The Strategic Management Of Human Resources


Strategic management of human resource deals with development programme which focuses on organisational issues that require a strategic input from HR professionals. Also dealing with management of employees at work. Its scope includes strategy development, influence and stakeholder management, talent management, employee engagement and change management, reward management, performance management. I will answer question 4 and 5 for section B, which they deal with performance management and reward management.

Performance management is where the goals of the organisations are implemented; the manager got to see how employee works as well as to make sure there is continuous development. Reward management will be dealing in so many ways like the rewarding of employees and customers. This will help to maintain the staff an organisation has and also attract more people to join the company. Things like gift vouchers, coupons, a good example is with Tesco and Sainsbury the way they are giving school vouchers to schools so that they can buy sports gears. Bonuses to staff, promotions, getting pension and so many more they are all rewards to staff and customers.

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Section A of the assignment deals with the case study of talent for numbers in Standard Chartered. All the answers in this section will have to be related to Strategic management of human resource.

1.1 Talent management is where by the manager has to try to find and develop staff so as to retain them in there organization so as to deliver superior performance. Not all people working in the organization will be talented very few and later some may be trained like in Standard charted Chinese employee are being taught English language so that they can improve there service to English speaking clients. The features of strategic management of human resources are;

Innovation, it's a new way of approaching things and ideas in an organisation. The way Standard charted focus on fast developing markets, consider it may be new to some counties where it has never operated before. All the new ideas come from HR like the learning of new language of Chinese workers its something new they tend to offer the alternative language for those people who do not understand the Chinese language. Also its improvement of the English learning can lead to promotion to the new position of employers.

Standard Chartered Bank maintains a culture of innovation founded on which the Bank has initiated many programs both within the organization and in the community. In all the 50 countries it operates they have tried to respect and maintain the culture and norms of the country.

Appraisal is the classification of someone. In standard chartered has classified employees into five categories, ranging from high to the potential to underperformers.

It's good for managers to supervise the employees themselves so that they can give back the feedback on there performance. HR can do this but it's good for line manager to get involve. A worldwide standard for performance appraisal will be the face-to -face interview between the employee and manager. Other forms of appraisal tool which a manager can use are 180-degree feedback which is preferred by China and 360-degree feedback which is preferred by Africa. At Standard Chartered about 200 HR managers worldwide are specially trained to help individuals interpret their test results and give feedback. Standard Chartered bank's approach has been to introduce certain global standards and tools, but to give the some freedom to decide locally how best to use them. So, for example, a six-monthly performance appraisal, preferably with face-to-face interview between employee and managers.

Employee Standard chartered is operating in more than 50 countries and has over 60,000 employees working for them. They have categories there employees into five main groups.

Hipos are people with significant headroom

Critical recourses: people who have the potential to improve

Core contributors

Underachiever, who could do better and should be helped.

Underperformers, they are in the wrong job and should be managed out.

As a big organisation they should be retaining there employees and not loosing them. Haley HR realised that the company has been losing there new recruit within 12 months. The bank innovated a program called Right Start which covers every new arrival. HR tries to provide with proper training to new staff and old ones so that they can develop more talent from the employees which can lead to good performance.

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Recruitment and selection, most company tend to recruit people who are experience and have talent in what they will be doing. Human resource will provide with guidance test and to make sure the right person has been select. Most jobs within Standard chartered tend to be announced within the company the later they are advertised public so that other potential candidates can get the chance. The way Standard charted select there employees it's according to there talent, skills and knowledge. There is equality issue on gender, sex, marital status, age and nationality as Standard Chartered operates globally. It also gives chance to graduates. About 150 graduates are employed by Standard Chartered bank each year on manager trainee programme across all countries. The bank also try to employee people from different countries and put them in the suitable position in different countries like the HR manager Haley has hold the post for 15 years and used to travel all over where Standard Chartered operates. It important not for the people working in the organisation to know how they have been classified. This may affect their work performance so it is better to give all workers same attention when they are recruited and after they get used to work.

Job description is a list of the general tasks, or functions, and responsibilities of a position. There are some essential elements needed for job description;

Title of the job


Salary range for the position

Job duties

For whom the employee is responsible

Description of the job

Standard Chartered HR team is trying to retain and develop talent this is by utilizing latest technology. Like they have launch an induction programme called Right Start which cover every new arrival.

1.2 With the recession still on many banks faces crisis in terms of financially either they have cut down there costs or collapse like the Lehman Brothers in 2008.Standard Chartered bank uses the talent management approach very well because it very important in the organisation.

Training of employee, when new people are recruited they have to be train so that they can meet the standard of there working place. Also they have to track down workers to see if they are getting proper training this will lead to good performance at work and good service to customer. As for creating "great managers". The Standard Chartered Bank has tried a number of initiatives. It has identified 250 senior people whose leadership skills need to be boosted, by using structure interview here people will be sharing ideas and strength. Most of the people trained are those with global and regional roles. The feedback top managers will have to get the feedback of there performance. Chief executive Peter Sands says "one the most personally rewarding things he has done in his career is to help talented people realise their full potential and give confidence to make the most of their strength".

About 200 HR manager in Standard Chartered are specially trained to help individuals interpret there test result and give feedback. It is very important to train your staff at any point in the organisation as it helps to boost the performance of the organisation.

Loyalty to organisation, this involve the feeling of being attached to the organisation people are willing to learn and contribute even volunteer for the company. With this banking crisis employees have been very committed to there job I do not know if it is because they fear the chop or they are very committed to what they do. Haley HR of Standard Chartered has been working for the bank for more than 15 years and she has been all around the branches available. What make people loyal to the organisation it is all about the management of the company by encourage them to boost there talent and even help them discover what they did not know they know and have. Also by rewarding them according to how they perform. Most employee they get there bonuses at the end of financial year.

Leads to competitive advantage even in the recession, now this is the period where companies and organization tend to compete against each other. Competitive advantage enables the organisation to create superior value for it is customer and worker. Standard Chartered is proving what other organization only provide at the beginning of the work. They also boost there managers leadership skills, a strengths-based philosophy underpins Standard Chartered bank's approach to both talent management and leadership development. In addition top managers and 6000 employees have taken an online StrengthsFinder test, which identifies their top five attributes. HR manager have a job to look for talent in there people doing this they provide more freedom in there working place like. The bank's approach has been to introduce certain global standards and tools, but to give managers some freedom to decide locally how best to use them. Standard charter bank gained competitive advantage because of the use of tool like the appraisal whereby it played a key part of talent management in an organisation. The bank was able to range from high potentials to underperformers, this system allowed the bank to manage its talent by revealing the skills and potential inside its workforce

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Successful planning, as an organisation plan has to be there so that they can predict the future. But without a plan things will not be going according to the plan. Standard Chartered have underpin the bank's talent programme: that a great business needs great managers, great managers build great staff and the people perform best when they play to their strengths. This approach to talent management reflects a wider s trategic emphasis on people that has seen HR issues ascend the corporate agenda, with the bank's declared goal of measurably increasing its leadership capacity by 2011.This is a plan the bank is working on and it seems it will work because the way the bank is providing with training where possible from top managers to the employees. Also they are planning to train China to learn English language because the market in China is growing very fast and people may go to invest in there so it will be good for investors to walk in an organisation where English language.

Reputation comes from good performance, market leadership. Standard Chartered has a good reputation in Middle East, Africa and Asia for its good banking facility and good job opportunity. Any Company has to defend its reputation if to succeed and achieving its goal. Good reputation will be good for any company in a sense that the company will be recognized for producing nothing but quality products and services that meet customer's satisfaction. For a company like Standard Chartered Bank had to defend and guard its reputation by revamping its talent management which was analyzed office by office, team by team, across continents or product area or by type of employee, to show where help is needed or if resources are being used well. All this effort shows what the company's made of that is well organized compile with hardworking and talented people and the outcome is nothing but quality. Reputation is good in a sense that will attract more customers and even attain new ones in a way that they believe your product or service is nothing but quality and satisfy their needs.

1.3 Human Resource department has a big responsibility to the organisation and the people working within that organisation. It has to make sure that everything runs smoothly employees are given the right training like Standard Chartered tries to get the great managers, the bank has tried a number initiative. It has identified 250 senior people whose leadership skills it is seeking to boost.

Employees display an impression of overall job satisfaction, rather more so than their Unions. They are more secure in their job, worry little about their job outside working hours, are more likely to have sufficient time to complete their job, and are more satisfied about the amount of influence they have over their job. Human resource need to make sure that employees are aware that they are safe in there job for the case of Standard Chartered they were not very much aware why their new employees have been leaving the company.

Another important impact on Strategic Human Resource Management is competitive advantage it attribute to their people technique which focus on people should prove directly linked to measures of organisation success. Standard Chartered has been able to operate in 50 countries. It not like other banks can not operate all over the world the can but Standard Chartered has tried to stay one step forward against their competitors. All this because the company wants to be competitive and not only to compete with their top competitors companies but also be a company recognized with both quality products and services.

Things which may include in a evaluation strategy to measure the impact of Strategic Human Resource Management (SHRM)

Recruitment and selection, the aim of Standard Chartered is to provide good service so people working in this bank will need to be very good at their job. Choosing the right candidate for the job is critical decision for a number of reasons. Haley was the right candidate for the HR position that why she has been with Standard Chartered for almost 15 years.

Training and development Standard Chartered provides as much training from their top managers to employee working in the bank so that they can provide the best service to the customers also this put them in a good position in the market. About 200 HR manager in Standard Chartered are specially trained to help individuals interpret there test result and give feedback. Standard Chartered in china is training its people English language so that they can be able to communicate with customers and also other colleague from different countries. Top managers are given training whenever is necessary.

Employee relation, there is less resignation in Standard Chartered apart from the period where new recruits were not staying more than 12 months in the company but apart from that the bank knows how to treat the staff and stay in one working position for so long. Level of supervision in Standard Chartered is very high because the line managers tend to work close with their employees and then later the give feedback to the top managers. This also means if there is any grievance in the bank workers can talk to their managers as they are close to them.

Performance management can be defined as a systematic process for improving organizational performance by developing the performance of individuals and teams.

Bevan & Thompson (1992) defined performance management as follows

Performance management system establishes the basis for identifying training, development and reward decisions as outcomes from the review process.

Performance management can mean in some cases measurement of effectiveness and efficiency, in an organisation. Also it means management of important stakeholders or the organizational relations with them. In other cases, management of organizational culture and motivation may be the key to improve performance.

Performance management is there in organisation so that objectives are met, the standard and competence requirement are all achieved, continuous improvement of the organisation and the staff working within. The staff have the responsibility to improve there skills as individually and as a team.

The following are the performance management system features;

Objective setting. Every organisation have set there vision, mission, and mission statement, as well as objectives, the objective should be clear and specific. Every activity done by the people in an organisation has to lead to the achievement of the organisational goal. Objectives or goals (the terms are interchangeable) define what organizations, functions, departments and individuals are expected to achieve over a period of time. Good objectives are achievable, precise, challenging and measurable. Mark and Spenser objective is to have the best quality of there product and service and this is what you get when walking into there shops.

Concern with planning. Performance management is concern with planning ahead to achieve success. Planning focuses on what has to be done, how it should be done and what is to be achieved. Most of the time planning is carried out by managers and individual so that they can agree on both parties. All plan made need to be recorded so that they can improve the skills, performance, and knowledge. All activities in any organisation need to be planned so that people can achieve them, without a plan thing will never be successful.

Continuous improvement and development is another feature of performance management. These will be achieved if worker are well motivated by either giving them reward or more training when needed. Continuous improvement is relay on the belief that continually struggling to reach high and higher standards in every part of the organization. Learning new skills and training it is a way of improving and develop a person so that they can be confidence in there field of work

Concern for communication. Performance management is concerned with communication. This is done by creating a climate in which a continuing dialogue between managers and the members of their teams takes place to define expectations and share information on the organization's mission, values and objectives. This establishes mutual understanding of what is to be achieved and a framework for managing and developing people to ensure that it will be achieved (Armstrong and Murlis, 5). Performance should be about team work.

Formal appraisal with feedback. Purposes of a formal appraisal. Is to improve the functioning of the organization. Organisations can get the feedback from stakeholders who are external customers, suppliers the feedback coming from them is known 540- degree feedback. Most organisations they use a feedback called 360-feedback the information comes all around the employee this is from internal customer, managers and peers. Another name is multi-rater feedback. 360-degree feedback helps in assessing development needs and as a basis for performance coaching. The illustration of 360-degree is very clear showing who report to whom. ( Figure 1.1)

In order for organisations to ensure that such systems fulfil strategically useful outcome. The following should be considered;

Contribution, people working together in an organisation should have habit to dialogue among them they should all contribute not only the managers but also the colleague working in such department like checkout. When talking about the contribution of managers and supervisors the message should be that they are there to help and to coach, not to judge each other. For colleagues, the message will be how they can play in developing themselves.

Encourages learning and development of skill. Not everyone who works in Sainsbury has got the skills to use the bailer, only few staffs are trained to do so. Also English is not there first language Sainsbury have decided to start a tutorial site where individual can improve there mathematics and English. This is all there so that Sainsbury can perform well in the industry.

Managers should provide good feedback throughout the year as well as review meetings. Getting feedback form the line manager will be a very good way to see the performance of the organisation. Appraisal is the key part of performance management usually appraisal take place annually between the manager and employee. But some manager can decide to meet with their employee every after six month this is called a performance appraisal. In Sainsbury where I work every week there is feedback in our performance that can be in sale, wastes, and mysterious customer (MCM).

Greater involvement of staff, organisations should involve staff and involve them if possible encourage them more so that you get feedback from them, staff in Sainsbury's are being asses by being observed weekly

5. Reward management can be related with performance management, when workers perform well by reaching there organisation target they get rewarded by either getting bonuses or promotion to a new position in the organization. Like recently John Lewis retail section of the company has done very well that it will be rewarded 15% of the bonus. The gross sales were up by £454 millions to £7.4 billion. Rewards should be awarded equally and fairly to the people working in the organisation.

The aim of reward management is to encourage workers to reach the organization objectives, motivate them develop there skills at work which later in future may help them. HR managers will have a job to train and develop unskilled workers to skill ones and also they will have to discover talent from the employees. Reward management also facilitate the attraction and retention of the skilled people the organisation need.

According to Armstrong. "Reward management is concerned with the formulation and implementation of strategies and policies that aim to reward people fairly, equally and consistently in accordance with their value to the organisations it addresses issues affecting the design, implementation and maintenance of reward process and practises that are geared to the improvement of their organisational, team and individual performance" . (pg 9)

Reward management does not only mean to deal only with the people working in the organisation but also its other stakeholders like the customers in Sainsbury they have a reward card called nectar as for Tesco they have club card.

Non finance reward

Money may be an influence to go to work. Theorists have long understood that staffs need a combination of motivators. This is why many organisations offer so many non-financial rewards which can improve personal lifestyle.

One of the most important motivators for bank employees is the recognition of good

performance by graded progression. People are encouraged to 'make it happen'

through personal development. This means banks encourages employees to grow and

develop their skills and abilities. Employees identify development needs with their line manager at their annual performance review.

Internal versus external comparison, company must be able to maintain and retain there workers and employee more through the reward strategy. A worker can be paid according to the contribution he/she has done to the company


The theory of Abraham H. Maslow (1943) on staff motivation. Maslow referred to a 'Hierarchy of Needs' which is usually drawn as a pyramid (figure 1.2.) According to Maslow, the most basic needs on this hierarchy had to be satisfied before workers could look to the next level. Basic physical needs were things like shelter, food, warmth and bodily functions. Next, people had to feel safe in their environment.

Some of Hertzberg's 'motivators':

• employees get recognition for good work

• they have a collective sense of achievement when the whole business does well

• they gain extra responsibility and advancement through regular performance reviews

Help to attract and retain the high quality people the organisation need. Many companies they try to retain there staff by either promoting them to new position or they are offered more training as much as possible. This is to increase the performance of the organisation, if an organisation has good performance in terms of it sells and profit that will make a company have a good reputation. If an organisation has fair way of rewarding employee, they tend to stay for a long time because the working condition is good. Marks and Spencer was able to attract Mr Marc Bolland from Morrison to the CEO of Marks and Spencer. Because one of the things an organisation has to do is to maintain there good and talented worker M&S made sure to retain Sir Stuart from being the CEO to the chair of M&S.

How an organisation can develop reward systems strategically:

Fairness, fair treatment of employees in a relationship based on fairness and through a recognition that everybody involved in the business has an interest in its success. Fairness means that reward management processes operate in accordance with the principles of distributive and procedural justice. Employees should be treated equally by payments and even there place of work. They should also make sure that women and men are doing job of equal value and paid the same, where there is doubts employment tribunals will intervene to evaluate work under the equality test. If a place of work has no fairness employee tend to move to a better organisation and also the employer may be sued which may lead to loss of market position, the reputation of the company may be at stake and loss of so much money.

Equity fairness in law, employee will not be paid the same amount of salary with the employer. Also the top manager who has more experience in his job will be rewarded more than the less experience colleague. Equitable reward processes ensure that relativities between jobs are measured as objectively as possible and that equal pay is provided for work of equal value. This year Sainsbury failed to reach the company target but they will be all get a 1% bonus of the MAC. This is for all people working in Sainsbury.

Consistency, a consistent approach to the provision of rewards means that decisions on pay do not vary arbitrarily and without due cause between different people or at different times. They do not deviate from what would be generally regarded as fair and equitable. (Michael Armstrong in Strategic Reward: Making It Happen). Salary, bonus and commission payment may differ among industries

Transparency it means that people understand how reward processes operate and how they are affected by them. The reasons for pay decisions are explained to them at the time they are made. In Sainsbury they provide news letter to inform everyone about what is going on the in the company either it is pay rise, bonus or promotion of colleague to new position. Employees have a voice in the development of reward policies and practices and have the right to be given explanations of decisions and to comment on how they are made. Thought it is not very common in small organisations.


Employees should enjoy a work environment where effort is seen to be valued, where achievement is recognised, where individual progress is rewarded and where a long term career is available for those who are able to grow with the business. Standard Chartered bank as world wide bank develop their employee talents by providing more training and skills.