As an organization develops, it establishes among many things a sense of structure. In this; depending on its purpose of existence and how it carries out processes to meets its goals, it attempts to structure its staff and departments to optimize resource usage and maximize profits. Simply put, it is the way the company is organized to perform work. However as a generally noticeable trend, businesses are changing over the years and as Craig A. Stevens (1995) sites, "There may not even be one right organizational structure in any one company. Chances are, if all your divisions look the same on the organizational chart you have a problem.”
Organizational Structure of Australian Banks
The first bank to be established in Australia was the Bank of New South Wales, which was established in Sydney in 1817, with Edward Smith Hall as its cashier and secretary. Through the 19th and early 20th century, the Bank grew rapidly to open branches throughout Australia and Oceania. From these humble beginnings, today, Australia’s 4 largest banks – The Commonwealth Bank of Australia, National Australia Bank, ANZ Banks and Westpac Banks, together hold approximately $1.9trillion in assets on their domestic books and are reasonably large by international standards ranking in terms of consolidated group assets, among the top 60 banks worldwide. Apart from the four major banks, Australia’s banking system also currently consists of seven other Australian-owned banks and 43 foreign-owned banks operating either as branches and/or locally incorporated subsidiaries. While the assets of the 4 major banks grew about 1.7 times from 1990 to 2010. Over the same period, commercial bank assets grew 1.2 times, the assets of nonbank subsidiaries grew more than 3.0 ti...
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...rovide the framework, infrastructure and support that the operating groups require to manage their business. These are the Corporate Operations, Financial Management, Legal and Governance, and Risk Management Groups.
In addition to their banking activities, many Australian-owned banking groups (including the four major banks) have sizeable funds management operations in Australia and, to a lesser extent, overseas. Two Australian-owned banks, Suncorp Bank and AMP Bank, belong to financial groups that generate more of their income from insurance and funds management activities than from banking activities. Macquarie Bank – the sixth largest Australian-owned bank in terms of domestic banking sector assets – undertakes predominantly investment banking activities, generating around two-thirds of its net operating income from trading income, and fees and commissions.
The Organisation structure of a company addresses the fact that every organisation has specific units that are responsible for different roles and actions in the organisation and that no department within the organisation stands alone, they are intertwined. The organisational chart or structure should be designed to divide up the work load, responsibilities and roles to be done
... Gross Development Produce generally, there is a persistent and pronounced trend towards consolidation of these institutions in Australia. With the combination of resilience contributions into the system, consolidation has generally resulted in the average size of superannuation institutions increasing significantly (measured by assets) during the decade to $2.6 billion in June 2012.
Westpac Institutional Bank May 2010, ‘Westpac Market Insights Australia, New Zealand, G3 & China’. Retrieved June 6th, 2010 from - http://www.westpac.com.au/about-westpac/media/reports/australian-economic-reports/
Founded in 1937 as a housing based financial institution, St. George as Australia's foremost building society have now become Australia's fifth largest bank and one of the top 20 publicly listed companies in Australia. St. George has business spanning all the aspects of the financial industry including retail banking, institutional & business banking, and wealth management. The emphasis St. George has on its customers makes St. George stands out from other Australian banks. Customer service is St. George's priority in business culture, they are constantly investing and developing better relationship with its customers2.
Historically, banks link savings to investment. Deposits are paid in by savers, the bank’s liabilities, some of that money is held in capital reserve and the rest is lent to businesses and entrepreneurs as loans, the bank’s assets. The savers will be paid interest on their deposits, and the enterprises will have to pay interest on their loans, higher than the interest paid to depositors; the difference in interest is the banks revenue. This is a fairly mundane business model which banks have been doing for over 600 years. Recent declines in interest rates have led to decreased profit margins on this type of intermediation. Banks needed to diversify, and the deregulation of UK banks in 1986, and the emergence of light touch regulation, allowed them to do such. Retail banks from here on offered services such as mortgages, pension plans and insurance. Investment banks, traditionally offering corporate services like merger and acquisition advice, now operate in proprietary trading in wholesale markets. OECD reports that non interest income accounts for 40.7% of credit institutions income in 2003, up from 25.5% in 1984. All this change in how banks operate, fuelled by declining margins and self-regulation, has led to the us...
Australia has had one of the most outstanding economies of the world in recent years - competitive, open and vibrant. The nation’s high economic performance stems from effective economic management and ongoing structural reform. Australia has a competitive and dynamic private sector and a skilled, flexible workforce. It also has a comprehensive economic policy framework in place. The economy is globally competitive and remains an attractive destination for investment. Australia has a sound, stable and modern institutional structure that provides certainty to businesses. For long time, Australia is a stable democratic country with strong growth, low inflation and low interest rate.(Ning)
First of all, organizational structure determines the hierarchy, the levels of communication, and how job tasks are formally divided, grouped and coordinated within an organization (Langton, Robbins, & Judge, 2013). There are six key elements that managers need to address when they design their organization’s structure: work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and formalization (Langton et al., 2013). The way in which an organizational structure is constructed and implemented can affect company productivity.
Organisational Structure, Culture, and Management Style of a Business C2 An Analysis of How the Organisational Structure, Culture And Management Style of the Business Affects its Performance and Operation and Help It to Meet Its Objectives The organisation structure of Wednesbury IKEA The organisation structure in the ‘Appendix section’ belongs to the Wednesbury branch of IKEA. Wednesbury IKEA is a large formal organisation and it is best suited to a hierarchical organisational structure. This is because; there are more employees as it goes downwards from each level.
In order for one to evaluate and identify with the diverse business structures, he/she must be aware of the meaning and standards that makes that structure. Various businesses functions in different ways as the world is full of technology and new structures, company cultures and new ways in which companies are run. In order to fully grasp the concepts of Organizational structure and culture in the movies, I will use the Movie Up in the Air and The Devil Wear Prada movies to analyze a business scenario from them.
Restricted view of organization among employees Inexact measurement of performance Narrow training for potential managers 2. Divisional structure is a type of departmentalization in which positions are grouped according to similarity of products, services, or markets. With the divisional structure, each division contains the major functional resources it needs to pursue its own goals with little or no reliance on other divisions.
Lateral Economic 2007, ‘Other people’s money II: Making Australia a supplier of funds management to the world’, Lateral Economic, vol. 2, no. 1, p. 2.
Organizations must operate within structures that allow them to perform at their best within their given environments. According to theorists T. Burns and G.M Stalker (1961), organizations require structures that will allow them to adapt and react to changes in the environment (Mechanistic vs Organic Structures, 2009). Toyota Company’s corporate structure is spelt out as one where the management team and employees conduct operations and make decisions through a system of checks and balances.
Organizational structure is the way that an organization arranges people and jobs so that work can be performed and goals can be achieved. Good organizational design helps communications, productivity, and innovation. Many organization structures have been created based on organizational strategy, size, technology, and environment. Robbins and Judge (2011, p. 504) listed three common structures: simple, bureaucracy, and matrix. In this post the author will describe the matrix structure, and discuss its advantages and disadvantages.
Banks sector is playing an important role in economies. The banking industry, as the classic and the most influential of financial intermediaries, facilitates economic operations. Financial sector in the worldwide country has been changes over these years by looking the changes of financial structure environment and economic conditions. Thus, banks are a very important point to financial system and play an important role as control and contribute growth to the economic sector.
Organizational structure within an organization is a critical component of the day to day operations of a business. An organization benefits from organizational structure as a result of all it encompasses. It is used to define how tasks are divided, grouped and coordinated. Six elements should be addressed during the design of the organization’s structure: work specialization, departmentalization, chain of command, spans of control, centralization and decentralization. These components are a direct reflection of the organization’s culture, power and politics.