The Approach to Talent Management at Standard Chartered Bank - Essay Example

? Human Resources Management (Case Study) Total Word Count: 1897 Section A 1 To what extent does the approach toTalent Management at Standard Chartered Bank display features of SHRM? First and foremost, strategic human resources management (SHRM) has been defined by Boxall & Purcell (2003) as “concerned with explaining how HRM influences organisational performance. They also point out that strategy is not the same as strategic plans. Strategic planning is the formal process that takes place, usually in larger organisations, defining how things will be done. However strategy exists in all organisations even though it may not be written down and articulated. It defines the organisation’s behaviour and how it tries to cope with its environment.” More precisely, the MBA Tutorials (2010) defines SHRM as “the linking of human resources with strategic goals and objectives in order to improve business performance and develop organizational culture that foster innovation and competitive advantage” (par. 1). The key features of SHRM were identified as: (1) some organizing strategies or schemes link individual human resource interventions so that they are ‘mutually supportive’; (2) a great amount of responsibility is transferred down the line for the management of HR; and (3) there is a precise link between overall organization strategy, organization environment, HR policies and practices” (MBA Tutorials, 2010, par. 3) In this regard, the Talent Management at Standard Chartered Bank displays features of SHRM in terms of manifesting the presence of strategies that show “emphasis on people that has seen HR issues ascend the corporate agenda, with the bank’s declared goal of measurably increasing its leadership capacity by 2011” (Case facts, 2). The precise link between organizational strategy, environment and policies and practices are effectively measured by the Talent Management programme which provides a detailed and comprehensive information of global workforce “that can be analysed office by office, team by team, across continents or product areas or by type of employee, to show where help is needed or if resources are being used well” (Case facts, 2). Finally, the feature of transferring HR responsibilities was manifested in “the bank’s approach...to introduce certain global standards and tools, (and) to give managers some freedom to decide locally how best to use them” (Case facts, 3).  1.2 Comment on the relevance of this approach in the light of the recent banking crisis? The Talent Management program that is consistent with the SHRM approach is appropriately significant in the light of the recent banking crisis due to its ability to gauge performance of personnel and bank branches regardless of their assigned locations; it has the ability to generate and integrate performance of employees on a global scale. In this regard, the effect of changes in the external environment could immediately be measured in terms of repercussive effects on bank branches worldwide and on how creative managers and respective personnel are in responding to the external pressures. The Talent Management Program of Standard Chartered manifests acknowledged the important roles and functions of HRM opting to implement SHRM in adapting to diverse factors from the external environment and adjusting to the demands of the times. Its ability to assess its effectiveness evolves into encompassing areas of employee development (employee behavior, attitudes and skills), competencies, performance, as these attributes all contribute to the achievement of organizational goals. As Cabrera & Cabrera averred, “no longer are operational measures of internal efficiency sufficient. HR departments must be able to demonstrate the value of their strategic contributions” (2003, 3) which are most applicable especially during the financial crisis. 1.3 Why is it important to measure the impact of SHRM? What might be included in an evaluation strategy to measure the impact of SHRM in an organization to achieve strategic integration? It is important to measure the impact of SHRM to determine its effectiveness in contributing to the achievement of organizational goals. As emphasized in MBA Tutorials, “strategic human resource management is designed to assist organizations to meet the needs of their employees in the best way they can so that company goals can be promoted. We can also say that SHRM is actually managing people proactively because it requires planning ways for an organization to meet the needs of its employees, thinking ahead, and also helping the employees to meet the needs of the organization” (par. 11). As emphasized in the case, “this system allows the bank to manage its talent by revealing the skills and potential inside its workforce – and showing where there are gaps” (Case facts, 3). Therefore, an organization needs to regularly monitor and measure the impact of SHRM to determine the gaps, to address them appropriately, to ensure that the goals set were achieved, as required. In a study conducted by Crawford (2005, 3), he averred that “the multiple constituency approach to HRM effectiveness adopts the multiple constituency model of organizational effectiveness, which is the most appropriate for evaluating HRM. This approach considers the influences of key stakeholders in the organization.” To effectively measure the impact of SHRM, feedback from various stakeholders globally must be solicited. As Crawford revealed, “from a HRM perspective, the multiple constituency approach can be operationalized by measuring HRM effectiveness from the perspective of HRM's internal and external stakeholders (such as top management, line management, employees, customers, and trade unions). This particular approach demonstrates the responsiveness of HRM to the demands of a variety of stakeholders who may hold different opinions regarding the effectiveness of the function” (2005, 3). The evaluation should also closely review the weaknesses and define ways to address them. As the facts revealed, “a ‘strengths-based’ philosophy underpins Standard Chartered bank’s approach to both talent management and leadership development. “It’s based on the idea that people will be successful because they play to their strengths, not because they manage their weaknesses” (Case facts, 5). It is commendable to focus on the strengths of employees; but it is likewise needed to address their weaknesses. Training and development programs could be earmarked to develop skills and improve on identified weaknesses so these can eventually turn into strengths. As aptly concluded by Righeigmer (n.d.), “an organization’s people and their skills ultimately determine the effectiveness of strategic plans, and its implementation” (13). Section B 1. What are the main features of a Performance Management System? In what ways can organizations ensure that such systems fulfill strategically useful outcomes? Performance management is defined in All Words (2011) as “a management technique intended to holistically consider the performance of (usually a group of) employees or machines to work towards optimum performance of a particular task or (more frequently) a group of tasks” (par 1.) Cardenas (2010) expounded on its definition as she averred that “a performance management system is a set of activities you can use in your company to effectively achieve business goals and objectives. Performance management systems are designed to identify, eliminate and improve performance problems” (par. 1). The main features of a Performance Management System (PMS) are: setting up goals, translation of goals into performance standards, communication of those standards to the entire work force, measuring actual employee performance, comparison\of actual performance with established standards, discussion of evaluation with the employees, and rewarding of exemplary performance and taking corrective action on performance that is below standards ( (Martires, 2004). Through the application and implementation of tasks incorporating the abovementioned features, organizations can ensure that these systems fulfill strategically useful outcomes through maintaining an effective and objective PMS that is free from bias and by communicating their beneficial uses to all the constituents for proper guidance. In light of organizational needs, performance evaluation should be regularly conducted to guide decisions on movement among personnel. Promotions, demotions, layoffs, dismissals, transfers and suspensions are effected properly if the information on performance management and evaluation is available and utilized. An effectively designed and implemented PMS would clearly structure the promotion process that would be deemed as fair and equitable to all. In addition, salary adjustments, pay increases and fringe benefits would be effectively scheduled and appropriately implemented (linking this to the financial resources of the organization). In terms of development of human resources, training needs are provided by the performance management systems on data identifying which workers need upgrading on knowledge, skills, and attitudes toward work. The PMS would provide information that would inform management in improving performance of substandard performers. Through PMS incentives would be designed to maintain, of not increase, the efficiency of those who perform at par. Poor achievers can be given guidance on how to improve their performance as reflected in their ratings. Further, PMS provides basis for career planning as most employees would be accorded appropriate information for future positioning and potential paths that would define personal and professional growth. Finally, PMS serves as formal records or evidences in labor-management disputes in grievance procedures. The courts and arbitrators accept with more credence management records of PMS than off-the-cuff verbal testimony of supervisors. 2. Why are reward management systems critical to SHRM? How can organizations develop reward systems strategically? The reward management system is clearly defined by Chaudhary (2008) as “reward system or management usually mean the financial reward on organization gives its employees in return for their labour.  While the term reward system, not only includes material rewards, but also non-material rewards. The components of a reward system consist of financial rewards (basic and performance pay) and employee benefits, which together comprise total remuneration. They also include non-financial rewards (recognition, promotion, praise, achievement responsibility and personal growth) and in many case a system of performance management” (par. 1). The reward systems are therefore critical to SHRM because these incentives provide motivation for employees defining their level of satisfaction towards their jobs and enabling them to achieve the objectives expected from their responsibilities. As emphasized by Chaudhary (2008) reward systems are crucial in the fulfillment of the following aims, to wit: (1) improvement of organizational effectiveness; (2) as supportive mechanisms in culture change; (3) to achieve integration; (4) as support for management: (5) to motivate employees; (6) to compete in the labor market: and (7) to increase employees’ commitment to the organization, among others. Organizations can develop reward systems strategically through initially evaluating the qualifications, skills and competencies of their employees; after which, defining the objectives of the reward system. Lawler (1996) identified diverse objectives of reward systems ranging from attracting and retaining employees; motivating performance, promoting the development of skills and knowledge; contributing to corporate culture; reinforcing and defining structure; and determining pay costs. From there, organizations select from either best-fit versus best practices models in designing reward systems. According to Morris and Maloney, “the ‘best fit’ perspective claims that a firm’s reward system should be aligned to support the organization’s business strategy in order to achieve competitive advantage. ‘Best practice’ advocates claim that there is a bundle of HR policies including the reward system that lead to a highly motivated and committed employees who are the key to an organization’s competitive advantage” (2). Using either model to design reward systems would actually depend on management’s mission, vision and thrusts for the organization, as well as the resources of the organization. The authors differentiated that the best fit model employs an HR strategy that “will be more effective when…integrated with its specific organizational and environmental context” (Boxall & Purcell, 2000, 186). Best-fit HR practices are basically driven by competitive strategy and should be incorporated therefore in a firm’s set of policies and procedures on HRM. On the other hand, the best practice model supports a universal approach “arguing that all firms will be better off if they identify and adopt ‘best practice’ in the way they manage people” (Boxall & Purcell, 2000, 186). The findings on best practice approach state that those elements found to be most desirable to employees (employment security, selective hiring, self-managed teams, high pay based on performance, extensive training, among others) are not consistently cost effective in general. In this regard, organizations will need a comprehensive assessment of their resources, objectives and goals to effectively design a reward system that would enable their employees to perform according to standards and work towards the achievement of organizational goals. References All Words. (2011). Performance Management System. Retrieved June 26, 2011, from http://www.allwords.com/word-performance+management+system.html Boxall, P., & Purcell, J. (2000). Strategic Human Resource Management: Where hve we come from and where should we be going? International Journal of Management Reviews , Volume 2, Issue 2, 183 -203. Boxall, P., & Purcell, J. (2003). Strategy and human resources management. Basingstoke: Palgave Macmillan. Cabrera, E., & Cabrera, A. (2003). Strategic Human Resource Evaluation. Retrieved June 26, 2011, from http://www.entrepreneur.com/tradejournals/article/99146560_1.html Cardenas, H. (2010, July 9). Main Features of a Performance Management System. Retrieved June 26, 2011, from http://www.ehow.com/list_6713794_main-features-performance-management-system.html Chaudhary, U. (2008, April 28). Human Resources/Reward System. Retrieved June 26, 2011, from All Experts: http://en.allexperts.com/q/Human-Resources-2866/2008/4/Reward-Management.htm Crawford, J. (2005). Indicators of strategic HRM effectiveness: a case study of an Austratlian public sector agency during commercialization. Retrieved June 26, 2011, from http://www.allbusiness.com/human-resources/847224-1.html Lawler, E. (1996). The Design of Effective Reward Systems. In In Motivation and Leadership at Work (pp. 527-550). New York: McGraw Hill International Press. Martires, C. (2004). Human Resources Management: Principles and Practices. Quezon City: National Bookstore. MBA Tutorials. (2010, February 9). SHRM - Strategic Human Resource Management. Retrieved June 26, 2011, from ISolution.org: http://www.mba-tutorials.com/human-resource-management/487-shrm-strategic-human-resource-management.html Morris, D., & Maloney, M. (2005). Strategic Reward Systems: Understanding the Difference between 'Best Fit' and 'Best Practice'. Retrieved June 26, 2011, from http://www.business.mmu.ac.uk/parc/2005/morris_maloney.pdf Righeimer, J. (n.d.). Aligning human resources and strategic plans. Retrieved June 26, 2011, from http://www.maverickec.com/index_files/Aligning%20HR%20Strategy%20epulse.pdf Read More