HRM in HSBC: Functions, Practices, and Impact on Profit and Productivity

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
1 Purpose and functions of HRM applicable to workforce planning...........................................4
2 Strengths and weakness of approaches to recruitment and selection.......................................5
3 Benefits of different HRM practices in the organization for the employer and employee.......6
4:Analysation of different practices of HRM that effects profit or productivity of organisation.
......................................................................................................................................................7
5:Analysation of relations of employees that influence the HRM Decision making..................8
6:Elements of employee legislation and its impact on HRM decision-making...........................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Human Resource Management deals in managing the people in the organisations for
achieving the better performance by performing various functions like training, development,
recruitment, selection etc. HSBC Holdings plc is basically a multinational investment bank and
the company which holds the financial services. Its headquarters is in England, UK and it
performs its operations in various countries across the world. It has become the 6th largest bank
in the world as observed in 2020 and it also became the largest bank in Europe (HSBC UK,
2021). It deals in four different groups of business i.e., global banking and markets, commercial
banking, global private banking and retail banking and wealth management. The report will
focus on all the aspects of HRM in the HSBC.
MAIN BODY
1 Purpose and functions of HRM applicable to workforce planning.
Human resource management:
HR is the department of the company which is responsible for the hiring and filling the
position of the company with the right employees and also providing training and development
to the workforce.
Purpose of HRM:
The purpose of HSBC HR is to fulfil the staffing needs of the company as the company is
dependent on the HR for filling the vacancies. Providing compensation to the employees as it is
the way to motivate employees and increase their productivity (Zeebaree, Shukur and Hussan,
2019). They also do performance appraisal and provide various benefits to the employees like
rewards, health insurance etc. they deal with the law compliance under which safety and equality
rights of the employees come.
Functions of HRM:
Human resource planning: it means to fulfil the future needs of employees in terms of human
and it is also called workforce planning. Brexit has impacted this as earlier company gets low
income employees from EU but it is not easy to get as Brexit has restricted the free movement of
employees in UK (Ahammad, 2017).

Recruitment and selection: HR give advertisement about the vacancy then after that they get
applications from which the suitable candidate has been selected and call for face to face
interview after that the candidate is selected and given offer letter but coronavirus has impacted
this as due to social distancing it is difficult to conduct face to face interview so the HR of the
company take interview through video call. (Foiji, Hoque and Khan, 2019)
Training and development: it is role of HR to provide training to the new employees so that
they can know their role in the company and it is also helpful in reducing the confusion which
saves time and increase the productivity of the workforce. (Ahammad, 2017)
Health and safety: HR of HSBC make sure that they provide healthy working environment to
their employees and make the workplace safe by following all the instructions of WHO
regarding covid 19. As the company knows that if the working environment is good then that
will motivate the employees which will increase their productivity. Getting safety at workplace is
also the right of the employees (Zeebaree, Shukur and Hussan, 2019)
2 Strengths and weakness of approaches to recruitment and selection.
Recruitment: recruitment is the process which is taken by HR to fill the vacancy in the
organization, in this process HR give information about the vacancy and the applicant simply
apply for that and from those applications HR select employees who they call for interview.
(Vlados, 2019)
Selection: it is the process under which the HR recruits those workforce who is suitable for the
position. It is the time-consuming process and it comes after recruitment because after the
applications are scrutinized then only selection of candidate is done (Abdel-Basset, Mohamed
and Smarandache, 2018)
Internal source of recruitment:
It is the type of recruitment which is done within the company, HSBC do internal recruitment
through promotions, transfers etc. as promoting the existing employee will be helpful to the
company by filling the empty position effectively. (Mawdsley and Lewis, 2017)
Strength of internal source:
HSBC uses this a lot because it saves time and its cost effective as it eliminates the intellectual
meeting of the workforce as to fill the new position chosen within the old staff only and
company also get more skilled employees (Aust, Matthews and Muller-Camen, 2020).
Weakness: