Malaysian Banking Landscape Analysis

This assignment requires an in-depth analysis of the Malaysian banking sector. Students need to examine various aspects like Islamic banking's growth, service innovation, consumer preferences, and the impact of technology. The provided articles offer insights into these themes, encouraging critical evaluation and a comprehensive understanding of the current trends shaping the Malaysian banking industry.

Running head: PRINCIPLES OF MANAGEMENT FOR NON BUSINESS
Principles of Management for Non Business
Name of the Student:
Name of the University:
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Contents
Introduction to MayBank.................................................................................................................2
Explanation of the organizational structure.....................................................................................4
Explanation on how planning, organizing, leading as well as controlling (PLOC) contributes to
the success/ failure of Maybank......................................................................................................5
Recommendation on how the management of Maybank can improve the growth of the company
.......................................................................................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

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Introduction to MayBank
Maybank is one of the largest bank of Malaysia by total capital assets as well as
capitalization. It is ranked 95th in the list of top 1000 world bank among the bankers in 2015.
Moreover, it is ranked 362 among Forbes Global 2000 Leading Companies. It can be said that
Maybank is one of the largest public sector bank that is listed on Bursa Malaysia and the
Malaysian stock market. The bank has an international network of 2400 branches and it has more
than 20 offices in more than 20 countries. The main aim of the company is to humanize the
financial services by having a proper pricing and other fair policies, advising the customers on
the basis of their needs and experiences, providing people with better access to financial services
and helping the people of the community. The vision of the company is to help in the
advancement of the Asian countries. The new logo of the bank represented the refreshed
corporate identity of the bank and thus it indicates that people must be considered close to their
heart. It also indicated that a noble and majestic rendition of the tiger will help to demonstrate the
leadership and strength of the bank in the entire region. The bank operates corporate banking as
well as business banking and it has more than 2500 automated teller machines in different
countries (Maybank, 2018).
In 1990, Maybank has taken advantage of the new Malaysian offshore banking Act that
has been passed in that particular year and this will help to set the new operation processes. The
company has also tried to set up a series of new subsidiaries and this included Maybank
International Ltd. that offers personalized as well as confidential banking services in different
countries. The bank has also tried to develop its insurance market and thus launched the
Maybank General Assurance Bhd. In the later half of 1990s, it began to give better effort for

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increasing its presence in other Southeast Asian regions. It has set up its subsidiaries in different
countries and thus opened new branches in different locations. Maybank has captured a small
market during that that period and there are three branch offices in different states. It has also
entered Philippines in 1997 after the government of Philippines has passed the legislation act
allowing the foreign banks to capture or gain majority power in the organization. There were
mergers with different banks and thus this has allowed Maybank to maintain its position with the
other top banking group.
It can be said that Maybank is considered to be the first bank that has entered the Chinese
mainland and thus open up their branch respectively in Shanghai. In the later half of 2000, it has
laid out a strategy to establish the bank to be one of the leading player in the ASEAN market
(Maybank, 2018). This has also allowed the bank to enter into other markets and thus break the
regional economic barrier of these country. Moreover, Maybank is also trying to enter into other
areas of financial services with the setup of Mayban Takaful Bhd. This paper will highlight the
organizational structure of Maybank and it will also discuss the organization, planning, leading
and controlling that will help in the contribution and development of Maybank. Further,
recommendations are also provided on how the management will try to improve the growth of
the company.

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Explanation of the organizational structure
Fig-Organization structure of Maybank
Source-www.maybank.com
The corporate structure of the bank is divided into commercial banking, insurance,
investment banking, asset management and other management services. In the commercial
banking section, the Islamic bank was successful in the entire management.

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MaybankInternational Limited and MCB Limited was successful in these areas. They were
managed by the board of directors and the CEO at different levels of organizational hierarchy.
The insurance sector and the investment banking sector were also managed by the CEO of the
company and each branch had different officers and chief officers who were associated with the
charge of taking care of different departments. The head of the group for financial services is
responsible for the growth, strategy as well as the performance of the CPS which covers business
banking, SME segments, consumers as well as the value of shared sales of the organization. The
head of the global banking service is also responsible for the growth and performance of the
global banking system (Mahdzan, Mohd-Any & Hamzah,2017). The chief strategy officer is also
responsible for execution and management of the finance across the bank. Under the corporate
secretary as well as the legal, compliance and Director General, there are several sub divisions
such as strategic planning, internal auditor, corporate communication as well as community
distribution. On the other hand, there are several sub divisions under the director and the risk
management division such as the operational risk and business continuity, credit review
management, retail credit policies as well as portfolio and traded as well as non-traded risk. On
the other hand, under the global banking and the director associated under this bank, transaction
banking, local multinationals as well as corporate and multinational banking. Moreover, the
financial supply chain management and the international strategic business, special assessment
and business banking quality are included under business banking (Jie, et al., 2016).
Explanation on how planning, organizing, leading as well as controlling (PLOC)
contributes to the success/ failure of Maybank.
The primary challenge faced by the manager of every organization is to solve the
problems in a creative way. It can be said that PLOC model will be beneficial in classifying the

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different activities carried out by the manager and it is considered as an useful way to achieve the
organizational goals. Planning is considered the main function of the management and it involves
setting out proper objectives and determining the ultimate course of action for their achievement
of these objectives. The managers must be aware of the different environmental conditions that
are faced by the organization and it will help in forecasting the future conditions. Therefore, it is
important for the managers to be better decision makers.
The process of planning involves several steps and this process starts with environmental
scanning. The planners must be aware of the different types of critical contingencies that are
faced by MayBank in terms of different economic conditions, customers as well as the
competitors (Kadri, 2016). It is also vital for the planners to depict the future of the organization.
The planners must be able to establish the objectives and therefore proper statements must be
delivered to the customers. It is also vital to identify the course of action for achieving the
different objectives. The planners must try to evaluate the best course of action for achieving the
different objectives. It is important to formulate the different steps and to ensure that these steps
are effectively implemented in a better way. There are different types of planning process such as
strategic planning, tactical planning and operational planning (Hong, Cheong & Rizal,2016).
Strategic planning involves analyzing the different opportunities as well as strength and
weakness of the organization. It will help in the determination of how the positions in the
organization can be compared effectively in the environment. In tactical planning, planning takes
place for one to three years and it is designed to develop the concepts in a better way and to
implement the plan accordingly. It can be said that the middle level managers of Maybank are
involved in these tactical process of planning. The operational planning process will assume the
existence of Maybank or the organizational goals and objectives so that is becomes easier to

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achieve them. The process of operational planning is considered to be short ranged and it is
designed in such away so that specific steps and actions are to be taken to design them in a
proper way (De Jesus & Torres,2017).
It can be said that organizing is also an important function of management and it helps in
the development organizational structure and allocation of human resources to ensure the
fulfillment of objectives. The structure of Maybank can be considered as the framework within
which various efforts will be co-ordinated in a better way. These structure is represented with the
help of an organizational chart and thus it provides a graphic representation of the various
commands within the organization (Mohamad, 2015). Moreover, it can be said that different
decisions about the structure of the organization are generally referred to as organizational
design. It can also be said that organizing involves the process of designing the job roles of the
individuals and thus this will help to cluster in a much better way compared to other
departments. There are different layers in the organizational hierarchy of Maybank and they use
different methods of departmentalization. Different job designs are based on the principles of
division of labour and it is assumed that the more narrower the job content, the more proficient
will be the individuals in performing their job (Krishanan, Khin&Teng, 2015).
In the process of leading, the various formal as well as informal structures will help in the
inspiration of the actions that are taken by others. The managers are considered to be the
effective leaders and thus their sub-ordinates will be enthusiastic about the efforts to attain the
different objectives and goals of the organization. There are certain behavioural science that
helps to predict that it is important to understand the different functions of the managerial
process. The various studies associated with job as well as the research process based on
personality indicates the effectiveness of the managers and how they will lead the sub-ordinates.

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It is important to understand how effective the managers as well as the other sub-ordinates will
be effective in handling the responsibilities. This will be effective if the managers understands
the personalities of the individuals, values, emotions and their attitudes. The different theories of
motivation will help the workers to put forward the different productive efforts in the
organization (MohdThasThaker et al., 2016).
The different process of controlling will also ensure that performance will not deviate
from the different standards in the organization. There are certain steps where it is important to
compare the actual performance against the different standards in the organization. Moreover,
measuring the performance standards as well as taking better and corrective actions are
important in the organization. The function associated with the role of the managers is associated
with the work related activities in the organization. It is important for effective control as well as
the for the existence of different plans in the organization and therefore proper planning is
necessary to incorporate the changes in the organization. Generally there are two traditional
methods of cost control in the organization and these are associated with the budget as well as
performance audits in different organization. Similar is the situation in case of Maybank. It is
important for a proper budget audit and thus this will be beneficial in the provision of
information in respect to the needs of the organization. On the other hand, the performance audit
will also help the managers of the Maybank to determine the actual figures which are considered
as a part of reflection in the organization. It can be said that these budget control methods are
considered in terms of different financial criteria’s as well as it is the responsibility and duty of
the managers to control the operational as well as production process associated with these
changes. It can be said that the different functions of management associated with leading,
planning, controlling are considered as the most important role of managers. There has been

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tremendous changes in the environment that are faced by the managers to perform well in the
organization (Ariff, 2017).
Problems faced by Maybank
1. Maybankhas also faced several challenges in managing human capital and thus it has
become important to prepare their employees to fulfill the key roles of the organization and to
carry out their job in a responsible way. The bank is trying to build a pipeline pool and this will
range from the entry level staff to the higher level managers who are involved in the
organization. The employees must also be ready with a higher level of capability in different
branches of the bank. The employees must be ready with different levels of capability processes
that are crucial in different regions. It is also vital for the multiple support programmes to help
the employees to ensure the customer as well as the operational process in the
organization.Maybank has also faced problem in digital journey as thus it has become difficult to
integrate seamlessly in the new technological system and thus impact the bottom line process in
the organization (Siew, Fai & Hoe, 2017).
2.The employees are not satisfied with the wages and the performance bonus payed by
Maybank. The employees who has been working for a long period of time feel that they are
unimportant and therefore go on indefinite strike. This forces them to demand for higher wages
and salaries and thus there chaos between the employees and the banking organization. Thus, this
issue plays an important role and it needs to get resolved within a proper span of time.
3. Moreover, the formation of multiple union has also led to chaos among the internal
functioning of the bank. This is due to the inefficiency of the employees to work smoothly within

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the organization. The relationship between the employee-employer would be affected to a huge
extent because of this problem (Tan, Hamid & Chew,2016).
Recommendation on how the management of Maybank can improve the growth of the
company
The management must try to focus on building the capability level that is to be
considered from the perspective of talent management as well as the core banking principles in
the organization. Various progarmmes associated with improvement of culture as well as raising
the effectiveness of the employees are also crucial in the development of the organization. It is
vital for the enhancement of different components that are received by the staff and thus it helps
in the execution process in the organization. The implementation of the pay level policies and the
launch of different employee share scheme are considered to be the long term component in the
pay mix of the reward policy in the organization. Although these processes are considered to be
much extensive, it is important for the managers to help in improvement of the productivity
processes as well as managing the capability in the organization. The customers must also be
given access to Maybank online banking services and they must also offer better services. It is
vital to train the employees on different questions associated with online banking and thus help
them to get a clearer idea of the banking norms and facilities. The bank must also try to create
different advertisement processes in this case and thus keep the customers attracted. Maybank is
also trying to create a people focused approach in the technological deployment and thus this
does not help in merely satisfying the customers.
There are some important factors that helps in the process of deployment as well as
between end-to-end integration in the different processes in the organization. In terms of process

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designing, it can be said that it is vital to collaborate and employ the right people with the right
set of skills in the organization. Maybank has established the central pillar behind the process of
digital innovation and it considers the different types of technological processes that needs to be
deployed in these case. Maybank is conscious about the different technological processes and it
considers these process as obsolete and thus it needs further changes in the organization. The
bank must also try to integrate the different processes of integration that will help to support the
different technologic al processes as well as ensure that it is in accordance with the different
organizational goals. There must also be seamless integration in the process and establish the
different process of growth in the organization (Yunus, Kamaruddin&Embong, 2017).
Conclusion
Therefore, it can be said that the process of online banking in Maybank is considered to
be one of the easiest way in the banking operational process as well as it saves the time as well as
the effort of the people who are involved in working with the organization. This also layed an
impact on the banking structure and thus it affected the business of the companies as well as
facilitated the transaction process of the organization. The transformation of the IT processes has
helped in aggressive as well as progressive changes of Maybank. Moreover, the data mining
process also needs to be considered and addressed accordingly. There must be high level of
appreciation process and this is considered to be a growing portion in the workforce level in
terms of sales as well as services in the organization.

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References
Ariff, M. (2017). Islamic Banking in Malaysia: The Changing Landscape. Institutions and
Economies, 1-13.
De Jesus, F. L. B., & Torres, E. A. (2017). Analysis of the ASEAN Banking Integration
Framework: the Philippines as a looking glass for consumer preference. Journal of
Global Entrepreneurship Research, 7(1), 24.
Hong, T. L., Cheong, C. B., & Rizal, H. S. (2016). Service Innovation in Malaysian Banking
Industry towards Sustainable Competitive Advantage through Environmentally and
Socially Practices. Procedia-Social and Behavioral Sciences, 224, 52-59.
Jie, C. T., Yin, L. S., Nadarajan, P., &Ramayah, P. (2016). A REVIEW OF REPUTATION
FACETS OF SELECTED PUBLIC-LISTED COMPANIES IN MALAYSIA BASED
ON REPTRAK™ MODEL. Journal of Human Capital Development (JHCD), 9(2), 1-20.
Kadri, M. H. (2016). Islamic Financial Reporting: Evidence From Malaysia.
Krishanan, D., Khin, A. A., &Teng, K. L. L. (2015). Attitude towards using mobile banking in
Malaysia: a conceptual framework. methods, 11, 12.
Mahdzan, N. S., Mohd-Any, A. A., &Hamzah, Z. L. (2017). Case Study 1: Co-creating Value
with Online Banking Services: The Case of Maybank. In Services Marketing Cases in
Emerging Markets (pp. 5-16). Springer, Cham.
Maybank. (2018). maybank.com. Retrieved 6 February 2018, from
http://www.maybank.com/MaybankAR16/#/home

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Maybank. (2018). maybank2u.com. Retrieved 6 February 2018, from
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