Organizational Theory

Topic: Byblos Bank Organizational Effectiveness

Presented to: Dr. Joseph Wakim

Presented by: Helmi Issa OUTLINE

Basic concepts / theories covered in my case consist of the following: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Introduction Principles of Organization Theory and Practice Risk Management Structure Code of Ethics Corporate Social Responsibility - The Bank Contribution Management Organizational Structure Corporate Governance Management Principles Organizational Effectiveness The Evolution of Organizational Effectiveness Concepts

Those 10 basic concepts were in form of questions asked to several members in the Bank (middle-management) which formed the structuring of BYBLOS Bank. The following graphs are also indicated at the end of the project. Evolution of Total Assets Registered Personnel Ownership Structure

Corporate Structure of BYBLOS Bank

1. INTRODUCTION
The key motive why the organization theory is reflected as imperative in this era of globalization and the current age of organizing industries merely pinpoints on the circumstance that organization theory is applicant-based and that this device is very useful when it comes to attaining organizational aims. While not openly exaggerated by the influence of globalization, organization theory aids as an instrument that businesses mark usage of it in order to advance their firms worth in a strongly-globalized and competitive commercial atmosphere by merely reforming their corporate procedures. Most possibly, deprived of the organization theory which helps as a continuous leader and recap to establishments of the necessity to progress their organizational progressions, establishments will most probable persist to be motionless; which is, missing recreation to any sort of optimistic fluctuations in the businesss assembly and methods.

Once the organization theory was created many years ago, establishments did not truly tussle to relate this precise theory because it was very useful and most societies gained exceptional outcomes because of it. It transported marvelous variations in the approach corporations controlled their business developments but alongside, when the globalization aspect arrived, the necessity for the solicitation of the organization theory unexpectedly developed to be more stimulating. Numerous monetary establishments, to be very specific, nonetheless felt a sturdier requirement to relate the organization theory philosophies as the commercial situation developed to be more competitive notwithstanding the encounters in spreading over the theory.

2. Principles of Organization Theory and Practice Organizational Theories

Byblos Bank just like numerous additional modern establishments has comprised the notion of organization theory. Organizational theory can be demarcated as the wisdom of appropriate assemblies of an institute. As all categories of science has an allocating of several characteristics like objective, the awareness of comprehending, a well-definite estimate, and a complete end governor. In organizational theory, awareness is formed to have an indulgence of organizational construction for an improved expectation sideways with governing efficiency of association or level of output by generating a plan of establishments. Management is concluded by performing collectively in continuousness under a regulator to the realization of a certain aim. Well prearranged firms go for nonentity but suitable supervision of their actions. There are two main theories that subsidize to administration of Bank Byblos and these are; Classical Theory and Theory of Human Relations. In the graceful of the preceding the shell of the investigation that will be conceded, basically emphasizes on modernism and post-modernism as the fundamental theories to ease the learning of Byblos Bank. To realize this objective, my disagreement will announce and highpoint equally modernism and postmodernism within the setting of a modern-day organizational theory. By doing so, the introductory parameters would be visibly sharp to monitor more debate of all the challenging problems adjacent to both theories. Logically, for the determinations of comprehension of the importance of the theory of postmodernism there should an equivalent acquaintance with its associated notion modernism. The Bank has copied much of its philosophies of organization philosophy from foremost theorists. Involvement of diverse records is very much apparent in this range of organizational concept. Through putting frontward the exertion in the arrangement of Classical theory led to controlling the formulation of the bureaucracy indication.

3. Risk Management Structure

Risk management is found at the central of the Groups association configuration. It edges with all the changed dealings, as well as all supportive utilities. The Risk Management Organization is structured in three layers: Strategic or Supervisory level which holds inaccuracy by the directors over Board Risk, Compliance Committee, and committees of the high-ranking administration. It embraces describing the establishments risk hunger, conveying stratagem and guidelines for dealing with hazards and instituting acceptable systems and switches to confirm that cumulative risk rests within satisfactory level and the recompenses reimburse for the risk engaged. Analytical level which entails of the Group Risk Management (GRM) Partition, with the overarching obligation to decipher the guidelines of the several risk committees into guidelines and measures and to categorize, quantify, observe and report the risks reserved in a steady method across all corporate lines and operational entities. Tactical level which entails the management of risk at the basis of commencing risks in the industries, treasury and in banking operations dissections. It is the accountability of these items to choose on which risks to yield and which risks to ease within the strategies and events set by the GRM Partition. The Board shows a fundamental role in certifying a culture and an atmosphere of rigorous risk management. This echoes the increasing reputation for the execution of best risk-management rehearses under the leadership and regulation of the Board. The committee is accountable for executing the risk values, comprising endorsement of essential risk rules, and for handling the risk outline of the Group.

4. Code of Ethics
The banks Code of Ethics and Business Behavior is further than a manifestation of the pledge to truthfulness. It signifies the directorial morals of our institution and assists in introducing morally comprehensive conduct and responsibility among all Bank Personnel. Byblos Bank thoroughly edifies workers about the values and offer prospects to request inquiries or report distresses. Every operative verifies obedience with the principles yearly. To underline the vow to ethics at Byblos Bank, they have selected a Chief Ethics Officer with accountability for the lapse of all features of the Code of Ethics and Business Behavior.

They trust that they want to have business with an association that ideals trustworthiness and uprightness, not only because the regulation necessitates it, but also since it is the correct thing to do. At Byblos Bank, their moral principles have always been fixed upper than the commandment entails.

5. Corporate Social Responsibility - The Bank Contribution

Byblos Bank has a crucial part to play in developing and evolving the societies it aids and that is an inherent part of certifying their own evolution. This means that CSR is more than unpretentious patronage as it targets to offer people with the necessities with which to flourish and boom. Byblos Bank takes this spirit to three regions: Europe, Asia and Africa. Byblos Banks CSR subsidy is directed for necessity so that scarcer creativities are led in Europe and the industrialized GCC and more importance is located on Armenia, Iraq, Sudan and Syria. Nevertheless, Lebanon still inhabits the biggest portion of the CSR resourcefulness as a superior mass of business is still focused in this nation.

Byblos Banks CSR approach emphasizes on the zones of community, tutoring, wellbeing and surroundings. Possibly the most momentous CSR investment lately commenced by the bank was the $4 million restoration of the Fidar Bridges, which was demolished in the July War of 2006. In additional proposal to assist on the assembly front, the bank donated $1 million in recompense to the losses of the Geitawi blasting in Beirut. Other communal set CSR platforms target to reserve Lebanons individuality and philosophy. For instance, the bank formed a little announcement, titled Ana Loubani, to impulse Lebanese to clasp their distinctiveness. It also funded numerous other movies, which rejoice the matters of Lebanese-Armenians, Lebanese townships and archeological locations. In terms of edification, for the past two and a half decades, Bank Byblos has supported an occurrence identified as Childs Week. The intention of the database is for backing up youngsters by assisting them to comprehend their creative endowments. The bank also provisions the UNICEF Adopt-a-School ingenuity and the Childrens Cancer Center of Lebanon. From a social standpoint, Byblos Bank has subsidized the Byblos International Music Festival for eight uninterrupted years, amid other developments. The bank underwrites to ecological packages that dampens scattering in the ocean and the implanting of trees.

6. Management Organizational Structure

The senior managers of the Byblos Bank Group are:
Dr. Franois S. Bassil Mr. Semaan F. Bassil H.E Mr. Sami Haddad Mr. Alain Wanna Chairman and General Manager Vice-Chairman and General Manager Executive Director Deputy General Manager, Head of Group Financial Markets Division

Mrs. Joumana Bassil Chelala Deputy General Manager, Head of Group Consumer Banking Division Mr. Marwan Moharram Assistant General Manager, Head of Group Credit Risk Management Division

Mr. Raffoul Raffoul

Assistant General Manager, Head of Group Organization Development, Information Systems, and Operational Support Division

Mr. Philippe Saleh Mr. Walid Kazan

Assistant General Manager, Head of Group Risk Management Division Assistant General Manager, Head of Group International Network Division

Mrs. Renalda Hayek Mr. Joseph Nasr Mr. Gilbert Zouein

Assistant General Manager, Head of Group Human Resources Division Assistant General Manager, Head of Distribution Network Division Assistant General Manager, Head of Group Products, Segments and Marketing Division

Mr. Fadi Nassar Mr. Fadi Hayek Mr. Ziad El Zoghbi Mr. Flix Tohm Mrs. Nada Tawil

Assistant General Manager, Head of Commercial Banking Division Head of Group Internal Audit Division Head of Group Finance & Administration Division Head of Financial Institutions Department Head of Group Communication Department

7. Corporate Governance
Byblos Bank has been constructed round translucent business rehearses, accountable loaning guidelines and vigilant speculation approaches, all of which have permitted the composition of a strong and operative risk domination assembly at board and administrative ranks. Furthermore, the Byblos Bank Group establishes steady appraisals to guarantee that its governance prototypical rests suitable to both supervisory necessities and market expansions and that all applicable switches are being obeyed. The schemes, codes of conduct and inner panels are intended to encounter the necessities of Basel II and other worldwide principles.

8. Management Principles

Byblos Bank has exerted particular management ideologies that have been urbanized from organizational philosophies in their dealings. A management code can purely be demarcated as somewhat that appears to be crucial. Midst those that have been smeared by Byblos comprise the subsequent: 1. Division of labor (specialization): that can affect sophisticated level of efficiency; 2. Authority and Responsibility: Authority is the license to transport instructions, while responsibility means the responsibilities of the persons for the activities they accomplish; 3. Discipline: Attendance of veneration for, as well as compliance to, the association principles and objectives; 4. Oneness of command: Briefings should be expected from one superintendent by each associate so that struggle and misperception can be diminished; 5. Unity of guidance: The bank demonstrates to be further effectual when similar objectives are trailed by all associates who perform accommodatingly; 6. Individual interest subordinating into general interest: The apprehensions of one staff member should not exceed above the establishments welfares; 7. Reimbursement of personnel: Imbursement should continuously be pure as well as rational and incentive should be specified on upright performance; 8. Centralization: An exceptional equilibrium should be existent amongst decentralization and centralization; 9. Scalar chain: Conferring to the standard concerning unity of command, hierarchy spectacles a linking amid all bank associates from upper to lowest; 10. Order: Every being as well as the whole things should be prearranged appropriate abode; 11. Equality: Employees should be rendered fairness; 12. Permanence of tenure of work force: A member of staff requires time to develop of being familiarized to innovative performance and increase achievement to do it more professionally;

13. Initiative: Thoughtfulness and implementation of outlines at all marks; 14. Union is strength: Faithfulness, superiority, and affiliation logic certainly marks in greater performance.

9. Organizational Effectiveness
Byblos bank can commonly be viewed as an operational establishment and there are numerous motives to this which will be deliberated here under organizational effectiveness. Organizational effectiveness reading has been established in rather an intense style with the broad classifications theory concepts were implemented and also with adjustments in the sophistication and organizational surroundings. Im dealing here with the subject that when those notions were progressed and then applied crossways a widespread assortment of management turfs. Here two seriously significant developing scopes or potentials of efficiency, that are Institutional (bank) resiliency and Institutional (bank) agility are discovered and clarified concerning their consequences. Organizational effectiveness supports in the measurement of the accomplishment of their responsibilities with the benefit of their practical central strategies in a fruitful method. Organizational effectiveness displays competences established by societies to guarantee their attainment. The more difficult surroundings are formed for the maneuver; the talent backing up prior enactment will not perform that much. High-ranking executives and HR specialists must have an indulgent of the inferences of the opening existing among evolving requirements and present practice. The quest for new simulations and conceptions is currently on in order to aid in amplifying what is going on in the surroundings, and the way how banks can go on for the accomplishment of grander performance with the expansion of more useful abilities as well as competences. Byblos bank concept emphases on the individuals, the assembly, related party, and the massive set of establishments trusting each other as a consistent and vibrant entity.

The acknowledgment of the setting role in inducing the performance of the bank onward made it conceivable to discover the powerfully mounting marks of complication as well as the proportion of ecological modification consequential in the formation of new great loads needed. Similarly fresh talents and proficiencies are essential by those loads.

10. The Evolution of Organizational Effectiveness Concepts

The philosophy of organizational effectiveness radically progressed almost 50 years ago when ideas of overall schemes theory were fused with dominant theory of management. This amalgamation was a sign of the start of a pattern change that is an innovative means of the surveillance of the world and viewing relativity to another, which can be associated to a change from old age to new thinking. The sturdy result of organizations theory and the special demand for organisms thinking is very strong. Systems theory raised the formation of an awareness of the greater setting of the bank and also offered an upsurge to the prerequisite for the administration of its energetic as well as multifarious interdependencies. Responsiveness about the indispensable basic for banks to adjust to the accessible situations was also developed. This notion though signaling pretty humble now, it was taking an excessive consequence at that period. The groundwork was delivered by Systems transmitting from some renewed viewpoints like contingency theory thus emphasizing on the importance of configuration and stratagem. Systems thinking put an excessive stimulus on other arenas of management and also on leadership/governance theory which finished the equivalent to convert to situational leadership, the perception that the extremely prominent leadership smartness was reliant on upon the condition.

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CORPORATE STRUCTURE OF BYBLOS BANK