N000193 | Management | The Analysis Of The Management Issues

Write a report on the analysis of the management issues which was faced by Commonwealth bank in Australia.

Overview of Commonwealth Bank

Commonwealth Bank of Australia is one of the multinational banks of Australia which has their business across different other countries such as Asia, United States and United Kingdom. The bank tries to provide different kinds of financial services such as business. Retail and other investment and broking services (Commbank.com.au, 2018). The headquarters of the company is in Sydney, Australia and the number of locations include more than 1100+ branches. The areas served the company is worldwide and the revenue which have been earned by the company is more than A$26.005 billion and till 2017, the number of employees working in the organization.

Analysis of the Issue in Commonwealth Bank

The main issue which have been found in the Commonwealth Bank is relating to the loss of the different customer details which has affected the firm in a negative manner. Furthermore, this has been seen that due to some fault of the employees in the organizations, the important and essential information of the customers were lost and this affected the brand image of the respective bank. The main reasons for losing the details regarding the customers in the bank are as follows:

• Firstly, the management of the bank was not strong in nature as the employees were not properly trained regarding the maintenance of the data of the customers of the organization and this led to loss of the details of the customers as there was no such planning of the bank (Bratton and Gold 2017)
• Secondly, it was seen that the system or the database which has been maintained by Commonwealth Bank was not strong enough and the data were not being saved by the company as well which led to huge loss of data which were important in nature
• Lastly, the respective bank did not use the online form of saving the database which was a huge mistake committed by them and this was ineffective in nature

Resolution of the Issues in Commonwealth Bank

There are different issues related to the loss of the customer details in the market which was faced by the Commonwealth Bank. However, these problems are required to be handled by the company in an effective manner which will be helpful in reducing the issues in a positive manner. The respective bank needs to take different steps in order to reduce the different grievances of the customers along with prevent the loss of the important details of the customers. The security breach can be resolved with the help of the different kinds of management models which can be implemented by the company in

Steps to be Followed by Commonwealth Bank

• Proper identification of the issues and list the different possible solutions and evaluate the respective options with proper professional development
• Furthermore, the prioritize the problems and focus on the problems or the mistakes which can be controlled by the company along with implementation of full disk protection which will help in securing the data breach of data
• Creating disaster plan which will assist in reducing the breach of the data as this will modernize the data encryption procedure and this will help in reducing the data which has been stole (Meyers and Van Woerkom 2014)

These are the different major steps which are required to be followed by Commonwealth Bank in order to solve the different issues in an effective manner as this will help in maintaining a strong customer client base. The main aim of the management is to attain the different organizational goals in an efficient and effective manner through proper planning, organizing and leading the organizational resources. This is essential in nature to resolve the loss of customer details in the organization which will make the functions more effective and the brand image of the organization will be improved as well.

Implementation of Change Management Model in resolving Loss of Customer Complaints

With proper planning and organizing of the different tasks performed in the organization, the professional development will be enhanced in an effective manner. The McKinsey’s 7S model can be used by Commonwealth bank which will help in improving the different strategies which will help in resolving the issue. The seven major aspects of the company have to be analysed such as:

• Strategy which can be used is security has to be made strong and this will lead to no security breach as well (Piazza and Castellucci 2014).
• Structure is the other option in which the company is required to be diversified which will enhance the change management strategy effectively.
• Systems is required to be enhanced by the company which will help in
• Shared values are the other S which is not efficient, however the company needs to diversify the tasks within the organization (Kipping and Üsdiken 2014)
• Style which is being used is not as effective as there has been security breach, however with the help of improving the style such as inclusion of the system which will help in storing the data such as with advancement of the technologies (Geisler and Wickramasinghe 2015)
• Staff are the main element in which diversity is required by providing them with proper training in handling the different tasks in an effective manner (Serenko and Dumay 2015).
• Skills is the other technique in which this was seen that security safety skills are required to be included which will improve the efficiency of the tasks performed by them (Kolk and Rivera-Santos 2018).

With the help of the change management model, this can be ensured that Commonwealth Bank needs to train the employees regarding the emails as these can be suspicious in nature (Serenko and Bontis 2017). Furthermore, installation of the endpoint protection software along with secure web gateway can help them in identifying and blocking exploit kits before they infect the systems in an effective manner.

Conclusion

Therefore, this can be concluded that the Commonwealth Bank suffered from huge issue which is relating to the breach of data. This has been seen that the loss of the customer details hampered the brand image of the company and there were no such diversification and planning among the employees in the organization. Furthermore, this has been seen that with implementation of McKinsey’s 7s framework model, Commonwealth Bank tried to reduce the breaching of the data and this helped them in managing the different kinds of issues effectively by application of the 7S.

References

Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.

Geisler, E. and Wickramasinghe, N., 2015. Principles of Knowledge Management: Theory, Practice, and Cases: Theory, Practice, and Cases. Routledge.

Kipping, M. and Üsdiken, B., 2014. History in organization and management theory: More than meets the eye. The Academy of Management Annals, 8(1), pp.535-588.

Kolk, A. and Rivera-Santos, M., 2018. The state of research on Africa in business and management: Insights from a systematic review of key international journals. Business & Society, 57(3), pp.415-436.

Meyers, M.C. and Van Woerkom, M., 2014. The influence of underlying philosophies on talent management: Theory, implications for practice, and research agenda. Journal of World Business, 49(2), pp.192-203.

Piazza, A. and Castellucci, F., 2014. Status in organization and management theory. Journal of Management, 40(1), pp.287-315.

Serenko, A. and Bontis, N., 2017. Global ranking of knowledge management and intellectual capital academic journals: 2017 update. Journal of Knowledge Management, 21(3), pp.675-692.

Serenko, A. and Dumay, J., 2015. Citation classics published in Knowledge Management journals. Part II: studying research trends and discovering the Google Scholar Effect. Journal of Knowledge Management, 19(6), pp.1335-1355.

Commbank.com.au. 2018. Personal banking including accounts, credit cards and home loans - CommBank. [online] Available at: https://www.commbank.com.au/ [Accessed 9 Aug. 2018].