help in understanding the corporate governance in reference to Abu Dhabi
 The study will contribute to the existing body of knowledge and provide new dimensions
for further studies.
Hence, the proposed study would be a systematic attempt to analyze diverse dimensions of
corporate governance in Abu Dhabi

The strategic role of corporate governance mechanisms on employee management in the government
sectors of Abu Dhabi – An initiative to vision 2030 9
Need & Scope of Study:
Present study is an attempt to understand the factors and its impact in successful implication of
corporate governance in managing the employees of public sector in full filling the vision 2030
of AbuDhabi . This will help in understanding determinants that will lead to successful
implication of vision 2030, and managers will be able to know which factor contributes more in
successful implication vision 2030
Objective of the Study
1. To analyze the framework of Corporate governance in Abu Dhabi
2. To examine the relationship between Corporate governance and employee management
3. To examine the impact of corporate governance on successful implementation of Vision
2030
Research Framework
Transparency
Whistle Blowing
Power
Concentration
Corporate
Governance
Regular Evaluation
of board of
Directors
Abu Dhabi Vision
2030Motivation

The strategic role of corporate governance mechanisms on employee management in the government
sectors of Abu Dhabi – An initiative to vision 2030 10
Figure: Research Framework
Figure 2 depicts the research framework through which main objective of the study can be
investigated , four factors namely transparency, whistle blowing and power concentration and
regular evaluation of board of directors which do helps in managing the employees of the
organization , researcher suggested the factors which are responsible for the success of the
organization are transparency for the sound function of corporate governance in the organization
transparency in day to day task is very essential as low level of transparency leads to unethical
managerial behavior, another factor is whistle blowing which means rules and regulation for
reporting of unethical practices in the organization and a proper safeguard for the person who has
reported the same this all depends on the proper hierarchy in the organization. Other factor
responsible for the success of the organization is power concentration, concentration of power
should not be in few hands as power can bring the feeling of superiority in the person and can
damage the subordinate’s confidence in the system thus there should be balance in distribution of
power other factor is formal and periodic evaluation of the CEO this will help in time to time
regulations of the task and if necessary any step required to rework on some strategies can be
worked out simultaneously.
Hypothesis of the Study
With the help of detailed literature review below mentioned factors were recognized which
affects the successful implementation of strategy which will be used as independent variable of
the study.

The strategic role of corporate governance mechanisms on employee management in the government
sectors of Abu Dhabi – An initiative to vision 2030 11
1. Ho1: There is no significant positive influence of Corporate governance on Abu Dhabi’s
Vision 2030
2. H02: There is no significant positive influence Factors of Employee management on
corporate governance
Research Design
This section will describe the type of Research Methodology to be used, Sampling design, data
collection to be used and tools of data analysis and data interpretation to be used.
Research Methodology:
Exploratory cum descriptive research methodology was used. Daniel Kaitz says, “It is to see
what is there rather to predict the relationship that will be founded”. Exploratory research will
help in gathering information for clarifying concepts related to study and descriptive research
will help in testing the hypothesis by the use of one of the method of observation i.e.
questionnaire.
Sampling design
Universe: Managers of all the public sectors of Abu Dhabi
Sampling Unit: it is the geographical area which will be covered in study, thus sampling unit for
this study is Abu Dhabi
Sampling Element: Managers of all the department of the public sector of Abu Dhabi
Sampling Technique: whole population is to be studied.
Sampling Size: Approx. 20 managers of 20 different sectors of abu dhabi which will lead to 400
managers, 400 will be the sample size of the study.

The strategic role of corporate governance mechanisms on employee management in the government
sectors of Abu Dhabi – An initiative to vision 2030 12
Data Collection Technique
Data collection Instrument: Both primary and secondary method of data collection will be used
for primary data collection self-made questionnaire will be used. 5 point likert scale technique
will be used.
Statistical Techniques for Data Analysis
Descriptive statistics - like mean and standard deviation were used to understand the data,
Descriptive statistics helps in summarizing the data and is a discipline of describing the main
features of a collection of information through quantitative methods.
Reliability– To check the internal consistency of the question Cronbach’s Alpha reliability test
using SPSS software (Version 22) will be used.
Validity –To assess the validity of the questionnaire, the face validity method will be used.
Normality Test- To assess the normal distribution of the data collected Normality test will be
used
Hypothesis Testing: for hypothesis testing SEM-Structure Equation Modelling will be used.
Timeline of the study: timeline of the study will be three years i.e. 2017 to 2020. Thus the
output achieved till now by the vision 2030 will be studied
Limitations of the study
Although every effort will be made to undertake a representative study, still the following
problems could occur in the course of the study:

The strategic role of corporate governance mechanisms on employee management in the government
sectors of Abu Dhabi – An initiative to vision 2030 13
1. There may be drop out error i.e. the respondents who are willing as well as able may not
be contacted.
2. There may be go error i.e. the respondents who are unable or unwilling may be included
in the sample. However, the large sample base as well as the pre-testing will further
reduce the chances of these errors.
3. There may be chances of different perceptions on the wording of the questionnaire or
scale. Hence, every effort will be made to personally interview.

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References
AbuDhabi Planning Council, 2010, Plan Abu Dhabi 2030, available from
https://dot.abudhabi.ae/wcms/forms/PlanAbuDhabi2030.pdf . [12 October 2017]
AbuDhabi, 2017, Abu Dhabi economy, Available from https://www.abudhabi.com/v/economy/. [
12 October 2017]
ADCG, 2017, AbuDhabi centre for Corporate governance, available from
http://www.adccg.ae/English/Pages/Default.asp . [12 October2017]
Black, B & Jang, H, 2003, Does corporate governance affect firm value – evidence from korea,
available from http://www.haas.berkeley.edu/groups/finance/black.pdf. [12 October 2017]
Brett McDonnell, Strategies for an Employee Role in Corporate Governance, 46 Wake Forest L.
Rev. 429 (2011), available at http://scholarship.law.umn.edu/faculty_articles/208.
IFC, 2010, Corporate governance success stories, International finance corporation (world bank
group report), available from
https://www.ifc.org/wps/wcm/connect/0e4f7b80401cf57abb43ff23ff966f85/
Corporate_Governance_Success_Stories_MENA.pdf?MOD=AJPERES. [ 12 October 2017].
Khouri, A, 2012, Corporate governance strategy development- A case study, business
management dynamics, Vol. 2, no. 1, pp. 5-24.
Low,L, 2010, Abu Dhabi’s vision 2030- an ongoing journey of economic development, world
scientific publishing, Singapore.
Maniam, B & Kulkarni, R, 2015, Corporate governance- Indian perspective, IETF Journal
Vol.5, no. 4, pp. 364-368
Ngwube, A, 2013, Determinant factors for success of corporate governance in an organization,
Singaporean journal of business and management studies, Vol.1, no. 11, pp. 18-24.
OECD, 2004, OECCD principles of corporate governance, available from
https://www.oecd.org/corporate/ca/corporategovernanceprinciples/31557724.pdf. [12 October
2017]
Zagorchev, A, & Gao, L, 2015, Corporate governance and performance of financial institutions.
Journal of Economics and Business, 82, 17-41.
Cole, G.A., 2004. Management theory and practice. Cengage Learning, EMEA

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sectors of Abu Dhabi – An initiative to vision 2030 15