Introduction
This report is aimed at analyzing two UAE-based companies, namely Emirates Telecommunications Corporation commonly known as Etisalat and Emirates Integrated Telecommunications Company or Du that also operates in mobile industry market. In particular, it is necessary to compare these organizations in terms of leadership, teambuilding strategies, managing organizational change, and human resource management. Secondly, this paper will have to determine whether these companies face any challenges and provide recommendations for settling them.
This comparison will be based on both primary and secondary sources that describe the functioning of these two companies. This discussion will show how these organizations ensure effective work and satisfaction of staff members. We will also comment on their recruitment strategies, the appraisal of employee’s performance, and those growth opportunities which these companies provide to their workers. Moreover, this paper will throw light on how these organizations can improve their work. Finally, we will need to apply theoretical concepts that can be related to Etisalat or Du. These companies should be able to work in a very competitive market. Therefore, they have to align the efforts of their staff members.
Analysis and comparison
Etisalat
Etisalat attaches great importance to development of employee’s leadership qualities. Nasser Bin Obood, the Chief Corporate Affairs Officer points out that this company is always willing to invest in vocational education of employees. In particular, they established Etisalat University College which provides courses for graduate students (Bin Obood as cited in Stengaard unpaged). Additionally, this company has its academies in various countries like Dubai, Egypt, and Sudan.
This approach is aimed at ensuring that every employee of this organization has opportunities do acquire new skills without which he/she can hardly demonstrate leadership qualities. Apart from that, one should mention that Etisalat employees are able to take part in the Abu Dhabi Excellent Summit. This summit offers people an excellent opportunity to learn more about leadership. Overall, this organization favors more democratic approach to leadership which means that employees are encouraged to improve their professional skills and take part in the decision-making process but only in those cases, when the task is not urgent (Daft and Lane, 44).
Additionally, this corporation pays close attention to teambuilding. They attempt to promote a sense of unity among employees. This is one of the reasons why they provide accommodation to employees and trainees. For instance, one can mention Etisalat Academy Residence which numbers more than 250 rooms (Etisalat unpaged). The residents can take part in various in-door and outdoor leisure activities. Moreover, they can go in for sports. This common experience intensifies people’s sense of belonging to a team and company.
We should mention that Etisalat willingly invests in new projects, products, and services. The organization strives to be ready for technological and economic changes. By providing extra training to employees, this company ensures that these people are ready for new requirements and new roles. Yet, this corporation has never implemented significant changes in its structure or culture.
This company understands the importance of human resource management. Each job applicant has to take training before being accepted. Furthermore, this organization guarantees competitive compensation to the workers and added social benefits. Overall, they regard employee retention and satisfaction as the keys to success.
Emirates Integrated Telecommunications Company
Such company as Du is relatively new, and at this point they do not have the infrastructure that Etisalat has. This management of this organization emphasizes the fact that talented employees should have the ability to develop their managerial skills. This is why many of them receive MBA training (Emirates Integrated Telecommunications Company, 16). It is also worth noting that this organization encourages employees to express their views about the company’s performance. More than 90 percent of works can take part in such surveys (Emirates Integrated Telecommunications Company, 16). In this way, they are able to give their recommendations for improving the company’s work. Overall, this approach is usually called participation and involvement (Daft and Lane, 473).
Unfortunately, very little is being said about teambuilding incentives of this company. Certainly, this organization allows its employees to take part in various leisure activities. However, these incentives can hardly be compared to Etisalat Academy which enables trainees and future employee to have the sense of belonging to the company.
This company was founded only in 2006, and since that time it did not have to face significant challenges. Nonetheless, they try to make their labor force more mobile by offering them extra training. In part, this lack of change can be explained by lack of competition in the UAE market.
HR management is an important element of Du’s success. This company provides a variety of compensation options such as share-based compensation, monthly salary, termination compensation, and so forth. The amount of compensation depends on a person’s performance, experience, and the number of years that he/she has been working with the company. Again. the management of this company focuses on recruitment policies and hires the best professionals from the United Arab Emirates and other countries. It should be taken into account that Du pursues the policy of Emiratisation of workforce. In other words, they want to increase the percentage of Emirati workers in comparison with expatriates (Emirates Integrated Telecommunications Company 14). These are the main aspects that reflect their HR policies.
Comparison
We can argue that both these companies strive to promote leadership skills and professional growth of their employees. They pursue these policies in order make prepare labor force for possible economic, social, or technological challenges. There are several differences between these organizations. First, Etisalat pays more importance for teambuilding. Finally, the recruitment policies of Du are driven by the need for Emiratization. This trend cannot be observed in Etisalat.
Problem identification and suggestions
Etisalat
The problems of Etisalat are mostly connected with the fact that they operate in countries that may have different business cultures. This corporation has its branches in India, Pakistan, Nigeria, Egypt, and so forth (Plunkett, 344). In the United Arab Emirates this organization has practically no competitors. The situation is not the same in foreign countries like India or Egypt. It is possible to identify several problems; they are as follows:
The necessity to work in different in different legal, economic, and cultural environments. Etisalat has to make sure that its employees understand organizational goals and values of this corporation. This is a hypothetical challenge but it has to be overcome, if the company wants to occupy leading positions in the UAE and other countries.
Solution. Etisalat should pay more attention to cross-cultural management. This corporation hires workers from many countries, and these people should have opportunities to meet one another and discuss various strategies of the company. Ability to share ideas and practices with one another is crucial for any international company, and Etisalat is not an exception.
The need to provide business education to future leaders. Etisalat attaches great importance to engineering while training future employees. However, it seems not much attention is being paid to business administration skills.
Solution. It should be noted that Du encourages its workers to take MBA classes. Such a policy can surely be emulated by Etisalat. By offering courses in business administration, this company will help employees display their leadership qualities. So, one can say that Etisalat University College can greatly benefit its future employees of this corporation.
Emirates Integrated Telecommunications Company
Overall, Du has to face several challenges. In this section, we will explain some of them and provide recommendations that can help settle these problems. These are the challenges that have to be addressed:
Underrepresentation of Emirati employees. In the previous section, we have mentioned that the company attempts to attract more Emirati workers, but at this moment they constitute only 23 percent of the total workforce (Emirates Integrated Telecommunications Company 14). This may eventually harm the reputation of this company among local people.
Solution: This problem can be settled by establishing an educational institution like Etisalat Academy. By doing so, this management of Du will make sure that Emirati workers are able to meet the company’s performance requirements. Such a strategy will offer more opportunities for talented Emirati workers.
Lack of teambuilding initiatives. As we have pointed out before the company does not take enough initiatives to promote teambuilding (See p. 5 Section 2. B). Admittedly, these people have opportunities for professional growth. Yet, these people should also have the sense of belonging to the company. Without this emotional appeal, it will be rather difficult for Du to live through the times of crisis.
Solution. The management of Du should organize seminars, conferences for the majority of staff members. Such events will enable them to feel that they are a part of a larger whole. Moreover, these conferences and seminars will allow the employees to share the best practices. So, in this way, they will improve not only team spirit in the company, but its overall performance.
On the whole, Du has the capacity to become one of the largest telecommunication companies in the Middle East. They are a relatively young organization that still has to form its business culture. The initiatives that we have suggested can assist the management of Du.
Conclusion
This discussion shows that teambuilding, leadership, and compensation always have significant implications for the performance of a company. The organizations that we have described operate in the same country and in the same country. Etisalat is an experienced company that has many resources to achieve its objectives. Our main recommendation to these companies is to facilitate communication and interactions between local employees and those ones who work overseas. In turn, Du should establish a local educational institution for its workers. Moreover, they should promote teambuilding by organizing conferences, summits, and seminars for employees. Both these organizations will have to work in a highly completive environment. Ability to recruit, retain and motivate the most talented candidates is of the greatest importance for them. These are the key issues identified in this report.
Works Cited
Daft Richard and Land Patricia. The leadership experience. NY: Cengage Learning. 2007. Print.
Emirates Integrated Telecommunications Company. Sustainability Development Report. 2011. Web.
Etisalat. Etisalat Academy Residence. 2010. Web.
Plunkett Jack. Plunkett’s Telecommunications Industry Almanac. NY: Plunkett Research. 2009. Print.
Stengaard Anne-Birte. “Etisalat pioneers investing in employee excellence to sustain industry leadership.” Web.