CASE APPLICATION #2 Volunteers Work T hey're individuals you might never have thought of as being part of an organization's structure, but for many organizations, volunteers provide a much-needed source of labor. Maybe you've volunteered at a Habitat for Humanity build, a homeless shelter, or some non profit organi- zation. However, what if the volunteer assignment was at a for- profit business and the job description read like this: "Spend a few hours a day, at your computer, supplying answers online to customer questions about technical matters like how to set up an Internet home network or how to program a new high- definition television," all for no pay. Many large corporations, start-up companies, and venture capitalists are betting that this "emerging corps of Web- savvy helpers will transform the field of customer service." A major part of the re- shuffle at Tiger aimed to in- corporate new appointments at the senior management level, The group needed a new management team to keep pace with the increasing number of projects and the development of the business as a whole. The new management group of 50 pro- fessionals would be responsible for Tiger's projects across the Emirates of Dubai and Sharjah. The new Facilities Management Division was split into two locations; the first was established in the Al-Taawun Towers in Sharjah. Its primary role was to service more than 1,200 rental housing units. The second headquarters was based at the Jumeirah Lakes project in Dubai. The restructuring exercise needs to be seen in the light of similar initiatives taken by competitors in the marketplace, against the backdrop of overcapacity. In 2008, sales of new prop- erties peaked and then began to tail off, prompting swift action from many property companies to streamline their operations in order to maintain profitability. Organizations are using "volunteers" to do specialized work tasks. in order to strengthen the core team. Throughout all the sub- sidiaries, new managers were appointed to undertake the key tasks of supervising and executing the group's current and forthcoming projects, as well as establishing strategic plans for the future. Notably, the group's existing management team was moved into a new department, known as the Facilities Services Department, and given the responsibility of overseeing the group's projects. One of the major beneficiaries of the restruc- turing program was Mohammed Taha. He was formerly the managing director of Tiger Properties and became the CEO of the business. Taha has 14 years of experience in the real estate and construction market. The alternative for many businesses in the market was mergers. By late 2009, a number of mergers had been announced; all aimed to produce leaner and more efficient businesses, while not necessarily reducing the capacity of the industry to step up construction of properties as soon as the market improved. Merger plans were announced for Emaar and Dubai Holding and for Barwa and Qatar Real Estate Investment companies. For many of the businesses concerned, restructuring may have been too little too late. But some of those companies, that did restructure either internally or as a result of mergers, hope to have achieved a competitive edge internationally, a better regional potential, and easier access to funds than other competitors in the global market. 5 200 Part 3 Organizing Discussion Questions 6-26 "Organizational restructuring should be carefully planned and measured and not a panic response to changing needs." Do you agree or disagree with this statement? Discuss. 6-27 Why did the Tiger Group need a new management team? 6-28 In what respects was the restructuring a reaction to the activi- ties of competitors? 6-29 In this case mergers were a factor in 2009. Do mergers nearly always mean significant restructuring and, if so, why?