Business Perspectives: Organizational Culture, Structure, and Ethics

This study analyzes the organizational culture, structure, and ethical practices of Common Wealth Bank Australia and their impact on the social and political environment. It proposes a management framework and provides strategic recommendations for improvement.

Running head: BUSINESS PERSPECTIVES
BUSINESS PERSPECTIVES
Name of the student
Name of the university
Author note

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Table of contents
Introduction......................................................................................................................................3
Background of the company............................................................................................................3
Methodology:...................................................................................................................................3
Organizational vision and values.....................................................................................................4
Organizational theory implemented by the management of CBA...................................................5
Ethical practices in the organization:...............................................................................................6
Management functions and its impact on politics and social environment.....................................7
Conclusion:......................................................................................................................................9
Reference list and bibliography.....................................................................................................10

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Introduction
Managerial function has strong contribution in case of driving the organizational
productivity and the trade outcomes (Gilman, 2018). Depending on the emerging changes and
risk managing abilities of the organization, the organizational growth is being measured. The
purpose of this study is to propose a management framework, by critically analyzing the
organizational, culture, organizational structure and ethical practices and those impact in the
social and political environment. In order to conduct the research framework, organizational
practices of Common wealth bank Australia has been analyzed. Using case study analysis, the
entire research framework work will be introduced. By highlighting different strength and
weaknesses of the managerial operations of the company, strategic recommendations will be
provided so that the company can be able to easily overcome the situation.
Background of the company
The Commonwealth bank was established in the year 1911. The company is popular for
providing the financial services and managing the funds, investments and broking services. With
increasing business opportunities the common wealth bank has increased its revenue A$ 26.05
billion in the year 2017 (Commbank.com.au, 2019). The company has developed its 1100
branches with 51800 numbers of employees across the world.
Methodology:
In order to propose the research framework, secondary data analysis will be done. In
order to collect the statistical information regarding the company structure and its organizational
behavior, the secondary information will be collected from different case studied. In order to
understand the role of management and different operational activities, the secondary data will

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be collected from organizational websites or authentic journals. In order to conduct the research
framework, deductive research approach will be chosen. In order to analyze the collected
information qualitative data analysis method will be applied. In case of using the deductive
research approach, existing theories and models will be proposed by critically highlighting the
organizational structure. Inductive research approach will not be chosen as in this research, none
of new model or theory will be discussed (Yin, 2017). By continuing this it can be said that using
the positivism research philosophy, the research will be developed in scientific manner. On the
other hand,. It is also true that based on the positivism research philosophy, it will be easier for
understanding the research depth and issues and those impact on the organizational growth.
Based on the descriptive research design, the entire research information will be discussed in
descriptive manner so that the clear guidance regarding the Common wealth Bank organizational
policies and structure can be understood (Webb et al., 2017).
Organizational vision and values
Analyzing the vision of common wealth bank, it has been identified that the company
aims to provide superior quality of service so that the stable economic growth can be maintained.
By continuing this, it can be said that the company also focuses on creating strong values so that
the capabilities of the employees can be increased through the satisfaction of the stakeholders.
Examining the values of the company, it has been identified that commonwealth bank aims to
provide the satisfactory experiences to the individuals so that their loyalty towards the
organization can be maintained (Hazen et al., 2016). By continuing this, it can be said that by
ensuring the effective service the company ensures the strong organizational culture to the
individuals who work here. In order to achieve the positive financial growth, Common wealth
bank has focused improving its organizational culture so that positive environment can be

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introduced in the workplace. Eight metaphors have been introduced by Gareth Morgan's, for
highlighting the organizational managerial images. Examining the values and vision of the
company it can be said that the vision of the company has been developed by following the
cultural systems metaphor. On the other hand, examining the values of Common wealth bank, it
can be said that the company follows Brains metaphor.
Organizational theory implemented by the management of CBA
In case of analyzing the individuals’ behavior of the financial planner in Commonwealth
bank, the struggling behavior of the managers towards satisfying the interest and goals of the
clients have been shown. Based on the agency and business relations, agent principles as well as
agent relationship with the customers have been developed (Gilman, 2018). By using the
effective concept of agency theory, the two party relationship practices with one party has been
highlighted. The specific duty of a loyal agent is to identify the legal perspectives of the
organizations so that the standard services can be provided to the individuals. In case of
Common Wealth Bank, the Agency theory is being followed by the management for
understanding the behavior of individuals. In case of CBA, by understanding the perspectives of
the stakeholders the financial planner develops the services so that by maximizing the rate of
profitability, expectations of the stakeholders can be satisfied.
However, based on the organizational practices, it has been identified that the financial
planner aims to introduce the continuous growth by improving its service facilities (Quirós et al.,
2016). Based on the managerial operations, it can be said that the company mainly follows
modernization theory. As per this theory, the employees are being divided into two segments
such as worker and managers. Commonwealth bank mainly focus on bringing the transition in
the traditional society so that continuous growth can be pushed. However, instead of focusing in

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the development, the company aims to improve the society engagement towards the organization
so that it can spread its eservice worldwide. However, it cannot be denied that highlighting the
economic exchange, technological improvements and positive economic growth, the
modernization theory has been successfully implemented in the organization, which has ensured
its rapid growth (Gilman, 2018). By continuing this, it cannot be denied that by contributing in
introducing service advancements, the Common Wealth Bank has not only driven the positive
financial growth, but also it has established its strong customer base.
Ethical practices in the organization:
Ethical dilemma as well as financial planning scandals have brought various negative
situations in the organization. Researching on the company report, it has been identified that the
Common Wealth bank has strong impact in the individuals’ behavior towards the company due
to its repeated ethical scandals. It cannot be denied that in most of the cases, the financial planner
has encouraged the unethical behavior (Willcocks & Reynolds, 2015). Not only the customers
have got victimized in the unethical practices but also employees in the commonwealth bank
have faced various unethical behavior due to the improper incentive structure in the company.
By continuing this, the improper situations in the workplace, it has been identified that the
management of Common wealth bank has strong contribution towards creating threating and
discriminate situation in the workplace, which have played an important role driving
dissatisfaction among the employees. On the other hand, Lezdey (2018) opined that it has also
been identified that in order to generate excess sales, pressure on the employees has influenced
the employee turnover rate in this organization. After this incident, minimizing the impact of this
situation, the financial managers have introduced various risk management policies, however,
none of the policies have been properly implemented.

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Management functions and its impact on politics and social environment
The financial planning process has become highly popular among the Australian
customers, which has increased the popularity of Common Wealth Bank (Commbank.com.au).
Analyzing the organizational structure of the company it has been identified that common
Wealth Bank follows the strong organizational structure (Campbell, 2015). Following the
structural chart of the company it has been identified that managers play an active role in case of
satisfying the financial needs of individuals. By continuing this, it can be said that based on the
analysis, in order to maintan the premium financial services, the management has introduced an
effective opportunity, in which individuals get the chance for customizing the services based on
complex financial needs (Thinkspace.csu.edu.au, 2019). In order to manage the internal risks, the
Common Wealth Bank has introduced changing organizational culture. Due to emerging
organizational challenges, the CEO of common wealth bank has decided to manage the bringing
the changes in risk management so that the emerging money laundering scandals can be solved
(Commbank.com.au, 2019).
The common wealth bank is committed towards creating the long term sustainability
value by providing financial well-being to the community and the customers. Understanding the
strength of corporate governance, it can be said that the company needs to focus on improving its
current situation so that the better customer risk outcomes can be achieved (Commbank.com.au,
2019). Based on the regulatory practices introduced in the organization, it will be better for the
company to involving the stakeholders’ expectations. Analyzing the operational trends of the
management, it has been identified that the managers prefer to perform in the dynamics business
environment. In the year 2018, the key management governance has been introduced by the
company. In the arrangements, third edition of ASX corporate governance Council has

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introduced the corporate governance principles on the behalf of Common weal bank
(Commbank.com.au, 2019). By sharping the more accountable culture, the bank has focused on
driving the decision making process of individuals. Based on the accountable approach towards
the organizational growth, it can help to develop the organization for introducing strong political
benefits. In case of contributing towards the community, it has focused on ensuring the ethical
responsibility towards the customers. Analyzing the common wealth banking policies, it has
been identified that code of conduct has been developed depending on the problem solving
abilities of the organization. By ensuring the strong ethical principles the company has focused
on satisfying the value expectations.
Examining the management functions of the company, it has been identified that the
managers play an important role for monitoring and applying control on the risk indicators
(Commbank.co.id, 2019). On the other hand, avoiding the corruption risks, the management has
focused on ensuring the transparency with the customers so that the emerging challenges in the
workplace can be avoided. It cannot be denied that internal conflict has become one of the major
concerns for the company to maintain its strong customer base. In case of dealing with the
situation the company has focused on improving the designing the conflicts interest policy for
identifying the actual reason behind the conflicts can be identified. By outlining the
administrative and organizational arrangements, managers have introduced group security
trading policies for limiting the financial risk (Commbank.com.au, 2019). The common wealth
bank is committed towards creating the long term sustainability value by providing financial
well-being to the community and the customers. Understanding the strength of corporate
governance, it can be said that the company needs to focus on improving its current situation so
that the better customer risk outcomes can be achieved (Commbank.com.au, 2019). Based on the

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regulatory practices introduced in the organization, it will be better for the company to involving
the stakeholders’ expectations. It is true that based on the analysis, it can be said that with the
proper initiatives of the management, strong organizational culture can be developed in the
workplace, which can play an important role for bringing the social improvement.
Conclusion:
In this study, it can be concluded that based on the analysis, it has been identified that
Common Wealth bank has developed its effective image in the financial service sector in
Australia Due to its strong organizational structure and effective governance. Analyzing the
internal environment of the organization, it has been identified that due to repeated ethical
scandals and the organizational culture of the company is now in the complicated situation.
Increasing numbers of customers complains and employees’ dissatisfaction have brought
negative impact on the organizational image. However, in order to deal with the situation various
management initiatives have been introduced by the company. Understanding the needs of
stakeholders and values of the employees, the company should focus on improving its
management practices. By introducing the effective leadership practices. Not only the
productivity will increase but also it can play an important role for increasing employee
engagement towards achieving the organizational goals.

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Reference list and bibliography
Businessinsider.com.au (2019). Retrieved from: https://www.businessinsider.com.au/why-
changing-culture-at-the-commonwealth-bank-is-the-new-ceos-top-priority-2018-1
[Accessed on 30th March, 2019]
Campbell, K. (2016). Ethical challenges. Research Ethics in Criminology: Dilemmas, Issues and
Solutions, 150.
Commbank.co.id (2019). Retrieved from:
https://www.commbank.co.id/upublic/mod_home/default_content.aspx?code=pr_strorg
[Accessed on 30th March, 2019]
Commbank.com.au (2019). Retrieved from:
https://www.commbank.com.au/about-us/shareholders/corporate-profile/corporate-
governance.html [Accessed on 30th March, 2019]
Edwards, D. (2018). Michele Robinson, Assessment of Debt Restructuring Operations in
Commonwealth Small States.
Gilman, N. (2018). Modernization Theory Never Dies. History of Political Economy, 50(S1),
133-151.
Hazen, B. T., Skipper, J. B., Ezell, J. D., & Boone, C. A. (2016). Big Data and predictive
analytics for supply chain sustainability: A theory-driven research agenda. Computers &
Industrial Engineering, 101, 592-598.
Lezdey, M. J. (2018). The Commonwealth of Massachusetts.

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Quirós, C. C., McCombs, G., Tolle, S. L., & Arndt, A. (2016). The association between dental
hygienists with visible tattoos and professionalism in the commonwealth of Virginia. Int
J Evid Based Pract Dent Hygienist, 2, 129-34.
Thinkspace.csu.edu.au (2019). Retrieved from:
http://thinkspace.csu.edu.au/bamr/2018/03/06/ethics-leadership-and-decision-making-a-
case-study-on-cba/ [Accessed on 30th March, 2019]
Webb, T. R., Erdmann, J., Stirrups, K. E., Stitziel, N. O., Masca, N. G., Jansen, H., ... & Eicher,
J. D. (2017). Systematic evaluation of pleiotropy identifies 6 further loci associated with
coronary artery disease. Journal of the American College of Cardiology, 69(7), 823-836.
Willcocks, L., & Reynolds, P. (2015). The Commonwealth Bank of Australia–strategizing from
outsourcing to the cloud part 1: perennial challenges amidst turbulent
technology. Journal of Information Technology Teaching Cases, 4(2), 86-98.
Yin, R. K. (2017). Case study research and applications: Design and methods. Sage
publications.