Report on Leadership & Management at Alizz Islamic Bank (SHR011-6)

This report examines the organizational and sector leadership of Alizz Islamic Bank in Oman, utilizing the Seven Structures and Systems model to analyze its management practices. It identifies the bank's strategies, shared values, hierarchical structure, and operational systems, emphasizing the importance of skills development through the Alizz Islamic Bank's work enforcement centers. The report further explores the impact of transactional and transformational leadership styles on the bank's management and the evolution of its management sectors, highlighting its unique attributes and commitment to sustainable growth. The bank's focus on vision, charisma, strategy, ethics, and distribution, setting it apart from competitors is also discussed. Desklib provides access to this report and other solved assignments for students.

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LEADERSHIP
BY
Name
Professor
Date

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ORGANIZATION AND SECTOR LEADERSHIP
Abstract
This organizational leadership paper identifies Alizz Islamic Bank in Oman, where I work, as the
best-case scenario in describing leadership concepts and to understand the concepts of Seven
Leadership Mindset Theory. The bank is charged with providing corporate and retail financial
solutions through retail branches and online platforms. The bank also employs mobile
applications to reach to its esteemed customers. The Alizz Islamic Bank of Oman bank also
provides financial solutions that are Sharia’ compliant.
Most importantly, the bank was founded as a digital Islamic banking solution in 2012. By the
time it began operation, many banks already existed. However, as time passed, the banking
system has achieved a substantial amount of growth into one of the renowned banks within the
Arab Union. The Alizz Islamic Bank of Oman’s steady expansion is driven by a constant influx
of corporate and retail investments and a large profit margin that it generates through its online
financial assistance endeavors. Throughout the years of its operation, the Alizz Islamic Bank of
Oman has employed appropriate strategies towards meeting its vision and mission. The Alizz
Islamic Bank of Oman’s vision is embedded in the fact that it struggles to be the best banking
system in the world – in the minds and hearts of its customers and workers. Otherwise, the main
aim of Alizz Islamic Bank of Oman is to become a top achieving financial hot-point in the
industry – one of which the corporation has already achieved.
Most importantly, Alizz Islamic Bank of Oman has successfully managed to influence the
mindset of its workers and customers to attain financial benefits. While workers earn their
wages, consumers save a lot of money due to the strategy of reduced interest rates offered by

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Alizz Islamic Bank. Therefore, this paper will outline the manner in which the seven structure
and system theory influence the characteristics of Alizz Islamic Bank. The paper will also
examine the evolution of the organizational sectors towards ensuring success. Another activity
that this paper intends to solicit is the critical examination of the development and change within
the structural organization of Alizz Islamic Bank of Oman.

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The Seven Structures and Systems of Alizz Islamic Bank of Oman
The Seven S model is a theoretical framework that several organizations employ in management
situations – however, it is mainly used in the assessment of organizational design. In our case,
the structure will be helpful in:
- Determining the extent of organizational change facilitated
- Implementing new corporate strategies
- Identifying how regulatory sectors are likely to change in future
- Assessing the possibility of Alizz Islamic Bank of Oman to form mergers
The Seven S model, also known as the McKinsey model, represents seven organizational sectors.
The sectors are divided into hard and soft areas. Hard elements include structure, strategy, and
systems because they are easy to manage and identify, unlike flexible elements. Contrarily,
flexible components are the organization's foundation or building blocks. Soft factors are thus,
more likely to develop an organization’s sustainable competitive advantage. The elastic
elements include skills, style, staff, and shared values (Beck and Cowan, 2014).
- Strategy: Alizz Islamic Bank of Oman tends creating a scale economy by investing in
several world organizations and business than offering loans and other services at
reduced interest rates. However, the company also has an efficient system to control its
stock thereby reducing its operating costs compared to its competitors. Alizz Islamic
Bank of Oman cooperates with other banking systems in China – also referred to as “the
world financial factory,” and other parts of the world to reduce financing costs (David,
2009, pg. 46). Therefore, Alizz Islamic Bank of Oman’s company-level strategy is

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ensuring low interests as well as employing a differentiation strategy (Ben-Ner and
Siemsen, 2017, pg. 12).
- Shared Values: Alizz Islamic Bank of Oman intend to have value created to all its
stakeholders within the bank system as well as the Arabic society. Alizz Islamic Bank of
Oman believes that shared value increases the viability and quality of banking solutions.
The corporation believes that its environmental and social programs create long-term
interest to stakeholders, including clients because such benefits strengthen the operating
systems of the company (Bryman, 2013).
- Structure: The organizational structure of Alizz Islamic Bank of Oman is hierarchically
functional in nature. The fabric has two main features – the features are function-based
and hierarchy definitions. Alizz Islamic Bank of Oman’s hierarchical element refers to its
vertical command and authority lines within the structure of the organization ( Salter,
2011, pg. 269).
- Systems: The systems of operation that Alizz Islamic Bank of Oman employs are visible
in its financial auditing section. This section requires proper decision-making capabilities
thus; the management of the financial auditing section involves the application of
qualified and adverse opinion tools and models – all of which are electronically managed
(Thompson and Martin, 2010, pg. 671). To the investors, the bank provides vendor-
managed inventory models in which they can access financial information systems.
Clients determine the appropriate time to get loans and repay the same using inventory
levels’ real-time data and the financial information received from the bank. As a result,
Alizz Islamic Bank of Oman can avoid loan outbursts. By doing so, the firm’s effort
towards cost-minimization gets support (Hicks, Keil and Spector, 2012, pg. 318).

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Therefore, the explained systems are important to Alizz Islamic Bank of Oman because
they maximize its performance within the operations management’s decision-making
area (Clark, 2017, pg. 420).
- Skills: On skills acquisition, Alizz Islamic Bank of Oman has created an educational
center known as Alizz Islamic Bank of Oman’s work enforcement center. This Alizz
Islamic Bank of Oman’s work enforcement centers is geared toward training individuals
into becoming financial operations supervisors and more-experienced banking managers.
Individuals are sectioned to work in workshops within different locations created by the
company (tutor2u, 2016). In the work enforcement centers, employees get taught how to
determine loss statements, calculate profits as well as how to run the sections like micro
banking businesses. Managers are then trained how to understand their home life while
managing workers. Otherwise, Alizz Islamic Bank of Oman is considered as the pariah of
rural Arabic Society. Currently, the company is geared towards rebranding itself to meet
the needs of workers and customers (Lichtenstein and Plowman, 2009, pg. 619).
- Staff: Apart from educating workers and teaching managers how to understand their
home lives while managing workers, the management philosophy of Alizz Islamic Bank
of Oman is the commitment to controlling the expenses of the company, the business,
celebrating success, and promoting effective communication. Otherwise, managers and
worker are required to be motivated, listening, ensuring forward progression, as well as
appreciating and exceeding the expectations of customers. The leadership structure of
Alizz Islamic Bank of Oman includes an executive management team. The executive
management team is made up of the CEO, branch managers, as well as a board of
directors ( O’ Connell, 2013, pg. 189).

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- Style: Alizz Islamic Bank of Oman’s method of management can be recognized as a
transactional and a transformational one. However, other management aspects are vision,
charisma, strategy, ethics, and distribution. The style also encompasses the structure of
management that, as mentioned before, is hierarchically functional in nature. However,
the structure has two main features – the features are function-based and hierarchy
definitions. Alizz Islamic Bank of Oman’s hierarchical function refers to its vertical
command and authority lines within the structure of the organization (Matusitz and
Reyers, 2010, pg. 341).
Impacts of the Seven Structures and Systems on Management and Leadership of Alizz
Islamic Bank of Oman
In Alizz Islamic Bank of Oman’s Finance Department, for instance, the systems of operation that
Alizz Islamic Bank of Oman employs can best be seen in its inventory sub-section. This sub-
section requires proper decision-making capabilities thus; the management of the inventory
section involves the application of inventory models that are vendor-managed. Within the
vendor-managed inventory model, Alizz Islamic Bank of Oman’s investors has access to
financial information systems (Rooke and Torbert, 2015). However, clients use the same model
to determine the appropriate time to get loans based on inventory levels’ real-time data and the
information received from the finance department. As a result, Alizz Islamic Bank of Oman can
avoid loan outs bursts. By doing so, the firm’s effort towards cost-minimization gets support.
Therefore, the explained systems are important to Alizz Islamic Bank of Oman because they
maximize its performance within the operations management’s decision-making area, unlike its
Islamic bank competitors that have long inventories and high costs (MindToolsVideos, 2014).

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On the other note, the styles of leadership that Alizz Islamic Bank of Oman employs – which are
the transactional and transformational styles of management, encourages managers to be
visionary, charismatic, strategic, ethically considerate, as well as have distributive skills. Apart
from that, Alizz Islamic Bank of Oman helps its managers and workers acquire skills by training
them in the work enforcement centers. As mentioned before, Alizz Islamic Bank of Oman has
created many work enforcement centers and workshops. Such workshops are known as ‘Alizz
Islamic Bank of Oman work enforcement centers and are geared toward training individuals into
becoming department supervisors and more-experienced managers (Robichaux, n.d.). As
mentioned before, individuals are sectioned to work in classrooms within different locations
created by the company. In the work enforcement centers, employees are taught how to
determine loss statements, calculate profits as well as how to run the departments like micro
businesses (Tsang and Tsang, 2017, pg. 40).
On the other hand, managers are then taught how to understand their home life while managing
workers. Otherwise, Alizz Islamic Bank of Oman is considered as the pariah of rural Arabic
Society. Currently, the company is geared towards rebranding itself to meet the needs of workers
and customers. Such is an area that Alizz Islamic Bank of Oman creates a credit score ahead of
its Islamic competitors (Porter, 2016).
Evolution of Alizz Islamic Bank of Oman’s Management Sectors
Alizz Islamic Bank of Oman is unique in its system of management. With time, the
administration and the fraternity of the entire banking system have come to believe in certain
cultural aspects that make it different from its global competitors. Most importantly, the
management of the banking system has outlined several changes within the framework of the

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organization. Such changes include organizational beliefs, actions of workers and managers, and
value systems. Therefore, the work environment has been tweaked to improve workers’ bio-
pschyco-social conditions such as their lifestyle, cognitive abilities, operational culture, as well
as the reduced capability to perform particular tasks concerning age. Concerning systems and
structure theory, the established learning centers by the management of Alizz Islamic Bank of
Oman has changed the leadership mindset into making better work structures and methods for
works. In turn, the work and living conditions for the stakeholders have been improved. A
different perspective of the vMEME theory highlights some of the significance of changes that
the banking system has undergone (Rothaermel, 2017).
Most importantly, the changes in Alizz Islamic Bank’s value system are noticeable regarding
improvement in leadership mindset of Alizz Islamic Bank’s managers has conformed into
transitioning the workplace into one that is focused on equality and sustainability. Most
importantly, the aspect of social networking has taken center stage of operation. Unlike other
banking systems in the Islamic region and the world at large, the opportunity is considered as a
critical aspect of financial growth and competitiveness by the firm. Therefore, the bank, through
its leadership, has been on the frontline towards the promotion of vision, charisma, strategy,
ethics, and distribution ( Mauri, 2016).
Unique Management Attributes within the Sectors of Operation
Most importantly, the bank has a new operational framework compared to its competitors. The
new structure is geared towards ensuring that the banking system achieves sustainable growth
within its time while operating. The management made up of the CEO and the board of board of
governors, control every process involving decision-making. On the other hand, team

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empowerment and team play are essential concepts that the system use to ensure growth.
However, most importantly, the mid-level and top managers employ the red level mindset of
leadership (Kryscynski, 2015). Such managers also work hard to identify new opportunities and
growth niches, allocate available resources, oversee business processes, and execute changes
whenever necessary. Therefore, managers are not just administrators but are considered as
leaders – and since they are leaders, they monitor performance within the departments. However,
it is difficult to comprehend, why the top management of Alizz Islamic Bank does not consider,
quite often, the suggestions and ideas put forward by department managers in processes of
decision-making. Many world competitors use the factor as a threat towards establishing
marketing grounds against Alizz Islamic Bank. Department managers should be part of the
systemic procession of the organization and thus, contribute to activities involving decision-
making. Most importantly, the ideas of branch managers should be considered implemented if
such plans are viable (Hamel and Prahalad, 2005, pg. 249).
Alizz Islamic Bank’s leadership trait is most authoritative. Therefore, the top management is sole
decision makers and dictators of the work processes and methods. As a result, the leadership
system of Alizz Islamic Bank has created a working framework that is rigid and strict. The
disadvantage of such a structure is that innovation is hindered while employee disengagement
and retention issues may be massive (Walker, 2017). However, in as much as the leadership
structure is authoritative, the firm tries to curb worker disengagement and retention issues by
encouraging managers to influence employees within their departments to work towards meeting
organizational objective and goals while offering rewards and enticements to those that work
hard enough.
Most importantly, branch leaders inspire workers within their departments to become achievers
and receive recognition (Grundy, 2006, pg. 216). Such managers manage such influential roles
by being role models themselves. Alizz Islamic Bank puts in place, active structures, principles,

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and procedures in which workers are required to be able to perform delegated tasks and do so
effectively with minimal follow up. Therefore, the mindset that is associated with such a
leadership outlook is practical, self-interestedness, directness, and conservativeness. However,
the management of Alizz Islamic Bank does not conform to such attributes even if the system is
involved in such strict delegation and preciseness. The system is based on managers and worker
being motivated, listening, ensuring forward progression, as well as appreciating and exceeding
the expectations of customers.
Most importantly, the emphasis is placed on better performance. Such a system can be
recognized as a green value mindset – which is most of all, viable in the customer service
branch. The customer service section also identifies inclusiveness and social networking to
ensure that better service delivery is attained while also striving to achieve the loyalty of
customers (Gerdeman, 2012). Most importantly, it is worth noting that within the short period of
operation, Alizz Islamic Bank has recognized and implemented several leadership structures and
systems in an attempt to increase service delivery, improve internal communication, and address
several other management complications that the firm could face. With vivid consideration, Alizz
Islamic Bank value effective organizational communication and teamwork. Alizz Islamic Bank
value effective corporate communication and teamwork because the two useful management
attributes are constructive towards solving customer related issues – most of which are attached
to service delivery and the quality of service itself (Yukl, 2012). However, the leadership traits
that the management of Alizz Islamic Bank value and exalt are being empathetic,
accommodative, encouraging active engagement, being collaborative, as well as being self-
driven and motivated. Within the department that I work, for instance, I support my team to
possess two main mindsets – the green value system and the orange value system. The two value
systems are critical because they recognize the personal attributes of workers. There are those
who are motivated to work even without rewards, whereas, there is another pair that requires
recognition and prizes to be more motivated (Duval, Sharples and Sutherland, 2017, pg. 8). For

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both sets of workers, green and orange value systems work best about getting the best out of such
workers. The value systems ensure that both kinds of workers comply with the principles and
practices already established with minimal supervision and not deviating from the recommended
task outline. Finally, the work enforcement centers and workshops created by the management of
the firm are geared toward training individuals into becoming better financial operations
supervisors and more-experienced banking managers. Individuals are sectioned to work in
workshops within different locations created by the company. In the work enforcement centers,
employees get taught how to determine loss statements, calculate profits as well as how to run
the sections like micro banking businesses. Managers also learn how to understand their home
lives, how to handle stakeholders, and how to be role models while managing workers.
Otherwise, Alizz Islamic Bank in Oman is currently geared towards enhancing performance
through reimaging to meet the needs of workers and customers ( Dawlabani, 2013).
Ensuring Continued Success and Growth
The main reason why Alizz Islamic Bank of Oman bank was initiated was to provide financial
assistance that is Sharia’ compliant. Having been founded in 2012 – in the digital era and on the
digital Islamic banking principles, the system needed to encourage innovation and technological
growth. However, in as much as the banking system has achieved a substantial amount of growth
and becoming a renowned bank within the Islamic community, Alizz Islamic Bank has faced
many management challenges. Still, the Alizz Islamic Bank of Oman has managed a steady
expansion because of a constant influx of corporate and retail investments as well as large profit
margin that it generates through its online financial assistance endeavors (Collins and
Leaderpowertools, 2009).
Most importantly, the bank, throughout its years of operation, has employed appropriate
strategies towards meeting its vision and mission. The image of Alizz Islamic Bank of Oman is
embedded on its struggles to be the best banking system in the world while considering the