The paper 'Factors that Potentially Influence Management’ s Strategic Choices' is a wonderful example of a Business Case Study. Commonwealth Bank of Australia is one of the best multinational banks in the world and it has operations in New Zealand, USA, Asia, Fiji, and the United Kingdom. It is commonly known as the commonwealth and it provides several financial services which include, institutional banking, business, retail banking, and management of funds, insurance, broking, and investment services. That aside, the bank, in particular, has employed the Strategic Human Resource Management practices in a number of its operations. Considering the facts that shall come out at the end of this report, one can confidently say that such concentration in the Strategic HRM has had a significant impact on placing the reputation of the bank where it is now.
Currently, the Commonwealth Bank of Australia boasts of being the second-largest amongst the Australian banks with a second position in the Australian securities exchange (Healey, 2005). It is due to this blatant fact that this report seeks to find out the impacts that such strategies in HRM have had on the limited choices that the bank has been forced to contend with. 2.0 Methodology In the pursuit of a detailed study, various methods of data collection were used and they proved efficient.
The most important part of the data collection was through an interview, where a couple of the employees of the bank were interviewed. The interviews proved efficient since they helped to give a clear picture of what exactly was happening in the bank in terms of the Strategic Human Resource Management. In addition, some questionnaires were prepared and clients of the bank completed them.
Those questionnaires contained a lot of what the report actually wanted to know about with regards to the Strategic HRM practices that the bank did employ. Therefore, the main ways through which we managed to get information was through questionnaires and interviews. However, some information was collected from the bank's website and it was useful in the analysis. This was equally informative and helpful in the development of this entire report. 3.0 Objectives of the study This study is basically aimed at achieving all of the objectives outlined below in its course of addressing the issues around factors affecting the management’ s strategic choices: To revisit the factors behind effective management which contribute to the success of the bank To find out the crucial internal and external factors that influence the HRM management in the bank To relay the key to effective organizational culture To determine the system the bank has employed to promote success To discuss the theoretical and conceptual foundation This paper, overall, therefore seeks to look at the various factors that have over time potentially influenced the management of the Commonwealth Bank of Australia’ s strategic choices in Human Resource Management. 3.1 Open Systems Theory Open systems theory (OST) is a modern system that is based on management and it is designed to create healthy, resilient, and innovative businesses and communities in today unpredictable and fast-changing environments (Rothaermel, 2013).
Normally, communities and organizations conduct their business and influence the development of external environments. However, at the same time, it is influenced by the external changes both in the global and local environments. The two-way influential change is commonly known as the active adaptive change.
Organizations and communities are mainly the open systems and they change and influence each other every time, Commonwealth bank has taken the opportunity and is growing with the dynamicity of the society. For instance, the bank has developed a virtual account where one can open the account online and this has helped in increasing the customer. Initially, it was not possible to operate virtual accounts but with advanced technology, it is easy for one to open an account (Rothaermel et al. , 2013). Many multinational companies and more especially Hewlett Packard mainly apply the open system theory (Aguinis, & Lengnick-Hall, 2012).
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