Introduction

Human Resource Management is the process of developing, applying and evaluating policies,
procedures, methods and programs relating to the individual in the organization. Human resource
management includes Human Resource Planning, recruiting, selection, training and development,
compensation, performance management and employee development. Effective human
resource practices relate to company performance by contributing to employee and customer
satisfaction, innovation, productivity, and development of a favorable reputation of the firm in the
industry.

Objective
The report has been undertaken to assess the Strategic Human Resource Management practices of
Standard Chartered Bank with the prime focus at formulation of strategies and tactics and how it
contributes in implementing the strategies.

Methodology
The information related to the project has been collected from the Standard Chartered Bank,
Dhanmondi Branch . The methodology adopted is as follows:

Collection of data by conducting interviews of officials of the Bank

Frequent visits
Internet Search
Study of Banks annual reports

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A comprehensive study of the literature has been carried out the see the factors that help in achieving a
competitive advantage in a dynamic banking.

History of Standard Chartered Bank

Standard Chartered is the worlds leading emerging markets bank headquartered in London. Its
businesses however, have always been overwhelmingly international. Standard Chartered is name after
two banks, which merged in 1969. They were originally known as the Standard Chartered Bank of
British South Africa and the Chartered Bank of India, Australia and China. Of the two banks the
Chartered Bank is the older having been founded in 1853 following the grant of Royal Charter from
Queen Victoria. The moving force behind the Chartered Bank was a Scot, James Wilson, who made his
fortune in London making hats. James Wilson went on to start The Economist, still one of the worlds
pre-eminent publications. Nine years later, in 1862 the Standard Bank was founded by a group of
businessmen led by another Scot, John Paterson, who had immigrated to the Cape Province in South
Africa and had become a successful merchant. Both banks were keen to capitalize on the huge
expansion of trade between Europe, Asia and Africa and to reap the handsome profits to be made from
financing that trade. The Chartered Bank opened its first branches in 1858 in Chennai and Mumbai. A
branch opened in Shanghai that summer beginning Standard Charterers unbroken presence in Chine.
The following year the Chartered Bank opened a branch in Hong Kong and an agency was opened in
Singapore. In 1861 the Singapore agency was upgraded to a branch, which helped provide finance for
the rapidly developing rubber and tin industries in
Malaysia. In 1862 the Chartered Bank was authorized to
issue bank notes in Hong Kong. Subsequently it was also
authorized to issue bank notes in Singapore, Privilege it
continued to exercise up until the end of the 19 th Century.
Over the following decades both the Standard Bank and the
Chartered Bank printed bank notes in a variety of countries
including China, South Africa ,Zimbabwe, Malaysia and
even during the siege of Marketing in South Africa. Today Standard Chartered is still one of the three
banks, which prints Hong Kongs bank notes.
Today Standard Chartered is the worlds leading emerging markets bank employing 30,000
people in over 500 offices in more than 50 countries primarily in countries in the Asia
Pacific Region, South Asia, the Middle East, Africa and the Americans. The new millennium bas
brought with it two of the largest acquisitions in the history of the bank with purchase of Grind lays
Bank from the ANZ Group and the acquisition of the Chase Consumer Banking operations in Hong
Kong in 2000. These acquisitions demonstrate Standard Chartered firm is committed to the emerging
markets, where the Bank has a strong and established presence and where they see their future growth.

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Standard Chartered in Bangladesh

Standard Chartered Bangladesh (officially M/S Standard Chartered Bank
Bangladesh Pvt. Ltd.) is a banking and financial services company headquartered
in Dhaka, Bangladesh and a wholly owned subsidiary of Standard Chartered.
Standard Chartered has been operating in Bangladesh for over a hundred
years. After the partition of the subcontinent in 1947, Bangladesh became East
Pakistan, thereafter Standard Chartered Bank started its business in 1948, in the
port city of Chittagong. Standard Chartered Bank is doing well in Bangladesh.
Debit card fee is at least 690 BDT (inclusive of 15% VAT) per year. Account
maintenance fee for savings account is 690 BDT (inclusive of 15% VAT) which is
taken as 345 BDT (inclusive of 15% VAT) each six months (usually on January 1
and June 30).
Standard Chartered Bank is currently promoting Saadiq Banking. Standard Chartered Bank Bangladesh
has recently, as of January 2014 eased the procedure of getting International Credit Card and have
come into competition by providing Visa and Master cards.
While private banks like Dutch Bangla Bank Limited and BRAC Bank Limited have booths all over
the country, the bank is holding limited space here though it is one of the largest foreign banks in
Bangladesh. It has branches in Bogra, Chittagong, Dhaka, Khulna, Savar and Sylhet. They
have ATM booths almost all over Dhaka and Chittagong. Standard Chartered Bangladesh has bought
out the Bangladesh operations of various other foreign banks such as Grindlays Bank ] and American
Express.

Global Finance World's Best Internet Banks Award 2014

Standard Chartered won the "Best Consumer Internet Bank" in the Global Finance Worlds Best
Internet Banks Award for the fifth consecutive year. Keeping users banking experiences as the priority
in our enhancements, we aim to provide our customers with a secure, convenient and easy banking
platform.Customers can now transfer funds almost instantly between Standard Chartered and the 13
other pioneering banks through the Fast & Secure Transfers (FAST) service. Our mobile banking
platform "Breeze Mobile" is now compatible with any smart devices and this provides customers
with greater accessibility to their finances with the Bank. With the Fast Cash feature on Breeze Mobile,
customers can now identify the nearest ATM for the convenience of quick and hassle-free cash
withdrawal.
Other award-winning initiatives includes the 60-second online Approval-in-Principle Service for Credit
Card and Personal Loan, the revamped website with a shorter URL (sc.com/sg), the secured Online
Unit Trust trading platform, branch digitization initiatives and online shopping payment gateway. Our
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new and enhanced services open up a new chapter of digital banking experience to the customers in
Singapore.

Services of Standard Chartered Bank:

The Operational Plans of the Bank are as follows:

Deposits
Loans
Domestic Banking
Trust Operation
Treasury Operations

Standard

Operational Strategies:
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Chartered

Bank

To steadily develop the lending business and upgrade the quality of loan assets.
In lieu of Islamic banking the Bank aims to aggressively promote fee-income business to raise
non- interest revenue sources.
To provide efficient services to fulfill customers needs and create a high-quality service image.
To actively set up business units in major business centers of the country.
To aggressively develop international banking operations and seek opportunities to develop
strategic alliances with other banks to create new products and services.

HRM practices of Standard Chartered Bank

Human resources management includes a variety of activities , and among them is deciding what
staffing needs an organization has and whether to use independent contractors or hire employees to fill
these needs , recruiting and training the best employees , ensuring they are high performers dealing
with performance issues and ensuring the personnel and management practices conforms to various
regulations. Activities also include managing their approach to employee benefits and compensation,
employee record and personnel policies.
HRM practices have shown to be valuable to any companys success. Thus to be successful in a global
market place, the challenge for all businesses regardless of size is to invest in human resources. They
need to select and retain talented employees, undertake employee training and development programs
and dismantle traditional bureaucratic structures that limit employees ability to be innovative and
creative.
The commonly practices HR activities include the following:

HR Planning
Recruitment
Selection
Training and Development
Compensation
Promotion and Demotion policy
Transfer
Retirement

1. HR Planning
Human resources planning is a process
that
identifies current and future human
resources needs for an organization to achieve its goals. Human resources planning should serve as a
link between human resources management and the overall strategic plan of an organization.
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Strategic HR planning is an important component of strategic HR management. It links HR

management directly to the strategic plan of your organization. Most mid- to large sized organizations
have a strategic plan that guides them in successfully meeting their missions. Organizations routinely
complete financial plans to ensure they achieve organizational goals and while workforce plans are not
as common, they are just as important.
Even a small organization with as few as 10 staff can develop a strategic plan to guide decisions about
the future. Based on the strategic plan, your organization can develop a strategic HR plan that will
allow you to make HR management decisions now to support the future direction of the organization.
Strategic HR planning is also important from a budgetary point of view so that you can factor the costs
of recruitment, training, etc. into your organization's operating budget.
Standard Chartered Bank follows the following process.

2. Recruitment
Hiring the right people for the right position is one of the most important functions of any banks since
it operates in the service industry. The Human Resource Department of National Bank Ltd performs
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this function. Staffing not only deals with recruitment but is also involved in giving training to
employees, performance appraisal and many other related activities. Recruitment at National Bank is of
two basic types, one is the hiring of fresh new employees and other is the recruitment of experienced
employee. Every year new graduate students are recruited at the entry level as Management Trainee or
Trainee Officer, depending on individual qualification. For each of this entry-level post, applicants
have to sit for several written assessment test before moving on to a series of interview, from where the
best are chosen. On the other hand, someone having previous banking experience might not have to sit
for any written exam but is directly assessed by the top or mid level management through interviews.
Standard Chartered Bank designs the process like:

3. Selection
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Employee selections at Standard Chartered Bank are based on knowledge, skills and talent. The bank is
committed to provide the equal opportunities to all employees regardless of gender, race, age,
disability, nationality, ethnic origin or material status. Never the less, Standard Chartered Bank also
identifies what unique strengths each individual brings, to the roles they carry out and the development
of these strengths.
Standard Chartered Bank mostly uses face-to-face interviews as their selection method. Therefore,
when suitable applicants are been chosen through the recruitment process the bank set appointments for
interviews with them. Afterwards, upon arrival, have each interviewee fill out a job application form
and give them a copy of the position's written job description. After interviews are completed, human
resource manager of Standard Chartered Bank selects two or three candidates that fits for the vacant job
and have them come in for a follow-up interview. This is where the management discuses about salary,
benefits etc. Thereafter, the final employee selection takes place based upon these second-level
interviews and makes an offer to the Human Resource Manager's first choice.

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4. Training & Development

Individual development is critical to our future business success. The bank's performance will only
continue to improve if we develop our people - you. To develop our people is to invest in our future.
Standard Chartered Bank know you have the motivation to succeed, to be good at your job and to
progress as far as you can.
From the day you join SCB, you will have your own Individual Development Plan to identify your
needs and track your progress. They provide a wide range of training programs designed to meet your
specific needs and we help you build up your personal strengths through a Staff Learning &
Development Plan:

Orientation - Every person who joins Standard Chartered in China will go on a 2-day
comprehensive orientation course to gain a stronger understanding of the bank and its
businesses. This also provides you with a valuable chance to meet senior members of staff and
colleagues, nurturing team spirit.

Product Training - We provide in-depth product training into key banking products to help you
learn more about the products we provide.

Skill Training - We encourage members of staff to learn new skills through credit workshops,
sales and negotiation skills, and project management courses, among others.

On-the-job Training - There are many opportunities for on-the-job training and job rotation to
increase your exposure to the rest of the business.

Self-learning - We send out CD-ROMs and books so staff can study up on their trade and credit
knowledge. You can then decide when you want to attend our Trade Skill Assessment (TSA)
and Credit Skill Assessment (CSA) courses.

Management Development Training - We offer staff training in strategic perspectives and

business goals management skills, people management, networking and customer focus.

Specific Competency Training - And we ensure all our staff excel in product knowledge,
regulatory requirements and the unique techniques required of their role.

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5. Compensation
At Standard Chartered Bank, the compensation package provided to the employees can be divided into
two categories. One comprises of the sales personnel who are compensated on their ability to meet their
targets. Second is compensating the executives who are responsible for the overall functions of the
Bank.
5.1 Compensating the Sales Force:
How the Bank presents itself to its corporate as well as individual customers is dependent upon the
ability of its sales force. These are the individuals who take an active approach is getting the message
out about the Banks products and services. How effectively the sales team markets the Bank and in
run, how successful it is, is directly related to the sales compensation program. The key to a successful
sales compensation program is achieved in three steps:
1. Clearly defining sales goals that are realistic but challenging
2. Tracking and measuring performance against goals
3. Rewarding achievement with competitive and motivational compensation Sales compensation
packages typically comprises one or more of the following components:

1.Base Salary
Periodic incentives tied to short-term goals
Annual Incentives tied to longer-term sales activities
Commission-based incentives
Perquisites to facilitate sales efforts

5.2 Executive Compensation:

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The way the Bank pays its top management plays an important role in motivating the critical
performance needed to run it effectively. Base salary is not the only component of the typical
executives compensation package. Executive compensation packages typically comprise the following
components:
1. Base Salary
2. Annual Incentives
3. Long-Term Capital Accumulation
4. Deferred Compensation Arrangements
5. Supplement Benefits and Perquisites
6. Special Severance and Retirement Arrangements
7. Employment and Change of Control Agreements
Standard Chartered Bank follows the following process :

6. Job Transfer, Promotion & Demotion of Standard Chartered Bank

Transfer is a change in job where the new job is substantially equal to the old in terms of pay, status
and responsibilities. It is neither promotion nor demotion but merely a horizontal or lateral movement
of an employment.

Purpose for Transfer

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Variation in the volume of work

Providing training to employees
Rectification of poor placement
Satisfying personal needs of employees
Meeting mutual needs of employees
Meeting organizational needs
Avoiding fatigue and monotony
Giving punishment for negligence
Providing convenience to employees

Transfer policy

Transfer should be made only when absolutely necessary

Basis of transfers should be properly decided
Large scale transfers, frequent transfer and transfers for the sake of transfer should be avoided
Responsibility for initiating and approving transfer decisions should be clearly defined
Transfer should not be made as a punishment oars a revenge on an employee
Transfer should be made after taking concerned employee into confidence
A request for transfer by an employee on sound personal ground should be considered
sympathetically and granted promptly
All transfers should be made in the best interest of the organization
Management should prepare a sound transfer policy
An employee should be given an opportunity to appeal to an appropriate authority over the
decision of his transfer.
The effect of the transfer on the pay and seniority of the transferred employee should be clearly
evaluated
Transfer should be clearly defined as permanent or temporary
The performance of the employee should be assessed impartially before transferring him.

7. PROMOTION

Promotion of employees from lower positions to higher positions is one aspect of personnel
policy of management
Promotion acts as an incentive for self development through education, training, active interest
in the work assigned.
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Features of promotion
Promotion means giving higher position
An employee gets opportunity to work at a higher level
Promotion is rightly treated as a reward or an appreciation of efficiency
Partiality and favoritism should be avoided.

Methods of Promotion
Promotion by seniority: Promotions are given as per seniority i.e. The period/ length of
service of employees in the enterprise. Seniority has-been defined as the length of recognized
service in an org. Here the date of appointment serves as the basis of promotion. Promotion by
seniority is a normal practice in government departments and banks etc.
Promotion by merits: It is an alternative to promotion by seniority. Promotion are given as
per the merits of worker, which include educational qualification, experience and qualities such
as honesty, sincerity and involvement in the work assigned. Management always prefers
promotion by merits while employees and union demand promotion by seniority.

8. DEMOTION

Along with promotion, the terms demotion & separation are also used.
Demotion is the antithesis of promotion wherein an employee is demoted to the post at a lower
level. For example, a manager may be demoted as supervisor.
Demotion is lowering of status, salary & responsibilities of an employee
It is a type of punishment for serious mistakes or irregularities on the part of the employee. It is
lesser punishment as compared to dismissal.
Promotions are very common but demotions are rare & used as a method of last resort.
Moreover, demotion carries adverse psychological effect on the employee.

Methods of Demotion
Separation-It

is

step ahead of demotion. It

involves cessation of

services of personnel from an

organization

contractual

.The

comes to an end. If a

relationship

parson retires, is a type of

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separation. However, separation is also possible before the expiry of the period of contract. In
case of layoff, retrenchment, discharge or voluntary retirement, separation takes place but it is at
the initiative of the employer/ management.
Layoff - Temporary separation under specific circumstances.
Retrenchment-Sort of permanent separation by an employer with due notice as per statutory
provisions. The employee is also paid compensation.
Discharge or dismissal- Permanent separation of an employee from the organization for
violation of organizational rules (dishonesty, carelessness, drunkenness, etc).

Voluntary retirement- The employer offers attractive package of compensation to those who
are willing for separation on voluntary basis. Such retirement leads to permanent separation
from the job.

9. Retirement policy
There is no better time than today to plan for retirement. A sound retirement savings plan is essential
for your future financial security, and to enjoy your retirement days to the maximum. Standard
Chartered Retirement Plan is an effective financial toll to maintain a decent standard of living upon
retirement. The contributions to this plan are accumulated to build up substantial capital, which is
utilized to provide pension payment to the policyholder from the age of 60 years onwards. The plan can
be tailored to ones needs by adding a range of protection benefits.

Unit Accumulation and Investment Fund

Every contribution paid towards the plan is invested in an internal investment fund selected by the
customer. The contributions are utilized to buy units of the Fund at the prevailing offer price. The
objective of the funds is to maximize capital growth by investing in a balanced portfolio spread across
a wide range of investment experts who adjust the mix of the underlying investments in the light of
economic conditions and investment opportunities.

Selection Option

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Under this option, the new policy holders of Standard Chartered Bank have an option to select a unit
fund based on their risk appetite and investment objective at the inception of their policies. The policy
holders will have an option (conditions apply) to select from the following three unit funds:

EFU Managed Growth Fund

EFU Guaranteed Growth Fund

EFU Itemed Growth Fund

Fund Acceleration Premiums
The is a regular contribution plan but also gives the flexibility to top-up the savings for depositing
surplus funds as lump sum contributions in the plan. These lump sum contributions can be made at any
time during the policy term.

Access

to

Savings at all times

The plan provides

the accumulated fun
After
the
been paid for two
can be withdrawn
value with specific

complete access to
value at all times.
contributions have
full years, the Fund
for its full or partial
conditions.

Applicable

Ages and Terms

The plan is available for individuals from 18 years to 60 years of age. The minimum savings term
available is 10 years while the maximum is 25 years. The savings term has to be selected in such a way
that the maximum age of the customer at the end of the savings term is not more than 70 years.

Premium Contribution
The minimum annual premium under the plan is 18,000 tk. For Fund Acceleration Premium payments,
the minimum contribution is 18,000 tk and the maximum contribution in a year is 5 times the current
years annual regular contribution

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SWOT Analysis
The following SWOT analysis captures the key strengths and weaknesses within the company, and
describes the opportunities and threats facing the outside of the company.

SWOT Analysis
1. Inclusion of social and environmental development with
economic growth
2. Aggressive Advertising
3. Leaders in Asia Pacific and Africa

Strengths

4. Globally it has over 80,000 employees

5. Services include Credit cards, Consumer banking,
corporate banking, finance and insurance, investment
banking, mortgage loans, private banking, wealth
management
6. Sponsors of major sports events and teams

Weaknesses

1. Lesser emphasis on Small enterprises

2. Less penetration in emerging economies like India,
China etc

Opportunities

1. Growing Foreign market

2. Global expansion in countries across the world
3. Mergers and Acquisitions of smaller institutions

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Threats

1. Stringent economic policies world over

2. Highly competitive environment
3. Govt. policies and global financial crises

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Recommendations
Based on the study, several recommendations have been made. These include:
1. In order to successfully conduct the performance measurement process, Standard Chartered
Bank should formulate effective internal and external communication mechanism.
2. A conceptual framework understood by all levels of the bank should be developed.
3. Accountability for results must be clearly defined and well understood.
4. Performance measurement system must provide intelligence for decision makers rather than just
compiling data.
5. Compensation rewards and recognition should be linked to performance measurements.
6. Performance evaluation should be positive and not punitive.
7. Employees should be specific as to what is expected from them so that they direct their efforts
towards achieving those expectations.
8. Feedback on the evaluation should be provided to the employees so that they can improve their
performance.
9. Lastly, performance measurement systems should not be seen as an end, but a beginning.

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Now a
day

business does not mean just selling and purchasing the products or services. This is very important to
conduct the business in an organized and effective manner. Now questions arise that how we can make
this business process effective. Advertising can be a bigger solution in this sector. More than that
maintaining a satisfactory level of customer satisfaction might make the whole selling process a lot
more progressive. As we all know in the business World things move on the will of
Impression. Standard Chartered is the Worlds one of the best leading Banks. And it the duty of this
Bangladesh corporate office to hold that same image and continue with the Business.

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