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Human Resource Management (HRM) Individual Assignment Muhammad Ahsan Riaz Emmanuel Wanki 130479MAR MBA (Finance) A CM 706 April 2011-April 2012 4th July 2011 2146

INTRODUCTION
Human Resource Management is the process of developing, applying and evaluating policies, procedures, methods and programs relating to the individuals in the organization. Human resource management includes all aspects like Planning, recruiting, selection, training and development, retention, compensation, Performance management and employee development. Strategic human resource management is the process of linking the human resource function with the strategic objectives of the organization in order to improve performance. (John Bratton Strategic Human Resource Management Ch 2).Still its debateable whether SHRM is a process or outcome. Wright and Snell (1991) considered SHRM to be organizational systems designed to achieve sustainable competitive advantages through people. As a process, Ulrich and Lake (1991) described SHRM as a process of linking HR practices to business strategy.

Section A (1.1) To what extent does the approach to Talent Management at Standard Chartered Bank display features of SHRM? (10 marks) FUNCTION OF SHRM The function of the SHRM is goal alignment of Human Resource Management of an organisation with its strategic objectives. In the past the HR management teams were not usually consulted before designing and implementing the strategies, but this has changed dramatically in the recent past. Now a day quarterly, and annually plans are prepared and HRM management teams give their input. As mentioned in the case study, Banks talent programme was developed to build managers for the future. Geraldline mentioned In CIPD conference said that a great business needs great managers; that great managers build staff engagement; and that people perform best when they play to their strengths, but its not an easy task for an organisation with over 60,000 employees of more than 100 nationalities operating in 50 countries. Suitably qualified and experienced employees are hard to find in todays competitive market. As Standard Charters focus is on fast-developing emerging

markets, it has to fight harder than most. Banks talent program was developed so that the managers can have the best employees to achieve the goals of the organization. The goals of Bank and HR strategy are aligned to have a pool of talented employees. There are some global standards and some areas where managers can make their own decision, like managers are given freedom either to use 180 or 360 degree feedback. Employee data is collected using softwares and tools on global basis and service centre in Channai produces human capital score cards. This helps to evaluate employee performance and understand their training needs. This also helps to understand employees motivation level.SHRM also helps in matching resources to future needs. As the Employees are from over 100 nationalities with diverse cultures. Its managers responsibility to manage such diversified Human capital. Another feature of SHRM is that managers are provided with workplace learning. In given case managers are given tools which help them improve their leadership skills and SHRM is aligned with Banks strategy.

SECTION A (1.2) Comment on the relevance of this approach in the light of the recent banking crisis? (10 marks) At the moment world is going through recession, Lehman Brothers collapse and bail out of different banks has worsened the situation. Total 37 billion pounds bailout package was given to UK banks alone. In future Banks will face shortage of skilled staff and managers while Standard Chartered Bank will have enough number of skilled managers. Other Banks will have to make lots of hirings which will be quite difficult keeping in mind the talent shortage especially in emerging markets like China, India & Brazil. In the past, mostly the HR department was not consulted before setting strategic goals. Employee remuneration packages were not based on their contribution in achievement of strategic objectives of the organisation. As a result Employees were demotivated and unable to perform according to their strengths. Those who had headroom for better performance did not contributed up to their strengths as they saw little reward for themselves. The aim of Standard Chartered Bank is to have sufficient supply of talented employees and high performance managers. Banks aim is to significantly increase its leadership capacity by 2011 by this time recession is expected to disappear. A wide pool of trained and experienced leaders and managers will be available. If the employees will perform better this will result in the betterment of Banks overall operations and customer satisfaction. In our case its difficult to measure contribution of individual employees for the achievement of organisations strategic objectives due to over 60,000 workforces. Using SHRM system and Human Score Cards has allowed the Bank to understand its employees. The appraisal system classifies employees in five categories. The highest level are those with highest potentials and lowest being the under performers.HIPOS are critical to Banks success and bank wants to retain them. There is an on-going debate whether to reveal this classification to the employees or not as this can be demotivating to the employees. This classification will help managers to do annual stock-take of his capacity, after reviewing the scorecard of their employees managers will be able to pay more attention on employees needs and training requirements which will result in enhanced performance. Banks programme is to create better leadership for the future. The employees are offered to take an

online assessment which will help realise them their potential and strengths and play to their strengths. Over all enhanced performance will be achieved if the talent programme will continue with same zeal. SECTION A (1.3) The increasing interest in measuring SHRM impacts on organisation is further stimulated by a growing number of studies that show a positive relationship between human resource management and organizational performance. Debate over SHRMs impact on organisation is ongoing with most of the research coming from either US or UK. HR management can aid top level management in understanding HR contributions in achieving organisational strategic goals and objectives. This will help top management evaluate the performance and contribution of HR. This will also help evaluate whether the SHRM programme is a success or failure. If the programme is not properly organised, managed and supervised the success is very hard to find.Filure will probably result in losses being incurred and organisation losing its competitive advantage. The prime purpose of measuring impacts of SHRM is to evaluate its contributions in achieving organisational strategic objectives. Other strategies might include Watson Wyatts Human Capital Index, balance scorecards and SHRM audits. EFFECTIVE MEASUREMENT One metric that can be used to measure the alignment of HR policies and organisations strategic objectives is the association between HR practices and business performance measure. Another measure is how much shareholders wealth has increased due to implementation of HR polices. One more aspect would be the effect on entitys financial performance and productivity. One more crucial measure of the impact of SHRM is its effects on the employee performance and attitudes; SHRM should help to increase customer satisfaction, employee satisfaction. Increased motivation in employees which will help them to not only meet the expectations but to exceed. Year on year comparison of Score cards of the employees can be used to judge the improvement in their performance. If they score more than when last evaluation was made it assures that SHRM polices are beneficial for them. SECTION B (3) Human Resource Development (HRD) is often seen to be a central feature of SHRM. Discuss the role and importance of HRD in achieving SHRM organizational outcomes. (10 marks) The alignment of organisational strategy and Human Resource Management has helped improve relations between employees and top management. Conflict of interests exists between top management and employees. There have been efforts to resolve these conflicts by increased incentives and reduced working conditions. In the recent past greater emphasis was put on carer development, performance related remuneration packages.SHRM helps to align individual employee goals with those of the organisation. If employee goals are not aligned with those of the organisation it may result demotivation of the employees and probably organisation failing to accomplish its strategic goals. An organisation which uses SHRM takes input from HRM department in making organisations objectives. Other aspect of employee relations wills, be putting greater emphasis on indivuals and their performences.Employees get the feeling that they are being looked after and taken care of. Which will give them encouragement, motivation and better relations with the management? This also

helps develop commitment towards an organisation. Employee relations could also be included in SHRM to formulate procedures and polices giving equal opportunities to all employees, there should be no discrimination on any basis. Issues like fair practices, sexual harassment and labour relations should be given considerations.Now days organisations are trying to become more competent, they are also determined in building strong employee relations. Organisations have come with golden shake hand schemes; early retirement plans and staffing cuts. They are also renegotiating employee benefits and incentive programmes and working to retain their workforce. Employees may be given incentives like health club memberships, family extended insurance policies etc. to motivate employees. If changes are properly communicated to the employees this will help improve employee relations. If all employees are given equal opportunities and policies are applied fairly, this will also help attracting new employees Organisations policies are provided in the form of handbook for future refrence.This helps to familiarise new employees understand organisations working procedures and will also help to improve employee relations. Employees contributions should be recognised and rewarded. This will increase employee motivation which will result in enhanced overall organisations performance. One-on-One sessions with employees will be very helpful in making them better understand their duties and responsibilities resulting in enhanced performance. There should be a properly defined complaints procedure within an organisation including both formal and informal complaints procedure. A senior manager with authority may be appointed to resolve complaints. The feelings of mutual trust, proper well defined communication channels and uniform application of organisations rules and procedures will help enhanced employee contribution Promotions should be related to employees contributions in achieving organisations strategic goals. Powers are delegated employees feel empowered and there exists proper chain of command in the organisation. The manager working with his team knows better than anyone else about his or her team. At Standard Chartered Bank, managers are provided with freedom to select the tools which suits them best. Managers may choose 180 or 360 degree feedback for performance appraisal of his subordinates. Employees are classified in five categories top performers at the top and underperformers at the bottom. High performers are the ones considered by the organisation as crucial for achieving organisations objectives and perform above expectations. Others may need skills improvement, training sessions and counsellings.This classification is not disclosed to the individual employees and only authorised management personals have access to this record. This data is converted in to separate human score card of each employee. SECTION B (4) What are the main features of a Performance Management System? In what ways can organizations ensure that such systems fulfil strategically useful outcomes?

In todays competitive market organisations have to work hard to gain competitive advantage. Organisations need to deal the problem of shortage of skilled labour by implementing performance management techniques which have gained fame in recent past. In Human Resources aspects Performance management means continues development of workforce in order to gain competitive advantage. There are some problems regarding proper understanding and implementation of

Performance management system within an organisation. Prime aspect of Performance management system is that its quick to react to any changes. An organisation needs to value its employees and needs to invest for the development of its workforce which can be a a major part of Performance management system. A good performance management system should pay attention to encourage the behaviours that is desired and valued. This will help to increase employees motivation. An effective Performance management system should be able to translate strategies in to actions. If the competency profile is in a position to support the companys goal they become instrumental in development of the human resource which is necessary in the development of the goals of the business. (Grieves 2003).The performance management system needs to be a channel to communicate strategic objectives of the organisation and to get feedback and inputs from the employees.

An effective performance management system should help improve employees behaviour. For the successful implementation of a Performance management system it needs to be understood and accepted by all managers and employees. Different organisations have different cultures and Performance management system should become integral part of the organisational culture. An effective Performance management system reduces conflicts of interest between employees and the management. It also helps to evaluate the performance of the HRM and the contribution of an employee for the achievement of organisational goals and objectives. It should help make quarter and annual plans and to communicate them to the employees what organisation expects of them. Employees rewards, promotions will be dependent on their contribution. Different organisations come with different strategies to gain competitive advantage. Different organisations come with different Performance management systems to achieve their organisational goals. An organisation needs to plan, design and implement its Performance management system to get competitive advantage. The performance management system is supposed to be clear and if the link is unclear there should be revisiting of the document yearly in each of the performance review. (Grieves 2003). An effective Performance management system should ensure the fair treatment and uniform application of policies and practices within an organisation. It also delegates responsibilities and makes effective accountability procedures. There should exist a formal complaints procedure within an organisation.

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