Hrm Strategies of Scb

“HUMAN RESOURCE

MANAGEMENT

PRACTICES IN”[STANDARD CHARTERED BANK]

DECLARATION

I declare that the project entitled “Human Resource Management Practices in Standard Chartered Bank. It is a record of independent research work carried out by me during the academic year 2009-2010 under the able guidance of my mentor and guide _______________________________.

I also declare that this project is the result of my effort and this project has not been submitted earlier in part or whole for the award of any other degree / diploma of any university. All the details provided in the report hold true to the best of my knowledge.

Place: Muscat, Sultanate of Oman

Date: ______________ 2010

Name (in Full)College / University

ACKNOWLEDGEMENTS

I extend my gratitude to our guide ________________________ who

inspired me to take up this project and had been guiding me and

gave me valuable suggestions in preparing this project report.

My gratitude and special thanks to all my friends who have provided

their assistance, motivation and support. Their constant support and

inspiration had been a driving force for the completion of this study.

Lastly, I would like to thank all the respondents who offered their

opinions and suggestions at various phases of the survey conducted

by me.

TABLE OF CONTENT

TOPIC_________________________________________________1DECLARATION _________________________________________2

ACKNOWLEDGEMENT___________________________________3TABLE OF CONTENT____________________________________4

S.NO

DESCRIPTION PAGE NO.

1 EXECUTIVE SUMMARY 52 OBJECTIVE 83 METHODOLOGY 94 INTRODUCTION TO SCB 105 DESIGN AND APPROACH 146 STRATEGIC HRM PRACTICES OF SCB 177 ANALYSIS 318 RESEARCH METHODOLOGY 399 GRAPHICAL INTERPRETATION 4010 CONCLUSION 4711 ANNEXURE (QUESTIONNAIRE) 48

EXECUTIVE SUMMARY

Introduction:

Human Resource Management is the process of developing, applying

and evaluating policies, procedures, methods and programs relating to

the individual in the organization. Human resource management

includes Human Resource Planning, recruiting, selection, training and

development, compensation, performance management and employee

development. Effective human resource practices relate to company

performance by contributing to employee and customer satisfaction,

innovation, productivity, and development of a favorable reputation of

the firm in the industry.

Objective:

The project has been undertaken to assess the Strategic Human

Resource Management practices of Standard Chartered Bank with the

prime focus at formulation of strategies and tactics and how it

contributes in implementing the strategies.

Methodology:

The information related to the project has been collected from the

Standard Chartered Bank, Muscat Branch in Oman. The methodology

adopted is as follows:

o Data collection by conducting interviews of officials of the

Bank

o Frequent visits

o Internet Search

o Study of Bank’s annual reports

A comprehensive study of the literature has been carried out the see

the factors that help in achieving a competitive advantage in a dynamic

banking environment.

Scope of Study:

As we know services are a growing industry and many firms are striving

to deliver value added services to their customers. In this regard banks

are continuously focusing towards improving their services. Similar is

the case with Standard Chartered Bank. This Bank has evolved

tremendously during the last couple of years and now has become one

of the leading banks in the country.

Keeping this in view the study has been undertaken to identify the

strategies and plans of the Bank and to identify the methods adopted by

the Bank to train and motivate their people and work force.

Literature Review:

Human resources management includes a variety of activities, and

among them is deciding what staffing needs an organization has and

whether to use independent contractors or hire employees to fill these

needs, recruiting and training the best employees , ensuring they are

high performers , dealing with performance issues and ensuring the

personnel and management practices conforms to various regulations.

Activities also include managing their approach to employee benefits

and compensation, employee record and personnel policies.

HRM strategies have shown to be valuable to any company’s success.

Thus to be successful in a global market place, the challenge for all

businesses regardless of size is to invest in human resources. They

need to select and retain talented employees, undertake employee

training and development programs and dismantle traditional

bureaucratic structures that limit employee’s ability to be innovative and

creative. Few commonly used HR activities are HR Planning,

Recruiting Selection, Training and Development, Compensation

Performance Management and Employee Relations

World-class organization use performance measurement systems to

determine whether they are fulfilling their vision and meeting their

customer-focused strategic goals. Leading-edge organizations use

performance measurement to gain insight into, and make judgments

about, the effectiveness and efficiency of their programs, processes,

and people. These best-in-class organization decide on what indicators

they will use the measure their progress in meeting strategic goals and

objectives, gather and analyze performance data and then use those

data to drive improvements in their organization and successfully

translate strategy into action.

Thus in today’s organizations, the use of Strategic Human Resource

Management information is to help set agree-upon performance goals,

allocate and prioritize resources, inform managers to either confirm or

change current policy or program directions to meet those goals, and

report on the success in meeting those goals.

OBJECTIVE

This project has been chosen to understand and assess the Strategic

Human Resource Management practices of Standard Chartered Bank

with the prime focus at formulation of strategies and tactics and how it

contributes in implementing the strategies, thus creating a correct

momentum between the employer and the employees.

METHODOLOGY

I have collected data from Standard Chartered Bank Oman, and at the same

time evaluating the procedures being followed by other prominent banks and

meeting representatives to get their feedback on the procedures and HR

strategies and its standard operating procedures. The focus and

concentration here in this project is centric to Standard Chartered Bank Oman

HR Strategies.

INTRODUCTION TO SCB

History of Standard Chartered Bank

Standard Chartered is the worlds leading emerging markets bank

headquartered in London. Its businesses however, have always been

overwhelmingly international. Standard Chartered is name after two

banks, which merged in 1969. They were originally known as the

Standard Chartered Bank of British South Africa and the Chartered

Bank of India, Australia and China. Of the two banks the Chartered

Bank is the older having been founded in 1853 following the grant of

Royal Charter from Queen Victoria. The moving force behind the

Chartered Bank was a Scot, James Wilson, who made his fortune in

London making hats. James Wilson went on to start The Economist, still

one of the world’s pre-eminent publications. Nine years later, in 1862

the Standard Bank was founded by a group of businessmen led by

another Scot, John Paterson, who had immigrated to the Cape Province

in South Africa and had become a successful merchant. Over the

following decades both the Standard Bank and the Chartered Bank

printed bank notes in a variety of countries including China, South

Africa, Zimbabwe, Malaysia and even during the siege of Marketing in

South Africa. Today Standard Chartered is still one of the three banks,

which prints Hong Kong’s bank notes.

The Post War Years:

After the Second World War many countries in Asia and Africa gained

their independence. This led to local incorporation in some countries,

particularly in Africa. Other operations such as those in Iraq, Angola,

Myanmar and Libya were nationalized, while in Indonesia the Jakarta

office was destroyed in an attempted coup d’etat. In 1948 the Chartered

Bank opened in Bangladesh and during 1957 it acquired the Eastern

Bank. The Eastern Bank gave the Chartered Bank a network of

branches including Aden, Bahrain, Beirut, Cyprus, Lebanon, Qatar and

the United Arab Emirates. The Chartered Bank also entered into a joint

venture to form the Irano-British Bank, which opened for business in

1959. The bank grew rapidly and had 24 branches when it was

nationalized in 1981. By the mid 1950’s the Standard Bank had around

600 offices in Southern, Central and Eastern Africa. Its network grew

substantially in 1965 when it merged with the former Bank of British

West Africa, which had some 60 branches in Nigeria, 40 branches in

Ghana and eleven branches in Sierra Leone in addition to operations in

Cameroon and Gambia. Despite these acquisitions and expansion into

new counties such Mexico, South Korea and Oman 1968, both the

Standard and Chartered Bank networks were comparatively small. Both

viewed the future with some trepidation as the need to protect

themselves from acquisition became ever more apparent. Standard

Chartered PLC in 1969 the decision was made by the Standard Bank

and the Chartered Bank to undergo a friendly merger thus forming

Standard Chartered PLC.

By the late 1980’s Standard Chartered already had considerable

exposure to third world debt. To this was added provisions against

loans to corporations and entrepreneurs who could not meet their

commitments. Standard Chartered reviewed its operations and decided

to focus on its core strengths of Consumer Banking, Corporate &

Institutional Banking and Treasury in its well-established operation in

Asia, Africa and the Middle East. This led to a series of divestments

notably in Europe, the United States and Africa. During this time staff

numbers were reduced; business not considered core were sold or

closed; associate holdings disposed of; unprofitable branches closed

and back office functions consolidated. In addition expensive buildings

were sold with the proceeds reinvested in the business, and the senior

management team was radically changed and strengthened.

Standard Chartered in the 1990’s:

Even within this period of apparent retrenchment Standard Chartered

expanded its network, re-opening in Vietnam in 1990’ Cambodia and

Iran in 1992, Tanzania in 1993 and Myanmar in 1995.

Standard Chartered Today:

Today Standard Chartered is the worlds leading emerging markets bank

employing 30,000 people in over 500 offices in more than 50 countries

primarily in countries in the Asia Pacific Region, South Asia, the Middle

East, Africa and the Americans.

The new millennium bas brought with it two of the largest acquisitions in

the history of the bank with purchase of Grindlays Bank from the ANZ

Group and the acquisition of the Chase Consumer Banking operations

in Hong Kong in 2000.

These acquisitions demonstrate Standard Chartered firm is committed

to the emerging markets, where the Bank has a strong and established

presence and where they see their future growth.

Performance Review in Oman:

Standard Chartered has been in Oman since 1969 and is one of the few

operating foreign banks. There are 2 branches of Standard Chartered

Bank and one head office in the sultanate offering full banking services

in corporate, institutional and consumer banking services. Adopting a

pro-active approach, the bank is able to offer a flexible and

comprehensive range of financial services in particular transactional

banking products. The bank has also invested in its branches to ensure

that their business is supported by high-tech operations using state-of-

the-art technology. Dedicated customer services with solution-oriented

cash specialists to provide customers with cost-effective solutions.

Electronic delivery system has been put in place to give customers

maximum control of their transactions.

DESIGN AND APPROACHES

Services Design:

Designing services to accommodate their unique characteristics is

challenging. One reason productive improvements in services are so

low is because both the design and delivery of service products include

customer interaction. The services provided at SC Bank are primarily

based upon a few approaches. The outsourcing of payments continues

to be a major area of focus for finance and treasury professionals. Over

the past years, competition has become more intense and this has

helped drive the increase in the number of companies that use

payments outsourcing as a way to reduce cost and focus on core

activities.

The Ad Hoc Approach:

The ad hoc approach is often the default method of regionalization of

payments and other cash management activities. This is often

undertaken when decision-makers make a priority determination that

centralizing cash management activities offers significant benefits to the

bank and thus should be implemented. At Standard Chartered this

approach is frequently accompanied by minimal investigation and

planning, which invariably leads to difficulties and dissatisfaction. The

sum total of planning is often reduced to determining which financial

institute can best meet the open ended requirements of the bank.

Banks may be guilty of reinforcing the ad hoc approach if they do not

take the time to understand their customer strategies, objectives and

type of businesses, and make recommendations that may not have

been originally considered. This can be a function of whether the

service provider considers the implementation of capabilities as simple

sale or the start of a long-term implementation.

The Strategic Approach:

The Strategic approach is also part of a global or regional strategic

planning process that encompasses the entire organizational structure

of the Bank. Often this is accompanied by the implementation of a high-

end Enterprise Resource Planning (ERP) system, such as Oracle or

SAP, which integrates the various units.

The Pragmatic Approach:

The pragmatic approach alone is not a priority but rather a post-hoc

determination. The most straightforward and effective questions that the

Bank asks itself when taking the pragmatic approach are:

Where are we now? / Where do we want to be?

What is the best way to get there?

Limitations of the Ad-Hoc Approach:

The disadvantage of the ad hoc approach is that sometimes the bank

over or under estimates the transaction costs and thereof the benefits

obtained from centralization choose their significance.

Limitations of the Strategic Approach:

Disadvantages of the strategic approach are chiefly a function of size

and complexity. The strategic approach may not be the most cost

effective as it often ignores the implementation and running costs in

favor of a corporate strategy that is geared toward centralization.

Limitations of Pragmatic Approach:

The disadvantage of the pragmatic approach is the difficulty in

maintaining implementation efforts that are proportionate to the

advantage that the Bank can gain from the centralization activity.

Operations Strategies for Banking Services:

How can we satisfy our customer? This is perhaps the most important

question that the Bank can ask from itself and its people. Customer

needs and wants to run the full gamut, from tangible products, quality of

services delivered, and attitude of the entire management to the

aesthetics. In this regard, Standard Chartered Bank aims at satisfying

these needs and wants by developing and fulfilling missions and

strategies, which can be as diverse as the customers they serve.

Operational Strategies:

To steadily develop the lending business and upgrade the quality of

loan assets.

In lieu of Islamic banking the Bank aims to aggressively promote fee-

income business to raise non-interest revenue sources.

To provide efficient services to fulfill customers needs and create a

high-quality service image.

To actively set up business units in major business centers of the

country.

To aggressively develop international banking operations and seek

opportunities to develop strategic alliances with other banks to

create new products and services.

Operation Plans:

The Operational Plans of the Bank are Deposits, Loans, Domestic

Banking, Trust Operation and Treasury Operations

STRATEGIC HRM PRACTICES OF SCB

People, rather the employees are the asset of any organization. An

organization, whether it is a manufacturing concern or service oriented,

cannot function without the active participation of people.

Standard Chartered is the world’s leading emerging markets bank. It

employs 30,000 people in over 500 offices in more than 50 countries in

the Asia Pacific Region, South Asia, the Middle East, Africa , United

Kingdom and America.

Human Resource Planning:

HR planning is a process, which anticipates and maps out the

consequences of business strategy on an organization’s human

resources. This is reflected in planning of skill and competence needs

as well as total headcounts. Every organization needs to be able to

forecast and plan for its future people requirements.

At Standard Chartered Bank, human resource planning involves

forecasting the numbers of people which will needed by the bank, and

then working out the best way of obtaining then as and when they are

needed.

Forecasting:

Forecasting is the major function of the bank’s HR department. The

forecasting activities include:

1. Workforce numbers in sufficient detail to be useful.

2. Likely changes to the work of the bank.

3. Work force supply – this involves forecasting the variations in the

current work force estimated to occur over the following years.

4. Impact on budgets and funding.

Who ‘s responsible for it?

It’s easy to shift responsibility and say that personnel and human

resource departments should carry out HR planning , but it should be

the concern of every manager. As the Bank operates in a dynamic

environment where new and advanced practices are frequently

emerging resulting in changing customer’s requirements.

Good Practice Indicators:

Standard Chartered Bank makes sure that effective human resource

planning processes are in place when

1. Appropriately skilled people are available to be deployed in the

Bank’s to meet forecast work demands.

2. The Bank’s structure provides with opportunity for appropriate

career development, and is perceived to contribute to effective

and efficient work practices.

3. Relevant workforce data is readily available to inform

management decision-making on human resource issues.

Standard Chartered Bank ‘s Structure:

The Bank’s structure is the means by which the work is integrated to

ensure that the objectives and activities of individual work teams and

departments match the overall goals.

The structure of the Bank provides scope for the flexible deployment of

people and to promote equity, job satisfaction, motivation and

commitment to goals; as well as providing access to career

development.

Workforce Analysis (Supply and Demand)

The effective collection and analysis of workforce statistics trends in the

workforce to be considered with the specific requirements for skilled and

qualified people to meet the corporate aims to be kept in mind.

Workforce statistics and analysis support Bank’s efficiency and

effectiveness by providing a firm basis for human resource planning.

Any information gathering systems in place should support manages

and be responsive to their needs as well as being easily accessible in

the workplace.

Training & Development:

Development is critical to future business success. The bank

performance will only continue to improve if it develops the people who

are part of the bank . To develop people is to invest in the future.

As Standard Chartered , training is a partnership between the employee

and the Bank. The Bank provides a framework within which the

employee can identify the training and development needs. Such

training provides a consistent standard of management learning

throughout Standard Chartered . It also enables the employees to take

all of the programs or study for individual modules according to their

particular development needs.

The Initial Two Years:

What the employee can expect to experience during initial 2 years

training is a blend of core and discretionary elements , such as:

1. Induction i.e. the processes that introduces the new entrant to the

bank, the employee’s own business or function and particular

department.

2. Training in specific products or technical skills.

3. Work-based assignments in respective business or function i.e.

doing a job in a particular department for a period of time.

4. Cross-functional attachments – experiencing short period of time

spent in another business or support function.

Long Term Training:

Development and training does not stop after two years. After this initial

training, the employees are faced with internal development programs,

business-related studies and professional qualifications, and the bank

also offers the opportunity to develop skills through externally

accredited courses. These are designed in conjunction with top

universities and business schools including postgraduate , MBA.

Accreditation Internal

External Schools Executive Development

MBA Diploma in Management

Certificate in Management Foundation Course

Induction Course

Orientation:

Every staff member joining Standard Chartered Bank has to attend a 2-

day comprehensive orientation to get a feel about the Bank and its

business. This orientation program provides a good chance to meet with

seniors & colleagues and to build up the team spirit.

Product Training:

Product training is provided e.g. cash product training, operational

training etc. to help the related staff to learn more about the products

that the Bank is providing.

Skill Training:

The bank provides a lot of skill related training e.g. credit workshop,

sales & negotiation skills , project management , etc. to help staff

enhance their skill in particular aspects.

On-job Training:

Staff members are continuously involved in the learning process in the

form of on-job training . Thus , a lot of on-job training opportunities and

job rotation to increase staff’s exposure are provided.

Self-learning:

The bank sends out CDs and books to staff for them to study on trade

knowledge , credit knowledge, etc. and staff will decide when he/she will

attend the Trade Skill Assessment(TSA) and Credit Skill Assessment

(CSA).

Management Development Training:

In this training program, the employees are given strategic perspectives

and business goals management skills; people management ,

networking and customer focus abilities to better understand and

manage their jobs.

Specific Competency Training:

Specific Competence Training is to ensure that the staff excels in

product knowledge, regulatory and unique techniques needed for the

particular position.

Learning and Development:

Standard Chartered recognizes that it is essential that they have the

best people equipped with the right skills and knowledge to perform

their roles to the highest standards. They went talented professionals,

who seek self-development opportunities including continuing

professional development. In return the Bank offers excellent training

and development. They focus development on where they believe that

they will get the greatest return, by developing employees strengths.

Recruitment:

To facilitate the recruitment process the candidates can apply online on

the web portal or can personally handover their resume to the local

branch office HR department. It is the aim of management to recruit

young, bright, energetic and enthusiastic graduates and post graduates.

Who are they recruiting?

1. Bright, young graduate or a postgraduate, who cannot wait to

start his/ her career in the financial services industry.

2. Consistent academic performer throughout his/her education.

3. Career-oriented person

4. Energetic, ambitious, innovative and business-oriented person.

Recruitment Criteria:

Standard Chartered Bank recruits the most talented individuals from the

external market to supplement their internal pipeline of talent. Their

Human Resources department provides guidance on the use of

psychometric tests and has robust recruitment criteria to ensure that all

candidates are treated fairly, equally and with respect. It has a global

Graduate Recruitment Program; where in the region of 150 graduates

are recruited each year on a management trainee program across all

businesses, functions and countries.

Selection:

Standard Chartered selects employee based on knowledge, skills and

talent. They are committed to providing equality of opportunity to all

employees, regardless of gender, race, nationality, age, disability,

ethnic origin, or marital status. They are committed not just providing

equality of opportunity to all employee, but also identifying what unique

strengths each individual brings to the roles they carry out and the

development of these strengths.

Employee health, well-being and safety:

Standard Chartered Bank believes that the health and wellbeing of their

employees and their families is important. They are concerned not only

about the physical health of their employees, but also their mental and

emotional well-being. Standard Chartered has policies & practices that

provide for a safe and healthy working environment. They place

importance on the safety and well-being of their staff, communities and

on the effect its working and operational processes have on the

environment. They are continually developing policies and practices

designed to maintain the highest appropriate standards.

Compensation:

At Standard Chartered Bank, the compensation package provided to

the employees can be divided into two categories. One comprises of the

sales personnel who are compensated on their ability to meet their

targets. Second is compensating the executives who are responsible for

the overall functions of the Bank.

Compensating the Sales Force:

How the Bank presents itself to its corporate as well as individual

customers is dependant upon the ability of its sales force. These are the

individuals who take and active approach is getting the message out

about the Bank’s products and services. How effectively the sales team

markets the Bank and in run, how successful it is, is directly related to

the sales compensation program.

The key to a successful sales compensation program is achieved in

three steps:

1. Clearly defining sales goals that are realistic but challenging

2. Tracking and measuring performance against goals

3. Rewarding achievement with competitive and motivational

compensation

Sales compensation packages typically comprise one or more of the

following components:

1. Base Salary

2. Periodic incentives tied to short-term goals

3. Annual Incentives tied to longer-term sales activities

4. Commission-based incentives

5. Perquisites to facilitate sales efforts

Executive Compensation:

The way the Bank pays its top management plays an important role in

motivating the critical performance needed to run it effectively. Base

salary is not the only component of the typical executive’s

compensation package. Executive compensation packages typically

comprise the following components:

1. Base Salary

2. Annual Incentives

3. Long-Term Capital Accumulation

4. Deferred Compensation Arrangements

5. Supplement Benefits and Perquisites

6. Special Severance and Retirement Arrangements

7. Employment and Change of Control Agreements

Reward & Recognition:

Standard Chartered Bank aims to reward the talented and high

performing employees competitively. They regularly conduct salary

surveys to ensure that the reward package remains competitive in the

market place. They encourage continuous discussion; encourage

regular review of employees’ performance and development. This

provides feedback to the staff about how they are doing. The

management links this to both financial and non-financial recognition.

In addition to this, the bank provides various incentives in the form of

bonuses to encourage the employees and motivate them to continue

with their high performance. These include Spot Award, Surprise

Award, Best Performer Award, Service Quality Award, and Year of

Excellent Services Award.

Quality of Work Life:

This means a job that not only is reasonably safe but also for which the

pay is equitable. At Standard Chartered Bank every employee in

confident of his job security and has the assurance that he would

remain on the job for the agreed period. In addition to this, the workload

is equitable divided between the employees and therefore, they work

with peace of mind and tranquility resulting in the overall enhanced

performance of the employees.

Mutual Commitment:

Both the employees and the management try to meet the common

objectives. They coordinate their activities to ensure that they are

heading towards achieving the established goals and meeting the set

targets within the specified time frame.

Mutual trust:

At Standard Chartered Bank prevails an environment of confidence and

mutual trust. The documented employment policies are honestly

implemented to the satisfaction of both management and employees.

Job Design:

Job design comprises of six components. These are:

Labor Specialization:

The Bank aims at hiring specialized people and their recruiting criteria

are based on their knowledge, expertise, past working experience and

their exposure to the professional fields. Employee wages are set in

accordance with the aforesaid recruitment criteria and most of them are

intent with what they earn at Standard Chartered Bank

Job Expansion:

The Bank improves the quality of work life by assigning various tasks to

the employees so as to equip them with the different services offered by

the Bank. Job expansion includes job enlargement, rotation, enrichment

and empowerment.

Psychological Components:

For enhancing the skills and abilities of the work force, the

psychological components of job design are also catered for by

Standard Chartered Bank. These psychological components focus on

how to design jobs that meet some minimum psychological

requirements of the employees. These components are utilized in

accordance with Core Job Characteristics, which suggests that the jobs

designated to the various employees in the bank include the following

five aspects:

1. Skill Variety

2. Job Identity

3. Job Significance

4. Autonomy

5. Feedback

Self-Directed Teams:

A self-directed team is a group of empowered individuals working

together to reach a common goal. At Standard Chartered Bank, these

teams are found in almost every department to achieve the set targets.

These teams are an integral part of the personal loans, sales and credit

cards department where they are established to achieve both, the short-

term as well as long term objectives.

Motivation and Incentive Systems:

1. Sometimes the psychological components are not enough for

motivating the employees. In this case, monetary incentives play

a vital role for increasing the commitment of the employees

toward their jobs and in return enabling them to have job

satisfaction. These monetary incentives and rewards are given in

various forms to the employees who act as a strong motivational

factor.

Ergonomics:

Ergonomics is the study of work. It deals with building a good interface

between the man and the machines. Keeping this in view, the Bank has

been designed in such a way so that the employees are comfortable

working there.

Performance Management:

Traditionally, the formal performance appraisal system has been viewed

as the primary means for managing employee performance.

Performance appraisal is an administrative duty performed by

managers and primarily the responsibility of the HR function.

Performance management is the process through which managers

ensure that employee activities and outputs are congruent with the

organization’s goals. It is central to gaining competitive advantage.

Components of Performance Appraisal:

At Standard Chartered Bank the components of performance appraisal

are in respect of the five W’s that include: Who , What , Why , When

and Where of performance appraisal.

Who: All employees work under the supervision of managers.

Therefore, the manager is the best person to do performance appraisal

of his subordinates.

What: The appraisal at the organization includes appraisal of current

performance as well as the future potential. It also includes evaluation

of human traits such as behaviors, interaction with other staff members

etc.

Why: It is concerned with creating and maintaining a satisfactory level

of performance of employee in the present job, highlighting his needs

and potential for personal growth.

When: It is carried out on yearly basis. The manager uses good

work as opportunity to provide positive thrust and uses poor work as a

basis for training.

Where: The performance appraisal is done in a cordial and friendly

environment.

Approach of Measuring Performance:

The performance of the employees can be determined by making an

overall comparison among individual‘s performance. Hence a

performance measurement system is developed that incorporates a tool

for measuring performance.

Appraising Employee Performance:

Individual Performance Management:

A longstanding question that Standard Chartered Bank and many other

organization are still grappling with is whether and how to reward good

performance (or, conversely, how to deal with persistent poor

performers). One approach used by the bank is to make salary

increments or progression on the pay scale conditional on good

performance.

Performance Management At Senior Levels:

Typically, performance management systems for senior officials include

elements additional to performance-pay, such as time-limited

contractual appointments. The Bank has adopted this approach. Key

features of its system include the following:

1. Senior officials are recruited to a unified career structure known

as Grade A, which incorporates most top-level positions.

2. On the basis of evaluation, the senior position employees are

paid a performance bonus.

Linking Performance to Promotions:

Some have argued tying career advancement to performance is more

important than linking performance and pay. Whereas the benefits of

pay for performance are uncertain, particularly in the lower echelons,

there is no doubt of the need to ensure that the best people rise to

management levels.

ANALYSIS

HR Planning:

HR Planning process consists of forecasting, goal setting and strategic

planning, and program implementation and evaluation.

HR managers should attempt to ascertain the supply of and demand for

various types of human resources. The primary goal is to predict areas

within the organization where there will be future labor shortages or

surpluses.

As the Bank operates in a dynamic environment where new and

advanced practices are frequently emerging resulting in changing

customer’s requirements. Not only this, the demands on existing staff

resources fluctuate in order to maintain the provision of services, it

becomes even more critical that all managers contribute to HR planning

in a structure way.

Recruitment:

Human Resource Recruitment is defined ad any practice or activity

carried on by the organization with the primary purpose of identifying

and attracting potential employees.

The goal of an organizational recruitment program is to ensure that the

organization has a number of reasonably qualified applicants (who

would find the job acceptable) to choose from when a vacancy occurs.

Standard Chartered Bank recruits the most talented individuals from the

external market to supplement our internal pipeline of talent. Their

Human Resources department provides guidance on the use of

psychometric tests and has robust recruitment criteria to ensure that all

candidates are treated fairly, equally and with respect. It has a global

Graduate Recruitment Program; where in the region of 150 graduates

are recruited each year on a management trainee program across all

businesses, functions and countries.

Selection:

Any organization that intends to compete through people must take the

utmost care with how it chooses organizational members. Personnel

selection is the process by which companies decide who will or will not

be allowed into their organization. Several generic standards should be

met in any selection process, which are reliability, validity, general

ability, utility, and legality.

Standard Chartered selects employees based on knowledge, skills and

talent. They are committed to providing equality of opportunity to all

employees, regardless of gender, race , nationality , age , disability ,

ethnic origin , or marital status.

Training & Development:

Training refers to a planned effort by a company to facilitate the learning

of job-related knowledge, skills, or behavior by employees.

Standard Chartered provides a framework within which the employee

can identify the training and development needs. Such training provides

a consistent standard of management learning throughout Standard

Chartered. It also enables the employees to take all of the programs or

study for individual modules according to their particular development

needs.

Development Programs are carried out in the first two years of joining,

applicable to all management trainees, across the Bank. Each business

and function would decide the appropriate development needs for each

individual, within this overall framework.

Performance Appraisal:

Each organization must create and communicate performance

measures that reflect its unique strategy.

Performance management is the process through which managers

ensure that employee activities and outputs are congruent with the

organization’s goals. It is central to gaining competitive advantage.

A well-executive performance management plan enables an

organization to achieve critical goals such as:

1. Recognize the efforts and contributions of current staff.

2. Reward staff with compensation directly linked to performance.

3. Motivated staff to improve performance.

4. Orient staff towards goal achievement.

5. Retain key employees through the use of competitive compensation

programs.

6. Attract quality employees with an effective performance management

system.

The key elements of a Performance Management System include the

following:

1. A Formal Compensation Philosophy Statement

2. Salary Administration Program

3. Job Evaluation System

4. Performance Appraisal System

5. Reward Programs

Purpose of Performance Appraisal:

There are a number of reason for carrying out the performance

appraisal of employees such as promotion, transfer etc. Therefore, the

Bank makes sure that the employees clearly understand the objectives

of the performance appraisal.

Performance Measurement Criteria:

Once the Bank has determined what kind of performance it expects

from the employees, it needs to develop appropriate ways to measure

that performance.

Strategic Congruence:

The basic aim of Standard Chartered Bank is to provide speedy

customer services. Therefore its performance management system

should assess how well its employees are serving the customers.

Strategic congruence emphasizes the need for performance

management system to provide guidance to the employees so that they

can achieve the Bank’s and enable it to remain competitive. For this

purpose the system should be flexible to adapt to changes.

Validity:

According to the employees, the appraisal procedure used to measure

their performance lacks in one aspect. This aspect relates to the

deficiency element of validity. This means that as one standardized

format is used to evaluate performance, therefore it ignores many of the

job specific aspects.

Reliability:

At Standard Chartered Bank the performance management criteria

resembles test-retest reliability. According to this the employees are

evaluated on annual basis and those employees who have somewhat

similar ratings from year to year have greater chances of getting

promotion, bonuses etc. Therefore, the Bank checks the consistency of

performance of employees in this manner and determines that which

employees have the potential to grow and better serve the customers.

Acceptability:

Diverging opinions prevail about the acceptability of the performance

appraisal. Some employees accept them to be fair while others believe

them to be biased and predetermined. In addition to this the views

regarding fairness are perceived differently within the three category

including:

1. Procedural

2. Interpersonal

3. Outcome

Specificity:

One of the major lacking in the performance appraisal method of

Standard Chartered Bank is in the area of specificity. Amongst the

various levels of employees the performance evaluation is believed not

to provide specific guidance about what is expected of them and how

they can meet these expectations.

Source for Performance Information:

In case of Standard Chartered Bank, managers are the only and most

vital source of performance information. They have extensive

knowledge of the job requirements and adequate opportunity to observe

the way in which the employees fulfill these requirements, thus , they

are the best source to assess and rate their employees.

Rater Errors:

Like all other organizations, in Standard Chartered Bank the

performance evaluation process is affected by the rater’s error. The

rater error prevailing in the bank resembles the distributional errors. In

the bank the managers often go by their own preference while rating the

employees. Therefore there are high chances of making leniency,

strictness, and central tendency errors.

Top Management and Employee Perspective:

Although the performance management system at Standard Chartered

Bank has a vital role to play in assessing the potential of the employees.

Yet it is perceived to be a routine and cumbersome affair that has to be

undertaken once a year. This perception some what nullifies the true

essence in the performance management should be conducted.

Shortcomings of the Appraisal System:

The performance appraisal system at the Bank lacks in certain areas

such as:

1. Information regarding the employee’s performance is purely

dependent upon their managers. However, the employee are of

the view that information should also be collected from them as

they are the ones who perform are responsible for performing the

various tasks.

2. Thus, a major shortcoming of the system is that the employee’s

are not involved in the appraisal process.

3. The performance appraisal system is believed not to provide any

guidance for the development of employees.

4. The employees are of the opinion that the performance appraisal

should be done on quarterly basis, instead of being conducted

annually.

Necessary Measures:

Adopting the following measures can reduce the shortcomings of the

system:

Employees should be involved in the appraisal process, i.e. information

should be taken from them. The process should result in effective

outcomes by telling the employees that how can they improve their

performance. This would not only benefit the Bank, but would also help

the employees in their personal development.

Compensation:

Being a leading Bank Standard Chartered Bank presents itself to its

corporate as well as individual customer as dependent upon the ability

of its sales force. These are the individuals who take an active approach

in getting the message out about the Bank’s products and services.

How effectively the sales team markets the Bank, and in turn, how

successful it is, is directly related to the sales compensation program. A

sound sales compensation package enable Standard Chartered Bank to

focus sales activities towards desired results, and rewards these

outcomes with compensation tied directly to the level of achievement.

Rewards & Recognition:

Standard Chartered Bank rewards the talented and high performing

employees competitively. They regularly conduct salary surveys to

ensure the reward package remains competitive in the market place.

They encourage continuous discussion; encourage regular review of

employees’ performance and development. This provides feedback to

the staff about how they are doing. The management links this to both

financial and non-financial recognition.

In addition to this, the bank provides various incentives in the form of

bonuses to encourage the employees and motivate them to continue

with their high performance.

RESEARCH METHODOLOGY

Population:

The research conducted is a qualitative research to find out the HR

Management practices of Standard Chartered bank. People who

belong to this bank are considered as highly paid people. The

employees of the bank were selected as the population to carry out the

research that are the fully satisfied with the recruitment policies of their

bank and their bank is following the policies in a proper manner.

Sampling Frame:

The sampling frame will be people belonging to the upper, middle and

upper lower class and are currently working for the bank. The major

part of the sampling frame will be from the upper and middle class

because this is the major chunk of population who are banking

professionals.

Sampling Procedure:

The sampling procedure used is convenient sampling and according to

this sampling technique all the people that roughly fit into my sampling

frame and which belong to this bank. The sample size was a total of

100 people who were currently working for the banking sector in Oman.

Total 400 questionnaires were distributed out of which I only received

100 filled questionnaires.

Data Collection procedure:

The data collected is through Primary and secondary sources and

through the responses to the questionnaires conducted. Also, through

the Internet, published articles, interviews, books, and HR manuals.

GRAPHICAL INTERPRETATION

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The result showed that 30 % of the people who were employed are between

the ages of 18-25 which shows that the Bank recruits young people who are

more passionate towards the achievement of goals.



This question is asked just to know about the ratio of male and female and

according to the results the ratio is 56 % to 44%. Showing that the past trends

are changed in which males were dominated and females were on the

sidelines. Now banks are hiring the employees on the bases of there abilities

not on their genders



Results showed that 35% people were those who were graduated and they

have the relevant experience in their particular field. Bank searches talented

people with appropriate highly qualification and relevant experience.



















The results of the above analysis show that the independent variables such

as time taken during recruitment process, interviews, paneled interviews,

gender discrimination, and on-job training all have a significant effect on the

recruitment policies and HR strategies on the whole. It is evident from the

study that these variables incorporated gives leverage to the bank practicing

and incorporating the HR management practices efficiently.

CONCLUSION

Based on the study, several conclusions have been made. These

include:

1. In order to successfully conduct the HRM Strategies, Standard

Chartered Grindlays Bank should formulate effective internal and

external communication mechanism.

2. A conceptual framework understood by all levels of the bank

should be developed.

3. Accountability for results must be clearly defined and well

understood.

4. Performance measurement system must provide intelligence for

decision makers rather than just compiling data.

5. Compensation, rewards and recognition should be linked to

performance measurements.

6. Performance evaluation should be positive and not punitive.

7. Employees should be specific as to what is expected from them

so that they direct their efforts towards achieving those

expectations.

8. Feedback on the evaluation should be provided to the employees

so that they can improve their performance.

9. Lastly, performance measurement systems should not be seen

as a benchmark to evaluate an employee but it is a means to

understand the potentials of an individual.

ANNEXURE

Questionnaire

Name:_________________________________________

Organization:___________________________________

Q.1: What is your age?

I. 18-25

II. 25-35

III. 35-45

IV. 45 or above

Q.2: What is your Gender?

I. Male II. Female

Q.3: What describes your situation best before you took on the current job?

I. Non-Graduate without relevant experience

II. Non-Graduate with relevant experience

III. Fresh Graduate

IV. Graduate with relevant experience

V. Postgraduate without relevant experience

VI. Postgraduate with relevant experience

Q.4: How did you hear about your current job?

I. Newspaper Advertisement

II. Web Advertisement

III. University Career Fair

IV. Employment Agencies

Q.5: Were you asked to sit through a qualifying exam before you were

interviewed for the current job?

I. Yes

II. No

Q.6: How long did the recruitment process take?

I. One Week

II. Two Weeks

III. Three Weeks

IV. Four Weeks or above

Q.7: During the recruitment process, how many times were you interviewed?

I. Once

II. Twice

III. Thrice

Q.8: How many of these interviews included a panel of two or more

interviewees?

I. One

II. Two

III. Three

Q.9:Have you felt any gender discrimination during the recruitment process?

I. Yes

II. No

Q.10: Have you been provided with any on-job training on the current job?

I. Yes

II. No

Q.11: Do you think that the bank is following the policies in a proper way?

I. Somewhat Disagree

II. Disagree

III. Agree

IV. Somewhat agree

V. Strongly Agree

Q.12: Are you satisfied with your organizations current recruitment policies?

I. Highly Satisfied

II. Satisfied

III. Neutral

IV. Strongly Dissatisfied

Documents

Hrm Strategies of Scb