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Evaluation Report for the Bank of New Zealand (BNZ)

The focus of this report is a cultural analysis of BNZ, as well as an analysis of the fit between a

project orientation and BNZ‘s organisation’s cultural orientation.

An organisational cultural is a system of shared norms, beliefs, values, and assumptions, which people

together create shared meanings. Culture tells the story of the organisation.

Bank of New Zealand focuses on people and culture. The banks’ most success is a result of human

resources. The bank believes that when the employees are happy everyone else will be happy.

BNZ is unique bank, with unique tactics. There has not been ‘me too’ competitors of its strategy

since it is a high risk technique. The bank conveys a caring image; about both the customers and

employees.

Ten characteristics

Member identity

Member identity is defined as the degree to which employees identify with the organization as a

whole rather than with their type of job or field of professional expertise. BNZ’s employees are

quiet dedicated to their job. They participate in all the activities in order to help the bank grow.

Team emphasis

It is the degree to which work activities are organised around groups rather than individuals. BNZ

offers group training activities rather than individual. This promotes group-work and group-thinking.

Management focus

It is the degree to which management decisions take into account the effect of outcomes on people

within the organisation. BNZ gives training to its employees; this is a form of investment. The bank

would rather focus on changing the raw material into a useful output.
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Unit integration

It is the degree to which units within the organization are encouraged to operate in a coordinated or

independent manner. Group theory plays a big role within the bank. Branches are encouraged to

operate at times that fit the employees. Human resource is very important.

Control

Control is the degree to which rules, policies, and direct supervision are used to oversee and control

employee behaviour. Bank of New Zealand changed its bureaucratic and top-down focused systems.

They allowed more freedom within the workplace; changing from Management 1.0 to Management

2.0.

Risk tolerance

It is the degree to which employees are encouraged to be aggressive, innovative, and risk seeking.

BNZ took what the head office assumed to be a high risk and made it work.

Reward criteria

It is the degree to which rewards such as promotion and salary increases are allocated according to

employee performance rather than seniority, favouritism, or other non-performance factors.

Employees are rewarded with a day off, a day that suits them. Freedom is the key element within

the bank.

Conflict tolerance

Conflict tolerance is defined as the degree to which employees are encouraged to air conflicts and

criticism openly. Employees are encouraged to voice out their opinions; for instance, when they want

to take leave.

Means versus end orientation

It is the degree to which management focuses on outcomes rather than on techniques and processes

use to achieve those results. Chris and Blair, general managers of marketing, introduced the bottom-
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up system in order to do away with policies that included training at the expense of customers. BNZ

also realised a potential of team building.

Open-system focus

Open-system focus is the degree to which the organization monitors and responds to changes in the

external environment. After a long negotiant process, the head office allowed changes that improve

the bank and also correspond to the external environment’s needs.

Project orientation fit

The bank puts forward Human Resource department as it is the key component of income generation.

There is a marketing department which helps with publicity and a head office which looks over the

progress of the bank.

However, as any other company, BNZ has to abide by corporate laws, including government laws such

as tax policy. The bank continuously upgrades its customer relationship management (CRM) in order

to satisfy the needs of the customers. Therefore, the running of the business, as a project itself,

highlights unity and freedom. This is the type of culture that has made Bank of New Zealand one of

the top banks in New Zealand.

Conclusion

The bank (BNZ) is confident that with its culture, success is inevitable.