National Bank of Australia

National Bank of Australia

Introduction

The National Australia Bank Limited (NAB) is one of the top thirty banks of the world with high earning profits. The NAB group has more than 450.000 shareholders and around 40000 employees working in the bank.

In 2004, NAB faced a huge scandal in which there were 4 traders involved to report a fictitious trade of AUD 37 million profit whereas, the actual report amounted to AUD 5 million loss. Even though somehow, the junior employees uncovered the scandal and the actual loss occurred was US $360 million. After the scandal, NAB changed their organization culture in which the bank lost majority of its experienced personnel including the CEO, chief officers, chairman and head of risk management too. The new change brought new executives to join in and bring a new organizational culture.

Discussion

Change Management Theories

Organizational culture is an idea improved via specialists to illustrate the qualities, psychology, and state of mind, convictions, and encounters of an organization. Usually talking, it is seen as the imparted standards and qualities of people and aggregates inside an organization. This set of shared understandings controls the way people collaborate with one another inside the organization and with clients, suppliers, and different stakeholders existing outside the verges of the organization (Shaw, 2012).

Levin and Gottlieb said that most of the organizational changes bring additional efforts with some degree of cultural shifts in the workplace. On another occasion Keleman and Papasolomou identified 3 main perspectives which are as follows:

Integration Perspective - Organizations totally rely over integrative perspective where culture is reflected in variety of mediums such as performance targets, business strategies, manifestation etc.

Differentiation Perspective - In this perspective, culture is a combination of cultures that are combined together to recognize the inconsistencies.

Ambiguity Perspective - In this perspective an employer may agree onto some management issues, yet at some circumstances they won't.

Leadership can be defined as the process of influencing the behaviour of other people socially. The main task of the leader is to support and procure the followers or the subordinates in achieving the tasks they are assigned. There are several types of leadership, and many researchers have also given different theories regarding different types of leaderships. The three basic leadership theories are Authoritarian, Paternalistic and Democratic leadership theories (Shaw, 2012).

Strength and Weaknesses

Integration Perspective

Strength- the culture is clear, measurable and pervasive by providing clear information of the management's practices.

Weakness- it is easy and quite clears culture because of which it can easily be disclosed to third parties very easily.

Differentiation Perspective

Strength- A varieties of cultures are being combined within the organizations boundary to recognize the inconsistencies.

Weakness- A combined culture may create differentiation among different thoughts of people.

Ambiguity Perspective

Strength- It is a more realistic perspective where employees agree with the new management issues.

Weakness- Individuals may differ from other employees which will lack in understanding among both of them.

Kurt Lewin's Change Management Model

Kurt Lewin's change management model is being used for managing change in the workplace by the use of force field analysis to implement the ...