Commonwealth Implicated In Alleged Fraud - Myassignmenthelp.Com

Question: Discuss About The Commonwealth Implicated In Alleged Fraud? Answer: Introduction When Commonwealth bank lost its positive image in 2015 due to the unethical activities, its customer strength decreased a lot. Their customers even went to social media to complaint about its negligent behaviour towards them. Later, they disconnected themselves from this bank by removing their accounts for the bank. In this report, we have discussed about the learning organization process, methods, commonwealth bank scandals, the theories of learning organizations and the barriers to become a learning organization and recommendations. Company Background Commonwealth Bank, also known as CBA, is a multinational chain of banks which provides multiple financial services all over the globe. Some of the services provided by the bank are: Stock services, Insurance, Business banking, retails, investment, funds management etc. Since 2015, it made its mark as the largest Australian company on the Australian securities exchange. The headquarters of the bank is located in Sydney and it also operates in New Zealand, Fiji, Asia and US. It has about 11,000 branches and has about 51,800 employees in total. Until 2016, the total assets of the bank were US$740 (Corporate Finance Institute, 2018). Learning Organizational Process Organizational learning is a process in which an organization creates, retains and transfer knowledge (Gilaninia et al., 2013). These are the three key things on which the organizational process works. Knowledge Creation: Creation of knowledge actually means embedding the experience within the company. Experience comes when the knowledge directly connects with the subject. This exposure is through the tasks that involve all the processes, needs and the atmosphere of the company. Knowledge transfer: When the experience spreads and stays with the organization, it is knows as Knowledge transfer. It can be evaluated with the learning curves that show the improvements in process as the company progressed and also with the number of hours of labour are reduced. Knowledge Retention: This process is usually concerned with the type of knowledge that is absorbed in the organization. It is quantified by the cumulative knowledge that is sustained in the organization from a longer amount of time and it is kept in the repository. Structural Roles Related to Organizational Learning The structure of an organization gives it a process and a proper alignment to run itself. There are three common structures of learning organization (Caveo Learning, 2018). Centralized Structure: In this kind of structure, there are going on learning activities and learning programs which is usually handled by only a single leader or a manager. This structure gives a good connection between the activities that are helpful for the small organizations which have fewer resources to work in or it also is good for larger organizations when resources have standard skills and new learning can be provided to them. This type of structure helps in reducing the costs of the organization. Decentralized Structure: This structure, as the name also suggests, is the opposite of the centralized structure. It does not provide the coordination between the activities and neither the reporting is to any one leader for all. Though some of the best leanings and practices might be given in this structure as well. This provides flexibility in the system and variety too. Since there is no problem with the budget too, the budgets for learning are directly aligned with the activities being done in the organization. Federated Structure: The Federated structure is actually the combination of both the above shared structures. It provides centralized leadership as the services are shared and decentralized as it easily leverages the shared services. This one is the best for the organization. Technology and Knowledge Management Knowledge is what one gets out of it after experiencing it. Is is well used when one understands it completely and it could be well imbibed in the organizations as well as can be used again when needed. To keep the knowledge intact with the system, technology plays a very important role. Information technology is used to enhance the organizational memory in any organization. This technology supports the system of learning as well as maintains the guide so that it can be helpful again. Organizations have the strategic knowledge management which is also known as KM, effort in place (Tlu, 2011). Technology is used to support that effort. The use of technology as a tool to assist the management of explicit knowledge is unarguable. The technological concept to manage knowledge is to capture the data and information. One of the technology management is a bunch of practices. Type of technology used in knowledge management is Artificial intelligence technologies. Also which are used for case base reasoning and knowledge acquisition, computer based simulations, electronic discussion groups, Enterprise resource planning (ERP), video conferencing, management information systems, expertise locator systems and information repositories. Knowledge management systems and technology management work together and affect each other in order to achieve specific goals in the organizations. Analysis of ethical issues- Common Wealth Bank of Australia Common wealth bank is known as the largest bank for financing and profiting market. But it has been in news a few times because of the controversies it has been into. Earlier in 2015, it had been in news for supporting reef threatening mining projects and had been providing funds to the Great Barrier Reef project. Since then the protests against the bank started. Later in 2016 also, CBA was found guilty in a Ponzi scheme fraud (News, 2018). Also recently in 2017, CBA was again found guilty for money laundering and breaching issue. The financial agency, Australian Transaction Reports and Analysis Centre (AUSTRAC) had put civil proceedings in the court of Australia too for this breach (Mann, 2017). The IDMs (Intelligent Deposit Machines) which are also known for producing automated cash for public and which allows the consumer to deposit or take out money even when the bank is closed , were being used by money laundering syndicates and using a few of them for drug import and networking . Those syndicates were able to deposit money anonymously many times out of which once it was shown in the CBA report that 21 million Dollars were deposited in 11 CBA accounts. CBA was unable to show the legitimate data for this. Organizational Learning Theories and Analysis There are three organizational theories which are: 1) Experiential Theory 2) Adaptive and generative learning theory and 3) Assimilation theory. Experiential Theory: This theory has been very helpful since its inception as it has contributed a lot to the leadership and the organizational development. It basically states that learning will come only after grasping and then transforming it. It has four stages of the learning cycle - abstract conceptualization (AC) and concrete experience (CE) comprises of the grasping component, while reflective observation (RO), and active experimentation (AE) makes up the transforming experience component (Leavitt, 2011). Analysis: When any scandal takes place, it has a learning imbibed in it. While experiencing the outcome of the scandal, learning is being done. Adaptive and generative learning theory: This is the theory which mostly is used when the brainy or mental models like images, profound ingrained assumptions, pictures, generalizations etc. According to Senge, adaptive learning is keeping the foundations of the existing knowledge as well as creating the new one so that the objective is achieved. This theory is given much importance in the organizations because of the new knowledge development. Analysis: If understanding is done within a firm about its efficiency, cost, market agility and competitive companies, organization can maintain the gaps if any. Assimilation theory: This theory is different from the above two theories as this one is completely based on the behavioral approaches to organizational learning. The action based changes that take place by the individuals performance. This performance actually gives learning a different characteristic such as quantifiable, observable and rational. Analysis: An organization should have the clarity and knowledge about itself as an organization. With clarity, scandals could be prevented. Barriers to the organizational learning at the Commonwealth Bank There are a few barriers for the commonwealth bank. They are: Innovation: Organizations learning comes with the innovation of the new knowledge that is generated and then implemented into the system. When new ideas are generated and implemented, the organization faces great heights. Now if the organization become as large as the CBA is, bringing new innovation and changed are a little difficult. The biggest barrier for the CBA was to not bring that change because it will be very time consuming and might take forever to implement. Regulator: The regulatory barrier should be removed by the organization so that the financial sector be planned to act in a better way. Like giving retirement products to women and empower them. Misconduct: The CBA has lost many of its valuable customers because of the misconduct of the staff. The staff of CBA was not performing their tasks on time and also recently it came out that some of them were also involved in forgery of the huge financial numbers which lead the bank to a huge loss. The rude and unethical behavior of the staff has led the banks reputation at stake. Ineffective control: Control in between the staff makes the staff more disciplined but that was not the case in CBA. The staff was able to forge the documents and finances due to the ineffective control. Maintenance of the records should be done properly so that they can be checked accordingly and whenever required. Technological Changes: There were some customers of the bank who had issues with the inappropriate online services. They even started writing complaints on social media about this. But CBA did not change it. Ultimately, CBA lost many of its customers (Walk me, 2017). Recommendations to Commonwealth Bank Aim: First of all to create an ethical environment in the bank, the leaders should have a map as to how they will put their foot forward to make it that way. They should have a direction. And to have a direction they should be clear with the ambience that is going on and should have a very positive approach towards the stakeholders (Jones, 2010). Method: ) First they should empower all the stakeholders of the organization. All should be able to give and take ideas. 2.) All the internal knowledge should be shared with everyone. 3.) Leaders should be able to have every small amount of information of the surroundings as to what is actually happening. 4.) Changes according to the new policies and new technology or culture should be done irrespective of the people who are resisting these changes. One should have an open mind for this. Evaluation: The evaluation of any learning organizations can be done by SWOT analysis. SWOT analysis will give a complete understanding of the strengths and weaknesses of the organization as well as will be helpful for analyzing the opportunities and the threats too (Techtarget, 2018). Corporate Social Responsibility Corporate social responsibility is to be aware of every movement about the impact of the organizations business on the stakeholders, customers and the environment. It helps in maintaining the ethical and developing environment for the organization. CSR includes many responsibilities such as Human rights, employee evaluation, corporate governance, health and safety, working conditions and the contribution to the economy on the whole. The aim of CSR should be to imbibe change for an organization to sustain itself in the market. Whatever unethical activities were done at the bank, it should have been rectified and make new changes or policies for this to not happen again in the future (Unido, 2018). Conclusion In this report we have discussed how CBA was a hot topic when it emerged as an unethical organization, what were the unethical moves due to which it had to go through a lot and it lost a lot because of these activities. The methods for it to become a learning organization are also discussed. As well as the points like CSR, learning organization theories, process, its structural roles and the barriers are also discussed in the report. References Caveo Learning. 2018. 4 Keys to Optimizing Learning Organization Structure. [Online] Available at: https://www.caveolearning.com/blog/4-keys-to-optimizing-learning-organization-structure. [Accessed on: 17 January 2018]. Commonwealth Bank. 2018. Our Company [Online] Available at: https://www.commbank.com.au/about-us/who-we-are/our-company.html. [Accessed on: 17 January 2018]. Corporate Finance Institute. 2018. Overview of Australian Banks. [Online] Available at: https://corporatefinanceinstitute.com/resources/careers/companies/top-australian-banks/. [Accessed on: 17 January 2018]. Gilaninia, S., Rankouh, M. A. A, and Gildeh, M. A. P. 2013. OVERVIEW ON THE IMPORTANCE OF ORGANIZATIONAL LEARNING AND LEARNING ORGANIZATION . [Online] Available at: https://www.omicsonline.org/open-access/overview-on-the-importance-of-organizational-learning-and-learning-organization.pdf. [Accessed on: 17 January 2018]. Jones, G.R. and Jones, G.R., 2010. Organizational theory, design, and change. Leavitt, C. C. 2011. A Comparative Analysis of Three Unique Theories of Organizational Learning. [Online] Available at: https://files.eric.ed.gov/fulltext/ED523990.pdf. [Accessed on: 17 January 2018]. Mann., P. 2017. COMMONWEALTH BANK OF AUSTRALIAIN THE MIDST OF A MONEY-LAUNDERING SCANDAL. [Online] Available at: https://internationalbanker.com/banking/commonwealth-bank-australia-midst-money-laundering-scandal/. [Accessed on: 17 January 2018]. News. 2018. Commonwealth Bank staff implicated in alleged fraud: report. [Online] Available at: https://www.news.com.au/finance/business/banking/commonwealth-bank-staff-in-alleged-fraud-report/news-story/a208534f0e782c8a514c18e1b9f44ea6. [Accessed on: 17 January 2018]. Research Gate. 2018. The role of technology in knowledge management: trends in the Australian corporate environment. [Online] Available at: https://www.researchgate.net/publication/228902643_The_role_of_technology_in_knowledge_management_trends_in_the_Australian_corporate_environment [Accessed on: 17 January 2018]. Techtarget. 2018. SWOT analysis (strengths, weaknesses, opportunities and threats analysis). [Online] Available at: https://searchcio.techtarget.com/definition/SWOT-analysis-strengths-weaknesses-opportunities-and-threats-analysis. [Accessed on: 17 January 2018]. Tlu. 2011. Knowledge Management Technologies. [Online] Available at: https://www.tlu.ee/~sirvir/Information%20and%20Knowledge%20Management/Framework%20for%20IKM/knowledge_management_technologies.html. [Accessed on: 17 January 2018]. Unido. 2018. What is CSR? [Online] Available at: https://www.unido.org/our-focus/advancing-economic-competitiveness/competitive-trade-capacities-and-corporate-responsibility/corporate-social-responsibility-market-integration/what-csr. [Accessed on: 17 January 2018]. Walk me. 2017. 7 BARRIERS TO ORGANIZATIONAL LEARNING. [Online] Available at: https://blog.walkme.com/7-barriers-to-organizational-learning [Accessed on: 17 January 2018].