This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.
Standard chartered bank is a British bank headquartered in London with operations in more than seventy countries. It operates a network of over 1,700 branches and outlets (including subsidiaries, associates and joint ventures) and employs 73,000 people.Despite its British base, it has few customers in the United Kingdom and 90% of its profits come from Asia, Africa, and the Middle East. It aims to provide a safe regulatory bridge between these developing economies.
Standard Chartered has a history of over 150 years in banking and operates in many of the world's fastest-growing markets with an extensive global network of over 1,700 branches (including subsidiaries, associates and joint ventures) in over 70 countries in the Asia Pacific Region, South Asia, the Middle East, Africa, the United Kingdom and the Americas. As one of the world's most international banks, Standard Chartered employs almost 73,000 people, representing over 125 nationalities, worldwide. This diversity lies at the heart of the Bank's values and supports the Bank's growth as the world increasingly becomes one market.
The ultimate success of any organization depends on its Human resource. This aim makes Human resource a challenging and critical element for managers to control. Torrington and Hall (1987) define human resource management as being "a series of activities which: first enable working people and their employing organisations to agree about the objectives and nature of their working relationship and, secondly, ensures that the agreement is fulfilled" .The Human resource of an organization is not only a critical asset today but has become an important source of competitive advantage in the industry.
Human Resource Department at Standard Chartered bank has 3 operation units: 1). Compensation and Benefits 2).Recruiting and resourcing and 3) Training and Development. Recruitment/Resourcing unit of HR department attracts candidates to submit application with the HR Department via several means. Training and Development unit performs several functions that are orientation after the employees have been selected, the department makes the employee familiar with the company history, policies, rules and regulations, the working place and the co-workers, supervisors and sub-ordinates and training refers to the acquisition of knowledge, skills, and competencies as a result of the teaching of practical skills and knowledge that relate to specific useful competencies . Compensation and Benefits department performs the function of determining the compensation packages for its employees, which include, Direct Compensation includes the basic wages and salaries of employees and other direct cash incentives like bonuses, increments, stock ownership and Motivation which is the activation or energization of goal-oriented behavior. According to various theories, motivation may be rooted in the basic need to minimize physical pain and maximize pleasure.
2.1 Source of information
There are two major approaches to gathering information about a situation, person, problem or phenomenon. Based upon these broad approaches to information gathering, data are categorized as:
â€¢ Primary data.
â€¢ Secondary data
In this report, both primary and secondary sources have been used. Primary sources are interview and observation.
Face to face interview and observation techniques have been followed to collect data. A questionnaire has been used to collect data.
Secondary sources such as -
Newspapers and Journals
Internet (on-line information)
Own notes and experiences
Academic staff and other departmental resources
The work of friends and other students
In addition there are also a large number of other sources including reports, industry report.
2.2 Information gathering techniques
Analyze Organization annual financial report
This would give a fair understanding of how the department functions and identify core areas. Annual report is an authentic source of information .
Bruce C. (1992) identifies several stages for document review. Stages are problem analysis, identify search areas, plan search articles, adopt search method to available tools, carry out search and finally review. After identifying problem, books, journals and internet are used to get related document. Search has been done by using key tool such as core problem, books name and supporting evidence.
Literature provided by company about future planning, collecting new equipment, marketing strategy and management policy.
2.3 Reason of use of such source of information
None of the methods of data collection provides 100 per cent accurate and reliable information. The quality of the data gathered is dependent upon a number of other factors, which are described below:
Books - i)There is a large amount of text to read
ii) a variety of different kinds of related information in one place
Internet sites- i) recent statistics are available
ii) images related to topic also available
Database i) online information can be reliable
ii) quality information centered around a particular focus
Journals i) recent information written by experts in a field
ii) reports on research done by professionals
Reports i) have some idea about problem
In case of selecting information, following factors are considered:
Credibility, Accuracy, Reasonableness, Support
Recruitment is the process of attracting, screening, and selecting qualified people for a job at an organization or firm. Standard Chartered Bank follow difference policy between external recruitment and internal recruitment. Resourcing refers to internal recruitment the Standard Chartered that is, they try to recruit candidates for vacant jobs from within the organization, and Recruitment refers to external recruitment , which may include fresh graduates or people working in other firms.
The Recruiting Process
The recruiting process at Standard Chartered Bank is conducted in an efficient manner. Recruiting process can be summarized as-
Identification of Job Vacancy
Job Description forwarded by departments
Determination of Grade and Designation
Application received HR Department
1) Identification of Job Vacancy - If an employee leaves the firm due to any reason, which may be resignation to move to another firm, or any other reason such as, retirement, termination or death, a vacancy is formed at the respective department of the bank. The department carefully analyses and identifies this vacancy and the job description is forwarded to the HR department.
2) Job Description forwarded by Department- The department in which the vacancy is created, sends a complete Job Analysis Information to the HR specialists so that they can analyse the job correctly and efficiently. Objectives HR department consider when they create job description as follows:
â€¢ To achieve more effective and efficient use of employees / human resources.
â€¢ To better recruit employees who possess the necessary skills and competences.
â€¢ To achieve a higher rate of satisfied and better developed employee.
â€¢ To facilitate training and development programmes
3) Determination of grade and designation - When respective departments have identified the vacancy and the job description has been sent to HR Department, the HR Department decides on the grade and designation of the vacancy. At this stage, HR department also determines Personal specification of candidates.
4) Job posting - Job advertisement has been posted in own website, other recruiting agencies websites and newspaper.
5) Application received by HR Department- After the job has been posted; the candidates who are interested send their application to HR Department via mail or postage.
Aim of recruitment process :
The management of Standard Chartered finds recruitment beneficial because,
â€¢ It brings fresh talent and knowledge into the bank
â€¢ It helps overcoming the problem of employee obsolescence.
Table 1 : Recruitement process
Difficulties in recruiting:
Competences of existing employees must be identified, defined and assessed to determine future competence requirements.
Invalid predictors of future performance
Unpredictability of the future external labour market must be considered in relation to altering and updating job description requirements.
3.2TRAINING AND DEVELOPMENT:
The unit of Training and Development performs several important functions for the bank like orientation and the general Training and Development.
The process of orientation is conducted at Standard Chartered Bank as follows-
1) Need determination for orientation programme
2) Designing of orientation programme
3) Implementation of orientation programme
4) Analysis of orientation programme
Before starting training program employees are asked to make Personal Development Profile (PDP is one of the most important employee documents at Standard Chartered Bank. Standard Chartered Bank provides two types of training-
1)In house training- The In-house training is preferred at Standard Chartered as it is cost-effective. Major Training Methods Used Standard Chartered mainly uses the following training and development methods are:
On the job training
The training or development takes place in the workplace itself. Common methods used in On the job training-
It is the most popular method to train the new employees in bank. In this method of training the supervisor of the new employee supervises the new trainee
It is the second method in which the management rotates the new employee through different jobs so that he can understand the basic skills required to perform his job in future
Computer based training
Off the job training
This means that employees will attend courses outside of the workplace usually in either a specialist learning centre.
2)Outdoors training- If the trainees need training in a specific technical skill, which the bank cannot provide economically, it sends the employee to institutes where they get the requited training. This training programme may be conducted in London, Dubai, or anywhere else where Standard Chartered Bank exists. In that type of training,the Standard Chartered employees all over the world have a chance to meet each other.
Motivation is all efforts made by management to get employees to voluntarily give their best. It must be noted that motivation comes from within the employees himself, but management must try to develop and encourage this motivation. Abraham Maslow's motivational theory stated that that motivation comes from meeting employees unsatisfied needs.
Below Maslows hierarchy of needs shows how he ranks each need, which must be achieved from the bottom to the top.
Safety and security
Once a lower order need is satisfied employees will become motivated by the prospect of gaining the next higher level.
From management point of view Maslows theory is:
Employees need to be paid an adequate amount so they can be provided with their physiological and safety needs.
Employees need social contact and friendships with their colleagues.
Employees gain esteem when prospects of promotion are offered
Self-actualisation. Giving employees the chance to become whatever they wanted e.g. boss of the company they work for.
Standard Chartered Bank follow the Maslow theory in motivating emplotees. For this why, this bank offer Employee Welfare and Benefits (EWB) which are mentioned below-
1. Employee Sharesave Scheme.
2. Labor insurance, national health insurance and group insurance.
3. Periodic health examination.
4. Subsidy for wedding, funeral, maternity leave, travel, dependent education and social club events. Special cash allowances distributed on three major festivals.
5. Offer employees (retirees) the option of transferring their pension fund to "Staff Time Savings Deposit Account" for entitlement of a preferential interest rate.
6. Preferential interest rate for staff deposits.
7. Preferential interest rate for staff loans.
8. Special offers for financial transactions: preferential transaction fees, special exchange rate and inter-bank transfer fees.
9. Special credit card offers (issued by the Bank): no annual fee, double reward points.
Standard Chartered Bank maintains Performance Management System which is analysed and feedback is given to employees so that they will be motivated to work more effectively.
By carrying out performance appraisals on employees regularly, any problems can be identified and dealt with through training programs.
The benefits of performance appraisal:
It helps to identify training needs
It may reveal other problems - there may be difficulties with other staff
Makes good communication between employees and managers
Good appraisals can be motivating
If dismissals need to be made then performance appraisal records will be available to consult.
Performance appraisals are carried out every six months. An appraisal interview gives the chance for employees to be rewarded and told that they are doing a good job. It is a good way of motivating employees because at their appraisal interview they could get a pay rise or promotion.
3.4 REWARDING :
Reward Management is defined as the distribution of monetary and non monetary rewards to employees in an effort to align the interests of the employees, the organization and its shareholders. Compensation and Benefits department of Standard Chartered Bank deals with rewarding system for employees.
Standard Chartered gives high importance to compensation packages because this is the most crucial factor for retaining key employees. Every year it gives bonus to its employees. The amount of bonus depends on the amount of profit Standard Chartered World makes.
Stock Ownerships are given as a Performance Bonuses to employees.
As the bank follows Management by Objectives (MBO), specific objectives are set at the beginning of the year. Management are concerned that the employee put in enough effort to deserve the award. Sale targets are a good example, if the employee meets the managers requirements they get a bonus (Armstrong & Murlis 2004).
4)Equating compensation and benefits: Standard Chartered tries to maintain equity in its compensation packages
Human resource management need to scan the world environment and identify emerging trends that will affect the organization and the management of people therein. To do this, management always evaluate design of Organization, analyze the work processes and recommends improvements when necessary. Human Resource management work with those decisions and actions which concern the management of employees at all levels in the business and which are related to the implementation of strategies directed towards creating and sustaining competitive advantag (While Miller, 1987).
The HR person contributes to the development of and the accomplishment of the organization-wide business plan and objectives. The human resources objectives are established to support the attainment of the overall strategic business plan and objectives.
In case of recruiting, selection, training, motivation and rewarding Standard Chartered Bank follow the techniques which ensure they are suitable for its employees. Standard Chartered maintain both internal and external source for recruitment. New employees are trained in-house training system, where more than one leaning style is adopted. Every learning style is different, if it is the one of the pragmatist, reflector, activist or theorist. ( Honey and Mumford, 1995). Base on all kinds of feedbacks, Human resource professionals help individuals plan and advance their careers, which keep employees more enjoyable at their work and reduce the employee turnover rate.
To motivate employees, performance appraisal techniques are adopted with upward feedbacks. There are some drawbacks related to upward feedback. Subordinates could have a limit vision and understanding of their managers' role which may result in an incorrect feedback. Also, the cost of intermediary who is in charge of assembling and administering the system might be another problem. There is several rewarding system which are the based on annual profit and personal performances.
In conclusion, nobody likes to receive negative comment; so managers should identify weakness of their subordinates and suggest proper training to reduce the probability of unfavorable feedback and employees turnover as well.
Based on the study, several recommendations have been made. These include:
In order to successfully conduct the performance measurement process, Standard Chartered Bank should formulate effective internal and external communication mechanism.
Compensation rewards and recognition should be linked to performance measurements. Performance evaluation should be positive and not negative.
HR should try to bridge a gap between junior and senior officers so that a junior officer should come out even with his personal problem. This behaviour and relation among senior and junior officer act as a strong motivation factor. For this purpose they should arrange monthly or half yearly meetings to discuss the personal and organizational problems.
Employees should be given work of their own choice in the bank.
The system and procedures needed to be up dated and aligned to the market needs and focus on facilitating the customers for achieving sustainable competitive advantage.
They should appreciate the hard working employees. Further more they should also provide loan facilities to every employee
They should prepare the duty list of every employee and should take positive steps to reduce dissatisfaction among employees.
Bruce, C. (1992) Developing students' library research skills. HERDSA Green Guide No. 13. HERDSA, Campbelltown, NSW, Australia
Herzberg et al (1993) Motivation to Work. 2nd edn, New York: Wiley
Honey, P. & Mumford, A., 1992, The Manual of Learning Styles, P. Honey, Maidenhead, Berkshire, UK
Miller, W. (1987), Strategic Industrial Relations and Human Resource Management, Journal of Management Studies, July, pp347-361
Roger, A. (1983): 'Using Interviews in Personnel Selection' .Recruitment Handbook, 3rd edn. Aldershot: Gower, 161-77
Torrington, D., Hall, L. (1987), Personnel Management: A New Approach, Prentice-Hall, London
Appendix 1: Standard Chartered at a glance
The standard chartered Group was formed in 1969 through a merger of two banks: The standard bank of British South Africa founded in 1863 and the chartered bank of India, Australia and China, founded in 1853. It operates a network of over 1,700 branches and outlets (including subsidiaries, associates and joint ventures) and employs 73,000 people.
Standard chartered is listed on the London Stock Exchange and the Hong Kong Stock Exchange and is a constituent of the FTSE 100 Index. Its largest shareholder is Temasek Holdings.
Organisational philosophy, aim to:
Attract, develop and retain talent
Create a strengths-based organisation
Maintain a diverse and inclusive workplace
Drive performance through increased engagement
Appendix 2: Questionnaire
Questionnaire for face to face interview
Standard Chartered Bank
A. Question about recruitment procedure
1. What is your mission statement or philosophy?
2. What are the objectives and goals of the company?
4. What are the key activities of HRM department?
5. What is the Recruiting method(s) used?
Other (Please specify)â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦
6. What are the steps the company follow in recruitment?
7. What programs do you have in place to ensure that the best or most suitable applicant is chosen?
8. How are job postings done?
Combination (Please Specify) â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦....
Other (Please Specify)â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦.
9. Are job postings developed from a current position description or recent job analysis?
10. Do current position descriptions or job analyses identify the essential knowledge, skills, abilities, education, and experience needed to perform the job?
11. What are the selection method used by the bank?
12. Why do you use more than one selection method?
B. Questions about training
13. What types of training do you provide for new employees?
14. What are the methods used in training?
15. Do you arrange outdoor training? If yes, Pleas specify reasons behind it?
C. Questions about Motivation
16. How long have you been employed in the company?
17. How do you feel out about the job?
18. Do you think that you are being adequately compensated?
19. What types of benefits company offers for employees?
20. Do you carry out performance appraisal method? If yes, please specify reason behind it?
D. Questions about rewarding
21.Are the bank rewarded employees for a good job?
22. What are the policies about rewarding?
23.Please mention types of compensation system of this bank?