A Report on HRM in HSBC Bank: Functions, Practices and Benefits

This report provides a comprehensive analysis of Human Resource Management (HRM) at HSBC Bank. It begins with an introduction to HRM, defining its core functions and purpose within an organization, specifically focusing on HSBC Bank, a major financial institution. The report then explores the purpose and functions of HRM, including workforce planning, recruitment and selection, training and development, and employee relations. It delves into different approaches to workforce planning, training and development, reward systems, and performance management. The report examines the strengths and weaknesses of internal and external recruitment and selection processes within HSBC Bank, providing a case study example to illustrate the application of HR practices in addressing employee turnover. Furthermore, it highlights the benefits of HRM for both employers and employees, emphasizing how effective HR practices contribute to organizational success and employee satisfaction. Finally, it discusses various HR practices adopted by HSBC Bank to reduce employee turnover and increase employee morale and motivation.

Human Resource
Management

INTRODUCTION
Human Resource Management is the process related with recruitment, selection, training
and development of employees along with providing compensation benefits, motivating
employees and maintaining proper relations with them within the organisation. This enables the
employees to work effectively and efficiently in order to attain organisational goals and
objectives. The present assignment is based on HSBC Bank which is engaged in providing
financial services throughout the UK. It becomes seventh largest bank in the world having
headquartered in London. In this The main purpose of HRM is to maximise productivity of
organisation by effectively utilising skills of employees. In this report, chosen organisation is
HSBC Bank. It is a British Multinational banking and financial services as well as it is the 7th
largest bank in the world, headquartered in London (UK). This report analyse the purpose and
functions of HRM as well as strengths and weaknesses of recruitment and selection in HSBC
bank. It also determines benefits and effectiveness of different HRM practices. At last it
discusses application of HR practices in work related context within the organisation.
Purpose and Functions of HRM, applicable to work force planning and resourcing an
organisation.
Human Resource Management is an approach which is related with managing of people
within the organisation in order to maximise their performance and helps company to attain
competitive advantages. In general, it is concerned with hiring ,motivating and maintaining work
force within organisation (Bailey and et. al., 2018).
Purpose of HRM
HRM is the coordination of all the employees within the organisation to achieve desired
goals and objectives by adopting various practices such as training and development, rewards
and compensations etc. It supports HSBC brand in maintaining employee turnover at lower level.
 Employee's commitment towards work- Productivity within organisation is linked to
employee commitment and performance towards their work. HRM implements various
best practices and plans for the betterment of employees which indirectly support in
retaining experienced employees for longer duration. Employees are given extra
incentives for their performance of work which increases their commitment towards work
and benefits the organisation.

 Optimum Utilisation of resources- Main purpose of HRM is to enable respective
organisation to make optimum utilisation of available resources. They ensures that
employees are working effectively and necessary training facilities are provided in order
to make effective use of resources and achieve goals and objectives(Brewster and
Hegewisch, 2017).
 Meeting with changing environmental needs- Business environment has become
complex due to changing individual needs as well as technological and political
advancements. HRM t HSBC bank provides training to its employees to work in different
software, adopt and learn new ways of performing job. This reduces employee turnover
and maintain quality of workforce in bank.
Purpose of HRM functions along with its roles and responsibilities
 Recruitment and selection- HRM address the skills and capabilities of employees
according to the requirement within an organisation. This need could be fulfilled by the
recruiting skilled candidates and maintains quality of work force in organisation. HRM at
HSBC bank selects the candidate with most appropriate skills which will be beneficial for
the bank and organisation (Brewster, Chung and Sparrow, 2016). Main purpose of this
functions is to assist the respective company to recruit the best candidates who have
appropriate skills and knowledge to perform task efficiently and attain organisational
goals. Roles and Responsibilities include analysing the skills and knowledge of the
candidates and selects them by taking proper decision based on the interview taken.
 Training and Development- It is the major function of HRM, which improves the
current and future performance of employees at HSBC bank. It could be done by
providing them adequate training and development needs to improve their skills and
abilities and creates a friendly atmosphere at work place by maintaining quality of
workforce. Its main purpose is to provide training to the employees which could enhance
their skills and capabilities and able to perform effectively. Roles and responsibilities
includes providing effective on the job and off the job training facilities to employees as
well as clears all their problems regarding their performance of task in order to make
them effective in doing task.
 Maintaining effective employee relations- Employee's are the main resource of an
organisation. Effective employee relations influences the behaviour and work of the

individuals in better way. HRM at HSBC bank should maintain open and honest
communication, as well as resolve conflicts among work force which reduces employee
turnover and increases organisational effectiveness (Briscoe, Tarique and Schuler, 2012).
Main purpose of this HRM function is to maintain effective relations among the
employee in order to reduces conflicts as well as assist the employees to work more
productively. It major roles and responsibilities includes engaging employee in its
decision making which increases their morale and makes them feel as valuable part of the
organisation and allows them to perform effectively.
Significance of HR in acquiring Talent
HR helps in acquiring talent in the respective organisation by proper recruitment and
selection of employees who have greater ability to perform work and meet company goals and
objectives. HR selects the most appropriate candidate and provide them training facilities which
would help them to perform effectively. It greatly benefits the company in achieving higher
profits and productivity and therefore increases morale of the employees to perform business
operations.
Different approaches to work force planning, training and development, reward system and
performance management.
Approach of Work force Planing
Situational work force planning- This approach is similar to traditional work force
planing which analyses the variances between the actual vs needed headcount. This approach is
used as a one time approach to address a specific business challenge in HSBC bank.
Approach to training and development
On the job training- In this approach employees should be provided training when they
are on the job which would motivate them as well as enhance their skills and knowledge to
perform effectively their job task.
Off the job training- In this approach employees are provided training away from their
work place. Training is provided to the employee's at specific training centre or at the place
which is designated for training. It includes various methods such as simulation programmes,
vestibule training.
Approaches to Reward System

Total Reward Approach- This approach describes a total reward strategy which benefits
the employee against their work done such as pay, pensions , learning and development as well
flexible working and and career advancement opportunities. This approach helps the employee to
effectively perform their work and attain more rewards.
Approach of Performance Management
Total Quality Approach- This approach focuses on maintaining the quality of work
within the employees by properly managing and monitoring the employees performance which
ensure them to do high quality wok and attain organisational goals efficiently. It enables the
employees to perform their business operations in a effective way.
Recruitment is an activity of searching and influencing the suitable candidate's with
appropriate skills and knowledge to fill the requirements of vacant job position in company. On
the other hand, selection is an activity of choosing right candidate at the right time at right job
position after passing recruitment process. There are two important parts of internal recruitment
and selection process which are described below-
Internal recruitment- This is a method when the respective organisation wants to fill
vacancy from its existing workforce. It also increases sense of loyalty of employees towards
HSBC to perform work more effectively. It assist HSBC managers to save lot of time, cost and
resources as compared with the process of recruitment internally. HSBC provide certain benefits
of recruitment internally and face some short comings (Budhwar and Debrah, 2013).
Strength of internal recruitment and selection process
 Increases employees engagement- Selecting employees within the respective
organisation provides employees an opportunity to advance their careers and sharpens
their skills and knowledge. Employees at HSBC can increase their ability to perform
different functions and builds culture of trust. It increases employees engagement and
retention.
 Reduces cost and time to hire- Recruiting internally will minimise cost and time to
recruit employees as recruitment will be done within an organisation.
Weakness of internal recruitment and selection process
 Limited Choice- If the respective organisation recruits from within the organisation, it
creates hurdle for the arrival of fresh candidates. This reduces HSBC bank opportunity to

gain fresh and innovative knowledge of employees and creates a higher dependency on
existing workforce (Buller and McEvoy, 2012).
 Lack in innovation- Recruitment within the organisation will lack opportunity in gaining
creativity and innovation in business and not able to gain competitive challenges.
External Recruitment and Selection- It is a process of recruiting and selecting a new fresh
candidate in an organisation. This process will help provide HSBC bank to get the most talented
employees at a wider range.
Strengths of external recruitment and selection process-
 Wider range of experience and skills- This process will provide HSBC to find most
talented and innovative employees who have appropriate skills and knowledge and could
work effectively in company and helps in achieving higher profits.
 Better competition- This process of selection of employees helps them to face better
competition in market. As employees with high skills and knowledge will efficiently
work according to competitive challenges.
Weakness of external Recruitment and selection process
 Lengthy process- When an respective organisation receives application of high number
of applicants , recruiter needs to be very careful in taking decisions for choosing right
candidates. This takes a lot of time in choosing the appropriate candidate.
 High Cost- This process of recruiting and selecting new candidates needs high cost .
Managers of HSBC pay high amount in advertising and selecting candidate that suits job
position (Chelladurai and Kerwin, 2017).
HSBC BANK need to analyse the need for candidates and select recruitment process
accordingly.
The selection method adopted by the brand for candidates is normally done by written
test and conducting interview sessions by the senior managers.
Case study example - In HSBC bank the main issues addressed is employee turnover in which
employees are dissatisfied by the company's environment as there is lack of employee security
as well as inefficient training is provided which effects job performance and reduces their
morale and motivation to perform effectively and takes decisions to quit job.
Different HR Practices are adopted by HSBC bank in order to reduce employee turnover and
increase their morale and motivation to perform.

 Employee security- Various health and safety standards acts as well as various laws
related to employee health and safety are considered in order to make employee feel as an
important part of the organisation and reduce turnover. This act considers the employee's
job security and makes them comfortable in organisation. Benefits for employers is to
make work place environment a sage and secure place and helps in employee retention
and for employee's it provides greater job security and increases their motivation to
perform efficiently.
 Extensive training- Effective training facilities should be provided to the employees in
order to enhance their skills and knowledge and makes them comfortable in performing
jobs(Human Resource Best Practices, 2018).Training sessions provided to the employee's
enables them to work productively and handle complex problem at work place. For
employers main benefit is to get effective results in a specified time period and achieves
high profits.
 Proper Compensation- In order to avoid problem of turnover employees should be
compensated properly according to their work performance and extra incentives and
rewards should be provides in order to boost their morale. Its benefits the employees as
when the performance of the individual is linked with pay, employees tend to perform
more effectively and earn more incentive. This benefits the employers to get best results
within specific time and achieve goals and objectives respectively. HSBC bank can
achieve their targets effectively and assist employees to remain for a long time in
organisation.
Benefits of human resource management for both employer and employees.
Human Resource Management involves the practices of recruiting, selecting , training,
payroll and other employee benefits. These practices are mainly concerned with maintaining
workforce in the organisation and reduces employee turnover. HRM practices benefits both the
employees and employers by maintaining effective relationships and maximising employees
performance to achieve goals and objectives (Drucker, 2012).
Benefits of human resource management practices for both employees and employer are as
follows-
Benefits of Employers Benefits of Employees

Recruitment and Selection- This process
allows the bank in getting candidate's with
appropriate skills and knowledge to perform
effectively at respective organisation.
Employers provide the employees with extra
compensation and incentive with motivates
them to perform efficiently. In context to
HSBC bank, qualified workforce are recruited
according to job profile which helps them to
increase productivity and profitability of the
firm(Harrison and Lock, 2017).
Motivation to work effectively- When the
employees are provided with pool of
information they feel comfortable at work
place environment. Employees are provided
information about leave facilities,
compensation benefits which motivates them to
work effectively. This benefits the employees
in gaining more knowledge about the
workplace where they are performing and
would increase their performance towards the
work. This helps them to gain more
understanding which benefit them in future
term period.
Resolving or Avoiding Conflicts- Friendly
and a healthy atmosphere at work place
reduces conflicts between employers and
employee. It helps the organisation in getting
high performance work and maximum
satisfaction of employees . HSBC bank by
maintaining open communication between the
employees reduces conflicts as well as
provides immediate suggestions to the
conflicts arise. It enables to increase profit and
productivity of organisation.
Training and Development- Training sessions
provided to the employee's greatly helps them
to enhance their skills and abilities to perform
work. HSBC bank provides training to new and
existing employees to increase their skills and
knowledge which enables them to work
productively and handle complex problem at
work place. This benefits the employees to
enhance their knowledge and work and accept
more competitive challenges.
Performance Appraisal- When the
performance of the individual is linked with
pay, employees tend to perform more
effectively and earn more incentives. This
helps the employers to get best results within
specific time and achieve goals and objectives
Employee Engagement- When the respective
organisation is able to maintain friendly
atmosphere and discuses all its employees in
decision making, it creates a sense of loyalty by
employees towards their work. It engages the
employees to work effectively as it creates a

respectively. HSBC bank can achieve their
targets effectively and assist employees to
remain for a long time in organisation.
sense of belongingness which creates
cooperation and coordination in their work
activities. These practices engages the
employees towards their task and helps in
resolving conflicts.
Effectiveness of different human resource practices in terms of raising organisation profit and
productivity
Human Resource Practices increases the ability of work force by motivating them to
work effectively and increase productivity and profitability for the respective organisation.
Different approaches adopted by HSBC to enhance profits and productivity are as follows-
 Payment and Reward Management- It is an important approach which is concerned
with formulation and implementation of policies that provides equity in reward for
employees. Main benefit of this reward system is that it motivates employees to perform
efficiently to in order to attain incentives and thereby helps organisation to achieve its
goals and objectives. When there is fair distribution of rewards among employees it assist
team to work with great ease and raises organisational profit and productivity.
 Flexible Work Environment- This approach adopted by the organisation makes the
employee more comfortable regarding their performance of work thereby provides a
proper work life balance. Employees are provided with flexible working hours, sharing
of work responsibility as well as facilities of working from home. This makes the
employees highly motivated and maximises their performance which in turn leads to
increase in respective organisational profit and productivity (Kehoe and Wright, 2013).
 Learning, training and developmental practices- Learning and training process helps
the employee to enhance their knowledge, skills and abilities. Managers of HSBC bank
provides various learning and training sessions to its employee's to enhance their
performance by sharpening their skills and knowledge required in order to perform the
job. This would lead to increase in organisational profits and maximise their productivity.
 Monitoring and managing employees performance- Performance Management is an
systematic approach which helps to measure, monitor evaluate and appraise employees
performance which enables the employees to work more productively at HSBC bank.
Monitoring and measuring employees performance helps them to get feedbacks which

further improves quality of work and assist HSBC bank to attain higher profits and
productivity.
Approaches and effectiveness of employee relations and employee engagement
Employee relations is refers to the company efforts to manage and maintain relationships
among employers and employees which enable them to avoid conflicts as well as work
efficiently. Drive for engaged workforce needs the organisation to involve them in respective
company's decision making as well as freedom to share ideas which enables them to perform
well effectively and makes them motivation to attain goals and objectives.
For improving the effectiveness of employee relation and employee engagement, HSBC bank
can use approach which is discussed below-
Employee relations and engagement: a collaborative approach
This approach states that employee relations and engagement are very necessary for the
success of the company. When the employee relations are effective in HSBC it results in fewer
conflicts and assist organisation in achieving set targets. Good employee relations will leads to
engagement of employees as a type of collaborative working and leads to generation of new
ideas which assist HSBC to attain more profits and high customer and employee retention
towards the company.
Effectiveness of this approach-
 It helps the respective organisation in maintaining effective employee relations as well as
reduces conflicts and increases moral of the employees to perform effectively.
 This approach assist the company in collaborative working which leads to generation of
new ideas and helps organisation to achieve targets within specified time period.
Flexible Organisation- Flexible organisational structure is the one employees can easily adapt
to customers needs and takes immediate decision when necessary and complete their work in
order to meet organisational goals.
Flexible Woking Practices- This is an strategic tool which the HSBC bank can use to improve
the performance and productivity of company by providing flexible and compressed working
hours, sharing of work responsibility which assist the employees to engage towards their work
and attain set targets.

Employer of Choice- In order to develop effective employee relations employers offers a
harmonious work culture and work place environment that attracts and retains superior
employees. Employers at HSBC bank favours well being of its employees and customers.
HSBC bank manages and supports employee relations which brings motivation to get
involved in decision-making process. It directly supports in enhancing growth and profitability
of company.
Importance of employee relations in respect to HRM decision making process:
 Increase profit and productivity- When HSBC bank involves employees in decision
making process, it leads to greater employee engagement as it makes them feel valuable
and starts working for the organisation to achieve higher profits and productivity. It also
leads to generation of new ideas and enhance productivity(Kim, 2012).
 Increases Morale of employees- When employees at HSBC bank are involved in
decision making , it reduces gap between superiors and subordinates and encourages
engagement of employees in open and honest discussion between them. It increases their
morale towards the organisation and leads to maximum job satisfaction thereby increases
profits at respective organisation.
 Enhances Team work- When employees gets involved in decision making influences
them to work in teams and achieve appropriate results. Working in team assist the
workers to openly discuss their problems and find the immediate solutions. This leads in
greater employee engagement and starts working collaboratively for the organisation.
This helps the organisation to achieve set targets easier when the employee work in team
and therefore maintains effective relationship in the organisation.
 Saves Cost and Time- When the respective organisation involve internal employee's in
decision making it saves a lot of cost and time rather than taking advice of outside
consultants which is very expensive. Therefore it leads to greater employee engagement
in working effectively towards the organisation and helps in attaining goals and
objectives. HSBC bank involves employees in decision making which would ultimately
maintains employee relations as well as saves cost and time for the organisation
(Nickson, 2013).