Management Audit Of ANZ Banking Corporation Essay. (70 Characters)

To integrate and apply your understanding of the management theories, models, principles and practices, covered during the semester, in the study of an organisation’s management.

Describe the organisation’s mission and governance offering any appropriate critique in the light of management theory with reference to its ethical decision making, culture, planning, leading, organising and controlling.

Describe and analyse the strategic position of the organisation with reference to a SWOT analysis, linking to your environmental analysis.

Describe and critique the organisation’s management function in the light of management theory, with reference to its ethical decision making, culture, and planning leading, organising and controlling functions.

Mission and Governance

Management audit can be understood as the assessment and the analysis of the capabilities and the competencies of the management of an organisation for evaluating their efficiency and effectiveness in respect with their business policies ad strategic objectives (Lin and Hwang, 2010). The key aim behind accompanying management audit is not to have a look or reward the performance of any individual rather to analyze and praise the management team in respect to their competition (Prawitt, Smith and Wood, 2009). The purpose of developing this report is to understand the mission and governance of the selected organisation i.e. ANZ Banking Corporation, analyzing eth strategic position of the company through evaluating its SWOT analysis and by developing a link with the factors of environmental analysis. The next part of the report will perform analysis of the organisational management function of the organisation through the lenses of various management theories and PLOC framework for understanding the ethical position and core values of ANZ Banking Corporation. The report will end with a brief conclusion drawn from the overall analysis with few recommendations.

The mission of ANZ Bank is to support in shaping the world where the communities and the individuals throve. And this is because ANZ strives hard for developing a sustainable and balanced economy where every individual can become its part and have improvement in their lives.  According to the organisation, the value of banking cannot be evaluated in just cents or dollars but the actual worth of it lies in the associations which are developed by connecting with the businesses and the people. It is all about unlocking the hidden opportunities for empowering the communities to rapidly transform and develop. While examining the mission statement of the bank, it is analyzed that the main purpose of the company is to serve the masses and the stakeholders by having improved relationships but also to have a high focus upon the development of the economy. But there is not mentioned specifically regarding the stakeholders. Thus, it is evaluated that there must be a particular emphasis on the various stakeholders comprising of the community, suppliers, shareholders and the employees (ANZ, 2017).

By performing an analysis of the governance offering of ANZ Bank in respect with the ethical decision making and controlling, organizing, leading and panning, it is evaluated that the organisation gives its employees and its strategies huge importance as they are its pillars of success. Its planning is long term by having a huge presence in the markets of Australia, the Pacific, and New Zealand as well as in the market of Asia. There can be seen ethicality in the decision making as it offers the customers with adequate and correct financial solutions as well as have its more emphasis on innovation and merger organisational culture so that it can have a better leading and organizing. It has also been evaluated that there is effective and efficient governance offerings as all the function and managerial aspects of the organisation are based upon five key aspects i.e. ANZ ensures that they is high level of excellence, respect, accountability, collaboration and integrity in all their work so to have a better and ethical organisational functional management (ANZ, 2017).

Strategic Position of ANZ Bank in respect with its SWOT Analysis, linking with environmental analysis

In order to perform the analysis and evaluation of the weaknesses and the strengths of ANZ Bank in the SWOT Analysis framework it is necessary to have a better understanding of the history of the organisation. In specific the analysis will be performed of the functional and the corporate strategies of the company (Klepek, n.d.).

The Australian and New Zealand Banking Group Limited (ANZ) is a leading bank of Australia and New Zealand that possess a robust market share in the Australian banking industry. The organisation offers customized services and takes use of innovative technologies for offering personalized services to the customers. ANZ grounded in the year 1835 and placed its headquarters in Melbourne. The organisation attained huge recognition with its strong and potential business and management strategies (ANZ, 2017).

The following is the analysis of the weak nesses and the strengths of ANZ Bank where the strengths of the company are listed and identified as the major factor for attaining competitive benefits over the market rivalries and the weaknesses which may appear as the barricades in the success and long term sustainability of the organisation.

Analyzing the SWOT analysis of ANZ Bank, it has been evaluated that there is an alliance among the threat and opportunities of the external environment with the weaknesses and the strengths of the internal environment. By having an in-depth approach of analysis, it is expected that there is a need to address the various weaknesses analyzed in the SWOT analysis so that there can be gained the advantages and benefits of the several opportunities present in the market (Gedda, 2009). There are strengths possessed by ANZ Bank such as huge number of employees and extensive market capitalization. These strengths can help the organisation in having increased presence in eth various overseas nation and also to have more innovative and pioneering products and services for increasing its market share (Memis and Cetenak, 2012). There are some threats which have been faced by the organisation in respect with global market competition and due to continuously fluctuating economic conditions. To overcome these threats and to retain the leadership in the New Zealand and Australian market, it is advisable to ANZ Bank to have high investments on research and development to have a faster and rapid global expansion as well as to have develop contingency plans so that the risks of such threats can be minimized and the company can take use of the potential opportunities (Chuang and Hu, 2015).

It is analyzed and anticipated that there are few planning strategies which are implemented at ANZ Bank. It is evident that there has been used a number of programs and also approaches for financial forecasting as well as management forecasting. The organisation has an adequate planning technique’s by which it plans the quarterly sales as well as the market target required to be achieved in that span of time (Worthington, 2013). The organisation also has a proper budget for all its expenses and investments so there can be analyzed the end results in a proper manner. There was a change in the strategy of ANZ Bank where the organisation started its wealth and the retail business in the regions of Indonesia, Taiwan, China, Hong Kong and Singapore in the year 2016. This panning of diversified portfolio and global expansion offers an opportunity to the organisational managers within ANZ Bank to have a diverse set of activities and challenges in managing new functions, recruiting people and other various responsibilities of the other markets (Harorimana, 2012).

With these advantages of the planning management function there has been gained improved flexibility, focuses on the organisation and improved future sustainability of the organisation. All these advantages of planning offer numerous benefits to ANZ Bank in order to ensure that there is a strong market share and increasing profits and revenues. The new planning strategy of retail business offers long term stability to the organisation. It has also been evaluated and analyzed that ANZ Bank also takes use of one of the most effective way of planning its activities i.e. Management by Objectives (Jain, Narayan and Thomson, 2011). It is an approach which objects to improve and enhance the organisational performance by the way of defining management and organisational objectives on which there is achieved consent of both the employees as well as the management. The bank first has development of certain objectives and aims which can be used to have action plans. The organisations attain improved support and commitment of the employees when the goals and objectives are already set. These setting of objectives and management by objectives help in evaluating the success of the company by reviewing it with the set objectives (McCombie and Pieprzyk, 2010).

Within the organisation, ANZ Bank, it is evident that there is followed a charismatic leadership style for managing the organisation and the employees. John McFarlane follows most of the norms of the charismatic leadership style (Al Matarneh, 2011). The main aim behind taking use of this style is to develop more sustainable as well as competitive benefits for the bank. There was introduction of a breakout programme for having cultural transformation at ANZ Bank. There was also started a comprehensive program by John for streamlining the performances of the organisational workforce (Ellis and Darko, 2013). In a similar way, three was also initiated a corporate-level policy for the spotting and management of the new and fresh talent in the organisation. All such programs, actions and initiatives of ANZ Bank enabled organisational management and McFarlane to put a halt on the declining performance of the organisation and to bring essential changes in the value system, management and the culture of the bank (Wyatt, 2009). In spite of attaining a strong level of growth and success while bringing organisational change, there are some loop holes in the leadership. As in ANZ Bank, the actions are taken only against the employees who perform low by terminating them from their jobs but there is no kind of action which is taken against the employees of senior management irrespective of their declined and ineffective performances. Within ANZ Bank, it is clearly evident that it is a transformational organisation as there is a clear description and separation of the responsibilities, roles and the duties of the employees but stull there is increased level of team work in the tasks (Stockport, et al., 2012). McFarlane explains the responsibilities’ to the board as well as maintain a well-structured management for reviewing and measuring the performances. There is a need to have an equitable behaviour in the leadership where all the employees have a similar sense of equity in their appraisals, rewards and penalty so that there can be glimpse of effective leadership at all the levels of the organisation (Baker, 2014).

Within ANZ Bank, there are managers at all the different levels that have their engagement in the functional management of controlling. To have an effective control in the organisation, ANZ Bank takes use of two effective techniques of controlling i.e. performance aunts and the budget audit. To control the organisation management, there involves a verification and examination of the documents and the records of the bank (Tiong and Anantharaman, 2011). In the budget audit controlling technique, there is gained information in respect with the organisation and the financial planning. And through the performance audit, ANZ Bank determines that whether the results are matched with the actual required performance of not. The bank is not only have a limited control only to the financial state of the company but also have a control and  check over the where other areas too i.e. various organisational activities, regulatory policies and the compliance. The organisational management function at ANZ Bank therefore covers a broad and extensive scope of the various responsibilities and duties of a manager (Baker and Saren, 2016).

Because of the continuously rising practices of the companies to have high level of ethicality on their business operations and activities, there is also same pressure upon ANZ to have high ethical consideration and ethical decision asking (Schoenmaker, 2013). At ANZ Bank, there is encouragement by the board to the organisational managers to maintain as well as promote an organisational culture that which is established upon a set of values and unifying principles for guiding the decisions as well as the actions of the Board as well as of all the organisational employees. In the breakout culture development program at ANZ Bank, there is strong participation of around 26,000 employees (Ula, Ismail and Sidek, 2011). Such program helped the employees and the managers to implement values-based decision-making as well as for balancing the needs and requirements of community, customers, shareholders and the staff in their respective activities and roles. To have high ethical principles in the decision making as well as to have assistance to the staff and the directors in respect with the understanding of the organisational culture, there are three key codes of conduct that helps in guiding the decision making and business practices.

• Financial Officers Code of Conduct
• Employee Code of Conduct
• Directors Code of Conduct

These code of conducts and other ethical principles and policies help in enhancing the level of transparency of the organisation and it present the way in which ANZ works and operate. There are also policies which enable and force the organisation to have ethical code of conducts in respect with the environment as well as the employees and the community (ANZ, n.d.)

Conclusion

ANZ Banking Corporation is one of the most recognized banking organisations which has a sound performance in respect with kits corporate and business strategy and governance. The newly established and diversified retail banking services in China and other few regions is one of the recognized strategies of ANZ for acquiring continuous growth and success and capturing new market areas. By analyzing the management and the strategy through the planning, organizing, leading and controlling aspects of the POLC framework, it has been found that the organisation leads in most of the aspects. Practicing the breakdown program is one of the most ethical practices of the organisation and has gathered the support of the employees as well as helped the bank in having more ethical and governance practices which is extremely significant for executing in modern economy. In the organisation, it has been seen that there exist charismatic leadership but still there are some loopholes which are required to be filled and improved the organisational management. To improve it is recommended to ANZ Bank to have modification in the mission of the organisation and have a better approach towards the stakeholders including employees and other parties so that there can be effective participation of the employees in the attainment of the set objectives. Secondly, there must have improvements in the performance audit as well as to have an equal approach in dealing with all the employees without discriminating on the basis of position. Another recommendation for ANZ is to have more supportive policies which can have better development of the employees and flexible working in the organisation.

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