Threats and Opportunities for Middle Management: New Technology and Competitive Banking

Abstract

Since the 1970s the Australian banking industry has witnessed dramatic change as a result of the introduction of new technology and competitive banking. Such conditions have produced a fundamental change in the nature and management of bank work. This paper addresses what these changes have meant for middle management personnel. It is concluded that for branch managers and accountants there has been a change in the content of their jobs, which is reflected in a reduction in their autonomy and decision-making power, with a new emphasis being given to marketing and selling activities. The new competitiveness in the banking industry has encouraged staff to adopt an 'individual orientation' to their work. It is argued that such changes testify to a clear change in the management of the banking industry and suggest that middle management staff in banks will become increasingly hostile or resistant to further change, with a reduction in the number of middle management personnel, brought about by an increase in the technical control of operations through computerization.