Вы находитесь на странице: 1из 21

Chapter 1:

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.

1.1 Objective:
The thesis 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.

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

● Collection of data by conducting interviews of officials of the Bank


● Frequent visits
● Internet Search
● Study of Bank’s annual reports

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 environment.

1.3 Scope of Study:


As we know services are a growing industry of Pakistan and many firms are striving to deliver
value added services to the customers. In this regard banks are continuously focusing towards
improving their services. Similar is the case with Standard Chartered Bank. This Bank has
evolved tremendously during the last couple of years and now has become one of the leading
banks in Pakistan.

Keeping this in view the study has been undertaken to identify the strategies and plans of the
Bank and to identify the methods adopted by the Bank to train and motivate their people and
workforce.
Chapter 2:

Literature Review
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 company’s success. Thus to be successful in
a global marketplace, 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 employee’s
ability to be innovative and creative.

The commonly practices HR activities include the following:


● HR Planning
● Recruiting
● Selection
● Training and Development
● Compensation
● Performance Management
● Employee Relations

World-class organization use performance measurement systems to determine whether they


are fulfilling their vision and meeting their customer-focused strategic goals. Leading-edge
organizations use performance measurement to gain insight into, and make judgments about ,
the effectiveness and efficiency of their programs , processes , and people. These best-in-class
organization decide on what indicators they will use the measure their progress in meeting
strategic goals and objectives, gather and analyze performance data and then use those data to
drive improvements in their organization and successfully translate strategy into action.

Thus in today’s organizations, the use of Strategic Human Resource Management information is
to help set agree-upon performance goals, allocate and prioritize resources, inform managers to
either confirm or change current policy or program directions to meet those goals , and report on
the success in meeting those goals.
Chapter 3:Introduction To SCB

3.1 History of Standard Chartered Bank

Standard Chartered is the world's 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 world’s 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 Chartered’s unbroken presence in China. 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 19th 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 Kong’s bank notes.

3.1.1 Expansion in Africa and Asia:

The Standard Bank opened for business in Port Elizabeth, South Africa , in 1863. It pursued a
policy of expansion and soon amalgamated with several other banks including the Commercial
Bank of Port Elizabeth, theColesberg Bank, the British Kaffarian Bank and the Fauresmith Bank.
The Standard Bank was prominent in the financing and development of the diamond fields of
Kimberly in 1867 and later extended its network further north to the new town of Johannesburg
when gold was discovered there in 1885. Over time , half the output of the second largest
goldfield in the world passed through the Standard Bank on its way to London. In 1892 the
Standard Bank opened for business in Zimbabwe, and expanded in Mozambique in 1894 ,
Botswana in 1897 , Malawi in 1901, Zambia in 1906, Kenya, Zanzibar and the Democratic
Republic of Congo(D.R.C.), in 1911 and Uganda in 1912. Of these new business, Botswana ,
Zanzibar and the D.R.C. proved the most difficult and the branches soon closed. A branch in
Botswana opened again in 1943 but lasted for only a year and it was not until 1920 that the
Bank re-opened for business in Botswana. In Asia the Chartered Bank expanded opening
offices including Myanmar in 1862,Pakistan and Indonesia in 1863, the Philippines in 1872 ,
Malaysia in 1875,Japan in 1880 and Thailand in 1894. Some 34 years after the Chartered Bank
appointed an agent in Sri Lanka it opened a branch in 1892 to take advantage of business from
the tea and rubber industries. During 1904 a branch opened in Vietnam. Both the Chartered and
Standard Bank opened offices in New York and Hamburg in the early 1900’s. The Chartered
Bank gaining the first branch license to the issued to a foreign bank in New York.

3.1.2 The Impact of War:

Even the First World War offered opportunities for expansion when the Standard Bank set up a
branch in Tanzania shortly after British troops occupied the formerly German administered Dar
es Salaam in September 1916. Both banks survived the inter-war years but he world trade
slump led to the closure of operations in the Canary Islands, Liberia, the Netherlands ,and
Equatorial Guinea.Disaster struck the Chartered Bank ‘s office in Yokohama, Japan , when an
earthquake in 1923 killing a number of staff destroyed it. The Second World War particularly
affected the Chartered Bank when numerous Asian countries were occupied by Japan.

3.1.3 The Post War Years:

After the Second World War many countries in Asia and Africa gained their independence. This
led to local incorporation in some countries , particularly in Africa. Other operations such as
those in Iraq, Angola ,Myanmar and Libya were nationalized, while in Indonesia the Jakarta
office was destroyed in an attempted coup d’etat.In 1948 the Chartered Bank opened in
Bangladesh and during 1957 it acquired the Eastern Bank. The Eastern Bank gave the
Chartered Bank a network of branches including Aden, Bahrain, Beirut, Cyprus, Lebanon, Qatar
and the United Arab Emirates. The Chartered Bank also entered into a joint venture to form
theIrano-British Bank , which opened for business in 1959. The bank grew rapidly and had 24
branches when it was nationalized in 1981. By the mid 1950’s the Standard Bank had around
600 offices in Southern, Central and Eastern Africa. Its network grew substantially in 1965 when
it merged with the former Bank of British West Africa , which had some 60 branches in Nigeria,
40 branches in Ghana and eleven branches in Sierra Leone in addition to operations in
Cameroon and Gambia. Despite these acquisitions and expansion into new counties such
Mexico , South Korea and Oman(1968) , both the Standard and Chartered Bank networks were
comparatively small. Both viewed the future with some trepidation as the need to protect
themselves from acquisition became ever more apparent.Standard Chartered PLC in 1969 the
decision was made by the StandardBank and the Chartered Bank to undergo a friendly merger
thus forming Standard Chartered PLC. It was one year later that descendants of the“Chartered
Bank of India , Australia , and China” were finally permitted to open a representative office in
Sydney , Australia. Standard Chartered subsequently acquired the UK based Hodge Group , in
which it already hada minority shareholding , and the Wallace Brothers Group. The Hodge
Group brought to Standard Chartered and extensive network of UK offices specializing the
installment credit and industrial leasing and after a period of rationalization its name was change
to Chartered Trust Limited. StandardChartered ‘s operations in Jersey emerged from the
integration of other Hodge Group business with those of Wallace Brothers
Bank(Jersey),Limited.

Standard Chartered decided, after the merger , to expand the Group outside its traditional
markets. In Europe a number of offices were open including Austria, Belgium, Denmark, Ireland,
Spain and Sweden as well as several major cities in the UK. Standard Bank also opened offices
in Argentina, Canada , Colombia, the Falkland Island, Panama and Nepal. In the USA a number
of offices were opened and three banks were acquired. These included the Union Bank of
California,which gave Standard Chartered a presence in Brazil and Venezuela. The opening of
a branch in Istanbul in 1986 was overshadowed by a far more dramatic event when Lloyda
Bank of the UK made a hostile take-over bid for Standard Chartered. Standard Chartered won
its right to remain independent but entered into a period of considerable change.

By the late 1980’s Standard Chartered already had considerable exposure to third world debt.
To this was added provisions against loans to corporations and entrepreneurs who could not
meet their commitments. Standard Chartered reviewed its operations and decided to focus on
its core strengths of Consumer Banking , Corporate & Institutional Banking and Treasury in its
well-established operation in Asia , Africa and the Middle East. This led to a series of
divestments notably in Europe, the United States and Africa. During this time staff numbers
were reduced; business not considered core were sold or closed; associate holdings disposed
of; unprofitable branches closed and back office functions consolidated.In addition expensive
buildings were sold with the proceeds reinvested in the business , and the senior management
team was radically changed and strengthened.

3.1.4 Standard Chartered in the 1990’s:

Even within this period of apparent retrenchment Standard Chartered expanded its network, re-
opening in Vietnam in 1990’ Cambodia and Iran
in 1992, Tanzania in 1993 and Myanmar in 1995. With the opening the branches in Macau and
Taiwan in 1983 and 1985 plus a representative office in Laos (1996), Standard Chartered now
has an office in every country in the Asia Pacific Region with the exception of North Korea.
In1998 Standard Chartered concluded the purchase of a controlling interest in Banco Exterior
de Los Andes (Extebandes), an Andean Region bank involved primarily in trade finance. With
this purchase Standard Chartered now offers full banking services in Colombia, Peru and
Venezuela. In 1999,Standard Chartered acquired the global trade finance business of Union
Bank of Switzerland. This acquisition makes Standard Chartered one of the leading clearers of
dollar payments in the USA. Standard Chartered also opened a new subsidiary, Standard
Chartered Nigeria Limited in Lagos,acquire 75 percent of the equity of Nakornthon Bank,
Thailand; and agreed terms to acquire 89 percent of the share capital of Metropolitan Bank of
the Lebanon.
3.1.5 Standard Chartered Today:

Today Standard Chartered is the world's 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 Grindlays 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 andwhere they see their future growth.

3.2 Performance Review in Pakistan:

Standard Chartered has been in Pakistan since 1863 and is one of the longest operating foreign
banks. There are 6 Standard Chartered Bank ‘s branches and 15 Grindlays branches have
been acquired which makes a total of 21 branches operating in Pakistan that offer full banking
services incorporate, institutional and consumer banking and custody services.Adopting a pro-
active approach , the bank is able to offer a flexible and comprehensive range of financial
services in particular transactional banking products. The bank has also invested in its branches
to ensure that their business is supported by high-tech operations using state-of-the-art
technology. Dedicated customer services with solution-oriented cash specialists to provide
customers with cost-effective solutions. Electronic delivery system has been put in place to give
customers maximum control of their transactions. Pakistan’s currency in the Rupee(Swift code:
PKR)

3.3 Design and Approaches of Services:

3.3.1 Services Design:

Designing services to accommodate their unique characteristics is challenging. One reason


productive improvements in services are so low is because both the design and delivery of
service products include customer interaction. The services provided at SC Bank are primarily
based upon afew approaches.

The outsourcing of payments continues to be a major area of focus for finance and treasury
professionals. Over the past three years , competition in Asia has become more intense and this
has helped drive the increase in the number of companies that use payments outsourcing as a
way to reduce cost and focus on core activities.

3.3.2 Approaches to Regionalizing the Payments Function:

“Choose always the way that seems the best , however rough it may be,custom will soon render
it easy and agreeable.” Pythagoras Intuitively, there are numerous benefits to regionalizing the
payments function of Standard Chartered Bank . This is particularly true where it has the critical
mass to justify an undertaking of considerable size and complexity.Frequently mentioned
benefits include: economies of scale, increase control managed by a small , high quality team
and standardization of processes , amongst others.

3.3.2.1.1 The Ad Hoc Approach:

The ad hoc approach is often the default method of regionalization of payments and other cash
management activities. This is often undertaken when decision-makers make a priority
determination that centralizing cash management activities offers significant benefits to the bank
and thus should be implemented. At Standard Chartered this approach is frequently
accompanied by minimal investigation and planning , which in variably leads to difficulties and
dissatisfaction. The sum total of planning is often reduced to determining which financial
institute can best meet the open ended requirements of the bank.

Banks may be guilty of reinforcing the ad hoc approach if they do not take the time to
understand their customers strategies , objectives and type of businesses , and make
recommendations that may not have been originally considered. This can be a function of
whether the service provider considers the implementation of capabilities as simple sale or the
start of a long-term implementation.

Chapter 4:Strategic HRM Practices of Standard Chartered Bank

People , rather the employees are the asset of any organization. An organization , whether it is
a manufacturing concern or service oriented, cannot function without the active participation of
people.Standard Chartered is the world’s leading emerging markets bank. It employs 30,000
people in over 500 offices in more than 50 countries in the Asia Pacific Region, South Asia, the
Middle East , Africa , United Kingdom and America.

4.1 Human Resource Planning:

HR planning is a process , which anticipates and maps out the consequences of business
strategy on an organization’s human resources. This is reflected in planning of skill and
competence needs as well as total headcounts.Every organization needs to be able to forecast
and plan for its future people requirements.

At Standard Chartered Bank , human resource planning involves forecasting the numbers of
people which will needed by the bank , and then working out the best way of obtaining then as
and when they are needed.

4.1.1 Forecasting:
Forecasting is the major function of the bank’s HR department. The forecasting activities
include:
1. Workforce numbers in sufficient detail to be useful.
2. Likely changes to the work of the bank.
3. workforce supply – this involves forecasting the variations in the current work force
estimated to occur over the following years.
4. impact on budgets and funding.

4.1.2 Who‘s responsible for it?

It’s easy to shift responsibility and say that personnel and human resource departments should
carry out HR planning , but it should be the concern of every manager. As the Bank operates in
a dynamic environment where new and advanced practices are frequently emerging resulting in
changing customer’s requirements.

4.1.3 Good Practice Indicators:

Standard Chartered Bank makes sure that effective human resource planning process are in
place when

1. Appropriately skilled people are available to be deployed in the Bank’s to meet forecast
work demands.
2. The Bank’s structure provides with opportunity for appropriate career development , and
is perceived to contribute to effective and efficient work practices.
3. Relevant workforce data is readily available to inform management decision making on
human resource issues.

4.1.4. Standard Chartered Bank ‘s Structure:

The Bank’s structure is the means by which the work is integrated to ensure that the objectives
and activities of individual work teams and departments match the overall goals.

The structure of the Bank provides scope for the flexible deployment of people and to promote
equity, job satisfaction, motivation and commitment to goals; as well as providing access to
career development.

4.1.5 Workforce Analysis (Supply and Demand)

The effective collection and analysis of workforce statistics trends in the workforce to be
considered with the specific requirements for skilled and qualified people to meet the corporate
aims to be kept in mind.Workforce statistics and analysis support Bank’s efficiency and
effectiveness by providing a firm basis for human resource planning. Any information gathering
systems in place should support manages and be responsive to their needs as well as being
easily accessible in the workplace.

4.2 Training & Development

Development is critical to our future business success. Our bank’s performance will only
continue to improve if we develop our people –you .To develop our people is to invest in our
future. We know you have the motivation to succeed, to be good at your job and progress as far
as you can.As Standard Chartered , training is a partnership between the employee andthe
Bank. The Bank provides a framework within which the employee can identify the training and
development needs. Such training provides a consistent standard of management learning
throughout Standard Chartered .It also enables the employees to take all of the programs or
study for individual modules according to their particular development needs.

4.2.1 The Initial Two Years:

What the employee can expect to experience during initial 2 years training is a blend of core
and discretionary elements , such as:

1. Induction i.e. the processes that introduces the new entrant to the bank, the employee’s
own business or function and particular department.
2. Training in specific products or technical skills.
3. work-based assignments in respective business or function i.e. doing a job in a particular
department for a period of time.
4. Cross-functional attachments – experiencing short period of time spent in another
business or support function.

4.2.2 Long Term Training:

Development and training does not stop after two years. After this initial training, the employees
are faced with internal development programs, business-related studies and professional
qualifications, and the bank also offers the opportunity to develop skills through externally
accredited courses. These are designed in conjunction with top universities and business
schools including postgraduate , MBA.
Accreditation Internal
External Schools Executive Development
MBA Diploma in Management
Certificate in Management Foundation Course
Induction Course

4.2.3 Orientation:
Every staff member joining Standard Chartered Bank has to attend a 2-day comprehensive
orientation to get a feel about the Bank and its business.This orientation program provides a
good chance to meet with seniors & colleagues and to build up the team spirit.

4.2.4 Product Training:

Product training is provided e.g. cash product training, operational training etc. to help the
related staff to learn more about the products that the Bank is providing.

4.2.5 Skill Training:


The bank provides a lot of skill related training e.g. credit workshop, sales & negotiation skills ,
project management , etc. to help staff enhance their skill in particular aspects.

4.2.6 On-job Training:

Staff members are continuously involved in the learning process in the form of on-job training .
Thus , a lot of on-job training opportunities and job rotation to increase staff’s exposure are
provided.

4.2.7 Self-learning:

The bank sends out CDs and books to staff for them to study on trade knowledge , credit
knowledge, etc. and staff will decide when he/she will attend the Trade Skill Assessment(TSA)
and Credit Skill Assessment(CSA).

4.2.8 Management Development Training:

In this training program, the employees are given strategic perspectives and business goals
management skills; people management , networking and customer focus abilities to better
understand and manage their jobs.

4.2.9 Specific Competency Training:

Specific Competence Training is to ensure that the staff excels in product knowledge, regulatory
and unique techniques needed for the particular position.

4.2.10 Learning and Development:

Standard Chartered recognizes that it is essential that they have the best people equipped with
the right skills and knowledge to perform their roles to the highest standards. They went talented
professionals , who seek self-development opportunities including continuing professional
development.In return the Bank offers excellent training and development. They focus
development on where they believe that they will get the greatest return , by developing
employees strengths.
4.3 Recruitment:

The Bank’s Management Trainee Development Scheme takes place in Karachi, where they
recruit management trainees. Alternatively , candidates can apply to their local cities. It is the
aim of management to recruit young , bright, energetic and enthusiastic graduates and post
graduates.

4.3.1 Who are they recruiting?

1.Bright, young graduate or a postgraduate, who cannot wait to start his/ her career in the
financial services industry.
2.Consistent academic performer throughout his/her education.
3.Career-oriented person
4.Energetic, ambitious ,innovative and business-oriented person.

4.3.2 Recruitment Criteria:

Standard Chartered Bank recruits the most talented individuals from the external market to
supplement their internal pipeline of talent. Their Human Resources department provides
guidance on the us of psychometric tests and has robust recruitment criteria to ensure that all
candidates are treated fairly, equally and with respect. It has a global Graduate Recruitment
Program; where in the region of 150 graduates are recruited each year on a management
trainee program across all businesses , functions and countries.

4.4 Selection:

Standard Chartered selects employee based on knowledge, skills and talent.They are
committed to providing equality of opportunity to all employees,regardless of gender , race
,nationality , age , disability , ethnic origin , or marital status. They are committed not jus to
providing equality of opportunity to all employee , but also identifying what unique strengths
each individual brings to the roles they carry out and the development of these strengths.

4.5 Employee health , well-being and safety:

Standard Chartered Bank believes that the health and well-being of their employees and their
families is important. They are concerned not only about the physical health of their employees ,
but also their mental and emotional well- being. Standard Chartered has policies & practices
that provide for a safe and healthy working environment. They place importance on the safety
and well-being of their staff, communities and on the effect its working and operational
processes have on the environment. They are continually developing policies and practices
designed to maintain the highest appropriate standards.

4.6 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.

4.6.1 Compensating the Sales Force:

How the Bank presents itself to its corporate as well as individual customers is dependant upon
the ability of its sales force. These are the individuals who take and active approach is getting
the message out about the Bank’s 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 comprise one or more of the following components:
● 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

4.6.2 Executive Compensation:

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
executive’s 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

4.7 Reward & Recognition:

Standard Chartered Bank aims to reward the talented and high performing employees
competitively. They regularly conduct salary surveys to ensure that the reward package remains
competitive in the marketplace. They encourage continuous discussion; encourage regular
review of employees performance and development. This provides feedback to the staff about
how they are doing. The management links this to both financial and non-financial recognition.

In addition to this , the bank provides various incentives in the form of bonuses to encourage
the employees and motivate them to continue with their high performance. These include:
1. Spot Award + Rs. 5000 as cash prize
2. Surprise Award
3. Best Performer Award
4. Service Quality Award
5. YES( Year of Excellent Services) Award

4.8 Quality of Work Life:

This means a job that not only is reasonably safe but also for which the payis equitable. At
Standard Chartered Bank every employee in confident of his job security and has the assurance
that he would remain on the job for the agreed period. In addition to this, the workload is
equitable divided between the employees and therefore, they work with peace of mind and
tranquility , resulting in the overall enhanced performance of the employees.

4.9 Mutual Commitment:

Both the employees and the management try to meet the common objectives. They coordinate
their activities to ensure that they are heading towards achieving the established goals and
meeting the set targets within the specified time frame.

4.10 Mutual trust:

At Standard Chartered Bank prevails an environment of confidence and mutual trust. The
documented employment policies are honestly implemented to the satisfaction of both
management and employees.

4.11Job Design:

Job design comprises of six components. These are:

4.11.1 Labor Specialization:

The Bank aims at hiring specialized people and their recruiting criteria are based on their
knowledge, expertise , past working experience and their exposure to the professional fields.
Employee wages are set in accordance with the aforesaid recruitment criteria and most of them
are intent with what they earn at Standard Chartered Bank
4.11.2 Job Expansion:

The Bank improves the quality of work life by assigning various tasks to the employees so as to
equip them with the different services offered by the Bank. Job expansion includes job
enlargement , rotation , enrichment and empowerment.

4.11.3 Psychological Components:

For enhancing the skills and abilities of the work force, the psychological components of job
design are also catered for by Standard Chartered Bank .These psychological components
focus on how to design jobs that meet some minimum psychological requirements of the
employees. These components are utilized in accordance with Core Job Characteristics ,which
suggests that the jobs designated to the various employees in the bank include the following
five aspects:
1. Skill Variety
2. Job Identity
3. Job Significance
4. Autonomy
5. Feedback

4.11.4 Self-Directed Teams:

A self-directed team is a group of empowered individuals working together to reach a common


goal. At Standard Chartered Bank , these teams are found in almost every department to
achieve the set targets. These teams are an integral part of the personal loans , sales and credit
cards department where they are established to achieve both, the short-term as well as long
term objectives.

4.11.5 Motivation and Incentive Systems:

Sometimes the psychological components are not enough for motivating the employees. In this
case, monetary incentives play a vital role for increasing the commitment of the employees
toward their jobs and in return enabling them to have job satisfaction. These monetary
incentives and rewards are given in various forms to the employees who act as a strong
motivational factor. These could be given as:

1.Spot Award + Rs. 5000 as cash prize


2.Surprise Award
3.Best Performance Award
4.Service Quality Award

4.11.6 Ergonomics:
Ergonomics is the study of work. It deals with building a good interface between the man and
the machines . Keeping this in view , the Bank has been designed in such a way so that the
employees are comfortable working there.

4.12 Performance Management:

Traditionally , the formal performance appraisal system has been viewed as the primary means
for managing employee performance. Performance appraisal is an administrative duty
performed by managers and primarily the responsibility of the HR function.Performance
management is the process through which managers ensure that employee activities and
outputs are congruent with the organization’s goals. It is central to gaining competitive
advantage.

4.12.1 Components of Performance Appraisal:

At Standard Chartered Bank the components of performance appraisal are in respect of the five
W’s that include: Who , What , Why , When andWhere of performance appraisal.Who:All
employees work under the supervision of managers. Therefore ,the manager is the best person
to do performance appraisal of his subordinates.What:The appraisal at the organization includes
appraisal of current performance as well as the future potential. It also includes evaluation of
human traits such as behaviors , interaction with other staff members etc.Why:It is concerned
with creating and maintaining a satisfactory level of performance of employee in the present
job, highlighting his needs and potential for personal growth.When:It is carried out on yearly
basis. The manager uses good work as opportunity to provide positive thrust and uses poor
work as a basis for training.Where:The performance appraisal is done in a cordial and friendly
environment.

4.12.2 Approach of Measuring Performance:

The performance of the employees can be determined by making an overall comparison among
individual‘s performance. Hence a performance measurement system is developed that
incorporates a tool for measuring performance.

4.13 Appraising Employee Performance:

4.13.1 Individual Performance Management:

A longstanding question that Standard Chartered Bank and many other organization are still
grappling with is whether and how to reward good performance(or , conversely , how to deal
with persistent poor performers).One approach used by the bank is to make salary increments
or progression on the pay scale conditional on good performance.
4.13.2 Performance Management At Senior Levels:

Typically , performance management systems for senior officials include elements additional to
performance-pay, such as time-limited contractual appointments. The Bank has adopted this
approach. Key features of its system include the following:
1. Senior officials are recruited to a unified career structure known as Grade A, which
incorporates most top-level positions.
2. On the basis of evaluation , the senior position employees are paid a performance
bonus.

4.13.2 Linking Performance to Promotions:

Some have argued tying career advancement to performance is more important than linking
performance and pay. Whereas the benefits of pay for performance are uncertain , particularly
in the lower echelons, there is no doubt of the need to ensure that the best people rise to
management levels.

Chapter 5:Analysis

5.1 HR Planning:

HR Planning process consists of forecasting , goal setting and strategic planning, and program
implementation and evaluation.

HR managers should attempt to ascertain the supply of and demand for various types of human
resources. The primary goal is to predict areas within the organization where there will be future
labor shortages or surpluses.

As the Bank operates in a dynamic environment where new and advanced practices are
frequently emerging resulting in changing customer’s requirements. Not only this , the demands
on existing staff resources fluctuate in order to maintain the provision of services, it becomes
even more critical that all managers contribute to HR planning in a structure way.

5.2 Recruitment:

Human Resource Recruitment is defined ad any practice or activity carried on by the


organization with the primary purpose of identifying and attracting potential employees.

The goal of an organizational recruitment program is to ensure that the organization has a
number of reasonably qualified applicants(who would find the job acceptable) to choose from
when a vacancy occurs.
Standard Chartered Bank recruits the most talented individuals from the external market to
supplement our internal pipeline of talent. Their Human Resources department provides
guidance on the use of psychometric tests and has robust recruitment criteria to ensure that all
candidates are treated fairly, equally and with respect. It has a global Graduate Recruitment
Program; where in the region of 150 graduates are recruited each year on a management
trainee program across all businesses , functions and countries.

5.3 Selection:

Any organization that intends to compete through people must take the utmost care with how it
chooses organizational members. Personnel selection is the process by which companies
decide who will or will not be allowed into their organization. Several generic standards should
be met in any selection process, which are reliability , validity, generalizability, utility, and
legality.

Standard Chartered selects employees based on knowledge , skills and talent. They are
committed to providing equality of opportunity to all employees, regardless of gender , race ,
nationality , age , disability , ethnic origin , or marital status.

5.3 Training & Development:

Training refers to a planned effort by a company to facilitate the learning of job-related


knowledge, skills, or behavior by employees.

Standard Chartered provides a framework within which the employee can identify the training
and development needs.

Such training provides a consistent standard of management learning throughout Standard


Chartered. It also enables the employees to take all of the programs or study for individual
modules according to their particular development needs.Development Programs are carried
out in the first two years of joining ,applicable to all management trainees, across the Bank.
Each business and function would decide the appropriate development needs for each
individual , within this overall framework.

5.4 Performance Appraisal:

Each organization must create and communicate performance measures that reflect its unique
strategy.Performance management is the process through which managers ensure that
employee activities and outputs are congruent with the organization’s goals. It is central to
gaining competitive advantage.A well-executive performance management plan enables an
organization to achieve critical goals such as:
1. Recognize the efforts and contributions of current staff.
2. Reward staff with compensation directly linked to performance.
3. Motivated staff to improve performance.
4. Orient staff towards goal achievement.
5. Retain key employees through the use of competitive compensation programs.
6. Attract quality employees with an effective performance management system.The key
elements of a Performance Management System include the following:
1. A Formal Compensation Philosophy Statement
2. Salary Administration Program
3. Job Evaluation System
4. Performance Appraisal System
5. Reward Programs

5.5.1 Purpose of Performance Appraisal:

There are a number of reason for carrying out the performance appraisal of employees such as
promotion , transfer etc. Therefore , the Bank makes sure that the employees clearly
understand the objectives of the performance appraisal.

5.5.2 Performance Measurement Criteria:

Once the Bank has determined what kind of performance it expects from the employees, it
needs to develop appropriate ways to measure that performance.

5.5.2.1 Strategic Congruence:

The basic aim of Standard Chartered Bank is to provide speedy customer services. Therefore
its performance management system should assess how well its employees are serving the
customers . Strategic congruence emphasizes the need for performance management system
to provide guidance to the employees so that they can achieve the Bank’s and enable it to
remain competitive. For this purpose the system should be flexible to adapt to changes.

5.5.2.2 Validity:

According to the employees , the appraisal procedure used to measure their performance lacks
in one aspect. This aspect relates to the deficiency element of validity. This means that as one
standardized formant is used to evaluate performance, therefore it ignores many of the job
specific aspects.

5.5.2.3 Reliability:

At Standard Chartered Bank the performance management criteria resembles test-retest


reliability. According to this the employees are evaluated on annual basis and those employees
who have somewhat similar ratings from year to year have greater chances of getting
promotion, bonuses etc. Therefore , the Bank checks the consistency of performance of
employees in this manner and determines that which employees have the potential to grow and
better serve the customers.

5.5.2.4 Acceptability:

Diverging opinions prevail about the acceptability of the performance appraisal. Some
employees accept them to be fair while others believe them to be biased and predetermined. In
addition to this the views regarding fairness are perceived differently within the three category
including:
1.Procedural
2.Interpersonal
3.Outcome

5.5.2.5 Specificity:

One of the major lacking in the performance appraisal method of Standard Chartered Bank is in
the area of specificity. Amongst the various levels of employees the performance evaluation is
believed not to provide specific guidance about what is expected of them and how they can
meet these expectations.

5.5.3 Source for Performance Information:

In case of Standard Chartered Bank , managers are the only and most vitalsource of
performance information. They have extensive knowledge of the job requirements and adequate
opportunity to observe the way in which the employees fulfill these requirements , thus , they
are the best source to assess and rate their employees.

5.5.4 Rater Errors:

Like all other organizations , in Standard Chartered Bank the performance evaluation process is
affected by the rater’s error. The rater error prevailing in the bank resembles the distributional
errors. In the bank the managers often go by their own preference while rating the employees.
Therefore there are high chances of making leniency, strictness, and central tendency errors.

5.5.5 Top Management and Employee Perspective:

Although the performance management system at Standard Chartered Bank has a vital role to
play in assessing the potential of the employees. Yet it is perceived to be a routine and
cumbersome affair that has to be undertaken once a year. This perception some what nullifies
the true essence in the performance management should be conducted.

5.5.6 Shortcomings of the Appraisal System:

The performance appraisal system at the Bank lacks in certain areas such as:
1. Information regarding the employee’s performance is purely dependentupon their managers.
However , the employee are of the view that information should also be collected from them as
they are the ones who perform are responsible for performing the various tasks.
2.Thus , a major shortcoming of the system is that the employee’s are not involved in the
appraisal process.
3.The performance appraisal system is believed not to provide any guidance for the
development of employees.
4.The employees are of the opinion that the performance appraisal should be done on quarterly
basis, instead of being conducted annually.

5.5.7 Necessary Measures:

Adopting the following measures can reduce the shortcomings of the system:

Employees should be involved in the appraisal process, i.e. information should be taken from
them. The process should result in effective outcomes by telling the employees that how can
they improve their performance. This would not only benefit the Bank , but would also help the
employees in their personal development.

5.6 Compensation:

Being a leading Bank Standard Chartered Bank presents itself to its corporate as well as
individual customer as dependent upon the ability of its sales force. These are the individuals
who take an active approach in getting the message out about the Bank’s products and
services. How effectively the sales team markets the Bank, and in turn, how successful it is, is
directly related to the sales compensation program. A sound sales compensation package
enable Standard Chartered Bank to focus sales activities towards desired results, and rewards
these outcomes with compensation tied directly to the level of achievement.

5.7 Rewards & Recognition:

Standard Chartered Bank rewards the talented and high performing employees competitively.
They regularly conduct salary surveys to ensure the reward package remains competitive in the
market place. They encourage continuous discussion; encourage regular review of employees
performance and development. This provides feedback to the staff about how they are doing.
The management links this to both financial and non-financial recognition.In addition to this, the
bank provides various incentives in the form of bonuses to encourage the employees and
motivate them to continue with their high performance. These include

1.Spot Award + Rs. 5000 as cash prize


2.Surprise Award
3.Best Performance Award
4.Service Quality Award