The History of The Commercial Bank of Ethiopia

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 30 th 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.
a) 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.
b) Professionalism:-this core value states that each bank employee should be well
equipped with the profession or knowledge that the bank needs.
c) 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.
d) 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.
e) 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.
f) Empowerment:-which means to get succesors there will be deligation of employees to
the next carrer.
g) Service excellence:-cbe always try to give excellent service to their customers.
h) 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
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.
Leader ship styles of cbe

The finding of this study indicated that job satisfaction of CBE employees is significantly affected by
the two types of leaders behavior (transformational and transactional leadership style) in addition, it
was found that Laissez-faire leadership style has a negative effect on job satisfaction of CBE
employees while the remain two behaviors (transformational and transactional leadership style) had
a positive effect on job satisfaction .Accordingly the researcher forwarded the following
recommendation. The bank should determine the appropriate leadership style to implement for
employees to achieve organizational goal, the leaders should lead by example in certain situations
to provide as a role model for subordinates, the leaders in CBE should to implement its standardize
leadership style & should Further research studies can be conducted on the investigation of other
factors such as demographic factors , Future studies can benefit by including leadership styles other
variables in determining employee performance.
Organizational culture
Hence concluding that the overall culture of the bank edges to the negative end of the scale. The
study recommends that while it keeps on strengthening the existing positive cultural elements, the
institution 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 unproportionality between the customers and employees(human resource problem). The
bank investing on employees for training and development which helps employees to be
competitors, 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 hardworking culture of
the bank and quarterly rotation employees learned about hardworking 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.

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Organization Case Study Project

is an assignment that requires a case study of an

I have selected commercial bank of Ethiopia the organization that

The vision of cbe

The core values of commecrcial bank of Ethiopia

and have interest of 7% per year.

b) women saving account:-this type of account is opened for women only

c) youth saving account:-this type of account is opened for youths who

d) teen-youth saving account:-this type of account is opened for teens

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

Commerical Bank of Ethiopia Diaspora Account

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

 Gap and SWOT analysis;

Leader ship styles of cbe

Working environment of cbe

Job satisfaction in cbe:-the job satisfaction of employees of

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