Issues pertaining to cultural change
Discuss about the Changing Management of ANZ National Bank Limited.
ANZ is on the third position in Australia market capitalization. ANZ comes under largest banks all over New Zealand, and here the officially authorized unit is known as ANZ National Bank Limited and they altered to ANZ Bank New Zealand Limited in the year 2012. The operations in Australia formulate the chief element of ANZ’s industry, with marketable as well as trade banking control. ANZ is headquartered in Melbourne. Most importantly, the strategic priorities of ANZ bank are to drive an idea and values which led to a positive transformation. The bank creates a stronger sense of intention, ethics and also fairness, investing time and money in the leaders who can actually help sense as well as navigate fast changing surroundings. To support the strategic priority to drive the new ideas and values which led to new transformations, the bank refreshes their values with contribution from more than 1,000 employees every year? The banking group of ANZ is among five leading and successful companies across Australia. More than 30,000 people are employed by ANZ in Australia, New Zealand, Asian countries, Pacific region, UK, in India and also in USA (ANZ, 2008).
ANZ recognises the significance of shareholder commitment and support the shareholders to take a dynamic concern towards the company. ANZ bank has continued to connect constructively with controller, administration and also the policy makers. The main objective of ANZ is to catch the attention and raise excellent people where a good environment is created to sum up their objectives to become prime choice across Australia (Group, 2015).
The ANZ bank was basically operating under a tapered culture. The people who are working within the organization have to various issues which are given below:
Negative observation: As the bank follows top-down culture that limits the resolution which makes top administration left out with a gap between the senior supervision. This becomes the perceptive of various situations and the understanding of employees. Such observations result in the growth of negative perceptions within people who are running within the area of utility, procedures as well as principles of ANZ (Gonski, 2017).
Feminine culture: Before attaining any transformative changes ANZ bank comprises of male background. At the time of male cultures before transformation, the femininity job is dissimilar; and men’s are somehow believed to be stiff as well as hard and anxious towards the eminence of life. McFarlane experienced feminine culture in ANZ by noticing shortage of women in place of leading management.
Transformation of organization during the time of McFarlane’s at ANZ Bank
Confusion: Communication gap leads to confusion number of times. Due to communication gap among the employees and within the senior management team, high level of confusion number of times occurred about the accessible banking practices followed at the ANZ bank.
Individuality: The people in ANZ bank had unusual approach towards the operations and main concern of the bank. They simply failed to act jointly and there was a lack of integration of new ideas and assets due to individuality.
Bad behavior: Many people were busy in the practices which are regarded as bad behavior as per the law in general banking and followed practices. They were restricted to their personal interests and were not busy in their respective roles(ANZ Bank, 2016).
The functionality of an organization must be like a theatre where all the employees working in an organization act as performer. The performances must be supportive to resolve the conflicts and issues which are creating problems within a working organization. Many old issues, innovative ideas, borrowed expertise as well as important strategies must be put onto the stage, where they can combine and start to produce fresh myths and great belief system. Change must be exciting, innovative, and fundamental.
The structural changes in the ANZ bank explain an understandable image of the basic necessities of all the employees as well as working managers in bank and the aspiration of the bank position in the marketplace. It demonstrates the honesty, teamwork, admiration and superiority in their performance and proceedings.
McFarlane took some important steps to decrease the financial debt ratios which make the bank to stand among the top score within the country. He executed three main enlightening steps towards the change within the limitations of the outlaw, execution, development and most importantly breakout approach which ensures a good presentation in context to the procedure as well as liberty of assessment to the particular stakeholders, development in the income, management and also product article and also the getaway of earlier job and building set of task which direct to an extensive form of guidance and achievement. ANZ bank developed a culture which support the input of an employee and also decentralize the process of decision making that oppose the customary decision making procedure which are opted by the senior management at ANZ. The wrong managers that are in the jobs which effect the organization all the way downward were identified by McFarlane and removed. Well-organized management was put in the bank that had excitement to work and also it was regimented to perform their respective duties (Kroening, 2014).
Improvement in business leader performance
There are many political changes within the bank that helped the people of ANZ banks to open up to the innovative ideas and choices that are set before them. Somehow many people were sufferers of the top-to-down approach which may lead to lack of motivation to speak up the problems that they were facing. McFarlane is the one who changed the background from administration to ideology. The stream of data that time was exceptionally confidential and the staff of ANZ bank at the lower post had no admittance to any of the bank information. The control of information that time was submitted in the hands of the leading management team. There are also some political changes which are made by McFarlane completely change the practice and shield the sense of belief among the working employees. Appropriate training of individual, change their personal approach of reacting as well as performing. This new approach makes the employees to work and respond within a group in a specific situation and circumstances (Cleer, 2016).
The main purpose of the change was to generate an agonistic as well as feasible improvement for the ANZ bank. McFarlane bring in the breakout scheme to bring the intellectual changes within the organization. He is the one who started an inclusive scheme to modernize the presentation of working employees within the organization. Such type of scheme enabled McFarlane as well as his management team to put a limit on the ANZ dropping achievement and carry fundamental transformation in the working culture and price system of organization (Ferry, 2006).
Improvement of performance of the operations is quite necessary. Therefore, some of the effective leadership plans are discussed below which helps the business leaders to improve their performance in context to leadership.
Four keys of successful guidance: Basically the purpose of this plan is to create understanding as well as offer the members a respective feedback on, the main four determinants which leads to a successful leadership. The four keys include personal individuality, job necessities, leadership styles and at last organization climate. Also, one must be familiar with the work that how to integrate the individuals and work within the group.
Business leadership program: The BLP program is basically three days inhabited program which point up the relations among the behavior of the leadership and the result of effective production. This program generally provides the contributor with the better perceptive of their behavior and on the other hand it puts a major impact on their respective job. The style of leadership styles which they choose to assume, and the atmosphere which they tries to create in their relevant work places must be maintained by the organization (Blumenthal, 1994).
Understanding: All the members endow with an exclusive chance to imitate their own behaviors, as observed by their own as well as by other people. They are judged by their speaking ability and knowledge about their specific job necessities. The experience is necessary to reflect their existing power and circumstances where one might unintentionally stop others from rewarding the prospective as well as maximize their involvement. Contributor must be attentive in terms of atmosphere changes that are created in the individual work group.
Several challenges occur when the conversion plan is introduced in ANZ to assure the team driving a particular change which is authorized to take right decisions which can fit in the model of corporate governance. There can be various challenges that a manger has to face in ANZ bank while implementing the transformation strategies. These challenges are given below:
Inaccurate effort judgment: Several stages of transformation plans can be quite hungry for the resources. The scope of the private information is sometimes not completely familiar. The information which was required to be collected and the figure of people that are require during the time of discussion about information judgment stages can always direct to the capability problem by the development teams. Consequently, making correct usage of the earlier figures on the priceless source require crest which can be somehow dangerous to ensure the even liberation of the working scheme and afterward it benefits the set up plan (Nutt & Backoff, 1993).
Incapability to maintain drive while implementing any change: In many of the programmes there is frequently a lot of fuss at the starting time and complexity arises while finding the traditions to uphold drive designed for supporting the need of transformation. Many individuals consider that the policy is about average to the long period wins within an organization.
Lack of background acquaintance: Retain the works very important while handling the change programme. The chief part of the change programme is to recognize what doesn’t even work, and on the other side find out a way to fix it. Pro-activeness is the best quality which each and every organization looks for; though, sometimes it fails to succeed due to the wrong timing problem(Aaltonen & Ikävalko, 2012).
Lack of communication: The liberation of comprehensive events and papers does not essentially drive the people to deliver a change, but constant engagement does. In an organization communication plays a key role. There are several tasks which have to perform within a group. In that case, communication becomes a crucial step to work under a team. Lack of communication always leads to various mistakes. It is significant to recognize the organization which you are dealing with and cautiously plan the communication strategy, channels and also periodicity for plan.
Mysterious personality McFarlane was completely accountable for carrying out transformation within organization. The approach of management is necessary for the accomplishment of the plan which aims to forward an enlightening makeover. Oppressive style of leadership will generally not be able to produce the desired outcome as it will most likely to result in the resistance from various employees. On the other hand, the laissez-faire style of leadership plan will be quite successful as the plan will be run with involvement as well as engagement of the employees. Leadership of ANZ contains the following three elements to attain its target of bringing out the change (Cameron, 2017).
Political Commitment: Leadership style is completely responsible for driving the commitment among various employees regarding the plan or scheme which at the starting point does not have any hold up among them. Political obligation is very necessary when an organization requires a fundamental transformation.
Emotional Commitment: The idea of leadership is to attach the employees emotionally with the transformation. One must be able to adapt the changes that are occurring within the organization. Great leadership works throughout various emotions even if they were getting everything (Felsbourg, 2017). Emotional commitment will allow the top-management to limit any organizational and employee’s conflict. In the procedure of bringing out some change, normal enticement might not be sufficient to limit the resistance. The transformation changes within an organization bargains the positions and associations within the organization.
The leadership of ANZ bank needs to engage as well as involve the employees in the change procedure. This will provide them the feeling that the working members are the part of such process and will work for the accomplishment of it. Decision making and also increased problem solving participative are powerfully connected with one another (Woodford, 2012).
Conclusion
To carry a flourishing change within the organization, an important guidance plan is needed to display the accurate suggestion that provides the employees a proper direction; and keep them motivated. Such changes allow the organization to defeat any kind of challenge which is rising in their path. The chosen management style must be independent and participative that would help to engross and also connect the workers with the entire organization makeover procedure. The transformation made by McFarlane was very essential for the growth of ANZ bank.
References
Aaltonen, P. & Ikävalko, H., 2012. Implementing strategies successfully. Integrated Manufacturing Systems, 13(6), pp. 415-418, Available at: https://www.emeraldinsight.com/doi/abs/10.1108/09576060210436669
ANZ Bank, 2016. Corporate sustainability review, Available at: https://www.anz.com/resources/9/9/99d1a990-7599-4dc7-87ef-ac502f327b85/accessible-corp-sus-rev-2016.pdf?MOD=AJPERES
ANZ, 2008. Home Ownership and Indigenous Australians: Final report and response, Available at: https://www.anz.com/Documents/AU/Aboutanz/Community/AN5610-HO&IA-SummaryFINAL.pdf
Blumenthal, B., 1994. Opinion: toward a definition of corporate transformation, Available at: https://search.proquest.com/openview/12602004cbb9574e4e9451d0463cf924/1?pq-origsite=gscholar&cbl=1817083
Cameron, N., 2017. ANZ digital chief: Tackle the ‘frozen middle’ of your organisation or face irrelevancy, Available at: https://www.cmo.com.au/article/619739/anz-digital-chief-tackle-frozen-middle-your-organisation-face-irrelevancy/
Cleer, C., 2016. Former ANZ CEO John McFarlane calls for rethink of banking philosophy, Available at: https://www.afr.com/brand/chanticleer/former-anz-ceo-john-mcfarlane-calls-for-rethink-of-banking-philosophy-20160803-gqjr4f
Felsbourg, M., 2017. Information Governance Requires a Combination of Policy, Process and People to Drive a Business Outcome, Available at: https://www.infogovanz.com/policy-process-and-people/
Ferry, K., 2006. Corporate leadership- John Mcfarlane, CEO, ANZ, Available at: https://www.haygroup.com/au/downloads/details.aspx?id=15916
Gonski, D., 2017. Corporate sustainability review, Available at: https://www.anz.com/resources/a/a/aad685ed-7d0f-47c7-9336-3150608aee61/accessible-csreview-2017.pdf?MOD=AJPERES
Group, A., 2015. CDP 2015 Climate Change 2015 Information Request, Available at: https://www.anz.com/resources/1/9/1916a78a-8571-44c4-8456-1d6a666e98a7/cdp-submission-2015.pdf
Kroening, S., 2014. The Breakout story: Transforming the Culture of ANZ, Available at: https://facilitatingsuccess.com/wordpress/wp-content/uploads/2014/12/Transforming-the-Culture-of-ANZ.pdf
Nutt, P. & Backoff, R., 1993. Transforming Public Organizations with Strategic Management and Strategic Leadership. Journal of Management, 19(2), Available at: https://journals.sagepub.com/doi/abs/10.1177/014920639301900206
Woodford, K., 2012. The conclusion of our coverage of the ANZ report Greener Pastures: The Global Soft Commodity Opportunity for Australia and New Zealand, Available at: https://www.interest.co.nz/rural-news/62218/conclusion-our-coverage-anz-report-greener-pastures-global-soft-commodity
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