HUMAN RESOURCE MANAGEMENT AT STANDARD CHARTERED BANK

Standard Chartered today

Today Standard Chartered is the world's 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 Americas.

The new millennium has brought with it two of the largest acquisitions in the history of the bank with the 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 committed to the emerging markets, where they have a strong and established presence and where we see our future growth.

Globalization Of Business And Hr Policies

It is clear that SCB has acquired a globalization character and the business of the bank has more or less spread all over the world. The bank has formulated its HR globalization polices depending on the following factors to get the maximum result in the countries it is operating.

· Legal & Political Factors: Before setting up operations in any country SCB studies the prevalent legal and political system in that country. Countries with relatively stable constitutional and democratic governments having defined labor laws are not difficult to manage. In countries where the government is not stable, legal system not effective, handling of labor unions and employee relations becomes a bit more difficult. It is always important for the bank or any foreign institution to study the legal and political environment prevailing in the country.

· Economic Factors: The economy of the country where SCB wants to operate or conduct its business needs a careful study. In a growth oriented economy where GDP ratio and production level is high, the chances of deposit mobilization and lending operations are favorable. The wages in a country with growing economy would be higher because of the almost full employment conditions.

· Cultural Factors: The importance of cultural forces affects the bank’s HR Management cannot be over emphasized. Culture in fact represents values, beliefs and actions prevailing in the country. For example; if a bank has to operate in a predominantly Muslim country like Pakistan, the break for Friday prayers to the employees will become necessary as it is apart of strong religious belief.

· Individual vs. Group Values: In some of the counties including USA, the individual performance is rewarded without any implications. In contrast, the Bank with their operation in some Asian countries including Japan, the group oriented performance is preferred. These cultural strategies help the SCB to have its operations more effective all over the world.

Global Staffing Policies:

SCB as a matter of global employment policy prefers to employ locals in the country of operations and only senior employees are either expatriate or from the host country. This policy is appreciated in most of the third world countries where a bank is able to provide the employment opportunities to the citizens of that country.

EMPLOYEES RETENTION AND MANAGING DIVERSITY

Attracting & Retaining the Best Talent at SCB:

Working at Standard Chartered provides the opportunity to:

· Work for an organization operating across 56 countries.

· Be part of an organization with a 150-year history and a reputation for excellence across the Bank’s businesses and markets.

· Benefit from our unique approach to people management which recognizes values and develops individual strengths and talents.

Harnessing Diversity through Inclusion:

Standard Chartered employ over 33,000 people across 56 countries and territories. The workforce comprises over 80 nationalities (including 45 at senior management level) and close to half is female. We want to lead by example in building a multi-talented, diverse and representative workforce and leadership. The simple logic behind our commitment to diversity and inclusion is to attract and retain the best talent and harness the differences individuals bring, enabling them to realize their full potential. We see individual differences as strengths, allowing us to deliver higher performance and true competitive advantage. Our Diversity Council provides a strategic, global focus to diversity and inclusion in the Bank.

Attracting new Talent:

We work hard to attract and select employees with the talent and skills to achieve outstanding performance. Internal and external research clearly shows that the closer the fit between an employee’s strengths and those required for the job, the greater their success. Robust assessment tools and processes are used to benchmark candidates against the talents required for exceptional performance.

Identifying future Leaders:

The Bank's on-line global graduate recruitment site provides an effective method of attracting and recruiting talented graduates. Successful applicants join a two-year International Graduate Program which stretches them through on-the-job learning and rotations, in-depth business training, performance coaching and three international, residential workshops. Following the completion of the program, our graduates receive continued support in building their careers.

Helping people to make a difference:

We work alongside employees to support career growth. This includes personal development planning, strengths identification, mentoring and structured learning and development is encouraged for all staff and is essential to enhance and develop our employee capabilities.

RECRUITMENT PROCESS

Recruitment Website:

Standard Chartered follow the application procedure online within its recruitment site. Applicants can review current job openings by running a search using the job finder tool. Once they have identified positions of interest, complete and submit the online resumes. If their qualifications and experience are found to be suitable for the position applied, they will be contacted for interview within 6 weeks.

Applicants can also post their resume to explore other job opportunities, which have not been publicized, on the web page. Their skills can also be matched against future job openings and they will be notified if their skills and qualifications match the requirements for these openings. All applications will be treated in strict confidence. Submitted resumes will be kept for a period of six months and will only be used for recruitment purposes.

SELECTION AND PLACEMENT

Selection:

Following the recruitment process, the selection process begins by choosing the individuals who have a required qualification to fill in the job in the organization. Selecting the right people is of paramount importance and SCB realizes the necessity of making right selection and placing them in the right job. The time allocation in the process of selection though high but considering the importance of hiring the most appropriate employees in the bank, the cost and time involved is ignored.

Number of Interviews conducted before a Job offer:

On an average there are 3 stages - one interview with Human Resources and two with the business hiring for the position. This process gives a more selection responsibility to the concerned manager, whereas the HR department conducts a single interview primarily to screen out the undesirable candidates.

Placement:

Placement and selection are in a way part and parcel of the same process. Placement of the selected employees in the bank must be done on a job most suitable to the selected employee.

SCB takes pains and the selected individuals are assigned the right job considering the man’s specifications. Generally the fresh MBA’s selected are trained in a group and those with outstanding results are given extensive training on specialized fields such as treasury, corporate finance, etc. In order to place them directly in the treasury or the financial control division.

Training Human Resources

SCB’s Philosophy of Learning & Development:

· Everyone is uniquely talented.

· People are most effective when they are able to identify and develop their individual strengths.

· People thrive when they take ownership of their own development and are provided with the right support and encouragement to do so.

Our approach to developing people’s strengths is simple. We believe:
This strengths-based approach lies at the core of the Bank’s development philosophy. Managers are encouraged to help employees identify and develop individuals’ strengths to help themselves and their teams to deliver sustainable performance. A large percentage of employees have benefited from formally identifying their strengths using an on-line self-assessment system. This is supported by our trained in-house experts, or Strengths Coaches, who facilitate the development of action, plans to help individuals and teams improve their effectiveness.

Training provided to Fresh Graduates:

Fresh graduates willing to work in the bank must clear a test and then the successful applicants have to go through a two-year international training program which includes stretching job rotations on a permanent basis which stretches them through on-the-job learning in depth business training, on going performance coaching, three international residential workshops and support tools such as e-learning and a buddy process. This program is known as “Graduate Development Program”.

The Bank offers exceptional international exposure to our Graduates during and following the program, whether it be working in a global project, attending the residential programs or just talking to colleagues on the other side of the world!

Graduate Development Program:

The graduate development program consists of following four programs:

1. Local Induction:

Graduates journey in their home country and has been designed to give them a clear understanding of the organization, an in-depth view of their country's businesses and functions and details of on-the-job training. It will also give them an opportunity to network with business managers and to clarify their development plan at the outset.

2. International Induction Program:

This program has been described as ‘a survival kit’ for new Graduate Associates. In fact it is much more than that. Firstly they will get the opportunity to build an international network and develop friendships within the Graduate Associates community. Secondly, they will learn about the organizations strategy, market challenges, risks and opportunities and how that translates to their business and country. They will also have the opportunity to build their own self-awareness and learn more about the SCB’s core values.

3. International Career Development Program:

The Graduates roughly one year into their career with SCB attend a second residential workshop focusing on their individual career development. SCB help them to identify their strengths and understand how it can best leverage them. Graduates will go through a series of challenging activities aimed at understanding their own motivations and drivers, building upon their networking and personal effectiveness skills.

International Graduation:

This workshop marks the end of Graduates time as a Graduate Associate and helps them to take full ownership of their career. SCB provide them with structured opportunities for self-assessment, looking in-depth at what they’re good at and where their aspirations lie. It helps them to take control of their career goals and look forward to a long lasting, successful future with Standard Chartered! At the end of the two-year program SCB take a close look at graduates individual development needs and career aspirations and start to match these with challenging career opportunities available - these may including cross-functional and cross-geography moves, if appropriate.

CAREER DEVELOPMENT AT STANDARD CHARTERED

Our mission at Standard Chartered is to be the world’s best international bank, leading the way in Asia, Africa and the Middle East. We strive to be the best, to be the Right Partner for our customers and to do that we are focused on attracting, developing and engaging the best talent in the marketplace. As Chief Executive, I see the International Graduate Program as a critical component of Standard Chartered talent strategy.

I firmly believe we offer exceptional graduates a unique proposition. First and foremost, the program is one of the most international, if not the most international, you’ll find - anywhere. Yes, we have a network of Graduate Associates growing their careers in 25 countries around the world. But it’s more than just our geographical reach. Our ‘international’ value is part of the fabric of the organization, the way we do business. It’s about open-mindedness, creativity, diversity, ambition and personal leadership – all embodied in our graduate program and all strengths I am looking for in leaders of the future.

I encourage you to find out more from these pages about our distinctive offering – our enduring values, passion for our customers’ success and ambitious strategic intentions. You will learn that we are a leading organization in growing and vibrant economies. The future is exciting.

If what you read intrigues you and if you believe you can really make a difference, I invite you to apply and explore the possibility of a stimulating, dynamic career with Standard Chartered.

PERFORMANCE MANAGEMENT AND APPRAISAL AT STANDARD CHARTERD BANK

Standard Chartered being a foreign bank is disciplined and performs tasks rigorously. It is disciplined because following objectives are considered very essential i.e. what, when and how things must be done. Every person is monitored and commented on his performance and thus given a rating accordingly. There’s no strict system of hierarchy being followed.

Evaluation System:

Individual & Team based appraisal

The corporate managers directly talk to every individual about his performance and achievements. They analyze each individual on the basis of his potential, the enormity of task assigned, and how much effort is being put into it.

Individual appraisal

Weekly flow meetings are held but full-fledged appraisal is done on yearly basis. During the appraisal the salaries are set and the names of employees eligible for bonuses are decided.

Team based Appraisal

Monthly appraisals are done for analyzing teams. Reporting is done region wise. Sales campaigns are organized and it is this time when every team is under strict observation. Whichever team performs best i.e. wins is rewarded. Latest campaign organized was “Sky is the limit”.

On the whole the appraisals are done keeping in mind what you do (Grades A-E) and how you do it (Grades 1-5). The best rating you can get is 1a.

Appraisal Process

Performance is reviewed and discussed with the supervisor. Each objective has to be completed in a specific time period. The employee is told which work he has to do, how the work is going to be done, which ways or means he is supposed to use to accomplish his task and if the employee has any sort of problem the head of the department is there to help them.

Employee Recognition Program

Employee’s recognition is very important to encourage and mould the employee towards better performance in his job. SCB runs an employee of the month program which is intended to highlight and name the best employee for the month. Apart from encouraging the winner of this program, it helps in creating a competition among employees where each employee would try to earn the title of best performer of the month.

Employee Involvement Program

Employees can easily take their problems to their seniors including the top management. They have an open door policy. Meetings are held on need basis usually it takes place once a month not weekly in which employees can share their views and ideas. They do encourage the ideas of the employees and if they are suitable then these ideas are implemented and employees whose ideas are selected for implementation are also rewarded.

Historically in Standard Chartered employees were give increment as other banks gives to their employees. That is according to following standard grades:

A--- Which signifies Excellent, given e.g. 10% increment

B--- Which signifies Above Average, given e.g. 7% increment

C--- Which signifies Average, given e.g. 5% increment

But the disadvantage of this reward system was that the difference between the increment given to B grade employees and C grade employees was very narrow i.e. only 2%, which means that even an employee who does not work well was given 5% increment. This eventually also leaded to high cost to the organization.

Later the company came up with a new concept of Pay for Performance reward system in which apart from basic salary a handsome amount was given on the basis of performance.

For example, few years’ back one of the employee who had come up with a new project design was rewarded with PKR 35 hundred thousands. With results of unexpected pay for performance reward supported by a letter of appreciation also motivated those employees who previously did not perform well.

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Pepsi Human Resource Management

FOREWORD

This report is based on the Human Resource Management implications practiced by Pepsi (Sales Department). The entire report is divided into three Parts. Each Part will discuss in detail the Human Resource Management practices by Pepsi. The First Part will discuss the Planning. The Second Part comprises of the Development and Direction and the Third Part of the report will deal with the Evaluation of its employees used by Pepsi.

The break up of the report into parts is for the convenience of the reader and to provide a better understanding of the text. This will help the reader to understand how Human Resources Management is carried out in the company and how it copes up with the modern environment. Figure, graphs and exhibits are used to provide supplementary information. The report also consists of the Company and Industry Profile and also the Competitors Analysis, and the Quality Management by Pepsi and a set of necessary information.

We have tried our best to make sure that this report provides a realistic view of modern-day Human Resource Management.

ABOUT PEPSICO

Pepsi-Cola North America, headquartered in New York, is the refreshment beverage unit of PepsiCo Beverages and Foods North America, a division of PepsiCo Inc. PepsiCo Beverages and Foods North America also comprises PepsiCo's Tropicana, Gatorade and Quaker Foods businesses in the United States and Canada.

Pepsi-Cola North America's carbonated soft drinks, including: Pepsi, Diet Pepsi, Pepsi Twist, Mountain Dew, Mountain Dew Code Red, Sierra Mist, and Mug Root Beer account for nearly one-third of total soft drink sales in the United States.

Pepsi-Cola North America's non-carbonated beverage portfolio includes “Aquafina”, which is the number one brand of bottled water in the United States, Dole single-serve juices and SoBe, which offers a wide range of drinks with herbal ingredients. The company also makes and markets North America's best-selling, ready-to-drink iced teas and coffees via joint ventures with Lipton and Starbucks, respectively.

PepsiCo, Inc. is one of the world's largest food and beverage companies. The company's principal businesses include:

Frito-Lay snacksPepsi-Cola beveragesGatorade sports drinksTropicana juicesQuaker Foods

PepsiCo, Inc. was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998. In 2001, PepsiCo merged with the Quaker Oats Company, creating the world’s fifth-largest food and beverage company, with 15 brands – each generating more than $1 billion in annual retail sales. PepsiCo’s success is the result of superior products, high standards of performance, distinctive competitive strategies and the high level of integrity of our people.

TERRITORIAL STRUCTURE OF THE SALES DEPARTMENT

Pepsi believes in selling concept that’s why they have sales hierarchical levels. Pepsi has employed a very big sales force which is spread all over in Pakistan and covering their territories. Hence some Territories have been discussed in the next pages.        

QUALITY MANAGEMENT

 Any attempt to deliver superior quality hinges on the workmanship of personnel. In order to harness human potential and channel human effort in the most efficient manner possible it is imperative that product quality decisions interact strongly with organizational design and management philosophy. PepsiCo provides a classic example of delivering unparalleled quality through a systematic network of people arrayed in a framework that employs a divisional (territorial) departmental scheme with relatively low levels of specialization.  The result is a structure that is geographical based with a territorial head for sales based in Karachi. Where, if considering PepsiCo overall, than it would be right to say that its is product specialization, but our main area is PepsiCo Aquafina, it has, three Zonal managers based in three distinct yet diverse sections of the metropolitan and are given discretion to work freely within broad limits. The role of these Zonal heads is critical to the entire network since the chain of command takes a hairpin turn once authority is delegated to regional managers immediately below these zonal heads. 

The regional managers are placed strategically and are given clear guidelines as to performing their duties and concentrating their expertise in the area of their concern. Each Zonal manager oversees two regional managers, one for Retail and the other in-charge of the regional supply chain. The sales manager’s job is primarily pertains to maintenance of supply chain, quality checks, rechecks and post delivery quality assurances, which is why PepsiCo has always been the people’s choice.

It was observed that PepsiCo practices the Build up method to design its territories. They combine pieces of overall market to create units. By this approach actual and potential customers for “PepsiCo Aquafina” are identified, and their individual sales volumes are assessed. Careful study of the territory database enables the sales representatives to precede to the next step of the planning phase- the setting of objective.

The first concern here is the sales volume and market share goals in the territory, which are derived in a top down manner, starting with corporate objectives. Volume targets are of little value as profit objectives are essential in keeping the territory performance on track.

 

PART ONE

HUMAN RESOURCE PLANNING

HUMAN RESOURCE MANAGEMENT AND PLANNING

MAXIMIZATION OF PRODUCTIVITY

Amidst a framework of corporate objectives enhancing organizational productivity occupy center stage. Regarding improvements in areas such as costs, quality, labor productivity and material productivity, PepsiCo has arrayed a sequential process to ensure that efficiency measures are conducted in abeyance with super-ordinate goals and also designed to devise parameters that are conducive to undertake such measures every now and then.

One of our questions is the extent to which Operations Management successfully implemented the broader corporate strategy. Our query was accommodated comprehensively and we came to know that behind the patent air of nonchalance, PepsiCo had actually adopted a two-way linkage as far as communication between operations management and other functional areas of the company are concerned.

It was brought to our attention that at the threshold of strategy implementation the environmental scanning process usually dominates the preliminary scheme of analytical activities. During this process the integrative linkage that PepsiCo has adapted to comparatively recently, comes to light. The incessant flow of information both lateral and vertical gives testimony to the fact that all heads and all those occupying managerial slots at strategic, tactical and operational levels in the organization work jointly to design the product or service and select the production process. In attempting to undertake productivity/efficiency studies, the company relies primarily on factual and procedural information provided by its managerial talent.

At PepsiCo top management’s corporate strategy defines the business that the company will pursue new opportunities and threats in the environment and the growth objectives that it should achieve. As is the case with most of the companies dealing with consumer products, PepsiCo also addresses its business strategy or, in more precise terms, the way it can differentiate itself from competition. Such decisions interact strongly with tactical decisions executed at relatively lower levels. There fore, long-term goals must be translated into guiding principles that formulate an out line as to where operational strategy would be heading.

COMPETITION:

Since our prime focus is the PepsiCo Aquafina so we shall be focusing on the competitors within the same category. In the category of Mineral Water, Pepsi® is currently facing a furious competition.

DIRECT COMPETITORS:

Some of the major direct competitors are listed below:

· AVA

· Fontalia

· Mineral Plus

· Pure Life

Together these three form a very fierce competition for PepsiCo. This brings to surface the core competencies that PepsiCo can utilize to overcome environmental changes as well. These core competencies are the unique resources and strengths that management considers when formulating strategy.

Following are a few areas where such distinctive competencies are highlighted.

1. Workforce:

Having the advantage of a flexible workforce well versed and proficient with policies, procedures and work-methods Pepsi® tries to differentiate itself on the basis of this advantage, which supersedes the list of its core competencies.

2. Facilities:

PepsiCo also serves as a classic example for those new in the field of beverages because it has the primary advantage of well located facilities-offices, stores, and plants. This provides the company with a competitive edge for it is able to handle a large variety of products at different volumes.

3. Market and financial know-how:

Atop its unique strategy of achieving the best by utilizing potential to the fullest Pepsi® invests heavily in recruiting talent that possesses vast knowledge relevant to market trends, likely avenues for funding, distribution channels and competitor strengths. This pays-off in the sense that the company can easily attract capital from stock sales, market and distribute its products, or differentiate its products from similar products in the market.

ESTABLISHING PERFORMANCE STANDARDS

Forecasting of sales provide the starting point for assumptions used in various planning activities and for the development of Human Resource performance evaluation system. Basically all functional areas of an organization have a planning task, and all their projections and future estimates depends upon the forecast level of sales.

In PepsiCo forecasting has been done on quarterly basis and for this purpose selected executives of different departments provides their esteem opinions based on statistical analysis or on historical data. The factors which the keep under strict are following:

v General Economic Conditions

v Industry sales

v Projecting Product Sales

According to Food and Service Manager in PepsiCo, for forecasting PepsiCo uses different combinations of Qualitative and Quantitative methods because using more than one method, increases the probability of projecting making it more realistic. Following methods have been used by PepsiCo for establishing performance standards.

PERSONNEL RECRUITMENT AND SELECTION

Recruitment is the process of finding and attracting capable applicants to apply for employment. Although operating managers are often involved much of the recruitment responsibility is of the professionals in the HR department, these professionals are called recruiters. Recruiters should be aware of the constraints and challenges surrounding the recruitment process before they attempt to find suitable applicants.

Recruiters pursue the applicants through a variety of channels. The growing diversity in the workforce and the changing demographics often require recruiters to be more proactive.

Ø The Pepsi®’ has a very strong selection and recruitment process.

Ø The preliminary stage consists of publicizing the job opening.

Ø The processing stage includes interviewing and credential assessment.

Ø The conclusion stage comprises of reviews with budgeting and planning department.

Ø The candidate after being awarded the job is kept under close observation during the probation period of 3 months for monitoring his/her performance.

TRAINING AND DEVELOPMENT

There is a common misconception that a salesman is born, which is clearly a wrong concept, because they are actually made. Once new recruits are hired, they must be given adequate training and orientation, so that they have ample knowledge about their respective commitments.

Sales training should come along the Salesperson’s career life cycle. Like a Product’s Life Cycle, a human also has a career cycle, which needs its nourishment altogether. A Salesperson’s career life cycle also comprises of 4 stages; Preparation, Development, Maturity and Decline.

The first question is, why is training so necessary? There are two major reasons for that; firstly to develop the right working habits, and secondly, to offset the detraining that one encounters daily.

Here, at Pepsi®’, with as many as 85 sales personnel, it is also obligatory that they should be given the due training, due to the above stated reasons. Having a superb reputation in the market, their salesperson must carry themselves in the same manner. At Pepsi®’ training to the Sales staff is given on four occasions:

Ø Orientation of new Recruits.

Ø When a new Product is launched into the market.

Ø When a new strategy of activities is devised.

Ø When an old product needs refreshed outlook or a new campaign is given to promote it.

DESIGNING A FORMAL TRAINING PROGRAM

At PepsiCo, a yearly training program is devised, which is mandatory for all sales personnel. This is done to develop the employee abilities to (a) manage themselves (b) work with others (c) lead others. Few of the salespeople were also exposed to overseas training and 10 of then were sent on international assignments for developing their skills and experience.

The Methods which has adopted to train their salespeople are:

Ø Lectures: This mode is the most important as it practically covers all theoretical and practical aspects of the training camp.

Ø Visual Aids: The most commonly used format of training is done by visual aids. This is advantageous so that it can be repeated and seen again.

Ø High-tech training methods: Computer interactive details can also help as training factors. Pepsi®’ recently upgraded its software and hardware capabilities, so it had to train its staff and managers with the up to date technologies.

INCENTIVES AND COMPENSATION

Incentives and gain sharing are compensation approaches that reward specified outcomes. Incentives usually link individual performance and rewards, where as gain sharing unusually embraces groups of employees.

Pepsi® gives yearly bonuses to its employees at the middle and lower levels of the hierarchy, whereas for the upper level they have profit sharing.

Other incentives, which are also awarded to the employees, are:

ü Insurance: health, accident, disability etc.

ü Paid vacations.

ü Paid leaves: sick leave, maternity leave.

ü Retirement plans.

ü Educational assistance.

ü Personal use of company car.

ü Club Memberships.

PepsiCo keeps its employees motivated through these incentives and they believe that Motivation, evaluation and Compensation are inter- linked.

FIGURE 2: Links between Motivation, Evaluation and Compensation

RECOMMENDATIONS

ü As far as Training and Development is concerned they should emphasize more on INFORMAL TRAINING which is along the way, when doing fieldwork, working in the office a salesperson is continually getting training. This is informal training, or more commonly understood as experience.

ü The major advantage of this training technique is that it provides a realistic training experience as well as the immediate opportunity to correct bad selling habits and techniques.

ü The Territory In charge should make the sales quota for each territory and he can rightly estimate the prevailing conditions and can set the realistic targets.

ü The theory suggests that a salesperson should be evaluated by looking at the overall performance of the sales person.

CONCLUSION

PepsiCo Pakistan is enjoying high profits due to its well-built distribution channel. The company has an effective sales lineup and they maintain the standard of the sales people through periodic formal training sessions throughout the year. The company has products of supreme quality and they enjoy the satisfaction of their customers. Due to highly maintained quality standards, PepsiCo shines as compared to the products in its competition. If PepsiCo will maintain its standards in the same way then they can surely increase their sales volume and will keep on delighting their customers.

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Meezan Bank Ltd. Human Resource Management

EXECUTIVE SUMMARY

This report portrays an effort to explore the relationship between an organization’s design and structure and the nature of training and development programs of the organizations. This report helps in the understanding of how the structure of an organization affects the development of its employees and vice versa. For the purpose of this example of a real life organization i.e. Meezan Bank, has been taken and its HR activities regarding organizational design and training and development have been thoroughly observed.

The first part of the report gives a clear picture of and analyses the organizational design of Meezan Bank which is a fine blend of the selected features of the culture and structure of Meezan Bank. This organizational design assists in the definition and achievements of the goals for managers.

In the second part, the training and development programs, techniques and strategies of Meezan Bank have been investigated which shows that the training methods and tools used by them are very much relevant and in alignment with the departmental hierarchy and structure. It also identifies the extent to which these training efforts are spread departmentwise.

In conclusion, the Bank has been given some suggestions and recommendations as to how the relationship between the organizational design and skills development can be exploited to facilitate the goals and objectives that have been set for organizational effectiveness and efficiency.

ABOUT MEEZAN BANK LTD.

Meezan Bank Limited is a publicly listed company, first incorporated on January 27, 1997. It started operations as an investment bank in August of the same year. In January, 2002 in an historic initiative, Meezan Bank was granted the Nations first full-fledged commercial banking license dedicated to Islamic Banking, by the State Bank of Pakistan.

Meezan Bank, stands today at a noteworthy point along the evolution of Islamic Banking in Pakistan. The banking sector is showing a significant paradigm shift away from traditional means of business, and is catering to an increasingly astute and demanding financial consumer who is also becoming keenly aware of Islamic Banking. Meezan Bank bears the critical responsibility of leading the way forward in establishing a stable and dynamic Islamic Banking system replete with dynamic and cutting-edge products and services.

Vision

Establish Islamic banking as banking of first choice to facilitate the implementation of an equitable economic system, providing a strong foundation for establishing a fair and just society for mankind.

Mission

To be a premier Islamic bank, offering a one-stop shop for innovative value added products and services to our customers within the bounds of Shariah, while optimizing the stakeholders value through an organizational culture based on learning, fairness, respect for individual enterprise and performance.

Service Mission

To develop a committed service culture which ensures the consistent delivery of our products and services within the highest quality service parameters, promoting Islamic values and ensuring recognition and a quality banking experience to our customers.

Meezan Bank has made fundamental and significant progress forward, and in doing so has established a strong and credible management team comprised of experienced professionals, which have achieved a strong balance sheet with excellent operating profitability, including a capital adequacy ratio that places the Bank at the top of the industry, a long-term entity rating of A+, and a short-term entity rating of A1.

The Banks main shareholders are leading local and international financial institutions, including ‘Pak-Kuwait Investment Company’, the only AAA rated financial entity in the country, the ‘Islamic Development Bank of Jeddah’, and the renowned ‘Shamil Bank of Bahrain’. The established position, reputation, strength and stability, of these institutions add significant value to the Bank through Board representation and applied synergies.

Meezan Bank believes in adding value to its customers’ lives and businesses, through dynamic and competitive products and services that fulfill their needs while conforming completely to the dictates of Shariah. At the same time, Meezan Bank endeavors to deliver competitive risk adjusted returns to its stakeholders.

ORGANIZATIONAL STRUCTURE

THE TOP MANAGEMENT HIERARCHY

Ownership

Shareholders

Trusteeship

Board of directors

Shari’ah supervisory board

Board audit committee

Corporate Management

President & CEO

COO

General Manager corporate & business development

General Manager commercial banking & SME

Divisional Management

Head of Operations

Head of legal affairs

Head of I.T

Head of Marketing

Etc

Functional Management

Marketing Manager (These designations & names not mentioned in organogram)

Human Resource Manager (These designations & names not mentioned in organogram)

Etc

ORGANIZATIONAL CULTURE

TERMINAL VALUES

§ Optimizing the stakeholders value

§ Offering a one-stop shop for innovative value added products and service

Instrumental Values:

§ Shariah compliant

§ Integrity

§ Professionalism

§ Service Excellence

§ Social Responsibility

§ Learning

§ Fairness

§ respect for individual enterprise and performance

Characteristics Of The Employees Of Meezan Bank

The Bank expects its employees to be:

§ Sober.

§ Truthful.

§ Committed to excellence

§ Empathetic.

§ Professional.

§ Extremely loyal.

§ Dependable friend.

§ Trustworthy business partner.

§ Committed to the cause of Islamic banking.

Discipline

Punctuality in working timings / hours and appointments, proper and presentable dress, positive and cooperative behavior towards colleagues, juniors, superiors and customers and the maintenance of discipline are the obligations of every employee of the Bank.

Attire is a reflection of professionalism as well as that of the Bank. A professional business appearance together with a high standard of personal hygiene is expected from all employees.

ORGANIZATIONAL DESIGN

Meezan bank’s managers would now choose and administer various aspects, dimensions, and components of its structure and culture, which in turn would enable it to control the activities necessary to achieve its goals.

The banking industry in Pakistan has always been a thriving one, and has been booming during the last 8 yrs even more. There have been a few economic ups and downs, yet it’s growing at a fast pace. There have been quite a few mergers and acquisitions going on, larger banks eating up the smaller banks. In such a competitive environment, Meezan bank has got to strike a balance between the external pressures from its environment and internal pressures as well. Attaining this proper balance can ensure Meezan bank a survival in the long run along with glory.

The organizational structure of Meezan Bank, in the form of the hierarchy and organizational culture consisting of the shared values and norm mentioned above, are nothing but the means, which Meezan bank is supposed to use for achieving its goals.

KEY COMPONENTS OF TRAINING & DEVELOPMENT FRAMEWORK AT MEEZAN BANK LTD.

The Framework outlines the basic platform for training and development. It is based on following key areas.

1. Process

Needs Analysis And Planning Activity

Identification of training & development needs;

§ Competency Profiling (Job Competency & Personal Competency Profiling), the main analytical tool.

§ PDPs, the core planning mechanism.

§ Contribution which training & development makes business success.

The Assessment Of Development Needs

The Training & Development needs for an individual are assessed through the use of competency profiling.

Competency profiling is a tool of describing an area of knowledge, skill, or ability. This would help in matching and placing the right person on the right job. This provides a basis for planning personal development in a focused way. It can be applied in two ways:

§ The skills and knowledge required for performing a job to a given standard. This results in the creation of a Job Competency Profile.

§ The skills and knowledge of an individual. These can be captured in a Personal Competency Profile.

Comparison of an individual’s Personal Competency Profile with the Job Competency Profile for his/her existing position identifies current development needs. Comparison with a Job Competency Profile for a potential future highlights areas for long-term development activity.

Competencies are divided into two broad categories, which are referred to Core and Specific e.g., few training courses are given below (other courses may be added as per the requirements).

Specific

Specific to department/area

§ Strategic Perspective

§ General Management

§ Contingency Planning

§ Time Management

§ Compliance

§ Team Management

§ Change Agent

§ Regulations

§ Customer Focus

§ Information System Management

§ Achieving Results with People

§ Decision Making

§ Building Networks and Relationships

§ Leadership in Management

§ Islamic Banking

§ Product Knowledge

§ Banking Laws &

§ Regulatory /

§ Risk Management

§ Prudential

Personal Development Planning (PDP)

Personal Development Planning (PDP) is a tool by which skills and learning needs are transformed into development solutions. This helps Meezan bank in improving performance of employees in their current roles and progress in their careers in the Bank. Each employee’s plan is agreed in discussion with his/her Department Head then monitors progress against the plan. It is made sure that the plan is:

§ Simple.

§ Managed and owned by the individual.

§ Focused priority.

§ Ensures an objective approach towards assessing development needs.

§ Designed to encourage continuous development.

Performance Planning & Assessment

Performance Planning and Assessment is the appraisal process that helps to translate business goals into individual objectives. Progress against objectives is monitored and the final result is evaluated. This provides the basis for measuring and recognizing achievements in order to link performance with reward. It should be:

§ Discussed and agreed.

§ Open, fair and explainable.

§ Joint ownership between the individual and the Department Head.

§ Focused and assessed against objectives, as well as overall contribution in the job as a whole.

§ Linked to performance reward and bonus.

2. Standards of Excellence

Competencies

The success of Meezan bank is dependent on the employees, striving to achieve standards of excellence in their jobs. Competencies can play an important role in this process by helping individuals to define the job standards, which will help the employees in achieving the quality results.

3. Learning Mechanism

Learning mechanisms permits both traditional and more innovative methods. These include:

Flexible Learning

Flexible Learning – describes activities other than formal training. Flexible Learning is usually focused on ‘learning by doing’ or self-initiated study.

Examples are:

§ On the job training / coaching.

§ Mentoring.

§ Reading and research.

§ Expert briefing.

§ Team-based activities.

§ Project assignments.

§ Job swaps.

Head of Human Resources works with Department Heads to explore how these opportunities can be maximized.

Management Development Program primarily develops employees in the core competencies. Different jobs / positions throughout the Bank require different levels and combinations of core competency, although some ability in all these areas is needed, regardless of an individual’s role.

Management Development program are designed and coordinated by the Human Resources Division.

Business Training addresses the development of the specific competencies, which vary between the departments.

Examples of Business Training are:

§ Islamic Banking;

§ Product knowledge;

§ Asset / Liability Management;

§ Marketing and selling skills;

§ Credit Management;

§ Negotiation skills;

§ Risk Management;

§ Customer Service Standards;

§ Assets / Liability Management;

§ Telephone Calls Handling;

§ Financial Management;

§ Cash Management.

The Head of Human Resources will work with department heads to design the Business Trainings. The Department Heads shall conduct these trainings.

Distance Learning

Distance learning, through the provision of books, computers, videos, tapes, etc. from a training library / institutes.

Head of Human Resources plans to develop a proper library with the input of the Department Heads. A budget is expected be allocated to encourage learning and growth.

Career Planning

Training & Development is viewed as a mean of enhancing the knowledge and skills in order to progress in careers. Employees who want to take greater personal responsibilities for their career, they are provided more help and guidance by the Bank. Career planning is a key priority within the Training & Development Framework.

WHOM TO TRAIN?

The Individual

§ Must have motivation to succeed;

§ Must have willingness to learn and grow;

§ Must have commitment & willingness to take more personal responsibilities;

§ Must be committed towards Islamic Banking;

§ Must have right attitude towards learning and grooming;

§ Must take training and development activities seriously;

§ Must give proper feedback on Training & Development activities for improvements.

THE ROLE WHICH RESPECTIVE DEPARTMENT HEADS AT MEEZAN BANK PLAY IN THE TRAINING AND DEVELOPMENT PROCESS:

§ Supports and develops their team members.

§ works with their team members to identifies training & development needs;

§ Creates and facilitates learning opportunities;

§ Makes the effective use of Training & Development Activity Plan (Annual Training Calendar).

§ Prioritizes the identified training & development needs and measures for assessing the contribution towards success.

§ Identifies / recommends the training needs of their team members during the Performance Appraisal exercise. However, a special need arising in between is communicated at any time to the Human Resources Division;

§ Conducts training programs as designed.

§ Is required to commit a minimum of 20 hours of formal training per annum.

THE ROLE OF HEAD OF HUMAN RESOURCES OF MEEZAN BANK IN TRAINING AND DEVELOPMENT PROCESS:

§ provides support & guidance to department heads in designing, delivering

§ Internal or external sourcing of training & development solutions.

§ Receives employee’s training recommendation with the endorsement of Departmental Head; matches it with PDP and make recommendations to COO/CEO approval. The outcome is communicated to the Department Head.

§ finalizes Training Activity Plan (Annual Training Calendar) with the mutual concern of the department heads;

§ ensures the proper implementation and administration of the training process during the year;

§ identifies the needs for in-house training program and training conducted by outside trainers, and reviews them with the respective departmental heads before finalizing it;

§ designs in-house training / course with the input of the department heads;

§ Ensures proper linkage between Practice and Theory (a mix of internal and external resource persons may be blended to conduct training programs).

RELEVANCE OF TRAINING & DEVELOPMENT AT MEEZAN BANK WITH THE ORGANIZATIONAL GOALS & OBJECTIVES

At Meezan Bank, Training & Development is the cornerstone of the business strategy. They consider it imperative if they are to meet the challenges of an increasingly competitive business environment. It is also a critical factor in the future success of the bank with the advent of new Islamic banks coming into the banking sector as a result of which there will be an increasing threat of losing key staff to new competitors.

The Bank provides Training & Development opportunities, which are:

§ Timely and relevant from an individual’s perspective;

§ Firmly linked to both today’s business needs and the long-term business plans.

Training & Development is a core management activity at Meezan bank. It is no longer an option, but a key to competitive advantage. Meezan Bank’s Training & Development policy outlines the commitment to enabling its employees to realize their full potential and improve the Bank’s performance through developing and motivating them.

Six Result Areas:

§ Training Driven by Business Needs.

§ Cost Effectiveness.

§ Quality Service for achieving excellence.

§ Integration and Consistency.

§ Evaluation of Output.

§ Ownership of Training with the Management.

ANALYSIS OF TRAINING AND DEVELOPMENT AT MEEZAN BANK LTD.

Meezan Bank can consider its activities for Training & Development effectively only when its employees are:

§ Using new skills and abilities which results in improved business performance;

§ Progressing based on merit, as a result of acquiring new skills and abilities;

§ Taking more personal control of the way in which their career progresses;

§ Experiencing greater motivation and job satisfaction as a result of new learning;

§ Enjoying effective partnership with team colleagues;

§ Delighting customers and contributing to overall performance of the Bank.

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