Reward systems or direction normally means the fiscal wagess and the non fiscal wagess which an organisation gives to its employees in return for their labour. The term wages system, non merely includes material wagess, but besides non-material wagess. The wages system of a company is fundamentally a system of wage and benefits used by the house to honor workers non merely in footings of pecuniary wagess. The constituents of a wages system consist of fiscal wagess such as basic and public presentation wage and employee benefits. Reward direction besides includes non-financial wagess such as acknowledgment, publicity, congratulations, achievement duty and personal growing.
Standard Chartered Bank
The compensation bundle, which Standard Chartered Bank provides to their employees, is divided into two chief classs. One bundle comprises of the gross revenues forces who have had the ability to run into their marks while the 2nd is counterbalancing the executives who are responsible for all the maps of the bank as a whole.
Compensating the Gross saless Force: The dependableness Standard Chartered Bank gives out to the clients every bit good as to its corporate is upon the ability of its bing gross revenues force. These are the on the job persons within the bank who take the right and active attack of acquiring the message out about the bank ‘s valuable services and merchandises.
The key to a successful gross revenues compensation plan can be achieved in three single stairss.
Measuring and tracking public presentation against set ends
Puting ends which are disputing yet realistic and accomplishable
Honoring accomplishment with competitory and motivational compensation
One or more of the undermentioned constituents are comprised in gross revenues compensation bundles. They are,
Periodic inducements tied to short-run ends
Annual inducements tied to short-run gross revenues activities
Fringe benefits to facilitates gross revenues attempts
Executive Compensation: Standard Chartered Banks runs good in the industry due to many grounds. Therefore, the manner the bank pays the top directors plays a immense function when it comes to motive and the critical public presentation needed for the development and the effectivity of the bank. The executive compensation bundle does non merely include the basal wage but besides includes the followers,
Deferred compensation agreements
Long-run capital accretion
Employment and charge of control understandings
Supplement benefits and fringe benefits
Particular retirement and rupture understandings
Reward & A ; Recognition
Standard Charted Bank wagess their talented and high acting employees competitively. Regular reappraisals and uninterrupted treatments have encouraged and helped the public presentation of the work force, which provides feedback to the staff about how, good they have engaged in their assigned undertakings. Never the less, the direction links this to both fiscal and non-financial acknowledgment.
In add-on, to the above, the bank besides provides a assortment of inducements in the signifier of extra fillips to the employees to actuate them for a higher public presentation. These include,
Best performing artist award
Spot award + Rs. 5000 as hard currency award
Service quality awards
Year of excellence services ( YES ) award
Rewards & A ; Benefits
Commercial Bank has continuously evaluated and reviewed its employee benefits to guarantee that the benefits are competitory and is in manus in manus with its employee demands.
Wages: Recognition of the single public presentation is done by the one-year reappraisal, which is subjected by the market competitory wage bundle.
Performance Bonus: This is the market competitory one-year fillip, which is based on overall consequences and single public presentation.
Share Save: Twenty per centum price reduction on the market monetary value is given to the employees of Commercial Bank when purchasing bank portions.
Incentive Schemes: Market competitory inducement strategies in specific concern countries.
Banking merchandises with discriminatory pricing
Private pension programs
Life & A ; accident insurance
Medical cheque ups
Medical allowance including optical & A ; dental interventions
Paid leave for matrimony, pregnancy, illness and holidaies
Annual employee get-to-gathers
Development chances & A ; calling support
Link between Motivational Theory and Rewards
Factors finding wagess and their impact on employee motive and enterprises influences any organisation for a consideration of a more systematic and structured attack to admit employees ‘ attempts, which would in bend flourish high public presentation civilization.
It is clear that there is direct and positive relationship between wagess and employee work motive. It means that wages is straight proportion to employee work motive. The alteration in wagess offered to employees needfully changes the work motive and public presentation of employees. Better the wagess, the higher the degrees of motive and greater degrees of employee public presentation.
Never the less, it is should be made a point to pass on wages to employees in proper ceremonial on clip, so that they can be better motivated. The low-level employee has perceived the difference in wage, installations, loans etc as de actuating factor.
Performance Evaluation Procedure
Annual public presentation rating is critical. “ Organization ‘s are difficult pressed to happen good grounds why they ca n’t give an hour-long meeting one time a twelvemonth to guarantee the common demands of the employee and organisation are being met. Performance reviews aid supervisors experience more honest in their relationships with their subsidiaries and experience better about themselves in their supervisorial functions. ” ( McNamara )
Subordinates are assured clear apprehension of what ‘s expected from them, their ain personal strengths and countries for development and a solid sense of their relationship with their supervisor.
After extended research, the two processs of both Bankss ( Commercial Bank and Standard Chartered ) have been stated below with mentions to their attack towards public presentation rating processs.
Standard Chartered Bank
Avoiding public presentation issues finally decreases morale, decreases credibleness of direction, decreases the organisation ‘s overall effectivity and wastes more of direction ‘s clip to make what is n’t being done decently. Therefore Standard Chartered has conducted the undermentioned activities when set uping public presentation rating processs.
Design a lawfully valid public presentation reappraisal procedure:
“ The jurisprudence requires that public presentation assessments be: job-related and valid ; based on a thorough analysis of the occupation ; standardized for all employees ; non biased against any race, colour, sex, faith, or nationality ; and performed by people who have equal cognition of the individual or occupation ” ( King, 2008 ) . Be certain to construct in the procedure, a path for resort if an employee feels he or she has been dealt with below the belt in an assessment procedure e.g. , that the employee can travel to his or her supervisor ‘s supervisor. The procedure should be clearly described in a force policy.
Design a standard signifier for public presentation assessments:
Include the name of the employee, day of the month the public presentation signifier was completed, dates stipulating the clip interval over which the employee is being evaluated, public presentation dimensions ( include duties from the occupation description, any assigned ends from the strategic program, along with needful accomplishments, such as communications, disposal, etc. ) , a evaluation system ( e.g. , hapless, mean, good, first-class ) , infinite for commentary for each dimension, a concluding subdivision for overall commentary, a concluding subdivision for action programs to turn to betterments, and lines for signatures of the supervisor and employee. Signatures may either stipulate that the employee accepts the assessment or has seen it, depending on give voicing on the signifier.
Agenda public presentation reappraisals:
Agenda the first public presentation reappraisal for six months after the employee starts employment, agenda another six months subsequently, and so every twelvemonth on the employee ‘s anniversary day of the month.
Initiate the public presentation reappraisal procedure and approaching meeting:
State the employee that you ‘re originating a scheduled public presentation reappraisal. Remind them of what ‘s involved in the procedure. Schedule a meeting about two hebdomads out.
Have the employee suggest any updates to the occupation description and supply written input to the assessment:
Have them enter their input concurrent to your entering theirs. Have them enter their input on their ain sheets ( their feedback will be combined on the official signifier subsequently on in the procedure ) . You and the employee can interchange each of your written feedback in the approaching reappraisal meeting. ( Note that, by now, employees should hold received the occupation descriptions and ends good in progress of the reappraisal, i.e. , a twelvemonth earlier. The employee should besides be familiar with the public presentation assessment process and signifier. )
Document your input. Reference the occupation description and public presentation ends:
Be certain you are familiar with the occupation demands and have sufficient contact with the employee to be doing valid judgements. Do n’t notice on the employee ‘s race, sex, faith, nationality, or a disability or veteran position. Record major achievements, exhibited strengths and failings harmonizing to the dimensions on the appraisal signifier, and suggest actions and preparation or development to better public presentation. Use illustrations of behaviours wherever you can in the assessment to assist avoid numbering on rumor. Always reference behaviours, non features of personalities. The best manner to follow this guideline is to see what you saw with your eyes. Be certain to turn to merely the behaviours of that employee, instead than behaviours of other employees.
Keep the public presentation assessment meeting:
State the meeting ‘s ends of interchanging feedback and coming to action programs, where necessary. In the meeting, allow the employee speak foremost and give their input. React with your ain input. Then discuss countries where you disagree. Attempt to avoid defensiveness ; acknowledging how you feel at the present clip, helps a great trade. Discuss behaviours, non personalities. Avoid concluding footings such as “ ever, ” “ ne’er, ” etc. Promote engagement and be supportive. Come to footings on actions, where possible. Try to stop the meeting on a positive note.
Update and finalise the public presentation appraisal signifier:
Add agreed-to commentary on to the signifier. Note that if the employee wants to add attach written input to the concluding signifier, he or she should be able to make so. The supervisor marks the signifier and asks the employee to subscribe it. The signifier and its action programs are reviewed every few months, normally during one-on-one meetings with the employee.
Nothing should be surprising to the employee during the appraisal meeting:
Any public presentation issues should hold been addressed every bit shortly as those issues occurred. So nil should be a surprise to the employee subsequently on in the existent public presentation assessment meeting. Surprises will look to the employee as if the supervisor has non been making his/her occupation and/or that the supervisor is non being just. It is satisfactory to advert the issues in the meeting, but the employee should hold heard about them beforehand.
( McNarma, 2009 )
Below, is the process in which commercial bank has designed its public presentation rating process.
Purpose of process
Supply an chance for the director and his/her supervisor to put common aims.
Supply a just and effectual agencies for doing forces determinations.
Acknowledge the importance of the director ‘s part to institutional success.
Supply a forum for unfastened treatment of the director ‘s single strengths and for the designation of countries where betterment is needed.
Better the public presentation of the director and, accordingly, of the unit administered.
Enhance the credibleness of the direction procedure, including the procedure by which determinations are made, in the eyes of those affected by the procedure.
Scope of process
Apply for the rating of the full company.
Contentss of process:
Identify public presentation standards:
The figure of appraisal standards for each place is from 3 – 10 standards.
The criterions set should be clear, easy apprehensible and in mensurable footings
The assessment standards can be changed but must be the authorization for blessing and must be implemented for the relevant degree before using.
HR section and managers/ supervisor will put up weight of each standard and must be approved managers.
Communicating public presentation standards:
HR section should inform this process to all degree of direction and employees.
The employees should be informed and the criterions should be clearly explained in order to assist them understanding their functions and to cognize what precisely is expected from them.
Performance standards should besides be communicated to the valuators or the judges and if required.
Measuring public presentation
HR dept should fix all stuffs, notes agreed undertakings and records of public presentation, accomplishments, incidents, studies etc – anything refering to public presentation and accomplishment.
Inform the appraisee
To guarantee the appraisee is informed of a suited clip and topographic point and clear up intent and type of assessment.
Give the appraisee the opportunity to piece informations and relevant public presentation and accomplishment records and stuffs.
Review and step
HR dept and directors / supervisors review the activities, undertakings, aims and accomplishments one by one, maintaining to distinct separate points one by one.
Agree an action program
An overall program should be agreed with the appraisee, which should take history of the occupation duties and reexamine strengths and failings.
The program can be staged if necessary with short, medium and long term facets, but significantly it must be agreed and realistic.
Comparing with desired standards
The existent public presentation is compared with the coveted or public presentation standards.
The consequence can demo the existent public presentation being more than the coveted public presentation or, the existent public presentation being less than the coveted public presentation picturing a negative divergence in the organisational public presentation.
The consequence of the assessment should be communicated and discussed with the employees.
The feedback should be given with a positive attitude as this can hold an consequence on the employees ‘ future public presentation.
The intent of the meeting should be to work out the jobs faced and actuate the employees to execute better.
The consequences, the jobs and the possible solutions are discussed with the purpose of job resolution and making consensus.
Pull offing Employee Separations, Downsizing and Outplacement
An organisation ‘s attempt is to engage the best Human Resource endowment available in the market. Sometimes, due to ineluctable grounds an organisation has to portion with its employees. Employee separations, downsizing and outplacement are some of the techniques followed by organisations for the above mentioned purpose. It is of import to observe here that the organisation incurs important costs both during the hiring and in the employee separation processes. The undermentioned costs could be chiefly identified as Human Resource Replacement Costs,
Training and Development Cost
Both organisations which are Commercial Bank and Standard Chartered Bank follow a scope of techniques for employee separation, downsizing and outplacement. These assorted techniques would be discussed in item and analyzed under the undermentioned subdivision.
Employee Separations, Downsizing and Outplacement
Employee separation could be defined as the procedure by which an organisation or an single ends his or her employment with that organisation. This procedure could either be voluntary or nonvoluntary. Where, voluntary separation is when an employee decides for personal or professional grounds to stop the relationship with the employer and nonvoluntary separation takes topographic point when an employer terminates the relationship with an employee due to economic necessity or hapless tantrum between the employee and the organisation. However, it should be noted that an organisation may hold certain benefits of separation such as,
Reduce Labor Cost
Replace Employees with Poor Performance
Opportunity for Greater Diversity
Downsizing or puting – off could be a really harmful solution for any organisation if it has non been done meagerly and with careful planning. However, if it is done decently it can move as a support for the organisation and consequence in the antecedently mentioned advantages. It could be said that how downsized or laid – off employees are treated straight affects the morale and keeping of valuable and good executing employees. Hence, downsizing or puting – off should non be done repeatedly without a thoughtful scheme as it can impact an organisations overall public presentation. The undermentioned stairss should be taken when puting off or downsizing employees,
As much warning as possible should be given for the ballad – offs
A private office should be used
The grounds should be clearly stated for the ballad – offs
No clip should be allowed for arguments
Integrity of all parties should be maintained
Employee should non be rushed off site unless there is an issue with security
Everything should be stated in composing
Outplacement services should be provided off from the company
The service of the employee should be appreciated in an appropriate mode
“ Outplacement is a term used to depict attempts made by a downsizing company to assist former employees through the passage to new occupations and assist them re-orientate to the occupation market. A consultancy house normally provides the outplacement services which are paid for by the former employer and are achieved through practical advice and psychological support.
Outplacement is either delivered through single one-on-one Sessionss or in a group format. Subjects include calling counsel, calling rating, restart composing and interview readying, developing webs, occupation hunt accomplishments and aiming the occupation market. Persons may be offered other services such as the usage of an office and online tools. ” ( Wikipedia Contributors 2010 )
An issue interview is an interview which is conducted by an employer when an employee offprints from the organisation. These interviews are normally conducted by the Human Resource Staff or some skilled interviewer. The confidentiality of these interviews should be assured while unfastened ended inquiries should be asked without any question and besides, the employee who separates from the organisation should be informed of how the Human Resource Department would follow up the associated job.
Choice Criteria for Redundancy at the Selected Organizations
It should be understood that the expiration of an employee based on redundancy takes topographic point merely when the occupation which the employee performs is no longer required to be performed. Any organisation or employer should be aware about their duties towards their employees before originating the redundancy procedure. When sing the choice standards for redundancy, that standards should be nonsubjective, non – discriminatory, systematically and reasonably applied.
Standard Chartered Bank
When sing the two selected Bankss, which are Standard Chartered Bank and Commercial Bank severally each bank follows about similar choice standards for redundancy. Standard Chartered Bank considers the undermentioned facets when choosing employees for redundancy,
Skills, Qualifications and Aptitude ( The bank believes this will assist the organisation to keep a well balanced work force )
Standard of work public presentation of single employees ( The bank would mensurate this by sing the information which was gathered through public presentation assessment )
Adaptability ( The bank considers this as a really of import facet as it is an internationally runing bank and besides since the bank carries out employee exchange plans the employees should be able to follow to alterations in working environment and besides should be able to set about different types of work in similar Fieldss )
Commercial Bank would see the followers facets when choosing an employee for redundancy. Some facets of the undermentioned choice standards would be given more accent.
The period of employment where the employees who were last recruited would be dismissed foremost, particularly those who are on probation
The type of employee significance if the employee is portion clip or a full clip employee
The degree of accomplishments which the employee has, this would include experience in the relevant field, makings and preparation
The public presentation of single employees
Commercial Bank, as it was mentioned antecedently follows similar choice standards to that of Standard Chartered Bank when choosing employees for redundancy. However, it should be noted that even though Standard Chartered Bank would give more accent on facets such as the single public presentation and the degree of accomplishment of the employee, Commercial Bank has a inclination of giving more accent on countries such the clip period which the employee has served the bank. Therefore, in instance if the bank has decided to disregard its employees the last recruited employees would be dismissed foremost where less consideration would be given to the public presentation and accomplishment of the employee. This method, where the clip period is concerned, could be criticized as the length of service is largely unrelated to capacity of an employee or the behavior. When sing the choice standards for redundancy of Standard Chartered Bank it could be identified as a really just and a balanced choice standards as the bank would even largely disregard wellness conditions of employees such as disablement and unwellnesss such as HIV/AIDS. It could besides be identified that there may be a big influence of the civilization within which Commercial Bank operates for its choice standards.
Therefore, based on the above information it was possible to get at the decision that the choice standards for redundancy at Standard Chartered Bank are better than that of Commercial Bank in many facets. It is recommended, in order to develop better choice standards for redundancy for Commercial Bank more accent should be given on facets such as public presentation of single employees and their accomplishments and makings alternatively of the length of their service period for the bank. It should besides be understood that younger staff would perchance posses cognition which is more applicable for the current universe.
Exit Schemes Followed by the Selected Organizations
Standard Chartered Bank
Standard Chartered Bank Employee Exit Leave Policy was revised at the terminal of twelvemonth 2008. This policy is applicable for all employees, i.e. permanent or direct contract employees who have finished working for the bank voluntarily or involuntarily.
All lasting staff should advise their director in composing that they intend to go forth the employment of the bank, adverting their desired last on the job twenty-four hours in conformity with their notice period, usually 1 month as stated in their contract of employment. The line director should subscribe the surrender missive every bit good provide the employee verification in authorship of either credence of surrender or the purpose to end the contract of employment. The line directors are so expected to come in the inside informations of the employee expiration in to the database ( ideally within 2 yearss ) so that the paysheet would halt in a timely mode.
Exiting employees should download and finish the issue checklist from the signifiers subdivision of the bank. An issue interview should be completed with Human Resource Manager and the employee surrender missive should be given to the Human Resource Manager during this issue interview. The bank allows the staff excess clip to finalise his/her personal businesss before call offing the labour card and doing the concluding payments. Upon issue all staff that has successfully completed the issue formalities are entitled to a service missive that merely states their day of the months of service together with the last place held.
If expiration is a consequence of redundancy, the employee will have a redundancy payment. From clip to clip the bank may be obliged to stop the employment of an employee instantly or on notice, in conformity with group policy, including the Disciplinary Procedure or Poor Performance Management process. In such cases, Human Resources will guarantee that the affair is treated in conformity with the predominating group and or local policy. In the event that an employee ‘s services are terminated due to gross misconduct, so the expiration will be with immediate consequence and without notice.
At Commercial Bank when an employee decides to vacate ( voluntary separation ) the organisation, his/her Manager and the Human Resource Manager would discourse the surrender before the concluding determination is taken. If the employee still decides to go forth the bank it is required for them to give a two hebdomad written notice period.
In the state of affairs of nonvoluntary separation, the bank would first disregard portion clip and introductory employees, particularly in instance of a redundancy state of affairs. Here, the employees who were dismissed would be compensated consequently. The bank besides offers voluntary retirement strategies. Here, the employees would be compensated harmonizing to Bankss policies.
At the point when an employee leaves the organisation an issue interview will be conducted by the Human Resource Manager of the organisation before the employees leaves the bank. Here, the bank is really concerned sing the ground for the separation and would ask the employee ‘s feeling sing the bank. The bank besides ensures entire confidentiality of this information gathered at the issue interviews.
At the point of expiration of employment Commercial Bank expects all belongings belonging to the bank to be returned. Commercial Bank follows a confirmation policy where the bank provides no information sing former employees but alternatively it would verify the truth or inaccuracy of information provided by a 3rd party sing an employee ‘s place and day of the months of employment.
When analysing the issue schemes followed by Standard Chartered Bank and Commercial Bank it is clear that the schemes followed by both organisation are non perfect. Both organisations do non supply outplacement services to their employees. This could be seen as a major drawback of both organisations.
However, Standard Chartered Bank provides their employees a service missive which states peculiar such as the last place held and their day of the months of service whereas Commercial Bank would non supply any such inside informations unless a confirmation is required sing a former employee by a 3rd party. When sing the above, the method followed by Standard Chartered Bank could be said to be better as it may be helpful in the procedure of happening new employment for the resigned employee.
Beyond this, the tactics followed by Commercial Bank in a state of affairs of voluntary separation could be said to be better as the bank conducts a peculiar meeting before the employee makes his/her determination concluding sing vacating the organisation. This is a better technique as this would assist the bank to retain possibly really valuable employees by sing their feedback sing the organisation.
Finally, it was possible to get at the decision that even though both Bankss, i.e. Standard Chartered Bank and Commercial Bank have drawbacks in their Employee Exit Strategies both Bankss have certain positive points every bit good. However, it could be recommended that both Bankss could better their Employee Exit Strategies through the debut of outplacement services. Commercial Bank could supply written grounds to former employees by giving description sing the place held by the employee and besides the service period.