National Australia Bank Managing Change - Case Study Example

MANAGING CHANGE By Name Course Instructor Institution City/State Date Managing Change 1.0 Executive Summary Organizational change is concerned with modifying as well as reviewing business processes together with management structures. Business organisations have to adapt to endure bigger competitions, but importantly accomplishment must not result in self-satisfaction. To be ahead of the competition, business organisation must search for ways to carry out their activities more resourcefully and efficiently. In this regard, organisations must not fear change; rather they have to embrace change as a means to laying down the platforms for continuing success. The report seeks to examine the National Australia Bank: Cultural change program with regard to the strength and weakness for each cultural perspective, and illustrate the driving and restraining forces for change in a force field diagram. The report will further discuss the cultural change perspective that was adopted by NAB during its change program, and suggest future recommendations to the CEO or HR team at NAB. Besides that, the report critically analyse Ben & Jerry's (A): Team development intervention with regard to the factors that are important to consider in determining whether a company or team is over- or under-organised, implications for planning an OD intervention, if team building a good way to launch an OD effort, and afterwards provide future recommendations. 2.0 National Australia Bank (NAB): Cultural change program 2.1 Strength and weakness for each cultural perspective describe Based on Kelemen and Papasolomou (2007, p.747) study, there are different cultural perspectives which have been expressed academic literature in the hypothetical nature and have acknowledged three cultural perspectives namely: Integration; Differentiation; and Ambiguity Perspective. Strength With regard to strength for Integration Perspective at NAB: Dellaportas et al. (2007, p.1143) posit that it is most extensively employed perspective for cultural change and may be revealed in extremely visible as well as tangible way across the business firm. There subsists an agreement in the whole organisation and it may be contemplated by means of distinct organisations’ mediums such as formal and informal decrees, performance metrics and targets, organisational goals as well as management practices that direct the customs stories, as well as expressions (Kelemen & Papasolomou, 2007, p.747). With regard to NAB, Dellaportas et al. (2007, p.1143) posits that the organisational strategies turned out to be customer-oriented. So as to generate noticeable manifestations of its needed culture, Dellaportas et al. (2007, p.1143) claim that NAB priorities were observed in the mission statements, vision as well as the strategic goals. Differentiation Perspective on its part deems culture to be a merger of diverse cultures amalgamated or being gathered which mutually join within the organization boundary. Given that it is more concentrated on the discrepancies which are centred at the core of culture it offers organisation a chance to correct such discrepancies thorough enhanced culture. In case, the discrepancies are known, Stein and Vanessa (2011, p.480) assert that a range of cultural architects can be recognized in the organisation both externally and internally. On the other hand, Ambiguity Perspective neither pursue the differentiation nor the integration cultural perspective view, instead it recommends that the connection subsisting between the cultural manifestations is short of clarity with them comes total ambiguity and inconsistency (Kelemen & Papasolomou, 2007, p.748). Ambiguity Perspective is seen as more rational concerning culture, since it permits the NAB workers to bring about the issues with which oppose (Stein & Vanessa, 2011, p.480). After the issues are established by means of this perspective, resolution steps can be taken and this as well ensures NAB employee contentment and participation in NAB culture. Weakness The weakness of Integration Perspective is that if the perspective has any attribute that is not favourable, it gets conveyed across the NAB for the reason that it is available across the organisation. From time to time culture endures invisibly making it hard to detect in the organisation and may as well prove to be destructive. Based on Differentiation perspective, a range of discrepancies lying at the centre of culture both externally and internally are recognized. This perspective weakness is that culture is being portrayed as a set of diverse manifestations, which may be conflicting to one another (Stein & Vanessa, 2011, p.481). On the other hand, in case of ambiguity perspective the NAB workers may concur on a number of some issues together with the management, but sometimes they may pose as being uninformed, or could be totally uninterested or may totally oppose the entire line of management. As a consequence the culture ambiguity perspective within NAB results into issues which may lead to discontent among NAB workers as well as personnel (Stein & Vanessa, 2011, p.481). 2.2 A force field analysis using Kurt Lewin's change management model, clearly illustrating the driving and restraining forces for change in a force field diagram Kurt Lewin’s The ‘ Force Field Analysis Model assist in depicting the present performance level or being in any equilibrium state between the driving forces that support the upward movement as well as are meant for change  whilst the restraining forces deject this equilibrium by being in opposition to change (Weick & Quinn, 1999, p.362). Therefore it signifies that the present equilibrium is maintained for the reason that the forces the driving forces are evenly balanced by the restraining forces (Kruglanski et al., 2012, p.3). Figure 1: Force Field Analysis Whilst managing change or handling organisational change or responding to change, Weick and Quinn (1999, p.368) posit that both driving forces and restraining forces must be considered, because both set of forces are extremely much valid (Burnes, 2004, p.982). Kurt Lewin recommends that long-term forces which oppose the change must be decreased instead of heightening the change forces. Kurt Lewin further recommended that the changing the forces will assist in easily maintaining the status quo instead of increasing or changing the change forces (Weick & Quinn, 1999, p.364). Force field Analysis Restraining forces (against change) Current equilibrium Driving forces (for change) Kevin Levin’s Model pursues three steps: unfreezing is the first step, whereby the forces’ strength which is dictating the present equilibrium is being decreased (Weick & Quinn, 1999, p.372). Moving is the subsequent step whereby, the new-fangled organisational principles, approaches, and behaviours are developed to assist in moving the organization forward. Refreezing is the final step, whereby the forces are stabilised once the changes have been made, in order to maintain a new equilibrium (Weick & Quinn, 1999, p.365). However, from time to time Kevin Levin’s Model is disapprove for the reason that if the firm is in dynamic setting it is expensive to ‘refreeze’, in that case refreezing result in the organisation turning out to be demure and fusty (Weick & Quinn, 1999, p.363). In that case, Lewin affirms that Refreezing must not be deemed as a lasting stage instead it is a temporary, but extremely crucial for achieving some form of organisational stability. Each time a change is executed in organization, the equilibrium point moves, and to move the equilibrium either the resistance forces must be reduced or eliminated or driving forces must be increased or added. Still when the driving forces are heightened the intensity of resistance as well heightens, so it is advisable for NAB to lessen the resistance. This may be achieved through: motivation, participation, or devotion. Principally the response to change comes in form of recognition, indifference (handle, harness), and resistance (Dellaportas et al., 2007, p.1446). 2.3 Cultural change perspective was adopted by NAB during its change program There subsists many limitations being acknowledged by the Australian Prudential Regulatory Authority (APRA) in the NAB internal control framework and it as well maintained that the cultural issues were at the centre of NAB failure (Dellaportas et al., 2007, p.1444). To obtain a clear comprehension of any individual’s cultural construct as well as processes analysis, one can utilise symbolism. Still culture analysis through symbolism has inadequate level of measurement; thus, it fails to offer a convenient modus operandi for change measurement, analysis as well as betterment. Dellaportas et al. (2007, p.1445) believe that NAB cannot, deal with what they are not capable to comprehend. This offers the basis why the researchers as well as practitioners must depend on the functionalist-integrative perspective insight of change in culture in order to obtain unfathomable view into the culture nature as well as how well to handle the culture to realize the desired organisational goals. According to Jain and Thomson (2008), both the previous and the present executives of NAB share this functionalist-integrative perspective insight of culture, offered the platform for APRA to carry out the formal research into the official Banks Trading losses. The cultural functionalist-integrative perspective underlines the causes which are widespread in the entire organisation, but there is likelihood that the trading room for foreign currency preferences wherein NAB incurred loses should have been a completely disconnected subculture to the organisation. This according to Stein and Vanessa (2011, p.482) proves that NAB’s trading room subsisted as organisation’s subculture which implies that the scoundrel brokers normally function in the functionalist-differentiation culture. NAB opted integration perspective during its change program, and to achieve the cultural change some steps were taken: the bank’s key priorities were readjusted so as to make NAB a customer-focused organisation (Dellaportas et al., 2007, p.1143). The bank believed in investing in its reputation, people as well as culture, and so begun differentiating by means of culture and reputation for community, workers, and clients benefits. Furthermore, the NAB perceptible cultural manifestations through mission statements, strategic goals, and vision contemplated on whole NAB group portfolio. Besides that, NAB brand was re-launched with a totally ground-breaking and new logo, and to recover the public confidence, NAB used the 2006 Melbourne Commonwealth games to launch its brand and lobo. Apart from that, NAB concentrated on community development, created structures that were team-oriented, and to help restructuring every worker was at new Docklands Headquarters under one roof. 2.4 Future recommendations to the CEO or HR team at NAB In recommendation, the new NAB appointed leaders must make mindful efforts to effectively put into practice the cultural changes. Besides that, NAB focus must not be on the process instead it must be on the essence of the issue, given that in the organisation there were no understandable responsibilities and accountabilities; thus, the management must critically fix these issues to enable successful realization of change. Undoubtedly, the bank has an excellent culture of news, which stops appalling news from surfacing, this according to Jain and Thomson, 2008 (p.105) is serious setback for the reason that it is advisable to deal with the setback or appalling news at its emerging stage instead of when it becomes bigger. The bank pursues the bureaucratic culture and it always make things overcomplicate, thus through change and advancing the organizational their responsibilities as well as powers, and if the company’s leadership espouses all the aforementioned measures then they will manage to handle organisational issues systematically and move ahead of this predicament state of affairs and restructure its new-fangled brand image. Furthermore, the primary methods utilized by NAB leaders for support as well as driving in the organisational cultures must be changed. Concentration must be paid not to depict the bank as profit oriented instead it must be totally customer-focused. Bearing in mind that focusing much on profit portrays short-term returns as well as generates climate suitable for corrupt behavior; thus, NAB must develop appropriate response to crisis strategy. 3.0 Ben & Jerry's (A): Team development intervention 3.1.1 Important factors to consider in determining whether a company or team is over-organised or under-organised Team Building according to Beeby and Simpson (1998, p.355) is often utilised in OD to slacken off an over-organized system that is excessively bureaucratic as well as rigid. For this reason, team building is intended for offering structure to a system that is under-organized. In this case, this part will examine factors that are imperative to take into account when determining whether a team or company is over-organised or under-organized. This can be achieved by considering the concerns as well as strengths. The strengths that must be handled include: high dedication to the company as well as its mission; norms of sincerity and frankness; stylish in addition to coherent management; high concentration in learning and growth; and general manager together with founders’ employee role-models (Appelbaum, 1997, p.457). On the other hand, the concerns that have to be dealt with include: failure by systems and company/team to keep pace with development; shortage of comprehensible structure roles as well as teamwork; lack of universal priorities, direction, as well as mission, the teams are stretched to the limit; and, the company’s manager or founders’ are both the greatest strength as well as weakness. 3.1.2 What are the implications for planning an OD intervention? Planning an OD intervention in this case was desirable for the reason that no one was taking accountability for everything. Sadly, they did not have structure or guidelines to follow in their work. Ben and Jerry desired to make it an entertaining work setting for the family, and in so doing they had no means to put power in to effect (Waddell et al., 2011, p.521). Therefore, if things broke down no one would take charge or someone take responsibility. Waddell et al. (2011) believe that if Ben and Jerry had placed authority over excitement this might have been shunned. Theoretically, planning organisational development (OD) interventions has two fundamental attributes: choice of intervention as well as planning for the intervention implementation. Beeby and Simpson (1998, p.358) posit that OD interventions are unsuccessful for scores of reasons, but ordinary ones consist of intervention bad choice or pitiable execution. Intervention choice must be steered by the first diagnosis. If the company has knowledge of what is wrong, then they can select an appropriate remedy. In the same way, the company must not all the time anticipate existence of something erroneous. Organisations, akin to individuals, are multifaceted and have a tendency to having a blend of setbacks, a number of them are related while others not. For instance, a company that has discontented workers time and again has other issues, for the reason that workers from time to time concentrate on their remunerations more than they usually would when there are issues with things like evocative work, leadership, job satisfaction,, amongst other factors. Therefore, organisations must handle setbacks in some areas, prior to the mitigation of unhappiness. 3.2 Is team building a good way to launch an OD effort in this case? Basically, team building is an endeavor wherein a team studies its individual working process jointly and acts to generate an environment that values and supports the team members’ contributions. The energies of team members are directed toward task effectiveness, problem solving, as well as resources maximization to realize the purpose of the team. Level-headed team building acknowledges that it is impossible to completely separate performance of one team member from those of others members. It appears a somewhat reasonable justification, but unquestionably has important concepts such as goal-setting, leadership, confidence, thoughtful, innovativeness, ownership, inspiration, admiration, interdependence, and primarily communication. Team building as an intervention, is merely a way to achieve either a poor or new performing team on the right track, usually with undertakings that make those peeking vital concepts stronger. Any organizational team that possess every of the abovementioned concepts and has balanced them effectively will without doubt be harmonious, competent and industrious while at the same time meeting organisational goals and objectives as well as adding value to the company. According to Pain and Harwood (2009, p.523), team building is a development intervention in the organization that involves aforethought activities to improve performance of integrated and available teams. The concentration is principally on tasks, but as well handles affective as well as interpersonal elements of teamwork.  So that an organization reaches its potential, it has to resourcefully deploy its human assets, for maximum resourcefulness, productivity, as well as synergy. This can only take place if people work collectively, and this form of extremely concentrated dedication is eventually a personal behavioral resolution made by all workers. To launch an OD effort, the issue of dealing with personal dedication to the team, prevailing over self-esteem behaviors, insufficient teamwork process as well as skills, and developing a wide-ranging and participatory workplace must be solved, and this can only be achieved through team building. 3.3 Recommendations Teamwork is undoubtedly a crucial component of any organisation success, and so when there is collaboration in the team, great achievements can be realised. However, when a team is unable to triumph over barriers, the outcome can be demoralizing. Organisations must realise that an effective teams are those whose members have clear roles, who have goals in position as well as whose members understand how to effectively communicate amongst themselves in spite of their differences. In this regard, the organisation must carefully choose Team bearing in mind that most teams are built by putting randomly selected persons together and providing them a function. According to Beeby and Simpson (1998, p.355), teams that are cautiously designed have a tendency to be the most successful since every member of the team come in with a distinctive set of skills that is pertinent to the organization development. Each team member must as well be in a position to effectively communicate and share a general common goal. Besides that, the organisation must clarify the roles of team members; therefore, all members of the team must have a comprehensible vision of what they are in charge for in the team. The objective is to make all team members accountable for making the team more productive. Every time the team starts wandering away from its goals, the suitable team member must make sure things are back on track. For organization development, the teams must have established goals; for instance, all members of the group may be required to finish personal tasks prior to a certain date so that when the tem meet, they collectively concentrate on the rest of the project. In case one member fails to finish his/her part punctually, it will undoubtedly hold-up other members from finishing the project as intended; thus, goals have to be decided before starting any project. Aside from that, the organisation must encourage team building exercise, so as to have a little excitement, learn a number of new skills as well as create long-lasting connections with other team members. 4.0 References Appelbaum, S.H., 1997. Socio-technical systems theory: an intervention strategy for organizational development. Management Decision, vol. 5, no. 6, pp.452-63. Beeby, M. & Simpson, P., 1998. Barriers, boundaries and leaks in an organization development intervention. Leadership & Organization Development Journal, vol. 19, no. 7, pp.353-61. Burnes, B., 2004. Kurt Lewin and the Planned Approach to Change: A Re-appraisal. The Journal of Management Studies, vol. 41, no. 6, pp.977-1002. Dellaportas, S., Cooper, B.J. & Braica, P., 2007. Leadership, Culture and Employee Deceit: the case of the National Australia Bank. CORPORATE GOVERNANCE, vol. 15, no. 6, pp.1442-52. Jain, A. & Thomson, D., 2008. Corporate governance, board responsibilities and financial performance : the National Bank of Australia. Corporate ownership & control, vol. 6, no. 2, pp.99-113. Kelemen, M. & Papasolomou, I., 2007. Internal marketing: a qualitative study of culture change in the UK banking sector. Journal of Marketing Management, vol. 23, no. 7-8, pp.745-67. Kruglanski, A.W. et al., 2012. The Energetics of Motivated Cognition: A Force-Field Analysis. Psychological Review, vol. 119, no. 1, pp.1-20. Pain, M. & Harwood, C., 2009. Team Building Through Mutual Sharing and Open Discussion of Team Functioning. Sport Psychologis, vol. 23, no. 4, pp.523-42. Stein, J & Vanessa, J 2011, “Case Study 3 – national Australia Bank: Cultural change program, in: Waddell, D, Cummings, T & Worley C 2011, Organisational Change: Development and transformation, Asia Pacific 4th edn, Cengage Learning, pp 479-483. Waddell, D, Cummings, T & Worley C 2011, “Case Study 8 – Ben & Jerry's (A): team development intervention, in: Waddell, D, Cummings, T & Worley C 2011, Organisational Change: Development and transformation, Asia Pacific 4th edn, Cengage Learning, pp. 516-527. Weick, K.E. & Quinn, R.E., 1999. Organizational Change and Development. Annual Review of Psychology, vol. 50, pp.361-86. Read More