Essays on National Australia Bank: Cultural Change Program Case Study

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The paper "National Australia Bank: Cultural Change Program" is a good example of a management case study. The old culture was a profit-driven culture which was characterized by excess risk-taking behaviors, and sacrificing ethical behaviors to make profits. Other major weaknesses include lack of accountability, distrust, lack of teamwork, inability to allow different ideas or perspectives, and lacked responsibilities. The culture was also characterized by poor governance as a result of a lack of operations transparency and responsibility. Another problem included employees' negligence and lack of a sense of ownership such that the employees acted as if they were not part of the company.

The only strength in this culture was that the company worked to ensure a maximum profit by lowering the operation cost. A profit-driven company seeks to generate organization wealth before considering anything else. It normally evaluates potential services, products, and market to recognize the most profitable avenues. These avenues are followed without caring about other organization aspects as long as the company manages a profit that meets the organization projection. One of the strengths of a profit-driven culture is that it focuses more on reducing the cost of operation and thus maximizing the organization's profit. This kind of culture has a number of weaknesses which include that an organization is more likely to lower the product or service quality when trying to reduce the operation cost.

Another weakness is that, in an effort to minimize cost, the culture concentrate more on workers ability to reduce the operation cost, than on how to improve their services to attract more customers. Any new strategy that can be employed to better the organization operation focuses on the cost first before anything else.

Another weakness of this culture is that leaders may be tempted to employ unethical measures just to make a profit. The dysfunction management systems result in a lack of workers and the management attachment to the company. Workers are not given an opportunity to express their views and ideas regarding the organization management. This makes them feel less important and as a result, they tend to be less concerned about the organization welfare. This makes them fail in making any effort to enhance organizational operations.

Lack of transparency and accountability reduces the desire to ensure accuracy and effectiveness in the company. It also promotes distrust as most workers will be involved in financial manipulation process and be expected to remain quiet. Therefore, communication and information sharing becomes a problem in the company. This kills the spirit of teamwork as every worker tends to be silent about the unethical acts in the company. The company's board of directors also refuse to take charge and follow up on organization performance and operations. This makes it easy for other leaders to manipulate the financial figures without fear, for there is no accountability required.

The old culture can be described as a dysfunctional system without order or direction. It was highly characterized by selfish individuals whose interests were more personal based than organizational based (Shahzad et al. , 2012). New Culture The new culture is client-based, which is characterized by a number of strengths that included investing in reputation, culture and people. To achieve this organization prioritized on integrated the three identified aspects in strategic objectives, vision and mission statement of the company.

A good reputation is very essential in marketing. A brand sells more when the company associated with it has a good reputation. The culture also promoted transparency and collaboration. The two are very essential in enhancing the company's performance. Transparency promotes investors trust and thus, playing a role in attracting more investors into the company. Collaboration promotes accountability and sharing of ideas. This enhances the organization performance and competitiveness in the market (Madu, n.d. ). The new culture clearly denounced the old dysfunctional culture by launching a new company logo.

It was a way of welcoming the public who were disappointed by the previous management to try the company again as if it was a new organization without previous history.  


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Shahzad, F., Luqman, R. A., Khan, A. R., & Sgabbir, L. (2012). Impact of organization culture on organization performance. Interdisciplinary Journal of Contemporary Research in Business, 3(9), 977-985.

Storey, J. (2001). Human resource management: A critical text. Belmont: Thomson.

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