SHRM Analysis: Developing a High-Performance Organization at HSBC

This report provides an analysis of Strategic Human Resource Management (SHRM) within the context of HSBC, focusing on creating a high-performance organization. It identifies strategic issues requiring attention from the Board of Directors, critically reflects on various SHRM development strategies and practices across different business sectors, and proposes a training strategy tailored for HSBC. The report explores SHRM models (universalistic, contingency, and configurational) and soft/hard approaches, addressing challenges like talent scarcity, compensation issues, skills gaps, and the need for an attractive company culture. It details the role of managers in strategic HRM, emphasizing appropriate selection, training, and development. The report concludes with a strategic HR implementation plan designed to foster a high-performance and competitive environment within HSBC.

Strategic Human resource management

Strategic Human Resource Management 1
Contents
Introduction...........................................................................................................................................2
Identification of the strategic issues which are required to be addressed by the Board of Directors
(BOD)....................................................................................................................................................2
Critical reflection on different SHRM development strategies and practices from several business
sectors and proposal of training strategy in order to create a high-performance organization...............6
A strategic HR implementation plan to create a high performance and competitive organization.......10
Conclusion...........................................................................................................................................14
References...........................................................................................................................................15

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Introduction
Nowadays, Human Resource Management (HRM) has become more significant to strategic
management due to its role in offering human competitive gain and rush to competitiveness.
Strategic human resource management (SHRM) has attained more popularity. SHRM is a
practical approach to recognizing better assistance for the personnel to hasten the
performance offered in accordance with human resource management (HRM). As an HR
Consultant. I have expressed views on the opportunity of restricting HRM practices to
contend efficiently in the international marketplace. I have the accountability of recruitment
to the retirement procedure of the employees with functions like managerial and operational.
The managerial function comprises planning, organizing, staffing, coordinating, budgeting,
controlling and executing. On the other side, operational function comprises planning,
recruitment, selection and induction, performance appraisal, training, promotions,
compensations, recreation to the employees, welfare to the employees, and retirement.
This report defines the strategic human resource management (SHRM) of HSBC. HSBC
operates internationally with the thousands of staff base. The recruitment and selection
procedure of HSBC plays a substantial role in appealing talent to the bank. The training and
development improve employee job performance along with the career growth, performance
management, and reward strategy. The strategic issues have been identified in the report
which is required to be addressed by the Board of Directors (BOD). The perilous reflection
has been made on several SHRM development strategies and practices from several business
sectors and training policies have been proposed to form a high-performance organization for
HSBC. Finally, the report includes a strategic HR execution plan to generate high
performance and competitive organization.
Identification of the strategic issues which are required to be addressed by the Board of
Directors (BOD)
The role has proposed to recognize the strategic issues which are obligatory to be addressed
by the BOD. The significance of HRM is to offer more effective staff which can increase
product market competition, offer prospects to share the organizational vision, prospects for
the line manager for the approval of responsibility to make such a decision. The SHRM
policies are required to attain high performance in the united competitive environment an
immediate business condition (Taylor, Doherty and McGraw, 2015). The major approaches
of SHRM are linking HR guidelines and practices with the strategic management, the

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significance of globalization of HRM on behalf of line managers and personnel in the
organization to foster commitment.
Models of SHRM
The models of SHRM can be categorized into three forms universalistic, contingency and
configurationally. The behavioral perspective to be used in SHRM is one of the prevalent and
original theoretical models. This theory concentrates on the intermediary consequence on the
association between strategy and organizational performance. The universalistic approach
defines the finest practices in link to the extensive range of HR matters like employee
enrolment and selection, training and development, motivation is correspondingly pertinent to
each organization irrespective of the nature of exclusive facets the organization must-have.
This model is all about focusing on a sub-functional fact of view and assessing the way
specific HR policies are associated with organizational performance (Senén, Gomis and
Medwid, 2018). The universal approach is characterized by an absence of solid hypothetical
foundations. It focuses on the experiential testing of HRM performance relationships leading
to a great level of statistical importance. On the other side, the contingency approach
distresses with the occurrence of general remedies to HR issues. This theory focuses on the
requirement for incorporation between HR rules and an extensive range of other
organizational strategies. This theory does not differ from universalistic in terms of analysis.
The contingency relationships can be divided into three generic categories such as strategic
variables, organizational variables, and an extensive set of environmental factors (Voegtlin
and Greenwood, 2016). The contingency approach even fosters two theoretical frameworks
such as behavioral theory and resources and capabilities views of the organization. The
configuration approach of SHRM focuses on the requirement for practices that are reliant
with organizational situations but also focuses on the necessity for horizontal or internal fit.
This approach identifies the validity of the best practices by accepting the significance of
adjustment of the HR policies with the entire organizational strategy. The configuration
approach contributes to the description of SHRM with the convenient perception concerning
internal facets of the function. Other than this, SHRM can be categorized into 4 classes,
strategy-focused, content-focused, decision-focused and implementation-focused (Sanchez-
Apellaniz and Triguero-Sánchez, 2017).
The theories of SHRM can be divided into the soft and hard model. The hard model focuses
on meeting the needs of personnel. The soft model is deliberated as more employee-focused

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and offers room for the personnel to advance within the association. HSBC bank executes
both hard and soft theories of HRM and differs as per the situation. The hard model is also
stated as the matching model and best-fit approach. It is a theory of pulling out the extreme
abilities from the personnel for the assistance of the organization. As per the hard theory,
personnel are deliberated to be a means of the organization in order to attain goals (Ridder
and Baluch, 2017). When it comes to HSBC bank, it does not utilize hard theory often but the
cashing sections are the purposes as routine. On the other side, a soft model offers leading
contemplation to the personnel and try to advance the assistances of the personnel for the
advancement of the organization. The soft model is considered to be quite pertinent in the
industries which necessitate advanced and inventive practices. HSBC adopts generally soft
theory as it deliberates for the staffs and maintains the privileges to make employees grow
within the organization. It also helps the bank in growing the productivity of the organization
(Papa, et al. 2018).
The SHRM trends and issues faced by HSBC in the global environment
Scarcity of talent: Globe’s banks, financial services, and greater asset management
organizations are instantaneously looking for a similar set of skills, rivalry for the best and
most experienced compliance specialists has become powerful. But it has made the world
worse since the sudden advancement of the prominence in the role called for new skillsets. It
comprises the capability to interpret and execute progressively intricate regulation (Pandey,
2019). It also includes the capability to think in the form of less tangible facets of compliance
such as conduct, culture, values, and behavior. The board members of HSBC are frantic for
compliance officers who are able to communicate highly technical material at a level where
leadership can understand and take action.
Compensation crunch: The compensation crunch is one of the substantial SHRM issues. In
accordance with the basic economics, scarcity drives the market prices and the senior
amenabilities candidates are imposing substantial premiums to transfer. The rise over the past
decade in the case of HSBC has been predominantly observable. The skills required by the
bank in some cases are highly movable. In such a scenario, candidates can get entertaining
offers from organizations belonging to different sizes. From the perspective of HR, it makes
functioning within the realms of salary bandings for several corporate grades tremendously
critical (Paauwe and Boon, 2018). In such a scenario, it is possible that the non-salary factors
like flexible working start having significant appeal.

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The skills gap: The skill gap in the banking business is unceasingly broadening. 70% of the
financial institutions face the threat of the obtainability of the assistances in the growth. The
banking industry is driven by competences of digital technology and the advent of innovative
roles in finance like artificial intelligence (AI), data scientist and software engineers. When it
comes to HSBC, the bank does not have enough creators or data scientists who are
experienced in finance. It has become difficult for the bank to find the positions of the IT
experts. It has been believed that the mending of the reputation of the financial sector can
assist in decreasing the skills gap along with bringing more qualified staff (Orr, 2019).
Scarcity of mid-career candidates: The lack of fresh-faced millennial grads is not the only
problem but the scarcity of mid-career candidates is also a significant problem for HSBC.
The financial crisis of 2008 and low financial years have instigated severed persons to leave
the banking industry. It led to less mid and upper-level professionals in HSBC. Although
such applicants are in demand as the economy has improved since then and has boosted the
confidence and growth of the industry. HSBC can appeal to brilliant specialists who have
attained understanding in the accounts receivable, payroll and accounts payable in other
sectors if direct appropriately (Brewster, et al. 2016).
Creating an attractive company culture: The millennials like to take a pay cut to work at a
corporation whose ethics are in tune with own. By assessment, just 9% of baby boomers do
the same. Adverse company culture is one of the strategic issues faced by the company. The
professionals do not work at a foremost company if they have to endure a bad workplace
culture. It is significant for persons to fetch their full selves to work. It has been believed that
there is an increased anticipation that the organization worked have shared values. It has been
considered that 51% of the professionals are pleased to exert at the organizations which
endorse work-life balance and suppleness (Ogunyomi and Bruning, 2016). It is one of the
major reasons that employees stay at the organization for the coming years is assistances like
having entree to paid time off, parental leave, maternal leave, and health insurance.
More choices and supremacy to the candidates: The top tech talent and competent financial
professionals have become progressively tough to discover. In such a scenario, job seekers
have plenty of opportunities in the market. Although financial services jobs generally provide
market-leading pay it is not sufficient to appeal and retain scarce talent which is accessible.
HSBC faces issues in offering higher salary packages and benefits in order to get and retain
the best applicants. In order to remain modest, initiating salaries and bonus prospects are

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required to be tremendously appealing. Other than the monetary assistances, value requires to
be added to the job proposal by forming and stressing a great company culture (Noe, et al.
2017).
Critical reflection on different SHRM development strategies and practices from several
business sectors and proposal of training strategy in order to create a high-performance
organization
The role of managers in developing strategic HRM system in the organization
The main functions of managers concerning strategic HRM in HSBC bank are:
Appropriate selection: The selection is the procedure of gathering and assessing information
to range an proposal of employment. The selection process is carried out by the manager in
HSBC under the legal and ecological restraints. In a modest business atmosphere, managers
look frontward to enhancing the performance of their workers. Growing performance
inevitably increases the competitive gain of the organization. The appropriate selection is
quite important to the bank due to the significant element in the form of customers
(Marchington, 2015). If the selection of the workers is decent `and the workers are
appropriate for the position then it helps the bank in coming up with the good ideas and plans
to appeal to more clienteles. In order to advance the performance of the workforces, HSBC
UK has come up with the new methods such as employee involvement program, customer
service and advanced methods such as designing specific jobs which can improve the
relationship between manager and employees.
Training and developmental: The training and development is the most important purpose to
be carried out by the manager in the strategic HRM system. The management plan and design
training along with implementing and lastly assessing it. The training and development are
deliberated as the strategical activity to recover the present and future security of HSBC (Li
and Huang, 2017). The manager believes in offering training to promote the organization to a
higher level. At the time of cross-checking with the training and development program of
HSBC, they demeanor consistent development programs for the personnel to expose the
current economic status along with enhancing the skills of the employees to encounter the
challenges. HSBC focuses on some special criteria in order to focus on communication,
performance enhancement, customer service, and computer advancement skills (Brewster,
Mayrhofer and Farndale, 2018).

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Motivation and appraisal: The employees are deliberated to be the backbone of HSBC,
therefore, it ensures its commitment to them. Motivation and appraisal lessen the breach
between employees and management. The reward programs have a great role in increasing
the confidence of the personnel along with making a commitment to the organization. This
way managers can produce more efficient and creative outcomes by encouraging employees
by providing financial enhancement, inducements to attain goals, and removing barriers by
offering employees loyalty (Labucay, 2015). HSBC rewards to the employees with the
reward points, incentives to empower employees to attain advanced goals.
Key models and tools for planning, recruiting and selection procedure
The key models and tools used for planning comprise information concerning human
resources planning. The HR planning includes information for forming a strategic plan,
having an appropriate number of employees for the specific needs comprising information on
the labor market and the way these operate within the bank. The factors such as employment
trends, type of skill shortages, competition between the employees and accessibility of labor
are considered the basis for the planning. In the concern of planning, HSBC uses additional
resources.
HSBC always finance more in recruitment and training programs. When the bank can recruit
workers for an extended time and sustain current employees then the organization can reduce
its expenses. The experience is always indicated in the performance of the organization. The
bank recruits new workers for the extended term so that personnel can get expert and
practiced within the HSBC. This way bank can also deliver improved performance to attain
the goals. The HRM team of the bank monitors the grade of the personnel and offer
appropriate guidance to the employees fronting any problem than enabling personnel to leave
the job. The HRM department of HSBC ensures that newly recruited employees look for a
stable position in the organization (Johnson and Szamosi, 2018).
The tools for the selection process include the tools like aptitude test round, procedural
interview round and HR interview round. The selection is made from the bank through
internal sources, employee referrals and other externals sources such as recruitment agencies,
external job postings, campus recruitment, and advertisements. The selection through the
internal sources fulfills the requirement internally by relocation and reassignment. The
existing employees also refer to the candidates. This way bank attains the suitable candidates
for the open positions (Brewster, 2017).

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Effective performance management
The performance management of HSBC is regarded as a practical system of management of
employee performance in order to empower persons and the association towards the
anticipated performance. The effective performance management is all about conspicuous a
synergic orientation among employees and administrative purposes for the attainment of
superiority in the performance. The performance management initiates with linking of the
new employees in the bank and ends when employees leave the association. Performance
management includes both performance appraisal and performance development. The
performance appraisal is one of the leading techniques used for guarantying the value of
employee performance. The attainment of the performance appraisal relies on the way how
successfully and competently it is executed. It relies on comprehending employees
concerning the performance appraisal system and how certainly personnel are concerned with
their system (Jamali, El Dirani and Harwood, 2015). Effective performance management is
created by HDFC by implementing and managing leadership, interpersonal relationships,
constructive feedback, and teamwork. HSBC has implemented strategies for effective
performance management. The appraisal strategies to advance and hold talent within the
HSBC are:
Describe and link company goals and performance objectives: The employees in HSBC meet
the performance prospects by clearly outlining. The goals are defined by the HSBC through
using a goal-tracking software, making a chart within the office, sending out emails, holding
meetings, allocating a flyer in the office and doing things in turn. When HSBC outlines the
goals and purposes, the messages are also repeated to sink in. the organization also holds
meetings to check in and evaluate the progress (Brewster and Hegewisch, 2017).
Use of performance management software: HSBC is already using performance management
software. In order to save time and high employee engagement, the bank upgrades on a
regular basis. The performance management software reorganizes the performance
management strategies and makes imperative to use one or start look to upgrade. The
performance management system used by HDFC provides traditional reviews and 360s
which is an employee-friendly and dashboard interface enabling fast and actionable reporting
(Jacobson and Sowa, 2015). It also fosters employee advancement. The software also assists

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employees to stay on the top of the things which makes banks run effortlessly and efficiently
at all times.
Offering regular performance feedback: The communication is an vital step but alone
communication is not adequate for HSBC. The managers at the bank are required to check in
with the teams, whereas workers gauge progress by offering feedback. The decent
performance feedback strengthens the strong skill-sets and optimistic behaviors with
representing prospect zones with a vibrant track for the enhancement. Such feedback works
with the annual review cycle enabled by HR. The feedback is given in real-time by
integrating the culture of the company. The feedback provided on the regular basis sustains
employees and their work shapes organizations effectively (Hollenbeck and Jamieson, 2015).
Free tools are also used by HSBC such as survey monkeys, Google forms and basic e-mail
requests.
Use peer reviews: Another effective method to adoptive operative performance management
is to use peer reviews also identified as 360-degree reviews. Such a feature can be discovered
in most of the performance management software programs. The peer reviews are significant
in the case of HSBC and enable employees to praise other employees. It indicates optimistic
aspects of their performance along with making improvements. The peer reviews assist
employees in working together, enabling better communication and evaluating where they
can enhance themselves while observing other employees. There is no need for HR to
oversee the peer review process but all the peer reviews should be undertaken to make sure
that there are no entitlements, praise, apprehensions, and comments go unnoticed (Berman, et
al. 2019).
Pre-emptive management and recognition: One of the effective ways to pledge consequences
in the HSBC is to execute rewards and exercise pre-emptive management. It indicates that
personnel always know what is expected out of them, therefore there is no requirement for
consequences in the organization. The pre-emptive management starts with making an
equitable singing field where anticipations are set and goals are recognized. The incentives
are one of the efficient methods to be used by the organization to represent that employees
are being cared for to keep the good work. There is also HR toolbox in HSBC which assists
managers to catch slipping personnel early on along with offering feedback to clasp an issue
even before it starts. In such a way, pre-emptive management is about cooperating with the

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personnel and letting them know what is anticipated and the way to meet the goals (Gupta,
2016).
Setting regular meetings to discuss results: The progress meetings are also known as progress
reports. The HR of HSBC conduct conference with the team on a consistent base in order to
fix the goals and purposes which are significant for meeting goals. The meetings are held by
the bank weekly, monthly, quarterly or half-yearly as found suitable. It helps in making
progress feedback more precise and enables them to make strategies to move forward
(Bawole, et al. 2016).
A strategic HR implementation plan to create a high performance and competitive
organization
Evaluation and analysis of the execution of Strategic HR plans
In order to attain success and competitive advantage, HSBC makes use of several strategies.
One of the popular strategies of HSBC is ‘managing for growth’. It has assisted the
association in developing more and strengthening then before. HSBC has set major objectives
in order to lead in the banking and financial services along with maintaining the top position
in the market.
The strategic HRM to be used by HSBC offers comprehensive and intense values for the
personnel. Empowered and productive employees assist the organization in attaining its
goals. HSBC has executed relationship management between customers and managers to
make a relationship to make relations with the customers everywhere around the globe. The
major aim of CRM (customer relationship management) is to make sure that the bank is
every time linked to the demands and requirements of the customers. The usage of internet
and IT has assisted HSBC in reaching to the customers all over the globe and has also
delivered satisfactory and qualified services (Vomberg, Homburg, and Bornemann, 2015).
The SHRM has been used by HSBC to ensure that the organization attains profit at both the
local and global levels. The bank is attentive to possessing a good name in the concerning
industry. It helps in becoming more pleasing by the customers. Executing accountability at
the corporate level assists in identifying the responsibility to the customers. HSBC ensures
that the principles of conduct are always aspiring to the personnel. The business strategy of
HSBC emphases on customer groups like private banking, commercial banking services,
personal financial services, corporate services, markets, and investment banking (Goyal, et al.
2018).

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HSBC also makes use of another approach for each customer group to make sure concerning
the demands of the customers. The bank is having a perception of effective management.
Both external and internal reports of the customers result in satisfying the customers. Another
strategy to be utilized by HDFC is identified as ‘branding’. It is deliberated as one of the
significant strategies to be used by the bank. It has helped the bank in reaching to the
customers all over the globe along with a leading position in the marketplace (Bailey, et al.
2018).
Different SHRM developments and practices in several business sectors
Recruitment and selection: This procedure is about recognizing the best suitable employees
for the specific position among the great number of candidates. HSBC is contained of
detailed and suitable recruitment and selection policies. The bank selects the most appropriate
candidates who match the organizational requirement. HSBC also uses the ethnocentric
approach into recruitment policies. HSBC faced problems in getting skilled workers which
creates difficulty in making expansion in the emerging nations where the education level is
comparatively lower. The recruitment and selection procedure in HSBC are introduced with
filling online CV in the electronic form (Wadhwa and Tripathi, 2018). The CV is referred by
the HR team of the bank in order to determine whether it’s appropriate or not for the specific
position. The applications are checked as per the prerequisite skills and qualifications
necessitated for the job. Afterward, the candidates are necessitated to visage with the
capability test which is recognized as ‘aptitude test’. In such a circumstance, candidates are
required to deliberate cultural barricades and insights of people. Like insights of Asian
individuals can be entirely varied from the European person. Specific candidates are opposed
for face to face interview and owing characters are designated. If the bank faces a problem in
finding suitable candidates then it imports skilled people from foreign nations. It incurs large
costs to the bank (Aryee et al. 2016).
The bank makes use of Global talent management procedures for appealing, retaining and
empowering people. The ethnocentric approach is mostly cast-off by the bank but not in
every case. So, the need for the proper program becomes unavoidable. The initial step to be
identified by the bank in the global talent management procedure is to recognize senior
management tools. In such concern, HSBC usages 360 Degree feedback, panel evaluation,
interviews and executive evaluations for the sake of gathering data suitable for the
management positions. Add on the bank focuses on veracity, diversity, and collegiality as