Problems and Issues at OzBank Essay Example | Topics and Well Written Essays - 1750 words

Problems and Issues at OzBank - Essay Example From this discussion it is clear that OzBank has also shown an under-performance in the previous two financial years. For the past two decades, for example, the UK retail banks have felt the competitive pressures, leading banks to consolidate their positions; mergers and adoption of technology completed, and rising consumer demands with the objective of improving services. These efforts, however, failed to satisfy customers. ¹ OzBank is not alone concerning these issues. these are: focusing on customer service, streamlining processes, reducing jobs and developing the employees ´ skills. These measures are backed up by management, CEO, Paul Kelly. OzBank is committing around $1200 million in several key areas, such as: staff training, systems upgrades, process simplification, and new and improved technology. This paper highlights that one of the problems that OzBank has is that out of 40,000 full time staff, it is to reduce approximately 4,000 between January 2007 and January 2009. Almost half of the reduction has already taken place. This is part of the cost-reduction strategy. Ozbank had already reduced approximately 1500 jobs in the 2006-2007 financial year and 600 employees were retrenched in July 2007. The 4000 job loses is part of the scheme to cut $600 million in costs. The first reduction strategy is the personnel versus equipment/overhead. ConMan is a management consulting company with outstanding results on staff and customers that has been hired to help with the restructure of OzBank. ConMan had advised the bank beforehand of the new strategy ´s announcement however, they neglected to talk to the staff during this time. This may have been seen by the personnel and the union as intruders arriving into the workplace and making decisions about employees, making decisions of whe re the employee will end up, and making decisions without the inclusion in the decision-making process. Ms. Alex Faulkner, OzBank director of Human Resources claimed that the staff had been abreast of the restructuring strategy.