1 Dubai/ Prince Mohammad University Principles of Management



1 Dubai/ Prince Mohammad University Principles of Management
Prince Mohammad University
Principles of Management
BUSI 2311: Principles of Management – 202
Group Assignment-Planning of Dubai
Reem Al-Otaibi - 201100196
Fotoon Al-Turki - 201002578
Zainab Al-Hashim - 201001479
Noura Al-Moajil - 201102025
Amjad Al-Sulaiman – 201000462
Instructor Name: Mr. Wael Zaraket
Semester: Fall 2012
December 20, 2012
Mintzberg theory:
Mintzberg (1993) claimed that planning is a formal set of procedures aimed to come
up with articulated outcome. Mintzberg tried to introduce what planning should be – that
planning should be differentiated from other procedures with clear emphasis on
formalization to which planning is supposed to apply.
Henry Mintzberg claims that stress on formal planning gets into the very core of
planning. He minced that the outcome of planning should be the plans themselves that
have specific portions for strategies, sub strategies, programs, budgets, and objectives
which should be carefully labeled (D, 2012).
Everything around us is developing so instantly due to creative planning. It feels like
everything around us is changing in a blink of an eye. Nowadays, you see buildings being
built everywhere and anywhere. Any successful organization whether a grocery store or a
big city won’t evolve and improve its self without planning. Planning is the process of
setting goals and developing ways to reach those goals, and plan to put together and
organize activities. It is the first and primary function of the four functions of
management along with organizing, leading and controlling. Planning leads to creativity
and innovation and it is essential to progress. Also, planning helps make things more
certain instead of making decisions spontaneously and end up worrying whether it’ll
work or not, planning will make sure we don’t waste our time doing things that will not
benefit us in any way, it gives us directions and makes it easier for us to choose a
decision based on the benefits it will provide for us. It is impossible for any organization
to grow bigger and more successful without smart planning first. A major example for
how smart planning can change everything is the city of Dubai. Dubai is a city in the
United Arab Emirates and it is known worldwide for being an amazing city for tourism,
businesses, fashion and entertainment. And they accomplished their now internationally
known name with planning first. This report will provide information about past planning
of Dubai ,economic crisis that occurred in Dubai and future planning of Dubai.
Literature Review:
Sanjay, R. (2007) “The Four Functions of Management: Foundation for All
Management Concepts”
In this article, the writer Sanjay Rane talked about the four functions of management,
starting with planning saying that is the core area of all the four management functions.
He stated that planning is highly required to see where the company is now, and where
the company desires to be. He says: “during planning, management analyzes internal and
external factors that do and may affect the company, as well as the objectives and goals.
From there they determine the company's strengths, weaknesses, opportunities and
threats. In order for management to do this effectively, it has to be realistic and
Dave, T. (2009) “How the Four Functions of Management Lead to Business Success”
In this article, the writer Dave Thomson talked about the four functions of management
starting with planning. Saying that planning is the first logical step in the four functions
of management that are organizing, leading and controlling. He specifies planning by
saying that nothing ever gets done without it and so planning forms the guiding star for
any business. Also, he says: “ planning leads to business success because it allows
entrepreneurs and organizations to look back and see whether the plan is working or not.
A plan is like the blueprint for a dream house.”
Guarav, A. (2010) “Planning First Primary Important Function of Management”
In this article, the writer Guarav Akrani talked in detail about planning. First she
described planning in her own words by saying: “A plan is a determined course of action
for achieving a specific objective.” Then she stated the definitions of planning according
to Koontz and O’Donnell, George R. Terry and Philip Kotler. Then she talked about the
need of planning for the survival and growing of a business, and that planning is needed
to overcome any difficulties and that it is needed for good management, and finally to
achieve all the goals that any organization sets.
Biography of His Highness Sheikh Mohammed bin Rashid Al Maktoum. (n.d.).
Retrieved from sheikh Mohammed website:
This article talks about the vision of Sheikh Mohammed bin Rashid of Dubai. And the
most important achievements and developments that have occurred in his custody. It has
mentions how sheikh Mohammed has developed his country through the years, how
being part of the British colony in GCC has affected their country and economy, and how
the independence of UAE has empowered the country.
Honorary, S. H. (Ed.). (n.d.). Dubai debt crisis .. Economic causes and effects.
Retrieved March 11,2010, from alukah website:
This article is about Dubai debt crisis and the economic causes and effects of it. Which
has led to bankruptcy of some banks, its influence on some of the projects in Dubai. And
what are the most important lessons learned from it. This article talks about the different
economic crises that have occurred within the last few years; starting with the American
economic crises and how it has affected the rest of the world, including Dubai, causing its
debt crisis.
(n.d) (2012, 10, 8). Dubai strategic plan . Retrieved from
This article is about strategic plan of Dubai in 2015. The article provide information
about clear aims that plan focuses on making Dubai a more desirable place to live and do
business. Infrastructure improvement, health and safety, education, and judicial
excellence are the factors that will most benefit business owners. The plan also addresses
concerns that might otherwise hinder future business growth, such as the mounting
demand for energy and water.
Past planning of Dubai:
Dubai is one of the emirates of the United Arab Emirates, and the Emirate of Dubai is
the second largest emirate in the Union after the Emirate of Abu Dhabi. With an area of
5% of the area of the UAE. Dubai economic income does not depend on oil revenues
primarily Unlike the rest of the Arab Gulf states, where Dubai's economy depends on
trade, real estate, financial services and also on tourism.
Retrieved from
Dubai was only known as the village of pearl divers who spend their lives at sea and slept
on the creek to ward off the winds of the storm and the waves of the sea winds. City was
born out of the kiln storms and seas is examined and presence like great cities. If Dubai
have withstand in the face of storms and seas. Can it withstand in the face of wave of
rapid modern development?
It was nothing but desert. They did not have malls or towers like now. There was no
subways or bridges. They did not have many areas of trading, they used to focus on
fishing and pearl trade only. During the fifties, Sheikh Rashid had attracted the most
talented members of the community. The circle that was surrounding him directly, which
included bankers, builders, merchants and intellectuals. Although they belonged to
different parts of the world. What he did was using functions of the human resources
management which are, staffing, being sure that capable employees are identified and
selected, training and development by up-to-date knowledge and skills, motivating which
is the most critical function in the human resources management that could be done by
many different ways like, giving awards, he accepted their ideas and discussed it with
them, and then retention in which he wanted to keep employees. And take advantage
from their knowledge.
Dubai have gone through a lot of changes during the reign of many rulers. And which is
highlighted in the reign of Al- Sheikh Mohammed bin Rashid Al-Maktoum. After taking
over as ruler of Dubai in January 4, 1995 Sheikh Mohammed has said ‘I do not know if I
am a good leader or not, but I am a leader, and I have a vision; I look to the future after
twenty or thirty years from now. I learned it from my father, Sheikh Rashid, who was the
real father of Dubai. And I will walk on his path’
Changes in Dubai are dynamically, decisions are issued in favor of the state and its
citizens. Sheikh Mohammed has all functions that could be used to develop a country
which are, Planning, organizing, motivating and controlling. Planning in which they must
have a goal to achieve. Their first goal was ‘The destination of Dubai’ which is to make
Dubai the first destination for people to come in. Organizing involves developing an
organizational structure and allocating human resources to ensure the accomplishment of
objectives. Leading, if managers are effective leaders, their subordinates will be
enthusiastic about exerting effort to attain organizational objectives. Controlling involves
ensuring that performance does not deviate from standards. (1) establishing performance
standards, (2) comparing actual performance against standards, and (3) taking corrective
action when necessary. In which he have used them all to achieve his goal.
First they have established Dubai Shopping Festival. It is an annual festival aims to bring
all aspects of the emirates economy together as part of a promotional campaign stretches
around the world.
The plan "The destination of Dubai" was still going on. To attract attention they wanted
to do something new. About 100 meters from the beach. This island was the headquarter
of one of the most daring and aggressive projects of Sheikh Mohammed, which is called
as Burj Al Arab Hotel, it is shorter than the Empire State Building in New York in only
sixty meters.
In early 2001, Sheikh Mohammed announced the Plan of one of the most strange project
at all, namely "Palm Island" it was a giant resort runs on two islands were taking the form
of palm and each divided into 17 branches and alarming giant, and surrounded by a
barrier reef Hilali shape.
Perhaps the most daring projects in Dubai plans is the project "Dubai e Government".
Sheikh Mohammed said: We [target] move in several directions at the same time, and by
that I mean raise awareness of the culture of information, and improve education and
rethink the methods and tools of study, and to start infrastructure projects of the digital
economy new, and the launch of e-government initiative ... ". As he announced the details
of his vision, Sheikh Mohammed had set a deadline for the completion of this initiative
which is only 365 days. By any measure; This bold movement were hoping to
consolidate the emirate's name in the technology industry, which is the fastest growing
industries in the world.
This project has attract many companies. By September of 2000, was more than a
hundred of information technology companies have been awarded licenses to operate in
the Dubai Internet City, including industry giants: Microsoft, Oracle, and Compaq. There
were 350 other companies awaiting licensing. The total volume of investments planned
by companies licensed to spend approximately $ 700 million.
In an attempt of his to encourage innovation, announced Sheikh Mohammed for a variety
of prizes either in Dubai or the United Arab Emirates; including: Arab Journalism Award,
and the Dubai Government Excellence Award, the Dubai of the Koran, and awards young
entrepreneurs. These awards have encouraged a competitive atmosphere in the public and
private sectors for the pursuit of excellence.
Retrieved from
They had a success in their projects. Through the six organizational design elements
which are, work specialization, tasks were divided in a separate jobs. Each step is
completed by different person. Like, they have divided their work into different parts and
also reduces the work load of their employees by specialization.
Departmentalization, is how jobs are grouped together so work gets done in coordinated
and integrated way whether it was functional, product, geographical, process or customer.
For example, putting different specialization, specialists together in departments under
the direction of a manager.
Chain of command, who do a person report to. An employee cannot do anything without
the permissions of her or his boss.
Span of control, is the number of employees who can be effectively and efficiently
supervised by a manager. As each department has their own supervisor which he or she
will supervise their employees.
Centralization is the degree which decision making is concentrated at upper levels in the
organization. For instance, government, the designs that are made by Al Sheikh
Decentralization organizations in which decision making is pushed down to the managers
that are closest to the action. Like, the internet
And formalization, the degree to which jobs within the organization are standardized and
extent to which employee behavior is guided by rules and procedures. Employees will
spend sufficient time on the job to get the work done. Their vision was completed and
still they are looking forward (Coulter & Robbins, 2009) .
Economic crisis that occurred in Dubai:
U.S.A – the major economic power worldwide , who possess the biggest power
technology has faced a big economic crises in the year 2008 .That crises made a sever
negative affects all over the world. The financial and the information data relationship
that connect the U.S with whole world has made the U.S economical crises to reflect on
the economy of the other parts of the world .As our Arabian Gulf – which is storing a
large amount of oil – is playing a major role in the global economy . our Arabian area as
suffered the relative shock of the U.S crises , on sequence the share holders has fallen
down in the stock exchanges , the foreign companies sold its properties in very low
prices , some of them has come out of market , many of the major investors has
bankrupted , and the real estate market has fallen down and a very painful shortage of
liquidity .Those things has made a strong negative effect on the real estate markets ,
especially on Dubai.
A crises is an un balanced period that leads to the bad changes in the future .
There are two basic factors that featuring the crises so far : The short of curing means and
the difficulty of prospecting – that making the hardness of taking a decision .
A serious threats of expected or un expected to goals , Values and properties belonging
to the individuals , societies and countries which preventing the loyalty of making a
decision. Dubai has achieved a vast economical progress throw an ambitious
management program , it was run as a big company managed by board of directors , has a
high level of investment atmosphere and a high standard of facilities in all aspects and a
big improvement in the real estate section with positive results to the investors goals .
The government of Dubai provided the investors with a chance to have a free owner ship
in the big projects , it made an ideal relationship with the investors , in Dubai also and the
Emirate states in general. Dubai authorities has supported the real estate section to show
up with a special standard of qualifications.
The method of Dubai have overcome bureaucracy which can disable to procedures. It
also inspired the Gulf and the Northern African countries as a Qatar m Kuwait , Egypt
and Morocco .
What causes the crises was the crises of the real estate and the fall down of real estate
prices made the collapsed of the market , this caused a deep financial crises and a price
fall down, also for the oil , Dollar a currency and big loses to the stock exchanges. Since
Dubai was depending upon the trading in the real estate it has lost a lot amounts due to
the lake of liquidity and real estate business has received a heavy hits as the prices was
fallen down with a percentage reached 41%. In the second quarter 2009 .
The rental prices was pushed down and the investments was jammed .
Dubai/ 10
The Dubai crises as named in the financial markets also appeared in the Wool-Street
newspaper – it made investors very panic due the big amount of debits of Dubai
government .
In the background of Dubai crises there was a noticed corruption, un honesty and illegal
utilization of authority .
Retrieved from http://www.alukah.net/Culture/1085/10185/
Dubai strategic plan in 2015:
Strategic planning is an organization’s process of defining its strategy or direction and
making correct decision on allocating its resources to pursue this strategy including it
capital and people. Strategic planning is the foundation of the work of organization
because, without strategy the organization do not know why we are going there( Janet , S.
(n.d.).All strategic planning deals with at least one of the three questions. The three
questions are what do we do, for whom do we do it and how do we excel (Padavich,
2012) . Strategic plans cover a large span of time compare to the operational plan. Also,
strategic plans have an extensive array of organizational activities while operational
plans have constricted and more limited scope. High level manger develops strategic
plan on the other hand, operational strategic plan developed by middle or lower level
manger (Coulter & Robbins, 2009). Dubai is one of the city that has good strategic
planning that aims to improvement of all sectors. over past few decades Dubai has
successfully developed it statues as major city , enhancing the well being of its people
and creating an environment that attract business and individuals, To support ,maintain
and develop this statue the government of Dubai starts to develop its mission that focuses
on achieving comprehensive development and building human resources, promoting
economic growth and government modernization , providing an environment conductive
for growth and prosperity all sectors ,sustaining growth and prosperity and protecting
national’s interest ,public interest and wellbeing. Dubai government adopted set of clear
guiding principle for different sectors that comprise the Dubai strategic plan. The five
sectors are economic growth, social development , land and environment ,security ,
Dubai/ 11
justice and safety and government excellence. first , economic developments, the
economic development plans aims to sustain the level of growth of the emirate’s
economy which has been growing faster than emerging economics of china and India
over the past six years. The future strategic growth of Dubai is based on six key building
blocks which include tourism, trade, transportation and finance. The development of
these building blocks will be strategically supported by seven horizontal growth enablers,
which will be addressed in parallel.These are human capital, productivity, innovation,
cost of living and doing business, quality of life, economic policy and institutional
framework, and laws and regulations. The economic development plan will be integrated
with federal government plans for the development of the UAE as a whole. Social
development, having an effective social infrastructure is the key to reaching higher level
of sustained economic growth. Social development has always been the heart of the
Dubai government’s because it is easy to build finical capital but it is not easy to build
physiology and intellectual. Building road or bridge may take a year or two years but
,building person take lifetime. To achieve social developments, the government
determines some strategic thrust to establish the foundation for meeting future
development need. Dubai strategic plan composed of social development that need to
improve in different areas that include education , health , culture ,social assistance and
work place. In area of education, improve the achievement of students and ensure all
national have access to quality education that will includes improving the education
sector governance structure , upgrade teachers qualification to improve public school
performance, upgrade the curriculum to meet international standard , raise awareness and
improve the education environment and create and support inclusive education for
students with special needs in the public and private sectors. In the area of health the
Dubai strategic plan will ensure that health insurance is improved and international
accreditation for hospital is introduced. Also, ensure the continuous improvement of
health system planning to generate service availability ,accessibility and quality. In terms
of culture, preserve national identity and improve social cohesion by revising the
immigration and regulation in older to ensure and maintain demographic balance,
improve Arabic language proficiency and raise cultural awareness through consistent
appealing and professional culture content. Third sector that Dubai strategic plans aims to
Dubai/ 12
developments is infrastructure , land and environment. There are four subareas areas for
infrastructure ,land and environment that Dubai aims to improve it. The four areas are
urban planning , energy, electricity and water, roads and transportation and environment.
An integrated roads and transportation system will be introduced to facilitate movement
and improve safety. This will reduce of use of private car. The Dubai strategic plan also
show up the effort already being made to improve road safety by enforcing safety audits,
developing and implementing safety standards, influencing driver behavior through
awareness stricter regulations and effective enforcement. Fourth, security, justice and
safety. Under Dubai strategic plan , Dubai plans is to enhance its reputation as one of the
world’s safest place to live. Specifically, Dubai is set seven objectives that will be
targeted. The seven objectives are preservation of security and order, protecting rights
and freedom, crisis and disaster management , clarity of investigation and judgments and
protecting public health. For fifth sectors of Dubai strategic plan which is governmental
excellences, the government will focus on the long term strategic thrust to achieve
desired government performance based on the best practices and experience. The
strategic thrust will do their best to achieve five sectors. The five strategic thrust are
empower and motivate public service employee , increase efficiency, enchasing
organizational structure , improving customer service and strengthen strategic and
forward looking focus((n.d),2012).
The report has covered information about past planning of Dubai, financial disaster
that occurred in Dubai and the strategic planning of Dubai in 2015. This assignments
gives us opportunity to understand how successful company plans to accomplish specific
goals. Planning is preparing a sequences of action steps to achieve specific goals.
Without plans, manger cannot know how to organize people and resources effectively.
They may not even have clear ideas of what they need to organize (Sree, 2008).
However, planning is very important for any organizations no matter that company is
small or big. There are several reasons why planning is necessary for organization. First,
it helps to achieve goals. Every organizations has specific objectives or target. Planning
Dubai/ 13
helps an organization to avoid doing some random activities. Second, it encourages
creativity and innovation. Planning encourages both employees and manger to express
their creativity and innovations. This bring satisfaction to the manger and success to the
company. Third, it gives the right directions. Directions means to give correct
information and accurate directions to the subordinate. Directions cannot be done without
planning. This is because planning tells us what to do, when to do it and how to do it.
Therefore , planning helps to give right directions (Gaurav, 2012) . Indeed, planning
plays a very crucial role in leadership. However, it should be done strategically to make
sure that it serves its right purpose, and that is to make sure that company operations will
run smoothly alongside with the company’s goals, mission and vision. Dubai is a
dynamic city, we can realize how fast it improves economically in the last two years, this
improvement came from a strategic plans that has been followed. Dubai followed
strategic plans to their investments and businesses which made benefits for its economy
as a whole. As Sheikh Khalifa bin Zayed Alnuhayyan once said: "The greatest
achievement and greatest pride is the person in the United Arab Emirates, and his
passionate ambition to build his nation and develop it to become in the list of the world's
most advanced nations."
Dubai/ 14
1. Biography of His Highness Sheikh Mohammed bin Rashid Al Maktoum. (n.d.).
Retrieved from sheikh Mohammed website:
2. Coulter, M., & Robbins, S. (2009). Management. (10 ed.). Prentice Hall.
3. Dave, T. (2009) “How the Four Functions of Management Lead to Business Success”
4. D, P. (2012, 12 20). What is Henry Mintzberg's view of strategic planning . Retrieved
from http://planningskills.com/askdan/11.php
5. Gaurav, A. (2012, 2 19). Importance of planning -why planning is important .
Retrieved from http://kalyan-city.blogspot.com/2012/02/importance-of-planningwhy-planning-is.html
6. Guarav, A. (2010) “Planning First Primary Important Function of Management”
7. Honorary, S. H. (Ed.). (n.d.). Dubai debt crisis .. Economic causes and effects.
Retrieved March 11,2010, from alukah website:
8. Janet , S. (n.d.). Strategic planning. Retrieved from
9. (n.d) (2012, 10, 8). Dubai strategic plan . Retrieved from
10. Padavich, R. (2012, 2 9). Roadmap for developing strategic plan. Retrieved from
http://info.sms.uni.edu/blog/bid/123465/Roadmap-for-Developing-a-Strategic-Plan /
Dubai/ 15
11. Sanjay, R. (2007) “The Four Functions of Management: Foundation for All
Management Concepts”
12.Sree, R. (2008, 12 15). The importance of planning at organization . Retrieved from

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