Talent Management At Standard Chartered Bank Commerce Essay
Why is it of import to mensurate the impact of SHRM? What might be included in a rating scheme to mensurate the impact of SHRM in an organisation to accomplish strategic integrating? ( 10 Markss )
Word Limit 2500
Section B4. What are the chief characteristics of a Performance Management system? In what ways canorganisations guarantee that such systems fulfil strategically utile results ( 30 Markss )5. Why are reward direction systems critical to SHRM? How can organisations developreward systems strategically? ( 30 Markss )
Written in: English ( UK )
Section A Entire word count: 1625Section A Entire word count: 3109
HR – Human ResourceHRM – Human Resource ManagementJE – Job EvaluationPMS – Performance Management SystemSHRM – Strategic Human Resource Management
Section A, Question 1
To what extent does the attack to Talent Management at Standard Chartered Bank show characteristics of SHRM?
By concentrating to a great extent on its talent direction plan it can be clearly be seen that Standard Chartered Bank ( SCB ) is doing the pattern of SHRM as one of its cardinal precedences. As can be seen from the article, the manner SCB adopts its appraisal methodological analysis is of a really strategic angle.
By doing it a planetary criterion to carry on face-to-face public presentation assessments every 6 months goes to demo that SCB is reexamining its ain public presentation direction aims to do certain that those aims stay relevant and accomplishable, and that is a characteristic of SHRM. Bing sensitive to different civilizations by using different assessment methods besides shows that SCB understands the importance of directors and staff identifying and covering with existent, existent jobs in a manner that is most familiar and effectual to them. That is besides another aspect of SHRM as through such agencies, SCB is able to supervise its ain fight in the market.Through assessments, SCB besides classifies their employees into 5 classs runing from high-potentials, to critical resources, so to core subscribers, followed by underperformers and eventually, underachievers. By making so they are able to place countries in which they are missing and act upon it. Interestingly, as Geraldine Haley explains the categorizations, it can be seen that SCB is already placing the likely flow of endowment in the bank and are taking actions to pull off the flow. For illustration, when sorting certain employees as underachievers, Haley goes on to advert that this group of people do non suit the occupation demands and they should be transferred to another function or be ‘managed out ‘ .
Clearly, whether the bank decides to put this group of employees in another function ( which fits the thought of SHRM because by puting people where they perform best clearly benefits any company ) , or by pull offing them out ( thereby cut downing unneeded work force costs or replacing with a more productive campaigner ) , the purpose behind both actions is clearly strategic in nature. The employee categorization besides allows the bank to understand the their potency and manpower mix which is critical because, the HR section would be able to be after in progress for staff mobility or develop different plans to assist develop possible of their endowments to another degree. So far we are able to see that SCB does so see its employees as a strategic cardinal plus in churning out net incomes for the bank.Yet another SHRM characteristic being displayed is the secretiveness of employee categorizations.
As mentioned in the article, SCB ‘s stance is that while they do non desire certain employees to experience de-motivated and others to tout about their ain public presentations, the whole point of the categorization system is to inform directors that there might be actions required on their portion to better the state of affairs. It is true that in SHRM, directors should non do their staff to experience like they are being invariably monitored for hapless public presentation because this will impact the staff ‘s willingness to lend towards the company. Again, either manner, we see that the actions taken are closely linked to assisting the administration accomplish its strategic corporate aims. The categorization system is besides being used a usher for regional offices to strategically benchmark against one another to see where they stand.Ever since SCB has been sing a high staff turnover rate among freshly recruited employees, a solution in the signifier of a planetary initiation plan named Right Start was implemented to control this job and they successfully brought down the rate of employees go forthing by 5 % ( http: //www.standardchartered.com/annual-report-07/en/business_review/people.
html, 2008 ) .SCB has besides gone on to prepare endowments into leaders by agencies of supplying coaching and self-help tools through assorted medias such as podcasts, pictures and workshops. Another cardinal construct is to let endowments to play to their strengths instead than on concentrating on pull offing their failing. As Hayley explains the strategic principle on concentrating on training endowments with planetary functions in the bank, it is because a little 5 % betterment from these top directors is adequate to do a immense positive impact on the Bankss net incomes.Under the Best pattern position in SHRM, there are 18 Key patterns of which SCB can safely said to hold achieved at least 50 % or more:Realistic occupation prevues ;Use of psychometric trials for choice ;Well-developed initiation preparation ;Provision of extended preparation for experient employees ;Regular assessment ;Regular feedback on public presentation from many beginnings ;Individual performance-related wage ;Profit-related fillips ;Flexible occupation descriptions ;Multi-skilling ;Presence of work-improvement squads ;Presence of job work outing groups ;Information provided on house ‘s concern program ;Information provided on the house ‘s public presentation marks ;No compulsory redundancies ;Avoidance of voluntary redundancies ;Committedness to individual position ;Harmonised vacation entitlement ( Beginning: University of Sunderland ) .It can be concluded that SCB is puting so much resources towards its human talent direction plan merely because it views it employees as human capital for the administration and understands the wisdom in developing and pull offing its employees in close relation to the values and aims of the company so that an effectual work force can be grown, and groomed to accomplish the strategic aims of the bank.
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1.2 Remark on the relevancy of this attack in the visible radiation of the recent banking crisis?
The banking crisis of 2008 was mostly due to the autumn of banking giant, Lehman Brothers ( LB ) . If LB had adopted SCB ‘s position of employees as human capital in the administration, it could hold at least minimised the loss to a certain extent. For one, treatments between employers and staff would hold been more unfastened and job issues could hold been brought up and identified at an earlier phase. Inefficiencies in the administration would hold been uncovered if there were a planetary digest of public presentation like in SCB, where CEOs were able to benchmark their public presentations against regional offices. In a manner, holding a certain sum of centralised control through talent direction would besides enable the monitoring of LB companies globally. It is interesting to observe that when a German subordinate of LB requested that top direction in the USA forgo multi-million fillips as a mark of taking duty for hapless public presentation, the petition was instantly struck off at the first case. It seems that top direction either did non cognize or did non trouble oneself to care what was traveling on in its other planetary offices.
Therefore it is of import for companies to hold a solid leading and to accomplish that, administrations must get down to take the first measure in admiting its employees as cardinal assets towards enabling the company to accomplish it strategic ends and aims. Thereafter that, the company ‘s HR policies should be dawn to include short and long term schemes that are inline with the company ‘s corporate aims. Companies should besides see which view the company would follow in relation to SHRM. For illustration, does the company suit the Best Practice position, Bes Fit position, Best Fit Integration position or Resource based attack? Each has its ain strengths and failings but the company has to make up one’s mind which is the most compatible and let the company to accomplish its ends.Possibly the civilization of a company should besides be set as civilization can deeply impact a employees willingness to lend positively to the company. Every administration aims to pass on its ain aims and ends to its employees so a to aline the values and attitudes of the employees towards committedness in public presentation for the company, and in this regard, holding an appropriate civilization will greatly enable the employee to settle comfortably into the company and be motivated to execute good. Retaining endowment is important in a company ‘s path of advancement and much attempt should be put into endowment direction where employees will experience like that are an of import portion of a company that cherishes their parts and seeks to develop and prepare them for farther growing in their calling.
With SHRM as the cardinal basic steering rule, company ‘s should therefore seek to make a pool of endowment that will maneuver it in the right way, both in good times and bad.
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1.3 Why is it of import to mensurate the impact of SHRM? What might be included in a rating scheme to mensurate the impact of SHRM in an organisation to accomplish strategic integrating?
It is of import to mensurate the impact of SHRM because, foremost, schemes that are formulated into HR policies are closely linked to the strategic aims of its administration. The ground why this is so is because the company understands that attitudes and public presentations of its employees makes a important difference towards accomplishing organizational ends. Therefore when an administration decides to use the HR unit as a strategically, resources are being invested to do certain the HR unit contributes towards the attainment of those aims.
In mensurating the impact of SHRM in a company, there are 18 Key patterns of SHRM might be used to determine the grade of SHRM nowadays in the company:Realistic occupation prevues ;Use of psychometric trials for choice ;Well-developed initiation preparation ;Provision of extended preparation for experient employees ;Regular assessment ;Regular feedback on public presentation from many beginnings ;Individual performance-related wage ;Profit-related fillips ;Flexible occupation descriptions ;Multi-skilling ;Presence of work-improvement squads ;Presence of job work outing groups ;Information provided on house ‘s concern program ;Information provided on the house ‘s public presentation marks ;No compulsory redundancies ;Avoidance of voluntary redundancies ;Committedness to individual position ;Harmonised vacation entitlement ( Beginning: University of Sunderland ) .Other possible measurings could be in the signifier of assessments where public presentation direction aims are being reviewed. Through the assessments the administration would be able to cognize how it is doing against the accomplishment of its ain marks relative to the overall public presentation of the employees.
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Section B, Question 4
What are the chief characteristics of a Performance Management system? In what ways can
organisations guarantee that such systems fulfil strategically utile results ( 30 Markss )
4.1 Main Features of a PMSThe chief characteristics of PMS are:PMS consists of business-led results that may be assessed against definite concern aims ;PMS is integrated with engagement processs and flows of information ;There is a mix of quantitative and qualitative aims ;There is a focal point on both system design and mode of execution. Because PMS are sensitive to treat and civilization, it is therefore flexible ;PMS rely on a participative attack by troughs and staff likewise, which can aline with other organizational procedures, for illustration, employee faiths, communications and decision-making procedures ;Last PMS have a typical and adaptable quality of being people and systems-oriented ( Beginning: University of Sunderland ) .There are 6 other characteristics of PMS that links it to the overall concern scheme of a company which might besides steer administrations in guaranting strategic results are met:Objective scene ;Ongoing reappraisal of aims ;The development of personal betterment programs linked to preparation and development ;Formal assessment and feedback ;Pay reappraisal ;A competence-based organizational capableness reappraisal ( Beginning: University of Sunderland ) .
4.2 Ensuring PMS Fulfils Strategically Useful OutcomesThe best manner to guarantee that PMS is able to carry through strategically utile results is for the administration to be involved in the scene of public presentation aims and thereafter step those aims. When puting clearly defined public presentation direction aims administrations can pitch the range and nature of the aims to reflect the administration ‘s ain corporate ends.
These public presentation aims should besides be linked closely to the single employees every bit good as the administration ‘s capableness resources. When puting aims, coverage should include competency and accomplishment development, ability in run intoing operational marks, and making a suited corporate civilization. Aims are by and large defined into 3 classs: productiveness and end product related, job-related and person-related.For productiveness and end product related aims, these are a step of quantifiable end product marks like:Cost decreaseAchieving gross revenues quotaMeeting production volumes.For occupation related marks, these involve run intoing the chief aims of the occupation laid down in its description harmonizing to the specified degree of competency:Achieving chief duties and answerability.Meeting undertakings as described in the occupation description.
Meeting the duties and service relationships to internal and external clients.For individual related aims, these affect the behavioral results of the individual executing his occupation, such as sharing cognition an thoughts with colleagues. Administrations recognise the importance of associating organizational civilization with person-related aims as it can assist to convey about a positive alteration in the administration ‘s civilization. For case, an administration that wants to hold a civilization that is collaborative in nature will put aims on employees and step an employee ‘s research study on the figure of mentions made to other employees ‘ work or the figure parts made by the employee ‘s co-workers in the study.
This type of aim will alter a individual behaviourally so that he or she is able to run into the public presentation aims.As administrations are get downing to switch off from individualistic public presentation aims such fiscal ends and traveling towards aims which links the work force to the corporate aims or wider environment such as quality and effectivity of concern procedures, other measurings are being introduced to maximize the possible and accomplishment of the work force through a commitment-oriented scheme. Therefore, administrations have besides realised that to prosecute the wider environment, they have to place the relationship between the 3 key stakeholders an the administration:Investors who require return on their investing through dividends ;Customers who require quality and service for which they pay ;And employees who require a healthy and honoring working environment that provides occupation security ( Beginning: University of Sunderland ) .Now that the inter-relationship has been identified, administrations are better able to pass on expected degrees of competency from employees and will besides be able to suitably authorise staff to cover with activities as a consequence of their integrating. Lynch and Cross ( 1995 ) , created a theoretical account that shows this relationship ( see Figure 4.A ) . This theoretical account besides identifies the wide steps and integrating of aims at each single degree.Figure 4.
A shows The Performance Pyramid from Lynch RS and Cross ( 1995 ) ( Beginning: University of Sunderland )4.2.1 Appraisal SystemsAs the nexus between aims and organizational resources are of import, it must hence be integrated with appraisal systems. Appraisals do the occupation of reexamining the public presentation direction aims, and it traditionally occurs yearly between the director and staff. However, as the demand for aims to remain relevant and accomplishable all the clip, reappraisals of the aims are get downing to happen more on a regular basis. Hence it can be said that regular reappraisals besides encourages the edifice of relationship and the happening of training through such regular treatments.
In the design of assessment strategies, there are 2 types of orientation strategies that emerge: the control orientation and the developmental orientation.In the control orientation attack, it is ever assumed in a negative visible radiation that a senior entity in the administration decides the ends, marks, aims and wagess for the employees to accomplish. This consequences in employees experiencing insecure as they feel that they are being invariably monitored and may take to a dislocation in committedness. Often, when accommodations are introduced to ease such concerns, the appraisal strategy becomes uneffective as director do non turn to existent issues which may do a loss in motive or harm in dealingss between the director and employee. Standardised controls are put in topographic point so as to keep consistence and equal intervention for all, nevertheless it sacrifices flexibleness in the procedure.
The degree of impact is low on public presentation with the exclusion of a few bing high performing artists. Therefore, this attack is effectual when marks are clear and staff are used to it. The accent is non so much on heightening public presentation through feedback and motive but more on the direction ‘s authorization over the employees.In the instance of the developmental attack, the director is non in control whereas employees are the 1s who take the enterprise to turn to uncertainnesss in desiring to cognize how to better themselves.
Employees want to be helped and supported through jobs and they learn through failures and success. The strengths in this attack include less opposition between the trough and staff, and being able to manage jobs in an unfastened manner. Problems can besides be dealt with on a more nonsubjective footing without turning relationships. Employees are besides given high trust in their unity. However, the failings with this attack include less seeable results being produced and the director has to take on a more advisory or ‘counsellor ‘ function that they might non be able to execute good in.
4.2.2 Types of AppraisalsThere are a few types of assessments which administrations may take to follow including the, self-appraisal, top-down assessment, equal assessment and multi-directional assessment.Top-down assessments are traditional and feedback is gathered from the staff while aims come merely from the top. The failings of this type of assessment are that excessively much accent is being placed on traditional organizational hierarchies. Favoritism might besides be prevailing and employees might non hold full cognition in constructions where directors posses a broad span of control.
Self-appraisal methods are barely used. It gives the employees more ownership and a much higher grade of engagement in the appraisal strategy. Directors adopt a more supportive and consultative function where they engage in treatments with the staff on scene of aims.In the upward assessment theoretical account feedback is given from the underside to exceed.
Employees are frequently asked to supply such feedback anonymously. Administrations that use this method recognize the demand to supply more effectual working systems for employees to work more expeditiously.In the equal assessment theoretical account, members of the same squad are being asked to measure one another. There may be sensitivenesss involved when utilizing this method as members might demo favoritism to peculiar members or dislike towards certain members might be the ground for hapless evaluation given.In contrast to the equal assessment method, multi-directional assessments sets up to obtain feedback from the exterior of the squad and it frequently besides includes garnering feedback externally from clients. Its cardinal strength is its being able to get the better of the deficiency of cognition from a individual valuator as it gathers feedback from many beginnings. However its biggest failing lies in the deficiency of control over hostile evaluations being given.Therefore assessments are besides a tool to guarantee that public presentation objectives meet strategically utile results.
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Section B, Question 5
5. Why are reward direction systems critical to SHRM? How can organisations develop
reward systems strategically? ( 30 Markss )
5.1 Why Reward Management Systems are Critical to SHRMIn strategic human resource direction ( SHRM ) , schemes that are being implemented into a company ‘s human resource policies are closely connected with a company ‘s chief adopted scheme in order for it to help in accomplishing company aims. SHRM does so by agencies of recruiting, developing, keeping and retaining an efficient, productive work force. As employees make up a company ‘s work force, they should so be regarded as cardinal assets in a company. Reward direction systems are hence critical to SHRM because they are used to honor and counterbalance employees in manners that impact employees positively for the company. For illustration, well-developed wages direction systems uses wagess to actuate employees to turn and develop their possible, thereby increasing the quality of attempts contributed towards the company.Wagess and compensation systems are besides critically used in alining the civilization, aims and doctrines of the company with attempts of the employees, this allows employees to place themselves as portion of the company and therefore beef up their trueness and committedness towards the company and its aims ( Sherman et al.
, 1998 ) . In today ‘s competitory environment where companies compete for endowment and expertness, wagess play an of import function in both the enlisting of endowment and keeping of long functioning employees who have difficult-to-source tacit cognition in their field of expertness. Having a flexible wages direction system besides means that a company is able harness other signifiers employment, for illustration, hiring of part-timers with relevant experience to temporarily make full in during short-run undertakings.5.2 Developing a Reward System StrategicallyWagess systems in companies practising SHRM must evidently be strategic in nature. Harmonizing to Lawler ( 1984 ) , there are nine points to see when doing strategic determinations in developing reward systems in companies. The nine points are termed as follows:Base of wagess.
Performance and Incentivisation – range for patterned advance.Market place.Internal versus External comparing.Centralised versus de-centralised wages.Degree of wage hierarchy.Reward Mix.Procedure issues.Reward systems – consequences/integration.
5.2.1 Base of RewardsWages can be based on 3 options:The type of occupation a individual undertakes.The individual ‘s part in the occupation.
The cognition and skill flat people possess within the occupation.The 1st option is to pay based on the growing and development an single project a occupation. This is typically done through internally comparing a peculiar occupation with other occupations within the company utilizing a occupation rating which measures the undertakings that the occupation is required to execute.
External comparings could be used, whereby companies compare the rewards offered by other companies against their ain. Job based wagess are typically found in larger administrations where occupation and pay equity is prevailing ; an illustration would be occupations in the public service sector where occupation scaling is used. The 2nd option is to pay based on the person ‘s public presentation within his or her occupation and is normally implemented in instances where the occupations are little in figure or occupation Scopess that are distinguishable and wage has to be single. Performance based wage is used to equilibrate occupation demands and parts made in order to actuate the person to heighten public presentation.
The 3rd option is to pay based on the demand to get new accomplishments and cognition so as to enable administrations to run into the new market challenges.5.2.2 Performance and Incentivisation – range for patterned advance.This point considers the many types and ways of utilizing inducements, whether as a portion of an person ‘s wage or an extra part. However, the chief quandary lies in accommodating strategic aims with the usage of suited inducements to actuate and heighten employee ‘ public presentation and committedness to the company. Companies will hold to make up one’s mind the signifiers in which inducements will take and how it will be distributed every bit good as the positive and negative reverberations it might convey to the company or its employees. For illustration, replacing committee for a fixed fillip payout to gross revenues employees might do low-performers to be happy, while high-performers might go dissatisfied they could hold earned more on a committee strategy.
5.2.3 Market PositionAs labor markets are vulnerable to the economic system, market tendencies and political influences, extremist alterations may go on anytime within the labour market. For illustration, if there is a labour deficit in certain industries, administrations would be forced to pay a higher pay to get the labor needed. As such, administrations are happening it hard to prolong an internal sense of equity that comes from a formal measuring of occupation equity within internal pay constructions. Therefore, wages schemes need to be formulated to reply to such external uncertainnesss, and besides be flexible ( if it is non already so ) sufficiency to suit different pay strategies and degrees when required.5.2.
4 Internal versus External comparingAs reward systems are cardinal to engaging, retaining and developing employees, it is of import for a company to benchmark its wages policies against the external and internal environment. Hence, it is of import for companies to understand the logic behind market rates of wage and benefit and to cognize where and how to roll up informations required to carry on wage and benefits studies. These studies are frequently conducted so that companies are able to trust on the information to do accommodations to current wage and benefit rates, therefore remaining competitory in their wage and benefit policies. Companies should besides be able to show informations in a meaningful mode so that proper analysis can take topographic point.Job evaluaton ( JE ) is defined as a systematic procress by which comparative worth of occupations are determined so as to set up which occupations will be paid more over others in the administration ( Sherman et al. , 1998 ) .
The cardinal characteristics of JE are:A procedure which compares the relationships between occupations based on demand placed on employees.A procedure of opinion made by understanding of occupation descriptions and functions required to execute the occupation.A procedure of analysis after bring forthing point factors from opinions, to enable occupation ranking.
A procedure of structuring whereby occupation descriptions are formulated, job resolution, placing cardinal factors equivalent to occupation cognition, and more. Mark preparation besides takes topographic point to set up ranking, edifice pay constructions and make job-grading systems.The of import determinations to do in a JE are the choice of appropriate factors and their degrees, every bit good as how value of factors will be expressed.5.
2.5 Centralized versus de-centralised wagesAdministrations frequently have to fight to make up one’s mind if reward systems should be managed in a centralized or de-centralised mode. Centralised controlling is tight and normally means a standardized rate of pay increase. This may do employees to be less motivated and advanced in their part which becomes unhealthy for the company, this holds true for employees who belong to a concern unit selling a varied figure of merchandises and services. In this instance, it might be better holding a de-centralised control of wagess system and empower directors with discretional authorization to honor employees consequently, therefore hiking morale.5.
2.6 Degree of Pay HierarchyPay hierarchies exists in administrations and wages systems are dependent on them to a big extent. Pay hierarchies show the distinguishable difference in power and frequently reflect calling patterned advance.
However, administrations are bit by bit traveling off from such distinguishable hierarchies in wage systems by explicating pay constructions that encourages pay convergence and chances for increase. Graded pay constructions are normally used and though non all are precisely the same, they portion common characteristics such as:A salary class allocated to a occupation based on an person ‘s part, the labor market and the grade of complexness nowadays in a occupation.Salary sets or class in which employees belong to and hold to derive publicity in order to come on on to a higher salary set. Each set consists of at least minimal entry point, market or mid-point and a maximal point that employees can accomplish.Salary sets are associated with each other ; normally the maximal point of a get downing salary set is the beginning of the following salary set. The grade of convergence will hold to be determined by the administration.As employees move up along the set, administrations will hold to make up one’s mind if employees move up to fixed points along the sets or should employees be allowed to jump certain points and advancement at a faster rate alternatively.
5.2.7 Reward MixAlthough wage is frequently identified to be the cardinal ingredient in a wages mix, other benefits such as free one-year wellness showing, pension strategies, certified-skill ascents, usage of company vehicles, etc, are merely as utile in honoring employees. When making a wages mix, the challenge for companies is to place the strategic grounds for holding each benefit in the wages mix and their costs to the company.5.
2.8 Process IssuesIn the treatment of procedure issues, the 1st strategic issue to be considered is communicating and transparence. As pass oning wage aims to employees clearly is of import in accomplishing positive human resource consequences, the bing civilization of companies normally decides how unfastened the duologues are.
Traditional companies adopt a closed system and maintain salary scopes unknown for intents of wage reappraisal. Other companies with unfastened systems frequently publicise the salary construction and standards for which salary increase can happen. Open systems tend to instil assurance and equity into employees as decision-making becomes more crystalline and standards are made known.
The 2nd strategic issue concerns with employees ‘ grade of engagement in wage determinations. A company taking to accomplish a team-based operating civilization and high employee engagement in all facet of human resource direction should see leting employees to be involved in finding of occupation wages excessively. Companies following close-based systems normally applies HR policies onto its employees and finally, companies have to make up one’s mind whether leveraging extremely on employees ‘ trust and committedness or otherwise, is more suitable to the company ‘s civilization.5.2.
9 Reward Systems – consequences/integrationAs HR objectives alteration over clip, so should honor aims because wagess should be integrated into HR systems. And if the aims are inline, so the integrating between wagess and HR systems will function good to do a positive impact on employees who in bend corsets committed to churn out more positive parts for the company.