Where did you unpack the source? Have you entered the source directory before running make? How did you specify the target installation directory to make?
Maybe some of these questions seem superfluous, but since answers to them are not obvious from your post, it would be useful to have some sort of checklist. Maybe you find a missing step that way...
Oh and one more question, why installing in the home directory as root? That setup practically means you must be root to use Lazarus. You should either install it under your normal home directory, or systemwide under /usr/local. The last location is the easiest to insall to because it can be done in one step, as root do 'make install' in the source directory (although I usually do 'make' as normal user, and just 'make install' with root rights - the rule of minimizing root account use). When it finishes, you should have Lazarus under /usr/local/share/lazarus. If you need to install to another dir, you should change prefix.