International Human Resource Management

This report outlines the credentials, behind the curtain incidents and prevalent issues of Human Resource relations and their environment in Banking Sectors of Australia. To talk intently, it hits upon the primary concerns and adaptation of working ethics by newly recruited Bank Managers from other countries into Australian Banks. This report is basically a summary of the present scenario, hurdles, issues which can improve upon the quality of Australian Bank’s work culture and strategic HR Policies.

International Human Resource Management 0
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International Human Resource Management 1
Executive Summary
This report outlines the credentials, behind the curtain incidents and prevalent issues of
Human Resource relations and their environment in Banking Sectors of Australia. To talk
intently, it hits upon the primary concerns and adaptation of working ethics by newly
recruited Bank Managers from other countries into Australian Banks. This report is basically
a summary of the present scenario, hurdles, issues which can improve upon the quality of
Australian Bank’s work culture and strategic HR Policies. This report consists of crucial HR
Framework Information for the CEO of Bank. This is not to hit upon the cultural and
relocation matters, but the working environment and HR policies for working managers. This
work is for a new tomorrow and a better world of Australian Banks by one of their managers.
Contents

International Human Resource Management 2
Introduction................................................................................................................................2
Outlining Employment Relations and HR Management Issues.................................................3
Financial Services Royal Commission.......................................................................................5
Political Agendas and Consequential Situations........................................................................7
Conclusion..................................................................................................................................9
References................................................................................................................................11

International Human Resource Management 3
Introduction
During the last two decades
academicians and practitioners of
international management
have paid increasing attention to the
impact of globalization on the
management of
human resources across national
boundaries. International businesses
have increasingly
turned their attention to issues such as
expatriate management (employees
being
transferred by organizations to work
outside their country of
origin/permanent
residence), managing in other cultures
and managing diversity in multicultural
domestic
workforces
During the last two decades
academicians and practitioners of
international management
have paid increasing attention to the
impact of globalization on the
management of

International Human Resource Management 4
human resources across national
boundaries. International businesses
have increasingly
turned their attention to issues such as
expatriate management (employees
being
transferred by organizations to work
outside their country of
origin/permanent
residence), managing in other cultures
and managing diversity in multicultural
domestic
workforces
During the last two decades
academicians and practitioners of
international management
have paid increasing attention to the
impact of globalization on the
management of
human resources across national
boundaries. International businesses
have increasingly
turned their attention to issues such as
expatriate management (employees
being

International Human Resource Management 5
transferred by organizations to work
outside their country of
origin/permanent
residence), managing in other cultures
and managing diversity in multicultural
domestic
workforces
When one talks about the Banking Sector of Global banks, it boils down tumultuous
experiences. Be it Forex rigging debacles and Corporate making news or raft of protocols and
stringent regulations, the major challenges for HR, specifically newly recruited Managers
from offshore or outside countries are plenty to ponder. Apart from cultural and economic
challenges, the major issues are in political scenarios and Human Resource policies. The
Crystal Ball of practitioners, academicians and researchers show news of “HR Issues in
Global Managers of Banks “happenings since way back what one can remember 2015 to the
current state or much before that. HR Challenges in such scenarios can be due to Restorations
and Regulations along with other cultural adaptation reasons. These impact people’s
performances and management activities inside the bank. Seismic HR Policy changes are
driven more by political changes of environment in the country, thus making the managers
and working environment unstable. But the plight and dwindling condition of newly recruited
managers should be measured in such a political environment. This case discusses the
Employee Relationship Management System of Banking Sector of Australia and the
scintillating and reverberating impact of Report formulated by the Royal commission on
overall International HR Policies and Strategies for Global Managers.

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Outlining Employment Relations and HR Management Issues
The Banking belt of Australia consists of four major constituent members, Bank of
Australia, Australia and New Zealand Banking Group, Commonwealth Bank of Australia and
National Australia Bank. This is further extended to other Banks spanning through the
Australian territories. The other important junctions are financial hubs which formulate
policies, rules and structural designs for these banks such as Building Societies, Credit Union
and so on (Park & Rainey, 2012). Further, the most pivotal backbone is the central point that
is the Reserve Bank of Australia. As per 2008, the guarantee deposit is approximately
$250,000 for every customer in case of bank failures. The HR Policies of these banks do
affect a lot of changes in personal, social, economic and political levels, though it is vice
versa also.
The Business environment is undergoing a lot of maturation effect with many HR
challenges cropping up under the carpet. HR Strategies and policies under evolution with
transforming the overall business landscape for years. Human resource adds real value to this
ever-changing, dynamic, challenging business environment and its changing framework
(Harvey, Kiessling & Moeller, 2011). The Natural and Economic calamities, for example, the
recession also impacts this all to a greater extent. But, companies these days are more
progressive in their missions and goals and also with their target to retain people and grow
the knowledge web. This can be done in many fruitful ways, like focusing on training,
engagement, and skill-based workshops and events for their staff, especially newly recruited
managers coming from other parts of the globe with best integrated Information Technology
training programs and other staff attracting and retaining programs (Yawson, 2011).
Organizations can only grow if they look beyond political agendas and small issues and retain
their staff by experimental measures which can improve human quality life and their survival
(Noel-Lemaitre & Le Loarne-Lemaire, 2012).

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Eminent people in this field like Coach, Employee advocates, Management,
Researchers, Business analysts have forecasted that with evolving and changing business
Climate, the HR Policies, the role of their professionals, working ethics and the overall
environment also undergoes see-saw change. Business is directly proportional function to HR
Strategies with economics, social attributes and political levels being the core change
inflicting variables in it. The key policies and integral decisions and also incidents which
happen to the organization do influence Human Resource and can stand as an excruciatingly
difficult challenge to solve (Zhu & Warner, 2019). This is what happened in the case of the
Royal commission as given below. Human Resource Challenges need definition, research,
and good solutions with changing time. It has an integral role in organizational strategic
Goals or Corporate Vision. The ever-changing economy, the local and global incidents or
advancements has made an impact on a wide range of HR issues. Still by good change
management, leadership and other competitive skill advancement, HR effectiveness
measuring events, retaining policies and strategies to retain workforce number, helping
people to work at flexible hours, giving a chance to them to improve upon their skill sets and
expertise can bring a big change in the system (Kang, Rhee, Jun & Oh, 2016). This is
specifically true in the case of managers and staff who are relocated to a new system and are
dwindling with imbalance due to economic, social and cultural difference already, and along
with this all, the changing climate of business, political events can give a bad shape to their
overall situations which are well elucidated in the next section (Wallo, 2017).
Financial Services Royal Commission
The Royal Commission and his team along with some of the bank customers have put
the Australian Banking sectors under the strict vigilance on microscopic reverts on
transactions. Australian customers had a setback and there were no responses of bank
transaction failures and the number of occurrences has been often. This abominable loss has

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hurt the sentiments and pockets of Australian customers by making them more cautious, well
aware and vigilant with good feedback on every bank transaction. Australian banks also feel
sorry and are leaving no stone unturned for fast recovery and learning from past lessons of
failures.
Financial Services Royal Commission’s report consists of reformatory measures and
stringent actions on banks for their past failures and number of court cases to their case
history. This required in-depth analysis and retrospections with around 76 recommendations
to improve and change banking and financial strategies in the country. This is applicable to
financial products and services with their terms and conditions, offerings, HR salary
guidelines, penalty cases for defaulters, new error cases for abnormal activities with their
solution and new customer rights ("4 Feb 19 - Royal Commission Final Report Media
Conference - Australian Banking Association", 2019). So this report and their mission are on
their way already to fix this failure situation in the Banking Sector. Special Team has been
allocated for looking after these goals already. Basically, this also serves as a prototype or
direction for every Industry and Bank to win back Australian People's trust and support along
with credit value in the Market. This is also to improve upon Customer- Relationship
Management Life Cycle Model for Australian Banks (Yu, Baird & Tung, 2018). Many views
and feedbacks are making people apprehensive, but actions are better than words. Change can
only be seen what is being done presently to solve this problem of Australian Banks.
Well, as for the Managers and Staff there, let us see the situation in a different
limelight. Apart from the cultural shift, the political changes and the target deadlines as
promised by the Royal Commission will change a lot for old staff and new Managers coming
from outside (Jennett, 2019).

International Human Resource Management 9
1. No Staff has been charged for specific criminal proceedings. Though the commission
gave referrals to the particular authority and their specific actions on the matter than
to create a facade.
2. The royal commission also pointed out that the Staff has been treating the people very
shabbily and this behavior with their action will need to be changed immensely. For
this, they also forced the staff to go for Self retrospection to bring in the change in
their behavior (Cavanagh, McNeil & Bartram, 2013).
3. Be The CEO's or the Managers and Staff, the Banks have learned their tough lessons
and has pledged to improve upon the whole system. For this, they have to implement
all the comprehensive, stringent but thoughtful considerations of the 76
recommendations framed by the Royal Commission and their Team.
Some of the key Recommendations and expectation of Managers related to these:
The Financial Sectors were advised to keep the recommendation relaxed due to mortgage
broking, insurance, and Schemes involving Financial Planning. Mortgage brokers should put
their clients’ best interest as a prime goal just like the financial group of Planners. The Point
of goods sale by Car dealers and other Financial Commodities were subjected to Lending
schemes which can be trusted. The Continuous feed charges by Financial Planners must seek
customers consent and advice yearly at least. The Farmers must benefit from National farm-
debt-mediation scheme and if need be the appointment of receivers for this should be done at
last. Those consumers who have suffered at the hands of banks and their managers must get
Compensation Schemes funded by the Industry or Banks. Some Institutions can face legal
charged while other’s cases will be forwarded to ASIC for scrutiny and Investigation
(Weerasinghe & Batagoda, 2017). Managers must be well acquainted with all these by their
superiors, Training and proper HR Strategies and guidelines must be framed so that these

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Key recommendations can be a success with New Managers coming to a new system and
also educate the old staff as well (Murthy & Guthrie, 2012).
Political Agendas and Consequential Situations
The most eminent enabled Commissioner Kenneth Hayne’s Royal Commission’s
outcomes served as an important manifesto for the banking and other areas of business and
Australia on the whole. His judgment and white background cannot be questioned on
partially or clarity. But still, there is always another side of the coin. Firstly, with time such
policies and their manifestoes go to ashes, whether it the banking, insurance or industries, the
reasons can be changed country policies, filling up deep under the table pockets of officials
and Managers or other powerful Interests, as the past is also an example as in the case of
Wayne Swan’s super profits taxes (Colbert, 2014). What is important for all the Managers
and the entire bank is to understand the pressing urgency to implement these
recommendations. The most pivotal question being, what weight and consistency these 76
recommendations will have if the country undergoes political change with changes in
government or change of staff and newly recruited Managers from other countries. Really,
trust is a currency which is short in demand and supply, especially if the Country is ruled by
politicians and the countries, eminent banks are governed by their CEO’s following the
country’s political rules (Patrick et al., 2016). If the corporate mission and climate changes
with countries’ political agendas than the managers whose roles are defined by these people
higher up the ladder and also political factors influence HR strategies directly and indirectly
both. Thereby, the Manager whether they are old staff or newly recruited needs to follow the
company guidelines and has to be very Strong and Smart to handle such environmental issues
to improve upon this situation and abide by the 76 recommendations by royal commission
religiously (McDermott, 2017).

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For managers of the company and banking sectors, the situation is dicey. In principle,
executing these 76 recommendations is one thing, but the political divide of any country and
their own viewpoints, things are not easy. Now the people are in a Lobby or Group with
many facets of discussion, viewpoints and varying degree of consent. With lawbreakers,
come lawmakers also, especially the powerhouses with political backgrounds.
The Commissions dissection of Financial and Banking Sectors, Insurance are
voluminous 500 pages which are too lengthy to comprehend and execute. The overhaul has
not been fruitful because it had hit hard on major financier’s business goals resulting into
lobbying and further political facades thus making Life and working ethics horrible for newly
recruited managers who are perplexed by changing and compels rules on the table and behind
the curtains. With insinuation on working for the best interest of the public for Financial
Giants, pinpoints that they have been operating with misleading service goals. So the stress is
more on HR Managers and strategy makers to bridge the gaps in communication and
documentation (Thacker, 2012). The Commission’s Report strongly objects to the
malpractices of secret commissions, under the table payments and product pushing thereby
kicking on bread and butter of staff and other employees. If the financial sectors, mortgage
brokers and insurance get into wicked lobbying, nor this will put pressure on New Managers
with the bad working environment and with non-uniformly distributed work pressure, but
also make them demotivated and leave the organization or themselves resort to illegal,
unfaithful and dishonest measures of work and life ethics (Verrender, 2019).
Conclusion
The Royal Commission made history in the story of Australian bank by bringing
into the limelight all the wrong incidents, malpractices, and great loss by foraying into deep
research about financial sectors, banks, insurance, mortgage about their customer
relationship, financial transactions and increasing dissatisfaction of general Australian public.

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The complete overhaul ended to 76 good recommendations to improve upon the banking
system. Also with it came the movements of people, from Financial World, whose personal
interest and pockets were hit badly by this. Secondly, the political climate of the country also
influenced this as power makers are often rule-twisters or rule-breakers. Some termed it as
inadequate law mere theoretical enforcement. Another point of view are absent which most of
the people forget at such times. Firstly, the impact of this recommendation on the general
public’s quality of life, their work being pushed at what level and the amount of money and
time they have to spend on executing such recommendations by commissions and
government policies. The Impact on Managers, especially the newly recruited ones is four
folds. The changing rules and policies without awareness to deal with customers, issues and
daily occurrences make their life hell in a working environment. Also, when one commits an
error, if the person is not punished as per recommendations by the Royal commission where
they did not take any name, such people can again commit bigger follies putting the gun on
the other's shoulders especially the new entrant in the system. Thirdly, the training and
workshops, awareness programs, referrals, voting, promotion, incremental scales will also be
inflicted with political changes, under the table transactions and many such things as a result
of lobbying due to the execution of these rules without guards internationally.

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References
4 Feb 19 - Royal Commission Final Report Media Conference - Australian Banking
Association. (2019). Retrieved from https://www.ausbanking.org.au/4-feb-19-royal-
commission-final-report-media-conference/
Cavanagh, J., McNeil, N., & Bartram, T. (2013). The Australian Men's Sheds movement:
human resource management in a voluntary organisation. Asia Pacific Journal Of
Human Resources, 51(3), 292-306.
Colbert, J. (2014). Internal Control Issues: Shredding Paychecks, Bank Reconciliation
Problems, And Human Resource Matters. Journal Of Business Case Studies
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Harvey, M., Kiessling, T., & Moeller, M. (2011). Globalization and the inward flow of
immigrants: Issues associated with the inpatriation of global managers. Human Resource
Development Quarterly, 22(2), 177-194.
Jennett, G. (2019). 'Legislative mathematics that defies calculation': The difficulty of acting
on Hayne's report. Retrieved from https://www.abc.net.au/news/2019-02-05/kenneth-
hayne-royal-commission-report-labor-versus-liberals/10779476
Kang, D., Rhee, J., Jun, I., & Oh, S. (2016). Employee Motivations, Organisational
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McDermott, C. (2017). Policy Uncertainty from a Central Bank Perspective. Australian
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Murthy, V., & Guthrie, J. (2012). Management control of work‐life balance. A narrative
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Noel-Lemaitre, C., & Le Loarne-Lemaire, S. (2012). Human Resource Management and
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Thacker, R. (2012). Introduction to special issue on Human Resource Management
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