Emaar Properties' Organizational Structure

Emaar Properties is a real estate development company based in the United Arab Emirates. The Chairman of Emaar Properties is Mohamed Ali Alabbar (Emaar, 2010). Hussain Al Qemzi is the Vice Chairman (Emaar, 2010). Below them are the Board of Directors, consisting of nine people (Management, 2014). The Head of Internal Audit and the Group Chief Executive Officer stem from the Board of Directors, and the Corporate Office under the Group Chief Executive Officer contains three people (Management, 2014).

Below that are seven divisions: Real Estate, International, Investment Holding, Malls Group, Hospitality Group, Finance, and Industries and Investments (Management, 2014). Several of those divisions have as many as nine subdivisions in them, making the hierarchy of management even larger (Management, 2014). However, the size of the company essentially demands a lot of breakdown because it is not possible for one person to run all of those subdivided companies efficiently if he has to focus on all of the day-to-day operations.

It is much better for one person to have ultimate control of the company and others to work under that person, so work can be delegated more easily and the company as a whole can operate more smoothly. However, Emaar Properties must be careful not to get too many steps on their management diagram. The more people are in line from top to bottom, the more opportunity there is a for a problem to occur.

At this point, a person who works in a subdivision would have that leader, the division leader, someone at the corporate office, and someone on the Board of Directors to go through before he or she could ever even get to the Vice Chairman. While it may not be necessary for a "standard" worker to get in touch with the Chairman of the company very often, doing so would be difficult and complex.

That is a significant issue to consider, because it stops the company from being friendly in the sense of having an "open-door" policy for its workers. It may seem to many that there is too much vertical differentiation because a person on the lowest level would have to go through several levels to reach the top. However, Emaar Properties actually has the right amount of vertical differentiation. The Chairman needs separation between himself and the various aspects of his business (Emaar, 2010).

By providing that with the hierarchical nature of the company, things are able to operate much more smoothly and the Chairman himself does not need to spend his valuable time focused on the minutia of everything each subdivision of the company is doing. Only the large and deeply significant decisions come to him, which is as it should be. The horizontal differentiation the company uses is also a good choice for it (Emaar, 2010). The structure is functional instead of product based.

Since the company deals in real estate and investments, this makes complete sense. The company is not based around a product, and instead focuses on the different services it offers and the ways it builds money and assets for the future. The company manages its operations well, even though it has had legal difficulties in the past (Emaar, 2010). The level of integration is high among each of the divisions, so they.