Organizational Behavior Factors Contributing to the Failure at Commonwealth Bank of Australia

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Table of Contents
Introduction......................................................................................................................................3
Organizational Behavior Factors that contributed to the failure.....................................................4
Post-Failure Responses....................................................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................6

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Introduction
The report is prepared to discuss about the issues or problems associated with the
management of human resources. The topic will shed light on the cause of organizational failure
as well as identify the individuals responsible for it, it’s probable impact, level of severity and
how can it be responded to for the facilitation of organizational factors contributing to the failure
experienced at the organization named Commonwealth Bank of Australia. The organizational
failure is experienced at Commonwealth Bank of Australia due to gross negligence, which has
made the organization neglect its duties, roles and responsibilities to conduct the
conscientiousness. Due to this, there have been fraud activities along with scandals related to the
laundering activities, which has been considered as a major issue that facilitated the failure at
organization (Armstrong and Taylor 2014). The money laundering case has been the major cause
of organizational failure and the report will illustrate about the various organizational behavior
factors that have contributed to the failure. Lastly, there will be few responses provided post
organizational failure to ensure successful business functioning again and preventing failures
within organization effectively too. The financial institution also made an agreement to pay $700
million to manage the civil rights and other law related proceedings carefully related o the anti-
money laundering and counter-terrorism financing laws and procedures (Bratton, J. and Gold
2017).
The bank staffs are considered as responsible for the fraud and money laundering
activities because they did not pay any heed to assess the risks of money laundering and
terrorism financing for the deposit machines while there was also lack of appropriate control
measures required to mitigate the risks and ensure smooth business functioning as a whole too.

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The concerns are serious as it may affect the business functioning and revenue generation ability,
furthermore lead to the business decline and loss faced in business as well. Few of the other
stakeholders include the CEO of the bank namely Ian Narev, who have taken the responsibility
on his own shoulder to respond to the scandal and ensure that the issue does not emerge again
(Alfes et al. 2013). The topic will also focus on how the gross negligence form the bank’s side
has ignored certain situations, due to which, the money laundering and fraud activities could
have been prevented.
Allan, D.M., 2018. Insiders versus outsiders—alternative paths to criminogenic knowledge.
Organised crime research in Australia 2018, p.35.
According to Allan (2018), there are multiple alternative paths to criminogenic
knowledge and by researching through various materials and resources, it could be found that
money laundering and fraud activities within the financial institutions are based on monetary
transactions mostly. Allan (2018) also stated about the Routine Activity Theory that includes the
various components such as the suitable target, crime, absence of capable guardian and
motivated offender. The psycho pathological elements are involved, which often creates negative
mindset among individuals and their preference for money rather than anything else (Allan
2018). Due to this, they are often found involved in criminal and fraud activities, which often
motivates others too and results in achieving their target quite easily with the absence of a good
leader. Based on the criminogenic knowledge, it should be important to appoint a responsible
leader who could guide the team members, make them knowledgeable about the vision and
mission of the organization, furthermore ensure successful business functioning with proper