The changing nature of the modern business environment requires considering organizational development (OD) practices. To mitigate potential complications, corporations must address the issues in the surrounding business climate.
The Impact of the Covid-19 Pandemic
Due to the pandemic, the necessity to transfer most banking operations to digital platforms has contributed to increased digitalization levels. For instance, with the spread of Covid-19 in Africa, the Central Bank of Morrocco has moved its traditional services to web platforms to ensure personnel and clients’ safety (Nachit and Belhcen, 2020). Nevertheless, a pertinent negative outcome of the pandemic was the rising demand for electronic devices.
Remote Inclusion
The pandemic has also positively affected the area of remote inclusion, allowing banks to recruit more employees for remote work. Nonetheless, a predominantly remote working schedule has numerous adverse consequences, such as a lack of communication between the employees, decreasing their performance and the banks’ outputs (Amrani and Najab, 2020).
Corporate Social Responsibility (CSR)
Amidst the Covid-19, Corporate Social Responsibility (CSR) became of particular interest. As such, the Central Bank of Morrocco introduced new health control requirements for the employees (Elgin et al., 2021). However, many banking organizations might have been negatively impacted by such demands, having to incorporate new measures and maintain organizational growth during a worldwide health crisis.
Financial Inclusion
The onset of Covid-19 has also positively influenced the financial inclusion practices in the banking industry. For example, the Central Bank of Morrocco has expanded its financial coverages for different clients, from local households to large-scale businesses (Queyranne et al., 2021). Nevertheless, this decision has also significantly strained the bank, resulting in the depletion of available resources and financial constraints.
Cybersecurity and Information Security
The pandemic environment has also prompted the development of stricter protection measures. For instance, the Central Bank of Morrocco has integrated novel technological measures to counter possible issues with personal data storage (Amrani and Najab, 2020). On the other hand, In times of crisis, banking organizations become especially vulnerable to cyberattacks and information leaks (Anderson and Moore, 2006).
Prominent Limitations of the Key Learnings
Global digitalization can lead to the depletion of materials necessary for producing digital devices. Since the beginning of the pandemic, shortages of equipment required for establishing stable access to online banking services have been reported multiple times (Amrani and Najab, 2020). In addition, with information being stored electronically, hacking and data leaks have become especially prominent.
Remote Working
The remote working tendency can also negatively impact the banking sector, especially the performance of the organizations’ employees. As remote working does not involve consistent face-to-face communication, many workers begin experiencing the symptoms of isolation and loneliness (Bailey and Kurland, 2002). Furthermore, employees working remotely often demonstrate higher stress levels than office workers (Bailey and Kurland, 2002).
Corporate Social Responsibility
Adhering to CSR might have not only diminished the bank’s funds but also restricted its potential growth. For instance, the Central Bank of Morrocco has initiated several programs to limit the negative influence of Covid-19 on society, which resulted in the depletion of financial resources (Elgin et al., 2021). Moreover, as Morrocco’s exchange rate anchor is limited, the Central Bank might not be able to secure the money supply necessary for further expansion.
Financial Inclusion
Ensuring that the bank’s clients can withstand the devastating economic complications limits the corporation’s ability to focus on organizational growth. Rather than planning organizational development, banking enterprises must address the population’s needs and appropriately distribute available resources (Elgin et al., 2021). Furthermore, given the variety of banks’ clientele, financial inclusion requires additional time and resources to establish, further decreasing the company’s capacity to counter the health crisis’s influence.
Cybersecurity and Information Security
Digital security and protection have become a vital issue for the banks during the epidemic. Establishing cybersecurity forced the banking organizations to experience difficulties due to the demand for digital services provision and considerably higher network load (Amrani and Najab, 2020). Additionally, protecting the stored information can result in additional expenses, compromising their financial stability.
Reference List
Amrani, O. and Najab, A. (2020) ‘COVID-19 and Islamic banking services: digitalisation as a post-crisis solution (case of Morocco)’, European Journal of Islamic Finance [Preprint], (16).
Anderson, R. and Moore, T. (2006) ‘The economics of information security, Science, 314(5799), pp. 610–613.
Bailey, D.E. and Kurland, N.B. (2002) ‘A review of telework research: findings, new directions, and lessons for the study of modern work’, Journal of Organizational Behavior, 23(4), pp. 383–400.
Elgin, C. et al. (2021) ‘Economic policy responses to the COVID-19 pandemic: the role of central bank independence, Economics Letters, 204.
Nachit, H. and Belhcen, L. (2020) ‘Digital transformation in times of COVID-19 pandemic: the case of Morocco’, SSRN Electronic Journal [preprint].
Queyranne, M. et al. Morocco’s monetary policy transmission in the wake of the Covid-19 pandemic. International Monetary Fund, 2021(249). Web.