Contemporary Management Fawry.pdf

HOW INTERNAL
FACTORS CAN IMPACT
A BUSINESS.
Arab Academy of Science & Technology
MBA
Report's Supervision
Lamees El-Ghazoly
The ultimate controlling management style.
Contemporary Management

4 Executive Summary
5 Company's History & Background
6 Fawry's Services
6 Fawry's Competitive Advantage
6 Fawry's Core Competencies
6-7 Information-Sharing Perspective on Structure
7 Organization Chart - Top Management
7 Dimensions of Fawry's organizational design
8 Structural Dimensions
8 Contextual Dimensions
INDEX
9 Fawry's Organizational Environment Analysis
10Task Environment
10-11 General Environment
11 Fawry's business model
11 Concise Competitive analysis
12 SWOT Analysis
13-14 Organizational life cycle
14 Analyzing Fawry's Internal Factors
15-16 Organizational Efficiency and Control
16 Suggestions to Enhance Organization Monitor &
Control Performance Effectively.
16 Balanced Scorecard Approach
17 Executive Dashboard Approach
17 The benefit of the Executive Dashboard
18 Analyzing Fawry's Internal Factors-Leadership
Style
19 Suggestions Approach to stop Micromanagement
20 The consequences and conflicts that affect
Fawry- Middle Manager Turnover
20 Recommendations for resolving the conflict
21 Line- Manager Turnover

INDEX
22 Lack of product/ Fintech industry Knowledge in
Top/ Middle Management (Human Resources Sector-
Task Environment).
23 Increase of the new competitors' entrants
(Industry sector-Task Environment).
24 Lack of technical knowledge specialization for
Fintech technology
24 Lack of Information System management
24 The benefits of applying an ERP System
25 Conclusion
26 References
EXHIBITS INDEX
6 Fawry's Channels & Services Exhibit 1.1
7 Organization Chart Exhibit 1.2
7 Board of Directors Exhibit 1.3
9 Rating form for Dimensions of Fawry's org design
Exhibit 1.4
12 SWOT Analysis Exhibit 1.5
14 Fawry's Development life cycle chart Exhibit 1.6
15 Profit & loss Exhibit 1.7
16 Operation Performance Exhibit 1.8
17 Balanced Scorecard Exhibit 1.9
17 Dashboard Exhibit 2.1
18 Positive and Negative Effects of
Micromanagement Exhibit 2.2

This paper reviews a report that analyses the current strategy
of a Leader in digital transformation & E-payment platforms in
Egypt.
By identifying the organizational dimension and analyzing the
change of external environment within its domain, internal
factors and control system. Moreover, suggesting for
workable approaches to solve the conflicts.
EXECUTIVE SUMMARY

COMPANY'S HISTORY AND BACKGROUND
Sector: Technology Services
Industry: Packaged Software
In 2007, Sabry's initial idea for Fawry was to build an electronic bill payment solution.
After being founded the following year, the company worked on building solutions and
network design based on Cisco and IBM platforms. It also had an ISO-certified data
centr.
In 2008, Fawry was established after garnering the support of major investors like Raya
Holding, Technology Development Fund (Ideavelopers), Arab African International
Bank, HSBC, and Alexbank and joined International Finance Corporation (IFC).
Fawry launched its offering in March 2010, with 5000 points of sale in two cities in
Egypt. Within six months of its launch, 400,000 customers had used its service.
In 2013 The IFC invested US$6 million in the company to help it expand its financial
services across Egypt to improve financial inclusion in the country. Then, in a significant
win for the Company, Fawry announced it would start to expand regionally, beginning
with the UAE.
In November 2015, a consortium of international financial investors comprising the
Egyptian-American Enterprise Fund, the MENA Long-Term Value Fund and Helios
acquired a majority stake in Fawry at a purchase price of approximately $100 million.
By 2018, Fawry had processed over 600 million transactions, with a total value of EGP
34.2 billion. Core profit, which grew by 41.2%, stood at EGP 152 million.
In 2019, Fawry went public on The Egyptian Exchange (EGX). The company listed 36%
of its share capital, worth US$97 million. The IPO was oversubscribed by 30x for
US$0.39.
EGYPT'S FIRST TECH UNICORN.
In August 2020, Fawry made headlines once more for becoming Egypt's first tech
unicorn after its market cap hit US$1.07 billion. Shares surged 7.91% after the news
broke, representing 274% since its IPO. And as of this year, Fawry is available at 225,000
points of sale and covers 1,186 services through its payments network.
Fawry Microfinance's portfolio achieved rapid growth throughout 2021, despite the
lingering effects of the COVID-19 pandemic on the Egyptian and global economies,
including supply chain disruptions and heightened inflation.

Exhibit 1.1
· Omni-Channel Experience
· POS & MyFawry
· Service Points/Channels
· Customer Service Provider (CPR)
· Wallet Fawry Solution
· E-Service Bus
· Reconciliation
· Biller Warehouse
· Service Providers/ Billers
Fawry offers financial services to consumers and businesses through different channels
and locations. Exhibit 1.1 illustrates the variety of the services categories provided by
Fawry.
Channels & Services
FAWRY'S SERVICES
Services diversity
Omni Channels (RTL, Banking Wallets, ATMs, IVR, Mobile Wallets, internet banking,
QR Acceptance, …. etc)
Strategic partners diversified the Products Catalog.
Offering solutions based on high technology and based on Service-Oriented
The first banking agent authorized by the CBE (Fawry Plus)
FAWRY'S COMPETITIVE ADVANTAGE
In-house development team
Integrated Ecosystem
Architecture (SOA) standards
Certified for the Payment Application Data Security Standard (PA-DSS)
Sales Academy (Recently)
FAWRY'S CORE COMPETENCIES
INFORMATION-SHARING PERSPECTIVE ON STRUCTURE
Vertical Information Sharing through Organization design facilitates the communication
among employees and departments necessary to accomplish the organization's overall
task. Top Managers create links to coordination among organizational elements.
Vertical links coordinate activities between an organization's top and bottom, as
illustrated in Exhibit 1.2. These links are designed primarily for the control of a variety of
business units. Employees at lower levels should carry out activities consistent with top-
level goals.
Top management must be informed of activities and accomplishments at the lower
levels—a hierarchical referral. The first vertical device is the hierarchy, or chain of
command, illustrated in Exhibit 1.3.

TOP MANAGEMENT
FAWRY'S ORGANIZATIONAL DIMENSIONS
Analyzing Fawry along the following dimensions indicated in Exhibit 1.4.where it would fall
on each scale. Rating from 1 to 10. ( By Dorothy Marcic, 1996)
Organizational dimensions fall into two types:
30 years Software Industry.
IBM, Regional Technical
Resources Deployment
(MENA).
Amani Fawzy
Chief Technology Operations
Officer- FIS
Vice Chairman & COO of Raya Holding Group.
Established Protech, Oratech, Raya Telecom, Raya
IBM Sales & Marketing.
Contact Center.
Ashraf Sabry
Chief Executive Officer
Saudi American Bank (Citi) Head of
Implemented world trends in payments.
IT project portfolio.
Tareq Bashir
Chief Knowledge Officer - Fawry
16 years of international experience in the software industry.
played key roles in various successful projects for GM, Saudi
Ministry of finance, Airfare in US.
Moustafa El Nahhas
Chief technology officer- Fawry
15 years of finance, treasury
& planning.
Raya Egypt & California
Gardens UAE.
Abdelmeguid
Mohamed
Chief Financial Officer
Hossam Ezz
CEO-Fawry Plus & FMCG
CCO-Fawry
Senior director at Raya FMCG.
Director of distribution at Raya trade.
Country Manager- Raya Algeria.
Amr Hegazi
Managing Director-FMF
MSME consultant with USAID project.
Lead trainer for SEB.
Business plans development, Bank of
Alexandria.

Structural Dimensions
describe the internal characteristics of an organization and illustrate the following:
Formalization: It was rated seven because the average of documentary courses
depends on the Management level. For example, Top management can be exempted
from complying with the forms and written documentation of human resource
management procedures deriving from the behavior of that management level within
the company.
Specialization: Each employee performs a wide range of overlapping tasks, thus rated
by 9.
Hierarchy of authority: The hierarchy is depicted by the vertical lines on an organization
chart, as illustrated in Exhibit 1.2. It is related to the span of control. It was rated 4.
Centralization: Its rate of 2 refers to the decision made at the top level; the organization
is centralized.
Professionalism: The level of training of employees rated by 8. There is a lack of
training programs for top and middle management that include members from different
industries—focusing on providing training for Sales Rep through Fawry's Sales Academy
to enhance the retention of their Sales team.
Personnel ratios: sales employees are 60% of Fawry's total employees; thus, it is rated
by 10.
Contextual Dimensions
Culture: An organization's culture is the underlying set of values, beliefs,
understandings, and norms employees share. The company culture is not clear enough.
Ambiguous norms and values. So it's rated by 9
Technology: Fawry worked on building solutions and network design based on Cisco
and IBM platforms. They are offering solutions based on high technology and based on
Service-Oriented. Furthermore, with an integrated ecosystem and Mobile Wallets, thus
the rank of Organizational Technology Services is 9.
Goals and Strategy: It may be considered as short-term goals with a plan depending on
the target or threat that Fawry faces. Not considered as a strategy thus, rated by 5.
Size: The growth of Fawry's employees since 2009 to more than 3000 categorized
Fawry as a large company.
Environment: Any company that provides products and services based on the internet,
software, and rapidly changing technology copes with High Uncertainty, which means
significant numbers of dissimilar elements frequently change; thus, the External
environment is rated by ten according to the instability that has to deal with.

FAWRY'S ORGANIZATIONAL ENVIRONMENT ANALYSIS
Fawry is a Fintech domain that provides Services and products based on Internet,
Software, and Technology.
Most Fintech companies focus on a specific competitive niche and operate in a sizeable
dissimilar number of external elements, either influenced directly or indirectly.
Nevertheless, an unstable environment impacts the company's performance.
The unstable environment climate Includes factors that change frequently and
unpredictably; thus, A High Uncertainty Environment. The environmental conditions of
complexity and change create a greater need to gather and respond based on that
information. (Richard L. Daft., The External Environment-Organization Theory and Design
-TENTH EDITION.)
Exhibit 1.4.

The organizational environment can be subdivided into the task environment and
general environment. Some of the organizational environment sectors that Fawry
interacts with to accomplish its goals could be indicated as follows.
TASK ENVIRONMENT
The human resources sector (Threat is HIGH).
"Steve Creamer, president and CEO of Energy Solutions", said his company's single
biggest problem is human capital.
The labor market, universities, training schools, employees in other companies, and
unionization are essential factors in the Human resources sector.
For example Labor market: Salaries are not fixed, meaning they can go up or down,
depending on the employee's performance. Sales incentive that is achieved by target
addition to low basic Salary is the most popular approach for Sales Rep.
The training schools and Fintech specializations are considered a real threat as the
demand increases against the lack of qualified candidates.
The industry sector (Threat is HIGH).
Competitors, industry size and competitiveness, and related industries are defined as
industry sectors. As we mentioned, Fawry was the first company to introduce Fintech to
the local market. It was and still is leading and was the leading company with more than
90% of the market share.
Due to internal management issues, some of the company's top and middle
management cadres left. They started to join other startups or do their own business by
creating and raising very experienced competitors to form a severe threat to Fawry's
market share.
The Market Sector (Threat is HIGH).
Increasing competition in the market has now become a substantial threat. Although
Fawry owns the largest share, this does not mean the entry of a new competitor,
whether from the same allowance or potential and actual foreign competitor.
Also, the change in customer behavior poses a significant threat. A competitor can
emerge with better offers that easily attract Fawry's existing customers.
GENERAL ENVIRONMENT
The technology sector (Threat is HIGH).
Fawry Services are based and 100% reliable on the technology it represents. The
technology sector is an area in which massive changes have occurred in recent years,
which means that Fawry has to keep updating and innovating all the time to maintain its
position in the marketplace. The risk of data and asset loss can be protected by the
correct use and implementation of the technology.

The Non-cash Payment Methods Law No 18 of 2019;
The E-signature Law No 15 of 2004 and its Executive Regulation;
The Non-Financial Markets and Instruments Law No 10 of 2009;
The Microfinance Law No 141 of 2014;
The Trade Code No 17 of 1999;
The Consumer Finance Law No 18 of 2020;
The Anti-Cybercrime Law No 175 of 2018;
The Investment Law No 72 of 2017 and its Executive Regulation;
The Consumer Protection Law No 181 of 2018 and its Executive Regulation.
The Governmental Sector (Threat is HIGH).
In the government sector, the Regulatory Regime influences seriously every phase of
Fawry's. Fintech involves the application of multiple laws and regulations in addition to
the Banking Law and New Fintech Law, some of these regulations:
FAWRY'S BUSINESS MODEL
The business unit innovation continues evolving from a focus on ADP to an integrated
ecosystem that fuses a broad range of value-added services.
The growing uptake drove growth in the segment at Fawry's Merchant Aggregator
Platform and the consequent rapid increase in the number of acceptance-enabled
merchants in Fawry's retail network.
The investment is considered a key plank of Fawry's growth strategy. The company
leverages its role as a strategic investor in elements and Brimore to engage, support,
and encourage growth at each company and in Egypt's broader digital ecosystem.
Efficient management of channel fees is the most considerable component of Fawry's
cost base. The diversification strategy bears fruit in rapid Banking Services expansion
and its positive impact on operating costs to achieve strategic fit.
CONCISE COMPETITIVE ANALYSIS
Over time, the payments space in Egypt has seen several players make their way through,
such as Aman, Paymob, E-finance, Masary, and BEE. While this indicates increasing
activity in the space, Fawry's expansive network continues to reap the benefits of being
one of Egypt's early payments tech pioneers. And that's why, 13 years on, the company
continues to be competitive in this space.

Exhibit 1.5.
SWOT ANALYSIS
A leader in Egypt’s digital transformation
Credibility
Business Model Innovation.
Merchandising know-how
Intense call centre and customer services
Innovation.
Acquiring 80 %. Of the Egyptian market.
Strategic partners.
Consistency.
Integrated Ecosystem
Strong brand recognition
Technical expertise
Strong Reputation.
Multiple service providers
PCI-DSS is compliant with the highest
Customer loyalty.
Regionally Expansion,
security standards
beginning with the UAE.
Analysis
SWOT
Lake of Industry Knowledge. (Current
top management from different
industrial backgrounds).
The high turnover rate in line
management (sales staff).
Resigned some co-founders to be
competitors or headhunted by
competitors.
A gap in pay structure.
Lack of training & Development
Goals not defined.
Leadership Style (Micromanagement)
Vertical hierarchy
Lack of formalization
Lack of specialization
Unrealistic Sales Targets
Lake of Information System ( ERP
system)
STRENGTHS WEAKNESSES
OPPORTUNITIES
New Service and Product
New Technology
Talented Acquisition
Newmarket
Customer loyalty.
Take advantage of recent trends
investors
transaction costs relative to more
traditional payment methods.
Digital currencies.
Go Green
THREATS
Changes in the environment (PEST)
Loss of major customers.
The Threat of Substitution
New Competitors
Fraud
Changing financial regulation
Shifting consumer preferences
Evolving technology

ORGANIZATIONAL LIFE CYCLE
Fawry has been through the stages of life cycle development in its thirteen-year history.
The founders were qualified, cared to manage and had the Know-how of the brand-
new domain to expand their company. They have provided vision and entrepreneurial
spirit.
1- Entrepreneurial
Egyptian entrepreneur Ashraf Sabry founded Fawry. Sabry was earlier a System
Engineer and Industry Consultant at IBM, following which he spent seven years as Vice
Chairman and COO at Raya Holding before founding Fawry in 2008. He was the source
of innovation. The Co-founders were focused on Brand awareness. The competition
was low regarding the new domain they provided in the Egyptian market.
2- Collective Stage
Fawry's founders ensured that all company parts were coordinated and pulled together.
Ashraf Sabry, Fawry's CEO, innovative leader, and other executives handled most of the
management responsibilities. The structure has been formulated and becomes more
pronounced over time.
The CEO and Co-founders had the direction given and focused on increasing Fawry's
market share. The competition became moderate with the appearance of a few
competitors with one of Fawry's Services. Delegation at this point was needed to avoid
the consequences that likely led to the crisis.
3- Formalization Stage
At this point, Fawry Expanded its business units and provided new services.
Bureaucratic characteristics emerge. The organization adds staff support groups,
formalizes procedures, and establishes a clear hierarchy and division of labor. This is
where Ashraf Sabry, Fawry's CEO, is having trouble managing the transition because
he doesn't want to give up personal control. Exhibit
4- Elaboration Stage,
The mature organization, is large with multiple service lines; Fawry is available at
225,000 points of sale and covers 1,186 services through its payments network.
Bureaucratic, with extensive control systems. Organization Top managers attempt to
develop a team orientation within the bureaucracy to prevent further bureaucratization.
Top managers are concerned with establishing an entire organization.

2008- 2022
Fawry's Development life cycle
Entrepreneurial Collectivity Formalization Elaboration
50
40
30
20
10
0
Large
Small
Size
Creativity &
Brand- New domain
Crisis: Too much red tape.
The Org seems Bureaucratized
Development of teamwork
Provision of clear direction
Crisis: Need for delegation
with control
Addition of internal control
Crisis: Need for
revitalization
FORMALIZATION
Exhibit 1.6.
Sticking to the Formulization stage and the inability to delegate can match the situation
in which Amazon. The inability of its CEO to delegate tasks and his excessive
interference with everything related to work and employee tasks—is convinced that it is
the ideal way to control and achieve efficiency.
The incapacity of the immediate CEO resulted in consequences. Furthermore, reflecting
how he controlled and monitored efficiency and Fawry's culture.

ANALYZING FAWRY'S INTERNAL FACTORS
Organizational Efficiency and Control.
According to Fawry's consolidated results for December 31 2021, as Exhibit 1.5 shows.
We recognize two approaches for Fawry's to indicate its performance, namely:
Market Control approach
The output evaluation and productivity of an organization are utilized by price
competition.
Fawry's Business Units are evaluated based on profit and the number of transactions for
each unit.
The financial and operational performance.
All reports submitted by Fawry contain assessments and measures of profitability that
highlight the financial and operation, such as total sales profits and the number of
transactions that have been made. They use the traditional approach that focuses on
measuring Efficiency based on goal, resource-based, or internal process.
Fawry's Financial Performance improved its profitability by Diversification to increase
total revenues by 34,3% y-o-y. It booked total revenues of EGP 1,658 million in FY2021, an
increase of 34.3% y-o-y against the EGP 1,235 million recorded for FY2020 total revenue
for the year ended December 31 2021, by EGP 1,658 million, 37% year-on-year. Exhibit 1.7
Exhibit 1.7.

A total throughput illustrates Fawry's overall operational KPIs performance in Exhibit 1.8.
demonstrates, increasing to EGP 130.9 billion for FY2021, up by 61.5% y-o-y versus EGP
81.0 billion one year previously.
Exhibit 1.8.
On the other hand, Customer service and Learning & Growth indicators are missing by
Fawry, measuring customer retention and satisfaction through customer surveys, as well
as the potential learning and growth for the company.
By focusing on how well resources and human capital are being managed for the
company's future achievements. Measurements of Learning & Growth include employee
satisfaction and retention and the amount of training people receive.
SUGGESTIONS TO ENHANCE ORGANIZATION MONITOR & CONTROL
PERFORMANCE EFFECTIVELY.
1-Balanced Scorecard Approach:
The balanced scorecard considers the four effectiveness categories. Within each area of
effectiveness—financial performance, customer service, internal business processes,
and the organization's capacity for learning and growth—managers identify key
performance indicators the organization will track. Exhibit 1.9. illustrates the four
effectiveness categories considered by the balanced scorecard. (L. Daft, 2008
Organization Theory and Design, Tenth Edition).

2- Executive Dashboard Approach:
Another suggestion for more effective performance is using IT for coordination and
control.
The primary advantages of IT for organizations include improving decision-making and
enhancing coordination and control of the organization internally and with external
partners and customers. (L. Daft, 2008 Organization Theory and Design, using IT for
coordination and control, Tenth Edition).
An executive or business performance dashboard is a software program that presents
vital business information in a graphical, easy-to-interpret form. Managers can see key
control indicators at a glance. Dashboards pull data from various organizational systems
and databases; gauge the data against key performance metrics; and pull out the good
nuggets of information to deliver to managers' laptops or PCs for analysis and action.
Exhibit 2.1 shows an example of an executive dashboard.
Exhibit 1.9.
Exhibit 2.1
Analyzing Fawry's Internal Factors
Dashboard systems coordinate,
organize and display the
metrics managers consider
most paramount to monitor
regularly, with software
automatically updating the
figures.
The benefit of the Executive
Dashboard

Positive Effects
Creator control
Get new hires up to speed
Delegation of work is
easier
High engagement with
the team
Negative Effects
Lack of Trust Leadership
Decreased Moral &
Culture
Decreased Performance
High attrition rates
High burnout
Dependent staff
Narrow vision and scope.
Exhibit 2.2
Leadership Style
The ultimate controlling management style.
It's challenging enough dealing with a micromanager in mid-level roles within an
organization, but it gets worse when you get to the top.
Micromanagement or micromanaging is a management style where the manager
monitors the team's performance extensively. Micromanagers feel that their team can
only succeed if they control everything. Though, that does more harm than good.
That means being fully involved in their work, limiting the workforce's creativity,
autonomy, and input. It often harms employee engagement and experience, primarily
resulting in attrition.
A micromanager is often of the opinion that they are all-knowing. In this belief, they
think no one else can do a better job than them. It results in a low delegation, as an
example in this case. It has A two sides effect on the organization, as Exhibit 2.2 shows
The CEO's inability to delegate might be responsible for the executives' high turnover
rate. By continuing to run Fawry like a young, entrepreneurial firm, Sabry might be
hurting the company's ability to keep good managers and grow successfully.
Being Sabry is too involved in every step a worker takes in their work. Always
impatient to get the task done well and quickly simultaneously, a combination that
does not go well together. He wants to have a say in everything.
One of the biggest challenges that Fawry is facing nowadays is Micromanagement
being applied by their CEO through the following:
The most common Factor of Micromanagement is the organization's structure that
contributes to Micromanagement. When the organization has many levels of
hierarchy, it pressures the manager to make the decisions for the subordinates.

SUGGESTIONS APPROACH TO STOP MICROMANAGEMENT
Creating a company culture of trust and shared accountability: Employees
behave differently when leaders, managers and teams are expected to take
ownership of the work and build trust. Recommended the following approaches
to create greater employee empathy and improve organizational behavior and
performance:
Rethink communication strategy: This communication should span employees within
all levels and departments, including and relating to everyone equally.
Recognize excellence: public recognition enormously affects trust when it occurs
immediately after an employee meets a goal.
Values-based Leadership: "Walk the Talk" Developing and Strength the relationship
between leaders and their followers based on shared, strongly internalized values that
are advocated and acted upon by the leader.
Delegation: Assign people to specific daily tasks, allowing yourself more time and
building trust. Practice giving up control; stress less and help employees practice
accountability.
Allow learning: Highly cross-trained, competent workforce, capable of adjusting to
market and customer changes quickly and effectively.
Structure change: Another approach to overcoming the problems of hierarchical style
by an attempt to decentralize authority, flatter organization structure, reduce rules and
create a small-company mindset. So that the company can be willing to trade
economies of scale for responsive, adaptive organizations.
Work teams approach: In the face of competitive and technological challenges, many
organizations believe work teams are a practical approach to accomplishing
organizational productivity goals (Ranney and Deck, 1995). Working in teams is
considered a vital core competence in achieving productivity and shared learning

THE CONSEQUENCES AND CONFLICTS THAT AFFECT FAWRY
Although Microm management has both side effects, unfortunately, Fawry was
impacted by its negative side, which has resulted in a High Attrition Rate, especially in
Top Management.
In 2020, Mohamed Okasha, the former managing director with specialized experience in
this field and one of the company's founders, decided to leave it due to his non-
acceptance of the management style.
That was the first sign that Ashraf Sabry had to recognize. However, his reluctance to
share power doesn't sit well with many managers and that caused the resignation of
some of Fawry's earliest co-founders, replacing them with executives from different
industries. That makes Fawry has to cope with some of the External Environment
Challenges.
Meanwhile, involved in occurring the following issues:
Unprofessionalism
lack of support
Incompetent leadership
Poor employee treatment.
1- Middle Management Turnover
The reasons that contributed to how a manager’s behavior influenced an employee’s
decision to leave were preventable and may consider the following:
Recommendations for resolving the conflict:
Provide professional development opportunities.
Create Job description: Identity the KSA needed to perform the job.
Team Building: Team building has many benefits for businesses. It improves productivity,
increases employee motivation, encourages collaboration and builds trust and respect
among employees.
Conduct performance appraisal: A continuous process of identifying, measuring, and
developing the performance of individuals and teams and aligning their performance with
the organization's GOALS.
Positive Feedback: Continuous interaction and feedback.

Problems with the company's culture.
Salary structure
Unrealistic Sales targets
Training managers.
Management style and much more.
2- Line- Manager Turnover
Voluntary turnover results in departing employees migrating to competing firms. That
creates a loss of intellectual capital due to tacit knowledge leaving the firm (Stovel and
Bontis, 2002; Droege and Hoobler, 2003)
The other conflict that should be considered is the increase in the Turnover of Line
Management. As an approximate turnover value for Line Management, specifically Sales
Rep,
That badly impacts the Company's KPI, core competence, and competitive advantage.
It means losing good employees, sometimes to competitors. Furthermore, losing market
value.
Causes: Include a high turnover rate for line management as follows:
Employee satisfaction survey: The results of satisfaction surveys can indicate how
employees feel about working for the company. Their anonymous responses may
encourage them to be honest, which can help you gain insight into how to make the
organizational culture more comfortable for them. Pose questions that ask them to rate
their satisfaction with management, training opportunities and salaries. Evaluate the
responses to identify patterns and apply the feedback to your employee retention
strategies.
Establish a market-competitive pay structure: Provide a competitive salary and
contribute as many benefits to your team as possible, such as health insurance.
Offer pliable benefits and performance-based compensation within a realistic target to
freshen the deal. These decisions consider not only a position's salary range but also the
value of benefits provided. Total compensation includes Salary, leave earned, insurance
paid, and so on.
Examine new hire orientation: The effectiveness of the orientation process for new
employees can influence employee attrition and reduce the attrition rate.
Training programs: Currently, Fawry has established Sales Academy.
Team Building: Team building has many benefits for businesses. It improves
productivity, increases employee motivation, encourages collaboration, and builds
employee trust and respect.
The consequences and conflicts that affect Fawry

Middle- Management: Developing the long-term abilities they need to perform
future jobs and better meet the organization's goals.
Current and new Executives from other industries: Creating comprehensive
Training programs related to the Fintech industry to improve their Industrial/
Product knowledge.
3. Lack of product/ Fintech industry Knowledge in Top/ Middle
Management (Human Resources Sector-Task Environment).
Once MD announced his resignation and moved to another company, the headhunting
process for Top & Middle Management started to proceed from the competitors' side.
Although Fawry started to hire qualified Managers, they didn't have the product
knowledge like the manager who was part of Fawry's success story due to their
awareness of the following ( process implementation, Product knowledge, technical
knowledge).
1. Prioritize development by Designing Effective Training Systems such as OJT (On
Job Training)
2. Develop solid lines of communication between managers and subordinates
value: Managers play a key role in establishing clear lines of communication within
the organization. Feedback is two-way communication. Employees should know
that their ideas are vital.

4. Increase of the new competitors' entrants (Industry sector-Task
Environment).
Due to the evolution in the financial industry worldwide and the rise of tech startups
that solve financial industry challenges, banks are now integrating. Innovative concepts
in their models and financial technology [Fintech] startups offer their customers diverse
and unique services.
It is not about only the Executives. According to the observed Information from Ex-
top management, he said: "there was headhunting from one of Fawry's competitors
target specific areas for the supervisors and Sales Reps". At that time, the number of
submitted resignations reached 200 and was solely in one month.
Develop/innovate new services to cover the Gap competitors established across their
services and maintain the highest market share.
Not all managers might understand or accept the consequences of Micromanagement;
however, when encountering such high turnover from critical and sensitive positions
such as DM and other Top Managers with very high technicalities.
That might require interference from the shareholders to avoid such enormous
consequences of Micromanagement through restructuring at the Top Management
level
( C- Level) or revisiting the roles and responsibilities to avoid unnecessary involvement
from the CEO.
c: Adding new positions and departments is a common way for organizations to adapt
to growing environmental complexity and uncertainty, such as Market Research and
R&D.
Building Relationships: Opening up the organization to the environment by building
closer relationships with external parties makes it more fluid and adaptable.
Organic structure and systems with low formalization, decentralization and low
standardization enable a high-speed response.
Boundary-spanning roles: By Business Intelligence to actively monitor customer
interactions to recognize any problem and fix it immediately. the Business intelligence
approach is related to competitive intelligence (CI), another area of boundary
spanning, which gives top executives a systematic way to collect and analyze public
information about rivals and use it to make better decisions

Enhancing employees engagement
Executive Support System
Increase productivity
Indicate employees performance
Improve communication.
Close coordination within the company and with suppliers, customers, and partners.
Strategic decision support, through Decision Support System
The substantial benefit is that it will reinforce change management (from rigid to
flexible)
Decentralization
5. Lack of technical knowledge specialization for Fintech technology
With the high attrition caused by the micromanagement issue. Fawry had to hire a
Manager from the top and middle-level management; however, with no knowledge of
Fintech since Fawry was the leader in this field.
1. Hire the right people in the right place: During the hiring/selection process, consider
the technical background according to the position, as it differs from department to
department.
2. Designing Effective Training Systems More detailed training programmes will be
provided to managers to increase their awareness of the fintech industry.
6. Lack of Information System management
Recalls Fawry's Weaknesses, as they are missing The ERP System. Although that Fawry
has a lack of Formulaization or few rules, which reflects the randomness in the company's
internal documentary cycle addition, they don't implement a system to control
The benefits of applying an ERP System include:
Adding strategic value: Strengthening Internal Coordination by implementing an ERP
system to collect, process, and provide information about a company's entire enterprise,
including order processing, product design, purchasing, inventory, manufacturing,
distribution, human resources (HR), receipt of payments, and forecasting of future
demand.

CONCLUSION
Fawry suffers from the lack of harmony, but this time with their internal
customers; its Employees.
Running Fawry as a young, entrepreneurial firm might hurt the company's
ability to keep good managers and grow successfully. Atrophy occurs when
organizations grow older and become inefficient and overly bureaucratized.
Conceivably, as a leader, it's your job to ensure everyone stays on track and
hits their deadlines. But sometimes, that pressure gets to be too much.
Furthermore, it leads to stages of decline if it hasn't already experienced its
first Stage as a Blinded stage, where the Micromanagement style is
considered an internal threat for Fawry. The CEO is missing the signals of
decline at this point.
In a win-win situation, an organization can maintain its success by adapting
to change from highly structured systems based on a mechanical model to
a looser, more flexible approach.
Provide opportunities to learn, open communication, create a culture of
trust, a spirit of goodwill, and people willingly cooperate to achieve mutual
benefits.
Last but not least, building underlying solid values, assumptions, beliefs,
attitudes, and feelings ensures internal integration and external adaptation.

REFERENCES
Sources of data: conducted Interviews were conducted with two different managerial
levels who were ex-employees in Fawry.
Fawry's History https://www.digitaltimes.africa/myfawry-awarded-the-top-fintech-app-
in-the-middle-east-as-it-racks-up-16-million-downloads/
https://www.ibm.com/case-studies/fawry-systems-hardware-flashsystem-power-
systems#:~:text=Fawry%20%28external%20link%29%20provides%20financial%20services%2
0to%20Egyptian,that%20is%20fully%20compliant%20with%20international%20security%20s
tandards.
The External Environment-Organization Theory and Design -TENTH EDITION, Richard L.
Daft.
https://www.heliosinvestment.com/fawry
The Governmental Sector- Fintech 2022;
https://practiceguides.chambers.com/practice-guides/fintech-2022/egypt
Balanced Scorecard Exhibit 1.9.1 Source: Based on Robert S. Kaplan and David P. Norton,
"Using the Balanced Scorecard as a Strategic Management System," Harvard Business
Review (January–February 1996), 75–85; Chee W. Chow, Kamal M. Haddad, and James E.
Williamson, "Applying the Balanced Scorecard to Small
Companies," Management Accounting 79, no. 2 (August 1997), 21–27; and Cathy Lazere, "All
Together Now," CFO (February 1998), 28–36.
An Executive Dashboard Source: IBM Cognos BI and Performance Management
Software; http://www.cognos.com/products/now/images/master_dashboard.jpg
(accessed on November 12, 2008).
Organization Dimension: Organization Theory and Design -TENTH EDITION, Richard L.
Daft.
Team building- https://www.complianceandethics.org/why-team-building-is-important-
for-your-business/
performance appraisal: Human Resource Management (15th Edition) by Gary Dessler
ADAPTING TO A CHANGING ENVIRONMENT-Organization Theory and Design -TENTH
EDITION, Richard L. Daft

Contemporary Management Fawry.pdf

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