Professional Documents
Culture Documents
: VIKASH GOVIND
ENROLMENT NO
: SAA04M143ELBIHA3
GEMS B SCHOOL
PONDICHERRY
CERTIFICATE
This is to certify that project entitled STUDY ON HUMAN
RESOURCE MANAGEMENT STRATEGIES IN STANDARD CHARTED
BANK is submitted by VIKASH GOVIND(ENROLLMENT
NO.SAAO4M143ELBIHA3)GEMS B SCHOOL, PONDICHERRY in
partial fulfillment of the first trimester Requirement in Human Resource
Management for the award of the degree Master of Business Administration and
is certified to be an original and bonafide work.
PLACE :
Guide Signature
DATE
ACKNOWLEDGEMENT
I am indebted to all powerful almighty God for all the blessings he showered
on me and for being with me throughout the study.
I place on record my sincere gratitude and appreciation to my project
guide for his kind co-operation and guidance which enable me to complete this
project.
I also express with great pleasure and sincerity to record my thanks, gratitude
and honour to Mr. L. Alphonse Liguori-Managing Director, Mr. M. TamijuddinDirector academics, Ms. Marudam-Student Relations Executive for their valuable
advice and for timely help concerning various aspects of project.
I take this opportunity to dedicate my project to our loving faculty Dr.
NIRMALKUMAR.R.T was a constant source of motivation and I express my deep
gratitude for his never ending support and encouragement during this project.
Finally I thank each and every one who helped me to complete this project.
DATE :
VIKASH GOVIND
EXECUTIVE SUMMARY
This study aims at studying in detail Human Resource
Management Strategies in Standard Chartered Bank . It
also highlights the various aspects of design and
approaches of the human resource strategies.
Accordingly the research design was prepared
and adequate literature survey was made. Secondary data
was collected through the internet and other sources. After
the collection of secondary data analysis was made to
analysis the data. Accordingly suggestions were made to
refine more the strategies.
CHAPTERS
TITLE
ACKNOWLEDGEMENTS
3
EXECUTIVE SUMMARY
4
CHAPTER 1
INTRODUCTION TO
HUMAN RESOURCE STRATEGY
5
NEED OF STUDY
16
OBJECTIVES OF STUDY
17
PERIOD OF STUDY
18
RESEARCH METHODOLOGY
19
LIMITATION
20
PAGE
CHAPTER 2
21
CORPORATE PROFILE
CHAPTER 3
26
CHAPTER 4
CHAPTER 5
45
ANALYSIS
CHAPTER 6
54
30
CONCLUSION
BIBLOGRAPHY
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CHAPTER 1
1-1 INTRODUCTION TO HUMAN RESOURCE STRATEGY
1-2 NEED OF THE STUDY
Organizational management
Personnel administration
Manpower management
Industrial management
But these traditional expressions are becoming less common for the
theoretical discipline. Sometimes even employee and industrial relations
are confusingly listed as synonyms, although these normally refer to the
relationship between management and workers and the behavior of
workers in companies.
The theoretical discipline is based primarily on the assumption that
employees are individuals with varying goals and needs, and as such
should not be thought of as basic business resources, such as trucks and
filing cabinets. The field takes a positive view of workers, assuming that
virtually all wish to contribute to the enterprise productively, and that the
main obstacles to their endeavors are lack of knowledge, insufficient
training, and failures of process.
Human Resource Management(HRM) is seen by practitioners in the field
as a more innovative view of workplace management than the traditional
approach. Its techniques force the managers of an enterprise to express
their goals with specificity so that they can be understood and undertaken
by the workforce, and to provide the resources needed for them to
successfully accomplish their assignments. As such, HRM techniques,
when properly practiced, are expressive of the goals and operating
practices of the enterprise overall. HRM is also seen by many to have a
key role in risk reduction within organisations.
Synonyms such as personnel management are often used in a more
restricted sense to describe activities that are necessary in the recruiting
of a workforce, providing its members with payroll and benefits, and
administrating their work-life needs. So if we move to actual definitions,
Torrington and Hall (1987) define personnel management as being:
a series of activities which: first enable working people and their
employing organisations to agree about the objectives and nature of their
working relationship and, secondly, ensures that the agreement is
fulfilled" .
While Miller (1987) suggests that HRM relates to:
However, many HR functions these days struggle to get beyond the roles
of administration and employee champion, and are seen as reactive rather
than strategically proactive partners for the top management. In addition,
HR organisations also have difficulty in proving how their activities and
processes add value to the company. Only in recent years have HR
scholars and professionals focused on developing models that can
measure the value added by HR.
Business practice
Human resources management involves several processes. Together they
are supposed to achieve the above mentioned goal. These processes can
be performed in an HR department, but some tasks can also be
outsourced or performed by line-managers or other departments. When
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Workforce planning
Recruitment (sometimes separated into attraction and selection)
Induction, Orientation and Onboarding
Skills management
Training and development
Personnel administration
Compensation in wage or salary
Time management
Travel management (sometimes assigned to accounting rather than
HRM)
Payroll (sometimes assigned to accounting rather than HRM)
Employee benefits administration
Personnel cost planning
Performance appraisal
Labor relations
HRM strategy
An HRM strategy pertains to the means as to how to implement the
specific functions of HRM. An organization's HR function may possess
recruitment and selection policies, disciplinary procedures,
reward/recognition policies, an HR plan, or learning and development
policies, however all of these functional areas of HRM need to be aligned
and correlated, in order to correspond with the overall business strategy.
An HRM strategy thus is an overall plan, concerning the implementation
of specific HRM functional areas.
An HRM strategy typically consists of the following factors:
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Highlight the key driving forces of your business. What are they?
e.g. technology, distribution, competition, the markets.
What are the implications of the driving forces for the people side
of your business?
What is the fundamental people contribution to bottom line
business performance?
From this analysis you then need to review the capability of your
personnel department. Complete a SWOT analysis of the department consider in detail the department's current areas of operation, the service
levels and competences of your personnel staff.
13
Identify the critical people issues namely those people issues that
you must address. Those which have a key impact on the delivery
of your business strategy.
Prioritize the critical people issues. What will happen if you fail to
address them?
Remember you are trying to identify where you should be focusing your
efforts and resources.
Step 6: Develop consequences and solutions
For each critical issue highlight the options for managerial action
generate, elaborate and create - don't go for the obvious. This is an
important step as frequently people jump for the known rather than
challenge existing assumptions about the way things have been done in
the past. Think about the consequences of taking various courses of
action.
Consider the mix of HR systems needed to address the issues. Do you
need to improve communications, training or pay?
What are the implications for the business and the personnel function?
Once you have worked through the process it should then be possible to
translate the action plan into broad objectives. These will need to be
broken down into the specialist HR Systems areas of:
organization development
performance appraisal
employee reward
employee selection and recruitment
manpower planning
communication
Develop your action plan around the critical issues. Set targets and dates
for the accomplishment of the key objectives.
Step 7: Implementation and evaluation of the action plans
The ultimate purpose of developing a human resource strategy is to
ensure that the objectives set are mutually supportive so that the reward
and payment systems are integrated with employee training and career
development plans.
There is very little value or benefit in training people only to then
frustrate them through a failure to provide ample career and development
opportunities.
Functions
The Human Resources Management (HRM) function includes a variety
of activities, and key among them is deciding what staffing needs you
have 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 your
personnel and management practices conform to various regulations.
Activities also include managing your approach to employee benefits and
compensation, employee records and personnel policies. Usually small
businesses (for-profit or nonprofit) have to carry out these activities
themselves because they can't yet afford part- or full-time help. However,
they should always ensure that employees haveand are aware of
personnel policies which conform to current regulations. These policies
are often in the form of employee manuals, which all employees have.
Note that some people distinguish a difference between HRM (a major
management activity) and HRD (Human Resource Development, a
profession). Those people might include HRM in HRD, explaining that
HRD includes the broader range of activities to develop personnel inside
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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.
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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.
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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.
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CHAPTER 2
CORPORATE PROFILE OF
STANDARD CHARTED BANK
22
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 worlds preeminent 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 Kongs 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 detat. 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 1950s 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
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CHAPTER 3
DESIGN AND APPROACHES
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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.
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In lieu of Islamic banking the Bank aims to aggressively promote feeincome business to raise non-interest revenue sources.
Operation Plans:
The Operational Plans of the Bank are Deposits, Loans, Domestic
Banking, Trust Operation and Treasury Operations
CHAPTER 4
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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
External Schools
MBA
Certificate in Management
Internal
Executive Development
Diploma in Management
Foundation Course
Induction Course
Orientation:
Every staff member joining Standard Chartered Bank has to attend a 2day 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.
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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 staffs 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
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
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continuous
discussion;
encourage
regular
review
of
40
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:
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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 shortterm 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:
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comparison
among
individuals
performance.
Hence
CHAPTER 5
ANALYSIS
45
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 customers
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:
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Strategic Congruence:
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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 Banks 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
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CHAPTER 6
CONCLUSION
54
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.
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BIBLOGRAPHY
www.google.com
www.wikipedia.com
www.scb.co.in
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