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It is a generally acceptable fact that every organisation with the intent to succeed in business will have set of objectives which outlines its aims and clear targets with some principles and chances of reality. It is majorly a set of defined target and map that is used by the management of an organisation to reach its goals. The journey to a success in business lies in the ability of the organisation to create a business objective which would help in merging the mission and strategies of the organisation into achievable targets. Travelling in an unknown territory will lead the employer and the employees into an undesirable end which is loss. However, with a tailored and detailed business objective, the company drives on a success road which will enhance the achievement of the goals and expectations of the stakeholders in general and ensure it is able to measure its progress towards its stated aims.
Some of the members of staff of the bank and some of the stakeholders do not understand how the human resources management of the bank can be used to improve the future of the bank and what relationship exists between the two. This prompted the writing of this project work which would help improve the knowledge of the stakeholders and members of staff of the bank.
It is our avowed belief that the result of this project would ginger some research interest of other researchers in this subject area within the academic and professional environments in future.
1.1 BACKGROUND OF HSBC BANK
HSBC Bank is one of the leading and largest banking and financial organisations in the world as declared by the financial times in October, 2010. The bank has its headquarters situated in the heart of London where most notable able financial institutions are based in order to pursue their financial businesses. This bank has presence in about 87 countries and territories in Europe, Africa, the Middle East, the Asia pacific regions and America.
According to the bank's website 'The HSBC Group is named after its founding member, The Hong Kong and Shanghai Banking Corporation Limited, which was established in 1865 in Hong Kong and Shanghai to finance the growing trade between China and Europe.
The inspiration behind the founding of the Bank was Thomas Sutherland, a Scot who as at that time was working as the Hong Kong Superintendent of the Peninsular and Oriental Steam Navigation Company. He realized that there was considerable demand for local banking facilities both in Hong Kong and along the China coast and he helped to establish the Bank in March 1865.
HSBC bank is listed on the New York, Paris, Hong Kong, Bermuda and the London stock exchanges with its shares being held by about 220,000 shareholders in 124 countries and territories. The bank provides different financial services to more than 100 million customers through the following four customer marketing strategies which work for the group and global businesses. These are:
Personal Financial Services
Global Banking and Markets; and
1.2 OBJECTIVE OF THE PROJECT
The objective of this project cannot be overemphasized. These include:
To carry out an understanding of the business objectives of HSBC Bank.
To carry out an analysis on Human Resources management in HSBC Bank.
To analyse the relationship between the bank's Human Resources activities and its business objectives.
To carry out a stakeholders analysis on the impact of HSBC's business objectives and its human resources.
To recommend on how this relationship can be improved upon to ensure a better HSBC bank in the future.
To stimulate research interest of other researchers within the academic and professional circles in the future.
It could also be a tool in the hand of HSBC Bank management to upgrade its system of operations in the nearest.
1.3 THE SIGNIFICANCE OF THE STUDY
Business objective is a fundamental issue in the success of any business in the whole world. Every human being that desire to take any action in life ether positive or negative action would have a set of objectives with which it would follow to achieve the desire. More so, in the business world, objectives give the business a clearly defined target.
The significance of this study consist of the end point desire of the management on training and coaching which it spends a lot of its investment on for the members of staff in order to enhance their capabilities through a strong Human Resource Management team in order to achieve its business objectives.
1.4 RESEARCH QUESTIONS
This research has a lot of questions which will help in measuring the standard of the set business objectives for the bank. These include:
What are the business objectives of HSBC Bank?
What Human Resources Management system is put in place in the bank?
What relationship exists between the bank's business objectives and the human resources of the bank and its stakeholders?
What measures can be put in place to ensure the business objectives are achieved?
Any Human Resources Philosophy?
2.0 CHAPTER TWO
2.1 SOURCE OF INFORMATION
Source of information entails the form and methods adopted to acquire the information used on the subject matter. HSBC bank is a financial institution that allows sharing of information especially when it has to do with its corporate status and research oriented purposes. Several methods of collecting information have been identified according to the type of research being undertaken. Glatthorn (1998) identifies five main types of research methods or instruments. These include:
Tests and measurements,
Through the examination of documents.
2.2 DESCRIPTION OF METHODS USED IN COLLECTING DATA
Various methods are involved in the collection of data. These as classified above are primary and secondary source. Below is an explanation of each method respectively:
The type of items in the questionnaires varies from simple, close-ended to open-ended and is based on the stated objectives. The close-ended questions carries pre-specified answers in multiple choice form in some instances.
In this way they could be quickly answered and there would hopefully be a higher response rate. (Glatthorn,1998). The open-ended items could be given to notable respondents to answer as freely as possible in their own words. This is also a way of gaining information which might not have otherwise been forthcoming because of gaps in the author's knowledge when designing the questionnaire. Items could also be set based on the Likert scale because it was important to gain information on people's attitudes and feelings about certain issues in the organisation like how the business objective could affect the members of staff.
Unfortunately, this method could not be used for this research work in view of the peculiar nature of HSBC Bank business, as staff and other stakeholders maintains a fast paced daily business schedules that hardly give room for questionnaire administration.
The aim of interviews was to obtain information from specified personnel and departments. These sources had more informed knowledge than the general public in any organisation.
This was conducted in one of the branches of the bank, precisely Canary Wharf branch of HSBC. Issues relating to the business objectives of the bank were discussed and how it affects the human resources management of the bank. Three members of staff were interviewed (names withheld, but questions and responses would be analysed in the third chapter of this project work). The responses were mostly in the same direction portraying the bank as such that upholds its business objectives, the vision and mission statement as were originally set out.
The secondary source which includes review of documents and literature were part of the source adopted in this research work on the relationship between HSBC Bank's human resource activities and its business objectives. The bank's annual report reveals some statements made by the directors. Most of these statements are a pointer to HSBC Bank's passion towards a virile human resources management approach and philosophy. This made explicit the concerns of the bank for the advancement and progress of its human resources team. Other documents from the bank reveal recent changes that occur to the human resource management of the bank. Books of renowned authors were also considered concerning the effectiveness of an organisation as it concerns shift upward or downward in business objectives. The works of management experts like Michael Porters were also used to analyse the relevance of human resource management.
2.3 LIMITATIONS OF INFORMATION GATHERING
The success of any project work is always faced with some challenges which either hinder the reality or success of the project or open other ways by which the project can be carried out. The following are the limitations which were encountered during the process of information gathering:
Restriction to the level of information divulged by the staff
Schedule of members of staff of the bank
The above are well explained in the table below:
Time is a necessity to all. The members of staff of the bank that would give accurate response to the issues raised had fixed schedules which include meetings, meeting deadlines, writing and submitting reports and preparing for the quarterly report of the bank. Time also as regards the opening time of the bank to receive visitors and the ending time allowed visitors.
Challenges also on personal time for other things which includes studying for exams, leisure time and time for other social activities.
Restriction to the level of information divulged by the staff
Every organisation and human has got limit to what they can release most especially information about their business. Same goes with HSBC bank. There is a limit to the information that can be divulged by any staff of the bank. It was also realised that some of the staff are not ready to give any information which might affect the image of the bank.
Privacy is somewhat respected everywhere as in HSBC bank. The bank has got some regulations concerning privacy which must be followed. This affected the volume of information that would have made available and used by this research work.
Schedule of members of staff of the bank
Every member of staff has its work schedule for the day which must be fulfilled in other to carry on the business of the bank. This affected the concentration or attention given to me by the members of staff especially the senior staff.
The weather is also a factor that affected the level and rate at which this project work is completed. This project was made during the winter/spring. The cold weather affects the time to visit the library and time to return.
2.4 RESEARCH APPROACH
According to Glatthorn (1998) the procedures carried out should be detailed so that if necessary the research can be replicated. He added that readers would also be able to determine whether or not the findings can be trusted.
The author found that this was especially important when designing and administering the questionnaires and also in designing and conducting the interviews. It was important that the items be valid and reliable. Interviews or questionnaires are deemed to be valid when they measure what they are intended to measure (Burns, 2000). When the responses to questions asked produce similar results under the same occasions then those questions can be said to be reliable (Bell, 1993). Establishing the reliability and validity of items was very important since an item can be said to be unreliable and therefore lacking validity (Bell, 1993). Though reliable items are not necessarily valid as they can produce constant results but not measure what they had set out to measure.
The following are the plan of action to be followed in undertaking the research:
Define the research
Design the study
Select samples and
Gather the data
Process and analyse
Present the findings
(Self designed chart)
2.5 FUNDAMENTAL ETHICAL ISSUES AND RESOLUTIONS
This project work did encounter some fundamental ethical issues that need to be addressed and given probable solutions or resolutions in order to achieve the desired goal for embarking on the project. These fundamental issues cut across the involvement of the respondents, if there was any financial incentive given to gain access to the information required, possible psychological stress, ease of access to confidential information and other matters that affect the success of the project.
Most importantly of all was gaining access to HSBC head office at Canary Wharf in London, the security officers at the reception almost denied access to the building despite going with a copy of the letter of access earlier sent to the bank. However, one of the desk officers came around and allowed me to gain entrance to the bank building. No incentive whatsoever was given to anyone. The branch manager at the Head office branch gave positive contributions likewise the desk officers who gave me the materials that were needed like the bank's interim report for year 2010, annual review report and sustainability report for year 2009. The psychological stress was minimal as most of the materials were adequate for the research work, the interviewee gave responses that assisted the analysis of the report.
2.6 BUSINESS/ACCOUNTING TECHNIQUES USED AND LIMITATIONS
This research work was more of qualitative research pattern which was constructed outside the systemic approach of a quantitative research method. The data collected to analyse this research was not subjected to any formulaic analysis for the purpose of generating the desired report. However, considerations were given to the analysis of the interim report of the banks using trend analysis.
One major limitation to the use of the trend analysis for the evaluation of the relationship between HSBC's human resource activities and its business objective is that the financial report did not reveal the actual amount expended on the wages and salaries.
3.0 CHAPTER THREE
RESULTS, ANALYSIS AND EVALUATIONÂ
This section of the project would highlight the achieved results from the tests carried out on the relationship between the bank's human resources strategy and its business objectives.
3.1 HSBC BANK'S OVERALL BUSINESS OBJECTIVES
Like any organisation, HSBC bank has set of business objectives with which it operates. HSBC's business objectives change on yearly basis. The bank's objective for year 2010 reads 'Our focus is on providing financial services which are competitive, transparent and responsive to customer needs' (Stephen Green - Group Chairman, May 2010).
According to HSBC.Com, the following are the bank's objectives which it would accomplish:
Outstanding customer service;
Effective and efficient operations;
Strong capital and liquidity;
Prudent lending policy; and
Strict expense discipline.
HSBC also stresses that commitment by employees helps to create long-term customer relationships, a keystone of the bank's profitability model. HSBC.com also states this is accomplished through attention to integrity, ethics and managerial oversight.
Its objectives are structured out of its strategic direction. As recorded in the bank's interim report for year 2010, it is as follows:
HSBC BANK'S GLOBAL STRATEGIC DIRECTION
HSBC' s strategic direction shows its position as 'the world's local bank', which put together the largest global developing markets banking business and a uniquely cosmopolitan customer base with an extensive international network and substantial financial strength.
There are three main business models which the bank has structured out for its customer group and global businesses; these show the bank's areas of natural advantage. These are:
Business with international customers - global banking and markets, private banking, the large business segment of commercial banking and the enormous affluent segment of personal financial services.
Business with local customers through commercial banking and mass market segment of personal financial services; and
Product platform for example global transaction banking for products where global scale is possible.
The HSBC Bank's global strategies include:
To align its presence with global trends
To invest in faster growing up coming markets
To focus businesses on international connectivity and scale benefits
To maintain financial strength.
ANALYSIS OF THE RESPONSES FROM THE INTERVIEW CONDUCTED AT HSBC BRANCH IN BARKING AND CANARY WHARF LONDON.
During the course of the interview, few questions were raised and due to the fact that most of the respondents were on busy schedule at work, only few of the questions raised were answered. The interview questions and responses are as follows:
"What are the business objectives of HSBC bank"?
Respondent: (Branch Manager, Canary Wharf branch)
"The bank's business objectives changes on a yearly basis and it also depend on the section of the business you are looking into e.g. sales objectives, marketing objectives and so on. However, the general objective of the bank is to maximise profit and meet up with the requirements of the bank's stakeholders".
"From the general knowledge of HRM, do you think this can be aligned with the business objective of the bank"?
"Yes. The bank operates a system that ensures the human resources department work in the vision of the bank, so everyone is made to work according to the business objectives of the bank".
"Human resources management has to do with the people and how they can work smoothly realising the set goals and satisfying the requirement of the staffers at the same time. The bank's objective is set in such a way that it satisfies the quest of the members and the stakeholders as a whole".
"What are the business objectives of the bank"?
Making profits on the business.
Satisfying the request of the customers as they are the reason why we are in business".
Improving the state of the financial sector in the country.
Working to achieve a short and long term plans of the business.
The business objectives are set into various sections which include
Sales objective - here it is to maintain a high sales of 85% every year,
Marketing objective - doing business using the right products to capture the mind of the customers.
(The interview section ended with other questions and answers which are part of the details below).
3.2 HUMAN RESOURCES MANAGEMENT IN HSBC BANK
Human resource management is the system of approach adopted by organisations to ensure that the workforce of the entity is well maintained. It is a strategic approach to the management of an organisation's most valued assets - people working there who individually and collectively contribute to the achievement of its goals. (Storey, 1995).
Human resource management is an important section in the life of a business. They are responsible for the overall performance of the staff as well as their individual issues and wellness. The productivity of the employees absolutely affects the overall productivity of the company. Therefore the comfort of the employee at the strength of the company is been catered for. Some of its functions include keeping employee records, salary/payroll, and benefit management are critical to the growth of the company's operation and its workforce.
According to Gaynor Borade 'Human Resource Management involves the development of a perfect blend between traditional administrative functions and the well-being of all employees within an organization. The staff turn-over depends heavily on level of motivation. The Human Resource Management Department is responsible for:
Understanding and relating to employees as individuals, thereby identifying individual needs and career goals.
Developing positive interactions between workers, to ensure collated and constructive enterprise productivity and development of a same organisational culture.
Identify areas that suffer lack of knowledge and insufficient training, and accordingly provide remedial measures in the form of workshops and seminars.
Generate a rostrum for all employees to express their goals and provide the necessary resources to accomplish professional and personal agendas, essentially in that order.
Innovate new operating practices to minimize risk and generate an overall sense of belonging and accountability.
Recruiting the required workforce and making provisions for expressed and promised payroll and benefits.
Implementing resource strategies to subsequently create and sustain competitive advantage.
Empowerment of the organization, to successfully meet strategic goals by managing staff effectively.
They are in charge of training and coaching in an organisation.
It is also responsible for the interdisciplinary examination of all staff members in the workplace.
Education and training programs are designed, in accordance with the Bank's objectives and strategies, in order to meet the personal and career development needs of all of its employees. In addition, classroom learning, on-the-job training and e-learning are used extensively.
All necessary technical and skill trainings are provided to employees so that they are enhanced in their roles.
Employees, who work in positions that require certification, are provided with all the educational support they need to receive their certifications, with common examples being SPK (Capital Markets Board), BES (Banking Education Certificate) and First Aid certification.
E-Academy, the bank's web-based education and training system collects all training applications under one roof. Every employee has their own password for the e-academy and since it is web-based they can access it from any place where there is an Internet connection.
HSBC does not only ensure that everyone receives the training they required, but are also to willing to minimize the amount employees are required to travel to assess their training. Employees can connect to the system remotely and do their training from the comfort of their own homes.
All the above training programmes have contributed to the Bank's achievement in its stated objective, even though the process can be very expensive.
Compensation and Benefits
Â HSBC maintains a 12 month salary payment policy.
Pension plans with corporate contribution
Transportation (Service buses for head office departments)
Loan for staff
Annual leave with pay
Below is a chart showing the employee profile of the bank to show the strength of the HR at a glance.
HRM Programmes in HSBC
Learning and development
The HR Management programme provides first hand exposure to a number of the key areas that make up HR and gives members of staff the opportunity to combine on the job learning with ongoing formal training and study.
According to HSBC Bank staff handbook, members of staff would be expected to drive their own development and training, but with the support of their placement line manager, coupled with other HR scheme, staff should have no trouble in gaining the skills and experience needed to be made ready for the first HR management appointment.
On the job training
Members of staff also acquire an incredible amount of job related knowledge through on the job training, grappling with particular issues being dealt with on a day to day basis through supervision.
Throughout the programme of on the job training, staff will undertake various projects for their line manager, work with a range of HR relationship managers, and also experience banking related roles in a non competitive environment, such as HSBC subsidiary or another area of HSBC group.
Building up a network of colleagues and friends throughout the organisation is also an important part of staff development. During the period of two years of training, staff get to meet not only colleagues on the scheme but also other graduate trainees and network with senior managers inside and outside HR. Cultivating this type of relationships will enable staff to develop career at HSBC.
3.3 THE RELATIONSHIP BETWEEN HSBC BANK'S HRM AND ITS BUSINESS OBJECTIVES
HSBC bank has a wider network which allows for international human resources management as the bank has its presence in more than a continent.
Below is a chart showing the relationship between HSBC bank's HR and business objectives.
The table above shows the link between HSBC bank's HRM and its performance from its business objectives. It shows that the perfect link that exist between HSBC bank's business and HR objectives would lead to effective practice in the bank which would in turn be a driver for the employees (motivator), this produces competent and committed employees that work towards achieving good services to the customers and this ultimately culminated in good year end financial performance.
Alan Keir, currently global co-head of Commercial Banking and head of Commercial Banking Europe has now been appointed global head of Commercial Banking with effect from 1 January 2011. He becomes a Group managing director and joins the Group Management Board chaired by Group chief executive-designate, Stuart Gulliver. This is one of the effects of good human resource management in HSBC Bank.
3.4 THE IMPACT OF HUMAN RESOURCE MANAGEMENT ON THE BUSINESS OBJECTIVES OF HSBC BANK.
The following are some of the impact of HRM on the business objectives of HSBC bank:
Leads to and enhances performance (financial, human, customer and stakeholders as a whole).
Smoothens work relationship amongst staff and between staff and their employers as well.
Helps to manage the life of every employee of the bank in a moderate and considerable manner.
The HRM system in place helps to administer the bank's policies concerning staff growth in the group.
It enhances peaceful co-existence between and the management.
Leads to achievement of HSBC Bank's objectives as the employees are willing to put in their best in return for good and enhanced working benefits.
3.5 IMPACT OF HRM ON HSBC BANK'S STAKEHOLDERS
HSBC operates in more than 80 countries and territories around the world, providing financial services to over one hundred million customers. The bank's success depends on the commitment and engagement of its employees and the satisfaction of its customers. However, there are other stakeholders of the bank that are also catered for. These are highlighted below:
HSBC Bank recruits the people regardless of age, gender, disability or ethnicity. It aims to attract employees who will be committed to a long-term career with the Group, offering a competitive reward package and career development opportunities within a strong organisation with sound values through the help of a good HRM.
The bank's annual Global People Survey acts as a barometer for employee engagement and satisfaction, with a 91% response rate in 2009. HRM practiced in HSBC is such that encourages members of staff to do more and in fact give openings for more to come in to the bank.
HSBC HRM encourages employees to take part in local volunteering programmes. This is a key community investment initiative that incorporates opportunities for employees to get involved by giving their time and sharing their expertise. Employees can also apply to become Climate Champions under the HSBC Climate Partnership.
Non-governmental organisations and charities
HSBC work closely with non-governmental organisations (NGOs) and charities globally. For example, the bank has a longstanding relationship with WWF and is currently supporting the charity in its global conservation efforts under the HSBC Climate Partnership.Â HSBC are also working with Earthwatch, The Climate Group and the Smithsonian Tropical Research Institute as part of the same programme. The bank also engages members of staff with NGOs to understand their concerns and to share our approach to managing sustainability risk.Â HSBC also participates in industry-specific initiatives such as the Roundtable on Sustainable Palm Oil (RSPO), a certification scheme for ensuring a legal, sustainable supply of palm oil.
Governments and regulators
HSBC's Group Chairman and senior executives engage with governments and politicians around the world to raise awareness of HSBC's business model and to promote regulation that encourages efficient, competitive, vibrant and stable economies. This is another initiative of the HR department of the bank and this also involves the members of staff too at various levels.
HSBC aims to offer customers around the world a consistently high quality service and experience using the benefits of scale, geographical reach and strong brand name.
This can be done through well managed employees.
Shareholders and Analysts
The HR department of HSBC engage the bank's shareholders on an ongoing basis, holding regular meetings with fund managers and analysts. In 2009 HSBC ran a programme of over 900 meetings with institutional investors, including those with a special interest in the Sustainable and Responsible Investment (SRI) sector.
Human resource of HSBC ensures that suppliers are treated in the same manner as they are also seen as part of the success story of the bank at every point in time. Staff are trained and coached on how they attend to suppliers and this in turn help the financial performance of the bank in a way.
3.6 SWOT ANALYSIS OF HSBC BANK
In this study, I adopt a SWOT analysis approach in order to further reveal the interaction between the HSBC Bank's human resources activities and its business objectives.
HSBC Bank is one of the leading and biggest banks across the globe. It has its presence almost all the continents of the world. In view of this, HSBC Bank enjoys international connectivity unsurpassed by any other bank. This has singularly aided its world trade exploits. Also, the HSBC Bank pride itself in offering simplified services to its customers through robust real-time online services where customers can obtain series of services on internet even in the comfort of their homes.
The international nature of HSBC Bank encourages more investors and creates more awareness for the bank. This also strengthens the bank's community relations as it understands more local culture and it enables people to identify with them as a local bank.
During our study, we discover that HSBC Bank has a weak pay structure. Most employees interviewed were not happy with their pay packet. Also, HSBC Bank does not offer a clear cut / robust career prospective for its staff, despite the elaborate training structure highlighted in its human resources management policy. The internal control system of the bank is slightly inefficient due to the system of approach it adopts in moving staff from one branch to the other regularly. This was viewed by some staff as "too early and inconsistent with the modern day banking practice".
HSBC Bank enjoys a huge asset base that has not depleted in the last 5 financial years and despite the current economic meltdown across the globe, it still waxes stronger in this respect. HSBC Bank remains almost the only bank that did not require a bail out during the peak of the world economic recession of 2009/10 years. One of the biggest opportunities of the HSBC Bank is the fact that more than 90% of its customers access its services through the internet. This is made possible by the bank's level of technological advancement which gives it some leverage over the old systems of operations. This opportunity has led to the bank reducing its overhead outlay / cost, especially in the area of human resources. HSBC Bank's intellectual asset in terms of staff, especially their management staff, is huge. It also has the opportunity to tap into Africa, especially in Nigeria which is now rate as the 4th growing economy in the world and the faster in Africa.
HSBC Bank operates in a highly competitive environment and hence should take advantage of increasing its presence in the current emerging economies, like some African countries. During our research work, we noted that HSBC Bank is yet to fully explore the huge opportunities that are now emerging from some African countries despite its presence in some North African countries. If the bank would not do this in good time, other banks will take up the advantage and take a shine off HSBC Bank in the region. Also, unlike Barclays Bank, HSBC Bank is lacking in the area of diversifications. For example, HSBC Bank's involvement in mortgage business is highly invisible as against what obtains with Barclays Bank. The general economic recession that affected the global economy has adverse effect on the bank's business objective as well.
HSBC PLC AND HALIFAX PLC: A COMPARATIVE ANALYSIS
Making comparison between organisations of the same status could only be fair, especially in order to give our research work some credence it deserves. That is why we decided to do a comparative analysis of HSBC Bank with another bank of the similar PLC status.
The business objective of this bank is to provide financial services which are competitive, transparent and responsive to customer needs.
The business objective of the bank is to offer services to its customers thereby reducing its cost.
There are different objectives depending on the department and the vision for the period (quarterly or yearly). For IT, HSBC's objective is to 'use the best information technology to achieve the best result in banking system'.
Halifax came up with an IT project with the objective of achieving a cost reduction of £300m. The bank can now keep a much closer eye on its spending patterns, which will help its managers make more informed purchasing decisions.
The bank has a planned order of human resources growth which recognises the need to develop the members of staff.
Halifax share the same vision with HSBC as regards the development of members of staff which has to do training, coaching and mentoring so as to bring out the best in the staffs.
Promotion of staff in this bank is done through periodic review.
Promotion of staff is done through review and standard acquaintance of every member of staff.
3.7 FINANCIAL IMPLICATIONS OF HSBC BANK'S HRM ON THE BANK'S BUSINESS OBJECTIVES
The operation of a standardized Human Resources Management in HSBC bank has accrued into the enlargement of the bank's financial status which includes its spending and the benefits that accrue to it. The benefits include:
Improved working standard of the members of staff.
Improves team participation.
Well trained staff with good relationship with the customers which leads to customer satisfaction.
Ability to meet up with individual and group challenges of the members of staff in the group.
Enhances participative and motivated workforce with structured leadership.
The effect can also be drawn out from the interim management report of the bank for year 2010 as follows:
' A change in the basis of delivering death-in-service, ill health and early retirement benefits for some UK employees generated an accounting gain of £322 million in the first half of 2009 in Total operating expenses'.
4.0 CHAPTER FOUR
HSBC bank as a bank like every other institution cannot work effectively except there is established Human Resources that manage its human resources which is basically dependent on man. Without the presence of man as a process completer in any establishment, the machineries on ground would not function. Therefore, HSBC's success lies in the strength of its work force.
This helps the bank to develop its professional competencies and to further assist the bank in the fulfilment of its mission and achievement of its Strategic Plan goals.
The HRM set up in HSBC also help as a process enhancement of Human Resources systems, processes, procedures and policies using the principles of continuous quality improvement and excellent and seamless client service and also improve on the review of the bank's system.
Human Resources will support the enhancement of HSBC's performance through competitive positioning, policies and programs, appropriate assessment, recognition and reward mechanisms.
Human Resources will develop and deliver training programs to help staff and managers accomplish the goals of the HSBC bank Strategic Plan. This is done through the alignment of goals with achievement.
Human Resources will support implementation of Affirmative Action Plans and expand diversity outreach and training efforts. This would be achieved through the effective involvement of those at the strategic level of management.
Human Resources will assist in development of appropriately future-focused labour management philosophy and supporting strategies through a well planned and managed system of operation.
Human Resources will provide support of Enterprise Resources Planning (ERP) initiatives, including change management, and systems development activities by adopting the use of new technological advanced initiatives currently in operation in all banks.
From a business and supportive definition, Human Resources Management is such a paramount and needful resource in every organisation and financial institutions like the HSBC bank. The practice of HRM according to management authors like Alan Price, Wendy Bliosi, Elton Mayor, Fredrick Taylor helps develop an organisations vision, mission statement and goals and above all, leads to achievement of the primary aim of establishing business which is to maximise profit.
Human resources of HSBC bank will lead to some futuristic vision with which the bank can continue to move forward. These include:
1. Availability of a properly defined recruitment policy in the organization that should give its focus on professional aspect and merit based selection.
2. In every decision-making process there should be given proper weight age to the aspect that employees are involved wherever possible. It will ultimately lead to sense of team spirit, team-work and inter-team collaboration.
3. Opportunity and comprehensive framework should be provided for full expression of employees' talents and manifest potentialities.
4. Networking skills of the organizations should be developed internally and externally as well as horizontally and vertically.
5. For performance appraisal of the employee's emphasis should be given to 360 degree feedback which is based on the review by superiors, peers, subordinates as well as self-review.
6. 360 degree feedback will further lead to increased focus on customer services, creating highly involved workforce, decreased hierarchies, avoiding discrimination and biases and identifying performance threshold.
7. More emphasis should be given to Total Quality Management. TQM will cover all employees at all levels; it will conform to customer's needs and expectations; it will ensure effective utilization of resources and will lead towards continuous improvement in all spheres and activities of the organization.
Therefore HSBC should give proper attention to the above mentioned point and also to protect its intellectual assets.
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The author, .net.com, 'Difference Between HR Management and Personnel Management | Difference Between | HR Management vs Personnel Management' http://www.differencebetween.net/business/difference-between-hr-management-and-personnel-management/#ixzz1E3zARWEN
The author, 'eHow.com' http://www.ehow.com/about_5068177_definition-business-objectives.html#ixzz1DPXjrcSX
The writer, ehow.co.uk, Aims HYPERLINK "http://www.ehow.co.uk/about_5475603_aims-objectives-hsbc.html#ixzz1E3tBDlaz"&HYPERLINK "http://www.ehow.co.uk/about_5475603_aims-objectives-hsbc.html#ixzz1E3tBDlaz" Objectives of HSBC | eHow.co.uk http://www.ehow.co.uk/about_5475603_aims-objectives-hsbc.html#ixzz1E3tBDlaz
www.hsbc.com/financial statements, assessed on 14th/02/11.
www.hsbc.com/history assessed on 14/02/2011.