This report has been prepared following an intensive analysis of EMAAR Properties’ total quality management in order to identify its strengths, weaknesses, opportunities and threats and propose possible actins that would improve it (Dawawala, 2009). The report begins by looking at the company’s history, organizational structure, mission, vision, strategies and values. This is then followed by an examination of the company’s human resource management practices and its current situation in reference to these factors. The company’s total quality management is then examined accompanies with a comparison of the company’s performance with a similar real estate company in the economy. This comparison is done in order to show the company’s performance as far as total quality management is concerned. Once this comparison has been done, the findings are explained followed by suggestions and recommendations on how to improve the company’s total quality management process.
2.0 Organizational History
EMAAR Properties is land and real estate developer based in United Arabs Emirates and formed in the 1997 with an initial paid-up capital of AED OF 1b billion. It is the largest land and real estate developer in the Persian Gulf region (Dawawala, 2009). The company’s activities include property management services, property investment and development, retail and hospitality sector, education as well as investment in financial service providers. It is a holding company of over sixty companies with over ten thousand employees. It is operates in the real estate industry offering the services mentioned above to its clients spread across the Persian Gulf region.
3.0 Organizational Structure
The company’s organizational structure is divided into three hierarchical divisions. The board of governors is at the top of this hierarchy, followed by the corporate office and then the managers in charge of various divisions of the company (Dawawala, 2009). The company’s board of directors is managed by the chairman who together with the vice chairman guides other members of the board in leading the company in making and implementing various strategic actions. The corporate office which is answerable to the board directors is composed of chief executive officers who are in charge of various aspects of the business like legal matters, business development and operations among others (International Monetary Fund, 2011). Below the corporate office are chief executive officers in charge of different divisions of the business which could be real estate, hospitality, retail investment among others. These chief executive officers are answerable to the corporate office.
4.0 Organization Mission, Vision, Strategy and Values
The company’s mission is to transform EMAAR into a one-stop, global solution provider for lifestyle, including homes, work, play, leisure, retail, health, education, finance, industry and more (Dawawala,2009).
The company’s vision is the transformation of EMAAR into one of the most valuable lifestyle developers in the world beyond real estate development (Dawawala, 2009).
EMAAR will adopt a strategy of business segmentation to create different business clusters functioning as different growth engines. These growth engines will grow to converge into a single entity known as “The EMAAR Group PJSC”. This is what will enable the company become one of the best in the world (Dawawala, 2009).
The company’s values are listed below:
Trust, Integrity and airiness
Employee development and positive work environment
Innovation speed and execution
5.0 The Company’s HR Practices
5.1 Incentive System
The company’ incentive system is structured in such a way that employees are paid based on the responsibilities and accountabilities they have in the organization. Employees with more responsibilities and accountabilities are paid higher salaries than those who have less (Smith, 2007). In addition to this, the company’s compensation and benefits manager has the responsibility of carrying out a survey on similar companies within the Persian Gulf among other geographical areas to find out how they remunerate their employees in order to ensure that the company’s employee’s remunerations are at the same level with the industry average.
5.2 Evaluation System
Employees in this organization are evaluated on the basis of the results which they would have managed to achieve within a given trading period (Eisenberg, 2012). Depending on the nature of the job being done by these employees, they would either be evaluated on a quarterly basis or less frequently in an annual basis. After the evaluation of these employees’ performance they are would then be rewarded accordingly. Those who would have performed well would receive some financial rewards which would then encourage them to work even harder in the future. This would also encourage those who would not have achieved exemplary performance to put in more efforts in order to eligible for these rewards after future evaluation of employees’ performance.
6.0 Organizational current situation
Currently, the organization has over ten thousand employees with over sixty subsidiary companies. The company offers a large variety of services including property investment and development, property management services, healthcare services, investment services, investment in financial service providers as well as offering hospitality services. The company has diversified its service offerings to make sure its customers access all the services they need from the company without having to incur extra costs shopping around for affordable services from other service providers (Dawawala, 2009).
7.0 EMAAR Total Quality Management
The company’s commitment to delivering high quality product to customers has been communicated to all of employees and ingrained the organizational culture. This has ensured that all the organization’s employees beginning with the chairman of the board of governors all the way to the casual laborers understand that all of the organization’s process must meet the highest quality environmental standards in the land. This has been achieved through the effective training of employees on how to carry out their functions in the manner that ensures that all the quality requirements are met (International Monetary Fund, 2011). It has also been achieved through joint initiatives with other business entities like suppliers by encouraging them to only supply to the company inputs which are environmentally friendly. This has enabled the company achieve high levels of quality in almost all of its divisions. This company’s commitment to total quality management has been evidenced by the various awards it has received owing to the high quality of its product offerings. These awards are discussed in the ensuing sections:
7.1 Dubai Quality Award
This award was won by EMAAR Properties in recognition of the company’s commitment to quality and excellence in its services. The Dubai Quality Award is an initiative by the Dubai Department of Economic Development aimed at promoting a business culture that is based on quality (International Monetary Fund, 2011). This award is therefore only won by those companies which have shown a high level of commitment of quality in product and services they offer to their clients (Abed, Hellyer and Vine, 2006). It is a very coveted award and therefore for EMAAR Properties to have won, it had to really ensure that its commitment to quality service delivery is beyond doubts. The process of assessing potential winners is very strict such that only those companies which meet the highest quality standards would have the chance of wining the award.
7.2 ISO14001:2004 Certification
Owing to its commitment to high standards of quality in its operations and product offerings, EMAAR Properties won the ISO14001:2004 Certification. As a result of winning this certification, the company became the first in this region to win ISO credentials for its commitment towards upholding quality and environmental standards in its various business engagements (Plunkett, 2007). This is because the company has been committed to developing commercial and residential properties in which energy-efficiency has been the value proposition. This has been dubbed the Green Buildings initiative in which the business has collaborated with the government in order to build these properties that promote the conservation of the environment. This has indeed played a very key role in promoting sustainable development in the region.
8.0 The SWOT analysis of the company’s total quality management
One of the strengths of the company’s total quality management is the fact that there is strong leadership in the company which is very committed towards insuring that all the quality and environmental standards are met. This is the case because with a good leadership the company is able to achieve higher performance because this leadership is what provides direction on what should be done in order to achieve high quality standards (Brunn, 2011).
One of the weaknesses in the company’s commitment towards total quality management is the fact that there is inadequate employee motivation especially at the lower level. It is worth noting that some of the company’s employees are poorly remunerated and also work under very poor conditions which discourage them from fully adhering to the company’s quality standards. This has therefore acted as setback towards to the full attainment of the total quality management objectives (Muhammad al-Bashir Muhammad al-Amine, 2011)
A wide range of opportunities abound for the company to further its total quality management objectives. For in stance there if full support from the government for the government to further its total quality management objectives. This is especially in references to its Green Buildings initiative aimed at coming u with energy-efficient commercial and residential buildings. In addition to the government there is very much other business which would like to collaborate with EMAAR Properties in meeting various environmental quality standards.
There is no conceivable threat to the company’s commitment towards maintaining high quality standards in is operations safe for a few problems that may be caused by employees who may be dissatisfied with the company’s working conditions and remuneration. Such employee may make challenging for the company to effectively implement its total quality management program for one reason or another.
9.0 EMAAR’S Properties and NAKHEEL Properties TQM
NAKHEEL Properties is a real estate business operating in the United Arabs Emirates and which is owned by the government. This company happens to be one of the EMAAR’s chief competitors in this market. On this basis, it is therefore very important to compare the company’s total quality management with that of EMAAR Properties. One similarity that has been noted between the two companies’ total quality management is the fact that the commitment towards quality service delivery has been enhanced right from the company’s top management all the way to the subordinate staff. This therefore means that the organizational culture has been modeled in such a way as to support the delivery of high quality products (Dawawala, 2009). This has been very instrumental in enabling the two companies achieve high quality standards in their operations and service provision (Dawawala, 2009). This is because when all employees understand the need to maintain high quality, it would be easy for them to participate in implementing strategies aimed at achieving these objectives (Dawawala, 2009). Another similarity between the two companies’ total quality management is the fact that both have challenges in implementing total quality management programs mainly because of lack of support from a section of employees. The difference between the two companies I the fact that there has been a greater awareness on the importance of quality service provision among EMAAR’S employees than NAKHEEL’s (International Monetary Fund, 2011). This is the reason why EMAAR has been able to achieve higher quality standards than NAKHEEL.
The findings reveal that there is better total quality management in EMAAR than in NAKHEEL. This is because the former has been able to inculcate a culture that is supporting of high quality than the latter. Consequently, the former has been able to achieve higher quality standards than the latter. Another notable finding is the fact that both companies have face a number of challenges in implementing this objective because of lack of support especially from a section of employees
11 Suggestions and Recommendations
It is therefore recommendable that these companies in the formulation of strategies aimed at achieving high quality standards in the business operations and service provision. This would motivate them to support these strategies and therefore less resistance would be experiences by the company’s management (Hassan and Mahlknecht, 2011). Moreover, putting into consideration the welfare of employees would cause them to be very supportive of any strategies formulated by the company’s management and will therefore implement the company’s quality strategies without having to forced.
12 Summary And Conclusion
In conclusion, EMAAR Properties has shown a lot of commitment towards maintaining a high quality standard which has enabled it to win the Dubai Quality Award as well as the ISO14001:2004 Certification. Various challenges have been experienced which include inadequate support from a section of employees but can be dealt with once effective strategies have been put in place.
Abed, I.A., Hellyer, P. & Vine, P., (2006) United Arab Emirates Yearboook 2006 Abu Dhabi: Trident Press
Brunn, S.D., (2011) Engineering Earth: The Impacts of Megaengineering Projects New York: Springer
Dawawala, A., (2009) Economical Analysis for Emaar Properties Norderstedt: GRIN Verlag
Eisenberg, D., (2012) Islamic Finance: Law and Practice London: Oxford University Press
Hassan, K. & Mahlknecht, M., (2011) Islamic Capital Markets: Products and Strategies New York: John Wiley & Sons
International Monetary Fund, (2011) United Arab Emirates: Selected Issues and Statistical Appendix Washington DC: International Monetary Fund
Muhammad al-Bashir Muhammad al-Amine, (2011) Global Suk?k and Islamic Securitization Market: Financial Engineering and MA: BRILL
Plunkett, J.W., (2007) Plunkett's Real Estate and Construction Industry Almanac 2007: Real EstateTexas:Plunkett Research, Ltd.
Smith, A.D., (2007) The Architecture of Adrian Smith, Som: Toward a Sustainable Future Hong Kong: Images Publishing