Saturday, January 25, 2020
Human Resources and Organizational Strategy Introduction Organizational success or failure is dependent on a myriad of variables that can be challenging to measure and interpret. Success or failure can simply be luck and timing or an orchestrated and deliberate effort. As new technologies allow organizations the ability to rapidly measure and assess its internal and external environmental factors, more efficient strategies can be quickly implemented. The focus of this literature review is specifically on one of these mentioned variables. The paper will detail the relationship that Human Resources (HR) practices have with an organizationÃ¢â¬â¢s strategic goals and vision. HR is defined by the Society for Human Resource Management as, Ã¢â¬Å"The function dealing with the management of people employed within the organization.Ã¢â¬ (SHRM, 2011). The primary functions of administrative, development and management. Administrative functions include those tasks that are often considered Ã¢â¬Å"overhead,Ã¢â¬ such as benefits and payroll management. Development, or HRD, is defined by Swanson (2001) as, Ã¢â¬Å"Human resource development is a process of developing and/or unleashing expertise through organization development (OD) and personnel training and development for the purpose of improving performance (as cited by Hassan, 2007, pg. 2). Lastly, management is those strategic functions that align HR tasks within its own department and with the overarching organizational strategies. This paper will attempt to give a broad overview from the available literature within three areas. First, the paper will explore the historical relationships of HR and organizational strategy. Second, the paper will give an overview of current practices and trends. Lastly,... ...an approach of partnership is critical for organizations that want to gain competitive advantages. Butler, Ferris & Napier (1991) state this as, Ã¢â¬Å"the more management believes that HRM contributes to corporate success, the more its role will be integrated into the firmÃ¢â¬â¢s strategic planning process.Ã¢â¬ (as cited by Rose & Kumar, 2006, pg. 3). Additionally, organizations that apply energy and resources to HRD benefit from an increase in human capital. LÃ ³pez-Cabrales, Real & Valle (2011) state the benefits of building human capital as, Ã¢â¬Å"If the company adopts appropriate procedures of personnel management, human capital can be orientated to the achievement of sustainable competitive advantagesÃ¢â¬ (pg. 5). In conclusion, it is recommended that further literature reviews be completed to explore study results that supplement or add to information already reviewed. Ã¢â¬Æ'
Friday, January 17, 2020
Section 1: Executive summary CBA has put record profit of $8.68 billion dollar although the company is facing Royal Commission inquiry with regard to Financial Planning scandal (Yeates 2014). At present, CBA is a dominant leader in the retail-banking sector across the Australian financial services industry with premium price trade due to its largest customer base in Australia with its disruptive technology (Rose 2014). However, it is important for CBA to invest in service improvements and innovation to maintain its current market leadership position. Therefore to identify the success factor behind CBA, it is important to assess Australian Financial industry as a whole to examine the attractive features of Australian Banking sector and the internal strength of CBA to clarify its competitive advantages and capabilities. Industrial life cycle Australian Financial industry has exhibited the characteristics of shakeout stage lifecycle stages (Shapiro 2014). In shake out stage cycle, competition and price-war between financial institutions have intensified since big four banks are imposing discounts on variable interest rates available to a broader range of borrowers and lowering their fixed rates on mortgage offers (AAP 2014). Since then, services offered by big four banks become difficult to differentiate each other and this has helped the customers to broaden their option to have selective acquisition with the major banks. Further analysis will explain CBAÃ¢â¬â¢s clients and competitors power change due to industry evolution and its regional expansion strategy. Then, the further report will analyze the reason behind CBA to attain premium stock price over competitors and its ethical implication in financial industry. Section 2: Environmental Analysis External Analysis To analyze the external industrial environment that lead CBA to stay ahead of competitors, overall Australian Financial industry will need to be analyzed in term of PorterÃ¢â¬â¢s five forces followed by PESTLE model to observe how the competitiveness of the Australian Financial environment and macroeconomics factors have changed within the industrial structure (Thomas 2007). PESTLE Model Political-Legal Conservative supervisory of APRA, which approached more intensive than the Basel II minimum requirement, has assisted Australian Financial Institutions to have minimum impact during the 2008 GFC period (RBA 2014). Moreover, Four Pillar Policy which prevents mergers between AustralianÃ¢â¬â¢s big four banks to main competitive financial environment at low risk had also shielded the Australian Banking System from the worst of 2008 GFC (Durie and Gluyas 2009). Consequently, AustraliaÃ¢â¬â¢s strong and dynamic financial policies have favoured sustainable growth even in the hard time to former government owned incumbent CBA to withstand attack from aggressive competitors under a well-regulated financial environment (Brisden 2012). Economical During the pre GFC time, RBAÃ¢â¬â¢s interest rate has increased from 5.50% in 2000Ã to 7% in 2008 (RBA 2014). These inclining rates have favored big four banks during the crisis period since the high interest rates increased the bankÃ¢â¬â¢s deposit and helped Australian Banks to fund their debt in the hard time (Kerr 2011). Beltratti and Stulz (2009) also stated that the larger banks within strict regulations with more deposit financing at the end of 2006 had significant high return during the GFC. Therefore, during the crisis, the effect of GFC on Australian Financial Institutions were considerably low compare to other developed economies and CBA had also came through the economic turmoil with strong gain in deposit share by delivering $4.72 billion full-year net profit in 2008 (Leyden 2009). This has clearly showed that favorable Australian economical scape has favored CBA to retain premium share over competitors in post and pre GFC periods. Technology Eyers (2014) stated that Fintech (Financial Technology) scene is expanding rapidly in world financial centers. Financial Technologies are also challenging existing business models of financial institution since non-traditional players in Australian financial sectors are leveraging new innovation to deliver flexible services to consumers in a more convenient way (Wade 2014). However, CBA is operating efficiently in the dynamic technological environment. This is because, CBA has set its strategy to capitalize on the difference between its three big rivals by injecting $1.1 billion upgrade to its core banking system and invest $300 million a year in the high-tech modernization program (Smith 2012). So, this has clearly clarified that technology is one of the factors that lead CBA in a dynamic business environment to stay two to three years ahead of competitors (Faherty 2013). PorterÃ¢â¬â¢s five forces Next, PorterÃ¢â¬â¢s 5 forces will be used to determine the financial industryÃ¢â¬â¢s profitability, which influence over the success of CBA in Australian financial market. The threat of new entrants Nowadays, the digitalized financial system appears to be reaching maturity and every major big four banks are utilizing different channels of entrants to capture the market share (Eyers 2014). Consequently, there is a high threat from competitors in financial market beyond APRAÃ¢â¬â¢s highly regulatedÃ financial systems since potential competitors from overseas and domestic (e.g woolworths/Coles) could have used technologies to offer virtual and physical financial services in Australian Financial Market (Eyers 2014). Since then, this could eventually challenge the growth of CBAÃ¢â¬â¢s physical banking in the long run. However, CBA is still a major incumbent in a financial industry, which captures majority of market share with strong domestic presence in Australia (CBA 2014). Bargaining power of customers In Australian Financial industry, there is a high bargaining power of customers since Australian major big banks have brought similar financial packages with competitive rates to expand their market share in a concentrated market. As Australian market is favoring customers to bargain on the best rate, CBA has dynamically influenced the bargaining power of the market by offering an aggressive rate at low risk to itself for such customers by dropping its five years fixed home loan rate to record-low 4.99% in 2014(Yeates 2014). Rivalry among existing competitors Todays, the financial market in Australia appeared to be reaching maturity. Mason (2014) stated that financial industry in Australia has developed at compound annual growth rate of 13% over the past decade and ranked among the most profitable banks in the developed world (Australian Trade Commission 2011). Nevertheless, Australian Financial industry is considered as Red Ocean since big four banks could potentially face more mortgage competition each other for the concentrated market share (Janda 2014). Thus, if market leader CBA failed to maintain its current competitiveness in an aggressive market, the market share could be missed out and it will be given away to competitors. Section 2.2: Internal Analysis Strategic Resources Harrison (2014) stated that combination of tangibles and intangible assets of which control by the CBA could be identified as key resources to execute its strategic capabilities. Resources include teamwork among managers and Past/Present Chief executive officers, firmÃ¢â¬â¢s reputation among customers and its strong balance sheet has helped CBA to attain premium share price over competitors. The possession of CBAÃ¢â¬â¢s strategic resources ahead ofÃ competitors has favored its long-term survival and alleviated its competitive advantage. The strategic resources of the CBA will be demonstrated by using the value Chain framework. Value Chain Analysis Primary activities Operation Efficiency Smith (2012) stated that CBA appears to be ahead of competitors in its IT development strategy and this has induced CBA to attain not only cost and operational efficiency but also improve customer satisfaction. As a result, due to its new modernization in core banking system with best in class online banking platforms, CBA has attained the biggest improvement in its customer satisfaction score out of big fours and achieved Money magazineÃ¢â¬â¢s best innovative awards in 2014(News 2014). Moreover, CBAÃ¢â¬â¢s strong shareholder with a resilient balance sheet has also empowered full funded acquisition from internal and external stakeholders (Letts 2014). CBAÃ¢â¬â¢s significant balance sheet growth with high earning assets and deposit has empowered organic capital growth and investorÃ¢â¬â¢s confidence in investment. Therefore, it is assumed that strong financial strength with high profit return has amplified CBA to stay ahead rivals and trades its shares at premium over their dom estic competitors. Outbound Activities CBAÃ¢â¬â¢s strong acquisitions with Aussie Home loan and concrete financial brokers network have improved its home loan supply to the new customers in the financial market (Elsworth 2014). Moreover, CBAÃ¢â¬â¢s 1000 plus extensive branch network in Australia with highly efficient technology platform has also aided CBA to gain solid netbank customer loyalty bases in Australia (CBA 2014).
Thursday, January 9, 2020
| Information based decision making | Unit 5002V1 | | | 4/1/2015 | Task 1 (600-700 words): A.C.1.1 Ã¢â¬â Examine the nature of data and information Data comprises of factual information. Data are the facts from which information is derived. Data is not necessarily informative on its own but needs to be structured, interpreted, analysed and contextualised. Once data undergoes this process, it transforms in to information. Information should be accessible and understood by the reader without needing to be interpreted or manipulated in any way. Knowledge is the framework for understanding information and using it to inform judgements, opinions, predictions and decisions Ã¢â¬â a pyramidal relationship (See diagram 1) DiagramÃ¢â¬ ¦show more contentÃ¢â¬ ¦Therefore, I prefer circular model (Diagram 2) of the relationship as knowledge can influence what data is collected thus generating information to enhance knowledge that in turn can generate more data. There are different types of data and information. These are examined in Table 1: Type of data | Definition | Pros | Cons | Qualitative data/ information | A rich and detailed method to capture how and why people behave in certain ways and the impact of these processes on behaviour. | Captures participantÃ¢â¬â¢s lived experiences.Allows a deeper understanding of a topic.Smaller sample sizes so less expensive to do.Takes researcher bias in to account Ã¢â¬â an ethical strengthCan help to provide new ideas to shape a service for people. | Smaller sample sizes, so less generalizable to larger populations.Not possible to create statistics Ã¢â¬â which can help to shape and plan service effectiveness and deliveryTime consumingDifficult to make comparisons within the sample.Poor re-test reliabilityResults vulnerable to researcher bias and experience. | Quantitative data/ information | Analysis of numerical data to explain outcome, prevalence, frequency, time, cost. | Based on explicit knowledge and this can be easy and fast to capture and analyse.Results can be generalised to larger populationsCan be repeated Ã¢â¬â therefore good test re-test reliability and validityStatistical analyses and interpretation areShow MoreRelatedInformation Based Decision Making3396 Words Ã |Ã 14 PagesInformation Based Decision Making Terms of Reference .................................................................................................... 3 1. 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