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Leadership Models Methods and Applications - Case Study Example

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The paper "Leadership Models Methods and Applications" Is a great example of a Management Case Study. The change process within an organization is a highly involving endeavor which the management must not only take adequate time to prepare for but also exercise great caution during the implementation process. …
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The paper "Leadership Models Methods and Applications" Is a great example of a Management Case Study. The change process within an organization is a highly involving endeavor which the management must not only take adequate time to prepare for but also exercise great caution during the implementation process. Effective change often requires the identification of the forces for organizational change and then working with these factors to provide proactive solutions to the identified shortcomings. The case of ANZ Bank effectively demonstrates how the management works towards achieving change in the organization and promoting efficiency. Exceptional leadership qualities are portrayed by John McFarlane, the CEO who leads the company through a difficult financial position to a highly respected company. The incoming CEO Michael Smith is also considered an enthusiastic leader like McFarlane. Besides providing analyzing the change process at ANZ Bank, the paper also identifies the organizational factors affecting cultural learning, challenges faced during the implementation of transformation strategies, and the possible theory of motivation applicable in enhancing the organization’s efficiency.

  • Case Questions

Question 1: Identify the key forces for organizational change (both internal and external) at ANZ Bank. Evaluate the extent to which, these and other strategies were deployed to create a ‘readiness’ for change at ANZ. In your response, indicate the effectiveness or otherwise of these strategies in creating a readiness for change.

Discussion

Forces for organizational change are highly dynamic and can originate either from the internal or external environment. ANZ’s change process was pegged on both internal and external factors which can be justified by inefficiency at the bank in the early to mid-1990s and the changing trends in the market environment respectively. There was a need to address the bank’s internal weaknesses and also respond to market changes and the stakeholders’ views.

Internal factors

Poor performance at the ANZ was the most significant internal factor catalyzing the change process. The company had recorded years of poor performance and it was apparent that change was needed to effectively maneuver through this difficult challenge. ANZ had endured a significant number of bad debts and this certainly affected its financial performance vehemently. Notably, the employee morale was low and there was a recognizable trend of customer dissatisfaction. These factors were probably responsible for the poor financial performance of the bank because customers are less likely to be satisfied if employees are not enthusiastic about their jobs. ANZ also suffered from poor organization, hence the reason why the management was not able to control the firm’s resources to enhance the bank’s competitiveness. In readiness for the change, McFarlane sought the services of McKinsey and Co in order to study the bank’s culture. In the study by McKinsey and Co, a considerable discrepancy between the bank values and employee values was identified and it was established that too much bureaucracy, silo mentality, and too much control of information was apparent at the bank. The change was necessary as indicated by the various internal factors, hence the development of the organizational transformation program that aimed at achieving long-term growth and competitiveness. This would ensure that the operational challenges existing within the firm were mitigated.

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