Analysing the performance of the MAAR GROUP

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Emaar group is one of the most famous companies in United Arab Emirates. It was established in 1997. At the time of its corporation it had a turnover of over 1 billion AED. Emaar group is the largest land and real estate developers in the United Arab Emirates and in the rest of the gulf region. Emaar group owns more than 60 companies at present. Investment in property and real estate is the main area of function of the Emaar group. The company was basically formed in Dubai and one can easily state that it is a Dubai based company although it has spread its project to almost all around the world especially in other countries of Asia like Bangladesh, India and Pakistan. The company is the proud builder of the Burj-Khalifa the world's tallest building. Emaar group is a joint stock company. Emaar group has played a crucial role in the development of Dubai and of United Arab Emirates as such. It is one of the biggest companies in the gulf and it contributes heavily towards the revenue of United Arab Emirates. Emaar group is famous for building the best in class malls and residences. Emaar group has successfully built all kinds of buildings for various purposes like hospitality, educational institutions, offices etc. Emaar group has established itself in north-Africa, the Indian subcontinent, in Europe and in north-America. The company aims to become a one stop lifestyle solution provider. Emaar is continuously expanding its construction and real estate work all around the world. It aims to become the world's largest real estate and Construction Company. Emaar gives special care to the needs of their customers and it values its customers very highly. It believes that the company must be able to create a positive relation with its customers so that they return to them every time they wish to deal in real estate. Emaar group believes in building according to the needs of its customers. The top management of Emaar comments that building a relation of trust with the customers is the key to success at Emaar. The top management further comments that as they are continuously expanding their base and they are meeting new people of different cultures and it is essential for them to win the trust of these people. At Emaar they believe that it is necessary to deliver what one has promised. One must be able to stand by his commitment if trust of the customers is to be gained. Emaar is very particular in taking care of their employees and in the first place it is very careful in giving employment to the people. Emaar believes in hiring the best professionals in the field of construction, town planning, civil engineering etc. Moreover at Emaar it is believed that it is compulsory to keep the employees happy. If the employees are not happy they will not be able to deliver. Emaar believes in giving chance to the deserving. It believes in giving opportunity to people to grow. It develops a passion in people for the work they do. The management at Emaar has created such a work environment that all employees are capable of delivering their best efforts into the task they are given. Emaar believes that the employees should be kept happy and to do so if the employees have any problem, then that problem needs to be solved so that the employees will be able to give the best in them towards the achievement of organisational goals. (About Emaar)

BEREAUCRATIC MODEL OF ADMINISTRAITION:

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Bureaucratic model of administration has been used by many large organisations all throughout the world. In this model of administration there are certain rules which are formulated and these need to be followed by the employees. At Emaar the bureaucratic model of administration has successfully been applied. Due to the large size of the organisation and the vast number of people that need to be administered by the management of Emaar this model has been chosen by the management. Under this model standardized procedures as to different topics are available and the employees are expected to follow these procedures in a strict manner. This helps in maintaining an overall discipline in the company. This model generally does not create policies but rather it creates ways and methods to enact those policies. This basically helps in application of the policies which have been created by the management. To put in simple words under this type of model of administration the employees interact with the bureaucracy that the top management have created rather than interacting with the top management itself. This is based on sociological and managerial studies. Any bureaucratic model of administration in any part of the world will be based on 4 basic structures which include a proper personnel system which have proper recruitment and promotion patterns. It contains a hierarchy amongst officers and offices. It contains both informal and formal channels of flow of communication under which communication flows in the organisation. At Emaar there are a certain level of managers which act as a channel between the top management and the rest of the firm. These can be called the bureaucrats of Emaar. The concept of bureaucracy is about two to three centuries old. Much is although yet to be discovered and invented under this concept. Many top managers around the world use this method of administration. It helps them in avoiding direct contact with the workers and at the same time they can keep proper check on them by getting first hand information from the bureaucrats. Bureaucrats are special managers who have more knowledge about the firm and the area of work of the firm than a normal manager. Critics say that the top management should not have too much control over the bureaucrats as these are highly learned men and they will not be able to function if they are given orders and forced to do things, whatever these people do out of their own wit will is usually the best for the company. Chief Executive Officer, managerial director, president etc are the member of the bureaucratic league at Emaar group.

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Implementing bureaucracy in the organisation has its own disadvantages and advantages. With such large organisations like Emaar coming up in the last century controlling the activities of various employees throughout the organisation has become even more important than ever before. The work of the employees should be efficient and managers should have some degree of control over it. Managers must be able to motivate and lead the employees to achieve their organisational goals with as much efficiency as possible. The same has been the task of various managers at Emaar. The system of the organisation itself decides how efficient and inefficient its workers will be. This is where bureaucratic model of administration comes in handy. This system sets up standards and methods to be followed and these methods and standards also act as a curtain between the employees and the top management.

The senior manager's act as the bureaucrats and they ensure that the standards and procedures are properly followed and the required results are received from them. It must although be noted here that bureaucracy is not advisable to be implemented in all organisations. Large organisations like Emaar only are advised to have this kind of model of administration. In this model some of the employees must be employed exclusively for the purpose of administering the activities going on in the organisation. Moreover there should be employees who have special authorities over a normal manager and they can use this authority to make necessary alterations in the functioning of the organisation so that it meets the requirement of the top management. However it is very important here to notice that these powers given to the individuals should be limited so that they are not misused and moreover these powers should be in a limit so that the employees do not make alterations which go against the policies of the top management.

Under this model of administration there should proper division of work. Work should be divided to an individual directly by the managers and to a group. Each individual must know what his job is and that individual must perform the job properly and in the given time frame. (busting-bureaucracy) Division of job responsibility forms the backbone of this model of administration. In this model of administration the power of each individual is clearly defined and the limits of each department are also clearly defined. There is complete harmony in the organisation when it comes to authority. Each individual and each individual department knows the limit of their authority and they also know which individual or individual department has the power to over ride their own authority.

This leads to harmony in the organisation and also it creates a proper chain of communication which is easy to follow and everyone is well aware of it. These aspects of this model of administration remove the problem of miss-communication and untimely communication.

The officers at Emaar are given clear designations. There is a clear chain of command established at Emaar. Although this was a tedious job to complete for the top management at Emaar and they faced quite a few hurdles while chalking out a bureaucratic model of administration but once they were done with the tedious project and with the passage of time

Emaar group started to realise the fruits of this model of administration.

The hierarchy at Emaar is very complex but it is completely based on bureaucratic model of administration and everyone knows who is above them in authority and who is below them. There is a clear cut chain of command which has been established at Emaar. Bureaucracy is based on rationality and efficiency. The top officials are highly involved in this model of administration and they are required to publish a set of orders, code of conduct in writing which then is to be followed by the rest of the organisation. And the managers which form the bureaucrats are required to administer whether these rules are implemented and followed properly or not.

Critics say that with the help of bureaucracy the top managers are able to rule the organisation in the way they want to and all they are required to do is issue a set of rules and regulations. At Emaar each level of hierarchy is controlled by the level just above it. The top management control the level of the bureaucrats and the bureaucrats in turn rule the rest of the levels directly and indirectly which are just below them. All individuals hold a certain position in the organisation and this position has its own powers and liabilities. At each level of the job the responsibilities of the employees are clearly defined and they must at all costs fulfil these responsibilities.

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At Emaar an employee is employed by the company by looking at his technical competence level and then he is appointed to a concerned level of authority on the basis of his technical knowledge only

. This tells us that at Emaar employees get employed at various levels of authorities on the basis of their knowledge and each employee at a higher level will have more technical knowledge than the employee who is working at a lower level than him.

In this model of administration they say of the seniors matters less than the set of rules which are prevalent. Employees are required to work on the basis of the rules and regulations and not on the basis of the orders from their seniors.

This aspect of bureaucratic model of administration created lots of problems for the top management at Emaar, as this aspect of the administration model highly de-motivates the employees at a higher level because the employees below them are not liable to follow their orders rather they are supposed to follow the rules and regulations of the top management and the only work that the senior level employees have to do is administer whether the rules of the top management are being followed properly or not.

Moreover the bureaucracy of the organisation is often under fire from the employee cadre. The bureaucrats are responsible to get the work done from the employees and they also have to address to the complaints of these people. Moreover they are required to find the solutions to the problems of the employees on their own and hardly the top management helps them out in this regard. Moreover the only thing that the top management does is issue more orders and regulations which need to be applied to the organisation.

Therefore the bureaucratic cadre of employees is under two way fire both from the rest of the employees and from the top management. There is usually only one way communication between the top management and the bureaucrats. Many critics comment that this model of administration is destructive in nature as no feedback is taken from the employees and there is hardly any grievance redressed

. Emaar needs to work out a strategy to amend these problems in its administration policies if it wants to succeed in the long run otherwise it will not take long for the company to lose the best of its employees. Moreover the top management at Emaar also needs to make its policies a bit lenient on the bureaucrats and on the rest of the employees.

They should hear out the problems of the bureaucrats and the other employees as this will highly motivate both these groups. This can be done by Emaar by changing one of the rules and regulations which are prevailing in the organisation. The top management is advised to look into the present state of the company and make the necessary changes.

Moreover the Emaar group at present should also have moderate aims annually and not try to achieve things which they know are beyond their achievements as this puts unnecessary pressure on the employees and they end up getting more frustrated. (busting-bureaucracy) Moreover continuous improvements in the quality of the working environment of the employees are required. The bureaucrats themselves need to learn a new way of managing things at Emaar.

They need to start using more of their managerial skills rather than concentrate on applying rules and regulations. The senior managers should be given more authority and their work should be of creating various policies and not administer the policies. Moreover it is now time for the organisation to start detaching itself from this model of administration as the company knows that this model of administration will not take it very far. Steps to control the damage done should be taken immediately and this system of administration should be thrown out of the Emaar group as soon as possible.

The employees and managers should be given a better environment to work in and they should be given more authority. Emaar group has the capacity to become the largest real estate developers of the world but they should first sort out such small issues within the organisation.