Human Resource Management: HSBC Case Study, Functions and Practices

This report provides a comprehensive analysis of Human Resource Management (HRM) practices, focusing on the case of HSBC. The report begins by outlining the core functions and purpose of HRM, emphasizing its role in enhancing worker productivity and achieving organizational goals. It then delves into the approaches to recruitment and selection, differentiating between internal and external methods and evaluating their respective strengths and weaknesses within the context of HSBC. The report further examines the benefits of HRM practices for both employers and employees, highlighting how these practices contribute to employee performance management, training and development, and overall organizational success. Additionally, the report explores the significance of employee relations, including the impact of employment legislation on decision-making. Finally, it provides an overview of the application of various HRM practices within HSBC, culminating in a conclusion that summarizes the key findings and implications of the analysis.

Human Resources
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 HRM function and purpose...............................................................................................3
P2 Approaches of recruitment and selection and its strength and weakness ........................6
TASK 2............................................................................................................................................7
P3 HRM practices benefits for employer and employee........................................................7
P4 HRM practices effectiveness in terms of increasing profit and productivity of organization
................................................................................................................................................9
TASK 3..........................................................................................................................................11
P5 Values of employee relations in determinant decision making.......................................11
P6 Key elements of employment legislations and its impact on decision making...............12
TASK 4..........................................................................................................................................13
P7 Application of various HRM practices in an organization..............................................13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Workers are the important part of every business organization which helps in enhancing
their productivity level. In this, manager also play vital role in bring off their performance level
at workplace by providing them better direction. This will helps firm to attain its set goals and
objectives in appropriate manner. The main benefit of human resource management is to enhance
efficiency level of the workers so that they effectively perform their task and attain competitive
advantages (Daley, 2012). Current project discussed about HSBC, which is a British
international bank which offer effective financial services to its customers as per their demand.
Various functions and purpose of HRM is discussed in this project. Along with this, different
recruitment methods and its strength and weaknesses is also mentioned in this assignment. In
addition of this, important elements of employment relation is also included which helps in
maintaining better relation at workplace. Furthermore, various HRM practices also helps in
decision making process of the company in most effective manner.
TASK 1
P1 HRM function and purpose
HRM is an effective term of recruiting, selecting and monitoring of workers which leads
in improving their performance level. It is essential part for every business to manager entire
workers at workplace which leads in attaining better results in appropriate manner. By this,
company enhance their profitability level at market place by providing quality services to its
customers. Therefore , it is also necessary for manager to treat all the employees equally which
will assist them to enhancing their productivity level (Flamholtz, 2012). By this managers can
easily retain workers for long period of time. Basically, the concept of HRM contribute in
establishing positive work environment in which workers get motivated and improve their
performance level. For attaining competitive advantages, manager have to recruit right people for
correct position at right time. It helps in motivating as well as encouraging workers towards its
work and task so that they perform effectively. Furthermore, purpose of HRM concept also helps
in making effective recruitment activities which contribute in improving their overall
performance level. Along with this there are some nature and scope of HRM are as follows:
Nature:
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 HRM is a continuous process of improving performance level of the workers at
workplace.
 It define various functions such as planning, selection, training and development,
performance appraisal and many more which enhance productivity level of the company.
 Basically HRM is an internal part of the management that contribute in enhancing
motivation level of the employees.
 HRM consider by all level to improve their productivity level.
Scope:
 HRM provide better training program to its workers for enhancing heir performance
level.
 It helps in increasing motivation level of staff by which company enhance their
profitability level.
 Basically it includes hiring selecting, of workers which helps in filling vacant place of the
company (Fulton and et. al., 2011).
In this context there are some HRM practices which are described as follows: Hard HRM: Under this HRM practice, company treat their workers as a equipments
which use for completing entire task and work. Along with this, the main aim of manager
is to motivate workers and retain them for long period of time. With the help of all these
efforts management of the company make recruitment process more effective. By this
company easily attain competitive advantages.
 Soft HRM: This type of approach is also effective in which company include its workers
as a valuable assets. By this they effectively execute all the activities of firm which leads
on attaining set goals and objectives in appropriate manner (Glendon, Clarke and
McKenna, 2016).
Apart from this there are some major function of HRM which perform by HSBC at workplace
are as follows: Workers benefits and compensation: This HRM function is more important, in which
firm offer fair compensation to its staff members which leads in motivating them. By this
they easily perform their task in effective manner and attain competitive advantages.
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Along with this, HSBC manager also provide extra benefits such as incentives. This will
increase workers commitment towards the company and their job. Employees development: This function play essential part in business organisation which
assist in rising performance level of the workers at workplace. Under this, manager of
HSBC organize some training and development programs to workers as per their needs.
By this they effectively perform their task which directly contribute in enhancing
productivity level of employees. Basically the main advantage of function is that,
company serve new and innovative services to its customers (Gruman and Saks, 2011).
By this company increase their profitability level at market place.
 Recruitment, selection, planning of workforce: It is important duty of manager to
perform this function effectively by determining requirement of workers to perform job
task. With the help of this manager undertake effective recruitment activities in order to
recruit right person for right job to enhance performance level of firm at market place.
All these are crucial factors of HRM which helps in implementing entire activities of the
company in order to attain long term benefits. By thus company enhance their positive image at
market place and attaining higher profitability level also.
Purpose of workforce planning:
It is more effective activity which define recruitment of workers at workplace. By this
manager recruit capable employees at correct position. Along with this, HSBC manager
effectively utilize their workers to attain better benefits by enhancing performance level of
workers. Basically the main purpose of HRM is to improve productivity level (Hobfoll, 2011).
This can be understood by following purpose of HRM: Motivate staff members: In order to attain better results, employees are highly motivated
towards their job. For attaining the some manager have to provide them effective
motivation so that they execute their job duties effectively and attain optimistic
outcomes.
 Improve effectiveness of workers: It is also a main purpose in which manager conduct
training and development activities to workers which leads in improving their
effectiveness towards their work.
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All these purpose of HRM aid in raising productivity level of the organisation and
workers also. With the help of this, firm increase competitive advantage.
P2 Approaches of recruitment and selection and its strength and weakness
Recruitment:
Recruitment is an effectual activity which contribute in attracting, selecting and
appointing best as well as right candidates for filling the vacant place at workplace. With the
helps of this company modify their better performance level and attain positive outcomes.
Mainly it is one of the important function of HRM so that it is important for manager to
effectively implement this process for getting skilled workforce. By this company attaining
competitive advantages inappropriate manner. In context of HSBC, they also use two main
approaches to select right candidates (Iles, Chuai and Preece, 2010).
Internal approach of recruitment: Under this approach, company give chances to
current workers to fill higher position at workplaces. With the help of this manager assess
capabilities of the staff members in order to right decision towards the recruitment activity. In
this approach manager easily make fast decision in effective manner. Along with this, there are
strength of weakness of this approaches are as follows: Strength: The main feature of this approach is that, it save money and time as well. Along
with this, it also motivate existing workers by providing them opportunities to fill higher
position. With the help of this workers get motivated which leads in making positive and
healthy work environment. It also contribute in enhancing workers morale.
 Weaknesses: The main weakness of this approach is that it reduce workers motivation
because some employees fails in getting promotion which directly hamper on
performance level of the workers at workplace. Along with this, it also increase the
chances of disputes among workers.
External approach of recruitment: This approach is more effective in which company
tries to attract as well as invite propel form outside to fill the vacant place within the
organization. By this company enhance performance level. In this context there are some
strength and weakness of this approaches are as follows:
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 Strength: By using this formulation company define new and innovative ways to perform
company activities. It helps in heighten productivity level of the firm at market place. In
addition of this manager hire skilled people which helps in saving the cost of training.
 Weaknesses: It is more expensive and also take more time for completing this approach.
Due to new culture and surrounding of the firm, workers take more time to effectively
understood. This will negatively impact on company image (Kakuma and et. al., 2011).
Selection:
It is one of the important approach which used by HSBC at the time of recruitment of
new and capable candidates. Under this, manager take final decision to select best employees to
right job place. With the help of this company get skilled workforce to perform business
activities in effective manner. In this context following approaches of selection are as follows: Systematic: Under this approach, director considered all the steps to take right decision of
overall selection process. By this, company include capable candidates to perform the job
activities. Basically it is more effectual approach which assist in attaining positive
outcomes in appropriate manner.
 Unsystematic: It is also an effective approach of selection in which manager choose an
effective CV to compare their skills and qualities as per job requirement. If candidates
pass all the aspects than manager hire them for particular job position.
TASK 2
P3 HRM practices benefits for employer and employee
Practices of HRM are important part for every business because it helps in rising
performance level of the workers. In context of HSBC, HRM practices contribute in establishing
positive and healthy work environment which define long term benefits to workers and manager
as well. Along with this, benefits of HRM practices can be understood by following points: Employees performance management: As per today's business environment, workers are
the valuable assets for every business organization because they perform their task for
improvement of the company. Thus, it is important for manager to effectively manage as
well as monitor their performance in order to enhance their commitment towards the
company. Along with this assess their performance on timely basis is also important
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because by this manager analysis the training needs of workers. By this workers easily
improve their capabilities and skills towards the job activities in most effective manner.
 Training and evolution of person: It is also an important practice of HRM which helps
in increasing knowledge of the employees. By this workers define initiatives ways to
offering their services to its customers. Basically trained employees easily understand
market trends and customers demand which directly contribute in enhancing performance
level of the firm. Developed employees contribute a lot in attaining competitive
advantages (Kraaijenbrink, Spender and Groen, 2010).
Apart from this, HRM Practices helps in improving performance level of the company.
But on the other side it also provide several benefits to workers and employees at workplace. All
these benefits are as follows:
Benefits to employees: Appreciate as well as influence workers to perform well: HRM practices is more
beneficial for workers because it helps in providing them better motivation so that they
effectively perform their duties. It also contribute in offering fair wages and benefits to
staff members which contribute in encourage them and also attain their commitment.
 Provide training: Concept of HRM practices also help workers to providing better
training and development programs as per their requirements. Training helps in
increasing knowledge and skills of the workers in which they have capabilities to find
innovative ways to completing their task. By this workers improve their qualities to
execute working activities in appropriate manner.
Benefits to employer: Create healthy and positive work environment: Concept of HRM practices help manager
to providing fair salary and wages to its workers. With the help of this manager
established healthy work environment which encourage workers at the time of
performing their activities. It assistance in increasing gain level of the organisation at
market place.
 Helps in taking right judgement: In this manager evaluate the overall process to
understand that what is going in business and its workplace. By this manager easily take
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better decision towards the company which will enhance the performance level. and also
improve their performance level.
Thus, HRM practices are more effective which contribute in improving workers
performance level at workplace by which they easily take right decision and maintain better
coordination among others.
P4 HRM practices effectiveness in terms of increasing profit and productivity of organization
Concept of HRM play vital role in every business organization because it directly
contribute in raise the profitability level of the company at market place. Along with this,
workers also get motivated by attaining fair rewards and wages. In context of HSBC, HRM
practices also help manager while making decision for company. It direct contribute in
enhancing the overall growth level and productivity level of the company at market place. By
this company reduce the chances of wastages and unnecessary expenses. By this company
enhance their productivity level and profitability level as well. In this context there are some
ways in which HRM practices help HSBC in enhancing the productivity level: Learning, development and training practices: To retain employees for long time
period, manager should conduct effective training session for their workers so that they
enhance their learning in effective manner (Lewis, Packard and Lewis, 2011). By this
employees easily improve their working styles and also find innovative ways to complete
their task. In context of HSBC, manager determine training needs of workers by
assessing their performance level. This will increase productivity level or staff members
and also enhance their commitment towards the job. This will support HSBC to enhance
their gainfulness level easily. Flexible working options: It is one of the crucial activity for business organization to
give effective working hours to workers so that they tries to put their strong efforts for
completing entire business activities effectively. With the help of this manager maintain
positive as well as healthy relation among its staff members. This will enhance
profitability level of the company at market place. For attaining better results manager
have to set effective workplace for their employees so that they easily share entire views
towards the job and company. It reduce the chances of arising issues and obstacles at
workplace.
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 Employee performance management and monitoring: HRM practices also beneficial for
employees and manager because it helps min motivating them towards their work and
activities. Along with this, manager should manage workers performance by making
better coordination between then which will enhance their commitments and loyalty
towards the company (Manroop, Singh and Ezzedeen, 2014). With the help of this
workers enhance their performance level by improving their working styles. All these
directly contribute in enhancing the profitability level of the company at market place as
compare to its competitors. Furthermore, manager also use some ways to assess workers
performance are as:
◦ Working quality of the workers
◦ Punctuality of employees
◦ Behaviour
◦ 360 degree review Payment and reward management: For motivating workers, it is important for manager
to provide fair wages and payments to its workers so that they enhance their motivational
level at the time of performing job activities. By this, manager also set better relation
with their seniors. Along with this, giving extra benefits and rewards to staff members
also boost-up their morale in which they effectively perform their work and attain
positive outcomes. Along with this, if employees perform well then it is important
responsibility of manager to provide them better reward to enhance their morale.
Furthermore there are some effective type of rewards like:
◦ Intrinsic reward: It is also an effective and intangible reward system which is related
with workers behaviour and attitude at workplace. In include satisfaction level,
achievements and so on.
◦ Extrinsic reward: It is effective which include in tangible aspects. Which the help of
this manager easily motivate their workers so that they perform effectively. It
includes, certificate, medal, monetary term and many more.
All these HRM practices are help HSBC to enhance their productivity level in which they
easily offer their financial services to its customers by understanding their demands. It helps in
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improving their performance level of the workers because it support employees at the time of
executing their job activities in most effective manner.
TASK 3
P5 Values of employee relations in determinant decision making
Employee relation play vital role in making better coordination among all the workers
and manager at workplace. With the help of this, company enhance their growth level and
capture larger market share form its rivals. For attaining better results, manager have to maintain
healthy relation which may lead in improving overall performance level of the company. In
absence of employee relation will negatively affect on the business and its workers. Along with
this, it is important for entire staff members to effectively communicate with each other so that
they effectively established healthy work environment in which employees get motivated. By
this they improve their performance level by executing entire business activities in appropriate
manner. It directly contribute in increasing performance level of the company at market place.
Furthermore, it is also important for manager to include staff members in their decision making
and give them chances to put their views and opinion. This will helps in reducing the chances of
arising any kind of issues and complexity (Mitchell, B., 2013). It also contribute in making better
relation with workers which aid in maximizing profitability level by enhancing employees
morale. IN this context there are some effective ways to improve better relation with employees
within HSBC: Better communication: It is one of the important ways to established positive relation
with employee. Workers are the important assets for business organization to attain their
set goals and objectives. So that it is important duty of manager to set better
communication channel in which all the workers effectively interact with each other. This
will enhance motivation of the employees which may leads in perform their best and
attain competitive advantages. Employee engagement activities: It is essential for director to motivate their workers in
which they organize various games and activities for them which increase their
engagement at workplace (Collins, Zhu and Warner, 2012). With the help of this,
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