Human Capital Management in Standard Chattered Bank

Published: Last Edited:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

For Standard Chattered Bank, the competition for high practicing talent and the relateded threat by not doing them efficiently are already high. Risk could be boost within a sector that has become more global, in which financial services sector are becoming ever more complex. Thus, the mandates from stakeholders are growing ever more.

Many financial service industry are falling short to foresee or dynamically organise their talent-related risks; only giving vigilance on matters when the problem arouse. The status can gravely result the presentation in short and wreck the designs for development and decrease competitiveness in the long term.

Standard Chattered Bank endeavoured to generate a remove divergence between the human resources and measurement of human capital. The SCB's approach to performing talent management contains some steps:

understanding sum of the talents, qualified employees.

developing talent to achive strategic organisation's goal

measuring and reporting on essential population metrics, surrounding both lead and lag estimates of performance, and modifications through time.

As the result, Human Capacity Scorecard has succesfully introduced in 2005 which resultant afterward growth to become extensive database that contains detailed task compel learning regarding the competence of talent processes relate to their overall performance.

However, there are the pros and cons of singling out talent in contrast to the traditional leadership development. Thus, Standard Chartered Bank's approach a 'strengths-based' philosophy. In practice, this mechanism we aid staff to interpret their personal strength and weaknesses using many tools, and thereafter concentrate on improving these talents at ability so they can be the best they can be

After All, with recomendation to close the cracks between approach and execution, Standard Chartered Bank has succesfully supervise their 'homework' of implementing approach and then convey it in system that have implication for all the enterprise entities and separate people in the bank. Since talent execute the strategy for the bank, all talent in the Standard Chartered Bank should appreciate how their job augments to attaining the prescribed objectives.

I. Introduction

Standard Chartered Bank (SCB) employs almost 50,000 talent in 1,200 branches and offices across 56 countries and territories in Asia, Africa and the Middle East. Headquartered in London, the bank provides consumer and wholesale banking. The bank is listed on both the London and Hong Kong stock market and is position in the top FTSE 25 organisations by market capital.

Market expectations of Standard Chattered Bank are tall and we're operating within an increasingly competitive and unpredictable environment. During this moment, Standard Chattered Bank aimed heavily onto constructing a operation culture across by constructing talent engagement.

This case study report is focusing on human capital management: talent management within the financial services industry, to name precisely is doing a some research on Standard Chattered Bank with analysis of the current performance management which based on journal articles, published books annual reports, lecture note, professional review, wide-ranging and recent research.

II. Standard Chattered Bank: Approach to human capital management

Standard Chattered Bank's Case Study is use the count of people based data to achieved its extraordinary targets and enhance their reporting capability across the company and some argument which can stand or against talent management program which later they name as ' Talent Factory'.

Standard Chattered Bank's measure of talent management has three perpective :

• measure people processes effectivity.

• measure human resources function efficiency.

• measure HR process effectiveness

The SCB's core measures were developed using the framework in Table A to identify the measures that are most significant strategically for the organisation at the current time.

Table A: Metric generation

Business strategy

What are the strategic goals of the company?

Workforce requirements

What must the workforce deliver to enable the business to meet its goals?

People strategic

people processes measure the value of the workforce?

Detailed measures

What measures show whether the business is healthy and achieving its strategy?

Adapted from: Corporate Leadership Council

Primary goal of human capital management is to enforce holistic data generation, analysis and coverage towards provide standardised and high-quality data towards the business. The SCB ambitions towards ensure that robust data underpins everybody that blueprints towards do - beyond 'gee-whiz' static data towards an integrated strategy towards human capital management and measurement compare towards old-fashioned mechanisms of leadership development. Furthermore, the SCB's focus is onto providing analytics that grant a feel of direction and rate of distort within key measures. , rather than having a reliance onto static, cross-sectional data.

This approach is recognised by those in senior management who acknowledge that it provides the capability to respond to market changes, evolve business strategies and achieve its ambitious growth aspirations by the year 2011.

A. Human capital capability

The data managed for SCB's talent across 56 markets are held onto one HR management information system, Peoplewise, which is powered via Peoplesoft technology. Using parallel, standardised and robust data provided across the international Peoplesoft system and the Human Resources Shared Service Centre within based within Chennai India, the bank is able towards provide perpertual data coverage capability. This strategy enables most of its international procedures towards be consistently tailed across the bank's markets, incorporating data onto core demographics, operation, award, coaching, skill management, diversity, and industry progress. It also serves towards ensure management accountability and consequently accuracy of data.

B. Human capacity scorecard

Standard Chattered Bank has adapted a human capacity scorecard since 2005, which tells on trends of essential population scope for and performance levers linked to the triumph of finance goals. The purpose of the scorecard is to deliver deeper awareness into population distributes to improve finance decision-making and ensure population scope for is being created in row with finance growth and objectives. The scorecard is an ongoing process arranged to assist each global and essential market within the SCB to achieve its growth aims through computing growth, informing finance decisions, detecting future leadership, emphasising predictors of performance, evaluating dangers and prioritising their focus.

The scorecard contains measures around the effectiveness of people processes and their impact on business performance, and accordingly is designed to answer key questions. These include how well the bank is develope talent pipeline, resourcing at a rate to meet growth aspirations, accelerate the development and progression of best talent, retaining top performer, differentiate reward based on performance contribution and potential and provide equality of access to develope opportunities for diverse groups

Table B is clearly stated the Human capacity scorecard result.

Table B : Human Capacity Scorecard Data 2004-2005

Adapted from: Chartered Institute of Personnel and Development 2006

The bank has consciously skirted coverage onto data that's readily available and easy towards mine and doesn't address the strategic corporation questions identified. Similarly, it has skirted coverage data within isolation that doesn't contribute towards experience the health of the corporation, e.g., headcount. It's the form and analysis of the metrics and how the information is consumed that's important.

The scorecard is published in three monthly and yearly and contain of core command and lag indexes of performance support by 'seasonal' indicator dictated by talent management calendar, e.g., the Performance Management and Compensation (Table C).

Table C: Performance Management & Compensation 2005

Adapted from: Chartered Institute of Personnel and Development 2006

C. Human capital analytics

The SCB has been continously engaging employee since 2000, utilising the Gallup Organisation's tool. Its responded rate is normally round 97% and the bank extends to build know-how improvements in employee commitment levels. However, for the bank, the commitment facts and numbers itself is less significant than how it's used. The aim is on groups utilising their commitment outcomes to conceive a dialogue about how to advance their localized workplace condition.

In ROI perspective, the SCB models the finance impact of a diagram of its talent management processes. The main case is its internal studies, which have positioned a good correlation between engaging talent and performance management such as customer satisfaction, increasing revenue, profit margin, staff loyalty and shrinkage. The case in Table D for the SCB's Hong Kong consumer banking demonstrates that highly perform business unit outperform low engagement.

Table D : Standard Chattered Consumer Banking Performance 2005

Adapted from: Chartered Institute of Personnel and Development 2006

Standard Chattered Bank has furthermore utilised its scorecard facts and numbers to assess a variety of staffing significances found on present level of attrition and projected development rates to show future grades of female talent at top managerial levels. Beginning with present grades of representation, joiner and attrition rates from 2005, they modelled projections founded on directional goals every year upto 2008. This facts and numbers permits the bank's top managerial to realise the significances of the change needed to accomplish even a little percentage boost in representation and how this might leverage the percentage of females chartered or promoted top managerial levels.

D. How to use the data

Standard Chattered Bank's strategy towards human capital management expands far beyond merely providing the data towards increasing the quantity and quality and utilise data across the bank.

Strategic People Agenda (SPA) method is a key example on how Standard Chattered Bank focus on using hard data strategy. The SPA is a schematic re-view by each manager, line manager with the head manager to re-view their respective talent strategies and how these strategies support the deliverance of enterprise strategy. The SPA is underpinned by the written knowledge and analytics in the human capacity scorecard, which has bestowed a high stage of rigour to the talent debates and approaches empowering the SCB to better optimise its talent investment. The SPA method in addition gain the evaluation of succession strategies part, best team, enterprise models and of course last but not least talent pipelines (Table E)

Table E : Strategic People Agenda

Adapted from: Chartered Institute of Personnel and Development 2006

human capacity scorecard data is being used across the bank for;

Induction Programme

The percentage of personnel withdrawing in a year periode of entering the bank (new-hire turnover) is a evaluate a success for re-development of the worlwide induction process. Induction is a main concern for the bank in 2006 and the evaluation will be monitor by the global leadership team, the Group Management Committee.

Global Resourcing

Company is in the middle of reviewing resourcing methods across all its markets to ensure scalable methods to match its development goals. Achievement of this strategic programme will be assesed over time using key point from the human capacity scorecard. (E.g; human capital development rate),

Diversity and inclusion - D&I

A baseline of key diversity evaluates configuration the diversity and insertion scorecard, which is part of the human capital scorecard. These evaluates watch, path and report on improvement in resistance to the bank's D&I aspirations. The D&I scorecard focuses on gender and nationality, considering the strands of diversity which the board has accepted are the first focus. This sanctions for diagnosis and appreciating of the key hurdles and enablers changing diversity and insertion through the bank and is re-evaluated at Group Management Committee, enterprise and nation level.

E. External reporting

The bank stringently believes in greater transparency in approaching to personnel, external stakeholders and analysts. This includes aiding them appreciate and to be inform the quality, present and future performance of the enterprise. The SCB has proceeded to develop its external communication through its Annual Review  and its Corporate Responsibility Review, which issue considerably more facts and numbers than in the past, and the bank is progressively candid about the trials it will have.

III. Human Capital Management: Talent Management

One of the most difficult question to date has been the terminology explain this subject. Many of HR practitioner still has a complication with the term 'human capital' and prefers 'people capital' but the fact that a common definition is already established.

According to CIPD, human capital is one out of three aspect to build a intellectual capital. Another two other aspect is organisational capital which is own by organisation (e.g; intellectual property, patent, trademarks) and social capital which can be include training and development, job design and talent management.

Human capital management is a fresh HR idea which is becoming more familiar among public quoted companies. Its importance relaxes on findings that the way a corporation handles its human capital importantly affects its business performance. As an approach to talent factory, HCM specialises on the factors that actually predict and affect the long-term success of the business. It treats the administration of talent as a strategic substance - instead an operational consideration to the HR department. Consistent with that, HCM intentions systematicaly to gauge , analyse and evaluate how talent practices support performance management of corporation (Thomas, 2005).

Talent management is the process through which organizations anticipate and meet their needs for human capital. Basically, it involves getting the "right people into the right places at the right time". The focus has historically applied five elements of practice a company must have include Job design, Training and development, Involvement, Career and Reward system.

Table F : Talent Management

Adopted from Conpectus January 2005

In global firms talent managemant has gradually become a regional responsibility; corporate headquarters limited its concentrate to expatriation and the growth of senior leaders. Today transnational organizations are beneath pressure to have more uniform talent practices across the world. This stress between global consistency and regional adaptation is one of the balancing acts that we should well notice; the other is the condition between build or buy, means develop leader from internal pipelines or search from enlisting market.

Human capital management has been branded a trend or a manner, but different investigators possess different interpretation about it. Some said that the concept of talent management is a misnomer because people cannot be genuinely managed. Some investigators consult that talentl management as a fresh mindset (Creelman, 2004). Some persuades that it is a key point towards effective building successor (Cheloha & Swain, 2005; Redford, 2005). Although many thinks that human capital management is a platform to ensure that everyone at every unit and department works towards the top of their skill.

After defining talent management, question is why it is so important for the international firm-some might argue that together with the closely linked to performance management, it is the major significant thinking for HRM agenda. Main purpose have to do with shifting perpective into the knowledge economy, along with demographic change and globalisation (notably war of talent from regional and multinationals in emerging markets), also on increasing people mobility.

Other frequently cited benefits include focusing training and development resources more clearly on existing gaps; reducing turnover and retention of top talent; encouraging movement across the business and reducing the failure rates of new hires (McCartney and Garrow, 2006; Ruppe, 2006; Nottingham Business School, 2007; Pepe, 2007). From an individual perspective potential advantages include increased commitment, greater cross-organisational support, and tailoring of growth opportunities (Byham et al, 2002).

IV. Human Resources Management: Leadership development

Many capabilities in life are a issue of obtaining abilities and information and then applying them in a dependable way. Leadership is rather different. Best leaders need emotional power and personal characteristics which can draw profoundly on a leader's mental and religious reserves.

The leadership role is an inevitable reflection of people's needs and challenges in modern life. Leadership is therefore a profound concept, with increasingly complex implications, driven by an increasingly complex and fast-changing world.

More than almost any other firm in the world, GE has built a reputation for the quality of its leadership development, to the point where former GE executives occupied the CEO positions of 34 Fortune 200 companies in 2005. In this section, we build on some of the lessons of GE's experience to discuss why leadership development is such a priority in multinational companies. While there are conceptual differences in leadership across cultures, there is general agreement that leadership involves setting the agenda for the future, rather than simply assuming operational responsibility for the current job. Leadership intransitivity by which we mean that the skills required at one level different from those that led to success at former levels of responsibility is a major challenge for multinational organizations.

This leads into our discussion of the principles that guide leadership development, and key supporting tools. First, people develop through challenges, which means demanding assignments including "split egg" roles; the challenge of working outside one's domain of functional and geographic expertise is particular important for leadership development. Second, the focus on leadership challenge requires what we call people risk management to mitigate the risk of failure, through interventions such as training, coaching, and mentoring. We also explore the importance of development factors such as learning agility.

The traditional top-down management of leadership development, exploring the dilemmas associated with assessing leadership performance and potential, and those related to the development of leadership skills. This traditional pattern of development is increasingly complemented by bottom-up, open job resourcing. Investments in global people management processes and in self-help e-technology can help a firm deploy people more effectively across borders, with the implication that the responsibility for career management shifts from the organization to the individual.

V. In between HCM vs HRM

Standard Chartered Bank's approach to HCM is totally different to some organizations. SCB's applied a 'strengths-based' philosophy. Shortly saying, means help employees understand to individual talents using numerous tools, and then focus on leveraging these workforce at work so they can be the best they can be.

SCB definition of talents? Put simply, these are recurring patterns of thought, feelings and behaviours that distinguish each of us. These are normally hardwired in us in our mid-teens after which we can't do that much to change them. This strengths-based approach is woven into everything we do, with three fundamental principles guiding our approach to human capital management:

Talent focus for the any task at all level with tools that identify, reward and retain high performing employees.

Assist individual employees to know and focus on their strengths and importantly manage their limitations.

Exceptional managers and leaders development which can identify and develop talent and build employee engagement.

HR practitioner often said talent management as a bundle typical HR practice, function, activity or specialist areas such as recruiting, appointment, industry, and career and series management (Mercer 2005, and Olsen 2000). Manage talent for them, require what normal HR practice but doing it by focusing on people process or across whole company rather than a unit or department. Olsen (2000, p4) bids a aspect look, ― A company's old-fashioned department-oriented staffing and recruiting procedure must be convert towards a broaden talent attraction and retention concept. Regardless of the wider of their perspective, these authors replace the old-fashioned term human resource with concept so called talent management.

Cheese in his new book ―The talent powered organization also clearly gave the difference between human resource management and talent management. He said, the ―human resource management is not talent management alone, nor is talent management only human resource management, human resource management is an enabler of many of the processes, but talent management is much more pervasive and requires engagement of the whole organization and the notion of the talent mindset. Human resource management is more focusing on the development of people. Alone with the performance management, it is more or less supported by compensation and rewards and penalties, learning is better focused on the improving performance, and setting process. But these processed are not truly integrated and are not executed consistently, and therefore the connections are not fully understood or recognized by line managers or clear to employees. There is no real understanding of the mix of competencies and skills strategically. Although some people metrics are in place, they are not drive up value by investing in people.

According to professor of human capital management Andrew Mayo, HCM is not a replacement instead they are putting people as a resources and represent significant cost in compare to basic HRM in that act as a platform of policies, processed and procedures which enable HCM to happen. (Mayo, 2009)

Talent management is viewed as a strategic asset and an integral component of business strategy. This approach begins with a pervasive talent mindset and culture driven by top leadership, top-down understanding if a human capital strategy required supporting the business strategy, and understanding of the value linkage. Key talent needs are defined at a competency level. And this underpins the close integration between all the talent discovery, development and deployment processes. Employee value propositions are tailored and targeted with a clear understanding of the needs of the different segments of the workforce.

There is increasing evidence that focusing on talent management has significant impact on the bottom line (Michaels et al, 2001; the Corporate Leadership Council, 2005).

Table G : Differences Human Resources vs Human Capital Management


Adapted from Personnel Today

From the Table G it clearly view the differences in perspective between human capital management and human resources management.

VI. Managing International Talent

A. Background

Conceptual framework that underlies human resources management for international firm can be start with a central question: How does human resource management add value in international firms?

HRM can contribute most significantly to firm performance when HR practices support the organizational capabilities that allow the company to compete successfully. SCB's major capabilities in the UK were the extremely high productivity of its workforce and the consistent high quality of its products. Equally important was the firm's high level of operational flexibility as UK employees' pay was tied to firm performance and the workers agreed to adjust their working hours to meet market demands. These organizational capabilities helped create superior value for customers, and were difficult for SCB's competitors to copy. In short, the HR practices in SCB's UK operations helped build and support the firm's capabilities.

Business strategy and the creation of distinct organizational capabilities are the core of our conceptualization of HRM and its role in the multinational corporation. Building on this core, we will review the HRM domain consisting of a number of key elements that we represent as different parts of an HR Wheel. These include guiding principles for HRM decision making, the development and implementation of HR practices in different parts of the corporation, the roles of the HR function of the firm, and HR outcomes that contribute to value creation in the enterprise.

In our discussion of HRM we distinguish between three different stages and the related roles. In the first stage the metaphor is that of a builder who puts basic HRM foundations in place. This is not only a question of developing individual HR practices such as compensation and development-consistency between HR practices and the work organization is also crucial. Consistency is SCB's strength in the UK. The finely tuned interrelationship of the firm's organizational practices contributed more to its performance than its incentive system.

Consequently, builders may become administrative custodians, and this can become a challenge in the second stage of HRM, which we describe with the change partner metaphor. Markets, technologies, and competitive conditions all change with time, as does firm strategy. At this stage, HRM's contribution to performance is to facilitate organizational realignment in order to respond to changes in the external environment and strategy. Moreover, as firms develop their international activities, there are particular challenges in finding a balance between pressure to adapt HRM practices locally while maintaining consistency across locations and units. This is a complex and less understood process, at least from the HR perspective.

As the need for change speeds up, it is necessary for HRM to anticipate the future. There is a dualistic pattern in changes facing the global organization reflecting the tension between opposing forces (for example, between local adaptation and global integration, centralization and decentralization, and between evolutionary progress, focused on exploiting resources, and revolutionary change, focused on developing new resources. The third stage of HRM is to puts the emphasis on steering through these dualities) the navigator role. This aspect of HRM is particularly important for the transnational organization, defined by the contradictions that it confronts.

B. The Challenge

A look at the history of international business shows that the dilemmas of searching the best talent where culturally adapted for overseas assignment have always existed. What has changed is the nature and speed of communication between a company's headquarters and its subsidiaries around the world. But the essential problems of being flexible and responsive to local market needs while avoiding duplication, promoting global efficiency, and coordinating and controlling diverse units and people remain.

In this context, ideas about managing talent have moved back and forward, alternating from "touchy-feely" to dispassionately scientific, and we will discover the distinct talent management ideas that have developed over time. We will lead that a complex worldwide enterprise raises new dilemmas about how to organise without full control over talent and other resources.

Historically, firms have responded to challenges of control and coordination in two different ways. Some adopted matrix structures, others focused on building coordination capabilities at the center. Standard Chattered Bank should consider the advantages and limitations of these two approaches and the need to align the organization with the business strategy.

We will then discuss traditional approaches to the challenges of internationalization. Some firms adopt a multidomestic strategy, with autonomous local operations that can respond readily to local needs, while others pursue a centralized, meganational strategy to prevent duplication and make global operations more efficient. However, for companies that need to be simultaneously global and local, neither of these strategies is sufficient.

C. Managing International Talent: Recruitment, Selection, Assesment and Retention

This section focuses specifically on the argument towards acquiring, selecting, developing and retaining pools of talent - groups of people deemed to have high potential that are seen as a valuable resource for future senior roles.

The first thing to managing international talent should consider three areas of particular interest for a firms operating across borders. The former is managing recruitment, whereas we consult how an organization can forecast the resource and require for talent requirement, how it can extend out towards recruit potential talent globally, and how it can build an convenient employer brand as well as a differentiated with employee value proposition.

The second area of talent management is selection and assessment, where we review the role of culture and business context in selection, and what this means for the management of diversity (with a focus on gender as well as national culture and ethnic background). Many international firms use competence frameworks to steer assessment and link it to capability development. SCB should add alternative ways of developing such a framework and applying it in a transnational firm then the important challenges of internal talent selection, how "potential" can be assessed among people in operations located around the globe.

The third area is retention management. Investing in the development of talent is not a viable business proposition unless the company can retain the individuals and profit from that investment. Before moving on to the next practice, where we focus on talent development, SCB should explore another balancing act in talent management-balancing short-term pressures with a long-term time horizon.


In a global business environment, with shorter product life cycles and competitors that quickly imitate successful innovations, maintaining a competitive advantage requires the ability to innovate continuously. Knowledge acquisition from outside the firm, sharing of knowledge with other organizational units and members, and the recombination of new and existing stocks of knowledge are integral parts of the process leading to corporate innovations.

Standard chattered bank effort of developing leadership through their talent management program so called talent factory has shown a very positive result in their portfolio. Many of other financial service industry such as HSBC has adopt similar methods of how they should react with current business environment and next future expectation which by all mean more focusing to people process rather than traditional method of leadership development.

On and All, there are clearly strong drivers for establishing talent pools and the literature indicates that they are a useful approach for many companies, Drive for organisations to construct their talent management is high, consequently management should carry on to  invest in developing their talent management based on customer centricity . Standard  chattered bank effort by fostere a great collaboration between HR and line, to make sure a full customer satisfaction through talent factory concept and being responsible for a future career of employees.


Recommendations for standard chattered bank clearly suggest HR Department of the bank to balance between focusing on the future role requirements to best segment the pool and adapt to changing business needs and talent requirements or how best to nominate then appoint the pool and respond to changing individual capabilities. Throughout all of this, there is also an over-riding deficiency to continue undertaking at a senior crosswise for the talent plan and ensure that success is defined and measured. There also a need to developed human practice assesment point whether they need to standarise all set of measure as in concept of meganational strategies or may vary as in multidomestic strategies.

Job design : There is a deficiency for a bank to standarise minimal job create prerequisite for a company. However to be able to cope with a regional environment;  numerous aspect with the stongs cultural feedback and given unrestrained for a country manager accomodate regional mindsets adaptability with the local environment as the goals of the business is broaden globally with a talent mindsets and succesfully adapt with the local environment.

Training and development : Induction programme is a result of bank continous effort to improve and build their long time journey and commitment to build a talent factory, i would suggest the programme will be better suit to various aspect of assigment best fit and manage by country manager instead of standarise by parent company. However, there is a need of the new joining employee to get the insight of company cultural aspect which can be manage by guiding effort by senior level manager or on job training.

Reward and compensation : In line with the theoretical work, reward and compensation is are that is really difficult to implement standarisation Nevertheless, performance based reward, profit sharing and share option can be set as a globalise policy for a company. However, the policies implementation should be left for a country manager to decide. To be honest with the issue this portion is the part where the expectation is coming from the external environment, many talent require standarisation for a reward and compensation.

Career : Stage in career is the most important vision for a new employee apart from reward and compensation they need to have a global agenda for planning their future insight. What the company need to standarise is a set of promotion criterias for a top performing talent. By putting more effort to this aspect, i believe future career program in the company with be maintain sustainably.

All this leads us to the idea that contemporary global corporations like Standard Chaterred Bank may face many contradictions. They have to be simultaneously local and global in scope, centralized and decentralized, capable of delivering short-term results while developing future assets, managing multiple alliances without full control, and responding to market pressures to do things better and cheaper and faster. In the light of this, we learn from the concept of the transnational organization, as developed by Bartlett and Ghoshal, at the heart of which is the notion of living with contradictions, or what they call the need to maintain a dynamic balance.