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Gazeta Global Volume 35, March 2013 Table of Contents

National Recognition in the UAE Researchers aim to establish business criteria for a national quality award in the United Arab Emirates by Vijayan Namibiar and Subhashis Nandy The United Arab Emirates (UAE) is one of the most prosperous countries in the Arab world, based on various parameters such as gross domestic product, infrastructure development and human rights.(1) The country offers tangible and organized infrastructure and an approachable and unobstructed employment market, resulting in remarkable trade and industry growth.(2) In the UAE, three quality awards are popular among private-sector organizations: the Sheikh Khalifa Excellence Award (SKEA) in Abu Dhabi, the Mohammad Bin Rashid Al Maktoum (MRM) Business Award in Dubai and the Dubai Quality Award (DQA) which is based on the criteria for the European Foundation for Quality Management (EFQM) Award. Aside from some preliminary research, there has been a lack of empirical research work to identify relevant criteria for implementation of quality awards among UAE business on a national level. In this article, we identify relevant criteria from the EFQM award that can be adopted for a national quality award (NQA) in the UAE. For this study, one of the researchers(3) interviewed 20 business leaders from the UAE: some have participated in quality awards and others have not. The goal was to find out what criteria these leaders consider to be important. Based on the results of the interviews, we identified key themes to consider when developing criteria for an NQA in the UAE: The changing business environment. Before 2000, small and medium enterprises dominated the UAE. Professional management did not drive organizationsmost businesses were family-owned and were mainly involved in trade. A majority of businesses were run by first-generation entrepreneurs and not backed by high caliber, global professionals. A literature review confirmed this dominance of family business in pre-millennial UAE.(4) Since 2000, however, the business world has undergone a noticeable transformation. The country changed from a government-spending economy to an open economy, and the government began to develop public and private partnerships along with implementing necessary changes in regulations. Ownership transferred from the first generation to the second.(5) The length of time an organization has been in businesswhether it was developed before or after 2000should be considered, as well as how it has adapted to these changes in the UAE business environment. Previous participation in quality award programs. Major business organizations in the UAE participate in quality awards because of the prestige associated with recognition. It offers considerable branding and external market equity opportunities, along with process or internal equity perspectives. The researcher found three main reasons organizations participated in quality awards: 1. Recognition from a local body can potentially offer considerable brand recognition. Previous researchers(6) have observed organizations use quality awards as marketing tools, and regular participation enabled organizations to accumulate more points in the assessment without requiring an improvement in quality standards. 2. Promotion of organizational development and improvement, particularly in quality management, at a minimal cost. 3. A way to implement systematic organizational change as a result of the direct involvement of core departments. Relevance of the EFQM model to the UAE. The EFQM model is comprehensive and considers it the important enablers of managing a business organization such as leadership, processes, policies, strategies, people and resources. In 2010, the model was slightly revised from the original 2003 model. The changes included mark modification and changes in some of the terms used. Three important characteristics of the UAE market are that it is an emerging economy, it is oriented on high growth, and the family business structure influences the application of the model. Differences in business structure among European and UAE organizations. The responses to our survey indicated a distinct difference between business structures in developed European countries and the UAE. In the UAE, 80% of the workforce is comprised of expatriates with work visas for two to three years. Employers can expect a reasonable level of output from the employees, irrespective of the resources provided. The same is not true in developed markets. In a developed market, employees have more rights, including the right to protect their own interests, and employers value their opinions. Leadership. Successful results from NQA programs depend on leadership. To achieve quality results, leaders must explicitly lead and demonstrate commitment. Leaders are individuals the organization assigns the responsibility

Education (K-16) Government Healthcare Manufacturing Service

commitment. Leaders are individuals the organization assigns the responsibility to deliver output and manage others. The leader should develop the vision, mission and values of the organization in consultation with the key members of the organization. Corporate governance. The results of our research for this theme confirmed those obtained by previous researchers(7) who conducted studies aimed at understanding the level of corporate governance and control mechanisms in organizations in the UAE. Our survey revealed a lack of corporate governance which promotes loyalty. For example, audit can be construed as a lack of trust and therefore not routinely done. Processes and policies. The study revealed that business leaders of the UAE found international and other quality certifications quite important, which is consistent with previous findings.(8) Our study also found that standardization of process and policies has positive influence on quality, operations and business performance. People and people results. The study confirmed that organizational commitment depends on training, compensation and transparency. Similar findings were observed in a study of business organizations in Kuwait.(9) Resources and partnerships. The feedback from our survey suggested confusion relating to partnership. The interviewees confused the partnership with the legal partners or owners of the organization. Data analysis suggested the renaming of partnerships as stakeholders. By incorporating stakeholder criteria, a new business model will highlight society as a stakeholder. Resources, along with policies and strategies, will form a new criterion. Financial reporting. The UAE has a tax-free economy. In a taxed economy, the accounting systems, and therefore the audit system supporting taxation, bring an established foundation to the metrics and measurement systems. Metrics and measurement systems are missing in the UAE, thereby increasing the incentive for applying the NQA model. The government does not insist on external financial audits for private companies. Implications of the findings From the interview results, we identified that the leadership criterion is especially relevant for the success of a NQA model. The typical challenges in the UAE business environment include ambiguous management characteristics, lack of leadership development initiatives for business managers, and the involvement of owners in the everyday management of the business. Process management is the key to quality success. The implementation of ISO standards or any quality certification should be the minimum requirement for NQA qualification. Policy, strategy and resource management are critical for the long-term sustainability of organizations. C orporate social responsibility also should be included as an important criterion for NQA in the UAE. References 1. Rasha Nasra and M. Tina Dacin, "Institutional Arrangements and International Entrepreneurship: the State as Institutional Entrepreneurship," Entrepreneurship Theory and Practice, May 2010, pp. 583-608. 2. Nathan Al-Khazraji, "The C ulture of C ommercialism: Globalization in the UAE," M.A.L.S. dissertation, Georgetown University, 2009. 3. V. Namibiar, "A Grounded Theory Study on Business Excellence Models in the UAE," doctoral thesis, University of Phoenix, 2012. 4. Dianne H. B. Welsh and Peter Raven, "Family Business in the Middle East: An Exploratory Study of Retail Management in Kuwait and Lebanon," Family Business Review, March 2006, pp. 29-48. 5. Al-Khazraji, " The C ulture of C ommercialism: Globalization in the UAE," see reference 2. 6. Adrian Hughes and David N. Halsall, "C omparison of the 14 Deadly Diseases and the Business Excellence Model," Total Quality Management, Vol. 13, No. 2, 2002, pp. 255-263. 7. Lamia Abdelaziz Obay, "C orporate Governance and Business Ethics: A Dubai-based Survey," Journal of Legal, Ethical and Regulatory Issues, Vol. 12, No. 2, 2009, pp. 29-47. 8. N. Jabnoun and K. Sedrani, "TQM, C ulture and Performance in UAE Manufacturing Firms," The Quality Management Journal, Vol. 12, No. 4, 2005, pp. 8-20. 9. Michel Zaitouni, Nabeel N. Sawalha and Adil El Sharif, "The Impact of Human Resource Management Practices on Organizational C ommitment in the Banking Sector in Kuwait," International Journal of Business and Management, Vol. 6, No. 6, 2011, pp. 108-123. Vijayan Nambiar is the chief operating officer of NMC Trading in the United Arab Emirates. He has a doctorate from the University of Phoenix. Subhashis Nandy is a faculty member at the University of Phoenix and teaches MBA courses in quality management, strategic management and quantitative methods. He has a doctorate from Pennsylvania State University in University Park.

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