ZCZB6503ORGANIZATION MANAGEMENTMASTER OF BUSINESS ADMINISTRATION 2010/2011Graduate School of BusinessUniversiti Kebangsaan Malaysia

CASE:

(BANK MUAMALAT INDONESIA)

TRAINING & DEVELOPMENT

PREPARED FOR:

ASSOCIATE PROFFESOR NIK MUTASIM BIN HAJI NIK AB. RAHMAN

PREPARED BY:

NURUL ADLINA SHAMSUDIN ZP00769

RADZIATUL SHIMA MOHD SHAH ZP00791

BANK MUAMALAT INDONESIA-TRAINING &DEVELOPMENT

INTRODUCTION – TRAINING & DEVELOPMENT

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BACKGROUND BANK MUAMALAT INDONESIA

Company’s Background

PT Bank Muamalat Indonesia Tbk was established in24 Rabius Tsani 1412 H or

November 1, 1991, endorsed by the Indonesian Council of Ulemas (MUI) and the Government

of Indonesia, and commenced operations in 27 Syawwal 1412 H or May 1, 1992. Supported by

the Indonesian Association of Moslem Intellectuals (ICMI) and a group of Moslem

entrepreneurs, the founding of Bank Muamalat also won the support of the general public,

evidenced by a Rp 84 billion pledge for the purchase of the Bank's shares on the date when the

Articles of Association was signed. Thereafter, in a special meeting commemorating the

founding at the Presidential Palace in Bogor, West Java, additional pledges from communities in

West Java were raised to reach a total of Rp 106 billion.

Presently, Bank Mumalat provides services to excess of 2.5 million customers through

275 outlets spread across 33 provinces in Indonesia. The network is also supported by alliance,

through more than 4000 Online Post Office/SOPP, 32,000 ATMs, as well 95,000 debit merchant

across the country. Besides, BMI is currently the first and only Indonesian bank running its full

branch in Kuala Lumpur, Malaysia. To improve accessibility to customers in Malaysia, BMI

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works on cooperation with the Malaysian Electronic Payment System (MEPS) network, so that

BMI can be accessed in more than 2,000 ATMs in Malaysia.

As The First Purely Sharia Bank in Indonesia, Bank Muamalat committed to deliver

banking services that not only comply to sharia, but also competitive and accessible to the

public. The appreciation is continue to come from the government, mass media, national and

international institutions through more than 70 prestigious awards received by BMI in the last 5

years including as The Best Islamic Bank in Indonesia 2009 by Islamic Finance News (Kuala

Lumpur), as The Best Islamic Financial Institution in Indonesia 2009 by Global Finance (New

York) as well as The Best Islamic Finance House in Indonesia 2009 by Alpha South East Asia

(Hong Kong).

Vision

To become the premier sharia bank in Indonesia, dominant in the spiritual market,

admired in the rational market

Mision

To become a role model among the world's sharia financial institutions, emphasizing in

entrepreneurial spirit, managerial excellence, and innovative investment orientation to maximize

value to stakeholders.

Product Offered by BMI

Bank Muamalat Indonesia (BMI) offers an array of products and services to depositors

and creditors as well as financing products. All of those, which are classified as either “Products

for the Creditor”, also known as “Sahibul Mal”; or “Products for the debtor”, also known as

“Mudharib”. Products for the Creditor offer a collection of deposit options for money owners,

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with different schemes and requirements customized to specific needs and size of deposit. This

line includes Ummat Saving (the ultimate saving option), Mudharaba Deposit and Haji Arafah

Saving (saving for the purposes of pilgrimage).On the other hand, Products for the debtor offer

products in lieu of direct lending of money to the client. This line of products includes Murabaha

Credit, Istishna, Murabaha Financing, Musyaraka Financing, and Rahn (Shari’a Pawning).

Organization Structure

The hierarchical structure of Bank Muamalat consists of a Board of Commissioners, a

Shari’a Supervisory Board, a President Director and the subordinated business operation and

managerial units. BMI’s Commissioners are at least three members nominated from the date of

the General Meeting of Shareholders and expiring on the fifth closing Annual General Meeting

of Shareholders as of the date of their appointment, without prejudice to the rights of the General

Meeting of Shareholders to dismiss the members of the Board of Commissioners from time to

time prior to the expiration of their term of office, if the members of the Board of Commissioners

are deemed to have not conducted their duties as stipulated in the Articles of Association and/or

resolution of the General Meeting of Shareholders. The main duties of the Board of

Commissioners is to supervise the policy of the Board of Directors in managing the bank,

provide advice, supervise the implementation of the tasks resolved in the General Meeting of

Shareholders, follow the development of the bank’s activities and, in the event deterioration is

indicated, immediately report to the General Meeting of Shareholders, together with

recommendations.

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BANK MUAMALAT INDONESIA-TRAINING &DEVELOPMENT

TRAINING & HUMAN RESOURCE IN BANK MUAMALAT INDONESIA

Training and Human Resources

To help enrich the knowledge and enhance the skills of BMI staff, the Bank Muamalat

Indonesia has established an institution called Muamalat Institute to specifically provide

training in the form of short-term courses and long-term programs such as The Muamalat Officer

Development Program. BMI visions training candidates for future leadership. The training

subjects include Shari’a Banking, service excellence, domestic operations, financial literacy,

fundamentals of investment, asset and liability management, audit literacy, power speech,

performance management, problem solving decision making, human resources management,

training management, celestial management training and leadership. The duration of each

program extends between sixteen to twenty four sessions with one hour duration for each

session.

The course outline will usually recommend who should attend the course, the course

background, course objectives and course benefits. For example, the Islamic Banking Training

course recommends bankers, students, lecturers and researchers to attend the course. The

background spoke about the rapid growth of Shari’a banking and Shari’a denominated assets,

and therefore the need for this course. The benefits are the knowledge of Shari’a banking

concepts and their applicability in the national and international scenes. The duration of the

course was offered to be between one and seven days, according to the requirements of the

client. As another example, the Basic Financing course recommends account managers,

investment managers, students and lecturers and accountants to attend the course. The

background considered why financing is important. The objectives were to train officers/

students in both conventional and Islamic banking. The benefits were to have a better

understanding of the field.

BMI sends its employees to several external training institutes other than the Muamalat

Institute, namely IAS Associates, Lembaga Pelatihan dan Pengembangan Manajemen

(LPPM)/Training and Management Development Institution, Prasetya Mulya, DUNAMIS and

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Management Institute of Economics Faculty University of Indonesia. On the other hand,

internally executed programs will usually involve a BMI official and other expert and will

involve members from SSB infrequently due to their busy schedule.

Muamalat Institute

Muamalat Institute (MI) is an educational institution, research, consulting and specialized

publications for economics, finance and banking which was founded in 1992. With the theme Go

Global and Go Rural, we help prepare the active participation of the people of Indonesia to

develop and implement the Islamic economics in the international and Indonesian territory.

In line with increasing demand and development of Islamic banking and other Islamic

financial institutions in Indonesia, then, MI also increased its role to help produce the caliber of

experts that could participate in the international and domestic, especially in the development

and application of economics, finance and Islamic banking. Establishment Muamalat Institute is

in order:

Improving the economic life of society, particularly Muslims in Indonesia through the

establishment of institutions based on Islamic principles.

Develop and disseminate Islamic financial institutions in Indonesia, so it can be one

cornerstone of the nation's economy.

Printing workers - qualified professionals who master the principles - principles of

Islamic economics so that they can better participate in the economic development of

Indonesia.

Develop, promote and provide education about the Islamic economic system to the

Indonesian people, especially Muslims.

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Below are the examples of internal and external training provided by Muamalat Institute:

Internal Training External Training

Asset Valuation Training Risk Management Training Level 2

Graphonomy Training Remedial Training

Project Finance & Loan Syndication Training Trade Finance Training

Shariah Legal Aspect Training Sukuk Structuring Training

Sharia Banking Accounting Training (Basic) Strategic Marketing Management : Nine Core

Elements Of Marketing Training

Sharia Selling Skills Training Business Etiquette And Grooming Training

Bank Muamalat’s Induction Program Managing Service Recovery Training

Service Excellence Training Risk Management Training Level 1

Sharia Basic Operation Training Managing Customer Relationship Training

Account Manager Training (Intermediate) Training Litigasi

Account Manager Training (Basic) Short Course For Islamic Banking Back Office

Protokoler Training

Professional Funding Sales Training

English For Customer Care Training

Presentation Skill Training

Powerfull Selling & Negotiation Skill Training

Effective Business Communication Training

Photography Training

Branch Manager Development Program

Beyond Banker's Spirit Training

Asset Valuation Training

Graphonomy Training

Project Finance & Loan Syndication Training

Shariah Legal Aspect Training

Sharia Banking Accounting Training (Basic)

Sharia Selling Skills Training

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Induction Program

Service Excellence Training

Sharia Basic Operation Training

Account Manager Training (Intermediate)

Account Manager Training (Basic)

ISSUE ON TRAINING AND DEVELOPMENT FOR COMPANY

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Changing an Organization: A Training Contribution

This issue are discussing about how the training activity can change the company.

Training resources within the company were not enough for the purpose of carrying out the brief.

As a result, many form of management training was regarded with suspicion by traditionalists

and progressives are same.

The problem was to identify and harness it. Mission statements were formulated as a

matter of urgency and a corporate plan drawn up. The company needed a jolt, or so it seemed, in

order to help it to shake itself out of its inertia.

What Skills to Train? An Institutional Analysis of Training Consulting Organizations

Research on employee training has largely focused on either the employer or employees,

and has investigated the likelihood or amount of training rather than the content of training. The

understanding about how organizations decide to focus on different skills therefore remains

constrained. To address this issue, the study have made to examines what affects training

consulting organizations’ focus on different types of training, and in particular, their focus on

personal development training, a highly popular type of training in recent years.

Training organizations have become an increasingly important supplier in the training

field. Training organizations try to conform to the dominant organizational model at their

founding in order to gain legitimacy for their product offerings and convince their clients of the

efficacy of their services. The focus of training is thus shaped by the dominant organizational

model at founding and tends to stay with training organizations. Characteristics of training

organizations focused on personal development are also compared with those focused on other

types of training.

CONCLUSION

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Traditionally, training and development was not viewed as an activity that could help

companies creates “value” and successfully deal with competitive challenges. Today, that view

has changed. Companies that use innovative training and development practices are likely to

report better financial performances than their competitors that do not. Training and development

also helps a company to meet competitive challenges. Current recessionary economics times

have resulted in cuts in training and development budgets. However, companies need to

continue rely on efficient and effective training practices to help employees strengthen their

skills in order to improve or make new products, generate new ideas, and provide high quality

customer services. Development activities and career management also needed to prepare

employees for managerial and leadership positions and to attract, motivate, and retain talented

employees at all levels and in all jobs.

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Training and development are no longer in category of “nice to do”, but they are a “must

do” in order for companies to gain a competitive advantage and meet employees’ expectations.

The role of training has broadened beyond training program design.

Bank Muamalat Indonesia is focus on contributing the company’s competitive advantage,

training consultation (Muamalat Institute) will have to ensure that they are seen as helping the

business functions (marketing and finance) that meets their needs. Muamalat Institute must shift

the focus on training as the solution to business problems to a performance analysis approach. A

performance analysis approach involves identifying performance gaps or deficiencies and

examining training as one possible solution for the business units (customers). Muamalat

Institute will need to continue instructing managers to consider all potential causes of poor

performance before deciding that training is the solution.

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