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Abstract
This study shows that at the present, the U.A.E construction industry is severely lacking in terms of proper employer-employee engagement in that the higher-ups within the company neglected to implement any form of IIP standardization or talent management practices that did not involve members of the upper management team. Employees were considered expendable based on their perception due to the lack of training, empowerment, or even consideration as to whether sufficient advancement opportunities were in place. All of this translates into a lack of sufficient IIP standardization with the U.A.E construction industry which hampers its capacity to create client satisfaction through proper customer service since employees within the various construction companies simply lack sufficient job satisfaction to take the initiative.
This, when combined with the top-down management style utilized regionally which differs greatly from the collaborative approach advocated by IIP severely constrains and limits the capacity of workers to implement sufficient customer service measures due to the stringent methods of management which focus on a limited and overly strict view of work which allows little in the way of independent action by average workers. These factors combined to constrain the U.A.Es construction industry resulting in a limitation of its capacity to satisfy its clients beyond meeting construction deadlines and project specifications.
Introduction
Between the period of 2000 to 2007, the U.A.E experienced a surge in growth brought about through the regions oil wealth as well as through internal initiatives for the development of the region into an economic and tourism powerhouse. Such a goal has been largely successful as evidenced by the considerable infrastructure projects that dot the landscape at the present. However, despite such growth studies such as those by Foreman (2009) question whether it came at the cost of the future of the local construction industry. Foreman (2009) points to the 2008 financial crisis and the resulting stalling or outright abandonment of various construction projects in the region (mainly in Dubai). In this situation, Al-Joburi et al. (2012) explain that the stalling and abandonment of local construction projects was a result of two specific factors, one of which was out of the hands of the local construction industry while another could have been resolved resulting in fewer cases where projects remained half-completed. The first problem was the sudden financial downturn which collapses the financial assets of numerous banks around the world (Wiles 2007, p. 30-31).
This problem could not have been avoided nor resolved quickly given the state of global financial markets at the time. The second aspect of the problem lies in a lack of sufficient international confidence in the local construction industry brought about by a disconnect so to speak between client and contractor. In the Shekaran (2008) study, it was seen that various clients of stalled and delayed projects within Dubai and other parts of the U.A.E were contacted and asked what influenced their decisions. Aside from the obvious financial concerns, they explained that they simply lacked confidence in the various local construction industries. Through the study of Tsai & Mcgill (2011) which delved into consumer confidence in particular companies, it was seen that a lack of confidence was inherently connected to customer satisfaction with a company which in turn was influenced by a customers overall experience while conducting a transaction with them. Taking this into consideration, it can thus be assumed that there is an inherent issue with the customer service segment of the U.A.E construction industry which impacts consumer confidence. It is based on this that this paper will investigate the factors that facilitate good customer experiences, what encourages companies to take the initiative in providing such services and why is it lacking in the case of the U.A.E construction industry.
Background of the study
Rob and Pablo, the co-proprietors of SNOG (a chain of U.K. based yogurt shops), mention that the secret behind their success lies not only in the type of product they sell but rather in the way in which they make each transaction an experience for their customers. What these two entrepreneurs are referring to is the general ambiance and feel that permeates a particular store or shopping area. Studies such as those by Jones (2012) indicate that consumer patronage of particular retail locations is influenced not only by the products that are being sold but the experience they garner from shopping at a particular location.
Chamorro and Furnham (2010) mention that the concept of experience has increasingly being brought to the forefront of business planning for stores, restaurants, and a variety of establishments due to the correlation between experience and repeat patronage. The concept of construction and customer service is normally not synonymous with each other given that daily customer interactions are not an aspect of the construction business as well as the generally adversarial relationship that at times exists between clients and construction companies. However, studies such as those by Grey (2009) explains that the limited level of direct interaction between a construction company and its client necessitates a greater degree of effective customer interaction. Such a task involves better methods of improved communication and collaboration resulting in better customer-client relations.
From the point of view of Koen and Maaike (2011), contractors for construction projects need to become more proactive in terms of providing the services a client wants given the potential for repeat business, word of mouth popularity as well as the development of a long term and satisfying business relationship. Merely receiving a construction contract and implementing it is only half of the story from the perspective of Vithessonthi and Schwaninger (2008). What is necessary is to create a proper experience for the client wherein contractors keep the client up to date regarding the status of the project, whether they would need additional services, as well as enabling them to realize the various nuances that go into the construction process.
By doing so clients are reassured regarding the construction process and will remember such a reassuring experience compared to other instances involving hiring a contractor resulting in a greater likelihood of hiring the contractor where the client felt the best experience. However, it should be noted that there is no magic bullet so to speak when it comes to treating clients. There is no single appropriate method when it comes to properly create a good construction experience and, as such, it is necessary to treat each client differently with excellent communication and collaborative efforts (Lloyd and Mey 2010, pp. 1-12). The reason such aspects have been brought up is due to various reports of a lack of sufficient IIP initiatives in the U.A.E especially in the case of the construction industry. It is based on this that an investigation will be conducted involving the use of IIP within the U.A.E, its impact on organizations, and whether its implementation within the context of the U.A.Es construction industry would result in better customer satisfaction.
What are investors in people?
The main focus of Investors in People (IIP) is the transformation of business performance through the use of the employees within the organization. In essence, IIP is a framework for improving a company/organizations business performance by linking staff development to that organizations business objectives (Bertrand 2012, pp. 4-6). As indicated by Christelis & Georgarakos (2013) four characteristics are in demand within a technology-oriented enterprise, namely: high market responsiveness, fast developments, low cost, and finally high levels of creativity, innovation, and efficiency. What must be understood though is that such characteristics are dependent upon the type of employee teams that are the backbone of the company. This shows the importance of investing in an organizations employees since they ultimately determine the overall performance of a company within a competitive market environment. The processes that are a part of IIP are ultimately a means of strengthening the connections between proper management practices, training company employees, a companys business goals, and the development of that particular organizations performance and business strategies (to a certain degree it also means obtaining a certain degree of recognition for implementing IIP which is a brand that is known nationally within the U.K.).
This is where the concept of talent management enters the picture. Talent management can be described as the process by which a company develops an employees skills throughout their time within the company to take on a variety of job roles, as well as to manage their progress up the corporate ladder through a variety of leadership roles (Flaxington 2013, pp. 16-18). This process also necessitates a reduction in employee churn rates which requires the retention of talent within the company to reduce costs associated with training new employees and ensuring that talented individuals do not go to potential rivals within the same industry. What must be understood is that improving and retaining talent within any company is crucial for the success of a business due to how talented individuals are drivers for high performance and improved operational processes within a company. It is not the quantity but rather the quality of a companys workers that drives success no matter the type of business model or the popularity of a product.
Rationale
The rationale for this study is the necessity of investigating the identified lack of sufficient customer satisfaction in the U.A.E construction industry. Without a sufficient investigation taking place, this industry may likely continue to prolong such an adverse form of business behavior which could negatively impact the impression of foreign investors regarding the viability of investing in construction projects in the U.A.E.
This study aims to
To examine the extent to which IIP standardization has been applied within the U.A.E construction industry as well as what factors influence the application of customer satisfaction through the use of customer service initiatives.
The Objectives of this study
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To analyze the culture of different organizations in the U.A.E and application of IIP standard.
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Importance of IIP standard Globally ( advantages & disadvantages )
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The Impact of IIP standard on creating a culture of excellence
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The direct and indirect impact of IIP standard on customer satisfaction.
Conceptual framework
From a methodological perspective, I have chosen the case study approach coupled with a focus group to better understand the impact of investing in employees to create a culture of excellence for better customer satisfaction. The value of a case study and the importance of a case study to me as a researcher is that it allows the researcher the opportunity to closely scrutinize a very narrow subject. A case study is the study of the particularity and complexity of a single case, coming to understand its activity within important circumstances. (Stake, 1995) I hope to use an epistemological approach to the case study portion of the research. Being able to closely interact with the study participants will allow me to better understand the processes and procedures utilized by local companies. By understanding all options available to local companies in creating better customer service and closely interacting with the various employees and managers of the companies examined, the researcher hopes to make some definitive conclusions as to what processes can be implemented to create better customer satisfaction.
Nature of the study
One major advantage of qualitative research, as opposed to quantitative research, is that the researcher can explore the subject matter contained on an in-depth and personal level. While both types of research can lead to great strides in the understanding of subject matter, qualitative research offers more insight and provides a forum regarding the human story of the subject. This qualitative study is divided into two separate components. The first component consists of interviewing active-duty employees and managers from previously selected companies while the second component involves an analysis of data from peer-reviewed research regarding IIP usage in various companies.
Scope and limitations
The independent variable in this study consists of the academic literature that will be gathered by the researcher for the literature review while the dependent variable will consist of the responses gained from the employees and managers that will be recruited for this study. It is anticipated that through a correlation between the literature on the current state of IIP implementation within the U.A.E and the responses of the managers and employees, the researcher will in effect be able to make a logical connection regarding the current effectiveness of IIP utilization within the U.A.E
Overall, the data collection process is expected to be uneventful; however, some challenges may be present in collecting data involving programs and current practices that are to be utilized in this study. Such issues though can be resolved through access to online academic resources such as EBSCO hub, Academic Search Premier, Master FILE Premier, Newspaper Source Plus, and AP News Monitor Collection. Other databases consulted for this topic include Emerald Insight, Academic OneFile, Expanded Academic ASAP, General OneFile, Global Issues in Context, Newsstand, Opposing Views in Context, popular magazines as well as other such online databases which should have the necessary information. Relevant books were also included in the review. Furthermore, websites such as The Economist.com have several online articles that contain snippets of information that should be able to help steer the study towards acquiring the necessary sources needed to justify asserted arguments. It must be noted that the time constraint for this particular study only allows structured interviews with an unrepresentative number of people, and also a limited amount of flexibility when conducting the interview
The main weakness of this study is in its reliance on interview results as the primary source of data to determine the general opinion of employees and managers. There is always the possibility that the responses could be false or that the person in question does not know anything at all about what the researcher is talking about. While this can be resolved by backing up the data with relevant literature, it still presents itself as a problem that cannot be easily remedied.
Hypothesis
Lack of sufficient IIP standards in the form of training, talent management, job satisfaction, career advancement, and proper managerial practices has led to insufficient standards of customer service in the U.A.Es construction industry which created customer dissatisfaction due to low levels of communication and collaboration between client and contractor.
Structure of the dissertation
The dissertation will consist of the following parts:
Chapter 1 will contain the introduction, background of the study, the study limitations as well as its aims, objectives, and methodology that will be utilized in the study as well as how data will be collected.
Chapter 2 will consist of a literature review.
Chapter 3 will contain the results of the study and will discuss the implications of the results.
Chapter 3 will consist of the conclusion and recommendation section of the paper.
Research methodology
This section aims to provide information on how the study will be conducted and the rationale behind employing the discussed methodologies and techniques towards augmenting the studys validity. In addition to describing the research design, the theoretical framework, and the population and sample size that will be used in this study, this section will also elaborate on instrumentation and data collection techniques, validity and reliability, data analysis, and pertinent ethical issues that may emerge in the course of undertaking this study.
Research framework
The research will correlate the views of employees and managers with their current experiences in their respective companies to properly determine whether the current methods used in their offices are effective in terms of creating great customer service practices and improves the capacity of employees to work. Thus, the following questions will guide the study to examine the identified issues:
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What is going on?
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What is the main problem within the industry for those involved?
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What is currently being done to resolve this issue?
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Are there possible alternatives to the current solution?
The researcher will utilize grounded theory during the data analysis stage of the study, the research will seek to determine the current effectiveness of the IIP process, whether significant problems exist, what local companies are doing to address such issues and, if possible, develop alternatives to current methods have been considered. The researcher will design the research questions in such a way that they delve into the opinions of the employees and managers to better understand what factors influence their views on IIP standards.
The needed information will be extracted through a carefully designed set of questions whose aim is to determine how a particular persons experience with IIP standards affects the way they handle customers and whether, in their opinion, significant improvements need to be implemented or not. It is assumed by the researcher that there can be an effective correlation between the current problems of companies in the U.A.E in their customer relationship processes and the use/non-use of IIP standards. Through the use of this particular approach in accomplishing the study, the researcher will be able to adequately examine the processes utilized within the companies that will be examined related to encouraging better customer relations and whether such processes are effective based on the data collected. It is expected that by following the indicated framework of approach during the examination process of the paper, the researcher will be able to succinctly address the research objectives of the study.
Role of the researcher
The role of the researcher in this particular study is primarily that of a recruiter and aggregator of data. This takes the form of the researcher being the primary point of contact when it comes to talking with various employees, managers, etc. to obtain the necessary amount of subject data from the various individuals within the areas where recruitment and direct face-to-face interviews will occur. Though it can be expected that there will be some problems involving the language barriers and subsequent translation of what the research subject meant when describing particular events and situations (i.e. when it comes to translating Arabic to English), it is expected that through communication and collaboration with local employees and managers that some relevant means of effective data recording can be accomplished.
It must also be noted that before the start of the data collection process via interviews the researcher will also need to play the role of a teacher so to speak to properly coach the person being interviewed regarding the purpose of the study and the various terminologies that will be utilized. This particular aspect of the data collection process is necessary due to the potential that the collected data may not properly conform to the appropriate levels expected of a master level thesis. As such, ensuring that the research subjects are properly informed, reduces the instances where problems may arise related to collected data that has very little relevant information that can be utilized within the study.
Research design
The present study will utilize a primarily qualitative research design to explore the impact of IIP standards and customer relation strategies in addressing the issue of improved business operations in the U.A.E. This methodological approach will objectively answer the key research questions. Sekaran (2006) observed most qualitative studies are either descriptive or experimental. The study will utilize a descriptive correlational approach because participants will be measured once. Furthermore, it is imperative to note that the study will employ a questionnaire/focus group technique to collect participant data from the aforementioned areas indicated in the previous paragraph.
According to Sekaran, a questionnaire/ focus group technique is used when the researcher is principally interested in descriptive, explanatory, or exploratory appraisal, as is the case in this study. The justification for choosing a questionnaire/ focus group approach for this particular study is grounded on the fact that participants will have the ability to respond to the data collection tool by way of self-report, thus, this project will utilize a self-administered questionnaire schedule for purposes of data collection. An analysis of related literature will be used to compare the study findings with other research on the impact of IIP strategies within particular businesses. Such analysis, according to Sekaran (2006), is important in identifying the actual constructs that determine efficient analysis because it goes beyond mere description of variables in a situation to an understanding of the relationships among factors of interest (p. 119).
Instrumentation
As mentioned earlier, aside from academic data, this study will utilize a set of questionnaires to examine the perspective of employees and managers within the U.A.E regarding the impact of IIP strategies on their daily interaction with customers. This can consist of a variety of ways ranging from the overall effectiveness of the IIP strategy in detecting and resolving problems in customer relations, to their response time and their rapport with consumers. It is based on this that the research questionnaire will be geared towards members of urban populations and will focus on issues that primarily impact employees and managers who live within the various districts in and around the U.A.E. Another factor that should be taken into consideration is the necessity to choose people who are more aware of IIP standards, proper customer care, and who take a more active part in this process. This can consist of managers of the local companies who will be a part of this study. Cluster sampling will be particularly helpful for this study. This approach will enable the researcher to find the respondents quickly and above all safely.
Data gathering process
the data gathering procedure for the interview will be held over 3 weeks spanning the various districts and companies in and around the U.A.E. In each district, the researcher will spend approximately 3 to 4 days to gather the necessary research data. For the first day, the researcher will orient the necessary manager within the company regarding the purpose of the study and the process of data collection while the next two to three days will be spent arriving at the various organizations that were contacted beforehand to begin the data gather process. The process will be divided into two distinct types of interviews with one focusing on gaining the perspective of employees referring to how their activities impact customer care while the second type of interview will focus on the societal aspect of the activities of employees and how it affected people on an individual basis (i.e. the perception of employees regarding implementing new strategies of customer care). This takes the form of inquiries regarding the ease of talking to customers and managers, whether people have found such strategies have been effective, whether they have been positively or negatively affected etc.
Research subjects
The research subjects for this particular study will consist of individuals recruited from various financial business districts. The individuals who will be utilized in the study must fulfill the following requirements to be considered viable enough to be included:
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Must have a high degree of literacy to understand the concepts that the questionnaire and interview entail.
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Must have a general awareness regarding the concept of IIP standards and proper customer care
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Should be an urban resident of the U.A.E
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Should fulfill either one of the following requirements: an academic, a manager, or an employee of a company.
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The research subjects should also fall under the age demographic of 23 to 55 years of age to ensure that they have developed sufficient awareness and experience regarding the impact of proper customer care and interaction
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Lastly, the research subjects that are included in this examination should not be migrant workers. This ensures that all responses are based entirely on residents which ensures that the responses given are only applicable to the case being examined.
While it may be true that the level of research subject discrimination implemented by the researcher is indicative of a certain degree of undue manipulation of the study results, what must be understood is that due to the low-level literacy and a system of education that is far from ideal, this has, as a result, created a population set that has very little knowledge or even awareness regarding IIP standards, customer care initiatives and a variety of similar topics which would be relevant to the study. Since the researcher intends to analyze the impact of IIP standards and customer care, it would of course be necessary for the research subjects involved to have a certain degree of knowledge regarding this to produce a relevant contribution to the research material. Thus, the level of research subject discrimination is justified in this particular case.
Population
While the recruitment method and type of participants that will be utilized has already been explained, this section will detail the population set from which they will be obtained. On average the population of the U.A.E that is to be a part of this study can be considered as being sufficiently well educated and have access to monetary resources (i.e. the locals). On the other hand, other participants of this study will consist of the minorities who have little in the way of sufficient monetary resources and are not quite as educated as compared to their local counterparts. This is in part due to the minimal trickle-down effect wherein a large percentage (60 to 70 percent) of the regions wealth is isolated to a select few groups within their respective societies. Not only that, public utilities expenditures as well as budget allocations for educational programs are quite low. These combined factors result in the creation of a minority population set that is more likely to commit crime due to a lack of opportunities.
What this means for the research process is that it entails more selective recruitment of individuals that are more in tune with the various aspects related to the concept of IIP standards and customer satisfaction. This in effect justifies the criteria outlined by the researcher regarding research subject selection since the responses must come from individuals that are directly involved and experience the effects of IIP standards and proper customer care.
Study Concerns
This methodology exposes the participants to an assortment of risks that need to be taken into consideration during the research process. The main risk the participants will encounter is if any of their answers that criticize or indicate dissatisfaction with their companys activity leaks. This may have consequences on the attitude and opinion of company officials towards them and can result in victimization. To eliminate this risk, the responses will be kept in an anonymous location. This way, the only way to access the information will be through a procedure that involves the researcher. The project thus observes research ethics in sampling as well as during the data collection process.
Deciding on the questions to be used in the interviews
The questions for the interviews were based on an evaluation of the research questions and the data and arguments presented in the literature review section. The researcher aimed to develop the questions in such a way that they build upon the material utilized in the literature review. Thus, the questions place a heavy emphasis on confirming the data in the literature review; revealing the current state of IIP standards, customer service, and other contributing factors.
Interview questions
As explained earlier, the methodology that will be utilized within this particular study will be comprised of an evaluation of questionnaire results given to a variety of employees, managers, etc. within the U.A.E to determine the various nuances they experience days when it comes to IIP standards and customer service.
The questions were created based on an assessment of the research question, the data that the researcher would need, and how pertinent they would be in terms of the participants being able to answer them. Also, the research questions will be divided into different sets based on the type of respondent that the researcher was able to get in contact with.
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What methods of talent management/employee training/employee empowerment do you currently employ within your company?
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How have you addressed the issue of customer satisfaction in your particular industry?
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How have you addressed the issue of developing employee motivation within the workplace?
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Has your company implemented training programs for employees that coincide with its current goals and aspirations within its market?
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How about continuous development programs, has the company implemented programs which create long term careers for its employees?
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How has your company addressed the issue of employee churn rates (i.e. the number of people leaving the company compared to the amount entering) within the company?
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In your opinion what specific management practices are needed to ensure proper methods of talent management?
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Does organizational ethics factor heavily into talent management within your company?
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What is your opinion on the importance of developing local talent with the company? Do you believe that developing talent leads to better job satisfaction resulting in improved performance?
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In your opinion, what are the current limitations of your company in terms of creating happy workers?
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Are you aware of IIP? (Investors in People)
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Does your company focus on customer service such as communicating and collaborating with clients on regular basis to reassure t
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