final project hr
TRANSCRIPT
STRATEGIC ANALYSIS
&
SWOT ANALYSIS
OF
STANDARD CHARTERED BANK
PAKISTAN LTD.
ABSTRACT/ EXECUTIVE SUMMARY
In this study we analyze the strategic analysis and SWOT
analysis of human resource management system implemented in
Standard chartered Bank Pakistan ltd. Standard chartered bank
is the multinational bank operating in Pakistan. After the
acquisition of union bank it has become one of the largest
multinational banks operating in Pakistan. The strategic
analysis of standard chartered human resource system gives us
detailed information about its employment practices,
performance management, compensation and benefits, health
safety and security which the standard chartered is offering to
its employees. Especially after the acquisition of the Union
Bank Ltd the Human Resource department of Standard Chartered
Bank is a question mark for there management as they have to
merge the two giant structures of HR of both of the bank to
one. The SWOT analysis of standard chartered tells us areas
where the standard chartered is strong in dealing human
resource, where it is facing weaknesses, what are the
opportunities for it and what are the threats coming in its
way. After this detailed study one can easily understand what
sort of human resource management system is prevailing in
standard chartered bank, about its effectiveness, what are the
flaws and how they can be overcome? This study also gives us
the information about the tools and measures used to weld the
leakages in the pipe of the Human Resource Management System of
the Standard Chartered Bank and the efficiency and output of
those tools which can easily be determined by having a look on
the change occurs before and after the application of these
tools.
TABLE OF CONTENTS
1.INTRODUCTION 4
1.1 Problem Statement 41.2 Objectives of the Study 41.3 Scope & Limitations 41.4 Research Methodology
2.LITERATURE REVIEW 4
3.INTDUSTRY OVERVIEW/ INDUSTRIAL ANALYSIS 5
4.ORGANIZATIONAL OVERVIEW 8
2.1 MANAGEMENT PEOPLE 92.2 SCB VISION & MISSION 142.3 ORGANIZATIONAL BACKGROUND 152.4 STANDARD CHARTERED VALUES 262.5 STANDARD CHARTERED BUSINESS 34
5.IDENTIFICATION OF ISSUES 38
5.1 STRATEGIC ANALYSIS 385.2 BASIC EMPLOYMENT PRACTICES 425.3 EMPLOYEE CAREER DEVELOPMENT 495.4 COMPENSATION AND BENEFITS 515.5 PERFORMANCE MANAGEMENT 535.6 SEPARATION FROM THE COMPANY 545.7 HEALTH SAFETY AND SECURITY 555.8 SWOT ANALYSIS 57
6.POSSIBLE OPTIONS/ ALTERNATIVES 60
7.RECOMMENDATION & ACTION PLAN 61
8.REFERENCES 64
CHAPTER-1:“INTORDUCTION”
1.1 PROBLEM STATEMENT:
Identify the flaws in the strategies followed by the Human
Resource Department of the Standard Chartered Bank through
strategic and SWOT Analysis.
1.2 OBJECTIVES OF THE STUDY:
The objective or the purpose of this study is to analyze the
strategies which the Human Resource Department of the Standard
Chartered Bank has applied for their human resource and SWOT
Analysis of this HR system that whether this HR system is
effective or not and what are the difficulties they are facing
in managing their human resource. After the precise study we
will find the flaws and problems exists in their HR system and
what are the solutions of those problems and what are tools
that will be used to overcome these flaws and problem.
1.3 SCOPE AND LIMITATIONS:
After a detailed study and the identification of the problem we
will be able to design an action plan or strategy, which will
guide us how to resolve the problem or how to functionalize
that strategy in that problem area in order to get the desired
output. The scope of this study will be in the form of the
positive result in the Human Resource Management System after
the implementation of this action plan. By positive result we
mean the difference in Performance management, career
development, basic employment practices, compensation and
benefits, health safety and security and employee retention
before and after the implementation of that action plan which
will ultimately result in the better output or better
productivity of the company. And if we fail to implement that
action plan the level of de-motivation will increase in
employees, their performance will be below average, employee
retention will be decreased and because of all this the
productivity of the company will suffer.
As we know services are a growing industry of Pakistan and many
firms are striving to deliver value added services to the
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 Pakistan.
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.
1.4 RESEARCH METHADOLOGY:
The information related to the project has been collected from
the Standard Chartered Bank, Islamabad Branch. The methodology
adopted is as follows:
Collection of data by conducting interviews of
officials of the Bank
Frequent visits
Internet Search
Study of Bank’s Employee induction booklet.
A comprehensive study of the literature has been carried out to
see the factors that help in achieving a competitive advantage
in a dynamic banking environment.
CHAPTER – 2
“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 practices 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.
The commonly practices HR activities include the following:
HR Planning
Recruiting
Selection
Training and Development
Compensation
Performance Management
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.
CHAPTER - 3
“INTUSTRY OVERVIEW/ INDUSTRIAL ANALYSIS”
Beside Standard Chartered Bank there are lots of multinational
and local banks exists in the market that have different Human
Resource Management Systems implemented. The list comprises of:
1- Citibank
2- Royal Bank of Scotland
3- HSBC
4- Barclays
5- HBL
6- UBL
7- Allied Bank
8- Soneri Bank
9- Askari Bank
10- JS Bank
11- Faysal Bank
12- NIB Bank
13- The Bank of Khyber
14- The Bank of Punjab
All of these banks have different HRM Systems implemented but
none of them matches with the Standard Chartered Bank HRM
System. The common thing in all of the above listed banks is
that they have 2 types of HRM Systems, one is Bank Contract and
the other is Outsource Contract, 50% to 60% employees of these
banks are on outsource contracts. These outsource contracts
have totally different structures than the Bank contract
regarding the compensation and benefits, performance
management, health safety and security and salary and wages. So
there is a gap between the outsourced employees and the bank
contract employees which results in lack of coordination
between the two different contract employees. Some of the
outsource companies are:
1- HRM
2- Pioneer Contract Services
3- Professional Employers
4- United HR Services
By having an overview of these HR systems implemented in the
market Standard Chartered Bank has designed its own HR system
which is different from all these HR systems. This Human
Resource Management System will be discussed in the Strategic
Analysis Section.
CHAPTER - 4
“ORGANIZATIONAL OVERVIEW”
MESSAGE FROM BADAR KAZMI (CEO)
First of all a warm welcome to Standard Chartered Bank Pakistan
(Pvt) Ltd. No matter where in the company you work, you have a
real part to play in helping us achieve our goals and
ambitions. Our aspiration is to be the most productive and best
managed sales force in Pakistan.
We want to:
Offer outstanding customer service, not simply to our
external customers but also to our internal colleagues.
Be a place where innovation and creativity becomes part of
our everyday behavior.
Be a company where you are able to fulfill your potential
and personal aspirations, not only in the office, but also
by participating in the communities where we live and
work.
As you get to know the team in which you work and the company
you have joined, I hope you will quickly start to feel part of
the Standard Chartered Group. All efforts invested in
understanding the full potential of your role and how each of
you can significantly contribute towards the growth of the
company and ultimately yourselves will be an investment worth
every bit of your time.
This company has been formed through the efforts and hard work
of a diverse group of individuals, who have been passionate
towards consumer sales and also believe that every individual
who contributes to our growth deserves to be respected and
taken care of. My sincere gratitude to all of them.
Welcome to Standard Chartered Bank Pakistan (Pvt) Ltd.
Badar KazmiCEOStandard Chartered Bank Pakistan (Pvt) Ltd.
2.1 MANAGEMENT PEOPLE
CHAIRMAN
Mervyn Davies CBE
EXECUTIVE DIRECTORS
Peter Sands Mike DeNoma
Richard Meddings Gareth Bullock
NON-EXECUTIVE DIRECTORS
John Peace Sir CK Chow
Jamie Dundas Val Gooding
Rudy Markham Ruth Markland
Sunil Mittal Paul Skinner
Oliver Stocken Lord Turner
EXECUTIVES
Afaq Khan Gerard Lyons
Jaspal Singh Bindra Mike Rees
Peter Flavel Tim Miller
MESSAGE FROM BOARD OF DIRECTORS
Welcome to Standard Chartered Bank Pakistan (Pvt) Ltd. Our
vision is to become the “Most Productive and Best Managed Sales
Force in Pakistan” and today you have just become the part of
this vision.
The formation of Standard Chartered Bank is an essential step
towards realizing our vision and an essential part of the
Standard Chartered Group’s strategic intent of “Leading the way
in Asia, Africa and the Middle East”.
Price Solution Pakistan is a Direct Sales Subsidiary (DSS),
wholly owned by Stan Chart Nominees Limited, a Standard
Chartered Group company. We are the first and only organization
in the Consumer Banking industry of Pakistan to undertake this
innovative approach of Consumer Banking Sales.
We aim to:
Outserve our customers with a highly responsive, engaged
and professional sales force and a high customer service
orientation.
Provide our staff with an emerging and challenging work
environment with opportunities for professional and
personal growth.
Provide our staff and opportunity to hone their skills and
talents both through the guidance of experienced managers.
Introduce compensation and benefit structures to foster a
culture of high performance.
Introduce a more disciplined and professional form of
sales with strong emphasis on controls and governance.
We have come a long way in our journey towards becoming the
best managed sales force in the country. Now its time for you
to join us in this journey. You are all part of a revolution
that will define the standards for consumer banking sales in
the coming years. We will attain our vision – hand in hand.
Good Luck!
STANDARD CHARTERED’S VISION
THE WORLD’S BEST INTERNATIONAL BANK
LEADING THE WAY IN ASIA, AFRICA AND THE MIDDLE EAST
STANDARD CHARTERED’S MISSION
TO BE THE “RIGHT PARTNER”
2.3 ORGANISTAIONAL BACKGROUND
Standard Chartered PLC
Type Public
Founded 1852
Headquarters London, United Kingdom
Key peopleE. Mervyn Davies CBE, Chairman, Peter Sands,
Chief Executive
Industry Banking
Products Financial Services
Revenue $13.0 billion USD (2005)
Operating
income$8.620 billion USD (2006)
Net income $2.4 billion USD (2006)
Employees Nearly 60,000 (2007)
Website www.standardchartered.com
Standard Chartered Bank (LSE: STAN, SEHK: 2888) is a
British bank headquartered in London with operations in
more than fifty countries. It operates a network of over
1,600 branches (including subsidiaries, associates and
joint ventures) and employs almost 56,000 people.
Despite its British base it has few customers in the
United Kingdom and 90% of its profits come from the Asia
Pacific Region, South Asia, the Middle East and Africa.
The bank's history is entwined with the development of the
British Empire its operations lie predominantly in former
British colonies, though over the past two decades it has
expanded into countries that have historically had little
British influence. It aims to provide a safe regulatory
bridge between these developing economies.
It now focuses on consumer, corporate and institutional
banking, and on the provision of treasury services – areas
in which the Group had particular strength and expertise.
Standard Chartered is listed on the London Stock Exchange
and the Hong Kong Stock Exchange and is among the top 20
constituent members of the FTSE 100 Index.
History
The Standard Chartered Group was formed in 1969 through a
merger of two banks: The Standard Bank of South Africa
founded in 1863, and the Chartered Bank of India,
Australia and China, founded in 1853.
As its operations came under threat from nationalization
programs in the countries in which it was present in the
1970s, the bank sought expansion in developed countries,
particularly the USA.
It also proposed a takeover of The Royal Bank of Scotland
Group, which would have given it a substantial base in its
home country, but this was prevented by a counter-bid from
the HSBC and then blocked by competition authorities in
1981. When a hostile takeover bid was made for the Group
by Lloyds Bank in 1986 this was successfully defeated.
After this, Standard Chartered entered a period of change.
The bank made provisions against third world debt exposure
and loans to corporations and entrepreneurs who could not
meet their commitments. It then began a series of
divestments as it sought to re-focus itself on emerging
markets.
It divested its stake in the Standard Bank of South Africa
in 1987 in response to anti-apartheid pressure and today
that bank is one of its major competitors in Africa.
In 2000, Standard Chartered acquired Grindlays Bank from
ANZ Bank. The move caused some overlap in operations, for
instance, giving it a second banking license in Qatar and
an additional four branches in Bahrain. It sold both.
Local investors bought Grindlays Bahrain and renamed it
Commercial Bank of Bahrain. However, in the UAE Standard
Chartered integrated the Grindlays' branches into its
existing operation there.
Grindlays also had branches in areas Standard Chartered
didn't want. For instance, rather than adding the
Palestinian territories to the list of places in which it
did business, Standard Chartered chose to close Grindlays’
Nablus and Ramallah branches; it did, however, keep the
branch in East Jerusalem. In Greece, Standard Chartered
sold Grindlays' Athens and Pireaus branches to Aspis Bank.
The move's main benefits were an increased presence in
private banking and a rapid expansion in India and
Pakistan. Standard Chartered retained Grindlays' private
banking operations in London and Luxembourg and the
subsidiary in Jersey, all of which it integrated into its
own private bank. This now serves high net worth customers
in Hong Kong,Dubai and Johannesburg under the name
Standard Chartered Grindlays Offshore Financial Services.
It did, however, sell the Geneva branch and private
banking operation to Prudential-Bache International.
In India, Standard Chartered integrated most of Grindlays'
operations, making Standard Chartered the largest foreign
bank in the country, despite Standard Chartered having cut
some branches and having reduced the staff from 5500 to
3500 people. Among the branch reductions was the sale in
2002 of Grindlays' branch in Srinagar to Jammu and Kashmir
Bank and its Shimla and Darjeeling branches to ICICI Bank.
In Pakistan Standard Chartered merged in Grindlays'
operations, making Standard Chartered not only the largest
foreign bank in the country, but the only one with
branches in all four provinces.
Standard Chartered in The Americas
1968 Standard Chartered opened a representative
office in México City.
1979 The bank opened representative offices in Sao
Paulo, Brazil, and Lima, Peru.
1983 The bank opened a representative office in
Caracas, Venezuela.
1991 The bank opened a second representative office
in Mexico, this one in Monterey, in the north.
1995 The bank opened a representative office in
Bogotá, Colombia.
1996 The bank opened a representative office in
Buenos Aires, Argentina.
1998 Standard Chartered purchased Banco Exterior de
los Andes y de España (Banco Extebandes) in Colombia
and Peru.
2004 Standard Chartered closed its Colombian and
Peruvian subsidiaries and retained its representative
offices in both countries
Recent Strategic Alliances and Acquisitions
On 15th April 2005, the bank acquired Korea First Bank,
beating HSBC in the bid. Since then the bank has rebranded
the branches as SC First Bank.
Standard Chartered completed its integration between
Standard Chartered Bank Thailand and Standard Chartered
Nakornthon Bank in October. It also formed strategic
alliances with Fleming Family & Partners to expand private
wealth management in Asia and the Middle East, and
acquired stakes in ACB Vietnam, Travelex, American Express
Bank in Bangladesh and Bohai Bank in China.
On 9th August 2006 Standard Chartered announced that it
had acquired an 81% shareholding in the Union Bank of
Pakistan in a deal worth $415 million. This represents the
first acquisition by a foreign firm of a Pakistani bank
and once the merger is complete will make Standard
Chartered Pakistan's sixth largest bank.
On 22 October, 2006 Standard Chartered announced that it
has received tenders for more than 51 per cent of the
issued share capital of Hsinchu International Bank
(“Hsinchu”). On completion of the offer, Standard
Chartered will have majority ownership of Hsinchu,
Taiwan’s seventh largest private sector bank by loans and
deposits as at 30 June, 2006.
On Monday May 28, Standard Chartered is in final talks to
buy a 49 percent stake in an Indian brokerage firm (UTI
Securities) for 1.4 billion rupee (or around £17 million)
and wanted to eventually increase this stake to 70%
2007[1].
Its management has not ruled out further acquisitions.
SCB Pakistan
On August 1, 2000 Standard Chartered acquired Grindlays
Bank and in July 2001 all 15 branches of Grindlays and 6
of Standard Chartered moved to a single Technology
Framework. On December 1, 2002, Grindlays was amalgamated
with Standard Chartered. "Our commitment to the country is
absolute. The acquisition of Grindlays, a bank that
enjoyed an equally impressive history in the country, is
adequate manifestation of such commitment. Grindlays
provided us the penetration and scale needed for market
dominance. We are now the largest foreign bank in Pakistan
with branches in all the provinces of the country. No
other foreign bank can match this infrastructure." Badar
Kazmi, Chief Executive Officer, Standard Chartered
Pakistan. The Bank opened two new branches, 1 each in
Lahore and Islamabad, the only foreign bank to do so in
2002. Today it operates through a network of 21 online
branches and 25 ATMs, the largest network provided by any
foreign bank in Pakistan giving its customers a distinct
edge over competition enabling access to accounts from
anywhere in Pakistan.
In Pakistan, Standard Chartered's operations comprise
Standard Chartered Bank and First Grindlays Modaraba.
Focusing on both Consumer and Wholesale banking customers,
the bank employs 624 people locally across 8 cities and
caters to over 150,000 branch banking and 150,000 credit
card customers.
Position today
Today the bank is a leading player throughout the
developing world. Standard Chartered Bank is one of the
three banks issuing banknotes for Hong Kong, the other two
being the Bank of China (Hong Kong) and The Hongkong and
Shanghai Banking Corporation.
The Pakistan Credit Rating Agency (PACRA) has assigned a
long-term rating of “AAA” (Triple A) and a short-term
rating of “A1+” (A One Plus) to Standard Chartered Bank
(Pakistan) Limited (SCBPL). The bank’s three listed,
subordinated TFCs are also assigned “AAA” rating. These
ratings denote the lowest expectation of credit risk
emanating from an exceptionally strong capacity for timely
payment of financial commitments. The ratings remain
subject to a formal review by PACRA on release of audited
financial statements for the year 2006.
The ratings reflect the bank’s sound financial profile, a
leading market position, robust risk management systems,
and a quality management team. At the same time, PACRA
recognizes the financial strength and international
profile of the parent – Standard Chartered Bank (SCB) – in
the banking industry and continuing strong support to
SCBPL. The intrinsic value of group support is to be seen
in the context of the strong international rating of SCB.
The management has devised a comprehensive strategy and,
while capitalizing on the strength of the combined entity,
intends to further improve its market standing through
sustained growth in the targeted segments.
Going forward, the management aims to position the bank
for sustained growth in the fast changing market dynamics
with strong emphasis on proactive risk management. In this
regard, it has plans to further expand its outreach,
especially focusing on non-metropolitan cities. Although
the business strategy of the bank focuses on relatively
high-growth segments, this is well in line with the
business model of the Standard Chartered Group, which
primarily operates in these segments in more than 50
countries in Asia Pacific Region, South Asia, the Middle
East, and Africa. The management is expected to draw
substantial benefits from the cumulative expertise and
technical resources of the group in managing the
associated risks.
SCBPL has strong capitalization levels. Meanwhile, the
asset quality is robust, evidenced by low NPLs to gross
finances ratio. The risk management framework, service
standards, support systems and processes employed by the
bank are of high quality, common to other group entities.
The group exercises a high degree of supervision and
provides support through an established structured
mechanism. Given the increasing importance of the
operations in Pakistan in the overall business of the
Group, the degree of support available to the bank is
expected to be substantially high.
About the bank: SCBPL, a majority owned subsidiary (around
99%) of Standard Chartered Bank (SCB), is in the process
of being listed on all stock exchanges in Pakistan. SCB,
incorporated in the United Kingdom, has an international
rating of “A+” by Standard & Poor’s and Fitch. Subsequent
to merger of Union Bank Limited and Standard Chartered
Bank (Pakistan) Branches, with and into SCBPL, effective
December 30, 2006, it has emerged as the sixth largest
bank in Pakistan in terms of total assets. The bank has a
network of 115 branches across 22 cities. The BOD of SCBPL
mainly comprises personnel holding key positions in
Standard Chartered Group. The bank’s CEO has an extensive
local and international banking experience. He has been
with the group since 1991, and has held various senior
positions, including the CEO of Pakistan’s operations
since July 2003. Prior to the merger, SCB’s Pakistan
Operations has developed a strong foothold in consumer and
wholesale banking, and offers a wide range of products and
services. Union Bank’s niche in Consumer and SMEs segments
synchronize well with the overall business model of the
new entity. SCBPL has made appreciable progress towards
integration of the two entities in a quick time.
Principles & Values
At Standard Chartered our success is built on teamwork,
partnership and the diversity of our people. At the heart
of our values lie diversity and inclusion. They are a
fundamental part of our culture, and constitute a long-
term priority in our aim to become the world's best
international bank. Today we employ over 65,000 people,
representing more than 100 nationalities, and you'll find
more than 50 nationalities among our 500 most senior
leaders. We believe this diversity helps to fuel
creativity and innovation, supporting the development of
exciting new products and services for our customers
worldwide.
2.4 STANDARD CHARTERED,S VALUES
Our values are the heart and soul of our brand.
Courageous: Being
courageous is about doing
what is right. Often the
task may seem insurmountable
but with courage and
tenacity, the odds can be
overcome. A truly courageous
act both inspires and builds
character.
Responsive: How we respond to
our customers will influence their
belief in our commitment to them.
A proactive response is often
unexpected and more effective for
that. It clearly demonstrates our
willingness to go beyond the
unexpected.
International: As a member of
the global village we view the
world from the widest perspective.
We are all global citizens and
believe the world is full of new
opportunities and exciting
possibilities. We also deliver
world class products and services.
Creative: Creativity belongs to those of us who are excited by challenges and engage them
with fresh thinking and an open mind. Creative
thinkers are not limited by convention but
allow their minds to soar beyond predictable
solutions.
Trustworthy: Trust is the
foundation of every successful
relationship. We trust because we
believe in the sincerity of the
promise. Building trust can take
forever. Losing trust takes only
moments.
Hassan Arif UNIVERSITY OF LAHORE
32
SERVICE EXCELLENCE
The Bank's success has been built on its belief in its
ability to support customers and the communities in which it
serves. According to Badar Kazmi, Chief Executive Officer,
Standard Chartered Pakistan, "It is not enough to introduce
new products and services unless we listen to our customers
and understand what they want. If we are to be the 'right
partner', we must help our customers to realize their goals
and aspirations. We recognize that by being creative we can
make a real difference to the way we do business. We must be
flexible and innovative and challenge accepted conventions
and processes." It is exactly this belief which has propelled
Standard Chartered to the market leader slot in Pakistan's
financial sector. By continuously assessing customer needs,
the Bank has been able to modify existing and develop
innovative new products. For the individual customer,
Standard Chartered offers a most extensive portfolio of
financial products and services ranging from basic liability
products catering to different needs such as 'Flex' and 'High
Yield' accounts, to value-added loan products such as auto,
personal loans, to convenience based solutions such as credit
cards, 24 hour phone banking services and e-statements. For
its strong corporate base, Standard Chartered offers world
class Cash Management related services and technologically
superior products such as electronic banking, premium service
banking, national collection services and billpay, a product
which provides a convenient and flexible bill payment option
for all, including non-customers.
Hassan Arif UNIVERSITY OF LAHORE
33
COMMUNITY SERVICE
Standard Chartered recognizes its responsibilities to its
staff and to the communities in which it operates. The Bank
provides opportunities to its people so that they can fulfill
their true potential. As such, training and development
programmes as well as secondments and transfers to network
countries, all reflect a truly international and
multicultural organization that Standard Chartered is.
Leading the way in Asia, Africa and Middle East, operating in
over 50 of the world's developing economies, Standard
Chartered believes that with the appropriate policies and
practices in place it can be a legitimate influence for good.
In Pakistan, the Bank has an active community programme in
place that consists of providing support to charities in need
in the form of donations of both cash and kind. Over the
years, the Bank has been providing support to both local and
international organizations such as The Kidney Centre, SOS
Children’s' Villages of Pakistan, LRBT, Marie Adelaide
Leprosy Centre, Lady Dufferin Hospital, Shaukat Khanum
Memorial Trust and more.
"Our aim is to be the partner of choice, the right partner -
as a provider of world class financial products and services;
as an active member of the communities in which we operate;
as an institution taking courageous steps to ensure that all
our stakeholders can benefit from the true potential of this
great Bank." Badar Kazmi, Chief Executive Officer, Standard
Chartered Pakistan.
Hassan Arif UNIVERSITY OF LAHORE
34
Sponsorship
Committed to the long-term development of the communities in
which we operate, Standard Chartered sponsors a wide range of
inspirational people, projects and events.
THE INNOVATION CENTRE
The Innovation Centre develops commercially viable innovation
projects, opens up access to faculty and student intellectual
capital for the bank, and fosters close interactions between
SMU’s project teams and our business,” says Adam Spencer,
Standard Chartered’s senior manager responsible for System
Development, Shared Distribution and Innovation. “Through
working with iLab, students gain experience and exposure to a
corporate environment where they can learn how to develop and
manage intellectual property,” he adds. About 20 projects
have been completed to date with approximately five project
prototypes being reviewed for production deployment.
From the students’ perspective, the iLab provides a conducive
environment in which to sharpen up their commercial skills
and respond to real-life business scenarios and challenges.
One such challenge was to investigate the viability of voice
biometrics authentication technology at the request of
Standard Chartered’s Consumer Banking CEO Mike DeNoma.
According to Spencer, “We needed to find out how voice
biometrics technology could be used in a more innovative
fashion to seamlessly authenticate a customer when he or she
is talking to a relationship manager.”
Hassan Arif UNIVERSITY OF LAHORE
35
Technology and the Customer Experience
In the world of banking, security of transactions and
satisfactory customer experience are both key. “Our
requirement was to make the user experience as easy as
possible with an innovative feature that none of the
competition already has,” he explains.
In other words, the bank’s priority is to maximize
convenience for both clients and their relationship managers
without compromising on security. In many banks, clients who
provide instructions for certain types of transactions over
the phone may be required to fax a follow-up letter of
authorization to their relationship managers as an additional
precaution against fraud. Standard Chartered was seeking an
innovative new authorization system which would make this
process much simpler.
A five-member SMU team, comprising multinational students
from Singapore, Indonesia, Myanmar and India, responded to
the bank’s challenge. Calling themselves “Team Ascendance”,
the group worked for eight months to research technology
options, analyze the bank’s existing business processes,
build a software prototype and integrate it seamlessly into
the bank’s current system. According to team member Si Thu
Win, “Current authentication processes at some banks are not
very convenient especially if the customer is out of the
office, and transactions are sometimes cut short as well. Our
aim was to smooth out the process by enabling clients to be
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authenticated transparently, that is, without having to use
predefined passwords.”
In theory, the project sounded straightforward enough but, in
reality, things were not that simple. At the outset, the team
had to deal with some doubt and uncertainty, and progress was
slow. “We were dealing with an innovation after all” says Si
Thu Win. “From the business side, the bank knew it wanted to
use the technology, but didn’t know its capability in detail
or exactly how it would be integrated into their processes.
From the technology side, the software vendors did not
understand how the bank’s business works, and the vendors
didn’t know what we were doing,” he adds. Convincing vendors
across the globe to cooperate with a student team required
strong persuasion skills and assertiveness, and support from
the bank as well.
Building the prototype itself presented other difficulties.
“The different software we used to build the prototype all
spoke different languages, and we had to enable the
technologies to communicate with each other,” says team
member Michael Ricky Hosea. While building the prototype, the
team also took the initiative to provide feedback to Standard
Chartered Bank on the actual business processes involved. For
team member Damon Widjaja, yet another challenge was trying
to put themselves in the customers’ shoes. “For the bank, the
client is king. Even if the technology application is very
sophisticated, it’s of no value if the customer finds it too
difficult to use,” he explains.
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Standard Chartered Bank
Wholesale Bank
Finance & Admin
Support Services
Legal & Compliance
Human Resources
Global Markets
Client Relationships
C.R.
Service Delivery
External Affairs
Consumer Bank
Unsecured Loans
Secured Loans
Wealth Management
Shared Distribution
SMEAsset Management
IT&Service Delivery
Consumer Banking
C.R.
Info. Technology
Information Systems
Custodial Services
Six months into the project, the learning curve became
significantly steeper as the team worked to process large
amounts of information. Says Ng Woon Bock Keith, “At this
point, we started to work intensively, picked up speed and
went all the way up.” Help was available from the bank, team
supervisor graduate student Daniel Chong, and other iLab
staff who provided general direction and tips on how to
manage the bank’s expectations.
For instance, towards the final stages of the eight-month
long project, the student team unexpectedly encountered some
serious obstacles. In addition to technical problems, they
found that the frontline business users at Standard Chartered
Bank were not convinced the technology would benefit the
business process. After much discussion amongst the various
groups, a radical design change was made to the system so as
to add more value to the bank.
In the end, the prototype was well received. According to Ng,
“the prototype helped the bank verify if that was what they
really wanted.” Adds Ericsson Chan, group head of Systems
Development at the bank: “The project embodied what
innovation is all about – the ability to bring a leading edge
technology into the business world.” Looking forward, Spencer
says that the iLab is putting additional focus this year on
deploying successful projects, such as voice biometrics, in
Standard Chartered Bank. For example, the bank’s lawyers are
looking into intellectual property issues relating to the new
business process while the priority banking department is
negotiating contracts with various vendors to implement the
software system.
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Standard Chartered Bank
Wholesale Bank
Finance & Admin
Support Services
Legal & Compliance
Human Resources
Global Markets
Client Relationships
C.R.
Service Delivery
External Affairs
Consumer Bank
Unsecured Loans
Secured Loans
Wealth Management
Shared Distribution
SMEAsset Management
IT&Service Delivery
Consumer Banking
C.R.
Info. Technology
Information Systems
Custodial Services
2.5 STANDARD CHARTERED’S BUSINESS
WHOLESALE BANK…
The Whole sale bank comprises of two areas:
Client Relationship
Global Markets
Client Relationship
Client Relationships provides:
Trade finance
Cash management
Lending services
Global Markets
Global Markets provides:
Foreign exchange,
Debt capital markets services
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Financial risk management
Interest rate management products
CONSUMER BANKING…
Shared Distribution
Offers a wide range of premium banking products and
services through the network of 115 branches in 22 cities
across the country. It has a global network of 1200 branches
in 56 countries
Wealth Management
Offers a complete and Comprehensive range of products
to fulfill customers investment & financial needs
Unsecured Loan
Our Unsecured Loans offers Credit Cards & Personal Loans
/ Ready Cash
Secured Loan
Our Secured Loan division offers Mortgage and Auto Loans
SME
SME offers Business power and Business Installments
Loans
Consumer Bank – Products
LIABILITY PRODUCTSHassan Arif
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CASA (Current Accounts Saving Accounts)
Tijarat
Cluster Deposit
Supersave
Privilege
High yield savings
Term Deposits
Over Drafts
ASSET PRODUCTS
Credit Card
o Gold Card
o Classic Card
o PIA-Co brand
o Easy Credit
o AMEX
Auto Finance
Mortgage
o Home Credit
o Home Purchase
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Private Banks
29%
Foreign Banks
19%
Big 4 Local52%
NBP, UBL,
MCB, HBL
Personal Loan / Ready Cash
SME
o BIL (Business Installment Loan)
o BP (Business Power)
SHARE OF REVENUE (SCB VS FOREIGN BANKS):
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CHAPTER - 5
“IDENTIFICATION OF ISSUES”
5.1 STRATEGIC ANALYSIS
Strategic Intent
“Best Managed Sales Force in Pakistan”
FIGURE A-1
If we talk about the strategies followed by the Human
Resource department of Standard Chartered Bank we will find
out that their strategies are the most disciplined one in the
whole Banking Industry existing in Pakistan. From top level
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Changing the profile of Employees
Expanding the sales force
Compensation structures to drive right behavior
Using MIS’s to gain an insight
Providing proper career paths to Employee
High focus on Employee training
Formation of the DSS
For expansion, Sales Centers
Club Level Program, Team Building Sessions, Top Performer Events, Sales Conference, etc.
Employee Remuneration Guidelines
Formation of Sales BIU
Implementation of Global DSR Curriculum
ORMA framework, compliance to internal and external policies, audit calendar
Maintaining and strengthening our Sales Governance
management to grass root level, a properly planned human
resource management system prevails in standard chartered
bank.
5.1.1 Formation of DSS: The first step of their strategy
as shown in Figure A-1 is the formation of DSS, its stands
for Direct Sales Subsidiary, Standard Chartered has made its
own Direct Sales Subsidiary in order to change the profile of
their employees according to this every employee in the
standard chartered bank will be the permanent employee and
will be entitled to all those benefits and compensations that
a permanent employee is getting which in result not only
boost the morale of their employees but also motivates them
to work hard for their company which ultimately results in
higher productivity for the bank resulting handsome revenue
and profit for the bank.
5.1.2 Sales Expansion: Second step of their strategy
involves the expansion of their sales force, as the bank
stands on the strong roots of its sales force, standard
chartered has increased its sales force not only in number of
employees but also in increased productivity which gives
standard chartered sales force a name known as “Smart Sales”
5.1.3 Career Developments: Third step includes the
career development of their employees. Standard Chartered
Bank provides its employees a proper career path so that they
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become the gurus of their field. This process of career
development includes club level program, team building
sessions, top performer events, sales conference etc.
5.1.4 Compensation Structures: Standard Chartered has a
proper compensation structures to derive right behavior of
their employees. Not every employee in any organization work
for the position. Compensation plays a primary role in
employee remuneration guidelines and retention. It not only
makes an employee feel secure and good for the company but
also motivates him that he should give his company at least
equally which he is getting.
5.1.5 Management Information System: Management
Information System (MIS) has been introduced in the bank
which gives their top level management an insight of the
company and business which not only help them in their
decision making but also in making new strategic policies for
the bank. Managements Information System includes all the
details regarding the sales, profits, cost, expenditures,
productivity, targets etc.
5.1.6 Employee Training: Standard Chartered Bank pays
high focus on their employee training and for that they have
introduced their own Global Employee Training Curriculum.
This Curriculum includes introduction of the bank, compliance
and legal policies of the bank, sales strategy of the bank,
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organizational structure and role of each business unit and
define the key drivers of business performance. Every
employee must past this training test in order to get job in
the bank. These trainings are revised after regular intervals
so that their employees should have proper grip on the banks
strategy. This training results in high productivity of the
employees, reduction in customer complaints, increase in
retention of employees and implementation of global employee
curriculum. After every three months a training monitoring
MIS is reviewed which provides:
A training health check plan which helps in
tracking gaps and requirements for every employee.
Ensures an exception reporting and tracks all
product and compliance refreshers which are due for
each employee.
Accurate and timely reporting of new employee
training activity every month.
5.1.7 Maintaining and strengthening Sales
Governance: Standard Chartered has its own sales governance
policies which it has maintained for years and is
strengthening it day by day through employee sales governance
training. This includes ORMA frame work, compliance to
internal and external policies and audit. The bank doesn’t
not in any way compromise on its compliance and sales
governance. Sales governance includes the strategy for mis-
selling, mis-committment and mis-behavior of the employee
with customer.
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5.2 BASIC EMPLOYMENT PRACTICES
5.2.1 JOINING THE COMPANY:
DOCUMENTATION:
Upon joining the company, the employee will be required to
forward the following documents the Human Resources (HR)
department for completion of their record:
1. Updated resume/ C.V.
2. Resignation acceptance/ clearance letter and
salary slip from last employer (if applicable)
3. Experience certificates of all the previous
employments (if applicable).
4. Attested copies of all the educational
certificates/ transcripts
5. 5 passport size photographs
6. Photocopy of NTN certificate (if applicable)
7. attested copies of CNIC for :
Self
Spouse (if applicable)
Children (B-Form/ Birth certificate if below
18)
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All forms must also be filled and sent along with the joining
report. Any change at any time in personal information must
be intimated to HR department immediately so that the
employee’s record can be updated.
The HR department reserves the right to inspect the original
copies of all testimonial and records, and can ask the
employee to produce such at any point in time.
5.2.2 EMPLOYEE CODE GENERATION:
Every employee will be allotted a unique staff number. This
number is generated once the completed joining kit is
received by the payroll coordinator. An employee can see
their employee code on their first salary slip and on their
identity card.
5.2.3 ISSUANCE OF COMPANY CARD:
The company will issue a company identity card to the
employee, to be worn by the employee while on company
premises. If the card is lost, the matter should be reported
to HR department immediately and a duplicate card will be
issued within 5-7 working days.
5.2.4 BUSINESS CARDS:
The business card form will available as a part of the
joining kit. The form needs to be filled out by the employee
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and sent to HR for processing. It is compulsory that the
supervising manager and HR officer signs the form. It would
take 7 working days for the business card to be issued.
5.2.5 BANK ACCOUNT:
It is mandatory for all new joiners to open their bank
accounts with Standard Chartered Bank. Once HR receives the
filled account opening form (available in joining kit), they
will process the documents.
5.2.6 OTHER FORMALITIES:
There are other forms available in joining kit (Funds
Membership form, Nomination form, etc.) which the new joiner
is required to complete and send to HR.
5.2.7 PROBATIONARY PERIOD:
As a new employee, you will undergo a probationary period of
six months, commencing from the date of appointment /
joining. Your superior will assess your performance at the
end of this period. You will be advised in writing on one of
the following:
1. Satisfactory completion of the probation and
confirmation of employment with entitlement to full
benefits as applicable.
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2. Extension of probationary period if assessment
warrants upon recommendation from your supervisor.
3. Termination of employment.
5.2.8 CONFIRMATION SERVICES:
On successful completion of the probationary period and upon
confirmation of services, the employee will then be entitled
to the specified benefits depending on the management cadre.
Benefits include:
1. Provident Fund
2. Gratuity Fund
3. Hospitalization Insurance
4. Leave Entitlements
5. Group Life Insurance
6. ShareSave.
5.2.9 OUTSIDE EMPLOYMENT:
When you accept employment with the company, you can not take
up outside employment without the consent of the company.
5.2.10 KEEPING YOUR PERSONAL RECORDS UP-TO-DATE:
It is important to keep your personal records accurate and
up-to-date because this information will be used for the
administration of benefits and emergency notifications. You
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will be required to immediately notify the HR department of
any change in the following:
1. Legal name
2. Marital Status
3. Address and telephone number
4. Additional education qualification and other
attainments
5. New family members
6. Change of bank account number
7. Any other particulars
All record related to your employment will be treated in
confidence.
5.2.11 EMPLOYEE REFERRAL SCHEME – GO RECRUIT A BUDDY
GRAB is a buddy scheme. As per this scheme if you refer a
candidate and if the candidate is selected you become
eligible for a cash reward.
All you need to do is:
Recall a friend, neighbor, friend’s friend and
personal or business acquaintance.
Confirm the interest of the person whom you are
planning to refer.
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Send the referred resume to supervising manager and
area HR manager on their respective mails.
First sender gets the advantage if the same resume
has been referred by more than one person.
All referred candidates go through the regular
process of selection.
5.2.12 WORK SCHEDULE
WORKING HOURS:
Officer and managers at all Pakistan offices are expected to
work a total of 45 working hours a week. The working hours
are as below:
Office hours
Monday to Friday 9:00 am to 6:00 pm
Saturday 9:00 am to 2 pm
Lunch hours
Monday to Thursday 1:00 pm to 3:00 pm
Friday 1:00 pm to 2:30 pm
In some instances, staff may be asked to change their timings
in order to meet the operational needs of their department.
Staff may also be required to work outside their normal hours
depending upon workloads and the demands of their job role.
Employees in management of professional/ specialist roles are
expected to work the hours necessary to perform their
responsibilities without additional payment.
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5.2.12 ATTENDANCE AND PUNCTUALITY
Good attendance and punctuality is essential to efficient
running of our business. All employees are expected to
demonstrate a consistently good record in this area.
5.2.13 ABSENCES (OTHER THAN SICKNESS)
For any absence during working hours other than sickness or
unexpected causes, employees obtain their supervisor’s/
manager prior agreement. If any staff member is unable to
come to work for any unexpected reason – such as a domestic
emergency – they must inform their manager or department head
before or close to the normal starting time about the reason
for their absence. Normally, an employee will be required to
take their leave entitlement to cover this absence.
If an employee fails to report to work for more than two
consecutive workdays without informing their manager or
department head, their absences will be considered as absence
without official leave and will be cause for disciplinary
action, which may involved in dismissal.
5.2.14 PUBLIC HOLIDAYS:
Bank recognizes all public holidays as declared by the State
Bank of Pakistan as official holidays. All official holidays
will be specifically announced.
LEAVEHassan Arif
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All permanent employees of bank, after confirmations, will be
eligible to apply for the following leave in a year:
Team Leaders 30 Leaves (calendar days)
Below Team Leaders 10 sick/ casual leaves (calendar days)
14 annual leaves (calendar days)
5.3 EMPLOYEE CAREER DEVELOPMENT
5.3.1 CAREER DEVELOPMENT:
The success of both the individual and the company depends
largely on effective placement, adequate training and the
fullest development of the individual’s abilities.
It is intended that everyone shall have the opportunity to
benefit from sound and adequate training both for the
employee’s present work, and for the future responsibilities
that he may undertake. On the job training is provided in all
cases. In Standard Chartered Bank, vocational, technical and
management training are also provided in accordance with the
need of the individual and the company.
5.3.2 IN HOUSE COURSES
Training needs are identified jointly by the department heads
and the training department. From the training needs
identified, the training department will develop a calendar
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of in house and external courses to be conducted for the
year.
The training department designs, organizes and conducts in-
house courses to support the company’s business plans/
objectives and the needs of the various departments. The
course schedules are communicated to the department heads.
5.3.3 EXTERNAL COURSES:
Where training needs are identified and not met by in-house
courses, employees will be sent for external courses
organized by external institutions. These courses are
selected based on the relevance of the subject matter to the
employee and his/ her work.
5.3.4 INDUCTION PROGRAM:
The training unit will conduct and induction program for new
employees. The aim of the program is to enable employees to
adjust and settle into their new workplace quickly. This
program will familiarize them with the company’s history;
corporate values, organization structure and consumer banking
products being sold.
5.3.5 TRAINING PROCESS:
After an employee has been hired, he or she has to undergo 5
day induction training. After successful completion of the
assessment, they have to go through a ‘buddy system’. After
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the employee is hired, the TL/RSM/NSM will send a list of all
the new recruits to sales training, who will then arrange for
induction training to be carried. After the training has been
carried out, a MIS of the successful employees will be sent
by sales training to sales BIU who will then issue the
employee their respective codes.
Based on the inductions and refresher trainings carried out,
a monthly training Monitoring MIS will be generated for each
product highlighting in detail all the trainings that each
employee has undergone and an exception report for missed
trainings.
5.3.6PROMOTION OPPORTUNITIES:
The company aims to provide numerous opportunities of
promotion and employees will be assigned to handle more
responsibilities on the basis of their record of sustained
performance and demonstrated ability. Due to consideration
will be given to existing employees for any promotion
opportunities arising within the company.
5.4 COMPENSATION AND BENEFITS
5.4.1 PROVIDENT FUND
All employees after serving the probation period, will be
eligible for provident fund (PF) under the provident fund
rules, both the employee and the company will make monthly
contribution @ 10% of the basic salary to PF. The
contributions are based on current legislation rates and Hassan Arif
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shall be deducted from the salary as stated in the provident
Fund rules.
5.4.2 GRATUITY
All employees who resign/ retire after completion of 5 years
or more of continuous service (after confirmation) with price
solution will be eligible for gratuity as per the rules of
the gratuity act.
5.4.3 INSURANCE BENEFITS
The company offers various insurance policies to provide the
greater security for all employees. Hence it is important
that you update your personal records with Human resource as
and when required.
All employees are expected to report immediately to the
superior of any injury resulting from an accident. Employees
shall also report and dangerous occurrences regardless of any
injuries involved.
5.4.4 MEDICAL INSURANCE COVERAGE
As per your grade, you shall be covered by Group
Hospitalization Insurance policy with the prescribed limit
mentioned in the medical insurance policy that will be
provided to you.
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Coverage is only applicable where hospitalization is
recommended. In case of emergency, if you are going to a
hospital not in the panel list provided, then you are
required to submit all bills and receipts to the HR
department who will then forward it to the insurance company.
The amount will be reimbursed in accordance with the terms
and conditions stated in the hospitalization insurance plan.
5.5 PERFORMANCE MANAGEMENT
5.5.1 ANNUAL SALARY REVIEW
All employees are expected to deliver consistently on his/her
key performance indicators from month to month. The essence
of the performance management policy is growth linked to
productivity. Salary reviews will be conducted every year to
ensure that wages or salaries are equitable and competitive
and to reward for performance. Wage increase recommendations
would be based on individual and company performances. The
increment date for all employees shall be April 1st.
5.5.2 PERFORMANCE APPRAISAL
Based on the nature of the job performed, assessment
criteria will vary for sales and support staff at various
levels.
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Front line Sales Staff – For this category of sales
staff, assessment will take place utilizing ESAU
methodology. Supervising managers will be responsible
for assessing their sales staff against the ESAU
criteria for different products.
Senior Sales Staff – Performance for this category is
assessed mainly through Job Objectives (JOs). Evaluation
is carried out on a monthly, quarterly, half yearly and
yearly basis. Monthly and quarterly evaluation will be
done through sales battleground and half yearly and
yearly though performance of the NSMs is tracked and
rated on key variables such as sales numbers,
productivity, cost etc. additionally, evaluation for
Team Leaders (TL) and Regional Sales Managers (RSM) is
also carried out utilizing the ESAU methodology in
certain products.
Support Staff – Performance is measured and assessed
through the documented JOs for each support staff.
Assessment will be carried out through half yearly and
yearly performance appraisal cycle.
5.5.3 SALARY REVIEW
Annually – For all roles, salary review will be carried
out on an annual basis. The increments take place in
April and will be applicable to only those employees who
have been hired in or before September, that is, the
employee needs to be with the organization for at least
six months before he or she is eligible for a salary
review.
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5.6 SEPARATION FROM COMPANY
Separation could be done to voluntary or involuntary reasons.
A structured separation process ensures that exiting employee
leaves the organization as a good ambassador.
Supervising managers are required to ensure the following
formalities are completed at the time of exit:
1. Resignation Letter.
2. Exit Checklist
3. Handing over of ID card, Health Insurance card and
visiting card.
4. Any other documents or material in custody.
Exit check list and resignation letter to be handed over to
HR manager for processing settlements.
HR manager and supervising manager to conduct exit
interviews. Given the high attrition rate of the sales force
it may not be possible to have an exit interview with each
and every resignee.
5.6.1 RETIREMENT
An employee, who attains the age of 58 during his services,
retires from the organization.
5.7 HEALTH, SAFETY AND SECURITY
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5.7.1 NO SMOKING POLICY
In the interest of health and safety, Standard Chartered Bank
has a no – smoking policy in all its premises.
5.7.2 SECURITY ARRANGEMENTS
All employees are issued with an identity card and are
required to wear it while at work for security reasons,
employees are asked:
1. To show their identity card on entering any Standard
Chartered Bank premises without prompting.
2. Not to disclose digital access codes to unauthorized
people.
3. To meet visitors at reception and escort them to the
meeting venue and similarly escort them back to
reception following the meeting.
4. To report any suspicious vehicles or packages outside
Standard Chartered Bank premises.
5.7.3 CLEAR DESK POLICY
In order to safeguard the security of confidential and
sensitive data, bank operates a ‘clear desk’ policy. This
requires that:
1. Documents/ external media should not be left lying
around or unattended.
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2. Employees clear their desks of all documents/
external media at the end of each day.
3. Random checks of offices are carried out periodically
to identify potential breaches of security.
5.7.4 COMPUTER SECURITY
Computer passwords are one of the simplest but most effective
ways of securing computer based information. Passwords should
be changed at least monthly, and must not be disclosed to
others or stored with a workstation.
5.7.5 EVACUATION IN THE EVENT OF AN EMERGENCY
Employees will be advised of the evacuation plans for their
office premises by their manager (or nominated
representative) and should ensure they are familiar with the
same.
5.8 “SWOT ANALYSIS”
The Strength, Weakness, Opportunities and Threat Analysis of
the Standard chartered include all the strengths and weakness
they have in their Human resource department and how they
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respond to the opportunities and how they reshape or mould
themselves to the threats coming their way.
5.8.1 STRENGHT ANALYSIS:
If we analyze Standard Chartered Bank’s Human Resource
Department in context of strength they have a powerful HR
system operating which gives them less turnover and greater
employee retention. As compared to other banks operating in
the market, they all have hired recruiting agencies in order
to hire most of their sales people, which creates a lots of
complication for employee and for the organization itself and
also decreases the motivation factor in the employees as they
feel very unsecured about their jobs while they are serving
for the banks but actually not the employee of the bank.
Whereas in Standard Chartered Bank they have their own
subsidiary known as price solutions Pvt Ltd which comes under
the heading of Standard Chartered Group. All those sales
people, who in other banks are used to hired by third
parties, are hired through price solutions which gives them
job security as well as increase motivation in the employees
which ultimately result in higher productivity and employee
retention. Beside this it gives all the employees equal
compensation and benefits which the other employee (On Bank
Contract) are getting like Insurance, Gratuity, Provident
Fund, Hospitalization Cover etc.
5.8.2 WEAKNESS ANALYSIS:
With a so organized Human Resource Management System
implemented in Standard Chartered Bank it is very difficult
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to find weaknesses. The weak point which I found in the HR
system is that they ignore the fact that a good resource
should be utilized efficiently. No doubt they have to most
precious and credible human resource but unfortunately they
are wasting them by not utilizing them or by not getting
proper out put from them.
Another weak point which I found is that they focus more on
references in hiring an employee and does not go for the
competent persons in market.
One of the weak points is that they force their decisions on
their employee and does not care that whether their employee
likes it or not.
5.8.3 OPPORTUNITY ANALYSIS:
Opportunity analysis of Standard Chartered Human Resource
department discovers that they utilize the opportunities
coming their way very efficiently. They have a complete look
on the market and their eyes are searching for the
opportunities for the good resource. One of recent
opportunity utilization was that they took the Head of
National sales of Telenor by offering him 1 Million Rupees
per month to work for Standard Chartered Bank.
They are getting benefits by the new attracting offers by the
telecommunication companies and equip their staff with these
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offers which also result in higher motivation of the
employees.
5.8.4 THREAT ANALYSIS:
Standard Chartered is facing a lot of problem regarding their
employee retention. They have made their compliance and audit
structures so complicated that it is very difficult for their
employees to work according to that policy. Even Full Time
Employees (FTE’s) can be dismissed without a single warning
on the obstruction of these compliance and audit issues.
Where they are providing extra job security to their
employees, their employees feel equally insecure at the same
time. Recently they have released about 300 employees from
their North Region, the reason being that they don’t want to
work with a huge number of employees. This is a big threat
for standard chartered regarding human resource which they
have to analyze efficiently.
Another threat is that after taking over Union Bank they find
very difficult to manage the staff of both of these huge
organizations. Until yet they failed to manage these staff
and there frustration can easily be seen by their employee
turnover
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CHAPTER - 6
“POSSIBLE OPTIONS/ ALTERNATIVES”
After a detailed study and analysis of the Human Resource
Managements System of Standard Chartered Bank Pakistan Ltd I
find several issues. Their employee turnover ratio is
ascending day by day, the reason being that their employees
feel very insecure when it comes to the audit and compliance
policy which is so strict and complex that it seems
impossible remain inside the boundaries of the audit and
compliance policy.
Another issue which I noticed is that they have very low
number of staff under the category of FTE (Full Time
Employee). There are number of employees who have been
working from years with satisfactory performance but they
have not yet been given the permanent slots, by this their
employee motivation level can be descend.
Pressure working environment is also a problem issue in
standard Chartered Bank as they have set extra high targets
to achieve for their employees and the installed Cameras not
in the Branches and back offices but also in the consumer
section of the bank to monitor their employees beside the
security purpose.
The current economy situation of the country also impacts the
employees of the Bank as the bank has to shut down its
operations in different segments according to the economic
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condition of the country which ultimately results in the
decreasing level of job security in the employees
CHAPTER - 7
“RECOMMENDATIONS & ACTION PLAN”
After a precise study on the Human Resource Management System
I found that Standard Chartered Bank has a very organized,
systematic and effective human resource management system
implemented but at the same time they also have some
drawbacks in their HR management system. The Main drawbacks
are:
1- Complex HR structures
2- Decreases Level of Employee Retention
3- Lack of Performance Management
4- Lack of Performance Appraisal
5- Extra pressure environment
6- Lack of Motivation
7.1 RECOMMENDATIONS REGARDING HR STRUCTURE
The problem they are facing regarding their human resource is
that they are facing difficulties to manage their human
resource after the acquisition of Union Bank. As both of the
organizations were the giants of the consumer industry and
both of them have also complex HR structure implemented and
to merge these two giant structures into one is not at all
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that easy. As they fire most of the employees from Ex Union
Bank due to lack of management system. Their turnover ratio
is also high and rests of the employees are also feeling
insecure regarding their job which result in higher rate of
lack of job security and de-motivated employees. Being a
student of Human Resource I recommend that they should have
two separate Human resource management systems installed in
order to manage human resource of the two organization, one
for Ex-Union Bank and the other one for Ex-Standard Chartered
Bank, with this their burden can be divided and they can
efficiently get hold of the things which are going wrong at
the moment and after the things become streamlined they can
easily merge both of the HR.
7.2 RECOMMENDATIONS REGARDING EMPLOYEE RETENTION
As far as the employee retention is concerned; they are
providing all those benefits to their employees whom no other
bank in the market is offering and their salary system is
also unique. All they have to work on is the employee
turnover and the things from which their employees is feeling
insecure regarding their job. The main reason of turnover is
the job insecurity as they have fired a lot of employees in
order to manage huge human resource. I recommend that they
should choose HR manager for Ex-union bank from the Ex-union
employee and for Ex-Standard Chartered Bank from the
employees of that bank respectively this will build the trust
of employees on their respective HR which automatically
results in larger employee retention, less turnover and
motivated employees.
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7.3 RECOMMENDATIONS REGARDING PERFORMANCE MANAGEMENT
Previously Standard chartered bank has implemented an
efficient performance management system. They have installed
some parameters and standards regarding employee performance.
If the employee is continuously performing poorly he used to
issue 3 warning letters from HR after that he is fired. That
system is known as ESAU system, which stands for Excellent,
satisfactory, average and unsatisfactory. After the
acquisition that system was forced on Union Bank’s employees
who were not familiar with that system which also causes
major problems. In this case I recommend that they should
give extra training to Union employees to get familiar with
the standard chartered’s system and give them some leverages
so that they can get adjusted in the changed circumstances.
7.4 RECOMMENDATIONS REGARDING THE PERFORMANCE APPRAISAL
Although they have an effective performance appraisal system
in their HR System but unfortunately it is not implemented as
it should be. According to that system the performance of the
employees must be appraised twice in the year and based on
their performances promotions offered to them, but in actual
nothing happens. I recommend that there is no need to change
the Performance Appraisal system, all they have to do is to
bring their existing system functional and this will result
in increased motivation and employee retention.
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7.5 RECOMMENDATION REGARDING THEIR WORKING ENVIRONMENT
As Standard Chartered Bank is operating with a pressure
working environment because of high to achieve targets and
observation cameras for the employees, that is why the
morale, motivation and employee retention is decreasing.
Their employees feel stressed and cannot concentrate to their
work. It is recommended that they should review their
employee targets and set some realistic and achievable
targets so that maximum number of employees achieves their
targets and feel motivated. As far as the observation cameras
are concerned they should use them only for security purpose
and not for observing their employees. This will result in
less stressed employees and the employees can concentrate on
their work and targets more effectively.
REFERENCES:
Following references were utilized during the making of this
project:
1. www.standardchartered.com.pk
2. www.wikipedia.com
3. Usman Ghani, HR Manager, Standard Chartered
Bank.
4. Employee induction Book of standard Chartered
Bank
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