Political Economy Of Transnational Business -Myassignmenthelp.Com

Question: Discuss About The Political Economy Of Transnational Business? Answer: Introduction Change management is being initiated by the contemporary business organizations in order to adapt to the change in the market or business scenario. This is due to the reason that, the current business scenario is having much more competition. Change management is being implemented in different operational sectors of the business organizations (Hornstein 2015). Thus, the more effective will be the alignment and coordination of the departments of the business organizations, the more efficient will be the implementation of the change management. However, implementation of the change management is having different barriers that should be effectively identified. This is due to the reason that, implementation of the change management involves determination of the interest of different stakeholders in the organization (Altamony et al. 2016). ANZ bank is one of the leading financial institutions in the Australia with having their market presence in different locations around the world (Our company | ANZ 2018). They have implemented successful change management in their internal management under the leadership of their CEO John McFarlane in the late 1990s. However, though there are various competitive advantages being gained by them through the initiation of the change management, there are various issues also being faced by them. Moreover, the change management in ANZ bank involves the huge role of leadership due to the reason that, the role played by their CEO was one of the key factors for the successful implementation of the change management. This report will discuss about the key transformation being identified during the tenure of John McFarlane in ANZ bank. Moreover, the challenges being faced by the organization in the initiation of the change management will also be discussed in this report. The role of the leadership in managing the change management in the organization will also be discussed in this report. In accordance to the issues being identified, various recommendations will be discussed in this report. Key aspects of the organizational transformation of ANZ bank One of the key organizational transformations being initiated at the time of the John McFarlane is stopping the trend of the closure of the branches in different locations. This is being done due to the reason that, in the late 1990s, there was public outrage regarding the closure of the bank branches (Seltzer, 2017). Thus, under his leadership, ANZ bank stopped the process and initiated in catering to more number of the customers. Thus, it helped them to create favorable image in the market by going against the business trend. Initiation of the gender equality John McFarlane initiated the gender equality in the organization due to the reason prior to his appointment, there were no female candidate in the higher level management of the ANZ bank. Thus, initiation of the gender equality in the higher level management helped the organization to gain goodwill in the market (Roberts 2015). On the other hand, it also helped them to adhere to the corporate social responsibilities. Gaining of the goodwill in the market helped ANZ bank to create positive impression among the customers compared to their competitors. Cost cutting initiatives Two of the revenue generating options available for the business organizations is the increase in the profitability of the organization and reducing the cost of the operation. Under the leadership of the John McFarlane, ANZ bank initiated the process of the cost cutting initiatives. However, in due course of the cost cutting initiatives, the number of jobs is not being cut. He had initiated bailing out the investment being done in the developing countries, internal operations are being restructured and partial operations are being outsourced (Handley and Benton 2013). Thus, the average cost of operation is being reduced, which further enhanced their profitability. Enhancement of the organizational culture In the competitive business scenario, organizational culture is important to gain competitive advantages. This is due to the reason that, the more effective will be the organizational culture, the more will be quality of the customer service along with enhanced productivity of the employees. In the case of the ANZ bank, John McFarlane initiated the change in the organizational culture (Buschqens, Bausch and Balkin 2013). This is due to the reason that, according to him, if the organizational culture can be made favorable, then competitive advantages can be gained from the side of the employees. In accordance to this policy, John McFarlane identified and benchmarked some of the top organizations in the market known for their effective organizational culture. Moreover, the employees are also being involved in the process of creating the new organizational culture. This is the different approach to what ANZ bank was having before. Involvement of the opinions of the employees in determining the organizational culture helped to cover the diverse requirements of all the associated stakeholders in the organization. Various initiatives are being take care of in enhancing the organizational performance (Azanza, Moriano and Molero 2013). Measures such as initiation of the motivation plan for the employees by providing reward to the employees are being started. Thus, involving the feedback of the employees, providing reward and recognition to them and initiation of the customer oriented approach helped the organization to have an effective and favorable organizational culture. Initiation of the leadership development program Under the leadership of John McFarlane, ANZ bank initiated the leadership training and development program for their managers. Hey have initiated different programs for identifying and developing talents in the organization. Various managerial levels including the middle and the lower levels are being included in the training and development program. This helped to have the future leaders ready in place along with managing the employees effectively. Challenges in the change management Implementation of the change management is having various challenges to be faced in the organization. This is due to the reason that, initiation of the change management is having the negative and positive impact on different stakeholders. Thus, stakeholders having or perceiving negative impact from the initiation of the change management will have more chance to resist. The following sections will discuss about the challenges being faced by the managers. Resistance from the side of the employees is one of the most common challenges being faced by the managers in initiating the change management. This is due to the reason that, initiation of the change management involves loss of jobs for the employees. In the given case of the ANZ bank, it is being stated that, John McFarlane had outsourced some of their operational activities and changed the location of their offices in order to cut the cost. However, outsourcing involves loss of jobs in the organization, which will have negative impact on the employees (Bateh, Castaneda and Farah 2013). Thus, according to the power interest matrix, employees are having more interest in the process of the change management than having the power. Thus, they will resist this kind of organizational change. Resistance can also be originated from the side of the management also. This is due to the reason that, the approach of the change process may not meet the criterion of the higher management. For instance, in the case of the ANZ bank, it is being stated that, John McFarlane initiated the change in the organizational culture by involving the feedback from the employees (Baker et al. 2013). He also concentrated more on involving the employee opinion on the management activities, which was different from the existing culture of the organization. Thus, this caused in the emergence of the conflict in the management. There may have managers who will have reservations in involving the employees in their activities. Thus, managers in the change management process will also have to face the challenges from the side of the higher level management. Diversity in the organization and in their workforce will also prove as a challenge for the managers in implementing the process of the change management. This is due to the reason that, diversified workforce comprise of employees from different social and cultural backgrounds (Hafsi and Turgut 2013). Therefore, the particular approach of the change management process may not adhere to the different requirement and expectation of the employees. In the case of the ANZ bank, they are having their market presence in different locations around the world. Thus, different locations will have different level of acceptance towards the organizational culture. It will be a challenge for the managers to initiate the process of the change management according to the need of different cultural and social criterion. The current market scenario is much more challenging and competitive in nature. Moreover, the trend and requirement of the customers are changing more frequently. Thus, it is one of the key challenges for the mangers to initiate the change process in the organization according to the change in the market trend and requirement (van den Heuvel et al. 2013). In addition, initiation of the change management involves cost for the organization. Thus, will be difficult for the managers to initiate the process of change management frequently according to the change in the market. Attributes of key leaders at ANZ bank In the given case study, the key attributes of the leadership roles in the ANZ bank are being discussed. There are various positive and negative attributes being discussed in the case study. Two leaders of ANZ bank are being stated in the case namely, John McFarlane and Michael Smith. Following sections will discuss about the key attributes of the leaders being discussed in the case. One of the key attributes of John McFarlane is his well rounded approaches. This is due to the reason that, in the case study, it is being stated that, John McFarlane is having equal concentration towards personal and professional life. Thus, it helped the organization to have the same approaches for the employees. John McFarlane motivated his employees to have proper work life balance, which in turn enhanced their effectiveness and productivity (Isaacs 2016). Therefore, the transformational approach of the leadership style of John McFarlane helped to have positive influence on the employees. Prior to the joining ANZ bank, John McFarlane is having huge corporate experience. Thus, it helped him to not repeat the issues being faced by him in his early careers. On the other hand, the vast corporate experience of him also helped the ANZ bank to gain rich leadership ideas (Guerrero and Pena-Legazkue 2013). Thus, the direction of him got enhanced with the past experience being gathered by him. John McFarlane also known for the social and customer oriented approach (Mukerjee 2013). In the case study it is being stated that, majority of the aspects of the change management being initiated by him are customer and society oriented. This helped to involve the associated stakeholders in the change management process along with reducing the chance of origination of the resistance. On the other hand, Michael Smith was being selected as the successor of John McFarlane. One of the key attributes for him is also the vast corporate experiences. In the case study, it is being stated that, Michael Smith is having experience of being the former head of HSBC Asian banking division (Brockner, Senior and Welch 2014). Thus, it is also helpful for the organization to gain the vast experiences of the leader. Another key attribute of the Michael Smith is the acceptance towards the use of latest technologies (Peek et al. 2014). This is due to the fact that, in the case study, it is being stated that, Michael Smith has initiated the use of the latest technologies in the organization. Thus, the more acceptable will be the leader towards the latest technologies, the more will be the effectiveness of the leader in the organization. Recommendations Thus, in the above discussion, there are various issues being emerged in the process of the change management. The following sections will discuss about the recommended steps to overcome the identified issues. Change management models such as Lewins model of change management will be used to determine the recommended steps. The first step of the Lewins model of change management is Unfreezing. This step refers to the process of communicating with the associated stakeholders in the change management process along with involving the feedback of the stakeholders who are having interest in the change process (Shirey 2013). This is important due to the reason that, prior to the implementation of the change management, it is important that the employees and other associated stakeholders should have the knowledge and understanding. This will help to reduce the probability of having resistance from the side of the employees. It is being recommended that, the managers responsible for the implementation of the change management should first communicate with all the associated stakeholders regarding the change process and the motive of the implementing the change. This will help in having a mutual understanding and coordination among the stakeholders prior to the initiation of the change. The next step in the Lewins model of change is the changing process. In this step, the transition from the existing process to the new process is being initiated (Sarayreh, Khudair and Barakat 2013). In this step, the managing skill of the leaders will be tested due to the reason that, employees will face the difficulty in adapting to the new process. Thus, it is being recommended that, mangers should have the effective skill of management in having seamless process of change in the organization. Moreover, it is also being recommended that, the feedback from the employees should be gathered in due course of change process in order to identify the shortcomings of the process. The last step of the Lewins model of change is refreezing. This step refers to the process of bringing stability in the organization after the implementation of the change (Cummings, Bridgeman and Brown 2016). This step includes aligning the employees with the new change process in the organization. Providence of the training and development programs for the employees are also being included in this step. It is being recommended that, managers should follow the transformational style of leadership in the organization to have the long lasting impact of the implemented change. This is due to the reason that, it is important for the managers to determine the challenges being faced by the employees in adapting the new culture in the organization. Thus, the managers should gather the feedback from the employees regarding the new process in the organization and rectifying it accordingly. Conclusion Thus, from the above discussion, it can be concluded that, initiation of the change management in the organization is having both opportunities and challenges to be faced by the managers. This report discussed about the attributes of the leaders of ANZ bank being mentioned in the given case. It is being seen that, both the leaders of ANZ bank are having various positive attributes, which helped them to drive the organization effectively. In addition, this report also discussed about the benefits being gained by ANZ bank from the initiation of the change process along with identifying the issues to be faced by the managers. This report concludes that, there are few challenges to be faced by the managers in the process of the change management. 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