Organisational development is said to be important for every single organisation which helps firm in becoming much effective at marketplace. This can be considered as a systematic approach in order to enhance both productivity and profitability of a firm. This includes various things like aligns strategy, training can be given to teams or groups and procedures through which sustainability can be maintained in an appropriate manner. Australian multinational financial organisation which has been taken under this report i.e. Commonwealth Bank. Its headquarter is in Darling Harbour, Sydney, Australia and have almost 50,000 employees who are continuously delivering services to its clients. Report is going to include, organisations overview, Swot analysis, areas where firm should improve and many development interventions, suggestions & actions in order to resolve the issues.
Overview of Commonwealth Bank
Commonwealth Bank was founded in 22 December 1911 as a public organisation. They had opened their first branch in Melbourne on July, 1912. In 1916, Commonwealth Bank is moved its head office in Sydney. This bank starts acquiring powers of central bank when it look over duties for the problems of Australlian bank notes from treasury department in 1920. It is the industry which provide banking and financial services. Companies headquarters are in Australia, Sydney and Darling Harbour. Commonwealth Bank are having various numbers of location approx having 1,100 above branches and ATMs are establish approx 4,300 above. The managing director Commonwealth Bank is Matt Comyn as well as chairman of organisation is Catherine Livingstone AO. Commonwealth Bank provide various numbers of products such as investment banking, insurance and finance, consumer banking, credit cards, Mortgages, global wealth management, investment banking, corporate banking etc. This organisation earn revenue is approx A$26.005 billion in 2017. Net income of Commonwealth Bank is A$9.881 billion in 2017.
Organisation provide employment opportunity to numbers of workers within their organisation as they employed 51,800 workers in 2017. Commonwealth Bank are having various divisions such as services, international financial, retail banking services, private and business banking, markets and institutional banking and wealth banking. Organisation are having different subsidiaries like as Bankwest, ASB bank, commonwealth securities, CommInsure, Colonial First State and Sovereign Limited. Commonwealth Bank sold Bank of south Pacific and Colonial National Bank in December 2009. this bank is one of the main Australian banks called as profiting as well as financing from destructive activities to a Great Barrier Reef.
Structure of Commonwealth Bank is retail banking services division provide financial services to small business and personal customers. Premium business services are divided in two departments in 2009, Markets & institutional banking and Private & Business banking. IB&M involve area of banks that give services to global market and institutional clients. B&PB involves bank area that give business services to consumers as well as customers of private banking. Wealth management bring together master funds, financial advice business support, superannuation, groups funds management platform and insurance.
SWOT Analysis of Commonwealth Bank
Commonwealth Bank of Australia SWOT analysis are discussed in detail below:
S stands for Strength
- Major bank of Australian as per main financial institution ranking:It has been always committed to business sustainability as well as consumer satisfaction along with its success. Commonwealth Bank was ranked as a number one among main Australian bank in retail of main financial institution satisfy buyers. They also maintain first position as well as equal rank in MRI satisfaction of customers for various segments of enterprise involve online and mobile banking in 2016. It is an key strength for an enterprise is it is ranked as a first for satisfying advisor within main Australian banks (Barth and Rieckmann, 2012). Commonwealth Bank frequently doing innovation to give best services to buyers as well as concentrate on exceeding expectations of consumers and meet buyers delight.
- High quality as well as proper diversified credit portfolio: Organisation has used a more conservative method along with that it has enter in Master Netting Arrangements with their aides. It aid in managing Commonwealth Bank as well as decline its risk of derivatives. It has also maintain diversified portfolio along with more conservative with 58% of its receivables and loans in domestic mortgages.
W Stands for Weakness
- Higher dependence on off borrowings: Commonwealth Bank Australian relies on funding of wholesale. It is finish by issuance of offshore debt. It leaves bank on risk, both cross currency volatility as well as market sentiment. Therefore, Commonwealth Bank Australian had tried to decline this reliance after meltdown in 2008 as well as risk is reduces of volatility of cross currency by problems of significant risk, swaps still exists.
- Limited geographical diversity: Commonwealth Bank Australian has first concentrate its Australian operations as well as Chine and Zealand, Vietnam as well as Indonesia. Bank absenteeism from American along with European markets is a main area of weakness for CBA.
- O stands for Opportunity
- Expanding into emerging markets: Commonwealth Bank Australian expand their operations in emerging markets of Asian, mainly in China. It has open up a expanding as well as vast markets for CBA along with that it is expected to bring with lot of enterprise. In coming time, Free trade Agreement within Australian and India is expected to be final as soon as possible, by raising its trade within two nations as well as starting up opportunity in their banking domain (Bell, Chan and Nel, 2014).
- Indigenous Consumer Assistance Line: Commonwealth BankAustralian ICAL gives services of banking to communities of Torres Strait Island as well as Indigenous Aboriginal over mobile phones.
- T stands for Threats
- High Capital needs by APRS: Current announcements by Australian Chairman prudential Regulations Authority as well as govern of Australian reserve bank have indicated requirements for bank for raising capital.
- Phasing out of guarantees of government to banks:All the accounts are payable by Commonwealth Bank are guaranteed by stake of government within the bank of CBA. Debt and demand deposits of Commonwealth Bank are no more guarantee by Bank of Commonwealth Australian. It cannot prove to be a main threat of bank in economic delay.
Area where company can improve
The commonwealth bank of Australia is one of the multinational bank branch with its business more than one country. The bank provide wide range of financial service comprising business, retail, institutional banking, superannuation, management of funds, investment, insurance ad broking services. Through bank functions various operations and activities in the global trade, there are various operations and areas where this is essential for them to improve their business processes and activities. Here are enlisted some of the those major menace under:
- Service Delivery: Few time before, The Commonwealth Bank has faced some systematic issues within the process of service delivery that has led the entire business, worker and consumer to loss of dollars. Thus, such activities can lead to downfall in consumer basis and divert potential buyers of company. Hence, organisation need to improve their service delivery activities or procedure in order to achieve their target through opting advanced and more suitable methods and techniques (Brix and Lauridsen, 2012).
- Policy Restructuring: The Commonwealth Bank has to improve their policy and guidelines of the enterprise as they are facing various issues due to lack of flexibility or less modification within the working organisation. The new statement of climate policy has been criticised by the environmental team. There are various other HRM terms and employment issues that company has been dealing with. In order to manage that, this is fundamental for enterprise to evolve and restructure their company policy and terms.
- Operational Efficiency: Through the company has been observed as one of the mots interim outcome providing company as per the experts, there are various operational issues highlighted among operations of enterprise such as higher labour costs, and turnover, capital generation, online pressure of margin etc. which are the major issues to watch. This is fundamental for enterprise to improve the issues linked with basic operations and activities in regard of achieving their business objectives. Thus, it can affirm that this notion require development and modification for proper functioning.
- Technological Modifications: The Commonwealth Bank of Australia is developing and operating their business functions using more advanced technologies and techniques. There are still some certain division in which this is fundamental for enterprise to involve and improve digital technologies within their enterprise for more productivity. In order to this, company is working over the artificial intelligence technology in regard of assisting with fraud detection, cyber security and regulatory compliance etc. This is the field where it is required for company to develop and engage more high tech to emphasise their productivity in signifiant manner (Burnard, and Bhamra, 2011).
Hence, through improving and altering the above discussed factors, bank can easily improve and manage their organisational structure and processes. This can not only provide them more productivity and better performance but also can assist in increasing overall revenues and sales.
Organisational development interventions and problems that can be faced by organisation
Behaviour interventions includes various steps through which manager of Commonwealth Bank can take actions through which problems can be solved of staff members which is related to their behaviour. This consider various stages, first management identifies the issue and then takes initiatives in order to resolve issues of employees.
Individual Behavioural intervention:
This can be considered as an ongoing process where opportunities should be given to an individual by providing proper tools techniques, training in a proper manner. In Commonwealth Bank, career of an individual can be developed if administration of firm will rapidly give training according to requirements.
This involves any sort of action plan through which firm can achieve desired goals in an effective way. Motivating and guiding is considered as main task here through which an individual can hit his/her own targets in short period of time.
Issue: If proper training and motivation has not been given to an employee right on time it may be possible that his/her productivity may get reduce. Therefore, it is must for Commonwealth Bank's managers to look into areas through which they can keep up the interest of an individual which may aid in making them much more effective.
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Team behavioural intervention:
In financial institutes it is must to have talented team that can resolve complex problems. Management of Commonwealth Bank can make effective teams by selecting staff members who are rapidly hitting their own targets in takes initiatives in order to enhance their productivity at workplace (Eason, 2014).
Research actions can be taken by an organisation in order to locate what exactly consumers or clients are looking for and given them services according to their requirements. Commonwealth Bank believes in delivering satisfactory services to its clients with high security policies so that they keep on using services which are being given by this bank for a longer period of time.
Communication gap among employer and employee can be considered as a problem in Commonwealth Bank. Therefore, it is must for managers to locate all issues and reduce them to zero so that it won't hamper reputation of the Bank.
Structural development intervention
In this context, it has been examined that there are various things involves that may gets involves like structure, technology and desired goals and procedures to hit them. Mainly it aims on job design, hierarchy of labour or workers, arranging tools.
Individual Structural intervention:
In Commonwealth bank, if an individual has not given task according to the capability, it is may be possible that employee may get demotivated. Therefore, redesigning jobs from time to time is must at workplace.
Proper training to employees on areas it is needed may aid in hitting their own targets in much more effective ways.
Proper examination has not been done by HR department of an individuals qualification may become a problem through which it Commonwealth Bank can face issues while hitting their targets.
Team Structural intervention:
Commonwealth Bank, has given many opportunities to every single individual to work as a team as this becomes much effective. But, it is required for them to locate all their own capability and their roles which may aid them in various extents.
Self managed work teams:
This type of team is being considered as in employee through which targets may get attain by their own where they do not take suggestions from others and works with self esteems.
Issue: Conflicts can get arose and reputation of managers will get reduce if employees will start taking decisions by their own (Francis, Holbeche and Reddington, 2012).
Technological development intervention
Technology plays an important part in an organisation, therefore it is must for Commonwealth Bank to keep on bringing new and updated tools and techniques that are related to technology to better to serve to consumers.
Individual Technological intervention:
HR department of Commonwealth Bank should locate areas in which they can use updated technology. Specification of contents, methods and relationship of jobs considers as some main elements under this context.
Using updated technology while giving training to an individual may aid improvising skills and knowledge.
Issue: Updates in technology may bring risk with it which may hamper situation if proper training has not been given to an individual.
Team Technological intervention:
Commonwealth Bank has an ample number of offices. Therefore, it is must for them to formulate teams in order to achieve a common goal.
Various software may aid Commonwealth Bank in locating areas in which they need improvement.
Making a research in an appropriate manner can be a problem while locating proper tools in order to enhance effectiveness of employees.
Solving problems in effective ways
It has been examined that there are ample number of problems which can be faced by Commonwealth Bank. Therefore, locating areas in which improvement is much necessary may aid bank in enhancing productivity, profitability and reputation in front of world. Policies should be given to consumers through for making them comfortable while working (Jabar, Soosay and Santa, 2011).
The Commonwealth Bank is one of the great bank branch of Australia which is operating its business in global market effectively. But this is necessary for organisation to understand the major issues and resolve them within certain period of time in regard of sustaining and expanding business more and more. As the company need intervention for specific division and structure of enterprise such as quality management, human resource management activities etc. The enterprise should properly perform performance management, design HRM activities, execute operations and practices along with make modification associated with structure, technologies and other activities. Also, they need to maintain personnel management, proper investigation for applicants skills and qualification along with provide proper training and induction program to worker for empowerment and encouragement of worker.
As per above report it is concluded that introducing about the commonwealth Australia and also learn about the strength, weakness, opportunity and threats of the organisation. Area where Commonwealth Australia can improves are Service Delivery Policy, Restructuring, Operational Efficiency and Technological Modifications as well. Also discussed about Structural development intervention as well as solve the problems in a very effective manner so that company can satisfy their customer with their products as well as services. Recommendation are also given for the organisation so it can improve in a better way.
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