Sie sind auf Seite 1von 24

Cross Cultural Management Report On Standard chartered

Presented To:

Presented By:
Mohammad FaizanUsman(9848) MisbahRasheed(9641) Asma Haji Abubakar (6159) MehwishMouiddin (8268) Date: 15-12-2011


Letter of Transmittal Acknowledgement Introduction Mission Statement& Values. Standard Chartered world wise.. Cross Cultural problem Methodology.. Recommendations References


Dr.KahifMehmood, IQRAUniversity, Karachi, 15th Dec 2011. Respected Sir,

We are honored to present this report that you have assigned us. This report is based on the topic Cross Cultural Management Report on Standard chartered.

This report has been Prepared with great efforts and dedication, in compliance with course requirement and your instruction. We have learnt a great deal from the project, for which we are very grateful to you and as a group we found this work really interesting and challenging. Should there be any query concerning this report, well be happy to discuss it. Hope you like it. Regards, Mohammad FaizanUsman MisbahRasheed Asma Haji Abubakar MehwishMouiddin


We would like to thank from the core of our heartsto our Allah, who has given us our thoughts, vision and confidence to achieve our goals but however it was impossible for us to deliver this report without the support and motivation of our course teacher DR. KashifMehmoodwho not only gave us a chance to learn and write this report but also has been a true ideal for us. It was an unforgettable experience for which we thank the Almighty Allah and our teacher.

Regards, Mohammad FaizanUsman MisbahRasheed Asma Haji Abubakar MehwishMouiddin

History of Standard Chartered Bank
Standard chartered is one of the worlds best leading and emerging banks in the market having its headquarters in London. It is named after two banks originally named as Standard Chartered Bank of British South Africa and the Chartered Bank of India, China and Australia merged in 1969. Chartered Bank is the older of these two banks founded in 1853, by The Grant of Royal Charter from Queen Victoria. It was run by a Scot Economist, James Wilson who was a hat maker but made his bright fortune in London. Standard Chartered was founded in 1862, nine years later with the efforts of another group of Scot businessmen and John Paterson, who migrated to Cape Province in South Africa and became a successful merchant. Both the banks then had a huge expansion of trade among different continents of the world in order to capitalize and make handsome profits from the financing and trade of these banks. Standard Chartered was established in Pakistan in 1863, and had it first operations in Karachi. In 2006 it also acquired Pakistans Union bank. On 30th Dec 2006 merged its own subsidiaries with the Union Bank in order to become the Pakistans 6th largest bank known as Standard Chartered Bank of Pakistan. Standard Chartered Bank Limited is the oldest and largest Foreign Commercial Bank of Pakistan having 162 branches spread in Pakistan and over nine thousand employees working.

Standard Chartered Today:

As Standard Chartered today is one of the leading and emerging banks of the world, head quartered in London, has 30,000 employees in 500 different offices working in more than 50 countries of the world. It has an IT infrastructure features worldwide with 5000 servers & 35000 desktops that supports 600 applications differently. The Bank services and provides its

customers, consumers and the whole-sale banking-customers with the facility of Credit-Cards, Mortgages, Personal-Loans, Wealth and Cash Management, Foreign Exchange and other services like leasing etc. Its two of the largest acquisitions are the purchase of Grind lays Bank from the ANZ Group and second is Chase Consumer Banking Operations in HongKong in 2000. It is one the biggest acquisitions in the history of the banks. From these acquisitions Standard Chartered had proved to be a strongest firm and a leading emerging market globally in order to see a prosperous future and dynamic growth of the Bank.

Products n services:
Finance Lease Operating Lease Loans Domestic Banking Trust Operation Treasury Operations Morahaba Financing Bemisaal Investment Certificates Islamic banking products in accordance with Shariah principles Non-resident banking, provides discounted remittance charges between markets and other benefits Provides more than USD500 million to microfinance institutions and 80% of microfinance users are women Dream account that helps families save and manage their children future financial needs All-women branches in India and Sri Lanka, that provides customers with a safe and comfortable environment in which to discuss their financial matters Diva account, which is specifically for womens needs, with customized debit cards, discounts, benefits, and membership of the Diva club Kenyan 'X Account' for men, which specifically caters to men with active lifestyles Networking opportunities such as roundtable breakfasts for female customers.

Mission Statement& Values

Mission Statement
To be a foremost leasing company, receptive to the needs of our target market customers, acknowledged for consistently providing finer service quality and pioneering products, thereby delivering higher value to our stakeholders. To create exceptional value for our clients, investors and staff; through market leadership in providing innovative Leasing Products and Solutions, and by adopting and living our core values.

Our Values:

Courageous Stand up for what we believe to be right. We accept accountability and take calculated risks. We encourage others to do the same

We listen to our customers and colleagues and build strong relationships based on mutual respect. We work quickly, thoughtfully and effectively to deliver the best solution. We work quickly, thoughtfully and effectively.

Trustworthy We do what is best for the organization and our customers. We deliver on our promises and work to high standards. We are reliable, open and honest.

Creative We are innovative and imaginative in working with opportunities and challenges. We continuously improve the way we work, making it simpler, better and faster.

International We value our diversity. We share standards and best practice. We work together, as one team across the organization for the benefit of our customers. We work together building strong partnerships across the Bank.




























Standard Chartered around the world

Australia Bangladesh China Sri Lanka Singapore South Korea Malaysia Nepal Mauritius Thailand Taiwan Hong Kong India Japan Indonesia

Austria Italy France Germany Russia Switzerland Turkey United Kingdom Sweden Ireland Guernsey

USA Chile Peru Mexico Falkland Islands Colombia Brazil Argentina

Botswana Ghana Kenya Nigeria Zambia Zimbabwe Uganda South Africa

Middle East:
Pakistan Qatar Jordan Bahrain United Arab Emirates

Cross Cultural problems

The most important explanation behind cultural difference and scope in progress when employees of dissimilar country ongoing work mutually on combined projects and conflict ongoing arise among the group of dissimilar races and culture .Keeping in observation of such situation .The Cultural difference is appropriate extra important, and still show the way to breakdown of teamwork. This issue has developed into a hot issue and far and wide talk about. For these contradiction and uncertainty presented in multinational corporations managing, some big business operator believe that this is a big business managing issue; at the same time as they make an effort to solve this crisis, however the effect is incomplete, or copying of hard work. In reality, it be cultural difference in the multinational companies managing, and cultural Some religion, language or attitude, ideas may be extra often verbal. They mostly contain one language, one religion, and single category of faith system. These two countries vary since one an extra, at a lot of different aspect of society, other than as a great deal as they differ since one a different there are some similarities between both countries. Management of Standard Chartered Bank (Pakistan) Limited (the Bank) is accountable for establish and maintain a sound structure of internal controls designed at achieve the follow objectives of the Bank: Effectiveness and efficacy of operation Fulfillment with appropriate laws and policy Consistency of economic treatment

Initially ,Standard Chartered Bank had a cultural issues of language they came up with the higher management ,who were form the international background to hire workers with goods communications skills was one of the challenge for them ,but after sometimes they had controlled the situation and now Standard Chartered Bank has a skilled , efficient , experienced and well educated management and its employees


Standard Chartered Bank has an international group of professional with Islamic finance skill person devoted to growing Shariah accepted financial solution for the Standard Chartered Bank. As well, our Shariah decision-making group provides help to our Islamic Banking side and approves the Islamic laws. The development of product and Shariah analysis ensure that SCBs Shariah law are free of Riba (interest) and within the plan set through the Shariah (Islamic law) .When it start a cultural issues Standard Chartered Bank also had faced a problem challenge and that challenge is about interest free banking or a Islamic banking, so the Standard Chartered Bank started a Islamic banking by its newly launched saadiq currentaccount for those customers who are not willing to have interest or monthly profit thing but they wanted it in a right Islamic way, so the Standard Chartered Bank took a decision to start Islamic Accounts for its value customers

The big Challenge ofStandard Chartered Bankinside the Islamic CountriesSince the conventional banking system is widely spread inside as well as outside the Islamic Countries for decades, it gains the clients trust especially if it is well regulated and actively Contributed to the economy. On the other side, IFIs are new player in the financial market; Therefore, they strive to compete with the existing system inside the Islamic countries. IFIs are Still building up their regulatory system and trying to contribute to the countrys economy in Line with Islamic Sharis. IFIs are currently recruiting their employees and management from Those who work in conventional banks because of the serious shortage in their manpower

Another important issue is to maintain the relationship with the management and the customers satisfaction .what the management need, how they can fulfilled their needs, how much they give the benefit to their employees, bonus and allowances and how much customers satisfied with their services . Develop respectful and cooperative relationships with all individuals from differing backgrounds. Build up civil and supportive relationships with all persons from opposed background. It might look like a lot of try to construct cross cultural business relationships and however the benefits of building these dealings far be more important than the cost


The Standard Chartered Bankhas another issue to Islamic banking in Pakistan as compared to conventional banking system. There is need of experience person who are well aware about the Islamic banking and give the knowledge about the Islamism banking to increase the value market demand of Islamic finance ,lack of professionals, need of new technology, no legal framework, no central bank, , no central bank and the educated scholars are important to compete the other banks

Foreign currency transactions issue. The Transactions in foreign currencies are translated to Pakistan Rupees at exchange rates current at the date of the Transaction. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to Pakistan Rupees at the exchange rate current at that reporting date. Foreign currency difference arise on retranslation are accepted in profit or loss.

The Standard Chartered Bankis coming to the western culture and their Limited government involvement in the deal-making and in Pakistan they the use of involvement of the government is must because in the Pakistan government is the back bone without government we cannot do anything in Pakistan.

In initially they focuses on the short term planning than they has to faced the problems after that they understand the mentality of Pakistan then they moved to the long term planning which type of the customer will come ,what type of product they need ,how they understand ,what the customers wants .

ISSUE # 10
How to utilize an institutions history while increasing into a nimble modern organization?
Todays unpredictable and complicated international environment needs new authority features the ability to manage inconsistent needs under conditions of excessive indecisiveness, to weld together a consistent and focused worldwide company whilst improving local variety, and to

encourage staff unmoved by older ordered techniques. Experiencing these difficulties was Standard Chartered Financial institution, a large and long-established worldwide bank focusing on appearing areas with a strong modern custom that has over 73,000 people in 1,700 workplaces across 70 countries. Mervyns Davies, then the control supervisor with liability for engineering, and who therefore became the CEO of Frequent Chartered Affordable training, designed to Said Enterprise Training and to Ron Emerson (a former individual control of the lending company who is now can Be linked Other of Said Enterprise School) to make a series of different applications. Key to the approach done by Oxford was status the contacts in the location of reflective practitioners: to offer them the functions, remedies, and often the new thoughts, to see their business issues in a new lamination to reframe the difficulties and leads so that new techniques could be designed. There was a need to see management as a positioning on holiday of recovery and leadership as the features to get around that journey while still offering directionality and management. The first application, The New Enterprise Alliance, taken care of an immediate dilemma experiencing the bank: integrated, had become a key situation, especially of IT with overall technique. It was becoming obvious that the Suppliers technology and business areas were continually not able to get in touch properly with each other, The program, went to by one hundred of the Loan companies top IT and country administrators in its first year, demonstrated a good results.

This was followed by a series of Authority Classes, went to by 300 of the Loan companies top management, such as selected board members, looking at wider issues of leadership, interaction and self improvement. The programs have utilized on a wide range of professions. Beginning ones presented instructional thoughts from complication idea and situation developing. There was considerable use of team work in syndicates to develop the concentrate further, as well as contributors working on their personal times. Participants labored on problems such as the effective use of information techniques and the profitable progression of customer interactions. As well they were also looking at bigger ideal difficulties what would be the appearance of checking and financial in ten years time, how to

develop a powerful enterprise, how to win the war for talent by strengthening the newer technology and women secured.

ISSUE # 11
Relaxed work culture. Good place for people, who do not have many expectations from life.
Typical chartered is having good guidelines for personnel advantages, they have many offices here in Pakistan so a personnel can switch to different area, and flexibility to worldwide nations around the world are also being provided but on other hand A person tends to get calm and sluggish, because of the slowly work lifestyle. No concentrate on expert progression and on understanding progression. Campaign and income increase is very slowly. Most of the front-line and sellers are not very knowledgeable and are just normal students. Computer not innovative and insufficient synchronizations between various departments At Standard Chartered, Diversity & Inclusion lies at the heart of our values and forms a distinctive element of our brand. Diversity & Inclusion is simple: we want to get the best out of the broadest spectrum of people to sustain strong business performance and competitive advantage. Standard Chartered supports the 1948 UN Declaration of Human Rights which contains number of fundamental rights. The bank is committed to uphold and protect these rights in their internal policies and procedures with respect to their employees, customers and communities they operate in Marginalization and discrimination faced by Dalits in socio-economic spheres is a key issue that the CSR policy of Standard Chartered Bank in India with its long history might have been expected to have been addressing. This community is the most vulnerable in India, with limited access to key essential services such as health facilities, education and income-generating opportunities.

ISSUE # 12
Ghana: TDCL Barks at Standard Chartered Bank
Tema The control of the Normal Chartered Bank, Ghana, has been energized of posting their personnel to illegal guide function and business process that does not only go against the circumstances of the Nationally Work Act, but is also an affront to the 1992 Framework. This has furious experts and contacts of the Tema Area Specialists of Work (TDCL) to make a strong-worded three-page website to the control of the lending company to sign-up its unhappiness about the process of their personnel. The website, old July, 26, 2011and treated to the Major Management Professional (CEO) of Stanchart states; "We are phoning on your control to rescind your choice on the illegal guide function techniques and the apartheid techniques you have unacceptably personalized immediately. If these needs are not met within one (1) months time upon expenses of this website, the TDCL shall lawyer itself accordingly." The website, which was finished together by the Chairman and Associate of the TDCL, Messrs. Wilson Agana and Ebenezer Kodwo Taylor respectively, described in the extensive run, violation in disciplinary techniques, increased holding out in conversation, and violation of the Mixed Interacting Agreement (CBA) as the major problems influencing employees of the organization. According to the letter: "Management has dropped to pay in the extensive run, after employees have decreased their own enjoyable a while to function in the extensive run in the interest and progression of the business." On the dilemma of violation in disciplinary techniques, the website noted: "The Specialists is surprised that a big and trusted business like STANCHART, which is approximated to know better, has dropped to accept the set up down techniques permitted and finished by both activities - the Alliance and Management. "Again, the Specialists is astounded by the routines, where control has set aside the CBA and organization your own undesirable section without the Alliance and employees acceptance as enshrined in the CBA, which was usually finished by control. This techniques by control amounts to illegal training, which is despite the provide of the Nationally Work Act." The website further energized the STANCHART control of ignoring to sit down at the talking about workplace to parley on problems concerning personnel, for a helpful solution.

The TDCL said the control of STANCHART, by its techniques, wants to peaceful its personnel not to come out with their problems, even if they have problems and are dissatisfied. "The techniques of control is against the self-reliance of idea by personnel, which is an affront to the 1992 Framework of the Republic of Ghana, the circumstances of the Nationally Work Act and the ILO Conference," the website troubled. The website was attractive to the Associate Typical UNICOF, Reverend of Profession, Nationally Work Commission amount rate, Nationally Chairman STANCHART, all regional and section regional authorities of guide function, and the regional assistant.

ISSUE # 13
Standard Chartered Bank Business Development Manager in Mumbai (India)
Disappointing. Was not given an opportunity to learn, grow or improve. Big organization, large system Great f &b amenities, good health facilities NO center. Workers act very pleased and do not help their fellow workers. Maybe they experience they need to work that way because of the organization connections. However, it was a unsettling practical knowledge for me - I would not suggest it to anyone who is considering a useful profession development and/or discovering possibilities. The dimension organization is too big and the organization of control is certainly not that easy all the time many instance its challenging to express your concept to greater specialists. Low income and small advantage don't count with yearly economical outcome. Promotion seems an issue to everyone although there are more certifying internal than other economical institutions. Outsourcing, such as ITSC, is big disaster to the whole organization. It causes in-efficiency around the globe.Training funds seems to be cut always.Minimum stage of delegation to people down the hierarchy.A bit unorganized and badly maintained environment. The business is not particularly considering being at the leading side of its areas.

Overall good, but people career management could be handled far well
Forward preparing of the most important property - people, is often missing for all but the few that are "fast tracked", no arranged progression plan or expand despite it being pointed out as a primary purpose. Too much function stress. Uncommon objectives, Insufficient values at the walk out, No function life stability and little time to chill out and rest. Non-stop work and no admiration from other departments.

This information related to our project has been collected from the main branch of Standard Chartered Bank, in Karachi. The methodology used is as follows: Collection of data by conducting interviews of the officials of the Bank. Internet Search and web browsing. Study of Banks annual reports and data. Frequent visits to different branches of the bank. A comprehensive study of the literature has also been carried out to see factors that help in achieving a competitive advantage in a dynamic banking environment globally.


Standard chartered should appreciate their employees work. The y should let them know that they have performed the task well. This will motivate employees and at the same time they will be ready to take more challenging task. They should also provide sufficient time so that employees can maintain work life and family life. In this way they will have highly motivated staff this will not only improve their performance but will also increase benefits for the company.

Indians are more self-interested they care for themselves only. The problem in India rose because the staff was not coordinating and were only thinking of themselves and their promotions. Working environment is successful when people coordinate so company should change their organization culture and should train the heads so that they can transfer this knowledge to the lower levels.

Standard chartered should work and set its rules according to the host countries environment. This will make employees feel equality in their nation and they feel they

are fairly treated. This problem occurred in Ghana. They set rules and regulation according to their feasibility they didnt consult the government. So legal actions were taken against them to overcome this issue and the company should see the rules and regulation of the host country as well.

At standard chartered the benefits employees get is that they can transfer themselves to any branch according to their area of comfort. The issue which standard charted faces is that is of technology the technology which is used in Pakistan is far too old so the problem of inter branch communication issue exists because of which customers are facing the problem. Company should upgrade the system and should send professionals from the parent country or any different region to train employees in Pakistan that is they should use ethnocentric staffing approach this will help them in technological advancement and at the same time staff in Pakistan (subsidiary) can be trained as well this will help in improve of performance hence increasing customer satisfaction. Interest issue for customers in Muslim country Standard Chartered Bank faced interest problem in Pakistan which is considered Haram in Islam. But still it had the interest system in Islamic countries but there was still some cultural issues due to which it was not able to attract its customers in Islamic countries.

Standard Chartered Bank has an international group of professional with Islamic finance skill person devoted to growing Shariah accepted financial solution for the Standard Chartered Bank. As well, our Shariah decision-making group provides help to our Islamic Banking side and approves the Islamic laws. The development of product and Shariah analysis ensure that SCBs Shariah law are free of Riba (interest) and within the plan set through the Shariah (Islamic law). In Islamic countries like Pakistan people are turning to Islamic financing so to retain your customers company needed to come up with new strategy. So they decided to launch new product in Islamic banking. Standard Chartered Bank also started a Islamic banking by its newly launched Saadiq Current Account for those customers who are not willing to have interest or monthly profit but they wanted it

in a right Islamic way, so the Standard Chartered Bank took a decision to start Islamic Accounts for its value customers. So this is how they resolved this cultural difference.