Final report

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MGT 2010
THE PRINCIPLE AND PRACTICE OF
MANAGEMENT
Section 4
“CIMB’S EMPLOYEES DISSATIFACTION
ISSUES”
GROUP MEMBERS:
LUQMAN BIN MOHD BORHAN 1424913 ( 019 4747 906 )
MUHAMMAD MUSTAQEEM BIN MOHD SOPEE 1419355
MUHD AZRI BIN ABDULLAH 1419547
AHMAD HAZIM BIN IBRAHIM 1416735
COMMENTS:

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TABLE OF CONTENT
NO TITLE PAGE
1 INTRODUCTION 2-3
2 BACKGROUND OF COMPANY 3
3 MANAGERIAL ISSUES 4-5
4 ANALYSIS AND DICUSSION 6-10
5 SUGGESTIONS 11
6 ISLAMIC PERSPECTIVE 12
7 CONCLUSION 13
8 REFERENCES 14

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Introduction
CIMB is one of the well-established bank in Malaysia and also in Asia. This company
operated on Kuala Lumur operating in high growth economies in ASEAN CIMB has a wide
retail branch network with 1080 branches across the region. This group operates under several
entities which include CIMB bank, CIMB investment bank, CIMB Islamic, CIMB Niaga, CIMB
securities and CIMB Thai. The group’s business activities are primarily in the areas of Consumer
Banking, Wholesale Banking, comprising investment banking and Corporate Banking, Treasury
and Markets, and Group Strategy and Strategic Investment, with its core markets being Malaysia,
Indonesia, Singapore and Thailand. CIMB Islamic operates in parallel with these business, in
line with the group’s dual banking model.
The purpose of this assignment is to achieve known managerial issue of the CIMB and we did
researches to give a brief summary of the procedure that considers the powers and problems of
the CIMB corporation keep on by the explanations to get to the bottom of the issues. In the end,
we will evaluate our project objective and there are certain recommendations suggested by our
group and a conclusion of this whole project.
There are several objectives that we want to accomplish by the end of this research such as as a
manager how to deal with an externalities that give negative impact to the company, what kind
of characteristics that we need to have in managing a problem and lastly as a student we learned
how to do a research, and how to work in team.
As for CIMB issue, there are several questions that we are going discusse and do and analysis
on which are:
How the managerial department manage and monitor employees management issue includes:
 Unfair performance evaluation
 Bonuses qualification
 Issues dismissal of employees
 Violation of human employees right
How the impact on company and employee performance ?
 which affect strain relationship between employee and top management.
 Performance of company drop, sales drop.

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 Customer start to go to another bank.
After we did a thorough analysis and deep discussion we will give a suggestion to CIMB what
we think that CIMB should have done better in the first place and we will make a conclusion.
BACKGROUND OF THE COMPANY
CIMB Group's roots can be traced back nearly 90 years. From humble beginnings, it has
grown alongside ASEAN from a niche merchant bank in Malaysia to a regional banking
powerhouse. CIMB Group is a universal bank headquartered in Kuala Lumpur, operating in high
growth economies in ASEAN. CIMB Group is an indigenous ASEAN investment bank, the largest
Asia Pacific (ex-Japan) based investment bank and one of the world's largest Islamic banks. CIMB
has a wide retail branch network with 1,080 branches across the region. The group operates under
several entities, which include CIMB Group Holdings Berhad, CIMB Investment Bank, CIMB
Bank, CIMB Islamic, CIMB Thai, CIMB Niaga, CIMB Securities International and CIMB Thai.
The group's business activities are primarily in the areas of Consumer Banking, Wholesale
Banking, comprising Investment Banking and Corporate Banking, Treasury & Markets, and Group
Strategy & Strategic Investments, with its core markets being Malaysia, Indonesia, Singapore and
Thailand. CIMB Islamic operates in parallel with these businesses, in line with the group's dual
banking model. The group has over 40,000 employees located in 18 countries, covering ASEAN
and major global financial centers, as well as countries in which its customers have significant
business and investment dealings. The group's geographical reach and its products and services
are complemented by partnerships. Its partners include the Principal Financial Group, Bank of
Tokyo-Mitsubishi UFJ, Standard Bank and Daewoo Securities, among others.

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MANAGERIAL ISSUE
CIMB are well-known for its establishment in banking sector. The group operates under
several entities, which include CIMB Investment Bank, CIMB Bank, CIMB Islamic, CIMB Niaga,
CIMB Securities International and CIMB Thai. The group's business activities are primarily in the
areas of Consumer Banking, Wholesale Banking, comprising Investment Banking and Corporate
Banking, Treasury & Markets, and Group Strategy & Strategic Investments, with its core markets
being Malaysia, Indonesia, Singapore and Thailand. CIMB Islamic operates in parallel with these
businesses, in line with the group's dual banking model.
Despite among one of the rigid and well-established banking in Malaysia, CIMB also
encounter bad reports regarding managerial issues. These are the lists of the bad managerial
issues that issued to CIMB human resources department.
1.Unfair performance evaluation.
2.bonusses qualification
3. Issues dismissal of employees.
4. Violation of human/employees rights.
Based on the newspaper MalaysiaKini date 22 March 2013,it has been reported about 300
CIMB employees gathered and protest regarding this same issues. Ahli Kesatuan Sekerja Bank
(NUBE) NUBE protest against CIMB has been recorded in their official website; an article wrote
by Abdul Rahim Sabri, reporter of MalaysiaKini reported protester dress-up in red in front of
CIMB headquarters in Petaling Jaya, demanding to stop violate their right as employees .This
protester had protest 30 times since December 2012 and also in February 2013, they had protest
in Kangar, Alor Setar, Temerloh and Pekan.
1
www.Cimb.com
2
https://www.malaysiakini.com/news/224653
3
https://twitter.com/nubemalaysia/status/315077112979673088
4
https://www.google.com/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-
8#q=%E2%80%A2%20http%3A%2F%2Fwww.malaysiakini.com%2Fnews%2F224653
5
www.freewebs.com/animalorangutan/azpalmailcomplist.htm

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The main issue that CIMB faced was from the top management that do not know how to
do works. They do not take the case reported seriously and this apparently give CIMB a bad names
. The Employee association Ahli Kesatuan Sekerja Bank (NUBE) urged Datuk Seri Nazir Razak
as CEO of CIMB group to give respond and solutions for this matter. MalaysiaKini newspaper
also had email CIMB regarded this matter.

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Analysis and discussion
Unfair performance evaluation
ACTUAL “CASE HISTORIES” happen in CIMB group : For nine years, Margaret Chan, was
universally considered a top performer in her position as Vice Manager of one of CIMB
branches located in someplace in peninsula of Malaysia. Time and again, internal audits showed
her division to be among the most efficient, profitable and growing in the company. Year in and
year out, Margaret’s performance reviews were either “exceeds expectations” or “meets all
expectations.” What’s more, Margaret had received significant bonuses, promotions and awards
for her good work. That is why Margaret didn’t see it coming.
In February of each year, Margaret’s company disseminated annual performance reviews.
During the past year, Margaret’s division did not prosper, due to the economy, but it did not
suffer, either. And she had not received any negative reports, comments or complaints. As she
had each year before, Margaret received word she was to meet with her supervisor to go over her
annual review. Nothing new in that; that is what happened each year. Another reason that
Margaret didn’t see it coming.
When Margaret met with her supervisor, as was the custom, Margaret was handed a copy of her
annual review to read before the two discussed it. As she opened the papers before her, Margaret
was startled to see a few comments that seemed negative, and a few “needs improvement” boxes
checked. When she saw her overall evaluation to be “Partially Meets Expectations,” her first
thought was “They must have given me someone else’s performance review by mistake.” No
such luck; it was hers, and it was brutal.
Margaret went silent, and barely spoke a word throughout the entire meeting. As requested
Margaret signed her name at the bottom of the last page. Afterwards, she walked straight over to
Human Resources, and shared her feelings of upset, anger and betrayal. She was told there was
nothing she could do. She was told performance reviews are “not negotiable.” She was told that
perhaps she should consider whether her job was really the right fit for her. She was told perhaps
she should consider looking “elsewhere.”
She just never saw it coming. Worse still, far worse: she did not know where it was headed.
This story is one of the issue that shows managerial issue in conducting the performance
evaluation. We can see that is because they are sometimes “corrupted” by (a) false information,
making them potentially fraudulent, (b) improper motivations, such as discrimination or

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harassment, (c) damaging to professional reputations, and (d) in our humble opinion,
increasingly being used to deny employees what they have earned, the protections supposedly
afforded them by company policies, or even their jobs. Yes, we have come to view Performance
Reviews as sources of significant problems in the workplace.
Bonus qualification and issues dismissal of employees
CIMB Group Holdings Bhd and PT CIMB Niaga Tbk are offering employees in
Malaysia and Indonesia a voluntary mutual separation scheme (MSS). CIMB said the MSS was
put in place after looking at the current operating cost structure and desired efficiency levels
across the franchise. The group has over 41,000 employees located in 17 countries.
"This is consistent with return on equity and cost-to-income plans we have outlined for
the future," said CIMB Group Chief Executive Tengku Datuk Zafrul Aziz Tengku Aziz in a
statement. He said MSS was also a response to its employees both in Malaysia and Indonesia
who have enquired about such schemes. The MSS exercise received the backing of the Board of
Commissioners (BoC) and Board of Directors (BoD) of CIMB Niaga. To that extent, Zafrul said
the BoC and BoD of CIMB Niaga have decided to adopt the MSS and offer it to the staff in
Indonesia as this was consistent with the operating strategies of CIMB Niaga.
Actually what is MSS? Is it gives benefits to the employee? The answer is NO and we
found that MSS only give benefits to one single man only. MSS is a fancy corporate word for job
loss. The common practise would be to cut costs and only retrench staff in desperate situations.
Cut cost to save job should be the priority. Nazir took the option to cut jobs to save costs and his
annual multi-million bonus. It could be a typical heartless corporate move or only indicate a
desperate situation or hasty decision making.
Employees who were successful in their application will receive a package based on rank
and years of service, as well as options for extended medical cover for three years, and
participation in re-skilling and outplacement programmes, said CIMB Group. CIMB Group is
Malaysia’s second biggest financial services provider and one of Asean’s leading universal
banking groups. CIMB Group is listed on Bursa Malaysia through CIMB Group Holdings

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Berhad. It had a market capitalisation of approximately RM46.8 billion as at 31 December 2014.
The group has over 40,000 employees located in 18 countries. – May 17, 2015.
Since CIMB was appointed by Putrajaya to advise on potential sales of energy arm, Nazir
has been rather over eager to clear up the 1MDB issue and wanting for fast fee to liquidate
1MDB.
Already opposition and their propagandist were successful at railroading the listing plan.
As initiated by Sarawak Report's allegation of false documentation, many parties including Nazir
seemed to be assisting them to get bankers to pull the rug from under 1MDB.
The sabotage propaganda about the 1MDB by Opposition and Sarawak Report will
benefit CIMB and benefit to Nazri. They will be the first beneficiery CIMB could start to take up
their role as "liquidator" fast and immediately collect their exorbitant fee for their ailing
organisation. Fresh in the mind of market players are the exorbitant fees Nazir collect for the
unnecessary plantation tri-merger and many other mergers. It only shows the selfish and self-
centered nature of the youngest son of Tun Razak and Toh Puan Rahah.
Off course, he has basis to ask 1MDB Board of Directors to appoint an independent
auditors and not rely on audit by the Auditor General. There is common reservation among
accountants and civil servants in the ability of government auditor to verify Deloitte's signed
audited annual report for 2014 and in carrying out forensic audit.
However, that view could have been made known through proper channel because it is
available to him and it is as easy as a phone call or chat at family gatherings for him. Nazir's
forceful statement on 1MDB Board of Directors has the strong directive tone as someone
superior instructing his corporate appointees. That tone should have been more appropriately
expressed by his eldest brother, Dato Najib. Despite being appointed as CIMB Chairman, Board
of Director of Khazanah and Chairman of Khazanah's Executive Committee, it was heard to be a
mere compromise to his real intention. He has been thinking that himself should be filling the
position of Minister of Finance.He may do a better job in analysing the economy, understanding
the mechanics of business and drawing certain type of policy. However he lacks one major
element. Nazir is no politician and does not represent any constituency. Thus no locus standing
to say he represent the people.
Maybe he could be appointed senator and assume the position, but he does not have the
heart to feel for the people. For instance, when CIMB could not get the job with the fat fee

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enjoyed by Goldman Sach for the many roles played for 1MDB, Nazir pulled a tantrum to
mother, refuse to participate in 1MDB and leaked information to railroad 1MDB.
Does he has the solution to solve the political minefield for the annual RM19 billion
legacy subsidy to IPP in which pulling the subsidy would result in rising energy cost and legal
implications? That is about the people.
Violation of human employee right
Updated by Members Union Bank (NUBE) and CIMB Bank Berhad employees today
held a picket to protest the bank's management for allegedly not taking care of the welfare of
their workers and violate human rights.
NONEof them denied such allegations of unfairness in performance appraisals for the
staff bonus payments and the issue of dismissal of employees who questioned the use of funds by
management employees.Union picket at CIMB in Petaling Jaya today started around 12 noon
today for an hour and attended by about 300 members, including about 60 staff CIMB. The
union has about 5,000 members who work at CIMB network.
When contacted, the assistant secretary of the union, said Karuna A complaint on the
matter has been communicated to the bank's management over the past year but claimed no
action.cKaruna said the picket was held in front of CIMB in Petaling Jaya was the 30th time
since December last year Since February, they held a picket them in Kangar, Alor Setar, West-
Island and the town. CIMB led by CIMB Group chief executive officer, Datuk Seri Nazir Razak
- brother of Prime Minister Datuk Seri Najib Tun Razak. In a related development, Karuna said
he planned to hold a mass picket at CIMB and Bank Negara in Kuala Lumpur on April 6, so that
their claims heard. He is targeting 20,000 NUBE members including CIMB staff present in the
picket.
Then what we have analysed that probably that the management has an ethics issue. Based
on the Management written by Batemen and Snell under the topic ethic, corporate responsibility,
and sustainability CIMB has an egoism and utilitarianism issue which said that and egoism is
ethical system defining acceptable behavior as that which maximizes consequences for the
individual whereas utilitarianism is an ethical system stating that the greatest number should be
the overriding concern of decision makers.

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So we can see that CIMB is being ego and not following their own company policies ended
up choosing to violate the employee human right as their palm and destruction of their own
company image. This matter could have been avoided by CIMB in the first place if they are careful
enough in protecting their employee human right.

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Suggestion
CIMB should replace and hire bad manager or top management or employee that result bad
working discipline and have bad reports regarding the work. Its due to what happen to the CIMB’s
chairman of the CIMB group. It is clear that he is corrupt and violated the resources. The key
deterrent of fraud and corruption is awareness and prevention. Some of the processes which are
deemed most effective involve denial of opportunity, effective leadership and oversight, auditing
and pre-employee screening. Denial of opportunity may be translated in the form of internal
controls and consistently adhering to clearly defined procedures established by the organization
leadership. For all staff, doing the right thing means living the organization values, and working
and behaving in accordance with the Code of Conduct, Staff Enterprise Agreement/Employment
Contracts, organization policy framework and all relevant laws and regulations. As a manager, it
means "leading by example" (i.e. setting the right tone, walking the talk) and taking appropriate
steps to ensure that your internal controls are adequate and operating effectively to:
 prevent fraud and corruption from occurring and
 detect and appropriately respond (as soon as possible) to any incidences should they be
found or suspected.
In my thought, in order this matter would not happen again the top management must form a survey
to all the employees regarding performances of company itself and also suggestion and comments.
Besides that, the top management itself must start do justice to his/her followers , this is to ensure
that their followers do not keep the hatred and do on others. Last but not least , CIMB top
management has to seek report in all sector and department and solve all the problems that being
issued.

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Islamic Perspective on Human rights
ALLAH Said “God commands justice, doing good, and generosity towards relatives
and He forbids what is shameful, blameworthy, and oppressive. He teaches you, so that you may
take heed. (16:90)”. Based on this ayah above we can conclude that ALLAH has command to do
good to other people despite we have position in organization. Besides that, Islam requires that
Muslims possess upright character and deal justly with the entire human race, irrespective of
their ethnicity, nationality, creed and whether they are a friend or foe. “God says in the
Quran, “You who believe, be steadfast in your devotion to God and bear witness impartially: do
not let hatred of others lead you away from justice, but adhere to justice, for that is closer to
awareness of God. Be mindful of God: God is well aware of all that you do” (5:8). Based on the
ayah above, we as a muslim that devote our life to Allah must obey what Allah ask and prevent
what Allah banned. As a good muslim we have to fair with people around us , we have to be
justice in every works we done. Last but not least , not perfect faith if we do not love others as
love we love ourselves.

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CONCLUSION
In this report, we presented our research on managerial issues which involve the aspect of
the human resources management in CIMB Group. What we had discover from our analysis and
discussion is that in some parts of CIMB Group’s practices on the management of human
resources, in several aspects the company have failed to cater or tend to the needs and welfares of
its employees which resulted in this dissatisfaction to erupt among them. These problems give rise
to many other issues that bear negative impacts not only to the companies but also to other external
parties.
Personally, our group disagreed on these mistreatments reported on the employees of
CIMB. We believe that the successful continuity of a company revolves a lot around the
performance and enthusiasm of its employees. It is important for a company to be able to benefit
its employees in order to motivate them and in return getting the most out of them. Failure to
conform to this principle will lead to further issues to arise from both the internal and external of
the organization. We believe strongly in the phrase "Take Care of Your Employees, and They'll
Take Care of Your Customers"” .
This issues on human resources management is critical as many others managerial issues, as it is
of a great importance on ensuring a smooth flow of a company's operations. A good relationship
between top management and the employees is a very essential part as this will create a conducive
working environment and keeping the harmonious environment intact that motivates all parties to
cooperate together to achieve the goal of an organization .

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REFERENCES
Our Rich Heritage, https://www.cimb.com/en/who-we-are/overview/history.html
Bank staff picket against 'unfair practices' byCIMB,https://www.malaysiakini.com/news/224652,
22 Mar 2013
www.Cimb.com
https://www.malaysiakini.com/news/224653
https://twitter.com/nubemalaysia/status/315077112979673088
https://www.google.com/webhp?sourceid=chrome-
instant&ion=1&espv=2&ie=UTF-8#q=%E2%80%A2%20http%3A%2F%2F
www.malaysiakini.com%2Fnews%2F224653
www.freewebs.com/animalorangutan/azpalmailcomplist.htm