Impact of System Failure on CBA's Productivity: A Case Study

This case study analyzes the impact of system failures on the productivity of the Commonwealth Bank of Australia (CBA). It examines the background of the problem, which includes consistent system failures leading to delays in tasks, payment issues, over-insurance, and underpayments. The study outlines the problem, focusing on the financial losses for clients and customers due to these failures. It also details the management decisions taken by CBA, such as addressing insurance cancellations and succession planning. The research questions explore the steps taken by CBA for financial transactions, measures to control breaches like money laundering, managerial approaches to over-insurance and underpayment issues, and the overall impact of system failures on productivity. The research objectives aim to assess CBA's systems for financial transactions, measure steps for controlling breaches, analyze managerial decisions, and examine the impact of system failures. The case study references relevant sources to support its findings, providing a comprehensive overview of the challenges faced by CBA and its efforts to mitigate the impacts of system failures.

Running head: MANAGEMENT
Impact of system failure on productivity: A case study of Commonwealth Bank of Australia
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MANAGEMENT
Table of contents
Background to the problem........................................................................................................2
Problem and management decision............................................................................................2
Problem..................................................................................................................................2
Management decision.............................................................................................................2
Research questions.....................................................................................................................2
Research objectives....................................................................................................................3
References..................................................................................................................................4

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Background to the problem
Commonwealth Bank of Australia has released documents, which states the issues of
consistent systematic failures, which have compelled the employees and customers to
encounter delays in completing the tasks. As a matter of specification, the issues consist of
selling insurance lines, where the payments have not been paid, over insurance for the
customers requesting for home loans and underpayments for the employees in the phase of
superannuation (Abc.net.au 2019). These issues have greatly stalled the productivity in terms
of processing the statements for the financial transactions. Moreover, continuity in the system
failures have compelled the clients and the customers to encounter complaints.
Problem and management decision
Problem
The issue pertains to the consistent system failures, aggravating the complexities in
making the payments to the staffs, especially those undergoing superannuation. Over
insurance and underpayments reflect the carelessness of the staffs towards monitoring the
activities. This failure has resulted in financial losses for the clients and the customers
(Abc.net.au 2019).
Management decision
According to the latest decision of CBA, there has been an addition into the list,
which states the deal with ASIC regarding cancellation of the insurance to the affected states.
According to the latest decision, the bank is surveilling as to how many of the states have
been affected. As per the estimations, the number of affected states would not be more than
1000. As per the revelations of Abc.net.au (2019), the chairperson has decided to bring
forward the details of succession planning for effectively dealing with the financial
transactions.

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Research questions
 What steps are taken by Commonwealth Bank of Australia for processing the
statements for financial transactions?
 What are the measures undertaken by Commonwealth Bank of Australia to control the
breaches of money laundering?
 To what extent the managers express spontaneous approach in dealing with the issues
of over insurance and underpayment for the employees undergoing superannuation
 What impact does system failure create on the productivity of Commonwealth Bank
of Australia?
Research objectives
 To assess the systems adopted by Commonwealth Bank of Australia for conducting
the financial transactions
 To measure the steps taken for controlling the breaches like money laundering in the
workplace premises of Commonwealth bank of Australia
 To analyse the spontaneity in the managerial decisions of Commonwealth Bank of
Australia for resolving the issues like over insurance and underpayment of the
employees under superannuation.
 To examine the impact of system failure on the productivity of the Commonwealth
bank of Australia

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References
Abc.net.au 2019. Commonwealth Bank's ongoing systemic failures: But wait there's more.
Available at: https://www.abc.net.au/news/2017-08-15/cba-updates-settlements-with-clients-
and-employees/8805872 [Accessed on 18th August 2019]
Compton, M.E. and Hart, P.T., 2019. Looping to success (and failure): second-order
mechanisms and policy outcomes. In Making Policies Work. Edward Elgar Publishing.
Lloyd, C., 2015. The lucky country syndrome in Australia: Resources, social democracy and
regimes of development in historical political economy perspective. In Natural Resources and
Economic Growth (pp. 271-293). Routledge.
Salim, R., Arjomandi, A. and Seufert, J.H., 2016. Does corporate governance affect
Australian banks' performance?. Journal of International Financial Markets, Institutions and
Money, 43, pp.113-125.