Business paper
Master of Science in Organizational Excellence
Project:
Land Department Benchmarking System
Submitted By:
Submitted To:
Semester:
Fall 2010
Table of Contents
1Abstract4
2Introduction5
3Company Profile6
3.1The Vision and the Mission of the Land Department7
4Concept of Benchmarking and its Model8
4.1Benchmarking Process Map10
5Benchmarking System Critiria14
6Benchmaring System Needs15
6.1Dubai as a Global Reference16
6.2Bring Excellence in Knowledge16
6.3Measuring Income and Financials16
6.4Rapid Technology Development17
6.5Keep Competitive in Changing Business Environment17
7Benchmaring System Advantages17
7.1Improving Information Measurment18
7.2Effective Arrangement of Organizational Benchmarking Process18
7.3Lowering Cost19
7.4Improving Motivation19
7.5Enhance Day To Day Management Operations19
8Scope & limitation20
9Critical Analysis of Typical Benchmarking Methodology and Types:21
9.1Process benchmarking21
9.2Financial Benchmarking22
9.3Benchmarking From an Investor Perspective22
9.4Performance Benchmarking22
9.5Product benchmarking23
9.6Strategic benchmarking23
9.7Functional Benchmarking24
9.8Best in Class Benchmarking24
9.9Operational Benchmarking24
9.10Analysis25
10Suggestions and Reflection25
10.1Benchmarking in Strategic Department:25
10.2Investment in Training of Employees26
10.3Change Cultural26
11Conclusions26
12References28
13Appendix:30
1 Abstract
The number of Benchmarking Methods implementations has grown dramatically in recent years. However, few UAE federal governments have implemented the Benchmarking Process concepts. The purpose of this paper is to illustrate and analyze the benchmarking processes in the Land Department – Dubai. Moreover, the paper analyzes the information gathered and then creates a report of the strengths and weaknesses of the benchmarking processes at Land Department in Dubai, which will be revealed in this report. The results obtain from the report suggested that the Land Department in Dubai implementing best approach to achieve organizational goals effectively, but some improvements are required in benchmarking process of Land Department which can be easily implemented through process benchmarking. These suggestions include change in culture, benchmarking in strategic department, and investment in employees training because these will allow Land Department to accomplish its strategic goals effectively.
2 Introduction
Land Department established in Dubai in 1960 with the permission of His Highness Sheikh Rashid bin Saeed Al Maktoum, to save the land rights that were previously carried out by councils of the peace. This process has been gone through several stages of the circuit where it was started the establishment of a committee to look into the affairs of land and property, then the Department for the registration and documentation of land and property and to determine real property. The aim of providing a systematic method for registration of land and property and protect the rights of clients and ensure all legal aspects relating to the sale and purchase of land enable them to organize the registration process principally to protect all sides of the equation [ CITATION Lan121 \l 1033 ]. قراءة صوتية للكلماتالقاموس - عرض القاموس المفصل
The Benchmarking System had been developed as per to the needs of Land Department since Land Department did not visit any organization either internally or externally to view benchmarking systems, the viewing process was done only through the internet by using different effective websites [ CITATION The123 \l 1033 ]. The Department developed the system by writing down the clear objectives and it has been viewed by the delegation of the European Foundation for Quality as a creative system.
However, this report illustrates detailed analysis of the benchmarking concept in the Land Department, one of the leading organizations in Dubai. It demonstrates the benchmarking implementation process of Land Department and illustrates the deep investigation of the Benchmarking weakness and strengths in the Land Department. This is accomplished through our conducting primary research such as interviewing Mohamed Al Badwawi, Deputy Director – Planning and Development Department within the Land Department of Dubai and secondary research such as reading benchmarking concepts. These different research methods helped us collecting valuable information that led us to identify challenges faced by Land Department as well as provides the appropriate suggestions for improvement.
3 Company Profile
The Land Department in Dubai was established January 24, 1960 by a Decree signed by one of the late ruler of Dubai Sheikh Rashid bin Saeed Al Maktoum in order to deal with the overseas concerns associated with land and private properties in the Dubai to register these properties in systematic manner and to save the rights of people [ CITATION Lan121 \l 1033 ]. The Government of Land Department in Dubai is the real estate registry, auctioneer, regulator, information provider and property overseer for the Emirates, which is accountable for registering the constructed and unconstructed land, villas, apartments, commercial buildings, residential areas, houses leasing, and mortgages in the Dubai and other freehold areas. In addition to this, the Land Department is officially authorized and responsible for transferring the ownership and maintaining records of legitimate transactions completed in the real estate of Dubai, which is accomplished between buyer and seller, donations, gifts and inheritance [ CITATION Lan121 \l 1033 ].
However, it has been examined that the Land Department in Dubai has been rapidly involve in the transformation of Dubai since it is found that one of the responsibility of Land Department, registering ownership of real estate, is now implementing high tech procedure where the rights are assured through potential contract, trust-based former system and sealed with hand shaking. Due to these efforts, today the real estate registering procedure in Dubai is completely computerized and all transactions are completed electronically. Beside it, the Land Department in Dubai is deeply involved in framing the legislation in order to develop the legal framework related to property rights and to protect the rights of shareholders within Dubai and UAE [ CITATION Lan121 \l 1033 ].
1.1 The Vision and the Mission of the Land Department
i. Vision:
“To become one of the key benchmarks worldwide for real estate regulation and registration” [ CITATION Lan122 \l 1033 ]
ii. Mission
The mission of the Dubai land Department is to develop a real estate environment that validates best practice international standards for the protection of stakeholders’ rights and contributes to the development of society by:
Creating and implementing understandable and clear regulations of real estate
Providing unique, capable and comprehensive real estate services effective for attracting the investors to investment into the sector
Increasing real estate knowledge [ CITATION Lan123 \l 1033 ]
For more details about Land Department Management Values and Hierarchy, please refer to [Appendix 1,2 ].
2 Concept of Benchmarking and its Model
According to Zairi [ CITATION Zai96 \n \t \l 1033 ], the concept of bench marking has been around long time where human being have been implementing this competitive concept for the millennia as evidence as the broad factor of human activities such as trade , war , sports and their social life. The methodology of bench marking is the significant component of total quality management that is the process and customer focus and multi disciplinary teams. This methodology with best in class type culture usually require time, resources, and management commitment to provide effective results leads to continuous enhancements. The incremental enhancement with the adoption of this approach improves the performance standards of the organization by investigating and analyzing innovative practices and different ways of working[ CITATION Zai96 \l 1033 ].
The concept of benchmarking and its development has been normally interlinked with the two parallel contemporary business orientations with competitor analysis of strategic management and innovation within TQM model. However, some authors observed that benchmarking concept is originated from product comparison study and reversed engineering[ CITATION Zai94 \l 1033 ]. It is also observed that bench marking application is not only managing projects efficiently and developing suitable action plans. It requires to be based on brining in deficient knowledge and expertise and finding ways and ways of selling best practices and developing most suitable mechanism for the efficient transfer of best practices and their internationalization[ CITATION Ben052 \t \l 1033 ]. The significant reasons for the adoption of benchmarking best practices are the change, competitiveness, cost, and customers. However according to Kaplan and Norton (1996) , the best in class benchmarking typifies the fragmented approach in order to extend business objectives targeting which lead to the desired breakthrough in the future financial performance of the organizations[ CITATION Nor96 \l 1033 ].
Figure 1: Zairi’s Model of benchmarking [ CITATION Zai96 \t \l 1033 ]
It is observed that benchmarking become one of the famous management tools in the organizations to attain quality and to learn the best practices while several companies to attain competitive advantages use this approach. According to Sabic , the benchmarking method is beyond the tool or technique and worked as the all encompassing concept of change methodology. This systematic way of managing the processes on behalf of the customers by means of developing behavioral modification of employees to improve their internal capabilities based on the internal and external environment of the organization[ CITATION Zai96 \t \l 1033 ].
2.1 Benchmarking Process Map
In general, the benchmarking process provides two methods of documentation. The First process is Indirect Benchmarking Process which is about documentation of Personal Experience such as attending conferences, reading books or articles, watching movies theses contain interesting approaches to develop organizational performance to reach best practices. For instance, when we arrange a meeting with Mohammed Al Badwaiwi, Deputy Director – Planning and Development Department of in the Land Department in Dubai; he has to document this kind of sharing knowledge in the system[ CITATION Gov12 \l 1033 ].
However, the other process is Direct Benchmarking Process, which is about documentation of department experience, is divided into "Reception of delegation process" and "Send delegation". "Reception of delegation process" refers to provide knowledge to other organizations locally or/and international. However, "Send delegation" refer to get knowledge from other organizations locally or/and international. The Benchmarking Process Map demonstrates the three benchmarking process; Direct benchmarking process reception of delegation, Direct Benchmarking process (send delegation and Indirect Benchmarking process)[ CITATION Gov12 \l 1033 ].
1. Direct Benchmarking process (the reception of delegation)
The direct benchmarking process for the reception of delegation is demonstrated below:
Benchmarking process (direct – reception)
Marketing
dept
Administration dept
Benchmarking coordinator
Organization request for benchmarking
Figure 2: Direct Benchmarking Process (Reception of delegation)
2. Direct Benchmarking process (send delegation)
The benchmarking process for the send delegation is demonstrated below:
Benchmarking process (direct – visit)
Marketing
dept
Human resource
dept
Administration dept
General Director
Benchmarking coordinator
Department request for benchmarking
Figure 3: Direct Benchmarking Process (Send delegation)
3. Indirect Benchmarking process
The indirect benchmarking process is illustrated below:
Benchmarking process (indirect)
Benchmarking coordinator
Organization request for benchmarking
Figure 4: Indirect Benchmarking Process
4 Benchmarking System Critiria
The following are the Application request for direct benchmarking process. Employee should select which type of Direct Benchmarking process they want for the reception of delegation or sending delegation either at local or international level. However, it has been examined that the benchmarking system criteria or application should be designed appropriately by including the features like partition between tables, frequent transactions, and asynchronous procedure calls.
Applicant information:
Employee Name :
Employee ID
Department Name
Section Name:
Employee participation Names:
Job Title:
Organization information:
Organization Name: Department Name :
Coordinator Name: Direct number
Mobile number
Email
P.O. Box:
Participation Names: 1. Job Title
2.
3.
4.
Why we select this organization( in case of using
Send Delegation process) :
Benchmarking Information:
Benchmarking purposes
1.
Date
2.
Time
3.
Period
Upload attachments which related to benchmarking process
1.
Benchmarking benefits:
1.
Achieved Goals Percentages:
1.
Notes:
Recommendation & applied Plan :
Employee Name who responsible of the plan
Start plan date
End plan date
5 Benchmaring System Needs
It has been identified that today, the industries are growing more rapidly and becoming globalized by implementing effective strategies. However, benchmarking is one of them, which becomes on the fundamental needs of organizations and industries. According to Camp (1995), organzitaions all around the world applies benchmarking practices to obtain significant benefits from it and to address issues associated with competative business enviornment [ CITATION Cam95 \l 1033 ]. The benefits companies obtain from the benchmarking include identification of realistic and achievable targets, organizations able to identify weaken areas of business and needs to bring improvement, and helps organization in creating favorable atmosphere for continuous business improvement [ CITATION Cam95 \l 1033 \m JGM92]. Therefore, the Land Department of Dubai implements benchmarking in several areas including bring excellence in organizations, human resources, organizational support, financial management, and information technology (IT) [ CITATION Dub09 \l 1033 ]. By considering these, it has been identified that following are the reasons due to which the Land Department has built the benchmarking process based on various needs:
2.2 Dubai as a Global Reference
Dubai plays an important role as global reference in various sectors however it is one of the considerable reasons due to which the Land Department of Dubai needs for benchmarking so that they can perform effectively in every area of the world competitively and effectively [ CITATION Sul09 \l 1033 \m Dub09].
2.3 Bring Excellence in Knowledge
The Land Department of Dubai is seeking for excellence in knowledge in various sectors thus it represent the basic need of benchmarking in Dubai so that the department will be able to bring excellence in knowledge, which provides ultimate advantage to the real estate industry of Dubai and allow department to provide high quality service to the people or customers [ CITATION Sul09 \l 1033 \m Dub09].
2.4 Measuring Income and Financials
As it is clear that the benchmarking practices allow organizations to increase their profitability and minimize business risk by keeping themselves competitive sin business world. Thus, the Land Department of Dubai needs to measures the income from the best practices experience such as import or export with finical payment with the finical so that the implementation of benchmarking will help department in obtaining their goals [ CITATION Sul09 \l 1033 \m Dub09].
2.5 Rapid Technology Development
The Lands Department of Dubai is also focusing on enhancing technology in throughout business sector of Dubai therefore benchmarking is one of best opportunities for them by which they can bring technological development in services as well as they can provide best services to the people, stakeholders and investors [ CITATION Sul09 \l 1033 \m Dub09].
2.6 Keep Competitive in Changing Business Environment
It is obvious that the business environment throughout the world has been changing quickly and providing new ways to the organizations to enhance their productivity and profitability. However, this is one of the situations that force Dubai Land Department to implement effective benchmarking strategies to enjoy competitive advantage within the changing business environment at both international and domestic level [ CITATION Sul09 \l 1033 \m Dub09].
6 Benchmaring System Advantages
The significant factors in effecting the change , ultimatley is the effective decision of leaders for identfying organizational shortcoming and acquiring potential solutions for the issues which assit to make the collabortive planning and decisions efficiently[ CITATION Nat051 \l 1033 ]. However , the major advnatges of benchmarking system are illustrated as follows:
2.7 Improving Information Measurement
The system measures the amount of information that the government of Dubai view, with each other or with foreign governments[ CITATION Ron08 \l 1033 ].
The system measures the amount of information that the other government agencies access in the Government of Dubai and reduce time of market survey[ CITATION Gov12 \l 1033 ].
The benchmarking system measure the size of the return information among the size of the financial costs, which paid[ CITATION Gov12 \l 1033 ].
2.8 Effective Arrangement of Organizational Benchmarking Process
The system effectively organize the benchmarking process and make it more efficient through set benchmarking goals before start the process with other organizations[ CITATION Ron08 \l 1033 ].
The system spread knowledge all over the government sector without hold the knowledge for particular organization[ CITATION Zai94 \l 1033 ].
The system creates a knowledge place for Dubai in global knowledge market.
The system cascading the vision of the organization, which is to be "A First Leader in Reference" to the operational level[ CITATION Zai94 \l 1033 ]
Employee who adds his personal experience will be credit in his appraisal.
2.9 Lowering Cost
The systems reduce the overall cost of the organization as the organizational managers may attain user information from the system[ CITATION Ron08 \l 1033 ]
While due to planned operation, the loss of money on reoperation will be saved[ CITATION Nor96 \l 1033 ].
Enhance customer service by providing time saving service which assist users in gathering required information[ CITATION Ben052 \t \l 1033 ].
2.10 Improving Motivation
The benchmarking system permit the organization to view other departments and provide ideas of new ways to run their business [ CITATION Ben052 \t \l 1033 ]
The benchmarking system is also motivation by considering the performance of different department to see the potential areas in their own business and increase the financial incentives to introduce variations
It also improves the organization motivation by confirming the quality of valuation being undertaken and identification of concerns that can be addressed quickly [ CITATION Nor96 \l 1033 ]
2.11 Enhance Day To Day Management Operations
The system enhance the daily management operations of the business with the information provided in the clear and easily understandable format [ CITATION Ben052 \t \l 1033 ]
It also help to attract and retain the quality of operation and maximize returns[ CITATION Gov12 \l 1033 ]
The system also supports documentation that can be called upon the situation of analyzing records and performance[ CITATION Nat051 \l 1033 ].
The benchmarking system also helps to reduce the employee turnover by improving knowledge sharing and communications which enhances employees morale and learning as well as provide more efficient cross functional working with increasing organizational memory[ CITATION Zai96 \t \l 1033 ]
It also assist to draw links to the other concerns and sectors such as financial , governance, environmental and social [ CITATION Ron08 \l 1033 ]
The system permits the true insight into the situation of the business and clearer understanding of the areas where the business should enhance with critical evaluation of business operations and information [ CITATION Ron08 \l 1033 ].
7 Scope & limitation
The scope of the benchmarking process includes land department in Dubai while the scope of the project also includes some of our partners in which the export and import of knowledge to the document knowledge in the systematic benchmarking approach. The project covers the direct benchmarking process of sending and recoating delegation while it also provides indirect benchmarking process of the land department in Dubai [ CITATION Gov12 \l 1033 ].
However, some of the significant limitations of the benchmarking process project are the individuals who are not aware of the significance of the system. The organization is interested to change the mentality and behaviors of people by sharing the required knowledge by means of benchmarking system and this approach will provide future vision to the organization permit them to be market leader in this field[ CITATION Gov12 \l 1033 ].
8 Critical Analysis of Typical Benchmarking Methodology and Types:
According to Kaiser Associates (1988) he classified a typical benchmarking methodology into six steps, these are:
“Identifying the problem areas , identifying other industries that have identical processes , identifying organizations that are leaders in these areas , survey companies for analyzing measures and practices , visit the "best practice" companies to analyze and identify the leading edge practices and apply innovative and enhanced business practices[ CITATION Rob88 \l 1033 ].
However, Sherri Dumford (2008) mentioned that there are nine types of benchmarking, these are:
"Process benchmarking; Financial benchmarking; Benchmarking from an investor perspective; Performance benchmarking; Product benchmarking; Strategic benchmarking; Functional benchmarking; Best-in-class benchmarking; Operational benchmarking[ CITATION DUM08 \l 1033 ]. The analysis of the major benchmarking methodology types are described as follows:
2.12 Process benchmarking
The new firms emphasize its observation and analysis of the business processes with the aim of identifying and observing the best practices from one or more benchmark organizations. This methodology use where the main objective of the organization is to benchmark the cost and efficiency as well as enhancing back office procedures where significant operational and human management are under consideration[ CITATION BAn95 \l 1033 ].
2.13 Financial Benchmarking
This methodology performs the financial analysis and compares the results in the effort to evaluate the overall competitiveness and productivity of the organization. however , some of the major financial benchmark involves the gross , operating and net profit margins , sales and profitability trends , inventory , account receivable and account payable turnover , revenue per employee , marketing expenses and cost per employee[ CITATION Mar021 \l 1033 ].
2.14 Benchmarking From an Investor Perspective
This approach of benchmarking helps the organization to compare the peer companies that can be considered substitute investment opportunities from the perspective of investors[ CITATION Mar021 \l 1033 ].
2.15 Performance Benchmarking
The performance benchmarking permits the starting firms to evaluate their competitive position by comparing the products and services with those of target organizations. It also involves comparing the performance levels of the organizations for the particular process while this information is used to identify opportunities for the enhancement and setting performance targets. The performance benchmarking compares the financial measures in the form of expenditures , cost of labors , cost of buildings , cost of energy , adherence to budget , cash flow and collected revenue as well as non financial measures such as staff turnover , administrative staff to front line staff , budget processing time , complaints and environmental influences[ CITATION BAn95 \l 1033 ].
2.16 Product benchmarking
The product benchmarking methodology involves the process of designing the innovative products or upgrading the existing ones, which involves reverse engineering which is severance to competitors’ product to analyze strength and weaknesses. The product benchmarking provides the independent evaluation of the products from the informed consumer perspective and screening the products concepts by identifying the best product for the development through brainstorming and idea generation techniques[ CITATION Zai94 \l 1033 ].
2.17 Strategic benchmarking
This methodology of benchmarking involves the observations that in what way organization competes with each other while this approach is not industry specific and analyzes different industries. It is major element of the transcendent system of the major business planning process, which describes the strategic goals of the organizations. The strategic benchmarking methodology emphasizes on the identifying the factors which should be changed for the organization to create the strength that ensure its continuing accomplishments[ CITATION BAn95 \l 1033 ].
2.18 Functional Benchmarking
The functional benchmarking emphasizes its benchmarking on the single function to enhance the operations of the specific function. However, the complicated functions such as human resources, finance and accounting, information and communication technology are improbable to directly equivalent in the cost and effectiveness terms and may require to be disaggregated into the procedures in order to make valid comparison. This approach appears to benchmark with the partners taken from different business sectors and area of activities to activities to find ways of enhancing the similar work processes and this sort of benchmarking lead to innovation and dramatic enhancements[ CITATION Mar021 \l 1033 ].
2.19 Best in Class Benchmarking
It is similar to the industry or sectors benchmarking in which manager compares their organizations to the market or industry leaders. The companies that implement best-in-class benchmarking system use overall equipment effectiveness (OEE) widely to make their performance effective. This type of benchmarking always looking for best, up-to-date and innovative practices to model [ CITATION Pra05 \l 1033 ]
2.20 Operational Benchmarking
The operational benchmarking covers everything from staffing and efficiency of an organization to office flow and analysis of process that performed in the organization. Furthermore, the operational benchmarking allows organization to assess the several aspects of their operations and compare them to the standards of certain industry as well as provide suggestions regarding to improve the performance within the industry [ CITATION She11 \l 1033 ].
2.21 Analysis
Based on the research and studies conducted for this paper, it has been found that the process benchmarking is the better option for Dubai Land Department because it will allow mangers to compare specific processes to the most leading organization or industry standard as well as allow the officials of Land Department to create more simplified review of business operations. Furthermore, it has been examined that if the Land Department in Dubai implements process benchmarking, it will easily improve their major business operations by reviewing the internal and external management practices. Beside it, through the implementation of process benchmarking, Land Department will obtain significant benefits related to production, financial resource, enhance performance, and competitiveness [ CITATION Guy97 \l 1033 ].
9 Suggestions and Reflection
Based on reseach conducted above, the results has came up with the following recommendations that are necessry to improve the benchmarking prcoess and strategies:
2.22 Benchmarking in Strategic Department:
It is recommended to the Land Department of Dubai that they should delegate the Benchmarking System to a section who should be responsible for the system. However, it has been observerd that currently Strategic Department is handiling sytem therefore it should focus on implementing benchmarking process by making influential stratefies [ CITATION Lin09 \l 1033 ].
2.23 Investment in Training of Employees
Based on the results obtained from the study, it been suggested to Dubai Land Department that it should invest in Traianing of employees in order to develop the employee ccompentencies, for instance Land Department should encourage employee to get the Project Management Profissional Certificate to accpet the system beside undertand the imporatance of following the Benchmrakign Process [ CITATION Lin09 \l 1033 ].
2.24 Change Cultural
In addition to above, it is found that the Land Department of Dubai needs to bring change in culture since people in MOL are resisting the new concept of CRM. Thus, top management should increase communication practices with employees to increase their knowledge about CRM, which eventually they will be more committed and their performance and behavior will be change effeciently [ CITATION Lin09 \l 1033 ].
10 Conclusions
The study conducted on the benchmarking for the best practice in the context of benchmarking system of Dubai Land Department has been concluded and summarized that in the Dubai Land Department, the benchmarking marking system has been developed to obtained the objectives of the organization, which are related to the development of real estate environment at international level to protect the rights of people and shareholders. However, it has been depicted that among several benchmarking systems, the Land Department has been implementing process benchmarking system and obtaining success in real estate industry. The criteria chosen by the department is effective in order to bring the development in the industry and to provide the better services to the customers including both buyer and supplier of the land properties.
In addition this, it has been found that the Land Department of Dubai requires improvement in their benchmarking system to fulfill the needs of technology, to become globalized, to bring knowledge excellence, measuring income, and to keep competitive in business industry. Thus, by implementing the provided suggestions related to benchmarking, the Land Department will achieve its strategic objectives which eventually will increase Department performance. Moreover, the paper resulted in explaining the Benchmarking system process in the Land Department to ensure the success of Benchmarking process implementation.
11 References
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Doumeingts, G., & Browne, J. (1997). Modelling Techniques for Business Process Re-engineering and Benchmarking. Springer.
Dubai Land Department. (2009). Dubai Quality Group performs a benchmarking with RAK Land Department. Dubai Quality Group. .
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Dumford, S. (2011 ). Benchmarking: How to Make the Best Decisions for Your Practice.
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12 Appendix:
1. The values used in the Land Department
Leadership:
Take the initiative and be a leader and innovator in all its activities while prioritizing sustainable development.
Performance:
Achieve the highest levels by adopting the best international standards and practices.
Respect:
To all individuals and for all views even those which are opposite.
Efficiency:
Teamwork, best capabilities and commitment employed to carry out all tasks to the highest standard and in accordance with best practice.
Communication:
An open-door policy offers access and speed of response while we priorities the provision of accurate and clear information.
Professional:
Professionalism is a priority for employees and in their relationship with partners and associates and all stakeholders, particularly customers.
2. Land Department Hierarchy