ANZ Bank - Challenges and Opportunities for Practice Improvement - Case Study Example

ANZ Bank By: Institution: Course: Instructor: Date of submission: Introduction ANZ is among the largest Australia and New Zealand companies as well as a major global banking as well as financial institution. The bank whose headquarter is in Melbourne, Australia first opened door in 1830s. The bank’s assets stands at AUSD$392.6 billion and it operates in over 30 countries in the Pacific, Asia, USA, Dubai, Europe, and Austrasia and this include operations and technology hub within Bangalore within India. The vision of ANZ is to be a the leading bank in the region, ensuring the provision of the quality and the scale of international business to the customers in its core markets located in New Zealand, Australia, the Pacific, and Asia (Baruch, 2013). The company can only ensure the achievement of its goals by ensuring that it is nurturing great people. The company’s values include integrity, accountability, collaboration, excellence, and respect. Apart from that, the bank has made a commitment to ensure that a lasting partnership is built between the customers, communities, and the shareholders 32 nations across the globe (Crawshaw, Budhwar, & Davis 2014, p. 5). The company’s unique strategy as well as its people acts as the main keys to bring about success. The strategy encompasses strengthening of the business within the Pacific, Australia, and New Zealand and at the same time ensuring the establishment of a noteworthy presence within Asia’s key markets. The bank also believes in inherent vibrant, inclusive, and diverse workforce in which the perspectives, life experiences, and the backgrounds of its employees are essential in forging a strong link with all its clients, innovate as well as come up with better decisions that are going to improve its business (Krystyna, Joanna, Zaleska, & Menezes, 2007). The company’s values as well as behavior is to ensure that it is offering clear guidance when it comes to working as an individual as well as a team to ensure that all the stakeholders are receiving respect. Apart from that, the company’s standard of human right is to ensure that all the people as well as the communities are receiving respect (Hayton 2012, p. 13). Challenges In the recent years, the banking sector is faced with numerous challenges including corporate scandal and the management issues and these challenges can be categorized into remuneration, regulation, and restoration. ANC Bank for instance faces the new regulations’ challenge whereby there occurs constant regulation rules’ application. In addition to that, the bank is also faced with numerous external interventions especially the political change as well as constant change and this feed into the company meaning that it is going to tackle it daily. Another challenge is the restrictions of regulations especially on the bonus payment. The bank therefore, faces the challenge of competing with other global markets in the new restrictions (Crawshaw, Budhwar, & Davis 2014, p. 7). In response to this, the banking industry is introducing new elements of reward that are not guaranteed or fixed such as base salary that are adjustable on the basis of business performance as well as individual contribution. Another response by ANC Bank as well as the other banks has been by ensuring an increase of the base pay and this is a way of making up for lower amount of bonuses. The challenge rewarding the managers is mainly to ensure the leveraging of the new approaches as well as the novel terms revolving around the bonuses’ claw-back to ensure the incentivization of some scorecards’ intangible element for instance the satisfaction of the customers and hard cash success measures (Wanna 2009, p. 12). Apart from that, ANZ is also faced with the challenge of the proposed changes mainly to the remuneration Code (Gardener & Falzon 2010, p. 14). It is likely that this challenge will bring about changes when it comes to the bonus deferrals, malus as well as potentially buy-outs of bonus, clawback, with tougher sanctions of finances at the top level of management especially of any bank that is likely to be bailed out in future. With the continuous development of the globalization concept, it is likely that the management process is also likely to become globalized. With the beginning of shift of the mind of the public, more examination is being conducted on the shoring and the sourcing strategies on numerous international companies. In addition, the bank is also worried about the challenging conditions of the economy within the Asian region as well as the slowing economy of the globe. The bank faces a continuous volatile environment that has little uncertainty and therefore, it is important for it to prepare as well as ensure a tight management when it comes to resourcing. The bank is also worried when it comes to cost controls, and therefore, its main focus would be on the k control of the cost (Hayton 2012, p. 17). In addition, the bank is also faced with the diversity challenge whereby the employees are required to explore their base of knowledge as well as attitude towards the issues of diversity to ascertain how the equity and the diversity scenarios present in the place of work should be addressed. Recently, the bank has embarked on piloting a single day global program on diversity awareness bearing the name Breakout Inclusion, that will pose challenge to the assumptions, ensure the expansion of the mindsets as well as ensure the identification of the change in behavior that an individual, group, as well as teams are required to portly to ensure the delivery of the inclusion within the bank (Crawshaw, Budhwar, & Davis 2014, p. 8). These challenges can interfere with the bank’s organizational effectiveness because they appear to be the initial obstacles (Regini, Kitay, & Baethge 2009, p. 12). Another challenge that occurred recently was the bank was sued by its former traders. To a large extent, the HRD practices have been integrated within the HRD practice area and integrated within the HRD practice areas. The company shares the view that the motivated, knowledgeable, and engaged employees will ensure that the customers have the best service as well as make a contribution to the company’s long term success. Each year, the company carry out the a survey on employee engagement that lead to the development of action plan at the divisional, local, and group level to address the feedbacks of the survey. In addition the management continuously receives the regular report of the progress. Apart from that, the bank has made a commitment to ensure that all its employees are offered with the employment conditions that are reasonable and fair and aligns with the standards of human rights as well as business values (Hayton 2012, p. 17). The main strategy of the bank is to build the most respected as well as the most connected bank within the region of Asia Pacific as well as across the world. The Bank’s practice of remuneration grade is fair when it comes to the model of proprietary pay for performance. More remuneration was paid to the company’s CEO compared to the remuneration paid to the median CEO of 7 similar companies (Hayton 2012, p. 17). Opportunities for practice improvement The housing as well as the regional network of delivery act as ANZ’s competitive advantage. This network is essential in ensuring the transformation of essential activities of the business as well as the productivity delivery improvements and at the same time driving higher quality and consistent experience for the client. The company’s corporate sustainability objective is to offer information to the stakeholders regarding how it manages as well as anticipate present as well as future environmental, economic, and social risks as well as opportunities. The bank’s business comprises of five divisions namely New Zealand, Australia, Institutional and International, Technology and Wealth, Operations and Service. The focus of the company is organic opportunities for growth that are present in the region of Asia Pacific and its distinctive footprint perceives it to be uniquely place to meet the customers’ needs who are depending on capital flow and regional trade. The strategy is reinforced by portfolio and capital management, people’s quality, and rigorous liquidity (Capraru, Andries 2013, p. 7). The company’s strategy is in line with its vision, behavior, values, brand promises, and purpose. The approach of the bank to sustainability offer support to the business strategy’s achievement by providing guidance to the manner in which decisions are made as well as conduct business (Regini, Kitay, & Baethge 2009, p. 11). Another strategy that can improve the human development practice is the bank’s values as well as behaviors. The company’s values as well as behaviors offer guidance regarding the manner of working as a team and as individual to ensure the growth of customer base growth, ensuring the retention of employees whose performance is exceptional. The sustainability within ANZ revolves around guaranteeing that the business management is considering the environmental, social, as well as the economic opportunities and risks (Afroj 2012, p. 12). By considering all these factors across all business areas, it is possible to ensure the creation as well as the preservation of value for shareholders, its people, and its customers. Ensuring the integration of environmental and social consideration into the services and products as well as decision making ensures that the customers are attaining their sustainability ambitions as well as deliver long-term stakeholder values (Didem 2015, p. 13). Building the most inclusive and diverse workforce of the major bank within the region is essential in ensuring that ANZ is innovating, discovering new markets, keeping in touch with the customers, and ensuring that better decisions are made. Robust procedures and policies on risk management and effective governance play an essential role in ensuring that the company’s strategy is achieved. Together with value application, they offer support to ensure the delivery of ethical, sustainable, and responsible business outcomes (Rahim & Idowu 2015, p. 17). ANZ also offers various full-time as well as part-time opportunities with the commitment of recruiting as well as retaining the finest talent in every area of the organization. The company also recognizes that it can only be great if its people are great. I addition, the bank also offers training and development opportunities for its employees that will be essential for meeting the individual as well as the organization’s needs and this is essential in ensuring the maintenance of the competitive advantage (Merrett 2015, p. 19). The company’s training program consistently focuses on the personal and professional development with the inclusion of the online learning, talent and graduate programs as well as secondment opportunities on short term basis. ANZ offers challenges in its business nature. In addition, the bank also places a great emphasis on personal initiative which is essential for its progress (Ergeç & Kaytanci 2017, p. 12). The bank also places an emphasis on valuing passion, integrity, boldness, as well as different thinking. Balancing the work with other pursuits and commitments is essential to the wellbeing and health of its employees. The bank enhances this by offering programs to offer support to the working environment which is friendly to the family, for example the employee assistance program, flexible working time, among others. Numerous other growth opportunities are in existence and they include respecting the employees’ rights when it comes to joining the various organizations and it does this by not interfering with the decision of the employees (ANZ 2016, p. 1). Findings Many longitudinal researches have focused on human resource development evolution practices within Australia. However, the practitioners of human resource development do not have the information on key trends on how they can ensure the positioning of their own initiatives. The turnover of the employees represents an essential problem to the company when it comes to the talent loss as well as additional training and recruitment cost. According to Gardener and Falzon (2010), the best way to ensure a reduction in the actual rate of employees’ turnover is to ensure the identification of factors that influence the intentions of turnover. Among the most essential turnover predictors is organizational commitment. According to the study, the intention of employees with a strong link to their company tends to be low compared to those whose commitment is low. Presently, the banking sector is faced with intense competition and the prompt changes continue to intensify this competition. The complex world as well as the change in skills and technology have made many banks to brig about adjustment as well as change their environment and this is essential to ensure the advancement of competences that is knowledge, approaches and skills among the employees of the banks to ensure that they are suitable to the changing circumstances (Hayton 2012, p. 22). Recommendations Since every human being has the capacity to perform remarkably and enhance their understanding, develop, as well as ensure the utilization of their potentials, it is important for the banks to offer them the knowledge prospects, and emerging climate. This can only occur in there exist effective and efficient practices of human resource development as this would ensure the maximization of value as well as the minimization of cost. However, there exists no particular practice to be aspired by the various organizations. However, it is important for the various organizations to have a unique system of human resource development representing core competencies essential for survival as well as a particular firm’s survival. Conclusion The inadequate human resources management and the unpredicted loss of essential staffs have the capacity shake the operations, financial conditions, as well as the business of the company. The capacity of the bank to retain as well as attract suitable as well as qualified staff members is an essential factor in ensuring that is attaining its strategic goals. The management team as well as the chief executive officer has reputation as well as skills that are essential to set the strategic track. However, the Bank is likely to lose these key personnel unexpectedly owing to death, illness, retirement, and resignation, and this may have an adverse effect on the financial condition as well as its operations. If the company is experiencing difficulties attracting as well as retaining individuals who are highly qualified for essential roles, the business, financial conditions, and operations could be greatly affected. Bibliographies Ergeç, E. H., & Kaytanci, B. G. (2017). Effects of Islamic Banking on Employment. Gardener, E. P. M., & Falzon, J. (2010). Strategic challenges in European banking. New York: St. Martin's Press. Hayton, J. C. (2012). Global human resource management casebook. New York, NY, Routledge. Merrett, D. T. (2015). ANZ Bank: a history of the Australia and New Zealand Banking Group Limited and its constituents. Sydney, N.S.W., Allen & Unwin. Palmer, L. (2016). The impact of human resource management practices on employees' commitment in the banking sector in Kingston, Jamaica. Regini, M., Kitay, J., & Baethge, M. (2009). From tellers to sellers: changing employment relations in banks. Cambridge, Mass, MIT Press. Wanna, J. (2009). Critical reflections on Australian public policy: selected essays. Acton, A.C.T., ANU E Press. http://press.anu.edu.au?p=98331. Shahnawaz, M. G., & Juyal, R. C. (2016). Human resource management practices and organizational commitment in different organizations. Journal of the Indian Academy of Applied Psychology, Volume 32, Issue: 3, pp.267-274. Didem, P. (2015). Analysis of relationship between human resource management practices and organizational commitment from a strategic perspective: findings from the banking industry. Journal of Social and Behavioral Science, Vol 207, pages 315-324. Afroj, S. (2012). Ongoing corporate human resource management practice in the banking sector of Bangladesh. Global Journal of Management and Business Research, Vol 12, Issue 2, Feb 2012. Capraru, B., Andries, A, M. (2013). Impact of financial liberalization on banking sectors’ performance from Central and Eastern European Countries. Krystyna, Joanna, Zaleska L. M, & Menezes, D. (2007). Human resources development practices and their association with employee attitudes: between traditional and new careers. SAGE Journals. Retrieved on 25th March 2017 from: http://journals.sagepub.com/ Debey, P. (2013). Human resource development: literature review. Monthly multidisciplinary Journal, Vol 3, issue 4. Baruch, Y. (2013). Employability: a substitute of loyalty? Human resource development international, 2013, 4, 543-566. Retrieved from http://scholar.google.com/scholar_lookup?publication_year=2001&pages=543-66&author=+Baruch,+Y.+Employability&title=A+substitute+for+loyalty?& Read More