Factors Influencing Business Decisions in Australian Banks: A Report

Desklib provides past papers and solved assignments for students. This report analyzes business decision-making in Australian banking.

MANAGEMENT AND BUSINESS
CONTEXT
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Contents
Introduction................................................................................................................................3
Main Body..................................................................................................................................3
Article 1..................................................................................................................................3
Article 2..................................................................................................................................4
Article 3..................................................................................................................................5
Article 4..................................................................................................................................6
Article 5..................................................................................................................................6
Conclusion..............................................................................................................................8
References..................................................................................................................................9
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Introduction
In this competitive era, decision making is a critical task for business organisations as it is an
act of making a choice among all available alternatives. In corporate undertakings, various
decisions are taken for accomplishing day to day activities or tasks. Effective business
decisions are liable for improving business performance as if decisions are correct it
represents that the manager is efficient and qualified. Furthermore, effective organisational
decisions are also assists in planning and develop policies which ensure future growth and
success of the firm. The present assignment is prepared by considering five elements which
are used in the business decision-making process, such as – environmental forces,
organisational structure and governance, risks confronting the firm, organisation and business
practices and the functions of diverse firms. In this relation, certain specific journals will take
into consideration so as to gain relevant information for the given topics. The report suggests
that managers must consider these factors while making any decisions.
Main Body
Article 1
Gibson, L., Finnie, B., & Stuart, J. (2015). A mathematical model for exploring the evolution
of organizational structure. International Journal of Organizational Analysis, 23(1), 21-40.
Retrieved from: <https://www-emeraldinsight-com.ezproxy.cqu.edu.au/doi/pdfplus/10.1108/
IJOA-10-2011-0519 >.
This article is about organisational structures and governance which states that every banking
institute follows its unique organizational structure so as to function and operates in well-
being manner. Having an effective organisational structure allows companies’ to float
information between top to bottom level management. In the UK, organizations seem
compelled to grow in size in this relation perspective of global competition requires resource
pooling and economies of scale; all these can be done through by proper responsiveness and
flexibility within organisational structure. It is a contextual variable that influences
organizational design and functioning and is connected to both organization age and to
organizational life cycle stage. A mathematical framework should be acquired in order to
restructure the organisational structure as it provides an insight into how the organisational
complexity can be changed.
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With this research, it has been founded that various models are also simplified which
provides an understanding of reality and reduces complexity. In addition to this, there is a
strong relationship between organisational scale, economic performance and bureaucratic
complexity; it leads to business expansion and makes it more mature.
Along with this, the findings of the research are beneficial for managers in banking industries
as the organisational structure and corporate governance works together as it is crucial to
achieving a new frontier of profitability and competitive edge. Corporate governance allows a
company to put positive traits on business functionality and operations by having intentions
that company is accountable for their actions and behaviours. Hence, more willing to distance
themselves from duplicity; it builds trust or faith among employees and enhances
organisational commitment.
Article 2
Mousa, Fariss-terry, Bierly, Paul E. III, & Wales, William J. (2014). Different strokes: IPO
risk factors, investor valuation, and firm survival. Journal of Management & Organization,
20(3), 348-364. Retrieved from: <
https://www-cambridge-org.ezproxy.cqu.edu.au/core/services/aop-cambridge-core/content/
view/CF435EC422C8CCD156102BFDE20E4010/S183336721400025Xa.pdf/
different_strokes_ipo_risk_factors_investor_valuation_and_firm_survival.pdf>.
This research paper includes the topic “Risks confronting the firm” which signifies that there
are several risks or challenges are associated with corporate associations. It is analysed that
higher risks or issues are faced by companies due to the changing aspects of the business
environment. In Europe after the economic recession, banking institutes face several risks
which affect their survival and create differences in profitability ratio. Risks related to –
technology, political, economic, legal and environmental factors; for instance – data security
and cyber-crime are the main technological risks.
The findings of the research are beneficial for management as it provides an insight to
managers about various strategies or policies should take into consideration to manage and
overcome from risks. A risk assessment plan also has to prepare which assists managers’ to
monitor future risks and find out solutions for the same. It has been overviewed that limited
insight is provided to long term risks or issues; sometimes they are avoided which affects
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future sustainability and market survival of the company as well as reduces its competitive
edge over external rivals.
After reading this assignment, it has been also overviewed that banking industry of the nation
needs to focus on managing its finance and consider external risk factors, such as - market
risks, legal risks, and government regulations as they will have more negative impact
business operations.
Article 3
Di Fiore, A. (2013). THE INSIGHT DRIVEN ORGANISATION. Business Strategy Review,
24(3), 44-49. Retrieved from: < http://web.b.ebscohost.com/ehost/pdfviewer/pdfviewer?
vid=1&sid=e5c4bb3c-1cc7-4272-98b1-18cda3243879%40sessionmgr101>.
The article is including the topic “Organisational business and practices” which indicates that
corporate associations are trying to apply effective business practices for accomplishing
desired goals and objectives. In recent years, investment in innovation and technology has
increased with an aim to enhance the analytical power of organisations. Management is
focusing on the re-engineering of production processes and make them more powerful; in this
sense, they are focusing on aligning innovation and strategy. It is a qualitative process which
serves insight born out of an individual's reflection and observation thus to implement best
practices. To improve their business insights, frequently individuals’ intends to find out
innovation or new ideas thus to implement the same in their business processes; it turns outs
to identify best solutions of problems. The findings of the research stated that the Lean Six
Sigma method is an effective organisational business practice which makes everybody
responsible for search and execution of ideas so as to boost up operational productivity or
performance. Here, responsibility can be changed or pushed down top and lowest possible
level at the workplace. Developing a qualitative judgement needs a momentous shift of
companies into innovation and change working processes.
The findings of the research are beneficial for banking industries as here, best practices
indicate that how effective it is to unleash innovation which creates power for employees and
make them able to perform in the required manner. Australian corporate commission
organizes events of six to eight weeks for all corporates by having the goal is to dream up and
implement new ideas which take organisations at new heights.
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Article 4
Kuo, L., & Yi-Ju Chen, V. (2013). Is environmental disclosure an effective strategy on the
establishment of environmental legitimacy for the organization? Management Decision,
51(7), 1462-1487. Retrieved from:
<https://www-emeraldinsight-com.ezproxy.cqu.edu.au/doi/pdfplus/10.1108/MD-06-2012-
0395>.
This research paper covers the topic of “environmental forces” as in a dynamic business
environment there are several internal and external forces which may harm business activities
or tasks in a direct and indirect manner. These elements also put a vast impact on
organisational decision making and affect its potential growth. The purpose of this paper is to
examine the relationship between the level of environmental disclosure and implementation
of a legitimacy image of operations in firms. The research signifies that due to exacerbation
of global climatic condition, the business environment has undergone drastic changes.
However, the major challenge for Australian firms is the execution of environmental
management practices that make their actions eco-friendly and builds an efficient market
image.
The findings of the research signify that CSR is an effective environment force which must
be integrated with a business model; it considers economic, social, political, environmental
and social dimensions of an organisation’s activities. It has been overviewed that
communities and companies are paying attention to the idea of corporate social
responsibilities by considering environment management. Hence, the commitment towards
the environment has become a strategic challenge for banking industries in the present
scenario.
These findings help banking institutions to conduct and run business in society by taking
approval of stakeholders in the social system. This approval considers as organisational
legitimacy which ensures that the association is performing in an ethical manner; it confirms
that managers consider social values in their operations. Thus, concern over legitimacy forces
firms to adopt managerial practices that are expected to have social value.
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Article 5
Lu, L. (2015). Building trust and cohesion in virtual teams the developmental approach.
Journal of Organizational Effectiveness: People and Performance; JOEPP, 2(1), 55-72.
Retrieved from: https://www-emeraldinsight-com.ezproxy.cqu.edu.au/doi/pdfplus/10.1108/
JOEPP-11-2014-0068.
This study covers the topic of “The functions of diverse firms”. It includes that a
comprehensive model is required in order to function in well-being manner; as the turn of the
century, virtuality has been increased within the organisation. It is challenging for human
resource because virtuality needs at different levels, such as – organisational level, individual
level and strategic level. The report aims to establish a balance between all these levels by
adopting a social psychological perspective as well as undertake an individual-level analysis
in order to map out evolution process at functional aspects. Recent developments in
technology and innovation make employees' able to work at remote areas and exchange
instantaneous messages thus to take fast decisions. For ensuring effective functionality of
tasks, managers apply the concept of shared activities which provides an opportunity to
potentially rewarding experiences.
The findings of this research have shown that employees’ participation in mutually satisfying
activities puts a strong influence on the development and maintenance of relationships as well
as manage a healthy and positive environment at the workplace. It is also determined that
acquisition of electronic communication tools, such as – online chatting, sharing blogs,
emails because as if teams will communicate socially they would achieve higher faith and
healthier social and emotional relationships.
By considering this study, banking industries in Australia are also trying to improve their
diversity for this purpose they are emphasising on taking positive and negative feedbacks so
as to grasp of how other team members think about them. It improves functions and other
business operations which lead towards accomplishing organisational goals or objectives.
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Conclusion
From the above-mentioned report, it is overviewed that taking effective steps for business
decision-making process assists it to obtain desired goals and objectives in a certain time
period. In Australia, there are four major banking institutes, such as - Commonwealth Bank
of Australia (CBA), Westpac, Australia and New Zealand Banking Group (ANZ) and the
National Australia Bank (NAB); all these institutions are trying to be keeping one step ahead
from each other. In this relation, CBA is acquiring a strategy to reframe its organisational
structure so as to establish strong corporate governance and reduce the complexity of tasks or
activities. Furthermore, Westpac which is also known as one of the leading banking industry
in Australia intends to improve its business practices so as to think and act innovatively. The
organisation is allowing its workforce to involve in decision-making process whereas New
Zealand banking group is focusing on identifying environmental forces thus to formulating
business strategies or policies and obtain a high compelling edge in a certain time period. At
last, the National Australia Bank signifies to improve its functional diversity so as to respond
towards risks or challenges in the required manner.
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References
 Di Fiore, A. (2013). THE INSIGHT DRIVEN ORGANISATION. Business Strategy
Review, 24(3), 44-49. Retrieved from: <
http://web.b.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=1&sid=e5c4bb3c-1cc7-
4272-98b1-18cda3243879%40sessionmgr101>.
 Gibson, L., Finnie, B., & Stuart, J. (2015). A mathematical model for exploring the
evolution of organizational structure. International Journal of Organizational
Analysis, 23(1), 21-40. Retrieved from: <https://www-emeraldinsight-
com.ezproxy.cqu.edu.au/doi/pdfplus/10.1108/IJOA-10-2011-0519 >.
 Kuo, L., & Yi-Ju Chen, V. (2013). Is environmental disclosure an effective strategy
on the establishment of environmental legitimacy for the organization? Management
Decision, 51(7), 1462-1487. Retrieved from: <https://www-emeraldinsight-
com.ezproxy.cqu.edu.au/doi/pdfplus/10.1108/MD-06-2012-0395>.
 Lu, L. (2015). Building trust and cohesion in virtual teams the developmental
approach. Journal of Organizational Effectiveness: People and Performance; JOEPP,
2(1), 55-72. Retrieved from:
https://www-emeraldinsight-com.ezproxy.cqu.edu.au/doi/pdfplus/10.1108/JOEPP-11-
2014-0068.
 Mousa, Fariss-terry, Bierly, Paul E. III, & Wales, William J. (2014). Different strokes:
IPO risk factors, investor valuation, and firm survival. Journal of Management &
Organization, 20(3), 348-364. Retrieved from: < https://www-cambridge-
org.ezproxy.cqu.edu.au/core/services/aop-cambridge-core/content/view/
CF435EC422C8CCD156102BFDE20E4010/S183336721400025Xa.pdf/
different_strokes_ipo_risk_factors_investor_valuation_and_firm_survival.pdf>.
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