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Institute of Business Management

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COMPANY OVERVIEW:

1.1 HISTORY OF STANDARD CHARTERED BANK:


Standard Chartered has a history of over of 150 years in the Banking and
is named after two banks, which merged in 1869. They were originally
known as the Standard Chartered Bank of British South Africa and the
Chartered Bank of India, Australia and China. Of the two banks the
Chartered Bank is the older having been founded in 1853 following the
grant of Royal Charter from Queen Victoria. The moving force behind the
Chartered Bank was a Scot, James Wilson, who made his fortune in
London making hats. James Wilson went on to start The Economist, still
one of the world’s pre-eminent publications. Nine years later, in 1862 the
Standard Bank was founded by a group of businessmen led by another
Scot, John Paterson, who had immigrated to the Cape Province in South
Africa and had become a successful merchant. Both banks were keen to
capitalize on the huge expansion of trade between Europe, Asia and Africa
and to reap the handsome profits to be made from financing that trade.
The Chartered Bank opened its first branches in 1858 in Chennai and
Mumbai. A branch opened in Shanghai that summer beginning Standard
Charterer’s unbroken presence in Chine. The following year the Chartered
Bank opened a branch in Hong Kong and an agency was opened in
Singapore. In 1861 the Singapore agency was upgraded to a branch,
which helped provide finance for the rapidly developing rubber and tin
industries in Malaysia. In 1862 the Chartered Bank was authorized to issue
bank notes in Hong Kong. Subsequently it was also authorized to issue
bank notes in Singapore, it continued to exercise up until the end of the
19th Century. Over the following decades both the Standard Bank and the
Chartered Bank printed bank notes in a variety of countries including

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China, South Africa , Zimbabwe, Malaysia and even during the siege of
Marketing in South Africa. Today Standard Chartered is still one of the
three banks, which prints Hong Kong’s bank notes.

Standard Chartered is the worlds leading emerging markets bank


headquartered in London. Its businesses however, have always been
overwhelmingly international.

1.2 PAKISTAN

Standard Chartered Bank (Pakistan) Limited (Standard Chartered) is a


commercial bank. It is principally engaged in providing commercial
banking, consumer banking, wholesale banking, Islamic banking,
wholesale banking and small and medium enterprises banking services.
The bank also offers 24-hour phone banking, e-statements, SMS banking
and online banking services. Standard Chartered Bank (Pakistan) Limited
is Pakistan's oldest and largest foreign commercial bank. It employs over
9000 people in it’s and operates through a network of 162 branches in
Pakistan
Its operating subsidiaries comprises of Standard Chartered Leasing
Limited, Standard Chartered Modarba and Standard Chartered Services of
Pakistan (Private) Limited. The bank operates as a subsidiary company for
Standard Chartered PLC. The bank principally operates in the region of
Pakistan. Standard Chartered is headquartered at Karachi, Pakistan.
In 2006 Standard Chartered Bank acquired Pakistan's Union Bank. On 30
December 2006, Standard Chartered merged Union Bank with its own
subsidiary, Standard Chartered Bank (Pakistan), to create Pakistan's sixth
largest bank.

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Standard Chartered is also committed to all its stakeholders by living its


values in its approach towards managing its people, exceeding
expectations of its customers, making a difference in communities and
working with regulators.

Key people: Badar Kazmi CEO, SCBPL

1.3 STANDARD CHARTERED TODAY:

Today Standard Chartered is the worlds leading emerging markets bank


employing 30,000 people in over 500 offices in more than 50 countries
primarily in countries in the Asia Pacific Region, South Asia, the Middle
East, Africa and the Americans.

The new millennium bas brought with it two of the largest acquisitions in
the history of the bank with purchase of Grindlays Bank from the ANZ
Group and the acquisition of the Chase Consumer Banking operations in
Hong Kong in 2000.

These acquisitions demonstrate Standard Chartered firm is committed to


the emerging markets, where the Bank has a strong and established
presence and where they see their future growth.

2. INTRODUCTION:

Human Resource Management is the process of developing, applying and


evaluating policies, procedures, methods and programs relating to the
individual in the organization. Human resource management includes

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Human Resource Planning, recruiting, selection, training and development,


compensation, performance management and employee development.
Effective human resource practices relate to company performance by
contributing to employee and customer satisfaction, innovation,
productivity, and development of a favorable reputation of the firm in the
industry.

2.1 OBJECTIVE:
The Research has been undertaken to assess the Training & Development
practices of Standard Chartered Bank with the prime focus at how these
formulation of strategies and tactics contributes in enhancing the
employee’s performance.

2.2 METHODOLOGY:

The information related to the project has been collected from the
Standard Chartered Bank, Imperial Court. 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 annual reports
A comprehensive study of the literature has been carried out the see the
factors that help in achieving a competitive advantage in a dynamic
banking environment.

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2.3 SCOPE OF STUDY:

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.

3. 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

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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 and 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.

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4. DESIGN AND APPROACHES OF SERVICES:

4.1 SERVICES DESIGN:

Designing services to accommodate their unique characteristics is


challenging. One reason productive improvements in services are so low is
because both the design and delivery of service products include customer
interaction. The services provided at SC Bank are primarily based upon a
few approaches.

The outsourcing of payments continues to be a major area of focus for


finance and treasury professionals. Over the past three years, competition
in Asia has become more intense and this has helped drive the increase in
the number of companies that use payments outsourcing as a way to
reduce cost and focus on core activities.

4.2 APPROACHES TO REGIONALIZING THE PAYMENTS FUNCTION:

“Choose always the way that seems the best, however rough it may be,
custom will soon render it easy and agreeable.” Pythagoras Intuitively,
there are numerous benefits to regionalizing the payments function of
Standard Chartered Bank. This is particularly true where it has the critical
mass to justify an undertaking of considerable size and complexity.
Frequently mentioned benefits include: economies of scale, increase
control managed by a small, high quality team and standardization of
processes, amongst others.

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4.2.1 The Ad Hoc Approach:

The ad hoc approach is often the default method of regionalization of


payments and other cash management activities. This is often undertaken
when decision-makers make a priority determination that centralizing cash
management activities offers significant benefits to the bank and thus
should be implemented. At Standard Chartered this approach is frequently
accompanied by minimal investigation and planning, which invariably leads
to difficulties and dissatisfaction. The sum total of planning is often reduced
to determining which financial institute can best meet the open ended
requirements of the bank.

Banks may be guilty of reinforcing the ad hoc approach if they do not take
the time to understand their customer’s strategies, objectives and type of
businesses, and make recommendations that may not have been originally
considered. This can be a function of whether the service provider
considers the implementation of capabilities as simple sale or the start of a
long-term implementation.

4.2.2 The Strategic Approach:

The Strategic approach is also a priority determination for implementing an


SSC/CAP because it is not a stand-alone process, but rather part of a
global or regional strategic planning process that encompasses the entire
organizational structure of the Bank. Often this is accompanied by the
implementation of a high-end Enterprise Resource Planning (ERP) system,
such as Oracle or SAP, which integrates the various units.

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4.2.3 The Pragmatic Approach:

The pragmatic approach alone is not a priority but rather a post-hoc


determination. The most straightforward and effective questions that the
Bank asks itself when taking the pragmatic approach are:
Where are we now?
Where do we want to be?
What is the best way to get there?

4.3 Operational Strategies:

To steadily develop the lending business and upgrade the quality of loan
assets.
In lieu of Islamic banking the Bank aims to aggressively promote fee-
income business to raise non-interest revenue sources.
To provide efficient services to fulfill customers needs and create a high-
quality service image.
To actively set up business units in major business centers of the country.
To aggressively develop international banking operations and seek
opportunities to develop strategic alliances with other banks to create new
products and services.

4.4 Operation Plans:

The Operational Plans of the Bank are as follows:

4 Deposits
5 Loans

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6 Domestic Banking
7 Trust Operation
8 Treasury Operations

5. STRATEGIC HRM PRACTICES OF STANDARD


CHARTERED BANK

People, rather the employees are the asset of any organization. An


organization, whether it is a manufacturing concern or service oriented,
cannot function without the active participation of people.

Standard Chartered is the world’s leading emerging markets bank. It


employs 30,000 people in over 500 offices in more than 50 countries in the
Asia Pacific Region, South Asia, the Middle East, Africa, United Kingdom
and America.

5.1 Human Resource Planning:

HR planning is a process, which anticipates and maps out the


consequences of business strategy on an organization’s human resources.
This is reflected in planning of skill and competence needs as well as total
headcounts. Every organization needs to be able to forecast and plan for
its future people requirements.
At Standard Chartered Bank, human resource planning involves
forecasting the numbers of people which will needed by the bank, and then
working out the best way of obtaining then as and when they are needed.

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5.2 Forecasting:

Forecasting is the major function of the bank’s HR department. The


forecasting activities include:

♣ Workforce numbers in sufficient detail to be useful.


♣ Likely changes to the work of the bank.
♣ Work force supply – this involves forecasting the variations in the
current work force estimated to occur over the following years.
♣ Impact on budgets and funding.

5.2.1 Who‘s responsible for it?

It’s easy to shift responsibility and say that personnel and human resource
departments should carry out HR planning, but it should be the concern of
every manager. As the Bank operates in a dynamic environment where
new and advanced practices are frequently emerging resulting in changing
customer’s requirements.

5.3 Good Practice Indicators:

Standard Chartered Bank makes sure that effective human resource


planning process is in place when
Appropriately skilled people are available to be deployed in the Bank’s to
meet forecast work demands.

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The Bank’s structure provides with opportunity for appropriate career


development, and is perceived to contribute to effective and efficient work
practices.

Relevant workforce data is readily available to inform management


decision making on human resource issues.

6. Standard Chartered Bank‘s Structure:

The Bank’s structure is the means by which the work is integrated to


ensure that the objectives and activities of individual work teams and
departments match the overall goals.
The structure of the Bank provides scope for the flexible deployment of
people and to promote equity, job satisfaction, motivation and commitment
to goals; as well as providing access to career development.

7. Workforce Analysis (Supply and Demand)

The effective collection and analysis of workforce statistics trends in the


workforce to be considered with the specific requirements for skilled and
qualified people to meet the corporate aims to be kept in mind.
Workforce statistics and analysis support Bank’s efficiency and
effectiveness by providing a firm basis for human resource planning. Any
information gathering systems in place should support manages and be
responsive to their needs as well as being easily accessible in the
workplace.

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8. Training & Development

Development is critical to our future business success. Our bank’s


performance will only continue to improve if we develop our people –you.
To develop our people is to invest in our future. We know you have the
motivation to succeed, to be good at your job and progress as far as you
can.

As Standard Chartered, training is a partnership between the employee


and the Bank. The Bank provides a framework within which the employee
can identify the training and development needs. Such training provides a
consistent standard of management learning throughout Standard
Chartered. It also enables the employees to take all of the programs or
study for individual modules according to their particular development
needs.

9. The Initial Two Years:

What the employee can expect to experience during initial 2 years training
is a blend of core and discretionary elements, such as:
Induction i.e. the processes that introduces the new entrant to the bank,
the employee’s own business or function and particular department.
Training in specific products or technical skills.
Work-based assignments in respective business or function i.e. doing a job
in a particular department for a period of time.

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Cross-functional attachments – experiencing short period of time spent in


another business or support function.

10. Long Term Training:

Development and training does not stop after two years. After this initial
training, the employees are faced with internal development programs,
business-related studies and professional qualifications, and the bank also
offers the opportunity to develop skills through externally accredited
courses. These are designed in conjunction with top universities and
business schools including postgraduate, MBA.

Accreditation Internal

External Schools Executive Development

MBA Diploma in Management

Certificate in Management Foundation Course

Induction Course

11. EMPLOYEE ORIENTATION AND TRAINING

11.1 Orientation:

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Every staff member joining Standard Chartered Bank has to attend a 2-day
comprehensive orientation to get a feel about the Bank and its business.
This orientation program provides a good chance to meet with seniors &
colleagues and to build up the team spirit.

11.2 Product Training:

Product training is provided e.g. cash product training, operational training


etc. to help the related staff to learn more about the products that the Bank
is providing.

11.3 Skill Training:

The bank provides a lot of skill related training e.g. credit workshop, sales
& negotiation skills, project management, etc. to help staff enhance their
skill in particular aspects.

11.4 On-job Training:

Staff members are continuously involved in the learning process in the


form of on-job training. Thus, a lot of on-job training opportunities and job
rotation to increase staff’s exposure are provided.

11.5 Self-learning:

The bank sends out CDs and books to staff for them to study on trade
knowledge, credit knowledge, etc. and staff will decide when he/she will
attend the Trade Skill Assessment (TSA) and Credit Skill Assessment
(CSA).

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11.6 Management Development Training:

In this training program, the employees are given strategic perspectives


and business goals management skills; people management, networking
and customer focus abilities to better understand and manage their jobs.

11.7 Specific Competency Training:

Specific Competence Training is to ensure that the staff excels in product


knowledge, regulatory and unique techniques needed for the particular
position.

11.8 Learning and Development:

Standard Chartered recognizes that it is essential that they have the best
people equipped with the right skills and knowledge to perform their roles
to the highest standards. They went talented professionals, who seek self-
development opportunities including continuing professional development.
In return the Bank offers excellent training and development. They focus
development on where they believe that they will get the greatest return,
by developing employee’s strengths.

12. Recruitment:

The Bank’s Management Trainee Development Scheme takes place in


Karachi, where they recruit management trainees. Alternatively,
candidates can apply to their local cities. It is the aim of management to

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recruit young, bright, energetic and enthusiastic graduates and post


graduates.

12.1 Who are they recruiting?

Bright, young graduate or a postgraduate, who cannot wait to start his/ her
career in the financial services industry.
Consistent academic performer throughout his/her education.
Career-oriented person
Energetic, ambitious, innovative and business-oriented person.
Recruitment Criteria:

Standard Chartered Bank recruits the most talented individuals from the
external market to supplement their internal pipeline of talent. Their Human
Resources department provides guidance on the us of psychometric tests
and has robust recruitment criteria to ensure that all candidates are treated
fairly, equally and with respect. It has a global Graduate Recruitment
Program; where in the region of 150 graduates are recruited each year on
a management trainee program across all businesses, functions and
countries.

12.2 Selection:

Standard Chartered selects employee based on knowledge, skills and


talent. They are committed to providing equality of opportunity to all
employees, regardless of gender, race, nationality, age, disability, ethnic
origin, or marital status. They are committed not jus to providing equality of
opportunity to all employee, but also identifying what unique strengths

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each individual brings to the roles they carry out and the development of
these strengths.

13. Employee health, well-being and safety:

Standard Chartered Bank believes that the health and well-being of their
employees and their families is important. They are concerned not only
about the physical health of their employees, but also their mental and
emotional well- being. Standard Chartered has policies & practices that
provide for a safe and healthy working environment. They place
importance on the safety and well-being of their staff, communities and on
the effect it’s working and operational processes have on the environment.
They are continually developing policies and practices designed to
maintain the highest appropriate standards.

13.1 Reward & Recognition:

Standard Chartered Bank aims to reward the talented and high performing
employees competitively. They regularly conduct salary surveys to ensure
that the reward package remains competitive in the market place. They
encourage continuous discussion; encourage regular review of employee’s
performance and development. This provides feedback to the staff about
how they are doing. The management links this to both financial and non-
financial recognition.
In addition to this, the bank provides various incentives in the form of
bonuses to encourage the employees and motivate them to continue with
their high performance. These include:
♣ Spot Award + Rs. 5000 as cash prize
♣ Surprise Award

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♣ Best Performer Award


♣ Service Quality Award
♣ YES (Year of Excellent Services) Award
13.2 Quality of Work Life:

This means a job that not only is reasonably safe but also for which the
pay is equitable. At Standard Chartered Bank every employee in confident
of his job security and has the assurance that he would remain on the job
for the agreed period. In addition to this, the workload is equitable divided
between the employees and therefore, they work with peace of mind and
tranquility, resulting in the overall enhanced performance of the
employees.

13.3 Mutual Commitment:

Both the employees and the management try to meet the common
objectives. They coordinate their activities to ensure that they are heading
towards achieving the established goals and meeting the set targets within
the specified time frame.

13.4 Mutual trust:

At Standard Chartered Bank prevails an environment of confidence and


mutual trust? The documented employment policies are honestly
implemented to the satisfaction of both management and employees.

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14. Job Design:


Job design comprises of six components. These are:

14.1 Labor Specialization:

The Bank aims at hiring specialized people and their recruiting criteria are
based on their knowledge, expertise, past working experience and their
exposure to the professional fields. Employee wages are set in accordance
with the aforesaid recruitment criteria and most of them are intent with
what they earn at Standard Chartered Bank

14.2 Job Expansion:

The Bank improves the quality of work life by assigning various tasks to
the employees so as to equip them with the different services offered by
the Bank. Job expansion includes job enlargement, rotation, enrichment
and empowerment.

14.3 Psychological Components:

For enhancing the skills and abilities of the work force, the psychological
components of job design are also catered for by Standard Chartered
Bank. These psychological components focus on how to design jobs that
meet some minimum psychological requirements of the employees. These

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components are utilized in accordance with Core Job Characteristics,


which suggests that the jobs designated to the various employees in the
bank include the following five aspects:

♣ Skill Variety
♣ Job Identity
♣ Job Significance
♣ Autonomy
♣ Feedback

14.4 Self-Directed Teams:

A self-directed team is a group of empowered individuals working together


to reach a common goal. At Standard Chartered Bank, these teams are
found in almost every department to achieve the set targets. These teams
are an integral part of the personal loans, sales and credit cards
department where they are established to achieve both, the short-term as
well as long term objectives.

14.5 Motivation and Incentive Systems:

Sometimes the psychological components are not enough for motivating


the employees. In this case, monetary incentives play a vital role for
increasing the commitment of the employees toward their jobs and in
return enabling them to have job satisfaction. These monetary incentives
and rewards are given in various forms to the employees who act as a
strong motivational factor. These could be given as:

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• Spot Award + Rs. 5000 as cash prize


• Surprise Award
• Best Performance Award
• Service Quality Award

15. Performance Management:

Traditionally, the formal performance appraisal system has been viewed as


the primary means for managing employee performance. Performance
appraisal is an administrative duty performed by managers and primarily
the responsibility of the HR function.
Performance management is the process through which managers ensure
that employee activities and outputs are congruent with the organization’s
goals. It is central to gaining competitive advantage.

16. Components of Performance Appraisal:

At Standard Chartered Bank the components of performance appraisal are


in respect of the five W’s that include: Who, What, Why, When and Where
of performance appraisal.
Who: All employees work under the supervision of managers. Therefore,
the manager is the best person to do performance appraisal of his
subordinates.
What: The appraisal at the organization includes appraisal of current
performance as well as the future potential. It also includes evaluation of
human traits such as behaviors, interaction with other staff members etc.

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Why: It is concerned with creating and maintaining a satisfactory level of


performance of employee in the present job, highlighting his needs and
potential for personal growth.
When: It is carried out on yearly basis. The manager uses good work as
opportunity to provide positive thrust and uses poor work as a basis for
training.
Where: The performance appraisal is done in a cordial and friendly
environment.

17. Approach of Measuring Performance:


The performance of the employees can be determined by making an
overall comparison among individual‘s performance. Hence a performance
measurement system is developed that incorporates a tool for measuring
performance.

18. Appraising Employee Performance:

18.1 Individual Performance Management:

A longstanding question that Standard Chartered Bank and many other


organization are still grappling with is whether and how to reward good
performance (or, conversely, how to deal with persistent poor performers).
One approach used by the bank is to make salary increments or
progression on the pay scale conditional on good performance.

18.2 Performance Management at Senior Levels:

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Typically, performance management systems for senior officials include


elements additional to performance-pay, such as time-limited contractual
appointments. The Bank has adopted this approach. Key features of its
system include the following:
Senior officials are recruited to a unified career structure known as Grade
A, which incorporates most top-level positions.
On the basis of evaluation, the senior position employees are paid a
performance bonus.

18.3 Linking Performance to Promotions:

Some have argued tying career advancement to performance is more


important than linking performance and pay. Whereas the benefits of pay
for performance are uncertain, particularly in the lower echelons, there is
no doubt of the need to ensure that the best people rise to management
levels.

19. Analysis
19.1 Training

Training refers to a planned effort by a company to facilitate the learning of


job-related knowledge, skills, or behavior by employees.
Standard Chartered provides a framework within which the employee can
identify the training and development needs. Such training provides a
consistent standard of management learning throughout Standard
Chartered. It also enables the employees to take all of the programs or

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study for individual modules according to their particular development


needs.
Development Programs are carried out in the first two years of joining,
applicable to all management trainees, across the Bank. Each business
and function would decide the appropriate development needs for each
individual, within this overall framework.

19.2 Performance Appraisal:

Each organization must create and communicate performance measures


that reflect its unique strategy.
Performance management is the process through which managers ensure
that employee activities and outputs are congruent with the organization’s
goals. It is central to gaining competitive advantage.
A well-executive performance management plan enables an organization
to achieve critical goals such as:
1 Recognize the efforts and contributions of current staff.
2 Reward staff with compensation directly linked to performance.
3 Motivated staff to improve performance.
4 Orient staff towards goal achievement.
5 Retain key employees through the use of competitive compensation
programs.
6 Attract quality employees with an effective performance management
system.

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