Comprehensive Analysis of HRM Strategies and Practices at HSBC Bank

This report provides a comprehensive analysis of Human Resource Management (HRM) practices at HSBC Bank. It begins with an introduction to HRM, defining its core functions and purposes, emphasizing its role in enhancing business growth and profitability. The report then delves into Task 1, detailing the functions of HRM applicable to resourcing and workforce planning, including training and development, compensation and benefits, and performance appraisal. It explores the nature and scope of HRM, differentiating between 'best practice' and 'best fit' approaches, and examining hard and soft models of HRM. Task 2 assesses the strengths and weaknesses of various recruitment and selection methods, covering internal and external approaches. The report further discusses the importance of employee relations in influencing HRM decision-making, as well as the impact of employment legislation on these decisions. The report concludes by summarizing the application of HRM practices in a work-related context, offering insights into how HSBC manages its human capital.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Purpose and Functions of HRM applicable to resourcing and workforce planning.............1
P2 Weaknesses and Strengths of various approaches to recruitment and selection....................4
TASK 2............................................................................................................................................7
P3 Advantages of various HRM practices in an organisation....................................................7
P4 Effectiveness of various HRM practices in context of increasing organisational profit and
development................................................................................................................................8
TASK 3............................................................................................................................................9
P5 Importance of employee relations in order to influencing HRM decision-making..............9
P6 Elements of employment legislation and affect upon HRM decision-making....................10
TASK 4..........................................................................................................................................12
P7 Application of HRM practices in work-related context.......................................................12
CONCLUSION .............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Human Resource management can be stated as process of thinking, hiring, selection,
training and development, performance appraisal, payroll, assessment of staff members. This can
be stated as process in which maximum utilisation of manpower can be done. Mani focus of
human resource is to enhance the growth and profit ratios of business process in better and
effective manner (Abdelhak, Grostick and Hanken, 2014). In company, crucial role is being
played by human resource development in making the process of business successful. Company
taken within this report HSBC which is a multi-national bank along with financial banking
holding company and this bank was established in year 1991. This bank has been world's seventh
largest bank in total assets and thus it is large in Europe with total assets of US $2.374 trillion.
There are number of things which are being discussed within this report like functions and
purposes of Human Resource Management. Along with this, there can be discussion about
various kind of advantages of number of HRM practices within company. Besides this, there is
the importance of employee relation within the context of influencing on making decision
regarding Human Resource Management.
TASK 1
P1 Purpose and Functions of HRM applicable to resourcing and workforce planning
HR management can be stated as a concept which is being utilised for managing the
human resource. This can be stated as a procedure for managing the people in process of
business in better and effective framework. The humans resource management covers a field of
staffing, recruitment, selection, performance appraisal, payroll, motivation etc. These kind of
factor works on bringing put the business process along with many of the people along so that
the goals can be met in better and effective manner (Functions of HRM. 2017). Main motive of
the HR management is to improve the development along with the productivity of business in
better and effective manner. There are various kind of nature and scopes of HRM which are
being described below:
Nature:
 HRM can be stated as a continuous process.
 There are various kind of functions which are mainly linked with training,
performance appraisal, man power planning, selection and many more.
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 This is one of the internal part of management.
 Related with all kind of levels.
Scopes
 Training and development for staff members.
 Enhance the level of motivation for employees.
 Society welfare along with employees security.
There are five functions of HRM given below as above:
Training and development- it is the major duty of the manager of HR for providing the
training to employees for enhancing the skills and level of performance. HSBC bank mainly
helps out to the fresh joiners by providing them the training and this can be applied to existing
employees as well. This kind of sessions are providing help in upgrading employees.
Compensation and benefits- The major objective of HSBC bank is attain the aims and
objectives in better and effective manner (Bloom and Van Reenen, 2011). Aims can be only be
attained by the company if there are other new methods which are being introduced for providing
advantages to staff members. There are various kind of benefits which an organisation provides
to employees and those are stated below:
 Flexibility on working hours.
 Paternal or maternal leave. Extended vacation
Performance appraisal: Level of performance is being measured by the HR manager and
thus it is mainly helpful in employees recognising which can mainly perform in effective
manner.
Planning- Crucial role is being played by the company in setting up of aims and
objectives. Effective procedure along with policies mainly provides help in attaining the aims
and objectives in better and effective manner (Cox, Arnold and Tomás, 2010). Before conduction
of activities, effective plans is being structured by the Human resource manager.
There are various kind of activities which are mainly related with HRM activities:
 Recruitment and Selection.
 Formulating the effective plans and policies for HSBC
 Enactment like consultant.
 To motivate worker.
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 Evolve better communication among all employees.
Best fit approach vs. best practice
Best practice Best fit
This can be stated as number of Human
Resource policies which are mainly involved
in reward plans for staff members.
This kind of practice mainly motivate the
system which is mainly concerned with better
and effective strategies for company.
In this kind of practice, motivation factor is
being applied for the managers.
This provides help in enhancing the
competitive advantage to HSBC bank.
Soft and Hard models of HRM
Hard skills- In this kind of factor, employees are being considered as important resource
and this is the same consideration of HSBC bank. Main purpose behind this kind of model is
business related activities along with operations which can be conducted for determining the
planning process for company (Daley, 2012). Under this, main focus for this kind of employer is
on needs of recruitment, workforce along with managing all the employees on the basis of needs
of HSBC bank. In hard skills include:
 Speed of typing.
 Certificate or Degree. Computer programming.
Soft skills- In this, HSBC bank mainly treats their employees as the valuable resources.
They are being treated like a person and thus the employer provides the shape of process of
planning. In this, main focus of the manager is on fulfilling the needs of manager as per workers
on the basis of certain responsibilities along with increasing the level of motivation.
Workforce planning
Types of labour market:
Type of firm Type of labour power market
Independent primary Subordinate primary
Core Staff control, technical and
professional salaried along
with line workers.
There are various kind of
production labours which are
unionised by competing with
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labour union.
Periphery Craft Secondary
Recruitment is being done of
employees who has the
potential of giving high level
of performance by the craft
union.
In this, there are low abilities
of employees along with job
security.
An internal labour market which is the unit of administration for the company by which
allocation of workers along with cost is being governed by the administration policies and rules.
There are various kind of positions within the labour market which is mainly filled by the
promotion of labours who mainly are present within company.
The high turnover expands the profitability of an association. On the off chance that
representatives will work better and they will hold in an organization for long day and age then it
will helps in improving the turnover of firm. From this firm will maintain at working
environment for long day and age (Flamholtz, 2012). If there should arise an occurrence of
administrative and lawful structures, it is important for the chief to apply all demonstrations at
work environment which are shaped by government or improvement of representatives and also
organization. It will build up the positive effects. The propelled innovation is useful in
influencing the procedure to process effective and better. It enhances the viability and adequacy
of HR perfection. Along these lines, HR branch of this firm embrace new innovation for
diminishing expense of creation.
P2 Weaknesses and Strengths of various approaches to recruitment and selection
This kind of process is all about inviting the large amount of people or candidates for
recruitment in order to fill the vacant posts. This can be stated as essential process for the
company. In this process the HR manager looks out for the new skills with new candidate. In the
process of recruitment, there are various kind of needs and wants which needs to be determined
along with appealing features, screening and choosing applicants, recruiting and thus integrating
new candidates to company (Fulton and et. al., 2011). There are various kind of factors which
are being included and those are described below:
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Job analysis- This kind of factor is all about identifying the certain job details and needs.
This is being utilised by the HR manager for completing out the research regarding the job
needs, performance standards, work activities and many more.
Job descriptions- This can be stated as an written document which mainly mentions
about certain job, roles and responsibilities, duties, working conditions and many more.
Personal specifications- In this kind of sector, there are various kind of skills,
knowledge, qualification along with experience of person for performing the job responsibilities.
There are mainly two kind of methods which are recruitment and selection in internal and
external way along with strengths and weaknesses:
Internal recruitment and selection
HSBC bank mainly recruits the candidates or employees within the company. This is
much more cost effective and time saving. Thus, there is no need of searching out for the suitable
talent. This in turn is very much helpful in enhancing the level of motivation along with staff
members (Glendon,Clarke and McKenna, 2016). There are three sources for the internal
recruitment as well as selection which is being given below:
Promotion- This can be stated as effective an upward movement for the staff members.
This kind of factor is highly essential as it will allow the employee to show the efforts and get
rewards in form of promotion for the higher post. In this, salary of they workers are being
increased.
Transfer- In this kind of process, employee is being transferred from one post to another
or it can be another department as well.
Employee referrals- In this kind of factor, reference is being provided by the employees
for another candidate for certain job at vacant position within company.
Strengths
 This is cost effective and time saving as well.
 In this, manager of HR mainly knows about the actual potential of the employees.
 Promotions are not needed.
 Uplifting the morale level of employees.
Weaknesses
 Biasness can be developed among existing employees.
 Conflict can be arise between employees.
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 No fresh talent can be included.
External recruitment and selection
In this , candidates are being hired by the HR manager from the outside and thus it can be
in form of college placements, constancy, pool campus, advertisement and many more.
Strengths
 Platform of opportunity to new ones.
 Provide help in identifying the new and effective ideas.
 Biasness will not be formed in present employees.
Weaknesses
 Time and money consuming process.
 Training sessions for employees.
 Dissatisfaction can be created for existing employees.
Selection can be stated as process for selecting the existing employees for certain job.
This can be stated as negative process (Gruman and Saks, 2011). Employees are being hired by
HR manager on the basis of skills, abilities, knowledge along with needed competencies for
performing job.
There are two very essential concepts which are being utilised for analysing and
determining the distortion and those factors are Reliability and Validity. There is the process
which is being followed before joining and that is being conducted by HR.
On boarding- This can be stated as an action for integrating new kind of employee
within company. There is the brief given for the department which he\she will wok in along with
colleagues and with this objectives of business which are being expected are also been
acknowledged.
Induction- In this kind of sector, employees who are being introduced to the business
culture, values and vision and many more. This can be conducted on regular basis. This will help
the new joinee to gather up the knowledge for various sectors, seniors and various other people
for company (Hobfoll, 2011). Various issues which affects the successful induction along with
socialisation of employees:
 Negative impact on mission and vision.
 Skills of employees.
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TASK 2
P3 Advantages of various HRM practices in an organisation
Human resource management practices: HRM rehearses is a piece of human asset
administration which incorporates distinctive angles workforce arranging, enrolment and
determination process and numerous different exercises (Werner and DeSimone, 2011). All these
are help the business chief so as to expand their execution and efficiency level.
There are number of HRM practices for HSBC bank which are being described below:
Human resource
management practices
Benefits to employee's Benefits to HSBC Bank
Learning, training and
development practices
This kind of factor is highly
essential for the employees as
it will help them to gather the
data about the project they will
be working on and thus by that
they can give high level of
performance (Iles, Chuai and
Preece, 2010). By this, level of
motivation will be improved.
This will allow the bank to
make the employee collect and
acknowledge the information
so that they can give high level
of performance to the HSBC
bank and thus objectives of
bank can be attained.
Flexible working options This kind of factor enables the
employees to work under
comfortable working
environment and thus by this
there are high chances that
they will provide better
performance level. Besides
this this will improve the
morale status as well.
Creating flexible working
factors along with environment
will directly benefit HSBC as
this will let them improve the
relationship among employer
and employees and thus
objectives can be attained in
better and effective way.
Employee performance
management and monitoring
It is highly essential for the
employees to manage the level
of performance in order to
This kind of factor will
directly help out HSBC to
monitor and evaluate the level
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have better outcomes. This can
be done with the help of
working with management
together.
of performance and thus can
know the potential of
employees and allocate them
work as per that in order to
obtain high level of
performance (Kakuma and et.
al., 2011).
Payment and reward
management
This kind of factor is highly
beneficial to employees as it
will improve their level of
morale and will make them
avail various kind of benefits.
This kind of factor will give
various kind of benefits to the
company and among them
most important one is that
employees will give high
performance and thus long
term relation will be created.
P4 Effectiveness of various HRM practices in context of increasing organisational profit and
development
HR sector can be stated as very essential factor which can be utilised for having better
and effective outcomes in improving the level of performance and in turn they can provide
appropriate services while implementing the services. There are various kind of HRM practices
which are being utilised for managing the workers activities and thus minimise the expense of
wastes (Kraaijenbrink, Spender and Groen, 2010). This will in turn help out to enhance the level
of profits for the company at marketplace. In this aspect, contribution will be done by the HRM
practices within the productivity of HSBC. There are various kind of ways by which it can be
done by HRM practices and thus attain the level of productivity which can be understood by
following points: Training and development: In order to attain the better and effective results, training and
development sessions are being provided by the managers for the workers so that high
level of performance can be attained. If there are any kind of needs then it is highly
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essential to have training for better outcomes. This can provide help to HSBC bank in
capturing up the market share by effective services. Flexible working hours: Better and effective working hours is highly essential for the
managers to evaluate the positive relation with workers (Lewis, Packard and Lewis,
2011). This in turn can directly affect the employees and employer relation in positive
manner. Recruitment and selection: If there are effective and capable workers are being recruited
by managers which in turn will help in enhancing the level of performance for the
workers along with HSBC as well. Motivation tools: For improving the level of productivity, each and every employee will
make the improvement within workplace. There are various kind of motivational tools
which are being utilised by manager and those are like rewards, incentives and many
more. This in turn will allow them to provide better and effective services for
encouraging for the work along with enhancing the morale (Manroop, Singh and
Ezzedeen, 2014). By the help of this, HSBC will retain employees for long period of
time.
 Performance management: Under this, it is highly essential for HSBC manager for
measuring the overall performance for workers continuously. This will provide help in
reducing up the chances for creating any kind of issues for obstacles. This in turn directly
will contribute in overall growth of the economy for the company at the marketplace.
TASK 3
P5 Importance of employee relations in order to influencing HRM decision-making
Employee relations provide help in making the relationship of employer and employee
strong. This in turn will enhance the level of growth and development within the society.
Effective and healthy relationship are the necessity or a duty of the manager in order to minimise
the chances of conflicts arising within workplace. In this case, there will be no performance from
the side of employee and this will in turn affect the productivity of employees (Mitchell, 2013).
There is the relationship among the employees and employer and this relationship should be
comfortable or smooth so relationship can be much more better and smooth in nature. This in
turn will provide the better working environment in which employees can feel much more
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