Analysis of Recruitment and Selection at HSBC: HRM Report

This report provides a comprehensive overview of Human Resource Management (HRM) practices within HSBC, a multinational banking and financial services company. The report delves into the importance of HRM in achieving organizational goals, focusing on recruitment, selection, and workforce planning. It examines the purpose and functions of HRM, including employee compensation, benefits, and development, and analyzes the strengths and weaknesses of both internal and external recruitment methods. The report further highlights the benefits of HRM practices for both employers and employees, emphasizing increased flexibility, improved employee performance, and enhanced employee relations. Additionally, the report explores the significance of employee relations, relevant legislation, and its application within HSBC's HRM framework, providing a detailed analysis of various HRM activities and their impact on the organization's success.

HUMAN RESOURCE
MANAGEMENT

INTRODUCTION
Human resource management is a very important process which is necessary to be
conducted in every company. Through this, the organisation will be able to manage their
employees in an effective manner so that goals and objectives can be attained. The activities
which are involved here are conducted by the HR manager so as to develop productivity and
increase profits of the company (Alfes and et. al., 2013). These will also help in improving the
performance of employees as well. The activities which are conducted here are: recruitment,
selection, training and development of employees, improving the organisational structures and
many more. It is also noticed that the structure of whole HRM is decided by the HR managers of
the company. The company which is referred here is HSBC; it is a British multinational banking
and financial services holding company. In this report, various aspects related to recruitment and
selection will be discussed and the benefits received through the HRM practices will also be
covered. Also, importance of worker's relations, elements of employee legislation and its
application in HRM practices will be discussed.
TASK 1
P1 Purpose and function of HRM applicable to workforce planning
Human resource management is considered as a very significant approach which is used
for providing employment as well as development of people. It can also be regarded as a process
through which an organisation can maintain its effectiveness in the market and manage its
employees as well. The HR manager is required to apply various types of rules and policies
inside the organisation so that good working environment can be maintained in the company.
Through this they will also be able to introduce learning and development, employee resourcing,
their performance and reward system etc. so that employees of company also feel developed.
Therefore, it can be said that the main aim of HRM is to help company in achieving its
objectives and also helping them in creating a positive employment relationship as well
(Armstrong and Taylor, 2014).
It is very important for the managers of HSBC bank to ensure that their staff members
are working in an effective manner so that the goals and objectives of company can be achieved
in an easy manner. If employees will work effectively then they will be able to satisfy their
customers who are availing their services as well. If the organisation wants that their employee
should be with them for a long period of time, then they should try to provide them good
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working environment so that they can work in a comfortable manner. By conducting these types
of process for an extended period of time, managers will get to understand their employees in a
better manner and they will be in a position to tell which candidate is able to handle their job in
proper manner and which are not (Arrowsmith and Parker, 2013). However, managers of HSBC
can provide appropriate training in order to increase skills and knowledge of employees.
Therefore, based on this, they can analyse performance of workers on a regular basis so as to
know whether the provided training is assisting employees in learning new things or not.
Major functions of HRM applicable to workforce planning and resourcing performed by
HSBC are as follows:
 Employee's compensation and benefits – It is very necessary for employers of every
company to motivate their staff members so that they can give good results to the
company and perform in an effective manner as well. Therefore, it is very necessary for
them to take care that employees are getting fair compensation on the basis of work they
are doing in company. This will make employees satisfied and their productivity will also
get increased. This will be very beneficial for the company as through this they will be
able to achieve competitive advantage in company as well. However managers of
company can set a specific amount of compensation according to the skills and
knowledge they acquire. So, that giving compensation can be easier of superiors.
 Worker's development – Through activities which are being implemented by
management of company, employees who are working there gets developed (Baluch,
Salge and Piening, 2013). It is a very crucial function which is necessary to be applied so
as to bring growth and development in the organisation. The activities which are being
implemented are like training and development sessions, performance management,
employee engagement process etc.
 Recruitment, selection and planning of man power- These are the basic functions
which are required to be conducted by the HR manager of HSBC so that correct
employees are selected for the job. The managers are required to test the candidate based
on their skills and efficiencies and then only will be selected for the job. The whole
recruiting process is required to be conducted by them in proper manner so that the
employees who will be recruited gives good results to the company (Bloom and Van
Reenen, 2011).
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Therefore, Human resource management perform different kinds of functions which
assist firm in regulating and performing their task in a better manner. For example: they provide
training and development programmes where new and existing employees can improve their
skills and knowledge which further can be used in accomplishing their activities.
P2 Explain the strength and weaknesses of different approaches of recruitment
Both recruitment and selection are two elements or functions which is required to be
conducted by the HR manager very carefully as through this only right employee will be
recruited for the company and achieving goals and objectives will become very easy. The HR
manager of every company is having responsibility to design a proper process of recruitment so
that right candidate is being hired by them. By following this process, they will be able to
analyse the skills and capabilities of candidates in an effective manner and make corrective
judgements as well. In HSBC as well, the HR manager will apply various approaches for
recruiting and selecting effective candidates for the job. Basically, there are two processes
through which employees are being hired in an organisation. These are: -
INTERNAL SOURCE OF RECRUITMENT AND SELECTION – These are the
kind of approaches which is being used in order to recruit the candidate from inside the
organisation itself. If managers will follow these kinds of recruitment and selection approach,
then they will not have to go outside the office for searching candidates for the vacant position.
This approach is very much beneficial for the company as through this, their time, cost,
resources are saved. Management can use it further while giving training to their employees
(Boxall and Purcell, 2011). The various methods that are included in this are: - Promotion – In this method, the employee is selected on the basis of their performance in
company. The employees are basically given ranks and whoever will get highest rank
will be selected for promotion. HSBC can also make use of this approach so as to give
reward to their employees who are giving good results. However, promotion can have its
negative side as well because it can create chaos and dissatisfaction amongst other
workers who are not promoted.
 Transfer – here, if the manager will get to know that a position is vacant in the company
and they are having a suitable candidate to do that job then they can shift that employee
from one position to another. Through this the vacant position can be filled within the
company itself.
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Therefore, company while doing internal recruitment they should analyse the
performance of every individual so that deserving employee can be benefited other than workers
who are not eligible.
Strength and weakness of internal sources of recruitment and selection
Strengths Weaknesses
 Through this, the company is able to
save their time as well as money as the
recruitment is done within company
only.
 Here, there is no need to introduce any
kind of training and orientation
programmes as the employee is already
familiar with the organisation and its
rules and regulations.
 By applying this method, manager does
not look at other applications outside
the company and thus does not have
any option to choose.
 In this method, since employee is being
hired from inside the company this way
no new idea enters the company and
company will have to adjust with the
old ones itself.
EXTERNAL SOURCE OF RECRUITMENT AND SELECTION-
In these types of approaches, employees are being hired from outside the organisation
and to do this; a complete process of recruitment and selection is required to be conducted by the
management of the company (Bratton and Gold, 2012). In HSBC as well, their managers are
using this approach as this approach is highly beneficial and mostly preferred as well. However,
external source of recruitment are expensive thus, HSBC, before use of this approach they
should have proper information about the departments in order to know the seats that are vacant
as it will assist company in recruiting good candidates for the company which is highly essential
for them.
The methods that can be used to recruit the employees from outside are: - DIRECT RECRUITMENT AND SELECTION – In this method, company is able to
select candidates on the basis of their skills and capabilities. Here, a complete process is
being conducted in which applications of the candidates are being collected and the
application which matches perfectly with the requirements of the job that are being
selected (Buller and McEvoy, 2012).
 CAMPUS RECRUITMENT AND SELECTION– In this, companies who want to
recruit; goes to various colleges and universities so as to select a perfect candidate for
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their job. The students are being judged on the basis of their knowledge and
qualifications and then the candidate which impresses the HR most is being selected.
Strength and weakness of External recruitment and selection
Strengths Weaknesses
 Through this, new employees are being
hired and thus new blood is entered
inside the organisation.
 The HR manager is having lost of
options to select the best candidate for
the job.
 It is a very lengthy process and lots of
time as well as cost is involved.
 There is a need to conduct training and
orientation programmes as the new
employees needs to get introduced to
the whole organisation.
Therefore, both external and internal process of recruitment are important as it provides
company with an opportunity of working with new and existing employees. As a result,
company will have different thoughts and ideas for executing their business operations in a
better manner.
TASK 2
P3 Benefits of HRM practices for employers and employees
There are various types of HR practices which is being implemented by the HR manager
in an organisation. These activities are like recruiting, training and development, employee
engagement etc. Through these activities, management tries to bring coordination in all the other
departments of the company and make sure that the employees’ communicate with each other in
an effective manner (Caligiuri, 2014). The managers of HSBC also implement various practices
and it is one of the factor because of which they have attained such a strong position in the
market. There are various benefits for both employer and employees which can be:
Benefits for employer: The benefits which an employer gets after implementing the HRM
practices are as follows:
Increasing flexibility – The various methods that will be implemented by HR manager
in an organisation will make the working environment better and will bring a sense of flexibility
as well. With this, employees will be able to do their activities in a better manner and their skills
will be developed as well. However, HSBC is one the renowned organisation and operates its
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business across the globe but if with the implementation of effective HRM practices then they
will be able to make employees comfortable and thus they will perform in a better manner. It is
also one of the reason HSBC is ruling the marketplace.
Reduction in turnover of employees – There are various types of practices that will be
implemented by HR manager of HSBC through which they will try to satisfy the needs and
wants of the employees. This will make the employees stick to the company and retention rate
will decrease (Collins, Zhu and Warner, 2012). In HSBC, management team makes sure that the
employees are happy and satisfied so that they do not think of leaving the company. There are
various kinds of practices that are applied by the managers of HSBC because of which the staff
working there feels safe and secure. However, benefits that are provided by company are giving
satisfaction to employees but other than this, firm can conduct activities in order to maintain a
mutual understanding between employees and subordinates. As a result, it will help HSBC in
retaining its employees and minimising its turnover as well.
Benefits for employees: The various benefits that will be derived by employees through the
HRM practices are as follows:
Development in Personal and professional skills – Training and development is also
considered as a part of HR practices and if that is implemented then the skills and capabilities of
employees are developed and they are able to do their task in more effective manner. Due to
application of good HRM practices in HSBC, the employees gets various opportunities to
develop their personal as well as professional skills and makes sure that they implement them in
completing the goals and objectives of the company. However, with the help of personal and
professional skills company can improve knowledge of employees but it there can be a
possibility that after getting adequate training worker leave the job.
Increase in Motivation level - There are several kinds of activities which are
implemented by the HR manager of HSBC because of which the employee will feel developed
and motivated. They will believe that the company is thinking about them and thus they will do
their activities in a proper manner and will give good results to the company (Conesa-Zamora
and et. al., 2011). Since HSBC takes care of the needs and wants of employees in an effective
manner so this brings a feeling of motivation in the minds of employees and they get connected
with the company in more strong manner so it is a beneficial situation for the company.
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Therefore, HRM practice is beneficial for both employees and employer for upgrading
their skills and knowledge as it will increase their motivation level and increase flexibility of
performing ant kind of work.
P4 Evaluate the effectiveness of different HRM practices in terms of raising organisational
profit and productivity
It is said that if the association needs to finish their objectives and targets then they should
execute effective administration inside the organizations. For this, they are required to deal with
the routine which will be followed by workers of the entire association. It is additionally
necessary that the supervisors should take right decision for the workforce so that they don’t
confront any sort of issue inside the organization and work with their full commitment so as to
convey good results to the company.
There are different sorts of HRM practices that are being offered to the workers of HSBC
like observing and overseeing performance of employees, payments and reward framework,
learning, training and development etc. Each of these representatives who are performing
activities of the organization and fulfilling the requirements of the clients must be dealt in an
extremely effective manner (Guest, 2011). Thus organisation will be made more effective as
well. This will be very helpful for employees as their skills and capabilities will get enhanced
and productivity will also increase. If employees are facing any kind of issues, then HR manager
is required to identify them and try to solve it as well. By giving them the required training, their
abilities and skills are being developed more so that they can perform in an all the better way.
Through these practices, benefits of the organization get improved and their efficiency is also
increased. If they will be trained properly then they will be able to give good results to the
company and good suggestions as well. In this manner, the employees will be able to give good
results to the company and help them in achieving their goals and objectives in an effective
manner. Through this, company will develop their profit level in marketplace as well. However,
different HRM practice provides benefits for example: it helps employees in developing
leadership skills but this can be done if HSBC, implement these practices in a better manner so
as to increase profit and productivity.
So, if management will try to monitor and manage the work performance of employees
then they will come to know that which employee is doing well and who is not. Subsequently, it
will try to deal with the performances by giving them good facilities and making them learn new
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skills so that they can perform in a superior way. Alongside this, it is essential to ensure that the
representatives get appropriate amount of payment for their hard-working and rewards too on the
grounds that it will motivate them and they will be cheerful and fulfilled also. In this way all
these HRM activities will help in developing productivity at workplace.
Therefore, implementing different kinds of HRM practices like providing effective
training, reward and payment framework will assist HSBC in organising and performing their
task effectively.
TASK 2
P5 Analyse the importance of employee relations in respect to influencing HRM decision-
making
Employee relations have a critical impact in every organisation. It aims to characterize the
condition of emotional, physical and legally binding connection shared amongst worker and
employer (Guest, Paauwe and Wright, eds., 2012). It has accumulated a lot of attention in the
existing period because of necessities which it conveys in accomplishing reliable goals. It
considers the relationship in the non-unionized and unionized worker too. It means to keep up
profitable relations amongst representative and settling of contentions in the meantime so good
results are learned. The business has currently launched different plans and activities with the
goal that both the parties will work cooperatively towards the set up objectives and targets for a
company. The requirement for the capable and aggressive representatives has been expanded at
another level. HSBC is one of the largest banking and financial institution in the world.
Therefore, the need to have ideal employee relations is a crucial organ. However, earlier HSBC,
was facing problems in taking effective decision but now they are after improving better relation
with employees company can take more better decision as compared to old times.
The environment which is offered by this banking association is exceptionally open.
There is consolidation of communication, trustworthiness, straightforwardness etc. The
treatment which is offered to worker is reasonable, legitimate and comprehensive. The approach
of participatory and inclusive decision making which has been utilized by the organization has
been getting a lot of gestures of recognition from the concerned associations.
Therefore to manage the relationship between employees in an effective manner, HSBC is
required to do following things:-
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 They should treat their employees in a friendly manner. This will make the employees
comfortable with the staff and they will share their feeling and worries with them without
ant hesitation.
 There should not be any kind of discrimination in between the employees and all of them
should be treated equally and fairly.
 Management should take care of the needs and wants of employees and make sure that it
is fulfilled as then only the employee will be satisfied.
Therefore, with the help of HRM practice company is developing more effective
relations as it is eliminating any kind of discrimination happening in an organisation, and needs
and wants of employees are properly taken care off by subordinates.
P6 Identify the key elements of employment legislation and the impact it has on HRM
decision making
Employment laws can be determined as the laws and policies which are being enacted by
the government of a country so as to protect the interest of employees who are working in
different companies in the contract of employment (Gurkov, Zelenova and Saidov, 2012). The
main areas for which laws are being enacted are like discrimination, unfair treatment and
unethical practices within organisation. The main areas in which both employers and employees
are being controlled forms the working environment effective. Therefore, it is the duty of
manager of HSBC to identify that which policies and practices are required to be implemented in
their organisation. The various types of laws which are compulsory to be applied by every
organisation are as follows: -
Anti-discrimination law - This enactment has been incorporated by the administration to
defend the workers from corrupt practices which are done in an organization (Han, Chiang and
Chang 2010). It involves three remarkable acts which are Sex discrimination (1975), Race
relations (1976) and disability discrimination (1995). Its justification is that law treats everybody
same and there should no discrimination between employees in company. Each worker in HSBC
ought to receive same treatment, training etc. Failure to comply with the law brings about fines
and penalisation to the organization.
Equality Act 2010 – This law was a replacement of laws which were introduced in early
1990s. In this law, it is stated that every human being us equal and thus they should be given
equal rights in an organisation and should not be discriminated on the basis of their caste, colour
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or gender. The Human resource manager of HSBC is required to make sure that there is no
discrimination made in their company and all the employees are being given equal rights,
Wages and remuneration – In this law, it is decided that the minimum wages should be
paid to a person for the work they are doing in the company. Here, every little detail about the
wages and payments are being covered like salary structure, promotions, overtime etc.
Minimum wage act 1998- This act states that company should provide minimum wage
amount that to be fixed by government to their employees so that it fulfils the needs and
demands of employees in an effective and efficient manner (Hauptmann and Steger, 2013).
Diversity act: Major focus of this act remain on the differences and similarities among the
individuals working in enterprise (Wheeler, Halbesleben and Harris, 2012). Different factors
which affect the behaviour of an individual such as education, parental status and geographical
location is all taken under this. Diversity management help enterprise in better satisfy the needs
of its customers.
In relation with HSBC, although they have implemented all the laws mentioned above
but their primarily focusing on Anti-discrimination Act, as they are providing equal chance to
every person who are coming to their organisation in terms of job.
P7 Illustrate the application of HRM practices in a work-related context, using specific
examples.
Job advertisement
Job Title: HR Executive Company Name: HSBC
Type of Role: Permanent Hours: Full Time
Salary: Up to £25000 p. a Last Date: 13/03/2018
Working with HSBC
Being a part of HSBC, Employee will be able to see an overall development in themselves as
they will be gaining so many new skills and capabilities. The organization required a good HR
managers who can look after the whole organization in an effective manner and develop the
company as well.
The Role
The HR executive will be the main person who will be handling all the issues of the company.
There will be a whole team who will be working under them and who will help them in
managing the organization as well. Their main task will be to implement the HRM practices so
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