SECTION AQ: 1. From the structural frame, and using an appropriate balance of theory and practicalevidence from the case, identify and discuss the structural issues relevant to transformationalchange. What would be the benefits and limitations of taking a structural perspective?Issues Pertaining to Structural ChangeBefore the cultural transformation occurred at ANZ bank, the bank was in a crucial state. It wasfacing the following issues from structural frame perspective:Eiffel Tower Culture- the ANZ band had top-to-down culture where there was a bureaucraticdivision of various roles and functions. ANZ culture was steep, symmetrical and narrow at thetop. Each higher level had clear function of holding together the levels beneath it. Thesubordinates had to obey the boss because of their roles.Poor Management- the bank failed to comply with its managerial processes and was under baddebts. It had increased operating and financial costs and decreasing market shares.Low Employee Morals- the people working at bank were not happy due to the bank’s failure tounderstand the employee values and comparing them with its own.No Customer Satisfaction- before the evolutionary change in the ANZ bank, no preference wasgiven to the customers that resulted in the low customer satisfaction and no customer value.Community- before McFarlane there was a widespread ill-will and distrust among the membersof community regarding the operations, values and management of the banks in Australia. Nobank was following Corporate Social Responsibility.
Using the Kurt Lewin’s (1951) three-step change model, the process of changing the behaviorstarts from unfreezing the existing status quo. Unfreezing the situation helps to overcome theindividual differences and group conformity. It can be achieved via increased driving forces thathave direct impact on the behaviors, decreased constraints that have negative impact on themovement of processes and refreezing the situation when change is achieved (Robbins, 2003). The Management of ANZ bank was reluctant to change. They had ethnocentric nature whobelieved our way is the right way of doing things. This issue could be resolved by minimizingthe individual differences within the organization. The employees were not motivated enough to engage in their prescribed roles. ApplyingHerzberg’s two factor theories, the factors that lead to job dissatisfaction and satisfaction are tobe identified. In case of ANZ bank, the factors leading to the low employee moral were distrusttowards the banking operations, lack of proper communication with the management and thehigh power distance respectively. These factors were necessary to be entertained in order to getthe high employee engagement towards their work which leaded ultimately towards the customersatisfaction area.Benefits The structural change in the ANZ bank showed a very clear picture of the requirements ofemployees and managers at ANZ bank and the desire of ANZ stand in the market. It showedintegrity, collaboration, respect and excellence in their performance and actions.
McFarlane, took important steps to lower the financial debt ratios making it to stand among thetop notch banks within the country. He implemented three step cultural change within theconfines of the ban; Perform, Grow and Breakout strategy that ensured the high level ofperformance with respect to the processes and delivery of value to the stakeholders, growth interms of revenue, leadership and brand entity and the breakout of previous function and buildinga set of functions that leaded to the long term leadership and success. ANZ bank developed a culture that supported the employee inputs and decentralized thedecision making process opposing the traditional decision making process opted by the seniormanagement at the bank. The wrong managers in the jobs that effected the organization all the way down wereidentified and removed. Efficient management was installed in the bank that had passion to workand was disciplined to perform their duties.Limitation(s) To bring the change, you should be motivated to do so. The change within an organization canbe effected by the participants on whom the change is implemented. The participants arerequired to be continuously counseled in order to motivate them to participate in the changeprocess, envies trust and recognition for the need to change and their active participation in theproblem solving brainstorming is necessary (Robbins. 2003).
One action that can be used to implement Lewin’s three step model of change is to establishnew patterns and utilize them through formal and informal mechanisms including policies,procedures and regulations (Robbins, 2003).Q.2: From the symbolic frame, and using an appropriate balance of theory and practical evidencefrom the case, identify and discuss the symbolic and cultural issues relevant to transformationalchange. What would be the benefits and limitations of taking a cultural perspective?Issues Pertaining to Cultural Change The ANZ bank was operating under narrow culture. The people working there had to facenumber of issues which includes the following:Negative Perceptions- since the bank had top-down culture which limits the decision making totop management only that left a gap between the senior management’s understanding of situationand the employees understanding. This resulted in the development of negative perceptionsamong the people working there in the domains of functions, operations and values of the bank.Gender oriented Culture- the bank before achieving transformational changes had a masculineculture. In masculine cultures, the gender roles are distinct; men are supposed to be more rigidand inflexible and concerned towards the quality of life (Hofstede, 2001). McFarlane observedthe gender oriented culture in ANZ bank by discovering lack of women in the seniormanagement roles.Confusion- due to the lack of communication among the employees and senior management,high level of confusion existed about the existing banking practices followed at ANZ bank.
Individualism- the people in the bank had individualistic approach towards the functions andpriorities of the bank. They failed to act collectively and lacked integration of ideas andresources.Misconduct- the people were engaged in the practices that are regarded as misconduct as per thegeneral banking law and practices. They were confined to their own interests and were notengaged in their roles. The organization is the hub of different cultures, tribes, rituals, myths, stories, procedures andmanagerial authorities (Bolman and Deal 1991, p. 16). Everyone within the organization is saidbe an actor who is performing his or her role (Bolman and Deal 1991, p. 16). The cultures areacquired by learning (Hofstede, 2002) the people within the ANZ bank required the symboliclearning to perform. The role of an organization is like a theatre where the employees act as performers. The playsor performances help us to resolve the conflicts and contradictions creating problems within anorganization. Old issues, new ideas, borrowed expertise and important strategies are put onto thestage, where they combine and begin to produce new myths and belief system. Change becomesexciting, innovative, and vital. The message is heartening and spiritually invigorating. The worldchanges continuously so is the need of symbols. If the change is not expected, then change ofsymbols, scripts can be used to develop new role plays and drama.Benefits
The benefits to change the organizational culture or taking the cultural imperative to identifythe problem are huge. The cultural imperative influenced everything and everyone at ANZ bank.It suggests the following benefits: Productivity- ability to perform Morale- high values and employee moral Costs- managed financial and operational costs Profits- increased level of market involvement and revenue generation Customer Service- customer satisfaction and value to the customer Recruiting- the perspective of people changes with the change of culture Retention- employee retention and long term relationship. Employee Morale- ANZ gave value to the opinions, preferences of their employees Employee Motivation- reward and recognition motivates the employees to perform Better Openness to Change- they have understood the need for change and shows openness towards change Involvement- the lack of engagement is no more the characteristic of ANZ’s employees. Leadership- by maintaining the decentralized leadership level and implementing the listening to employees strategies the leadership role has grown enormously at ANZ bank. Meetings- the people show openness to speak up their ideas, values and requirements. Mergers- the flexible cultures are desired by everyone and people like to amalgamate with such organizations. Cooperation- the employees are highly motivated to cooperate in the differing situations.
Teamwork- teamwork is the key behind the success of any company. ANZ is successful only because of the teamwork of its management and employees to bring about the change. Relationships- the cultural change has a lasting effect on the employee and management relationship at ANZ it has transformed their relationships. Satisfaction, Happiness, Joy and Pleasure- the change of ANZ’s values, rules, regulations, and norms envisaged the feelings of harmony and empathy within the employees. The confusion was resolved and power distance was solved by McFarlane which had a lasting impact on the performance of the people within the organizationLimitation(s) The changing culture is not an easy task to do. The respondents of change can learn thedifferent cultures but they are not likely to forget their own cultural values, norms and interest.There may appear the conflict of opinions from cultural perspective. This conflict can affect theorganizations ability to implement change within its operations, practices and dealings.
Q.3: From the political frame, and using an appropriate balance of theory and practical evidencefrom the case, identify and discuss the political issues relevant to transformational change. Whatwould be the benefits and limitations of taking a political perspective?Issues Pertaining to Political ChangeBureaucracy- a degree of standardization in paperwork and processes etc. existed in the ANZbank’s practices. Bureaucracy has a negative connotation; it depended entirely on the moods ofthe senior management.No Individuality- our way of doing things is the right way- was followed by the seniormanagement. The freedom of individuals was not present at that time. They had to follow whatthe boss says and ask them to do.Power Distance- the senior management tended to control the flow of information which createddistrust among the employees and community.Conflict of Interest- the employees and management had their own motives and goals to follow.The culture within ANZ bank was highly individualistic culture where everyone was concernedabout his or her own interest.Silo Mentality- the people followed individual interest and liked to follow separate directions.There was lack of collectivity.Organizations are the place for both internal politics and political agents who have their owninterests, resources and strategies to comply with. This increases the level of competition amongthe employees to take the advantage of a particular situation.
The change within an organization depends on the manager’s political abilities. Theconstructive managers recognize and understand the political needs. They know how to presentthe agendas, create a network of support and negotiation with the partners and opposing parties.BenefitsThe political changes within the organization helped ANZ bank’s people to open up to the ideasand options set before them. The people were victims of top-to-down hierarchy they lackedmotivation to speak up the issues they were facing.McFarlane changed the culture from bureaucracy to meritocracy. The flow of information washighly confidential and the banking staff at low level had no access to any information-information control was residing in the hands of senior management only. The political changedthis practice and insulated the sense of trust among the employees. Suitable training of peoplechanged their individualistic approach of reacting and performing to collectivistic approach;letting them to work and respond in a group in a particular situation and scenario.Limitation(s) In the process of political changes within an organization, the manager or change agentsencounters practical and ethical problems regarding to when to adopt and option, collaborate the
strategy and what approach choose. They are required to consider the potential for collaborationand long term relationships as well as their own values and ethical principles.SECTION B a) What would be the best approach to take to manage change at the anz bank in the future? The organizational transformation which took place at ANZ bank was steered and powered bythe leadership and charismatic personality of John McFarlane. The purpose of the transformationwas to create a competitive and sustainable advantage for the bank. McFarlane introduced thebreakout programme in order to bring cultural transformation within organization. He alsoinitiated a comprehensive programme to streamline performance of bank’s employees. Similarly,he instigated a corporate-level policy of spotting and managing new talent within organization.All of these initiatives enabled McFarlane and his management to put a cap on ANZ’splummeting performance and bring radical changes in the culture and value system of the bank. Despite achieving success in bringing organizational change, the whole process was notperfect and not without hiccups. Firstly, McFarlane and his team only took action against thelow-performing employees by removing them from the jobs but they failed to do the sameagainst the senior management which was also not performing up to the mark. Similarly, theirinability to collect data related to their employees in the early stage of the programme createdseveral problems for them. This data could have been used in improving workplace culture’seffectiveness and efficiency.
There are numbers of approaches available which facilitates the whole process of changemanagement. These approaches can be used to expedite the process of change at the ANZ bankin the future. Kotter and Schlesinger have given six approaches to streamline and smooth out thewhole process of conducting organizational transformation (Kotter & Schlesinger, 1979). Usingthese approaches we will discuss and determine which approach should be used to managechange at the AZB bank.EDUCATION AND COMMUNICATION The first purpose of any change manager is to make sure that employees are made completelyaware of the impeding organizational transformation. This will enable top-management to makeemployees feel that they are part of whole process and the change is not done without takingthem into confidence. Such measure will lower the chances of resistance offered from theemployees. It will also allow them to eliminate any negative grapevine circulating in theorganization. There are number of reasons behind employee resistance. Following figure showssome of the root causes of such resistance: Common reasonsforindividualresistance Perceptions: Peoplesownperceptionscanleadtoabiasedviewofaparticularsitu ation,whichfits intoapersonsownperceptionofreality,andsubsequently,causeres istancetochange. Habit: People tendtorespondtosituation inaccustomed mannerasaguide fordecision making. Ifahabitiswellestablished,thenachangeprogramthatrequirescha ngingsuchhabitsmaywellberesisted. LossofFreedom If thechangeisseenaslikely toincreasecontrol. : Economic Whenachangeisperceivedtoreducepayorotherrewards,orathreat implications: totheirjob security. Security: Peopletendtofeelasenseofsecurityandcomfortintheoldwayofdo ingthingsandretainthem. Resistanceislikelytohappeniftheproposedchangerequiresdealin gwithnewandunfamiliarideasandmethods.
Fearoftheunkno Manychangeprogramstendtopresentadegreeofuncertaintywhic wn: hinturnleadstoanxietyandfear. Mainreasons fororganisationalresistance Maintainingsta When organisations attempt to narrow the definitions of bility: existing duties andresponsibilities,alreadyestablishedrulesandprocedures. Investmentin When achange requireslargeresources(people, technology, resources: equipment, buildings)whichmayalreadybecommittedtotheexecutionofothe rstrategies. Pastcontractso Contractsoragreementswithotherpartieswouldcertainlylimitcha r ngesinbehaviourandthescopeof changebeing introduced. agreements: Threatstopower Changemaythreatenthepowerstructureintheorganisationofcert and aingroupssuchastheircontroloverdecisions,resourcesandinfor influence: mation. Therefore,managersmaywellresistsuchchangethatthreatstheirp ower(whattheyperceiveastheirterritorialrights) intheirownpositions. Adopted from: (Mullins, 1996)PARTICIPATION AND INVOLVEMENT The next duty of change managers is to properly integrate and involve employees in thewhole organizational transformation process. Such involvement removes aversions fromemployees’ mind and motivates them to advocate for bringing out the change.FACILITATION AND SUPPORT One of the primary causes of resistance is the fact that employees find difficult to adjust tonew dynamics. However, this can be avoided if top-management and change agents offerfacilitation and support to employees. This will mitigate any fear and anxiety present inemployees’ mind. Organization can provide facilitation and support to employees throughtraining and counselling.NEGOTIATION AND AGREEMENT
In case where change brings job cuts or downsizing, the top-management should negotiatewith employees in order to bring them into certain type of agreement. Resultantly, such actioncould prevent any bad blood and grievance resulting from change. This can be done throughoffering incentives or compensation to those employees who are most likely to lose their jobs.Such negotiation will be extremely beneficial in that sort of environment where employees holdconsiderable bargaining power as in the case of labour union.MANIPULATION AND CO-OPTATION Another approach to manage change is through manipulation and co-optation. This will allowtop-management to control those employees which are at the frontline of resistance. Top-management should induct these employees in the management of change which will leave themwith no reason to resist change.EXPLICIT AND IMPLICIT COERCION This approach is only suitable in those cases where organization is facing certain timeconstraints. Manager can use coercive measures such as making clear to employees that theirresistance could result in job losses. Similarly, there is another model which provides framework for managing change. Harris’five-phase model provides step by step framework for managing change. Following are the five-stages of Harris’ model (Lunenburg, 2010).PLANNING AND INITIATION In this stage, overall strategy is developed to bring change within organization. Similarly,objectives of the programme are formulated.
MOMENTUM In this stage, actual plan is implemented along with allocation of resources. The role ofleadership is vital in the success of this stage.PROBLEMS Any organizational transformation programme faces unexpected problems. As a result ofthese problems, the transformational plan becomes more complex. Conflicts may arise withinorganization which may result in the decline in the motivation and interest of the team which isresponsible for conducting change as well as the general employees.TURNING POINT In this phase, problems incurred in previous stage are overcome which results in regaining ofmomentum. Resultantly, the efficiency of programme increases as it reaches to its final part.TERMINATION In this stage, it becomes clear whether the whole programme is successful or it failed toachieve its objectives. In case of failure, management may instigate a policy aiming at damagecontrol. On the other hand, in case of success, the management maydecide to take theprogramme to next level by injecting new goals and allocating more resources.
b) What kind of leadership would be needed to meet the challenge of a more successful approach to change management in the future at the ANZ bank? The enigmatic personality of John McFarlane was responsible for bringing change at the ANZbank. The type and style of leadership is essential for success of any programme that is aiming tobring cultural transformation. Autocratic style of leadership will not be able to produce desiredresults as it will most likely to result in resistance from employees. On the other hand, laissez-faire style of leadership will be more successful as the programme will be run with employees’involvement and engagement. The following figure shows leadership style and theireffectiveness in context of organizational change. Leade Focuse Persuade Makes Learn r style son sby change sby s Commandin Results Directing Rapidly Doing g Logical Innovation Explaining Carefully Studying Inspirational Opportunities Creatingtrust Radically Questioning Supportive Facilitatingwor Involvement Slowly Listening k Adopted from: (Reardon, Reardon, & Rowe, 1998) As we can see from above figure that inspirational and supportive style of leadership are themost effective. Inspirational style enables organization to expedite the cultural transformationprocess. Similarly, supportive style will incur low resistance from employees as supportiveleader will take into account employees’ feedback. Leadership is driving force for any changeeffort. Leadership enables organizational commitment to goals which eventually leads toorganizational transformation. The role of leadership is essential for the success of any change
endeavour. Leadership should contain following three elements in order to achieve its target ofbringing change (Rufai, 2011).POLITICAL COMMITMENT Leadership style is responsible for driving commitment among employees regarding a plan oridea which at the start does not have any support among them. Political commitment is necessarywhen organization requires a radical transformation.INTELLECTUAL COMMITMENT It basically means top-leadership asking employees to take a certain course of action becauseof its logical value. It is basically the responsibility of leadership to provide employees withvision and intended benefits of the change.EMOTIONAL COMMITMENT The purpose of leadership is to attach employees emotionally with the change. According toDaniel Goleman, who is a renowned psychologist, “…Great leadership works through theemotions…even if they get everything else just right, if leaders fail in this primal task of drivingemotions in the right direction, nothing they do will work as well as it could or should” (Rufai,2011). Emotional commitment will enable top-management to curtail any organizational andemployees’ resistance. In the process of bringing change, normal incentives may not be adequate to curtail resistance.Organization transformation changes the bargaining positions and relationships withinorganization. The solution rests with leadership which can increase the level of those incentiveswhich facilitates the whole process. Similarly, to improve acceptability of the new environment,
the leadership of the organization needs to engage and involve employees in the change process.This will give them the feeling that they are part of the process and will work for the success ofit. Participative decision making and increased problem solving are strongly correlated with eachother (Güneren & Özturen, 2007). In order to bring successful change at ANZ, the leadership needs to exhibit true credentialswhich ensure that proper direction is established; employees are properly aligned and motivated.This will enable ANZ to overcome any challenges emerging from effort of bringingorganizational change. Therefore, it can be deduced that leadership style should be democraticand participative which would involve and engage employees in whole organizationtransformation process. This will not only increase effectiveness of the whole programme butalso confine organizational resistance to prescribed limits.
ReferencesBolman, G. L., (2008). Reframing Organizations: Artistry, Choice, and Leadership,3rd ed., San Francisco, CA: John Willey & Sons Inc.Güneren, E., & Özturen, A. (2007). Leadership in organizational change. International Bulletinof Business Administration.Hofstede, Geert (2001). Culture’s Consequences: Comparing Values, Behaviors, Institutionsand Organizations Across Nations, 2nd ed., Thousand Oaks, CA: SagePublicationsHofstede, Geert (2002). Exploring Culture: Exercises, Stories and Synthetic Cultures, 2nd ed., Yarmouth, USA: Intercultural PressKotter, & Schlesinger. (1979). Dealing with resistanceto change-Six change approaches. Retrieved May 26, 2011, from Value Based Management Web site: http://www.valuebasedmanagement.net/methods_kotter_change_approaches.htmlLewin, K., (1951). Three step change model, Retrieved on May 25, 2011 from National Forum Website: http://nationalforum.com/Electronic%20Journal%20Volumes%5CKritsonis,%20Alicia% 20Comparison%20of%20Change%20Theories.pdfLunenburg, F. C. (2010). Approaches to Managing Organizational Change. International Journal of Scholarly Academic Intellectual Diversity.Mullins, L. J. (1996). Management and Organisational Behaviour. London.Reardon, K. K., Reardon, K. J., & Rowe, A. J. (1998). Leadership style for the five stages of radical change. Acquisition Review Quarterly, pp. 129-146.Robbins, Stephen. Organizational Behavior. 10th ed. Upper Saddle River, NJ: PrenticeHall, 2003.Rufai, N. E. (2011). Leadership and change management. Retrieved May 26, 2011, from The Lagos Times Web site.
Trompenaars, F. & Hampden-Turner, C. (1999). Corporate Culture Model, Retrieved on May25, 2011 from Uni Hamburg Website:http://www1.unihamburg.de/Kapitalmaerkte/download/6_Intercultural_Hamburg.pdf