Leadership and Management Analysis of Commonwealth Bank, Australia

This case study examines the management practices of Commonwealth Bank, Australia, analyzing managerial roles, functions, and the challenges they face within the organization. It delves into the bank's structure, including its functional and divisional aspects, and explores the implementation of scientific management and contingency approaches. The study utilizes qualitative research, specifically interviews with a relationship manager, to gather insights into the bank's operations, technological integration, and employee training programs. The analysis compares scientific management with the situational approach, highlighting the importance of adapting to changing business requirements. Furthermore, the case study discusses the role and legitimacy of management functions, including planning, organizing, leading, and controlling, and how these are affected by the political and social environment, including issues related to diversity and corporate social responsibility. The study concludes by emphasizing the importance of adaptability, ethical practice, and effective leadership in ensuring the success of the Commonwealth Bank in a dynamic market.

Running head- MANAGEMENT
Management of Commonwealth Bank, Australia
Name of the student
Name of the university
Author note

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Table of contents
Introduction.....................................................................................................................................2
Managerial roles and functions in Commonwealth Bank, Australia..............................................2
Research methodology (Qualitative analysis).................................................................................3
Comparison between scientific management approach and contingency or situational approach. 5
Role and legitimacy of management function and its affectation by the political and social
environment.....................................................................................................................................6
Conclusion.......................................................................................................................................8
References.......................................................................................................................................9

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Introduction
Managers are central to a company or organization in terms of ensuring that the
operations are conducted as per the identified and specified requirements. Strategic approach
towards governing the operations enhances the corporate image of the managers. Mention can be
made of the organizational theories within which different approaches govern the behaviour of
the managers (Chang, 2016). Qualitative research in this direction helps in excavating the
specific roles and responsibilities, which the managers perform for controlling the operations.
Reference can be cited of the risk management exercise, which reflects the conscious approach
of the managers towards the wellbeing of the employees (Parker, 2016). This assignment
attempts to look into the managerial aspect of Commonwealth bank, Australia in terms of the
scientific management and bureaucratic management approach as a part of the organization
theory.
Managerial roles and functions in Commonwealth Bank, Australia
With its headquarters in Darling Harbour, Sydney, Commonwealth bank achieves large
scale customer satisfaction through the provision of quality financial services across New
Zealand, Asia, United States and United Kingdom. As a matter of specification, the bank deals
in the supply of retail business, institutional banking, funds management, superannuation,
insurance, investment and broking services. According to the Australian Security Exchange,
Commonwealth bank bags the tag of largest Australian listed company, accompanying the
brands of Bankwest, Colonial First State Investments, ASB Bank among others
(Commbank.com.au, 2019).
The managers directly report to the Directors, CEO, COO and CFO. Functional
organizational structure reflects the compliance of the managers to the orders of the higher
authorities by the managers. The structure of CBA can also be considered as divisional, as the

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roles and responsibilities are allocated to the managers according to the hierarchies. In the earlier
stages of the formation, changes in the structure were prioposed in terms of the inserting vertical
integration into the business operations. The organizational structure of the bank is organized
according to the needs, demands and the requirements of the clients and the customers. Along
with this, changes were also proposed in the responsibilities of the leadership team, so that the
delivery of the services can be done according to the identified and specified target segments
(Commbank.com.au, 2019).
The bank and its related corporate bodies function collectively for the creation of long
term sustainability values. This is through the means of catering to the financial stability of the
clients and the customers. Intervention of the legislative bodies upgrades the standards and
quality of the financial operations. This upgradation, in turn, is assistance in terms of the
organizing the business according to the needs, demands and requirements of the clients and the
customers, preserving the business dynamics.
The management parameters in the bank relate to executive management, branch
management, asset management, wealth management, change management, sales management
among others. The managers work according to the Corporate Governance Statement developed
in 2018 (Commbank.com.au, 2019). Within this, the principles govern the behavioural approach
of the managers regarding controlling the operations.
Research methodology (Qualitative analysis)
In order to delve deeper into the managerial roles of the Commonwealth Bank,
qualitative research is conducted. The research design is exploratory in terms of finding out the
strategies used by the bank managers for enhancing the efficiency in the business operations.
This exploration would assist the researcher to collect necessary information on the corporate
governance of the bank. The method of collecting data is interview, which enables the researcher

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to get a practical experience of the organizational behaviour of the managers while governing the
business operations (Holmes, 2016).
Upon interviewing the relationship manager, the researcher has been successful in
narrowing down the focus to the channels, which are adopted for delivering the services to the
clients and the customers. According to his claims, infusing technology in the business reflects
6.5 million active users, strengthening the customer base of the Bank. The manager is of the
view that maintenance of balance sheet helps in keeping tracks of the liquidity, capital and
funds. He makes mention of the training, which are conducted for them, so that they can perform
the duties according to the identified and specified requirements (Waring, 2016).
In terms of the pay packages, the manager is of the view that Gender Equity attains a
backseat. This is because of the broad pay scale gap between Executive General Managers and
the General Managers. However, Equity Pay is reviewed throughout the year, as a part of the
annual remuneration review process. In case of the channels for the levying the services, the
relationship manager highlights the tie-ups with the mobile networking brands and the contact
centres. These partnerships the proportion of the group profit is 10.6%.
One of the other aspects in this direction is maintaining track records for the total training
hours in case of both the male and female executive managers. This reflects the diversity, which
prevails in the branches of the bank. He cites the Diversity Policy, which plays a crucial role in
averting the instances of conflict, discrimination and harassments in the workplace
(Commbank.com.au, 2019). Along with this, the executive managers are entrusted with the
responsibility to establish contact with the branch managers, HR managers and others for
ensuring the training programs are conducted according to the identified and specified
requirements.

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Comparison between scientific management approach and contingency or situational
approach
Adopting organizational theories reflects the conscious approach of the managers
towards preserving the organizational culture in the process of executing the business activities.
Here, specific mention can be made of the classical organizational theory, which includes the
approach of scientific management, bureaucratic approach and administrative theory. In this
context, the focus is on developing comparative study between scientific management approach
and contingency or situational approach.
Scientific management approach helps the managers of Commonwealth bank, Australia
in constructing effective plans for standardizing the business operations according to the
business requirements (Waring, 2016). For this, the managers need to simplify the duties and
responsibilities, which reflects the application of the specialized skills, abilities and
competencies. Here, mutual trust is one of an essential components, which eases the process of
increasing the productivity. This trust enhances the stability in the relationship between the
employees and the managers. Providing proper training to the employees adds stability to the
management processes. Situational analysis proves fruitful for the bank in terms of developing
businesses, which helps in maintaining the pace with the contemporary brands in the competitive
ambience of the market.
For conducting the situational analysis, need analysis is organized by the CBA. This is in
terms of gaining an insight into the parameters on which the governance needs to be modified.
As per the arguments of Holmes, (2016), consciousness and rationality in this direction enhances
the corporate image of the managers. Typical evidence of this lies in making judicious use of the

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systems for enhancing the preconceived skills expertise and knowledge of the employees.
Within this, mention can be made of the different grasping capabilities of the different personnel.
Contingency learning approach is helpful for the managers in terms of making the employees
aware about the recent developments, which can be used for upgrading the standards and quality
of the financial services.
Situational approach relates to the attempts of the bank towards aligning the business
with the requirements of the clients and the customers. For this, scientific approach is needed in
the form of latest and modern systems, which possesses flexibility to digitalize the business. As
per the arguments of Parker, (2016), one of the other parameters in this direction is contingency
learning for the employees regarding the use of these technologies. Post training tests in the form
of practical exams is assistance in terms of assessing the capability of the employees towards
making practical application of the learnt skills in executing the allocated duties and
responsibilities. In this, mention can be made of the provision of motivation and encouragement
to the employees, which reflects the compliance to the principles of scientific management.
Adopting the socio-technical approach reflects the interaction between the employees
and the technologies. This approach relates to the attempts for enhancing the virtual skills of the
employees. In this, infusing the Data Protection Act (1998) helps in preventing the instances of
misuse of the systems (Commbank.com.au, 2019). Introducing disciplinary training services for
the employees is beneficial. For this, the performance of the personnel is considered. Within this,
the plan of introducing technology training is considered as an approach towards linking the
processes and goals.

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Role and legitimacy of management function and its affectation by the political and social
environment
The four basic management functions are planning, organizing, leading and controlling.
In this, the latest addition is staffing. Legitimacy in management relates to the involvement in
social contracts for preserving the property rights of the stakeholder and shareholders. Within
this, customer sovereignty gains an important position in terms of generating value in the
operations. Economic systems are adopted by the Bank for safeguarding the property ownership
in case of the customers. The way in which the resources are used reflects the behavioural
approach of the managers (Waring, 2016). For example, reviewing the recruitment and selection
policies reflects the conscious approach of the HR manager towards the wellbeing of the
employees.
Political legitimacy relates to the act of exercising the allocated power and authority. In
this, two aspects influence the power and authority of the managers. These are- knowledge
towards exercising the power and direct influence for exerting power. Knowledge towards
exerting the power relates to the incorporation of scientific management into the business, which
aligns with the workplace culture. On the contrary, exposing the power and authority on the
influence of others reflects side parting with others, which is against the code of ethics (Parker,
2016). Here, Weber’s bureaucratic management can be inserted in terms of the legitimate aspect
of the power. Traditional authority is one of the major forms of leadership, where the managers
have the right to exercise the power and authority. In this case, the aspect of change management
attains a backseat in terms of preserving the age old tradition. Commonwealth bank of Australia
cannot be placed in this category, as they made changes in the organizational structure for
maintaining the pace with the competitors.
Social factors relate to the corporate social responsibility. The factors, which affect the
role of management are diverse socio-cultural background, external challenges and improper

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skills and expertise of the employees among others. Like other organizations, Commonwealth
bank comprises of diversified workforce, which results in enhancement of the productivity. On
the other hand, this diversity sometimes leads to conflicts and differentiation of opinions
(Commbank.com.au, 2019). These issues stall the productivity, compelling the managers to
encounter delays in the completing the tasks within the stipulated time. However, owing to the
different grasping skills possessed by the employees, the managers need to introduce training
programs for accommodating the employees into the recent business requirements.
The employees from the different socio-cultural backgrounds are trained about the native
languages, which consumes a lot of time of prior planning is not conducted. For averting this
situation, the bank managers indulge in meetings with the CEO for developing plans about
organizing frequent group discussions between the employees at all levels. This approach proves
beneficial in terms of enhancing the compatibility among the team members and the managers.
This compatibility results in teamwork, which is needed for improving the efficiency in the
business operations (Noe et al., 2017). In the process of improving the infrastructure, delays are
encountered in supplying the orders, a deviant behaviour in the modern competitive business
trend.
Conclusion
Commonwealth Bank of Australia achieves fame and glory through the provision of
financial services to the clients and the customers across New Zealand, Asia, UK and USA. The
managers are entrusted with the responsibility to manage the operations in the parameters of
asset management, sales management, human resource management and risk management
among others. Complying with the terms and conditions of the Corporate Governance Statement
helps the managers in executing the tasks in an efficient and effective manner. However, illegal
use of the power and authority aggravates the complexities in legitimizing leadership skills,

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abilities and competencies. Along with this, external challenges and pressures make it difficult
for the managers to ensure smooth functioning of the operations.

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References
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill
Education.
Waring, S. P. (2016). Taylorism transformed: Scientific management theory since 1945. UNC
Press Books.
Holmes, L. (2016). Re-Tayloring management: Scientific management a century on. Routledge.
Parker, L. D. (2016). From scientific to activity based office management: a mirage of
change. Journal of Accounting & Organizational Change, 12(2), 177-202.
Chang, J. F. (2016). Business process management systems: strategy and implementation.
Auerbach Publications.
Commbank.com.au (2019). About us. Retrieved 4th April 2019 from
https://www.commbank.com.au/
Commbank.com.au (2019). Annual report 2018. Retrieved 4th April 2019 from
https://www.commbank.com.au/content/dam/commbank/aboutus/shareholders/pdfs/
results/fy18/cba-annual-report-2018.pdf