Final Project HR

STRATEGIC ANALYSIS

&

SWOT ANALYSIS

OF

STANDARD CHARTERED BANK

PAKISTAN LTD.

ABSTRACT/ EXECUTIVE SUMMARY

In this study we analyze the strategic analysis and SWOT

analysis of human resource management system implemented in

Standard chartered Bank Pakistan ltd. Standard chartered bank

is the multinational bank operating in Pakistan. After the

acquisition of union bank it has become one of the largest

multinational banks operating in Pakistan. The strategic

analysis of standard chartered human resource system gives us

detailed information about its employment practices,

performance management, compensation and benefits, health

safety and security which the standard chartered is offering to

its employees. Especially after the acquisition of the Union

Bank Ltd the Human Resource department of Standard Chartered

Bank is a question mark for there management as they have to

merge the two giant structures of HR of both of the bank to

one. The SWOT analysis of standard chartered tells us areas

where the standard chartered is strong in dealing human

resource, where it is facing weaknesses, what are the

opportunities for it and what are the threats coming in its

way. After this detailed study one can easily understand what

sort of human resource management system is prevailing in

standard chartered bank, about its effectiveness, what are the

flaws and how they can be overcome? This study also gives us

the information about the tools and measures used to weld the

leakages in the pipe of the Human Resource Management System of

the Standard Chartered Bank and the efficiency and output of

those tools which can easily be determined by having a look on

the change occurs before and after the application of these

tools.

TABLE OF CONTENTS

1.INTRODUCTION 4

1.1 Problem Statement 41.2 Objectives of the Study 41.3 Scope & Limitations 41.4 Research Methodology

2.LITERATURE REVIEW 4

3.INTDUSTRY OVERVIEW/ INDUSTRIAL ANALYSIS 5

4.ORGANIZATIONAL OVERVIEW 8

2.1 MANAGEMENT PEOPLE 92.2 SCB VISION & MISSION 142.3 ORGANIZATIONAL BACKGROUND 152.4 STANDARD CHARTERED VALUES 262.5 STANDARD CHARTERED BUSINESS 34

5.IDENTIFICATION OF ISSUES 38

5.1 STRATEGIC ANALYSIS 385.2 BASIC EMPLOYMENT PRACTICES 425.3 EMPLOYEE CAREER DEVELOPMENT 495.4 COMPENSATION AND BENEFITS 515.5 PERFORMANCE MANAGEMENT 535.6 SEPARATION FROM THE COMPANY 545.7 HEALTH SAFETY AND SECURITY 555.8 SWOT ANALYSIS 57

6.POSSIBLE OPTIONS/ ALTERNATIVES 60

7.RECOMMENDATION & ACTION PLAN 61

8.REFERENCES 64

CHAPTER-1:“INTORDUCTION”

1.1 PROBLEM STATEMENT:

Identify the flaws in the strategies followed by the Human

Resource Department of the Standard Chartered Bank through

strategic and SWOT Analysis.

1.2 OBJECTIVES OF THE STUDY:

The objective or the purpose of this study is to analyze the

strategies which the Human Resource Department of the Standard

Chartered Bank has applied for their human resource and SWOT

Analysis of this HR system that whether this HR system is

effective or not and what are the difficulties they are facing

in managing their human resource. After the precise study we

will find the flaws and problems exists in their HR system and

what are the solutions of those problems and what are tools

that will be used to overcome these flaws and problem.

1.3 SCOPE AND LIMITATIONS:

After a detailed study and the identification of the problem we

will be able to design an action plan or strategy, which will

guide us how to resolve the problem or how to functionalize

that strategy in that problem area in order to get the desired

output. The scope of this study will be in the form of the

positive result in the Human Resource Management System after

the implementation of this action plan. By positive result we

mean the difference in Performance management, career

development, basic employment practices, compensation and

benefits, health safety and security and employee retention

before and after the implementation of that action plan which

will ultimately result in the better output or better

productivity of the company. And if we fail to implement that

action plan the level of de-motivation will increase in

employees, their performance will be below average, employee

retention will be decreased and because of all this the

productivity of the company will suffer.

As we know services are a growing industry of Pakistan and many

firms are striving to deliver value added services to the

customers. In this regard banks are continuously focusing

towards improving their services. Similar is the case with

Standard Chartered Bank. This Bank has evolved tremendously

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

leading banks in Pakistan.

Keeping this in view the study has been undertaken to identify

the strategies and plans of the Bank and to identify the

methods adopted by the Bank to train and motivate their people

and work force.

1.4 RESEARCH METHADOLOGY:

The information related to the project has been collected from

the Standard Chartered Bank, Islamabad Branch. The methodology

adopted is as follows:

Collection of data by conducting interviews of

officials of the Bank

Frequent visits

Internet Search

Study of Bank’s Employee induction booklet.

A comprehensive study of the literature has been carried out to

see the factors that help in achieving a competitive advantage

in a dynamic banking environment.

CHAPTER – 2

“LITERATURE REVIEW”

Human resources management includes a variety of activities ,

and among them is deciding what staffing needs an organization

has and whether to use independent contractors or hire

employees to fill these needs , recruiting and training the

best employees , ensuring they are high performers , dealing

with performance issues and ensuring the personnel and

management practices conforms to various regulations.

Activities also include managing their approach to employee

benefits and compensation, employee record and personnel

policies.

HRM practices have shown to be valuable to any company’s

success. Thus to be successful in a global market place, the

challenge for all businesses regardless of size is to invest in

human resources. They need to select and retain talented

employees, undertake employee training and development programs

and dismantle traditional bureaucratic structures that limit

employee’s ability to be innovative and creative.

The commonly practices HR activities include the following:

HR Planning

Recruiting

Selection

Training and Development

Compensation

Performance Management

Employee Relations

World-class organization use performance measurement systems to

determine whether they are fulfilling their vision and meeting

their customer-focused strategic goals. Leading-edge

organizations use performance measurement to gain insight into,

and make judgments about , the effectiveness and efficiency of

their programs , processes , and people. These best-in-class

organization decide on what indicators they will use the

measure their progress in meeting strategic goals and

objectives, gather and analyze performance data and then use

those data to drive improvements in their organization and

successfully translate strategy into action.

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

Resource Management information is to help set agree-upon

performance goals, allocate and prioritize resources, inform

managers to either confirm or change current policy or program

directions to meet those goals , and report on the success in

meeting those goals.

CHAPTER - 3

“INTUSTRY OVERVIEW/ INDUSTRIAL ANALYSIS”

Beside Standard Chartered Bank there are lots of multinational

and local banks exists in the market that have different Human

Resource Management Systems implemented. The list comprises of:

1- Citibank

2- Royal Bank of Scotland

3- HSBC

4- Barclays

5- HBL

6- UBL

7- Allied Bank

8- Soneri Bank

9- Askari Bank

10- JS Bank

11- Faysal Bank

12- NIB Bank

13- The Bank of Khyber

14- The Bank of Punjab

All of these banks have different HRM Systems implemented but

none of them matches with the Standard Chartered Bank HRM

System. The common thing in all of the above listed banks is

that they have 2 types of HRM Systems, one is Bank Contract and

the other is Outsource Contract, 50% to 60% employees of these

banks are on outsource contracts. These outsource contracts

have totally different structures than the Bank contract

regarding the compensation and benefits, performance

management, health safety and security and salary and wages. So

there is a gap between the outsourced employees and the bank

contract employees which results in lack of coordination

between the two different contract employees. Some of the

outsource companies are:

1- HRM

2- Pioneer Contract Services

3- Professional Employers

4- United HR Services

By having an overview of these HR systems implemented in the

market Standard Chartered Bank has designed its own HR system

which is different from all these HR systems. This Human

Resource Management System will be discussed in the Strategic

Analysis Section.

CHAPTER - 4

“ORGANIZATIONAL OVERVIEW”

MESSAGE FROM BADAR KAZMI (CEO)

First of all a warm welcome to Standard Chartered Bank Pakistan

(Pvt) Ltd. No matter where in the company you work, you have a

real part to play in helping us achieve our goals and

ambitions. Our aspiration is to be the most productive and best

managed sales force in Pakistan.

We want to:

Offer outstanding customer service, not simply to our

external customers but also to our internal colleagues.

Be a place where innovation and creativity becomes part of

our everyday behavior.

Be a company where you are able to fulfill your potential

and personal aspirations, not only in the office, but also

by participating in the communities where we live and

work.

As you get to know the team in which you work and the company

you have joined, I hope you will quickly start to feel part of

the Standard Chartered Group. All efforts invested in

understanding the full potential of your role and how each of

you can significantly contribute towards the growth of the

company and ultimately yourselves will be an investment worth

every bit of your time.

This company has been formed through the efforts and hard work

of a diverse group of individuals, who have been passionate

towards consumer sales and also believe that every individual

who contributes to our growth deserves to be respected and

taken care of. My sincere gratitude to all of them.

Welcome to Standard Chartered Bank Pakistan (Pvt) Ltd.

Badar KazmiCEOStandard Chartered Bank Pakistan (Pvt) Ltd.

2.1 MANAGEMENT PEOPLE

CHAIRMAN

Mervyn Davies CBE

EXECUTIVE DIRECTORS

Peter Sands Mike DeNoma

Richard Meddings Gareth Bullock

NON-EXECUTIVE DIRECTORS

John Peace Sir CK Chow

Jamie Dundas Val Gooding

Rudy Markham Ruth Markland

Sunil Mittal Paul Skinner

Oliver Stocken Lord Turner

EXECUTIVES

Afaq Khan Gerard Lyons

Jaspal Singh Bindra Mike Rees

Peter Flavel Tim Miller

MESSAGE FROM BOARD OF DIRECTORS

Welcome to Standard Chartered Bank Pakistan (Pvt) Ltd. Our

vision is to become the “Most Productive and Best Managed Sales

Force in Pakistan” and today you have just become the part of

this vision.

The formation of Standard Chartered Bank is an essential step

towards realizing our vision and an essential part of the

Standard Chartered Group’s strategic intent of “Leading the way

in Asia, Africa and the Middle East”.

Price Solution Pakistan is a Direct Sales Subsidiary (DSS),

wholly owned by Stan Chart Nominees Limited, a Standard

Chartered Group company. We are the first and only organization

in the Consumer Banking industry of Pakistan to undertake this

innovative approach of Consumer Banking Sales.

We aim to:

Outserve our customers with a highly responsive, engaged

and professional sales force and a high customer service

orientation.

Provide our staff with an emerging and challenging work

environment with opportunities for professional and

personal growth.

Provide our staff and opportunity to hone their skills and

talents both through the guidance of experienced managers.

Introduce compensation and benefit structures to foster a

culture of high performance.

Introduce a more disciplined and professional form of

sales with strong emphasis on controls and governance.

We have come a long way in our journey towards becoming the

best managed sales force in the country. Now its time for you

to join us in this journey. You are all part of a revolution

that will define the standards for consumer banking sales in

the coming years. We will attain our vision – hand in hand.

Good Luck!

STANDARD CHARTERED’S VISION

THE WORLD’S BEST INTERNATIONAL BANK

LEADING THE WAY IN ASIA, AFRICA AND THE MIDDLE EAST

STANDARD CHARTERED’S MISSION

TO BE THE “RIGHT PARTNER”

2.3 ORGANISTAIONAL BACKGROUND

Standard Chartered PLC

Type Public

Founded 1852

Headquarters London, United Kingdom

Key peopleE. Mervyn Davies CBE, Chairman, Peter Sands,

Chief Executive

Industry Banking

Products Financial Services

Revenue $13.0 billion USD (2005)

Operating

income$8.620 billion USD (2006)

Net income $2.4 billion USD (2006)

Employees Nearly 60,000 (2007)

Website www.standardchartered.com

Standard Chartered Bank (LSE: STAN, SEHK: 2888) is a

British bank headquartered in London with operations in

more than fifty countries. It operates a network of over

1,600 branches (including subsidiaries, associates and

joint ventures) and employs almost 56,000 people.

Despite its British base it has few customers in the

United Kingdom and 90% of its profits come from the Asia

Pacific Region, South Asia, the Middle East and Africa.

The bank's history is entwined with the development of the

British Empire its operations lie predominantly in former

British colonies, though over the past two decades it has

expanded into countries that have historically had little

British influence. It aims to provide a safe regulatory

bridge between these developing economies.

It now focuses on consumer, corporate and institutional

banking, and on the provision of treasury services – areas

in which the Group had particular strength and expertise.

Standard Chartered is listed on the London Stock Exchange

and the Hong Kong Stock Exchange and is among the top 20

constituent members of the FTSE 100 Index.

History

The Standard Chartered Group was formed in 1969 through a

merger of two banks: The Standard Bank of South Africa

founded in 1863, and the Chartered Bank of India,

Australia and China, founded in 1853.

As its operations came under threat from nationalization

programs in the countries in which it was present in the

1970s, the bank sought expansion in developed countries,

particularly the USA.

It also proposed a takeover of The Royal Bank of Scotland

Group, which would have given it a substantial base in its

home country, but this was prevented by a counter-bid from

the HSBC and then blocked by competition authorities in

1981. When a hostile takeover bid was made for the Group

by Lloyds Bank in 1986 this was successfully defeated.

After this, Standard Chartered entered a period of change.

The bank made provisions against third world debt exposure

and loans to corporations and entrepreneurs who could not

meet their commitments. It then began a series of

divestments as it sought to re-focus itself on emerging

markets.

It divested its stake in the Standard Bank of South Africa

in 1987 in response to anti-apartheid pressure and today

that bank is one of its major competitors in Africa.

In 2000, Standard Chartered acquired Grindlays Bank from

ANZ Bank. The move caused some overlap in operations, for

instance, giving it a second banking license in Qatar and

an additional four branches in Bahrain. It sold both.

Local investors bought Grindlays Bahrain and renamed it

Commercial Bank of Bahrain. However, in the UAE Standard

Chartered integrated the Grindlays' branches into its

existing operation there.

Grindlays also had branches in areas Standard Chartered

didn't want. For instance, rather than adding the

Palestinian territories to the list of places in which it

did business, Standard Chartered chose to close Grindlays’

Nablus and Ramallah branches; it did, however, keep the

branch in East Jerusalem. In Greece, Standard Chartered

sold Grindlays' Athens and Pireaus branches to Aspis Bank.

The move's main benefits were an increased presence in

private banking and a rapid expansion in India and

Pakistan. Standard Chartered retained Grindlays' private

banking operations in London and Luxembourg and the

subsidiary in Jersey, all of which it integrated into its

own private bank. This now serves high net worth customers

in Hong Kong,Dubai and Johannesburg under the name

Standard Chartered Grindlays Offshore Financial Services.

It did, however, sell the Geneva branch and private

banking operation to Prudential-Bache International.

In India, Standard Chartered integrated most of Grindlays'

operations, making Standard Chartered the largest foreign

bank in the country, despite Standard Chartered having cut

some branches and having reduced the staff from 5500 to

3500 people. Among the branch reductions was the sale in

2002 of Grindlays' branch in Srinagar to Jammu and Kashmir

Bank and its Shimla and Darjeeling branches to ICICI Bank.

In Pakistan Standard Chartered merged in Grindlays'

operations, making Standard Chartered not only the largest

foreign bank in the country, but the only one with

branches in all four provinces.

Standard Chartered in The Americas

1968 Standard Chartered opened a representative

office in México City.

1979 The bank opened representative offices in Sao

Paulo, Brazil, and Lima, Peru.

1983 The bank opened a representative office in

Caracas, Venezuela.

1991 The bank opened a second representative office

in Mexico, this one in Monterey, in the north.

1995 The bank opened a representative office in

Bogotá, Colombia.

1996 The bank opened a representative office in

Buenos Aires, Argentina.

1998 Standard Chartered purchased Banco Exterior de

los Andes y de España (Banco Extebandes) in Colombia

and Peru.

2004 Standard Chartered closed its Colombian and

Peruvian subsidiaries and retained its representative

offices in both countries

Recent Strategic Alliances and Acquisitions

On 15th April 2005, the bank acquired Korea First Bank,

beating HSBC in the bid. Since then the bank has rebranded

the branches as SC First Bank.

Standard Chartered completed its integration between

Standard Chartered Bank Thailand and Standard Chartered

Nakornthon Bank in October. It also formed strategic

alliances with Fleming Family & Partners to expand private

wealth management in Asia and the Middle East, and

acquired stakes in ACB Vietnam, Travelex, American Express

Bank in Bangladesh and Bohai Bank in China.

On 9th August 2006 Standard Chartered announced that it

had acquired an 81% shareholding in the Union Bank of

Pakistan in a deal worth $415 million. This represents the

first acquisition by a foreign firm of a Pakistani bank

and once the merger is complete will make Standard

Chartered Pakistan's sixth largest bank.

On 22 October, 2006 Standard Chartered announced that it

has received tenders for more than 51 per cent of the

issued share capital of Hsinchu International Bank

(“Hsinchu”). On completion of the offer, Standard

Chartered will have majority ownership of Hsinchu,

Taiwan’s seventh largest private sector bank by loans and

deposits as at 30 June, 2006.

On Monday May 28, Standard Chartered is in final talks to

buy a 49 percent stake in an Indian brokerage firm (UTI

Securities) for 1.4 billion rupee (or around £17 million)

and wanted to eventually increase this stake to 70%

2007[1].

Its management has not ruled out further acquisitions.

SCB Pakistan

On August 1, 2000 Standard Chartered acquired Grindlays

Bank and in July 2001 all 15 branches of Grindlays and 6

of Standard Chartered moved to a single Technology

Framework. On December 1, 2002, Grindlays was amalgamated

with Standard Chartered. "Our commitment to the country is

absolute. The acquisition of Grindlays, a bank that

enjoyed an equally impressive history in the country, is

adequate manifestation of such commitment. Grindlays

provided us the penetration and scale needed for market

dominance. We are now the largest foreign bank in Pakistan

with branches in all the provinces of the country. No

other foreign bank can match this infrastructure." Badar

Kazmi, Chief Executive Officer, Standard Chartered

Pakistan. The Bank opened two new branches, 1 each in

Lahore and Islamabad, the only foreign bank to do so in

2002. Today it operates through a network of 21 online

branches and 25 ATMs, the largest network provided by any

foreign bank in Pakistan giving its customers a distinct

edge over competition enabling access to accounts from

anywhere in Pakistan.

In Pakistan, Standard Chartered's operations comprise

Standard Chartered Bank and First Grindlays Modaraba.

Focusing on both Consumer and Wholesale banking customers,

the bank employs 624 people locally across 8 cities and

caters to over 150,000 branch banking and 150,000 credit

card customers.

Position today

Today the bank is a leading player throughout the

developing world. Standard Chartered Bank is one of the

three banks issuing banknotes for Hong Kong, the other two

being the Bank of China (Hong Kong) and The Hongkong and

Shanghai Banking Corporation.

The Pakistan Credit Rating Agency (PACRA) has assigned a

long-term rating of “AAA” (Triple A) and a short-term

rating of “A1+” (A One Plus) to Standard Chartered Bank

(Pakistan) Limited (SCBPL). The bank’s three listed,

subordinated TFCs are also assigned “AAA” rating. These

ratings denote the lowest expectation of credit risk

emanating from an exceptionally strong capacity for timely

payment of financial commitments. The ratings remain

subject to a formal review by PACRA on release of audited

financial statements for the year 2006.

The ratings reflect the bank’s sound financial profile, a

leading market position, robust risk management systems,

and a quality management team. At the same time, PACRA

recognizes the financial strength and international

profile of the parent – Standard Chartered Bank (SCB) – in

the banking industry and continuing strong support to

SCBPL. The intrinsic value of group support is to be seen

in the context of the strong international rating of SCB.

The management has devised a comprehensive strategy and,

while capitalizing on the strength of the combined entity,

intends to further improve its market standing through

sustained growth in the targeted segments.

Going forward, the management aims to position the bank

for sustained growth in the fast changing market dynamics

with strong emphasis on proactive risk management. In this

regard, it has plans to further expand its outreach,

especially focusing on non-metropolitan cities. Although

the business strategy of the bank focuses on relatively

high-growth segments, this is well in line with the

business model of the Standard Chartered Group, which

primarily operates in these segments in more than 50

countries in Asia Pacific Region, South Asia, the Middle

East, and Africa. The management is expected to draw

substantial benefits from the cumulative expertise and

technical resources of the group in managing the

associated risks.

SCBPL has strong capitalization levels. Meanwhile, the

asset quality is robust, evidenced by low NPLs to gross

finances ratio. The risk management framework, service

standards, support systems and processes employed by the

bank are of high quality, common to other group entities.

The group exercises a high degree of supervision and

provides support through an established structured

mechanism. Given the increasing importance of the

operations in Pakistan in the overall business of the

Group, the degree of support available to the bank is

expected to be substantially high.

About the bank: SCBPL, a majority owned subsidiary (around

99%) of Standard Chartered Bank (SCB), is in the process

of being listed on all stock exchanges in Pakistan. SCB,

incorporated in the United Kingdom, has an international

rating of “A+” by Standard & Poor’s and Fitch. Subsequent

to merger of Union Bank Limited and Standard Chartered

Bank (Pakistan) Branches, with and into SCBPL, effective

December 30, 2006, it has emerged as the sixth largest

bank in Pakistan in terms of total assets. The bank has a

network of 115 branches across 22 cities. The BOD of SCBPL

mainly comprises personnel holding key positions in

Standard Chartered Group. The bank’s CEO has an extensive

local and international banking experience. He has been

with the group since 1991, and has held various senior

positions, including the CEO of Pakistan’s operations

since July 2003. Prior to the merger, SCB’s Pakistan

Operations has developed a strong foothold in consumer and

wholesale banking, and offers a wide range of products and

services. Union Bank’s niche in Consumer and SMEs segments

synchronize well with the overall business model of the

new entity. SCBPL has made appreciable progress towards

integration of the two entities in a quick time.

Principles & Values

At Standard Chartered our success is built on teamwork,

partnership and the diversity of our people. At the heart

of our values lie diversity and inclusion. They are a

fundamental part of our culture, and constitute a long-

term priority in our aim to become the world's best

international bank. Today we employ over 65,000 people,

representing more than 100 nationalities, and you'll find

more than 50 nationalities among our 500 most senior

leaders. We believe this diversity helps to fuel

creativity and innovation, supporting the development of

exciting new products and services for our customers

worldwide.

2.4 STANDARD CHARTERED,S VALUES

Our values are the heart and soul of our brand.

Courageous: Being

courageous is about doing

what is right. Often the

task may seem insurmountable

but with courage and

tenacity, the odds can be

overcome. A truly courageous

act both inspires and builds

character.

Responsive: How we respond to

our customers will influence their

belief in our commitment to them.

A proactive response is often

unexpected and more effective for

that. It clearly demonstrates our

willingness to go beyond the

unexpected.

International: As a member of

the global village we view the

world from the widest perspective.

We are all global citizens and

believe the world is full of new

opportunities and exciting

possibilities. We also deliver

world class products and services.

Creative: Creativity belongs to those of us who are excited by challenges and engage them

with fresh thinking and an open mind. Creative

thinkers are not limited by convention but

allow their minds to soar beyond predictable

solutions.

Trustworthy: Trust is the

foundation of every successful

relationship. We trust because we

believe in the sincerity of the

promise. Building trust can take

forever. Losing trust takes only

moments.

Hassan Arif UNIVERSITY OF LAHORE

32

SERVICE EXCELLENCE

The Bank's success has been built on its belief in its

ability to support customers and the communities in which it

serves. According to Badar Kazmi, Chief Executive Officer,

Standard Chartered Pakistan, "It is not enough to introduce

new products and services unless we listen to our customers

and understand what they want. If we are to be the 'right

partner', we must help our customers to realize their goals

and aspirations. We recognize that by being creative we can

make a real difference to the way we do business. We must be

flexible and innovative and challenge accepted conventions

and processes." It is exactly this belief which has propelled

Standard Chartered to the market leader slot in Pakistan's

financial sector. By continuously assessing customer needs,

the Bank has been able to modify existing and develop

innovative new products. For the individual customer,

Standard Chartered offers a most extensive portfolio of

financial products and services ranging from basic liability

products catering to different needs such as 'Flex' and 'High

Yield' accounts, to value-added loan products such as auto,

personal loans, to convenience based solutions such as credit

cards, 24 hour phone banking services and e-statements. For

its strong corporate base, Standard Chartered offers world

class Cash Management related services and technologically

superior products such as electronic banking, premium service

banking, national collection services and billpay, a product

which provides a convenient and flexible bill payment option

for all, including non-customers.

Hassan Arif UNIVERSITY OF LAHORE

33

COMMUNITY SERVICE

Standard Chartered recognizes its responsibilities to its

staff and to the communities in which it operates. The Bank

provides opportunities to its people so that they can fulfill

their true potential. As such, training and development

programmes as well as secondments and transfers to network

countries, all reflect a truly international and

multicultural organization that Standard Chartered is.

Leading the way in Asia, Africa and Middle East, operating in

over 50 of the world's developing economies, Standard

Chartered believes that with the appropriate policies and

practices in place it can be a legitimate influence for good.

In Pakistan, the Bank has an active community programme in

place that consists of providing support to charities in need

in the form of donations of both cash and kind. Over the

years, the Bank has been providing support to both local and

international organizations such as The Kidney Centre, SOS

Children’s' Villages of Pakistan, LRBT, Marie Adelaide

Leprosy Centre, Lady Dufferin Hospital, Shaukat Khanum

Memorial Trust and more.

"Our aim is to be the partner of choice, the right partner -

as a provider of world class financial products and services;

as an active member of the communities in which we operate;

as an institution taking courageous steps to ensure that all

our stakeholders can benefit from the true potential of this

great Bank." Badar Kazmi, Chief Executive Officer, Standard

Chartered Pakistan.

Hassan Arif UNIVERSITY OF LAHORE

34

Sponsorship

Committed to the long-term development of the communities in

which we operate, Standard Chartered sponsors a wide range of

inspirational people, projects and events.

THE INNOVATION CENTRE

The Innovation Centre develops commercially viable innovation

projects, opens up access to faculty and student intellectual

capital for the bank, and fosters close interactions between

SMU’s project teams and our business,” says Adam Spencer,

Standard Chartered’s senior manager responsible for System

Development, Shared Distribution and Innovation. “Through

working with iLab, students gain experience and exposure to a

corporate environment where they can learn how to develop and

manage intellectual property,” he adds. About 20 projects

have been completed to date with approximately five project

prototypes being reviewed for production deployment.

From the students’ perspective, the iLab provides a conducive

environment in which to sharpen up their commercial skills

and respond to real-life business scenarios and challenges.

One such challenge was to investigate the viability of voice

biometrics authentication technology at the request of

Standard Chartered’s Consumer Banking CEO Mike DeNoma.

According to Spencer, “We needed to find out how voice

biometrics technology could be used in a more innovative

fashion to seamlessly authenticate a customer when he or she

is talking to a relationship manager.”

Hassan Arif UNIVERSITY OF LAHORE

35

Technology and the Customer Experience

In the world of banking, security of transactions and

satisfactory customer experience are both key. “Our

requirement was to make the user experience as easy as

possible with an innovative feature that none of the

competition already has,” he explains.

In other words, the bank’s priority is to maximize

convenience for both clients and their relationship managers

without compromising on security. In many banks, clients who

provide instructions for certain types of transactions over

the phone may be required to fax a follow-up letter of

authorization to their relationship managers as an additional

precaution against fraud. Standard Chartered was seeking an

innovative new authorization system which would make this

process much simpler.

A five-member SMU team, comprising multinational students

from Singapore, Indonesia, Myanmar and India, responded to

the bank’s challenge. Calling themselves “Team Ascendance”,

the group worked for eight months to research technology

options, analyze the bank’s existing business processes,

build a software prototype and integrate it seamlessly into

the bank’s current system. According to team member Si Thu

Win, “Current authentication processes at some banks are not

very convenient especially if the customer is out of the

office, and transactions are sometimes cut short as well. Our

aim was to smooth out the process by enabling clients to be

Hassan Arif UNIVERSITY OF LAHORE

36

authenticated transparently, that is, without having to use

predefined passwords.”

In theory, the project sounded straightforward enough but, in

reality, things were not that simple. At the outset, the team

had to deal with some doubt and uncertainty, and progress was

slow. “We were dealing with an innovation after all” says Si

Thu Win. “From the business side, the bank knew it wanted to

use the technology, but didn’t know its capability in detail

or exactly how it would be integrated into their processes.

From the technology side, the software vendors did not

understand how the bank’s business works, and the vendors

didn’t know what we were doing,” he adds. Convincing vendors

across the globe to cooperate with a student team required

strong persuasion skills and assertiveness, and support from

the bank as well.

Building the prototype itself presented other difficulties.

“The different software we used to build the prototype all

spoke different languages, and we had to enable the

technologies to communicate with each other,” says team

member Michael Ricky Hosea. While building the prototype, the

team also took the initiative to provide feedback to Standard

Chartered Bank on the actual business processes involved. For

team member Damon Widjaja, yet another challenge was trying

to put themselves in the customers’ shoes. “For the bank, the

client is king. Even if the technology application is very

sophisticated, it’s of no value if the customer finds it too

difficult to use,” he explains.

Hassan Arif UNIVERSITY OF LAHORE

37

Standard Chartered Bank

Wholesale Bank

Finance & Admin

Support Services

Legal & Compliance

Human Resources

Global Markets

Client Relationships

C.R.

Service Delivery

External Affairs

Consumer Bank

Unsecured Loans

Secured Loans

Wealth Management

Shared Distribution

SMEAsset Management

IT&Service Delivery

Consumer Banking

C.R.

Info. Technology

Information Systems

Custodial Services

Six months into the project, the learning curve became

significantly steeper as the team worked to process large

amounts of information. Says Ng Woon Bock Keith, “At this

point, we started to work intensively, picked up speed and

went all the way up.” Help was available from the bank, team

supervisor graduate student Daniel Chong, and other iLab

staff who provided general direction and tips on how to

manage the bank’s expectations.

For instance, towards the final stages of the eight-month

long project, the student team unexpectedly encountered some

serious obstacles. In addition to technical problems, they

found that the frontline business users at Standard Chartered

Bank were not convinced the technology would benefit the

business process. After much discussion amongst the various

groups, a radical design change was made to the system so as

to add more value to the bank.

In the end, the prototype was well received. According to Ng,

“the prototype helped the bank verify if that was what they

really wanted.”  Adds Ericsson Chan, group head of Systems

Development at the bank: “The project embodied what

innovation is all about – the ability to bring a leading edge

technology into the business world.” Looking forward, Spencer

says that the iLab is putting additional focus this year on

deploying successful projects, such as voice biometrics, in

Standard Chartered Bank. For example, the bank’s lawyers are

looking into intellectual property issues relating to the new

business process while the priority banking department is

negotiating contracts with various vendors to implement the

software system.

Hassan Arif UNIVERSITY OF LAHORE

38

Standard Chartered Bank

Wholesale Bank

Finance & Admin

Support Services

Legal & Compliance

Human Resources

Global Markets

Client Relationships

C.R.

Service Delivery

External Affairs

Consumer Bank

Unsecured Loans

Secured Loans

Wealth Management

Shared Distribution

SMEAsset Management

IT&Service Delivery

Consumer Banking

C.R.

Info. Technology

Information Systems

Custodial Services

2.5 STANDARD CHARTERED’S BUSINESS

WHOLESALE BANK…

The Whole sale bank comprises of two areas:

Client Relationship

Global Markets

Client Relationship

Client Relationships provides:

Trade finance

Cash management

Lending services

Global Markets

Global Markets provides:

Foreign exchange,

Debt capital markets services

Hassan Arif UNIVERSITY OF LAHORE

39

Financial risk management

Interest rate management products

CONSUMER BANKING…

Shared Distribution

Offers a wide range of premium banking products and

services through the network of 115 branches in 22 cities

across the country. It has a global network of 1200 branches

in 56 countries

Wealth Management

Offers a complete and Comprehensive range of products

to fulfill customers investment & financial needs

Unsecured Loan

Our Unsecured Loans offers Credit Cards & Personal Loans

/ Ready Cash

Secured Loan

Our Secured Loan division offers Mortgage and Auto Loans

SME

SME offers Business power and Business Installments

Loans

Consumer Bank – Products

LIABILITY PRODUCTSHassan Arif

UNIVERSITY OF LAHORE

40

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

Hassan Arif UNIVERSITY OF LAHORE

41

Private Banks

29%

Foreign Banks

19%

Big 4 Local52%

NBP, UBL,

MCB, HBL

Personal Loan / Ready Cash

SME

o BIL (Business Installment Loan)

o BP (Business Power)

SHARE OF REVENUE (SCB VS FOREIGN BANKS):

Hassan Arif UNIVERSITY OF LAHORE

42

CHAPTER - 5

“IDENTIFICATION OF ISSUES”

5.1 STRATEGIC ANALYSIS

Strategic Intent

“Best Managed Sales Force in Pakistan”

FIGURE A-1

If we talk about the strategies followed by the Human

Resource department of Standard Chartered Bank we will find

out that their strategies are the most disciplined one in the

whole Banking Industry existing in Pakistan. From top level

Hassan Arif UNIVERSITY OF LAHORE

43

Changing the profile of Employees

Expanding the sales force

Compensation structures to drive right behavior

Using MIS’s to gain an insight

Providing proper career paths to Employee

High focus on Employee training

Formation of the DSS

For expansion, Sales Centers

Club Level Program, Team Building Sessions, Top Performer Events, Sales Conference, etc.

Employee Remuneration Guidelines

Formation of Sales BIU

Implementation of Global DSR Curriculum

ORMA framework, compliance to internal and external policies, audit calendar

Maintaining and strengthening our Sales Governance

management to grass root level, a properly planned human

resource management system prevails in standard chartered

bank.

5.1.1 Formation of DSS: The first step of their strategy

as shown in Figure A-1 is the formation of DSS, its stands

for Direct Sales Subsidiary, Standard Chartered has made its

own Direct Sales Subsidiary in order to change the profile of

their employees according to this every employee in the

standard chartered bank will be the permanent employee and

will be entitled to all those benefits and compensations that

a permanent employee is getting which in result not only

boost the morale of their employees but also motivates them

to work hard for their company which ultimately results in

higher productivity for the bank resulting handsome revenue

and profit for the bank.

5.1.2 Sales Expansion: Second step of their strategy

involves the expansion of their sales force, as the bank

stands on the strong roots of its sales force, standard

chartered has increased its sales force not only in number of

employees but also in increased productivity which gives

standard chartered sales force a name known as “Smart Sales”

5.1.3 Career Developments: Third step includes the

career development of their employees. Standard Chartered

Bank provides its employees a proper career path so that they

Hassan Arif UNIVERSITY OF LAHORE

44

become the gurus of their field. This process of career

development includes club level program, team building

sessions, top performer events, sales conference etc.

5.1.4 Compensation Structures: Standard Chartered has a

proper compensation structures to derive right behavior of

their employees. Not every employee in any organization work

for the position. Compensation plays a primary role in

employee remuneration guidelines and retention. It not only

makes an employee feel secure and good for the company but

also motivates him that he should give his company at least

equally which he is getting.

5.1.5 Management Information System: Management

Information System (MIS) has been introduced in the bank

which gives their top level management an insight of the

company and business which not only help them in their

decision making but also in making new strategic policies for

the bank. Managements Information System includes all the

details regarding the sales, profits, cost, expenditures,

productivity, targets etc.

5.1.6 Employee Training: Standard Chartered Bank pays

high focus on their employee training and for that they have

introduced their own Global Employee Training Curriculum.

This Curriculum includes introduction of the bank, compliance

and legal policies of the bank, sales strategy of the bank,

Hassan Arif UNIVERSITY OF LAHORE

45

organizational structure and role of each business unit and

define the key drivers of business performance. Every

employee must past this training test in order to get job in

the bank. These trainings are revised after regular intervals

so that their employees should have proper grip on the banks

strategy. This training results in high productivity of the

employees, reduction in customer complaints, increase in

retention of employees and implementation of global employee

curriculum. After every three months a training monitoring

MIS is reviewed which provides:

A training health check plan which helps in

tracking gaps and requirements for every employee.

Ensures an exception reporting and tracks all

product and compliance refreshers which are due for

each employee.

Accurate and timely reporting of new employee

training activity every month.

5.1.7 Maintaining and strengthening Sales

Governance: Standard Chartered has its own sales governance

policies which it has maintained for years and is

strengthening it day by day through employee sales governance

training. This includes ORMA frame work, compliance to

internal and external policies and audit. The bank doesn’t

not in any way compromise on its compliance and sales

governance. Sales governance includes the strategy for mis-

selling, mis-committment and mis-behavior of the employee

with customer.

Hassan Arif UNIVERSITY OF LAHORE

46

5.2 BASIC EMPLOYMENT PRACTICES

5.2.1 JOINING THE COMPANY:

DOCUMENTATION:

Upon joining the company, the employee will be required to

forward the following documents the Human Resources (HR)

department for completion of their record:

1. Updated resume/ C.V.

2. Resignation acceptance/ clearance letter and

salary slip from last employer (if applicable)

3. Experience certificates of all the previous

employments (if applicable).

4. Attested copies of all the educational

certificates/ transcripts

5. 5 passport size photographs

6. Photocopy of NTN certificate (if applicable)

7. attested copies of CNIC for :

Self

Spouse (if applicable)

Children (B-Form/ Birth certificate if below

18)

Hassan Arif UNIVERSITY OF LAHORE

47

All forms must also be filled and sent along with the joining

report. Any change at any time in personal information must

be intimated to HR department immediately so that the

employee’s record can be updated.

The HR department reserves the right to inspect the original

copies of all testimonial and records, and can ask the

employee to produce such at any point in time.

5.2.2 EMPLOYEE CODE GENERATION:

Every employee will be allotted a unique staff number. This

number is generated once the completed joining kit is

received by the payroll coordinator. An employee can see

their employee code on their first salary slip and on their

identity card.

5.2.3 ISSUANCE OF COMPANY CARD:

The company will issue a company identity card to the

employee, to be worn by the employee while on company

premises. If the card is lost, the matter should be reported

to HR department immediately and a duplicate card will be

issued within 5-7 working days.

5.2.4 BUSINESS CARDS:

The business card form will available as a part of the

joining kit. The form needs to be filled out by the employee

Hassan Arif UNIVERSITY OF LAHORE

48

and sent to HR for processing. It is compulsory that the

supervising manager and HR officer signs the form. It would

take 7 working days for the business card to be issued.

5.2.5 BANK ACCOUNT:

It is mandatory for all new joiners to open their bank

accounts with Standard Chartered Bank. Once HR receives the

filled account opening form (available in joining kit), they

will process the documents.

5.2.6 OTHER FORMALITIES:

There are other forms available in joining kit (Funds

Membership form, Nomination form, etc.) which the new joiner

is required to complete and send to HR.

5.2.7 PROBATIONARY PERIOD:

As a new employee, you will undergo a probationary period of

six months, commencing from the date of appointment /

joining. Your superior will assess your performance at the

end of this period. You will be advised in writing on one of

the following:

1. Satisfactory completion of the probation and

confirmation of employment with entitlement to full

benefits as applicable.

Hassan Arif UNIVERSITY OF LAHORE

49

2. Extension of probationary period if assessment

warrants upon recommendation from your supervisor.

3. Termination of employment.

5.2.8 CONFIRMATION SERVICES:

On successful completion of the probationary period and upon

confirmation of services, the employee will then be entitled

to the specified benefits depending on the management cadre.

Benefits include:

1. Provident Fund

2. Gratuity Fund

3. Hospitalization Insurance

4. Leave Entitlements

5. Group Life Insurance

6. ShareSave.

5.2.9 OUTSIDE EMPLOYMENT:

When you accept employment with the company, you can not take

up outside employment without the consent of the company.

5.2.10 KEEPING YOUR PERSONAL RECORDS UP-TO-DATE:

It is important to keep your personal records accurate and

up-to-date because this information will be used for the

administration of benefits and emergency notifications. You

Hassan Arif UNIVERSITY OF LAHORE

50

will be required to immediately notify the HR department of

any change in the following:

1. Legal name

2. Marital Status

3. Address and telephone number

4. Additional education qualification and other

attainments

5. New family members

6. Change of bank account number

7. Any other particulars

All record related to your employment will be treated in

confidence.

5.2.11 EMPLOYEE REFERRAL SCHEME – GO RECRUIT A BUDDY

GRAB is a buddy scheme. As per this scheme if you refer a

candidate and if the candidate is selected you become

eligible for a cash reward.

All you need to do is:

Recall a friend, neighbor, friend’s friend and

personal or business acquaintance.

Confirm the interest of the person whom you are

planning to refer.

Hassan Arif UNIVERSITY OF LAHORE

51

Send the referred resume to supervising manager and

area HR manager on their respective mails.

First sender gets the advantage if the same resume

has been referred by more than one person.

All referred candidates go through the regular

process of selection.

5.2.12 WORK SCHEDULE

WORKING HOURS:

Officer and managers at all Pakistan offices are expected to

work a total of 45 working hours a week. The working hours

are as below:

Office hours

Monday to Friday 9:00 am to 6:00 pm

Saturday 9:00 am to 2 pm

Lunch hours

Monday to Thursday 1:00 pm to 3:00 pm

Friday 1:00 pm to 2:30 pm

In some instances, staff may be asked to change their timings

in order to meet the operational needs of their department.

Staff may also be required to work outside their normal hours

depending upon workloads and the demands of their job role.

Employees in management of professional/ specialist roles are

expected to work the hours necessary to perform their

responsibilities without additional payment.

Hassan Arif UNIVERSITY OF LAHORE

52

5.2.12 ATTENDANCE AND PUNCTUALITY

Good attendance and punctuality is essential to efficient

running of our business. All employees are expected to

demonstrate a consistently good record in this area.

5.2.13 ABSENCES (OTHER THAN SICKNESS)

For any absence during working hours other than sickness or

unexpected causes, employees obtain their supervisor’s/

manager prior agreement. If any staff member is unable to

come to work for any unexpected reason – such as a domestic

emergency – they must inform their manager or department head

before or close to the normal starting time about the reason

for their absence. Normally, an employee will be required to

take their leave entitlement to cover this absence.

If an employee fails to report to work for more than two

consecutive workdays without informing their manager or

department head, their absences will be considered as absence

without official leave and will be cause for disciplinary

action, which may involved in dismissal.

5.2.14 PUBLIC HOLIDAYS:

Bank recognizes all public holidays as declared by the State

Bank of Pakistan as official holidays. All official holidays

will be specifically announced.

LEAVEHassan Arif

UNIVERSITY OF LAHORE

53

All permanent employees of bank, after confirmations, will be

eligible to apply for the following leave in a year:

Team Leaders 30 Leaves (calendar days)

Below Team Leaders 10 sick/ casual leaves (calendar days)

14 annual leaves (calendar days)

5.3 EMPLOYEE CAREER DEVELOPMENT

5.3.1 CAREER DEVELOPMENT:

The success of both the individual and the company depends

largely on effective placement, adequate training and the

fullest development of the individual’s abilities.

It is intended that everyone shall have the opportunity to

benefit from sound and adequate training both for the

employee’s present work, and for the future responsibilities

that he may undertake. On the job training is provided in all

cases. In Standard Chartered Bank, vocational, technical and

management training are also provided in accordance with the

need of the individual and the company.

5.3.2 IN HOUSE COURSES

Training needs are identified jointly by the department heads

and the training department. From the training needs

identified, the training department will develop a calendar

Hassan Arif UNIVERSITY OF LAHORE

54

of in house and external courses to be conducted for the

year.

The training department designs, organizes and conducts in-

house courses to support the company’s business plans/

objectives and the needs of the various departments. The

course schedules are communicated to the department heads.

5.3.3 EXTERNAL COURSES:

Where training needs are identified and not met by in-house

courses, employees will be sent for external courses

organized by external institutions. These courses are

selected based on the relevance of the subject matter to the

employee and his/ her work.

5.3.4 INDUCTION PROGRAM:

The training unit will conduct and induction program for new

employees. The aim of the program is to enable employees to

adjust and settle into their new workplace quickly. This

program will familiarize them with the company’s history;

corporate values, organization structure and consumer banking

products being sold.

5.3.5 TRAINING PROCESS:

After an employee has been hired, he or she has to undergo 5

day induction training. After successful completion of the

assessment, they have to go through a ‘buddy system’. After

Hassan Arif UNIVERSITY OF LAHORE

55

the employee is hired, the TL/RSM/NSM will send a list of all

the new recruits to sales training, who will then arrange for

induction training to be carried. After the training has been

carried out, a MIS of the successful employees will be sent

by sales training to sales BIU who will then issue the

employee their respective codes.

Based on the inductions and refresher trainings carried out,

a monthly training Monitoring MIS will be generated for each

product highlighting in detail all the trainings that each

employee has undergone and an exception report for missed

trainings.

5.3.6PROMOTION OPPORTUNITIES:

The company aims to provide numerous opportunities of

promotion and employees will be assigned to handle more

responsibilities on the basis of their record of sustained

performance and demonstrated ability. Due to consideration

will be given to existing employees for any promotion

opportunities arising within the company.

5.4 COMPENSATION AND BENEFITS

5.4.1 PROVIDENT FUND

All employees after serving the probation period, will be

eligible for provident fund (PF) under the provident fund

rules, both the employee and the company will make monthly

contribution @ 10% of the basic salary to PF. The

contributions are based on current legislation rates and Hassan Arif

UNIVERSITY OF LAHORE

56

shall be deducted from the salary as stated in the provident

Fund rules.

5.4.2 GRATUITY

All employees who resign/ retire after completion of 5 years

or more of continuous service (after confirmation) with price

solution will be eligible for gratuity as per the rules of

the gratuity act.

5.4.3 INSURANCE BENEFITS

The company offers various insurance policies to provide the

greater security for all employees. Hence it is important

that you update your personal records with Human resource as

and when required.

All employees are expected to report immediately to the

superior of any injury resulting from an accident. Employees

shall also report and dangerous occurrences regardless of any

injuries involved.

5.4.4 MEDICAL INSURANCE COVERAGE

As per your grade, you shall be covered by Group

Hospitalization Insurance policy with the prescribed limit

mentioned in the medical insurance policy that will be

provided to you.

Hassan Arif UNIVERSITY OF LAHORE

57

Coverage is only applicable where hospitalization is

recommended. In case of emergency, if you are going to a

hospital not in the panel list provided, then you are

required to submit all bills and receipts to the HR

department who will then forward it to the insurance company.

The amount will be reimbursed in accordance with the terms

and conditions stated in the hospitalization insurance plan.

5.5 PERFORMANCE MANAGEMENT

5.5.1 ANNUAL SALARY REVIEW

All employees are expected to deliver consistently on his/her

key performance indicators from month to month. The essence

of the performance management policy is growth linked to

productivity. Salary reviews will be conducted every year to

ensure that wages or salaries are equitable and competitive

and to reward for performance. Wage increase recommendations

would be based on individual and company performances. The

increment date for all employees shall be April 1st.

5.5.2 PERFORMANCE APPRAISAL

Based on the nature of the job performed, assessment

criteria will vary for sales and support staff at various

levels.

Hassan Arif UNIVERSITY OF LAHORE

58

Front line Sales Staff – For this category of sales

staff, assessment will take place utilizing ESAU

methodology. Supervising managers will be responsible

for assessing their sales staff against the ESAU

criteria for different products.

Senior Sales Staff – Performance for this category is

assessed mainly through Job Objectives (JOs). Evaluation

is carried out on a monthly, quarterly, half yearly and

yearly basis. Monthly and quarterly evaluation will be

done through sales battleground and half yearly and

yearly though performance of the NSMs is tracked and

rated on key variables such as sales numbers,

productivity, cost etc. additionally, evaluation for

Team Leaders (TL) and Regional Sales Managers (RSM) is

also carried out utilizing the ESAU methodology in

certain products.

Support Staff – Performance is measured and assessed

through the documented JOs for each support staff.

Assessment will be carried out through half yearly and

yearly performance appraisal cycle.

5.5.3 SALARY REVIEW

Annually – For all roles, salary review will be carried

out on an annual basis. The increments take place in

April and will be applicable to only those employees who

have been hired in or before September, that is, the

employee needs to be with the organization for at least

six months before he or she is eligible for a salary

review.

Hassan Arif UNIVERSITY OF LAHORE

59

5.6 SEPARATION FROM COMPANY

Separation could be done to voluntary or involuntary reasons.

A structured separation process ensures that exiting employee

leaves the organization as a good ambassador.

Supervising managers are required to ensure the following

formalities are completed at the time of exit:

1. Resignation Letter.

2. Exit Checklist

3. Handing over of ID card, Health Insurance card and

visiting card.

4. Any other documents or material in custody.

Exit check list and resignation letter to be handed over to

HR manager for processing settlements.

HR manager and supervising manager to conduct exit

interviews. Given the high attrition rate of the sales force

it may not be possible to have an exit interview with each

and every resignee.

5.6.1 RETIREMENT

An employee, who attains the age of 58 during his services,

retires from the organization.

5.7 HEALTH, SAFETY AND SECURITY

Hassan Arif UNIVERSITY OF LAHORE

60

5.7.1 NO SMOKING POLICY

In the interest of health and safety, Standard Chartered Bank

has a no – smoking policy in all its premises.

5.7.2 SECURITY ARRANGEMENTS

All employees are issued with an identity card and are

required to wear it while at work for security reasons,

employees are asked:

1. To show their identity card on entering any Standard

Chartered Bank premises without prompting.

2. Not to disclose digital access codes to unauthorized

people.

3. To meet visitors at reception and escort them to the

meeting venue and similarly escort them back to

reception following the meeting.

4. To report any suspicious vehicles or packages outside

Standard Chartered Bank premises.

5.7.3 CLEAR DESK POLICY

In order to safeguard the security of confidential and

sensitive data, bank operates a ‘clear desk’ policy. This

requires that:

1. Documents/ external media should not be left lying

around or unattended.

Hassan Arif UNIVERSITY OF LAHORE

61

2. Employees clear their desks of all documents/

external media at the end of each day.

3. Random checks of offices are carried out periodically

to identify potential breaches of security.

5.7.4 COMPUTER SECURITY

Computer passwords are one of the simplest but most effective

ways of securing computer based information. Passwords should

be changed at least monthly, and must not be disclosed to

others or stored with a workstation.

5.7.5 EVACUATION IN THE EVENT OF AN EMERGENCY

Employees will be advised of the evacuation plans for their

office premises by their manager (or nominated

representative) and should ensure they are familiar with the

same.

5.8 “SWOT ANALYSIS”

The Strength, Weakness, Opportunities and Threat Analysis of

the Standard chartered include all the strengths and weakness

they have in their Human resource department and how they

Hassan Arif UNIVERSITY OF LAHORE

62

respond to the opportunities and how they reshape or mould

themselves to the threats coming their way.

5.8.1 STRENGHT ANALYSIS:

If we analyze Standard Chartered Bank’s Human Resource

Department in context of strength they have a powerful HR

system operating which gives them less turnover and greater

employee retention. As compared to other banks operating in

the market, they all have hired recruiting agencies in order

to hire most of their sales people, which creates a lots of

complication for employee and for the organization itself and

also decreases the motivation factor in the employees as they

feel very unsecured about their jobs while they are serving

for the banks but actually not the employee of the bank.

Whereas in Standard Chartered Bank they have their own

subsidiary known as price solutions Pvt Ltd which comes under

the heading of Standard Chartered Group. All those sales

people, who in other banks are used to hired by third

parties, are hired through price solutions which gives them

job security as well as increase motivation in the employees

which ultimately result in higher productivity and employee

retention. Beside this it gives all the employees equal

compensation and benefits which the other employee (On Bank

Contract) are getting like Insurance, Gratuity, Provident

Fund, Hospitalization Cover etc.

5.8.2 WEAKNESS ANALYSIS:

With a so organized Human Resource Management System

implemented in Standard Chartered Bank it is very difficult

Hassan Arif UNIVERSITY OF LAHORE

63

to find weaknesses. The weak point which I found in the HR

system is that they ignore the fact that a good resource

should be utilized efficiently. No doubt they have to most

precious and credible human resource but unfortunately they

are wasting them by not utilizing them or by not getting

proper out put from them.

Another weak point which I found is that they focus more on

references in hiring an employee and does not go for the

competent persons in market.

One of the weak points is that they force their decisions on

their employee and does not care that whether their employee

likes it or not.

5.8.3 OPPORTUNITY ANALYSIS:

Opportunity analysis of Standard Chartered Human Resource

department discovers that they utilize the opportunities

coming their way very efficiently. They have a complete look

on the market and their eyes are searching for the

opportunities for the good resource. One of recent

opportunity utilization was that they took the Head of

National sales of Telenor by offering him 1 Million Rupees

per month to work for Standard Chartered Bank.

They are getting benefits by the new attracting offers by the

telecommunication companies and equip their staff with these

Hassan Arif UNIVERSITY OF LAHORE

64

offers which also result in higher motivation of the

employees.

5.8.4 THREAT ANALYSIS:

Standard Chartered is facing a lot of problem regarding their

employee retention. They have made their compliance and audit

structures so complicated that it is very difficult for their

employees to work according to that policy. Even Full Time

Employees (FTE’s) can be dismissed without a single warning

on the obstruction of these compliance and audit issues.

Where they are providing extra job security to their

employees, their employees feel equally insecure at the same

time. Recently they have released about 300 employees from

their North Region, the reason being that they don’t want to

work with a huge number of employees. This is a big threat

for standard chartered regarding human resource which they

have to analyze efficiently.

Another threat is that after taking over Union Bank they find

very difficult to manage the staff of both of these huge

organizations. Until yet they failed to manage these staff

and there frustration can easily be seen by their employee

turnover

Hassan Arif UNIVERSITY OF LAHORE

65

CHAPTER - 6

“POSSIBLE OPTIONS/ ALTERNATIVES”

After a detailed study and analysis of the Human Resource

Managements System of Standard Chartered Bank Pakistan Ltd I

find several issues. Their employee turnover ratio is

ascending day by day, the reason being that their employees

feel very insecure when it comes to the audit and compliance

policy which is so strict and complex that it seems

impossible remain inside the boundaries of the audit and

compliance policy.

Another issue which I noticed is that they have very low

number of staff under the category of FTE (Full Time

Employee). There are number of employees who have been

working from years with satisfactory performance but they

have not yet been given the permanent slots, by this their

employee motivation level can be descend.

Pressure working environment is also a problem issue in

standard Chartered Bank as they have set extra high targets

to achieve for their employees and the installed Cameras not

in the Branches and back offices but also in the consumer

section of the bank to monitor their employees beside the

security purpose.

The current economy situation of the country also impacts the

employees of the Bank as the bank has to shut down its

operations in different segments according to the economic

Hassan Arif UNIVERSITY OF LAHORE

66

condition of the country which ultimately results in the

decreasing level of job security in the employees

CHAPTER - 7

“RECOMMENDATIONS & ACTION PLAN”

After a precise study on the Human Resource Management System

I found that Standard Chartered Bank has a very organized,

systematic and effective human resource management system

implemented but at the same time they also have some

drawbacks in their HR management system. The Main drawbacks

are:

1- Complex HR structures

2- Decreases Level of Employee Retention

3- Lack of Performance Management

4- Lack of Performance Appraisal

5- Extra pressure environment

6- Lack of Motivation

7.1 RECOMMENDATIONS REGARDING HR STRUCTURE

The problem they are facing regarding their human resource is

that they are facing difficulties to manage their human

resource after the acquisition of Union Bank. As both of the

organizations were the giants of the consumer industry and

both of them have also complex HR structure implemented and

to merge these two giant structures into one is not at all

Hassan Arif UNIVERSITY OF LAHORE

67

that easy. As they fire most of the employees from Ex Union

Bank due to lack of management system. Their turnover ratio

is also high and rests of the employees are also feeling

insecure regarding their job which result in higher rate of

lack of job security and de-motivated employees. Being a

student of Human Resource I recommend that they should have

two separate Human resource management systems installed in

order to manage human resource of the two organization, one

for Ex-Union Bank and the other one for Ex-Standard Chartered

Bank, with this their burden can be divided and they can

efficiently get hold of the things which are going wrong at

the moment and after the things become streamlined they can

easily merge both of the HR.

7.2 RECOMMENDATIONS REGARDING EMPLOYEE RETENTION

As far as the employee retention is concerned; they are

providing all those benefits to their employees whom no other

bank in the market is offering and their salary system is

also unique. All they have to work on is the employee

turnover and the things from which their employees is feeling

insecure regarding their job. The main reason of turnover is

the job insecurity as they have fired a lot of employees in

order to manage huge human resource. I recommend that they

should choose HR manager for Ex-union bank from the Ex-union

employee and for Ex-Standard Chartered Bank from the

employees of that bank respectively this will build the trust

of employees on their respective HR which automatically

results in larger employee retention, less turnover and

motivated employees.

Hassan Arif UNIVERSITY OF LAHORE

68

7.3 RECOMMENDATIONS REGARDING PERFORMANCE MANAGEMENT

Previously Standard chartered bank has implemented an

efficient performance management system. They have installed

some parameters and standards regarding employee performance.

If the employee is continuously performing poorly he used to

issue 3 warning letters from HR after that he is fired. That

system is known as ESAU system, which stands for Excellent,

satisfactory, average and unsatisfactory. After the

acquisition that system was forced on Union Bank’s employees

who were not familiar with that system which also causes

major problems. In this case I recommend that they should

give extra training to Union employees to get familiar with

the standard chartered’s system and give them some leverages

so that they can get adjusted in the changed circumstances.

7.4 RECOMMENDATIONS REGARDING THE PERFORMANCE APPRAISAL

Although they have an effective performance appraisal system

in their HR System but unfortunately it is not implemented as

it should be. According to that system the performance of the

employees must be appraised twice in the year and based on

their performances promotions offered to them, but in actual

nothing happens. I recommend that there is no need to change

the Performance Appraisal system, all they have to do is to

bring their existing system functional and this will result

in increased motivation and employee retention.

Hassan Arif UNIVERSITY OF LAHORE

69

7.5 RECOMMENDATION REGARDING THEIR WORKING ENVIRONMENT

As Standard Chartered Bank is operating with a pressure

working environment because of high to achieve targets and

observation cameras for the employees, that is why the

morale, motivation and employee retention is decreasing.

Their employees feel stressed and cannot concentrate to their

work. It is recommended that they should review their

employee targets and set some realistic and achievable

targets so that maximum number of employees achieves their

targets and feel motivated. As far as the observation cameras

are concerned they should use them only for security purpose

and not for observing their employees. This will result in

less stressed employees and the employees can concentrate on

their work and targets more effectively.

REFERENCES:

Following references were utilized during the making of this

project:

1. www.standardchartered.com.pk

2. www.wikipedia.com

3. Usman Ghani, HR Manager, Standard Chartered

Bank.

4. Employee induction Book of standard Chartered

Bank

Hassan Arif UNIVERSITY OF LAHORE

70