HRMT20025 – Assessment Item 2 – Report marking criteria Name: Student No: The report will be assessed on the extent to which it meets each of the following criteria; Content: Does your report...

Running Head: HUMAN RESOURCE MANAGEMENT    1
HUMAN RESOURCE MANAGEMENT         2
HUMAN RESOURCE MANAGEMENT
Table of Contents
Introduction    3
Human Resource Management (HRM) Issues and Employment Relations Issues in Commonwealth Bank of Australia (CBA)    3
Their Impact on Recruitment of Managers from other Nations for Australian Banking Industry    4
Employment and Business Background to Working in the Australian Banking Sector as per Financial Services Royal Commission 2019    5
Impact of HRM Issues on Work Life of Manager in Australian Banking Sector    5
Opinions of Authoritative Entities on Misconduct in Australian Banking Sector    6
Response of Federal Government on Recommendation of Royal Commission    7
Response of Oppositions on Recommendation of Royal Commission    8
Response of Banking Industry on Recommendation of Royal Commission    8
Implications of these Recommendations for HRM Practices and Employment in Banking Industry    9
Conclusion    10
References    11
Introduction
Recruitment or staffing involves Human Resource Planning (HRP), explained as the forecasting method of international organisations to meet their future demand and supply of people with required skills and talents in required numbers. The HRP has to be closely related and linked to business plan of the companies with similar goals and objectives of bringing in required type and number of employees. Recruiting and appointing employees to respective positions is the primary goal of HRP in most organisations, based on their capability to perform effectively and efficiently.
    Hayne’s Royal Commission put a light on unethical conducts of major banks and adversely affected the share prices. There are still possibilities of several potential risks still un-identified, to impact on the share prices. The banking industry of Australia had 1.5% revenue growth and -2.9% earnings growth, which did not portray a good outlook in 2019, as the sector needs a number of changes to be made to face the upcoming challenges (Letts, 2017).
Human Resource Management (HRM) Issues and Employment Relations Issues in Commonwealth Bank of Australia (CBA)
    The Commonwealth Bank of Australia (CBA) has been alleged of owing millions of dollars to more than 7000 part-time employees regarding unpaid superannuation entitlements. The Finance Sector Union claimed that lowest paid employees were ripped off by Australia’s largest bank since 2009. It plans to lodge the complaint with the Fair Work Commission of 9.5% super underpayment unless the bank pays back the superannuation. The bank’s spokesperson gave a statement to the headquarters that the bank is addressing the concerns very seriously and it is committed to complying with obligations (Letts, 2017). The bank investigated and made it clear that any issue identified from the investigation would be rectified.
    It was found that 89% of the under paid Commonwealth Bank workers were women who did overtime and worked for additional hours to manage peak periods and staff shortages. Employees under the age of 30, working in hospitality, cleaning and construction industry were mostly the victims of short-changed superannuation (Royal Commission, 2019). The bank also denied payments to customers having insurances where they must have received some benefits under the policies. Incorrect charges were charged from the Home Loan Protection insurance accounts before the loan was even drawn.
Their Impact on Recruitment of Managers from other Nations for Australian Banking Industry
    The issues that we discussed above created a negative image of Australia’s largest bank, Commonwealth Bank nationally as well as internationally. The misconduct that took place resulted in a huge loss of work force as well as goodwill of the company. Though the incident occurred with the part-time employees of the organisation, the higher-level management was blamed for that, which resulted in higher turnover rates in the company (Wilson, 2018). Even the HR department faced problems with recruitment of managers from other nations for the bank, due to its negative goodwill in the market. The bank needs to go through an enormous change in policies and regulations and needs to rectify its mistake and make necessary amendments.
The bank needs proper strategies to attract talented professionals with skills, knowledge and experience in the finance industry, who can make a difference to the bank. It is in extreme need of retaining the managers it has gotten, as they have faced the situation up-front, have more experience regarding the situation, and might be useful for better and effective decision-making. As stated by Collings, Wood and Szamosi (2018), the more they invest their potential in the company, the more beneficial it would be in improving the situation of the bank. Even the bank must focus in creating an attractive work culture to attract employment from other nations and to cover up the negative factors, showing the world that the bank is trying to amend its mistakes and is ready to improve and develop its policies to be beneficial for the people.
Employment and Business Background to Working in the Australian Banking Sector as per Financial Services Royal Commission 2019
    The Royal Commission has already resulted in change in the mentality from sales-driven to customer-led approach with incentives aligned to sales culture and removal of third-party distributors or more tight regulations are implemented. The regulators of financial services had an approach ‘too cosy’, supporting banks and shareholders more rather than customers. As mentioned by Stone, Deadrick, Lukaszewski and Johnson (2015), additional burden of compliances is delivered to the banks via regulators and banks have to be very careful in its operations. The commission benefits the small and new market entrants as they make better investment and lending decisions and...