Project Change Management

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 Exclusive Summary

With the development of the banking industry, banks have realized the
importance of overall quality as a means to achieve the desired quality better
and as the primary objective to reach customer satisfaction and to implement
the overall quality efficiently and effectively. This requires changing some aspects
of the management style of the organization in United Arab Bank.
Within this approach, we aim to highlight the areas of change under TQM and
its application requirements, with a focus on the role of human resources
management and management leadership in change management in the United
Arab Bank.

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 Table of Contents

Exclusive Summary.................................................................................................................. 1

Introduction ................................................................................................................................ 3

Concept of change..................................................................................................................... 4

Types of change ......................................................................................................................... 5

Reasons and motivations for organizational change ..................................................... 7

Areas of change under TQM ................................................................................................. 9

Nadler & Tushman's congruence model..........................................................................10

Conclusion.................................................................................................................................14

Recommendations...................................................................................................................15

Reference....................................................................................................................................16

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 Introduction

Organizational change is one of the most important issues at present, which is

a major challenge for organizations, especially banking, as they operate in a
dynamic banking environment, competition by alternative products of lower
quality and cost, many organizations have resorted to TQM as the starting point
for change and as a business philosophy and slogan for improvement and
development, allowing them to continue and enhance their competitiveness in
the banking environment.
On this basis, our applied project focused on the application of the concept of
change management in the United Arab Bank as a banking institution as the
gateway to change and improvement in the quality of banking services provided
to customers.
The approach towards the implementation of total quality requires the bank to
make new changes to move from the current situation to a more efficient and
effective future. The change relates to its culture, organizational structure and
re-engineering of banking operations in response to the internal and external
environmental forces affecting the banking environment.

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Concept of change:

Economic studies and research dealt with change in organizations as a

philosophy of work in various fields,
The change in its concept refers to moving from the current situation of the
Organization to a more efficient and effective future situation, and thus the
process of introducing improvement or development on an ongoing basis.
An activity involves transformations in one or all or all of the elements that make
up the organization to counter the forces that influence it.
The change is meant in the simplest sense of being a planned or unplanned
response by organizations to the pressures of material and intellectual
innovations, and change management is only to ensure that these pressures are
effectively addressed through various management practices.
The change is therefore intended to make partial or radical adjustments to the
United Arab Bank in order to move to a better competitive position in which to
achieve its objectives in response to the total forces that influence it, namely:
Internal forces: The environmental factors that arise from within the bank and
the drive towards change are:
Absence of job satisfaction among workers and increase hours of absence from
work.
Weak or lack of cooperation between employees in departments and
departments.
The Bank's profits were reduced and incurred losses.
External forces: These forces arise from outside the bank and can be controlled
or controlled only by making changes appropriate to these forces, and serves as
the main impetus for change as a result of:
 Technological and informational developments.
 Issuing new banking laws and regulations.
 Economic transformations.

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  Increased competition.
 The rise of globalization and its effects on the banking business.

Types of change:

The change in the United Arab Bank is one of the efficient management strategies
that try to create the banking environment to respond to and adapt to the forces
that influence them in order to maintain their market position and to enhance
their competitive capabilities. Therefore, change takes several classifications that
vary from one organization to another and from time to time depending on their
situation levels:
In terms of degree of planning: change takes one of two forms:
 Random Change: The automatic change that the United Arab Bank takes
without any prior preparation and its negative effects.
 Schematic Change: Depends on a preset with specific programs, and
possible change areas.
In terms of execution time: It is divided into two types:
Rapid change or so-called strong shock: This change occurs at once to strong
circumstances affecting the United Arab Bank, and be sudden to the staff of the
organization, which requires caution from the negative effects of the impact of
this change.
Slow change: The change is partially taken in batches, and is inclusive of various
aspects of the United Arab Bank to avoid possible negative effects.
In terms of degree of inclusiveness: the change is classified into the following two
types:
Partial change: A change that includes minor parts of the United Arab Bank,
such as a change in a unit of management, objectives, policies, or procedures.
Comprehensive Change: Change at the macro level that includes all parts and
aspects of the United Arab Bank from employees, interests, and functions.

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Change management plays a crucial role in the failure or success of change,
which requires the need to identify precisely the areas of change, the forces that
make the change, the stages of the change process, and then make appropriate
decisions for these transformations.
In order to achieve the best results, it requires the organization to adhere to the
so-called gradual change according to the following steps:
 Study the current situation of the United Arab Bank to identify the
strengths and weaknesses, the nature of the organizational structure, the
pattern of leadership, the communication system.
 Identify the real problems facing the Arab Bank's activity, whether
technological or marketing problems, and management plays a prominent
role in identifying these problems accurately through observation,
interview or form as sources of information led to know the nature of those
problems and propose appropriate solutions.
Plan the change program in terms of objectives, standards and performance
indicators and put it in place at a specific time by a particular administrator,
taking into account the following:
 Previous Changes.
 Affected by change.
 Expected resistance of change.
 Support senior management for change.
Choose the appropriate strategy to suit the required change, and the banking
department to choose between three strategies:
STR strategy where rewards are used as an incentive to encourage change, and
penalties when resisting change.
The strategy of persuading those implementing the change logically is the
importance of change and the expected returns.
The strategy of participation of representatives of groups affected by change in
goal setting, planning and implementation of change is one of the most effective
for resisting change.

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Implementing change with the support and support of senior management and
adherence to specific programs. Those responsible for implementing change play
a crucial role in the success of the change process in their knowledge of the
nature of the changes to be made and the expected returns from their
implementation.
Addressing the resilience of those affected by change, especially when they
misunderstand the rationale for change. Wherever the department works to
reduce resistors by explaining the benefits of change to the United Arab Bank,
employees and clients, informing them about change areas and engaging them
in planning and implementation required incentives and rewards.
Follow up change programs, assess the efficiency of change strategies, adhere to
the plan of action, measure deviations and correct imbalances in a timely
manner.

Reasons and motivations for organizational change:

Organizations currently face many challenges, foremost of which is

environmental instability, which calls for the need to change because of internal
and external forces as follows:
External causes: The following points:
Globalization is one of the most important factors for change because of
developments in the economic, political, technological and social spheres.
Technological and informational development, rapid growth of new technologies,
and increased competition for high quality and low costs.
Social problems, widespread unemployment, poverty and health diseases,
making people's behavior vulnerable to changes in their attitudes, perceptions,
motivations and personalities as an inevitable consequence of changing
environmental conditions.

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The dominance of the market economy and the emergence of new goods and
services, thus changing the needs and tastes of customers.
Changes in the political and legislative environment of the country in which the
organization is active.
Internal causes:
As a result of regulatory factors, internal procedures that relate to the
organizational element as a problem of transferring information from the top of
the organization to the lowest levels, and the behavioral factor also shows the
inability to achieve effective communication.
Failure to make decisions, delayed access to information, or ineffectiveness of
leadership. Examples include the failure of managers to seek technical
assistance from another manager because of competition.
The need for organizational change arises when new developments occur in the
internal work environment, the potential and capabilities of the organization, or
when it encounters self-problems, resulting in the inadequacy of the existing
organization to deal with new changes within the environment.
In the case of change in response to external pressures, staff may not have
sufficient information about the causes and drivers of change. One of the two
situations may be changed:
Lack of interest in the need for change due to lack of internal conviction of its
importance and commitment to change.
Their attitude may be rejection and resistance to change because they feel
threatened by their interests and highlight the role of the administration in trying
to gain their trust and cooperation in order to achieve the desired change.
However, if the change is for internal reasons and does not conflict with the
interests and objectives of the organization's employees and their wishes, they
will respond to the change with acceptance and the need for change. Therefore,
the workers have an important role as a means of change in order to control the
external climate.

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Areas of change under TQM

The TQM application is based on a change in several areas, the most important
of which are:
The culture of the organization: The importance of cultural change is shown on
the basis that the bank operates in a dynamic competitive environment. Hence,
it is necessary to understand the culture of strong quality of service in building
the leading bank. Thus, the culture of the organization is defined as values,
customs and traditions, their behavior with customers, and the culture of the
United Arab Bank in its organizational structure, objectives, strategies and
communication methods, and refers to the total values shared by its members,
and is determined according to the objectives and policy of dealing with the
customer and professional relations between members, and thus centered
culture of United Arab Ban in the context of TQM, we need to establish a culture
of service that is the main focus of the customer and satisfaction, which requires
the need to plan change in the culture of quality of service to ensure acceptance
by both employees and customers. It is important to adopt this culture on the
basis that:
There is no separation between the place where the service is produced, the place
where it is marketed, and the provision of high quality services requiring the
understanding of employees of the United Arab Bank.
Customer satisfaction is achieved by way of service delivery.
In addition, one of the aspects to be committed to building a quality culture in
the United Arab Bank is the following:
Leadership in service delivery: The culture of service performance is based
primarily on the first time through:
 The belief of bank managers in access to high services.
 All employees are convinced and adopted in all roles and locations.

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Comprehensive examination and components before submission to customers,
by presenting them to a number of prospective clients, and some experts to
assess their levels through three stages:
 Test phase before submission.
 Preparing designs to define the service.
 Evaluation after service delivery.
Building a core environment within the United Arab Bank: consists of
interconnected and disciplined employees in their performance and the
formation of human resources to achieve three goals are:
 To create a holistic view of the organization among the target cadres.
 Develop communication skills that maintain and strengthen continuous
relationships with customers.
 Acquiring cadres capable of coping with change and dealing with it easily,
in the sense of accepting change as a reality and practicing it as a slogan.
 Define your service strategy by making United Arab Bank a truly unique
service with high quality.
Hence, change is a useful tool in strengthening the culture if the objective,
justifications, solutions and possible alternatives are clarified, and this is clearly
promoted in the systems, policies, and structures of the Bank.
Organizational structure: The organizational structure is one of the most
changing areas. All changes to the United Arab Bank are often accompanied by
changes in the organizational structure in terms of modification, development,
or deletion of some organizational units, expansion or reduction.

Nadler & Tushman's congruence model

In the implementation of Nadler & Tushman's congruence model, changing the

organizational structure is imperative. The long organizational structure with
many administrative levels does not conform to the TQM methodology as it puts

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barriers between administrative divisions and makes a specialization in
functions which reduces linkages and communication between senior
management and organizational hierarchy.
To implement TQM efficiently and achieve the United Arab Bank's goals, it is
important that the change includes the organizational structure and include
within it teams and working groups that are close to senior management to
ensure their participation in achieving quality.
In addition, the culture of service is strongly linked to its organizational
structure. The United Arab Bank, which has a strong service culture, is
structurally oriented from top to bottom as clients are at the top of the
organizational hierarchy and top management at the bottom.

Figure (1): Change in organizational structure

Traditional Service oriented

organizational organisationnel
structure structure

Higher Customers
Management Line workers
General Director Moderators
Heads of Heads of
Departments Departments
Moderators General Director
Line workers Higher
Customers Management

It is clear from the above that the United Arab Bank follows a customer-oriented
organizational structure that focuses on what the customer thinks to buy and
thus creates an appeal to its underlying needs. In this direction, the customer is
considered the cornerstone of realizing the concept of quality of service, as he
understands it for the following reasons:

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The United Arab Bank should not be aware of the important criteria governing
the choice of clients for the organization, or even the relative importance of each
of these criteria. For example, financial institutions pay relatively close attention
to the privacy and confidentiality standard, while customers pay close attention.
The United Arab Bank may misjudge how customers perceive the performance
of services in which the organization competes with other organizations.
The organization may not recognize the fact that customer needs are evolving in
response to the development of the service industry.
Re-engineering: Another aspect covered by the change in the overall quality
application is re-engineering which is defined as:
This is the modern administrative approach that involves the deterioration of the
Bank's existing conditions, the redesign of all its business activities, and the
establishment of a new organizational structure accompanied by a radical
change in the concepts and values prevailing in the Bank, with the aim of
achieving significant breakthroughs that the Bank is unable to reach under its
present conditions.
The re-engineering or so-called reconstruction is a re-thinking process; re-design
of operations, organizational structure, rejuvenation of information systems,
working methods focusing on the core competencies of the organization to
achieve tremendous improvements in organizational performance.
Re-engineering or, as some call it, is one of the areas of change adopted by the
United Arab Bank to achieve a high level of quality and access to constant
customer satisfaction, including change in the way the work is performed, the
order of functions, the organization of control methods, and changing the staffing
requirements of the administrative units by harmonizing the re-engineering
processes with the required specifications in the human component.
The re-engineering of banking operations is summarized in four key elements:
 Focusing on internal and external clients together.
 Business reengineering the most improved.
 Rebuilding the organizational structure and task forces.

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Reliance on new systems and standards such as quality and information
technology. In order to make fundamental changes in the concepts and values
prevailing in the United Arab Bank, and to achieve substantial improvements in
accordance with the concept of total quality it is important to re-engineer
banking operations according to the following stages:
Phase 1: Preparation for Change: This stage is the basis for future activities in
which the senior management determines the initial action plan, and prepares
the staff for change and the formation of work teams, support communications,
and development of administrative leadership, and the United Arab Bank needs
a measurement system containing correct indicators Reflecting all the
relationships and activities of the Organization in a balanced manner, linking
the goals at different organizational levels and bringing about change from the
lowest to the highest.
Phase 2: Planning for Change: During this phase, the vision, principles,
objectives and rebuilding of the United Arab Bank will be developed by planning
strategies and building future expectations, employing technology and
information, and promoting research and innovation.
Phase 3: Design Change: by implementing the plan, rebuilding, renewing
employees skills, encouraging excellence, linking competencies and incentives
with the objectives of the United Arab Bank.
Phase 4: Change Calendar: the final stage of evaluation improvement, and helps
to determine whether re-engineering efforts are successful and where future
efforts should be focused.
In designing the reengineering axes, it is important for the United Arab Bank to
take into account the success factors of re-engineering:
Support senior management and its commitment to provide the leadership
needed to lead change.
Understand customer needs.
Training competent and skilled personnel involved in re-engineering processes.
Do not apply IT before getting rid of existing errors and problems.

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 Conclusion

The management of the bank does not give its employees sufficient support and
encouragement to raise their performance. They consider that the bank's
management is not interfering in directing its employees mainly due to the lack
of evaluation of their performance and they consider it necessary to change the
current management style, Planning and organizing the desired change.
All heads of departments confirm that the bank does not grant its employees the
material incentives and promotions, does not care about the moral incentives
and encourage the spirit of cooperation between the employees as a team, and
there is no involvement in planning and implementing the change to adopt the
TQM approach.
There is no contact between the manager of the United Arab Bank and the staff.
There is no broad distribution of banking information in both directions,
consequently, there is no connection and participation.
There is no management of TQM as a culture that the organization seeks to apply
to change the current pattern. It is integrated into marketing management, and
most employees confirm that the management of the bank is not interested in
developing, implementing and monitoring plans at the level of all departments.
It is clear from the analysis of the results of the form regarding the Bank's
relationship with its clients and employees that most heads of departments
represent this dimension in that the Bank links closely with its clients to gain
their trust and pays attention to its internal clients. However, there is no interest
in preparing studies, current, and future clients, which shows that the structural
pattern of management is a traditional organizational pattern.

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Recommendations:

In view of the above, and based on the dimensions adopted in measuring the
extent of change as an introduction to the application of TQM in order to improve
the quality of banking services provided, it is found that the United Arab Bank
does not adopt a culture of change at all levels of management and management,
which requires the need to take the following recommendations:
 An administrative leadership concerned with quality planning,
implementation and monitoring.
 Engage internal clients in implementing the desired change.
 Provide material and moral incentives to encourage the performance of
bank staff and improve the level.
 Building an organizational structure that takes into account the design,
innovation and innovation as a slogan and philosophy of action at all
levels.

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