Find out whether the bank sets performance expectations?

Every organization in the constantly changing environment needs some standards to perform.
This is especially the case for banks which have been at the top of the competition or are one of
the top few. Because banks need to perform their very best in order to compete with other top
banks.
The performance of organizations is due to its employees. So in order to be a better performing
organization, the employees have to work hard and have to follow performance standards.
Standard Chartered Bank also has set such standards for its employees. Doing so has two major
purposes.
First is to give employees a proper direction. They need to know that what kind of bank do the
top level executives wish to make. This will help them work towards a certain goal, instead of
working aimlessly. As collectively all employees work towards that goal, the bank would most
certainly move towards that direction.
Second is to motivate employees. It is to tell the employees that they aren’t in the type of bank
that is satisfied with the status quo and wishes be even better. It can also help fulfill the self-
esteem needs of the employees. This way the employees would remain motivated.
Standard Chartered Bank applies different ways to set the standards for the performance of its
employees. As the performance of the banks have different aspects, it is necessary to use
different measures so that managers can get a better picture of their subordinates’ performances.
Also they recognize their employee’s performance properly, when such standards are met, to
keep them motivated.
One such award system they use is the system of spot awards. Spot awards are the kind of
awards that are usually task or project oriented. When the Bank thinks that the employee has met
its criteria, by performing a special contribution towards that task or project, then they are given
this reward. This reward lets the employee know that their contribution was properly seen by
their supervisor and has been recognized as their personal effort for the organization. This is
highly beneficial for the employee’s self-esteem needs. It would also help to make such a
mindset among his peers that they, too should try their best to contribute as much as possible so
that they can be recognized for their work too.
There’s another such tool that they use for employee recognition, which is called employee
appreciation certificate. This a certificate for the employees whom the bank recognized, as
overachieved or greatly contributed. This is very similar to the previous tool, in the nature that
they both fulfill the employee’s self-esteem needs. But the difference in case of achievement
certificate lies in that they are awarded to those who have sustained greater performance over a
period of time. One-time good performance or good performance over a sustained period of time,
both are equally important. So spot awards set a one-time goal for average performers to look
forward to. Once they reach it, they would look towards sustained good performance goal.
Motivating them to do even more for their bank.
In this way, both spot awards and appreciation certificated are linked to the extent of recognition
they represent and the kind of achievement and motivation they help the employees feel. This
makes working environment in the bank more energetic and constantly improving. With
employees thinking of ways they can perform better and get the recognition of their superiors.
Although these are the tool that give recognition and are great for the self-esteem needs of the
employees. Bank doesn’t set performance standards with just that. There’s also another tool that
helps them motivate their employees towards good performance over a period of time. Not just
that, this tool can also expand the horizons of the employee who receives it.
This is awarding them by giving them something what the banks call “Short Term Assignment”.
Short Term Assignment, also known as STA, is basically assigning the employee for a short term
abroad. This is greatly helpful for not just the self-esteem needs but takes them to higher level of
self-actualization needs. This also helps nourish the growth of the employee. Nurtures their
abilities to perform and most of all, it is helpful for the career development of the employee.
The company doesn’t just keep measures for motivating the employees. Standard |Chartered
bank even hold motivation session for the employees. This is done in order to energize the
employees and make them feel that any human can achieve that targets and goals of performance
that they have set and it is both beneficial for them and the bank to achieve greater heights with
their bank.
So these tools help the banks employees know that what kind of effort is expected of them and
meeting those expectations would be greatly rewarding for their future career development. This
also helps align banks goals with individual level goals. So setting this kind of performance
system, makes it into more of a strategic maneuver. As it will help to achieve the banks overall
goal.
Does the bank monitor and develop the performance throughout the year, maybe one on
one feedback?
Monitoring of the performance of the employees is very important in any industry, it is even
more so in the banking industry. The banking industry needs to evaluate their employees to
check whether the performance in the company is doing good or not. Whether it is showing an
increasing trend or not.
This also helps the bank motivate their employees to perform better. This was proven during the
Hawthorne studies. In which, employees were observed to perform better under supervision and
later this effect was named Hawthorne effect. Monitoring of the performance is also a form of
supervision. This would help employees too, in knowing that in what aspects they are measured
and what are the things that they have to do better in order to be better performing employees in
the eyes of the bank.
There are also some costs associated with the whole formal procedure of performance
evaluation. As the bank has to deal with these various tasks, in a structured manner, it consumes
time too. So it cannot be done formally all the time so usually most organizations do it annually.
But in the case of Standard Chartered Bank, they do it semiannually and annually.
This is the perfect balance that Standard Chartered think is ideal for it to manage and cost using
this way is very less and benefits are great. In terms of not just motivating the employees, but in
terms of also checking the overall performance of the bank, because it needs to check whether
average employees are doing well, who are the overachievers and who are underachievers. This
also helps them set the average level of performance and compare it to their expectations and
goals. With this, they would have to later check if it is below expectation, what are the possible
measures they can take to remedy the situation. So this monitoring also holds an immense value
in strategic context.
As it is very important for the strategy of the bank, it shows the degree of importance laid upon it
by the top level management. These measures are part of the policy of Standard Chartered Bank.
They always make sure to make their policy into the practice.
To even increase the level of interaction, to make the employee feel that he is expected from,
during the process the evaluation team meets individual team members with their line managers.
The importance of line manager in the process cannot be neglected, as he is the person most
familiar with the employee, their nature and performance.
Line manager’s presence during the process can also be reassuring for the employee as the
employees are most familiar with their respective line managers. So, it is most suitable to take
feedback from them in the presence of their line managers.
Then during the feedback process, Standard Chartered Bank ask employees, their views on their
rating. This makes the monitoring and evaluation process even more robust. As evaluation isn’t a
one-way process. It needs information as much as possible to become a better process.
Not just that, it also helps employee know that where does he stand in the organization. It lets
them know the level they are performing as compared to their standard. Plus, by doing this one
on one feedback procedure, employee can understand better that where he is evaluated and how
can he perform better.
This also helps employees know their weaknesses and strengths in organizational context. Not
just that, it also helps the bank know about their weak and strong employees. So, this can be
considered as a type of SW analysis of human resources. This kind of strength and weakness
analysis is very important for the bank.
It needs to deal with constantly changing environment. There are various threats and
opportunities. In these kind of situations, which kind of employees be leading figures, which
kind of employees are suitable for key positions. All these kinds of information can only be
known through these kind of monitoring processes and procedures.
Succession planning is important component for banks too, hence in order to know that which
employees have the potential to replace existing key employees, it is important to know which
have the potential and motivation to work with greater performance in the bank. Those would
later become future leaders and managers of the bank. This will ensure good performance of the
bank in the long term
How the bank gathers data, observation and documentation?
Standard chartered bank gathers data from Line manager or Head of Department, and review the
comments provided in comment paper in form format. If they hire people, they collect data from
multiple software like Datica Aoc or websites like rozee.pk or linked in etc.
When are performance appraisal meeting done in the bank?
They are held semiannually and 2 months before issuing appraisal.
Does the company set new performance expectations for the next year?
Yes, the company sets new performance expectations for the next year. This is done by giving
new assignments to achieve goal. It meets 70% to 80% goals usually.