The objective of the report is to understand Australias Bank case study and address the different HRM practices adopted by them to ensure that individuals are performing towards their KPIs underpinned by ethical behaviour. It advises on recruitment at our entry-level positions and discusses to have fair judgement while recruiting people. It also reports on three HRM practices focussing on how the human resource activities (e.g. planning, recruitment, human resource development) need to change and how the organization can support and preserve jobs of the employees of the organization.
Effective performance management
Recruiting at an entry-level position.
Hiring the right talent
Recruiting, planning and human resource development
Recruiting technologically skilled people.
Human resource development
Retraining older adults.
This report aims to understand the case of top four Banks of Australia and how they were indulged into unethical leadership of laying off thousands and hundreds of employees and closing the branches at various places just to meet up the cost of automation which was possible with the help of artificial intelligence (Fountaine et al. 2019). While there was another bank named Australias whose aim was different from the four banks. It was based on the principle that it is the organization's responsibility to take care of the employees as well as customers because they are an important stakeholder that can make and break the growth and productivity of the organization. The report emphasis on the strategies and practices that need to be changed in the organization right from the effective performance to the recruitment of the people at the entry position and hiring of the right talent. It further discusses the techniques of recruiting technologically skilled people and retraining of the older adults so that they can cope up with the changes in the technology that is being acquired by the people. It also emphasizes the training and development programs for the betterment of the employees so that they do not fear of getting laid off from the organization.
Effective performance management is a process undertaken by the human resource department of the organization to identify whether the employees are fulfilling their duties effectively or not. It also finds whether employees of the organization are aligning with their duties as defined in their goals or not. Performance of employees keeps on evolving thus it difficult to navigate. Performance management is not just reviewing the annual performance of the candidates it is much more than that (Cunningham 2017). It also helps in increasing the knowledge of the employees and their skill sets. There are different ways to check the effective performance of the employees. These include honest feedback and reviews, KPI metrics and so on.
KPI metrics helps the managers to identify that the employees are fulfilling their duties and responsibilities properly or not. Every organization define some KPI's based on which they decide whether the employee is performing well in the or there are areas where there is a need for improvement. The KPI's of the organization are thus selected with the utmost care and are mostly aligned with the organization’s strategy and business environment. There are different types of KPI’s like compensation, cultural, employment, performance KPI and so on (Jha and Jha 2018). Once the company defines all the KPI’s next step is to implement all these KPI’s by creating a balanced scorecard. A scorecard is a cluster of data that helps the HR team to critically analyze whether all the members of the organization is fulfilling their responsibilities properly or not. It is a way by which the managers monitor the workforce indicators, diagnose issues, workforce statistics and financial impacts. It helps in knowing that employees are following their KPI in an ethical or unethical manner. Effective performance management is very important to part of the organization to determine the behaviour of the employees.
It is observed that the top four banks in Australia were only hiring people on the executive levels following an unethical leadership but Australias think different. There aims and objectives are for the employees and the public. The bank knows the rule that if it keeps its customer and employee happy it will automatically increase productivity and growth. Australias human resource department suggested that hiring at the entry-level positions along with the C-suite is essential because people are needed at all the parts of the organization. The ability to find and hire the right entry-level talent will give the company a highly professional employee willing to work with enthusiasm throughout their professional career (Acikgoz 2019). It is therefore important to tweak recruiting strategies for entry-level talent and hire them in the organization.
Not every work cannot be performed by the c-suit employees as they do not have the learning agility in them it can only be found in the employees who have freshly started their career and have the appetite to reach and become successful. These type of candidates are proved to be an asset for the organization. The bank must take the procedure and processes of the selecting candidate seriously and must attract the potential talent towards the organization by coming up strategies and schemes (Meagher 2017). If all the banks and other companies will start boycotting the entry-level job then young talent will not get the opportunity to come and showcase their talent of being exceptionally well. The unemployment rate among the youth in Australia is already high and will increase further if the youth will not get a chance to prove themselves. It may happen that the banks that candidates at the fresher level can also compete with the higher executives through their knowledge and critical thinking style. Thus, the banking sector must create vacancies for even entry-level positions.
The cultural biases were seen in the top four banks of Australia were highlighted in the report of the Royal Commission. This indicates that leaders while selecting the candidate must not see the short term profit that they are receiving rather they must select a candidate who has the talent and skills to perform functions of the banks properly maintaining integrity which is required for security purpose. HR must be fair during the selection process, they must not select candidates according to gender, sexual appearance or nationality. The hiring process must be flawless and should be done honestly (O'Bryan and Casey 2017). A wrong hire can have a detrimental impact on the banks because it is about the fiancé of the entire nation. No compromise can be done in this regard. While hiring the candidate instead of seeing the gender, caste and creed the mangers must look for a multi-tasking gene.
A right candidate would be a person who will be willing to do a lot of tasks simultaneously and will also show a keen interest in the earning and development process. Selection of a candidate is not easy because an HR has to look at all the aspects like whether the person will be able to be a good fit for the organization or not whether he or she will be able to understand the culture and can help in creating a conflict-free atmosphere in the bank or not. After critically thinking on every aspect the selection must be made (Donate et al. 2016). HR must not make the candidate feel shy and nervous instead they must take the interview in a very informal manner so that they can know more about the candidate. It will not help in selecting the right talent but will also help the candidate to think something out of the box that would benefit the organization in the long run. Besides this, HR must select the candidate fairly based on the performance of the individual. They must keep the compensation according to the work that they are selecting for.
Artificial intelligence in the finance sector will cut off jobs of hundreds and thousands of employees in the coming years. The impact on humans would be largest as it will shed many peoples works and putting them in the unemployed category. Australia being a country of casual workers will suffer the most (Hultin et al. 2017). The big four banks in Australia are trimming the jobs of the people due to increased automation. But Australias Bank needs to plan different to keep its employees intact in the organization. Australias is highly based on social responsibilities since its inception. The bank was founded on the sense of responsibility towards the public and employees. Thus even if it is planning for automation to compete with the rest of the banks in Australia it needs to again think on its recruitment, planning and human development areas.
Australias brought AI in the recruitment field to automate the scheduling of the interviews, answers questions of the candidate query in real-time and provide them with the feedback. This automation will help the recruitment team to spend more time on hires instead of wasting it on managing things. The head of Australias known that inherently human-focused work will survive. There will be the need of the customer service staff that will tackle all the queries by the human mind as these cannot be solved by the outcome of the algorithms inserted in the devices. AI no doubt can solve many queries on its own with the help of algorithm but it needs to send the complex theories for human inoculator and for these reasons the bank is thinking to hire technologically skilled people. Skill-based hiring is gaining tractions in these days (Saddler et al. 2017). That is managers are now hiring the candidate based on their requirements instead of solely depending on the candidate's credentials. Australias thus is planning to remove the job description and degree requirement. They are now focusing more on changing the mindsets of people. The bank is thus providing training to the hiring managers so that they can think in another direction of hiring people based on skill sets.
AI can take over all the jobs through pattern recognition and algorithms but it cannot do things which a human can like Australias can use AI for hiring employees but the final decision of hiring will still be in the hand of the human because a human can creatively think and engage the employee to the organization but AI cannot read the mind of the candidate and can do activities which a human can. AI just a mere tool which cannot compete with human intellect. The bank’s HR department will thus start spending more time on creating and shaping the culture keeping in mind the goals and ambitions of the company that is to establish an environment where employees, as well as the customers, feel satisfied working (Hassan 2016). In this way, the company will also be able to fulfil its responsibilities of managing the well-being of both customers and that of the employees. Executives are safe and secured and there is no need for them to worry because human bot does not have the IQ to deal with the wok of C-suit employees. It is because AI is not good at context switching and only an executive can deal with managing a spreadsheet at the same time managing a relationship, running a business meeting and dealing up with the client whose company is currently in a state of bankruptcy for all these sorts of work executives are necessary and keeping them in the workforce saving jobs of everyone is a new paradigm on which Australia bank is moving ahead.
Human resource department of Australias is thinking to mould the current working environment into an agile one where they can come and meet the needs of the individual employees. Human resource department will not only make employees learn artificial intelligence but will also make them prepared for the new roles and challenges that they need to face during work. The company is trying to improve the skillsets of their people by asking them to get indulge in learning and development programs (Sekhri and Cheema 2019). There is a need that human improves their critical thinking, analytical skills, emotional intelligence and cultural awareness so that they can be an asset to the organization. The bank is also trying to improve its employees by helping them carry out a personalized learning experience based on their job roles and skillsets (DeCenzo et al. 2016). It will help in proactively addressing the existing gap that has aroused due to artificial intelligence in the finance sector. The bank is also trying to make employees feel comfortable by providing them with the assignments and cross-functional projects based on their skill set. The need of the hour is to redefine the relationship between humans and machine. There is no one size fits all approach to successfully managing the change and thus it taking small steps but with utmost care so that the employees of the organization do not feel as if there is no need of them any more in conducting the operations (Zaitouni et al. 2020). Australias can also come up with a national training program to teach front line officers empathy to deal with the clients.
Australias understand the importance of its employees and automation. The managers there believe that in spite of using technology for the work, there is a need for skilled people because technology cannot display empathy, make somebody feel understood or solve a fuzzy problem. These functions can only be performed by a human being. Australias bank is thus not thinking to lay off its employees rather it is planning to retrain the ageing working population as they are the biggest challenge for the company currently (Rogers 2018). It is observed that earlier only 10 per cent of the training were provided but now they have to make it 50 per cent so that most of the old workforce can learn how to operate devices, application and robots for improving the performance and generating revenues of the company. Increasing training proved to be better compliance than closing out branches as done by the top four national banks in the country. Australis, on the other hand, is trying to treat its employees fairly (White and Robinson 2019). The manager and CEO of the bank are supporting the staff members in this transition. Australis understand that laying off employees will never help in gaining the trust of the employees and customers. The bank with its new strategies can surely become one of the best and successful banks in Australian history.
It can be concluded from the above findings that to sustain in a competitive market it is important to consider certain HRM practices that are different from the others. The effective performance of the organization can be checked by determining the KPI’s of the organization. These are aligned with the goals of the company so that all the employees while working behaves ethically. It also states that the organization must not only higher the executives but also create vacancies at the entry-level part of the organization. It further lays importance on hiring the right candidate irrespective of the gender, cast creed and nationality. It also covers recruiting and planning strategies that can help enhance the organization to increase the chances of employees in the organization. It was found that the artificial intelligence was downsizing the employees due to increase in automation in the banking sector but Australias come with different strategies to overcome the issue and started retraining older adult employees and introduced some learning and development programs to enhance the knowledge and skills of the employees. It also discussed the planning of human resources in a better way to increase the productivity of the organization simultaneously increase the growth percentage.
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