Organizational Change Management for ANZ Bank -myassignmenthelp

Question: Discuss about theOrganizational Change Management for ANZ Bank. Answer: Introduction The following report is about the change in management and change in leadership of Australian and New Zealand Bank (ANZ Bank). It is one of the biggest companies of Australia and is the largest company of New Zealand. The company also happens to be the most successful business ventures of Australia and New Zealand. It has a rich and inspiring history which is about 170 years ago when it happened to be Bank of Australia at the time of its inception and has evolved from there. Its evolution has witnessed many alterations and modifications in its management which has led it to become the leading business enterprise in Australia and New Zealand. Being a banking institution it has to undergo many changes with the changing economic structure and demand of the market and ANZ has premiered in every aspect of management change. It has become a public listed company with its shareholders who number in lakhs. The following report will discuss and examine in details the theories and models of ch ange in management of ANZ and the models and theories of change in leadership which ANZ has experienced in its way to become one of the biggest banks of two neighbor countries. Theory of Change Management There are a number of change theories which are implemented in the management of an institution such as ANZ bank which has proven to be fruitful for the company. ANZ has expanded its business in 5 different divisions which comes with a requirement of change in the management of the institution. ANZ has its main branches in New Zealand, Australia and Asia Pacific and its divisions are based in these countries with an addition of shared and institutional services (Stockport et al. 2012). There are five main theories of change which ANZ has implemented in its management. These changes describe why and in what way ANZ has executed these changes and it also illustrates the process ANZ has undergone and the directions it has followed. The change theories are: General Theory of Change: This particular theory is comprised of four sub-theories which are implemented by ANZ bank in its management. These theories are: Life Cycle Theory: There is a linear path followed by the change in which the next change is executed only when the previous change has completed its implementation (Heijungs and Suh 2013). ANZ educated and introduced its customers with products and services such as credit cards, mortgages, personal loans and transaction banking. After the implementation of this retail plan it introduced Commercial Banking. Teleological Theory:It is determined by the concept of strategy. It focuses on having a target and completing it with a proper strategy and within time before making any further changes (Burke 2017). ANZ has been a beacon of financial educator by making significant changes in financial inclusion. It has introduced Saver Plus scheme for financial inclusion and implemented it like an expert. Dialectical Theory:This theory states that ANZ bank has put itself at the center of a conflict between internal and external competing conflicts. There is always a hunt of power in an organization such as ANZ but the notion to maintain the stability by making changes in the organization at the same time is established by the this theory (Halbesleben, Whiteman and Crawford 2014). In 1990 ANZ made John McFarlane its new CEO with a completely new team in its higher management which was done to achieve a sustainable growth in the long-term. Evolutionary Theory: It is concerned about the competition, survival and innovation in the organization. This is supported by the process of selection and change in structure (Crawford and Krebs 2013). In 2000, ANZ went for a transformation which was taken forward as bank with a human face. It altered the nature of work, the structure of work and induced growth in the business of bank in quick time. Theory of Emergent and Incremental Change: This theory states that the change can be executed in an unplanned manner when there is introduction of new technology (Nyberg and Ployhart 2013). When ANZ bank went through such a change its organizational efficiency improved a lot and the members were benefited by this change as their work become easier and they had the leverage of technology to get their work done with much accuracy. Theory of Temporal Planned Change: This theory of change is comprised of four aspects of change which are socializing, engineering, commanding and teaching (Cummings and Worley 2014). Each aspect is separately implemented such as in commanding the coercive agents are deployed to make changes, in engineering the analytics play the major part such as designing the process of work to speed up the work. Teaching refers to a planned and logical way of learning the work process and socializing insinuates towards making relationships with the customers. Equilibrium Model of Strategic Change: This theory is separated between the convergence of equilibrium in which slow and gradual changes take place and the sudden changes which reorient and reshuffle the entire management of the ANZ bank (Smith 2014). The former one takes longer durations to happen and the latter one is fast. Theory of Strategic Change Complexity: It says that organizations are complex in nature and the environmental uncertainty changes the status and nature of management (Eden and Ackermann 2013). It makes them more complex with introduction of rules and regulations that governs the strategy of the ANZ bank. Models of Change Management There are many models of Change Management which are followed by number of organizations according to their nature of work and requirement of the time. ANZ bank is an organization which has undergone many changes in all these years. But mostly it has used the Lewins Change Management Model (Cummings, Bridgman and Brown 2016). This model is known to be the most widely accepted and used model of change across the biggest organizations of the world. It is a common model which works for any type of business may it be small, new or of any nature. This theory is the foundation stone for all the change theories since it has been postulated in 1940. It simply says three things which are unfreeze, change and refreeze. The revelations of these three aspects are: Unfreeze: This dimension of the theory is about accepting the changes which are important at the time and breaks the current status quo of the organization to make way for new changes to happen. The main point in this aspect to make everyone believe that the current status cannot continue and there is a need for change. This message can be argued on the base of declining sales, poor customer satisfaction, deteriorating financial status etc. To implement this theory the management needs to challenge the behaviors, beliefs, attitudes and results which exist (Al-Haddad and Kotnour 2015). In context of the ANZ bank, bringing John McFarlane to head the organization made this theory applicable as he talked about changing the current state of work in the bank and introduced new changes which were radically different as compared to the ongoing practice. He introduced three major leadership programs and emphasized on the culture of work being practiced in ANZ. In the beginning these changes a re very stressful to accept but after some time people get used to the new set of methods and get comfy with it. Change: After the phase of unfreeze has taken its course there is a feeling of uncertainty in the management of ANZ bank. It is during the course of change that people of ANZ start making peace with those uncertainties by the understating its implications and accepting it for future purpose. People start to believe in those changes and see a way through towards new horizons of work. This transition does not happen in quick time but settles down slowly and gradually (Al-Haddad and Kotnour 2015). People take their time and accept it by participating actively in the new courses. Change Curve is a related model which signifies the level of acceptance in the management which includes personal change over into new atmosphere of work (Blozis and Harring 2015). It happens only when people get to know the benefits of change which is an important motivation as not everyone is inclined to accept it just out of the goodness of their hearts. ANZ bank has done a lot to make people believe in the c hanges which starts from communication between the employees and time they are leveraged to embracethem. ANZ started programs that connect its employees to the organization to conclude this transition. Refreeze: When the transition is near completion and people feel comfortable in their new environment ANZ was ready to refreeze. The methods used by ANZ to illustrate refreeze were to prepare an organizational stability chart and to display consistent description of jobs (Al-Haddad and Kotnour 2015). Refreeze state needs to institutionalize and adopt the changes which people have undergone in ANZ bank. This directly implies that ANZ needed to use the changes more often by inducing the in daily work of the bank. This displays the belief of ANZ that people are now confident and stable in using the new ways in which the bank will work. It lays the foundation stone for any further changes which ANZ will introduce as it checks the acceptance among its employees. The successful change was celebrated by ANZ to acknowledge the pain and efforts made by its employees in realizing the change process which is an award in itself. Theory of Change Leadership Leadership is a key factor in bringing about any type of change in the organization. It is more of a psychological concept than a practice which needs only implementation. For the sake of growth and progress in the changing world leadership must be dynamic which understands the importance of change and that too at the right time (Saeed et al. 2014). At first ANZ bank has overcome the FUD factor which states that every change initiated in any organization. Fear, uncertainty and doubt are the main hindrances in any change to be accomplished. Psychology of employees was observed to be in a state of comfort. Change makes them uncomfortable as it is not familiar to them (Cameron and Green 2015). They start to doubt themselves as the new environment is uncertain and there is as sense of incompetence which creeps in their minds.To mitigate these challenges ANZ made its employees believe that the gains which they will get is way more than the loss which they are feeling.ANZ bank changes the dynamics of human factor as well as of the organization to make people believe that the change will pay them good dividends. Some aspects of leadership change practiced by ANZ are: Creation of compelling statements of change: ANZ bank made a point by showing its employees the status of business of its various divisions across the world and also compared it with other banking institutions who were making much more profits than them (Jehanzeb and Bashir 2013). The current state of market and the trends which were being developed in the banking world were some tools used by ANZ. Leadership appealed to the competence of its employees to undergo changes which were upgradations in the working methods which were needed to stay in the game. Communication between the leadership and employees: After the realization of statements made by ANZ there was a need of continuous communication between the management and the working staff so oversee the acceptance of change and the degree of change which was going to take place (Zhang and Venkatesh 2013). Communication kept the employees on a leash and proper monitoring was also possible due to that. More the communication more the implementation. It helped the leadership to get into the conscience of its employees which made them realize that how important these changes are for ANZ bank. Maximization of Participation: As leading a change is not a one man job and it should not be left on time to happen. ANZ deployed all its top level management to supervise and participate in the change process proactively so that it does not make the employees feel that they are the only one who are making the effort (Cameron and Green 2015). Collective participation helped ANZ to bring out change in an efficient manner. Models of Change Leadership There are three models of Change leadership which can be deployed to successfully mentor the changes. These three models and Group Leadership, Individual Leadership and Societal Leadership, as the size of the ANZ bank organization is huge and ranges to almost all corners of the globe they practiced two leadership styles to accomplish change. The two models of Change leadership are: Group Leadership: John McFarlane joined ANZ bank in 1990 and was given the freedom to choose its own team with new visions and ways of working. He developed a team of like-minded professionals who believed in the visions and aims of ANZ bank and collectively implemented the changes which were required at that time. John and his team brought many positive changes and achieved goals such as enhancing customer satisfaction, improving employee engagement, increased community recognition and also completely changed the financial performance of ANZ keeping the shareholders in consensus (Paunova 2015). In accomplishing these goals the entire team worked together to bring about technological change adopted from various business strategies practiced in the world, financial schemes analogous to the market conditions and so on. Societal Leadership: The major change which was brought about by ANZ was cultural one. Changing the working culture from the top level of management to the bottom level of employees was a tough job for the management which was accomplished with much precision. Working culture of internal staff showed significant improvement according to the feedback given by the customers (Martin 2014). ANZ worked a lot to find and nurture talent in its organization which proved to be very fruitful for them. Employees were duly rewarded for their good performance which motivated them towards change. ANZ kept everyone together as a group of people sharing same enthusiasm and interest to accept change. Recommendations Global finance has faced a lot of atrocities such as Global Financial Crisis of 1930. At that time the banking and finance sector took maximum hit as they are the fundamental entities of global finance. However, banks of Australia and New Zealand are more robust and strong than the banks in other parts of the world. This was due to the changes which they were willing to adopt to sustain themselves. There are certain recommendations which can be useful for ANZ bank if done before making any changes. Some recommendations are: Resource management: Available resources should be managed and used efficiently to bring about any change. These resources can be monetary, technological as well as human resources. Providing these resources to the employees can make things smooth during a transition. Career Structure: When a staff is realized that the change can improve his career prospect in the administrative matters and can lead him to greater heights he can be more inclined towards change. Strategic Approach: There should be a strategy which requires the employees to enhance their skill set by educating themselves about the new trends and technologies being used world over. They should feel the need of higher education which can be of financial orientation. There should be an agreement that the support staff will work in administrative field with definite roles and functions. There should also be a holistic plan for all the staff who work in ANZ bank. Conclusion It can be concluded from the above discussion that change in the working culture of any organization is inevitable. With rapid globalization there are numerous practices which are coming into existence now and then and ANZ bank needs to keep up with the pace of change. The above report contains all the theories of change adopted by the management of ANZ bank and the consequences of change which they experienced in due course of time. The report also mentions the theories and models of change leadership which ANZ bank deployed to successfully transit from the previous working culture to new methods of work. The above mentioned theories are derived from the case study of ANZ bank which was done in detail and with much analysis. There is always scope for some modifications in the form of recommendation which is also illustrated in the report. ANZ bank being the leader in banking institutions in Australia and New Zealand has gone through much to keep its supremacy in the market for over half a century and are justified so. Reference Al-Haddad, S. and Kotnour, T., 2015. Integrating the organizational change literature: a model for successful change. Journal of organizational change management, 28(2), pp.234-262. Blozis, S.A. and Harring, J.R., 2015. 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