In today’s competitive business world, it has become significant for companies to retain a competitive advantage in the industry to ensure that they are able to sustain their future growth. An effective and positive organisational culture assists companies to maintain a competitive advantage in the industry because it promotes productivity in the workplace (Mohr, Young and Burgess, 2012). Employees are more likely to work at their highest capacity if the corporate culture is favourable to their needs. In this report, ‘the Emirates Group’ is chosen as the company to evaluate the role of organisational culture in the organisation. The Emirates Group was founded in 1985, and it is a Dubai based international aviation holding corporation (Emirates, 2018a). The company offers its services in 61 countries, and its headquarters is situated in Garhoud, Dubai, United Arab Emirates. The company flies to more than 140 destinations, and it has 170 aircraft. This report will focus on understanding how corporate culture in the Emirates Group assists the company in achieving its organisational objectives. This report will propose organisational values that will influence the corporate climate of the Emirates Group. The existing climate of the company will be evaluated along with its organisational values and needs to propose a framework that meets strategic and operational requirements. Various stakeholders of the Emirates Group will be identified in this report to develop strategies which will assist the company in communicating with those stakeholders who belong to different cultural groups.
Two organisational models of organisation culture
An organisational model is referred to a system which assists corporations in outlining how certain activities are conducting in the company in order to achieve the objectives of the corporation. It is a framework which assists companies in defining various commands, responsibilities, expenses and authorities of parties in the company to ensure that they are directed towards achieving common corporate goals (Muls et al., 2015). Following are two organisational models which are used by corporations to achieve their organisational objectives.
Edgar Schein developed this organisational cultural model in 1980 which is focused on making culture more visible in a company as it is a direct and indirect mechanism which affect the effectiveness of the organisation (Schein, 2014). Schein divided the organisational culture model into three levels which include artefacts and symbols, espoused values and basic underlying assumptions. The artefacts mark the surface of the company, and they are visible elements such as process, clothing architecture and logos of the company which are recognisable by both internal and external parties. Espoused values are referred to standards, values and rules of conduct which express objectives, philosophies and strategies of companies. Basic underlying assumptions are core values which are deeply embedded in the culture of a company which are hard to recognise (Shafritz, Ott and Jang, 2015). The artefacts and symbols of the Emirates Group show that it supports diversity among employees in the workplace and offers luxurious experiences to its customers.
Diversity is the key to the success of the Emirates Group because the company provides equal growth opportunities to male and female employees (Emirates, 2017). The espoused values of the company focused on becoming a leading aviation organisation by setting the benchmark in the industry. The mission of the company is committed to safeguarding customers, staff and assets while avoiding unlawful practices and adherence with industry standards and practices. Lastly, the basic underlying values based on which the management of the company takes its decisions include excellence, agility, innovation and reliability. The company rewards its employees who achieve their targets, and various growth opportunities are available for them based on which the Emirates Group has provided a positive organisational culture which focused effectively achieving organisational goals.
Charles Handy has provided an organisational culture which defines and classifies the culture into four classes which include power, role, task and person (Mihaela and Bratianu, 2012). In power culture, the corporation is managed by only a few individuals who have the authority to influence the operations of the company. There are fewer rules and regulations in this culture because individuals who have the power decide what happens in the company. It assists in quick decision making; however, it could result in turning the workplace culture toxic which is negative for employees. Role culture is based on rules which are highly controlled by everyone in the business who know their responsibility in the company. The power or authority is distributed between employees based on their role (position). The decision making is often slow in this culture because it is typically tall with a long chain of common. This culture can be highly bureaucratic, and employees are less likely to take risks in the organisation. Task culture based on forming teams for addressing specific problems and the power in the team shift based on the mix of team members (Davies, Paton and O’Sullivan, 2013).
Team dynamics affect the effectiveness of a team which is necessary to be the right mix of skills, leadership and personalities which promotes creativity and productivity. Person culture considers the individuals in the organisation as a unique and superior (Ojo, 2012). The company only exist for people to work and it is just a collection of individuals who happened to work for the same company. The Emirates Group has adopted the role culture in the company in which the authorities and responsibilities are attached with specific positions. People have delegated authorities which are well defined, and it is based on hierarchical bureaucracy. This culture resulted in increasing the time taken by the management in the decision making which affects the effectiveness of the business. The corporation is required to form different teams which consist of highly skilled and talented employees to perform its functions which will assist it in fostering innovation and reducing the time taken in the decision-making process.
The national culture of the United Arab Emirates (UAE) focused on accepting change in order to promote development in the country. The regulations regarding governance of companies are lenient which assist in driving development in the country. The UAE finds different ways to adopt modern modes of behaviour in corporations without disrupting their traditional values (Al-Khouri, 2012). Hospitality is more effusive in UAE, and people have giving nature. Closeness, while talking and engaging with others, is common in the culture of UAE, and it shows trust between individuals. The UAE is based on strong religious background and culture which is a mix of Islamic culture with other nations including India, Iran and Pakistan. The culture focuses on the wellbeing of employees and providing them growth opportunities. Most corporations give their employees Saturday and Sundays off which is not the case in other major countries where employees sometimes even work on Sundays. The corporations are customer centric which is focused on fulfilling their needs by providing them effective services. The employees also receive equal growth opportunities in the business. Diversity is effectively managed by companies, and they usually offer various facilities to employees to promote diversity such as prayer space, avoid discrimination, respect of difference in cultural factors and others (Randeree and Ghaffar Chaudhry, 2012). A large number of employees are from other countries such as India, Pakistan and Iran, therefore, many corporations provide long holiday breaks to these employees so that they can go back to meet their families. Respecting cultural and religious factors is important in the country and punishment is given to those individuals who disrespect other religions in organisations.
While comparing the national culture of UAE with the Emirates Group’s organisational culture, many similarities and differences can be seen. The company is one of the leading organisations in the UAE, and its management has implemented business policies which encompasses national cultural aspects. For instance, the company promotes diversity in the workplace, and it avoids discrimination between employees based on religious factors. The company hires employees from different cultural and religious backgrounds and provide them equal growth opportunities (Awunor, 2018). The company provides them prayer space in the workplace and punishment is given to employees who did not respect the cultural differences between employees. One of the major differences is that there is no closeness between management and employees. The employees are only allowed to remain in their division, and they did not have the option to directly approach the top level management due to corporate boundaries. The corporation also focuses on driving development by adopting modern ways to conduct operations without disrupting traditional values. The corporation is customer-centric, and it is considered as one of the leading luxury airlines across the globe. The corporation caters to the needs of its customers and ensures that they receive the highest quality services when they select to fly with the Emirates Group (Voight, 2014). A key difference is that the company did not give Saturdays and Sundays off to its customers, and they did not receive long holidays so that they can go to their home country to meet their family members. The corporation has implemented these policies to promote innovation and sustain their development in the industry.
The corporate culture adopted by the Emirates Group is open which is crucial for supporting developments in its processes. The management takes business decisions based on core values, and they also teach these values to employees as well. The corporation offers its services in different nations; therefore, it provides effective training facilities to its employees to help them understand how to deal with customers from different cultures. The company has established a nurtured culture for its employees who receive appropriate treatment irrespective of the difference in cultural, gender or religious background (Lamelas, 2013). The company has its own college in which it offers the training facilities to its employees. The company has adopted a hierarchical model in which the authorities and responsibilities are distributed based on the position of employees. The corporation fosters innovative and creative ideas by encompassing modern values in the workplace to promote development. The company uses technologies to improve its services in order to ensure that it is able to effectively cater to the needs of customers. The corporation mainly focuses on the needs of its customers to ensure that they receive high-quality services.
The corporation also provides career growth opportunities to its employees by allowing them to increase their academic skills by learning new skills and knowledge. Along with training options related to operations of the company, the employees also have the option to get training for other divisions if they wanted to improve themselves by learning new skills and processes (IATA, 2018). The culture of the company has a strong collection of traditional and Islamic values. The management of the company also focuses on helping indigent children through charities. The company has also established Emirates Airline Foundation which is a non-profit charity that aims to improve the quality of life for children across the globe. The core values of the company emphasis on quality rather than quantity. Effective collaboration between differences in cultures and nationalities among employees builds a strong culture in the workplace which makes it more productive and enhances the working of employees. The strong culture enhances the quality of the company’s products and helps in raising the sense of employees in price and self-worth.
The corporate culture of the Emirates Group has incorporated effective training practices for the company which assist the company in achieving its corporate objectives. People are considered as a heart and soul of the Emirates Group based on which the company focuses on implementing effective policies relating to recruiting, selecting and retaining staff members. During the recruitment process, the HR department did not discriminate between candidates based on factors such as gender, caste, race, colour or religion which enable the corporation in hiring talented employees from all across the globe. Effective training facility is given to the employees of the company that assist the management in making them familiar with the corporate values and objectives (Shroff, 2013). Emirates Aviation College is one of the largest training institutes for airline learners. The training also enables new and existing employees in thoroughly understanding the processes in the workplace which result in increasing their productivity. The Emirates Group has implemented a network of learning resource centres in its headquarters which make it possible to provide a learning environment for individuals or groups based training.
The online learning portal of the Emirates Group called “My Learning Zone” aims to provide its employee a one-stop location whether they can access information regarding various training and development programs offered by the company (Faqexplorer, 2018). Due to these policies, it has become easier for the organisation to ensure that it is able to build a strong workforce that is highly productive which assist the company in achieving its objectives. A positive working culture also promotes productivity of employees because they can build strong relationships with their supervisors who assist them in their procedure. Due to strict culture policies, employees from other cultures did not face discrimination, and they feel empowered in the organisation which positively influences their productivity. All these factors are focused on providing high-quality services to customers that resulted in making the Emirates Group one of the leading luxury airline companies globally. The company has created a loyal customer base that prefers luxury while travelling based on which the company is able to achieve its organisational goals.
Evaluation of the existing climate of the Emirates Group
Organisational climate is referred to various situational or environmental determinants which affect the operations of a company. It assists the corporations in evaluating how the operations are managed in the workplace and the attitude and behaviour of workers towards different situations (McMurray and Scott, 2013). The evaluation of organisational climate assists companies in becoming prepared for situations which adversely affect its operations to take appropriate measure to promote safety in the workplace. Corporations focus on implementing a positive organisational climate in order to promote productivity in the workplace and avoid factors which negatively affect the profitability of the enterprise.
The organisational climate of the Emirates Group is flexible because the power is distributed in a hierarchical order in which the roles and responsibilities of parties are well defined. The management of the company focuses on innovations in the workplace which enable the company in adopting modern procedures without disrupting its traditional values. The vision of the company highlights the importance of innovation in the workplace, and its mission shows how it caters to the needs of its customers, employees and other members (Emirates, 2018b). Avoiding discrimination based on gender, caste, religion and colour is a significant win for the company which positively influence its organisational culture. The company is a multicultural enterprise which gives holidays to its employees on different cultural occasions such as Diwali, Christmas, Eid and others. Breaks for prayer times are allowed because the company respects the cultural aspects of its employees. The employees have to freedom to disclose any issues which they face in the workplace that could hinder their productivity.
Due to the freedom of expression, the number of workplace disputes is low in the company. The senior level management encourages middle and low-level managerial personnel to engage with employees to learn about their needs and factors which assist in satisfying their demands. Effective training facilities are a good example of actions which are taken by the management of the company to establish a positive organisational climate. There are some factors which resulted in adversely affecting the organisational culture of the Emirates Group that damage its public image and employee relationship. For instance, the working hours are considerably high in the organisation and many times employees find it difficult to maintain a balance between work and personal life (Cox, 2014). The working hours are long, and work pressure is high as well. Recently, the company fired dozens of its employees who operate in administration and IT department which resulted in creating a negative organisational climate in the Emirates Group.
There are various internal and external issues which resulted in adversely affecting the organisational climate of the Emirates Group and result in creating challenges for the company. In order to address these issues, various actions can be taken by the management of the enterprise in order to improve its organisational culture. The first step which the management should take is to increase motivation between employees (Sharma and Gupta, 2012). Although the company has implemented diversity-related policies in the company, however, most employees are not motivated in the workplace. The top level management is required engage with the employees to motivate them. Currently, there is lack of communicate channels between employees and the top level management, and they are only allowed to communicate with the manager of their respective department. In order to address this issue, the senior level managers should take time to engage with their employees to allow them to share their issues with them which they cannot say otherwise. Physically meeting with employees is not possible because there are over 103,363 employees in the company (AERO, 2018). Therefore, the management should collect their feedback through confidential surveys which will motivate employees. The corporation should also prepare its workers so that they are ready to embrace change.
The visions of the company focus on adopting an innovative approach which means that it is required to continuously change its operations and processes as per the latest development. However, if the employees are not prepared to embrace this change, then it resulted in creating a negative organisational environment in the workplace (Eustace and Martins, 2014). All employees must have a sense of purpose, and the management must empower the employees for better execution of their duties to ensure that they are not discouraged from made recommendations regarding changes in the procedures of organisations. Employees should also have access to the right tools which are necessary for them to effectively collaborate in the workplace. The management should also engage in ethical behaviour to ensure that it promotes ethical principles in the organisational climate which will assist in creating a positive brand image of the company (Kuntz et al., 2013). The corporation should also avoid taking decisions such as the firing of a large number of employees which it is against its mission statement. These decisions create a negative organisational culture which results in creating challenges for the company; therefore, the management should avoid these factors to create a positive organisational climate.
The key organisational value of the Emirates Group is its focus towards innovation and its application in the organisational procedures. Innovative approach assists the company in continuously improving its values while complying with its traditional values. Excellence is another core value of the Emirates Group based on which its management focuses on hiring talented employees from all across the globe and proving them a positive organisational climate which assists them in increasing their productivity (Emirates, 2018b). Another key value of the company is effective leadership which is focused on improving customer and employee relationships and guiding the workforce towards achieving organisational objectives. The training and academic growth opportunities provided by the management of the Emirates Group shows its committed towards their employees.
Based on the core organisational values of the company, a framework is proposed which can assist the company in meeting its strategic and operational needs. This framework focuses on motivating employees through various mediums. The company thrives for innovation, and it can only be achieved if the employees are satisfied and engaged with their job. The management of the company had found guilty of firing dozens of employees when they did not need them. These decisions are wrong, and the management should improve its framework to avoid these mistakes in the future. The proposed framework includes policies regarding training facilities for employees which enable them to shift from one department to another which will assist the company in retaining talented staff members (Schulz, 2013). The management should engage with employees to collect their feedback regarding the issues and challenges which they face in the company which affects their productivity. The framework includes policies to address these challenges which can be avoided by collecting quarterly feedback from employees anonymously and allowing them to approach the top level management if they face any difficulties in the workplace. The company should make changes in its organisational culture to ensure that it reduces the work pressure on employees. High work pressure leads to job dissatisfaction among employees which increases the attrition rate of employees, and they are more likely to become demotivated in the company (Schneider and Ehrhart and Macey, 2013). In order to address this issue, the corporation should establish a flexible working environment in which the employees must receive appropriate time to maintain a balance between their work and personal life. This framework will assist the company in achieving its strategic and operations goals which are to build a strong connection with employees to drive effectiveness in the organisation.
Identifying internal and external stakeholders of the Emirates Group
Stakeholders are referred to parties that are affected by the actions, objective and policies of an organisation. Effective evaluation of the interest of stakeholders is necessary for corporations to ensure that they implement a business approach which is targeted towards achieving the interest of all stakeholders (Jonikas, 2012). There are both internal and external stakeholders of the Emirates Group which are affected by its operations. The internal stakeholders of the company include employees who manage the operations of the company in different departments. The employees who are responsible for managing the aircraft to those who provide services to customers in the aircrafts are considered as the internet stakeholder of the Emirates Group. These employees are affected by the decisions and business strategies which are formed by the management of the company, for instance, the decision taken by the management to fire dozens of employees from the administration and IT department (Kamel, Sharif and Martin, 2017). The board of directors and other managerial personnel are considered as internal stakeholders of the company. These individuals are responsible for managing the operations of the company to ensure that it achieves its corporate goals. They are held responsible for the failure or success of the enterprise.
The external stakeholders of the company include customers who purchase the products and services of the company. Customers are the main source of earning for the company; therefore, the management prioritises their interest above anything else. Attracting more customers is the ultimate goal of the company, and the management forms different strategies to achieve this objective (AERO, 2018). The suppliers that provide materials for products and services of the company are also its external stakeholders that have the ability to influence the prices of the offerings of the enterprise. The government is also the external stakeholder because the Emirates Group is a major corporation in the UAE which contributes to the GDP of the nation and provide employment to its citizens. The shareholders and investors are also external stakeholders of the company because they invest their capital in its operation and they gain profits or suffer a loss based on the success or failure of the corporation. The environment is also an external stakeholder of the company; therefore, the Emirates Group has adopted a sustainability business approach which is focused on reducing its carbon emissions by using environmentally friendly procedures (Emirates, 2018c). The local community and society are also affected by the operations of the Emirates Group based on which they are also considered as the external stakeholder of the company.
Communication strategies enable corporations to collect feedback from their stakeholders and deliver them information regarding their future strategies to ensure that they are able to understand each other needs. Effective communication is a key part of the Emirates Group based on which it has implemented various policies to promote communication effectiveness in the workplace. Employees have the option to communicate with their supervisors regarding any issues which they faced in the organisation (Chattapadhya, 2015). The corporation also hires an internal communications manager who is responsible for building and implementing different communication channels which allow the employees to share their feedback with the management. Effective communication drives productivity in the Emirates Group based on which the corporation is able to sustain its competitive advantage in the industry. The company has also adopted the Integrated Marketing Communication (IMC) approach to prioritising the demands of its customers in marketing (Chattapadhya, 2015). The corporation collects feedback from its employees to improve its existing services which allow it to cater to their needs. It also enables the company in building a strong connection with its customers. The annual reports and meeting conducted by the board and executive members is a way to communicate with the shareholders of the company which allow the organisation to give them information regarding its past performance and future goals.
Although the Emirates Group has adopted effective communication channels to communicate with its stakeholders; however, there is still room for improvement. The first strategy is implementing a Management Information System (MIS) in the company in which the managerial personnel should actively participate in encouraging employees to communicate their feedback with them (Laudon and Laudon, 2016). Employees from different values, customs, language or belief must have direct access to communication channels to the top level management so that they disclose if they face any discrimination in the workplace. The top-level management should conduct quarterly surveys to collect feedback of employees towards the management policies to ensure that they understand their issues, and they are able to share their queries to resolve them within a reasonable time. Communication with shareholders should not be limited to annual meetings of the company. The company should allow them to ask any queries or provide any feedback regarding its operations directly on the website of the company. Along with shareholders, other external stakeholders should also have the option to communicate with the company through its official website. The management should hire translators to understand the people who speak other languages while disclosing their issues (Granek et al., 2013). Similarly, female managers should entertain the issues faced by female employees because there are many issues which female employees cannot disclose to a male supervisor.
The corporation should send a statement to its stakeholders in whom it should mention the actions taken by the organisations to protect the environment and reduce its carbon footprint. This statement should also include information about the actions taken by the board of directors to protect and balance the interest of different stakeholders of the company rather than only shareholders (Colleoni, 2013). Safety is a major issue in the Emirates Group because many employees work in dangerous environments. The company should allow these employees to communicate their problems so that appropriate actions can be taken by the management to ensure the security of these workers. The company should also create employee support groups to help avoid the mental pressure of employees by allowing them to communicate with each other and building strong relationships. This will enable the employees in maintaining a balance between their work and personal life. These are different communication strategies which can be implemented by the management of the Emirates Group in order to ensure that it is able to effectively communicate with its stakeholders. The enterprise should also improve its customer service facilities to ensure that they are able to connect the company in case they face any issues relating to its services (Seok Sohn, Han and Lee, 2012). These strategies also address the issue of difference in language, customs, values and belief of the stakeholders. Based on these strategies, the corporations will be able to build new communication channels with its stakeholders to ensure that are able to directly communicate with the management to resolve their queries.
Conclusion
Based on the above observations, it can be concluded that corporate culture plays a crucial role in influencing the effectiveness of a company to achieve its corporate objectives. The case of the Emirates Group is evaluated in this report while using different organisational models to evaluate the corporate culture of the company. The culture of the company is focused on fostering innovation and creativity to promote employees productivity which assists the company in offering effective services to its customers. The national culture of UAE is compared with the corporate culture of the Emirates Group to find out key differences and similarities. The impact of corporate culture of the Emirates Group on achieving its organisational objectives is discussed to understand how the company can achieve its objectives. The organisational climate of the Emirates Group is evaluated in this report to understand the values and operational needs of the company.
Various recommendations are given for the company which can assist it in improving its corporate climate to improve productivity. The core organisational values of the company are evaluated, and a framework is proposed which can assist the company in meeting its specific strategic and operational needs. The internal and external stakeholders of the Emirates Group are identified in this report to evaluate the effectiveness of the existing communication strategies implemented by the company to communicate with its stakeholders. Various new communication strategies are developed in this report which is focused on addressing the differences between values, customs language and belief of stakeholders. Compliance with these policies assists the Emirates Group in improving productivity in the workplace while motivating its employees and builds a strong relationship with its stakeholders which assist the company in generating a competitive advantage in the industry and sustain its future growth.
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