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This assignment is about the management in a company. The company I choose is HSBC (Hong Kong Shangai Banking Corporation). In this company, there are a few management theories are used are discussed in this assignment.

Background information of HSBC

HSBC was founded by one man's inspiration during the late 19th century. A Scottish man named 'Thomas Sunderland', who worked in Hong Kong - during the late 19th century at the Hong Kong.

Superintendent of the Peninsular and Oriental Steam Navigation company, and from those many years of work, this one man soon came to realise the considerable demand that there was for local banking facilities, within Hong Kong and Chinese territories, and since these difficult periods of time, this man helped to establish HSBC of which at that time it was named and known as: "The Hong Kong and Shanghai Banking Corporation Limited", and both the headquarters and the first branch opened, in the year of 1865. 

Ever since the year of 1865, when the first headquarters and branch were established, throughout the late nineteenth and early twentieth century's, the institute/company took its first opportunity to grow, even further; expanding the business by establishing sophisticatedly structured network of agencies and branches, throughout Asia and by also representing many other countries (Europe, the west and so on) in which many of these branches were at that time the pioneers, or leaders in practicing modern banking.

But however there was a setback, for the bank, which came during the time of when the Second World War began, in which the business was therefore forced to close down several of branches, and had to temporarily move its headquarters to London. But as well as to this being a disadvantage to the organisation, it also ended up becoming a great advantage; a way of expanding the business by far imaginable, then the bank first imagined. I say this because from the moment of when the Second World War ended, the bank played a key role in the reconstruction of the Hong Kong economy, then the bank set about to even further diversify the geographical growth and spread of the bank. 

What type of a business is HSBC? 

Well as you may be aware that in which ever local borough you go to, visit or pass by, you are most certainly going to see a local HSBC branch, within that particular location, this is solely due to fact that HSBC is the most/first largest financial institute within the United Kingdom, not only to mention that this organisation is the world's most second largest banking and financial service provider in the world!

With a well-established business throughout the world, providing a wide variety of services, to those who seek help; financially, such services include: personal financial services (which include current and savings account, mortgages, insurance, credit cards, loans, pensions and investments), consumer finance (credit cards, consumer loans, vehicle finance, etc), commercial banking (this is aimed at small or medium-size enterprises), corporate, investment banking and markets and private banking, is all part of the lines of business HSBC operates in. 

As an enterprise, HSBC is an organisation that is capable of bringing in, a vast amount of money/income to the business, and this therefore adds an even greater sense of just how big HSBC really is; comprising over 9,500 offices worldwide. In conclusion to this point, based on precise and up-to-date information on their financial statistics regarding the total assets that was gained by the business, is simply unique in its very own way, and from the fact sheet, which I have obtained, it states that the business gained an impressive £595 

billion at 30th of June 2003, of which in simple terms this can lead us, to see the type of scale this firm operates on - in relation to the amount of customers who obtain services/financial support from HSBC, which consists of a very large amount of people, ranging from almost 100 million customers worldwide, with an even further total e-customer base of 11 million.

As a result of these figures, it's not to mention that in order for HSBC to have such/or to even gaining such an amount of both customers and revenue at the same time, can be in some terms relate to the levels or to the number of people who are employed at HSBC, which is quite a considerable amount of 218,000 employees in 79 countries and territories worldwide, all of which play a vital part in ensuring the success of HSBC. 

Human Resources Planning

This section involves information regarding human resources planning - that would include information creating a strategic plan, in having the right number of employees for a business's specific needs, which will also include information on the labour market and how they operate, within HSBC, and the effects that the following factors will have on the labour market,

Employment trends

Any sort of skill shortages;

If there is any forms of competition between employees;

The ability of labour (both internally and externally which the business (HSBC) can use as an additional resource.

In relation to this section of human resources planning, It would also involve me gathering information on how HSBC organises its labour duties, and several other factors of a wide range of information regarding the process of decision making - in relation to internal staffing, such as information on: 

Labour turnover

Sickness and accidents

Age, skills and training needs


As well to interpreting statistical information, relating to human resources planning (as this will also have a great significance and will contribute a lot, in analysing how the human resource department 

plans some of their basic activities). 

Performance management

In this section, it would involve me to put information regarding 'performance management', and some examples of the following methods that HSBC uses to manage the performance of its employees: 

Performance reviews including appraisals

Self evaluation

Peer evaluation

Target setting for individual and groups

Measuring individual and group output/ production

And to find information on just how important training and development is to HSBC, in terms of enhancing the performance of individuals and groups of employees, and the need of being aware for competitive 

businesses to link performance reviews and evaluations to appropriate training and development needs of individuals. 

The information of understanding the environment which HSBC attempts to manage the performance of their employees, in particular therefore, I would need to understand the key aspects of legislations affecting factors, such as the maximum number of hours employees can work in a week, etc, the regulations governing leave arrangements (including maternity and paternity leave) and minimum wage rates. 

And finally within this section I would need to acquire the knowledge of just how employee motivation and the significance of both financial and non-financial factors in terms of motivation, and the identification of the influence that the following motivation theories/ideas have had, on the ways in which HSBC manages its 


Frederick Taylor's principles of scientific management;

Putting the right person on the job with the correct tools and equipment.

Having a standardized method of doing the job.

Providing an economic incentive to the worker.

Abraham Maslow's hierarchy of needs

Self -actualization


Love and belonging

Safety needs

Physiological needs

Douglas McGregor's Theory X and Y 

Authoritarian management style

The average person dislikes work and will avoid it. Therefore most people must be forces with the treat of punishment to work towards the organizational.

Participating management style

Effort in work is as natural as work and play. People will apply self control and self direction in the pursuit of organisation objectives without external control or the treat of punishment. Commitment to objection is a function of rewards of achievement.

Frederick Herzberg's two-factor theory 




Work itself




Hygiene Factor

Pay and benefits

Company Policy



Job Security

I would also have to cover the responsibilities that are covered by the human resources function at HSBC, and the importance of these resources to HSBC. I would also need to understand how internal staffing information and external labour market information can help plan human resources at HSBC and how they will use this information. I would also need to understand how any possible conflicts of interest between the human resource functions that would take place, and how they will affect the business. 

And finally I would need to acquire information based on, the purpose of performance management and HSBC's approach to motivational theory, and information on one human resources job role, with examples of how the work is carried out and how it is evaluated in terms of its contribution to the business. 

Recruitment and Selection

This section will make me cover and gain a sound understanding, of how recruitment and selection is carried out and maintained, throughout one business, and it will involve me in finding out information, on how and why the decision to recruit staff are made, such factors would include: 

The growth of the business

Changing job roles within the business; 

Filling vacancies created by resignation, retirement, dismissal

And internal promotion

This section will also help me gain a good coherent understanding, of just how costly recruiting and the selection of employees can be, in terms of resources devoted to the recruitment process and any other costs that are associated with recruiting poor performing staff, and the reasons for it being important to HSBC to accurately select the appropriate individuals for an interview, which is carried out, in order of searching and selecting the right person, and or in other terms of information and the following examples on: 

The preparation of personal specifications and job descriptions

The careful planning of how, where and when to advertise these 

document or vacancies

  The identifications of the strengths and weaknesses of job applications, is obliged too - and the key implications for recruitment on the following legislations: - Race Relations Act 

1976, Equal Pay Act 1970, Sex Discrimination Act 1975 and the Disability Discrimination Act 1995.

The identification of the appropriate use of different methods of assessment such as psychometric and aptitude testing are carried out.

The identification of good interview skills

And identifying the criteria for evaluating the recruitment process.

I will also have to discuss information on how important it is to HSBC to recruit and maintain a flexible workforce, if they are to remain competitive, and information on the different bases for recruiting people for a flexible workforce, which should include information on such factors, such as: 

The different modes of employment used

Different terms and conditions

Core employees

Part time , temporary and contract labour

And finally relating to this section, I would have to understand, how contracts of employment help HSBC achieve a flexible workforce and how are put together, and the key implications that seek to protect the rights of employees relating to contracts of employment.

Training and Development

I would also need to find the differences and to distinguish between on- the- job training and off- the- job training and transferable and non-transferable skills, which arise from training programmes. And the need for me to understand how nationally recognised qualifications/-training structures, such as Investors in People and Individual Learning Accounts, contribute to how HSBC trains and develops it employees.