Analyzing performance in the UAE manufacturing
industry using the high performance
organization framework

André
de Waal (1)
Mirna Mroueh (2)
Liesbeth Schiavo (3)
(1) The HPO Center, the Netherlands
(2) Trireme Consultants, United Arab
Emirates
(3) formerly from the Case company,
United Arab Emirates
Correspondence:
André de Waal
HPO Center, Havenstraat 29,
1211KG Hilversum,
the Netherlands
Email: andredewaal@planet.nl

Abstract
In the past 15 years there has
been a strong drive for excellence
in the United Arab Emirates (UAE).
However, in their strive for excellence
UAE organizations depend heavily on
excellence frameworks developed in
the Western world. But when applying
these management techniques one has
to take into account the context in
which they are used as literature
has shown that Western management
techniques cannot indiscriminately
be transferred into non-Western contexts.
This article describes exploratory
research in which an HPO framework,
as developed by de Waal (2006, 2012)
is tested in the UAE context at a
manufacturing company, in order to
gauge whether this framework can be
used successfully at an UAE organization
to evaluate this organization's performance
and to point out improvements. The
research results showed that the HPO
Framework is able to accurately evaluate
the situation of this manufacturing
company and to yield targeted recommendations
to improve the performance of the
company.
Key words: high performance
organizations, HPO Framework, United
Arab Emirates, organizational performance,
manufacturing industry

Introduction
In the past years there has been a
strong drive for excellence in the
United Arab Emirates (UAE) (McLaurin
and Mitias, 2008; Rashid Al Maktoum,
2012). The rulers of the Emirates
have introduced several excellence
awards, both for the public and private
sectors. As a result, terms such as
efficiency, effectiveness, customer
service and total quality management
are much used in the local business
world (Al Gergawi, 2009; Mansour and
Jakka, 2013). In their strive for
excellence UAE organizations depend
heavily on excellence frameworks developed
in the Western world, such as the
Malcolm Baldrige Excellence model
and the EFQM (European Foundation
of Quality Model). However, when applying
these management techniques one has
to take into account the context in
which they are used (Holtbrügge,
2013; Rees-Caldwell and Pinnington,
2013). Literature has shown that Western
management techniques cannot indiscriminately
be transferred into non-Western contexts
as these techniques might not work
or work in a different way in these
non-Western contexts, because of the
impact of local culture (Elbanna and
Gherib, 2012; Matic, 2008; Palrecha,
2009; Wang, 2010). At the same time
research on globalization increasingly
finds that the transfer of especially
Western management techniques - which
started to get traction with the increase
of multinational and global companies
- is leading to similar patterns of
behavior in Western and non-Western
organizations. This opens an avenue
for high performance techniques -
developed in the West - to be applied
in the UAE (Bowman et al., 2000; Costigan
et al., 2005; Zagersek et al., 2004).
This article describes exploratory
research in which an HPO framework,
as developed by de Waal (2006, 2012)
is tested in the UAE context, in order
to gauge whether this framework can
be used successfully at a UAE organization
to evaluate this organization's performance
and to point out improvements. The
research question is therefore formulated
as follows: Can de Waal's HPO Framework
be used to evaluate the performance
of a UAE organization and to come
up with tangible recommendations?
This HPO Framework has been previously
applied twice at UAE organizations,
but only to identify best practices
and best ideas. In this article the
HPO Framework is used to the full
extent (which entails conducting a
questionnaire, interviews, and a feedback
workshop with management) for the
first time at an organization in the
UAE, to evaluate its performance and
to identify areas for improvement.
The theoretical contribution of this
research can be found in the extension
of knowledge about how to implement
HPO frameworks in the Middle Eastern
context and about the cultural aspects
which play a role in such implementations.
The practical contribution will be
that other UAE organizations can start
using the HPO Framework as the basis
for their improvement efforts, and
that managers applying such frameworks
can prepare themselves for the cultural
aspects which might influence such
improvement efforts.
High Performance
Research in the UAE
Because of the strong drive for excellence
in the UAE it does not come as a surprise
that there is quite a lot of academic
literature on excellence and (high)
performance in the UAE. For instance,
Siddique (2004) examined the impact
of job analysis on organizational
performance among 148 UAE companies
and found that a practice of proactive
job analysis - supported by: good
HR information systems, an HR department
heavily involved in strategic planning,
and a strong emphasis on competency-based
characteristics of employees - was
strongly related to performance. Behery
(2011) looked at the impact of high
involvement work practices on trust
and commitment in a service organization
in the UAE and found a positive relation.
Elbanna (2012) examined in 174 public
and private UAE organizations whether
slack and planning (comprehensiveness
of strategic decision making and extensiveness
of strategic planning) contributed
towards organizational performance,
and found that both slack and comprehensiveness
were predictors of performance and
that this performance varied with
the age of an organization. This same
result was basically found by Fadol
et al. (2015) who looked at the mediating
role of extensiveness of strategic
planning on the relationship between
slack resources and organizational
performance in UAE hospitals. These
authors found that the positive relationship
between slack resources and organizational
performance was indeed mediated by
the effort that was put into the strategic
planning process.
Whiteoak and Manning (2012) investigated
the relationship between employees'
perceptions of supervisors' emotional
intelligence and organizational outcomes
in a government-run UAE organization.
They uncovered that supervisors' emotional
intelligence was related to higher
job satisfaction and group task satisfaction,
which in turn were related to higher
workgroup attachment, which was related
to better organizational performance.
Suliman and Al Harethi (2013) examined
the relationship between perceived
work climate and work performance
in a UAE security organization, and
found that organizational climate
and its components significantly predicted
work performance. Abdalla Alfaki and
Ahmed (2013) assessed the impact of
information and communication technology
(ICT) and education on improving the
technological readiness of UAE organizations
and on strengthening the global competitiveness
of the UAE. They concluded that ICT
and education increased productivity
and competitiveness of a UAE organization,
but also that the UAE was still lagging
behind most transformation economies
with regards to technological readiness
which impeded the country's ability
to absorb, adapt and create new technology
and knowledge. Al-Ansaari et al. (2015)
examined the role of a particular
strategic orientation (technology,
alliance, market orientation) of 200
small and medium-sized enterprises
in the UAE, and found that market
orientation had a more positive effect
on business performance compared to
technology and alliance orientations.
Suliman and Kathairi (2013) examined
the links between organizational justice,
organizational commitment (i.e. employees'
loyalty) and job performance in three
UAE government organizations, and
found a positive relation between
these factors. Shah and Dubey (2013)
studied the relationship between market
orientation (involving gathering intelligence
about customers, competitors, channels,
and intermediaries and disseminating
that intelligence through various
functions of an organization for implementation)
and organizational performance in
the financial sector of the UAE, and
uncovered a strong positive correlation.
Pettaway et al. (2015) identified
six dimensions shaping employees'
perceptions of organizational effectiveness
in a UAE institution of higher education,
being a holistic impression of the
organizational effectiveness of the
institution; opinion of employee convenience
services; views concerning employee
involvement; perception of the security
and appearance of the campus; opinion
regarding the helpfulness of employee
support services; and the organization's
focus on continuous improvement. Zacca
et al. (2015) measured the impact
of network capability (NC) on the
performance of small enterprises in
the UAE through knowledge creation
and two dimensions of entrepreneurial
orientation (competitive aggressiveness
and innovativeness). They found that
NC was positively related to knowledge
creation and competitive aggressiveness
and innovativeness were key mediators
between knowledge creation and firm
performance. Al-Dhaafri et al. (2016)
looked at the joint effect of entrepreneurial
orientation (EO) and total quality
management (TQM) on the performance
of the Dubai Police, and confirmed
the positive effect of EO and TQM
on organizational performance.
When looking at the literature discussed,
it is conspicuous that the majority
of studies are not holistic of nature,
i.e. they do not look at the complete
picture of the potential relationships
of the processes, resources and culture
in the organization and organizational
outcomes, but only at possible links
between a specific organizational
item and performance. This type of
specialist research is valuable but
it does not provide a complete overview
of the factors that mutually influence
the performance of UAE organizations.
There is therefore a risk that a UAE
organization starts to focus on one
factor in isolation without knowing
its effects (either positive or detrimental)
on other factors in the organization
and in the end on organizational performance.
Only three research studies found
seemed to be of a holistic nature.
Abdulla Badri et al. (2006) empirically
tested the causal relationships between
the Malcolm Baldrige National Quality
Award (MBNQA) Education Performance
Excellence Criteria and organizational
outcomes for 15 UAE universities and
colleges. They confirmed that all
their hypothesized causal relationships
in the Baldrige model were statistically
significant, with leadership being
the key driver for all components
in the Baldrige System. De Waal et
al. (2014) analyzed the effectiveness
of the internal and external processes
of a UAE training company against
a framework of high-performance organization
characteristics, and thus uncovered
best practices based on the company's
underlying strengths and also identified
opportunities for improvement. In
a similar vein, de Waal and Frijns
(2014) looked at the workings of a
subsidiary of a multinational enterprise
operating in the UAE using the same
HPO Framework, and found that the
applied framework could successfully
be used to evaluate the performance
and the underlying processes which
created this performance of the case
company. Thus de Waal's HPO Framework,
which is of a generic and holistic
nature, has been applied successfully
twice in the UAE context. However,
the framework was only used to identify
best practices and best ideas without
applying a full diagnosis, which entails
conducting a questionnaire, interviews,
and a feedback workshop. In this study
we apply de Waal's HPO Framework for
the first time fully to evaluate the
mechanisms and performance of a manufacturing
company in the UAE. In the next section,
the HPO Framework is introduced.
Theoretical
Framework: the HPO Framework
The High Performance Organization
(HPO) framework was developed based
on a descriptive literature review
(Phase 1) and an empirical study in
the form of a worldwide questionnaire
(Phase 2) (de Waal, 2006 rev. 2010,
2012a+b). The first phase of the study
consisted of collecting the studies
on high performance and excellence
that were to be included in the empirical
study. Criteria for including studies
in the research were that the study:
(1) was aimed specifically at identifying
HPO factors or best practices; (2)
consisted of either a survey with
a sufficient large number of respondents,
so that its results could be assumed
to be (fairly) generic, or of in-depth
case studies of several companies
so the results were at least valid
for more than one organization; (3)
employed triangulation by using more
than one research method; and (4)
included written documentation containing
an account and justification of the
research method, research approach
and selection of the research population,
a well-described analysis, and retraceable
results and conclusions allowing assessment
of the quality of the research method.
The literature search yielded 290
studies which satisfied all or some
of the four criteria. The identification
process of the HPO characteristics
consisted of a succession of steps.
First, elements were extracted from
each of the publications that the
authors themselves regarded as essential
for high performance. These elements
were then entered in a matrix which
listed all the factors included in
the framework. Because different authors
used different terminologies in their
publications, similar elements were
placed in groups under a factor and
each group - later to be named 'characteristic'-
was given an appropriate description.
Subsequently, a matrix was constructed
for each factor listing a number of
characteristics. A total of 189 characteristics
were identified. After that, the 'weighted
importance', i.e. the number of times
a characteristic occurred in the individual
study categories, was calculated for
each of the characteristics. Finally,
the characteristics with a weighted
importance of at least six percent
were chosen as the HPO characteristics
that potentially make up a HPO, these
were 54 characteristics.
In Phase 2 the 54 potential HPO characteristics
were included in a questionnaire which
was administered during lectures and
workshops given to managers by the
author and his colleagues all over
the world. The respondents of the
questionnaire were asked to indicate
how well their organization performed
on the various HPO characteristics
on a scale of 1 (very poor) to 10
(excellent) and also how its organizational
results compared with its peer group.
Two types of competitive performance
were established (Matear et al., 2004):
(1) Relative Performance (RP) versus
competitors: RP = 1 - ([RPT - RPW]
/ [RPT]), in which RPT = total number
of competitors and RPW = number of
competitors with worse performance;
(2) Historic Performance (HP) of the
past five years (possible answers:
worse, the same, or better). These
subjective measures of organizational
performance are accepted indicators
of real performance (Dawes, 1999;
Heap and Bolton, 2004; Jing and Avery,
2008). The questionnaire yielded 2,015
responses of 1,470 organizations.
With a correlation analysis and a
factor analysis 35 characteristics
with both a significant and a strong
correlation with organizational performance
were extracted and identified, and
categorized in five factors. The factor
scales showed acceptable reliability
(Hair et al., 1998) with Cronbach
alpha values close to or above 0.70.
These five factors and their accompanying
35 characteristics show a direct and
positive relationship with the competitive
performance of the organization. The
factors have since 2007 been validated
for many countries, based on data
collected worldwide from approximately
3,000 organizations, both profit and
non-profit. Therefore it is important
to mention that they basically remain
unchanged regardless of the type of
organization being diagnosed, the
type of industry involved, or the
country in which the organization
is based.
The research yielded the following
definition of an HPO: "an organization
that achieves financial and non-financial
results that are exceedingly better
than those of its peer group over
a period of time of five years or
more, by focusing in a disciplined
way on that which really matters to
the organization" (de Waal, 2012,
p.5). The five HPO factors are:
1. Management Quality.
Belief and trust in others and fair
treatment are encouraged in an HPO.
Managers are trustworthy, live with
integrity, show commitment, enthusiasm,
and respect, and have a decisive,
action-focused decision-making style.
Management holds people accountable
for their results by maintaining clear
accountability for performance. Values
and strategy are communicated throughout
the organization, so everyone knows
and embraces these.
2. Openness and Action-Orientation.
An HPO has an open culture,
which means that management values
the opinions of employees and involves
them in important organizational processes.
Making mistakes is allowed and is
regarded as an opportunity to learn.
Employees spend a lot of time on dialogue,
knowledge exchange, and learning,
to develop new ideas aimed at increasing
their performance and make the organization
performance-driven. Managers are personally
involved in experimenting thereby
fostering an environment of change
in the organization.
3. Long-Term Orientation.
An HPO grows through partnerships
with suppliers and customers, so long-term
commitment is extended to all stakeholders.
Vacancies are filled by high-potential
internal candidates first, and people
are encouraged to become leaders.
An HPO creates a safe and secure workplace
(both physical and mental), and dismisses
employees only as a last resort.
4. Continuous Improvement and
Renewal. An HPO compensates
for dying strategies by renewing these
and making them unique. The organization
continuously improves, simplifies
and aligns its processes and innovates
its products and services, creating
new sources of competitive advantage
to respond to market developments.
Furthermore, the HPO manages its core
competences efficiently, and sources
out non-core competences.
5. Employee Quality. An
HPO assembles and recruits a diverse
and complementary management team
and workforce with maximum work flexibility.
The workforce is trained to be resilient
and flexible. They are encouraged
to develop their skills to accomplish
extraordinary results and are held
responsible for their performance,
as a result of which creativity is
increased, leading to better results.
Appendix 1 lists the characteristics
of the HPO Framework. The HPO research
shows that there is a direct and positive
relationship between the five HPO
factors and competitive performance:
the higher the scores on the HPO factors
(HPO scores), the better the results
of the organization, and the lower
the HPO scores the lower the competitive
performance. The research also shows
that all HPO factors need to have
equal scores. An organization can
evaluate its HPO status by having
its management and employees fill
in the HPO Questionnaire, consisting
of questions based on the 35 HPO characteristics
with possible answers on an absolute
scale of 1 (very poor) to 10 (excellent),
and then calculating the average scores
on the HPO factors. These average
scores indicate where the organization
has to take action to improve in order
to become an HPO.
The Case Company
The case company, which prefers to
stay anonymous, is a manufacturing
company based in Dubai since the 1960s.
The ISO 9001 certified company manufacturers
a diverse range of products and offers
a range of services from its facilities
in Sharjah, Dubai and Abu Dhabi. The
company is one of the largest manufacturers
of building materials for the construction
industry. The company prides itself
on manufacturing products to international
quality standards, ensuring timely
delivery, and providing exceptional
service. The company has a robust
Quality Management System that ensures
that its products and services surpass
customers' expectations and that continuous
improvement is part of every operational
process. In addition, the company
stays focused on finding new ways
to design, produce, sell and deliver
quality products at economic prices.
The company has approximately 1,000
employees.
Until 2009 the company had been growing
both in revenue and profit but since
that year the company was on a downward
trajectory. From 2012 the downward
slope halted and the company's performance
stabilized and even increased slightly.
In this, the company had more or less
precisely followed industry developments
in the UAE, in which until 2008 there
had been robust growth (+8 percent
per year), from 2009 to 2010 a decline
(-19 percent per year) and in 2011
to 2013 an increase again (between
+3 and +6 percent per year). It was
projected there would be a continued
growth from 2014 onwards, however
international competition was also
expected to increase. This was because
of the increased popularity of the
free trade zones in the UAE, joint
ventures, and open trade policies
which made it easier for foreign companies
to establish themselves in the region.
In addition, there was increased interest
of local companies to move into the
field in which the company was operating.
Therefore, the company decided it
needed to understand better whether
the company had the factors in place
to allow it to be competitive, or
if those factors had to be improved
and strengthened.
Research Approach
and Results
The authors were approached by the
company and after a first visit in
which the authors and the company
got acquainted, the company decided
to undertake the HPO Diagnosis. The
HPO Questionnaire was tailored by
the authors to reflect the organizational
structure, organigram and set-up of
the company and then put in an electronic
format. A link was sent to the company's
contact person who forwarded this
link to all managers and employees
who had access to a computer. For
people with no electronic access a
special room with computers was set-up
where these people were invited to
partake in the questionnaire. In the
questionnaire, managers and employees
were asked to rate the company on
the 35 HPO characteristics, on a scale
of 1 (the company does not satisfy
the characteristic at all) to 10 (the
company satisfies the characteristic
completely). It was decided by the
company's management to only survey
'white collars' (from Supervisory
level and up) for the reason that
the education level of the 'blue collars'
was deemed too low to understand the
HPO Questionnaire properly. Most of
these workers were expatriates with
limited knowledge of English, on average
a primary educational level, and also
had limited knowledge of the company
as they only worked in the factory.
In total, 183 valid questionnaires
were received, out of a possible total
of 220 respondents, resulting in a
response rate of 83.2 percent. The
scores of all respondents were averaged
for the five HPO factors and the 35
underlying characteristics and put
in a graph (see Exhibit 1), indicating
the company's HPO status relative
to an HPO and to the average of the
HPO scores for UAE organizations as
collected in the database of the HPO
Center. To be considered high-performing,
an organization needs to have an average
score of at least 8.5 on each HPO
factor (de Waal, 2012). As can be
seen from Exhibit 1 the company was
an average performing one, in line
with other UAE organizations. In fact,
as the graphs for both are the same
shape, it can be stated that the company
was a typical UAE organization at
the time of the diagnosis.
Click here for:
Appendix 1: HPO scores of the company
versus the average scores of UAE organizations
Subsequently, twenty one-hour interviews
were conducted by two of the authors
with managers and employees, at the
Dubai and Sharjah locations. Notes
were taken during the interviews while
confidentiality was guaranteed to
the interviewees. The authors analyzed
the data from the questionnaires and
the interviews, to identify areas
where the case company performed well
and areas where the company could
improve. After this, based on the
analysis, a feedback presentation
was given to the management of the
company. During the presentation the
analysis and recommendations were
presented and discussed, and questions
of the management team were answered.
Finally, a draft of this article was
sent to the company for review and
approval.
Analysis
The analysis first concentrated on
the strong points of the company as
it needed to keep and use these while
working on becoming an HPO. The case
company enjoyed an excellent reputation
in the market, mainly because of its
good technical workforce. In addition,
managers and employees were loyal
to the company, while at the same
time the company was loyal to them
and also organized lots of social
activities to increase a 'family feeling'.
As one of the interviewees put it:
"This is a beautiful and unique
company." The analysis yielded
three main recommendations which were
aimed to advance the company from
an average to a high performing company.
HPO recommendation
1: Prepare managers for the future
Despite the high score for HPO Factor
management Quality (8.3) it became
clear from the interviews that many
of the managers had mainly relied
during their career advancement at
the company on their intrinsic motivation
and on self-development, illustrated
by this remark from one of the interviewed
managers: "I rely on my own knowledge
and I take notes from colleagues ...
but that is not enough." The
company did employ a human resource
manager but this person mainly had
an administrative task, i.e. handling
personnel information mutations and
salaries, and was not concerned with
the development aspects of the human
resource function as management did
not deem this necessary. Thus, many
of the managers were seen by the employees
as people with high integrity who
could be trusted and who did their
best, but who sometimes lacked the
management skills to be resolute,
especially with holding employees
and fellow managers accountable, as
they had never formally learned how
to do this. The recommendation therefore
was to prepare management for the
HPO future by giving the human resource
manager more maneuvering room to introduce
management development programs focused
on management skills and to make these
programs mandatory. The main part
of the programs had to be the introduction
of the Plan-Do-Check-Act cycle, as
this would be an excellent technique
to make sure processes would be fully
executed and the people responsible
for these processes would be held
accountable for their results (Carter,
1994). A related recommendation therefore
was that there should be consequences
when people did not stick to the cycle
and/or did not perform as agreed (Ferguson
et al., 2010; Furnham and Taylor,
2011). Also, a promotion to management
should always be accompanied with
an introductory management training
for the newly promoted manager (Sahni,
2011; Hendricks and Louw-Potgieter,
2012; McNeill, 2012). The programs
could also be the basis for a coherent
management team, i.e. a management
team which speaks from one mouth and
does things in a uniform way, for
example by agreeing on standard operating
procedures, taking time to understand
each other, sticking to decisions,
and communicating the same message
to employees (Higgs, 2006; Hansen,
2009; Carmeli et al., 2012). This
was sorely needed because one of the
consequences of the organically grown
management team was that there had
not been enough guidance for managers
in how to behave to each other and
the rest of the organization, how
to make sure a consistent message
was communicated, and how to create
a uniform way which should be used
when dealing with (non-performing)
employees. As the transition to HPO
requires different behavior and performance
on a higher level, the management
team should give the right example
to the people in the company and become
a role model of HPO behavior (Kouzes
and Posner, 2010). Working on this
recommendation would mainly benefit
the HPO factor Continuous Improvement
& Renewal because management would
get a more professional and tighter
grip on the quality of process execution.
HPO recommendation 2: Increase
morale of employees
As mentioned before people in the
company were very loyal to it, illustrated
by this comment of an interviewee:
"People are not asking for an
arm and a leg, just give them a finger
and they will retire here." However,
this did not necessarily mean they
were satisfied with everything that
happened in the company. The recommendation
was to increase morale of employees
by creating more transparency about
the on-goings in the company. By providing
employees regular updates on the company´s
situation and explaining the basis
for management´s decisions (which
is not the same as asking permission
of employees for these decisions),
employees would feel better informed
which increases commitment to the
company (Gobillot, 2007; Detert et
al., 2010). Management should also
deliberately, when contemplating a
change or update of rules, evaluate
the consequences of this change for
employees, then set the proper timing
and make sure the employees are informed
immediately. Another recommendation
originated from a remark made by an
employee who was interviewed, "We
should not only grow economically
but also with our heart", meaning
that management should create more
balance between their managerial interest
in employees (i.e. about work-related
issues) and social interest in employees
(i.e. about personal issues) (Déniz-Déniz
and Saá-Pérez, 2003;
Mittal and Elias, 2016). This could
be done by managers taking more time
to understand and interact with employees,
for instance through regular team
meetings, and by having an open door
policy which really invites people
in but where managers themselves also
go out to do regular work floor walking
(Bufe and Murphy, 2004; de Waal, 2012).
Working on this recommendation would
mainly benefit the HPO factor Openness
& Action-Orientation because management
would create more openness in the
organization.
HPO recommendation 3: Strengthen
internal cooperation
Just as many other organizations,
the case company also suffered from
the silo-effect. This effect refers
to the occurrence in which people
view their membership and loyalty
belonging to a certain unit of the
organization and consequently they
behave in a manner that benefits their
unit but could be detrimental to the
organization as a whole (Sy and D'Annunzio,
2005). This makes silos inward-focused,
self-protecting organizational units
whose 'walls' hinder collaboration
and slow execution of processes (Stone,
2004). Therefore, the company had
to cultivate cooperation between departments,
by adapting the evaluation and reward
structures so that these balanced
rewards between unit and company results.
Also, management had to look for synergy
opportunities between units and divisions,
discuss these with the parties concerned,
and then make collaboration happen
through creating sharing mechanisms
within the company. An important part
of fostering collaboration is to strengthen
the feeling among the management team
members that they together have to
make the company a success and bring
it to the HPO status, as illustrated
by an interviewed manager: "Management
is not a tennis game but a team sport"
(Hansen, 2009). Working on this recommendation
would mainly benefit HPO factors Continuous
Improvement & Renewal and Openness
& Action-Orientation because management,
by fostering more cooperation and
alignment in the organization, would
create a higher quality of process
execution and more dialogue throughout
the company.
Follow-Up of
the Diagnosis
The case company went energetically
to work with the recommendation. Regarding
recommendation 1 "Prepare managers
for the future" it was noticed
that people at the higher managerial
levels tended to stay long with the
company, in general 15 to 20 years
and sometimes even until retirement.
This however resulted in a motivation
issue for people at the middle management
level as they were not seeing many
career advancement opportunities.
As a result they tended to just stay
and work with a certain inertia, without
bringing much innovation and added
value, or they would resign after
some time. The HR manager therefore
proposed several actions to keep these
managers at the company and at the
same time prepare it, in regard to
its management quality, better for
the future: start investing in the
young generation by investing in campus
recruitment campaigns locally and
abroad so that ambitious people would
enter the company; offer fresh graduates
a graduate program whereby they would
be trained and mentored by the most
senior managers at the company; provide
training for middle-management on-the-job;
implement a new performance appraisal
system that would help to identify
managerial talent; and free-up senior
managers from certain responsibilities
to be taken over by middle managers
who in this way got an opportunity
to grow.
Certain circumstances influenced
the approach to deal with recommendation
2 "Increase morale of employees."
Just before the HPO Diagnosis was
conducted, a precious benefit was
taken away from the company's employees.
In the past, they were granted a Festival
Leave whereby they got two days of
paid leave for religious purposes.
This benefit was taken away by management
without any notice, announcement and
explanation which was seen as very
unfair as employees were working long
hours and a long week as the company
was one of the few organizations in
the UAE to work a six-day week. In
addition, the Festival Leave was considered
by employees as a way to respect diversity
and everyone's religious belief so
management's decision did not go down
well. This decision came on top of
another benefit deleted by management
a year earlier, to comply with local
law. This concerned employees newly
married who were before granted some
days of unpaid marriage leave (sometimes
up to thirty days) and a cheque of
AED 2,000. These two decisions caused
employees to start losing trust in
management, and in fact enticed them
to forget those times when management
promptly took care of the neediest
at the company. For instance, the
company silently takes care of families
of (ex-) employees who passed away,
and pays for surgery and for medical
cures for seriously ill employees
thereby going beyond what is its responsibility
as stated by the law. After the HPO
diagnosis, the case company granted
all employees a comprehensive medical
coverage package which was put in
place before this became compulsory
by law, so this gesture was taken
very positively by employees. In addition,
management organized a year end party
for all employees with traditional
dances and food; and in 2016 the company
switched to new working times so employees
had alternate Saturdays off. Finally,
in regard to recommendation 3 "Strengthen
internal cooperation" the company
started with organizing team-building
activities so that people got to know
each other better and were more willing
to mutually cooperate.
Conclusion,
Limitations and Future Research
The research question dealt with in
this article was: Can de Waal's HPO
Framework be used to evaluate the
performance of a UAE organization
and to come up with tangible recommendations?
The results of applying this framework
at the case company show that this
is indeed the case: the HPO Diagnosis
yielded an accurate picture of the
current state of this UAE company
and also originated several practical
recommendations for improvement. The
company's management team commented
the HPO diagnosis to be insightful
and objective, and found it to be
a great starting point for their reflection
on how things could be improved, starting
from the main recommendations that
quickly became the main focus areas
to work on. The results of the diagnosis
were also presented to the Chairman
of the case company who appreciated
these and urged the management team
to indeed start improving things based
on the recommendations. Finally, the
HR Manager was the most satisfied
person with the HPO Framework as it
allowed her finally to implement several
sorely needed changes. Therefore,
we can conclude that the HPO Framework
offers a holistic improvement framework
which looks at the complete picture
of the relationships of the processes,
resources and culture in the organization
and organizational outcomes, and therefore
can yield tangible recommendations
with which an organization can indeed
improve its performance.
Despite the fact that the research
question can be answered positively,
there are several limitations to this
research. As the HPO Framework was
applied fully at only one company
in one industry in the UAE, the research
results cannot simply be transferred
to other UAE companies in other industries.
More research is needed in different
contexts to be able to state that
de Waal's HPO Framework is generally
applicable in the UAE context. Another
limitation is that the voice of blue
collar workers at the company was
not explicitly heard as they did not
partake in the study. This could have
created a positive bias, as from previous
HPO research it is known that managers
in general score higher on the HPO
characteristics than employees (de
Waal, 2012). Therefore in a next case
study blue collar workers should explicitly
be included. Finally, longitudinal
research is needed at the case company
(and other UAE companies) to evaluate
if the recommendations which originate
from the HPO Diagnosis in practice
do indeed increase organizational
performance.
References
Abdalla Alfaki, I.M. and Ahmed, A.
(2013), "Technological readiness
in the United Arab Emirates towards
global competitiveness", World
Journal of Entrepreneurship, Management
and Sustainable Development, Vol.
9 No. 1, pp. 4 - 13.
Abdulla Badri, M., Selim, H., Alshare,
K., Grandon, E.E., Younis, H. and
Abdulla, M. (2006), "The Baldrige
Education Criteria for Performance
Excellence Framework: Empirical test
and validation", International
Journal of Quality & Reliability
Management, Vol. 23 No. 9, pp. 1118
- 1157.
Al-Ansaari, Y., Bederr, H. and Chen,
C. (2015), "Strategic orientation
and business performance, An empirical
study in the UAE context", Management
Decision, Vol. 53 No. 10, pp. 2287-2302.
Al-Dhaafri, H.S., Al-Swidi, A.K. and
Yusoff, R.Z.B. (2016), "The mediating
role of total quality management between
the entrepreneurial orientation and
the organizational performance",
TQM Journal, Vol. 28 No. 1, pp. 89-111.
Al Gergawi, M.A. 2009, "Transformation
of the UAE government". In: Gupte,
P. and Aleghfeli, F.H., Global Emirates,
an Anthology of Tolerance and Enterprise,
Motivate Publishing, Dubai.
Behery, M. (2011), "High involvement
work practices that really count:
perspectives from the UAE", International
Journal of Commerce and Management,
Vol. 21 No. 1, pp. 21 - 45.
Bufe, B. and Murphy, L. (2004), "How
to Keep Them Once You've Got Them",
Journal of Accountancy, Vol. 198 No.
6, pp. 57-61.
Carmeli, A., Tishler, A. and Edmondson,
A.C. (2012), "CEO relational
leadership and strategic decision
quality in top management teams: The
role of team trust and learning from
failure", Strategic Organization,
Vol. 10 No. 1, pp. 31-54.
Carter, C.C. (1994), "Using Quality
Principles to Develop Executives for
Competitive Advantage", Employment
Relations Today, Vol. 21 No. 2 173-184.
Dawes, J. (1999), "The relationship
between subjective and objective company
performance measures in market orientation
research: further empirical evidence",
Marketing Bulletin, Vol. 10, pp. 65-76.
Déniz-Déniz, M. de la
Cruz and Saá-Pérez,
P. De. (2003), "A Resource-based
View of Corporate Responsiveness toward
Employees", Organization Studies,
Vol. 24 No. 2, pp. 299-319.
Detert, J.R., Burris, E.R. and Harrison,
D.A. (2010), "Debunking four
myths about employee silence",
Harvard Business Review, Vol. 88 No.
6, pp. 26-26.
de Waal, A.A. de (2006, rev. 2010),
The Characteristics of a High Performance
Organization, Social Science Research
Network, http://ssrn.com/abstract=931873,
accessed October 1, 2014.
de Waal, A.A. (2012), What makes a
high performance organization, five
validated factors of competitive advantage
that apply worldwide, Global Professional
Publishing, Enfield.
de Waal, A.A. and Frijns, M. (2014),
"Applicability of the HPO Framework
in a subsidiary of a multinational:
the case of Hoyer Global Transport",
International Journal of Management
Cases, Vol. 16 No. 1, pp. 50-67.
de Waal, A.A., Frijns, M. and Mroueh,
M. (2014), "Achieving High Performance
in the United Arab Emirates: the Case
of biz-group", Global Business
& Organizational Excellence, Vol.
33 No. 5, pp. 29-40.
Elbanna, S. (2012), "Slack, Planning
and Organizational Performance: Evidence
from the Arab Middle East", European
Management Review, Vol. 9 No. 2, pp.
99-115.
Elbanna, S. and Gherib, J. (2012),
"Miller's environmental uncertainty
scale: an extension to the Arab world",
International Journal of Commerce
& Management, Vol. 2 No. 1, pp.
7-25.
Fadol, Y., Barhem, B. and Elbanna,
S. (2015), "The mediating role
of the extensiveness of strategic
planning on the relationship between
slack resources and organizational
performance", Management Decision,
Vol. 53 No. 5, pp. 1023 - 1044.
Ferguson, A.J., Ormiston, M.E. and
Moon, H. (2010), "From approach
to inhibition: the influence of power
on responses to poor performers",
Journal of Applied Psychology, Vol.
95 No. 2, pp. 300-320.
Furnham, A. and Taylor, J. (2011),
Bad Apples. Identify, prevent &
manage negative behavior at work,
Palgrave MacMillan, Basingstoke.
Gobillot, E. (2007), The connected
leader, creating agile organizations
for people, performance and profit,
Kogan Page, London.
Hair, J. F., Anderson, R.E., Tatham,
R.L. and Black, W.C. (1998), Multivariate
Data Analysis, Prentice-Hall, New
Jersey.
Hansen, M.T. (2009), Collaboration,
how leaders avoid the traps, create
unity, and reap big results, Harvard
Business Press, Boston.
Hendricks, K. and Louw-Potgieter,
J. (2012), "A theory evaluation
of an induction programme, South African
Journal of Human Resource Management,
Vol. 10 No. 3, pp. 1-9.
Heap, J. and Bolton, M. (2004), "Using
perceptions of performance to drive
business improvement". In: Neely,
A., Kennerly, M. and Waters, A. (Eds.),
Performance measurement and management:
public and private, Centre for Business
Performance, Cranfield University,
Cranfield, pp. 1085-1090.
Higgs, M. (2006), "What Makes
for Top Team Success? A Study to Identify
Factors Associated with Successful
Performance of Senior Management Teams",
Irish Journal of Management, Vol.
27 No. 2, pp. 161-188.
Holtbrügge, D. (2013), "Indigenous
Management Research", Management
International Review, Vol. 53 No.
1, pp. 1-11.
Jing, F.F. and Avery, G.C. (2008),
"Missing links in understanding
the relationship between leadership
and organizational performance",
International Business & Economics
Research Journal, Vol. 7 No. 5, pp.
67-78.
Keller Johnson, L. (2006), "Silo
busting from the top", Harvard
Management Update, Vol. 11 No. 7,
pp. 3-5.
Kouzes, J.M. and Posner, B.Z. (2010),
The truth about leadership, the no-fads,
heart-of-the-matter facts you need
to know, Jossey-Bass, San Francisco.
Mansour, A. and Jakka, A. (2013),
"Is Total Quality Management
Feasible in a Developing Context?
The Employees' Perspective in the
United Arab Emirates Public Sector",
International Journal of Public Administration,
Vol. 36 Issue 2, pp.98-111.
Matear, S., Gray, B.J. and Garrett,
T. (2004), "Market orientation,
brand investment, new service development,
market position and performance for
service organisations", International
Journal of Service Industry Management,
Vol. 15 No. 3, pp. 284-301.
Matic, J.L. (2008), "Cultural
differences in employee work values
and their implications for management",
Management, Vol. 13 No. 2, pp. 93-104.
McLaurin, J.R. and Mitias, P. 2008,
"Transformational strategy in
the city of gold: pursuit of the vision",
Allied Academies International Conference:
Proceedings of the Academy of Strategic
Management (ASM), Vol. 7 Issue 2,
pp.20-24.
McNeill, J. (2012), "Onboarding
and induction", Keeping Good
Companies, Vol. 64 No. 11, pp. 687-689.
Mittal, R. and Elias, S.M. (2016),
"Social power and leadership
in cross-cultural context", Journal
of Management Development, Vol. 35
No. 1, pp. 58-74.
Palrecha, R. (2009), "Leadership
- universal or culturally-contingent
- a multi-theory/multi-method test
in China", Academy of Management
Proceedings, pp. 1-6.
Pettaway, L., Waller, L. and Waller,
S. (2015), "Surveying organizational
effectiveness: a case study from the
United Arab Emirates", Journal
of Organizational Culture, Communications
& Conflict, Vol. 19 No. 3, pp.
45-54.
Rashid Al, M. Bin 2012, My Vision,
Challenges in the Race for Excellence,
Motivate Publishing, Dubai.
Rees-Caldwell, K. and Pinnington,
A.H. (2013), "National culture
differences in project management:
comparing British and Arab project
managers' perceptions of different
planning areas", International
Journal of Project Management, Vol.
31 No. 2, pp. 212-227.
Sahni, L. (2011), "The Impact
of Soft Skill Training Induction Programme
on New Entrants", BVIMR Management
Edge, Vol. 4 No. 2, pp. 40-47.
Shah, S.N.A. and Dubey, S. (2013),
"Market Orientation and Organizational
Performance of Financial Institutions
in United Arab Emirates", Journal
of Management & Public Policy,
Vol. 4 No. 2, pp. 17-26.
Siddique, C.M. (2004), "Job analysis:
a strategic human resource management
practice", International Journal
of Human Resource Management, Vol.
15 No. 1, pp. 219-244.
Stone, F. (2004), "Deconstructing
silos and supporting collaboration",
Employment Relations Today, Vol. 31
No. 1, pp. 11-18.
Suliman, A. and Al Harethi, B. (2013),
"Perceived work climate and employee
performance in public security organizations
in the UAE", Transforming Government:
People, Process and Policy, Vol. 7
No. 3, pp. 410-424.
Suliman, A. and Kathairi, M.A. (2013),
"Organizational justice, commitment
and performance in developing countries",
The case of the UAE, Employee Relations,
Vol. 35 No. 1, pp. 98-115.
Sy, T. and D'Annunzio, L.S. (2005),
"Challenges and strategies of
matrix organizations: top-level and
mid-level managers' perspectives",
Human Resource Planning, Vol. 28 No.
1, pp. 39-47.
Tett, G. (2015), The silo effect,
why putting everything in its place
isn't such a bright idea, Little Brown,
London.
Wang, J. (2010), "Applying western
organization development in China:
lessons from a case of success",
Journal of European Industrial Training,
Vol. 34 No. 1, pp. 54-69.
|