1

The Critical Role of Leading Function in Bank Muscat's Organizational Success: An

Student Name & ID

Course

Instructor

Date
 2

Introduction

Bank Muscat was established in 1982 and is now one of the largest and most respected financial

houses in Oman, providing a full range of services including retail banking, corporate banking,

investment banking, and private banking. Bank Muscat has a presence not only locally but also

regionally, with an extensive network of branches across the Sultanate of Oman and an

expanding presence into the broader GCC. As one of the big players in Oman's banking sector,

Bank Muscat continues to accelerate economic growth due to appropriate financial solutions for

businesses and individuals. The bank manages its internal structure according to a hierarchical

framework that shows that all operations are managed efficiently. The Board of Directors and the

CEO are at the top of the hierarchy, responsible for determining the strategic significance of the

bank. Middle management, comprising departmental heads and branch managers, are entrusted

with the creation of these strategic objectives into executable plans of action. The lower

management, comprised of supervisors and frontline staff, performs day-to-day operations and

ensures that the needs of the customers are met. This essay focuses on the Leading function,

which I consider to be the most important function for Bank Muscat to continue to be successful.

Effective leadership at all levels is essential in terms of ensuring employee motivation and being

aligned with organizational objectives and thus capable of providing high-quality services to

customers.
 3

Chosen Managerial Function: Leading

Among the five key managerial functions such as planning, organizing, staffing, leading, and

controlling, I believe that Leading is most crucial for Bank Muscat. Leadership as a managerial

function refers to guiding and motivating and influencing employees so that the objectives are

fulfilled (Davis, 2021). Unlike the more technical aspects of organizing or planning, leadership

focuses on the human part of management: motivating workers, building relationships, and

infusing a sense of direction upon the labor force. For Bank Muscat, leadership is equally crucial

in exposing appropriate effects that may have impact on the performance and engagement of

staff related to customer satisfaction and overall success. The leaders in the bank, particularly at

the top and middle tiers of its management, are very important in instituting the corporate culture

that would ensure the bank's institutional values of integrity, excellence, and innovation are

inculcated and lived by all ranks within the organization. In addition, leadership in Bank Muscat

is not restricted to the highest level of management as such leadership passes at large within the

entire organization. Branch managers, team leaders, and supervisors are also responsible for

motivating their respective teams, clearly communicating expectations, and ensuring proper

pursuit of the bank's goals. From a broad perspective, even the best of strategies and plans cannot
 4

be satisfactorily realized without effective leadership, as this would lead to low morale of the

workforce, lack of direction, and inadequate coordination (Davis, 2021). This effective

leadership has also made Bank Muscat able to manage with the rapid pace at which changes take

place in the banking environment due to new technologies, shifting customer expectations, and

regulations. The leadership of Bank Muscat has focused not only on day-to-day operations but

also on creating a forward-moving mentality that keeps on promoting innovation and

adaptability. Leaders have, for example, led to the inclusion of the drive for digital

transformation in the bank, thus enabling the bank to retain a digitalization-rapid market of

financial services. This includes online banking platforms, mobile banking applications, and e-

payment solutions. The most important thing in such initiatives is leadership, as setting a clear

vision, aligning teams with the company's digital goals, and training employees for new

technologies are keys to success.

Interaction with Other Managerial Functions

Although Leading is the primary focus of this essay, it must be recognized that this function

operates in cooperation with the other four managerial functions: planning, organizing, staffing,

and control. Each contributes to developing and sustaining leadership competencies. The first

and perhaps the most obvious function is planning. Planning represents one of the bases that give

leadership clear guidance on what they need to do while leading their teams (Malsam, 2024).

Unplanned action, therefore, often characterizes a leader without adequate direction to lead the

organization to its set goals. For example, Bank Muscat's leadership team collaborates with

upper management to set strategic goals such as expanding their digital banking services or

improving customer satisfaction scores. The leaders will have to communicate the strategic plans

clearly and regularly so that every part is aligned. Organizations provide leadership in such a
 5

way that the right resources—human, financial, and technological—are available to accomplish a

bank's objectives. Bank Muscat leaders organize the resources that will enable the employees to

excel in the latest technologies, training, and tools to perform at the highest level. Likewise,

staffing is an important activity whereby the right people are placed in the appropriate positions

(Malsam, 2024). Control is also needed so that the manager may follow the progress and institute

changes in the course when required to ensure achieve achievements. Without an effective

control, the leadership will lack sufficient feedback to keep on track. In other words, leading

function is the major function, but it requires organizing, staffing, and controlling to be fully

effective.

Impact Without Leading

The absence of Leading at Bank Muscat would have significant negative impacts. Leadership is

crucial to give a direction to employees so that they can work in tune with the organizational

objectives, culture, and performance. In their absence, the staff may feel inadequate or without

direction in their work, leading to inefficiency, disengagement, and low morale (Davis, 2021).

For example, when the management of the bank failed to give proper guidelines on how

customers must be treated, employees would have different ways of dealing with customers.

Poor experiences and low satisfaction would then lead to the loss of this competitive banking

industry, which requires hard-won loyalty among its customers. Besides, without leaders, the

difficulties of adapting to changes in the financial sector would hinder the bank's operations.

Leadership is essential in periods of change, such as those presented by new customer

expectations or technological advancements, combined with new regulations (Kapur, 2018).

Without leaders guiding the organization through those transitions, the bank could fall behind in

innovation and fail to compete with competitors. For instance, the banking industry is becoming
 6

automated, deploying the use of AI customer services and digital solutions. Without proper

leadership, Bank Muscat will struggle to adopt these technologies or leave the usage of such

technologies efficiently among their staff. The bank could eventually lose its competitive

advantage created for modern consumers.

Why Leading is the Most Important Function

From the perspective of Bank Muscat, leading is the most important managerial function because

it is the driving force for employees, promotes innovation, and sees that the bank remains

competitive. According to various studies, leadership has been one of the most persistent drivers

of employee performance and organizational success (Kapur, 2018). Strong leadership at Bank

Muscat creates an enabling organizational culture wherein collaboration, trust, and a

commitment to standards are appreciated. The interaction of employees regarding this culture

enhances their performance levels, helping them to contribute toward the delivery of excellent

customer service. In addition, leadership at Bank Muscat plays an important role regarding the

tips for driving the bank's strategic initiatives, such as improving its footprint in digital space and

enhancing its product proposition. Such great programs and projects would not have the requisite

vision for success without great leaders at their helm. Also, concerning the issue of retaining

employees themselves, it is very important that a company provides leadership so that the

employees are directed, have some sense of where they are going in the organization, and have

opportunities for personal and professional growth (Kapur, 2018). In this regard, leadership is

directly associated with the bank's ability to maintain superior talent and maintain a high level of

employee satisfaction.

Conclusion
 7

In short, leadership is unarguably the most crucial management function at Bank Muscat. From

maintaining a cohesive and motivated workforce to adapt to changes in the industry, and

ultimately to providing excellent customer service, it is through effective leadership that the

organization can manage all this in place. While planning, organizing, staffing, and controlling

are all imperative managerial functions, none of these functions have any significance without

strong leadership to motivate and facilitate them. Leadership sets the model for the rest of the

entity in that it mobilizes its employees to realize shared visions and goals while sustaining

responsiveness within a dynamic financial world. As Bank Muscat proceeds with its

strengthening of position and unprecedented expansion, leadership will continue to be at the

heart of its prosperity and viability in the competitive banking industry.

References

Davis, B. (2021, December 8). 5 principles of great management. UAGC.

https://www.uagc.edu/blog/5-principles-of-great-management

Kapur, R. (2018). Managerial Functions within the organization. Research Gate, https://www.

researchgate. net/publication/323825490_Managerial_Functions_within_the_

Organization, pristupljeno, 11, 2020.

Malsam, W. (2024, October 4). Management levels & the four functions of management.

ProjectManager. https://www.projectmanager.com/blog/four-functions-of-management