COURSE PLAN FOR IB2003 MANAGING ISLAMIC FINANCIAL INSTITUTIONS JANUARY SEMESTER 2014

INTERNATIONAL CENTER FOR EDUCATION IN ISLAMIC FINANCE THE GLOBAL UNIVERSITY OF ISLAMIC FINANCE

Course Plan
1. 2. 3. 4. Course Code & Title: Course of Study: Year and Semester: Facilitator: IB2003 MANAGING ISLAMIC FINANCIAL INSTITUTIONS Chartered Islamic Finance Professional (CIFP) Part 2 January Semester 2014 1.Abdul Rashid Kadir Teaching Fellow 2.Kartini Yusoff Lecturer Tutorial, Written Assignments, Forum/presentation & tutorial and Pre Exam Seminar (for Online student) All organisations including Islamic banks are established for specific purposes. Employees of an organisation especially supervisors, middle managers apart from the senior management staff members must be familiar with strategic planning to help them understand and appreciate the organisations strategy in relation to their work assignments. Apart from the intention of generating profits, the Islamic financial institutions must be ethical, acting in the interest of all stakeholders including its staff, and acting in accordance with Shariah. In so doing, this module provides students with an understanding of the concepts of strategic management and leadership, and enabling them to apply tools, concepts and frameworks to help an organization define / redefine its sustained competitive advantage. This module will also enable students to develop global outlook, the analysis of the business environments, critical thinking, analytical skills, and ethical awareness, inter alia.

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Mode of Delivery: Synopsis

COURSE PLAN FOR IB2003 MANAGING ISLAMIC FINANCIAL INSTITUTIONS JANUARY SEMESTER 2014

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Objective:

The objectives of this module are to: equip CIFP candidates with the broad overview of managing Islamic financial institutions compare and contrast the management structure and practices between the conventional and Islamic financial institutions, especially for the case of dual banking system expose CIFP candidates to various management tools and mechanics for managing Islamic financial institutions create, manage and lead an organization to achieve desired corporate objectives develop a constant pool of Shariah compliant, effective and efficient leaders and managers On completion of this module, a student shall be able to: Make inferences and draw conclusions relative to leadership and management skills of a particular individual or individuals within a particular organization or industry Integrate the tenets of various theoretical constructs and strategic models to make decisions, solve problems, and develop plans Conduct research using scholarly journals and business resources. Compile and analyse results to make recommendations, write reports, analyse trends, and inform business decisions Distinguish the difference between leadership and management and use that knowledge to make strategic business decisions with ethical and social responsibilities and enhance organizational efficiencies and effectiveness through the development and implementation of strategic business plans in line with Shariah requirements

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Learning Outcome:

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Reading List:

Main Reference: 1. INCEIF (2011). Managing Islamic Financial Institutions. Course Material 2. Rodrigue Fontaine and Khaliq Ahmad, Strategic Management from an Islamic Perspective, John Wiley & Sons, Singapore Pte Ltd, 2013 3. Rafik Beekun (2006). Strategic Planning and Implementation for Islamic Organizations. IIIT Additional References: 4. Daft, R. L. (2009). Essentials of organization theory and design (11th Ed.). Cincinnati, OH: South-Western. 5. Donaldson, T. (1982). Corporations and Morality. NJ: Prentice Hall. 6. Galbraith, J. R. (2001). Designing Organizations: An Executive Briefing on Strategy, Structure, and Process (2nd Ed.). San Francisco: Jossey-Bass. 7. Henderson, V. E. (1992). Whats ethical in business? New York: McGraw-Hill. 8. Jones, G. R. (2012). Organizational Theory, Design, and Change: Text and Cases (7th Ed.) N.Y.: Prentice Hall. 9. Malaysian Corporate Governance Blueprint 2011. Security Commission.
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COURSE PLAN FOR IB2003 MANAGING ISLAMIC FINANCIAL INSTITUTIONS JANUARY SEMESTER 2014

10. Abdullah Yusuf Ali (1987). The Meaning of the Holy Quran: Text, Translation, and Commentary. Kuala Lumpur: Islamic Book Trust. 11. Ellis, T. (2002). The Era of Compassionate Capitalism A Vision of Holistic Leadership Development in the 21st Century. London, UK: Unpublished Executive MBA dissertation, Henley Management College. 12. Barrett, R. (1998). Liberating the Corporate Soul. USA: Butterworth-Heinemann. 13. Bennis, W. (1998). Becoming a Leader of Leaders in Gibson, R. (1998). Rethinking the Future. London, UK: Nicholas Brealey Publishing. 14. Bennis, W., Spreitzer, G.M., and Cummings, T.G. (Eds.) (2001). The Future of Leadership. San Francisco: Pfeiffer. 15. Islamic Banking Act 1983 16. BNM/GP2-i Framework of Rate of Return. 17. Peter S. Rose and Sylvia C. Hudgins (2008). Bank Management & Financial Services (7th Ed.). McGraw Hill. 18. CIFP (2007), CRM and Role of Technology. Kuala Lumpur: INCEIF. 19. Ed Peelen (2005). Customer Relationship Management. England: Prentice-Hall. 20. Don Peppers et al (2011). Managing Customer Relationship (2nd Ed.) New Jersey: Wiley. 21. Andrew Payne (2005). Handbook of CRM: Achieving Excellence in Customer Management. Oxford: Elsevier. 22. Bryan Foss & Merlin Stone (2002). CRM in Financial Services: A Practical Guide to Making CRM Work. USA: Kogan-Page. 23. Bank Islam Malaysia Berhad (1994). Islamic Banking Practice: From The Practitioners Perspective 24. Kotler, Philip et al (2008). Marketing Management an Asian Perspective, (5th Ed.). Prentice Hall. 25. Basle Committee on Banking Supervision, Basle September 1998. Framework for Internal Control Systems in Banking Organisations. 26. BNM/GP10 Guidelines on Minimum Audit Standards for Internal Auditors of Financial Institutions. 27. BNM/GP1-i Guidelines on Corporate Governance for Islamic Banks. 28. Armstrong, M. (2006). Performance Management: Key Strategies and Practical Guidelines (3rd Ed.). USA: Thomson-Shore, Inc. 29. Armstrong, M. (2011). Armstrongs Handbook of Strategic Human Resource Management. San Diego: Elsevier Ltd. 30. Davenport, T.O. (1999). Human Capital: What it is and why people invest it. San Francisco: Jossey-Bass 31. Fitz-Enz, J (2009). The ROI of Human Capital: Measuring the Economic Value of Employee Performance (2nd Ed.). New York: American Management Association. 32. Glibert, T. F. (2007). Human Competence: engineering worthy performance. Washington: International Society for Performance Improvement (3 rd Ed.). 33. Osland, J. S. et. al. (2007). Organizational Behaviour: An Experiential Approach (8th. Ed.). New Jersey: Pearson Educational International. 34. Other online journals/ periodicals/ case studies/ news wire as assigned.

COURSE PLAN FOR IB2003 MANAGING ISLAMIC FINANCIAL INSTITUTIONS JANUARY SEMESTER 2014

10. Method of Assessment:

No. Method of Assessment 1. Coursework Project Paper Assignment 2. Final Examination GRAND TOTAL 1. Coursework (30%) Project Paper Assignment 30%

Total (30%) 30% 70% 100%

Students are required to conduct a literature search for relevant information and research articles on the topic using textbook, library database, journal, internet and other available resources and write a paper for the individual research project. The purpose of this assignment is to gain experience in researching and writing a paper on a topic relevant to managing Islamic financial institutions. The aim is for students to sharpen critical thinking abilities and improve writing skills by doing original research and analysis. The assignment should include a title page, a marking scheme page, an abstract, approximately minimum 15 pages and maximum 20 pages in length, and a reference list. Footnotes, section headings, and a good bibliography are required. The paper should use a MS Word format with a 12 point-font Times New Roman with 1.5 line spacing.

Please refer to the details requirement for the write up as stated in the assignment guideline in the LMS. Late Submission Penalty Clause Deadline for submission of assessment item(s) is to be strictly adhered to. No extension of time will be allowed except in extenuating circumstances, e.g. medical reasons. Students who wish to apply for extension of time for submission of assessment item(s) after the due date shall put in writing the request together with validated documentary evidence to support his /her application. Any assessment item required by the Coursework Assessment which is submitted after the due date, without an approved extension, will be penalized. A penalty of 5% reduction of the maximum mark applicable to the assessment item(s) will be levied for each day of late submission. Weekends and Public Holidays are counted as one (1) day late. Assessment item(s) submitted more than seven (7) days after the due date will be awarded with zero (0) marks. 2. Final Examination (70%)
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COURSE PLAN FOR IB2003 MANAGING ISLAMIC FINANCIAL INSTITUTIONS JANUARY SEMESTER 2014

The final examination for this module will be a 3-hour (closed book) written examination and will consist of TWO parts: Part A (40 marks) = 8 short questions with 5 marks each. Part B (60 marks) = 5 questions in which students are required to answer any 3 questions with 20 marks each.

11. Remark:

ACADEMIC REGULATIONS Dishonesty 1. Plagiarism is defined as the submission or presentation of work, in any form, which is not one's own, without acknowledgment of the sources. If a student obtains information or ideas from an outside source, that source must be acknowledged. Another rule to follow is that any direct quotation must be placed in quotation marks and the source immediately cited. Plagiarism is also defined as copy of all or part of the work of another student(s) of current or previous batch of this University or another higher learning institution. Plagiarism is therefore considered as an act of academic fraudulence and as an offence against University discipline. 2. Cheating is unacceptable in any form. Examples include consultation of books, library materials or notes during tests without the instructors permission; use of crib sheets or hidden notes; intentional observation of another students test; receipt of a copy of an exam or questions or answers from an exam to be given or in progress; substitution of another person for the student on an exam or another graded activity; deliberate falsification of lab results; submission of falsified data; alteration of exams or other academic exercises; and collaboration on projects where collaboration is forbidden. 3. Falsification, forgery or alteration of any documents pertaining to assignments and examinations. Mode of Referencing Students are advised to incorporate proper academic modes of referencing. The normally acceptable mode of academic referencing is the American Psychological Association (APA) system.

LESSON PLAN Week 1 Content Outline 1. 1.1 1.2 1.3 1.4 1.5 STRATEGIC PLANNING Islamic banks as recognised entities Vision, Mission, Values and culture Setting Priorities and Objectives Translating Strategies into Actions to Generate Expected Results Increasing Stakeholders Value
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COURSE PLAN FOR IB2003 MANAGING ISLAMIC FINANCIAL INSTITUTIONS JANUARY SEMESTER 2014

1.6 2 2. 2.1 2.2 2.3 2.4 2.5 2.6 2.7 3. 3.1 3.2 3.3 3.4 4. 4.1 4.2 4.3 5. 5.1 5.2 5.3 5.4 5.5 5.6 5.7 6. 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9

Social and Ethical Responsibilities CORPORATE GOVERNANCE Introduction Statutory and Self Regulation Role of Various Committees Various Corporate Governance Practices Regulatory Framework (Managing Compliance) Shariah, Audit and Compliance Representation of Depositors ORGANISATIONAL BEHAVIOUR / DEVELOPMENT Introduction Clear Accountability and Responsibility Functional Organisational Structure and Design Organisational Development and Change LEADERSHIP SKILLS Introduction Holistic Leadership Entrepreneurship EXECUTION OF STRATEGIES Introduction Interpretation Implementation / Execution Awareness and Education on Islamic Banking Public and Investors/Communication and Relations Global Best Practices Applications

CUSTOMER RELATIONSHIP MANAGEMENT Introduction Customer Profitability Management Customer Relationships Explored Relationship Gaps and Bonding The Importance of Trust Customer Life Time Value Customer Value Creation and Erosion Customers and Segmentation Cross Selling (Sensitivities In Selling Conventional And Islamic Products Through Same Sales Team) 6.10 Creation Of New Business Opportunities 6.11 The Strategic Importance of Customer Relations in Islamic Finance 7. CHANNEL MANAGEMENT/DISTRIBUTION
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COURSE PLAN FOR IB2003 MANAGING ISLAMIC FINANCIAL INSTITUTIONS JANUARY SEMESTER 2014

7.1 7.2 7.3 7.4 7.5 7.6 7.7

Introduction Convenience of Assessing of Banks Products and Services Customer Reach Branch/ Third Party (Outsource) Internet and SMS Banking Significant Differences between Islamic and Conventional Banking-Full-Fledged Islamic Banking and Islamic Windows Operations of Islamic Windows of International Banks Across the Boundaries of Different Countries QUALITY AND CUSTOMER SERVICE Introduction What is customer service? Quality and Customer Service An Islamic perspective Who are the customers of IFIs? Quality and Customer Service in Islamic Finance Core components of customer service in Islamic Finance Issues and concerns related to quality and customer service in Islamic finance Customer (external and internal) satisfaction Customer Satisfaction Quality Values Creating a Customer-Centric Organisation Customer Acquisition and Retention BUSINESS INTELLIGENCE Introduction Data Mining Analytics Business Reporting CRM IMPLEMENTATION Introduction Successful CRM Implementation CRM Diagnostics Critical Failure Factors as a Route to CRM Success Typical Pitfalls Operational Guidance for CRM Implementation Project Managed CRM Implementation CRM and Return 0n Investment CRM Metrics The Reliability, Integrity and Internal Consistency of the CRM Programme Selected Building Blocks for a CRM System

8. 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11 9. 9.1 9.2 9.3 9.4 10. 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11

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11. FINANCIAL MANAGEMENT 11.1 Introduction 11.2 Capital Management

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COURSE PLAN FOR IB2003 MANAGING ISLAMIC FINANCIAL INSTITUTIONS JANUARY SEMESTER 2014

11.3 11.4 11.5 11.6 11.7 12 12. 12.1 12.2 12.3 12.4 12.5 12.6 12.7 13. 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 14. 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9

Balance Sheet & Liquidity Management Management 12. Reporting Statutory Reporting Accountability of Zakat/Charity Requirements Value Creation to Stakeholders RESEARCH AND DEVELOPMENT Introduction Product Innovation Product Innovation-Deposit Product (Capital vs. Equity Preservation) Market Intelligence Research and Development Function in Islamic Banks Brand Management Establishing Bank and Customers Product Perspective INTERNAL CONTROL & COMPLIANCE Introduction Framework of Internal Control and Compliance The Process of Internal Control The Role of Internal Audit The Audit Process Action and Follow-up on Audit Recommendations The Role of Supervisory Authority The Role of the External Auditors Issues and Challenges Weak Internal Control System HUMAN CAPITAL MANAGEMENT Introduction Talent Management and Succession Planning Performance Management Competency Development Training and Development Culture Islamic Culture and Virtues-Local Culture Motivation Compensation and Benefits

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Notes: The information provided in this Course Plan is subject to change by the Lecturer. Students shall be notified in advance of any changes.