In the recent time there has been a change in the banking structure. The organizational structure of bank 100 years ago was different from what we see in a typical bank. One can easily see the changes in the banking structure in Melbourne. Almost every organization working in the global environment is subject to change. This assignment represents the changes occurred to the banking organization over a period of hundred years and identifies the issues that have driven those challenges (Education, and Robbins, 2011).
The organizational structure imitates the hierarchical structure of different operation within the banking system. With advancement in information and technology the organizational structure is changing in a multifold way. An organizational structure is a formal design for managerial hierarchies. A banking organizational structure outlines the operational strategies. Organizational structure plays an important role in shaping culture and companies to shape necessary changes in order to remain competitive. Changes over the timeline helps in adapting changes in the banking organization (Adler and Gundersen, 2007).
The changes in the banking organization are important in the integrated banking mechanism. The changes include both the simple and the complex changes required for increasing the efficiency in an organization. The purpose is to increase the overall strength by incorporating effective changes in the banking organization. The banking organizations are responsible for make certain that the suitable changes have modified the organization on a long run (McShane and Glinow, 2011).
With a change in the global economy the banking system has witnessed major changes over the past 100 years. The world has experienced remarkable change in terms of technology, capability. There is still a glaring need for progress in many areas due to the rise of globalization. The change in the international financial flow has been dramatic liberalizing the overall financial system (Joshi, Cahill and Sidhu, 2010).
The repot furnishes the importance of changes in the banking organizational structure due to different change elements. Further, it furnishes the need to manage the existing business and a need to develop innovations.
An exploratory boom in the Australian property market in the year 1880 was the reason behind the Australian banking crisis of 1893. This has led to failure of failure of 11 commercial banks. The banking structure meanwhile has undergone major changes in the last century. The method and procedure to conduct banking system has changed speedily. One of The most obvious changes seen in the large number of bank is the merger. The average size of the bank has increased over the years in the manner they are operating. Most of the impressive changes in the management is related with the purpose of getting the way done. The growth of internet is important for gaining financial services by gaining a competitive edge (Merret, 2006).
The Australian banking system is undergoing a significant change since the great depression. The banking organization has merged largely in the last 10 years. Secondly, the banking organizations have begun offering services through internet and lastly there has been new legislation to combine the banking function with the financial services. The emerging changes in the NAB banking and finance have allowed the female talent from institution to deal with the clients. The nominated characteristic adds a keynote from personal brand expert. The brand expert includes a panel discussion with the industry experts from NAB customer and partner organizations.
Merger and Amalgamation have become an ongoing trend for a long time. It has become one of the way through which the banking organization are evolving. The overall process of merger is utilizing new laws that allowing banks to grow bigger across the state. There was other type of mergers that were undertaken to cut costs. This suggests that, in order to achieve goal more often it is important to develop a better equipped environment (Colquitt, Lepine and Wesson, 2011). Finally, some of the mergers almost certainly happened because of the different participants. In 1835 a London-based bank – Bank of Australasia was formed that in due course become the ANZ Bank. In 1951, the bank merged with the Union Bank of Australia. Another example of merger in the history of Australian bank is when a London-based bank formed in 1837 was merged in 1970. The English, Scottish and Australian Bank Limited merged . Lastly a further London-based bank which was formed in 1852 was then the biggest merger resulted in Australia and New Zealand Banking Group Limited.
In the recent time, the merger activity has fallen down. The large banking organization has attained a nationwide coverage by gaining incentive. The internet banking has captured a significant place. In case if the merger system arrives back it will change the organizational structure. Previously the banking structure was not that typical as it is now (Luo, Li, Zhang and Shim, 2010). The organizational structure is important for delivering effective business. In May 2015, NAB long-established its demerge Clydesdale and Yorkshire Bank business in the UK. They initiated by an IPO (initial public offering). The business was somewhat floated on the London Stock Exchange and Australian Securities Exchange under a new holding company, CYBG plc.
Another important change in the history of Australian Banking is the growth in the internet banking. Whereas the merger has been an important aspect in the banking history there have been changes in the internet banking process. By the end of 1999, there were significant changes in the internet banking system where customers were using on-line facilities to conduct day-to-day functions. Over the last 2 years there has been an increase in the online transactions. This trend is expected to be continued. By far the large banking organizations are committed to the online services than the small bank. A large section of the nationalized banks are using web based transactions in order to gain capacity (Grabner-Kräuter and Faullant, 2008). These large banks tend to offer an array of services through their websites. A large number of nationalized banks are providing with services like brokerage, fiduciary, and insurance services. This has changed the entire history of the banking system. The small banks are cautiously matching up with the large banks by outsourcing their information and technology department. There are some argue by the analysts that large banks will keep their position above small banks. This will allow creating a recognized bank among consumers (Groenewegen and McFarlane, 2014).
Banks are not only the financial company to offer services though internet. Studies shows that in recent year there have been a tremendous growth in the online brokerage companies by letting investors to buy and sell. The companies are allowing the customers to transfer funds. Some of the Non-banking financial companies have begun offering mortgaged services through internet. The practice of Internet and branch banking differs amid institutions mainly as a consequence of the customer demographic profile. There has been a difference in the products that are been provided by the internet banking services (Jones, 2010).
There has been a change in internet banking in the mid 90s. A big jump occurred with banks setting up their websites for consumer’s accessibility. This allow in accessing both product and contact information. Within a few years the banks launched internet banking functionality in order to allow consumers to manage their banking account. . This has helped in managing the overall process by allowing banking organizations to conduct online transactions in an easy way (Jiménez-Jiménez and Sanz-Valle, 2011). They were allowed to pay bills through online payment.
The financial industry is known for embracing changes. NAB is one of the four largest financial institutions. This is to allow banks to achieve an efficient structure in order to manage the functions in an appropriate away. The financial institution in last century has made many big cultural decisions. In January 2009, CEO Cameron Clyne began an approach of reputation change, wealth management and a spotlight on domestic markets. An increase in overall diversity at workplace has created challenges for the banking organization. Change is a pervasive element that required to be managed in a significant way. Constant change in the banking structure has become the reality to be taken care. The organizational structure has undergone change due to involvement of different departments within a banking organization. In the recent time most of the banking organizations have become complex (Teece, 2010). In a competitive banking atmosphere, there are several factors that affect banking organizations in today’s changing skills of bankers require to function successfully. The global spread of government deregulation is resulting in an increase in the number of competitors in market. Many financial firms have become market driven. The changing demands of the customers are posing a question on a banking structure. The newer activities need the engagement of management and staff in an effective way that can dedicate itself to surveying the following requirements:
These are the essential factors that help in improvising changing customer needs. Likewise, the technology of financial services is evolving with a change in the overall production and delivery mechanism. There is a change towards computer-based systems and the Internet that has assisted in financial firms. At the same time, automatic book-keeping has abridged the time manager’s employ in customary operations. This has permitted a greater opportunity for planning new services and thinking creatively about how to better serve customers. The organizational structure is important for delivering effective business. There are so many types of banking organization in the today’s competitive banking scenario that creates distinction between the different types of organization in a systematic way. Bank provides financial product and services in exchange of the interest rate and fees. The Banking executives should have knowledge of composite financial instruments to take an effective decision. It has become important for the banking organizations to manage asset and interest rate risks. In order to manage a strong organizational structure it is important while presenting a variety of financial services (Shih, Chang and Lin, 2010).
Executives
The bank executives are responsible for managing the regular activities at bank. His focus is to manage the activity by helping the customers in decision making. There are different on-role jobs given to the banking personnel to attain an effective role. There are separate chief of wealth management and client services whose role is to manage their wealth. The role of executives is to work closely with the board members. This is a modern day banking organizational structures focusing on giving maximum customer satisfaction. The separation of departments to carry out activities is prevalent in today’s scenario. This is been providing clients as well as employees with an active solution to a problem (Arnold, 2009).
Each executive member is designated with a small team to work closely to manage community banking, executives to assign senior leaders to manage the distribution process. The consumer lending process is divided into various parts that allow focus on different departmental functions. It is the role of each director to own and implements the strategic vision and direction of their business unit. Each director own and implement a strategic vision and direction to the banking organization.
The role of bank manager is to provide direction in order to implement the work in an effective way. The different manager working at level allows in managing the banking activity in a proper way. One of The most obvious changes seen in the large number of bank is the merger. The average size of the bank and the area in which they operate has increased. The recent change in the organizational structure has allowed management of bank in a significant way. The bank in the recent time has helped in managing activities in a way that allows in gaining success. In the last 100 years the organizational structure has changed causing a difference in attributing activities. Large number of nationalized banks are providing with services like brokerage, fiduciary, and insurance services in adding together to balance inquiry and funds transfer.
Staff in the banking organization is responsible on the front lines. It is a process that depicts the face of the bank to clients and potential employees alike. The operational staff including HR representative, customer service representatives, and sales staff etc to take care of different operations. It is however important that the Community banks offer a broader variety on- line employees like tellers, personal bankers etc. There was other type of mergers that were undertaken to cut costs. This suggests that, in order to achieve goal more often it is important to develop a better equipped environment. The organizational structure in the banking organization in Australia is managing activities (Klein and Saidenberg, 2010).
This is to enable an effective framework in order to allow effective results in the current banking scenario. The overall process to introduce a change is to introduce innovation at different level. This is important to manage changes in the banking organization in order to gain effective results. The innovative practice in banking structure can be seen while comparing it with the previous time period. Today’s banking organization is more systematic and more dependent on technology. This has allowed the banking organizations in gaining capacity over other. Innovation in the banking sector has become a new trend in order to manage the activities (Robbins and Judge, 2012; Nahavandi et al 2013). While comparing the Australian banking history one can easily understand that the banking strategies in order to gain a competitive edge. The banking organizations are responsible for make certain that the suitable changes have modified the organization on a long run. This has allowed banks to implement the changes in a proper way. This is to allow the banking system to gain a competitive edge over other. Innovation in the system is necessary to gain competitiveness (Herring and Carmassi, 2008). This is to allow the new banking mechanism to work in synch with the appropriate structure (Pinder, 2014). The regulatory measures in the banking sector have changed the overall way to conduct banking activities. This is to allow banks to cope up international pressure (Gup, 2007).
Conclusion
To conclude, there is a consistent pressure from the external banking organizations causing a long time effects on the procedure. This is to create a general awareness in banking structure so as o get work done in an appropriate way. It is largely been seen that with advancement in information and technology the organizational structure is changing in a multifold way. In this condition it is important to implement innovative practices to make a remarkable advancement. The world has experienced extraordinary change in terms of technology, capability. There is still a glaring need for progress in many areas due to the rise of globalization. This is to ensure consistent productivity in overall banking process hence allowing them to gain strength on a long run. The changing structure in the NAB dockland shows that we are still undergoing a change. This has enabled them to attain objectives in the changing business scenario. Innovation is the necessity that requires implementation in a proper way.
References
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Arnold, P.J., 2009. Global financial crisis: The challenge to accounting research. Accounting, Organizations and Society, 34(6), pp.803-809.
Colquitt, J., Lepine, J.A. and Wesson, M.J., 2011. Organizational behavior: Improving performance and commitment in the workplace. McGraw-Hill Irwin.
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Luo, X., Li, H., Zhang, J. and Shim, J.P., 2010. Examining multi-dimensional trust and multi-faceted risk in initial acceptance of emerging technologies: An empirical study of mobile banking services. Decision support systems, 49(2), pp.222-234.
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