Impact of Royal Commission on Employee Motivation and Performance in Commonwealth Bank of Australia

Running head: ORGANISATIONAL BEHAVIOR
ORGANISATIONAL BEHAVIOR
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ORGANISATIONAL BEHAVIOR1
Table of Contents
1.0 Introduction................................................................................................................................2
2.0 Overview of Commonwealth Bank of Australia (CBA)...........................................................2
3.0 Findings of Royal Commission.................................................................................................3
4.0 Impact of the findings of Royal Commission on CBA..............................................................4
4.1 Impact of the Royal Commission’s findings on the employee psychological contract.........4
4.2 Impact of the Royal Commission’s findings on employee....................................................5
5.0 Relationship between employee motivation and performance..................................................6
6.0 Factors affecting employee motivation in the banking industry...............................................7
7.0 Recommendations......................................................................................................................7
8.0 Conclusion.................................................................................................................................8
9.0 References..................................................................................................................................9

ORGANISATIONAL BEHAVIOR2
1.0 Introduction
As opined by Mone and London (2018), organizational behavior refers to the collective
behavior displayed by the individuals or for that matter the groups within the cauldron of the
different business corporations. Audenaert et al. (2019) are of the viewpoint that the entity of
organizational behavior also refers to the study or understanding of the human behavior within
the organizational setting or for that matter the interface which exists between the workers and
the entire organization itself. More importantly, the construct of organizational behavior greatly
influences the manner in which work is being performed by the different workers within the
organizational setting and thereby their performance (Hitka & Balážová, 2015). It is because of
this relationship of organizational behavior with employee or organizational productivity and
thereby its profitability that the business corporations are taking into effective consideration the
same. Furthermore, it had been observed that the construct of organizational behavior also
influences the employee motivation, psychological contract and other aspects and thus it
becomes all the more important for the business corporations to focus on the aspect of
organizational behavior. This report intends to undertake an analysis of the impact of the
findings of the Royal Commission on the entities of employee motivation, psychological contract
and others within the particular context of Commonwealth Bank of Australia (CBA).
2.0 Overview of Commonwealth Bank of Australia (CBA)
CBA, founded in 1911, is among the four largest banks of the nation of Australia
alongside ANZ, Westpac and National Australia Bank and also the largest bank of the Southern
Hemisphere (Commbank.com.au, 2019). The concerned bank offers different kind of services to
its customers like loan, saving, retail loan, business loan, insurance and others. More

ORGANISATIONAL BEHAVIOR3
importantly, it had been seen that the bank had presently expanded its operations in the different
nations of the world like UK, China, New Zealand, USA and others (Commbank.com.au, 2019).
The bank as of 2017 had an employee capacity of more than 52,000 and a gross revenue of
A$26.005 billion (Abc.net.au, 2019). However, this unprecedented growth of the concerned bank
was halted by the findings of the “Royal Commission into Misconduct in the Banking,
Superannuation and Financial Services Industry” (2017) which highlighted the unethical banking
practices followed by CBA along with the other major banks of the concerned nation (Remeikis,
2019).
3.0 Findings of Royal Commission
The results of the Royal Banking Commission clearly revealed the fact that the majority
of the banks of the nation of Australia were not only misleading the customers but at the same
time charging unjustified exorbitant amount of money for the services which were offered to
them (Hutchens, 2019). In addition to this, the results also revealed the fact that majority of the
banks offered loans, insurances and others to customers without proper paperwork, without
verifying the background and the financial details of the customers and others (Stuff.co.nz,
2019). Furthermore, the findings of the Commission also revealed the fact that the major banks
like CBA, ANZ, Westpac and others misreported their revenue so as to evade taxes. For
instance, it was found that the cumulative wealth held by the top four banks of Australia was
$4.6 trillion which as a matter of fact is three times the size of the national economy of Australia
$1.8 trillion (Wright, 2019). The Commission attributed this behavior displayed by the major
banks of Australia to the greed culture which was followed by them and also their desire to
enhance their profitability at any cost (Abc.net.au, 2019).