Strategic HRM: Analyzing HSBC Japan's Challenges & Policy Adaptations

This case study examines the strategic human resource management challenges faced by HSBC in Japan, including issues related to language barriers, recruitment, slow decision-making, and technological standards. It explores structural strategies such as recruitment, training and development, employee relations, disciplinary action, performance management, and legal compliance. The study also addresses broader challenges like a declining market, the need for organizational innovation, and navigating the international context. The report concludes by recommending strategies for HSBC to adapt its HRM policies to overcome these challenges and improve its performance in the Japanese market, including improving service quality, modifying technical standards, and exploring alternative strategies for its business operations in Japan. Desklib provides access to similar case studies and solved assignments for students.

STRATEGIC
HUMAN
RESOURCES
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Strategics of human resources management ...................................................................................3
Strategic human resources policies..................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Human resources management refers to the plan of action that is utilized to manage
recruiting, directing, plaining , controlling and organizing function of the organization. Human
resources deal with issues employees faced with in organization. The present report will be based
on the case study of HSBC in Japan. It delivered banking and financial services. The report will
examine the issue or the situation company is facing in Japan. With the help of case study the
report will highlight the functional aspect of strategic human resource's management. Along with
this some other strategics human resources policies that company need to adapt in order to
manage the situation of declining market, innovational organization and international context in
Japan.
MAIN BODY
Strategics of human resources management
Hong Kong and Shanghai Banking Corporation limited (HSBC) in Japan. It is the oldest
bank in japan to serve the banking and financial services such as management of assets,
commercial finance, commerce services, project export business, cash management and treasury,
capital markets, securities and custody services. The International Finance and Marketplace
business provide financial resolvent to government, corporate and institutionalized clients and
private capitalist. The Global Private Banking business provides services to net worth individuals
and families with complex and international needs (Bailey, C., Mankin, D. and Garavan, T.
2018). In Japan company faced the issue of language because the people of japan prefer native
language and company used English in system. Organization have recruitment barriers in which
old employees of the company cannot be fired. The company's decision-making process is slow
it takes time in listing, discussing, and clarifying the issue as well as time-consuming. Also, face
technical issues and internet banking which was not according to the code of conduct or
technological standard of local vendors. To overcome these issues company need to adapt some
structural strategies of human resource management.
Recruitment: in order to solve the issue of recruitment barriers related top language as In japan
people usually speak in the native language that is Japanese and the operations of HSBC Bank
are operated in English language. The language gap is creating a communication related barrier
while performing the operations of the organization. In order to address this issue company could

identify the requirement of the employees in the organization. In job description company could
mention required to be known language by the candidates well as job role. Before hiring the
candidate the interviewer identify languages candidate could speck and offer the salaries
according to market value . Along with this candidate is capable of doing work efficiently as
well as effectively within the organization (Gupta, A. D. 2020. ). So the employees could make
good medium of communication on the behalf of organization. It will solve the language issue in
Japan.
Training and development: the employees used Japanese language previously when system was
using English language in context to speech communication issue company could organize
English training programs for the employees to play job role successful. In training and
development program company guide the employees to work on time and delivered fast services
to the customers. English communicational skills also provided to the employees and smart skills
to manage the work in effective manner. Through training programme employees could amend
the performance (Sultana, S.). To improve the decision-making skills company could develop
critical activity programme for the employees. Time management skill development programme
should be launched for the employees. Encourage the employees to speak English.
Employers and employees relation:the manager or employees argue on opinion and make a point
of agreement to resolve this issue company could develop good relation between the mangers
and the employee as it is developing and dynamic concept. Coordination with the team member
of the organization could lead the good relation and solve the conflict between manager and
employees. Cooperation with the management can improve the nature of surrounding with in the
organization. Company couldn't allow employees to make the agreement with the management
team. Instead of that organization can evaluate the problem and make compromise among them.
Employers and employees should contribute as asset of the organization. They can make positive
relation among the team (Hamid, Z., Muzamil, M. and Shah, S.A. 2020. ). Therefore, company
could work out on the issue of arguing on opinion.
Disciplinary action: employees non-performing on time issue in order to resolve this the manager
could direct performance of employees and the company to mange work on time. Provide

guidance to the employees and team management to make decision fast and take action on time.
Prevent conflicts among the employees with in the organization. Human resource management
keep control over the performance of the employees.
Performance management: the company consume lots of time in decision-making to provide
solution so through this strategy company could monitor the progress and evaluate the attitude of
the employees toward the work with in the organization. Company could make specific,
measurable, achievable, relevant and time bound task within the organization to resolve the issue
of time consumption.
Employment law and compliance: the employees reach to the point of agreement rather than
turn toward cooperation. To give solution to the company should form legal laws for the people
working within the organization. Proper rules, regulation and policies must be operated to
confront or ignore the legal complication within the organization. It will give assistance in
encourage equality in the occupation and maintain balance between employees as well as
employers (Rautrao, R. R. and Bhimrao, K.P.).
Controlling: as the company is facing cod of conduct, slow decision-making, time-consuming,
the organization could use another important function of human resources management to
manage, it is necessary to survive in the market. control over the activity and behaviour of
worker can lead to establishment of the standard. It will improve the errors employees will faced
while making decision. It will assist the organization to take correct action will provide services
to the global businesses. Through control company can match the protocols and technical
standard with local vendors.
From the above points it will be concluded that company could use several strategies of human
resources management to survive in the market as well as to overcome with the problems of slow
decision-making, English communication cause of this issue company pay more than market
value, time consumption, recruitment barriers etc. company could follow code of conduct
according to the people of Japan.

Strategic human resources policies
Another state of affairs company is facing in Japan such as declining market, innovatory
organization and international context. Due to lots of problems company is not getting sufficient
return and suppose to pay extra salary to the employees which is more than the market value of
Japan along with this trouble in firing out old employees working since years. In order to resolve
this problem or situation company need to adapt several other strategies human resources
policies (Jetho, P. K. 2018).
Declining market issue.
In order to resolve this issue company can use training and development programme to improve
the quality of services the employees are offering to the customers. It will make easy to interact
with the customers in a local language as system is using English speech communication . Also,
drop the salaries of the workers who are charging more than market economic value that is 20%
to 40% or could fire the unwanted employees working in the organization which could be hard
for existing workers. The code of conduct is not followed and technical standard is not matched
according to the local Japanese vendor, so company could follow protocols. To fix the issue of
declining in the market the company could allow fast internet banking system to generate
productivity as well as customer.
As the customer face the issuer of ATM service, they are not able to use ATM at other branch.
To satisfy customers company could allow users to use the auto technical machine service to
other branches. They could allow employees to make fast decision and clarify the issue as soon
as possible and avoid implementing aggressive commercialism programme for the sake of
business concern. World-wide standardization plan couldn't use in Japan as not suitable or not
according to the Japanese market so company could develop new services. Company can invest
money in new policies. Company can build good global network to solve the issue of low service
in Japan (Wang, X. 2019)
Innovatory organization issue
The process of innovation in an organization is must for the forthcoming growth. Company
could change the services according to the customer like company can provide services into
Japanese language as thy are not friendly with the English language used by the system. It will
give assistance in implementing business activity successfully. Company could modify the

protocols and technical standard to match with local standards and allow customers to use
internet banking easily and in effective manner as per the requirement of local market. The
organization can develop variety of scheme to generate new customer for the profit earning in
the business also provide low interest rate to the business organization as well as open the doors
of for the business for more opportunities (Michael, A. 2019.
Allow employees to innovate the services in a less time-consuming manner and keep them
motivating by appreciation tactics to make changes according to surroundings. As well as allow
them to make collaboration with the clients due to lack of communication with the customers.
Company could provide instant solution of the problem an improve the productivity. Company
could work according to the objective of the organizations. along with this company can launch
new services. Company can develop new mobile features as well as leaders to manage the
services and look out the problems. The company can develop software without the involvement
of the third party into the business.
International context
company can used various strategies in order to solve the issue of international context.
Company can form strong goals in order to give sufficient return. They can improve the services
and update organizational features to increase productivity. The automatic technical machine
should be modified according to the surrounding and alter infrastructure as well as mode of
communication. Time management system should be followed by the employees of the
organization. Company could avoid the involvement of other party to deliver better and fast
decision-making service without consuming hours in varying the problems with the bank
services.
If company was focusing to quit the services in japan due to lack of sufficient return then
organization can adopt other strategies for quieting the services in Japan. The company can sell
the business to the other investor who willing to buy (Nutley, S. 2018) . Another option is merge
and acquisition in which company handover the management to other firm and take assets as
well as keep their hold over the organization. Company can use initial public offering strategy to
increase the international context. In this strategies company sell the shares in the stock marten
and focuses on masking profit. Liquidity will be best for the financial institute through which the
company can track the financial health of organization and balance the business as well. The
company can mortal the money without moving the market. Company can involve partner into

the firm and can mange the business and exercise the duties after selling the business or share
with other. After selling out the business company can play major role in decision-making
regarding the organization
CONCLUSION
From the above report it has been conclude that Hong Kong and Shanghai Banking
Corporation limited (HSBC) in Japan was facing problems. So the company could use several
strategies to solve the issue of slow decision-making, the process of the organization can be time-
consuming, and service provide through ATM was not worthy according to the local people of
Japan. To overcome from this situation the HSBC could adapt some strategies such as training
and development, recruitment, employers and employees, relation, controlling, performance
management. Along with this company also face the issue in decline in market, innovational
organization and international context. Company could shut down the business in Japan if not
getting sufficient profit or modify the service according to the local communicational vendors.

REFERENCES
Books and Journals
Bailey, C., Mankin, D. and Garavan, T. 2018. Strategic human resource management. Oxford
University Press.
Gupta, A. D. 2020. Strategic Human Resource Management: Formulating and Implementing HR
Strategies for a Competitive Advantage. Productivity Press.
Hamid, Z., Muzamil, M. and Shah, S.A. 2020. Strategic human resource management. In
Handbook of research on positive organizational behaviour for improved workplace
performance (pp. 260-275). IGI Global.
Jetho, P. K. 2018. Strategic human resource management. International Journal of Management,
IT and Engineering.8(4). pp.225-230.
Michael, A. 2019. A handbook of human resource management practice.
Muhammadi, N. and Permadi, N., 2020. Strategic Role of Human Resource Management in the
Company: Strategic Role of Human Resource Management in the Company. Jurnal
Mantik. 4(2). pp.1096-1099.
Nutley, S. 2018. Human Resource Management Audits: Contributions to Quality. In Managing
Quality: Strategic Issues in Health Care Management (pp. 116-132). Routledge.
Rautrao, R. R. and Bhimrao, K.P., Strategic Roles in Human Resource Management in Urban
Co-operative Banks-a Case Study. JournalNX, pp.237-240.
Sultana, S. Strategic Human Resource Management (Book Review).
Wang, X. 2019. Strategic Human Resource Management and Corporate Performance. Modern
Economy, 10(01). p.311.
Wood, G. and Kispál-Vitai, Z. 2017. Strategic human resource management–concepts, practices
and trends. Strategic human resource management—an international perspective, pp.83-
84.