Reshaping the Dubai Model

National Cheng Kung University

Institute of International Management

Organizational Behavior

Term Project

Case: Power and Organizational Politics

Student:  Suvd Baasandorj RA6047015

                                           Gre Estrada    RA 6047510

                                                Frank Blomhoef  RA

                                                Jonathan Lai     RA

Instructor: Prof. Chiehwen Ed Hsu, Ph.D., M. Law

January, 2017

CHAPTER ONE
INTRODUCTION

1.1 Research Background.

CHAPTER TWO
CASE DISCUSSION

2.1 Case Incident 1 – Reshaping the Dubai Model

2.2.1 Case Summary

As we all know, Dubai is one of the most popular city of the United Arab Emirates (UAE). This case talks about the situation that this country was dealing during the early 2013. Dubai was suffering from the global recession, the employees across all sectors falls in the value of their investments. We know Dubai as an extravagant country with all the projects and structures and has been an example from others country to follow Dubai because of his growth and prosperity. During this year Dubai debt had reach US$100 billion, and is a country that has attract many investors. Dubai is different from the other UAE countries, because they don’t have a significant oil reserves, therefore they have to focus on others resources such as commerce, tourism and aviation.

Facing this problem Dubai has to make a radical rethink so they can decide on what way they should follow to end the recession. All this comes with a new leadership from the chairman of Dubai World, Sultan bin Sulayenn; the chairman of Dubai Holdings, Mohammed al-Gergawi; and the chairman of Emaar properties, Mohammed Alabbar, this three important man had lost influence. The new conversative makers in charge are Mohammed al-Shaibani, Ahmed al-Tayer and Absulrahman al-Saleh which have a reputation for been careful mergers and acquisitions, cost cutting exercises and know how to deal with financial problems. These new persons in charge are close adviser of Sheikh Mohammed bin Rashid al-Maktoum which is an importer merchant.

2.2 Case Incident 2 – Barry’s Peer Becomes His Boss

2.2.2 Case Summary

This case talks about a guy named Barry, who works at CTM, relatively small but growing technology company. The company had reorganization 5 months ago and seemed that it provided career improvements to its employees. Barry’s co-worker, Raphael had worked in the company more longer than Barry and promoted to another department during the last re-organization. Barry felt that he would have a same career improvement opportunity in the near future as he and Raphael used to work on similar tasks with mostly same roles. Barry’s boss left his job 6 weeks ago but unfortunately his long-waited promotion did not come. Also, his previous co-worker Raphael, who had worked with CEO before on a successful project took over the position. Despite how he felt bit overlooked, he thought that it may turn into good as he had good relationship with Raphael in the past.

However, it did not turn as he expected. Even Raphael complimented him several times, Barry felt his opinion and ideas was not being shared with the higher ranking officials. Furthermore, Barry found out that Raphael had taken credit for Barry’s work after couple of his friends showed him the several emails proving that. Now, he concerns about his future career opportunity in the company.

2.2.1 Discussion Questions

How would you prioritize and delegate the tasks of the new key decision makers in Dubai?

We divide this question with two:

Prioritize        

• Divide the essential and non-essential → all the problems that Dubai is facing most be divide.
• Rank tasks in order of importance → this will help to give a priority to the problems that has to be solves sooner than the others.
• Focus on most critical issues and initiatives

As we know Dubai is a conservative country, their religion is one of the most difficult part to deal with. Therefore, we need that these new decision makers have to open their main.

Delegate

• Entrust employees to make some decision, given them clear expectations
• Allocate work in ways that empower others to do their best and play their strengths
• Match the amount of responsibility.

Control of decision making and financial expenditures was the root cause of the debt situation in Dubai. Sheikh Mohammed Bin Rashid Al Maktoum has delegated to people who can make decision on his behalf. Would a more “hands-on” approach be more effective, or would this hinder progress?

• Hands – on → involving or offering active participation rather than theory, they need to learn how to apply all the knowledge that they have to solve the problem making decision and innovate new ideas and ways.
• Hands-on approach be more effective:

        -Analysis and evaluate the decisions

        -Pro-active presence who’s continually encouraging and motivating

        -Invites feedback and responds to comments or concerns.

Abu Dhabi provides much of the funding for the UAE central bank. It has bankrolled Dubai at cost in terms of political and economic freedom. To what extent do you think Dubai is losing its ability to make its own decisions?

Dubai has to “Scarcity” → which refers to the basic economic problem, the gap between limited  resources and theoretically limitless wants. This situation requires people to make decisions about how to allocate resources efficiently, in order to satisfy basic needs and as many additional wants at possible. Therefore, the three new decision maker has to use all the resources that Dubai has and explode them to help Dubai to get out of the recession.