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HRMT19020 Perspective on Organizational Change

Published : 02-Sep,2021  |  Views : 10


To apply theory and models of change management and change leadership to a given scenario, identifying the issues and proposing supported recommendations to resolve the issues.

 Identify the problems, using change management theory to explain why the problems have arisen, and develop supported recommendations to improve the situation, taking into account the concerns and interests of various stakeholders.


Organizational management is the process of developing policies that influence the ability to realize the goals and objectives. Most companies fail to compete effectively in the market because they do not develop long-term goals and objectives that can guide the activities of the business. On the same note, when implementing change, the leadership must engage the stakeholders in decision-making so that they can be part of the administration with the aim of avoiding resistance to change (Bloisi 2006). The Australian and New Zealand Banking Group Limited (ANZ) is a large company in the banking industry. In Australia, the business is doing well but in New Zealand it is the leading bank. However, the company is not without obstacles that have affected its success. In this regard, the paper discusses the concepts of organizational behavior and change management with specific reference to the ANZ.

From the case study, one can identify that Australian and New Zealand Banking Group Limited is facing many problems despite its outstanding performance in the banking industry. The first problem facing the business is bad debts. In the 1990s, the bank was facing serious problems with regard to debts it owes to its stakeholders include the creditors and the suppliers. According to the management theory, poor leadership is associated with unfair trade practices (Boddy 2010). The leadership of the company did not consider stakeholders as important parties that affect the success of the business. The bank was facing financial difficulties because the management at the time did not develop long-term ways of managing the business. As a result, the bank found itself operating under huge debts thus affecting its operations in the industry.

Another problem the bank faced is poor morale among the employees. During the 1990s, the bank experienced high employee turnover because they were not satisfied with the working conditions. The senior leadership at that time did not consider employees as important assets of the business but they focused on making profits and meeting the needs and expectations of the stakeholders. In the modern management of businesses in the 21st century, the executive management must regard employees as important contributors to the success of the business (James and Wendi 2008). The leadership did not have strong working relationship with the employees thus affecting the culture of the company. Up to date, the bank is not doing well in the labor market because of the damaged reputation. The growth in the banking industry creates more opportunities for the employees to work and in the process Australian and New Zealand Banking Group Limited is struggling to retain competent workforce. The management never used to use the values that focus on employees but their dreams and interests hence there was no shared vision between the executive manager and the employees.

On the other hand, the bank management is facing conflicts with the stakeholders and it is not delivering value to meet their needs and expectations. The main stakeholders of the bank include the employees, the customers, the government and the community (Lois 2007). The bank has many procedures and policies to follow and this means that the bank is not providing any freedom to the stakeholders. For instance, the management is not providing appropriate avenue for the stakeholders to provide their positive and negative feedback thus hindering the efficiency of the business operations. The banking industry is changing implying that the banks have to develop better strategies that can improve the operations of the business. Examples of values to implement include eliminating the bureaucracy and welcoming the feedback from the stakeholders (Michael et al 2005). Therefore, the disconnection between the management and the stakeholders is causing problems with regard to the success of the business.

Lack of employee involvement is another problem the bank is facing. The top management is not giving the employees time and tools they require to develop better strategies that can improve their motivation. When the employees join any work place, they expect to expand their skills and developments by getting exposed to team working and opportunities to attend the learning activities like seminars. The conflict of interest between the employees and the top managers affect the skills and experiences of the employees lowering their productivity (Michael 2007). The new management has to consider developing programs that encourage employee motivation and engagement and as well as breakout so that they can improve their productivity leading to improved competitiveness of the business.

Australian and New Zealand Banking Group Limited is facing the problem of lack of adequate quality control. Quality control is an important element that influences the success of a business. This is an internal process that helps to evaluate the skills of the employees and effectiveness of the talent management programs that influence employee productivity (Sharlyn 2007).  Before the new leadership, the previous leadership team did not consider quality control and in the process the employees had limited skills not meeting their objectives. The result is high employee turnover because the management has not invested in the talents thus the services the bank provides are not appropriate to improve the performance of the business.

Generally, the bank is facing the biggest issue of culture of rigidity. The values of the bank include integrity and respect but it has serious issues with regard to its culture. It has built a culture that affects its reputation in the industry. For instance, the company has a culture of poor leadership, lack of employee engagement and poor change management strategies (Smith et al 2013). The bank is leading in the banking industry in New Zealand but it has cultural issues to handle. Changing the culture takes time because of the poor perception among the stakeholders. Culture is an ongoing process that eventually improves the performance of the business if the stakeholders perceive the culture positively.

These problems arise because of the inadequate application of poor management theory. The process of managing change is an important aspect that influences the future performance of the business. When implementing any change in an organization, it is necessary to do careful planning and engage the stakeholders in making decisions so that they can be part of the processes taking place. All people affected by the change must be consulted so that they can develop a positive attitude towards the change (Senge 2006). Failing to consult the parties the change affects will lead to resistance creating conflicts among the stakeholders. The responsibility of the top management is to facilitate the change and communicate the vision and mission objectives.

Stakeholders and their engagement

Poor stakeholder management is another issue causing the problems in the bank. The management of the bank is not considering the needs and expectations of the stakeholders and in the process there are conflicts leading to the issues (Pugh and Hickson 2007). There are primary and secondary stakeholders and they have different objectives. Failing to meet their objectives is the beginning of the problems in the business. Therefore, the management should put in place strategies that enhance the ability of the business to meet their needs and expectations.

The first stakeholders of the bank include the employees. Their objective is to work in an environment where they can develop their skills a way of developing their careers. They also expect effective compensation for the competent services they offer to the business. However, in this case the management of the bank has not set appropriate strategies and programs to meet the objectives of the employees (Pettinger 2006). In the process, the bank is experiencing high employee turnover and low productivity leading to a decline of the business.

The customers are also key stakeholders of the business. The objective of any business is to satisfy the customers by providing quality products and services. In the banking industry, competition is high and the banks are developing techniques and strategies that can improve the satisfaction of their customers (Mullins 2010). In this case study, the bank has not connected the stakeholders well to deliver quality products and services and in the process they feel that the management of the bank is not delivering quality. The best way to meet customer needs is to responding to their feedback either positive or negative and developing their services to meet their expectations.

The community form part of the secondary stakeholders. It is ethical for any business to give back to the society. One way of doing so is by engaging in community programs that improve the well-being of the people in the society. The firm should create employment opportunities to the community so that they earn income to improve their well-being and in the process they can develop a positive working relationship with the community (Martin 2006). Unfortunately, the bank has not effectively implemented this policy. The top management should engage the stakeholders in making decisions so that they can support the implementation of the activities as well as building a positive image of the business among the stakeholders.

The leadership of the bank has a duty to implement various policies and programs that can improve the success of the bank. The first thing the executive team should do is to make the bank to have a human face. It means that the management of the institution must develop strategies that make the stakeholders want to be associated with the operations of the company (Huczynski and Buchanan 2010). Creating a human face by the bank implies that it should create an atmosphere where the stakeholders can interact and meet their objectives. For instance, the leaders should develop training and development programs so as to improve employee skills with the objectives of attracting and retaining the workforce and improving their productivity. In the end the firm will improve its competitiveness.

Besides, the top management should consider creating a culture of stakeholder engagement. The bank is facing various issues because the leadership is not consulting the stakeholders when making important decisions and this affects their participation in the business processes (Hayes 2010). The leadership is trying to implement strategies that can improve the morale of the employees but the biggest problem is that the leadership is not consulting the stakeholders involved. In this way, they are not able to implement the strategies successfully. The new leadership must understand that consulting the employees is necessary as this helps to understand the needs of the interested parties. In the regard, it is possible to meet their objectives.

The bank can also diversify its sources of income with the aim of reducing its debts. The competition in the banking industry has grown meaning that the players must develop strategies they can raise income to sustain their operations. The new management of the industry is facing the issue of limited income because some branches are not generating sustainable income (Brooks 2008). Because of this, the senior leadership should restructure the company. In the process, some branches can be closed and venture into services like providing financial advice to its clients. This will help to stabilize the income for the company.

On the other hand, the administration of the bank should make sure they benchmark the services they offer to the customers with the competitors in the market. The top management implements strategies they dream of and think that they can improve the performance of the business. However, this is not the best strategy to implement considering the extent of competition in the banking industry and the changes of the customer needs (Bagshaw 2004). Benchmarking is important because it helps to identify the weak areas to improve and evaluating the effects of the areas to improve. As such, the management of the bank will implement policies that improve customer satisfaction and avoid executing techniques they dream of without considering the changes in the business environment.

It is the responsibility of the human resource manager to implement policies that motivate the employees. The reason why there is high employee turnover is because they are not satisfied with their jobs and working environment does not meet their needs and objectives. However, when implementing the strategies, it is significant to involve the stakeholders especially the employees because the motivation affects the productivity of the employees (Bhatnagar and Sharma 2004). In this regard, the techniques to use in motivating the employees include providing financial rewards as well as non financial rewards such as recognition and promotions. The most important thing is to compensate the employees adequately so that they can be satisfied with the working conditions. Doing this will help the business to meet employee objectives thus achieving the best results.

Developing an effective communication strategy is another strategy the business should use to collect feedback from the stakeholders. One way the management should evaluate the competitiveness of the business is reviewing the feedback from the customers. Their feedback can be positive or negative but they help to understand the areas the business should improve (Bamberger and Meshoulam 2000). Australian and New Zealand Banking Group Limited have long procedures the stakeholders should follow when providing feedback thus affecting the interests of the stakeholders to give their feedback. The leadership should consider eliminating unnecessary steps that hinder the stakeholders from providing their feedback hence the management do not understand the current position and the perception of the customers. In the end, they implement strategies which are not significant at the moment.

Eventually, the leadership of the bank should implement the changes according to change management theory. The process of implementing change is not easy. It requires careful planning and participation of all parties the change affects. The greatest failure of the previous leadership is poor change management process. Because of lack of stakeholder engagement, communication of the vision of the change is difficult and the parties do not understand the significance of the change. It shows that there is communication breakdown among the stakeholders making it difficult to implement any changes (Armstrong 2012). Therefore, it is necessary for the leadership of the bank to ensure participation of the stakeholders so as to avoid conflicts and resistance to change. Sharing a common vision is required in the success of any business because it helps to promote team working as well as meeting the objectives of the stakeholders. These strategies can improve the performance of the bank leading to success of the institution.


Organizational change management is the process of changing the tactics and systems an organization uses to perform its duties. The dynamics in the business environment requires all businesses to revise the systems they use with the aim of improving the success of the business. In the case study, one can identify various problems affecting the business. The problems include lack of stakeholder participation, low employee morale, low productivity and bureaucracy. These problems have affected the success of the business. However, the management can take initiatives such as rewarding employees, involving the stakeholders in making decisions, diversifying the sources of income and careful planning when implementing change. These methods will help to solve the problems facing the institution.


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