Assignment - I

On

“Performance Management System of Standard Chartered Bank”

Submitted By:

MBA- V

Submitted to:

GuruLaxmi Hait

Ace Institute of Management

Kathmandu
November, 2019
Performance management is a term used and discussed differently to study the varied topic.
Here, we describe it as, the systematic process by which the Department of HR involves its
employees, as individuals and members of a group, in improving organizational effectiveness in
the accomplishment of agency mission and goals and also provide feedback. A performance
management system helps HR managers establish clear performance expectations through which
employees can easily understand what is expected of their job. It allows managers to reinforce on
their employees, the individual accountability to meet their goals and evaluate their own
performance. (Rohia, 2018)

Performance management system is a constantly evolving phenomenon. New performance

management trends emerge every year and all too often, human resource departments get it
wrong. Historically, organizations tended to carry out this planning stage once a year. However,
with the business environment becoming increasingly agile and fast-moving, many organizations
are adapting their processes to set short term objectives for every three months. The
organization’s goals and values should feed into performance planning to ensure that individual
performance aligns with the overall strategy of the organization.

In banking industry performance management were mostly narrowly focused and used to
function only in isolation without bearing any association with the overall organizational goals.
The side effect of this system was that it generated uncertainty among the employees and
managers on any novel imitative of HRM. But later on it was also realized by the banking
industry as well that performance appraisal system of an individual employees helps in to
monitor performance in an organized manner with factors such as job knowledge, co-operation,
judgment and includes factor that analysis should not be limited to past performance alone and
potential of the workforce for future performance must also be analyzed.

We have analyzed performance management system of Standard Chartered Bank in comparison

to the theoretical knowledge learned in the class room lectures.

Standard Chartered Bank Nepal Limited offers a full range of banking products and services to a
wide range of clients and customers. The Bank has been the pioneer in introducing 'customer
focused' products and services in the country and aspires to continue to be a leader in introducing
new products in delivering superior services. (Standard Chartered Bank, n.d.)

Vision

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“Catalyst for change”

Standard Chartered Values

 Creative
 Responsive
 International
 Courageous
 Trustworthy

Our study found that Standard Chartered Bank Limited has adopted performance management
system and sets high-performance goals and coaches’ staff to improve performance. The bank
always considers job analysis and job descriptions, customized performance appraisal forms and
conducts valuable performance appraisals training.

Theme 1 – Performance management system of organization is evidently defined to every

employee

During the research it was found that Standard Chartered bank employees are very much well
acquainted with the organizational performance management system. An effective performance
management system works towards the enhancement of overall performance of a corporation
by managing the performance of entire workforce and it ensures that individuals are attains the
organizational goals and ambitions. An efficient performance management system plays an
important role in managing the work in an organization and it is being anticipated that work is
equally ascertained and sufficient amount of alignment throughout the corporation has been
made.

Findings – Employees are well familiar with the organizational performance management
system and every employee is dedicated towards development of individual with the required
amount of commitment and competency to work towards the shared meaning objectives
within the framework of bank.

Theme 2 – Performance appraisal is made on yearly basis

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After assessing the acquired data it has been found that the bank undertakes performance
appraisal program on yearly basis. The main attention of performance appraisal program of the
bank is to achieve the capacity of the employees to the full extent in favor of both company and
employees. The main aim is to explain expectations and roles and responsibilities with the
expected behavior. Managing the performance of employees is one of the biggest issues that
corporations face today as this entirely depends upon the commitment level of employees and
depicts the clarity of performance.

Theme 3 – Assessing training needs and promotion of employees is main motive

From the assessment it has been found that the main motive with which the bank undertakes
performance management program in the organization is for promotion of employees and
evaluating the need for training programs in the corporation. The banking system has enforced
the performance management system well in corporation and the main attention that is being
given here is on the analyzing the need for training among employees and after reviewing the
performance promotes employees accordingly. Performance management and review of
employees is essential tool for development of individuals through which identification of a
company’s highest level performer is analyzed. Performance appraisal program aids in to assess
the banks top performers and it also ensures that most productive delivery of pay increase and
promotions. The review of employees can also depict the area of weakness and probable
improvement in the workforce that aids in to assess the training needs. The bar diagram above
depicts that maximum number of respondents believe in that promotion and analyzing the
training and development needs is the main motive of bank. In the bank by consistently updating
the training programs which are based on performance management program can increase the
organizational productivity and efficiency within the time period. While promoting any of the
employees the bank gives importance on analyzing an individual’s performance firstly
throughout the year and then undertakes the decision to promote anyone in the management
structure. Other than this the bank also gives attention on assessing the training needs and look
out the gap between an individual’s performance and knowledge level related to work. It can be
stated that performance management system acts as an aligning factor that acts as a path between
employee’s performance and evaluating the training needs for individuals.

Findings – It can be stated that bank has implemented this system mainly to develop an
enthralling system in the organization. This system provides much of benefit to management as
well as workforce, it entails a collaborative employee appraisal system that facilitates people and

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managers to work commonly and set goals to monitor progress in the development of bank. With
the help of a review system management exactly motivates growth and honesty with the help of
which employees speak up about diverse areas of required improvement which they perceive in
themselves. Employees most of the time have deeper insight in their personal issues as compared
to superiors but in this condition the workforce must feel free to bring out the weaknesses
without harming the reputation or trust around the employee workforce.

Theme 4 – Sometimes conflict arises when performance is undertaken

After the analysis it has been observed from the response that many of the respondents feel that
sometimes conflict arises among the workforce when performance appraisal is undertaken. It
has been found in many of the researches that whenever performance appraisal is undertaken
many of the times it creates conflicts and issues in the management. The decision taken by
management brings in norm that revolves around conflict and direction is anticipated that
personal attacks are not being tolerated. Any of the group that comes in front together to
consistently lead an organization or to enhance the process would acquire much of benefit from
other group norms. In every workplace conflict arises and is mainly undertaken where in ideas
and innovations are respected and different groups and personalities work together and interact
with each other. Diverse needs and view point on things that can or should be accomplished
may arise within the workforce and have the potential to manage conflict. Most of the time
such kind of condition arises people are able to include in a healthy and respectful issue and
consideration among each other point of view. When it is handled properly and given a chance
to deepen the understanding from others and design more of inclusive and creative outcomes to
problems.

Theme 5 – On the basis of behavioral efficiency performance appraisal is undertaken

The analysis depicted here in reflects that bank has designed the performance management
system which is mainly focused on enhancement of behavioral efficiency. The system has been
established in the bank to entail a proper monitoring of important performance aspects that are
focused towards checking that company is achieving its predetermine strategies and objectives.
Since employees are an integral part of a firm and hence it is seen as the method that can be used
to the value with full capabilities of employees. It has been assessed in many of the researches
that this system have a strong and straightforward relationship with each other and the very aim
of this approach is enhancement in use of resources that leads to effectiveness.

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This tool enables an organization to evaluate and compare the performance against set
benchmark and appraise strategies and prevailing practices can be improved to augment work
benefit in the organization. Performance appraisal is term that is used to define the process
which is framed by an organization in order to ensure that every employee are well aware about
the level of performance anticipated of them in that particular role as well as objective of any
individual that will be required to attain the overall organizational aims and objectives.
Organizations undertaking performance appraisal provides employees the opportunity to have
one on one time with their superiors to discuss the scope of their job roles and responsibilities to
measure performance and training needs for future potential.

The management of this bank ensures that effective human resource planning process is being
devised and properly skilled people are present to be organized in the management structure to
meet the future forecast work demands. The structure of this bank offers maximum of work
practices. Suitable workforce data is readily available to inform management decision making
on human resource issues. Every individual employee working in an organization has their
own set of goals that include job satisfaction, fringe benefits, increased salary, self-respect, job
security, appraisal and equal employment opportunities. In this context human resource
management is developed to manage the issues of people in an organization as it is related with
them in several dimension of a firm.

Findings – The results acquired from the analysis depicts that standard chartered is undertaking a
suitable system to monitor the performance of employees and believes on the principle of equal
appraisal of workforce. As it discussed in secondary analysis it has been found that prior to
accomplish any kind of performance appraisal an equal division of work as well as individual should
be reviewed from every aspect so that detailed information could be acquired.

Theme 6 – Bank follows an excellent performance management system

Performance management system of bank is very much efficient and due amount of
significance is given to every aspect while undertaking a performance appraisal system. Bank
has enforced an effective performance management system as it assists in to work towards the
enhancement of overall organizational performance by managing work of every team and
individuals in order to ensure that attainment of overall corporate ambitions and goals are
undertaken. Performance management system of the bank enables it to manage the
performance in corporate and also aids in to ensure that workforce understands about the
significance of their own contributions with organizational goals and objectives.

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Through this system the bank also comprehends about what are actually expected form
employees and equally analyzes whether the workforce has necessary skills and support to fulfill
the anticipations. The human resource manager directly interacts with every individual about
their performance and achievements in the organization. In this regard they assess every
employee on the basis of their potential, enormity of work assigned and level of effort being
given into it.

Findings – The analysis reflects that bank follows an effective performance management system
through which it enhances the process and acquires organizational effectiveness. This system aids in
to ensure that proper alignments of objectives are associated and facilitates in to effective
communication in the entire organization. Performance management system facilitates a cordial
and smooth relationship between an employees and the superior which is based on
empowerment and mutual understanding. Through this system bank undertakes a continuous
open feedback sessions for job of the employees and establishes a clear link between
compensation and performance.

Theme 7– Bank follows Management by Objectives principle

Standard Chartered believes in innovative and sustainable approach to manage its people and
create competitive advantage by considering people as an asset for the organization. As strength
based organization, the firm undertakes a unique concept and focuses entirely on its employees
individual talents and assists them with several opportunities to put these into practice. Standard
Chartered views the system of Management by Objective (MBO) very beneficially for its
operation mainly as it gives importance to compensation packaging and this is the most vital
factor to retain key employees.

Findings – After the analysis of data it has been observed that management of bank is very
much supportive and offers required skills to manage the work as well as helps in employees to
increase their performance level. The bank rewards in whatever is achieved and how it is
attained and over diverse culture and the significance on values of both play a vital role in
compensation of decision making and in compensation decision making with sustainable
development in performance. The management of this bank has an approach to reward and
performance is designed to acquire sustainable performance and also ensures that policies of
remuneration supports on the business strategy.

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Theme 8- Bank follows a set standard to review performance of employees

In individual appraisal process weekly flow meetings are organized but fully fledged
appraisal is done on annual basis. At the time of appraisal the salaries are fixed and name of
employees who are eligible for bonus are also fixed. To assess the performance of team
monthly appraisals are also done and campaigns are undertaken when every team is under strict
observation. In this campaign whichever team performs the best is rewarded.

Findings – An effectual reward system aids in to attract result driven professional that can thrive
and succeed in the performance based environmental condition. Therefore, it is a vital motivator
and contributes majorly towards enhancement of productivity of employees if enforced
effectively. A suitable reward system should be associated with development of a suitable system
that focuses on performance based pay and presents ample amount of learning opportunities
along with a harmonious working environment.

As the increase of concentration on administrative management during these years, HRM plays a
more important role in managing an organization, such as the effects of HRM on innovation,
‘new way of working principle’ for working relations. Company’s productivity would be
developed and profit would be increased as well through supervising the whole process of
performance management, such as building objectives, checking feedback and evaluating
performance. On the other hand, employees are the resources and assets of an organization.
Organizations need to figure out strategies for identifying, encouraging, measuring, evaluating,
improving and rewarding employees' performance at work. Consequently, improved employee
performance could also influence organizational performance. This theory of performance
management has been effectively and efficiently implemented in practical workplace of Standard
Chartered Bank where people are valued as assets and performance management is availed to all
the employees working on the basis of their performance and behavior. Not only they are
appraised and reviewed, performance of the employees are further maintained by providing them
with various training, promotion, handling conflicts analytically and without biasness and
providing them with great compensation packages. While there are gaps which needs to be filled
for the perfect system, the performance management system of this particular bank has proven to
be quite successful to attract and retain talents from the competitive market.

From the findings, it can be concluded that Standard Chartered Bank Limited holds a favorable
image in the market, which is consistent with the market trends, and the reputation that it enjoys

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in the banking sector. It can also be concluded that the performance management system that has
been set in place serves to improve the organizational performance.

The core concepts of integration and balance in PMS design and use are complex phenomena
that may require intensive studies of the intended and actual use of various performance
measures for different purposes. Further research could be undertaken to compare changes in PM
use in specific decision-making

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 REFERENCES

Rohia. (2018, April). What is Performance Management System? Retrieved from

https://engagedly.com/what-is-a-performance-management-system/
Standard Chartered Bank. (n.d.). Retrieved from About Us: https://www.sc.com/np/about-us/