Critical Analysis Of The Current Performance Management Business Essay - Free Essay Example

To perform well in this assignment, you are expected to satisfy the assessment criteria identified in the matrix provided above. You should also research widely using a wide variety of articles relevant to the topic, with a minimum of ten (10) peer-reviewed scholarly journal articles. Wikipedia sources and other www source materials are not recognised as reliable reference sources. (For assistance in accessing such papers, students should access the CQU Librarys website.) Details Read the case study below. Provide an analysis of the case study below. Your paper should provide a critical analysis of the current performance management (PM) practices in the organisation. Your analysis should reflect current thinking and practice in international human resource management (IHRM) and the differentiating factors that warrant analysis in IHRM. It should include comment on the influencing functions such as staffing, training and development, employment relations, organisation and national culture and other relevant issues that may impact on the PM model. Do not answer the guide questions individually, but rather use them as a guide for your analysis, recommendations, if any, and conclusion. Global talent management at Standard Chartered Bank Standard Chartered bank has turned the emerging talent and skills shortage challenge around. Standard Chartered, an international retail and corporate bank with headquarters in London, derives 90 percent of its profits from emerging markets in Asia, Africa and the Middle East. With Standard Chartereds declared goal of measurably increasing leadership capacity by 2011, the bank faces major global HR challenges. An additional challenge is that it must recruit people from countries where there is a limited, often non-existent, pool of banking talent with the requisite skills and experience. Aware of the enormous talent management challenge, HR understands that the bank needs to create its own talent factory and do a number of critical things right. First, it needs the endorsement and emotional commitment of the CEO, regional business teams, and country CEOs. The talent management processes of acquiring, developing, and retaining people must become core strategic objectives of the bank and part of everything that managers do in every market in the world. Second, building a talent pool is a long-haul journey. For Standard Chartered, that translates into simple core processes, minimum standards, and reliable data so that managers can have acceptable country conversations on how to best manage talent in their part of the world. While introducing global standards and tools, managers in the emerging markets are given some latitudes to decide how to implement HR practices around talent. With 9 000 line managers, who tend to be rational and data-based bankers rather than touchy-feely types of people, an HR decision to focus on hard data as the source of action is a good fit. The result is a Human Capacity Scorecard, introduced in 2005. It has now grown to an extensive database that contains detailed work force information regarding the effectiveness of people processes and their impact on business performance for each business unit and country. The data are manage d through a Shared Service Centre in India. Employees are classified into one of four categories, ranging from high-potentials to underperformers. This helps managers better understand what they need to do to support their local talent and plan for the future talent needs of the bank. Third, because of the absence of skilled talent in the emerging markets in which they operate, Standard Chartered made the decision to focus on the strengths of its people (whether potential recruits or employees) rather than on traditional HR competency models. Since people perform best when they play to their strengths, it matches the strengths of its employees with the appropriate competency requirements of the positions to be filled. Finally, Standard Chartered uses a structured interview process to get leaders to play to their best skills, creates profiles to increase self-awareness, and offers coaching and self-help tools for improvement. Because leadership development is imperative for sus tainability, growth and a satisfied work force, they focus on the creation of an internal pipeline of people who can accelerate their personal development and assume leadership roles at a rapid pace. Combining executive commitment, standard processes, a data-driven Human Capital Scorecard, a focus on the strengths of its labour pool and an ongoing development of the leadership pipeline, HR is strategically managing the talent factory essential for the banks future success. Guild Questions 1. How does Standard Chartered Banks leadership development talent factory differ from traditional methods of developing leaders in Multi-National Enterprises (MNEs)? 2. What arguments would you put for or against Standard Chartered Banks process for acquiring, developing, and retaining employees to assume future leadership roles within the bank? 3. While Standard Chartered Bank has introduced global standards and tools, managers in the emerging markets are given some latitudes to decide how to implement HR practices around talent. Which HR practices would you recommend the bank standardise and which would you recommend allowing managers to vary in relation to managing talent in the banks emerging markets? 1.1 Human resources management: An historical perspective In order to find the first root of a working structure, we have to analyze the Middle-Ages. Indeed, Clermont Barnabà © (1981, pp.27-51) highlights the first traces of productivity and the delegation of duties at this time. It is hardly surprising that a certain notion of human resources management might have found. Indeed, we can highlight the first foundation of the working structure that we currently know with both status masters and serfs. However, this relation was not the more desirable for the serfs but it was possible to underline different social classes. Even though the concept of slave that we unfortunately know might seem quiet close of serf, there is a fundamental distinction because the latter enjoyed certain right that enables them to have a more favourable situation than the slaves; they were allowed to go to court, to participate to a contract and so forth (Microsoft Encarta, 2008). Moreover, the owners status depended upon the number of slaves what serfs was not and therefore, it shows us that they were considered more as the current concept of tools, machines, and so forth; included within the capital. At this period, a certain organization could be viewed with the development of guild a medieval association with two distinctions for merchants and craftsmen. (Microsoft Encarta, 2008) The organization inside is strictly hierarchical and controlled where three different classes of workers interacted. The master was at the top of the hierarchy but he was involved in the daily work with journeymen who were able to become a master in the future. Of course, they were at an intermediary level but the apprentice was at the bottom of the scale and occupied the worst position. This latter grade was compulsory. This association marked the real beginning of the human resources management because these three aforementioned classes formed a high close-knit group. Therefore, it was possible to emphasize a certain degree of specialisation in order t o produce and it enables them to interact between holders and workers. Talent management : art or science ? Fang Fang Li and Pierre Devos 16 Nevertheless, this situation evolved with the emergence of numerous events. Indeed, since the beginning of the 18th century, the new invention such as mechanization, the growing concentration within the towns, and the shift about organization for the production appeared. These new influences enable the transition from the domestic system to factory system. Indeed the mechanization does not enable workers to work at home anymore and a fundamental shift took place: the human moved through a defined location. The consequences for the human resources management were deep. Indeed, this period developed an interdependence of each position and duties. For instance, it was necessary to start and to finish the work more or less at the same time and therefore to set rules in order to develop an environment with a gathering of people. The human resourc es management knew during the second half of 20th century and during the first years of the 21st century a quiet growing evolution, highly diversified upon an international dimension and deep about the mentalities and/or relations between work and capital. Indeed the HRM is marked by the link between the respective interests for workers and the capital holders; these interests are rarely spontaneously convergent and sometimes quiet difficult to reconcile. This situation might be a source of tensions and frustration. (Leys, 2005) 1.2 Evolution of the Human resource function The evolution of HR function mainly experienced three stages: the personal department stage, the strategic human resource stage and talent management stage (Bersin, 2006). The graphic quoted from Bersins article named ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â€š ¬Ã‚ ¢talent management, what is it? Why now?ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬- can illustrate these three stages quite clear. Talent management : art or science ? Fang Fang Li and Pierre Devos 17 Figure 3: Evolution of the HR Function (Resource from: talent management, what is it? Why now? Bersin, 2006) Stage 1: personal department The ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â€š ¬Ã‚ ¢Personnel DepartmentÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬- was existed in organization during the 1970s and 1980s, which the business function was responsible for people. This department acted the role as hiring employees, pay for the salary, and make sure they had the necessary benefits. The systems which grew up to support this function were batch payroll systems. In this role, the personnel department was a well understood business function, the talent management is not involved as well as the human resource management. Stage 2: strategic human resource department During the 1980s and 1990s, the concepts of ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â€š ¬Ã‚ ¢Strategic HRÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬- emerged. In this stage, people in the organizations realized the much larger function of HR: job role design, organization design, recruiting and training the best employees, ensuring they are high Talent management : art or science ? Fang Fang Li and Pierre Devos 18 performers, dealing with performance issues, and ensuring your personnel and management practices conform to various regulations. Their activities also include carrying out the compensation packages including welfare, insurance, benefits, stock options and bonuses. In this role, the HR department became more than a business function: it is a business partner, reaching out to support lines of business, the emergence of the recruiting, training and performance management has some certain connected with the talent management. Stage 3: talent management We are now in the new stage: Talent Management. While strategic HR continues to be a major function, but more focus on a new set of strategic issues:  · How can we make our recruiting process more efficient and effective?  · How can we indentify the talents ability and potential, make sure they are put in the right position?  · How can we provide a learning organization that develops our talent?  · How can we reinforce our system and company culture to keep this talent? These new challenging issues require new processes and systems. It requires the integration between these processes and companys business strategy. Top leadership and HR involvement are essential, a talent mindset and capabilities must be embedded and sustained throughout the organization, and everyone in the organization should enlist in nurture and breed the talent. Creating and developing the talent through the process in this factory has become collective responsibility . The HR function is integrated with the business strategy in a real-time fashion. 1.3 A globally workforce trend When we come to the twenty-first century, the business environment has been completely ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â€š ¬Ã‚ ¢reinventedÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬-. The increasingly sophisticated computers technology is just one of the core shifts in how companies operate and succeed. For most of the company, human resource has become the major source of value. In the knowledge-based economy of twenty-first Talent management : art or science ? Fang Fang Li and Pierre Devos 19 century, human capability determines the winner and loser in todays global markets. Indeed, it is a necessary condition for which companies depends on, compete for and success. For a growing number of companies, competitive advantage lies in the ability to create a profit driven not by cost efficiency but by the ideas and intellectual know-how. The idea, knowledge, and skills from these people give the potential to produce value for company. Even though more and more people and organizations have realized the i mportance of human capital in the company, they dedicated millions of money to build their human resource system and supporting HR management. However, many companies complain that they do not have talented employees in their companies. Indeed, Susan Rider (2008, p19) complains the difficulty to hire talent in her text ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â€š ¬Ã‚ ¢a treasure of talentÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬- by saying: ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â€š ¬Ã‚ ¢this (talent) has become a problem for managers in many industries, and is exacerbated by employers that donÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€¦Ã‚ ¸t take pains to vet their prospects.ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬- This situation of job-hopping is very common in most of companies or more globally in certain industries. One of the important reasons we think is the lack of attention paid on the shift of labor force market. There are three remarkable changes of the labor force market in a global level during the past decades. The nature of work is shifting The nature of the work shifts from the reliance of manual work towards to knowledge-based work. In other words, the primary value of a company has shifted from tangible to intangible assets. Over the last twenty years, along with the opening of new markets, the economy of the developed world has taken a revolution in the nature of work and where and how value is created. It has propelled fundamental changes in ways of working, the nature of production and value creation. Modern organizations own and employ fewer of the basic inputs of production than they did twenty years ago, and they generally produce a much smaller proportion of their output directly in their own facilities. As Peter Cheese mentioned in his new book ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â€š ¬Ã‚ ¢The talent powered organizationÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬-, twenty-five years ago, eighty percent of a typical companys market value was based on its tangible assets, such as machinery and facilities. Only a small part of its value was attributed to intangible assets. Nevertheless, today things had been reversed. On average across all industries, only around twenty to thirty percent of value is attributable to tangible assets (Cheese, Talent management : art or science ? Fang Fang Li and Pierre Devos 20 2007). The greatest part of a typical companys value comes from intangibles, including its unique knowledge, capability, production process, service, logistic, marketing and relationships with clients and suppliers, its brand value and reputation. Almost all of these intangible assets are driven by human talent. That is why General Electric Company make its business slogan as ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â€š ¬Ã‚ ¢great people plus great team is moneyÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬-. The CEO of GE company Jeff Immelt mentioned: The initiative we are driving now is organic growth, if that is your initiative, it doesnÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€¦Ã‚ ¸t make sense to be training people exactly the same way you trained the m in past. So we identified about 15 companies that had grown at three times the rate of GDP, and asked them what they had in common, it was five things: external focus, decisiveness, inclusiveness, risk-taking and domain expertise. So we reoriented the way we evaluate and train along those lines. (Colvin, 2006) As he suggested the focus on the competencies that are crucial to the companys future business needs rather than focus on broad area. Skill shortage and aging population In business world, the labor shortage is a highly contentious issue. Many human resource professionals pointed out a sl Adapted from Briscoe DR, Schuler RS, Claus L 2009. International Human Resource