Impact of Organizational Structure on Management Innovation and Performance

Running head: ORGANIZATIONAL STRUCTURE
The Impact of Organizational Structure on Management Innovation and Performance
[Commonwealth Bank of Australia]
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ORGANIZATIONAL STRUCTURE1
Executive summary
Innovation practices have become an essential part of modern organizations. It provides
them opportunities to enhance their competency level and produce better performance
than the current. This study also serves a similar purpose as it describes the
effectiveness of the organizational structure of the Commonwealth Bank of Australia
(CBA) concerning its innovating capability and its overall performance. As identified in
the study, CBA practices a Vertically Integrated Structure. The structure helps CBA to
form a network of people who communicate faster and respond quickly to a situation
with appropriate decisions. The banking app offered by CBA tells the fact. It is being
recognized as the best banking app in Australia. CBA is also good at identifying where
they still need to work. As the study identifies, CBA needs to show an utmost
attachment with AI-Driven Predictive Banking. This can be helpful for CBA in its intent
to serve its customers with more relevant products and services.

ORGANIZATIONAL STRUCTURE2
Table of Contents
Brief introduction and background information..................................................................3
Section 1: Overview of the structure and strategies, and possible reasons.....................3
Section 2: Impact on management innovation..................................................................5
Section 3: Impact on overall business performance.........................................................8
Recommendation on how to improve innovation and performance..................................9
Conclusion.......................................................................................................................10
References.......................................................................................................................11

ORGANIZATIONAL STRUCTURE3
Brief introduction and background information
The Commonwealth Bank of Australia (CBA) is a multinational corporation
having its business presence across New Zealand, the United States, the United
Kingdom and Asia. It offers services in banking and financial areas. Founded by the
Australian government in 1911 it became fully privatized in 1996. It is one of the big four
banks in Australia. It first appeared in the Australian Stock Exchange in 1991
(Commbank.com.au 2019).
Studies suggest that a company’s capability to innovate and its overall
performance depend much on its organizational structure. The organizational structure
does influence a company in numerous ways; however, the most evident impact can be
observed along with its organizational communication practices and so, its decision-
making efficiency (Adner 2017). When decision-making is faster changes will take place
in a shorter time. Resource allocation will be quicker. Moreover, the problem-solving
strategy could be identified in a few time and implemented as well (Albers,
Wohlgezogen and Zajac 2016).
This study also serves a similar purpose. The study assesses the efficiency of
the organizational structure practiced at CBA. The findings of the assessment will be
used in recommending improvement solutions to CBA.
Section 1: Overview of the structure and strategies, and possible reasons
CBA offers banking and financial services in both B2B and B2C format of
business. it has subsidiaries located in various parts of the world such as in New