HRM in NatWest Bank

Running Head: HRM in NatWest Bank
Human Resource Management
Report
System04104
5/28/2019

HRM in NatWest Bank 1
Introduction
Human resource management is a practice of managing and guiding the performance of
human capital in the organisation in order to achieve the organisational goals and objectives.
Human resource management provides power to the organisation to deal with any situation
with the human resource capabilities and with their talent power. However, most of the
organisation spending their power on mainly three activities such as recruitment and selection
of people, employee compensation, and work designing or defining the job of every person
that what they have to do in the organisation and in what manner1. This report has been
prepared on the human resource practice of NatWest Bank, which is one of the top banks in
UK. NatWest Bank is known for its large number of branches and best human resource
practices. This report shows that how NatWest Banks manages the human resource in the
organisation and provides a best organisational environment to its people to perform well.
This report also shows that how different practices of HRM in Nat West Bank helps the
organisation to achieve its organisational goals and objective through better human capital
planning and practices. In the last part of the report, different HR practices have been
discussed in the work-related context.
Overview of the Company
National Westminster Bank, which is popularly known by its trading name ‘NatWest Bank’
was establishes in 1968, but since 2000, it has been part of Royal bank of Scotland. NatWest
bank is established in 1968 by the merger of Westminster Bank and Provincial Bank.
However, the company has more than 1600 branches, more than 3400 cash machines, and
more than 33, 300 employees2. NatWest Bank provides 24 hours services to its customers
through phone calls and online banking services. The bank is known for its full range of
customer services, which includes insurance, commercial customers, providing loans, and
banking to business etc. However, the bank is also known for its best human resource
management practices in Europe.
Part 1
Human resource Management
Human resource management is a strategic approach of organisations to improve the
performance of organisation or develop a good organisational performance with the help of
human capital by guiding, mentoring, and rewarding them. The main motive of any
1 S. Aktar, M.K. Sachu, and M.E. Ali, ‘The impact of rewards on employee performance in commercial banks
of Bangladesh: an empirical study’, IOSR Journal of Business and Management, vol.6 no.2, 2012, pp.9-15.
2 S. M. Al-Najjar, and Kalaf, K. H. ‘Designing a balanced scorecard to measure a bank's performance: A case
study’, International journal of business administration, vol. 3, no. 4, 2012, p. 44.

HRM in NatWest Bank 2
organisation to effectively use the human resource of the organisation thus the goals and
objectives of the organisation will be affectively and efficiently achieved. HRM also helps to
recruit talented people, provide them training to develop their skills and knowledge, and
provide effective direction and rewards in order to achieve the organisational target. Human
are the precious asset of the organisation and HRM helps to manage the human capital in
such a way that helps the organisation in attaining its goals. However, HRM is a function of
organisation that deals in recruitment, selection, training, evaluation of the performance, and
proving rewards to the employees for their performance. However, the NatWest Bank is
known for its best human resource practices as it provides best organisational environment to
its employees and workers3.
Different approaches used by NatWest bank in recruitment and selection off people
The major functions in the human resource department of the NatWest Bank are as follow:
1. Recruitment and selection
In this function of human resource management, organisation recruits and selects best people
who are talented and eligible for the jobs in the organisation. In the staffing process, the
NatWest Bank offers job description and job specification for the candidates who want to join
NatWest bank and are eligible for the job. When there will be requirement of people in the
organisation, the bank will submit a job description to its HR department and ask for
recruiting people. The job description specifies the HR department that how many people are
required on what places of the organisation. Then after, the HR department in the bank is
looking for searching people for the vacant posts in the organisation. However, the first
priority of recruitment board and H department of NatWest Bank is to recruit people from the
internal sources of the organisation. However, if any staff or person has required skills and
qualifications, the NatWest Bank selects the person for that vacant post. In other way, if the
all vacant posts cannot be fulfil by the internal sources, organisation will advertise about the
requirements in the media channels such as TV news, on its websites, on the job portals, and
through the social media groups about it requirement for the job and invites the application of
candidates for the job4. Then after, the organisation select the right profiles through screening
the resumes or CVs of people and called those candidates who are eligible for the job for
further conduct a personal interview of people. After the personal interview, the final
candidates will be selected for the job position. However, in NatWest Bank, the referrals of
employees are also considered by the human resource department for recruitment and
selection of people in the organisation.
Strength and weakness of different approaches of recruitment and selection
3 E. Rasoulinezhad, ‘Measuring the role of knowledge management processes in the commercial banks of
Iran’, Electronic Journal of Knowledge Management, vol. 9, no. 4, 2011, p.353.
4 M.Z. Alam, and M. Musukujjaman, ‘Risk management practices: A critical diagnosis of some selected
commercial banks in Bangladesh’, Journal of Business and Technology (Dhaka), vol. 6, no.1, 2011, pp.15-35.

HRM in NatWest Bank 3
Nat West bank normally focuses on recruiting people from internal sources, which provide
the organisation limited choices. The organisation can recruit only few people from the
organisation if organisation needs a large number of people for vacant posts. However, the
major benefits for recruiting people from internal sources are that organisation can select
loyal employees5. It is also a benefit that the internal employees need very less knowledge
and training for their new roles, as they are already familiar with the working process and
methodologies. However, recruiting people from external source, provide a wide range of
selection and large number of candidates for the vacant posts but it is a costly approach of the
organisation as recruiting people from external sources increases the cost of recruitment and
the organisation needs additional time and money for providing job related training to the
employees.
HRM Practices in the NatWest Bank
The primary purpose associated with HR department of NatWest Bank is Job analysis and
staffing. Apart from this, the organisation is also responsible for utilization of workforce,
analyse and evaluate the performance of each employee, provide rewards and recognition to
the employees, and provide training and development programs for developing new skills in
the people. These factions are as follow:
Job analysis and Recruitment
The HR department in the NatWest bank is responsible for recruiting people for various posts
in the organisation and determine the skills, which are required to perform the offered job
roles. Apart from this, the HR department is also responsible for future requirement of people
in the organisation, assess the necessary skills, and experience which is required in the people
to perform the job. The HR department is also responsible for provide accurate information to
the people which is required to promote people, determining wages and training need, and
helpful in manages the performance of employees in the organisation6.
Training and Development
After the selection of employees, the NatWest bank provides training for employees to
develop their learning and improve their knowledge regarding their job roles and
responsibilities. The training of the employees will be provided on two ways. The first one is
one the job training, where employees learn the basics during the job period, while off the job
training is specially conducted to provide training to the candidates about their role in the
organisation7.
5 K. Balluck, et. al., ‘The small bank failures of the early 1990s: another story of boom and bust’, Bank of
England Quarterly Bulletin, vol. 4, no. 6, 2016. p. Q1.
6 R. C. Valentina, B. F., Olivia, and M. L., Denisa, ‘Implementation of sustainable banking principles in banking
risk management’, In 17th International Economic Conference The Economic World Destiny: crisis and
globalization, vol. 14, no. 8, 2010, pp. 99-102.
7 A. Z. Home, ‘NatWest: Another Global Bank Gone’, The Big Four British Banks: Organisation, Strategy and
the Future, vol. 8, no. 10, 2016, p. 120.