Talent Management At Standard Chartered Loan company Display SHRM

By focusing closely on its talent management program it can be clearly be observed that Standard Chartered Bank or investment company (SCB) is making the practice of SHRM as you of its key priorities. As is seen from this article, just how SCB adopts its appraisal strategy is of an extremely strategic position. By which makes it a global standard to conduct face-to-face performance appraisals every 6 months goes to show that SCB is looking at its performance management objectives to be sure that those aims stay relevant and attainable, and that is clearly a feature of SHRM. Being sensitive to different cultures by employing different appraisal methods also demonstrates SCB understands the value of managers and staff identifying and dealing with real, actual problems in a manner that is most familiar and effective to them. That is also another element of SHRM as through such means, SCB can monitor its competitiveness in the market.

Through appraisals, SCB also classifies their employees into 5 categories ranging from high-potentials, to critical resources, then to primary contributors, followed by underachievers and finally, underperformers. By doing so they could identify areas in which they are lacking and act upon it. Oddly enough, as Geraldine Haley points out the classifications, it could be seen that SCB has already been discovering the likely circulation of talent in the bank and are taking activities to manage the flow. For instance, when classifying certain employees as underperformers, Haley continues on to mention that group of people do not fit the job requirements and they should be used in another role or be 'handled out'. Clearly, if the bank decides to put this band of employees in another role (which meets the thought of SHRM because by placing people where they perform best clearly benefits any business), or by controlling them out (in doing so reducing unnecessary manpower costs or replacement with a far more productive prospect), the objective behind both activities is clearly tactical in aspect. The worker classification also allows the bank to understand the their probable and manpower mixture which is crucial because, the HR office would be able to plan beforehand for staff range of motion or develop different programs to help develop potential with their talents to another level. Up to now we are able to observe that SCB will indeed view its employees as a tactical key property in churning out income for the bank.

Yet another SHRM feature being shown is the secrecy of worker classifications. As mentioned in this article, SCB's stance is the fact while they don't want certain employees to feel de-motivated yet others to boast about their own performances, the whole point of the classification system is to see managers that there could be actions required on their part to enhance the situation. It really is true that in SHRM, professionals should not cause their employees to feel just like these are being constantly monitored for poor performance because this will affect the staff's willingness to add towards the business. Again, either way, we see that the activities taken are tightly linked to supporting the organisation achieve its proper corporate objectives. The classification system is also being used helpful information for regional office buildings to strategically benchmark against each other to see where they stand.

Ever since SCB has been experiencing a higher personnel turnover rate among newly recruited employees, a remedy in the form of a worldwide induction program known as Right Start was executed to curb this problem and they efficiently brought down the rate of employees leaving by 5% (http://www. standardchartered. com/annual-report-07/en/business_review/people. html, 2008).

SCB has also gone to groom skills into leaders through providing instruction and self-help tools through various medias such as podcasts, videos and workshops. Another key concept is to permit talents to learn to their strengths somewhat than on focusing on managing their weakness. As Hayley clarifies the strategic rationale on focusing on coaching abilities with global assignments in the lender, for the reason that a tiny 5% improvement from these top professionals is enough to result in a huge positive impact on the banks revenue.

Under the Best practice view in SHRM, there are 18 Key techniques which SCB can safely and securely said to have achieved at least 50% or more:

Realistic job previews;

Use of psychometric lab tests for selection;

Well-developed induction training;

Provision of considerable training for experienced employees;

Regular appraisal;

Regular reviews on performance from many resources;

Individual performance-related pay;

Profit-related bonus deals;

Flexible job descriptions;

Multi-skilling;

Presence of work-improvement groups;

Presence of problem fixing groups;

Information provided on firm's business plan;

Information provided on the firm's performance targets;

No compulsory redundancies;

Avoidance of voluntary redundancies;

Commitment to solo status;

Harmonised holiday break entitlement (Source: School of Sunderland).

It can be concluded that SCB is investing so much resources towards its individual talent management program due to the fact it views it employees as individual capital for the company and recognizes the wisdom in developing and handling its employees in close relation to the values and goals of the company so that an effective workforce can be produced, and groomed to achieve the strategic aims of the bank.

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1. 2 Touch upon the relevance of the way in the light of the recent banking crisis?

Answer:

The banking crisis of 2008 was essentially because of the fall of bank giant, Lehman Brothers (LB). If LB possessed used SCB's view of employees as human being capital in the organisation, it might have at least minimised the loss to a certain degree. For one, discussions between employers and personnel would have been more available and problem issues could have been raised and recognized at a youthful level. Inefficiencies in the company could have been uncovered if there were a global compilation of performance like in SCB, where CEOs were able to benchmark their performances against regional office buildings. In a way, having a certain amount of centralised control through skill management would also enable the monitoring of LB companies internationally. It is interesting to note that whenever a German subsidiary of LB requested that top management in america forgo multi-million bonus deals as an indicator of taking responsibility for poor performance, the request was immediately struck off at the first case. It appears that top management either didn't know or did not bother to worry what was going on in its other global office buildings.

Therefore it's important for companies to have a solid leadership also to make that happen, organisations must learn to take the first step in acknowledging its employees as key belongings towards enabling the company to attain it strategic goals and targets. Thereafter that, the company's HR policies should be dawn to include short and long term strategies that are inline with the business's corporate objectives. Companies should also consider which view the company would adopt in relation to SHRM. For example, does the business suit the very best Practice view, Bes Fit view, Best Fit Integration view or Source of information based way? Each has its own advantages and weaknesses but the company has to decide which is the most suitable and allow the business to achieve its goals.

Perhaps the culture of your company should also be establish as culture can deeply influence a employees willingness to contribute positively to the business. Every organisation is designed to communicate its own targets and goals to its employees so a to align the worth and behaviour of the employees towards dedication in performance for the company, and in this respect, having a proper culture will greatly enable the employee to settle comfortably into the company and be motivated to execute well. Retaining talent is vital in a company's option of progress and much effort should be placed into talent management where employees will feel just like that are an important part of any company that cherishes their contributions and seeks to build up and groom them for further development in their career. With SHRM as the main element basic guiding principle, company's should therefore seek to create a pool of expertise that will steer it in the right way, both in memories and bad.

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1. 3 Exactly why is it important to measure the impact of SHRM? What might be included in a evaluation strategy to measure the impact of SHRM in an organization to accomplish proper integration?

Answer:

It is important to measure the impact of SHRM because, firstly, strategies that are created into HR plans are closely from the strategic aims of its company. The key reason why this is so is basically because the company understands that attitudes and performances of its employees makes a big change towards attaining organisational goals. Therefore when an company decides to employ the HR unit as a strategically, resources are being spent to make sure the HR device contributes for the attainment of these objectives.

In measuring the impact of SHRM in an organization, there are 18 Key tactics of SHRM might be used to ascertain the degree of SHRM present in the business:

Realistic job previews;

Use of psychometric tests for selection;

Well-developed induction training;

Provision of considerable training for experienced employees;

Regular appraisal;

Regular opinions on performance from many resources;

Individual performance-related pay;

Profit-related bonus products;

Flexible job information;

Multi-skilling;

Presence of work-improvement groups;

Presence of problem resolving groups;

Information provided on firm's business plan;

Information provided on the firm's performance focuses on;

No compulsory redundancies;

Avoidance of voluntary redundancies;

Commitment to solo status;

Harmonised getaway entitlement (Source: University of Sunderland).

Other possible measurements could be in the proper execution of appraisals where performance management goals are being examined. Through the appraisals the organisation can understand how it is faring from the achievement of its own targets in accordance with the overall performance of the employees.

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Section B, Question 4

4. What exactly are the main top features of a Performance Management system? In what ways can

organizations ensure that such systems fulfil strategically useful results (30 marks)

Answer:

4. 1 Main Top features of a PMS

The main features of PMS are:

PMS involves business-led outcomes which may be assessed against particular business goals;

PMS is integrated with interlocking types of procedures and moves of information;

There is a mix of quantitative and qualitative goals;

There is a focus on both system design and manner of execution. Because PMS are hypersensitive to process and culture, it is hence versatile;

PMS rely on a participative way by mangers and personnel similarly, which can align with other organisational functions, for example, worker religions, marketing communications and decision-making operations;

Lastly PMS have a distinctive and versatile quality to be people and systems-oriented (Source: University or college of Sunderland).

There are 6 other features of PMS that links it to the overall business strategy of your company which might also guide organisations in guaranteeing strategic effects are satisfied:

Objective setting;

Ongoing overview of objectives;

The development of personal improvement programs associated with training and development;

Formal appraisal and feedback;

Pay review;

A competence-based organisational functionality review (Source: College or university of Sunderland).

4. 2 Ensuring PMS Fulfils Strategically Useful Outcomes

The best way to ensure that PMS is able to fulfil strategically useful benefits is designed for the organisation to be involved in the environment of performance goals and thereafter evaluate those targets. When setting clearly identified performance management targets organisations can gear the range and nature of the objectives to echo the organisation's own corporate goals. These performance targets should also be linked strongly to the average person employees as well as the organisation's ability resources. When arranging objectives, coverage will include competence and skill development, ability in meeting functional goals, and creating the right corporate culture. Goals are generally identified into 3 categories: efficiency and output related, job-related and person-related.

For efficiency and end result related objectives, these are a way of measuring quantifiable output targets like:

Cost reduction

Achieving sales quota

Meeting production quantities.

For job related goals, these involve appointment the main aims of the job laid down in its information according to the specified level of competence:

Achieving main duties and accountability.

Meeting responsibilities as referred to in the job description.

Meeting the responsibilities and service relationships to interior and exterior customers.

For person related targets, these influence the behavioural benefits of the individual performing his job, such as writing knowledge an ideas with co-workers. Organisations recognise the value of linking organisational culture with person-related objectives as it can help bring in regards to a positive change in the organisation's culture. For instance, an organisation that wants to have a culture that is collaborative in dynamics will set aims on employees and measure an employee's research survey on the amount of references made to other employees' work or the quantity contributions created by the employee's acquaintances in the article. This sort of objective will change a person behaviourally so that he or she is able to meet up with the performance aims.

As organisations are beginning to shift away from individualistic performance aims such financial goals and moving towards aims which web links the labor force to the corporate targets or wider environment such as quality and efficiency of business techniques, other measurements are being introduced to maximise the potential and skill of the workforce through a commitment-oriented strategy. Thus, organisations also have realised that to engage the wider environment, they need to identify the partnership between your 3 key stakeholders an the organisation:

Investors who require go back on the investment through dividends;

Customers who require quality and service that they pay;

And employees who need a healthy and satisfying working environment that delivers job security (Source: College or university of Sunderland).

Now that the inter-relationship has been revealed, organisations are better in a position to communicate expected levels of competence from employees and will also have the ability to appropriately empower staff to deal with activities consequently with their integration. Lynch and Mix (1995), created a model that presents this relationship (see Number 4. A). This model also identifies the broad methods and integration of objectives at each individual level.

Figure 4. A shows The Performance Pyramid from Lynch RS and Mix (1995) (Source: University or college of Sunderland)

4. 2. 1 Appraisal Systems

As the hyperlink between aims and organisational resources are important, it must therefore be integrated with appraisal systems. Appraisals do the job of critiquing the performance management aims, and it customarily occurs annually between your manager and personnel. However, as the necessity for objectives to stay relevant and possible on a regular basis, reviews of the objectives are starting to occur more frequently. Hence it can be said that regular reviews also motivates the building of marriage and the incident of instruction through such regular discussions. In the design of appraisal techniques, there are 2 types of orientation strategies that emerge: the control orientation and the developmental orientation.

In the control orientation strategy, it is always assumed in a negative light a senior entity in the company chooses the goals, goals, aims and rewards for the employees to achieve. This ends in employees sensing insecure as they believe that these are being constantly watched and could lead to a malfunction in commitment. Often, when modifications are introduced to help ease such problems, the appraisal plan becomes ineffective as director do not address real issues which might cause a damage in desire or destruction in relations between the manager and staff. Standardised controls are put in place so as to maintain steadiness and equal treatment for any, however it sacrifices flexibility along the way. The amount of impact is low on performance with the exception of a few existing high performers. Thus, this process is effective when targets are clear and staff are used to it. The emphasis is not really much on improving performance through opinions and motivation but more on the management's specialist over the employees.

In the truth of the developmental approach, the director is not in charge whereas employees will be the ones who take the effort to address uncertainties in curious about how to improve themselves. Employees want to be helped and supported through problems and they learn through failures and success. The advantages in this approach include less level of resistance between the manger and personnel, and having the ability to handle problems within an open way. Problems can be dealt with on a far more objective basis without souring romantic relationships. Employees are also given high trust in their integrity. However, the weaknesses with this process include less obvious outcomes being produced and the supervisor has to carry out a far more consultative or 'counsellor' role that they might not be able to perform well in.

4. 2. 2 Types of Appraisals

There are a few types of appraisals which organisations might want to adopt including the, self-appraisal, top-down appraisal, peer appraisal and multi-directional appraisal.

Top-down appraisals are traditional and reviews is obtained from the staff while objectives come only from the very best. The weaknesses of the type of appraisal are that too much emphasis has been placed on traditional organisational hierarchies. Favouritism may also be prevalent and employees might not have full knowledge in buildings where professionals posses a wide span of control.

Self-appraisal methods are barely used. It gives the employees more ownership and a higher degree of involvement in the appraisal program. Managers adopt a far more supportive and advisory role where they take part in conversations with the personnel on environment of objectives.

In the upward appraisal model opinions is given from the bottom to top. Employees tend to be asked to provide such responses anonymously. Organisations that use this method recognise the need to provide more effective working systems for employees to work better.

In the peer appraisal model, customers of the same team are being asked to appraise one another. There could be sensitivities involved when working with this method as users might show favouritism to particular members or dislike towards certain associates might be the explanation of poor score given.

In distinction to the peer appraisal method, multi-directional appraisals creates to obtain responses from the exterior of the team and it often also contains gathering reviews externally from customers. Its key power is its having the ability to overcome the lack of knowledge from a single appraiser as it gathers opinions from many resources. However its biggest weakness lies in the lack of control over hostile evaluations being given.

Thus appraisals are also an instrument to ensure that performance targets meet strategically useful benefits.

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Section B, Question 5

5. Why are reward management systems critical to SHRM? How do organizations develop

reward systems strategically? (30 markings)

Answer:

5. 1 Why Incentive Management Systems are Critical to SHRM

In strategic individuals source of information management (SHRM), strategies that are being applied into a company's human being resource regulations are closely linked with a company's main used strategy in order for it to aid in reaching company goals. SHRM will so through recruiting, developing, keeping and retaining an efficient, productive workforce. As employees make up a company's workforce, they ought to then be thought to be key property in a corporation. Reward management systems are therefore critical to SHRM because they are being used to prize and compensate employees in manners that impact employees positively for the business. For instance, well-developed prize management systems uses rewards to motivate employees to expand and develop their potential, in doing so increasing the quality of efforts contributed towards the company.

Rewards and settlement systems are also critically found in aligning the culture, aims and philosophies of the business with work of the employees, this allows employees to identify themselves within the company and so strengthen their devotion and commitment towards the business and its targets (Sherman et al. , 1998). In today's competitive environment where companies remain competitive for skill and skills, rewards play an important role in both recruitment of skill and retention of long providing employees who've difficult-to-source tacit knowledge in their field of knowledge. Having a flexible prize management system does mean that a company is ready harness other forms career, for example, employing of part-timers with relevant experience to briefly complete during short-term jobs.

5. 2 Creating a Reward System Strategically

Rewards systems in companies practicing SHRM must obviously be proper in nature. According to Lawler (1984), there are nine points to consider when making strategic decisions in developing incentive systems in companies. The nine items are referred to as follows:

Base of rewards.

Performance and Incentivisation - scope for progression.

Market position.

Internal versus External comparison.

Centralised versus de-centralised reward.

Degree of pay hierarchy.

Reward Combination.

Process issues.

Reward systems - consequences/integration.

5. 2. 1 Bottom part of Rewards

Salaries can be based on 3 options:

The type of job a person undertakes.

The person's contribution in the job.

The knowledge and level of skill people possess within the job.

The 1st option is to pay based on the growth and development an individual undertaking a job. That is typically done through internally evaluating a particular job with other careers within the company by using a job evaluation which steps the jobs that the job must perform. External evaluations could be used, whereby companies compare the pay offered by other companies against their own. Job based rewards are typically found in much larger organisations where job and pay equity is predominant; an example would be careers in the general public service sector where job grading can be used. The 2nd option is to pay based on the individual's performance within his / her job and is often implemented in cases where the jobs are small in amount or job scopes that are particular and pay needs to be individual. Performance centered pay can be used to balance job demands and contributions manufactured in order to inspire the individual to enhance performance. The 3rd option is to pay based on the need to acquire new skills and knowledge to be able to enable organisations to meet up with the new market issues.

5. 2. 2 Performance and Incentivisation - scope for progression.

This point considers the many types and ways of using incentives, whether as a part of a person's salary or yet another portion. However, the primary dilemma is based on reconciling strategic goals by using suitable incentives to stimulate and enhance worker' performance and dedication to the company. Companies will have to decide the varieties in which incentives will take and how it will be sent out as well as the positive and negative repercussions it could bring to the company or its employees. For example, substituting commission payment for a fixed extra payout to sales employees might cause low-performers to be happy, while high-performers might become disgruntled they could have earned more over a commission plan.

5. 2. 3 Market Position

As labour marketplaces are susceptible to the overall economy, market trends and political affects, radical changes may happen anytime within the labour market. For instance, when there is a labour shortage in certain companies, organisations would be forced to pay a higher wage to obtain the labour needed. As a result, organisations are finding it difficult to support an interior sense of fairness that originates from a formal measurement of job collateral within internal income structures. Therefore, prize strategies have to be formulated to answer to such external uncertainties, and also be adaptable (if it is not already so) enough to support different wage plans and levels when required.

5. 2. 4 Internal versus Exterior comparison

As praise systems are key to hiring, keeping and growing employees, it's important for a business to benchmark its compensation policies from the external and inner environment. Hence, it is important for companies to comprehend the logic behind market rates of pay and advantage and know where and the way to collect data necessary to execute pay and benefits research. These surveys are often conducted so that companies have the ability to rely on the info to make modifications to current pay and advantage rates, thus staying competitive in their pay and gain policies. Companies also needs to be able to present data in a significant manner so that proper evaluation can take place.

Job evaluaton (JE) is thought as a systematic procress by which relative price of jobs are determined in order to establish which careers will be paid more over others in the company (Sherman et al. , 1998). The key features of JE are:

A process which compares the relationships between jobs based on demand put on employees.

A process of judgement made by understanding of job descriptions and roles necessary to perform the work.

A process of analysis after producing point factors from judgements, to allow job rank.

A process of structuring whereby job descriptions are created, problem solving, figuring out key factors equal to job knowledge, and more. Score formulation also will take place to establish ranking, building wage set ups and create job-grading systems.

The important decisions to make in a JE are the selection of appropriate factors and their levels, as well as how value of factors will be indicated.

5. 2. 5 Centralised versus de-centralised reward

Organisations often have to struggle to decide if prize systems should be handled in a centralised or de-centralised manner. Centralised managing is restricted and usually means a standardised rate of income increment. This may cause employees to be less enthusiastic and impressive in their contribution which becomes unsafe for the business, this holds true for employees who participate in a business device selling a numerous volume of products and services. In this case, it could be better creating a de-centralised control of rewards system and empower professionals with discretionary specialist to praise employees consequently, hence enhancing morale.

5. 2. 6 Degree of Pay Hierarchy

Pay hierarchies is present in organisations and prize systems are reliant on them to a large level. Pay hierarchies show the distinct difference in electric power and often reveal career progression. However, organisations are little by little leaving such distinctive hierarchies in pay systems by formulating income structures that motivates income overlap and opportunities for increment. Graded income structures are generally used and though not all are a similar, they talk about common features such as:

A salary quality allocated to an occupation based on an individual's contribution, the labour market and the degree of complexity present in a job.

Salary rings or grade where employees participate in and have to get promotion in order to progress to a higher salary band. Each band includes at least minimum amount entry way, market or mid-point and a maximum point that employees can perform.

Salary bands are associated with one another; usually the maximum point of any starting salary band is the commencement of the next salary band. The amount of overlap will have to be determined by the company.

As employees progress along the music group, organisations must decide if employees move up to fixed things along the bands or should employees be permitted to skip certain things and progress at a faster rate instead.

5. 2. 7 Prize Mix

Although pay is often discovered to be the key ingredient in an incentive combine, other benefits such as free annual health testing, pension techniques, certified-skill upgrades, use of company vehicles, etc, are equally useful in rewarding employees. When making a reward blend, the challenge for companies is to recognize the strategic reasons for having each gain in the incentive mixture and their costs to the business.

5. 2. 8 Process Issues

In the dialogue of process issues, the 1st strategic concern to be considered is communication and transparency. As connecting pay aims to employees plainly is important in reaching positive human source results, the prevailing culture of companies usually makes a decision how open up the dialogs are. Traditional companies take up a shut down system and keep salary amounts anonymous for purposes of pay review. Others with wide open systems often publicise the salary structure and criteria that salary increment may appear. Open systems tend to instil self-assurance and fairness into employees as decision-making becomes more clear and criteria are made known. The next strategic concern concerns with employees' amount of participation in pay decisions. A company aiming to achieve a team-based operating culture and high employee involvement in every aspect of individuals resource management should think about allowing employees to be involved in determination of job salaries too. Companies adopting close-based systems usually applies HR regulations onto its employees and in the long run, companies have to decide whether leveraging highly on employees' trust and commitment or otherwise, is more suited to the business's culture.

5. 2. 9 Reward Systems - results/integration

As HR goals change over time, so should praise aims because rewards should be integrated into HR systems. If the targets are inline, then the integration between rewards and HR systems will serve well to produce a positive impact on employees who subsequently stays committed to churn out more positive contributions for the company.

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