SHR044-6: Innovation and HRM at National Bank of Oman Report

This report examines the innovation and human resource management (HRM) practices of the National Bank of Oman (NBO). It begins by providing an overview of NBO's HRM practices, highlighting their focus on employee retention and satisfaction. The report then delves into the bank's 'Ibtikar' platform, designed to encourage employee-driven innovation, and analyzes the organizational climate for creativity, referencing models like Isaksen and Amabile's keys. The analysis further explores relevant theories, including dual innovation and open innovation, and assesses NBO's plan for promoting creativity, identifying challenges such as the need for improved communication channels. Finally, the report concludes with recommendations for enhancing communication and employee engagement to further foster innovation within the bank.

Running head: INNOVATION AND MANAGEMENT
INNOVATION AND MANAGEMENT
Name of the student
Name of the university
Author note

1INNOVATION AND MANAGEMENT
Table of Contents
1.Introduction...................................................................................................................................2
2.National bank of Oman’s HRM practices....................................................................................2
3.Creativity and innovation climates in the organization................................................................3
4.Theories relating to Creativity and innovation in an organization...............................................6
5.Plan for promoting creativity and innovation...............................................................................8
Challenges....................................................................................................................................8
6.Conclusion....................................................................................................................................9
7.Recommendations.........................................................................................................................9
References......................................................................................................................................11

2INNOVATION AND MANAGEMENT
1.Introduction
The innovations that are initiated by the organizations are grounded on the needs of
overcoming the issues with the objective of gaining competitive edge. On the other hand, the
organizations empower the stakeholders with the objective of developing the operations of the
same while operating in the different markets. In this relation, the research would develop an
understanding of the creativity and innovation based practices that are being planned by National
bank of Oman. The research will also enumerate the different issues that are being faced by the
organization while undertaking the innovations along with the recommended course of actions.
Therefore, the purpose of undertaking the research is to develop a understanding of the different
steps that might be initiated by National bank of Oman while stimulating the HRM based
operations of the same.
2.National bank of Oman’s HRM practices
The National Bank of Oman (NBO) was founded in the year 1973 and since then served
the local businesses and population at large in Oman. The distinguished services that are offered
by the organization supported the same in developing a competitive edge. On the other hand, the
HR policies that are incorporated by the organization supported in enhancing the operations of
the employees (Nbo.om 2015). Again, the most important factor that supported the HR
operations of the bank relied on the retention of skilled employee through enhancement of
employee experience. The organization aimed at providing the best workplace environment to
the employees with the objective of retaining the same for ensuring the continuity of the
operations (Oman Observer 2017). Therefore, the HR best practices that are applied by the
organization supported in ensuring the employee satisfaction while operating in alignment with
the needs of the customers.

3INNOVATION AND MANAGEMENT
3.Creativity and innovation climates in the organization
The National Bank of Oman developed ‘Ibtikar’ with the objective of empowering the
employees to engage in different innovations (Oman Observer 2017). In this relation, the bank
empowered the employees through the application of open door policy through which the
workforce might approach the management of the bank with different innovative ideas. The
leadership structure aimed at applying an inclusive culture which would empower the
involvement of the employees in the different innovative practices for enhancing the rate of
satisfaction. In the year 2014, the organization aimed at empowering 20 teams while hosting a
competition based on innovative and creative ideas (Nbo.om 2015). The concept of the platform
was to encourage the involvement of the employees in the different innovative processes of the
venture. On the other hand, the HR practices and leadership structure of the organization
supported in continuing with the efficiency of the operations in alignment with the needs of the
venture.

4INNOVATION AND MANAGEMENT
Figure: Isaksen model
(Source: Barnea and Schlank 2016)
The organizational leaders aimed at enhancing the rate of collaboration and cooperation
among the employees while empowering the same to engage in the innovative and the creative
process designs of the venture. As per the Isaksen model, the organization developed an open
door policy supported the organizational management in continuing with the efficiency of the
operations. In this relation, Ahmed Al Musalmi, CEO of NBO, stated in an interview that the
Ibtikar platform is being created with the objective of empowering and encouraging the
engagement of the employees in the different innovative and creative practices (Oman Observer
2017). On the other hand, the liberal and innovative mindset of the leaders and the consultation

5INNOVATION AND MANAGEMENT
that is encouraged between the managers and the employees supported the bank in enhancing the
rate of innovativeness.
Figure: Amabiles keys
(Source: Edokpolor and Somorin 2017)
Moreover, the assessment of the organization through the Amabiles keys model reflected
that the leadership role and the active participation of the HR supported the organization in
encouraging the innovativeness of the employees. The training and development programs that
are initiated by the HR supported the venture in improving the rate of operations while
encouraging the maximized involvement of the employees. The active and combined role of the
HR and the operational departments, in compliance with the culture that is being created by the
CEO, supported the venture in developing a positive and collaborative workforce culture. On the
other hand, the leaders encouraged the involvement of the employees through continuous
discussions and communications which supported the venture in enabling the efficiency of the

6INNOVATION AND MANAGEMENT
operations in alignment with the needs of the business. The General Manager and Chief
Information Officer at NBO, Faizal Eledath, stated that the organization aimed at nurturing and
empowering the operations that are initiated by the employees (Oman Observer 2017).
4.Theories relating to Creativity and innovation in an organization
 Dual Innovation theory: The dual innovation theory aimed at developing and reshaping
the existing core business while developing a new venture or offering in alignment with
the central interests of the organization. The utilization of the dual innovation theory
supports an organization in developing the core business while enhancing the rate of
competitive edge through the formulation of a new venture or line of offerings. The
frequent innovations that are undertaken by the organizations support the same in
enhancing the rate of operations while operating in the different markets. Amabile and
Pratt (2016) opined that the enumeration of the dual innovation theory in the
organizational context enables ambidextrous organizations in developing its resources
while supporting the competitive advantage of the same while operating in the different
markets.
 Open innovation: Open innovation refers to crowdsourcing of innovative ideas in
alignment with the needs of the venture while operating in a market with emerging
technologies. The different changes in the organizational operations through the
application of the open innovation related framework is reliant on the collection of ideas
and technological concepts from different sources in the industry. The collection of
innovative ideas from the different sources and the development and management of the
ideas with the objective of gaining a competitive edge for the venture. The different
changes in the organizational operations are reliant on the efficiency of the innovation

7INNOVATION AND MANAGEMENT
management and the manner in which an organization implements the innovative
processes in the business model. In this relation, Chen and Hou (2016) opined that
crowdsourcing of data and implementing the innovations on the organizational processes
supports a venture in developing the efficiency of the operations in alignment with the
needs of the venture. Therefore, the application of the open innovation model in the
organizational innovation and creative processes would enable uniformness and fair
competition in the industry.
Figure 1: Open Innovation model

8INNOVATION AND MANAGEMENT
(Source: Birasnav 2014)
5.Plan for promoting creativity and innovation
Challenges
The concerned organization, National Bank of Oman, has already taken the most
favorable step of empowering the workforce through the creation of the ‘Ibtikar’ platform. The
platform enabled the employees to engage themselves in the innovative practices of the
organization while encouraging their active participation in suggesting innovative practices to
the organization. The platform already supported the organization in ensuring the active
participation of the employees in the innovative practices while maximizing the rate of change
readiness and collaboration among the employees and the management (Anderson, Potočnik
and Zhou 2014). In this relation, the organization must take steps to develop the communication
platforms that are being used by the same with the employees for identifying their suggested
creative ideas.
The use of diverse range of communicational channels would be supporting the
organization in enhancing the rate of interactions with the management and the employees.
However, it has been noted that the organization has already adopted an open door policy but
due to the lack of technological intrusions the communication process that is being undertaken
by the management with the employees lacked the efficiency which again affected Ibtikar.
Donate and de Pablo (2015) opined that steady links of communication with the employees
supports the management of an organization in ensuring the efficiency of the innovation control
and implementation of new designs in the model. On the other hand, Amabile and Pratt (2016)
reflected that the lack of efficient communication might affect the capacity of the organizations

9INNOVATION AND MANAGEMENT
in making dynamic innovations while involving the employees in the process. The lack of
technological infusions in the communication process of the organization restricted the capability
of making all the employees aware of ‘Ibtikar’. The lack of suitable awareness among the
employees might again affect the objectives of the venture in encouraging the active involvement
of the employees in the different innovative processes.
6.Conclusion
Therefore, from the above analysis it might be stated that National Bank of Oman has
already taken steps to empower the employees for contributing to the innovative and creative
ideas. However, the lack of technological infusions in the line of communicational measures has
affected the capacity of the organization to enhance the rate of collaboration among the
employees and the managers. It has been noted, that the principles of the HR operations of the
bank focused on creating performance and value based culture. On the other hand, the
organization developed a continuous learning approach which supported the same in enhancing
the rate of innovations. The assessment of the issues and the manner in which it affected the
operations of the venture is being analyzed on the research. In this relation, the research
developed an understanding of the suggested operations that might be undertaken by the bank
with the objective of enhancing the empowerment related operations after assessing the current
approaches initiated by the bank.
7.Recommendations
The key changes that might be considered by the organization is reliant on improving the
communicational channels between the management and the employees. Chen and Hou (2016)
stated that the transparency of communication with the employees supports an organizational
management in entertaining the trust and confidence of the workforce. On the other hand, Liu et

10INNOVATION AND MANAGEMENT
al. (2017) opined that the establishment of efficient communication between the management
and the employees supports an organization in ensuring the collaborative functioning while
imposing different modifications. The changes in the communicational methodology would
support the organization in influencing the engagement of the employees in the different
activities that are planned by the venture. In this relation, the organization might take steps to
implement a dedicated portal apart from the meetings and seminars with the objective of making
the employees aware of the different issues that are faced by the organization and thereby
seeking their creative and innovative ideas for mitigation.
The application of the dedicated portal will not only ensure the continuity of the
innovational idea generation but also maintain the transparency among the management and
employees relating to the issues faced by the venture. Jackson, Schuler and Jiang (2014) stated
that the active participation of the employees in the different innovative processes is enabled
through steady links of communication. Therefore, the concerned organization must take steps to
develop a dedicated portal with the objective of ensuring steady communication between the
management and the employees for enhancing the rate of innovative and creative processes.

11INNOVATION AND MANAGEMENT
References
Amabile, T.M. and Pratt, M.G., 2016. The dynamic componential model of creativity and
innovation in organizations: Making progress, making meaning. Research in Organizational
Behavior, 36, pp.157-183.
Anderson, N., Potočnik, K. and Zhou, J., 2014. Innovation and creativity in organizations: A
state-of-the-science review, prospective commentary, and guiding framework. Journal of
management, 40(5), pp.1297-1333.
Barnea, I. and Schlank, T.M., 2016. A projective model structure on pro-simplicial sheaves, and
the relative étale homotopy type. Advances in Mathematics, 291, pp.784-858.
Birasnav, M., 2014. Knowledge management and organizational performance in the service
industry: The role of transformational leadership beyond the effects of transactional
leadership. Journal of business research, 67(8), pp.1622-1629.
Chen, A.S.Y. and Hou, Y.H., 2016. The effects of ethical leadership, voice behavior and climates
for innovation on creativity: A moderated mediation examination. The Leadership
Quarterly, 27(1), pp.1-13.
Chen, A.S.Y. and Hou, Y.H., 2016. The effects of ethical leadership, voice behavior and climates
for innovation on creativity: A moderated mediation examination. The Leadership
Quarterly, 27(1), pp.1-13.
Donate, M.J. and de Pablo, J.D.S., 2015. The role of knowledge-oriented leadership in
knowledge management practices and innovation. Journal of Business Research, 68(2), pp.360-
370.

12INNOVATION AND MANAGEMENT
Edokpolor, J.E. and Somorin, K., 2017. Entrepreneurship education programme and its influence
in developing entrepreneurship key competencies among undergraduate students. Problems of
Education in the 21st Century, 75(2).
Jackson, S.E., Schuler, R.S. and Jiang, K., 2014. An aspirational framework for strategic human
resource management. The Academy of Management Annals, 8(1), pp.1-56.
Liu, D., Gong, Y., Zhou, J. and Huang, J.C., 2017. Human resource systems, employee
creativity, and firm innovation: The moderating role of firm ownership. Academy of
Management Journal, 60(3), pp.1164-1188.
Nbo.om., 2015. National Bank of Oman National Bank of Oman’s Innovation Lab ‘Ibtikar’
Encourages Employees to Develop Innovative Financial Solutions. [online] Nbo.om. Available
at: https://www.nbo.om/en/Pages/News/National-Bank-of-Oman%E2%80%99s-Innovation-Lab-
%E2%80%98Ibtikar%E2%80%99-Encourages-Employees-to-Develop-Innovative-Financial-
Solutions.aspx [Accessed 27 Jul. 2019].
Oman Observer., 2017. National Bank of Oman employees drive innovation agenda forward.
[online] Oman Observer. Available at: https://www.omanobserver.om/national-bank-oman-
employees-drive-innovation-agenda-forward/ [Accessed 27 Jul. 2019].