Cross-Cultural Leadership and Management in Kazakhstan Construction

This dissertation, submitted in partial fulfillment of a Master of Science in Project Management at the University of Portsmouth, investigates cross-cultural leadership and management within the context of an international construction project in Kazakhstan, specifically the Orken Village Project undertaken by the Isker Consortium for Tengizchevroil (TCO). The research explores how leadership and culture interact within a mixed-culture project team, aiming to answer the question of how to best integrate managers and supervisors from different cultural backgrounds. Due to circumstances, the study relies on a literature review, the GLOBE project, and Tomalin and Nicks’ communications framework. The literature review covers key aspects of culture, leadership, and cross-cultural leadership, with Hofstede's cultural dimensions and GLOBE study results used to analyze cultural differences (Power Distance, Masculinity, Individualism, Uncertainty Avoidance) among various cultural groups (Kazakhstan, UK, Russia, Egypt, USA, and India). The research also examines communication frameworks to highlight cultural differences. The project concludes with recommendations for implementing cultural awareness programs and a 'Cultural Leader Framework' to optimize talent selection and improve project outcomes.

CROSS-CULTURAL LEADERSHIP AND MANAGMENT:
IMPLEMENTATION ON AN INTERNATIONAL CONSTRUCTION
PROJECT
Steven Atkinson
A dissertation submitted to partial fulfillment of requirements for the award of Master of
Science in Project Management at the University of Portsmouth.
04-2019
ABSTRACT
This project focuses on the cross-cultural leadership in management and the way it is
implemented within the framework of the project that I am pursuing currently in Kazakhstan.
The aim of this project is to scrutinize and comprehend the role of leadership in culture and
vice versa and how these two variables interact when the cultures are mixed within an
executive project team.
The research question is: ‘Cross-Cultural Leadership: How can we best integrate
managers and supervisors from different cultural backgrounds into a large-scale construction
project in Kazakhstan?’
To answer this question, the research study chiefly focused on organization in ‘Isker
Consortium on the Tengizchevroil Orken (TCO) Village Project.’
Initially, I planned to perform the research by collecting the data via through in-depth
literature review, by incorporating interviews sessions in the methodology. These interviews
were to be performed with the senior managers with surveys and projects distributed to
various project team members. However, because of alteration in circumstances, the plan was

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shifted from survey and interview approach. ‘GLOBE project’ [34] and ‘Tomalin and Nicks’
[25] communications framework’ was used to collect the data required and add matter to
discussion. The study was focused on ‘Orken Village Project’ in Kazakhstan.
The literature review is divided into 5 cardinal elements: Culture, Leadership, Cross-
Culture, Cross-Cultural Leadership Training, Cross-Cultural Leadership. Each part of the
literature review is associated with Hofstedes [19]. The cultural Dimensions along with
GLOBE study [34] focuses on the actual cultural dimensions such as Power Distance,
Masculinity, Collectivism, Uncertainty Avoidance. These are the various cultural dimensions
used in the study and ‘Tomalin and Nicks’ [25] communications framework’ is the pivotal
element in this review.
Results from GLOBE study is based on ‘Orken Village Project’ that reveal the
cultural dimensions present between different cultures (Kazakhstan, United Kingdom,
Russia, Egypt, USA and India) based on Power Distance, Masculinity, Individualism,
Uncertainty Avoidance. These findings revealed that every culture is very different in regards
to leadership. Different culture holds different perspectives and ideas on becoming a ‘good
leader’.
Observations of each culture based on Tomalin and Nick’s communication framework
were also completed, showing the differences in each of the cultural groups based on
Direct/Indirect, Details/Suggestive, What/Why Why/What, Formal/Informal,
Emotional/Neutral and Fast/Slow communicators. Observation results can be found in Figure
13, showing that no two cultures are the same.
. Through investigation of the information, and perceptions, the venture has incorporated the
preparation programs for senior administration on execution of multicultural tasks, project

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workshops for central administrators on social mindfulness and culturally diverse
interchanges.
I would likewise prescribe Isker to actualize the 'Cultural Leader Framework (CLF)',
on which the task has been created dependently on the discoveries from the GLOBE, in order
to permit the most appropriate people from the accessible talent pool to be chosen for an
undertaking.
INTRODUCTION
Background
While concentrating the MSc Task The executives, significance was put on administration
and its numerous styles, and how these styles influenced an undertaking's prosperity or
disappointment.
In the season after completion of my examinations I have been working at a
noteworthy construction venture (Orken Town) in Kazakhstan for the 'Engineering-
Procurement-Development' (EPC) as a temporary worker, Isker. During the period of the
venture, the supervisory group developed from the UK to a multicultural undertaking
supervisory group with staffs from around the world. This has demonstrated to be both
difficult and positive.
This intrigued me and drove me to think about how various chiefs carry on, how they
rouse their particular groups and how they connect with supervisors and subordinates from
various social foundations. It additionally made me consider how we take the exercises
gained from social issues and execute them to the undertaking so as to improve the odds of its
prosperity.

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Organization
For the exploration on the dissertation question (Cross-Cultural Leadership:
Implementation in an International Project) the Isker/Tengizchevroil association was utilized,
and the research examination basically centered around the Orken village Undertaking in
Kasakhstan. The summary of Isker beneath has been taken from the Isker site
www.Isker.com (06/2019).
Isker business unitsSince its commencement, ISKER Gathering's global group has
tried to guarantee that its item and administration conveyance have been of the most
astounding level and better than those presented somewhere else. As the main corporate
gathering in Kazakhstan, giving a differing and ceaselessly extending scope of business
arrangements (counting those recorded underneath), ISKER Gathering are presently moving
into the worldwide field with plans throughout the following ten years to turn into the
principal decision supplier inside business sectors such as Construction, Commercial, Civil,
Industrial, Engineering and Design, Property Management, Manufacturing and Fabrication,
Residential Facilities Management and Maintenance, Property Development, Waste
Management, Marine Operations, Port Operations, Serviced Leasing, Catering and Leisure,
Logistics and Warehousing.
ISKER Group companies presently utilize more than 4,000 individuals, working
crosswise over Kazakhstan and a few different nations. Our center business working regions
are inside the oil and gas, property and nearby expert segments both inland and seaward. We
are genuinely a multi-disciplinary corporate gathering with items and administrations
crossing the whole undertaking, property and foundation lifecycle which can be a one stop
answer for our customers, or a section arrangement gave on a measured premise.

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REF: ISKER WEB SITE
Onshore Engineering and Construction (OEC) Project
Project description
Orken Village is a working rotational camp containing 5000 high caliber and present
day rooms. Found 30 km from the Caspian Ocean, it is a perfect area for the TCO FGP's
accomodation complex. The plan and fabricate consents to the most recent universal standard
prerequisites, and the office is situated in a region of roughly 300 000 m2.
It incorporates lodging squares and places of canteens, gyms, play areas, office area,
parking, a fire station and workplaces. It has a server farm lodging IT and security for the
entire complex. There are additionally utility zones and an advanced center inside the
complex.
Tengiz oil field situated in western Kazakhstan was found in 1979. Tengizchevroil
LLP (TCO) was set up in April 1993 with the legislature of the Republic of Kazakhstan and
Chevron Company being the first establishing accomplices. As of now, shareholding
accomplices in TCO are Chevron (half), JSC NC KazMunaiGas (20%), ExxonMobil (25%)
and LukArco (5%). The 2500 sq. km (1,600 sq. miles) of the permit region comprises of
Tengiz field and a littler, however sizable, Korolev field. TCO recoverable raw petroleum
saves at Tengiz and Korolev fields through April 2033 (TCO's agreement period) are
assessed between 750 to 1.1 billion tons of oil (6 to 9 billion barrels). The Tengiz oil stores
are resolved as 3 billion tons (26 billion barrels). The stores of Korolev field (viewed as a
world-class field) are evaluated to be 180 million tons (1.5 billion barrels), one-6th of the
Tengiz stores. Tengiz field is the most profound mammoth oil field on the planet with the top
oil store lying at a profundity of around 4,000 m (13,000 ft). The field is 19 km (12 miles)
wide and 21 km (13 miles) in length, with the thickness of an oil supply equalling one mile.

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The store territory is huge to the point that it would take two long distance races to go around
it.
As a major aspect of the improvement Isker were contracted as the fundamental EPC
contractual worker to manufacture Orken Village (OV). The choice was taking right on time
during the FEED structure of the venture to modulate the structure, with pre-amassed units
created in Kazakhstan. The OV bargains of a cutting edge server farm, IOCC control house,
utility structures, accommodation areas.
The chief elements of plant are: Sewage pumping stations, Fire water and Potable
water tanks, Water treatment, Utility building, IOCC building, Data center, Potable water
pipework with distribution network, Fuel gas let down station with pipeline. It includes the
utilities (such as potable water, fire water, technical water, sewage pipework, fuel gas, storm
water etc.). The buildings included are utility building, data center, the IOCC control
building, the accommodation buildings, the fire station, the equipment rooms, the
administration building, the warehouse, the canteen, the sports hall, the security building).
Electrical power provided from the OHL primary through principle substation to ten
extra substations around the complex, with a reinforcement backup generator – boilers are
provided fuel Gas Turbine Generators (GTGs). The OV undertaking was one of only a
handful few Isker has taken on as the EPC contract with TCO in Kazakhstan. Earlier skill
was picked up from being a sub-temporary worker to the primary contractual worker on EPC
ventures.
Project Commercial Structure
The primary contract was a full Turnkey EPSCC (Engineering, Procurement, Supply,
Construction and Commissioning) contract involved a Single amount reason for the
undertaking. This implied Isker where in charge of conveying the task on schedule and inside

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spending plan to make a benefit. The agreement was adjusted in January 2018 to turn out to
be completely reimbursable. Full EPSCC degree means full Turnkey commitments, from
configuration hazard to fire up. Isker knew about the threat required before entering this sort
of agreement on a singular amount (lump sum) premise. Isker recently utilized a 60% change
contract (which means the organization is happy to change over from Re-quantifiable to
Singular amount or Lump Sum once it achieves 60% model audit). The purpose behind this is
the Bill of Amounts ought to be well-characterized at this point in this manner limiting the
hazard that is attempted.
Projects Organisational Structure (Early)
The task supervisory crew had a mix of chiefs contracted to Isker on expat terms (6:2
weeks) and nearby exchange work force from Kazakhstan. Nitty gritty building was directed
in the UK and in Kazakhstan, where foundations, structural details, the piping engineering
were readied. 3D Displaying was done in the UK, while procedure support for dispatching
readiness occurred from the building office in Kasakhstan. Senior TCO the executives before
long understood that Isker came up short on the abilities to finish the venture on schedule and
inside spending plan because of components inside their control and factors which had an
alternate result to what was at first anticipated. Ground conditions where far more regrettable
than the underlying overviews had anticipated. Heaping the tasks took about 2 years to
finish, with more than 16,000 heaps being crashed into the ground. The project was being
performed in dry desert on ground that was previously seabed. The postponements to the
underlying period of the task was additionally affected by the climate, with the temperatures
in winter season dropping to around - 25 degrees influenced the construction works very
extensively. Doing works in the brutal winter influenced the exhibition of the plant, the
hardware and postponements started to mount up. The underlying arrangement was to do the
heaping works throughout a mid-year battle however due to delays in designing, the project

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began later than arranged. TCO settled on the choice to change the agreement to moderate the
late conveyance of the undertaking and getting into delayed legitimate cases with Isker. Their
choice to assume responsibility for the undertaking and change the model to cost
reimbursable implied that a task group must be fabricated and set up.
Project Organizational Structure
The undertaking the board office is situated in Kazakhstan, with an extra huge office
in the UK dealing with the structure and designing and set up of significant development
related subcontracts. During the main period of the undertaking it turned out to be certain that
the UK and on location mentalities and desires on development contrasted, affecting the
contruction advance. During 2017 clearly the supervisory crew did not work to the upside of
the task. Additionally, on the grounds that the designing office was UK-based, this affected
on the goals of building issues among site and the workplace; the time taken to answer
specialized questions was impeding to the task.
Isker's development experience was accessible in Kazakhstan, where the corporate
group with the significant experience and techniques were accessible, however not doled out
to the undertaking. In 2016 the Task Chief and the Project Sponsor were looked over the
senior corporate group. In 2017, a choice was made to combine the venture the board
endeavors. After a few momentary Site Directors, Isker designated another and experienced
Site Chief, who had a foundation and family for conveying ventures in a universal situation.
The combination carried a more grounded group to the undertaking, with more experience
and choice power.
During this change period, Isker likewise chose to coordinate lower levels of the
executives and supervision from the Kazakhstan development groups into the site
development group. This prompted Turkish and Indian individuals touching base in

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Kazakhstan to deal with a Kazakhstan-based work power. This abrupt deluge of a socially
differing administration and supervision group hurled numerous issues.
TCO
While Isker were rolling out these improvements to the undertaking's hierarchical
structure and work force, the customer (TCO) were likewise mindful of the failings as were
actualizing changes to their on location association. They changed over half of their on
location project group from UK nationals to Russian, American, Egyptian, Turkish,
Kazakhstan nationals. Once more, there were challenges in the joining of the TCO group and
the incorporation of both the TCO and Isker site groups.
Research question
‘Cross-Cultural Leadership: How can we best integrate managers and supervision
from different cultural backgrounds into a large-scale construction project in Kazakhstan?’
Research aim
The aim of this dissertation is to understand whether there are contrasts in the
authority styles of managers (leadership styles) from various societies and backgrounds
working towards a same collective goal and which style is bound to build the odds of
research achievement. It will likewise think about how these pioneers be coordinated
consistently into one association with least interruption to the continuous undertaking.
Objectives
The objective of this research study is to pick up a comprehension of culture and
leadership, and how the two meet up when societies are blended in one anticipate execution
group. Would this be able to work in Kazakhstan, which broadly has a troublesome work

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power and numerous human asset and mechanical relationship issues on practically all
significant tasks in the Tengiz locale?
This paper plans to assess the way of life of the administration/supervision groups to
build up if this had a direction on the disappointment of the Orken village project. In doing as
such I plan to create a structure/model for assessing culturally diverse abilities that can set up
in the event that one culture can lead another, or in the event that one culture can pursue
another culture's lead.
From the structure/model Isker will probably build up what societies have the ideal
connections and at what levels they can associate to make undertaking progress. This will
likewise enable suggestions to be made for future UK-based activities. Possibly, the
exposition structure/model can be extended to give worldwide rules to diverse authority and
help to create preparing requirements for administration groups.
LITERATURE REVIEW
Leadership
Review Leader or Manager
To address the inquiries brought up in this thesis paper, we have to take a gander at
the capacity of a pioneer. Examination into authority and the executives does not give a
completely characterized hypothesis that clarifies the contrasts between them. There is
anyway an accord that initiative concentrates more on character, inspiration, correspondence
and vision, and the executives concentrates more on power, basic leadership and regulatory
abilities. Schein (1992) thinks about that initiative is exceptional, and what separates it from
the executives and different errands, for example, organization is a worry for culture. This
worry for culture will be talked about in more detail in segment

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Authority could be depicted as driving individuals to some place that they would not
generally go themselves; driving them to accomplish in the positions the association has
utilized them to fill.
On the Orken Village Project, the professionals were provided positions, for example,
,like administrator, lead, executive or director. These positions gave those representatives the
specialist to deal with specific undertakings and destinations, yet while they regulated certain
work scopes, it didn't make them pioneers. There were a wide range of nationalities, with
various foundations and societies, in these positions. A few people utilized the situation to
apply expert over the work power, while others utilized their authority aptitudes to rouse the
work power to accomplish the objectives that had been set. Both were compelling somewhat,
yet driving the workforce appeared to create preferable outcomes over applying expert. Since
thought has been given to the contrast among authority and the executives, we will research
what makes a pioneer and take a glance at the hypotheses and structures accessible.
Heifetz [2] ‘distinguishes between the application of “leadership” and the application
of “authority”’ – thusly separating initiative from formal authoritative specialist jobs, while
Raelin [3] discusses creating "leaderful" associations through synchronized, aggregate and
agreeable administration.
Leadership
Leadership is a strategy by which an individual impacts other to achieve objectives
and coordinates a gathering such that makes it increasingly firm and rational. Pioneers do as
such by applying attributes, for example, information, values, convictions, morals, character
and aptitudes.

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As indicated by a study done by Hay group, a worldwide administration consultancy,
there are 75 key parts of representative fulfillment [4]. Trust and trust in the pioneers of an
association are the top elements for worker fulfillment. You should be straightforward, and
you should almost certainly impart the course which the association needs you to take to meet
its objectives.
Numerous effective associations and undertakings have pioneers who keep up a high
arrangement of models, objectives, showcase administration, plans, gatherings and
introductions, efficiency, quality, and dependability. They will likewise keep up qualities that
mirror the worry the association has for its workers, customers and investors.
Leadership Models
Leadership models can be utilized to help comprehend why pioneers perform with a
specific goal in mind. These models appear there are a wide range of ways to deal with
initiative, and a circumstance may require an alternate methodology or behavioral conduct.
Bolman and Deal [5] created a ‘four-framework approach to leadership’ – the
organizational leaders portray behaviors which are of four frameworks – a) Structural
framework b) Human Resource framework c) Political framework, d) Symbolic framework.
The leadership style can operational or futile, depending on situation. If one framework do
not work in every situation - the leaders have to adjust in order to apply the appropriate
framework to specific circumstances.
Bolman and Deal [5] elucidate the ‘four frameworks’ as: ‘Structural framework: A
framework for viewing organizations that focuses on the its architecture’. The design in sub-
units, rules, units, regulations, rules, policies and goals are focused, that shape and then
channel the decisions to be taken with activities.