The Chase Manhattan bank - Term Paper Example

History of the Organization The Chase Manhattan bank (CMB) is one of the four principle banks in the U.S. It wasformed after a merger between JP Morgan Company and The National Bank, to form CMB. The bank has its headquarters in Boston, because of a merger with the Bank One Corporation. The bank also further acquired assets from other banks including the Washington Mutual to cement its position one of the premier banking institutions in America. The CMB has a wide customer reach with its 5,100 branches and over 16,000 ATMs countrywide. The bank offers a range of financial services that range from credit management to investment banking giving its customers a diversified product portfolio. Human Resource Strategy The CMB human resource has been carefully crafted to ensure that, the organization attracts and maintains the best talents in the banking arena. It also focuses on the development of the existing workforce through training, to ensure the staff is updated on the current banking practices and innovations in the industry. The CMB human resource strategy aims to ensure the bank’s business policy is correlated with the H.R policy. This is to ensure the bank has a sufficient, qualified workforce, to satisfy its requirements and meet its business objectives. The HR department ensures that it recruits raw talent and mould this talent for the future of the company. Through this policy, the bank cultivates a culture in the staff that complements its policies. Selection Process The selection process at the CMB is designed to identify the best banking talents among the applicants available, who will fit into the company, and add value to it to its human resource. This extensive procedure aims to determine whether the applicants are suitable for the vacancy offered. The job advertisements are sent out through different media, which include the print and electronic channels. The application process occurs in the following steps. The applicants, first fill an application for the vacancy through the internet, here, the applicant will receive an email confirmation that his or her application has been acknowledged. Once this is accomplished, they will undergo screening through a phone interview, this is to determine the legibility of the applicant, and the next stage involves a formal interview with a hiring panel, which involves the hiring and the H.R managers. This is to sieve out the unsuitable applicants and remain with the best candidates for the job. In this process, academic qualifications are considered, but that is not the only key factor, a candidate’s ability to apply this academic knowledge in the working scenario and strong business acumen, will give the candidate an edge. A second interview is held for the shortlisted applicants, in order to determine the ideal candidate for the vacancy. An offer is finally extended to the successful candidate. In House Training Programs For any organization, it is always crucial to ensure that the employees are aware of the new practices and innovations in the industry. As a result, constant in house training programs are carried out by the organization to ensure the staff is aware of the changes and acquire the new skills currently in the market. The case is not different in the CMB the bank realizes its most prized asset is its staff, and it invests a considerable amount of capital into their training. The training involves the management and employees. This is to ensure efficiency in all the departments of the organization. The bank has carried out a number of internal training programs for capacity building. The tellers have been recently involved in training programs that seek to develop their communication skills, and how to go about in ensuring quality service to the customer. They were also educated on public relation since the tellers are the face of the organization, in that they come into physical contact with customers on a daily basis. This makes them public relation ambassadors of the organization. The CMB has also carried out several in house managerial training courses, to make the managers more knowledgeable in policy formulations, marketing, management and public relations. Managerial training is crucial in that the managers provide direction for the organization. Public relation training is vital for this organization, since it is a service provider; hence, its success relies in its capability to satisfy the customers’ needs. The staff also undergoes training in matters like team building, responsibility to the society through their profession. This is to ensure the employees become more rounded professionally and socially. The advantages of this practice include cost saving, since it is more effective to train your staff a group. It also saves time, because the training takes place on-site hence, no travelling is required. In house training, also ensures that the exercise revolves around specific employee needs, making the trainings spot on. The main reason for this is the trainer is handpicked to suit this purpose. These types of trainings are scheduled to fit the timetable of the organization, and not to inconvenience it. Employee Development Programs As part of its H.R strategy, the CMB is committed to developing it employees to further their business knowledge, and skills, making them more competitive. As one of the largest banks in America, it is under constant pressure to maintain high standards of service delivery and keep up impressive turnovers for the investors. For this to be possible, the employees need to be constantly developed, to comply with the high performance requirement levels in this prestigious organization. The H.R has to initiate development strategies, and programs to ensure the organizations human resource is being developed. This development goes a long way, in saving the organization money through the retention of highly competent workforce. Development programs, serve various purposes for the organization, they include the following. Firstly, the employee development program may be based on development of staff. Here, the program aims to address the issue on how to increase the employees’ productivity in line with the organization’s goals. This is achieved through building on the skill that the employee already has, to make them more efficient. Another purpose for these programs is to encourage employees to rise through the positions to rank that is more senior. This employee training ensures that there is an upward trend in employee progress, to enable employees to take up vacant positions, which may become available in the higher ranks. This is through the succession policy. It is cheaper to promote an employee through the ranks, than start the recruiting process every time a position falls vacant. This method is called job shadowing and has ensured that the CMB has some continuity, and saves money by avoiding unnecessary recruitment. It is imperative, that an organization makes employee development one of its priorities like the CMB (Laird, Holton and Naquin, 2002). Performance Management Systems Performance management is crucial in organizations, in order to ensure that the employees are achieving the required targets in terms of their performance. In an organization like the CMB, complacency of an employee cannot be entertained nor afforded. The employees are required to always carry out their professional obligations efficiently. CMB believes in the importance of employees, and invests heavily in them; it will be a loss of capital, if an employee does not give back the returns to the company. Because of this reason, the company has systems in place to give appraisals on the performance of employees. Based on current human resource practices, performance systems provide the tools to evaluate the work ethic, in a manner that is unbiased. They are also used to determine, where the employees require additional training, to make them more efficient, and determine compensation, and promotions of the employees. In the in order to make the performance appraisal, transparent, automated systems are employed to ensure that the outcomes of these tests are purely on merit. The company uses integrated software or web based systems, to carry out performance management tests. Advantages of these tests for the chase company include, the growth in turnover since, the workers are compelled to fulfill their objectives. It also ensures, the strategies of the company are implemented more smoothly in the running of the organization, and prevents overrunning of the organizations projects. The presence of this system plays a role in the motivation of the employees of the bank. The system also makes management of the CMB more efficient; in that the employees will be their own managers, hence require little supervision (Bacal, 2012). Employee Benefits Package The CMB, in the effort to take care of its employees, it offers certain incentives to its staff. This ensures the company staff is well catered for, to optimize their performance reflecting, in higher productivity in their work. Some of the benefits extended to the employees in the CMB include the following. The bank gives newly recruited employees the benefit of a flexible working timetable. This enables employees, to familiarize themselves with the working environment more smoothly. They also give a market competitive salary to the starting employees. This enables the chase group to draw new talent easily, since their salary is competitive in the market. They also receive job training that is compensated by the organization. This is in line with the banks H.R strategy on employee development. Once they settle into the company, the employees enjoy added benefits on healthcare, and additional financial benefits. In the benefits offered to employees on healthcare package, the employees receive a cover for medical related expenses. The employees of the Bank may access medical plans as well as dental services. They are also provided with flexible account, to help them cover the expenses related to health for them and their dependents. Associates get further benefits, on fitness programs and childcare. Another benefit enjoyed by the employees includes a retirement savings plan. Also, included is the life insurance and disability covered. CMB employees also enjoy access to legal services and in some case even tuition assistance. Compensation Programs It is crucial for organizations to recognize the efforts of its employees and compensate them accordingly. This will be motivation to the current employees, to give their maximum effort in their duties. The compensation can range from cash incentives to career promotions. In the case of CMB, the organization knows the importance of compensation to its employees, in order to encourage excellence in its staff. Through their policy of training from within, exceptional personnel are promoted to hold senior positions in the company. Monetary bonuses are also extended to employees who satisfy the criteria set for this compensation. Diversity Programs The practice of diversity is being adopted by organizations worldwide. Barriers that existed before are being broken in that; the minority groups and women are now realizing opportunities. Diversity is a common practice in the banking sector, and this is not different in the in CMB. The bank has increased minorities and women in its staff substantially. Also in management, the number of position held by these two groups has been reviewed upwards. This has led to the increase in efficiency and innovation, because of the diversification process by the H.R department. Diversification has also been advantageous to the bank in the public relation front, in that the organization has done its social responsibility as a corporate, to ensure equal opportunities for minorities. Employee Relations Strategy It is crucial for an organization to maintain a healthy relationship with its employees. The most essential asset an organization has been its human resource. The H.R department at the bank strives to ensure that the relationship between the employee and the bank are smooth. This is by ensuring, that there is an open channel of contact between the two groups, to ensure that any issues that may arise, are identified on time and are resolved. It is also crucial that the relationship is formed on trust and a mutual respect between both factions. In the case bank, relationship with it employees has always been high on its agendas’. Some of the issues that may affect this relationship include employee grievances, discipline issues, harassment and management. The relationship is determined on how these matters are handled by both parties. Labor Unions Labor unions have a significant influence on the employees through labor unions. It is essential for a good rapport to be formed between an organization, and the labor unions, to ensure the relationship is a positive one. The two bodies do not agree over certain issue, but it is necessary for the bank to establish a healthy relationship with the labor unions. The union provides another avenue in which the bank can learn of the employee grievances. Safety and Health Programs The health of CMB employees is taken seriously in that, if the employees are not healthy and safe, it affects the output in the workplace. It is imperative for any organization that wants to be successful, to take care of their employees’ well- being to avoid losses through person-hours lost, due to health or safety reasons. Because of this reasons, the bank offers its employees a comprehensive health cover, which includes a dental plan, to ensure their health is protected. They also ensures that, the employees work at a condition that is safe for them, and that the safety standards set by the government and labor union are met. The CMB also tries to curb stress that may be work related by taking the workers to retreats, and other recreational activities in order for them to relax. Work schedules are also reasonable, in order not to overwork employees. HR strategy and programs in relation to organizations overall strategy The CMB realizes that H.R strategy affects the banks overall strategy directly. The bank being one of the biggest financial institutions in America, its strategy is mostly to keep their volumes up and at the same time tap into new markets. The bank also offers a wide assortment of financial products. This is due to their diversification of the products they offer the customer; the bank is venturing into different financial service for their markets. In order for the overall strategy of the bank to be successful, the strategies must go hand in hand, with the policies employed by the human resource. In the case of CMB, there is a clear example of the correlation of these two factors. From the recruiting procedures involved, to their relationships with the workers the policies employed, lead back to the overall strategy. For example, in the case of the bank venturing into fresh markets, is related to the organization policy of diversification in the sense that diversification will attract new clients direct or indirectly. It is essential for any organization that is targeting growth to align their overall strategies to their human resources practices (Rothwell, 2010). This will ensure that the company is successful in implementing its policies, and that the staff will be on board in that, the human resource has picked a team that fits into the company’s plans. References Bacal, R. (2012). Managers guide to performance management. New York: McGraw-Hill. Laird, D., Holton, E., & Naquin, S. S. (2002). Approaches to training and development. Oxford: Perseus. Rothwell, W. J. (2010). Effective succession planning: Ensuring leadership continuity and building talent from within. New York: AMACOM. Read More