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 detailed performance to its banks operating about in its Pakistan. The strategic practices, health of the analysis of standard chartered human resource system gives us information management, employment and the compensation after benefits,

safety and security which the standard chartered is offering employees. Bank Ltd Especially Human acquisition of Union the Resource department 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
1.1 1.2 1.3 1.4 Problem Statement Objectives of the Study Scope & Limitations Research Methodology 4 5 8 9 14 15 26 34 38 38 42 49 51 53 54 55 57 4 4 4 4

2. LITERATURE REVIEW 3. INTDUSTRY OVERVIEW/ INDUSTRIAL ANALYSIS 4. ORGANIZATIONAL OVERVIEW

2.1 2.2 2.3 2.4 2.5 MANAGEMENT PEOPLE SCB VISION & MISSION ORGANIZATIONAL BACKGROUND STANDARD CHARTERED VALUES STANDARD CHARTERED BUSINESS

5. IDENTIFICATION OF ISSUES
5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 STRATEGIC ANALYSIS BASIC EMPLOYMENT PRACTICES EMPLOYEE CAREER DEVELOPMENT COMPENSATION AND BENEFITS PERFORMANCE MANAGEMENT SEPARATION FROM THE COMPANY HEALTH SAFETY AND SECURITY SWOT ANALYSIS

6. POSSIBLE OPTIONS/ ALTERNATIVES 7. RECOMMENDATION & ACTION PLAN 8. REFERENCES

61

60

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 positive

after

the

implementation we mean the development,

of basic

this

action in and

plan.

By

result career and

difference safety

Performance practices, and security

management, compensation

employment

benefits,

health

employee retention before and after the implementation of that action plan which will ultimately result in the better output or better productivity in employees, of the company. And if will we fail be to implement that action plan the level of de-motivation will increase their performance 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 Banks 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 to the personnel and management benefits policies. HRM practices have shown to be valuable to any companys practices and conforms various record regulations. and personnel

Activities also include managing their approach to employee compensation, employee

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, programs undertake and dismantle employee training and development structures traditional bureaucratic

that limit employees 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 use they are fulfilling measurement , the their to vision and meeting their customer-focused strategic goals. Leading-edge organizations into, and performance judgments gain insight and make about effectiveness

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 todays organizations, information the is use to of help Strategic set Human

Resource

Management

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: 1234567891011121314Citibank Royal Bank of Scotland HSBC Barclays HBL UBL Allied Bank Soneri Bank Askari Bank JS Bank Faysal Bank NIB Bank The Bank of Khyber 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: 1234HRM Pioneer Contract Services Professional Employers 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 Kazmi CEO Standard 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 Groups 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 We Nominees are Limited, the first a Standard and only Chartered Group company.

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 CHARTEREDS VISION

THE WORLDS BEST INTERNATIONAL BANK LEADING THE WAY IN ASIA, AFRICA AND THE MIDDLE EAST

STANDARD CHARTEREDS MISSION

TO BE THE RIGHT PARTNER

2.3 ORGANISTAIONAL BACKGROUND

Standard Chartered PLC

Type Founded Headquarters Key people Industry Products Revenue Operating income Net income Employees Website

Public 1852 London, United Kingdom E. Mervyn Davies CBE, Chairman, Peter Sands, Chief Executive Banking Financial Services $13.0 billion USD (2005) $8.620 billion USD (2006) $2.4 billion USD (2006) Nearly 60,000 (2007) www.standardchartered.com

Standard

Chartered

Bank

(LSE: STAN,

SEHK:

2888)

is

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 banking and a in rapid London expansion and in India and and the Pakistan. Standard Chartered retained Grindlays' private operations Luxembourg 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 bank Standard in the Chartered country, merged but the in only Grindlays' one with

operations, making Standard Chartered not only the largest foreign branches in all four provinces.

Standard Chartered in The Americas

1968

Standard

Chartered

opened

representative

office in Mxico 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 1996 The The bank bank opened opened a a representative representative office office in in

Bogot, Colombia.

Buenos Aires, Argentina.

1998 Standard Chartered purchased Banco Exterior de los Andes y de Espaa (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 Nakornthon Chartered Bank in completed October. its It integration formed between strategic

Standard Chartered Bank Thailand and Standard Chartered also

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 will capital On have of Hsinchu of International offer, of Bank (Hsinchu). Chartered completion the Standard Hsinchu,

majority

ownership

Taiwans 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. adequate The acquisition of of Grindlays, a bank that enjoyed an equally impressive history in the country, is manifestation 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 Bank Chartered's and First operations Grindlays comprise Modaraba.

Standard

Chartered

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

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 (Pakistan) ratings payment rating of AAA (Triple The A) and a short-term listed, risk rating of A1+ (A One Plus) to Standard Chartered Bank Limited the (SCBPL). lowest banks three of subordinated TFCs are also assigned AAA rating. These denote of expectation The credit emanating from an exceptionally strong capacity for timely financial commitments. ratings remain subject to a formal review by PACRA on release of audited financial statements for the year 2006.

The ratings reflect the banks sound financial profile, a leading market position, robust risk management systems, and a quality management team. At the same time, PACRA recognizes the banking the financial and strength continuing and international support to profile of the parent Standard Chartered Bank (SCB) in industry strong 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 business primarily East, and segments, of the in The of this these is well in in line more with than to the 50 model Standard Chartered Group, which

operates Africa.

segments is

countries in Asia Pacific Region, South Asia, the Middle management the the expected in draw and the substantial technical benefits resources from cumulative group expertise managing

associated risks. SCBPL has strong ratio. capitalization The risk levels. Meanwhile, the

asset quality is robust, evidenced by low NPLs to gross finances management framework, service standards, support systems and processes employed by the bank are of high quality, common to other group entities. The group exercises support Given in a high degree an the of supervision of of and the the provides mechanism. operations through the in established importance business overall structured

increasing

Pakistan

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 & Poors 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 banks CEO has an extensive local and international banking experience. He has been with the group since 1991, and has held various senior positions, since July including 2003. the CEO to of Pakistans merger, operations Pakistan Prior the SCBs

Operations has developed a strong foothold in consumer and wholesale banking, and offers a wide range of products and services. Union Banks 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 longterm 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 We new nationalities believe products this and among our 500 most to senior fuel leaders. exciting diversity services helps our

creativity and innovation, supporting the development of for customers worldwide.

2.4 STANDARD CHARTERED,S VALUES

Our values are the heart and soul of our brand.

Courageous:
courageous what but is is right. about Often

Being doing the and be

task may seem insurmountable with the courage odds can tenacity,

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 unexpected. to go beyond the

International:
the We global are all

As a member of we view the and

village global and We

world from the widest perspective. citizens believe the world is full of new opportunities possibilities. exciting deliver also

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:
foundation relationship. believe promise. forever. moments. in of We the

Trust every trust trust trust

is because of can takes

the we the take only

successful

sincerity

Building Losing

Hassan Arif UNIVERSITY OF LAHORE

31

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 By this belief which has propelled Standard Chartered to the market leader slot in Pakistan's and develop financial innovative sector. new continuously For a the most assessing individual extensive customer needs, the Bank has been able to modify existing products. offers customer, Standard Chartered

portfolio of financial products and services ranging from basic liability products catering to different needs such as 'Flex' and 'High as Yield' credit offers accounts, cards, world 24 to value-added phone loan products such as auto, personal loans, to convenience based solutions Standard as such hour banking services and e-statements. For its strong corporate base, Chartered class Cash Management national for all, related services and technologically superior products such electronic and banking, premium bill service payment banking, option collection services and billpay, a product which provides a convenient flexible including non-customers.
Hassan Arif UNIVERSITY OF LAHORE

32

COMMUNITY SERVICE
Standard provides fulfill Chartered recognizes its responsibilities to its to its people As so such, that they can and

staff and to the communities in which it operates. The Bank opportunities their true potential. training

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 good. In in place it can be a legitimate influence for the Bank has an active community Pakistan,

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 Marie local and international Leprosy organizations Lady such as The Kidney Centre, SOS Childrens' Villages of Pakistan, LRBT, Adelaide Centre, 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

33

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 SMUs project teams and our business, says Adam Spencer, Through and learn how Standard working to a to Chartereds with and iLab, senior manager gain where responsible for System Development, Shared Distribution and Innovation. experience they date can with students exposure corporate environment

develop five

manage

intellectual

property, he adds. About 20 projects have been completed to approximately project prototypes being reviewed for production deployment.

From

the

students environment skills and

perspective, in which One and respond

the to to such

iLab sharpen

provides up

conducive commercial scenarios

their was to

real-life challenge

business

challenges.

investigate the viability of voice biometrics authentication technology at the request of Standard Chartereds 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

Hassan Arif UNIVERSITY OF LAHORE

34

customer manager.

when

he

or

she

is

talking

to

relationship

Technology and the Customer Experience

In the world was of to an banking, make security user of are transactions both that key. as none of easy and Our as the

satisfactory requirement possible with

customer

experience the

experience

innovative

feature

competition already has, he explains.

In

other

words,

the

banks

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 to required their to fax a follow-up letter as of an authorization relationship managers

additional precaution against fraud. Standard Chartered was seeking an innovative new authorization system which would make this process much simpler.

five-member

SMU

team, comprising multinational students

from Singapore, Indonesia, Myanmar and India, responded to the banks challenge. Calling themselves Team Ascendance, the group worked for eight months to research technology options, analyze the banks existing business processes, build a software prototype and integrate it seamlessly into the banks current system. According to team member Si Thu Win, Current authentication processes at some banks are not
Hassan Arif UNIVERSITY OF LAHORE

35

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 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 didnt 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 banks business works, and the vendors didnt know what we were doing, he adds. Convincing student vendors across the globe to cooperate with a 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 to languages, communicate and with we had to enable says the team technologies each other,

member Michael Ricky Hosea. While building the prototype, the team also took the initiative to provide feedback to Standard involved. shoes. Chartered For Bank on the actual business yet Even its processes another if of the no team member the is Damon client Widjaja, is king.

challenge was trying to put themselves in the customers For the bank, technology application 36 very sophisticated,

Hassan Arif UNIVERSITY OF LAHORE

value if the customer finds it too difficult to use, he explains.

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 staff who graduate provided student Daniel Chong, and other iLab general direction and tips on how to

manage the banks 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 were not business users the at Standard would Chartered Bank convinced technology

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,
IT&Service Delivery Consumer Bank Wholesale Bank Support Services Spencer says that the iLab is putting additional focus this

Standard Chartered Bank

year

on

deploying successful Unsecured Loans

projects, Finance & Admin

such as Banking voice Consumer

C.R. example,

Client Relationships biometrics, in C.R.

Human Bank. Standard Chartered Resources For Secured Loans

the

banks lawyers are Shared Distribution looking into Legal & Compliance intellectual propertyServices issues Custodial
Hassan Arif Global Markets UNIVERSITY OF LAHORE Wealth Management SME Service Delivery External Affairs

Asset
Management

37

Info. Technology
Information Systems

relating banking

to

the

new is

business

process

while

the with

priority various

department

negotiating

contracts

vendors to implement the software system.

2.5 STANDARD CHARTEREDS BUSINESS

Standard Chartered Bank
Wholesale Bank Consumer Bank
Unsecured Loans Client Relationships C.R. Secured Loans Shared Distribution Global Markets Wealth Management SME

Support Services
Finance & Admin Human Resources Legal & Compliance Service Delivery External Affairs

IT&Service Delivery
Consumer Banking C.R. Custodial Services

Info. Technology
Information Systems

Asset
Management

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

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Global Markets provides: Foreign exchange, Debt capital markets services 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

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SME

offers

Business

power

and

Business

Installments

Loans

Consumer Bank Products LIABILITY PRODUCTS

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 Personal Loan / Ready Cash SME 40

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o BIL (Business Installment Loan) o BP (Business Power)

SHARE OF REVENUE (SCB VS FOREIGN BANKS):

P r iv a t e Banks 29%

Citi 31%
N M BP CB , U , H BL BL ,

Other Foreign Banks 31%

Other Foreign Banks SCB Citi

F o r e ig n Banks 19%

B ig 4 L o c a l 52%

SCB 38%

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CHAPTER - 5
IDENTIFICATION OF ISSUES
5.1 STRATEGIC ANALYSIS Strategic Intent Best Managed Sales Force in Pakistan

Changing the profile of Employees Expanding the sales force Providing proper career paths to Employee Compensation structures to drive right behavior Using MISs to gain an insight High focus on Employee training Maintaining and strengthening our Sales Governance FIGURE A-1

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

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
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level 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

Career

Developments:
of

Third

step

includes

the

development

their employees. Standard Chartered

Bank provides its employees a proper career path so that

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they 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:

introduced This their own

Standard Chartered Bank pays

high focus on their employee training and for that they have Global Employee Training Curriculum. introduction of the bank, Curriculum includes

compliance and legal policies of the bank, sales strategy of

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the bank, 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. of of the increase This in training retention results in of in high and productivity complaints, implementation provides: A training an and and health check plan which and helps tracks in all employees, reduction customer

employees

global employee curriculum. After every

three months a training monitoring MIS is reviewed which

tracking gaps and requirements for every employee. Ensures product Accurate exception reporting compliance refreshers which are due timely reporting of new employee

for each employee. training activity every month.

5.1.7

Maintaining
Standard it day

and

strengthening
has through its own

Sales
sales sales work,

Governance:
strengthening governance

Chartered by This day

governance policies which it has maintained for years and is employee frame training. includes ORMA

compliance to internal and external policies and audit. The bank doesnt 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. 2. 3. 4. 5. 6. 7. Updated resume/ C.V. Resignation Experience Attested acceptance/ certificates copies of clearance of all the letter the and salary slip from last employer (if applicable) previous employments (if applicable). all educational certificates/ transcripts 5 passport size photographs Photocopy of NTN certificate (if applicable) attested copies of CNIC for :

Self Spouse (if applicable) Children (B-Form/ Birth certificate if below 18)

All

forms

must

also Any

be

filled at

and

sent

along in

with

the

joining

report.

change

any

time

personal

information must be intimated to HR department immediately so that the employees record can be updated.
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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 to will be issue worn a company the identity card on to the employee, by employee while 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 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.

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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. 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
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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 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 attainments 5. New family members 6. Change of bank account number
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education

qualification

and

other

49

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, friends friend and

personal or business acquaintance. Confirm the interest of the person whom you are planning to refer. 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:
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Office hours Monday to Friday Saturday Lunch hours Monday to Thursday Friday 1:00 pm to 3:00 pm 1:00 pm to 2:30 pm 9:00 am to 6:00 pm 9:00 am to 2 pm

In

some

instances, in order to

staff

may

be

asked

to

change

their

timings

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.

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 supervisors/ manager prior agreement. If any staff member is unable to come to work for any unexpected reason such as a domestic
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emergency they must inform their manager or department head before or close to the normal starting time about the reason for to their take absence. their Normally, an employee to will be required absence. If an employee fails to report to work for more than two consecutive department absence workdays head, without informing will and their be will be manager cause or as for their official absences leave considered leave entitlement cover this

without

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.

LEAVE
All permanent employees of bank, after confirmations, will be eligible to apply for the following leave in a year: Team Leaders Below Team Leaders days) 30 Leaves (calendar days) 10 sick/ casual leaves (calendar

14 annual leaves (calendar days)

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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 individuals abilities. It is intended that everyone shall have the opportunity to benefit from sound and adequate training both for the employees 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 of in house and external courses to be conducted for the year. The training department designs, organizes and conducts inhouse courses to support the companys 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, organized employees by will be sent for external courses are external institutions. These courses

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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 companys 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 the employee is hired, the TL/RSM/NSM will send a list of all the new for has recruits induction been to sales out, training, to a be MIS of who the will After then the arrange training training carried.

carried

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.
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5.3.6PROMOTION OPPORTUNITIES:
The company and aims to provide will numerous be assigned opportunities to handle of more

promotion

employees

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 contributions Fund rules. @ 10% of the on basic salary to PF. rates The and are based current legislation

shall be deducted from the salary as stated in the provident

5.4.2 GRATUITY
All employees who resign/ retire after completion of 5 years or more of continuous will service (after confirmation) with price solution be eligible for gratuity as per the

rules of the gratuity act.

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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 in grade, the you shall insurance be covered that by Group be

Hospitalization Insurance policy with the prescribed limit mentioned medical policy will provided to you. Coverage hospital required department the terms is not to only in applicable panel all then where hospitalization then to the you the is are HR

recommended. In case of emergency, if you are going to a the will list provided, and it in to the submit who and bills receipts

forward stated

insurance

company. The amount will be reimbursed in accordance with conditions hospitalization insurance plan.

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5.5 PERFORMANCE MANAGEMENT

5.5.1 ANNUAL SALARY REVIEW
All employees of to the are expected to deliver consistently policy will be is on

his/her key performance indicators from month to month. The essence linked performance management reviews growth productivity. Salary conducted

every year to ensure that wages or salaries are equitable and competitive and to reward for performance. Wage increase recommendations April 1st. would be based on individual and company performances. The increment date for all employees shall be

5.5.2 PERFORMANCE APPRAISAL

Based levels. Front line Sales Staff For this category of sales staff, for assessment will take place utilizing the ESAU ESAU methodology. Supervising managers will be responsible assessing their sales staff against criteria for different products. Senior Sales Staff Performance for this category is assessed yearly mainly and yearly through basis. Job Objectives and (JOs). quarterly Evaluation is carried out on a monthly, quarterly, half Monthly evaluation will be done through sales battleground and half yearly and yearly though performance of the NSMs
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on

the

nature

of

the

job

performed,

assessment

criteria will vary for sales and support staff at various

57

is tracked and rated on key variables such as sales numbers, evaluation productivity, for Team cost (TL) etc. and additionally, Regional Sales Leaders

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.

5.6 SEPARATION FROM COMPANY

Separation reasons. exiting A could be done to the voluntary process or involuntary that good as a

structured

separation

ensures

employee

leaves

organization

ambassador. Supervising managers are required to ensure the following formalities are completed at the time of exit: 1. Resignation Letter. 2. Exit Checklist
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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

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 to are issued it with an identity card and are

required

wear

while at work for security reasons,

employees are asked:

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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. 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 effective passwords ways of are one of the simplest based but most

securing

computer

information.

Passwords should be changed at least monthly, and must not be disclosed to others or stored with a workstation.

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5.7.5 EVACUATION IN THE EVENT OF AN EMERGENCY

Employees will be advised of the evacuation plans for their office same. premises by their manager (or nominated representative) and should ensure they are familiar with the

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 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 Banks 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
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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. Contract) Beside are this it gives all the employees equal compensation and benefits which the other employee (On Bank 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 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.

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5.8.3 OPPORTUNITY ANALYSIS:

Opportunity department on the analysis discovers and for of Standard Chartered Human Resource that their the was they eyes that utilize are they the opportunities for Head the of

coming their way very efficiently. They have a complete look market searching One took of the opportunities opportunity good resource. recent

utilization

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 offers which also result in higher motivation of the employees.

5.8.4 THREAT ANALYSIS:

Standard and Chartered is facing so a lot of problem that it regarding is to of very that these

their employee retention. They have made their compliance audit structures for a their complicated to the work difficult without employees on according

policy. Even Full Time Employees (FTEs) can be dismissed single warning obstruction 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 dont want to work with a huge number of employees. This is a big threat
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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 There under are the category of of FTE who (Full have Time been Employee). number employees

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 System a I precise found study that on the Human Resource Bank human Management has a very resource Standard and Chartered effective

organized,

systematic

management system implemented but at the same time they also have some drawbacks in their HR management system. The Main drawbacks are: 123456Complex HR structures Decreases Level of Employee Retention Lack of Performance Management Lack of Performance Appraisal Extra pressure environment 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 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
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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 all employee retention is concerned; they are those benefits to their employees whom no

providing

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 bank from in order to manage huge human for resource. I recommend that they should choose HR manager for Ex-union the Ex-union employee and 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.

7.3 RECOMMENDATIONS REGARDING PERFORMANCE MANAGEMENT

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67

Previously some

Standard

chartered and

bank

has

implemented

an

efficient performance management system. They have installed parameters If the standards is regarding continuously employee performing performance. employee

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 Banks employees who were not familiar with that system which to also get causes major problems. In this case should give with extra the training to familiar standard I recommend employees that they Union

chartereds

system and give them some leverages so that they can get adjusted in the changed circumstances.

7.4 RECOMMENDATIONS APPRAISAL

REGARDING

THE

PERFORMANCE

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.

7.5

RECOMMENDATION ENVIRONMENT
68

REGARDING

THEIR

WORKING

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As

Standard

Chartered cameras feel and

Bank the

is

operating

with that is

a is

pressure why the to

working environment because of high to achieve targets and observation morale, Their for and employees, and motivation employee retention cannot decreasing.

employees targets and

stressed set some

concentrate and the

their work. It is recommended that they should review their employee targets realistic far as achievable observation targets so that maximum number of employees achieves their feel motivated. As 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. 2. 3. 4. www.standardchartered.com.pk www.wikipedia.com Usman Bank. Employee Bank induction Book of standard Chartered Ghani, HR Manager, Standard Chartered

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