Human Resource Management Assignment: Impact of Environmental Factors on Common Wealth bank

Question

Task: For this human resource management assignment task, you will be required to find and research a real Australian-based company that also operates within the United States.
You will need to conduct extensive research on this organization focusing on HR issues and policies relevant to the company. You will prepare a 2000 word report that outlines how the HR practices of this company have been affected by external environmental factors.

Answer

Introduction
External environment plays significant roles in shaping the future of any business; however, business organisations can hardly control these factors. This report aims to discuss the impacts of contemporary external factors on the HRM policies and practices of the Commonwealth Bank Australia (Comm Bank) which also operates in countries like the US, the UK and New Zealand. The changes that this organisation has introduced recently in order to address environmental challenges will also be identified in this paper. Finally, relevant recommendations will be formed at the end of this discussion.

Background of The Company
The Commonwealth Bank of Australia is a multinational banking service providing company founded in 1911. It was established as a government entity; however, within 1991-1996, this organisation got fully privatised by the Australian government. The headquarter of this company is situated in Sydney, Australia. The Comm Bank offers a wide range of services to its customers. Their services include superannuation, broking, fund management, retail banking, institution and business banking, insurance, investment and so on. This organisation has undergone severe controversies concerning organisational behaviours, governance and ethics on several occasions(Haisken-DeNew, Ribar, Salamanca, Nicastro, & Ross, 2019).The name of this huge MNC got associated with issues such as environmental degradation (mining projects), customers’ data loss, money laundering and so on. A report from 2017 states that this organisation is not paying proper remuneration to nearly 7000 of its employees who are also the lowest-paid ones (Hilton, 2017).This organisation arrived in the US market (the New York branch) in 1977. This branch has mainly focused on areas such as utilities, natural resources and infrastructure development. This branch also offers various global level services such as foreign exchange, fixed income products, interest rate derivatives etc. The human resource management strategies of this organisation in the US and Australia will be discussed in the following sections.

HR Policies and Practices in TheUS and Australia
The Comm Bank have a few common human resource management strategies that they follow in all of their locations. Their HR practices and policies are as follows/p>

Values: Innovation, diversity and flexibilities are the core values of this organisation as long as their HR strategies are concerned. Comm Bank appreciates and celebrates the socio-cultural differences among their employees. This organisation focusses on providing development opportunities to its employees. Their teams involve people with varied expertise (business banking, analytics, engineering. Retail banking, technology, risks and compliance etc.).

Financial wellbeing: Comm Bank follows the competitive remuneration strategy. Their financial benefit schemes also include strategies such as superannuation, performance incentives, employee share plan and so on. Added to these, employees also enjoy account discounts, home and personal loans, insurance, credit cards, and financial planning. Their income protection plan protects employees during periods of physical illness and injuries.

Recognition and Development: Comm Bank provides 100% financial support and flexible leave options so that their employees can complete their educational courses. They also offer professional membership opportunities that help their employees in achieving their career goals. Children of the employees can be benefitted from Comm Bank’s educational scholarship programs. Lifestyle and Health: they offer both paternity and maternity leaves to their employees (gender-neutral) and a special bonus to manage the caring expenses. Their MyCoach plan has been designed to provide employees and their close family members with professional and confidential counselling services. they also support (financial support, counselling and leaves) those employees that are dealing with family violence (Rewards & benefits - CommBank., 2021).

Working Environment: they allow their employees to work as conveniently as possible. Employees can work fewer hours than regular if their job roles permit them; however, this does not leave any negative impacts on the perks and benefits they receive. People can reduce their workload through job-sharing options. Employees can take (if eligible) or purchase extra leaves to strike a balance between their professional and personal lives(Rewards & benefits - CommBank., 2021).

Community Development: They allow their employees to take volunteering leaves if they want to serve their communities. They provide useful mentoring services to the students. They offer professional opportunities to people regardless of their socio-cultural identity, age, gender, sexual orientation, and disabilities. They also make donations to support various community development programs (Rewards & benefits - CommBank.,2021).

Impactful Environmental Factors
Changes in the Political Realm (Political Factors)
Being an international entity, the Commonwealth Bank is exposed to the risk of changing political conditions and relations among different countries. the Australian government is extremely supportive of the banking industry, provided it offers secured services to the customers (Banking and finance | Treasury.gov.au., 2021).Companies in Australia need to follow a few HR policies such as Equal Employment Opportunities, Anti-Harassment, Anti-bullying, occupational Health and safety etc. to conduct their businesses in a hazardless manner.

The US, on the other hand, is currently experiencing a shift in terms of political power. The previous Trump Government was not very supportive of the foreign expatriates; the immigration law introduced by the previous government reduced the number of immigrants that hold an actual legal status. In 2020, president Trump suspended US entry application of many expatriates to deal with Covid-19 pandemic. The current Biden government has decided to offer a legal immigration status to nearly 11 million individuals(Joe Biden to prioritize legal status for millions of immigrants., 2021). Such a strategy is definitely beneficial for Commonwealth Bank and its inclusive HRM policies. It will increase the availability of human resources to the HR managers. Besides the Trump Government limited the use of foreign workers, especially in the field of technology.The amount of minimum wage also got increased. They narrowed the scope of ‘speciality occupations’ as well. The Biden Government is expected to change the H-1B visa and high-skilled Visaplans(Six things Joe Biden will likely do on immigration - Biden and immigration policies., 2021). Another report published by the HR Executive shows that the current political change will require companies to positively address issues such as equality, diversity, trust-building and fair employment opportunities (Starner, 2021).

Global Recession, 2020 (Economic Factors)
According to World Bank, the recent pandemic has dragged the world economy into the deepest recession after the World War 2; the global economy will shrink majorly (5.2%) due to the prolonged lockdown in the industrial field(COVID-19 to Plunge Global Economy into Worst Recession since World War II., 2021). The banking sector especially will face financial crises due to the decline in growth and credit. Under such circumstances, their HR activities will get affected too. Generally, organisations reduce their budget for HR in areas like employee engagement, training etc during financial crises. In such cases, it becomes more difficult for employees to maintain their career growth and mental wellbeing (Helm, 2020).

Impacts of Covid-19 (Legal and Social Factors)
The Coronavirus Pandemic has changed the business environment entirely. Laws related to personal leaves, long service leaves and annual leaves have changed in Australia (FW Act, section 524). Various other amendments including the Jobkeeperschemehave been introduced in the FW Act. Paid domestic and family violence leaves will be stored for 2021. Many changes have been introduced in awards and casual employment strategies as well. If employers wish to introduce mandatory vaccination scheme for employees, they need to justify their point (Coronavirus: Guidance for HR professionals and employers., 2021). The Covid19 has also made it mandatory for companies operating inside Australia to maintain a safe workplace for the employees. The issues they need to considerinclude proper risk assessment, physical distancing (1.5 metres), cleaning (regular disinfecting) and hygiene (guidance to the employees)(COVID-19 Information for workplaces., 2021). The HR managers in Commonwealth Bank need to address all of these rules successfully. Added to that they need to handle the changed mentality of their employees as a report published by the Reuters shows that, even though Australian State says that work-from-home facilities will no longer be available, employees are not interested invisiting their offices(Staff, 2021).

Companies in the US also need to deal with several social and legal changes. The US government revised its policies related to paid sick leave and introduced a new law called 'Families First Coronavirus Response Act' or FFCRA. The US government also introduced many temporary laws such as ‘emergency Paid Sick Leave Act’, and ‘emergency family and medical leave expansion act’ to support employees during the pandemic (COVID-19 and the American Workplace, 2021).Added to that, Covid-19 has left severe mental impacts on the workforce. Therefore, it has become essential for HR managers to successfully communicate with the employees during the uncertain period, maintain a continuous flow of work, and strike a balance between employees’ needs and potential cost cuts (van Hoek, Gibson, & Johnson, 2020).

Impacts of Disruptive Technologies
Disruptive technologies such as blockchain, AI, Big Data, Cloud Computing, Robotic Process automation and evolving cybercrime technologies will affect the banking industry severely in near future. Countries like Australia and the US are fully exposed to disruptive technological advancements. Along with making changes in the business strategies, companies need to train and prepare their human resource to deal with these challenges(Bongomin, GilibraysOcen, OyondiNganyi, Musinguzi, and Omara, 2020).

Recent Changes Introduced by The Company

• Commonwealth Bank has introduced a few strategies to address the pandemic related crises. General Managers of this organisation for example conduct regular15 minutes check-in meetings so that employees can talk about the challenges and pressures they are currently undergoing. They offer their employees with masks so that they can safely go home. Other facilities offered by this organisation are wellness programs, meditation sessions, work from home facility, and proper sanitisation(New challenges, new opportunities., 2021). while employee reviews for CBA’s Australian Branches are mostly positive, employees in the New York branch think that maintaining work-lifebalance is difficult in this company, compensation is extremely low and the managementdoesn’treally follow the organisational culture (Commonwealth Bank of Australia New York City, NY Reviews., 2021).
• As per a recently published news report, the Common Wealth bank believes that the recent economic crises will leave a worse impact compared to the global recession in 2008. This bank has adopted many measures to support the national economy. For example,cutting down the fixed home and business loan rates, reducing fees for the small size business and so on. They are also trying to support customers financially during thissituation (Morgan, 2020). However, all of these positive actions might have negative impacts on the HRM strategies of this organisation due to shortage of resources.
• Commonwealth bank is very open to technology. They believe technology is the key to greater customer satisfaction. Advanced Technology can help them offer safe and secured services to their customers. CBA already has adopted the blockchain technology and BioToken system to facilitate transaction concerning biodiversity issues. They have focused on strengthening their technologies during the pandemic situation as technology will be the greatest platform for banking services in future. This organisation is also preparing its employees for the future through effective training and development.

Conclusion
Based on this report it can be said that the Commonwealth Bank needs to address the recent changes in the business environment successfully in order to stay ahead of their competitors. The changed political scenario in the US is a positive sign for this company as it allows them to access a huge pool of resources. The changed rules and regulations in both the US and Australia, on the other hand, are great challenges for this company as ensuring employee safety and security has become a complicated task now. People’s mentality during the post-Covid19 situation has also changed massively. Added to that global recession and technological advancement have become crucial factors for this organisation and its HRM team. They have addressed some of the issues successfully, however, there is still room for improvement.

Recommendations

• The Joe Biden government can be really beneficial for the MNCs, thereby the CommBank needs to introduce necessary adjustments in their hiring and selection procedure. They should focus on recruiting talented people from diverse ethnocultural backgrounds. It will not only strengthen their workforce but also improve their organisational culture in the US (better representation).
• The Comm Bank needs to address the recent economic crisis by adopting proper cost-saving policies. For example, they need to remove all of their nonessential operations. They should develop a tight budget and invest money in those fields that will servethe company in the long run (including employee development strategies) (Couto, Plansky, &Caglar, 2017).
• Comm Bank has addressed the Covid-19 related challenges successfully. However, they need to make sure that their organisational culture and values are actually being applied in reality. Proper monitoring methods should be adopted to improve the performances of their managers (Kra?nicka, G?ód, &Wronka-Po?piech, 2018).

References
Banking and finance | Treasury.gov.au. (2021). Retrieved 1 February 2021, from https://treasury.gov.au/policy-topics/banking-and-finance

Bongomin, O., GilibraysOcen, G., OyondiNganyi, E., Musinguzi, A., &Omara, T. (2020). Exponential disruptive technologies and the required skills of industry 4.0. Journal of Engineering, 2020. From https://www.hindawi.com/journals/je/2020/4280156/ Commonwealth Bank of Australia New York City, NY Reviews. (2021). Retrieved 1

February 2021, from https://www.glassdoor.co.in/Reviews/Commonwealth-Bank-of-Australia-New-York-City-Reviews-EI_IE7922.0,30_IL.31,44_IM615.htm?filter.iso3Language=eng

Coronavirus: Guidance for HR professionals and employers. (2021). Retrieved 1 February

2021, from https://www.ahri.com.au/about-us/media-and-advocacy/coronavirus-guidance-for-hr-professionals-and-employers/

Couto, V., Plansky, J., &Caglar, D. (2017). Fit for growth: A guide to strategic cost cutting, restructuring, and renewal. John Wiley & Sons. From https://books.google.co.in/books?hl=en&lr=&id=cK6GDQAAQBAJ&oi=fnd&pg=PR9&dq=budget+and+cost+cutting&ots=BY-eD3V-WF&sig=t8g8DGLaUzOCXrdvG2k1r6H-vCA&redir_esc=y#v=onepage&q=budget%20and%20cost%20cutting&f=false

COVID-19 and the American Workplace. (2021). Retrieved 1 February 2021, from https://www.dol.gov/agencies/whd/pandemic

COVID-19 Information for workplaces. (2021). Retrieved 1 February 2021, from https://www.safeworkaustralia.gov.au/covid-19-information-workplaces COVID-19 to Plunge Global Economy into Worst Recession since World War II. (2021).

Retrieved 1 February 2021, from https://www.worldbank.org/en/news/press-release/2020/06/08/covid-19-to-plunge-global-economy-into-worst-recession-since-world-war-ii Haisken-DeNew, J., Ribar, D. C., Salamanca, N., Nicastro, A., & Ross, J. (2019). Improving the Commonwealth Bank of Australia-Melbourne Institute observed financial wellbeing scale. From https://fbe.unimelb.edu.au/__data/assets/pdf_file/0009/3045708/CBA_MI_Tech_Report_No_3.pdf

Helm, D. (2020).The environmental impacts of the coronavirus. Environmental and Resource Economics, 76, 21-38.

Hilton, J. (2017). Commonwealth Bank allegedly ‘ripped off’ 7,000 employees, claims union.Retrieved 1 February 2021, from https://www.hcamag.com/au/news/general/commonwealth-bank-allegedly-ripped-off-7000-employees-claims-union/148166

Hunt, V., Prince, S., Dixon-Fyle, S., & Yee, L. (2018). Delivering through diversity. McKinsey & Company, 231.

Joe Biden to prioritize legal status for millions of immigrants. (2021).

Retrieved 1 February 2021, from https://www.business-standard.com/article/international/joe-biden-to-prioritize-legal-status-for-millions-of-immigrants-121011700087_1.html

Kra?nicka, T., G?ód, W., &Wronka-Po?piech, M. (2018). Management innovation, pro- innovation organisational culture and enterprise performance: testing the mediation effect. Review of managerial science, 12(3), 737-769. From https://link.springer.com/article/10.1007/s11846-017-0229-0

Morgan, E. (2020). 'Very' worried CBA boss labels coronavirus crisis worse than GFC.

Retrieved 1 February 2021, from https://www.abc.net.au/news/2020-03-20/coronavirus-covid-19-economy-commonwealth-bank-worse-than-gfc/12072856

New challenges, new opportunities. (2021). Retrieved 1 February 2021, from https://www.commbank.com.au/articles/careers/commbank-employees-coronavirus-work-stories.html

Rewards & benefits - CommBank. (2021). Retrieved 1 February 2021, from https://www.commbank.com.au/about-us/careers/rewards-and-benefits.html#financial

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Staff, R. (2021). Australian state says work from home is over, but employees still shun

office. Retrieved 1 February 2021, from https://www.reuters.com/article/health-coronavirus-australia/australian-state-says-work-from-home-is-over-but-employees-still-shun-office-idUKKBN28O06A

Starner, T. (2021).Biden to focus on workplace diversity. Retrieved 1 February 2021, from https://hrexecutive.com/diversity-equity-likely-to-be-central-to-bidens-employer-approach/ vanHoek, R., Gibson, B., & Johnson, M. (2020). Talent Management For a Post?COVID?19 Supply Chain—The Critical Role for Managers. Journal of Business Logistics. From https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7753586/