Qatar National Bank’s Human Resource Technology Report

Introduction

Qatar National Bank is one of the leading financial institutions in the Middle East and North African (MENA) region. Founded in 1964, the institution has registered impressive growth over the years, becoming the largest bank in the region. Headquartered in Doha, Qatar, the company currently has over 4300 branches in over 31 countries (Ghantous & Zhdannikov 2018). Human resource management is one of the most complex tasks that top executives have to carry out in the most effective way possible to ensure that the company achieves its goals and objectives in the current competitive business environment. When the company started its operations in 1964, it only had 35 employees. However, the number of workers in the company has increased to over 28,000 people (Osborne 2016).

They are spread across the Middle East, North Africa, and parts of Europe. As Ghantous and Zhdannikov (2018) explain, when a firm is operating in the global market, one of the biggest challenges in human resource management is dealing with the problem of cultural differences. It is impossible to manage workers effectively without taking into account their cultural practices. The religious beliefs and practices of people in the MENA region are significantly different from those of Europeans. It means that the approach used in managing employees in Europe may not be the best when handling workers in the Middle East. In this report, the researcher will look at the implications of new technologies for the effective management of human resources at Qatar National Bank.

Implications and Challenges of Introducing New Technologies in Human Resource Management

According to Billinghurst, Clark, and Lee (2015), business organizations are embracing new technologies to help improve their efficiency and competitiveness in the market. As competition continues to get stiffer, firms are keen on finding ways of managing market challenges with the help of new concepts. Technologies such as robotics, artificial intelligence (AI), augmented reality (AR), computer vision, and drones have become common applications in many companies across the world (Bower et al. 2014). Many companies are embracing these new concepts because they promise greater efficiency, standardization, reduced cost, consistency, and greater levels of accuracy. However, Kloppenborg (2015) warns that these new technologies have challenges that cannot be ignored by human resource managers. The more firms continue to rely on these new technologies, the more it is becoming evident that human resources cannot be eliminated from an organizational setting. It is important to look at the implications and challenges of each of these new technological concepts when managing human resources.

Artificial Intelligence

Akçayır and Akçayır (2017, p. 7) define artificial intelligence as “the capacity for logic, understanding, self-awareness, learning, emotional knowledge, reasoning, planning, creativity, and problem-solving skills demonstrated by machines.” Many organizations are now using this new technology to ensure that machines can operate with minimal human support. Such machines can learn, use information gathered to plan their activity, be creative, and solve problems encountered when performing specific functions. Artificial intelligence benefits many organizations, especially in the production plants where they can act precisely without having the support of human resources. It is easy to predict the actions of such machines based on concepts that it has learned within a specific period (Cunningham 2016). AI reduces the need to have workers controlling such machines. As such, it cuts the cost of human resources and eliminates most of the undesirable factors associated with this factor of production such as fatigue, attitude problems, go-slows and strikes, laziness, and deliberate sabotage.

When using artificial intelligence, a firm should be ready to deal with various challenges. One of the greatest challenges is that these new technologies tend to create fear among workers. The feeling of losing their jobs to machines can be discouraging to employees. Their output may be directly affected in such cases. Cunningham (2016) explains that it may not be easy for the human resource manager to explain to workers that their jobs are safe even when such new technologies are introduced. Sometimes employees may deliberately sabotage such new technologies to ensure that their jobs are protected. As Kloppenborg (2015) states, it is not possible to eliminate employees because of the introduction of AI in an organization. Some tasks still have to be performed by people. Errors can also occur in new systems introduced, leading to serious mistakes. If employees feel that their job is threatened by such new technologies, they can ignore such computer mistakes just to demonstrate the need to have people doing such jobs (Bower et al. 2014). It may take a long time to convince workers to embrace such new technologies.

Augmented Reality

Augmented reality (AR) is another new technology that is increasingly becoming popular in modern society. According to Wagner and Choset (2015, p. 18), AR refers to an “interactive experience of a real-world environment whose elements are augmented by computer-generated perceptual information, sometimes across multiple sensory modalities, including visual, auditory, haptic, somatosensory, and olfactory.” Unlike the virtual reality that replaces the real-world environment with one that is simulated, augmented reality integrates the existing natural environment and overlays virtual information (Kloppenborg 2015). The goal of this technology is to enable its users to experience an improved natural world.

It makes it possible for one to use the virtual information to solve real-world problems. Many firms that have introduced this new concept in the right manner often get the support of their workers. Instead of focusing on replacing workers with machines, AR focuses on how machines can work harmoniously with employees to deliver greater results. Machines help employees in making decisions by introducing a virtual way of solving problems and determining how it can be applied in the real-life environment. According to Akçayır and Akçayır (2017), AR is increasingly becoming popular around the world. Workers are embracing it as a way of improving their service delivery.

One of the biggest challenges of using augmented reality is that sometimes it may distract employees. Wagner and Choset (2015) believe that sometimes employees ignore the importance of their knowledge and experience and wholly rely on AR, not knowing that machines can make mistakes. The new concept is meant to help workers make a better judgment in their duties, but that does not mean their knowledge and experience becomes meaningless when using them. Wilton (2016) also notes that using AR sometimes makes people ignore real-world hazards. The fact that it integrates the virtual world into the real world makes it easy for workers to take some critical issues from a gaming point of view. They fail to realize that they are handling real-world issues with potential threats that can be devastating if not managed carefully. In such scenarios, workers may take great risks because of the desire to achieve great results without proper consideration of the impact that such risks may have.

Computer Vision

Computer vision is a new technology that focuses on improving the ability of computers to use digital images and videos to make decisions (Sharon et al. 2015). The technology has gained popularity in many financial institutions to enhance security. Computers are connected to closed-circuit television (CCTV) cameras that help in reading faces. In case an individual’s face is registered as that of a criminal in the data system, the security team will be alerted as soon as that individual is detected. The goal is to ensure that repeat offender such as serial fraudsters and robbers are arrested before they can commit other crimes. Data sharing makes new technology even more efficient. Information from intelligence agencies and other financial institutions can be shared to ensure that criminals are detected before they can commit any serious crime (Skowron, Faliszewski & Lang 2016). Cunningham (2016) observes that when managing human resources, computer vision is one of the new technologies that boost their morale. It makes them feel safe in their workplace, knowing that there is an additional layer of security. It also makes the security officers more confident in delivering on their mandate than when they have to rely on their human capacity.

It is important to note that computer vision has challenges that should not be ignored when managing employees. One of the greatest challenges is that it creates laxity among workers. Security officers tend to trust such technologies to detect criminals and alert them accordingly (Arenas et al. 2016). As such, they fail to take precautions to ensure that they also use their skills and experience to thwart the activities of such criminals. Tellers and other bank officials also become vulnerable to attacks because of the relaxed attitude when handling customers. Wilton (2016) explains that they become too trusting to detect when one is trying to steal from the bank because they believe in the extra layer of security to offer them the protection they need. As such, human resource managers need to remind workers that the existence of computer vision does not eliminate the need for them to act with caution and to do what is expected of them to enhance safety and security.

Robotics and Drones

The use of robots and drones are becoming popular in both developed and middle economies. Robots are increasingly replacing human resources in handling some tasks in various sectors of the economy, including the banking industry. They are relatively cheap compared to human resources, can work throughout the day without the problem of myogenic stimulation (Hutter et al. 2014). They do not suffer from mood swings and cultural factors. Drones are also becoming increasingly popular, especially in delivering small parcels. Such tasks are traditionally performed by workers within a given organization. However, many firms are finding it more efficient and less costly using drones to deliver parcels (Sharon et al. 2015). They are very efficient when delivering urgent parcels in major cities constantly affected by the problem of traffic jams. The movements of drones are easily monitored and controlled remotely by the institution.

According to Akçayır and Akçayır (2017), robotics and drones are some of the new technologies that have raised serious controversies. Many workers have come out strongly to oppose the use of robots in place of human resources. According to Wagner and Choset (2015), one of the reasons why robots have received serious rejection among workers in different parts of the world is the fear that they are replacing the workers. Most of the tasks previously performed by workers are currently undertaken by robots. Because of the redundancy created once a firm introduces robots and drones, employees often have to be redeployed or laid off (Wagner & Choset 2015).

Managing human resources can be a big challenge when a firm starts to embrace these new technologies. There will be open defiance and resistance against such moves. Some employees will feel that their job security is threatened, and the only way of assuring them that they will not be affected negatively is to stop such moves. Some firms end up promising workers their job security to ensure that new concepts are not rejected. Once the new technology is introduced, they are forced to retrench some workers who had believed that their interest would be protected even after the introduction of the new concept. The problem with such a strategy is that it erodes trust (Sharon et al. 2015). It makes workers not to believe the statement and promises given by the superiors. In such an environment, managing human resources becomes a complex task.

The Effectiveness of HRM in the Introduction of a New Technology

The banking sector has been subject to various forms of attack, especially from criminals keen on stealing cash for personal gains (Skowron, Faliszewski & Lang 2016). In the past, criminal gangs organized and executed bank robberies using different weapons. However, advanced security using emerging technologies has made it increasingly difficult for criminals to plan and execute such attacks. As such, they are using a new approach to achieve their goals. Wilton (2016) explains that cyber-attacks are the new strategy that has become common in modern society. Financial institutions have come to appreciate the significance of mobile and online banking. They understand the limited time that their customers have to do their banking activities. As such, they are making it easy for them to make important transactions without having to make physical visits to the banking halls. The new system has received massive support from many customers around the world (Hutter et al. 2014). They no longer have to spend a lot of time in queues whenever they want to make transactions in their bank accounts. However, the issue of security is now a major concern.

Customers expect their bank accounts to be as secure as possible when embracing online banking. The problem that financial institutions face is that it is now easier than before for cybercriminals to breach banks’ security and steal money from customers’ bank accounts than it was in the past. Having a customer’s bank account and security keys is all that one needs to access and transact in a customer’s account (Boutilier et al. 2015). Sometimes the breach is committed by close friends and family members who can easily have access to account details. A report by Wagner and Choset (2015) indicates that financial institutions are losing millions of dollars every financial year because of such data breach. Sometimes cybercriminals target sensitive files in the bank that can cripple its operations. Qatar National Bank is one of the victims of such attacks. In this section of the report, the focus is to evaluate how this company has embraced augmented reality to help it enhance data and asset security.

Reasons for the Introduction of Augmented Reality at QNB

Qatar National Bank is one of the leading financial institutions in the Middle East that has made a successful entry into three continents. It has been facing new challenges in the market, the top of which is the stiff competition. However, in recent times, the firm has been facing a new challenge that threatens its existence. According to Akçayır and Akçayır (2017), Qatar National Bank’s data system was hacked in April 2014, leading to the theft of 15,000 sensitive files. The company had put measures in place to protect such data, but the breach was a clear indication that more still needed to be done. The attack was a major blow to this institution that had been registering impressive growth in the recent past because of the trust that its customers had on it. The problem surfaced at a time when many branches of this firm in the MENA region, especially in countries affected by the Arab Spring, were suffering from political instability (Wagner & Choset 2015). That was a double tragedy that significantly affected the firm’s profitability. Proper measures were needed to ensure that similar events do not occur in the future.

Soon after the attack, the institution started developing numerous strategies to enhance the security of its physical and online data. It was necessary to ensure that such attacks do not occur in the future. Although the hack did not involve direct theft of funds from customers’ accounts, it led to the release of confidential details of clients. As such, it was necessary to find ways of preventing similar events (Sharon et al. 2015). The investigation revealed that one of the major factors that made it possible for the attack to occur was the limited knowledge of most of the firm’s employees on the management of cybercrimes. It was evident that the criminals had more information on manipulating digital data and breaching online databases than employees of this firm in terms of protecting the same. As such, the top management decided to use augmented reality to enhance the skills of its workers in managing digital data. Instead of taking punitive measures against its workers, it was considered more effective to empower them to ensure that both physical and online databases were secure.

How the Employees Were Prepared

The head of learning and development at QNB was tasked with the responsibility of training employees of this firm on how to use emerging technologies to improve their skills and efficiency. One of the biggest challenges that the training team faced was the fact that these workers are spread across three continents (Osborne 2016). Having them in one geographic setting was not possible. Another challenge was cultural differences among workers in different countries. The culture common in the Middle East is different from that in Europe and parts of Africa (Sharon et al. 2015). When training workers on how to use a new concept, one cannot ignore the importance of culture and other local environmental forces. Despite the existence of these challenges, the new concept had to be introduced in the firm. Augmented reality offered the best solution in solving the security problem and addressing the challenge posed by culture and geographical gaps.

AR offered the trainers an opportunity to use a highly interactive 3-D graphical user interface (GUI) to train workers based on the nature of their workplace, taking into consideration their cultural practices (Boutilier et al. 2015). Agylia Learning Management System (LAM) was used to help in equipping these workers with new skills. Using both actual and virtual reality, employees were trained on how to use modern technologies to monitor attempts to break into the firm’s data system and ways of responding to such attacks. The interactive nature of the GUI used in the training meant that during the training, workers could easily switch from virtual reality to the natural environment to tests their skills. They would be allowed to make as many mistakes as would be necessary to learn while in the virtual environment. However, they will be expected to be accurate when switching to the natural environment where the skills were needed (Azanza, Moriano & Molero 2013). The training was conducted within the workplace environment to ensure that workers understood the relevance of the new technology in their respective assignments. The goal was to ensure that they were equipped with new skills to use emerging technologies to be more efficient and capable of fighting cybercriminals.

The Effectiveness of HRM When Introducing the New System

The human resource manager had an important role to play when introducing the new system at this bank. According to Akçayır and Akçayır (2017), whenever a new technology is introduced at a firm, there is always a fear of the unknown among employees. Some employees develop fear because they feel targeted by new technology. They feel that their job is under threat when new systems and structures are introduced. Others feel that they may not be as effective as they were before when change is introduced, making them vulnerable in case the firm decides to lay off some workers. Such fears may affect the ability of workers to embrace change (Sharon et al. 2015). It may create a resistance towards the new system because of unfounded fear. Managing such issues is critical in ensuring that the planned changes are introduced effectively. Hana (2015) explains that many firms often use Kurt Lewin’s model of change to address such concerns. Figure 1 below shows the model.

The human resource management of QNB, through the head of learning and development, was able to use this model to ensure that the new technology was introduced at the firm without any resistance from workers. First, an appropriate environment was created for the introduction of augmented reality in the workplace. Employees were informed of the importance of the new system to the firm then taken through proper training to ensure that they are equipped with the right skills. Any concerns raised were addressed promptly. After training, the new system was introduced that involved the integration of virtual reality in the workplace environment to enhance employees’ performance. The last stage involves identifying and addressing areas of weakness to ensure that the new system is a success. A team of experts has been assigned the responsibility of monitoring the progress made in implementing the new design and identifying challenges that may affect the outcome.

Benchmark Practices

According to Hana (2015), when operating in a highly competitive business environment, some of the most important strategies that a firm should not ignore are benchmarking and using best practices. Once a market leader has introduced a new concept that has received acceptance in the market, it is advisable not to wait for too long before embracing it. At Qatari National Bank, the management was keen on benchmarking its practices against that of the top global institutions. HSBC Holdings, JPMorgan Chase & Co., and Barclays Bank are some of the top global banks that have introduced the use of augmented reality to enhance employees’ performance and data security (Sharon et al. 2015). These firms have trained their workers to use this emerging technology to track any hacking attempts and deal with them appropriately. QNB is following a path that has proven to be effective. The use of a simulated world to practice managing threats in the real world has proven to be effective in many institutions, especially in developing nations where these technologies have become common (Wagner & Choset 2015). This company, therefore, had every reason to embrace these best practices to deal with the emerging market challenges.

Impact of the New Technology

The new technology had a major impact on the company. The training equipped the employees with new skills needed to operate in the current competitive environment. The report shows that they learned about their future role in a workplace environment that is characterized by a high reliance on technology to achieve desired levels of success. According to Kloppenborg (2015), one of the fundamental goals of the human resource managers when introducing a new system that involves training is to motivate workers by making them feel empowered to deliver better results in their assignments than was the case before. The department of HRM at QNB achieved this goal through the effective training of its workers. Employees in the banking sector are often worried about being victims of fraudsters (Sharon et al. 2015).

Even if they are not subjected to any form of punishment because of not being directly responsible or complicit, there is always a sense of guilt when such attacks are successful. The new training and the introduction of the new technology-based approach of operation equipped them with new skills, making it easy to detect and manage such attacks. The feeling of being competent enough and having the right tools to achieve the set goals and objectives within the workplace makes employees feel motivated. As Hana (2015) observes, having a team of highly skilled and motivated workers is critical in achieving success in a competitive environment. The fact that the firm has embraced a culture of continuous learning is an indication that it is committed to embracing future best practices to ensure that the firm remains competitive.

Recommendations for Future HRM Practice at Qatar National Bank

Qatar National Bank is currently operating in a highly challenging business environment, especially since 2017 when the crisis between Qatar and some of its neighbors such as the Kingdom of Saudi Arabia and the United Arab Emirates begun (Ghantous & Zhdannikov 2018). These were some of the most important foreign markets for this bank, but with the crisis, it has forced it to look for alternative markets. As the firm seeks to explore new markets in Europe and the Far East, it will be important to take into consideration numerous factors critical in enhancing its success. Using traditional approaches to operation in the banking industry may not yield the desired result for the company. The following recommendations should be taken into consideration:

• Qatar National Bank should be keen on monitoring emerging market trends and embracing best practices in the industry to ensure that it remains competitive in the market. The decision to embrace AR in improving the efficiency of its employees should be the first step towards embracing similar practices to enhance its ability to remain competitive in the market.
• Every time the firm considers introducing a new technology or strategy in the market, it is critical to prepare employees effectively. They should not feel threatened by such changes. Instead, they should be made to feel that these new approaches are meant to improve their performance at the firm. Using concepts such as Kurt Lewin’s change model may be instrumental in minimizing resistance to change.
• The management should maintain a regular training program for its employees based on the emerging trends in the industry. In line with one of its major policies of embracing best practices in the industry, it is prudent to ensure that workers are taken through effective training every time a new strategy is introduced.
• When embracing new concepts such as robotics and drones, their impact on employees should be given serious consideration. The management should realize that it is not possible to eliminate employees in the banking sector. When new technologies introduced have a negative impact on their morale, it may not be possible to make them perform optimally. As such, delicate balancing is necessary to ensure that such technologies are designed to complement their work.
• A feasibility study is needed before implementing any project at this bank. Not all technologies have the capacity to deliver the desired results. Similarly, best practices introduced in North America may not be relevant in the Middle East and North African markets. As such, a thorough feasibility study is necessary before this firm can introduce a new policy.
• It is ethical to ensure that all the key stakeholders are involved when introducing new policies. Other than employees, shareholders also need to be informed whenever a major concept or technology is being introduced. They need to be informed about resources needed, areas that it seeks to implement, problems that it will address, and the desired outcome. Through the board of directors, such shareholders may approve or reject a new proposal. They need to be convinced that the new concept is worth the investment.

Conclusion

Human resource management is one of the most complex yet critical tasks that define the ability of a firm to achieve desired success in the market. In the current competitive business environment, firms are embracing emerging technologies to improve the efficiency of their workforce and enhance their morale. Artificial intelligence, augmented reality, computer vision, robots, and drones are increasingly being used to support the work done by human resources. As shown in this paper, one of the biggest challenges is that sometimes employees feel threatened by these concepts. Some fear that their services will not be needed when changes are introduced. At Qatar National Bank, it was necessary to introduce augmented reality to enhance data security within the firm following a major data breach in mid-2014. The management succeeded in introducing this new concept but in a way that addresses the concerns of its employees. They were convinced that the new technology is meant to enhance their skills and protect the firm’s data, and not to replace them.

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