History Of The Lloyds Bank Company Commerce Essay
The origins of Lloyds Bank stretch back to 1765, when John Taylor and Sampson Lloyd set up a private banking business in Birmingham, England, A strong connection with South America began in 1918 with the acquisition of the London and River Plate Bank. The later merger with the London and Brazilian Bank resulted in the Bank of London and South America (BOLSA). Most recently, on 20 December 2005, Lloyds TSB announced that it had reached an agreement to sell, for cash, the credit card business of Goldfish to Morgan Stanley Bank International Limited for a premium of G.B.P.175 million (http://www.investorrelations.lloydstsb.com/gr/history.asp)
Lloyds TSB Group
Lloyds TSB is a leading UK based financial services group providing a wide range of banking and financial services, primarily in the UK, to personal and corporate customers. Our main business activities are retail, commercial and corporate banking, general insurance, and life, pensions and investment provision. The Group has a large and diversified customer base and services are offered through a number of well recognised brands (Lloyds TSB, Cheltenham & Gloucester, Scottish Widows), and via a unique distribution capability comprising one of the largest branch networks in the UK and intermediary channels.
Lloyds TSB Group is quoted on the London Stock Exchange and is one of the largest companies within the FTSE 100, with a market capitalisation of £26.7 billion on 31 December 2007. At the end of 2007 total group assets were £353 billion and the Group has nearly 70,000 employees. Total income for the 12 months to 31 December 2007 was £18 billion with profit before tax totalling £4 billion. Our activities are organised into three businesses: UK Retail Banking, Insurance and Investments and Wholesale and International Banking. (http://www.investorrelations.lloydstsb.com/gr/overview.asp)
The company has been practising three key HR functions, work life balance, team working and compressed working. The above functions are being done by adopting Job sharing, one the job role done by two members of staff and Term time working, working hours will be arranged to suit employees preference, working more hours per day to reduce the days worked, Variable hours, arranging different start and finish times to suit individual needs.
Vision & Mission of the Lloyds TSB
“Our vision is to be the best financial services company, first in the UK, then in other markets. To be a great place to work, to be a great place for our customers to do business and to generate great returns for our shareholders.” (http://www.consumeractiongroup.co.uk/forum/lloyds-bank/83259-lloyds-tsb-mission-statement.html), the bank set different vision & missions for UAE operations,
“Lloyds TSB Middle East's mission/vision is to be the most recommended bank in the UAE.” (http://www.lloydstsb.ae/lloyds-faqs.html#faq01)
The mission & vision statement said that the bank want to give greater returns for their stake holders, the practice behind the theory of Harvard model. The Harvard model (Beer, Spector, Lawrence, Quin Mills and Walton, 1984) works as a strategic map to guide all managers in their relations with employees and concentrates on the human or soft aspect of HRM. It strives at employee commitment (Wood, 1995) not control. It also works on the premise that employees needed to be congruent, competent and cost effective. Human resource flows into the organisation are used for recruitment, selection; through the organisation, placement, promotion, out of the organisation as termination pay.
The reward system was organised to attract and motivate so as to keep employees. More so, employee influence was tailored on controlled authority and decision making. Jobs were also defined and not based on tasks as with classical approaches. The advantages of such a system lay on the premise that high employee commitment led to better job performance (Beardwell, Holden and Claydon, 2004). Also as selection criteria were based on competence, it also embraced the element of suitability and flexibility. Using the best employees fit for certain jobs led to effectiveness. Also, a reward system aimed to attract and motivate held performance appraisal not evaluation as its tool.
Pettigrew and Hendry (1990) also applaud the analytic aspect of the Harvard model as an advantage. How ever this system could be criticised by resource based perspective of labour and the argument that soft HRM like the Harvard model may conflict with business focus of the organisation (Armstrong 1987, Legge, 1995) and also distort cost minimisation and profit maximisation.
Source: Beer et al, 1984, it works on commitment, congruence, competence and cost effectiveness on Harvard model.
Importance of work- life balance
Long term commitment and motivation of well qualified and experienced staff are conceder value for the company, which would be a core competence of the company, the culture is not easy to develop, it is far more expensive to recruit and train new staff than to retain existing ones. I believe that the Employees need motivation and commitment. Research shows that people are more productive and experience less stress when they have control over the hours they work. Therefore, flexible working helps Lloyds TSB.
“ Findings show that three out of four people say they are working very hard; many say they are working as hard as they can and could not imagine being able to work any harder. These factors help explain the increased interest being shown in the issue of work-life balance as many people find that work demands get in the way of their non-work commitments” further information at
(http://www.cipd.co.uk/subjects/health/worklifebalance/worklifeba.htm),work-life balance has focused on the ‘family-friendly aspect’ of childcare, and the problems faced by people with babies, toddlers and school age children, the practice further explains on maternity, paternity and adoption right, placing most of the emphasis on people with different background and culture, so the company need appropriate training & development
Work-life balance is not just for women. Many men stand to benefit in their roles as fathers, partners or dependant, the practice will be advantage for special needs employee, employee who look after their dependence, family members with disable, elderly and employees can enjoy with travel, study and leisure activities with in community, the function would bring stronger and more stable families provide good adult role models, fewer broken relationships and a reduction in crime and other anti-social behaviour, the bank understood the consequences of the practice everybody stands to benefit from policies to improve employees in work-life balance. “In 2003, the Flexible Working Regulations came into force in the UK. These regulations give employees looking after young or disabled children the right to request
Flexible working arrangements from their employer”
(Clutterbuck D, 2003) argue that the HR practice has got great link with profit; Following model explains the link on Profit.
Work- Life Cultural Profile Chain
Work- Life balance
Employee Well- Being
Productivity & Creativity
Sales & Customer Relations
Effective Business Process
Reduced Labour Cost
Source: ( Clutterbuck D, 2003)
Following benefits to business can be achieve by an organization if they follow the HR function
higher productivity and competitiveness
increased flexibility and customer service, for example to cover for absence and holidays
raised morale, motivation, commitment and engagement
improved recruitment and retention of a diverse workforce
wanting to become an ‘employer of choice’
Meeting legal requirements.
Training & Development for team working
I believed that the bank would like to develop Team working and Job sharing is where two members of staff share one job role. The business gains because they have two people combining their experience, skills and creativity into one role. Recent “research showed that 70% of managerial job-share teams were 30% more productive than full time colleagues” www.thetimes100.co.uk
Clutterbuck D, 2003 argue the model, which explains many category, so the company need to conduct Training and personal development is an important method for the bank’s business to improve the performance of employees. Identifying the skills and abilities needed for each block is important that a business provides training that is consistent with the business strategy. For an example the company’s one of the blocks, “Effective Business Process” is interrelated to Productivity & Creativity so the company need to look into the main steps in developing a training strategy, how investment in training and development will help meet business goals and objectives finally implement the plan, monitoring progress and training effectiveness, Annette and Angie are Customer Service Managers at Lloyds TSB’s Wisbech branch.
As Annette says, ‘We have job shared for nine years now. We cover a full working week between us with handover meetings every Tuesday morning. We talk about any issues that have arisen. We are very different characters and react in completely different ways to problems. However we find our skills complement each other well. The bank benefits because it wouldn’t get this from just one person.’ www.thetimes100.co.uk
Benefits of training to a banking business, The main benefits to a business of a well-trained workforce would be able to give good customer service at a time, generally money transaction will take place every single hours, so HR management should be perfect for 24 hours operations, which will effect on Better productivity with lower production and less operating costs, Higher quality could be achieve. Employees are expecting to be Multi skill, which could be possible when employees are flexible and motivate
Employees will be working less supervision if they are committed to work, lower supervision and management costs if employees can get on with their jobs. This might also improve group motivation or branch performance through greater empowerment, More successful recruitment and employee retention - businesses with a good reputation for training are likely to find it easier to attract good quality staff - and then keep them, business need change for better reasons, the HR practice would be help in achieving change for businesses with strong training systems and culture find it easier to implement change programmes
Selection of training
Jill Fairbairns (1991) suggested a model that emphasises three segments that need to be conceder while making decisions about training & what sort of training needed.
Figure 1.2 Factors in the selection of training ( Fairbairns model)
Source :( Martin & Jackson, 2002, p.153)
The company’s gender balance is quite surprising, by 2010, it is estimated that 85% of the growth in the UK workforce will be women. Within Lloyds TSB, 62% of its (Thomson 2010) workforce is female and around 2,000 staff takes maternity leave each year. Of these, around 87% return to work for the company after their leave. This is an important statistic. In a tightening labour market, businesses must attract high calibre staff and then retain their services. Lloyds TSB’s reputation on flexible working is a very important, so the company’s strategy is playing a major roll on its corporate objective, growth and profit, I believed that they should have a greater idea about Fairbairns model. Because the model explains important of the job, encourage & rewards and need of training, for an example if female employee returnees from maternity leave needs time and help to build up their confidence, not only that she needs knowledge of current technological change in the organization, internal changes, company’s current decisions, etc. so I believe that the company should familiar with the model and practices. The company said that they have wider knowledge on customer needs and they playing with personalizing and extensive services, so they should have a systematic way of getting information such as market research, Training Needs Analysis, which explains five core areas need to be check further “This factsheet gives introductory guidance. It:
Continues Professional Development (CPD)
Continuing Professional Development (CPD) is the process of reflection, planning, action and evaluation through job , which is different from continues education, for an example if a HR practitioner need to look into government policy on employee relations and personal management “In 2007, the government extended this right to request flexible working arrangements to carers of other dependents, such as spouses, partners, relatives, or someone living at the same address as the employee”, skills, attitudes and behaviours throughout their professional career. It includes everything that a pharmacist learns which makes him or her better able to do his or her job.
Leadership Style of the company
The company seems to be a flatter hierarchical structure, if we analyse the leadership style, the company’s structure will be go with Democratic Leadership because, Manager getting feedback on the results of initiatives and the work environment, every process, then group activity, which indicates leadership style that promotes the sharing of responsibility, further consultations for greater conclusion, here top Manager seeks consultation on all major issues and decisions, Manager effectively delegate to subordinates, provide guideline, give them full control and responsibility for those tasks, ev Managers, supervisors, peers encourage others to become leaders and be involved in leadership development.
Recruitment process of Lloyds TSB
The Group has different business, such as finance, Insurance and banking, recruitment process is varied within Corporate Markets. For most roles we use a combination of the following methods during the recruitment process:
Prospective candidate’s CV will be checked before interview
Competency/capability-based Interviews with HR department at recruitment centre of the company.
Role play/presentation, this methods will vary, need to work with managers, ect..
Assessment centres are providing trining
On-line assessment tests (http://www.lloydstsbcorporatemarkets.com/careers/grad.asp)
Vacancies within Corporate Markets are posted on this site and updated frequently and some recruitment agency also recruiting staff for the bank, the recruitment will respond to your application within 48 hours to applicant, so the process seems faster.
Graduate and specialist programmes
Lloyds TSB and other banking companies are practising graduate programs and which shows that the company seems dynamic, cosmopolitan organisation, “When it comes to opening minds, we like to keep an open mind. So giving our people – wherever they come from – a comprehensive yet carefully tailored start to their career is important to us. After all, you’re going to be our future. And if anyone knows how to look after an investment, it’s us.” (http://www.lloydstsbcorporatemarkets.com/careers/grad.asp)
Graduate Programme or Business Specialist Programme, are part of HR practice employee or candidates are selecting via mostly online, because to reduce cost for initial screening, candidates are expected to work with bank staff, they need to provide their feed back to their superiors; their skills will be checked through there initial screening, before the interview the candidate will be informed and advertisements for job are published in print media. Recruitment agencies –They have tied up with major recruitment agencies such as monster, reed etc, they also advertise in print with major news papers like guardian. Internship & Graduate recruitment programs available, they have a Graduates Scheme which can enable graduates to become branch Manager. Applications are taken online only, Industrial or Vacation Placement, recently they launched fresh internship and on the job training for student placement, which will help them to gaining both work experience and earning money during their course. Currently customer service assistants, IT (Information Technology) staff are recruited through advertisements in the branch but they are introducing online recruitment into all of its branches and this will, available throughout all of its stores in due course.
4.0 Management of Employee Performance
The company’s core value is unique, flexible working hours, employees they are investing on people, so they must have greater performance system for promotion & layoff and to identify individual training & development needs. (Grote. 2002) argue that “Performance appraisal discussion are so awkward is that they are conducted in a vacuum. If the manager and the individual haven’t had a good discussion about requirements and expectations, if they haven’t talked about goals, if they haven’t had meaningful dialogue about core competences, then it will be impossible for managers to honestly and ethically asses how well the individual has done in meeting those un discussed objectives”, so I believe that cutting edge of performance management would indicate the requirement of training, that allow managers to set development plane, later that will be discussed for individual goal or Unit objectives, Rewards and development, Organisational objectives, Review of performance and Organisational mission and strategy, finally required skill will be determine, then appropriate training will be given to employee, above process is a general way of input, then performance will be analyzed based on goal.
Performance Management system of the bank
Performance management system for teams need to conduct for better practice, so the bank need to follow a systematic process for changing team behaviours in a way that leads directly to increased performance and business benefits.
Grote D, 2002 argue that following methods could be used for performance management purpose of the group
1 Identify your behavioural goals
This might include canvassing opinion from the team, customers, management, staff, peers and others on what behaviours will lead to team success, here individual performance will be measured, because the evaluator need to know the capacity, skill level of the employee, behaviour, and attitude would be set according to their level
2 Measure your current behaviours
Performance management need to carry out regularly, because behaviour is variable with time identifying who are the people primarily responsible for achieving the common goal can be difficult. Sometimes teams have clear boundaries and the membership is clear and discrete. However, there can sometimes be a small 'core team' whose primary focus is the team goal, but a much larger 'extended team', with a very broad and distributed membership, who have other teams to which they contribute. Assess your team's current behaviours using the same behavioural framework as that in step 1, to enable direct comparisons
3 undertake a gap analysis
Identify the most significant gaps between target/current behaviours “Gap analysis is a very useful tool for helping marketing managers to decide upon marketing strategies and tactics. Again, the simple tools are the most effective. There's a straightforward structure to follow. The first step is to decide upon how you are going to judge the gap over time. For example, by market share, by profit, by sales and so on, this will help you to write SMART objective then you simply ask two questions - where are we now? And where do we want to be? The difference between the two is the GAP - this is how you are going to get there. Take a look at the diagram below. The lower line is where you'll be if you do nothing. The upper line is where you want to be.” (http://marketingteacher.com/Lessons/lesson_gap_analysis.htm)
4 Close the gap
Design a programme of training or a series of team actions that will change the team's behaviour
This includes monitoring of the programme of improvement, re-measuring 'current behaviours' to make sure they are making progress towards the behavioural goals, and taking corrective action when insufficient progress is being made.
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