Research and Analysis of HSBC International HRM

Running head: RESEARCH AND ANALYSIS OF HSBC INTERNATIONAL HRM
RESEARCH AND ANALYSIS OF HSBC INTERNATIONAL HRM
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RESEARCH AND ANALYSIS OF HSBC INTERNATIONAL HRM
Executive summary
The aim of the report was to analyze the international HRM policies of HSBC, multinational
financial company. The report provided first, an overview of the MNC and then an analysis of
the HR implications on franchising and Mergers and Acquisitions (M&A). The report found that
HR has the most crucial role to play when it comes to franchising and M&A. further, the report
also found that HSBC has struggled expanding to China owing to the country’s strict regulations.
The report also found that expatriates especially those in higher positions mostly enjoy the
benefits of reward and compensation when moving to China or India. The report concluded with
an overall summary of the analysis and recommendations for the company to improve its
rewards and compensation policy.

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RESEARCH AND ANALYSIS OF HSBC INTERNATIONAL HRM
Table of Contents
Introduction......................................................................................................................................3
Task 1:.............................................................................................................................................3
a) Analysis of HR implications....................................................................................................3
i) Franchising...........................................................................................................................3
ii) Mergers and Acquisitions...................................................................................................5
b) International developmental strategies of HSBC in China and India.....................................6
i) Developmental strategies in China:......................................................................................6
ii) Developmental strategies in India:......................................................................................8
Task 2:.............................................................................................................................................8
a) Complexities involved in reward package designing for expatriates......................................8
b) Reward and compensation practices offered by HSBC in China and India..........................10
Conclusion and recommendations.................................................................................................10
References:....................................................................................................................................12

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RESEARCH AND ANALYSIS OF HSBC INTERNATIONAL HRM
Introduction
The Hong Kong and Shanghai Banking Corporation (HSBC) was founded in the year
1865 for financing trade between Asia and the Western countries. It has been more than 150
years since its foundation and today it boasts of almost 40 million customers all across the globe
spanning 66 territories and countries (About.hsbc.com.cn, 2018). Founded by Sir Thomas
Sutherland, the company is now led by John Flint who was appointed as the Group chief
Executive in February this year. The company is headquartered in London and has close to 3,800
offices around the world.
The multinational company did not take much time in expanding its business in other
parts of the world after analyzing the flow of commerce. It expanded to Yokohama in 1866,
Kolkata in 1867, Ho Chi Minh City in 1870 and Manila in 1875 initially (About.hsbc.com.cn,
2018). Within three decades of its formation, HSBC had expanded to 16 countries with focus on
financing trade throughout the globe. The chief expansion strategy of the company was through
mergers and acquisitions, as many analysts believe. In 1992, the company had acquired UK’s
Midland Bank thus making a move out of Hong Kong. Then in 2004, the company made one of
its biggest expansions in China. It bought a stake of 1.7 billion dollars in the Bank of
Communications, China’s fifth largest bank (About.hsbc.com.cn, 2018).
Task 1:
a) Analysis of HR implications
i) Franchising