Report on Muscat Bank the Integrated Management Project (IMP)

Introduction of Muscat Bank

Bank Must is a well-known financial institution in the Sultanate of Oman. The bank is providing conventional and Islamic commercial banking services to its clients. The bank is providing the loans, deposits and credit cards to their customers. Bank Muscat is providing the corporate banking services, retail banking services and treasury services to their clients. The bank is serving its clients by providing private banking and asset management services. In 2018, Bank Muscat had a worth of $31.9 billion. Bank has the largest set up in Oman for covering a large number of people by more than 150 branches. The bank has international operational with various representative offices in multiple countries. The bank has remained as “Best Bank in Oman” for more than seven years. In 2009, the bank was announced as “Best Bank in Middle East” for employers (Bank Muscat, 2020).

·         CEO                            Sheikh Waleed Khamis Al Hashar

·         Revenue                      $1.5 billion (2018)

·         Net Income                 $469 million (2018)

·         Net Employees            3, 779

Bank Muscat was founded in 1982, and now bank is providing direct and indirect services to their clients or customers in market. The bank has a presence in six states of Gulf, and its focus is on handling the financial institutions and trading business activities in market. The Bank Muscat is controlling their commercial operations in Dubai, Singapore, India, Pakistan and Saudi Arabia. In 2007, Bank Muscat leadership applied the “Equator Principles” for regulating their banking tracks and chase projects in markets. Bank Muscat has large number of shareholders inside and outside of Oman as Oman Sultanate has 23.6% shares. Bank with larger operations has a complex structure for decision making or policy implementation (Bank Muscat, 2020).

Problem Statement or Framed Problem of Muscat Bank

In recent time, Bank Muscat is managing or handling large set up in various regions or countries of world. Bank Muscat is managing the operations of corporate banking, retail banking services, investment banking, treasury operations, private banking and asset management services. Bank Muscat is managing these operations with 3, 779 employees and with more than 150 branches in Oman (Bank Muscat, 2020). The bank management is also managing more than six countries operations with their offices like as,

·         Bank Muscat Branch in Riyadh, Saudi Arabia

·         Bank Muscat Branch in Kuwait

·         Bank Muscat representative branch office in Dubai

·         Bank Muscat representative branch office in UAE

·         Bank Muscat representative branch office in Singapore

·         Bank Muscat representative branch office in India

·         Bank Muscat representative branch office in Pakistan (11.8% shares in Silk bank, Pakistan)

Bank Muscat management is dealing with various or diverse working activities in banking sector. Bank management determined that bank employee’s loss in their efficiency. Management assessed that workers are not meeting with working expectations. It founded that employee efficiency resulted in shape of an inability to meet with the advance customer demands. Customers want efficient services or advance services or have fast working expectations. But employees are not working efficiently and has slow progress on working. In a result, customers or clients are disappointing due to slow process in handling operations (Bank Muscat, 2020).

This poses a major risk on various banking operations because slow process or inability to meet customer demand has negative impacts. Bank Muscat employees are not quickly resolving the issues of customers. It has negative impacts on customer satisfaction and also has loss of customer satisfaction. Due to this issue, Bank Muscat other operations are also effecting as clients' needs or demands are not focusing on management (Forbes, 2020).

Identifying an Issue in Our Organization of Muscat Bank

Bank Muscat is providing banking services to its customers in Oman and other countries. Bank management engages the clients or customers for earning more and more profitability. Management is focusing on their operational activities and management of various functions. Management is managing the following segments like as,

·         Corporate banking

·         Consumer banking

·         Wholesale banking

·         Investment banking

·         Asset management

·         Private banking

·         International and Islamic banking

Bank Muscat management is focusing on corporate segments, and it has major responsibility for providing financial solutions to their clients or customers. Management is dealing with corporate affairs, projects, and it provides structural support for finance. The purpose of corporate services is to provide card and ex-pat services to clients. Management provides services to accounts, deposits, loans, mortgages and money transfer to clients. The bank has revenue $1.5 Billion, assets of $31.9 billion and has to profit of $469 million (Abuzid, 2017).

Bank Muscat management has responsivity for managing the various operations and make decisions for solving the problems. In handling multiple issues, management is covering corporate and consumer banking. Management assists their clients in making wholesale and investment in various sectors. While managing large setup, some weak points have effects on influence on business operations. One major issue in organization is that employee is not meeting the efficiency standards. The employees are losing their efficiency due to diverse functions in market. It has long-lasting impacts on company managing affairs and handling issues. Employee efficiency has impacts on all other departments or functions in organizations as it lowering down the employee or organization performance (Ahmad Habib, 2010).  

Problem Connection with Organizational Operations or Process Management

Muscat Bank management has determined a loss in efficiency as employees are not meeting the work expectations due to diverse functions. “It has resulted in the inability of Muscat Bank to meet customer demands”. This problem or issue has impacts on various organizational functions. It has bad impacts on customer satisfaction and has a bad reputation of our organization. The problem or issue of loss in efficiency has a strong connection with other organizational operations or process of management (Ahmad, 2002). These organizational operations are like as,

Problems Impacts on People of Muscat Bank

People are most important for an organization as these are skilful or professional for handling banking operations. People are organized and managed by department like "human resource" in an organization. Human resource department is responsible for hiring the best brains for organization for increasing productivity or profitability of an organization. The people in an organization has a mark of "asset". People that are professional or skilled employees are more responsible for managing affairs or solving issues (Alam, 2013).

Problem Impacts of Muscat Bank

The loss in efficiency of employees has negative impacts on people working inside organization and people that are organizational customers. The problem “loss in efficiency of employees” has impacts on operational process. All the working process revolve around the people. People have dynamic role in growth and development of an organization.

Solution Impacts of Muscat Bank

The solution has strong positive impacts on people for increasing the efficiency of people. People have loosed their efficiency for various reasons but after solving their issue. The solution to the problem has strong impacts on training people for improving their professional skills.

Problems Impacts on Team & Company

In an organization, people work as a team, especially in a banking organization. In the banking sector, people are connecting with each other by technology and for working. In banking, the client needs to perform various functions for making transactions for receiving or delivering money. People needed to perform various steps for completing the process in a cycle. From lower-level managers to moving upward, senior managers have duty for signing, countersigning and verification for completing transactions. Therefore, in a banking organization, people connected with each other for performing the same task. The loss in efficiency of employees has strong impacts on other team members in the company (Atreyi Kankanhalli, 2006).

Problem Impacts of Muscat Bank

The management of Bank Muscat determined that the loss in efficiency has strong negative impacts on team working. The problem has various other issues that are associated with a team. The loss in efficiency also slow down the efficiency of other employees in team, and it also slows down the banking process. It also becomes cause of losing the organizational performance in financial sector.

Solution Impacts of Muscat Bank

The solution has positive impacts on organizational performance and on customer satisfaction. It's mean more satisfied clients and more profitability. The solution to the problem has positive impacts on increasing financial services. It is contributing to making effective team working.

Problems/Solution Impacts on Performance of Muscat Bank

The loss in efficiency of employees in Bank Muscat has impacts on performance of organization. People in organization are connecting for performing in the private and corporate banking sector. Performance is a key to change the organizational growth and development. Performance is key strategies and to handle the process of networking. The overall organizational performance has impacts on increasing or expanding corporate operations (ISLAMIC BANKING, 2015).

Problem Impacts of Muscat Bank

The major problem is with employees as management has determined that employees are losing their efficiency in working and did not meet with expected organizational performance. It has generated various risks, especially the loss in employee's performance and organizational performance. Its mean loss in profitability or loss in business.

Solution Impacts of Muscat Bank

The solution has positive impacts on employee performance and organizational performance. Organizational performance is observed form its revenue generations or productivity in a year. Employee performance is monitored and evaluated as it has positive impacts on organizational profitability. It helps in improving employee efficiency in working or dealing with clients in a limited time.  

Problems/Solution Impacts on Leadership of Muscat Bank

Leadership in an organization has the most important and effective role in managing affairs. Banking organizations have a leading role in the financial sector for supporting the industry. Leadership set goals and objectives for an organization and set the direction for growth or development. Therefore, leadership has a substantial role in analyzing the market and business development. The loss in efficiency of employees also has impacts or influence on organizational leadership (Wright Thomas A. & Russell Cropanzano, 2000).

Problem Impacts of Muscat Bank

The problems have negative impacts on the leadership of an organization. It has bad impacts on the goals and objectives of an organization developed by leadership. It has negative impacts as leadership efforts are becoming invalid and losing their influence in market.

Solution Impacts of Muscat Bank

The solution to the problem has positive impacts on leadership efforts for organizational growth and development. The major positive impacts or influence is on leadership business development efforts as employee’s efficiency supports it.

Problems/Solution Impacts on Managing Creativity/ Innovation

The loss in employee efficiency has an influence on other team members as one slower person has impacts on system. One lazy employee work disturbs the organizational reputation and influences organizational customers. Customer satisfaction is key for repeating the business or services. One innovative or creative mind in organization has impacts on all operations in banking sector. The creativity or innovation in work or ideas for solving organizational problems hits the other minds for making efficient. In banking sector, each person has a strong educational background as educational support for making creative ideas for increasing the efficiency of employees. Creativity and innovation do not depend on education or age (Woodworth, 2012).

Problem Impacts of Muscat Bank

The problem is with employees as management determined that employees are losing their efficiency in working. It has negative impacts on creativity and innovation in an organization. Leadership and management make their decision for removing problem on a traditional basis and neglecting the creative or innovative ideas. It has terrible impacts on human psychology and stops the best brains for joining the organization (Schleicher Deidra J., 2004).

Solution Impacts of Muscat Bank

The solution to the problem has positive impacts on employees and encourage the best brains to join the organization. It has positive effects on profitability and branding.

Problems/Solution Impacts on Financial Aspects

The loss in efficiency of employees in Bank Muscat has impacts on financial issues as the customers want a fast delivery system. In the banking sector, most of the concern is related to cash delivery and receiving.  The customers wish to care and fast delivery of services for managing tasks and in the procedure. The lazy process or inefficient employees have impacts on customer satisfaction. It has also impacted on bank revenue generation and their asset management (Sackett, 2012).

Problem Impacts of Muscat Bank

The problem has negative impacts on customer minds, and the dissatisfied customer never repeats business or use services. The unhappy customer looks for alternative or better services in the same filed. Its mean loss in financial aspects.

Solution Impacts of Muscat Bank

The solution improves the impacts positively on the financial aspects of the company. The efficient employee has a proactive role in solving the issues or problems of clients. It has positive impacts on revenue generation.

Problems/Solution Impacts on Marketing

The marketing department is one of the most important department in the banking sector for customer dealing. Marketing department presents their efficient services to their private and corporate customers. Its mean marketing plan is based on various steps for customer acquisition. The potential customer from the corporate sector has various banking transactions daily. Marketing department or sale person sale the unique or efficient services of their banking organization to their clients (Rothwell William J., 2012).

Problem Impacts of Muscat Bank

The loss in employee efficiency and loss in meeting work expectations have negative impacts on selling services. In the banking sector, marketing or sale person just sale their services. The lazy staff flops the efforts for attracting the customers.

Solution Impacts of Muscat Bank

The solution of the problem has positive impacts on the marketing dimensions. It influences people and increases the number of customers (Robescu, 2016).

Problems/Solution Impacts on Business Strategy

The loss in efficiency in working has impacts on business strategies and strategic plans. The leadership of an organization develop business strategies for customer attraction and acquisition. But the loss in efficiency or lazy staff handling has negative impacts on organizational performance. The inefficiency and inadequacy of staff have influence or impacts on business strategy (Olson, 2016).

Problem Impacts of Muscat Bank

The loss in employee’s efficiency has negative impacts on implementing the business strategy. It stops the efforts for business development and opportunities. These are the following points that are important for handling issue like as,

·         Locating problem

·         Macro Environment Impacts

·         PESTAL

·         Business Models and Strategies

·         Entrepreneurship and Small Business

Problems/Solution Impacts on Operational Management

The loss in efficiency has strong impacts on operational management as operational area has major productive works. In Bank Muscat, operational management has a strong role in motivating the employees for making the best efforts and monitor the employee attitude for working. Operational managers are responsible for handling the efficient and fast or smart working for customers (Nyaribo, 2016).

Problem Impacts of Muscat Bank

The loss in employee's efficiency has strong and major impacts on operational services. The operational area is the serving area or it deal directly with clients. Operational staff is the face of organization. The lazy or incapable or inefficient employees have negative impacts on production and on customer satisfaction. The lazy or slow working attitude has negative impacts on customer satisfaction and on business operations (Nisar Ahmed Pahore & Faiz. M. Shaikh, 2012). The loss in employee’s efficiency has impacts or influence on following areas in operational management like as,

·         Supply Chain

·         Procurement

·         Operational Management Issues

Solution Impacts of Muscat Bank

The solution has positive impacts on supply chain, procurement and operational management issues. It increases the ratio of satisfied customers and business repeating customers.

Varied Approaches for Resolution or Managing Changes in Organization

There are large number of possible methods or alternative solutions for handling the issue of loss of employee efficiency. Business management scholars have solved the inefficiency problems or changes in an organization. The purpose of using approaches for resolution of problem or managing change in organization is to increase employee efficiency for working (Jason James Eberwein, 2019). These approaches are like as,

·         Motivation

·         Training

·         Punishing or Penalizing

Motivation of Muscat Bank

Motivation is one important approach in world adopted by organizational leadership for increasing employee efficiency. Motivation has psychological impacts and it recharge employees for achieving organizational goals.

Training of Muscat Bank

Training is another approach that is using by organizational leadership to meet the customer demands. With the advancement in information and communication technology, e-banking or online banking is also in high demand. Therefore, training is very important for increasing employee’s efficiency.

Punishing or Penalizing

The last option is punishing the employees those have poor efficiency or lazy working. There are various kinds of punishments like as stopping increments, promotion, demotion in scale or charge, fine and various other penalties (Kazimoto, 2016).

Theories, Tools and Techniques Applied

The loss in employee’s efficiency has serious impacts or influence on business operation, revenue generation, profitability and on customer satisfaction. Therefore, there are various theories, tools and techniques applied for increasing employee efficiency.

·         Root Cause Analysis (RCA)

·         Fishbone Diagram

Root Cause Analysis (RCA) of Muscat Bank

Figure 1 RCA

These are the two techniques are applying in this report for increasing the employee’s efficiency and for covering the issues. These are simple techniques for applying and no need other or additional resources for applying.

Figure 2 RCA

Fishbone Diagram of Muscat Bank

Figure 3 Fishbone Technique

Figure 4 Fishbone Technique

Appropriate Solutions of Muscat Bank

After the analysis of business organization, Bank Muscat has performed various functions for resolving issues and improving the efficiency. There is single solution for improving the efficiency is employees like as motivational and training techniques (Abuzid, 2017).

Conclusion of Muscat Bank

Form the analysis of data, it concluded that the loss in employee efficiency has impacts or influences on operational activities. The Bank Muscat has strong management and market analysis team for business development. It concluded that loss in efficiency of employees due to various reasons observed. It observed that Bank Muscat is expanding their business operations in more than six countries. The bank has 3, 779 employees for managing corporate banking, retail banking, asset management and private banking. Bank provide investment advisory for their clients on mergers and acquisitions. Bank Muscat assigned duties to their employees for management of funds, wealth and portfolio management. Bank provides guidance to their clients for investments in private equity and in various sectors. Management is just focusing on managing their operations and have less attraction in customer demands. Another impact is that Bank Muscat has a bad reputation as a financial organization. However, this issue is not more prominent as it cannot be controlled or managed. There is a need a collective effort and effective plan for knowing the causes for identifying the root causes of problem for eliminating it.

Recommendations of Muscat Bank

These are the following recommendation for improving the loss in employee’s efficiency like as,

·         Need to motivate employees

·         Must arrange training sessions for employees

·         Must improve selection process for hiring best brains

References of Muscat Bank

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