International Human Resource Management Practice

INTERNATIONAL HUMAN RESOURCE MANAGEMENT
PRACTICE
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Table of Contents
Table of Contents 2
Introduction 3
Task 1 3
Stages of organisational development 3
Mergers and Acquisitions 3
Wholly owned subsidiaries 5
International Developmental Strategies 5
Indonesia 5
Bangladesh 6
Task 2 6
Reward packages and pay systems 6
Country based compensation practises. 7
India 7
Dubai 7
Conclusion 8
References 9
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Introduction
Human resource management can be defined as an organizational function that primarily deals
with organizational issues related to employees and the management. It mainly handles issues of
compensation, management of performance , hiring, wellness and safety, motivating employees,
benefits, administration of communication along with employee training. An organization's
human resource management function primarily focuses on three main things; recruitment,
management and direction. Hongkong and Shanghai Corporation of Banking or the HSBC
holdings is a British financial holding company that has Organs based in both Hong Kong and
Shanghai (Sia, Soh, and Weill, 2016). It opened in Hong Kong in 1865 and moved its
headquarters to the UK in 2003. The bank is subjected to immense competition in Asia but has
been doing quite well for the last few years and has increase its revenue significantly. These
achievements have indicated that the company has accomplished its goals by providing a better
form of service and products to its customers than all of their competitors. Thus the bank has
shown that they have efficiently managed all its organs including human resources properly and
efficiently which has enabled them to prosper in tough market conditions and under huge
pressure from competitors.
Task 1
Stages of organisational development
Two expansion strategies and their implications on the human resources is discussed in the
following narrative.
Mergers and Acquisitions
Mergers and Acquisitions (M&A) can be defined as a term that generally refers to the
consolidating different assets and companies with the help of varied financial transactions. M&A
include various transactional methods like mergers, tender offers, Acquisitions, consolidations,
management acquisitions and purchase of assets. All these cases include the involvement of two
companies (Bolton, et al. 2014). The term M&A is also synonymous with the financial
institution’s department of mergers and acquisitions. I merger takes place when the board of
directors of two companies meet and approve a combination pf deals and seek the approval of
the shareholders. After a merger the company that has been acquired ceases to exist and becomes
an integrated part of the purchasing company (Vomberg, Homburg, and Bornemann, 2015). In
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simple acquisitions, a company acquires the majority stake of the firm that has been acquired but
the acquired firm does not change its name or legal structure.
HSBC’s model of a mergers and acquisitions has been quite clear; making the deal, parachuting
a new management and fixing problems as they come. The most notable acquisition has been the
Midland Bank of UK. The bank had expanded rapidly throughout the 19h century and by the
1900’s had branches all over the asia pacific region including Malaysia, Sri Lanka Vietnam and
Myanmar. HSBC continued its growth by acquiring various institutions across the globe nad in
november 1998 it announced the unification of the brand and the adoption of using the name
HSBC and the hexagonal symbol wherever it operated (Aldrich, et al. 2015). This aggressive
expansion was at par with its human resources management thus leading to its success in the
market.
These different mergers and acquisitions have a wide ranging effect on the human resource organ
of the bank. These M&As are mostly large scale developments that have various impacts on the
organisational structure of the company and such frequent changes on an international level need
to managed properly to ensure prosperity. These effects include increase in stakeholders both
internal and external, recruitment both internal and external and addition of objectives for the
employees (Rana and Roy, 2016). HSBC believes that the employee is the backbone of any
organization and company makes sure that they are properly educated trained and motivated to
handle such changes. Several performance enhancing workshops are organised that are mainly
oriented towards developing an employees perspective towards changes that might come with
different mergers like additional workforce and work pressure. They are evaluated on the basis
of various factors and are subjected to different developmental programmes that will help the
personal cope with added pressure.
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