Internship Report: HRMP in Standard Chartered Bank

Abstract
According to the universalistic perspective, organizations from different sectors, across industries, and through different time periods should use a series of select human resource management practices (HRMP). The main principle of this paper is to investgate whether i there is any relationship between HRMPs and organizational performance, regarding Standard Chartered Bank in Bangladesh. This study aims to investigate the relationship of training, employee participation, and selection with perceived organiz ational performance in the context of Standard Chartered Bank in Bangladesh. This study is co -relational in nature and it will examine the correlation among these variables. A single set of sample will be considered for this study and that will be the employees of Standard Chartered Bank. A set of structured questionnaire will be distributed among 200 respondents. Regression analysis will be conducted for the purpose of data analysis.

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Internship Report: HRMP in Standard Chartered Bank

Origin of the Report
The BBA internship program is a mandatory requirement for the students who are graduating from the BBA program under the School of Business of North South University, Bangladesh.

In the internship program, I was attached to a host organization named µStandard Chartered Bank¶ for 12 weeks. During this period I learned how the host organization works with the help of the internal supervisor. As a result I have decided to write a report on ³A universalistic perspective for explaining the relationship between HRM practices and organizational performance ± in context of Standard Chartered Bank in Bangladesh´.

During the three months of work experience with Standard Chartered Bank on this internship st program, I was placed in the Human Resource division of the bank. I joined on September 1

2007. This department manages recruitment, training, and career progression plan. Standard Chartered Bank highlights the importance of developing its people to create a culture of customer service, innovation, teamwork, and professional excellence.

INTRODUCTION

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The St

Chartered Group i an unusual banking business. Although its roots are clearl

British, its area of operations, its net ork, and indeed its profit stream are overwhelmingl international. The name Standard Chartered comes from two original banks from which it was founded. One of the banks is the Chartered Bank of India, Australia and China and the other bank is the Standard Bank of British South Africa. In Bangladesh, Standard Chartered Bank is one of the leading multinational banks. To maintain its leading position in the Bangladesh, SCB has always been keen to develop longterm beneficial relationship with trustworthy clients. To achieve this end, they have always upgraded their approaches to achieve top-level performance. This up gradation is especially apparent in its HR activities. There are numerous human resource management principles (or HRM that seek to rectify and streamline the HR activities of an organi ation. Standard

Chartered Bank¶s HR processes, quality-wise, are one of the top-grades in the country. Among these HRM practices, training, employee participation and employee selection processes are instrumental in aiding a business thrive in its area. This research paper seeks to establish whether these three HRM practices have managed to augment the perceived organi ational performance of Standard Chartered Bank (Bangladesh).

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Internship Report: HRMP in Standard Chartered Bank

BANKING INDUSTRY-OVERVIEW
The Banking Industry in Bangladesh is one characterized by strict regulations and monitoring from the central governing body, the Bangladesh Bank. The chief concern is that currently there are far too many banks for the market to sustain. As a result, the market will only accommodate only those banks that can transpire as the most competitive and profitable ones in the future. Currently, the major financial institutions under the banking system include:    Bangladesh Bank Commercial Banks Islamic Banks   Leasing Companies Finance Companies

Of these, there are four nationalized commercial banks (NCB), 5 specialized banks, 11 foreign banks, 26 domestic private banks and 4 Islamic Banks currently operating in Bangladesh.

Generally, the commercial banks and finance companies provide a myriad of banking products/services to cater to the needs of their customers. However, the Bangladeshi banking industry is characterized by the tight banking rules and regulation s set by the Bangladesh Bank. All banks and financial institutions are highly governed and controlled under the Banking Companies Act-1993.

The range of banking products and financial services is also limited in scope. All local banks must maintain a 4% Cash Reserve Requirement (CRR), which is non -interest bearing and a 16% Secondary Liquidity Requirement (SLR). With the liberalization of markets, competition among the banking products and financial services seems to be growing more intense each day. In addition, the banking products offered in Bangladesh are fairly homogeneous in nature due to the tight regulations imposed by the central bank.

Competing through differentiation is increasingly difficult and other banks quickly duplicate any innovative banking service.

ORGANIZATIONAL OVERVIEW
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Internship Report: HRMP in Standard Chartered Bank

The Standard Chartered Bank PLC is an international banking group that is incorporated in the UK, with its headquarters in London. The group focuses its activities in Asia, Africa and the Middle East and its operation is segmented under six regions: LTK & Europe, Middle East and South Asia (MESA), South East Asia, and the Americas.

Globally, the key resources of SCB include: y y y A network of over 600 offices in 48 countries A staff of about 25,000 people managing assets of around 47 billion pounds Standard Chartered Bank's international businesses in Personal Banking, Corporate Banking and Standard Chartered Markets are its special strengths

The global strategies of Standard Chartered Bank are: y y y To build and grow strong businesses in East and South East Asia - the Asia Pacific Region To enhance historical position in the MESA region To concentrate operations in the OECD in those activities that support Standard Chartered Bank's remarkable franchise in newly industrialized and emerging markets.

Board of Directors
There is a nineteen-member board, headed by Sir Patrick Gillam as Chairman. Half of the directors are non-executives. Most of the board members are very eminent persons drawn from the boards of world-renowned multinationals such as Rolls Royce, British Gas PLC, etc.

BACKGROUND OF STANDARD CHARTERED BANK
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The Standard Chartered Group is an unusual banking business. Although its roots are clearly British, its area of operations, its network and indeed its profit stream are overwhelmingly international. The name Standard Chartered comes from two original bank from which it s was founded. One of the banks is the Chartered Bank of India, Australia and China and the other bank is the Standard Bank of British South Africa.

The Chartered Bank was founded by James Wilson following the grant of a Royal Charter by Queen Victoria in 1853, while the Standard Bank was founded in the Cape Province of South Africa in 1862 by John Paterson. Both companies were keen to capitali e on the huge expansion of trade and to earn the handsome amount of profits from financing the movement of goods from Europe to the East and to Africa.

Both banks were prosperous in those early years. The Chartered Bank opened its first branches in Bombay (Mumbai), Calcutta (Kolkata) and Shanghai in 1858, followed by Hong Kong and Singapore in 1859. With the opening of the Suez Canal in 1869 and the extension of the telegraph to China in 1871, the Chartered Bank was determined to expand and develop its business. Traditional business was in cotton in Bombay, indigo and tea in Kolkata, rice in Burma, sugar in Java, tobacco in Sumatra, hemp in Manila and silk in Yokohama.

In South Africa, the Standard Bank established a considerable number of branches. The bank was prominent in financing the development of the diamond fields of Kimberly from 1867 and later extended its network further north to the new town of Johannesburg when gold was discovered there in 1885. Half of the output of the second largest gold field in the world passed through the Standard Bank on its way to London. Both the banks, although they were separate entities, survived the First World War and the Depression, but were directly affected by the wider conflict of the Second World War in terms of loss of business and closure of branches. There were also long-term effects for both banks as countries in Asia and Africa gained their independence in the 50s and 60s. Each bank acquired other small banks along the way and spread their networks further. In 1969, the decision was made by both the banks to undergo a friendly merger. They decided to counterbalance their network with expansion in Europe and US. Further expansion also took place in Standard Chartered bank¶s traditional markets in Asia and Africa. All appeared to be

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Internship Report: HRMP in Standard Chartered Bank

going well, but a hostile takeover bid was made for the Group by Lloyds Bank of UK in 1986.

When the bid was defeated, Standard Chartered Bank entered into a period of change. Like many British banks, provisions had to be made against third world debt exposure and loans to corporations and entrepreneurs who could not meet their commitments. Standard Chartered Bank begun a series of divestments notably in the US and South Africa and entered into a number of asset sales. In mid 1993, Sir Patrick Gillam became Chairman and he made two points clear. Firstly, Standard Chartered Bank would grow and develop its strong franchises in Asia, the Middle East and Africa using its operations in the UK and North America to provide customers with a bridge between these markets. Secondly, it would focus on customer, corporate and institutional banking, and on the provision of treasury services areas in which the Group had particular strength and expertise.

History of Grindlays Bank
Captain Grindlays established Grindlays and Company with partner in 1928. The name was changed to Grindlays Christian and Mathew¶s in 1839, which again changed to Grindlays and company in 1853. The first branch was opened in India at Church Lane, Kolkata in 1854 and the other Indian branches autonomous from London were opened by Grindlays and C ompany in 1864. They were acquired by National Provincial bank Limited in 1924. National bank of India acquired Grindlays and Company in 1858 and begun to operate as National and Grindlays Limited.

Acquisition of ANZ Grindlays Bank by Standard Chartered Bank
In August 2000, the US$1.34 billion acquisition of Grindlays Bank was completed. This made the Standard Chartered Bank the leading international bank in India and the other countries of South Asia. The acquisition strengthened the Group¶s competitive position in Middle East and brought to the group a respected private banking business. Standard chartered Bank has taken the advantage of the expansion opportunities. Buying Grindlays from ANZ now propels it from number five to number one among internatio nal banks in India, with some choice extra footholds in the Middle East. At 1.34 billion US dollars, it is hard to complain that Standard Chartered Bank has overpaid. The financial ease

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Internship Report: HRMP in Standard Chartered Bank

is less compelling for ANZ shareholders, as there are advantages of ge tting out of a strategically peripheral business.

This acquisition of Grindlays Bank has added 6000 employees and 4 countries to Standard Chartered Bank¶s existing network of 7000 employees and 570 offices in 50 countries. The end result is that Standard Chartered Bank, which went into the 1997 Asian crisis with strong business in Hong Kong, Singapore and Malaysia, emerges with additional core markets in India and Thailand.

The deal has made Standard Chartered Bank the largest foreign bank by assts in India, e Pakistan and Bangladesh and the second largest in Sri Lanka and the United Arab Emirates. The bank has been seeking to expand in the region since the end of the Asian economic crisis, and has finally become successful in its expansion. The pr mary goal of the integration is to i combine the best of both the banks, and put right people in right jobs on the basis of fairness and equitability. In September 2000, the group agreed to acquire Chase¶s Hong Kong consumer banking business for US$1.32 bil ion, which makes Standard Chartered Bank the l leader in Hong Kong cards. At that time it was also announced that the chartered Trust had been sold to Lloyds TSB for 627 million pounds. Until September 2002, both Standard Chartered and Standard Chartered Grindlays operated under the same management but as separate entities. With effect from September 2002, there was not any Grindlays - only Standard Chartered Bank.

BUSINESS ACTIVITIES OF THE GLOBAL SCB
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Standard Chartered Bank operates in every Asia pacific Market with exception of North Korea and 60% of the group profit comes from Asia Pacific region.

Hong Kong continues to be the happy hunting ground for SCB as it contributes around 30% of the group profit. With over 80 branches in Hong Kong and strong representation in China especially in Shanghai the group is poised to dominate the banking industry there in years to come. There exists a Resident group Executive Director to manage the operations there and also in Singapore.

In other East Asian countries, the group has been gaining prominence in Malaysia, Taiwan and Thailand, the group acquired 75% stake in Nakornthon.

SCB is the leading multinational bank in the Sub-Saharan Africa with prominent presence in Kenya, Zambia, Zimbabwe, Botswana and Ghana. The group operations of the South Asia and Middle East region are managed from Dubai. Bank provides a full range of products and services to its all around the world, some of which are mentioned below with a brief overview of the major business activities:

1.

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l Consumer Finance

There are seventy-six branches and finance centers under this division in about ten countries with a workforce of 1615 employees. Some of the services provided by this division are unsecured personal loans, credit cards and retail store cards; vehicle related leases, etc.

lobal Personal Banking There are 410 offices/branches with a workforce of 12,000 employees working under this division in 28 countries. Some of the services provided by this division are various kinds of insurance and loans, various types of accounts, travelers' cheques, card money, etc.

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Internship Report: HRMP in Standard Chartered Bank

2. Global Corporate Banking and Institutional Banking
There are 350 branches/offices under this division. This d ivision provides services in 42 countries. The services provided by this division are International Trade Management,

Institutional Banking, Treasury, Custody and Cash Management. This division operates on a worldwide basis.

3. Global Custodial Service
There are 17 offices under this division and about 900 staff members in this division, operates in fourteen countries and is headquartered in Singapore. Standard Chartered Equitor fulfils Standard Chartered Bank's strategic commitment to providing custody a clearing services nd in greater Asia. Standard Chartered Bank has one Asia's leading custodians for over 40 years. Equitor's main focus is on the following: Commitment to quality Dedication to customer needs Sustained investment in people and systems

4. International Trade Management
This division is operational throughout the group and Standard Chartered Bank's core strength is trade finance and services. With an experience of over 150 years, Standard Chartered Bank has developed knowledge of trade finan which is world class. Principle ce, services to importers are Import Letters of Credit; import Bills for Collection and Back -toBack Letters of Credit facilities. Principle services to exporters include Export Letters of Credit, Direct Export Bills for Collection, Bulk Letter of Credit Collection, Bonds and Guarantees.

5. Global Cash Management
This division is operational in all branches where the Group has a Corporate Banking and Institutional Banking division. There are 100 employees working in this d ivision. Standard Chartered Bank recognizes the importance of Cash Management to Corporate and Financial

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Internship Report: HRMP in Standard Chartered Bank

Institutional customers, and offers a comprehensive range of services and liquidity management. Services by this division are provided worldwide withstress on Asian delivery.

6. Global Institutional Banking
Through Standard Chartered Bank¶s network of more than 600 offices in over 40 countries, it is very well positioned to provide a wide range of services to institutional clients: commercial, merchant and central banks; brokers and dealers; insurance companies; funds and fund managers, and others. Offices in emerging markets of Asia, sub -Saharan Africa, the Middle East, and Latin America are complemented by branches in the developed countries such as USA, UK and Japan and the bank¶s membership of the clearing systems in those countries. The institutional banking group has network of offices in 25 countries throughout Asia, North America, Europe, Africa and the Middle East. It provides Relationship man agers who are close to their customers and speak the local language. This wide network of Institutional Banking facilitates transactions, introductions, problem solving and renders advice and guidance on local trading conditions.

7. Global Electronic Banking
Electronic Banking provides various types of support through a wide range of operating systems, sweeping transaction accessories with the provision of reporting features or other special functions. There are 10 offices and 50 employees under this divis ion, which operates in 26 countries.

8. Problem Country Debt Unit
There is one office in this division with four employees working in it. Problem Countries Debt Unit is the Group's provisional exposure to countries experiencing temporary external liquidity problems, when such exposures are not externally secured or advanced on a voluntary short-term basis.

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Internship Report: HRMP in Standard Chartered Bank

The Standard Chartered group is operating in 48 countries in various extents. These countries are grouped in 5 regions based on their location business core focuses. 1. Africa: (Includes 11 countries) Botswana, Cameroon, Gambia, Kenya, Sierra Leone, South Africa, Tanzania, Uganda, Zambia and Zimbabwe. 2. Asia Pacific: (Includes 17 countries) Australia, Brunei, Darussalam, Cambodia, China, Hong Kong, Indonesia, Japan, Laos, Macao, Malaysia, Myanmar, Philippines, Singapore, South Korea, Taiwan, Thailand, Vietnam. 3. Latin America: (Includes 6 countries) Argentina, Brazil, Colombia, Mexico, Peru and Venezuela. 4. Middle East and South Asia: (Includes 10 countries) Bahrain, Bangladesh, India, Iran, Nepal, Oman, Pakistan, Qatar, Sri lanka, and United Arab Emirates. 5. UK and USA: (Includes 4 Countries) Falkland Islads, Jersey, United Kingdom and USA,

STANDARD CHARTERED BANK IN BANGLADESH
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Internship Report: HRMP in Standard Chartered Bank

The Chartered Bank started operating in Bangladesh in 1948, opening a branch in Chittagong. The branch was opened mainly to facilitate the post war reestablishment and expansion of South and Southeast Asia. The Chartered Bank opened another branch in Dhaka in 1966, where it is still headquartered. After the merger of the Chartered Bank with the Standard Bank in 1969, the Standard Chartered Bank took up a program of expansion. It increasingly invested in people; technology and premises as its business grew in relation to the country's economy. In 1993, there was an organizational restructuring, which led to a substantial expansion of the Bank's business. Today the bank has in total four branches in Dhaka apart from the Chittagong branch, including an offshore branch at the Savar Export Processing Zone.

Bangladesh is under the MESA region, with the controlling office in Dubai.

Its

correspondent relationship with Sonali Bank, the largest bank in Bangladesh, gives it s customers access to all major centers in the country. Standard Chartered Bank's worldwide network facilitates convenient connections with foreign trade and remittance business. Standard Chartered Bank's branch banking license in Bangladesh allows it to ofer a full f range of banking services.

Since the organizational restructuring in 1993, the amount of deposits and loans in 1997 has increased by more than five times. There is an overall increasing trend of Standard Chartered Bank's market share in terms of deposits and advances. In 1995, the market share in terms of advances was 20%, which peaked to 29% in 1996 and fell by 3% in 1997. In the case of deposits, the market share of Standard Chartered Bank increase 16% in 1995 to 18% in 1996, and increased by another 2% in1997. In terms of profit before taxes, there is a rise from eight million BDT in 1990 to its highest amount of 750 million BDT in 1998. The largest increase of 438% took place in 1991. Although the growth rate began to decline gradually from1993 (from a 170% to 5% in 1998) the overall increase reflects a substantial positive trend. Standard Chartered Bank's growth in terms of profit and market share depicts an overall positive trend.

After the Acquisition

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This acquisition has made Standard Chartered/Standard Chartered Grindlays bank the largest foreign bank in this country. An integration team from Standard Chartered Bank in London is to come time to time in Dhaka to settle the process of the acquisition of the ANZ Grindlays Bank. The team comprising of officials from both Standard Chartered and Grindlays are working on staff and branch rationalization. But the whole process will take about one and a half years and meanwhile both the banks will continue to work as legal entities. Though there may not be many changes at the lower and mid-levels of the banks, there may be some changes and redundancies in the higher level. But those who will have to leave will get a handsome compensation package.

The integration was comprehensive and is being managed as a distinct process. Meanwhile, the business is kept going to provide uninterrupted customer service and to deliver the desired results. Standard Chartered Bank after acquiring Grindlays expects to relocate its own and acquired branches upon regulatory consent. There are places where both SCB and SCGB have branches and there are other places with perceived demand for branches, but the Bangladesh Bank does not want to give permission for opening any new ones. SCB, known for its technological edge is the forerunner in automated teller machines, telebanking, treasury and lately corporate banking solutions. Grindlays is the market leader in credit cards, corporate advisory services and personal banking.

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Internship Report: HRMP in Standard Chartered Bank

MISSION
SCB Bangladesh operates with the same mission as the group SCB subscribes to worldwide. The bank in Bangladesh has the best and dedicated human resources in the privet sector banking. With an experience of 150 years, the bank has a formidable efficie cy in the n operational areas in which it operates. The bank has a mission to build and grow on its 150 years of experience and the positive image that it has earned over the years. The underlying factor on its business mission is manifested by its five val es: ³ Responsive, International, u Trust Worthy, Responsive and Courageous.´ Since SCB as a bank caters to the higher echelon of the society, its operational strategies relies on trust and confidence building with the customers and offer them the highest se nse of security and confidentiality. It has the dedicated attitude toward the community in which it operates and it wants to grow and flourish along with its customers and community. This credo of the bank is categorically expressed by the Group Executive Director. Mr. Chris Keljik during his Dhaka entourage in August 2003. Quoting him in verbatim- ³We want to make money in ethical way but we also want to address the very fact that there are people who are less fortunate than us and needs help. So we have a mission to ensure good corporate governance with sound development of human resources to build a solid workforce to attain our objectives and give back to society by involving ourselves with them´.

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Internship Report: HRMP in Standard Chartered Bank

CUSTOMERS
Two of the business target specific customer groups: Consumer banking meets the needs of individual customers. Corporate and institutional banking meets the needs of companies, banks and other financial institutions.

Figure 2.1: The Relationship between Respective Customers to Different Departments of SCB Individual Organization

Companies

Banks and other Financial Institutions

Consumer Banking

Corporate & Institutional Banking

Treasury

This focus allows the business to develop an in-depth understanding of the banks customer¶s evolving requirements. This in turn enables us to develop the products and services that help SCB stand out from the competition. Treasury provides support to the customers of both these business and develops customers (both individual and organizational) of its own.

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Internship Report: HRMP in Standard Chartered Bank

ORGANIZATIONAL STRUCTURE
The Standard Chartered Bank in Bangladesh has its headquarters and three branches in Dhaka and one branch in Chittagong, while they are going to openone in Sylhet very soon. While the full range of services is available at the headquarters, other branches offer specific services appropriate for the location. At the headquarters, the bank mainly consists of two divisions: Business Support

The business division has the following departments:  Corporate Banking Group (CBG): Standard Chartered Bank offers its local customers a wide variety of financial services. All the accounts of corporate clients, which mainly comprise the top local and multinational c ompanies operating in Bangladesh, are assigned a Relationship Manager (RM) who maintains regular and close contact to cater to their needs. The objective of this department is to maintain a thorough knowledge of the client's business and to develop positi relationships ve with them. This is maintained through interactions to offer timely advice in an increasingly competitive business environment. The expertise of the Institutional ffBanking and Treasury groups is also available whenever required. The unique O shore Banking Unit (OBU) in Savar offers a full range of facilities to overseas investors. The Corporate Banking Group in Bangladesh has displayed a spirit of community involvement by working with NGOs to underwrite soft loans. Standard Chartered Bank offers its corporate customers:

The wide varieties of lending needs are catered to with skilled and responsive attention.

The trade finance of Standard Chartered Bank takes care of the commercial activity related issues, particularly those related to import and export finance services. Some of the services are: Project finance and investment consultancy. Syndicated loans. - 17 -

Internship Report: HRMP in Standard Chartered Bank

Bonds and Guarantees. Local and International Treasury products. Trade finance facilities including counseling, confirming export L/Cs and issuing of import L/Cs, backed by its international branch and correspondent loan network Bond and Guarantees Project finance opportunities for import substitution and export oriented project.



Treasury (TSY): The foreign exchange and money market operation of the Standard Chartered Bank in the world is extensive. Exotic currencies happen to be one of its specials areas of strength. A 24 hour-service is provided to customers in Bangladesh through the Bank's network of dealing centers placed in the principal of the world. The Bank's treasury specializes in offering solutions to those who wish to manage interest rate and currency exposures that result from trade, investment and financing activities of other dynamic economies of the region. Treasury o perations are developed in line with changing market conditions to provide the best services to its customers. According to BAFEDA (Bangladesh Foreign Exchange Dealers Association), Standard Chartered Bank presently controls 42% of the local foreign exchange market's traded volume.



Institutional Banking Group (IBG): The IBG of Standard Chartered Bank offers a wide variety of products and services to banks and financial institutions. It has global links with leading banking institutions and agency arrangem ents through its network of offices in 40 countries. The Bank offers a full range of clearing, payment collection and import-export handling services. The bank offers foreign missions, voluntary organizations, consultants, airlines, shipping lines, and the personnel the following ir financial services:

(a) Current accounts in both Taka and other major foreign currencies (b) Convertible Taka accounts (these funds are freely convertible to major international currencies)  Consumer Banking (CB): Superior retail banking services comprising a wide range of deposit and loan products are offered by the Standard Chartered Bank to its

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Internship Report: HRMP in Standard Chartered Bank

individual customers. The Consumer Banking division constantly faces challenges and meets them by developing new produc and services to fulfill the specific ts requirements of local and foreign customers. Bank offers a 24 -hour service in Bangladesh through its Moneylink ATM network and Phone -link Phone Banking services.  Custodial Services (CUS): Headquartered in Singapore, Standard Chartered Equitor fulfils the group's strategic commitment to the provision of custodial service in Asia. Equitor's customers are primarily foreign global custodians and broker/dealers requiring cross border information as well as sub -custodian services. Standard Chartered Bank, Bangladesh is responsible for the planning in Bangladesh, but the overall management of the custody business is based on Equitor's international business strategy. Standard Chartered Bank is primarily corporate driven. Corporate banking generates more than 40% of its revenue group while Treasury contributes more than 20% to the overall revenue. The rest is generated from Personal Banking, Custodial services and Institutional Banking. The Support division provides assistance to the above business activities and consists following departments:



Operations: Operations is part of the support division that helps to run the businesses of the bank in a smooth and controlled manner. Since it helps mainly in processing the works of the business units, any mistakes made can be easily detected and on time. Following are the main functions of the operations department: (a) Central operations deals with the closing and opening of accounts and other payment and account related processing o the Personal Banking division f (b) Treasury operations help to deal with the processing works of the treasury division. Loan Administration Unit (LAU) deals with the processing of the Corporate Banking division. (c) Operations also have a department that deals with internal projects that arises from the need to deal with certain problems or to make certain changes.

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Finance, Administration and Risk Management: Although it is a financial organization itself, Standard Chartered Bank needs financing to run its oper tion. a Finance, Administration and Risk Management departments are the ones that are primarily concerned with maintaining a level of cost incurred that do not cross the threshold leading the company to bankruptcy.



Information Technology Center: This department is instrumental in the running of all the computerized operations of the bank. They help in the implementation and generation of computerized reports. Another major duty of the department is to maintain communication with the rest of the world.



Human Resource Department: This department manages recruitment, training and career progression plan. Standard Chartered Bank highlights the importance of developing its people to create a culture of customer service, innovation, teamwork and professional excellence.



Legal and Compliance: In the UK, Standard Chartered Bank is regulated by the Bank of England, while in Bangladesh local banking laws regulate it and rules set by the Ministry of Finance and Bangladesh Bank. It also encourages its staff to conform to an internal culture of ethical behavior and sensitivities to the culture and religion of the country. Some of the key areas that the Legal & Compliance department has to take care of are: any kind of legal issues, to advise the CEO regarding all matters and the management on legal and regulatory issues, correspond regulatory compliance issues to MESA Regional Head of Compliance, and supervise internal control (e.g. internal audit).



E ternal Affairs: This department deals with advertising, public relations, promotions, partial marketing etc. that involve disseminating new products and services to customers and above all ensuring service quality.

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Internship Report: HRMP in Standard Chartered Bank

Chain of Command
Chartered Bank in Bangladesh follows a hierarchical pattern of command. The Chief Executive Officer (CEO), Mr. Osman Murad reports to the Regional General Manager, MESA in Dubai. All the department heads at the headquarters report to the CEO. A manager or senior manager who reports to the head of the division heads the major business activities. In Chittagong, however, since there are two major business activities, a manager or senior manager, who reports directly to the head of the respective division in Dhaka, heads each. The Custodial Service division at the headquarters reports to the Head of Corporate Banking.

The respective branch managers are responsible for the performance of their unit. Each branch is organized functionally along line divisions with some support facilities and the manager assigns tasks to his/her subordinate personnel and supervises their performance, instructions are often given without necessary details and clarifications.

Figure 1: Organizational Organogram
Chief Executive Officer Support Manager to CEO

Head of Client Relationships

Head of Consumer Banking

Head of Treasury

Head of Institutional Banking

Head of Finance & Admin.

Head of Human Resource Dept. Chief Operating Officer

Senior Credit Officer

Head of Legal & Compliance

Head of GSAM

Head of Information Technology

All the staff members of Standard Chartered Bank belong to an internal trade union known as "Standard Chartered Bank Employees Union" the clauses of which are reviewed and agreed upon every two years. The last agreement was made on January 1, 1998.

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Internship Report: HRMP in Standard Chartered Bank

MANAGEMENT
The goal of Standard Chartered Bank is to be the "Bankers of First Choice." Towards that goal, the overall planning in the Organization is done at the headquarters level in Dhaka by a Management Committee (MANCO), headed by the CEO and consi ting of the business heads s of Corporate Banking, Consumer Banking, Treasury, and from the support divisions the heads of Human Resource, Operations and Finance Departments. They meet once a month, or when a special situation arises, to plan the strategic decisions. The decision making, although apparently based on a top-down approach, leaves room for participation down to the level of department heads, which are responsible for carrying out the planning of their department within the broad guidelines set by MANCO. Among the broad strategic objectives are: Creating a congenial work environment Modernization of the Management Information System (MIS) to achieve full automation by drastically cutting down on the paper work in the long -run Focusing on service quality and consumer needs Recruiting and maintaining top-grade, efficient employees To invest in those technological systems which will upgrade and enhance financial services. Creating an excellent brand image of the Bank

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Internship Report: HRMP in Standard Chartered Bank

PEST ANALYSIS
A PEST analysis is an analysis of the external macro -environment that affects all firms including banking industry. P.E.S.T. is an acronym for the Political, Economic, Social, and Technological factors of the external macro -environment. Such external factors usually are beyond the firm's control and sometimes present themselves as threats. For this reason, some say that "pest" is an appropriate term for these factors. However, changes in the external environment also create new opportunities and the letters sometime are rearranged to s construct the more optimistic term of STEP analysis. Many macro-environmental factors are country-specific and a PEST analysis will need to be performed for all countries of interest. A scan of the external macro-environment in which the firm operates can be expressed in terms of the following factors:     Political Economic Social Technological

The acronym PEST (or sometimes rearranged as "STEP") is used to describe a framework for the analysis of these macro environmental factors.

Political Factors
In case of Bangladesh, political instability like hartal makes difficulties in both domestic and international trade. As a result banking transactions are also stuck. Beside this corruption is another factors which hampers business enviro nment. Growing US influence though ambiguous, relations with the US remain all important, strategically and economically. The US remains a guarantor of the balance of power in several parts of the region.



Limited EU Influence: The EU shows increased interest and involvement in trade aid and good governance issues in Asia, but it is not a threat to the autonomy of the states.

Political factors include government regulations and legal issues and define both formal and informal rules under which the firm must operate. Some examples include; Political stability, Legal framework for contract enforcement, Trade regulations & tariffs, Pricing regulations, - 24 -

Taxation - tax rates and incentives, Wage legislation - minimum wage and overtime, Mandatory employee benefits and Industrial safety regulations all these affects banking industry.

Economic Factors
Economic factors affect the purchasing power of potential customers and the firm's cost of capital. Banking industry is not an exception too. The examples of factors in the macro economy are Type of economic system in countries of operation, Government intervention in the free market, Comparative advantages of host country, Exchange rates & stability of host country currency, Efficiency of financial markets, Infrastructure quality, Skill level of workforce, Economic growth rate, Unemployment rate, Inflation rate, Interest rates.  Globali ation and the increase in free trade zones will impact on the autonomy of the state. International cooperation and others financial economic actors will play an increasingly important role.



Increasing impact of globalization on a wide range of social and economic rights of millions of poor peoples across the region including their right to water, health and housing.



Economic restructuring and the transition to a market economy is likely to continue to impact on rule of law issues with a growth in corruption, organized-crime and social unrest (e.g. China, India). There is growing economic rivalry and increasing fears of Chinese domination.



Feminization of labor: growing presence of free trade zones and export processing zones employing women in often extremely poor working conditions.

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Internship Report: HRMP in Standard Chartered Bank

Social Factors
Social factors include the demographic and cultural aspects of the external macro environment. These factors affect customer needs and the size of potential markets. Some social factors include health consciousness, population growth rate, age distribution, career attitudes, emphasis on safety, class structure, Education, Culture, Attitudes and Leisure interests.



Poverty affects hundred of millions of people across the region, and there is a growing anti-globalization movement (partly linked to anti American sentiments) especially in Bangladesh (South-Asia).



Access to medical care food, housing and social welfare will remain restricted in Bangladesh with the state failing to provide basic provisions. This is especially true in the situation of armed conflict.

Technological Factors
Technological factors can lower barriers to entry, reduce minimum efficient production levels, and influence outsourcing decisions. Some technological factors include R&D activity, automation, technology incentives, rate of technological change, Recent technological developments, Technology's impact on product offering and Impact on cost structure. New technologies including the internet, email and mobile phones will continue to open possibilities for communication, information sharing and cooperation but this resource remains inaccessible to the many people in the region who are poor or illiterate or in other states due to state attempts to control freedom of expression.

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Internship Report: HRMP in Standard Chartered Bank

SWOT ANALYSIS ² SCB vs. MARKET
The acronym for SWOT stands for ±

Strength Weakness

Opportunity Threat

The SWOT analysis comprises of the Organization¶s internal strength and weakness and external opportunities and threats. SWOT analysis gives an organization an insight of what they can do in future and how they can compete with their existing competitors. This tool is very important to identify the current position of the organization relative to others, who are playing in the same field and also used in the strategic analysis of the organization.

Strengths
± ± ± ± ± ± ± ± ± Dominant market position in chosen markets Customer franchise Strong regional focus Product diversity Experienced and efficient management team. Better infrastructure facilities. Company reputation and goodwill. Sound profitability and growth with good internal capital generation. Larger corporate client base.

Weaknesses
± ± ± ± ± ± ± ± Limited headroom for growth in top names SQ: not at par with customer expectation Lack of up-country reach Perceived lack of flexibility vis-a-vis local banks Turnover and long term people issues Small market share. High concentration of fixed deposit and large scale of loans. Lack of full-scale automation.

Opportunities
± Untapped Middle Market - 27 -

Internship Report: HRMP in Standard Chartered Bank

± ± ± ± ± ± ± ± ± ± ±

Acquisition of PCB clients State-owned Enterprises (SOE) Sector Acquisition of Banks/NBFI Islamic Banking Structured Products Scope of market penetration through diversified products. Automation of transaction processes and online branch banking. Government¶s policy of encouraging heavy inflow of foreign investment. Regulatory environment favouring privet sector development. Increasing purchasing power of people. Increasing trend in international business.

Threats
± ± ± ± ± ± ± ± ± Aggressive competition from Int. & local banks Political volatility & regulatory impediments Loss of people to competition Privatised/re-structured NCBs Increasing competition for market share in the industry. Frequent changes of banking rules by central bank. Market pressure of lowering of lending rate. National and global political unrest. Default culture of credit.

SWOT ANALYSIS ² SCB vs. TOP 4 COMPETITORS

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SCB
-Market dominance
STRE GTHS h Eastern
-Flexibility -Appetite for term lending

Prime
-Flexibility -Appetite for project finance

HSBC
-Service quality -Quick Turnaround

Citibank
-Global Cash Mgt. -Strong network

-Product diversity -People -Service quality

-Limited product suit

-Limited product suit -Technology platform

-Product & market knowledge

-Lack of focus -Lack of credit & country risk appetite

EAKNESSES

-Perceived inflexibility

- Middle Market - PCB Clients
OPPORTUNITIES

- MNCs - Fx products - Syndication

-Cash Mgt. -Fx products

-Increase wallet share -Govt. Sector -CM/CF product

-Increase wallet share in Cash & Trade -CM/CF products

-Islamic Banking -Structured products -Competition -Regulatory -Competition both local and Int. banks -Competition both local and Int. banks

-Competition -Regulatory restrictions -Privatized NCBs

-Competition -Extreme sensitivity to political unrest

THREATS

restrictions -Privatized NCBs

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Internship Report: HRMP in Standard Chartered Bank

SCB·S PERFORMANCE IN BANGLADESH

SCB leads in Revenues
Revenue Growth 2002 2004 2003 2005

120

USD Mio

100 80 60 40 20 Citibank Dhaka HSBC Islami CBCL Prime DBBL SCB EBL Bank 0 Asia

SCB dominates in Profits
Profit After Tax
2002 2004 2003 2005

60 50 40

USD Mio

30 20 10 0 SCB EBL HSBC Dhaka Islami Citibank CBCL Prime DBBL Bank Asia

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Internship Report: HRMP in Standard Chartered Bank
Trading Profit contribution by Bangladesh Operations (Percentage over roup TP)

2.1%

0.1%

0.1%

SCB

HSBC

Citibank N.A.

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Revenue Trend Analysis (2004-2007F)
Revenue USD M Consumer Commercial Global Market Other Banking Country Exchange Rate 2004 31.20 25.22 23.99 80.41 59 2005 38.20 29.21 22.61 90.02 2006 45.22 31.61 20.61 (0.22) 97.44 2007 (F) 52.55 36.03 24.10 (0.51) 112.17

The revenue of three sectors of Standard Chartered Bank is shown in graph below -

Trend in evenue: Country
140.00 120.00 100.00

112.17 80.41 90.02 97.44

80.00

60.00 40.00 20.00 -

2003

2004

2005

2006 (F)

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Internship Report: HRMP in Standard Chartered Bank

Trend in Revenue: Consumer
60.00 50.00 USD M 40.00
31.20 38.20 45.22 52.55

30.00 20.00 10.00 2003

Trend in Revenue: Global Markets

2004

2005

2006 (F)

30.00 25.00 20.00
USD M
23.99 22.61 20.61 24.10

15.00 10.00 5.00 2003 2004 2005 2006 (F)

Trading Profit Analysis (2004-2007F)
Trading Profit USD M Consumer Commercial Global Market Other Banking Country Exchange Rate 2004 12.62 15.35 21.14 (1.20) 47.92 59 2005 16.55 19.36 19.63 (0.94) 54.60 2006 19.37 20.13 17.16 (0.77) 55.89 2007 (F) 22.50 20.33 19.15 (0.05) 61.93

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Internship Report: HRMP in Standard Chartered Bank

Trend in TP: Country
70.00 60.00 50.00

61.93 54.60 47.92 55.89

USD M

40.00 30.00 20.00 10.00 -

2003

2004

2005

2006 (F)

Trend in TP : Consumer
25.00 20.00
19.37 16.55 12.62 22.50

USD M

15.00 10.00 5.00 -

2003

2004

2005

2006 (F)

Trend in TP: Global Markets
25.00 20.00
USD M
21.14

19.63

17.16

19.15

15.00 10.00 5.00 2003 2004 2005 2006 (F)

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Internship Report: HRMP in Standard Chartered Bank

Organogram

Head lient elationships India & outh Asia
‰

Ahmed A hah Head of ent Relationships
†… „

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Nadia ahbub uppo t Manager
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Khandakar Kayes Hasan usiness lanning Manager



Nasreen attar Regional cct Manager
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Tahia Khalil Operational Risk

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Arunangshu utta Head of ec ervices
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irza Aminur Rahman Head of T ansaction anking

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Rahel Ahmed Head of ocal o p
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Humaira Azam Head of Financial n stitutions
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Internship Report: HRMP in Standard Chartered Bank

RECENT CHANGES IN SCB
Recently SCB has reformed its Values and launched the Logo. The previous values were Helpful Responsive Efficient The present values are ± Trustworthy Courageous Responsive International Creative

The Logo has changed

From To -

SCB has launched the new Logo in its web site and in the Middle East countries. In Bangladesh it will be officially launched in the third quarter of this year. From April 2002 it has been displaying the new screen saver in all computers.

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Internship Report: HRMP in Standard Chartered Bank

RECOMMENDATIONS
SCB has some threats and weaknesses, which will turn down the operation of this bank to a great extent. It is been seen that customer complaint has increased recently than before for this reason it is high time that the employees are trained up more to avoid future mishaps. Some recommendations are proposed below.

In the deposit accounts the new emerges in the market are providing a higher rate of interest compared to SCB and for this reason the MANCO might give a second thought about re-fixing the rate.

The latest entrant BRAC Bank is planning to launch a similar product like Personal Loan for Consumers with a lower rate and charge. SCB should take precautionary measures to keep their products viable to customers both new and old.

SCB should lower its charges immediately to prevent the loss of customers. The prime dissatisfaction with SCB is with the high interest rate and various fees it charges from its customers, and competitors have grabbed a big portion of its customer-base by charging lower rates and charges/offering higher saving rates. SCB senior officials should be more cooperative to their subordinates and arrange for workshops/ training programs to keep them motivated in their work.

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Internship Report: HRMP in Standard Chartered Bank

ORGANIZATION STRUCTURE ² HR DEPARTMENT
In this department, the (HOHR) holds the topmost position in the hierarchy. Under the Head of Human Resources, there are 1 Senior Relationship Manager (SRM), 2 Relationship Managers (RM), 1 Resourcing Manager, 1 Operations Manager and 1 Officer directly reporting to him. Fig. 1: Organogram of Human Resource Dept, SCB

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Internship Report: HRMP in Standard Chartered Bank

INTRODUCTION
The concept of human resource management (HRM) has received focused attention for around 20 years, with the method being that ³many US companies found they were being rivaled and in some instances overtaken, in markets they had dominated´ Ehrlich, 1994, p. ( 492). Human resource development (HRD) is presented in this paper as the delivery system used by organizations to develop individuals through training and development, career development and organizational development. Moreover, ( ankin, 2001, p. 74) stated that M ³HRD is a concept that comprises a variety of activities and processes´ Mankin, 2001, p. ( 74). There are attempts taken by the different academics, researchers, and practitioners to define the concept of Human Resource Development (HRD) and providing frustrating, elusive, and confusing thoughts (McGoldrick et al., 2002, p. 18). Although a universally accepted definition of HRD is absent, several scholars have tried to identify its essential elements. For instance, McLagan and Suhadolink (1989) grouped organization development, training and development, and career development as the primary factors of HRD. FurthermoreSwanson and Holton (2001, p. 4) define HRD as, ³A process for developing and unleashing human expertise through organization development and personnel training and development for the purpose of impro ving performance.´ This definition is more inclined towards individuals, organizations and work groups or teams. McLean and McLean (2001) have tried to define HRD from an international perspective as follows: ³Human resource development is any process or activity that, either initially or over the long term, has the potential to develop adult's work -based knowledge, expertise, productivity and satisfaction, whether for personal or group, team gain, or for the benefit of an organization, community, nation, or ultimately, the whole of humanity (p. 10)´. Regarding defining the concept one cannot discuss HRD without acknowledgingthe various disciplines from which it has taken. Human resource development has borrowed from other - 38 -

disciplines such as systems theory, psychological theory, and most recently economic theory (Aliaga, 2001; Swanson, 1999).Thus the difficulty with defining HRD reflects the evolving nature of the field. In a more comprehensive definition, Gilley and Maycunich (2000) define HRD as: ³«The process of facilitating organizational learning, performance, and change through organized interventions and initiatives and management actions for the enhancing an organization's performance capacity, capability, competitive readiness, and renewal (p. 6)´. In a study Garavan T.N., Gunnigle, P., Morley, M (2000) shows that HRD is mainly concerned with capabilities, psychological contracts, and learning organization or organizational learning. In contrast, Holton (2000) argues that the debates on the meaning of HRD focus on the learning versus performance perspectives. Thus we can say that learning, performance, and change are three important elements that define HRD.
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Statement of the Problem
Recent facts have shown human resource management p ractices (HRMP) have a positive influence on organizational performance. Ramsay, H., Scholarios, D., Harley, B. (2000) demonstrated that the notion of HRMP impacting on organizational performance through a ³high road´ approach has become a key element in HR. This ³high road´ approach asserts that some HRMP are universalistic, appropriate, and advantageous for all firms. Accordingly, organizations from different sectors, across industries, and through different time periods should use these HRMP. Nevertheless, researchers have yet to examine in depth the provable influence of HRMP under these different conditions. Unfortunately, researchers who assert the universality of certain HRMP are fail to agree what constitutes those practices (Delaney and Huselid, 1996; Harel and Tzafrir, 1999; Huang, 2001a, b; Huselid, 1995; Pfeffer, 1994). For example, Harel and Tzafrir used eight strategic HRMP: grievance procedure, incentive compensation, participation, promotion from within, recruitment, selection, and training. Others used innovative work practices such as total quality management and quality circle. Some saw employment security and employee ownership as best practices (Pfeffer, 1994), while others did not mention them (MacDuffie, 1995).

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Internship Report: HRMP in Standard Chartered Bank

The multiplicity of what constitutes universalistic HRMP represents a challenge to organizational scholars. Little empirical research has focused on the effect of different points in time on the relationship between so-called universalistic HR practices and organizational performance (Youndt et al., 1996). Standard Chartered Bank wants to identify whether there is any positive correlation between HRMP and organizations performance. A study by Boselie and Dietz (2003) discovered that training, participation, information sharing, as well as compensation are frequently used as a part of HRMP. Similarly, Den Hartog and Verburg (2004) focused on selection, incentive pay, participation, training, etc. as HRMP. Moreover, Wright et al. (2005) based their analysis on selection, training, pay for performance, and participation. Using these studies, several practices have been identified (i.e. selection, training, participation, compensation, and internal labor market) that are generally used as a starting point and appear to affect firm performance under all circumstances. This list is not complete but encompasses many of the relevant HRMP in earlier empirical and theoretical studies. Therefore, the current study proposes compensation, participation, training, and selective hiring as strategic HRMP, the determinants of organizations performance for Standard Chartered Bank.

Objective of the Study
A decrease in the magnitude of trad itional sources of competitive success has led to the increased significance of human resources as part of an organization's tangible and intangible resources having the potential for continuous organizational success Barney, 1986, 1991, ( 1995; Von Glinow, 1993; Lado and Wilson, 1994). The new model of human relations views management as the primary performer in the employment relationship and relates to HRMP as ³good things´. The universalistic perspective has been proposed as a key approch in a human resource management literature, and as other perspectives, it plays a fundamental role in explaining different levels of organizational performance. The universalistic perspective asserts that there is a simple direct relationship between sev eral HRMP and organizational performance (Delery and Doty, 1996). As a result, a universal human resource management practice would directly influence organizational performance, remaining all other things constant.

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According to the universalistic perspective, organizations from different sectors, across industries, and through different time periods should use a series of select human resource management practices (HRMP). The main purpose of this paper is to investigate whether there is any difference in the relationship between compensation, participation, training, and selective hiring with the organizational performance across time.

Significance of the Study
 First, it will help researcher to understand the relationship between training, participation, and employee selection with perceived organizational performance.  Second, Human Resource is an emerging concept in Bangladesh and organizations such as Standard Chartered Bank put much more emphasis on this department so this study will help the organization as well. In this regard, this research will help to increase organization¶s performance in a way the employee of the organization will think.  Third, it will encourage further study in this area and will provide useful guidelines for this type of research.

Research Timeline
Table 2: The Research Time line 2007 2007 2008 2008 2008 2008 November December January March April April Research Proposal Writing Company Overview and Literature Review Pilot Testing Data Collection Procedure Data Analysis and Interpretation of Findings Final Redraft of Complete Manuscript Submission of Research Paper

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REVIEW OF THE LITERATURE
Literature review distills the existing literature in a subject field; the objective of the literature review is to summarize the state of the art in that subject field. From this review of earlier and recent work, it becomes possible to identify areas in which further research would be beneficial. Indeed, the concluding paragraphs of the literature review should lead impeccably to research propositions and methodologies. It is therefore important that the literature review is focused, and avoids the more comprehensive textbook-approach.

Training
It is reasonable to suggest that training has been seen as a very functional part of HRM, dominated by technical questions which have restricted the capacity for wider alternative and critical perspectives (Huselid, 1996). Training has always been recognition of the value it has to the national economy, however, this tended to be primarily as a response to skill shortages until the 1970s Barraud-Didier's (2004). Recent accounts have challenged assumptions about training: firstly, it was simply functional in nature. Secondly, the assumption that training was almost exclusively about skill development has been challenged. Thirdly, the implication that employees generally benefited have been questioned, particularly in respect to their opportunity to transport skills and knowledge throughout external labor markets (Hodson, 2002). Increasingly, training was linked to internal factors such as culture and commitment, and external factors such as suppliers and customers (e.g. in the finance industry, studies byKato and Morishima (2002) where employees sell a range of financial products as part of a marketing strategy, and Wilson¶s (1994) study of the strategy of introducing a new management information system and a TQM programmed to ³«refocus staff perspective on the accomplishment of the organization¶s goals´ (Wilson, 1994, p.122). In a study MacDuffie (1995) said that, though training is a labor cost issue it is probably the most visible HRM function and the one most easily targeted by management. MacDuffie (1995) suggest that contrary to the conventional market view of training, a complex combination of institutional and market factors did not lead to a deep cutback in training. Some employers engage in cost reduction during recession, some appear to regard the

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Internship Report: HRMP in Standard Chartered Bank

continuation or expansion of training as crucial to their performance in their product market Kato and Morishima (2002).

Relationship between Training and Perceived Organizational Performance
One of the most common practices that appear in the different journal as a best HRMP practice is training. Pfeffer (1998) and Pfeffer and Veiga (1999) mentioned in their article that, training as one of seven practices of successful organizations. Harel and Tzafrir (1999) found that the single HR practice that most influences perceived organizational performance is training. Other studies have also viewed training activities as a potential universal best practice (Arthur, 1992; Delaney and Huselid, 1996; Huselid, 1995; MacDuffie, 1995; Youndt et al., 1996). In a study of 25 semiconductors manufacturing Hatch and Dyer's (2004) revealed that statistical process control training for equipment operators resulted in significantly fewer defects in the produced products. In a study Delaney and Huselid (1996) found a positive and significant relationship between training and perceived organizational performance.Guerrero and Barraud-Didier's (2004) study of ³High-involvement´ they found a significant link between training and organizational performance.

Employee Participation
One of the key variable in this study is employee pa rticipation is managerial style. This is because the greatest opportunity for employees to get involved in issues that affect them is by developing a constructive relationship with their immediate boss W. David Rees, Christine Porter (1998 pp. 165-170). They also suggest that, formal schemes of employee participation, whether direct or indirect critically depend on the enthusiasm and ability of line management. In assessing the effectiveness of formal schemes of employee participation it is necessary to find out how they really operate in practice. In a study of Hodson (2002) said that, if organizations really want employee participation, they need to review the effectiveness and attitudes to involvement of their managers at all levels.

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Internship Report: HRMP in Standard Chartered Bank

Relationship

between

Employee

Participation

and

Perceived

Organizational performance
Another HRM practice that many researchers believe increases organizational performance and decreases employees' negative behavior is employee participation Arthur, 1992; Batt et ( al., 2002; Hodson, 2002; Kato and Morishima, 2002; Pfeffer, 1994). Batt's (2002) study of customer call centers found that employee participation in decision -making decreased the quitting rate. Hodson (2002) suggested in a study that employee involvement reduces workplace conflict and improves work life experiences. Kato and Morishima (2002) found that employee involvement practices, after a long developmental period, led to a significant 8-9 percent increase in productivity. Li (2004) found that participatory management has a positive effect on productivity of state-owned enterprises in China. Karami, A., Analoui, F., Cusworth, J. (2004) revealed the high positive relationship between HR managers' involvement in formulation of business strategy and its implementation in the electronic manufacturing industry. Concentrating on middle management involvement,Wooldridge and Floyd (1990) found that generating options is closely associated with qualitative organizational performance. In a similar vein, MacDuffie (1995) found a positive correlation between the number of suggestions made by employees and employee involvement.

Employee Selection
The selection process determines the decisions as to which candidates will get employment offers. Throughout the history of Industrial, Work and Organizational (IWO) Psychology, issues employee selection, and assessment have featured prominently in the scientific and pragmatic agendas that fuse our discipline (Nei Anderson, Filip Lievens, Karen van Dam, l and Ann Marie Ryan, 2004). Indeed employee selection has been one of the central pillars of the scientific foundations of IWO psychology in North America, Europe, and the rest of the world (Neil Anderson et. el).

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Internship Report: HRMP in Standard Chartered Bank

Relationship between Employee Selection and Perceived Organizational Performance
The aim of these practices is to improve the fit between employees and the organization, teams, and work requirements, and thus, to create a better work environment. Indoing so, selection may be seen as an essential tool for organizational performance Terpstra and ( Rozell, 1993; MacDuffie, 1995). For example, Delaney and Huselid (1996) observed that staffing selectivity has a positive impact on perceived organizational performance. Shipton, H., Fay, D., West, M., Patterson, M., Birdi, K. (2005), noted the role sophisticated HR practices such as selection have in predicting product innovation and in production technology innovation. Rowden (2002) conducted in-depth interviews with key managerial and non-managerial personnel and found that selective staffing is one of several HRMP that exist in successful small manufacturing companies. Hunter and Schmidt (1982), referring to a minority issue, concluded that an employment balance can be achieved through a selection procedure based on ability.

Operational Definitions
Summaries of the operational definitions of measured variables (Training, Employee Participation, Compensation, Employee selection, and Perceived Organizational

Performance) going to be used in this study are given below in Table 3. Table 3: Operational definitions of measured variables Measured Variables
TRAINING EMPLOYEE PARTICIPATION EMPLOYEE SELECTION PERCEIVED ORGANIZATIONAL

Developed by Harel and Tzafrir (1999) Arthur, 1992; Batt et al., 2002; Hodson, 2002; Kato and Morishima, 2002; Pfeffer, 1994.

Reliabilities 0.72

0.82

Terpstra and Rozell, 1993; MacDuffie, (1995)

0.79

Delaney and Huselid (1996)

0.76

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Internship Report: HRMP in Standard Chartered Bank

PERFORMANCE

HYPOTHESES

Research Questions
1. Is there a significant relationship between Training and Perceived Organizational Performance in context of Standard Chartered Bank in Bangladesh? 2. Is there a significant relationship between Employee Participation and Perceived Organizational Performance in context of Standard Chartered Bank in Bangladesh? 3. Is there a significant relationship between Employee Selection and Perceived Organizations Performance in context of Standard Chartered Bank in Bangladesh?

Hypotheses
1. There is a significant relationship between Training and Perceived Organizational Performance in context of Standard Chartered Bank in Bangladesh. 2. There is a significant relationship between Employee Participation and Perceived Organizational Performance in context of Standard Chartered Bank in Bangladesh. 3. There is a significant relationship between Employee selection and Perceived Organizational Performance in context of Standard Chartered Bank in Bangladesh.

Development of Conceptual Framework
Training

Employee Participation Perceived Organizational Performance

Employee Selection

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METHODOLOGY
Research Design
This paper examines HRMP and their relationships with organizational level performance In . order to identify the research questions and to test hypotheses, the researcher has selected a co-relational study as appropriate for this research. The earlier graphical representation (figure 1) of the conceptualized framework reveals the pattern and structure of co -relational study among the set of measured variables. When a researcher investigates the effects of the measured variables and analyzes the relationships among the variables, he design is known t as co relational study (Graziano & Raulin 1997; Zikmund, 2000). A correlation exists when an increase in one variable either increases or decreases another variable (and vice versa) in a somewhat predictable fashion. The present study will investigate the relationship between Training, Participation, and Employee Selection and Perceived Organizational Performance within context of Standard Chartered Bank in Bangladesh. Training, Participation, and Employee Selection are considered as independent variables and Perceived Organizational Performance is considered as dependent variable.

Research Approach
To examine this research problem, information were collected from the employees of Standard Chartered Bank. The questionnaires were filled up by employees who had at least two months¶ experience with the organization. Participation of the respondents was at their full discretion. Every participant could withdraw from responding at any time without showing any reason.

Sampling Method
The study was conducted in different branches of Standard Chartered Bank in Dhaka city only, due to budget and time constraints. The questionnaires were given to the head of HRM or the human resource manager of the organization. The questionnaire was provi ed as well. d For the purpose of research, a single set of population was taken that consisted of entry -level employees (Grade-9) of the bank.

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Internship Report: HRMP in Standard Chartered Bank

In this research, Human Resource Managers were chosen as the main subject for three primary reasons. First and foremost, they had the greatest access to the data related to HRM activities. Second, the researcher followed caution that perceptual error is smaller, partly, if a manager's functional area relates to the perceived variable ( Huselid and Becker, 2000). Third, HR managers have the largest storehouse of knowledge about the overall activities of the organization at wider level, as opposed to the narrow departmental level knowledge base.

The sample size is 150 for this study intended to investigate the relationship of training, participation, and employee selection with perceived organizational performance in context of Standard Chartered Bank in Bangladesh. The researcher used both cluster and stratified sampling method and then a simple random sampling method to choose the appropriate sample.

Survey Instruments
For lack of secondary data (articles, journals, magazine), the researcher gathered data from the primary source by using questionnaire. To obtain data for this study the researcher used questionnaire because of the following reasons:    The researcher found that most of the previous research with large number of sample size used questionnaire method. It was not possible to make personal interviews for the large number sample size of 150. Internet survey was not possible for this study, as the research was conducted in the context of Bangladesh. A set of structured questionnaire was used in this research for collecting data from the employees of the Standard Chartered Bank to measure the four variables that is used in this research. Training has been measured in this study, as instructed by Lawler, E.E. III, Mohrman, A.S., Ledford, E.G. (1992), using a four item instrument and with the alpha value =0.72. Respondents were asked in order to find out the percentage of employees in the organization who received systematic and formal training in the past year in a variety of skills: leadership, business areas, quality, and technical aspects of the job. - 49 -

Internship Report: HRMP in Standard Chartered Bank

Employee Participation has been measured in this study, as developed byLawler et al. (1992) and recently used by Harel and Tzafrir (1999), adapting the five-item scale and with the alpha value =0.82. The items were used to find out the degree of influence that employee rank and file have on issues such as investment in new equipment, workflow, salary determination, and so forth. Responses ranged from 1 (not influential) to 5 (very influential). Employee selection has been measured in this study by an instrument composed of 4 items with the alpha value =0.79, in which respondents were asked to evaluate the importance attributed by the company to selection tools and tests used in the hiring process (such as ³How important is the manager's interview?´), on a scale of 1 (not important) to 5 (very important). Finally, perceived organization¶s performance in relation to its competitors¶ has been measured through four items questions in which the respondent was asked to evaluate the quality of her/his organization¶s performance as compared to that of competing organizations performing the same work in the past year. The alpha value used in this regard was =0.76 This variable covered several aspects, such as the quality of the product/service new product , development, the ability to attract and retain essential employees, and customer satisfaction.

Pilot Testing
The purpose of pilot test is to evaluate clarity, bias, ambiguous questions of the selected questionnaire. According to Cooper and Schindler (2003), pilot testing detects weaknesses in design and instrumentation and provides proxy data for selection of probability sample. Malhotra (2003) stated that, pre-test refers to the testing of the questionnaire on small group of respondents in order to identify and eliminate potential problem. Burns and bush (1998) recommended that a pre-test of 5-10 representative respondents is usually sufficient to identify problems with questionnaire. The researcher distributed 15 questionnaires among -20 15-20 employees due to time limitation.

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Data Collection Procedure
It was not possible to obtain information from secondary sources like magazine, article, or journal for the reason that very few published study has been conducted within the context of Standard Chartered Bank in Bangladesh. So, the researchers necessitated primary data in the exploration of research problem. The researchers conducted questionnaire to collect primary data.

Data Analysis Procedure
For this study, the researcher used statistical technique Stepwise Regression Analysis. The researcher used Stepwise regression to test the strength of association between the study variables. Stepwise regression also gave individual R2 for each independent variable with dependent variable. For this research, SPSS version 11 has been used as the Statistical Data Analysis tool as it offers greater flexibility in data analysis and visualization.

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RESULTS AND IMPLICATIONS

Reliability Coefficient and Descriptive Statistics
The reliability coefficients, means, and standard deviations of all the constructs in the current study are displayed in Table 2. The coefficient alphas for the different constructs were computed using the reliability procedure in SPSS (version 10.0). Nunnally (1978) suggested that for early stages of any research the reliability of 0.50 -0.60 is sufficient. The reliabilities of all the constructs in this study found to be above the standard set by Nunnally (1978).

Table 4: Reliability Coefficient and Descriptive Statistics of Training, Employee Participation, Employee Selection and Perceived organizational performance.

Scales Training Employee Participation Employee Selection

Number of items 5 5 6 4

Alpha 0.69 0.71 0.66 0.59

M 3.84 3.76 3.71 3.72

SD 0.39 0.45 0.48 0.45

Organizational Performance Note: n =150

The survey was done with a formatted questionnaire havi g a 5-point likert scale. n In this study alpha value for all the variables are present. Alpha value indicates the reliability of a given set of questioners. Reliability denotes the consistency level of a question. The standard value of alpha is 0.5 means any value over 0.5 is acceptable. In this study the alpha value is well over the standard value, which is a good thing for research. By seeing this value there is no doubt that the selection of questions is proper. The values are a little different from the original study done by Shay S. Tzafrir (2006) due to some adjustment made in this research. The means have been calculated by taking the average of all the answers of the questions in each variable. The calculated mean for Training is 3.84 with a standard deviation of 0.39. It

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signifies that the training program of Standard Chartered has high influence on the employee and the perceived organizational performance as the value is above 3. The mean for Employee Participation is 3.76 and has a standard deviation of 0.45. So it can be said that employees¶ perception about their participation in different aspect is high and they believe they are getting sufficient importance in their organization. The mean value for Employee Selection is 3.71 with a standard deviation of 0.48. This shows that the employee selection process in Standard Chartered Bank influences the perceived organizational performance highly.

Correlation Analysis
A correlation analysis was conducted on all variables t discover the relationship between o variables. The correlation procedure was subject to a two -tailed statistical significance at two different levels: highly significant (p < 0.01) and significant (p < 0.05). Table 5: Correlation Matrix for Training, Employee participation, Compensation, and Employee selection and Perceived Organizational performance Variable Training Employee Participation Employee Selection Organizational Performance

Training Employee Participation

-

.529** -

.557** .499**

.579** .583**

Employees Selection

-

.522**

Organizational Performance

-

**p< 0.01 (2 tailed)

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In explaining the relationship between the studied variables first we should know the range by which we can understand how significantly or strongly each variable related to each other. The ranges are given below: 0.0 to 0.2 Very weak, negligible 0.2 to 0.4 Weak, low 0.4 to 0.7 Moderate 0.7 to 0.9 Strong, high marked 0.9 to 1.0 Very strong, very high The table above is a result of a correlation analysis that has been done on all the data that has been collected through the questionnaire survey. This anal sis is done to show the existing y relation among the study variables (training, employee participation, and employee participation and perceived organizational performance). A bivariate two -tailed co-relation analysis was done by running the data on SPSS 11. In the given table it is seen that, each of the figures has the symbol µ**¶ which signifies that each of the variables are significantly correlated with each other at a significance level of p < 0.01. In the table it is visible that training is positively and significantly correlated with employee participation by .529 or 52.9 % (r = 0.529, p < 0.01), with employee selection (r = 0.614, p < 0.01) and with perceived organizational performance (r = .579, p < 0.01).

In case of employee participation it is positively and significantly correlated with employee selection (r = 0.544, p< 0.01), and with perceived organizational performance, (r = .583, p < 0.01).

Finally, employee selection is positively and significantly correlated with perceived organizational performance by .522 or 52.2 % (r = 0.522, p < 0.01). If we summarize the whole result we will see that there are correlations among training, employee participation, and employee selection with perceived organizational performance by training (r= .579, p