Human Resource HSBC

View with images and charts Report On Human Resource Management Aspects Of Hsbc 1.1 Introduction:

1.1HRM: How it Works Human Resources Management involves all the management decisions and practices that directly affect or influence the people or “human resources”, who work for the organization.

In other words, Human Resource Management (HRM) is a core discipline, which deals with managing the work force in such a way as to maximize the output of the organization. It starts with planning and ends up with maintaining industrial relations that is the relationship that exists between an organization and its employees. In the early days employees were treated as simply workers who will abide by the order of the employer. As a result, the outputs of the organization were not maximized. Therefore, now-a-days organizations have become more concerned about their employees and have developed HR department that works to improve the condition of the employees and motivate them towards work. This work force is treated as an asset in today’s organization.

HRM deals with five core areas of operations. It includes Planning for organizations, jobs and people; Acquiring human resources; Building individual and organizational performance (training and development); Rewarding employees; Maintaining human resources.

It is necessary to respect and evaluate Human Resource Management activities for building an efficient, motivated and satisfied employee base. It is human resource department, which can uplift a company’s image, profitability and market share if it wants. No organization can prosper without a loyal, self-motivated and committed workforce. The purpose of this project is to get a practical exposure of Human Resource Management activities so that as a future manager we can carry out our day-to-day management responsibilities properly. By doing this project we are now able to compare what we have learned all through our course with the realistic corporate world. Project work has a significant magnitude in Human Resource Management (HRM). By doing this project we learn how to develop group cohesive for meeting the common purpose of the project. HRM requires thought and planning, where the effort is invisible and the results often taken for granted. HRM relies on a combination of tools and techniques, which enable an individual or team to plan, schedule, co-ordinate, monitor, evaluate and implement according to carefully planned and specified goals.

Businesses are beginning to understand the value of good project management - as long as it represents good value for money and doesn't absorb huge amounts of time for the organization.

1.2 1.2Scope Scope&&Limitations Limitationsof ofthe theStudy: Study:

While writing this business paper we faced a lot of limitations, problems and barriers. The first barrier was time to collect all the data on human resources activities of HSBC and one

and a half month was not enough to prepare this project. The second problem that we faced was scarcity of primary source. None of the employee would like to disclose any crucial information as they thought it would make their life worse if their supervisor know about it.

The third problem that we faced was I had no such experience on doing a business paper on such an issue like human resource management. So naturally our research is not up to the standard, as I wanted it to be.

1.3 1.3Methodology Methodology We have used both primary and secondary data in our report.  We took an interview of the Branch Manager of HSBC (Matijheel Branch). From this interview we could collect useful and course-oriented HRM information about HSBC.  We also collected some secondary data from websites, magazines and books.

Human Resources Management involves all the management decisions and practices that directly affect or influence the people or “human resources”, who work for the organization.

In other words, Human Resource Management (HRM) is a core discipline, which deals with managing the work force in such a way as to maximize the output of the organization. It starts with planning and ends up with maintaining industrial relations that is the relationship that exists between an organization and its employees. In the early days employees were treated as simply workers who will abide by the order of the employer. As a result, the outputs of the organization were not maximized. Therefore, now-a-days organizations have become more

concerned about their employees and have developed HR department that works to improve the condition of the employees and motivate them towards work. This work force is treated as an asset in today’s organization.

HRM deals with five core areas of operations. It includes Planning for organizations, jobs and people; Acquiring human resources; Building individual and organizational performance (training and development); Rewarding employees; Maintaining human resources.

PLANNING OF HRM IN HSBC Human Resources Management involves all the management decisions and practices that directly affect or influence the people or “human resources”, who work for the organization.

In other words, Human Resource Management (HRM) is a core discipline, which deals with managing the work force in such a way as to maximize the output of the organization. It starts with planning and ends up with maintaining industrial relations that is the relationship that exists between an organization and its employees. In the early days employees were treated as simply workers who will abide by the order of the employer. As a result, the outputs of the organization were not maximized. Therefore, now-a-days organizations have become more concerned about their employees and have developed HR department that works to improve the condition of the employees and motivate them towards work. This work force is treated as an asset in today’s organization.

HRM deals with five core areas of operations. It includes Planning for organizations, jobs and people; Acquiring human resources; Building individual and organizational performance (training and development); Rewarding employees; Maintaining human resources.

Acquiring (Recruitment & Selection)

Sales & Marketing Dept.

Rewarding (Performance Appraisal)

HRM

PLANNING

Building (Training & Development)

Finance Dept.

Maintaining HR (Industrial Relations)

Since the HRM Dept. of an organization does the planning for the organization, jobs and people, the decisions taken by all other departments (such as Finance, Sales and Marketing etc.) are closely related to this department.

One of the primary jobs of HRM is the formulation of a recruitment and selection policy commensurate with the organizational policy and mission of the organization. A welldesigned recruitment and selection procedure ensures the selection and recruitment of qualified candidates for job vacancies within the organization. This process differs from organization to organization.

HRM in HSBC: An Overview HRM in HSBC: An Overview

HRM in HSBC: An Overview The Hong Kong and Shanghai Bank Corporation (HSBC) Group, one of the world's largest banking and financial services organisations, had its beginnings in Asia more than 130 years ago. The Group has business operation in 81 countries round the world. This bank is divided in four different regions. According to its geographic location these divisions are USA, Europe, Africa and Asia Pacific. More than 8000 thousand people are working in these regions.

It is operating in Bangladesh since 1996. It is doing its operation in Bangladesh called “Dhaka Operation” which is known as “Asia Pacific Dhaka” all over the world. It has three main branches in Bangladesh. They are known as Anchor Branch, Chittagong Branch and Dhanmondi Branch. Among them Dhanmondi Branch has been newly launched. They have two financial booths in Motijheel and in Banani. Around 300 staffs are working for this bank all over Bangladesh.

HSBC is a very much future oriented banking corporation, which is highly organized, and employee oriented. HSBC has a very rigorous recruitment and selection procedure. They value their employee first. People love to work in this organization because they know that HSBC gives them the authority to take decisions on their own. And this authority comes to them through the highly structured and well-designed training programs. All of these training programs is launched and maintained by a highly efficient group of people.

The following pie chart shows the relative number of people working for HSBC in Bangladesh relative to the number worldwide.

Bangladesh

World wide

Recruitment & Selection Policy of HSBC

To outline the standards that, are expected of new recruits to the Bank, and the processes that will be followed during recruitment and selection.

The foundation for this policy is that recruitment should only occur when there is a specific business need to be met i.e. vacant post and that the selection of the appropriate candidate will be on the basis of qualification, performance, potential and aptitude.

Who decides on who should be recruited?

The decision as to who should be recruited is taken by the Human resource Panel, consisting of the Chief Executive Officer, Deputy Chief Executive Officer, consultant Human Resources and other Executives relevant to the position to be filled.

The Selection Criteria Candidates are selected after full consideration of the following factors: 1. Need There must be a legitimate need to increase the Bank’s hand count. In all cases the Department Manager who considers that they have a legitimate need to increase their hand count, either because an existing employee has resigned or because the expansion

has been agreed as a part of the Area Operating Plan, must submit a request to HR Officer for consideration within existing manning levels and current business priorities for approval by HR Panel. Provided that the request is in line with the Area Operating Plan and current business priorities HR Officer will begin the recruitment process.

2. Advertising It will be Bank policy to advertise its vacancies to potential candidates both externally and internally.

To meet the occasional need to recruit specialist-experienced employees, advertisements will be placed in professional journals and newspapers both within Bangladesh and overseas as necessary.

A copy of the advertisement will also be placed on the Bank Notice Board for internal candidates. In accordance with the Group Instruction Manual it must be emphasized that it is Group Policy to discourage the employment of persons whose close relatives are already employed in-group offices in the same area.

3. Qualifications Job specifications and job vacancy advertisements will indicate the experience that is required for each job. Such as, when recruiting Assistant Officer’s will be that the successful candidates will posses, as a minimum, a first-degree level of academic education.

4. Aptitude Candidates for all vacancies will be asked to undertake a range of ability tests prior to their recruitment. The Bank uses standard, professionally developed tests that are considered relevant to the positions of Assistant Officers, Officer and Executives. For more senior positions candidates may be required to undertake a wider range of ability tests or questionnaires and to achieve a satisfactory score in each test.

Candidates who successfully pass the Bank’s ability test will be invited to attend interviews with members of the Human Resources Panel and other Executives deemed appropriate in light of the particular vacancy to be filled.

5. Recruitment Administration a. References The candidate must provide CHR with the names of three referees all of who will be contacted and references sought prior to the appointments. Referees must not be members of the candidate’s family. b. Salary on commencement The starting salary for all new Assistant Officer will be the minimum of the grade for the position to which they are recruited, unless they have prior experience preferably in a foreign bank for a minimum of two years. c. Probation Period New employees will be placed on a probation period depending on their grade. On successful completion of their probationary period the employee will be appointed to the permanent staff.

6. ROT Programs HSBC Group, in line with other progressive employees, has for a number of years had programs to intensively developed a few young people who demonstrate very considerable long term potential. These programs aim to ensure that we are able to attract some of the brighter people with well balanced qualifications, graduating from universities, who have the potential to become future leaders of a very successful business which will grow to provide even more job opportunities than at present.

Therefore, whilst the Group may continue to promote suitable Officers and Executives from amongst its cadre of experienced staff who demonstrates ability and management skills; it will also periodically use the ROT scheme. This scheme will fall outside our normal promotion criteria. Existing staff that meets the academic and other criteria which is published at the time of recruitment will be encouraged to apply. A separate guide is available from HR Department that provides more details of the ROT programs.

Standards for Recruitment to Assistant Officer Grade  Age: preferable no older than28 years, unless for specialist job.  Minimum educational qualification of BCOM/BSS/BBA, preferably obtained from the Dhaka University or the IBA, Dhaka. The degree should preferably be in a discipline related to Banking or other academically challenging subject, such as o Economics o Accounting/Finance/Management/Marketing o Business Administration  Successful completion of ability tests and occupational personality questionnaire.

 Success at interview with members of the HR Panel.  Three satisfactory references.  Satisfactory medical reports.  Successful completion of the probation period.

Recruitment in Dhaka

External Vacancy advertisement placed (if necessary)

Need identified in accordance with Area operating plan

Candidates short-listed according to job Criteria Match

Candidates undertake ability tests

Candidates undertake customer service questionnaire

Candidates are interviewed by Human Resource Panel

Candidates are offered a position dependent on satisfaction

References and medical examinations

Candidate is appointed to probationary staff

Candidate is appraised during the probationary period

Candidate is appointed to the permanent staff

Sample of Request for Recruitment HONGKONGBANK, DHAKA___________________________________ Branch/Department: Position to be filled: Job Code:

Job grade:

Replacement: Yes/No____________________ New Job: Yes/No__________ Recruitment justification (in terms of work load, AOP, etc.):

Approved by Human resource Panel: Yes/No________________________ Date______________________ Action by HR Department: Authorized Signature ______________________ Date__________________

The HSBC HR panel believes that without proper training and reviewed development it’s not possible for the panel to take decision on the internal sources of recruitment. So, they gives emphasizes on the training and development portion of the HR Process. Accordingly to identify their recruitment and selection process it was necessary to describe about their training and development process. The performance appraisal/review will identify development needs and the Strategic and Area Operating plans will identify the business needs. Based on these needs appropriate training will be agreed, whether through self-study and self-development programmers, on the job coaching or structured courses. Prior to attending a training course, pre course discussion is essential between the participant and his/her manager to clarify why she has been selected to attend a specific training course, and to discuss the course contents and objectives. This may involve completion of pre-course work.

After attending the training course, a post course discussion is required to discuss the trainees’ views on the course and agree a suitable action plan. Continuous review and follow up, as well as future appraisals will help assess each employee’s need on an ongoing basis.

The Role of the HR training functions

The prime responsibility of the HR Training function is a coordinating role between RGT/GTMD and DAK. The training functions will co-ordinate the training needs each year after input via the Appraisal Performance System and Function Heads and submit the training needs for approval by HHO HHR via the operating Plan process. We are increasingly aware of the need to provide cost-effective training to meet specific requirement at the right time.

We have therefore geared ourselves to operate a more flexible approach to training. The HR training function monitors the training budget and produces regular reports, which are sent to the CEO and DCEO for expenditure and whether or not we are achieving performance improvements following training programmers via the post training action plans agreed.

The HR Department has the responsibility under ISO9002 for the following: • Collate training needs • Agree training solution with the supplier of the solution • Plan/Schedule training as appropriate.

• Record training received • Review and follow-up development.

The role of line managers in the training and development Whilst the thrust of HR Training efforts is on classroom or Group training, the importance of on-the-job learning cannot be overlooked as playing an active role in an individual’s development. It is therefore essential that structured training courses and on-the-job coaching run side by side, as the former provides the knowledge, and guidelines that are further enhanced by the latter.

The role of a manager The responsibility of training and developing staff working with them, is adequately spelt out in each Manager’s own job description. The manager clearly has to have committed involvement in his staff if they are fully benefit from their work environment and the training programmers that they may attend- be the job specific needs or development needs. The degree of interest and support given by the trainee’s superior will have a direct bearing on the trainee’s attitude and commitment to the programmer. It is therefore essential that staffs are briefed before being sent for training and debriefed on return to their duties.

The Line Managers responsibility under ISO 9002 is: • • • •

Identify and report training needs to person responsible for training in HR Department.

Identify and provide On-the-Job training solutions where applicable.

Report all training received to the person responsible for training in HR department.

Plan/schedule training as appropriate.

ISO 9002 Procedures

a) To identify Primary and Secondary Training Needs i.

Performance Appraisal: This provides for a formal, annual review of an individual’s training needs and should be used to review and re-affirm training and development needs identified throughout the year. Interim appraisals of performance, including training needs, will be carried out. Needs noted on the Appraisal form must also be reported to the person responsible for Training form must also be reported to the person responsible for Training so that appropriate action is initiated without delay and a record of the need is provided. A suggested former for this report is the “Personal Learning Log”.

ii.

As the need arises Training needs may arise when: - A staff member joins the branch/department/section.

- A staff member takes on new tasks within their current area.

- A system or procedure is introduced or changed.

- A jobholder’s performance does not meet required standards.

There is a systematic approach to the identification of training needs ∗ The Head of Section/ Department lists on a training matrix all the tasks carried out in the area. ∗ The name of each member of staff in the area is entered on the matrix. ∗ Probably with the help of the staff in the area, the Head of section/Department assesses the “ Minimum Resources required’ in terms of fully skilled staff to ensure that the task is fulfilled effectively at all times. This is entered on the matrix. ∗ Then, for each member of staff, mark on the matrix whether the person is currently capable of carrying out the task. In addition, mark where staff is approved to train others. If staff would not be expected to carry out task, ensure that this is evident from the matrix. ∗ The number of staff capable of carrying out the task is then compared to the “Minimum Resources Required.”

If there is shortfall of capable staff: Primary Training needs must be assigned as appropriate to ensure that sufficient staff are trained for that task.

If there is an adequate number of capable staff: Secondary Training Needs may be assigned for that to provide additional cover as appropriate.

b) To Monitor/Review Closely Staff development Monitoring of Staff Development starts with provision of solutions to training Needs.

This falls into two categories: i. Within the department On-the-Job training is usually the most effective method of provide technical skills training for staff joining sections or taking on new tasks. This form of training should be identified by the Head of the Section/ Department and provided without delay. ii. By line management

Normally, the provision of other forms of training, often in respect of the non-technical skills, will be at the discretion of the line management. The person should make appropriate arrangements for the provision of training, other than On-the-Job training, responsible for trainings in liaison with the Head of Section/Department as necessary.

Evidence of adequate planning/scheduling is required where a number of training solutions are being addressed in an area. The form that these plans/schedules take is the discretion of Quality Coordinators/Line Managers. Evidence of periodic review of progress against these plans/schedules is also required.

Reporting and Reviewing Training Received It is the responsibility of the Head of Section/Department to confirm in writing to the person responsible for training, the agreed staff training has been completed and whether it has been effective in meeting the original need. Training log may be used for this purpose.

The Training Record of the staff member is updated accordingly. These Training Records may be saved on PC. The matrix is Updated regularly (and evidence by initial) by the Head of Section/Department to ensure needs are systematically and regularly reviewed.

At HSBC, their training programs are based on the job natures and the performance of the employees. Their goal is to attract, retain and motivate the very best and to do that they support training, development and business education through the following:

ďƒ˜

Internal Training Programs HSBC provides Internal Training Programs to their employees. Most of the times they bring the trainers to train the employee locally. The trainers come from overseas. The head office in Hong Kong controls the total program. This training is mandatory for every employee of the bank. Seminars, workshops and locally tailor made training on the variety of topics are offered directly by HSBC Training and Development Department at their training center located at Motijheel.

 External Courses Frequently they send their higher-level employees overseas to get External Training Courses.

A specific group of trainers provide these trainings. These groups of trainers are working world wide to provide trainings. Now a day, HSBC in Bangladesh bring s the trainers in the country to train a group of people together to decline cost margin. Job related courses, seminars, workshops and conferences are developed and presented at HSBC Offices in Asia.

These programs are also conducted at Group Training and Management Development Center at Bricketwood, UK. They maintain the standard of these trainings by RMT training program, which is mandatory for the people in Britain who are related in banking jobs and want to establish their career in this field. Before HSBC only British Council in Bangladesh provided this RMT program.

 Resident Management Trainee Program(RMT Program) The Resident Management Trainee Program (RMT Program) aims to select a group of high potential executive trainees and provide them training and development opportunities. The RMT program ensures that successful applicants with the right training will have the ability and potential to reach the highest level of management within HSBC Bangladesh.  Distance Learning Web based and multimedia self-study programmers available through Internet and Multimedia Learning Centers located in HSBC offices. This program helps the employee to get their appropriate trainings without hampering their jobs and time.

 Role Effectiveness Training

This training program of HSBC is designed to develop the role of the certain employees who showed their capability and efficiency on their assigned jobs. HSBC has launched this program as a part of its continuous learning system.

Conclusion As we have mentioned before It is human resource department, which can uplift a company’s image, profitability and market share if it wants and no organization can prosper without a loyal, self-motivated and committed workforce. HRM relies on a combination of tools and techniques, which enable an individual or team to plan, schedule, co-ordinate, monitor, evaluate and implement according to carefully planned and specified goals.

HSBC has acquired 364 banks. Strictly adhering to the selection and recruitment policy has enabled this bank to recruit the best people from the job market. Along with this best breed, pragmatic training and development policy of the bank has sharpened the manpower to achieve its own goal as well as the goal of the organization. The highly qualified and trained manpower of the bank has made it possible to stand out as one of the most successful banks having outstanding performance.

1.4 Recommendations ďƒ˜ Although there is a rigorous recruitment and selection process, HSBC can improve its selection decision by implementing psychological tests that other big organizations (like Grameen Phone) does.

ďƒ˜ HSBC can prepare a questionnaire containing questions regarding personality traits to identify the right person for the right job (an arrangement that British American Tobacco has).

 HSBC can higher people from other organizations for part time positions if such arrangement does not harm its organizational goals. In this case, the benefit that HSBC will get is that it will be able to know about the organizational structure of other successful organizations. And thus it will be able to enrich its own organizational structure.

 In the cases when HSBC needs to make prompt selection decision, it can take help from the agencies that will work on its behalf to select the right person for the right position.

 Finally HSBC can arrange informal sessions where the Top Management will get a chance to know about the employee motivation, their satisfaction level and most importantly their efficiency level by asking informal but job related questions.

REFERENCES: Keith Davis, Organizational Behavior: Human Behavior at Work, Stephen P Robbins, Organizational behavior. www.google.com www.HSBC.com