YARDISTIC I NTERNATIONAL

COLLEGEDEPARTMENT OF MASTER OF BUSSINES ADMINSTRAION

COURSE TITLE: ORGANIZATIONAL BEHAVIOR &

DEVELOPMENT

COURSE NUMBER:- MBA 612

STUDENT NAME: -Kassahun Abebaw

ID: MAO/1855/13

SUBMITTED TO: Prof. Belete

SUBMITTED BY: Kassahun Abebaw

SUBMISSION DATE: MAR/30/2022 G.C

Organization Case Study Project is an assignment that requires a case study of an organization,
business or company based on empirical data addressing the overall aspects of the organization with a
focus on its organizational behavior make up. The study should address the background, vision, mission
and values, products and services, structure and design, leadership styles, cultures, work environment
and job satisfaction, and reforms and change management

I have selected commercial bank of Ethiopia the organization that I am

currently working for my assignment.

Background of cbe
The history of the Commercial Bank of Ethiopia (CBE) dates back to the establishment of the State
Bank of Ethiopia in 1942. CBE was legally established as a share company in 1963. In 1974, CBE
merged with the privately owned Addis Ababa Bank. Since then, it has been playing significant roles
in the development of the country.

CBE is the pioneer to introduce modern banking to the country. It has more than 1700 branches
stretched across the country. It is from the leading African bank with assets of 1 trillion Birr as on
June 30th 2021. Plays a catalytic role in the economic progress & development of the country. The
first bank in Ethiopia to introduce ATM service for local users.

Currently, CBE has more than 30 million account holders and the number of Mobile and Internet
Banking users also reached more than 6 million,5000 as of June 30th 2018. Active ATM cardholders
reached more than 4.4 million. As of June 30, 2021, 4100 ATM machine and 11,796 POS machines
were available. 

It has a strong correspondent relationship with more than 50 renowned foreign banks like Commerz
Bank A.G., Royal Bank of Canada, City Bank, HSBC Bank,... CBE has a SWIFT bilateral arrangement
with more than 700 others banks across the world.
CBE combines a wide capital base with more than 60,000 talented and committed employees.
Pioneer to introduce Western Union Money Transfer Services in Ethiopia early 1990s and currently
working with other 20 money transfer agents like Money Gram, Atlantic International (Bole), Xpress
Money.

The vision of cbe

cbe have a well known vision statement which says “To be a leading world class commercial bank in the
year 2025”

The mission of commercial bank of ethiopia

We are committed to best realize stakeholders' needs without compromising the well being of our
environment and society through Enhanced financial intermediation globally, supporting national
development priorities, deploying highly motivated, skilled and disciplined employees as well as state-
of-the-art technology

The core values of commecrcial bank of Ethiopia

Currently cbe have the following core values which are given due attention by it’s employees to do their
tasks within their work area.

INTEGRITY:-this indicates that each employee should be loyal for his activity when he serves his
customer in his work place and even out side.
Professionalism:-this core value states that each bank employee should be well equipped with the
profession or knowledge that the bank needs.

Team work:team work is one of the core value it indicates that the bank work by itself needs that
working by collaboratin. Which means in the bank no work which can be finished by one employee so
there will be team work.

Respect for diversity:-this core value teaches that as cbe have the vision of be a world class bank and
work through out the world the employees of cbe shuld respect different religions, nations races etc.

Learning organization:-even cbe is the poinor for every thing in the banking industry in Ethiopia it will
learn modern technologys from the world to give special services and to be copmitant world wide.

Empowerment:-which means to get succesors there will be deligation of employees to the next carrer.

Service excellence:-cbe always try to give excellent service to their customers.

Corporate citizenship :- which means all cbes proceders and directives should respect the countries low

Products and services of ethiopia

Saving Account Commercial Bank of Ethiopia

a)normal saving account

this is a type of saving account which is opened for every individuals who is the age of above 18

and have interest of 7% per year.

b) women saving account:-this type of account is opened for women only with a
special interest of 7.25%.

c) youth saving account:-this type of account is opened for youths who have the age
between 18-24 and have interest of 7.25.%.
d) teen-youth saving account:-this type of account is opened for teens who
can’t give their spacemen signature and also havn’t their own income.

The above saving products are the main products but cbe have other many types of products
which have special purpose for customers.from those :-

Educatin account

Weeding account

Holyday account

And also there are interest free banking banking products which are given for customers
who doesn’t want interest with their religion or other reasons.

Demand Account
Definition: This is a non-interest-bearing account and only literate customers can open such an account.
The demand account can be either a checking or current account. In addition to literate customers, legal
agents named by the principal can also open and/or operate demand accounts. The process to verify
such a legal agent has to go through the bank’s legal department, area offices, or branch managers.
Situations determine who verifies that. If all the legal documents are successfully processed, a minimum
of 500 birr for a current account, and 1000 birr for others.

Demand Account Types provided by the Commercial Bank of Ethiopia

Some terminologies might be difficult to understand. However, it can be easily understandable

depending on your need. You can have an ordinary demand deposit, special-demand deposit, or ECX
related accounts. These are the three types of demand accounts provided by the Commercial Bank of
Ethiopia.

Required Documents

Same as the personal account, if you are an individual, you must bring any credentials that verify you,
like passport, ID, school ID, etc.
Additionally, if you are a Private Limited Company, you must possess any documents that ensure that
you are a PLC, like a work permit paper, legal business opening file, etc.

Commerical Bank of Ethiopia Diaspora Account

Definition: Individuals, companies, and residing foreign citizens as well as Ethiopians who have lived
more than a year abroad and Ethiopians by origin but have different nationalities, are eligible to have a
non-resident account, known as a Diaspora account. Such an account is a non-interest bearing account
and can be used for payments within Ethiopia (local payments) as two types have an interest, namely
Fixed Time Deposit and Non-Repatriable Diaspora account. The source of the deposits is in foreign
currencies, which the bank will use the current date for the exchange price. See other the list of best
banks for diaspora

Non-Resident Account Types provided by the Commercial Bank of Ethiopia

There are 5 types of Diaspora account that the Commercial Bank of Ethiopia provides for its customers:

Diaspora accounts

Non-Resident Transferable for Birr Account, AKA (NR-T Birr)

Non-Resident Non-Transferable for Birr Account, AKA (NR-NT Birr)

Non-Resident Transferable foreign currency, AKA (NR-T)

Foreign Exchange Retention accounts

Required Documents

The following must verify their ownership to legally have a Diaspora account in Ethiopia:

Foreign Nationals of Ethiopian Origin

Exporters

Diplomats

Non-Resident Ethiopians
Embassies

International Organizations

Foreign Investors

International Charities

Emigrant(refugee) Employees of International Organizations

Services of cbe
Cbe have many services provided for its customers

muday bank service:- this type of service is provided for customers who have running small business
and can’t access bank service due to lack of time to deposit at their work place by a safe deposit box.

cash pick up service:-this type of service is provided for customers who runs big business and havn’t
enough time .the bank deligates employees to collect cash from the customers work area.

cash implant service:-this service is provided for customers who are large in numbers but have not bank
access neer by.it is just like outlet branches.

safe custody box:- it is a type of service provided by cbe by providing a safe locker to put their jioleries
and important documents at safe place to protect from theft by a rent bas

Structure and design

:Cbe have study the new structure by Frankfurt school of finance by thinking to and create good
working environment and bring service excellence. generally to bring the following advantages,

Created Human Resources Development (HRD) Strategy and supporting systems;

Helped CBE implement the newly developed HR Strategy and align its various HR systems with
the overall strategy;
Established the newly developed HRD processes for CBE and developed newly hired HRD staff
through intensive on-the-job coaching and class-room training programmes;

To increase the capacity of CBE staff, Frankfurt School supported CBE in setting up a
professional training center (Center of Excellence); and,

Ensured success of the new initiatives through continuous support to HR staff in the
professionalisation of daily operational HR work and administration.

More than 1,000 trainings have been delivered to CBE staff members to date. Frankfurt
School’s senior training experts developed tailored training curricula and materials and
delivered trainings to different staff levels. Topics covered a wide variety of technical and soft
skills such as branch management, credit management as well as negotiating skills and change
management

The following activities were carried out under the Organisational Structure Study:

Gap and SWOT analysis;

Designed a functional matrix bridging organisational design and processes; and,

Organisation translation of processes and development of a process matrix based on the SWOT
analysis.

Based on these deliverables, Frankfurt School experts developed an implementation plan and
manual for the Bank. The organisational structure study provided CBE with insights that
enabled them to restructure the Bank and move towards the goal to becoming a World Class
Bank by 2025.
LEADERSHIP STYLE OF CBE

Even if there is no research’s which is studied about the leadership styles of cbe I think that cbe practices
transactional type of leadership .the main reason that pushes me to decided is that , managers use
promotion or recognition for employees who works like the managers wants and they are not ashamed to
punish the same employee if the think he works unlike them. Generally transactional leadership style a
positive effect on job satisfaction .

Organizational culture
There is a positive culture strengthening the existing positive cultural elements, the bank should also provide
effective integration & coordination of systems among departments, continuously develop their employee’s
skills & capacity and reinforce people orientation. It should also embrace an innovating culture and
encourage employees to adhere to culture of outcome orientation.

Working environment of cbe

The working culture of the bank is good and the hardest part of the job is the work load due to
un proportionality between the customers and employees .the bank investing on employees for
training and development which helps employees to be compititors. the bank has been
expanding its number of branches continuously which helps employees to be assigned at
nearest location with better salary ,due to the hard working culture of the bank and quarterly
rotation employees learned about hard working and got general knowledge about the banking.

Job satisfaction in cbe:-

The job satisfaction of employees of employees in commercial bank of Ethiopia is mostly low, the
main reason for the low job satisfaction is low job promotion from one grade to the next and also
low lateral transfer from place to place. even if the bank procedure and employees collective
agreement sates that one employee can transfer laterally from one place to other if he works more
than two years in one place he can transfer laterally, practically it is not worked . so it becomes the
main reason for unsatisfied employee.

Reforms and change management in cbe

As it is well known cbe is government owned commercial bank which facilitates the duties of the
government on behalf of it. So due to reforms of government in Ethiopia the political unrest directly
teaches commercial bank of Ethiopia to change its managements. Since 2018 cbe changes it’s top
managements more than three times. due to change of management there is also reforms on the
internal structure of the bank, and it creates uncomfortable work environment for employees .