Organizational design, development and change management 2020

FINANCIAL MANAGEMENT, COURSE CODE MBA 682, CREDIT HOURS: 2HR

TERM PAPER, Organizational Culture, change, Structure and

problems in Case of Oromia International Banks’ (OIB)
PREPARED BY
Mathewos Wakshuma Tesso
ID NO MBA 12/110/2019
Lead star college of management and Leadership
Faculty of Business and Leadership

Dasalegn Mosissa (Ass. Profe)

June 26, 2020

ACKNOWLEDGEMENT:

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My deepest and warmest thank goes to the Almighty of God, who help me in all aspect of my life
including the achievement on starting of this masters program. Along with, I would like to express
my sincere gratitude to Dessalegn Mosisa (Ass.Profe) for his expert guidance, helpful criticism,
valuable suggestions and encouragement at every stage during the completion of this work. It was
pleasant and inspiring experience for me to work under his guidance. My sincere and heartfelt
gratitude goes to the all staff for their frank response to my interview without which term this paper
would come to life.
I am also very grateful for my spouse and friends who were beside me throughout my endeavor in
their moral and material support.

Abstract
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Organization is a social unit of people that is structured and managed to meet a need or to follow
joint goals. All organizations have a management structure that determines relations between the
different activities and the members, subdivides, and assigns roles responsibilities authority to carry
out different tasks. Organizations are open systems they affect and are affected by their
environment.
OIB is a profit making organization. It is established Hirarichaly, it has so many problems in the
structural management, Change management, Cultural management, conflict management and
Organizational identity. So this case study is searched a lot of information from the staff of OIB and
gathering some literature review to confirm the organizational problems existed in the bank.

Finally I recommend the right way for all problems mentioned in the study.

Table of Content
Caver pages……………………………………………………………………………………..…...I
Acknowledgment………………………………………………………………………………….…II
Abstract………………………………………………………………………………………….…III

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Table of Content………………………..…………..……………………………………………….IV
Chapter One
Introduction…………………………………………………………………………………….........5
Governance
structure………………………………………………………………………………………………5
Organizational
problems………………………………………………………………………………………….......7
Chapter Two
2.1Literature………………………………………………………………………………………….8
2.1.1 Top down management…………………………………………………………………..8
2.1.2 Problems of top down Leader ship in organization………………………………………8
2.1.3 Advantage and disadvantage of top down management………………………………..8
2.1.4 Top down in use…………………..………………………………………………………9
2.2 Organizational Culture…………………………………..…………………………………10
2.4 Change……………………………………………………………………………………..12
2.4.2 How to manage change………………………………….……………………………….13
2.4.3 Organizational stress……………………………………..………………………….......13
2.4.4 Why pro-actively manage changes……………………………………….……………..13
2.5 Quality of manager………………………………………………………………………..13
2.6 motivation………………………………………………………………………………….13
Chapter three
3.1 Recommendation……………………………………………………………………..…..17
3.2 Conclusion………………………………………………………………………………..17
3.2 references………..…………………………………………………………………….…19

Chapter one

1.1. Introduction
Oromia International Bank (S.C) was established in accordance with the pertinent National
laws, regulations and the 1960 commercial code of Ethiopia, under National Bank of Ethiopia

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Monetary and Banking Proclamation No 83/1994 and by the licensing and supervision of Banking
proclamation No 592/2008.Accordingly, on September 18, 2008, OIB. Obtained its banking
business license to enable commence operation. At the time of its establishment, OIB authorized
Capital was birr 1.5 Million, Subscribed Capital Birr 279.2 million and it’s paid up capital birr 91.2
million. Fulfilling all the Requirements, OIB commenced operation on October 25, 2008 by
opening its first branch at Dembel City Center Naming Bole Branch.

1. Cardinal Values of OIB

Mission
<<We are committed in providing full-fledged and best Quality commercial banking service within
the pertinent Regulatory Requirement with due diligence to sustainable business while empowering
the missing middle and discharging social responsibility by engaging highly qualified, skilled
motivated and disciplined employees and state of art information technology ,adding real value to
the shareholder interest and win the public trust>>

Core Values:
 Persistence ,endurance and tenacity
 The Satisfaction of its highly esteemed Clients
 Transparency, integrity and Confidentiality
 The Building up of a real Team Sprits
 The Groom OD potential successors from among its employees to all its jobs including the
managerial ones.

Vision

 The bank of your First Choice

1.2. Governance Structure of OIB

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Board

Internal Audit President Risk Mgt.&

Compliance Dep’t
Audit Chief Operating Officer
Division Complianc
n e Division
V/P IFBW V/P Legal IT Dep’t International
Cooperativ Operation Dep’t Banking
e Support and Risk Dep’t
IT &
System Credit
Audit Risk
IT
Division Alternativ Support
Human Material & Planning Accounting Branch Credit
and Operatio Dep’t e Banking
Resource Service & Treasury Asset –
Mgt. Dep’t Dep’t Business n
Dep’t liability and
Dev’t ICT & Operation Risk
Credit Cooperat
Customer Acct Infrastructur
Follow up ive
Training Treasury Division Banking
e Division
Marketing & &
& Dev’t Property & Division Division
public Contract Incoming and
Division Gen. service Out going
relation
div Issue Division
Accts & Division Credit
Reconciliatio Analysis
Staff & Planning & n Division Division
Benefit Research S
Divisio Procuremen Division
t Division Shareholder Branches Import Export
Division

1. 3. Organizational Problems

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 Problems of Organizational Structure: - OIB has organized through the above stated
structure. Currently it is hierarchically running only top down management style; it was from
October 2008 up to now the management style is not modern management, no direct
communication between the top management and subordinates

 Problems of Organizational Change, Implementation of change is too late, lack of awareness

the purpose of change among the top management and employees, majority of employees are
change resistant. They need to much self satisfaction, they fail to create a strong governing
coalition, they have no a vision to communicated sufficiently

 A problem of Employees motivation, the weakness of the theory is that is does not take
account of the fact that individuals have their own personal motivational structure, or that
groups of employees have differentiated needs-orientation.

 Problems of organizational Culture, Lack of internal integration, it is the process during

which a common language is defined, reward systems are set up, and status relations are
clarified. This common language constitutes a common culture, which everybody works from.

 Problems of Team Organization, Practice of team organization is a structure and working

method that complies with existential, contextual and pragmatic needs of current and future
companies are not widely cultured in the bank.

 Problems of implementation of bottom up management style:-Only top down management

style in OIB from the very beginning

 Problem of conflict management:- How to resolve conflict among the staffs

 Problems of Organizational Identity:-Identity contributes to separating the organizations

employees from the others which contributors to create calmness and stability internally in the
organization. Conversely it may be argued that if a core is too firm the organization will lose its
possibility to keep peace with development and changing according to market and competitors.

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Chapter 2

2.1 Literature

2.1.1 Top-Down Management

In recent years, top-down management has been viewed less favorably than other styles of
management. However, sometimes a top-down management style is essential to the success of a
project.

Projects that have tight deadlines or involve multiple departments require a centralized form of
leadership that team-based management styles simply can't offer. Although input from a broader
team of stakeholders may be helpful, time constraints and practical concerns make broad-based
input impossible.

The keys to successfully utilizing a top-down management style are clarity and decisiveness. As the
manager, it is important to clearly communicate your expectations to each person who has a role to
play in the project. When communicating expectations, you should be as specific as possible since
ambiguity opens the door for potential failure.

Likewise, top-down management requires the manager to be decisive, yet willing to make
adjustments when circumstances change. If you hesitate or falter in your decision-making
responsibilities, your employees may view it as a sign that their confidence in your leadership
ability has been misplaced.

2.1.2 The Problems of Top-Down Leadership in Organization

Given the diversity of beliefs and the passionate intensity of opinions, is there any right answer for
how organizational change is accomplished? Is it dictated, or facilitated? Mandated or guided?
Driven or led? And is there a single meaningful answer?

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Some of the greatest innovations - not just of our lifetime, but throughout the ages - are the products
of a select few individuals seeing, understanding and believing a truth where all others saw fallacy,
lies and heresy. Any radical change to the established order of the world started with a handful of
iconoclasts who dared to look at the world through a different lens. They saw the world differently,
and refused to accept a reality out of lockstep with their convictions, merely because theirs was the
sole dissenting voice in a world of conformity.

Changing the world requires an ability to embrace a vision writ large - very large. Creativity is the
inspired re-ordering of the familiar into something new, and the foreign into something of value. It
requires a mental remove from today's problems and issues, and an imagining of a broader future
that is nothing more than dreams - but with a will to turn those dreams into a reality. Can we as a
collective group step back from our day-to-day challenges, problems and concerns, and see a
broader vision that can exist only because we will it into being? Can we step back and see the
forest, when our daily functions require intimacy with not trees but bark?

But if the collective is the driver of corporate innovation, why is it the actions of individuals that
seem most worthy of attention? Appointments of CEOs have massive influences on stock prices -
up and down. Corporate performance is often described as a product of one individual's leadership.
A succession plan - or failure to implement one - is regarded as a bellwether of subsequent
corporate performance. The success of organizations like Coca-Cola, General Electric and IBM is
not considered a product of the thousands of people they employ, but of the individual leadership
qualities of Goizueta, Welch and Gerstner.

And yet leadership in a vacuum isn't leadership at all. What impact can any CEO have, speaking to
an empty room? It is the people that work for an organization, and their willingness to accept,
embrace and further a leader's vision, that ultimately determine results. Yet the most common
measure of an organization is seldom the quality of its staff, and all too often the quality of its
leaders.

Leadership is a key quality in successful organizational change. Innovation is equally critical. The
bodies responsible for these disciplines, however, just might be mutually exclusive.

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To quote an esteemed innovator of his own time, the playwright George Bernard Shaw, "The
reasonable man adapts himself to the world; the unreasonable man persists in trying to adapt the
world to him. Therefore, all progress depends upon the unreasonable man.

Top-Down vs. Bottom-Up

In a top-down approach, strategic direction, policy and planning occur at or just below the highest
level of a company. For example, a company's board of directors may develop and pass down its
expectations in the form of strategic plans. From the strategic plans, company management
develops the policies and action plans required to meet the strategic goals and passes them on down
to the line management and supervisors. In a bottom-up organizational approach, a company
develops its policies, plans and directions from ideas, suggestions and solutions contributed from all
levels of the company, inclusively encouraging employee participation in decision-making,
problem-solving, and strategic planning.

The Top-Down Organization

A top-down management approach is more common in deeper or more vertical organizations that
produce a specific range of products or services that don't vary significantly from run to run, such as
an automobile or a refrigerator. On the other hand, a bottom-up organization tends to be flatter in
structure, with most or all employees reporting to one or a few top-level managers. A bottom-up
approach is common to those companies that produce products that involve a high degree of
creativity and design flexibility, such as software, websites or custom-designed products.

In a top-down organization, the policy and strategic goals of the company emanate from the
highest-level of the company, either the board of directors or the company's chief executive officer
(CEO). At the next level down, the strategic goals, which typically detail the vision the strategic
planners have for the company in the foreseeable future, are translated into tactical plans. A tactical
plan defines the specific metrics and organizational changes that must be achieved by each
organizational unit (such as operations, sales, etc.) to meet the specified strategic goals. The tactical
plans are then broken down into operational plans for each of the company's operational units (such
as manufacturing, purchasing, etc.). From the operational plans, each line supervisory or foreperson
can define the specific objectives, quotas, and productivity goals for their operational unit (such as
drilling, plating, etc).

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2.1.3Advantages and Disadvantages

The advantages of a top-down management approach are that the direction and activities of a
company are focused on a specific set of objectives and goals and, because all of the company's
operational plans are derived from its strategic plan, it is easier to identify and correct any weak
points in carrying out the plans. A disadvantage of this approach is that the organization may lack
the ability to implement or benefit from the knowledge and experience of its employees on the
lower levels.

2.1.4 Top-Down in Use

If a company produces the same types of products or provides the same basic service consistently, a
top-down management approach is probably already in place. As a company grows larger in terms
of its structure, scope and number of employees, it is either already in some form of a top-down
management approach or is in the process of changing its approach to a top-down form. Many
companies have evolved the top-down management approach into a hybrid that applies some of the
bottom-up principles to the lower levels of the organization structure.

2.2 ORGANIZATIONAL CULTURE

Organizational culture is the set of shared beliefs, values, and norms that influence the way
members think, feel, and behave. Culture is created by means of terminal and instrumental values,
heroes, rites and rituals, and communication networks. The primary methods of maintaining
organizational culture is through the socialization process by which individuals learn the values,
expected behaviors, and social knowledge necessary to assume their roles in the organization.
Sometimes an organization determines that its culture needs to be changed. The change cycle
includes the following components: external enabling conditions, internal permitting conditions,
precipitating pressures, triggering events, cultural visioning, culture change strategy, culture change
action plans, implementation of interventions, and reformulation of culture.
How important is it for a leader to understand an organization’s culture in order to bring about
improved results? Every organization has a culture that can have a significant influence on the
attitudes and behaviors of organization members. The competencies and values of employees and
leaders play a key role in determining the effectiveness and success of an organization.

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In this article, I examine the concept of organizational culture and how cultures are created,
maintained, and changed. I begin with a brief overview of what organizational culture is followed
by four distinct culture phenotypes.
The concept of organizational culture was first noted as early as the Hawthorne studies (Mayo,
1933; Roethlisberger & Dickson, 1939), which described work group culture. It was not until the
early 1980s, however, that the topic came into its own. Several books on organizational culture
were published, including Terrence Deal and Allan Kennedy’s Corporate Cultures (1984), William
Ouchi’s Theory Z (1981), and Tom Peters and Robert Waterman’s In Search of Excellence (1982).
These books popularized organizational culture, and researchers began in earnest to study the topic.
Organizational theorists indicated that these cultures were real. They acknowledged that
organizations have personalities just like people. For example, organizations can be flexible or
rigid, supportive or unfriendly, innovative or conservative. Organization theorists documented the
important role that culture plays in the lives of organization members. When you tell people where
you work, they will ask you: What is it like there? The description you give likely will have a lot to
do with the organization’s culture. In calculating your response to the question, you will describe
the kinds of people who work at your school/school district. You will describe the work atmosphere
on a typical day. You will describe the facilities in your work-place and how you feel people are
treated. You will describe what it is that defines “success” at your school/school district. These
responses give clues that help outsiders understand what your school/school district’s culture is
really like. To provide you with a more complete understanding of organizational culture, it is
necessary to define the concept in more detail. Once an organizational culture is created, a number
of mechanisms help solidify the acceptance of the values and ensure that the culture is maintained
or reinforced (often referred to as organizational socialization).
Organizational culture is the set of shared beliefs, values, and norms that influence the way
members think, feel, and behave. Culture is created by means of terminal and instrumental values,
heroes, rites and rituals, and communication networks. The primary methods of sustaining
organizational culture is through the socialization process by which individuals learn the values,
expected behaviors, and social knowledge necessary to assume their roles in the organization.
Sometimes an organization determines that its culture needs to be changed. The change cycle
includes the following components: external enabling conditions, internal permitting conditions,

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precipitating pressures, triggering events, cultural visioning, culture change strategy, culture change
action plans, implementation of interventions, and reformulation of culture.

2.4 Change

The answer to this question should be quite simple. After all, recent research has shown that
organizations undergo major change about once every three years, and that within that cycle of
major change is an almost constant swirl of minor change.

Major change can include mergers, redundancies, re-structuring or new working practices, while
minor

Change can mean anything from the introduction of new training courses or company policies to
new canteen facilities or travel arrangements. Change often alters our routine, challenges our
perceptions and makes us reflect on how things are done. Change is usually characterized by a
desire to improve things – whether it’s cash flow, products or processes. Employees often feel
caught between the two cycles of change, expected to be able to instantly adapt to whatever comes
their way. Employers often find it difficult to focus on processes like employee communication and
engagement, when faced with constant planning and reviews of products or performance. They may
not even always be aware of the imminent change.

How we react to change often depends on whether we see it coming and how many people it
affects. Change is either:

Planned or unplanned – planned change might include an office move or the introduction of flexible
working, while unplanned change might include layoffs or redundancies brought about by an
economic downturn

Individual or organizational – some change largely affects individuals, such as a new job
description or individual redundancy, while other change, such as an office move or company re-
branding, affects the whole organization.

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External pressures – such as changes in global markets, new competitors or technology,
government legislation and customer feedback.

Internal pressures – such as the need to review policies and procedures, accommodation issues, pay
structures and employee feedback.

A certain degree of pressure is an essential part of working life for many organizations – it can be
often be a motivating factor. Change often starts when pressure reaches a tipping point and
employers realize that something needs to be done. For example, if a competitor launches a rival
product you may be forced to respond if your own sales figures are adversely affected.

Force field analysis (see Appendix 2, p29) is widely used to understand and manage change. In
force field analysis, change is characterized as a state of imbalance between driving forces (such as
changing markets or new personnel) and restraining forces (such as cultural inertia or fear of
failure).

2.4.2 HOW TO MANAGE CHANGE

As an employer you may see the pressure points developing between conflicting forces. It is often
best to act quickly to solve a problem. If you do nothing – and the pressure becomes too great, or
goes on for too long – it can cause organizational stress and undermine your productivity.

2.4.3 Organizational stress

The HSE defines stress as “the adverse reaction people have to excessive pressures or other types of
demand placed on them”. This also applies to organizations.

2.4.4 Why pro-actively manage change?

You need to pro-actively manage change for the following reasons: economic survival. Change is
not usually a choice but a necessity. Developing new products or retraining staff could keep you
ahead of your competitors.

Accountability Effective change management gives you the chance to explain, to both internal and
external customers, what you are going to do and why employee wellbeing. Health and wellbeing at

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work is strongly linked to having a degree of control over our job and how it is done. Giving
employees a voice in how change is managed can help maintain their sense of wellbeing
2.5 Qualities of a Manager

Integrity

One of the most important things a manager must remember is that his or her actions, and not
words, set the modus operandi for the team. Good leadership demands commitment to, and
demonstration of, ethical practices. Creating standards for ethical behavior for oneself and living by
these standards, as well as rewarding those who exemplify these practices, are responsibilities of
leaders. Leadership motivated by self-interest does not serve the well being of the team. Leadership
based on integrity represents nothing less than a set of values others share, behavior consistent with
values and dedication to honesty with self and team members. In other words the leader "walks the
talk" and in the process earns trust.

Enthusiasm

Plain and simple, we don't like leaders who are negative - they bring us down. We want leaders
with enthusiasm, with a bounce in their step, with a can-do attitude. We want to believe that we are
part of an invigorating journey - we want to feel alive. We tend to follow people with a can-do
attitude, not those who give us 200 reasons why something can't be done. Enthusiastic leaders are
committed to their goals and express this commitment through optimism. Leader ship emerges as
someone expresses such confident commitment to a project that others want to share his or her
optimistic expectations. Enthusiasm is contagious and effective leaders know it.

Empathy

What is the difference between empathy and sympathy? Although the words are similar, they are, in
fact, mutually exclusive. According to Norman Paul, in sympathy the subject is principally
absorbed in his or her own feelings as they are projected into the object and has little concern for
the reality and validity of the object's special experience. Empathy, on the other hand, presupposes
the existence of the object as a separate individual, entitled to his or her own feelings, ideas and
emotional history (Paul, 1970). As one student so eloquently put it, "It's nice when a project leader
acknowledges that we all have a life outside of work."

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Competence

Simply put, to enlist in another's cause, we must believe that that person knows what he or she is
doing. Leadership competence does not however necessarily refer to the leader's technical abilities
in the core technology of the business. As project management continues to be recognized as a field
in and of itself, leaders will be chosen based on their ability to successfully lead others rather than
on technical expertise, as in the past. Having a winning track record is the surest way to be
considered competent. Expertise in leadership skills is another dimension in competence. The
ability to challenge, inspire, enable, model and encourage must be demonstrated if leaders are to be
seen as capable and competent.

Ability to Delegate Tasks

Trust is an essential element in the relationship of a leader and his or her team. You demonstrate
your trust in others through your actions - how much you check and control their work, how much
you delegate and how much you allow people to participate. Individuals who are unable to trust
other people often fail as leaders and forever remain little more that micro managers, or end up
doing all of the work themselves. As one project management student put it, "A good leader is a
little lazy." An interesting perspective!

Cool Under Pressure

In a perfect world, projects would be delivered on time, under budget and with no major problems
or obstacles to overcome. But we don't live in a perfect world - projects have problems. A leader
with a hardy attitude will take these problems in stride. When leaders encounter a stressful event,
they consider it interesting, they feel they can influence the outcome and they see it as an
opportunity. "Out of the uncertainty and chaos of change, leaders rise up and articulate a new image
of the future that pulls the project together." (Bennis 1997)And remember - never let them see you
sweat.

Team-Building Skills

A team builder can best be defined as a strong person who provides the substance that holds the
team together in common purpose toward the right objective. In order for a team to progress from a

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group of strangers to a single cohesive unit, the leader must understand the process and dynamics
required for this transformation. He or she must also know the appropriate leader ship style to use
during each stage of team development. The leader must also have an understanding of the different
team players styles and how to capitalize on each at the proper time, for the problem at hand.

Problem Solving Skill

Although an effective leader is said to share problem-solving responsibilities with the team, we
expect our leaders to have excellent problem-solving skills themselves. They have a "fresh, creative
response to here-and-now opportunities and not much concern with how others have performed
them. (Kouzes 1987)

2.6.Motivation
Just like any other word, there are variations of definitions to describe a concept. Motivation too has
many different definitions, but it is important to focus on those that are related to the workplace.
Understanding exactly what motivation is will help managers decide what actions to take to
encourage their employees. The definition of motivation starts with the root word, motive.
Webster’s Dictionary defines motive as, something that causes a person to act. Therefore,
motivation can be defined as, the act of providing motive that causes someone to act (Shanks, 24).
In other words, according to Nancy Shanks, motivation causes someone to act and someone else
cannot make someone motivated. It is the discretion of the person to decide if they are going to be
motivated or not. Motivated and unmotivated are not opposites, but instead, there are determining
factors that could cause someone to be unmotivated, such as life events and attitudes towards a
specific job. With relation to the workplace, Ray Williams, who writes for Psychology Today,
defines motivation as, “predisposition to behave in a purposeful manner to achieve specific, unmet
needs and the will to achieve, and the inner force that drives individuals to accomplish personal
organizational goals” (Williams). A person becomes motivated in order to achieve their own
personal goals as well as the organizational goals. The more motivated an employee is, the more
likely they are to have organizational commitment and identify themselves with the organization.
This will meet some of the unmet needs, and connect them with the organization. If willing, the
manager is able to give the employee incentives to meet their own goals and the goals set by the
organization. Richard Ryan and Edward Deci, from the University of Rochester, agree that

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motivated means that the person is moved to do a particular act (Ryan and Edward, 54). The
authors describe motivation as, the “orientation of motivation concerns the underlying attitudes and
goals that give rise to action” (Ryan and Edward, 54).

Although the words of the definitions might be different, they all are describing the same
concepts. Motivation is the act of getting someone to act on a situation. This definition will be
important throughout the rest of the paper due to the constant use of the word. When referring to the
word motivation, the above definition will be used. Now that there is an understanding of what the
word means, it is important to understand the studies that have been conducted and the findings that
have come about because of the studies.

Theories of Motivation

There are many different theories that try and help explain motivation. Scientists have been
studying the topic of motivation for over a century and have made tremendous progress for
explaining motivation which can be interpreted into the workplace. The following are some theories
that have been proven and accepted by society. These include Maslow’s hierarchy of needs,
Herzberg’s two-factor theory, different types of motivation, such as intrinsic and extrinsic, and the
PERMA model.

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Chapter three

3.1. Recommendation

Based on the problems of the top management and structure of the bank, the management of
Oromia international bank s.c has to use, the following recommendations here under.

 The banks must use modern management system, currently as I observe there is only top down
management style but it is not a modern management system so the top management has to use
the mixture of Top down and bottom up management system. All the subordinates’ staffs have
to have an option to communicate directly with top management.
 The top management has to manage change properly for the reason of economic survival.
Change is not usually a choice but a necessity. Developing new services or retraining staff could
keep the bank ahead of its competitors effective change management gives the bank the chance
to explain, to both internal and external customers, what the bank is going to do and why
employee wellbeing. Healthy and wellbeing at work is strongly linked to having a degree of
control over our job and how it is done. Giving employees a voice in how change is managed
can help maintain their sense of wellbeing organizational effectiveness. Everyone expects
teething problems with new systems but rushed, unplanned change can seriously damage the
confidence of staff and customers.
 The top management has to explain properly the banks culture properly for its internal and
external customers. Culture is the set of shared beliefs, values, and norms that influence the way
members think, feel, and behave. Culture is created by means of terminal and instrumental
values, heroes, rites and rituals, and communication networks.

 The top management has to be creating a strong organizational identity. Identity contributes to
separating the organizations employees from the others which contributors to create calmness
and stability internally in the organization. Conversely it may be argued that if a core is too firm
the organization will lose its possibility to keep peace with development and changing
according to market and competitors.

 The bank has to use the modern conflict management and Employees motivation system for its
competition in the market, mostly in any organization managements are undermining the value

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 Organizational design, development and change management 2020
of employee motivation and conflict management. But they are critical issues to create a strong
management in the bank.
 The best structure of the bank is here under that I want to recommend the top management of
Oromia international bank s.c

Best Organization structure

Board

Internal Audit President Risk Mgt.&

Compliance Dep’t
Audit Chief Operating Officer
Division Complianc
n e Division
V/P IFBW V/P Legal IT Dep’t International
Cooperativ Operation Dep’t Banking
e Support and Risk Dep’t
IT &
System Credit
Audit Risk
IT
Division Alternativ Support
Human Material & Planning Accounting Branch Credit
and Operatio Dep’t e Banking
Resource Service & Treasury Asset –
Mgt. Dep’t Dep’t Business n
Dep’t liability and
Dev’t ICT & Operation Risk
Credit Cooperat
Customer Acct Infrastructur
Follow up ive
Training Treasury Division Banking
e Division
Marketing & &
& Dev’t Property & Division Division
public Contract Incoming and
Division Gen. service Out going
relation
div Issue System & Division
Accts & Division Credit database
Reconciliatio Analysis Admin div
Staff & Planning & n Division Division
Benefit Research
Divisio Procuremen Division IT
t Division Shareholder Branches Collateral Security Import Export
Accts Division Value Mgt Division
Division

CONCLUSION

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 Organizational design, development and change management 2020
Oromia International bank s.c is a huge organization in its capital, structure, branch’s, and staffs
in local Bank industry. This organization has a good profit for the last ten years annually registered.
So this organization is the seventh high tax payer in bank industry.

Based on my finding, I have got real and tangible information. OIB currently has no strong
management, culture management, Identity management, there is only top down management
system, poor conflict management and poor staff motivation system and the structure of the bank
must be revised.

The bank has to implement a modern management system to be competitive, economic survival,
to be a future organization and to be the most preferred bank in Africa, to meet the banks vision.
Now a day’s Modern organizations are running through change process, mixture of top down and
bottom up management style, with good motivational theory and with best structure of the bank,
building organizational culture.

So, based on that I state all management problems of the Oromia international Bank s.c, I
recommend what needed to the bank, the top management must use all the recommendation to
revise their management system and to perform their task to wards to banks goal.

3.2 References

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 Organizational design, development and change management 2020
1. John M. Ivancevich, Peter Lorenzi, and Steven J. Skinner, with Philip
B. Crosby, Management: Quality and Competitiveness (Boston: Richard
D. Irwin, (1996), 254.
2. Raymond J. Aldag and Timothy M. Stearns, Management (Cincinnati: South western, (1987).
3. Frank Shippes and Charles C. Manz, “Employee Self-Management
Without Formally Designated Teams: An Alternative Road to Empowerment,”
Organizational Dynamics (Winter 1992): 48–61.
4. Tom Peters, Thriving on Chaos (New York: Knopf, 1988).
5. Frank D. Borsenik and Alan T. Stutts, the Management of Maintenance and Engineering Systems
in the Hospitality Industry, 4th ed. (New
York: John Wiley & Sons, Inc., 1997).
6. Robert D. Dewar and Donald P. Simet, “A Level-Specific Prediction of Spans of Control
Examining the Effects of Size, Technology, and
Specialization,” Academy of Management Journal (March 1981): 5.
7. J. Barton Cunningham and Ted Eberle, “A Guide to Job Enrichment and Redesign,” Personnel
(February 1990): 56–61.
8. D. Dann and Timothy Hornsey, “Towards a Theory of Interdepartmental
Conflict in Hotels,” International Journal of Hospitality Management,
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9. Brian Dumaine, “The New Non-Managers,” Fortune, February 22,
1993, pp. 80–84; and “A Checklist of Qualities That Make a Good
Boss,” Nation’s Business (November 1984): 100.

10. Deal, T., & Kennedy, A. (1984). Corporate cultures: The rites and rituals of corporate life.
Reading, MA: Addison-Wesley. Frost, P. (1991). Reframing organizational culture. Thousand
Oaks, CA: Sage.

11. Jones, G. R. (2010). Organizational theory, design, and change (5th Ed.). Upper Saddle
River, NJ: Prentice Hall.
12. Schermerhorn, J. R., Hunt, J. G., & Osborn, R. N. (2008). Organizational behavior (10th
Ed.). New York, NY: Wiley.Ramlall, Sunil. "A Review of Employee Motivation Theories and
Their Implications for Employee Retention within Organizations." Journal of American Academy
of Business (2004): 52-63. Print.

13. Ryan, R., and Edward L. Deci. "Intrinsic and Extrinsic Motivations: Classic Definitions and
New Directions." Contemporary Educational Psychology 25.1 (2000): 54-67.
Http://www.idealibrary.com. University of Rochester. Web. 17 Jan. 2012.

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