Change Management In Oman Arab Bank: Analysis And Recommendations

Background of the company

Change management is a systematic approach of dealing transition or the transformation of organisational goals and objectives. There are some effective changes and some controlled behaviour in an organisation that encourages the change in the organisation. The adaptation and strategies of changes are based on the previous experience and administration will know the consequences beforehand (Riffai, Grant and Edgar 2012). In case of successful personal transition, change in adaption and realization of change is important for the business. Change is always a form of urgency, the need that is required from the organisation, may not be effective enough if the process will be implemented later. These are such situations that encourage business advancement in future and formulate the change for the development of the organisation is a long-term process.  

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In this essay, the thesis statement is based on the leadership, teamwork and structural and positional changes in the organisation due to the change management. The approach of change management is effective; if that is used for the development of the organisation and those changes bring some new rules and regulations to follow up by employees (Sidani and Al Ariss 2014). Oman Arab Bank is the chosen organisation in this essay. The change management approach in the setup process of the Bank and risk controlling manner due to the newly functioned security department (Oman-arabbank.com 2018). The security is all about the information of the employees and their advance procedure of securing those dates for the future tracking process. The controlling process is the challenge for the organisation and they are trying to get accustomed to the change. This may raise some employees’ grievances, blocking social media sites and resistance in business.

Oman Arab Bank SAOC has established in 1984 subsequent the attainment of Arab Bank’s branches in the Sultanate. The product and service expand of the company in the last three decades are incredible. This is a comprehensive suite of innovative solutions in corporate and finance projects, retail banking and investment banking (Oman-arabbank.com 2018). Oman Arab Bank provides constantly a good approach and service to their customers to satisfy them and ensure them the best quality service management. The major stakeholders of Oman Arab Bank are Oman International Development & Investment Co. SAOG OMINVEST, Arab Bank Plc, and Oman Real Estate Investment and Service SAOC (Oman-arabbank.com 2018). Oman Arab Bank operates more than 60 branches and offices and they have 135 ATMs based in high football locations across Sultanate. The bank has more than 600 branches in all five continents (Oman-arabbank.com 2018). The digital banking process is also introduced by the bank and that improves communication with customers. This is the easiest process to get in touch with the bank and innovation approach by bank helps them to secure their money and update them about the loan percentage and different discounts and offers.

The revenue generated from the company was RO 86.1 million in 2014 and a total asset of the bank is almost RO 1, 810 in 2014 (Oman-arabbank.com 2018). The initial idea of the bank was based on the short-term process as the participants need to ensure the concept and acceleration of the process that will win one such day. The first innovation lab was introduced on November 5th, 2018 and the implementation process helps in viable contribution to the Omanis economy (Oman-arabbank.com 2018). This is a knowledge-based economy that empowers professionals, students and employees. For enriching human experience a strong external and internal innovation agenda was created and the values were maintained throughout the process. The digital economy and payments deliver young banking and superior customer experience.

Change management

The basic change that organisation wants to initiate is the newly functioned security systems. The risk department is liable for the situation and regulatory management of the bank is also taking care of that situation. Internal functions of the bank and the entire baking system is operated through this process. The personal information of customers and employees and their system password is complex enough to crack. There are simple passwords in many departments in Oman Arab Bank, especially in IT departments (Oman-arabbank.com 2018). The passwords have been changed by complex passwords and that mitigates staff easy enjoying simple non-expiring passwords. This is the change that Oman Arab Bank initiates for more safety for their customers and employees (Afiouni et al. 2013). The change processed some grievances for employees as they use social media in office in their spare time, but the process is being blocked. These are the changes that Oman Arab Bank implements for safety purposes.

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Lewin’s force field analysis evaluates the change problems and the restricting factors for that change. There are some factors for the changes and against the change and those factors initiating the process for change management as well. The driving force is a key change that business imposed on. In the case of Oman Arab Bank, the changes in security will be the driving force as well (Ahmed and Choudri 2012). There are some internal and external forces as well. Development of security, increase safety, managing better flexibility, effective communication in the organisation, not in social media all these are considered as the internal changes in the business. In case of external forces, higher security cost, scattered personal information, legislation and taxes, ethics and value of the company, social values, changing nature in the workforce is the key driving factor for Oman Arab Bank.  

Figure 1: Lewin’s force field model of change management in Oman Arab Bank

(Source: Created by Author)

In case of restricting forces, the most restricted opinions are coming from the employees’ end. The used to with the simple passwords and now the advancement of security delivers complex password and that changes initiated with different mindset altogether. Social media restriction in Oman Arab Bank is another grievance the employees will deliver to the management and reason behind the scenario is the effective communication in the organisation, not in social media (Hussain et al. 2016). The administration realises that effective communication makes some strong bond with employees (S. Choudri, Al-Busaidi and Ahmed 2013). The structural inertia makes the process sloth and inactive in some cases. Existing administrative people are against that change in some cases and that will create the problem in some cases. The restricting approaches need to be mitigated by the effective communication and implementation of change management.

The change state or position of the company can be defined by the Lewin’s three-stage model. The practical understanding of the model is important. There are three main stages of that model like Unfreezing, Freezing or changing, and Refreezing. The modes are widely used for modern changes in the organisation.

Lewin’s Force Field Analysis

Figure 2: Lewin’s Change Model

(Source: Created by Author)

At the initial level, there are some employees, who resist the change and the objective of the change is distracted through the process. The acceptability of change will come if employees ready to take the changes wholeheartedly (Al-Musalli and Ismail 2012). The awareness, in that case, is the important and competitive advantage will be gained through the process. This is the step that ensures the effectiveness of change and the years the change will continue. In this case, Oman Arab Bank’s security re-design processing is the major problem in case of implementation as the employees are not trying to associate with this.

The second stage deals with the changing process that means freezing of decision or implementation is taken place in that case (McAleese, Creed and Zutshi 2013). The changes become real in that case and those changes are formed in a transitional way. There are some struggles to overcome the situation and that impact on the changes.

The last factor address the mode of refreezing and that symbolise the reinforcement or stabilise the process of goal and opportunity in business. The refrozen form ensures the organisation changed culture and acceptability of employees with that change (Manchester et al. 2014). Constructive rewards and salutation of customized determinations are often used to strengthen the new state because it is supposed that definitely secure conduct will likely be frequent and that is the main motive for the refreezing form.

Kotter’s 8 steps model develops the process of change and forming powerful vision and strategy making in business. The model removes obstacles, empowering employees for action, and consolidates gains and anchoring the change in business.

Figure 3: Kotter’s Model

(Source: Created By Author, Adapted from Kotter, 1996)

The initial step is the increasing urgency of that change. The way of guiding a team and understand the effectiveness of that team is important and that will evaluate the necessary changes to improve the performance of the team. Develop the vision and set an objective for the team is also important in that case and that generate organisational advancement. Communication with employees and positive outcome through the process helps in better understanding. Therefore, actions are taken for the development of business and for making a sustainable ground of that (Appelbaum et al. 2012). Managers or leaders need to create some small teams as the evaluation and monitoring of those teams are effective. Individual improvement will be placed in the manager put proper attention in every single employee. The last one is developing the corporate culture and anchoring the changes and leaders will support the process as well for the betterment of the organisation.  

Teamwork is important for the development of the business in case of having better leadership approach is in business. Teamwork in case of change management is important for the development of better strategies implementation and deliverance in business. In the case of Oman Arab Bank, changing security and the entire implementation process is maintained by the company and they have to implement the process for the advancement of business. Team bonding and communication will improve through the process (Baydoun et al. 2012). Employees will trust each other. The creative freedom will be there for a better innovative process. In Oman Arab Bank, the effectiveness of teamwork will improve as the security process is strengthening by the administration.  

Lewin’s Three-Stage Model

Change in leadership is the main approach than Oman Arab Bank introduce in their system. The change comes in the way of security, not using social media at the office, complex form of the password, and some other changes as well. The reason behind those changes may encourage the effectively of employees but initially, their approach over such decisions are not impressive. The authorisation or Autocratic leadership approach may be considered from employees’ end (Swailes, Al Said and Al Fahdi 2012). They assume the process as a burden that imposed over them. However, the basic leadership change is the situational leadership, which forced the organisation to change such things and evaluate the positional faults and deliver the appropriate solution to employees.

There are basically four types of organisational structure like functional, divisional, matrix and flatarchy. The changes that Oman Arab Bank introduces in functional change enhanced the clarity and business advancement as well. The best practice of the company and individual responsiveness is crucial for the development of the business. That is the reason better engagement will be processed through those changes (Al-Kalbani 2014). Some clear ideas of improved security, complex password, more interactional opportunities will improve trust and bonding with employees. In the case of Oman Arab Bank, structural changes of the matrix are also applicable as the decision making, flexibility and balancing are controlled and processed by leader or manager.

The driving force is the main challenge and the reason behind changes. The change management will come if there is some extra driving force implement in the organisation. Internal and external both the forces are equally important for the change and organisation has to move from their earlier position and change their level for the sustainability approach. In case of internal reason, lack of attachment in organisation, stakeholders’ issue, and maximum reach in the market are the prime reason behind that (Small et al. 2016). The changes in the security system and introduce a better form of security is also important and that initiated by the organisation as well. For increased efficiency and performance issue internal changes may happen. There are some conflict situations internally and to mitigate those changes may take place.

External changes are aligning with service quality, demand, competition, ethics, values and globalisation. There are some legislative changes as well and the nature of the workforce is also liable in this case. Banking functional process is based on the economic condition of the country (Small et al. 2016). The percentage of interest, loans, mortgage, and other relative operational functions are related to the change. Employees’ security and safety is also considered as a concerning change in this process and that change has come for the scarcity of abolishing personal data.

The change in Oman Arab Bank will ensure the possible baking infrastructure informative way. Build a suitable team, creating the vision and work for the process by mitigating obstacles is creating a path of mature change. The urgency in marinating the security and protect personal data as well (Nordin et al. 2012). The developed vision of employee engagement, which was missing due to the excessive use of social media, will change as social media use is restricted in office. The actions empowered action making and step making helps in business and every single mannerism of employees are illustrating by leaders. The changes are made for the development of business and those changes help the business as well.  

A constructive discussion and a formative way of decision making may help to mitigate those grudges against the organisation. The change in security is a good step to protect employees’ personal information and complex password also securing that process only. Now that awareness may lack in case of employees or the impact may lose by delivering or convincing them while leaders attain all employees in an open forum. In the case of social media uses, employees need their space as well and in some spare time they can use social media as well, but a convincing time limit of using the process is also important. The complex password will be given individually to all the employees and they have to note it down in a secret way. Change in Oman Arab Bank formulates the process of change management through developing and empowering the process of leading and managing people in an effective way.

Conclusion

Therefore it can be concluded that leading and managing approach of change management in Oman Arab Bank is effective if employees cooperate with the process and maintain the workflow ratio in the organisation. Thus the change in any point of time signifies the urgency and delivers better consequences in such cases. The change will be mature enough if the assimilation of change factors are provided in a legitimate way. All the changes and the models signify the process and implement changes helps the organisation for the formative changes in the business.

References

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