Introduction
Standard Chartered is a Public Limited Company based in the UK that provides financial services for people, corporate clients, and treasury services. The company primarily operates in the Asian region, the Middle East, and Africa, despite its headquarters being located in London. The bank has had a long story of presence in Singapore for 168 years since the reign of Queen Victoria, which makes the company closely connected to Singapore through its culture and values (Morris, 2012, para.19). Nowadays, the bank provides services to customers in more than 60 countries with approximately 1200 branches. Currently, the bank employs approximately 85000 people across 150 markets worldwide. Managing such a large number of employees requires substantial involvement of new technologies to address managing concerns and issues promptly. This paper will explore the impact that the COVID-19 pandemic had on the Standard Chartered bank, the development of technology in the company and its influence on human resource management. It will also identify strategic challenges that the company is facing and propose a human resource management strategy that will address the company’s needs.
Main body
The COVID-19 pandemic had a negative influence on all companies regardless of the level of their preparation and overall worsened economic conditions in the world. Business shutdowns worldwide proved to be effective in reducing the risk of virus spread among the population and preventing mortality cases (Bongaerts, Mazzola, and Wagner, 2021, p. 2). At the beginning of the pandemic, Standard Chartered Bank (2020) issued a statement that the bank would continue to work to serve all clients, including small businesses and multinational companies. The bank also provided financial help in the form of loans for manufacturers and companies whose work was disrupted by the pandemic (Standard Chartered Bank, 2020). However, according to the information provided on Standard Chartered’s website, the COVID-19 pandemic presented an unexpected opportunity for the company’s additional development because it required a non-standard creative approach to problem-solving.
The bank’s leadership suggested that the pandemic presents a substantial opportunity for the organization to redefine its identity and think about possible ways for future development. In particular, the bank’s leadership suggested that banks will be similar to tech companies in the future post-pandemic world. The development of technology allowed many employers to overcome the pandemic through virtual communication and remote jobs. For example, according to Standaert, Muyllee, and Basu (2021, p.3), virtual communication is more likely to replace face-to-face business meetings in the post-pandemic world. Therefore, the bank is likely to adapt to changes in the future through work principles and methods commonly used in tech companies.
The development of information technologies in the banking sphere became more apparent in the last decade when banks started using electronic devices, software, and mobile application to provide more efficient services. Through the years, information technologies became more widespread, and their application was significantly improved from automation of processes and data storage and became more user-friendly. The application of information technologies in the bank’s work processes improves the operational activities through increased speed of communication and allows an easier process of transactions between customers. According to Kumar, Sishumba, and Kapole (2020), Standard Chartered Bank made a significant investment in the development of the bank’s technological processes, which led to substantial growth in the customer base. However, the bank still experiences trouble organizing the working process as customers still have to face long queues in the bank’s offices and branches to get the services.
Therefore, after the COVID-19 pandemic, the bank faced the strategic challenge of providing competitive services in compliance with the security measures associated with the pandemic. During the pandemic, the bank experienced difficulties similar to most businesses, where stores and restaurants had to be closed or switched to remote mode to protect the population from the virus’s spread. According to Chaus (2020, p.198), the main function of HR departments in remote work cultures is to maintain employees’ morale. Furthermore, the remote work culture and cost-saving policies resulted in the cancellation of work training and employee development programs in many companies. Thus, the bank’s strategic challenge in providing quality competitive services for clients is connected with the development of technologies and human resource management challenges.
Furthermore, considering the aftermath of the COVID-19 pandemic, in addition to the lack of employee training and development programs, the Standard Chartered bank may experience a shortage of qualified workers. The recommended HRM strategy, in this case, focuses on the re-establishment of Standard Chartered bank’s organizational culture. According to Sharma (2021, p. 4), the leadership and management in the post-Covid era should encourage employees to make direct connections within the organization in order to promote unity and mutual respect within working teams. Furthermore, the organizational policies should promote diversity, equality, and inclusivity to strengthen the organizational culture and promote employees’ personal development (Sharma, 2021, p.4.). The author also recommends developing new recruitment and employee development procedures and techniques which will positively influence the employees’ experience and increase their engagement in the organization’s culture and work motivation.
The bank’s leadership defined that the pandemic provided an opportunity for the company to redefine its identity and improve the processes within the company to be similar to tech companies. Therefore, the new HRM strategy should implement some elements of HRM n tech companies to ensure achieving the company’s goal. According to Gürlek (2020), the human resource management strategy that suits the innovation-driven needs of technology firms is knowledge-centered organizational culture. The author suggests that knowledge management provides the foundation for the innovation research and development of new products in tech companies, which results in competitive advantage. Knowledge management systems imply the combined use of human resources and technological resources for increased efficiency of organizational and strategic processes (Di Vaio et al., 2021). The integration of knowledge management principles in the banking sphere is associated with the efficient storage and organization of knowledge, which supports increased collaboration between employees (Jacobson, 2021). Knowledge management systems such as decision tree software and knowledge management platform can significantly reduce the wait times for customers and improve the customer satisfaction level, increasing the bank’s competitiveness.
Conclusion
In conclusion, this essay discussed the development of technology and its influence on human resource management using the example of Standard Chartered Bank. The essay defined that bank experiences strategic challenges in providing competitive services and redefining the organization’s identity to become more similar to tech companies. Despite making a significant investment in the development of the bank’s technological processes, the bank experiences challenges in managing people due to a lack of integration of human resources with technology. The essay proposed implementing knowledge management principles for increased cooperation between employees and the promotion of innovation in the organization to develop a competitive advantage for the bank.
Reference List
Bongaerts, D., Mazzola, F. and Wagner, W. (2021) ‘Closed for business: The mortality impact of business closures during the Covid-19 pandemic’, PLoS ONE, 16(5), pp. 1-17. doi:10.1371/journal.pone.0251373
Chaus, M. ‘A study on business management strategies amidst the global pandemic’, Book of International Multidisciplinary Conference in, Technology, Business, Management & Liberal Arts, Bangalore, India. MTC Global Trust, pp. 198-203.
Di Vaio, A. et. al. (2021). ‘The role of digital innovation in knowledge management systems: A systematic literature review’, Journal of Business Research, 123, pp. 220–231. doi:10.1016/j.jbusres.2020.09.042
Gürlek, M. (2020) Tech development through HRM: Driving innovation with knowledge-based cultures. Bingley: Emerald Group Publishing.
Jacobson, M. (2021) The importance of knowledge management in banking.
Kumar, A.A., Sishumba, J. and Kapole, A. (2020) ‘The effectiveness of information technology on customer satisfaction in commercial banks (A case study on Standard Chartered Bank PLC in Lusaka)’ in Meral, Y., Zia, M.H. and Şisman, Y. (eds.) Current debates in social sciences InTraders 2020-3. İstanbul: Hiperyayın, pp. 168-186.
Morris, S. (2021). StanChart tries to navigate moral minefield.
Standaert, W., Muylle, S. and Basu, A. (2021). ‘Business meetings in a postpandemic world: When and how to meet virtually’, Business Horizons, pp. 2-23. doi:10.1016/j.bushor.2021.02.047
Standard Chartered. (2020) We’re committing USD1 billion to finance companies helping to tackle COVID-19.
Sharma, N. K. (2021). Post-pandemic Human Resource Management: Challenges and opportunities.