MGT101: Contemporary Organisational Design - Westpac Case Analysis

This report provides an in-depth analysis of Westpac Banking Group's organisational structure, focusing on its contemporary matrix-project design and its effectiveness in managing the organisation. It highlights the importance of a structured organisational hierarchy for clear roles and responsibilities, and examines how Westpac, a leading Australian bank, utilizes this structure to compete in the digital economy. The report details the advantages of the matrix-project structure for Westpac, including resource coordination, specialist placement, effective communication, and flexibility in organisational activities. It also addresses potential disadvantages such as communication difficulties and conflicts arising from collaborations. Ultimately, the analysis concludes that Westpac's organisational structure is a proper management strategy that helps in ensuring the effective performance of the company and achievement of organisational goals.

MGT101 – Fundamentals of
Management
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Contents
Analysis organisational structure...............................................................................................3
References..................................................................................................................................9
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Analysis organisational structure
Topic: Contemporary Organisational Structure/Designs and Effectiveness
Management of an organisation indentifies different activities and plans which helps in
attaining the organisational objectives in an effective manner. The companies use the
planning on the basis of different structure they follow. Every company plans a strategy to
attain the goals which are disseminated in the structural form of an organisation. The analysis
here provided is based on the well-know MNC of Australia namely, Westpac Banking Group.
The company operates the business in various parts of the world and is well known and one
of the “big four” banks. The organisational structure of the organisation and its working has
been considered in this analysis to analyse and examine the structured form of an
organisation (Chelladurai, et. al., 2017).
The organisational structure of Westpac provides the operating structure of the organisation
and is used by various global organisations to compete in fast-pace changing digital
economy. The company Westpac uses Matrix-Project Structure. The organisational structure
of Westpac and its analysis has been done further in this paper. It is important to have a
structured organisational hierarchy so that all the employees are well aware of their
respective roles and responsibilities that have to be played within an organisation. Westpac is
among most recognised banks of Australia which is also the trend setter in marketplace. The
top as well as middle level management of company has been engaged in formulating of
strategies that for the sake of customers and is able to gain competitive position in market.
For such purpose it is important to study the contemporary organisational design which
consists of various factors and elements.
Organisational structure of Westpac
The organisational structure refers to the form of organisation in which it works and forms a
detailed plan of working in a company. The organisational structure of a company is based on
the operations and activities of different tasks in an organisation. The organisational structure
of Westpac is different and has a complete understanding of the activities which goes on in an
organisation. The company is a multi-national company which has its operations in Australia,
Asia, pacific, United Kingdom, and New Zealand. There are various effective structures but
Westpac has a similar organisational structure all over the company’s location. The
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organisational structure which Westpac follows is the Matrix-project structure in which
specialists are assigned with the different functional areas to work effectively on the projects
(Chelladurai, et. al., 2017). The organisational structure of Westpac includes various different
areas for which different specialists are assigned with the works. The below provide
organisation structure chart is of Westpac.
Figure- 1: Organisational Structure
Source: Gupta (2017)
The above organisational structure of Westpac shows the effective working and operations of
the company. The company works in the matrix project structure in which it provides the
working of an effective team. The specialists or experts are assigned with the duty or
responsibility of completing the tasks and activities of an organisation (Gupta, 2017). The
Westpac group includes the layers of the different departments in which the organisational
operations are executed in the manner of achieving the tasks properly.
Importance of Matrix-Project Structure in a Westpac organisation
The matrix-project structure of an organisation is an effective and important for the financial
services of Westpac. The company deals in then operations of the financial services which
are provided in the various parts of the world. According to the company, it is very important
for an organisation to consider the Matrix-Project structure so that it may achieve the
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resource coordination. According to the human resource of the company, there are so many
people employed and working in the organisation of Westpac. The matrix-project structure
helps in maintaining the huge population of resources in the organisation in a proper manner
(Sinha, 2017). The resources could work in coordinated manner if they are disseminated in
the different areas. The matrix-project structure ensures the dissemination of the working
structure of people in different areas or activities of the organisation. This matrix-project
structure maintains its importance for Westpac to manage resources coordination among it.
Further it is noted that matrix-project structure is important in Westpac in its placing the
specialists to the different activities or tasks of an organisation. This is basically the
organisational structure advantage which helps in the company and become important for
Westpac. As it helps in ensuring the specialist or expert to the organisational tasks, the lack of
errors could be ensured under this (Sinha, 2017).
The communication is very important in an organisation to manage the activities effectively
and manage the organisational tasks in the manner to get more out of it. Westpac ensures the
effectiveness of its organisational structure because of its effective communication channel.
As it is divided into different areas, this becomes easy for the organisation to travel its
information easily in the different departments through its organisational structure.
This matrix-project structure is also important for Westpac as it provides flexibility in the
organisational activities (Westpac, 2018). The human resources share the flexibility in
different projects which helps in assuring flexible nature of organisational activities and
tasks.
It is clear from the above importance that the matrix-project organisational structure in an
organisation helps in attaining the objectives and tasks in the manner of attaining
organisational objectives. With the improvement in the organisational structure, the services
of the company regarding financial services can be managed easily and properly. Less
chances of risks and errors helps in getting the organisational benefits in the company. The
growth could be ensured by the company in the manner of increasing an effective
organisational efforts and results. The financial services become flexible which helps in
maintaining the operations flexible (Westpac, 2018). With this managed structure the
customers are attracted towards the company as their services becomes effective in this fast
changing world and increased competition. This ensures the growth of Westpac.
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The global environment is changing the fastest manner which needs to be competing in the
manner to achieve efficiency and effectiveness in the organisational activities as well as in
achieving the organisational tasks. The different methods of attaining the organisational
activities to attain the organisation goals provide the management of the organisational
structure. The Westpac provides effective financial services in the world for which it is
included in the big four companies (Westpac, 2018). The Westpac use this organisational
structure in providing the financial services to the people of the country in every parts of the
world. This is an effective organisational strategy of Westpac which helps in providing the
clear results of getting maximum result in an organisation.
The organisational structure of the company is designed in the matrix-project structure in
which the duties are assigned to the different specialist in different departments. The head or
chief executive officer of the company owns the company and has the decision making power
to the overall organisation. The different departments in the organisation are divided
according to the bank, retail and banking services, institutional bank, BT financial group and
Westpac New Zealand (Gupta, 2017). These different departments or industries are divided in
Westpac which are further divided according to the operations and functions of the
organisation. The further division in the company includes the product and operations,
transformation officer, chief financial officer, Chief risk officer, and group executive
technology. The different department’s helps in maintaining the organisational functions and
managing the operations effectively as there is no complexity in this structure and all the
operations are assigned in the professional hands which can control and mitigate risks in the
organisation (Gupta, 2017). The functions are determined and employees are managed in the
effective organisational manner so as to provide success to the organisation.
Advantages of Matrix-Project organisational structure in Westpac
The benefits of the organisation are based on the different activities and their working in an
organisation. The effective techniques and management of the organisations helps in
maintaining the organisational objectives. The goals and objectives of the company need to
be assured for attaining the success and growth in the company. Employees are continuously
sharing and apply knowledge (Aasi, et. al., 2017). The structural organisation of Westpac
helps in providing effective strategies and management if the company so as to get benefit of
matrix-project structure. The matrix-project structure is one of the management strategies of
the organisation which helps in managing the different areas and different organisational
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activities effectively. The financial services of the company could be ensured without errors
as this helps in maintaining the activities of the different departments. The specialists and
experts work on different management departments which enables it in providing the
strategic analysis to the company.
There are various advantages and disadvantages of all kinds of structuring the organisation.
The management needs to be proper in the organisation so as to get maximum success with
the effective management strategies. The management forms and enables the increment in the
performance and getting effective space to the growth in the competitive world. Being the
biggest banking firm of Australia and one of the big four companies, Westpac needs to
operate the management and the functions according the provided principles. Working in the
different nations makes it a biggest multinational company which offers the job opportunities
to the talents in the countries (Aasi, et. al., 2017). The management of the company requires
hiring some specialist and expert and maintaining the organisational balances. The matrix-
project structure of the company deals in the effective manner. It helps in ensuring the
specialists and professionalism in work. The operations and working of the organisation
becomes an effective management as it helps in dividing the different areas according to the
activities and tasks in the organisation. Under different areas and departments the specialists
or professional is hired and assigned duty in the organisation. This helps in getting the benefit
to the organisation in maintaining its success.
Disadvantages of Matrix-Project organisation structure
The disadvantages of the company include some demerits which may affect the
organisational functions and their operations. The disadvantages are that this provides the
company in getting employees to share what they know is difficult. For the employees it is
very difficult to communicate from different departments in this organisational structure. This
is because it has a matrix format which only helps in communicating within the department
properly (Johns & Conroy, 2017). The conflicts due to collaborations in the organisation
arises which is very difficult to be managed in the organisation. The country helps in
managing the organisational activities with the proper management of operations. Due to
easy communication the management of conflicts can be done. The conflicts are also
managed by Westpac by management of different issues in coordinating of employees. The
disadvantages of the organisational structure affect the employees and their working in an
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organisation. The different disadvantages affect the performance and maintain the
organisational benefits of the organisation.
From the above analysis it is provided that the organisational structures are effective and a
proper management strategy which helps in ensuring the effective performance of the
company. With the consideration of various management principles and organisational
objectives it is simple for the organisation to manage the structural format of the organisation
(Johns & Conroy, 2017). The principles of the organisation lead in the growth of the
company and this is one of the effective organisational efforts which companies focus. The
Westpac Financial Group manages its functions in an effective manner. The matrix-project
structure provides a proper management of an organisation and the helps in ensuring the
achievement of organisational goals and objectives effectively.
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References
 Aasi, P., Rusu, L., & Leidner, D. (2017). IT Organizational Structure Relationship
with IT Governance Performance: Case of a Public Organization. In Information
Technology Governance in Public Organizations (pp. 229-252). Springer, Cham.
 Chelladurai, P., Radzi, W. M., & Daud, M. A. K. M. (2017). Organisational
structure and theory of non-profit sport organisations. Understanding Sport
Management: International Perspectives, 27.
 Gupta, P. (2017). Organisational Structure and Management: In Reference of
Banking Sector. Journal of Management Science, Operations & Strategies (e ISSN
2456-9305), 1(2), 29-35.
 Johns, G., & Conroy, S. (2017). Organisational Structure. Communications.
 Sinha, S. (2017). ORGANISATIONAL STRUCTURE AND WORK RELATED
ATTITUDE: MEDIATING ROLE OF PSYCHOLOGICAL
EMPOWERMENT. Journal of Organisation & Human Behaviour, 6(3).
 Westpac, (2018), About Us, Available at- https://www.westpac.com.au/. Accessed
on: 29th May, 2018.
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