Effective Management and Application of HRM in HSBC

This report analyzes the human resource management (HRM) practices of HSBC bank. It begins by outlining HSBC's mission, core objectives, and the importance of workforce planning, including recruitment and selection approaches. The report then delves into the benefits and limitations of various HRM practices, such as learning, training, and performance management, for both HSBC and its employees. It assesses the relevance of HRM to organizational efficiency, effectiveness, and profitability, highlighting the creation of a motivated and skilled workforce, the development of an effective organization, and the provision of training and development. Finally, the report examines the significance of employee relations in influencing HRM decision-making and the impact of employment legislation on these decisions.

Effective management and
application of human respurces
in HSBC

TABLE OF CONTENTS
SECTION- 1....................................................................................................................................1
About HSBC bank.......................................................................................................................1
Mission Statement of HSBC bank...............................................................................................1
Core objectives of HSBC bank....................................................................................................1
Importance of workforce planning...............................................................................................1
Approaches of recruitment and selection.....................................................................................2
SECTION 2......................................................................................................................................3
Benefit and limitation of HRM practices for HSBC and the employees.....................................3
Relevance of HRM to the organizational efficiency, effectiveness and the profitability............4
SECTION 3......................................................................................................................................6
Analysing the importance of employee relations in influencing the HRM decision-making......6
Key elements of employment legislations and its impact over HRM decision-making..............6
Application of HRM practices.....................................................................................................7
REFERENCES................................................................................................................................8
APPENDIX......................................................................................................................................9

SECTION- 1
About HSBC bank
HSBC bank stands for The Hong Kong and Shanghai Banking Corporation. It is established in
1850 in USA and headquartered in New york. It is a British multinational bank having its
subsidiaries around the world and is famous for its services in investment banking and the wealth
management services. The success of the bank is determined by its ability to reach the mass
population with the help of digital marketing campaign strategies (Masum, Azad and Beh,
2016). It also believes in expansion through the market penetration strategy wherein it offers
discounts, lowers down the interest rates for the borrowers and allows rebates.
Mission Statement of HSBC bank
The mission of the bank states that it wants to establish as a leading international bank and
expand its network with the use of rapidly increasing technology (Nankervis and et.al., 2019.). It
desires to provide wide range of customized services like the investment, commercial, retail
banking and other financial services like the wealth management and portfolio management
services.
Core objectives of HSBC bank
One of its major objectives is to maximize the wealth of shareholders which is to return
maximum benefits on the investment made by the shareholders. Another major objective of the
bank is to establish a global footprint and expand its customer base. It also wants to generate
expertise in the tailor-made financial services (De Silva, Opatha and Gamage, 2018).
Importance of workforce planning
Workforce planning refers to the process of allocating the right person at the right position on the
right time so that the organizational objectives of the bank can be fulfilled. The recruitment and
selection of the employee is based on the qualifications and the specializations acquired which
shall ultimately boost the morale and efficiency of the workforce (Serengil and Ozpinar, 2017).
Major importance of the workforce planning to the goals of the organization are:-
 Proper workforce planning is essential for HSBC for boosting its operational efficiency
through attaining the economies of scale, limiting the wastage of resources, cutting down
the cost per unit etc.
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 It improves the human resource management with the help of taking efficient decisions
related to them and helping them build skills and competencies that are required to
achieve the personal and professional goals.
 Strategic workforce planning is also essential because it creates the scope for future
forecasting and also allows to prevent the unnecessary issues and conflicts among the
workforce of the company.
 It also helps in building the leadership qualities as if an employee is present in the interest
sector then they are willing to take initiatives and also contribute more towards the
success of the organization.
Ultimately workforce planning is very essential for the achievement of its objectives and the
prospects of its future growth.
The strategic HRM plays a crucial role in the globally undertaken business where the
competitiveness is identified by the efficiency of employees (Knevel, Gussy and Farmer, 2017).
While performing the business globally it is very essential to manage the human resource as they
belong to the diverse culture and beliefs.
Approaches of recruitment and selection
 Equality and diversity- One of the approaches to recruit and select the employees is by
maintaining the equality and diversity amongst the various applicants. In this approach all
the candidates who apply are considered based on their merits and this removes the bias.
After being approached then they can be shortlisted based on their performance in the
interview.
The merits can be that such approach is not biased, helps in selecting the most skill-full
candidate and positively publicize the brand. Whereas the demerits can be it is time-
consuming and complex process. Example walk in interview.
 Short-listing based on the applications- This is an approach used by HSBC bank where
the applications are detailed and self-explanatory and on the basis of that the candidates
are selected and accordingly rejected. The merits can be its less complex and time-
consuming. The demerits are it is an inefficient way of selection.
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SECTION 2
Benefit and limitation of HRM practices for HSBC and the employees
There are different types of HRM practices which are being followed by HSBC which is
having both pros and cons on the employer as well as on the employees.
Learning, training and development
HSBC believes that the primary competitiveness comes from its employees. It states that it is
their ability which results into providing superior quality customer experience which sets them
apart from the other organizations. The organization focusses on continuous upgrade in the skills
and the knowledge for gaining competitive advantage.
Benefits: The organization has implemented various programmes like the internal
training programme which incorporates the seminars and the workshops on the various topics
which is offered by the organization's training and Development division at it training centre.
Along with this, it is introduced external courses as well in relation to the jobs which is also in
the form of the conferences, courses etc. which is handled by Training and Management
Development Centre at Bricketwood, UK (Noe and Kodwani, 2018). In addition to this, HSBC
has incorporated distance learning which is a web based and self study programme which is
made available through the intranet and the other multimedia learning centres. The organization
has also implemented a residential management trainee program called as RMT programme
which is aimed at selecting the potential executives trainees and then providing them appropriate
training and development sessions which helps in making them understand the business
operations and functions.
Limitations: The training and development made available to the employees of the
organization are very wide and requires lot of time and efforts which makes it difficult for the
employees in understanding the same. Also, this can made employees dependent upon the
training without putting their own efforts. For instance, the employees of the organization might
not work on their own for getting better insight or enhancing their skills. This will result into
putting pressure over the employer (HSBC) in introducing new strategies. Thus, the intention to
provide immense learning and development opportunities might result into creation of the
limitation for the employer and employee.
Performance management
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HSBC has implemented various approaches in respect to effectively measuring the performance
of its employees. These measures are set in such a way that it will help in effectively determining
the true and accurate outcome.
Benefits: The organization has implemented target system through it can analyse the
performance of its employees and take steps in effectively managing the performance of its
employees. For instance, if the employee is not able to meet with the set target than the employer
can take account of it and undertake actions for enhancing the performance of the employees.
This can be beneficial for the employees in terms of getting an opportunity get into the eyes of
the management pertaining to the level of performance (Sitzmann and Weinhardt, 2018). Along
with this, the organization has also implemented proper feedback system from the employer as
well the peer or the colleague. This helps in gaining understanding about the perspectives of the
employees and the issues that they are facing. This performance management system of HSBC is
useful for both employer and employee in taking crucial business related decision and in
identifying the weaknesses or the gap which is required to be filled in.
Limitations: The performance management system of the organization would also have a
negative impact over the employer and the employee as with the change in time and the level of
work it is important for the employer in implementing change in the organization and the
methods of performance management. For instance, one employee is good in one job but is weak
in other than it is crucial to have a system in place will help in identifying both the aspects. On
the other hand, in terms of employees, they might feel that the management fails to understand
their side and the hard work they are putting in, thus, performance management might lead to
creation of conflict between the employer and employee.
Relevance of HRM to the organizational efficiency, effectiveness and the profitability
HRM is considered to be a critical part in every business organization which helps in
developing a competitive position of the organization. It results into attaining higher
performance and productivity, innovation and flexibility which helps in delivering the higher
quality and personalized customer service. The major benefit of HRM practices is in bringing
competitive advantage to the business organization.
Following are the major areas where HRM contributes to the organizational well-being.
Building motivated, skilled and flexible workforce: The HRM plays an important role in
the creation of the motivated, skilled and the flexible workforce which mainly done through the
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development of the strategies, policies and the other practices in these areas like motivation,
rewards system and so forth. All these are connected with the attainment of the sustained high
level of performance. This accounts for providing more attention to the employees in terms of
how they can improve their work and how the individuals can best be motivated which involves
offering attractive incentives and rewards, leadership and most crucial of all this is the work they
do (Adjibolosoo, 2017). The development of the motivational process and the better working
environment results into encouraging people to perform better and apply their efforts and
capabilities in such a way that will help in meeting with the business objectives. Therefore, all
these efforts will lead to make the organization achieve higher level of efficiency, and
effectiveness and this consequently leads to enhancing the revenue and increasing the
profitability of the organization.
Creating and developing effective organization: The development of the organization is
mainly concerned with the enhancement in the effectiveness of the firm and especially in the
way the various processes and functions of it and the people work together. The reason for
implement changes within the organization and developing it using the coherent approach and
this also leads to changing the working pattern of the employees and encourages interaction
among them which results into motivating employees enjoying their work. This leads to increase
in the efficiency and the effectiveness of the employees.
Providing training and development: Another important function of HRM is to
effectively manage the workforce within the organization. This can be mainly done through
introducing training and development sessions for the employees which will help in making
them aware about the organization and their job role. Along with this, most of the organization
have dedicated and well-established training system which involves sessions for the new hire
candidate to the providing training of the leadership to the high staff and others in between
(Taamneh, Alsaad and Elrehail, 2018). Apart from the workplace training, the organizations are
also encouraging the ongoing development of the employees with the help of the relevant
training and courses or the workshops. Promoting employee development programme plays an
important role in the employee retention and is an important part in the successful operation of
the business functioning. This consequently leads to reducing absenteeism within the
organization resulting into reduction in the additional cost of recruitment. This leads to decrease
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in the expenditure and increase in the profitability of the company which is actually the result of
the enhancement in the efficiency and effectiveness of the staff.
SECTION 3
Analysing the importance of employee relations in influencing the HRM decision-making
The employee relation is considered to be crucial for the organization like HSBC as the
employees execute the plans. This makes it important for the for HRM that before making final
decisions they should contact or communicate with the employees in order to make the
implementation of the decision more success (Khoreva and Wechtler, 2018). Along with this, it
is essential to create an environment of trust and care among the employers and employees in
order to encourage them in taking better decisions. Through this, employees will feel motivated
as they took part in the decision-making process pertaining to the execution of the HRM
practices.
Having appropriate balance of the employee relation is a tough task because it needs
continuous understanding and trust among the staff and the employers. There it is crucial on the
part of the employer to put extra care and support in order to handling the status of the employee
relations. When there is good employee relations implemented in the company then the HRM
policy implementation termed to be successful (Kloutsiniotis and Mihail, 2018). The employee
relation management has critical issues which the organization always focus on which results
into enhancing the working environment. The employees come from diverse sources which
increases the probability of miscommunication, leading to conflict. Therefore, it becomes crucial
for the management in taking into account these factors while making decisions. Thus, employee
relations has a huge impact over the HRM decision-making.
Key elements of employment legislations and its impact over HRM decision-making
Health and Safety
The health and safety at work, 1974 is established to govern the security of the workers.
This ensures that if there are any loopholes or failure of employee prevention lawful prosecution
shall be undertaken (Fagan and Rubery, 2018). It is the duty of the employer that they maintain a
safe system, premises, working condition and supervised staff. The rules and regulations are
formed in advance to get practised and the employer has to ensure if anything goes against the
prescribed norms. Apart from this they also have to maintain the safety of the customers and the
visitors who are visiting the premises.
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Data protection
There are certain laws and regulations which helps in reducing discrepancy pertaining to
the selection of the employees for the job. HSBC has followed Data Protection Act in order to
effectively manage the data of the clients and the employees. It has also complied with the
changes which has taken place in the year 2018 pertaining to the data privacy law as the General
Data Protection Regulation (GDPR) which mainly deals with the large amount of data which is
generated from the social media and the other such online activities (Privacy notice. 2020). The
company values the data of its workers and works on ensuring its security. Thus, the HRM
practices of the organization are implemented based on this law with the objective of maintaining
the confidentiality of the employee's information. Therefore, before introducing any new policy
or practices, the HRM is required to take into consideration this employment legislation.
Application of HRM practices
The HRM practices is being applied in the every part of the business and the usage of
technology has increased pertaining to the application of HRM practices in an organization
effectively. Few application of it are given below.
Social media recruitment: Social networking sites have become common platform for the
organization and HSBC makes use of LinkedIn for getting new candidates and interviews
through video call which reduces cost for both employer and employee (Rana and Malik, 2017).
Tracking system: With the help of this system, the recruiters of HSBC tracks the application of
the applicants and is useful in identifying the best candidate from the thousands of applications.
Mobile recruiting: It is a very useful tool used by HSBC as through this potential employees can
be easily tracked.
The rationale behind the application of HRM practices in HSBC is effectively managing
the workforce requirement of the organization which contribute towards accomplished of the
desired business goals and objectives.
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REFERENCES
Books and Journals
Adjibolosoo, S., 2017. The human factor approach to managerial and organizational efficiency
and effectiveness. Springer.
De Silva, V. A., Opatha, H. H. D. N. P. and Gamage, A. S., 2018. Does Ethical Orientation of
HRM Impact on Employee Ethical Attitude and Behavior? Evidence from Sri Lankan
Commercial Banks. International Business Research. 11(1).
Fagan, C. and Rubery, J., 2018. Advancing gender equality through European employment
policy: the impact of the UK's EU membership and the risks of Brexit. Social Policy and
Society. 17(2). pp.297-317.
Khoreva, V. and Wechtler, H., 2018. HR practices and employee performance: the mediating
role of well-being. Employee Relations.
Kloutsiniotis, P. V. and Mihail, D. M., 2018. The link between perceived high-performance
work practices, employee attitudes and service quality. Employee Relations.
Knevel, R. J. M., Gussy, M. G. and Farmer, J., 2017. Exploratory scoping of the literature on
factors that influence oral health workforce planning and management in developing
countries. International journal of dental hygiene. 15(2). pp.95-105.
Masum, A. K. M., Azad, M. A. K. and Beh, L. S., 2016. The role of human resource
management practices in bank performance. Total Quality Management & Business
Excellence. 27(3-4). pp.382-397.
Nankervis, A. and et.al., 2019. Human resource management. Cengage AU.
Noe, R. A. and Kodwani, A. D., 2018. Employee training and development, 7e. McGraw-Hill
Education.
Rana, M. H. and Malik, M. S., 2017. Impact of human resource (HR) practices on organizational
performance. International Journal of Islamic and Middle Eastern Finance and
Management.
Serengil, S. I. and Ozpinar, A., 2017. Workforce optimization for bank operation centers: a
machine learning approach. Ijimai. 4(6). pp.81-87.
Sitzmann, T. and Weinhardt, J. M., 2018. Training engagement theory: A multilevel perspective
on the effectiveness of work-related training. Journal of Management. 44(2). pp.732-
756.
Taamneh, A., Alsaad, A. K. and Elrehail, H., 2018. HRM practices and the multifaceted nature
of organization performance. EuroMed Journal of Business.
Online
Privacy notice. 2020. [Online]. Available Through:<https://www.hsbc.co.uk/privacy-notice/>.
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APPENDIX
Job Advertisement
HSBC is looking to recruit Human Resources Assistant job role
Job Responsibilities
 The candidate will be responsible for carrying out all HR functions including general
industrial relations.
 Interpretation and implementation of condition of service.
 Representing the company in various bodies pertaining to HR matters.
Person Specification
 Professional qualification in HRM from a recognized institute
 Excellent command over English
 Pleasing personality and excellent PR skills
 Basic computer knowledge
Remuneration
Salary package negotiable on experience and qualification.
Candidates can apply on the official website of the company.
Sample Interview Questions
1. What are your qualification?
2. Why do you think you fit in this job profile?
3. Where do you see yourself in the next 5 year?
4. What are your strength and weaknesses?
5. What value would you add to the organization?
Appointment letter
To Mr./Ms. XYZ
Subject: Appointment letter
Sir,
With reference to your interview, I am pleased to inform you that you are appointed as the
Human Resources Assistant in HSBC Bank Plc. Out of the 100 candidates who applied for the
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job, your skills fits with the organization's need.
The conditions of appointed are attached and if you wish to accept the enclosed
conditions and the job, please sign and date this letter attached below and return it within 1
week. If you have any questions or concerns feel free to contact me as soon as possible.
Looking forward to working with you.
Thanks & Regards
Human Resource Head
HSBC Bank Plc
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