Change Management in Financial Efficacy of Banks: Evidence from Oman

Abstract

Banking and financial sector assume a crucial role in enhancing economic development. During 1990s, when GCC countries underwent major economic reforms, the private sector had to play a leading role by participating in the economic development activities such as designing and implementing private programs in which the private sector can significantly contribute. Since the role of private sector has expanded, their financial requirements have increased. This gap was largely filled in by the banking sector for capital market has not been so effective in the Gulf region. Thus, Banking sector reforms have forced the banks in Gulf region to be more focused on satisfying customers developing new operating models, defining new business strategies to achieve operational efficiency in the changing environment. When it comes to Oman, the banking system is sound and efficient. A major challenge being faced by the banks in Oman is to manage the operational and strategic changes that are increasingly taking place after 1990 when major economic reforms were introduced. Efficient change management is the driving and resisting force for achieving the bench mark target in all functions of banks. The purpose of the study is to measure the financial efficacy of commercial banks in Oman after 1990s in the process of their way of handling the changes.