MGMT20144: Contextual Factors Affecting Australian Banks

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MGMT20144 MANAGEMENT AND BUSINESS CONTEXT
1

Introduction
There are several numbers of contextual factors which can have a direct impact on the activities
of any business. This report denotes the concept of those contextual factors through using the
existing literature regarding them. The main contextual factors that will be discussed in this
report are environmental forces, functions of the diverse firm, risks faced by the organizations,
organizational structures as well as organizational and business practices. There will be
discussed the findings in those articles regarding any particular contextual factor and a
discussion will also be made on how such contextual factors can affect the business of four
Australian leading banks. The use of such contextual factors by the managers will be discussed
in the report that how they can use them positively in order to ensure the success of the
organization. The review of five articles will be made in this report in order to understand the
contextual factors to a great extent.
2

Gaudet, & Tremblay. (2017). Initiating structure leadership and employee behaviors: The
role of perceived organizational support, affective commitment, and leader-member
exchange. European Management Journal,35(5), 663-675.
https://doi.org/10.1016/j.emj.2017.04.001
https://www-sciencedirect-com.ezproxy.cqu.edu.au/science/article/pii/S0263237317300592
This article is regarding the contextual factor organizational structure in order to make the
analysis on the success of the business. The article has identified the mediating responsibility of
the perceived organizational support as well as the effective organizational commitment in the
relationship between the employee’s behavior and the initiating structure. The organizational
structure of any business is required to be attractive and must include the best people and
management for the business. It is helpful in maintaining workplace satisfaction for the
employees and they tend to work even harder for the success of the business. The article is more
about the initiating structure leadership which is helpful in achieving the organizational
objectives, organizing the role of employees to achieve such objectives and then establishing the
clear communication channels as well as the precise methods for the business. This structure of
the business can be helpful in identifying the key success factors for the business and adopt them
in such a manner that the organizational goals can be achieved (Gaudet & Tremblay, 2017).
The key findings of this article have provided how the initiating structure leaders are influencing
the behavior of the individuals. It has been identified in this article that leaders who are adopting
the initiating structure behaviors which can be helpful in fostering the performance of the
employees. There has also been provided the encouragement to examine the conditions of the
appropriateness of this leadership structure as well as the organizational structure.
This contextual factor is very important for the managers of any business as this is their duty to
create and implement such organizational structure and governance which can be helpful to
achieve the success by the business in this competitive market.
3

Hansen, H., Randolph, A., Chen, S., Robinson, R., Marin, A., & Lee, J. (2015). Institutional
judo: How entrepreneurs use institutional forces to create change. Journal of
Organizational Change Management, 28(6), 1076-1093. DOI:10.1108/JOCM-05-2015-0074
https://search-proquest-com.ezproxy.cqu.edu.au/docview/2154279807?rfr_id=info%3Axri
%2Fsid%3Aprimo
The article has provided a discussion regarding the environmental forces having an impact on
business activities. The market is very competitive and any changes in the business environment
can hamper or foster business activities. It has been identified in this article that there is
continuous growing interest in the nexus of the entrepreneurship as the institutional changes.
There has been identified the new legitimating strategy in order to tackle these environmental
forces within the organization. The changes in the business environment can cause an effect on
business activities. There has been revealed several numbers of the interesting aspects related to
the institutional changes as well as legitimacy. The tactic described in this article which is
institutional judo is quite different from other tactics defined in the previous existing articles.
The findings of this article include the concept of institutional judo. This theory has mainly
focused on solving the environmental forces related problems and maintains a sustainable policy
for the business (Hansen, et. al., 2015). The attempt of the entrepreneur to achieve legitimacy in
the process of commercializing as well as creating the new venture is also being discussed.
The managers are required to understand the concept of the organizational forces and the
environmental factors having their impact on the business activities. This context is also called as
the macro environment. These are the forces which shape the opportunities as well as the threats
of the business. There are six different environmental forces such as economic, demographic,
political, and social-cultural, technological as well as technological. The managers are required
to have knowledge of all these forces so that they can change them into the opportunities.
4

Liu, S., Xia, F., Zhang, J., & Wang, L. (2016). How crowdsourcing risks affect
performance: An exploratory model. Management Decision,54(9), 2235-2255.
https://doi.org/10.1108/MD-12-2015-0604
https://search-proquest-com.ezproxy.cqu.edu.au/docview/1826444228?rfr_id=info%3Axri
%2Fsid%3Aprimo
This article is regarding the contextual factor of risk confronting the firms. It has been identified
in this article that the crowdsourcing has achieved the significant attention and it is also being
used by several numbers of the companies in order to develop the new products and find the
solutions to the practical problems. The companies which are new and growth-oriented are
facing numerous issues regarding financial risks. The concept of crowdsourcing is considered as
the new and open business model which receives the diversified web-based solutions which also
involve the unknown individuals. This unique model has also offered several numbers of benefits
to the companies regarding eliminating financial risks. The companies are required to identify
the appropriate solutions to the risks associated with the businesses. The risk identification is
helpful for the managers comprehensively understanding the source features of the risks. There
are no instruments to identify the crowdsourcing risks for the businesses.
This article has shown the findings regarding the tool crowdsourcing which can be used to solve
the financial risks problems for the businesses. The list of the risks factors associated with the
crowdsourcing provides the basis for the measurement of the overall risks conditions of a task at
each and every stage. It has been found in this article that the relationship risk is attributed
towards the crowd sources as well as the crowd sources (Liu, et. al., 2016).
The managers can use the practices to handling and eliminating the risks in their businesses and
can ensure that there is no such problem regarding the risks associated with the businesses. It is
very necessary for the managers to identify the risks and find the appropriate solutions in order to
minimize them.
5

Malott, M. (2016). Selection of Business Practices in the Midst of Evolving
Complexity. Journal of Organizational Behavior Management, 36(2-3), 103-122. https://doi-
org.ezproxy.cqu.edu.au/10.1080/01608061.2016.1200511
https://www-tandfonline-com.ezproxy.cqu.edu.au/doi/full/10.1080/01608061.2016.1200511
The concept to be discussed in this article is the business practice or organizational practice. The
concept of the leaders managing the organization has also been explained in this article. There
are several leaders within the business organizations who have a lack of experience and have
never been provided any training. They are still making major contributions to the industries.
The managers, as well as the leaders on any organizations, definitely deserve the sympathy as
well as the admiration as their work is very tough to do. As the business grows, it becomes more
complicated and complex in nature. They engage themselves in developing more components as
well as more part-whole relationships and become vulnerable to a great extent to the external
environments of the businesses.
The article has found that the business practices are required to be handled in an appropriate
manner by the managers as well as the leaders within an organization. The organizations are
inherently different and unique from each other. They have different members, different
vulnerabilities, as well as different internal processes and the business practice also used by
them, are different from each other (Malott, 2016).
The managers should understand that what they should do to develop the best business practices
in order to understand the concept of business practices. They are the key people within an
organization and are very much responsible for business practices.
6

Liu, S., & Deng, Z. (2015). Understanding knowledge management capability in business
process outsourcing. Management Decision, 53(1), 124-138. https://doi.org/10.1108/MD-04-
2014-0197
https://search-proquest-com.ezproxy.cqu.edu.au/docview/1650901447?rfr_id=info%3Axri
%2Fsid%3Aprimo
The diverse firm functions are the topic which is being discussed in this article. Every
organization has its own business practices which it performs in order to achieve success in this
competitive market. There has been identified that the business process outsourcing plays a very
important role in service outsourcing because it adds the value within the business practices. It
can be said that the failure of the business process outsourcing can be attributed to the low
knowledge management capabilities of the services outsourced on the basis of the concept of the
BPO as a process of formulating, transferring, and integrating as well as utilizing the knowledge.
The business practices are important to be unique to make the business unique and better from
other competitors. The performance of the BPO mostly relies on the extent to which the
customers integrate and use their knowledge. The main focus of the businesses must be on the
perspective of the clients.
The article has found the integration of KM capabilities, firm features as well as the performance
within the context of the business process outsourcing. The KM capabilities have been identified
in order to be engaged with the BPO. It has been identified in this article that the KM practices
should differ across all the BPO processes (Liu & Deng, 2015).
The managers are needed to understand the concept of business practices and what is required
from them to implement those business practices. The managers can help the business to grow if
they are implementing business practices in an effective manner.
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Conclusion
There has been presented several numbers of the factors which are required for the business
organizations to attain success. The review of the existing literature on such contextual factors
has also been made in this report. The importance of these factors is reflected throughout the
report. The identification of the risks is a very important contextual factor for the businesses as
the managers are required to identify these risks and then make the efforts in order to eliminate
them. There are several banks in Australia such as Westpac, Australian, and New Zealand
banking groups, National Australia Bank as well as the Commonwealth Bank of Australia. These
businesses also required to have managers who can clearly identify the upcoming risks and
confront them in a positive way. Risks are the problems which can hamper the performance of
the businesses and it has become quite important for the businesses to deal with such risks so that
the success of the company can be ensured. The performance of the business can also be
maintained if all the risks associated with the businesses are being tackled with a positive mind-
set.
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References
 Gaudet, & Tremblay. (2017). Initiating structure leadership and employee behaviors: The
role of perceived organizational support, affective commitment, and leader-member
exchange. European Management Journal,35(5), 663-675.
https://doi.org/10.1016/j.emj.2017.04.001
 Hansen, H., Randolph, A., Chen, S., Robinson, R., Marin, A., & Lee, J. (2015).
Institutional judo: How entrepreneurs use institutional forces to create change. Journal of
Organizational Change Management, 28(6), 1076-1093. DOI:10.1108/JOCM-05-2015-
0074
 Liu, S., & Deng, Z. (2015). Understanding knowledge management capability in business
process outsourcing. Management Decision, 53(1), 124-138. https://doi.org/10.1108/MD-
04-2014-0197
 Liu, S., Xia, F., Zhang, J., & Wang, L. (2016). How crowdsourcing risks affect
performance: An exploratory model. Management Decision,54(9), 2235-2255.
https://doi.org/10.1108/MD-12-2015-0604
 Malott, M. (2016). Selection of Business Practices in the Midst of Evolving
Complexity. Journal of Organizational Behavior Management, 36(2-3), 103-122.
https://doi-org.ezproxy.cqu.edu.au/10.1080/01608061.2016.1200511
9