Effective Management and Leadership Strategies for HSBC Bank

The assignment analyzes the management of HSBC bank, focusing on its operations management and leadership strategies. It identifies critical services to customers as key metrics and indicators for continuous improvement. The analysis suggests that management should focus on setting effective measurements for guiding employees towards improving banking processes and activities. Additionally, it recommends concentrating on most critical services to customers and implementing management by objectives (MBO) to enhance operational effectiveness.

MANAGEMENT AND
OPERATIONS

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
LO 1 & LO 3....................................................................................................................................1
1. Introduction and roles of management and leadership...........................................................1
2. Differentiate the management and leadership functions.........................................................1
3. Analysis of Management by Objective process......................................................................2
4. Management roles theory........................................................................................................3
5. Leadership traits theory and two styles of leadership.............................................................3
6. 'Hard' management skills and 'Soft' leadership skills..............................................................3
7. Transformation processes in operations management............................................................4
8. Meaning of term 'Quality' and four Cost of Quality...............................................................4
9. Role of managers in Total Quality Management approach....................................................4
10. Just-in-Time approach and waste reduction in operations....................................................4
11. Capacity Management in operations.....................................................................................5
12. Conclusion and evaluation on role of manager and leader...................................................5
LO 2 & LO 4....................................................................................................................................5
1. An introduction to organisation..............................................................................................5
2. Explanation of department and role in operations..................................................................6
3. Background of management team...........................................................................................6
4. Two strengths and weaknesses of manager/ leadership approaches.......................................6
5. Three roles and duties of management in the organisation.....................................................7
6. One real occasion where role of management by applying theories and models of
management approaches.............................................................................................................7
7. Theory of leadership styles as applied in the occasion...........................................................7
8. Type of transformation process ..............................................................................................7
9. Impacts of two adjustments for Capacity Management on organisation................................8
10. Two operational recommendation to management regarding future improvement..............8
REFERENCES................................................................................................................................9

INTRODUCTION
Operations management refers to process that is concerned with planning, organising,
managing and supervising the processes of production, manufacturing and provision of services
to customers. HSBC Holdings plc is the British financial and banking services holding company.
The bank offers different services to its customers and clients including loans, financial advice,
insurance and mortgages. The present report explains about the differences between roles and
characteristics of leader and manager. Different theories and models of leaders and manager are
explained in details. Key approaches of operations management are discussed further in the
report and importance and value of operations management for the business are discussed.
Factors that leads to impact the operations' management are also assessed in the report.
MAIN BODY
LO 1 & LO 3
1. Introduction and roles of management and leadership
Leadership
Leadership can be defined as the art for encouraging and motivating team for acting
towards the achievement of common goal or objective. The role of leader in the HSBC Bank is
required at all levels as they act as a representative of business (Ferguson and et.al., 2017).
Leader is responsible for creating vision and inspiring trust and also to coach the team in
effective manner.
Management
Management can be defined as the art and science for bringing people together for
achieving the desired objectives of business by coordinating all the available resources in
efficient and effective manner. The role of management is to effective manage the employees
and to ensure that important activities of HSBC Bank are done in effective and efficient way.
2. Differentiate the management and leadership functions
According to John Kotter leadership and management are two different terms.
Management refers to the set of process which keeps the organisation functioning.
 Managers aims at effectively planning, staffing, budgeting, performance measuring,
clarifying jobs and solving the business problems (Shin and et.al., 2015). Whereas,
leadership is different and this is about ensuring that efforts of people is aligned with that
of organisation's vision, that refers to buy-in communication, inspiration and motivation.
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 With the view of John Kotter, it can be stated that leaders deal with change in the HSBC
Bank. However, managers are responsible for dealing with complexities.
 The function of manager includes ensuring that work gets done by effectively controlling,
managing and also problem-solving. Whereas, the function of leader is to inspire and
motivate people and making people focus for getting the work done (John Kotter on
Leadership, 2019).
3. Analysis of Management by Objective process
The Management By Objectives (MBO) is and approach for performance management
and in this process a balance is sought between objectives by organisation and objectives by
employees.
The MBO Process includes five different steps such as setting the goals and objectives of
organisation (Management by objectives (Drucker), 2019). Then it aims at cascading the
objectives with employees and monitoring their performance in systematic and effective manner.
The next step focuses on performance evaluation and then rewarding and recognizing the
excellent performances.
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Illustration 1: MBO Process

4. Management roles theory
Henry Mintzberg divides the roles of managers into three different categories such as:
 Informational roles: These roles of manager involves receiving, gathering and
dissemination of information. This includes spokesperson, monitor and disseminator.
 Interpersonal roles: These roles of manager relates with their behaviour which focuses
on interpersonal contact (Vos and et.al., 2019). For example, interpersonal roles are
derived form status and authority which is associated with the post of manager and this
involves leaders, liaison and figurehead.
 Decisional roles: These roles generally revolves around making choices and this includes
being an entrepreneur, resource allocator, negotiator and disturbance handler.
5. Leadership traits theory and two styles of leadership
The theory describes that successful leaders have abilities, interests and traits which are
different from the unsuccessful or ineffective leaders (Slack and Brandon-Jones, 2018.). The
characteristics and traits of effective leaders are:
 Higher level of effort
 Desire for leading
 Integrity and honesty
 Intelligence
 Self-confidence Job-relevant knowledge
Leadership styles:
This refers to approach and manner for providing direction, implementation of plans and
ways for motivating people. The different leadership styles are autocratic, democratic, laissez-
faire, charismatic and many more. For example, autocratic leaders do not consult with and
involve employees in decision-making process. Whereas, democratic leaders makes the decisions
which is based on input of every team members.
6. 'Hard' management skills and 'Soft' leadership skills
The hard management skills refers to the teachable skills' set or abilities which are
generally easy to quantify. This describes about those people who are in control as certain and
strong in their work. Soft leadership skills refers to the subjective skills which are much difficult
to quantify and it is also known as interpersonal skills. For example, leaders and managers need
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to focus on implying both hard and soft skills for effectively managing and guiding the
employees (Shin and et.al., 2015).
7. Transformation processes in operations management
Transformation process refers to activity which takes input, transforms it and then add
value to it, and it provides output to final customers or clients. The transformation process in
service industry such as banks can simply apply the operations' management to intangible goods.
The example of transformation process in the HSBC Bank can be described as it may use time of
teller, computer can be considered as input and finally the bank branch accepts the deposit.
8. Meaning of term 'Quality' and four Cost of Quality
Quality can be defined as the degree to which an entity or object can effectively satisfy
the specified set of requirements or attributes (Reid and Sanders, 2015). Cost of Quality can be
defined as methodology which allows the business organisation for determining the degree or
extent to which the resources can be used for different activities and it helps in preventing the
poor quality and that also appraises quality of products and services of organisation. There are
four cost of quality such as prevention cost, appraisal cost, internal failure cost and external
failure cost that needs to be considered by mangers in order to effectively achieve the
organisational goals and objectives.
9. Role of managers in Total Quality Management approach
Total Quality Management (TQM) refers to the approach that focuses on gaining long-
term success through improving the products, services, processes and organisational culture as
well. HSBC Bank aims at gaining success through application of TQM and it requires effective
support and involvement of management (The Role of Managers In Total Quality Management,
2017). Managers plays the role of investigator, facilitator, trainer and role model for achieving
continuous improvement and overall objectives.
10. Just-in-Time approach and waste reduction in operations
The Just-in-time approach helps in reducing or eliminating various wasteful activities.
This is considered as the inventory management methodology in which goods, materials and
labours are scheduled for arriving exactly when it is needed in the process. HSBC Bank
understands that in order to have continuous improvement, it needs to aim at eliminating and
reducing waste in the operations. Waste can be reduced by understanding what waste is and
where it is and then training employees for making use of tools for reducing waste (Reducing
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Waste in Your Operations, 2015). The appropriate tools are then implemented in key operational
areas and results are measured on intervals.
11. Capacity Management in operations
Capacity Management can be defined as the act for ensuring that business organisation
maximizes the potential activities and production outputs under every condition and every-time.
This can be stated as ability for meeting requirement of customer with available resources i.e.
machinery, raw-material and labours, etc. at hand (Muller and Turner, 2017). The first method
describes that managers need to gather required information and look for the capacity which is
available in the operational process. The other method describes that manager can even identify
mismatches between the required capacity and create alternative plans in order to overcome
those mismatches. The last method suggest that manager can compare between the available
plans and focus on implementing the best plan into operations. Manager can make two
adjustments for the adjustment strategy of capacity management i.e. territorial use rights and
group fishing rights.
12. Conclusion and evaluation on role of manager and leader
Both the leaders and manager plays an important role for accomplishing the targeted
goals and objectives of organisation (Heizer and et.al., 2017.). After proper evaluation it can be
concluded that leader and manager are responsible for various activities and operations of
business and its success as well. They both help in shaping the organisation's process, culture and
employees' performance. In HSBC Bank, leader aims at and responsible for guiding, directing
and leading employees. Manager aims at and responsible for managing various key functions or
departments.
LO 2 & LO 4
1. An introduction to organisation
HSBC Holdings plc is a multinational company the provides banking and financial
services. Founder of this organisation is Sir Thomas Sutherland and its key people are Mark
Tucker, Jonathan Symonds and John Flint. It serves around the world offering wide range of
services such as corporate banking, retail banking, investment baking, mortgage loans, wealth
management, private banking, finance and insurance and credit cards. The HSBC Holdings
provides employment to approx 235217 people.
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2. Explanation of department and role in operations
Within the HSBC Bank, there are different departments such as electronic banking
department, credit card department, wealth management departments, commercial banking,
mortgage department and cash management department, etc. The banking operations manager
are responsible for managing the daily operations of banks (Ferguson and et.al., 2017).
3. Background of management team
There is direct and important relationship between future performance of organisation
and its management team. Thus, every business aims at selecting and maintaining effective
management team. Management team of HSBC Bank have key characteristics, such as:
 Diverse banking experience,
 Well-rounded level of experience and expertise,
 Complementary team member experience that covers all areas of banking.
4. Two strengths and weaknesses of manager/ leadership approaches
There are various approaches to management such as Classical approach, contingency
approach and behavioural approach. Classical management approach is being implemented in the
HSBC Bank and this approach aims at effectively managing the activities in classical way and
applies original and common studies (Management approaches, 2019).
Strengths:
 It ensures that employees feel motivated when they are provided with monitory benefits.
 It gives clear hierarchical structure in the business having various management levels.
 For example, particular task is divided into different parts so that it becomes easy to
manage and handle.
Weaknesses:
 This does not effectively fit with the complex environment of business.
 It does not consider employee's satisfaction and perspective that leads to bring negative
impact on the business activities (Bush, Bell and Middlewood, 2019).
 For example, In today's competitive environment, business need innovative and new idea,
in which classical approach can not bring effective outcomes.
5. Three roles and duties of management in the organisation
The management plays very important role in the working of any business. In the HSBC
Bank, roles and duties of management includes:
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 Management supervises and manages the staff of bank.
 Provides effective customer services.
 Provides assistant to and advices client regarding the banking and financial services.
 Monitors the sales target.
6. One real occasion where role of management by applying theories and models of management
approaches
HSBC Bank faced the situation of data breach of customers (HSBC bank confirms US
data breach, 2018). The customer's bank accounts got hacked and it leads to breach of data. This
was not clear that attackers hacked the data fr steals the savings of customer or for any other
purpose. But, bank said that breach of online account information happened between 4 and 14
October. The management played effective role in this situation and it took further responsibility
for protecting the data of customers in more serious manner. They also notified customers whose
accounts were experienced as having unauthorised access. Management of HSBC Bank applied
behavioural management theory for effectively handling and managing this situation.
7. Theory of leadership styles as applied in the occasion
The situation of the HSBC Bank made the managers and leaders to adopt different styles
and approaches for effectively managing the situation. Transformational leadership style was
adopted by the manager so that he can effectively encourage and motivate employees. This style
brings effective benefits in various business situations (Bush, Bell and Middlewood, 2019).
Through this approach or style, managers is able to set clear goals and standards for the business
activities.
8. Type of transformation process
Transformation process transfers the input into output and also adds value to it. For
example, providing money to customers from their bank account includes customer's
information, materials like currency and the customer. The transformation process of the HSBC
Bank in the retailing sector is for attracting clients or customers to invest their money in the bank
and it then converts the money with interest and provides it to investors.
9. Impacts of two adjustments for Capacity Management on organisation
The adjustment in capacity management of the HSBC Bank tends to make sure that it is
working for maintaining these factors appropriately (Boyabatlı, Nguyen and Wang, 2017). In
case when customers are not satisfied, it tends to impact the business growth and overall business
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environment. It explains the importance of operations management in maintaining a growth-
oriented organisational environment.
10. Two operational recommendation to management regarding future improvement
The operations' management is delivery-focused process that aims at ensuring that
business organisation turns the inputs into outputs in successful and effective manner. The
operations' management of HSBC bank is effective enough for accomplishing the desired needs
and objectives. In order to make further future improvements, management should consider some
changes, such as:
 Management of HSBC should focus on concentrating towards most critical services to
customers metrics and indicators (Bolden, 2016).
 Management should focus on setting effective and accurate measurements for guiding
and directing employees for continuous improvement in the banking process and
activities.
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REFERENCES
Books and Journal
Bolden, R., 2016. Leadership, management and organisational development. In Gower
handbook of leadership and management development (pp. 143-158). Routledge.
Boyabatlı, O., Nguyen, J. and Wang, T., 2017. Capacity management in agricultural commodity
processing and application in the palm industry. Manufacturing & Service Operations
Management. 19(4). pp.551-567.
Bush, T., Bell, L. and Middlewood, D. eds., 2019. Principles of Educational Leadership &
Management. SAGE Publications Limited.
Ferguson, N.T. and et.al., 2017. Secure management of operations on protected virtual
machines. U.S. Patent 9,578,017.
Heizer, J. and et.al., 2017. Operations management: sustainability and supply chain
management. 12/e. Pearson Education.
Muller, R. and Turner, J.R., 2017. Project-oriented leadership. Routledge.
Reid, R.D. and Sanders, N.R., 2015. Operations Management, Binder Ready Version: An
Integrated Approach. John Wiley & Sons.
Shin, Y. and et.al., 2015. Top management ethical leadership and firm performance: Mediating
role of ethical and procedural justice climate. Journal of Business Ethics. 129(1). pp.43-
57.
Slack, N. and Brandon-Jones, A., 2018. Operations and process management: principles and
practice for strategic impact. Pearson UK.
Vos, D. and et.al., 2019. Network capacity management. U.S. Patent Application 10/277,307.
Online
HSBC bank confirms US data breach. 2018. [Online]. Available through:
<https://www.bbc.com/news/technology-46117963>
John Kotter on Leadership. 2019. [Online]. Available through: <https://www.lead2xl.com/john-
kotter-on-leadership>
Management approaches. 2019. [Online]. Available through:
<https://www.thinklearnact.com/management-approaches.html>
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Management by objectives (Drucker). 2019. [Online]. Available through:
<https://www.communicationtheory.org/management-by-objectives-drucker/>
Reducing Waste in Your Operations. 2015. [Online]. Available through:
<https://www.mmsonline.com/columns/reducing-waste-in-your-operations>
The Role of Managers In Total Quality Management. 2017. [Online]. Available through:
<https://bizfluent.com/info-7743372-role-managers-total-quality-management.html>
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