Leadership Management in Commonwealth Bank: Analysis and Recommendations

Running head: LEADERSHIP MANAGEMENT
Leadership management
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Introduction
Leadership roles are important to be determined due to the reason that the more effective
will be the leadership styles in the workplace, the more efficient and fruitful will be the internal
management. However, it should be noted that different organizations are having different sets of
leadership approaches according to the respective business situations. Each of these leadership
styles is having the different levels of effectiveness (Nanjundeswaraswamy and Swamy, 2014).
In the case of Commonwealth bank, it is identified that the leadership approaches of them got
evolved in the recent time. It is identified that the current CEO of Commonwealth bank is having
different style of leadership compared to his former.
This essay will discuss about the positive and negative factors associated with the
leadership approaches followed in Commonwealth bank. On the basis of the identified factors, a
few recommended steps will also be discussed in this paper.
Analysis of the leadership approaches
It is identified that the current CEO of Commonwealth bank is selected internally and
thus he is having the extensive understanding about the organizational culture in the workplace.
According to the reports, the current CEO of Commonwealth bank is following majorly directive
approach of leadership. This is due to the reason that the first objective of the new CEO of the
Commonwealth bank was to quash the financial fraud related cases of the brand. In this case, he
was entitled to accomplish the given the objectives and less participation of the stakeholders is
detected. The stakeholder participation was mainly in the form of the upper level management is
noted rather than the entire group of the internal stakeholder (Saeed et al. 2014). Thus, it can be
concluded that directive style of leadership is being followed by the CEO of Commonwealth

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bank. According to the theory of directive type of leadership, it is less different with the
authoritative style of leadership. This is due to the fact that according to the authoritative style of
leadership, the subordinates are not having higher sets of participation in the decision making
process. In this case, the leaders are having the last call in the decision process. The major
advantage of following this leadership style is lower time consumption and on the other hand, the
major disadvantage is the possible resistances from the side of the subordinates (Yahaya and
Ebrahim 2016). In the case of the Commonwealth bank, directive style of leadership is
applicable to overcome the challenge being faced due to the fraud activities related cases.
On the other hand, it is also identified that in the current time, the employee factors are
also being considered in the workplace management. This is due to the reason that employees in
the Commonwealth bank are entitled for different benefits and welfare activities. In addition,
they also enjoy fair deal of decision making power in the workplace. This denotes to the fact that
employee oriented approach is also being followed in the Commonwealth bank. Under the new
CEO, Commonwealth bank is following employee orientation in their leadership style. This
approach can be compared with the transactional style of leadership due to the reason that
transactional leadership style refers to the involvement of the employee in the decision making
process along with provision of the leaders in motivating and guiding the employees in their job
role (Arnold et al. 2015. The presence of the extensive process of training and development for
the employees in the Commonwealth bank is referring to the fact that employee factors and
interests are being considered in the workplace and transactional style of leadership is being
followed.
However, it should be noted that situational style of leadership is the most applicable
style of leadership evident in the process of Commonwealth bank. This is due to the fact that