MyAssignmentServices uses cookies to deliver the best experience possible. Read more

  • Internal Code :
  • Subject Code :
  • University :
  • Subject Name : Management

The Development of Goal Setting Theory

Background of Gulf Bank of Kuwait Analysis

The gulf bank of Kuwait is one of the biggest banking institutions in Kuwait. The bank offers wholesale banking, consumer banking, treasury banking, and offers financial services. The company under study in this paper lies under the banking industry, and it was founded in the year one thousand nine hundred and sixty, which is sixty years from now. The main office is located in Kuwait City in Kuwait. The gulf bank of Kuwait was registered as a bank witty the central bank of Kuwait and got listed as gulf bank on the stock exchange of Kuwait The current Boursa Kuwait, in the year one thousand nine hundred and eighty-four. Gulf bank has an extended scope covering fifty-eight branches and has a total asset of $19.8 billion, reported 31st December 2018. The international credit rating agencies ranked the gulf bank of Kuwait as one of the best credit issuers. The bank has been recognized as it has won numerous awards uniformly spread across all the sectors of the bank’s operations. These sectors that have won the awards include corporate social accountability programs, human resources, consumer banking, performance, products, marketing, and wholesale banking (Rawan, 2019). From the research, this bank is seen to be strongly committed to giving back to the people of Kuwait and society via its set corporate and sustainability plans. The bank also has drawn its focus to youth and the less fortunate through its support, no various activities such as promoting education, helping the less fortunate, supporting health and fitness programs, and empowering women. The gulf bank of Kuwait is at its maturity stage, and it is objected to sustain its market share and remain the leader in the banking industry in Kuwait.

A board of directors leads the gulf bank of Kuwait with Jasem Mustafa Boodai as the board chairman. He is responsible for chairing the board meetings and Ali Morad Yusuf Behbehani as the assistant board chair. The other board managers are Omar Hamad Youssef Al-Essa, Sayer Bader Al-Sayer, Bader Nasser Al Khorafi, and Fawaz AlAwadhi. The second rank in power is executive management, which comprises six offices lead by the chief executive officer. Antoine Daher is the chief executive officer leading the bank. The other offices in the executive management are the chief finance officer, Chief Internal Auditor responsible for Internal Audit, the treasury general manager, the manager customer service, and the general manager’s legal affairs. The chief executive officer indirectly answerable to the board of directors and reports direct the board of directors. The chief finance officer handles all issues related to finance, such as drawing budget for the bank and the other related issues. The general manager treasury is responsible for keeping the bank’s treasury; the general manager customer service handles the issues related to customer queries. It ensures that customers are served well for their satisfaction and no exploitation. The chief internal auditor irresponsible for both finance audit and systems audit for the bank, and finally, the general manager’s legal affairs are responsible for ensuring that the bank management and the employees adhere to the legal affairs. This manager advised the management team on the laws that the bank should adhere to show compliance to the set business laws and the business acts.

Problem Statement

Over the years, the banking industry has been facing many challenges that slow down the general functioning of the industry. Unfortunately, the challenges are tied to numerous drawbacks that negatively affect the growth and prosperity of the industry. The challenges cause a rapid rise in the operation costs, running, and maintenance costs of any organization. The ranges range from the top management down to the least level employees. Also, the ranges extend from professional skills to personal character traits. Other external factors, such as environmental calamities and international cultures, contribute significantly to the challenges banks and the entire banking industry face. According to a research questionnaire administered to Gulf Bank of Kuwait (GBK), it was found out that the bank has been experiencing several challenges. The challenges include poor leadership, lack of employee motivation, lack of convenient communication, rapid advancement to technology, causing a risk of losing clients, and uncontrollable employee behaviors.

Leadership is the backbone of every organization and significantly affects the success rate of the organization. Leadership related challenges have been affecting daily activities in the GBK. Poor leadership involves a lack of close employee supervision, making poor decisions, leaders' irresponsibility, lack of enough transparency, and lack of accountability. The management team has been accused of failing to control and unite the employees. Some of the bank leaders have been severally linked to bank theft and office misuse. Also, some leaders are used to using the office for their gain. Although the management leaders are supposed to be accountable for all their responsibilities, some fail in accountability and become so irresponsible that they can handle their daily duties. Therefore, poor leadership is a challenge that has been dragging the GBK over the past years and needs to be rectified for a better future of the bank.

Communication forms one of the critical elements of a successful organization, and it is crucial in enhancing banking industry operations. The lack of timely communications slows information transfer that slows operation activities. Some of the offices in GBK use the old paperwork approach for internal communication. The paperwork is so incompetent because some people may not receive the paper or may receive it and fail to read. Lack of a robust communication system delays urgent messages made either internally or for external purposes. The delay in communications results to delay in decision making hence negatively influencing the growth of the bank.

The employees actively contribute to the success of any business organization. Therefore, to retain the success of every organization, the employees need to be motivated consistently so that they can give their best for organization services. The Gulf Bank of Kuwait lacks adequate motivating their employees, although they offer bonuses, sales incentives, and vacations. The bank needs to improve its motivation techniques to improve employee performance. The bank can use different approaches such as awarding commissions, consistent promotions, and financial aids.

Technology is becoming an essential element for integration in every business structure to enhance the success and prosperity of the organization. Technology is advancing faster than how banking industries are embracing and integrating it into their systems. The new technologies involve an original method of communication, payment, database management, customer services, employee management, strategic planning, and marketing. Gulf Bank Clients are embracing technology faster than the bank. Since the bank is slow in implementing technology, there is a significant risk of losing the clients to other banks that are ready to implement the same. The clients need to join banks that can offer services at their comfort. Clients hate lining up inside the banks to be attended by the bank employees.

Employee behavior defines the kind of service they are going to offer to their customers. Most of the employees with bad behaviors end up offering poor and unethical actions to their customers. On the contrary, employees with good behaviors end up offering quality services to the customers. The type of conduct might be linked to the kind of motivation they are receiving from the bank. Therefore, they should hire and retain employees with good behavior to scoop and maintain a larger market share. Failure to this, customers will keep receiving low services and may end up quitting using the bank for their services.

The Literature Reviews of Gulf Bank of Kuwait Analysis

The literature review section gives a discussion of this research and how it is linked to past researches. The section explains how different researchers have tried to curb the challenges using the approach methods. Each problem is attached to a certain theory that describes the relevant approach and methods to solve the problem. The first challenge affecting GBK is employee motivation, and there exists a great theory that explains the best approach to minimizing it. Therefore, employee motivation needs to be consistently initiated, directed and retained. The best theories discussing on how to handle employee motivation are cognitive evaluation theory and Self-efficacy theory.

According to the cognitive evaluation theory, employee motivation depends on both the intrinsic and extrinsic rewards that shift towards the change in behavior depending on the size of the reward. The reward triggers the inherent character of the employee that, in turn, influences the outward function of the external organs. Through the Self-efficacy theory, the employee controls their motivation through a strong belief in their capabilities. Self-confidence helps employees to build their skills from amateur level to expertise level. The theory limits the employees from been held behind by their weakness and work hard to experiment with new ideas.

Communication is a crucial element for the success of any organization. Researchers have severally discussed the advantages of having an intelligent communication system in every organization. The rate and level of communication often depend on the goals and objectives of communicating. Therefore, communication challenges can be handled by the goal-setting theory. The theory advocates that company's high performance can be attained through the continuous setting of communication as a challenge and giving particular objectives (Locke, 2019). The theory ensures the complete exchange of information between the employees and keeps them updated about its goals.

The motivation level of the employees significantly influences the behavior of the employees. Most of the employees behave according to the type of motivation they acquire form their organization. Different theories explain how the relationship between employees and organizational motivation affects daily employees' behaviors (Zeike, 2019). The expectancy theory best explains how expected rewards motivate the employees and enhance building their good behavior. When employees work in the mind of receiving great rewards after completion of their tasks, they become friendly to the customers and end up offering the best services. Good reward plans soothe the employees to work happily and willingly.

The success of every organization is determined by the type and quality of leaders managing the organization. Quality leadership is a compulsory element for the success of the business. Leadership theories, such as the great man theory and trait theory, argue that the success of a good leader is not something to be developed, but it is a natural talent. The great man theory strongly argues that leaders are born but not developed (Iordanoglou, 2018). On the other hand, the trait theory argues that leadership is not based on certain qualities, but it is based on strong natural qualities that help create leaders. Therefore, GBK should choose leaders depending on the natural traits rather than choosing them depending on acquired characters or skills.

Recently technology has become of the essential human needs that every organization needs to meet when offering customer services. The Gulf Bank of Kuwait needs to classify technology as one of the essential services urgently needed by the customers. Furthermore, technology helps in delivering quality and timely services to customers. Therefore, the hierarchy of needs theory urges the GBK to fulfill the needs in a hierarchical order. The theory advocates that human needs should be dealt with them, depending on their urgency. GBK should consider integrating the best technology practices to scoop and retain a larger customer market share.

Analysis of Gulf Bank of Kuwait Analysis

According to the data gathered from the questionnaire administered in GBK, and the link with the literature review above, the following are the possible causes of the challenges facing the bank. Five challenges face the gulf bank, and each problem has a specific cause attributed to it. The first challenge is lack of employee motivation; lack of employee motivation may be caused by the prevailing poor working conditions, late salary and remuneration payment, absence of paid leaves, among others. Employee motivation is very key to the profitability of any organization. When employees are motivated, they work well for the wellbeing of the organization. The other factors that may make the employees feel demotivated are lack of incentives, allowances, close supervision, and everyday chaos.

The other problem faced by the gulf bank is the lack of convenient and constant communication by the management and the employees. Poor communication channels cause a lack of convenient communication. The bank has adopted the top-down paradigm of communication, which is rejected by many employees if it does not put their views in decision making into consideration. Poof and inconvenient communication in gulf banks may also be caused by a lack of direct channels of communication to the management by the employees. This evidence is clear from the questionnaire analysis done to determine the major causes of the problems facing GBK. Therefore, the employees in gulf bank advocates for horizontal communication channels as this gives them access to the man agent and addresses their issues direct for quick responses and action.

The third problem facing Gulf Bank is rapid advancement to technology, causing the risk of losing clients. According to the analysis of the questionnaire and the literature, it is clear that the gulf bank is slow to adopting and implementing technology. The main cause of this problem may be the fear of losing jobs by the employees, some of the employees feel incompetent in using technology, and also the bank is in the worry of incurring costs that are attributed to going digital. The main cause is that the bank’s management sees going digital as a hard task as it requires a huge investment of capital and the other costs to training the employees. Therefore, these may be the major causes of the rapid advancement in the adoption of technology.

The other challenge facing GBK is uncontrollable employee behavior. Uncontrollable employee behavior is evident from the analysis that some employees have rigid control and change to fit their culture. The uncontrollable employee behavior in GBK employees is caused by the fact that some employees are introverts and would not be willing to communicate change. They think that they will be undermined and overlooked. The uncontrollable employee behavior may also be caused by the employee ego, which drives them not to listen to any advice from the management and their peers. Therefore, this is the main cause of the problems and challenges facing the bank and hindering it from performing as it needs.

The last challenge facing GBK is poor leadership. The main cause of poor leadership in this bank is the management employing incompetent departmental leaders. They do not qualify for the positions and do not have the relevant leadership skills. Poor leadership is the main cause of leadership failure in banking institutions in Kuwait, including GBK. The analysis of the literature shows that the banking institutions in Kuwait suffer from this problem.

Findings and Discussion on Gulf Bank of Kuwait Analysis

Challenge name

The challenge available (%)

Challenge not available (%)

Lack of adequate motivation

60

40

Uncontrollable behavior

50

50

Poor leadership

70

30

Technology

65

35

Poor communication

80

20

Table 1: findings

According to the data analysis, it is clear that the percentages of the different problems that were identified in GBK bank varied though slightly. The availability of a lack of adequate motivation problem is 60% while the unavailability of the same challenge is 40%. Therefore, this implies that there is at least some motivation for the employees in GBK bank. The availability and unavailability of uncontrollable behavior among the employees are both equal. Therefore, this implies that the bank’s employee’s behavior can be controlled at equal measures as those employee’s behavior that cannot be controlled. During the data analysis from the questionnaire, it was discovered that poor leadership was the main challenge i9n the bank for its day to day operations. The availability of the problem of poor leadership was found to be seventy percent, while the converse was found to be thirty percent. Therefore, this implies that the leadership of GBK can be thought to be fair to some extent and slightly poor. Adoption to technology is another problem that is facing this bank. The availability of this challenge is sixty-five percent while it’s availability is thirty-five percent. Therefore, this indicates that most of the employees embrace technology, while a small lot does not. The final problem, according to the analysis, is poor communication. According to the analysis, one can conclude that the organization has poor communication since the availability of this problem is 80%, while the unavailability of this challenge is 20%. Therefore, this implies that the bank has abysmal communication.

Recommendations on Gulf Bank of Kuwait Analysis

The recommendation sections provide possible solutions for mitigating the challenges faced by the Gulf Bank of Kuwait. The recommendation focuses on the main challenges discussed in the problem statement and how they can be dealt with the discussed management theories. The bank can manage the Leadership challenge by implementing the great man and trait theories. Through the theories, the bank and other institutions will choose the right leader appropriate for the needed posts. After selecting the right leaders, the bank should schedule consistent training programs to equip the leaders with the relevant skills essential for the excellent running of the entire organization. Also, the bank should schedule assessment programs to assess the quality of management skills the leaders gain from the interviews. The GBK should integrate its system with the current technology systems to enable its employees to enjoy faster and timely delivery services. The information technology systems will help the employees to retrieve customer information easily while serving hence reducing queuing inside the bank.

The bank leaders should develop strategies for managing behavioral and motivational issues to enhance the quality of services the employees offer to the bank customers. For instance, the bank should create a healthy and favorable environment to push them to work well. Also, they should treat all employees with equality, respect, and transparency. The management should plan for assessment schedules targeting to find out how the employees feel for the organization. The bank should listen keenly to employee complaints regarding assaults by their superiors and provide the solution to every complaint. Also, the bank should plan for a switching plan that will allow the employees to switch from one organization to the other. The switching will help the employees to build adequate experience in customer handling. Adhering to all the recommendations will help Gulf Bank of Kuwait to uphold employee motivation and improve on customer services. Ultimately, every organization other than GBK should embrace these recommendations to enhance the deliverance of quality services.

References for Gulf Bank of Kuwait Analysis

Iordanoglou, D. (2018). Future trends in leadership development practices and the crucial leadership skills. Journal of Leadership, Accountability and Ethics15(2).

Locke, E. A., & Latham, G. P. (2019). The development of goal setting theory: A half century retrospective. Motivation Science5(2), 93.

Rawan, A. (2019). Evaluating Banks Financial Performance Using Financial Ratios: A Case Study Of Kuwait Local Commercial Banks. Oradea Journal of Business and Economics4(2), 56-68.

Zeike, S., Bradbury, K., Lindert, L., & Pfaff, H. (2019). Digital leadership skills and associations with psychological well-being. International journal of environmental research and public health16(14), 2628.

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Management Assignment Help

Get It Done! Today

Applicable Time Zone is AEST [Sydney, NSW] (GMT+11)
Not Specific >5000
  • 1,212,718Orders

  • 4.9/5Rating

  • 5,063Experts

Highlights

  • 21 Step Quality Check
  • 2000+ Ph.D Experts
  • Live Expert Sessions
  • Dedicated App
  • Earn while you Learn with us
  • Confidentiality Agreement
  • Money Back Guarantee
  • Customer Feedback

Just Pay for your Assignment

  • Turnitin Report

    $10.00
  • Proofreading and Editing

    $9.00Per Page
  • Consultation with Expert

    $35.00Per Hour
  • Live Session 1-on-1

    $40.00Per 30 min.
  • Quality Check

    $25.00
  • Total

    Free
  • Let's Start

Get
500 Words Free
on your assignment today

Browse across 1 Million Assignment Samples for Free

Explore MASS
Order Now

Request Callback

My Assignment Services- Whatsapp Tap to ChatGet instant assignment help

Get 500 Words FREE
Ask your Question
Need Assistance on your
existing assignment order?