Importance of Workforce Planning and HRM Practices in HSBC Bank

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
Section 1...........................................................................................................................................3
About the company.................................................................................................................3
Importance of workforce planning and role of strategic HRM..............................................3
Strengths and weaknesses of different approaches to recruitment and selection. .................3
Section 2...........................................................................................................................................3
Benefits and limitations of HRM practices for organisation and the employee.....................3
Evaluation of HRM to organisational efficiency, effectiveness and profitability..................3
Section 3...........................................................................................................................................3
Importance of employee relations..........................................................................................3
Key elements of employment legislation and the impact it has on HRM decision-making. .3
Application of HRM practices................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCE...................................................................................................................................3

INTRODUCTION
HRM in an organisation in important where it deals with employing people, training
them, retaining them by developing policies and many more. It handle all the aspects of
employees. HSBC is taken as base company. HSBC is a bank which is working across globe
providing financial services to the people. This company was established by Thomas Sutherland
and its headquarter is in UK. In this report, it covers the importance of workforce planning, and
different approaches of recruitment and selection with its strengths and weaknesses. It also
include the benefits and limitation of HRM practices with respect to employee and employers
and importance of HRM in efficiency, effectiveness and profitability. And at last, the importance
of employee relation, employment legislation and application of HRM practices are explained.
In context to HSBC, the importance of workforce planning is mentioned below-
Section 1
About the company
HSBC is a multinational company which specialises in providing financial and banking
services such as retail and corporate banking, capital markets, securities and many more. The
founder is Thomas Sutherland and this company was established in 1865 in London, UK and
incorporated in 1866. It has more than 3700 offices across the globe having more than 2,20,000
employees.
Mission statement: The mission statement of HSBC is to provide all the services which
the customers wants and also enable their business to thrive and economies to prosper.
Core objectives: Bank has an essential role in economy of the nation as they provide
services to the people. They also have a role of financing business for people who are interested
in investment. In addition to this, the loans and investment given to the people helps in growth of
the economy.
Importance of workforce planning and role of strategic HRM
Workforce planning refers to the process of getting the right person in right job at the
right moment so that the organisation cannot have over staffing or understaffing. It is used for
planning the future workforces for achieving the objectives of the organisation (Aznar-Sánchez
and et. al., 2018). Also it involves many areas such as making succession plans, recruitment and

retention, safe staffing and so on. In context to the selected organisation, it helps in running of
organisation smoothly and the importance of workforce planning is mentioned below-
Forecasting: In context to HSBC, it helps in creating and developing strategies for
company for improving the business. This enables in encouraging the company to look forward
that can lead to increasing in the productivity as well as developing an effective plan
(Baumgartner and Rauter, 2017).
Improving KPIs: In context to the selected organisation, workforce planning helps in
keeping the records of KPIs that leads to improvement. It also enables the organisation to move
forward and also make sure about the metrics and data of the company that leads in determining
the steps for achieving the next coming goals.
There are various roles of strategic HRM which are mentioned below-
Staffing: It includes the developing of strategic plans which identify the number of
people to hire. In context to HSBC, it also includes the hiring and selecting the right candidate
for the organisation.
Training and development: The new as well as existing candidates go through training
and development programs to polish their skills as well as the work culture of the organisation.
The HR also make sure about the succession plan which involves tackling and making
employees to handle all the managerial roles when the manager leaves.
Strengths and weaknesses of different approaches to recruitment and selection
Recruitment refers to all the activities that takes place for attracting, interviewing the
candidate to apply for the position (Bush, Bell and Middlewood, 2019). The HR manager
follows the step of hiring process from identification to staffing.
Approaches to recruitment:
Internal approach: It includes internal recruitment which involves searching the employer within
organisation in order to give promotion for new role.
Strength:In context to HSBC, it helps in keeping the best employer in the organisation as
well as takes less time and money for hiring purpose.
Weakness: Internal recruitment can lead to gap in the workforce which can create on the
operations of HSBC.
External approach: External recruitment involves hiring the person from outside the
organisation