Report on Internal & External Factors Affecting HRM at HSBC Bank

This report provides an analysis of Human Resource Management (HRM) at HSBC, a British multinational investment bank. It focuses on the internal and external factors that influence HRM decision-making, particularly in light of the COVID-19 pandemic. The report examines internal factors such as corporate objectives, operational strategies, and financial strategies, as well as external factors like economic, technological, and social changes. Furthermore, it explores various human resource practices employed by HSBC, including selective hiring, employee security, performance-based compensation, and effective communication of information. The report concludes that effective HRM is crucial for maintaining productivity and achieving organizational goals, especially when navigating challenging circumstances and adapting to evolving market conditions.

Portfolio

Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
Internal and external factors that affects human resource management decision-making..........3
Human resource practices in a work-related context..................................................................4
Conclusion.......................................................................................................................................5
REFERENCES................................................................................................................................7

Introduction
Human resource management directs functional area of a business firm towards
maintaining efficiency of an organisation in respect to various tasks being produced in the
business firm. As with the fact that operational work at business organisation have to go through
various complexities also internal and external factors that impacts effective working of the
operational firm. In the present report operational working of HSBC is being taken into
consideration. The respective firm is British multinational investment bank which was founded
by Sir Thomas Sutherland and is headquartered in London, England, UK. In addition to this,
impact on performance of the firm caused due to COVID-19 pandemic is also being highlighted
with analysis of internal and external factors. Lastly, various human resource practices in work-
related context is also being presented in this report document (Sharma and Sharma, 2021).
Main Body
Internal and external factors that affects human resource management decision-making
Recently the firm have offered the job recruitment for a “customer service advisor”.
Being a HR manager at HSBC bank, various considerations regarding internal and external
factors impacting on firm's performance are to be taken. In relation to current pandemic of
COVID-19, several considerations were being taken which brought changes in the recruitment
and selection process of the financial institute. Such presence of factors in the operational
environment of the business firm makes it difficult to perform at best ability of the organisational
firm. Various internal and external factors that affects human resource management decision-
making are as follows;
Internal factors
Corporate objectives: This category of internal factor is an inclusion of taking
considerations of corporate objectives in human resource decision-making process. Such
objectives are an inclusion of a precise path on which all the operational tasks and activities of
the firm are directed. In fact HRM decision-making by taking considerations of defined
corporate objectives can derive better productivity and ultimately better market presence in
various regions of operations (Armstrong and Taylor, 2020).
Operational strategies: With the introduction of any new strategy adopted in an
institutional firm it impacts over HRM decision-making process. In relation to the given business

firm being HR manager several instances relation to any new equipment or machinery
introduced by financial institute should be taken into consideration. Therefore, its the duty of
HRM to provide effective training and development programs to attain efficiency in working of
the business firm (Gaurav and Sheikh, 2020).
Financial strategies: It is an inclusion of internal decision being passed in the business
firm relating to financial affairs of the corporate firm. Such decisions can widely impact over
working of a HRM department in the business firm. In context to given financial institute HRM
department is highly reactive towards any of such financial decisions which are aimed at
reducing the cost of operations of the business firm.
External factors
Economic changes: With various changes brought up by external environment of the
business firm certain changes in HRM decision-making process is to be influence. In regards to
the given context, as due to impact of current pandemic i.e. COVID-19, managers at HSBC bank
is facing issues in recruitment procedures. This could be supported with the reason of
unemployment in the region due to fear of being infected due to coronavirus caused in people
residing in the region.
Technological changes: This segment in external factors is an inclusion of introduction of
new or modified technologies which is undertaken in several operational firm to produce related
operational tasks. In relation to chosen financial institution, being in HRM department various
researches of the market are conductive to make firm highly reactive to such new technologies or
innovations being introduced in the market. Therefore, ration decisions are being passed for the
given element with an aim of gaining better competitive advantage.
Social changes: Various social changes which includes fluctuations in behaviours and
cycle of society. HRM decision-making are takes such factors into consideration on a priority
basis which aids towards optimising the productivity of the said institutional firm (Norman,
2020).
Human resource practices in a work-related context
HRM department is considerably involved in maintaining efficiency of work place
relationships in many organisations. Such department's operational work is dedicated towards
ensuring work being produced in the operational firm is as per the decided standard. In relation
to chosen financial institute, HRM department is responsible for maintaining positive attitude of

respective employees working in the financial institute. Seeking attention to the current scenario
of COVID-19, various decisions were being taken with regards to the given situation. This
enabled operational working of the institution in accordance to the given market conditions and
also enabled firm to conduct effective recruitment activities in the firm. Various human resource
practices used by the chosen firm to conduct its recruitment activities at the most efficiency are
as follows;
Selective hiring: Being in HRM department of the business firm responsibilities relating
to recruitment and section process of the organisational firm is overseen. In the given process
HRM department includes various filtering stages through which core skills and abilities of an
individual applicant can be evaluated on the basis of requirements needed in the company.
Security to employees: This segment of HRM practice plays a vital role in maintain better
work-place relationships. It is an inclusion of enabling an individual employee to express its
view points independently.
Performance based compensation: In HSBC bank being in HRM department managers of
the firm takes care of employees and ensures performance based compensation to hard working
and dedicated employee. Through this given institutional firm is able to work as per desired
standards and by avoiding unproductive practices such as of politics firm is able to complete its
desired goals and objectives.
Communicating information: Another important function of HRM is to communicate all
the relevant operational affairs of the business firm to upper authorities. In regards to chosen
financial institute all the updates regarding operational tasks being produced in the business firm
is communicated to top level management. This ensures better transparency and accountability
of work being produced in the business firm (Huen and et. al., 2021).
Conclusion
From the analysis of above information presented in the report portfolio it can be
concluded that, HRM function in a business firm regulates and ensures productive work being
produced in respective firm. Managers at the given firm takes considerations of internal and
external factors while decision-making making process of the financial firm. In addition to this
by performing several human resource practices in the work-related context firm is able to dive
out maximum of returns from the investment of optimal or reasonable amount of resources.

REFERENCES
Books and Journals
Huen, P.W., Chen, J.J. and Liu, M.H., 2021.
Seng Heng Bank: History and Acquisition by
Industrial and Commercial Bank. Springer Nature.
Norman, E., 2020.
Gender Diversity and Job Performance in the Banking Industry (Doctoral
dissertation, Northcentral University).
Gaurav, S. and Sheikh, R.A., 2020. The road not taken: who works as a doctor or
engineer?.
Journal of Education and Work,
33(3), pp.254-270.
Sharma, S. and Sharma, A.K., 2021. Relationship Between High Performance Work-Based
Practices, Employee Satisfaction, Productivity and Retention in IT Companies: A
Correlational Study.
IUP Journal of Management Research,
20(2), pp.37-52.
Armstrong, M. and Taylor, S., 2020. Armstrong's handbook of human resource management
practice.