Challenging financial Institutions in the region on organizational culture change

Dritan Abazi1*, Donika Kërçini2

1Microfonance Stratey, SARL, Albania

2Agricultural University of Tirana, Albania

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AbstractThe father of modern management, Peter Drucker, concluded that “We are in one of those great historical periods that occur every 200 ore 300 years when people don’t understand the world anymore, and the past is not sufficient to explain the future”. We think that organizational culture is equal to quality management. At the same time, we think that quality management is determinant in the organizational performance. If management understands the preferred corporate culture of its organization, it can take steps to create or maintain that culture. Importantly, the people-management policies and procedures should be adjusted to align with and support the desired culture. Eventually, the competition for capital in the banking sectors will increase. This will push banks to look for ways to improve ROE or share price, depending on the markets. In other markets, this has led banks to get into risk areas that are not well understood by many, leading to losses. Our research also highlights an important potential competitive advantage for banks in the region. Increasing creativity should lead to new business opportunities. Creating a culture of creativity in banks in the region would be a challenging. Changing organizational culture is a challenging process and should not be influenced only by external environmental factors or the decision-making of the management, strengthening the organizational culture should be a process that must involve the entire organization by taking into account the preferred culture that is affected by local cultures and environmental changes.

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