Motivation Issues in Allianz Islamic Bank

This research addresses the issue of motivation among employees in Allianz Islamic Bank and provides recommendations for maintaining a motivated workforce. The research focuses on the theories related to motivation and analyzes the effectiveness of the issue in various areas such as people, financial aspect, marketing, strategy, operations management, and project management. The recommendations include changes in leadership, appreciation of employees, and providing tasks that suit their talents.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author note

1
MANAGEMENT
Table of Contents
Introduction................................................................................................................................2
Background of the company......................................................................................................2
Issue in the organisation.............................................................................................................3
Theories related to the issue.......................................................................................................3
Effectiveness of the problem in various areas............................................................................4
Recommendation........................................................................................................................7
Conclusion..................................................................................................................................8
Reference....................................................................................................................................9

2
MANAGEMENT
Introduction
Every organisation faces with issues that hold the potential to hinder its progress and
ensure that the particular organisation have to make strategic adjustments to overcome the
issue. As pointed out by Peters (2015) the issues can arise from within an organisation or can
be brought in from external factors such as political or economic conditions. The research
addresses such issues that can hamper an organisation and likewise provide recommendations
about the manner in which it can be solved.
The research focuses on Allianz Islamic Bank, a popular bank in Oman
(Alizzislamic.com 2019). The issue that the research addresses is the motivation among the
employees within the bank. Theories and models that are related to motivation like
Herzberg’s theory or Maslow’s hierarchy theory is investigated. The effectiveness of the
issue in various areas such as people, financial aspect, marketing, strategy, operations
management and project management are analysed. Based on the analysis recommendations
are provided that can help Allianz Islamic Bank to maintain a motivated workforce in the
bank.
Background of the company
Allianz Islamic Bank is one of the most popular banks in Oman and is one of the most
fruitful and reputed banks in the country (Alizzislamic.com 2019). Allianz Islamic Bank
obeys the banking rules that are stated in the Islamic banking rules. The bank was set up in
2012 by keeping in mind the association with the Royal Decree No. 69/2012
(Alizzislamic.com 2019). The decree had been involved in amending the laws related to
banking law to include Islamic banking as a part of the business culture.

3
MANAGEMENT
Allianz Islamic Bank is involved in providing customers with an opportunity to be
involved in retail and corporate financing by the use of mobile, visiting the branches and
various other online devices (Alizzislamic.com 2019). The capital that is paid by the bank is
about 100 million Omani Rials out of which the contribution of the public investors is about
40%. Allianz Islamic Bank is an open joint stock banking sector that has been awarded as the
Best Retail Bank in 2015 (Alizzislamic.com 2019).
Issue in the organisation
The issue with bank that is addressed in the research involve the motivation
techniques that are undertaken by the managers of Allianz Islamic Bank. As stated by
Wlodkowski and Ginsberg (2017) it is essential that every organisation identifies the need of
its employees and based on the need ensure that motivation techniques are applied so that
employee satisfaction can take place. In the case of Allianz Islamic Bank, it is necessary that
the bank consider the manner in which motivation of every employee can be maintained so
that it can its growth can continue in Oman (Alizzislamic.com 2019).
Motivation can also earn and ensure support and loyalty of the employees. According
to Ryan and Deci (2017), without the support of the employees, it can be difficult for any
organisation to maintain a competitive advantage in the market. Therefore, it is necessary to
ensure that the problems of the employees are addressed so that effective management and
commencement of work can take place. In this regard, theories related to motivation can be
stated that can help Allianz Islamic Bank to motivate the employees (Alizzislamic.com
2019).

4
MANAGEMENT
Theories related to the issue
In order to ensure that motivation among the employees be prevalent in the
organisations, it is necessary to consider the application of theories and models. One such
theory that can be considered is Herzberg’s two-factor theory. As stated by Herzberg (2017)
this theory focuses on the factors that are associated with the motivation of the employees in
a non-monetary manner. For example, work place environment, job role, behaviour of the
peers, recognition is considered in order to provide motivation to the employees. Bellemare et
al. (2016) is of the opinion that the non-monetary factors play a huge role in motivating
employees and loyalty of the employees based on these factors are said to be everlasting.
On the other hand, the application of Maslow’ needs hierarchy model can be applied
in order to determine the stages that are associated with the motivation of the employees. As
observed by Harrigan and Commons (2015) each of the stages of the pyramid provides an
understanding of the factors that can be associated with the demands and needs of the
employees. In the case of Allianz Islamic Bank, the application of these two factors can help
in understanding the needs of the employees (Alizzislamic.com 2019). It is necessary that the
bank take into account every possible factor that might affect the motivational needs of the
employees.
For example, as per Maslow’s hierarchy needs model, new employees need to be
provided with an assurance of security of the job as well as provide them with an opportunity
to be socialised with the employees. This can account for a health work place environment
thereby providing an opportunity for the application of Herzberg’s two-factor theory.

5
MANAGEMENT
Effectiveness of the problem in various areas
Based on the analysis of the motivational factors and the application of the theories,
impact on the different areas of Allianz Islamic Bank can be analysed. The description of the
areas and its effectiveness are provided:
People: Kulkarni et al. (2016) are of the opinion that motivation affects the people of
an organisation strongly. Therefore, the type of leadership and the performance of the
employees can be associated with the development of motivation in the organisation. It is
necessary to take into consideration the manner in which every person associated with the
development of Allianz Islamic Bank react to the motivational factors (Alizzislamic.com
2019). For example, motivated employees can indulge in creativity and innovativeness within
the organisation. However, the opportunity to be creative or motivated needs to be provided
to the employees so that they can continue with the growth of Allianz Islamic Bank
(Alizzislamic.com 2019).
Financial aspect: The financial aspect of an organisation refers to the growth of the
profit and revenue earned. Menges et al. (2017) is of the opinion that employees that are
motivated tend to shy away from organisational work and therefore, the profitability of the
organisation can be affected negatively. Similarly, in the case of Allianz Islamic Bank, the
financial growth of the bank can be affected negatively owing to the fact that the lack of
motivation may bring down the services provided by the bank (Alizzislamic.com 2019).
Therefore, Kruglanski (2015) stated that the lack of motivation could have a negative impact
on the growth of the bank as well as the ability of it to remain profitable.
Marketing: The marketing dimension of a company can be affected by lack of
motivation, as the loyalty of the customers may not be maintained. The reason is because a
huge turnover of the employees can be reported and customers may tend to distrust the

6
MANAGEMENT
organisation and its products. For Allianz Islamic Bank, the marketing of the bank is based
on the manner by which it can serve the customers (Alizzislamic.com 2019). However,
Alshmemri, Shahwan-Akl and Maude (2017) stated that lack of motivated employees may
lead to an excess turnover and in this regard; the customers may lose trust over the service of
the bank. Negative marketing based on employee turnover can cause major hindrance in the
reputation of the bank.
Strategy: Without the support of the employees, it can be difficult to form strategies
that may lead to organisational success. It is necessary to develop strategies that can help in
the development of a competitive advantage (Einstein, Addams and Roosevelt 2016). In this
regard, for Allianz Islamic Bank the development of strategies that analyses the internal
competence as well as the external environment need to be taken into consideration
(Alizzislamic.com 2019). For example, on a global perspective, Allianz Islamic Bank needs
to formulate strategies that analyses the external environment that affects business
(Alizzislamic.com 2019).
Therefore, the application of models such as PESTEL can help in analysing the
business deals that can be made. However, without motivate employees; it can be difficult for
Allianz Islamic Bank to formulate the strategies (Alizzislamic.com 2019). According to
Sanjeev and Surya (2016), countering the threat of the external environment need to be made
with a strong internal capability and the experience of the employees. Therefore, lack of
motivation among the employees can lead to failure to formulate and implement strategies
necessary for the growth of Allianz Islamic Bank (Alizzislamic.com 2019). The bank can
gain the opinion of the employees in order to formulate effective strategies.
Operations management: The operations management of a banking sector can have
its impact on the supply chain that exists between the bankers and the customers. Neubauer

7
MANAGEMENT
and Martskvishvili (2018) pointed out that operational management issues such as limited
resources or cost pressure can have a negative impact on the development of a bank. Lack of
motivation among the employees can be one of the main reasons behind the rise of
operational issue in Allianz Islamic Bank (Alizzislamic.com 2019). Therefore, the supply
chain system, which includes the steady flow of information from bank to the customers, can
be hindered and can cause problems within the organisations. Therefore, the operations
management of Allianz Islamic Bank can suffer in a similar manner owing to the lack of
employees and miscommunication between the bankers and the customers (Alizzislamic.com
2019).
Project management: One of the effective ways to maintain motivation of the
employees is through amassing massive changes within the organisations. Therefore, for
Allianz Islamic Bank the application of change models such as Lewin’s three-step change
model can be applied to ensure that employees react to the change in a positive manner
(Alizzislamic.com 2019). However, as observed by Cherry (2017) revolt on the part of the
employees due to the change need to be considered and it is necessary that the use of soft and
hard systems approach be implemented for defining the change.
The managers of Allianz Islamic Bank can use soft systems approach by vaguely
defining the changes and by maintaining, a loose framework associated with the business
(Alizzislamic.com 2019). At the same time, application of a hard approach in the form of
providing ideal solution to changes can be provided that can help in the motivation of
employees (Fallatah and Syed (2018). Therefore, it can be said that the changes at Allianz
Islamic Bank can be aligned with the motivational factors as long as the employees are
provided with a rigid idea about the changes (Alizzislamic.com 2019).

8
MANAGEMENT
Recommendation
Based on the analysis of the issues faced by the managers of Allianz Islamic Bank and
the manner in which the issue can have a negative impact on the different fields of the bank,
recommendations can be provided that can help in increasing the motivational level of the
employees. It is recommended that Allianz Islamic Bank formulate changes in terms of
leadership required for the development of the bank. Based on the leadership, motivation of
the employees can be provided by analysing its needs. At the same time, it can be said that
Allianz Islamic Bank can undergo changes in its strategy of developing the internal
capability.
Every employee, senior or junior need to be given proper appreciation and be
provided with an opportunity to continue to be involved in the decision-making activities of
the bank. In this manner, the worth of the employees can be maintained and the non-
monetary factor of motivation can be provided. Along with this, employees need to be
provided with tasks that suit their talents. This can address the Herzberg’s two-factor theory
in which it is stated that every employee needs to be provided with an opportunity to display
their talents based on their field for job satisfaction. Thus, the application of these
recommendations can help Allianz Islamic Bank to keep the employees motivated.
Conclusion
Therefore, conclusion can be made about the fact that motivation is an integral part of
success for every organisation and for Allianz Islamic Bank motivation can help in
maintaining its reputation in the country. Every major negative impact that lack of motivation
may have on the bank can account for the loss of reputation. In this regard, it can be said that
it is important for Allianz Islamic Bank to maintain effective strategies that can help in

9
MANAGEMENT
increasing the motivation among the employees and ensure that Allianz Islamic Bank can
continue with its stature as the number one bank in Oman.

10
MANAGEMENT
Reference
Alizzislamic.com. 2019. Alizz Islamic Bank - Pride In Serving You. [online] Available at:
http://alizzislamic.com/ [Accessed 20 Mar. 2019].
Alshmemri, M., Shahwan-Akl, L. and Maude, P., 2017. Herzberg’s two-factor theory. Life
Science Journal, 14(5), pp.12-16.
Bellemare, M., Srinivasan, S., Ostrovski, G., Schaul, T., Saxton, D. and Munos, R., 2016.
Unifying count-based exploration and intrinsic motivation. In Advances in Neural
Information Processing Systems (pp. 1471-1479).
Cherry, K., 2017. Maslow’sHierarchy of Needs. Dursun, A.(2011). Dede Korkut
Hikâyelerinde Halk Hukuku. Electronic TurkishStudies, 6(4).
Einstein, A., Addams, J. and Roosevelt, E., 2016. Maslow's hierarchy of needs. Pearson
Fallatah, R.H.M. and Syed, J., 2018. A Critical Review of Maslow’s Hierarchy of Needs.
In Employee Motivation in Saudi Arabia (pp. 19-59). Palgrave Macmillan, Cham.
Harrigan, W.J. and Commons, M.L., 2015. Replacing Maslow’s needs hierarchy with an
account based on stage and value. Behavioral Development Bulletin, 20(1), p.24.
Herzberg, F., 2017. Motivation to work. Routledge.
Kruglanski, M.W., 2015. Endogenous attribution and intrinsic motivation. In The hidden
costs of reward (pp. 103-126). Psychology Press.
Kulkarni, T.D., Narasimhan, K., Saeedi, A. and Tenenbaum, J., 2016. Hierarchical deep
reinforcement learning: Integrating temporal abstraction and intrinsic motivation.
In Advances in neural information processing systems (pp. 3675-3683).

11
MANAGEMENT
Menges, J.I., Tussing, D.V., Wihler, A. and Grant, A.M., 2017. When job performance is all
relative: how family motivation energizes effort and compensates for intrinsic
motivation. Academy of Management Journal, 60(2), pp.695-719.
Neubauer, A.C. and Martskvishvili, K., 2018. Creativity and intelligence: A link to different
levels of human needs hierarchy?. Heliyon, 4(5), p.e00623.
Peters, R.S., 2015. The concept of motivation. Routledge.
Ryan, R.M. and Deci, E.L., 2017. Self-determination theory: Basic psychological needs in
motivation, development, and wellness. Guilford Publications.
Sanjeev, M.A. and Surya, A.V., 2016. Two factor theory of motivation and satisfaction: an
empirical verification. Annals of Data Science, 3(2), pp.155-173.
Wlodkowski, R.J. and Ginsberg, M.B., 2017. Enhancing adult motivation to learn: A
comprehensive guide for teaching all adults. John Wiley & Sons.