HSBC Case Study: People Management, Diversity, and HRM Practices

This case study examines HSBC's people management practices, focusing on its approach to managing employees, fostering diversity, and implementing various HRM strategies. The analysis covers the importance of people management in organizational growth, highlighting its role in recruitment, employee engagement, and the development of positive workplace relationships. It also delves into the limitations of these practices, considering the impact of business policies and the role of line managers. The study explores the application of theories such as high road HRM, learning and development, and the use of rewards systems. Furthermore, it discusses HSBC's initiatives in promoting workforce diversity, the adoption of soft HRM approaches, and the overall impact on the company's goals and objectives. The conclusion summarizes the relationship between diversity, people management, and the achievement of organizational targets, emphasizing the role of these practices in customer and employee retention.

Case Study Of HSBC

Table of Contents
PART A...........................................................................................................................................1
PART B............................................................................................................................................5
PART C............................................................................................................................................6
CONCLUSION...........................................................................................................................6
RECOMMEDATION.................................................................................................................6
REFERENCES................................................................................................................................7

PART A
People management:
This is an approach of managing people in the organisation. The people management is
an services of action win which the needs of the people along with their training and
development requirement are met through various developmental programmes organised in
organisation. This management system also assists for recording the employment information
and responsibly acting towards their issues and problems (Arora, 2015). The People management
is having utmost responsibly or duty to work for the people and care for the welfare of the
employees working in business. This extent the roles of management beyond the boundaries of
the specific job performance to the employee satisfaction and welfare. Cornielius defined that
people management approach is related with the management or administration of the
employment engagement in the organisation culture and develop higher responsiveness of top
management in to the operational management and the needs of workforce accomplishing their
job role more confidently and with higher efficiency. The upper management uses an non
strategic approach in response to the formal process of people management in the working
culture.
Importance of People management and supporting to the organisation growth:
People management is having great significance in the development and growth of the
organisation. This carried out crucial activities for the development of employee as well as
business in the commercial environment more confidently. This engaged in carrying of major
activities in the organisation culture i.e. responsible of recruitment and selection along with
providing pay and conditions to their services and the job roles. This also work for enhancing
employee engagement and along with this developing good individual relations in the workplace.
People management also support the better performances of the workforce through providing
rewards, remuneration and the benefits during their working (Ashrafi, 2012). People
management action also reach to the boundaries of managing exit of employee in the
organisation through various approaches like retrenchment, redundancy and retaining. PM
effective working leads to the growth of business organisation as well. As this supports the
enhancement of employee competence, engagement and their commitment to their roles and
responsibilities.
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Employee administration is additionally referred to as human resource management that
lie in the task or actions recruitment, hiring, selection and the Employee administration is
additionally referred to as human resource management that lie in the task or actions
recruitment, hiring, selection and the management of staff engagement and their various issues
or problems. People management is very important just in case of HSBC as a result of it facilitate
in an exceedingly developing a sensible relationship with company personnel that facilitate
organisation in obtaining competitiveness and gaining benefits over these competence of HSBC
(Guest, Paauwe and Wright, 2012). This results in increasing the the productiveness and
efficiency, performance level of staff and also contribute in enhancing the profitability of the
sited business firm.
Each organization should look for all their staff members as an extended term to the
investment as the personnel will contribute in assisting in rising the productivity and
effectiveness in working of firm. Primary reason that accounts to the people management is
very important as this is a result of these are are the main working forces of the organisation
which the one who develops an relationship agency with that of final product with giant
variation of the consumers needs and wants so as to fulfil their desires. One
amongst the advanced function and duty of manager's line of work is to work for the effective
people management because it is incredibly troublesome to encourage and bear the staff
members of HSBC for longer time period in order to contribute in profitability of the firm. This
can be restricted by what are the major tools that should be used for employee and personnel
management in workplace of organisation. management of staff engagement and their various
issues or problems. People management is very important just in case of HSBC as a result
of it facilitate in an exceedingly developing a sensible relationship with company personnel
that facilitate organisation in obtaining competitiveness and gaining benefits over these
competence of HSBC (Williams, Abbott and Heery, 2011). This results in increasing the the
productiveness and efficiency, performance level of staff and also contribute in enhancing the
profitability of the sited business firm.
Each organization should look for all their staff members as an extended term to the
investment as the personnel will contribute in assisting in rising the productivity and
effectiveness in working of firm. Primary reason that accounts to the people management is
very important as this is a result of these are are the main working forces of the organisation
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which the one who develops an relationship agency with that of final product with giant
variation of the consumers needs and wants so as to fulfil their desires. One
amongst the advanced function and duty of manager's line of work is to work for the effective
people management because it is incredibly troublesome to encourage and bear the staff
members of HSBC for longer time period in order to contribute in profitability of the firm. This
can be restricted by what are the major tools that should be used for employee and personnel
management in workplace of organisation (Gupta, 2014).
For example:
The HSBC company is dealing in the financial and the banking sector and is having
approximately 235,175 employees working with the organisation for their profit and the growth
goals. The higher management of the firm should be responsive in developing effective plan to
people management approaches in order to providing them healthy working environment. The
company is focusing on the employees voice in the workplace in order to achieve higher level of
job satisfaction in the behaviour of the workforce in order to contribute in better performances in
workplace (Barasara, 2013). This particular HSBC bank is developing various approaches to
people management in emphasis on the employee voices and listen to their issues and views
responsibly in order to work for resolving workforce issues more accurately within shorter time
span.
Basis HSBC Barclays JP Morgan
Average salary 55, 000 euro 52, 000 euro 48, 500 euro
Average Bonus 13, 500 euro 16, 000 euro 15, 500 euro
Numbers of employee 2, 32, 957 1, 29, 400 2, 51, 503
(Source: Will Martin. 2017. You can earn four times the bonus working as a junior banker for an
American bank in London than a British one.)
Limitation of People Management:
There are some of the limitation to the effective development of people management in
the operations of the HSBC. The employee engagement I the profitability of the firm is largely
effected by the business policies and the strategies (Khaled and Najati, 2012). The conflicting
situation between the organisation policies and the development plan with that of the people
management strategic plan. Like for an example the HSBC is providing efficient level of
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services to the lower cost as compared to the other competitors. The organisation is having the
competence in providing low cost services and benefits to the service user. While the company is
also paying a good remuneration to their employees in relation to managing people with
organisation effectively. This non compliance with the business strategies to that of people
management approaches through the effectiveness of the employee management with the
organisation growth gaols.
Another limitation to the people management policies can be delicacy in the action of line
managers. If the line manager or leader is not working in the competence with the business
strategies and policies than this will negatively affects the profitability of firm as well as the
satisfaction level of employees. This will negatively affects the employee engagement and their
commitment towards the growth of the business of HSBC firm (De Silva, 2016). So, these are
some of the limitation to the people management activities in the practices of sited organisation.
People management in organisation linked with theories:
High road Human resources management can be defined as the high performance level,
higher level of the higher involvement of the employees and providing high training and the
alternatives to for higher development. This also result in higher commitment, higher rewards to
the candidate. This will result in increasing the employee engagement and contributing in the
higher profitability of firm and productiveness of the personnel.
Learning and development is an another approach followed by the HSBC in their method
an strategic plan for effective people management in workplace (Hurn and Tomalin, 2013). The
company is providing class room training, in filed retaining in order to enhance the skills of
employees of the company and contributing in increasing their competence level to perform
better in working culture.
The Hard HRM is followed by different organisation which is having working norms that
the human resource of an organisation are assist to them which should be controlled in
appropriate manner in order to devise some of the positive results. The Hard Hrm followed by
different organisation demotivate the employees and this create a harsh condition of working
accomplished with punishment and deduction incentives as a punitive action which negatively
affects the actions of the organisation in commercial environment (Ramakrishna and Rao,
2017).
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Rewards system and the incentives is an another factors or attributes used by the
companies in order to retain their employees with the longer time period. The rewards motivates
the employees of the HSBC to work better and accomplishing the targets of firm more
responsibly. Reward can be motivating to the internal or extrinsic aspects of individual to work
more passionately and with higher commitment in workplace. This largely helpful in developing
a effective approach to people management by providing higher amount of the incentives and
reward to the workforce.
PART B
The HSBC is focusing in increasing the diversity in workforce of their organisation. Also
the company is working in compliance with the provision of the equality law in the working
environment. The company is largely contributing in increasing the diversity and providing equal
opportunity to the every individual with uniqueness (Sharma, 2014). So, the HSBC is
responsibly acting in the recruiting and hiring of the right candidate at right place with
appropriate responsibilities to person as per this competence level. The organisation is following
soft Hrm in order to develop a good people management approach in action of the business firm.
Soft Hrm is the approaches which is followed by the different business firm in managing
their people effectively in workplace. This approach motivate and develop higher level of
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Illustration 1: HRM in HSBC, 2015
Source 1: The Core Functions and Activities of HRM. 2015

involvement in the profitability and goals of the company (Warner, 2014). This will result in
better performance and competence of the employee with the manager and with the organisation.
The HSBC is following up soft Hrm in their workplace in order to develop good relationship
with their staff members and developing a positive relationship with the workforce. This will
results in higher involvement of the people and effective management of personnel in
organisation working environment working with higher diversity (Alfalih, 2016).
PART C
CONCLUSION
From the above information this is often summarised up with that the relationship
between heterogeneity and diversity discipline and people management. Management of
uniqueness, variations and diversity which contribute in in accomplishing defined or
confirmed goals, targets and objectives of the organisation. Above mentioned scenario of HSBC
state that organisation develops a good approaches and methods of recruiting and selecting right
candidate with diversity and uniqueness at various geographic
point. Information embody within the assignment has proof that
people management facilitate manager in to accomplish all the defined targets objectives of
HSBC in a good means. Further, with the idea of individuals management in the functions of
HSBC will produce and hold up with their service user and customers and may retain the
customers and employees with longer amount of time. People management is
not solely contributing increasing the profitability of the firm and productivity of employees and
of firm as well however give varied future benefits to firm.
RECOMMEDATION
From the above information explicit or execution that of management of individuals in a
good means is one amongst the most difficult job of a leader or managers in organisation. To
take care of an equivalent varied ways are there which may be employed by the administrator
and directors of HSBC. Managing director of firm will carry out some of the modification or
alteration in ways of recruitment of right candidate and them selecting the person for right
position as to manage diversity in the working function of an business firm. Managers ought to
develop particular ways that should be time definite in order to that of staff will accomplish all
tasks and Jobs in given amount of time period.
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REFERENCES
Books and Journal
Alfalih, A., 2016. Religion, culture and management: a comparative study of the impact of Islam
and Saudi culture on HRM practices of indigenous and foreign owned and managed
corporations in Saudi Arabia (Doctoral dissertation).
Arora, R. G., 2015. Effectiveness of E-Recruitment Practices: A Case Study of HSBC-
GR. Amity Global HRM Review. 5.
Ashrafi, R., 2012. An Internship Report on MTBL: General Banking, HRM Department and
Research on how MTBL can lead the Banking industry of Bangladesh.
Barasara, R. T., 2013. An analytical study of capital structure Vis-AV is profitability of banking
industry in India.
De Silva, V., 2016. Influence of Ethical Orientation of HRM on Ethical Decision-Making in
Organizations: Research Gaps Identified towards a Conceptual Model. Global Journal
of Management And Business Research.
Guest, D. E., Paauwe, J and Wright, P. eds., 2012. HRM and performance: Achievements and
challenges. John Wiley & Sons.
Gupta, S., 2014. Sustainability as a competitive advantage: An outcome of strategic
HRM. Review of HRM. 3. p.129.
Hurn, B and Tomalin, B., 2013. Cross-cultural communication: Theory and practice. Springer.
Khaled, M and Najati, K., 2012. The Effects Of Human Resource Management Practices (Hrm)
On Service Innovation In Malaysian Islamic Banks (Doctoral dissertation, USM).
Ramakrishna, P and Rao, K. S., 2017. A Review of Literature on HRM Practices in Indian
Banking Industry. Imperial Journal of Interdisciplinary Research. 3(4).
Sharma, G., 2014. Competency Mapping in HRM.
Warner, M., 2014. Culture and management in Asia. Routledge.
Williams, S., Abbott, B and Heery, E., 2011. Civil regulation and HRM: the impact of civil
society organisations on the policies and practices of employers. Human Resource
Management Journal. 21(1). pp.45-59.
Online
The Core Functions and Activities of HRM. 2015. [Online]. Available through:
<http://ashtopusconsulting.com/the-core-functions-and-activities-of-hrm/>.
Will Martin. 2017. You can earn four times the bonus working as a junior banker for an
American bank in London than a British one. [Online]. Available through:
<http://nordic.businessinsider.com/emolument-data-on-bankers-bonuses-in-the-us-and-
uk-2017-5/>.
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