Strategic Human Resource Management Practices at ASB Bank New Zealand

This report provides a comprehensive analysis of strategic human resource management (SHRM) practices at ASB Bank New Zealand. It begins with an overview of ASB Bank, its establishment, and its commitment to innovative financial solutions. The report's purpose is to examine the application of SHRM principles within ASB Bank, utilizing secondary research and a case study approach. Key findings reveal that HR personnel at ASB Bank act as strategic partners and employee champions, implementing both on-the-job and off-the-job training programs. The report explores the applicability of the Causal Model and the Human Resources Value Chain Model to ASB Bank, highlighting the benefits and challenges associated with each. The report examines how ASB Bank fosters leadership and talent to enhance strategic performance and meet its business objectives. The report also provides detailed insights into the roles of HR personnel, the use of the organizational value chain, and the advantages and disadvantages of implementing the Causal Model and the HR Value Chain Model within ASB Bank, along with how they align with the bank's strategic goals. This report is valuable resource for understanding the integration of SHRM within a major financial institution.

ASB Bank New Zealand 1
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ASB Bank New Zealand 2
Executive Summary
Brief Background of ASB Bank New Zealand
ASB Bank was established during 1847 in New Zealand. It contributes in the generation of
innovative and diversified financial solutions for target customer groups.
Purpose of the Report
The purpose of the report is to understand the concept and application of strategic human
resources management (SHRM) in a practical case like ASB Bank Limited.
Data Collection Methods
Both secondary and case study based research is undertaken for collection of information from
diversified literary sources like books, journals, articles, reports and websites.
Key Findings of Questions
- The human resources personnel in ASB Bank act as strategic partners and employee
champions.
- Both on and off-the-job training programs are constituted by the human resources
managers.
- Both Causal Model and Human Resources Value Chain Model gain applicability to the
firm.
- ASB Bank gains different benefits based on designing the human resources strategy.
- Both vertical and horizontal integration associated to human resources functions gain
applicability for ASB Bank.
- ASB Bank reflects leadership and strategic effectiveness based on the application of
different metrics.
Conclusions based on key findings
ASB Bank contributes in the fostering of leadership and talent that ideally contribute in
enhancing the strategic performance of the firm and in meeting of its different business and
corporate objectives.
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ASB Bank New Zealand 3
Table of Contents
Introduction.................................................................................................................................. 4
Overview of ASB Bank New Zealand.......................................................................................4
Purpose of the Report..............................................................................................................4
Data Collection Methods in use...................................................................................................4
Findings....................................................................................................................................... 4
Findings to the First Question..................................................................................................4
Findings to the Second Question.............................................................................................6
Findings to the Third Question.................................................................................................9
Findings to the Fourth Question...............................................................................................9
Findings to the Fifth Question................................................................................................10
Conclusions............................................................................................................................... 11
References................................................................................................................................ 12
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ASB Bank New Zealand 4
Introduction
Overview of ASB Bank New Zealand
ASB Bank Limited based in New Zealand acts based on its diverse group of subsidiaries
provides a range of different types of innovative financial solutions for its customers both
individual and corporate. The company was developed during 1847 and is headquartered in
Auckland (ASB Bank , 2019).
Purpose of the Report
The purpose of the report is to carry out secondary research for the generation of effective
findings associated to the strategic human resources management (SHRM) practices carried
out in ASB Bank. It would thus focus on integrating both theoretical and practical aspects of
SHRM.
Data Collection Methods in use
Data collection for the report would be carried out based on the application of both secondary
research and case study oriented research activity. Secondary research is employed in the
report based on study of books, journals, articles and websites associated to strategic human
resource management concepts and the ASB Bank. Application of secondary research
contributes in the gaining of authentic data sets in a faster and cost-effective manner (Lew,
2018). Likewise, the report being based on ASB Bank Limited, case study research activity is
also focused on being employed. Case study research like secondary research accounts to be
time and cost-effective in nature. It carries out research from different perspectives for helping in
the gaining of qualitative and in-depth data sets (Yin, 2017).
Findings
Findings to the First Question
a) Dave Ulrich suggested four main roles that human resources personnel based in an
organization tend to enact. The HR Roles as provided by Ulrich are presented in the form of a
matrix.
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(Long & Ismail, 2008)
In terms of being a Strategic Partner, the human resources personnel act as strategic partners
to the management of the organization such that they contribute in the execution of the different
strategies. In terms of acting as an Administrative Expert, the human resources personnel are
required to provide expert opinion for enhancing the level of expertise and efficiency in the firm
based on enhancing of service and product quality and also in reducing the level of operational
and administrative costs. In terms of acting as Employee Champions the human resources
personnel essentially focus on highlighting the issues faced by employees to the senior
management and also to work with and for the employees. The same increases the level of
commitment and competency level of the internal people. Finally, the human resources
personnel involved in an organization are required to act as effective change agents that initiate
and support the change process and also help the firm in meeting the change objectives (Long
& Ismail, 2008).
The Human Resources personnel at ASB Bank based in New Zealand act as Employee
Champions in that they encourage the management for developing and sustaining policies for
helping the employees earn a range of different types of benefits like flexible work practices,
effective leaves and insurance benefits amongst others (ASB Bank Limited, 2019). Further, the
human resources personnel at ASB Bank are also required to act as effective Strategic Partners
with the management in the implementation of the Human Resources Information Systems
(HRIS) needed for strategic decision making (ASB Bank , 2019).
b) The organizational value chain of M.E. Porter reflects different types of human resources
functions like that recruiting, training and motivating individuals in an organization (Becker
Professional Education, 2017). The human resources team in ASB Bank encourages job
seekers in earning the advantages of a 3D App that acts as an interactive and digital tool
helping individuals in writing resumes and also provides interview tips to them (Finextra , 2014).
The human resources department at ASB Bank contributes in development of human resources
through the designing of both on-the-job and off-the-job training programs that serve in
enhancing the product and service knowledge of individuals while also helps them in mapping
their career paths in the organization (ASB Careers, 2019). The human resources department
together with the management of ASB Bank focuses on motivating the staffs through the
designing of effective incentive programs that help staffs in earning of bonus. Moreover, the
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organization also focuses on recognizing the staffs for their actions in terms of generating
awards and accolades for their customer servicing functions (ASB Careers, 2019).
Findings to the Second Question
Two specific models associated to Strategic Human Resources Management (SSHRM) are
identified as the Standard Causal Model and the Human Resources Value Chain.
The Standard Causal Model is reflected as follows.
(Guest, Paauwe, & Wright, 2012)
The Causal Chain in the model ideally commences with the designing of effective strategies and
thereby integrates the same with human resources practices and outcomes for bringing about
effective internal and also financial performances in the long run (Guest, Paauwe, & Wright,
2012).
ASB’s strategic objective is to position the bank as the leader in customer servicing and also to
gain needed awareness in the target market regards to its service excellence. For becoming a
potential brand along New Zealand’s banking and financial market it continually focuses on
training and developing its human resources’ potential such that the same helps in the
generation of differentiated product and service offerings to its target customers. Working on
developing its brand position in New Zealand’s banking sector is taken to help ABS gain on
needed revenue and profitability in the long run (ASB, 2018).
The application of the causal model regards to business organizations confers some distinct set
of advantages and disadvantages.
Advantages
- The causal model ideally helps in aligning the business objectives of the organization
with that of the competencies, expertise and knowledge of the organizational staffs. It
thus helps in the development of a proactive work culture wherein the people are
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focused in meeting customer servicing objectives and also render innovative and also
differentiated banking solutions and products.
- Again, the application of the causal model also reflects the extent to which staffs
cooperate with each other and also with the management body for fulfillment of strategic
objectives in a committed and collaborative fashion.
- The causal model proves advantageous in that it strongly focuses on the development of
the internal environment of the firm such that the same helps in motivating and
influencing the attitudes and behaviors of the staffs for meeting of business and strategic
objectives of the firm (Katou, 2011).
Disadvantages
- The causal model is argued in that it renders greater importance to the aspect of human
resources such that the same is observed to potentially influence the strategic
performance of a business institution. The company management is thereby required in
heavily investing for enhancing and sustaining the motivation level of the employees
such that the same helps in encouraging the staffs to work in a committed fashion for
meeting of business objectives.
- The causal model is further argued in that the same enhances the position of the trade
unions in the firm wherein they tend to collectively bargain for the growth in
compensation and welfare of the staffs to help them work in a committed fashion. The
same however tends to enhance the business and administrative cost of the firm (Katou,
2011).
The Human Resources Value Chain Model
The Value Chain Model associated to Human Resources like the normal value chain model is
essentially divided along primary and support functions. The primary functions for the HR Value
Chain model are mainly associated to diverse functions like recruitment of personnel, the
process of familiarizing with the existing staffs and managerial communities, on-the-job
experience of the personnel, performance management and evaluation and finally career
planning functions. On the support side the HR Value Chain Model encompasses factors like
internal communication practices, training and development of the internal people, management
of compensation and also lifestyle of the internal members and finally the provision of different
types of facilities and carrying out of administrative functions (Shermon, 2016).
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(Shermon, 2016)
The application of the Value Chain HR Model applied to ABS Bank reveals that the company
focuses on receiving of online applications that are thereby screen by the human resources
managers based on parameters like qualification and experience based on which the selected
candidates ideally suitable for the different roles are summoned for the interview. Further, the
bank also runs a graduate program named as ‘Future Me’. The ‘Future Me’ program is
essentially developed for a two year period in which the newly appointees and also the interns
would tend to familiarize them with the business units of the bank and also get needed input
from banking professionals for developing their careers. Further, the new recruits are also
encouraged in participating along ‘on-the-job’ training programs that helps them in earning
needed experiences while learning. Other support functions include the development of
effective compensation scales and also designing effective incentive and reward programs for
motivating the individual members through managing their lifestyle in terms of designing a
flexible workforce (ASB Carrers , 2019).
Advantages and Disadvantages gained based on the incorporation of the HR Value Chain
Model by ASB Bank are reflected as follows.
Advantages
- The HR Value Chain Model ideally contributes in carrying out of workforce planning
functions while also designing the compensation and incentive structure for the firm. The
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same also helps in effectively contributing to organizational design and encourages
internal mobility.
- It serves in engaging and motivating the internal workforce for meeting of group and
institutional objectives in a collaborative and efficient fashion.
- It serves in enhancing the performance metrics for the firm while also in uplifting the
workplace standards (Smith, 2013).
Disadvantages
- The breaking up of the human resources functions of an organization along primary and
support types is held to affect the totality of human resources aspect of ASB Bank. It
thus tends to render greater and lower significance to the human resources functions in
terms of evaluating whether the same is primary or of support type.
- Further, the division of the functions into primary and support aspects is considered to
be hypothetical in nature which in turn invites further arguments based on the difference
in importance attributed to the different functions along different industries (Smith, 2013).
Findings to the Third Question
The different benefits regarding the designing and thereby implementing a human resources
strategy in ASB Bank are underlined as follows.
- ASB as a banking organization based on designing and implementing a human
resources strategy is taken to gain needed potential for easily adapting to changing
environments in that the period required from conception of a strategy to its final
execution by the management becomes les.
- Further, ASB based on the designing and implementation of human resources strategies
is taken to meet the needs and expectations of the customers in an effective fashion.
The same becomes a possibility owing to the fact that the strategies associated to
customer servicing functions are now transformed into potential policies and practice
sets.
- The designing and thereby the implementation or execution of the human resources
strategy also contributes in helping ASB Bank enhance its financial and marketing
performance compared to its competitor firms in the New Zealand banking industry
(Guest, Paauwe, & Patrick, 2012).
- Again, the designing and execution of the human resources strategy by the banking
institution also serves in designing of effective teams among diverse stakeholders both
inside and outside the firm in meeting the vision and mission objectives of the firm.
- Finally, the designing and implementation of human resources policies for ASB Bank
helps its managers in both evaluating and also monitoring the performance and
efficiency level of the organization in meeting the strategic objectives and planned goals
(Heesen, 2015).
Findings to the Fourth Question
The vertical integration of HRM initiatives can be essentially generated by ASB Bank based
along three main aspects like resourcing, learning and development and finally in terms of
rewarding.
In terms of resourcing, the organization focuses on strategizing the recruitment and selection
functions based on the employment of the digital and online environment such that the right
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category of qualified manpower is selected which contributes in the apt meeting of both
performance and customer satisfaction objectives.
In terms of learning and development initiatives, the human resources department focuses on
designing just-in-time training modules that ideally focus on percolating effective information to
the new recruits and other interested groups associated to changes in business and customer
servicing policies. The implementation of the training process earns needed success in that the
same meets productivity, customer servicing and also cost reduction objectives (Noam, 2018).
Finally, in terms of designing and executing effective compensation and rewarding schemes the
level of productivity, performances and efficiency of the individual staffs are focused on being
increased. The level of rewards and incentives are decided and aptly matched with the
standards and benchmarks associated to performance qualities and degree of customer
satisfaction based on the quality or nature of customer services generated (Noam, 2018).
Regarding horizontal integration, the human resources management of ASB Bank is required in
generating effective bundles of strategies pertaining to Human Resources. The bundling of the
strategies is required to be carried out in that the same are identified to be mutually reinforcing
in nature. Herein, the human resources manager is required to decide and evaluate the level of
matching of the different activities such that the same helps in forming of effective bundles. In
that the banking organization focuses on rendering quality customer services and also in
providing of innovative and differentiated financial solutions the same aspects are kept into mind
while reviewing the performances of individuals and teams working in the organization. Herein,
an effective bundle can be organized between the performance appraisal or review activities
carried out by the human resources personnel based on set standards with generation of quality
feedback and also in designing of just-in-time training modules for covering the performance
and productivity gaps. Likewise, another effective bundle can also be generated based on the
linking of financial and non-financial incentives and designing of performance recognition
programs. The above technique is evaluated to help in the designing of high-performance and
increasingly committed institutional systems (OECD, 2018).
Further, another critical aspect associated to horizontal integration is to focus on convincing the
top management consisting of directors and the high level managers about the need of forming
bundles. The management needs to understand the productivity behind the formation of
different bundles (OECD, 2018).
Findings to the Fifth Question
The significant impacts of HR Strategy on the overall corporate performance of an institution
can be understood based on the incorporation of five different HR Metrics identified as follows.
- The review of current performances of an organization based on meeting of set goals
stands to be an effective metric for understanding and evaluating the effectiveness of the
execution of the HRR Strategies regards to individual and group performances
(Mondore, Douthitt, & Carson, 2011). For ASB Bank the level of current performances
are outlined as under.
Net profit after Taxation or NPAT for ASB Bank during 2017 amounts to $593 million
which further reflects a year-on-year increase by around 13 percent. The bank apart
from reflecting solid financial growth also highlighted the existence of stabilized revenue
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and profit margins. Again, the ratio of cost to income level for the firm amounted to 34.1
percent during 2017 that recorded an improvement of around 160bps (ASB Bank Limited
, 2019).
- Again, Critical Competencies is identified to be an effective HR Metric that contributes in
evaluating the existence of human resource competencies in the organization and its
impacts on the total business performance and productivity of the firm (Mondore,
Douthitt, & Carson, 2011).
The management of ASB Bank based in New Zealand focuses on fostering a leadership
culture inside the organization based on the development and implementation of the
‘Leadership in Action’ or LIA Program. The fostering of a leadership environment is
considered to be congenial for fulfillment of performance and productivity objectives of
the organization and also in reducing existing costs and developing effective
relationships both along the internal and external business sphere with different
stakeholders in a mutual fashion. The impact of the LIA Program is noted such that it
helped around 80 percent of normal participants and around 95 percent of managerial
participants to carry out leadership ordeals in a confident fashion (ASB, 2019).
- In terms of Critical Experiences, the degree of impacts of critical level of experiences
and competencies gained based on an individual’s career path ideally contribute in
influencing the performance and productivity scenario of the firms (Mondore, Douthitt, &
Carson, 2011).
Regarding the existence of Critical Experiences, the career path of the Chief Executive
Officer of the company, Vittoria Shortt can be viewed. Prior to joining ASB, she held
leadership positions at the Commonwealth Bank of Australia or CBA. Her long career
path as a banker from 2002 with also potential qualifications like being an MBA and also
a Chartered Accountant she is held to help ASB sustain its leadership position in New
Zealand’s banking sector (ASB Bank , 2019).
- Another effective metric is identified to be the existence of Overall Talent in the
organisation. It focuses on evaluating the overall health of the firm in terms of the talent
population and aims to carry out the measure on a scale of 0 to 100 percent (Mondore,
Douthitt, & Carson, 2011).
The existence of a significant talent pool in ASB Bank ideally contributes in the
generating of innovative solutions for the target consumer groups.
- Potential is also identified to be a key HR Metric that is employed for assessing the
potential of individuals based on the level of senior leadership (Mondore, Douthitt, &
Carson, 2011).
The development of a leadership culture inside the bank based on the designing of
leadership programs and also governed by potential leaders with significant leadership
experiences, ASB thus reflects the existence of a considerable leadership potential (ASB
Bank Limited, 2019).
Conclusions
ASB Bank reflects the fostering of a leadership and talent nurturing culture which in turn ideally
contributes in meeting of its strategic performance objectives. The human resources managers
in the firm ideally focus on taking care of its talent pool such that the same helps in the
generation of innovative and differentiated financial solutions while also taking care of the needs
of the customers in an effective fashion. The same results in sustained level of high
performances and customer satisfaction for the firm.
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