Commonwealth Bank's Structure and Effectiveness in Australia

Exclusive Summary

This paper shows the organizational structure , strategies of the Commonwealth bank in Australia. And its briefly discuss about the Impact of the company’s structure on management innovation and Impact of the company’s structure on overall business performance. Vision of bank is to be Australia’s finest financial services organisation through excelling in customer service and strategy. As mention is their vision of Bank, this bank is very serious about the customer service. CBA is such a one good example of technology adopted bank which is giving excellent service for their customer by utilizing the up-to-date technology

Introduction

The Commonwealth bank that is referred in this study is the largest in the industry that caters to an array of financial products and services and it is the most recognized bank in the Australian financial services industry. It was founded in 22nd December 1911 as a government bank and under the Commonwealth Bank Act in 1911 and commenced operations in 1912. The bank listed as a public bank in1991.The first branch opened in Melbourne 15th July 1912.It has the largest branch and ATM network. more than 11000 branches and 4300+ ATMs.

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According to the 2016 findings the bank stands at a total assets of USD 740 billion with a total income of USD 19.52 billion for the period. It has employees around 51,800 members as staff and more than 800,000 shareholders. And bank serves more than 15.9 million customers. Commonwealth bank operates across New Zealand, Fiji, Asia, USA and the UK with more than 11,000 branches under its purview.

The Businesses are Insurance, Funds management, Business and private banking, Institutional banking and marketing, Retail banking services, wealth management and international financial services and other services.

Section 1

Structure of the Commonwealth bank

The structure of an organizations can be defines many different ways. A structure is developed to establish how the organization operates to execute its goal. And its helps determine the success of the organization. It depends how activities such as professionalism, supervision, centralization, coordination, formalization, task allocation are directed towards the company goals.

When we talk about the structure of the common wealth bank it has four main aspects.

1. Retail Banking service. Under retail banking service bank consider about the financial services to customers and small business customers.
2. Premium business serving. In 2009 this service was split in to two main parts. One is institutional banking & markets And Business & private banking. Institutional banking & markets provide services to institutional clients and global markets. And from Business & private banking concern about business customers and private banking.
3. Wealth management. Under this category it brings together the group funds management platform, master funds, superannuation, insurance and financial advice business support.
4. Executive leadership. The below individuals have been appointed as chief executive officers of the common wealth bank Australia.

Strategies

Organizational strategies are everything a company plans to achieve its goals. Before the company develops its strategy, it has to compare how it is now and how it wants to be. In particular, where it would like to be at a certain future time. It has to define the differences and then list what needs to be done to get there.

The Commonwealth Bank's strategy hinges on four key capabilities: people, technology, strength and productivity.

• People - They have a vibrant, customer-focused and highly integrated culture. Your employees are central to our success. They will continue to invest in employee development and talent management and make the group a place dedicated to diversity, security and a place where their employees are proud to work.
• Technology - They use cutting-edge technology to meet the changing needs of your customers. Their strategy remains focused on long-term value creation for their customers, shareholders and employees. Its goal is to achieve significant long-term growth, strong employee engagement, strong customer experience, consistent shareholder return and outperformance for its shareholders. EFFICIENCY Employees Technology Strength Productivity Develop applications that leverage real-time capabilities, consider new ways of interacting with their customers, and continue to leverage technology to increase productivity.
• Strength - Through the financial crisis, they have learned that the strength and stability of the group makes them the organization the Australians trust to protect their money. A strong and flexible balance sheet is important to ensure they can continue to support their clients and seize opportunities.
• Productivity - You are constantly simplifying how you work to deliver better results for your customers and their employees. This is something that good companies do at all times and that is critical to their long-term success.

Section 2

Impact of the company’s structure on management innovation

Organizational decision makers can influence innovation in their organization by directing the structure of an organization directly. The distribution of control and responsibilities within an organization is determined by its organizational structure as well as by the grouping, coordination and division of work between departments and staff of an organization. Innovation can be seen as new structures and management processes, new policies, new plans and programs, new production processes and new products and services produced in one organization.

Management innovations are most often examined in comparison to technical innovations or technological innovations. Technological innovation is explicitly linked to the central role of an organization, and the results obtained are mainly found in the operating systems. whereas innovation in management is inexplicably linked to the core work of the organization and occurs more frequently in the social systems of an organization.

The Commonwealth Bank invests in innovation to keep its name at the top. So they can continue to provide a compelling customer experience and meet the increasing competition and regular requirements. This includes innovation in both customer-focused and back-office applications. We also invest in technology to keep our systems safe, sound and secure, to add real value and to deliver better results for our customers.

We also promote innovation-driven collaboration with our customers through our Innovation Labs. This year, we partnered with the CSIRO Data61 to develop a world-leading smart money making app using block chain technology. The use case was an attempt for the National Disability Insurance Scheme (NDIS). The goal is to provide 'intelligent money' to NDIS participants who know what they can spend, who can spend it on, and when it can be spent.

Organizational decision makers have the power to influence innovation within their company through their direct control of the structure of an organization. The dispersion of control and responsibility within an organization are determined by its organizational structure, as are the grouping, coordination, and division of tasks amongst departments and employees in an organizatio

Organizational decision makers have the power to influence innovation within their company through their direct control of the structure of an organization. The dispersion of control and responsibility within an organization are determined by its organizational structure, as are the grouping, coordination, and division of tasks amongst departments and employees in an organizatio Organizational decision makers have the power to influence innovation within their company through their direct control of the structure of an organization. The dispersion of control and responsibility within an organization are determined by its organizational structure, as are the grouping, coordination, and division of tasks amongst departments and employees in an organizatio Organizational decision makers have the power to influence innovation within their company through their direct control of the structure of an organization. The dispersion of control and responsibility within an organization are determined by its organizational structure, as are the grouping, coordination, and division of tasks amongst departments and employees in an organization

Section 3

Impact of the company’s structure on overall business performance.

Modern companies have complex structures. Decisions of top managers and executives affect the overall performance of the business. Strategic performance measurements aim to monitor the effectiveness of an organization's structures.

Different organizational structures have different effects on the performance of the organization. Organizational structure or organization design is a means to achieve organizational goals through coordination, monitoring and task allocation. Three main elements that take into account the organizational structure are decision-making, membership selection and leadership. Companies have to weigh up different advantages when choosing a specific organizational structure. In addition, the structure is also important to the organization's performance because it describes daily routine and operational procedures as well as points out who would be involved in the decision-making process.

Organizational structure supports organization: maintaining order, solving problems between departments and within each department, and linking organizational members together. The benefits of a strong organizational structure include a stable hierarchy, a smooth flow of communication, and a well-defined, coherent corporate message. The organizational structure can also cause problems such as internal conflicts, high employee turnover, lower productivity and delayed decisions. It is therefore important to identify and resolve organizational structure issues to ensure effective and efficient organization performance.

Recommendations

The recommendations are the result of a comprehensive and detailed investigation and take steps to implement all measures relevant to their business.

The deputy chief executive officer David Cohens of the Commonwealth bank implemented the “Royal Commission Recommendation” to the organization recently. And it will issue regular updates about the bank progress and it is fully transparent.

Many of the recommendations require direct changes in their business and are already underway. Some of the recommendations require action by the government, regulators and industry before they implement them. they will support this work and are already considering what changes they need to make themselves so that they are ready to act once the legal framework is in place

Conclusion

This report concludes that the Commonwealth Bank is very serious about the efficiency of their services to customer. Report clarified that the up-to-date of Strategies and structure can bring large amount of positive benefit for company like Common wealth bank to provide efficient and smooth service for their customer which will establish the good relationship with customer. The report also clarified that the how organizational structure impact on Business performance and management innovation can help to sustain the achievement of any company. And lastly, this report describes how commonwealth bank has improved their business with the recommendation.

References

1. https://www.commbank.com.au/
2. https://www.commbank.com.au/banking.html
3. Our Company, 2011. Commonwealth Bank. Retrieved on March 27, 2011 from http://www.commbank.com.au/about-us/strategy/default.aspx
4. https://www.commbank.com.au/digital-banking/netbank.html
5. https://corporatefinanceinstitute.com/resources/careers/companies/top-australian-banks/
6. http://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/8155.0Main+Features12016-17?OpenDocument
7. https://publications.industry.gov.au/publications/australianindustryreport2016/assets/Australian-Industry-Report-2016.pdf
8. https://www.news.com.au/finance/business/banking/commbank-customers-fury-over-massive-outage/news-story/25f6ff3f8f01d00ecfb25b3c35afe18e
9. https://www.commbank.com.au/digital-banking/mobile-payments-wearables/apple-pay.html?gclid=CjwKCAiAy-_iBRAaEiwAYhSlAyZYp9ijdjInRcMCgrUyPhqClkl-B_GLW5SHkjJ4JatgEHfMNF3TMRoCbe4QAvD_BwE