SHRMhrm Practices in Hsbc Assignment

Running Head: SHRM Practices in HSBC
Strategic Human Resource Management
in HSBC
Report
System04104
8/24/2019

SHRM Practices in HSBC 1
Introduction
The human capital is the soul of any organisation because proper management of the human
resources determines the success of any organisation. The multinational companies (MNCs)
focus on proper human resource management and strategies related to human resource to
achieve the organisational goals and objectives (Cascio, 2015). The MNCs have many
subsidiary companies or firms and therefore managing large number of employees is a
challenge for the organisations. However, SHRM helps the employees to formulate strategies
to manage the large number of employees. The SHRM gives a competitive advantage over
other firms. This report is about the human resource management of HSBC and it has been
prepared in consideration with various strategic challenges that company is facing related to
human resource management.
Overview of HSBC
HSBC is known as the world’s local bank. The full name of HSBC bank is Hong Kong and
Shanghai Banking Corporation. HSBC is a British financial multinational company of UK.
The company was established in 1865 in British ruling country Hong Kong (HSBC, 2019). In
1991, the HSBC plc. adopted the HSBC and it is now parent company of HSBC. The
company is financial service provider and it is the seventh largest bank of the world
according to a survey in 2018 (HSBC, 2019). HSBC is the largest bank in Europe. The net
income of HSBC is more than US$15.025 billion and there are more than 235,217 employees
are working in the bank (HSBC, 2019). The operating income of the company is more than
US$19.9 billion and total assets of the company is more than US$2.558 trillion. The
Headquarter of the bank located in Hong Kong (HSBC, 2019).
SHRM in HSBC
The Strategic human resource management enables the organisation to face such type of
challenges and also prepare the organisations in advance to meet the future challenges and
environmental changes in human resource management (Masum, Azad, and Beh, 2016).
However, in easy words, it can be said that SHRM provides a linkage to human resource to
strategic goals and objectives of the organisation in order to meet the future challenges and
foster innovation. SHRM helps the organisation to focus on innovation, developing a good

SHRM Practices in HSBC 2
culture and gain competitive advantage over other competitors in the same industry (Chang,
2011).
The HSBC is a global company. Therefore, it needs to manage a global workforce while the
organisation aligning and unifying many different cultural people in its single branch
organisation. HSBC also needs to face global recruitment and HR policies and should modify
its HR strategies accordingly (HSBC, 2019). The company always focuses on the employee
performance and tries to keep its employee more satisfied. However, the increasing
competition in the banking industry and global labour market force every organisation to
fight with increasing costs of employment and tough competition in the labour market.
Strategic Issues in HSBC
HSBC is facing various strategic issues related to HRM and it is essential for the organisation
to find out suitable strategic to encounter these HRM challenges in the organisation (Sparrow,
Brewster, and Chung, 2016). The strategic issues are related to concern about the
organisational structure, matching resources to fulfil organisational future needs, quality,
culture, values, and commitment. The major Strategic issues in HSBC are as follow:
1. Strategic issues related to fair and equitable reward: The major challenge for the
company is to manage the fair and equitable reward system that removes the situation
of wage discrimination in the organisation. Fair wages and compensation
management in the organisation helps the organisation to fulfil the needs of
employees (Yeung, 2011). However, the equitable and fair wages and compensation
structure may help the organisation to improve the performance of employees and
enhance their commitment for the HSBC.
2. Strategic issues related to recruiting competent people for the organisation: The
second issues related to Strategic HRM in HSBC are to recruit competent and skilful
people for the organisation. It is really a challenge for any organisation to find
competent people for the organisation because of heavy competition in the labour
market. There are so many other companies that are providing high wages and
flexible employment conditions to the people, so it is not easy for the HSBC to recruit
and attract people towards the organisation (Fratričová and Rudy, 2015).
3. Strategic Issues related to performance management: SHRM helps the employees
to care even about the individual interest in the organisation. However, this is crucial

SHRM Practices in HSBC 3
for an organisation to manage the performance of employees to ensure the success of
whole organisation (Farndale and Paauwe, 2018). HSBC is an excellent organisation,
which has to manage large workforce. However, in such situation managing
performance of every people in the organisation is a challenge for the HR manager.
Therefore, managing performance or implementing an effective performance
management system is necessary for the HSBC.
4. Strategic Issues related to employee’s behaviour and culture at the workplace:
Employees culture and norms are the basic principles or fundamentals that ensures the
moral or ethical behaviour of employees in the organisation. It is really a difficult task
for a multinational organisation to manage a diverse workforce in the organisation
because people have different opinion norms and culture. HSBC needs to maintain an
excellent organisational culture in the organisation that further helps other people to
grow and develop in the organisation (Farndale and Paauwe, 2018).
5. Strategic issues related to employee retention and employee engagement: HSBC
needs to focus on employee retention and reducing the high employee’s turnover in
the organisation. A long-lasting relationship of organisation with the employees is the
key of success for any organisation. HSBC is facing high attrition rate in the
organisation. The organisation needs to provide all the facilities and resource to the
organisational people, so they can stay in the organisation for log-term.
SHRM Development Strategies and Practices
To become a successful organisation and utilise the full human resources, an organisation
needs to practice following SHRM development strategies that are crucial for HSBC as well
to improve its employee’s performance and better job satisfaction:
1. Hiring the Right People: Selective hiring is the most significant and important HR
practice in any organisation. It is really necessary for any organisation to recruit
competent people who are able to perform best in the organisation. No organisation
can just hire anyone rather every organisation wants to hire those people who fit for
the job. Company want to hire those exceptional people who add values in the
business. For example, Apple and Google are known for hiring best talent for their
organisation. The company recruit people on the basis of various skills such as
emotional intelligence, spiritual intelligence and based on their IQ level. This helps
the company to hire most talented and competent people for the organisation. The