Restructuring the Human Resource Department of HSBC Bank: A Case Study Report

Unit 3: Human Resource Management 1
Unit 3: Human Resource Management
A Case Study Report on Restructuring the Human Resource Department of the HSBC Bank
Name
Instructor
Course
Date

Unit 3: Human Resource Management 2
Contents
Introduction......................................................................................................................................3
Overview of the Organization.........................................................................................................3
Purpose, Key Roles, and Responsibilities of the HR Function.......................................................5
Assessment of the Approach to Workforce Planning, Recruitment, and Selection........................7
Recruitment and Selection...........................................................................................................7
Training and Development..........................................................................................................8
Organisational Culture.................................................................................................................8
Approach to Effectiveness of Employee Relations.........................................................................9
Analysis of Internal and External Factors that Affect HRM Decision Making............................10
Application of HRM practices in a Work Related Context...........................................................13
Conclusion.....................................................................................................................................14

Unit 3: Human Resource Management 3
A Case Study Report on Restructuring the Human Resource Department of the HSBC Bank
Introduction
The human resource department plays a significant role in enhancing organizational
performance. However, in order for it to be effective in this role, it has to be strategically aligned
to the mission and vision of the company both in the short term as well as in the long term.
Furthermore, due to internal and external pressures that influence the decision making processes
in the department, it is crucial that the organization keeps restructuring and improving the
department from time to time in order to stay competitive. For example, British firms have had to
restructure their human resource departments in the wake of Brexit in order to realign their
human resource management approach to the new business environment based on the ensuing
relationship between the United Kingdom and the European Union. One such organization is the
Hong Kong and Shanghai Banking Corporation (HSBC) bank. This report analyses the
restructuring process of the bank’s HR department as well as analysing the various internal and
external forces that influence the decision making processes in the department.
Overview of the Organization
The Hong Kong and Shanghai Banking Corporation (HSBC) bank is one of the most
prominent financial institutions in the world today. HSBC is a British multinational corporation,
currently ranked as the seventh largest bank in the world in terms of its total assets. It is also the
largest bank in Europe. The bank was formally established in London in 1991 in its current form,
but it was first incorporated in 1886. It has its origins in Hong Kong and Shanghai, where it
derives its name (Torrington, 2008). Today the bank operates in more than 60 countries with
more than 3000 offices and serving more than 38 million customers across Europe, Asia,
America, Oceania, and Africa. The HSBC is organized around four business divisions or groups

Unit 3: Human Resource Management 4
namely; global banking and markets, commercial banking, global private banking, and retail
banking and wealth management.
As one of the largest companies in the world, the HSBC’s success has been propelled by
the company’s commitment to leadership and governance values. The bank is currently headed
by Mark E Tucker, who serves as the board chairman and Stuart Gulliver, who is the current
Chief Executive Officer for the group. Other prominent leaders in the organization include Iain
Mackay (the Group Finance Director), and Irene Lee (Independent non-executive Director).
These leaders have a wealth of experience working in the industry in different fields before
rising to senior leadership and management in the organization. The company demonstrates its
commitment to effective leadership by appointing experienced and highly qualified persons to
fill in different capacities in its workforce (Torrington, 2008). Senior leaders in the company
have demonstrated on different occasions that they are capable of driving the company’s agenda
by ensuring it serves its customers and meets its obligations and responsibilities to other
stakeholders.
The bank has a highly diversified workforce since its human resource management
approach focuses on recruiting and selecting individuals form diverse backgrounds to reflect the
broader geographical market in which the organization operates (Torrington, 2008). The
company takes advantage of the flexible employment laws across Europe to boost the capacity
and quality of its workforce, a fact that has been a reflection of the banks success over the years.
HSBC Bank has offices and branches across Europe as well as in other continents around the
world. Therefore, the human resource department tries as much as it can to ensure the diversity
of the market is reflected in the company’s workforce.