Human Resource Management Report: Analysis of HSBC Bank Practices

This report provides a comprehensive analysis of human resource management (HRM) practices at HSBC Bank. It begins with an introduction to HRM, defining its purpose and functions within an enterprise. The report then delves into specific areas, including an evaluation of recruitment and selection approaches, comparing internal and external sources, and highlighting their strengths and weaknesses. The benefits of various HRM practices for both employees and the bank are examined, with a focus on training and development, flexible working options, and employee performance management. The report also explores the importance of good employee relations and the influence of employment legislation on HRM decision-making. Finally, the application of HRM practices within the enterprise is discussed, offering insights into how HSBC Bank utilizes these practices to enhance its profitability and productivity. The report concludes with an overview of key findings and recommendations for effective HRM implementation.

Human Resource Management

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Purpose and functions of Human Resource Management.....................................................1
P2 Strengths and weaknesses of recruitment and selection approach.........................................3
TASK 2............................................................................................................................................4
P3 Benefits of various HRM practices for employees and HSBC Bank ...................................4
P4 Effectiveness of different HRM practices in terms of raising company's profit &
productivity.................................................................................................................................6
TASK 3............................................................................................................................................8
P5 Importance of good employee relation and their influence on HRM decision making.........8
P6 Key elements of employment legislation and their influence on HRM decision-making.....9
TASK 4..........................................................................................................................................10
P7 Application of various HRM practices in an enterprise.......................................................10
CONCLUSION .............................................................................................................................14
.......................................................................................................................................................14

INTRODUCTION
Human resource management is the best term that used to determine formal systems
which devise for the administration of people within an enterprise. The responsibility and duty of
HR manager is fall into three different areas; staffing, employee benefits and compensation. And
designing or defining work. Fundamentally, the purpose and motive of human resource
management is to increase the productivity and profitability of a company by optimising the
success of its workforce. In simple word, HRM is an effective process of recruiting and
developing workers so that the frequently valuable to the business entity (Arrowsmith and
Parker, 2013). This activity includes planning individual needs, conducting job analyses, training
and development, providing incentives and resolving disputes. Present assignment is based on
HSBC Bank headquartered in London. They offers different services related to financial and
banking to its clients. This report includes different functions and purpose of HRM, Strengths
and weakness of selection and recruitment approach, advantages of HRM practices, Importance
of good employee relation and key elements of employment legislation. All these are highly
effects on business profitability and productivity level.
TASK 1
P1 Purpose and functions of Human Resource Management
HRM is the process and effective activity through which entire workforce can be
managed in a proper and structured manner. It covers some elements such as selection,
recruitment, induction, compensation, motivation, benefits, placement, training and development
etc. It assist in maximising the effectiveness of the enterprise by proper utilisation of workforce
(Baluch, Salge and Piening, 2013).
Definition of Human resource management: According to the Edwin Flippo; HRM is a
planning, directing, organizing, controlling of development, procurement, integration,
compensation, separation and maintenance of HR to the end that organisational, personal and
social objectives are accomplished accordingly.
Purpose of HRM:
Main purpose and motive of HRM is to recruit right or capable person for accurate
positions in perfect time period. For this, human resource management is necessary and essential
for administrator to forecast manpower requires of company and complete that by recruiting
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talented candidates. In this department, management team formulate different strategies or
schemes in order to make proper commitment of employees towards business entity. They
support in creating capacity of enterprise by setting objectives and goals.
HRM Functions: There are different function of human resource management which is apply by
HSBC bank in order to increase their productivity and profitability level (Functions of HRM,
2018). Some functions are determined as below:
Training and development: It is identified as an effective process and functions of
organisation in order to provide proper training to their workforce. In this role of human resource
manager is to organise some training and development secession to its employees with aim of
developing their abilities and skills on particular matter (Bloom and Van Reenen, 2011). The
employer of the HSBC Bank provide training to individual so that they know working and
functioning of company properly.
Advantages and compensation: It is another and important function of HRM which
support HSBC bank and its manager. With the use of this functions they easily create
compensation plan or policy for staff members as per the government regulations that assist in
promoting ethical practices in an organisation. It is beneficial in maximising motivation level of
employees as well as achieve long term benefits. By giving accurate compensation and
advantages to workers, administrator can enhance business performance in systematic manner.
Selection & recruitment: It is known as an effective process of hiring talented candidates
from pool of applicants. Further, skilled members help in maximising productivity of HSBC
bank. It is main function and purpose of HRM to hire competent and experienced employees that
leads the business towards (Cox, Arnold and Tomás, 2010). In this responsibility and duty of
manager is to analysis the employees needs and their right for right position.
Soft and Hard HRM:
Soft human resource management: In this, entire staff members of the company are
treated as an essential and valuable resources. Under this, role of manager is to provide better
training and plan an effective process for achievement of personal and organisational goal. Along
with this, manager emphasis on needs of workers as per their roles and give them extra reward or
motivation.
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Hard Human resource management: It is another and valuable part of HRM because in
this, entire employees are used as an important assets. In Hard HRM, role of business manager is
to emphasis manpower needs and recruit right candidates as per the bank requirement.
P2 Strengths and weaknesses of recruitment and selection approach
Recruitment: It is an effective process of recruiting and finding the qualified persons
from within or outside of company for a job beginning in a cost effective way (Caligiuri, 2014).
This process includes evaluating the job requirements, attracting workforce to that job, selecting
and screening appliers, hiring the new workers to the enterprise.
Selection: It is also known as an effective and essential process on evaluating and
interviewing candidates for a particular job. In this, role of human resource manager is apply
different tools and approaches in order to select valuable candidates for right position.
Therefore, recruitment and selection both are important process for the company in order
to hire and select best persons for right job. These process help manager to increase their
productivity and profitability level in limited time period. There are mainly two approaches of
selection and recruitment which is used by each and every organisation such as internal and
external. These are determined as below:
Internal source: It is valuable resource which is apply by Bank in order to recruit workers within
the organisation. This approach is not useful for the outsider, it is main weakness of such method
(Conesa-Zamora and et. al., 2011). But is maximise the motivation level of employees who are
already working in the company. Some weak and strong point of internal resources which are
determined as below:
Strengths: This approach assist in maximising the motivation and performance of
existing workforce. So they perform with full efforts and dedication which move in the
achievement of long term success. One of the main strength of this approaches is to increasing
business productivity and maintain long-lasting relationship with employees.
Weaknesses: This approach is not beneficial and valuable for the outsider, it is main
weakness. As an enterprise hires candidates from within the company, they cannot render
innovative and unique ideas appropriately. This method decrease performance and sales of
company.
External source: It is another approach which is useful and essential for the company in order to
hire talented candidates outside the enterprise. There are different opportunities for the manager
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to select talented and skilled persons from pool of applicants. This methods has some strengths
and weakness which are described as below:
Strengths: One of the main strength of this approach is to recruit best and capable people
from large number of the persons. So thus they render unique and innovative ideas for
developing the new services (Daley, 2012). This process maximise the productivity and
effectiveness of business in given time period. Company can be successful or well-situated as it
recruit trained, skilful and knowledgable workers.
Weakness: Recruiting cost of this approach is high and it consume more time of
company. This process generate disputes or conflict between new and existing workforce. Staff
members can not perform with their full dedication and not provide better outcomes to the
organisation. Thus, tasks and activities of business can not do in proper manner. This process
also effects on firm and its growth or performance.
Selection: There are mainly two approaches of selections which are apply by HSBC bank
with purpose of selecting best and knowledgable person for right position. These methods are
determined as below:
Systematic approach: Selection process are more essential and important for strategic
human resource management involving job identifications, description, orientation, selection,
development and interview (Flamholtz, 2012). It considers complex skills and tools that help
decision maker in order to choosing best applicants for accomplishing organisational goals and
objectives. It is mainly based on systematic evaluation towards professional and personal values,
problem solving skills, interpersonal capability, behaviour and attitudes of candidates and many
other.
Unsystematic Approach: Under this approach of selection manager select a CV of an
applicant on random basis. after that employer carry out the comparison between the skills of
that applicant with the abilities required to perform a specific job. after this recruited take the
final decision of selection.
TASK 2
P3 Benefits of various HRM practices for employees and HSBC Bank
Human resource management practices: HRM practices is a part of human resource
management which incudes different aspects workforce planning, recruitment and selection
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process and many other activities. All these are assist the business manager in order to increase
their performance and productivity level (Fulton and et. al., 2011). There are some HRM
practices and its benefits for employers and employees are determined as below:
Human resource
management practices
Benefits to employee's Benefits to HSBC Bank
Learning, training and
development practices
Learning and training is very
important and essential for the
employees in order to
maximise their knowledge on
specific subjects (Guest,
Paauwe and Wright, 2012).
Training and development is
one of the main and foremost
practices to workers because
with the help of this programs
they increase their knowledge
base towards achievement of
personal goals.
Development, training and
learning are also beneficial for
the HSBC Bank. Employees
training is an essential factor
for the institution as it assist to
keep organisational goals.
Trained and skilled employees
are capable to increase sales
and revenues of company in
limited time period. It move in
the accomplishment of
business targets and
objectives.
Flexible working options It is another part of HRM
practices which is essential
and necessary for the
employees. In this role of
manager is to provide flexible
working hour to their staff
members, it includes shift
working, staggered hours,
compressed hours, self hours
systems, part time work, job
sharing and many others.
Flexible working options can
benefits an organisation in
different ways. For instance:
they frequently lead to
maximised productivity as
workers are more committed,
happy and focused to their job
activity when they capable to
attain a work-life glance
(Knowles, Holton and
Swanson, 2014). It also save
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money or fund by maximising
efficiency including, utilisation
of work area facilities,
decreasing the recruiting cost
and many other.
Employee performance
management and monitoring
It is a process by which
employees and managers work
with each other to plan, review
and monitor worker's work
objectives as well as entire
contributions to the enterprise
(Lengnick-Hall, Beck and
Lengnick-Hall, 2011). So it is
essential and beneficial for
employees to set their long
term objectives in a systematic
manner. It turn in the
achievement of success and
growth.
In order to monitor employees
performance is beneficial and
important for the HSBC bank
in different ways; it help new
entrants with acquiring over
their learning curve, it increase
employee morale or
performance which turn in
boosts of business
productivity, it assist business
manager to enhance customer
services.
Payment and reward
management
It is another practices of
human resource management
which is important for the
employees because with the
help of reward and payment
management, they easily do
their all activities and
functions in proper manner. It
is main role of manager is to
provide fair payment to their
Payment and reward
management will maximise
sprite of teamwork in the
enterprise. It will encourage
teamwork to the workers
regarding achievement of
predetermined goals and
objectives (Manroop, Singh
and Ezzedeen, 2014).
Teamwork with the enterprise
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all staff members. will assist to maximise
efficiency and develop a
happier and friendly
workplace.
P4 Effectiveness of different HRM practices in terms of raising company's profit & productivity
Human resource management practices is very important and beneficial for the company
and its employees to increase their productivity and performance level. There are mainly four
types of HRM practices which is apply by HSBC Bank in their business operations and functions
(Pereira and Anderson, 2012). These are Learning, training and development practices, Flexible
working options, Employee performance management and monitoring and Payment and reward
management etc. All these are highly essential for the organisation to maximise their sales and
turnover in allotted time period. Effectiveness of human resource management practices it
relation to raising productivity and profitability of company. These are determined as below:
Learning, training and development practices: These are important practices of human
resource management which assist the manager in order to provide proper training and
development to their workforce. Further all employees are highly trained and capable to render
their full dedication towards achievement of long term goals and targets in given time period.
This practices also help in increasing productivity and profitability level of HSBC Bank.
Effective learning also help in dealing with customers in an easy way, it turn in the
accomplishment of business goals and targets. Further, it will assist in rising the sales and profit
of company in certain time duration.
Flexible working options: It is also important and beneficial for the HSBC bank in order
to provide flexible working hours in different ways such as shift working, staggered hours,
compressed hours, self hours systems, part time work, job sharing and many other to their
employees (Vo and Stanton, 2011). So that they are happy at workplace to render their full
dedication and efforts in achievement of predetermined goals and objectives. It is also important
in reducing conflict and misunderstanding between employees and employers. Thus, flexible
working hour more essential for the company to increase their performance and profitability in
effective manner.
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Employee performance management and monitoring: In order to monitor employees
performance at workplace is essential for the organisation to maximise their sales and turnover.
There are different advantages of such HRM practices are determined as below:
 HRM Practices involve all workers in the planning phase.
 Monitoring and controlling the employees performance.
 Ensuring entire development and growth of workers.
 Evaluation or Assessment of individual performance.
 Rewarding employees
All these are highly important for the organisation to increase their profitability and sales in
limited time period. These are also assist in management of entire activities and policies which
move in the achievement of long term success and development.
Payment and reward management: It is another part of HRM practices which is
essential for the HSBC Bank to provide fair payment to their employees as per its work and
performance (Vörösmarty and et. al., 2010). It use to attract potentials workforce into their
company which includes bonuses, salary, benefits, incentive pay, growth opportunity of
employee such as training opportunity and professional development. With the help of this
system, company manage long-lasting relationship with their employers and employees in
systematic manner. It turn to maximise the performance and productivity of the company as an
entire.
TASK 3
P5 Importance of good employee relation and their influence on HRM decision making
Employee relation: It is define relationship between employer and employee. Effective
relation is very essential for the company to maximise their profitability and performance level in
competitive marketplace. Further it assist in order to attract large number of the customers
towards financial and banking services. Good relation between employees and employers having
more advantages and benefits for enterprise like accomplish loyalty and trust of workers, easily
render responsibility, supportive behaviour, competitive benefits, positive work environment and
many other.
Importance of employee relation: HSBC Bank gives different kind of financial and banking
services to their customers in an effective and systematic manner. At workplace, they require
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better relationship with their employees and employers (Wagner, 2011). Thus, it support in
maximisation of long term benefits and advantages within an organisation. For this purpose,
bank manager give flexible working options, fair payment and reward management, proper
training, development and learning programs and performance management etc. All these are
highly essential and important for the enterprise in order to make an effective decision about
achievement of long term goals and objectives. So, various advantages which are attained by
HSBC Bank through effective employee relation are determined as below:
Low conflict and misunderstanding: Effective relation is very important part of the each
and every organisation to reduce conflict which are arise between the management and its team.
Further, it assist in development of positive working conditions for the all employees. This will
enhance the performance level of workers in their entire activity as well as assist in removal on
entire problems (Wright and McMahan, 2011). It encourage bank manager to take an effective
decision regarding achivement of long term success and development.
Communication: One of the main and foremost part of the good employee relation is
effective communication. It help the business employer and employee to reduce
misunderstanding by applying proper communication. It gives better chance in order to keep
long-lasting and strong connection with their workers. It also supports to create great relation or
link with their target and potentials clients. In this role and duty of human resource manager is to
take decision regarding evaluation of proper communications channels.
Improving profitability and productivity: Employee relation also very important for the
manager in order to increase profit and productivity level of organisation. For achievement of
this, manager take an effective decision regarding improving their services and other financial
facility. Another role in to provide accurate information and data to the customers regarding
business changes and activities (McKenzie and et. al., 2012). So that customers are understand
about business policies and strategies. It turn in the high success and growth of company in
competitive marketplace.
Importance of trade union: It is identified as an organised institutions of employees in a trade,
profession, groups, formed to assist and further their interest and rights. It is more important
because it maximise inequalities and decrease economic efficiency by boosting the wages of
knowledgable workers. There are some another important of trade union for employees and
employers are determined as below:
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