Disciplinary Action

This report concerns on the disciplinary actions taken in any organization. The report contains relevant information about what are disciplinary actions, the angles or dimensions in which the disciplinary action can/may be taken and types of disciplinary actions. More over this report also holds an interview with Mr. Fareed Khan, Human Resource Manager at Standard Chartered Bank. He shared his knowledge regarding the disciplinary action that SC takes when there is misconduct taking place in their organization and what are the procedures through which they take those actions. DISCIPLINARY ACTIONS

Discipline is a form of training that enforces organizational rules. Organizational Rules are specific guidelines that regulate and restrict an individual behavior. Rules reflect a management decision that whether actions should be taken or not in a given situation. In any organization there are a certain set of standard rules and regulations, which every employee have to follow as their duty. But when the employees break these set of rules, intentionally or unintentionally, they have to pay a price for that misconduct. There are some problem employees in every organization that often cause the most disciplinary situations.

If the employer fails to deal with these problem employees, this will send a negative impact of other employees. Therefore, Disciplinary actions are thus taken for the correction of the misconduct of the employees in an organization and to improve and recover the respectability and decorum of the workplace. But disciplinary actions must be taken by appropriate people and must hold on to the policies of the agencies that are involved, so that the misconduct can be treated fairly. TWO DIMENSIONS OF DISCIPLINARY ACTION:

There are two dimensions in which discipline is viewed.

* Positive Discipline: Positive Discipline implies discipline without punishment. The main aim of this is to ensure and encourage self-discipline among the employees throughout the organization. The employees in this case identify the group objectives as their own objectives and work hard to achieve them. The employees follow and stick to the rules and regulations not because to the fear of penalty and punishment but due to the inbuilt desire to coordinate in achieving organizational goals. Employees exercise self-control to meet these goals.

Therefore these actions are much preferred for the increase of employee commitment with the organization * Negative Discipline: Employees adhere to rules and regulations in fear of punishment which may be in form of fines, penalties, demotions or transfers. In this case, the employees do not perceive organizational goals as their own goals. They have no commitment with the organization.

They only fear the management. The action taken by the management to ensure desired standard of behavior/code of conduct from the employees in an organization is called negative discipline. The fear of punishment prevents the employees from going off-track and committing a fraud, they have a lack of job security. TYPES OF PENALTIES FOR MISCONDUCT/INDISCIPLINE

For not following the standards of behavior/code of conduct in an organization, there are two kinds of penalties categorized as- * Major penalties- These penalties are given when a serious crime or such a behavior is committed that are unacceptable to the organization. This penalty includes demotion, dismissal, transfer, discharge, withholding increments, etc. * Minor penalties- These penalties are given on small and minor misbehavior or misconduct. That can be ignored. Or when the person has committed a misconduct the first time, unintentionally. This includes oral warning, written warning, fines, loss of privileges, etc. DISCIPLINARY ACTIONS IN FIRM:

While disciplining an employee, it is always important to make sure that the action taken is equal to the nature of the crime/misconduct that’s been done. There must be no injustice while deciding the punishment for the miscount. Every employee must be treated equally. Another important thing is that the wrongdoer must be given a fair chance to present himself. He must be given the right to justify why he did what he is accused of, or if there is a misunderstanding, or just to tell his side of the story before a decision is taken against him.

Certain mild offences should also be punished with mild penalties. Some disciplinary actions in firms include; * Oral warning; when a misdeed is not that serious or when an wrongdoer is a first offender, he can be given oral warning. The HR person may invite him, talk to him, explain and caution him and warn him to desist from such actions in the future. This is a positive penalty. And the offender may resist carrying out that misdeed again.

* Written warning: When the offence committed by the employee is not an offence that you can just warn him verbally and let him go, he is issued an inquiry. He replies the query and explains reasons for his action, which are documented for future references. After considering his response, a written warning is issued and a copy of the warning letter also documented in the staff file.

* Loss of entitlement: Some indiscipline is cautioned by denying the offender his or her entitlement as a warning for the action. In some cases, the offender may not be paid any allowance or bonus due to him to punish him for the indiscipline committed. * Suspension: If an offense or misdeed is strong, then employee may be suspended without pay. Depending on the level of offence the suspension may take up to two months or more without pay. * Demotion: A staff can be demoted from his position because of indiscipline. If a manager keeps on coming to work late, how will he lead and control his subordinates?

And the subordinate may also follow his steps. The best thing is to demote him if he has been advised about it and he fells to change. * Termination of appointment: When an employee commits an offence that the company cannot overlook or forgive, and it is a breach with the standards of the organization, his appointment may be terminated.

* Dismissal: This is the strongest action that can be carried out on an offender. When an employee gets involved in fraud, stealing, illegal business etc the firm may have no other option left than to dismiss him out rightly. Disciplinary action is always carried out in sequence. For instance if one is a first offender, and the offence is not so bad, he can be warned verbally. Then if he commits another offence, he is queried and probably suspended from duty without pay. If another offence is committed by the same staff, his appointment may be terminated.

On the other hand when a staff commits a grievous offence like fraud, the punishment is summary dismissal. ENCOURAGING DISCIPLINE IN ORGANIZATION

Rules and regulations should be clearly stated: For discipline to be instilled in employees there should be clear rules and regulations that specifies what is expected from each and every employee and what is not expected from them. The employee handbook or manual for instance should be clear in the dos and don’ts of the firm. 1. The rules and regulations should be constantly updated and reviewed.

This will make it possible remove those rules that are no more needed and accumulation of new ones that are needed and mandatory to be in the rule book. 2. There should be no discrimination in enforcing rules and regulations. To make sure that there is discipline in an organization there should be a general rule for every defaulter. There must be no biases, and no favoritism in the organization at any instance. 3. Things should be prevent that will lead employees from getting involved in indiscipline should be discouraged and prevented.

4. There should be proper communication of the rules concerning discipline in the firm. These rules should be written in the employee handbook and also put in notice boards. By doing this, no employee can say he or she is not aware of the rules. 5. Disciplinary actions should be in such a way that defaulters will not want to be disciplined a second time after defaulting for a first time. STANDARD CHARTERED BANK:

Standard Chartered Bank (SC) was formed in 1969 through the merger of two separate banks, the Standard Bank of British South Africa and the Chartered Bank of India, Australia and China. These banks had capitalized on the expansion of trade between Europe, Asia and Africa. SC has a very diverse workforce. They employ over 87,000 people, who speak 170 languages and represent 130 nationalities. Women make up almost half of our workforce, representing 21% of our senior management and 34% of our people managers.

We visited Standard Chartered Bank for the collecting information on how they carry out practical implementation of the disciplinary actions in a banking sector. There, we interviewed Mr. Fareed Khan (Human Resource Manager) and he told us about the standards of SC and how the rules are formed and how the disciplinary actions are taken and on what bases are these penalty given. Standard Chartered Bank: Rules and Code of Conduct.

Standard Chartered has a manual maintained of 200 pages that has a directory of all rules and regulations of the bank, where the employees and staff can find all the information they need. Also they have an internal website operating that has access to different situations and how they are to handle on different topic, which the employee may go and check when they find the need to do so.

If there is a breach in these codes of conduct, the employee/staff/management has to pay for that misdeed. Failure to follow the Code may result in breaches of law, regulation, Group standards and reputational damage. It may also lead to disciplinary action, which could lead to the employee/staffs dismissal Standard Chartered Group

The Standard Chartered Group means Standard Chartered Bank, its holding companies and subsidiaries. And “Group standards”: means any Standard, Policy or Procedure in force within the Group. At Standard Chartered, the group decides what penalty to give and to what extent, should the penalty be minor or major, which depends upon the nature of the crime. SC has a dual reporting line of Matrix. If there is any situation taking place at the bank, they have to inform their current group as well as within the country Legal Parties

SC has a legal party that is a separate entity, a third party that is called to judge the situation, and put forward a neutral and fair penalty for the offender and share their opinion about the case. In this way the offender gets a fair chance to speak for his defence, and explain why he committed that deed. DISCIPLINARY PROCESURE AT STANDARD CHARTERED:

There is a complete procedure that is followed if an employee or staff of the bank is found or accused of being guilty. The steps are as follows: STEP 1: Identify the wrongdoer:

The 1st step is to find out the wrongdoer. SC has a code that says “Speak up”. If anyone at SC sees something wrong happening/taking place and are against the group standard, they must report immediately. All the staff members are to report that incident even if they are not 100% sure about it. The Group will take care of the conformity of the doubt. If anyone is found to be silent even when he/she suspected something after a major incident has happened, they will be given penalty as well. STEP 2: Investigate on the information:

Once the information is received about a misdeed happening at the bank, the group starts to collect evidence against the offender. All data records are than checked and all possible measures are taken to be sure if the suspicion is correct or wrong. STEP 3: Corner the Wrongdoer:

If the suspicion comes out to be true, the group corners the offender and tell him about the evidence that are found against him/her. He/she would then be asked the reason why he/she committed that misdeed and will be held against it. STEP 4: Fair chance to defend:

The offender will be given fair and equal chance to defend himself. He can hire a lawyer and also share his part of the story, to know if the act was intentional or intentional, and what was the reason behind committing that crime/misdeed. So that he would not spread bad word of mouth on not being given a fair chance to explain his behavior STEP 5: Penalty to be decided by the group and legal council:

If the offender isn’t able to explain the reason of their behavior, he will be given penalty according to the nature of his crime/misdeed. This penalty will be decided by the group as well as the legal counsel, so that the price of the act is justifiable as it is also decided by a third party. The offender might be given a written warning if the deed is not that serious, and if the Misdeed is very serious he/she might even get suspension without pay and/or termination from the job. STEP 6: Record the incident that has happened:

All the misdeed that are experienced and disciplinary actions taken against them are recorded and the file is maintained for future references of such incident. Examples of Disciplinary Action Taken At SCB

For example if a person, accepts bribery and corruption. If a person is found to accept bribery or is found to be involved in corruption, and is reported by someone, than the group will take necessary measures to find out if the report is authentic or not.

Once it’s been confirmed that the person is involved in corruption, the group sends him a notice that he has been charged by a misdeed, and to report on a certain date for clarifying his actions. He is than given a fair chance to explain and share his side of the story. After that he will be given a penalty, demotion, loss of authorities, loss of promotion, and if the crime if very serious, he might even be suspended without pay. For example if a person, is combating financial crime.

If a person is found to be involved in helping a costumer with money laundering or fraud, and this is proven to be accurate, than that person will be cornered with the group n legal parties. And then most probably would be terminated and be handed over to the law enforcement as this act is against the rules and regulations set by State Bank of Pakistan. For example if a person, is being compromised with gifts and entertainment.

If a person is been given gifts by a costumer it should be recorded and informed to the group. But if the person didn’t inform and the gift is of low value, such as discount on water than he will be given a written warning, but just in case if he is found to accept any gift that is of a very high quality, such as an LCD TV or a vacation trip, than he will be held against his deed, and his bonuses will be held, and his authority may be taken back. CONCLUSION:

Disciplinary actions are taken when there is misconduct in an organization. They are mostly taken to correct that action rather than to disgrace the staff. Disciplinary actions are mostly positive and at very rare cases, harsh actions might be taken, such as termination and dismissal. At Standard Chartered, they have a system of rules and regulation that need to be followed, and if they are broken the wrongdoer has to pay a price depending on the nature of the misconduct that they have done.