HR Issues in Australian Banking System

Running Head: HR Issues in Australian Banking System
Australian Banks and HRM Issues for a New Manager
Report
System04104
5/9/2019

HR Issues in Australian Banking System
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Table of Contents
Introduction................................................................................................................................2
History and Overview of Banking System in Australia.............................................................2
The features of Australian Banking System...............................................................................3
Current Issues and Challenges in Australian Banking Sector....................................................4
Respond of Federal Governments and Federal opposition on the Recommendation of
Banking Royal Commission...................................................................................................5
Respond from the banking Industry to Royal Commission...................................................5
Current Issues in Australian Banking sectors............................................................................5
HRM Issues in Banking Sector and Challenges for a new Manager.........................................6
Change Management Issues...................................................................................................6
Leadership issues....................................................................................................................6
Engagement of Employees.....................................................................................................7
Motivation and Encouragement of Employees......................................................................7
Appraisal and Reward System................................................................................................7
Issues related to performance management............................................................................7
Role of Royal Commission Recommendations to improve the HR issues in Banking
Organisations..........................................................................................................................7
Recommendations......................................................................................................................8
Conclusion..................................................................................................................................9
References................................................................................................................................10

HR Issues in Australian Banking System
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Introduction
The Australian Banking system is one of the most reliable and transparent industries.
The Australian banking system consist local banks, foreign banks, overseas banks, and some
locally incorporates subsidiaries bank of overseas banks. However, the current Australian
banking system is suffering from various challenges and issues related to unethical practices,
fraud, misconduct in organisation, corruption etc. (SBS News, 2019). These current issues
and challenges in Australian banking sector makes difficult for a new manager who wants to
join the banking industry in Australia from other countries. Apart from this, various human
resource issues such as poor working environment, cultural diversity, inequality in
remuneration, low job participation, and unethical behaviour of staffs are some of the issues
which causes problems for a new foreign manager in Australian. This report also includes
suggestions of Banking Royal Commission (also called Hayne report) and its investigation on
the some of the major banking organisations of Australia. This report helps to understand
different challenges and HR issues that a new manager will have to face in Australian
banking sectors. Further, this report provides some important recommendations based on the
analysis of these problems that how a new manager can overcome these issues and challenges
in Australian banking organisations.
History and Overview of Banking System in Australia
The Australian banking history is almost 200 years old. The first bank of Australia
was opened in 1817 in Sydney, named New South Wales Bank. After this, a new bank was
introduced by the British government in London, called Bank of Australasia. The name of
this bank was further changed and it was renamed as ANZ bank. However, currently there are
many small and large banking organisations operating their business in Australian banking
industry (Reserve Bank of Australia, 2018). Even some of the small banks merged with the
big four banks of Australia. These big four banks of Australia are as follow:
Name of Bank Customer size Bloomberg Rating
1. Commonwealth Bank 17 million 1
2. Westpac Banking Corporation 13 million 4
3. National Australia Bank 9 million 5
4. Australia and New Zealand Bank Group (ANZ) 8 million 7

HR Issues in Australian Banking System
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(Source: Reserve Bank of Australia, 2018)
These four banks almost cover entire banking system of Australia and also affect the
business of other small banks such as Adelaide Bank, Bank of Melbourne, and Bank of
Queensland etc. There is a tough competition among Australian banks to acquire market
share and increasing in collection of investment funds of people. However, the concept of
retail banking in Australia is still unclear. However, there are many foreign banks are
entering in the Australian Banking system and the government also liberalise the banking
rules for it.
(Source: APRA, 2018)
The Australian government is also focusing on privatisation of banks and giving
permission to other overseas and international bank to open their branch in Australia
(Reserve Bank of Australia, 2018). However, the Reserve Bank of Australia (RBA) regulates
the banking operation and APRA (The Australian Prudential Regulation Authority)
monitoring and regulating the investment funds of people in different banks. It is also
responsible for monitoring issues related to finance and insurance companies, private health
insurance, funds of Australian depositors and investors etc. APRA is responsible for
managing funds of 3.7 trillion of various financial organisation and people of Australia who
deposited their money in banks (APRA, 2019).
The features of Australian Banking System
The major features of Australian banking sectors are as follow: