Understanding Organizations: Westpac Bank Australia - Case Study Example

Student Name Tutor Title: Case analysis Report, Understanding Organizations: Westpac Bank Australia Institution Date Case analysis report, Understanding organizations: Westpac Bank Australia Introduction Westpac bank, Australia is a multinational financial service, one of the ‘big four’ banks in Australia and the second biggest bank within New Zealand. As of November 2011, the bank had about 12.2 million clients, whereby it had nearly 1200 branches and a network with more than 2800 ATMS. Westpac bank is the second biggest business banking lender as well as the Australia’s second biggest bank in terms of assets. The bank was acknowledged by the Dow Jones Sustainability Index as the most sustainable bank worldwide for five years constantly. This report makes an analysis upon how Westpac bank is depicted with three key perspectives of organizational theory; modern, symbolic in addition to postmodern. In so doing, the paper draws upon metaphors from sociological theory to make sense of time-allied issues within the evolution of Westpac analysis. Accordingly, this report analysis the commodification of time recognized in labor process analysis; the social construction of time illustrated within workplace ethnographies; and the compression of time (and space) proposed in writing on post-Fordism in the bank. In the modernist perspective, Westpac bank is perceived as a social tool as well as an expansion of human judiciousness. In the postmodern perspective, the bank is analyzed as less expression of planned consideration and calculative action and also a more protective reaction to forces fundamental to the social body which persistently threaten the stability of structured life. In general, the report promotes an impulsive pluri-paradigm appreciation of time within organization theory and research, particularly in Westpac bank, Australia (Narube & Whiteside 2010). Modernist analysis Modernism was a new architectural approach that appeared within the decades following the First World War. Modernism was prompted by the enlightenment as well as a social and political revolution; it was compelled by the ease of access of new building technicalities like iron, concrete and glass, in addition to the development within technologies and engineering. A reaction to the overstated approach of the Victorian period was also a contributing element to modernism. Modernism is typified by the exclusion of ornamental details, a stress on function along with an overview of structure (Taylor & Hansen 2005). Modernism perspective was established with the realistic utilization of modern materials like metal glass and concrete, and also a rebellion against customary or historical approaches, whereas still utilizing factory made elements. In addition, modernism perspective focuses on reality of knowledge which is developed basing on the conceptualization and the theorization. In this perspective there is always logical definitions regarding how thins take place, often by using information gathered from measurement tools. For instance, in modernism perspective, an organization in this case Westpac bank earns proceeds basing on the capacity of the CEO to make the correct decisions during the investments of the money (Hatch & Cunliffe 2006). According to Hatch & Cunliffe, (2006), the data recognized by the modernism perspective are from the five senses, through what is seen, heard, touched, smelled and tasted as well. A key perception within the social change is modernity; modernity encapsulates the individuality, intricacy and vitality of social process set free during the 18th and 19th centuries, which mark a distinctive split from traditional ways of living. Modernity refers to the present in regard to the past and therefore manifested by the chronological transition from feudal societies to modern societies, as a consequence of industrialization (Hatch & Cunliffe 2006). Environment All sectors of the business community have environmental responsibility. This responsibility is not confined to only businesses that directly exploit natural resources but all organizations and hence Westpac bank has an environmental responsibility in order to achieve sustainability. Investments as well as procurement policies can have intense impacts through sending clear signals to the market that sustainability is valued and that practices that are not sustainable, the organization spurns them (Wang 2011). On the subject of procurement policy, Westpac bank is a key consumer of energy, office accommodation, paper, water in addition to transport. Westpac bank’s strategy of managing the environment impact is centered on an environmental management system based on ISO14001. This system takes account of a set of specific environmental goals and targets against which Westpac bank monitors its performance closely. The bank has various environmental programs aimed at achieving environmental sustainability. In this regard, Westpac bank is supposed to develop investment policies that are favorable to sustainability and decrease the financial and reputational risks to Westpac bank of financing poor projects. Additionally, Westpac bank ought to develop procurement policies, goals and timetables that actively decrease the environmental and social “footprints” of its operations. Social structures and culture "If our modern pluralist society is to survive and prosper, businesses must recognize that they can no longer separate their economic or financial interests from their social responsibilities." Self interests of many organizations determine the quality of the society where the business operates. The remarkable success of the market is based on capitalist system expanding wealth and this is not world wide. It has succeeded when social as well as legal circumstances are favorable and where barriers to transactions are decreased. The rule of law is relevant to a business just as it is like to a civil liberation. A successful community is a valuable market. A sustainable environment is a state standard for survival of the market if not the specific corporate activity. It is not difficult to make direct relationships between general public and general corporate welfare (Taylor & Hansen 2005). Probably the most noticeable connecting linkage between good corporate citizenship and carrying out business is the significance of trust. Societies are successful and peaceful when there is a high level of trust between citizens and organizations. This has unique bearing to the financial area where the volumes of transactions entail two way trusts. In the end, so many signatures on cheques or credit slips require scrutiny (Tschoegl 2005). This is the reason why Westpac’s activity of assessing its operations from external perspectives is important. The Westpac leadership in affirming a suspension on closures within rural towns and the initiatives with indigenous as well as other disadvantaged groups is an institute. However, Westpac is required to do more in bridging the gaps between low income society members and other disadvantaged groups in regard to accessibility of services that will assist to triumph over the feelings of incapacity currently in parts of Australia. In my view, profits and social responsibilities should not be a conflict. Actually, it cannot be denied that an organization like Westpac with strong positive reputation is characteristically financially successful. As a result, the more bridges Westpac bank build back into the society through taking responsibility for developing social capital, the stronger the country will turn out to be (Ash 2002). If the modern pluralist society is to survive and thrive, organizations such as Westpac should acknowledge that it is not possible to separate financial interests from its social responsibility. Leaders in Westpac bank should become leaders within the society and in reality ingredient of the creation of society. Leaders in Westpac cannot avoid broader social responsibilities due to the impact it has. The real state is that it carries out the responsibilities effectively or badly. Therefore, Westpac bank should be out there protecting and endorsing values it cherishes for itself understanding that they are values cherished by the society at large. That way, the bank will be able to get the type of society it is proud to live within and everybody want to leave for the future generation. Development of social capital is something that will restore the trust of the society for Westpac bank, which is good for the business as well as for the overall society (Keating 2008). Technology The weight of the past has augmented the intricacies facing Westpac bank management. The administrative heritage of the bank made its extremely federal and bureaucratic organization that depended on an employee policy of internal promotions to all senior positions. Mechanization was a significant agent for change. The introduction of computers compelled the centralization of back-office functions, which were as a result eradicated from the purview of branches. The implementation of information technology and its allied new products namely, credit cards, ATMs, as well as electronic fund-transfer systems, brought along a new groups of professionals, bankers within the initial instance, who shoved for position in the organization. The effect of the technology climaxed within mid-1980s, when Westpac bank got into an arrangement with IBM for the development of software which could enable the bank to retain a proprietary interest (Keating 2008). The bank has invested heavily in alternative banking services through internet banking, mobile banking and telephone lenders. This acknowledges that currently some 90% of transactions take place outside bank branches. Since in Australia shopping patterns have greatly changed and two income families turn out to be the norm, the bank has also launched Saturday trading with selected locations (Tschoegl 2005). Solutions To plan what is ‘adequate’ that honors all elements and guarantees that one element is not increased at the expense of other elements is the key thing. From the outside in, the view is that Westpac bank’s profits are claimed at the expense of other things, regardless of that being environment, workers and employment, or social health and welfare of a society. Banks are a pivotal center of the corporate world and hence banks and in this case Westpac bank should accept that the society live beyond its means. And begin changing this through development of a different perspective. Knowing what can be changed, the society to live within its means and still have ‘enough’. Westpac bank should know that it can be profitable and still honor the environment. Accordingly, the bank can carry out several things as a way of becoming an ‘adequate’ corporate citizen (Ash 2002). Westpac bank makes use of a vast scale of electricity, paper, computers, cabling and such facilities. Therefore, the bank should be dedicated to lateral thinking from the top to implement a change that establishes a new world best practice, in decreasing, reusing and recycling the things the bank consumes in large amount. Westpac bank should stick on how it can do the 3Rs. Additionally, the bank often sends numerous insurance offers through the mail and since they send these mails to so many people, a lot of resources are wasted, for example, paper, labor, electricity and such. In this view, Westpac bank should embrace the several opportunities, mechanisms as well as new technologies that make a difference and reduce consumption of things such as electricity or labor (Pang & Amy 2011). Recommendations Westpac bank is supposed to use its profits in reinvesting; for instance, reinvesting into an area of rebuilding the environment or researching and developing new technologies that will make a difference in decreasing consumption. To select an area, play a role, set an example, rebuild and give back to the society. Currently, the creation of wealth in the society is regularly based on greed and fear and hence often wealth is created at the expense of something else or people, say, environment, society or social health. As a result, Westpac bank should implement the practices that can create wealth and at the same time honor and contribute to the welfare of these environments which include the society. It will only take the bank to adjust its operations, know that there is enough for all, begin what is sufficient for the bank as well as the others and then develop strategies from that point (Ash 2002). A key challenge for modern Australia is to make sure that all citizens have the chance of benefiting from economic development and technological change. To achieve this, the bank’s policy and practice should seek to be wide-ranging and sustainable, built on a foundation of valuing the existing and potential contributions of society members. In this regard, Westpac bank should strive to identify and eradicate the barriers that prevent individuals from taking part in economic and social life (Hassard 2002). Symbolic interpretative critique Along the way, several things have been noted, more importantly that it is not possible for the managers/CEO of a certain institution to have adequate knowledge to make decisions that have a sensible probability of being the correct decisions. Share prices indicate the interests and precedence of numerous varying parties, with individual shareholders well down the list in regard to influence. The boards in Westpac bank, where board refers to the chief executives and managers have their diverse priorities, which public, too frequently, are only dimly aware. In most cases, boards are so regularly a ‘closed shop’ with changes monitored so as to protect the status quo (Tolbert 2011). Westpac’s board of director which acts on behalf of its stakeholders has the role of ensuring that the bank’s overall activities are appropriately managed against the uppermost standards of business integrity as well as professionalism. With the aim of reinforcing its dedication to sustainable and socially responsible business practices, the board at Westpac bank has set up a Board Social Responsibility Committee. Generally, there is a full statement of the bank’s governance practices that covers the responsibility and behavior of the board and its committees, payment practices, market disclosure, compliance and corporate social responsibility and this is published every year in its annual report. The key goal of the compliance management is to have sector best practice and configuration with the Australian Standard on Compliance Programs. As a result, the board at Westpac often reviews compliance performance against firm goals and evaluation criteria (Tolbert 2011). Westpac bank is dedicated to maintaining a face-to-face banking capacity with each Australian town. This was followed by an extensive community concerns within Australia and Westpac bank has delivered on this commitment. In metropolitan regions, the banks maintains its existing points of representation at the present level and just transfers its bank branches to follow customer traffic flow. Within Australia, Westpac bank has over 800 bank branches countrywide. Any modifications to the existing bank branches, for example the switch to an in-store operation or an amalgamation, is carried out only after at least a twelve week period of advice and education of customers on the effect of any changes to banking arrangements. Where the bank does not offer access to lower cost of ATM transaction controls within rural towns in Australia, Westpac bank prices its branch transactions at the lower electronic rate and the aim of this is to make sure that rural and regional clients are not disadvantaged (Keating 2008). Postmodern critique Westpac bank as one of the Australia’s oldest organization, not just its initial bank but also its first organization, the bank has been an integral element of the Australia social fabric from 1817. With the bank having employed about 23,000 workers, some 5.5 million Australians are choosing to carry out business with the bank and millions of direct and indirect shareholders. Westpac bank is not just all-encompassing within Australian life but the bank also represents a microcosm of the Australian nation (Narube & Whiteside 2010). From this privileged position, Westpac bank acknowledges its responsibility to carry out its business in a manner that makes great contributions in building social capital. The bank is in a pluralist society and hence the cost of sustaining the bank implies that as a business it should accept its obligations. For the Westpac bank, building social capital begins with business fundamentals and handling the substantive matters, finding correctives for wide based society concerns as well as being profoundly involved within the society. This is not just good for the general society but it also improves the society trust in the bank and this is extremely necessary for its business (Ash 2002). Westpac bank has a long history of community partnerships. The bank has been partnering with Westpac Rescue Helicopter services for close to 30 years, has partnered with Salvation Army within the Red Shield Appeal for more than 30 years in addition to working with Australian Mathematics Competition for a long time for the development of numeracy skills for young people in Australia. In addition, Westpac bank has worked on methods of bridging gaps between low income earners and other disadvantaged groups in regard to services’ access. From 1999, Westpac bank has provided fee-free banking services to pensioners, people with disabilities, youths as well as individuals on welfare (Narube & Whiteside 2010). Furthermore, within rural areas, Westpac bank has found that a tradition branch is no longer viable and hence it has changed to more cost-effective and hence sustainable face-to-face services for the society. The bank locates these within existing business and consequently pays a payment to local businesses to run them. Additionally, the bank has long established direct assistance programs to reach across a range of causes; from charitable and welfare support, rescue service, education for the young people, indigenous programs, to the arts. Totally, Westpac bank invests more than $25 million every year into these financial inclusion as well as community projects to assist in strengthening social capital in Australia (Narube & Whiteside 2010). The activities from Westpac bank indicate its genuine dedication to inclusion, fairness in addition to compassion; qualities that Australia’s citizens want to see within the big organizations of the Australian pluralist society. In implementing sustainable and socially responsible business practices, Westpac bank does not only deliver better services to its customers, it is also able to meet its responsibility to its employees and the wider community and improve its reputation. Obviously, this is good for the bank’s loner-term competitive and fiscal position. Basically, adoption of sustainable business practices lowers the risks that Westpac bank faces, regardless of if the risks are fiscal, regulatory or customer based. All this improves the bank’s operating environment and society at large and makes sure that its social license for operating stays firmly within place (Tolbert 2011). Conclusion Westpac bank was established in 1817 and it is the leading provider of banking and financial services within Australia. The bank maintains its offices within the major financial centers worldwide. Respecting the environment and wider society is a step that Westpac bank takes in playing its part in caring for the common good. In doing this, Westpac bank maintains respects for its stakeholders and hence it sustains its profitability. Therefore, the bank caring for its stakeholders as well as the environment and constantly adjusting to current technologies and caring for the society welfare is good not only for society and the natural world, but also good for business. Westpac bank’s sustainability philosophy and its strategies have improved its prosperity and that of the wider society. In this case, everybody is a winner; Westpac bank as well as the society at large. Bibliography Ash, M., 2002, Cultural Contexts and Scientific Change in Psychology, American Psychologist, Vol. 47/2. Hatch, M, & Cunliffe, A., 2006, Organization Theory: Modern, Symbolic, and Postmodern Perspectives, Oxford University Press, Oxford. Hassard, J., 2002, Essai: Organizational Time: Modern, Symbolic and Postmodern Reflections. Organization Studies, Vol. 23/6. Keating, B., 2008, In pursuit of a sustainable supply chain: insights from Westpac Banking Corporation", Supply Chain Management-An International Journal. Vol. 13/3. 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