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HUMAN RESOURCE MANAGEMENT IN HSBC

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BANK

PRESENTED BY

DHANESH. DEEPAK. VYAS.

ROLL NO: - 15

T.Y.B.B.I

SUBMITTED TO

UNIVERSITY OF MUMBAI

FOR THE YEAR 2011-12

UNDER THE GUIDENCE OF

Ms POOJA K KHANDHADIA

Mrs. SHILPA CHEDDA

MAT. KASHIBEN MOTILAL PATEL

SENIOR COLLEGE OF COMMERCE


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CERTIFICATE

This is certify thatMR. DHANESH D VYAS ofTY.B.B.I BACHELOR OF BANKING

AND INSURANCE STUDIES -- (2011-12) has successfully completed the project on

HUMAN RESOURCE MANAGEMENT IN HSBC BANK under the guidance of Ms.

SHILPA CHHEDA.

Project Guide ________________ Principal

(Prof. Shilpa Chheda)

External Examiner ________________

Internal Examiner ________________

Course Co-ordinate


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DECLARATION

I declare that I have completed the project on Human Resource

Management in HSBC Bank in the academic year 2011-12.

The information submitted is true & original to the best of my

knowledge.

Signature

DHANESH.D.VYAS

(T.Y.B.B.I) Vth Semester

Date: 10th Nov, 2011.


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CERTIFICATE FROM THE GUIDE.

This is to certify that VYAS DHANESH DEEPAK has completed the research

project on HUMAN RESOURCE MANAGEMENT IN HSBC BANK. under by

guidance and supervision, and submitted the project work as laid down by

University of Mumbai. The material that has been obtained from other sources is

duly acknowledged. It is further certified that the work or its part has not been

submitted to any other University far examination under my supervision. I consider

this work worthy for the award of the degree of Bachelor of BANKING AND

INSURANCE Studies.

_________________

Mrs. L. R. Visaria Prof.

SHILPA CHHEDA

(In charge Principal) (Course Coordinator)

_________________

Internal Examiner External Examiner

_________________

Prof. Shilpa Chheda


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ACKNOWLEDGEMENT

I am thankful to Prof. Ms POOJA and Mrs. SHILPA for their valuable

guidance in successful completion of this project.

My over riding debt due to Our Principal & co-ordinator without whose

support this activity would not be successfully completed, last but not

the list I cannot forget my friends & parents whose constant

encouragement & support made this task a happy job.

Signature

DHANESH.D.VYAS.

(T.Y.B.B.I) Vth Semester


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INDEX

SR.NO CHAPTER PG NO.

I SECTION -I : BANKS1- INTRODUCTION TO BANKS 10-112 - HISTORY OF BANK 11-123 - TYPES OF BANK 12-144 - FUNCTIONS OF BANKS 14-16

II SECTION -II : HUMAN RESOURCE MGT1 - INTRODUCTION 17-20

2 - THEORIES OF HRM 20-243 - STRATEGY 254 - FUNCTIONS OF HRM 26-275 - EVOLUTION OF HRM 27-286 - SCOPE AND LIMITATION OF HRM 28-35

III SECTION- III : HRM IN BANKS IN 21st CENTURY 35-43

IV SECTION -IV : INTRODUCTION AND HISTORY OFHSBC BANK 44-64

V SECTION - V : HR IN HSBC 64-79VI QUESTIONNAIRE 80-81

VII CONCLUSION 82


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OBJECTIVES OF THE STUDY:-

To study Human Resource Management in Detail.

Accomplish the basic organizational goals by creating and utilizing an ableand motivated workforce.

To establish and maintain organizational structure and desirable workingrelationships among all the members of the organization.

Develop co-ordination among individual and group within organizable tosecure the integration of organization.


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SCOPE OF THE STUDY:-

THE SCOPE OF THE STUDY IS TO UNDERSATND THE CONCEPTOF HUMAN RESOURCE MANAGEMENT and WHAT ARE THE

FUNCTIONS FEATURES ACADEMIC THEORY.

EVOLUTION OF HUMAN RESOURCE MANAGEMENT

LIMITATIONS OF PROJECT STUDY:-

HRM has its own limitations, though HRM has been in practice quite sometime now, HRM is of recent origin and lacks universally approved academic

base.

By creating welfare officers under section (49) of the Factories Act, 1948.The government has done more harm than good because the statutory

officers have not won the support of line management in their organization.


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A large number of industrial laws have resulted legalistic approach to labourrelations and has made personnel executives dependent on lawyers.

Personnel mangers are busy with litigation and have no time to attend other

aspects of their duties.

The job of the personnel officer is still considered by a large number ofemployees as a fire fighting function only to head off union troubles. The

rigid and unchanging attitudes of the personnel officers have been a major

factor hindering the growth of the HR function of personnel function

Methodology of the study:

The collection of data refers to a planned gathering of information relevant to

the subject matter of the study from the units under investigation the method

of collection of data depends mainly upon the nature, objective and scope of

the inquiry on one hand and available of resources and time on the other

hand. Data may be classified into primary and secondary data, depending

upon the nature and mode of collection.

Mainly the data is collected from:

1. Primary data

2. Secondary data

Primary data:Primary data is collected from the prospective banks, villagers and the

staff of HSBC bank.


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Secondary data:Secondary data collected from the published magazines and websites to

collect the data.

The secondary data is collected from the following sources.

Journals Published books

Website

INTRODUCTION AND MEANING OF BANKING:-

Banking in India originated in the last decades of the 18th century. The first banks

were The General Bank of India, which started in 1786, and Bank of Hindustan,

which started in 1790; both are now defunct. The oldest bank in existence in India

is the State Bank of India, which originated in the Bank of Calcutta in June 1806,

which almost immediately became the Bank of Bengal. This was one of the three

presidency banks, the other two being the Bank of Bombay and the Bank ofMadras, all three of which were established under charters from the British East

India Company. For many years the Presidency banks acted as quasi-central banks,

as did their successors. The three banks merged in 1921 to form the Imperial Bank

of India, which, upon India's independence, became the State Bank of India.


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The word bank was borrowed in Middle English from Middle French banque,

from Old Italian banca, from Old High German banc, bank "bench, counter".

Benches were used as desks or exchange counters during the Renaissance by

Florentine bankers, who used to make their transactions atop desks covered bygreen tablecloths.

One of the oldest items found showing money-changing activity is a silver Greek

drachm coin from ancient Hellenic colony Trapezus on the Black Sea, modern

Trabzon, c. 350325 BC, presented in the British Museum in London. The coin

shows a banker's table (trapeza) laden with coins, a pun on the name of the city. In

fact, even today in Modern Greek the word Trapeza () means both a tableand a bank.

Definition:

Banking is one of the key drivers of the economy. Banking provides

a safe place to save excess cash, known as deposits. It also supplies

liquidity to the economy by loaning this money out to help businesses grow

and to allow consumers to purchase homes, cars and consumer products.

Banks primarily make money by charging higher interest rates on their

loans than they pay for deposits.

History:

The Allahabad Bank, established in 1865 and still functioning today,is the oldest Joint Stock bank in India.

In Calcutta, in the 1860s.


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Foreign banks too started to arrive, particularly in Calcutta, in the1860s.

The Comptoire d'Escompte de Paris opened a branch in Calcutta in1860.

Another in Bombay in 1862; branches in Madras and Pondicherry,then a French colony,

followed. HSBC established itself in Bengal in 1869.

Punjab National Bank, established in Lahore in 1895, The period between 1906 and 1911, such as Bank of

India, Corporation Bank, Indian Bank, Bank of Baroda ,Canara

Bank and Central Bank of India

Types of banks in India:

The History of banking in India dates back to the early half of the 18th

century. 3 Presidency Banks that were established in the country namely the Bank

of Hindustan, Bank of Madras and Bank of Bombay can also be referred to as

some of the oldest banking institutions in the country. The State Bank of India that

was earlier known as the Bank of Bengal is also one of the oldest in the genre. To

know about the types of banks in India, it is necessary that we first comprehend the

banking system so as to be able to distinguish about its various types.

All types of Banks in India are regulated and the activities monitored by a

standard bank called the Reserve Bank of India that stands at the apex of the


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banking structure. It is also called the Central Bank, as major banking decisions are

taken at this level. The other types of banks in India are placed below this bank in

the hierarchy.

The major types of banks in India are as follows:

Public sector banks in India -

All government owned banks fall in this variety. Besides the Reserve Bank

of India, the State Bank of India and its associate banks and about 20 nationalizedbanks, all comprises of the public sector banks. Many of the regional rural banks

that are funded by the government banks can also be clubbed in this genre.

Private sector banks in India -

A new wave in the banking industry came about with the private sector

banks in India. With policies on liberalization being generously taken up, these

private banks were established in the country that also contributed heavily towards

the growth of the economy and also offering numerous services to its customers.

Some of the most popular banks in this genre are: Axis Bank, Bank of Rajasthan,

Catholic Syrian Bank, Federal Bank, HDFC Bank, ICICI Bank, ING Vysya Bank,

Kotak Mahindra Bank and SBI Commercial and International Bank. The Foreign

Banks in India like HSBC, Citibank, and Standard Chartered bank etc can also be

clubbed here.


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with the assurance of immediate return when desired, and the care of the

money involves worry and risk.

The bank, on the other hand, possesses the necessary men, machinery andexperience. By obtaining deposits, each perhaps small in itself, from many

people, it acquires a large reservoir of funds. From this supply, which is

constantly being increased by additional deposits and decreased by

withdrawals according to the needs and circumstances of the depositors, the

bank can now make loans and other investments from time to time.

It is known as a place where loans may be sought, and it is protected inmaking these loans of funds which it has had left with it on deposit by the

law of averages which usually operates in such a way that withdrawals and

deposits about balance each other, the normal tendency being in favor of a

net increase. By receiving deposits and making collections the bank saves

the depositor much personal effort.

To receive or deposit in one city a check made payable in another, hundredsor thousands of miles away, to convert that check in a relatively short timeinto cash available for the depositor's use, and all this with no direct

assistance from the customer and at a very slight expense to him or none at

all, is indeed service.

So also is the willingness of the bank to collect promissory notes, drafts andother negotiable paper in a similar way. In addition to taking care of funds

without charge and making collections, the bank provides the means ofwithdrawing and transferring funds readily by giving its customer a book of

blank checks.

By lending money the bank benefits the community to the extent that itsupplies funds to assist worthy business. Temporary working capital to assist


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in the commercial, agricultural or industrial life of a community is very

important. Borrowers logically look to a bank for such assistance and are

thereby saved the necessity of either going without the funds they need or

spending an endless amount of time and effort in negotiating many smallloans from individuals.

Note issue, originally a common right of a bank, is now restricted by law toNational banks, Federal Reserve banks and the Government, and is chiefly

valuable as a means of putting additional currency in circulation according

to the needs of trade. There has been such an enormous growth in the

business done by trust companies and by trust departments of banks in thelast few years by acting in various fiduciary capacities that it seems

necessary to include this as one of the important banking functions, which

will be more fully discussed a little later.


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HUMAN RESOURCE MANAGEMENT:-

INTRODUCTION:-

Human Resource :-

HRM contributes to organizational performance in different ways: through

sound functional basics; through effective realignment when the external

environment changes; and by building an organizational context to that the

organization can cope with the dualistic forces.

What is the Definition of Human Resources?

The number one glossary suggestion and question that people request is: What is

the definition of human resources? William R. Tracey, in The Human Resources


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employee programs impact the business in measurable ways. The new role of

HRM involves strategic direction and HRM metrics and measurements to

demonstrate value.

Features:-

Its features include:

Organizational management Personnel administration Manpower management Industrial management

But these traditional expressions are becoming less common for the theoretical

discipline. Sometimes even employee and industrial relations are confusingly listed

as synonyms, although these normally refer to the relationship between

management and workers and the behavior of workers in companies.


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improved employee commitment, lower levels of absenteeism and turnover, higher

levels of skills and therefore higher productivity, enhanced quality and efficiency.

This area of work is sometimes referred to as 'Strategic HRM' or SHRM.

Within SHRM three strands of work can be observed: Best practice, Best Fit and

the Resource Based View (RBV).

The notion of best practice - sometimes called 'high commitment' HRM - proposes

that the adoption of certain best practices in HRM will result in better

organisational performance. Perhaps the most popular work in this area is that of

Pfeffer who argued that there were seven best practices for achieving competitive

advantage through people and 'building profits by putting people first'. These

practices included: providing employment security, selective hiring, extensive

training, sharing information, self-managed teams, high pay based on company

performance and the reduction of status differentials. However, there is a huge

number of studies which provide evidence of best practices, usually implemented

in coherent bundles, and therefore it is difficult to draw generalised conclusions

about which is the 'best'Best fit, or the contingency approach to HRM, argues that HRM improves

performance where there is a close vertical fit between the HRM practices and the

company's strategy. This link ensures close coherence between the HR people

processes and policies and the external market or business strategy. Finally

'configurational models' provide a more sophisticated approach which advocates a

close examination of the organisation's strategy in order to determine the

appropriate HR policies and practices. However, this approach assumes that the

strategy of the organisation can be identified - many organisations exist in a state

of flux and development.


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Time management Employee benefits administration Performance appraisal Labor relations

Business model

A bank can generate revenue in a variety of different ways including interest,

transaction fees and financial advice. The main method is via charging interest on

the capital it lends out to customers. The bank profits from the differential between

the level of interest it pays for deposits and other sources of funds, and the level of

interest it charges in its lending activities.

This difference is referred to as the spreadbetween the cost of funds and the loan

interest rate. Historically, profitability from lending activities has been cyclical anddependent on the needs and strengths of loan customers and the stage of the

economic cycle. Fees and financial advice constitute a more stable revenue stream

and banks have therefore placed more emphasis on these revenue lines to smooth

their financial performance.

In the past 20 years American banks have taken many measures to ensure that they

remain profitable while responding to increasingly changing market conditions.First, this includes the Gramm-Leach-Bliley Act, which allows banks again to

merge with investment and insurance houses. Merging banking, investment, and

insurance functions allows traditional banks to respond to increasing consumer


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demands for "one-stop shopping" by enabling cross-selling of products (which, the

banks hope, will also increase profitability).

Second, they have expanded the use of risk-based pricing from business lending to

consumer lending, which means charging higher interest rates to those customers

that are considered to be a higher credit risk and thus increased chance of default

on loans. This helps to offset the losses from bad loans, lowers the price of loans to

those who have better credit histories, and offers credit products to high risk

customers who would otherwise be denied credit.

Third, they have sought to increase the methods of payment processing available to

the general public and business clients. These products include debit cards, prepaid

cards, smart cards, and credit cards. They make it easier for consumers to

conveniently make transactions and smooth their consumption over time (in some

countries with underdeveloped financial systems, it is still common to deal strictly

in cash, including carrying suitcases filled with cash to purchase a home).

However, with convenience of easy credit, there is also increased risk that

consumers will mismanage their financial resources and accumulate excessivedebt. Banks make money from card products through interest payments and fees

charged to consumers and transaction fees to companies that accept the credit-

debit - cards. This helps in making profit and facilitates economic development as

a whole.


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HRM strategy:-

An HRM strategy pertains to the means as to how to implement the specific

functions of Human Resource Management. An organization's HR function may

possess recruitment and selection policies, disciplinary procedures,

reward/recognition policies, an HR plan, or learning and development policies,

however all of these functional areas of HRM need to be aligned and correlated, in

order to correspond with the overall business strategy. An HRM strategy thus is anoverall plan, concerning the implementation of specific HRM functional areas.

The implementation of an HR strategy is not always required, and may depend on

a number of factors, namely the size of the firm, the organizational culture within

the firm or the industry that the firm operates in and also the people in the firm.

An HRM strategy can be divided, in general, into two facets - the people strategy

and the HR functional strategy. The people strategy pertains to the point listed inthe first paragraph, namely the careful correlation of HRM policies/actions to

attain the goals laid down in the corporate strategy. The HR functional strategy

relates to the policies employed within the HR functional area itself, regarding the

management of persons internal to it, to ensure its own departmental goals are met.


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Functions:-

The Human Resources Management (HRM) function includes a variety ofactivities, and key among them is deciding the staffing needs of an

organization and whether to use independent contractors or hire employees

to fill these needs, recruiting and training the best employees, ensuring they

are high performers, dealing with performance issues, and ensuring your

personnel and management practices conform to various regulations.

Activities also include managing your approach to employee benefits andcompensation, employee records and personnel policies. Usually small

businesses (for-profit or nonprofit) have to carry out these activities

themselves because they can't yet afford part- or full-time help.

However, they should always ensure that employees haveand are awareofpersonnel policies which conform to current regulations. These policies

are often in the form of employee manuals, which all employees have. Note that some people distinguish a difference between HRM (a major

management activity) and HRD (Human Resource Development, a

profession). Those people might include HRM in HRD, explaining that

HRD includes the broader range of activities to develop personnel inside of

organizations, including, e.g., career development, training, organization

development, etc.

There is a long-standing argument about where HR-related functions should be organized into large organizations, e.g., "should HR be in the

Organization Development department or the other way around?"


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The HRM function and HRD profession have undergone major changes overthe past 2030 years. Many years ago, large organizations looked to the

"Personnel Department," mostly to manage the paperwork around hiring and

paying people. More recently, organizations consider the "HR Department"as playing an important role in staffing, training and helping to manage

people so that people and the organization are performing at maximum

capability in a highly fulfilling manner.

EVOLUTION OF HUMAN RESOURCES MANAGEMENT:

The history of development of personnel management in India is comparativelyOf

recent origin. HRM is relatively new term; emerge during the 1970s.many

people continue to the discipline by its order more traditional titles such as

personal management/personnel administration, the trend is changing. The term,

now a day used in industry circles is human resources managementas a

subject it may be stated that concern for the welfare of workers in the management

of business enterprises has been in existence since ages. Before these existence,

their existed a sound base for systematic management of resources during as early

as 4thcentury BC. The government took an active interest in the operation of public and

private sectors. So human resources in the organization received the management.

Attention, much earlier, in the course of time, two professional bodies, the Indian

institute of personnel management (IIPM) and the national institute of labour


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management (NILM) were set up. By 1970s, a shift in professional values was

discernible. In 1980s, Professionalsbegan to talk about new technologies in

1970s,the emphasis shifted to humanvalues, productivity through people. This is

the evolution of HRM.

SCOPE OF HUMAN RESOURCE MANAGEMENT:

Procurement of Human Resources

Employee hiring

Employee and executive remuneration

Employee motivation and maintenance

Industrial relations and

Prospects of HRM

Human resource planning (HRP) Design of organization and job

Selection and Staffing


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Training and development

Organization development (OD)

OBJECTIVES OF HUMAN RESOURCE MANAGEMENT:

The primary objectives of HRM are to ensure the availability of component

andwilling workforce to an organization. HRM objectives are four fold viz,

1. Societal

2. Organizational

3. Functional

4. Personal

SOCIETAL OBJECTIVES:

To be ethically and socially responsible to the needs and challenges of thesociety

and minimizing the negative impacts of such demands, upon theorganization. Thefailure of organization to use their sources for societies benefitin ethical ways may

lead to restrictions.


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ORGANIZATIONAL OBJECTIVES:

To recognize the role of HRM in bringing about organizational effectiveness

HRMis not an end in itself. It is only a means to assist the organization with its primaryobjective. Simply stated, the HR department exists to serve the rest of

theorganization.

FUNCTIONAL ORGANISATION:

To maintain the departments contribution at a level appropriate to the

organizational needs. Resources are wanted when HRM is either more or

lesssophisticated to suit the organization s demands. The departments level of

services must be tailored to fit the organization it services

PERSONAL OBJECTIVES:

To assist employees in achieving their personal goals, at least in so far as

thesegoals enhance the individuals contribution to the organization. Personal

objectives of employees must be met if workers are to be maintained, retainedand

motivated. Otherwise employee performance and satisfaction may declineand

employees may leave the organization.To achieve the objectives of HRM, the

tools, and techniques to be adopted hereare-


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Administrative system

Periodic review of administrative practice

Assumption of the responsibility by the personal manager in attaining the

requirement of his enterprise.

ACTIVITIES OF HRM:

Human resource planning

Job analysis and design

Recruitment and selection

Orientation and placement

Training and development

Training and development Performance appraisal and job evaluation


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Employee and executive remuneration

Motivation and communication.

Welfare, safety and health

Industrial relations and the like

LIMITATIONS OF HRM:

HRM has its own limitations, though HRM has been in practice quite some time

now, HRM is of recent origin and lacks universally approved academic base. By

creating welfare officers under section (49) of the Factories Act, 1948. The

government has done more harm than good because the statutory officers have not

won the support of line management in their organization. A large number of

industrial laws have resulted legalistic approach to labour relations and has made

personnel executives dependent on lawyers. Personnel mangers are busy with

litigation and have no time to attend other aspects of their duties. The inherent

weakness of the job is that its results cant be measured in concrete

terms, have proved frustrating for many personnel executives for evaluating theirsuccess. The job of the personnel officer is still considered by a large number of

employees as a fire fighting function only to head off union troubles. The rigid and

unchanging attitudes of the personnel officers have been a major factor hindering

the growth of the HR function of personnel function


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Human Resource in Banking:-

The core function of HR in banking industry is to facilitate the performanceimprovement among its people. Factors such as skills, attitudes and

knowledge of personnel, play a critical role in determining the

competitiveness within the organization or the industry (2002). The quality

of human resources indicates the ability of banks to deliver the value to

clients or customers.

Indian banking industry has been an important driving force behind thenations economic development. The emerging environment poses both

opportunities and threats, particularly to the public sector banks, as well as

the human resource in changing economic and business environment. The

primary emphasis needs to be on integrating human resource strategies with

the business strategy.

Above the aspects of recruitment, placement, performance management,rewards and employee relations - a radical transformation of the existing

personnel structure in public sector banks like the seniority over

performance is not the best environment for attracting the best talent from

the young competitive environment. However, recruitment practices as well

as on-the-job-training and redeployment are considered as one of those

many improvements of HR in Indian Banks (2002).


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HRM Background and Practices:-

To make the Indian Banking System stronger, efficient and low-cost, thecreation of fundamentals must include in the banks operations, strategies

and processes: strengthening the prudential norms and market discipline;

adoption of international benchmarks; management of organizational change

and consolidation within the financial system; upgrading the technological

infrastructure of the financial system; and human resource development as

the catalyst of the transformation (2002).

The Human Resource field in the Banking Industry is considered as one ofthe process of discovery and transformation. The field of Human Resource

can be described as emergent and dynamic within the cultural business

aspect in a Banking Industry. The success of todays banking business willsparsely depends on the human resources of the organization, in which plays

a crucial role in providing the services needed.

The primary strength of the industry is the human resource that is why theefforts to develop the skills and management are the main subject placed

before the human resource. A major challenge for many banks will be to

develop the special competencies and skills for credit appraisal and risk

management. Putting the information technology is a key contributed in

human resource development. Therefore, the HR model of the future will


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require professionals to be both driving and anticipating change,

understanding the complexities of the new business environment and forces

shaping it (2002).

Roles and Functions of the HR in 21st Century Banks:-

Long gone are the days when the HR function used to be handled by one person.

The infamous HR Lady has now been replaced by a full pack of specialists indiverse HR functions. HR now seems to be the catch all when it comes to any facet

of employee relations and company culture. Also, in the current employment

environment, what constitutes Human Resources continues to evolve on a daily

basis.

Lets take a look at the HR function in a typical large company. It may seem like

the worlds most strenuous job sometimes, but there are definite benefits. Once wego through the list, you may realize that a job in HR may be the hotspot for career

advancement and even provide semi-security from the unemployment surge.


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organization. This can be a tightrope to walk, but the successful Manager knows

how to maintain the delicate balance. Some critical responsibilities are:

Ensuring the smooth running of the HR office. Gaining buy-in from the operations Managers and Supervisors for new

policies.

Conducting town hall meetings to disseminate new programs and guidelinesto employees. Anyone hear crickets?

Administering assimilation or team building exercises.

Overseeing recruitment efforts.HR is one of the most versatile and hardest working functions of any organization.

They impact every aspect of the company and are stewards of its vision. HR

engages in leadership and management development, employee counseling,

community outreach, and a whole lot more.

By working in Human Resources, you gain a diverse skill set that can be

transferred into so many other positions. A company simply could not function

without your expertise and dedication. So the next time you feel down about your

job, remember that HR runs the show.

Table

Stereotypes of personnel management and human resource

management

PERSONNELHUMAN

RESOURCE


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MANAGEMENT MANAGEMENT

Time and Planning

PerspectiveShort-term reactive

adhoc marginal

Long-term

proactive strategic

integratedPsychological

Contract Compliance Commitment

Control Systems External controls Self-controlEmployee

Relations

PerspectivePluralist collective lowtrust

Unitarist

individual high

trust

Preferred

Structures/SystemsBureaucratic/mechanistic

centralized formal

defined rolesOrganic devolved

flexible role

Roles Specialist/professionalLargely integrated

into line

management

Evaluation Criteria Cost-minimizationMaximum

utilization (human

asset accounting)

Source: Guest 1987


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Towards HRM: New Policies:-

a) Industrial Relations:-

A number of initiatives were introduced to re-shape the Union more in line with

the Banks view of its role. Firstly, the union role at Head Office was diminished

by reducing the number of Bank funded union represenatatives. Secondly, the

status of the Negotiating Committee was amended so as to ensure it dealt only with

major items such as pay negotiations, while minor items were to be dealt with bythe grievance procedure, and it was agreed that much of the day to day relationship

with the union would be conducted by less senior personnel. Thirdly, and this also

reflected the new management style, responsibility for personnel issues was

devolved to line managers who would be encouraged to have regular local

discussions with union representatives as part of the consultative process and this

would also prevent them being by-passed with issues going directly to Head

Office. A reduced union role was also apparent in the new remuneration policy,

(see below).

Nevertheless, while significant change could be achieved this is not to say that the

union could simply be steamrollered. Partly, this related to the CWS who while not

being involved in Bank personnel policy on day to day business, did exert pressure

to ensure agreements which linked the Bank to the rest of the movement were not

broken. Perhaps even more importantly, the scope and degree of change which the

Bank was attempting to achieve was deemed to require union co-operation rather

than sullen acquiescence or confrontation.


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b) Cost Control:-

Attention focused on the reduction of unit labour costs. Unit labour costs can be

reduced in two main ways: firstly, an increase in labour productivity, secondly, a

reduction in total labour costs. The first method could be achieved by measures

like better recruitment and training, a new payment system, an improved

organisational structure, a different management style and culture. However, these

are essentially long-term measures and the more obvious and immediately

effective method to reduce unit costs is simply reducing the size of the workforce.

It was appreciated that the squeeze on labour costs would lead to problems with the

union and possible detrimental effects on staff morale, and hence as far as possible

the reduction in staff numbers would be achieved in an unobtrusive manner.

Natural wastage was one method, as the Bank had a turnover of some 500 people

per year. The fact that this was being considered was itself indicative of a new

more performance-orientated management style. The case of the Bank bears out

the prediction of Hunt that the management of exit would be an increasingly

important function for the personnel function (1984,). The Bank was successful in

reducing its numbers and hence costs.


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c) Changing Culture:-

There was little detailed consideration in the HRM strategy papers of issues like

career patterns, recruitment, training etc. This was related partly to little immediate

attention being required, and secondly, to uncertainty as to what was required.

Hence it was not until after the HRM strategy had been adopted and was being

implemented that attention was given to these issues.

In recent years, there had been an increasing belief that the development of human

resources is no longer a luxury to be achieved when other objectives have been

met, but an essential part of the management of strategic change. Hence, the

development of human resources was worthy of a higher priority. This was

reflected in the development of manpower planning and a greater emphasis on

management development and training in a systematic and integrated manner. The

Bank looked to become more pro-active in this area rather than merely respond to

problems. However, much depended on a settled business strategy for the Bank

and each division, so as to identify staffing requirements. Hence a manpower plan

took time to develop given the state of flux in the Bank. One area which needed

examining was recruitment where it was felt that there was a need to have a tiered

policy. In addition, the qualities and personalities of the staff recruited needed to be

examined. There was a move to look firstly to older, non mobile married women as

workhorses and secondly to look for more customer relations skills and salesability.

These changes were reflected in the training function and management

developnient programmes. There was a trend in the former towards programmes

stressing social skills and customer service training and sales and marketing


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training, all designed to educate staff in the new sales culture. Previously, the

training emphasis had been on technical training and supervisory skills for clerical

appointed and junior management staff; the training also reflected a trend in

banking to train for greater productivity rather than preparation for future jobs(Mosson, 1986).

Comparative Study: SBI and HDFC:-

The State Bank of India, the largest public sector bank of India, offeredvoluntary scheme (VRS) to trim its workforce as recommended that the

banking industry was overstaffed. SBI implemented a VRS or the Golden

Handshake system. The vast workforce that was once regarded as one of

SBIs strongest assets became a liability following the computerization of

the bank. The introduction of this scheme leads to strong protests and SBI

faced with a prospect of losing its talented employees and be left with less

efficient employees (2007).

The Housing Development Finance Corporation Limited (HDFC) staffingneeds continued to increase particularly in the retail naming businesses in

line with the business growth. HDFC aims to facilitate a combination of

human resource and technology in disseminating their banking functions and

practices ( 2002). The growth of the employee base was in line with the

growth in the banks business and distribution both inorganically as well as

organically.

The Bank continues to focus on training its employees on a continuing basis, both on the job and through training programs conducted by internal and


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external faculty. The Bank has consistently believed that broader employee

ownership of its shares has a positive impact on its performance and

employee motivation. HDFC Bank lists their people as one of its stated

values. The Bank believes in empowering its employees and constantly takesvarious measures to achieve this (2009).


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HSBC BANK

HSBC A brief history:-

HSBC was born from one small idea a local bank serving local needs. In March

1865, HSBC opened its doors for business in Hong Kong and

View of Hong Kong waterfront in the 1860s when HSBC opened its doors for

business. The banks first office is on the far left.

today it welcomes customers all over the world. The intervening years have formed

the character of HSBC. Its experiences have created its core strengths of resilience,

adaptability and capability for innovation. A glance at its history explains why it believes in capital strength, strict cost control and in building long-term

relationships with customers. HSBC has weathered change in all


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forms revolutions, economic crises, new technologies and has adapted to

survive. Growth has come organically and through strategic acquisitions, and these

purchases have brought their own strengths and cultures to the

Group. The resulting corporate character of HSBC enables it to meet thechallenges of the financial world of today and tomorrow.

This brief history introduces the major events, decisions and personalities that have

made .HSBC what it is today.

Celebrating the opening of a new HSBC branch in Shanghai in June 2007.

Below, left: Staff of the Imperial Bank of Persias chief office in Tehran in

1934. Centre: The 1866 annual report of the Citizens Savings Bank. The

business later became part of the Republic National Bank of New York.

Right: HSBCs hexagon symbol is installed at the top of the new HSBC Head

Office at 8 Canada Square, London.


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Introduction:-

Headquartered in London, HSBC Holdings plc is one of the largest banking

and financial services organisations in the world. HSBCs international network

comprises around 8,000 offices in 87 countries and territories in Europe, the Asia-Pacific region. Through an international network linked by advanced technology,

HSBC provides a comprehensive range of financial services to individuals,

businesses and institutions. In total, HSBC serves over 100 million personal and

almost three million commercial customers. To meet the needs of these customers,

HSBC employs around 300,000 employees speaking over 100 languages. At 30

June 2010, HSBCs total assets amounted to almost US$2,500 billion. Althoughthe Groups holding company, HSBC Holdings plc, was formed as recently as

1991, many of its principal constituent companies opened for business over a

century ago and have long experience in their home and international markets. The

story of the growth and development of these companies is rich in variety and


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Right: HSBCs Head Office at 8 Canada Square, London.:-

HSBC in the Asia-Pacific region:-

Beginnings, 1865:-

HSBCs name is derived from The Hongkong and Shanghai Banking Corporation

Limited, the founding member of the modern Group. The bank owed its origins to

the business communities of the China coast in the 1860s. At that time, the finance

of trade in the region was not well developed and most transactions were still

handled by the European trading houses, or hongs, rather thanby professional

banks. By the early 1860s, local businessmen needed larger and more sophisticated

facilities. In Hong Kong, in particular, business leaders required specialist banking

services preferably from a bank that was locally owned and managed. The

founding of the bank in 1865 answered this need. The new company was the


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inspiration of Thomas Sutherland, then the Hong Kong Superintendent of the

Peninsular and Oriental Steam Navigation Company, who produced a prospectus

for a locally based bank operating on sound Scottish banking principles. The

prospectus attracted the support of a broad spectrum of Hong Kong interests,including American and Indian trading houses as well as European firms, and the

initial capital of HK$5 million was quickly taken up in Hong Kong, Shanghai and

Calcutta. On this basis, the bank opened for business in Hong Kong on 3 March

1865. Then, as now, the banks headquarters were at 1 Queens Road. One month

later, on 3 April 1865, the banks Shanghai office opened for business. Initial

response from customers in the two cities was favourable, both from the foreign

business community and from the compradores, the influential Chinese

intermediaries in charge of local staff and business dealings in the Chinese

community.

Early business and development:-

Soon after its formation in Hong Kong and Shanghai, the bank established a

network of agents and branches around the world. Although that network reached

as far as Europe and North America, the emphasis was placed on building up


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representation in China and the rest of the Asia- Pacific region. In many of its

branches and agencies in Asia, The Hongkong and Shanghai Banking Corporation

was the pioneer of modern banking practices. From the outset, trade finance was a

strong feature of its local and international business, an expertise that has beenrecognised throughout its history. Bullion and exchange businesses were also

important in the early years. In Japan, where a branch was opened at Yokohama in

1866, the bank acted as an adviser to the government on banking and currency. In

1888, it was the first bank to be established in Thailand, where it printed the

countrys first banknotes. By 1900, the branch network in Asia extended to India

(1867), the Philippines (1875) and Singapore (1877), and to cities in what are now

Malaysia, Myanmar, Sri Lanka and Vietnam. In the 19th century, international

banking of this kind required innovation and high levels of risk. The bank had its

share of setbacks in its early years, including over-commitment to a number of

local industrial ventures. From the mid-1870s, however, the bank renewed its focus

on trade finance. Thomas Jackson, Chief Manager on three occasions between

1876 and 1902, dominated this period of the banks growth and led it to become

the foremost financial institution in Asia. In achieving this reputation, Jackson and

his successors were supported by a distinctive cadre of managers and staff. These

officers, many of whom had begun their careers with English or Scottish joint-

stock banks, were trained in London before taking up appointments in Asia. On

reaching the higher levels of management, the banks officers could call on varied

experience in the many different settings of the banks operations.


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The senior officers of The Hongkong and Shanghai Banking Corporation in

1870.

The banks first manager, Victor Kresser, is seated in the centre of the group.

Banker to Asian governments:-

The Hongkong and Shanghai Banking Corporations international reputation in the

late 19th and early 20th centuries owed much to its achievements in government

finance. By the 1880s, it was acting as banker to the Hong Kong government and

as sole or joint banker for British government accounts in China, Japan, Penang

and Singapore. The issue of banknotes was also an important contribution to


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business services in all of the banks areas of operation. The outstanding example

of the banks role in government finance was its management of new loans for

China. The bank handled Chinas first public loan the 8 per cent Foochow loan

of 1874 and thereafter issued most of Chinas public loans. These issuesincluded loans for railway construction and other infrastructure projects and, by

1910, the bank was the prime mover in the China Consortium, a multinational

agency for loans to China.

Business in the early 20th century:-

After the shock and disruption that the First World War brought to international

trade, The Hongkong and Shanghai Banking Corporation looked forward to

expansion in its Asian markets.

The new head office at 1 Queens Road (1935) and the new buildings at major

branches such as Bangkok (1921), Manila (1922) and Shanghai (1923) reflected

this confidence. In contrast, the political outlook in China grew increasingly

uncertain and, in South-East Asia, the bank faced heavier competition from Dutch

and French banks. Throughout the 1930s, in keeping with its long-standing

connections with government finance in China, the bank took a leading part in

efforts to stabilise the Chinese national currency. In the Second World War, the

majority of the banks European staff became prisoners of war as the Japanese

advanced through Asia. Those inManchuria, Japan and Indo-China were

repatriated, but most of those who failed to escape were interned. The Chief

Manager, Sir Vandeleur Grayburn, and his designated successor, D C Edmondston,

died while prisoners in Hong Kong. Meanwhile, in 1941, British regulators

required that Arthur Morse, as Chairman of the banks London Advisory


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Committee, should act as Chairman of the bank. Two years later, the London

Committee was empowered to act as a Board of Directors and Morse was

appointed to the dual role of Chairman and Chief Manager.

New alliances in Asian banking:-

The changes of the post-war period the concentration on Hong Kong and the

closure of the branches in mainland China carried the risk that the bank was

growing too narrow in its sphere of interests. Under Michael Turners leadership

between 1953 and 1962, the bank avoided the risk by diversifying its business in a

series of acquisitions and alliances.

These additions, which included the formation of The Hongkong and Shanghai

Banking Corporation of California (see page 26) and the purchase of The British

Bank of the Middle East (page 22), were to be the banks first experience of

working as a group of companies. In the Asia-Pacific region, key additions were

the Mercantile Bank in 1959, a controlling interest in Hang Seng Bank Limited in

1965, and the formation of Wardley Limited in 1972. The Mercantile Bank,

originally established as the Mercantile Bank of Bombay as early as 1853, had its

own distinguished history in Asian banking. When its acquisition by The

Hongkong and Shanghai Banking Corporation was completed in 1959, the

Mercantile Bank was operating 35 branches, with an especially strong presence in

the Indian sub-continent and Malaysia. The Mercantiles head office was


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transferred to Hong Kong in 1966, and its business was then gradually integrated

into the larger Group. Hang Seng Bank, in contrast, was a local Hong Kong bank

established in 1933. The Hongkong and Shanghai Banking Corporation obtained a

controlling interest in 1965, shortly after banks in Hong Kong had faced a briefperiod of crisis.

The staff ofthe Calcutta branch of the Mercantile Bank in 1938. The branch

had opened for business in 1855.


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A HK$25 note issued by The Hongkong and Shanghai Banking Corporation

in Yokohama, Japan, in 1866.

New directions in Asia-Pacific:-

The Group has extended its services on the mainland since the late 1970s,

following the introduction of Chinas open door economic policy and in support

of the countrys growing international trade. In 1980, The Hongkong and Shanghai

Banking Corporation opened a representative office in Beijing. More offices

followed in Chinas other major cities and, in 1984, it became the first foreign

bank since 1949 to be granted a banking licence, allowing the Shenzhen office to

be upgraded to a full branch. In 1997 (the year in which the Peoples Republic of

China resumed sovereignty over Hong Kong), HSBC was one of the first

international banks to be given permission to conduct renminbi business in

mainland China. By the beginning of 2010, HSBC had the largest network of any

foreign bank with 99 outlets. This network has been supplemented by a series of


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strategic partnerships. In 2001, an 8 per cent share in the Bank of Shanghai was

purchased and, in the following year, HSBC acquired a 10 per cent share in Ping

An Insurance Company of China, the second largest life insurance operator in the

country. There has been major business growth in India. 2001 saw the opening ofthe only branch in the HSBC network that is open 365 days a year in Pune, western

India, and, in the same year, HSBC was able to enter the insurance market in India

for the first time. The Group has also pioneered the use of global resourcing

centres to achieve a competitive advantage. Indias pool of skilled workers has

made it an ideal location for such operations and it now boasts 10 of HSBCs 21

service centres. These centres have allowed HSBC to utilise its worldwide reach by

offering a costeffective solution to improving customer service on an international

basis. In addition to investing in the emerging markets of China and India, HSBC

has also strengthened its businesses in some of the other fast-growing economies

of the Asia-Pacific region. In 2008, HSBC announced its acquisition of a major

stake in Indonesia's Bank Ekonomi; purchased the assets, liabilities and operations

of The Chinese Bank in Taiwan; and gained approval to establish a locally

incorporated subsidiary in Vietnam. The Hongkong and Shanghai Banking

Corporation also maintained its commitment to its birthplace as a key strategic

aim. The most visible demonstration of this was the banks substantial investment

in its striking head office building in the Hong Kong SAR, designed by Sir

Norman Foster and officially opened in 1986. By 2010, the bank was operating

over 300 branches, supported by an extensive network of ATMs and internet

banking services. Represented by the largest bank in the Hong Kong SAR and witha major presence on the mainland, HSBC maintains its position as one of the

foremost financial institutions in the dynamic markets of the Asia-Pacific region.


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The skyline of Sydney, featuring the top of HSBC Bank Australias head

office in George Street. HSBC Bank Australia was established as a subsidiary

in 1986.

Acquisitions and development:-

In its first 50 years, Midland steadily enlarged its business in Birmingham and the

surrounding region. From the 1880s, it expanded its customer base by opening new


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branches and by acquiring other banks. Its most important initiative was the

decision to move into the wider national market. This was achieved in 1891 by the

acquisition of the Central Bank of London (which gave Midland a seat in the

London Clearing House) and, in 1898, by taking over the City Bank (whichprovided a London head office). By 1918, with deposits of 335 million, it ranked

as the largest bank in the world. The key figure in this remarkable advance was

Edward Holden, Managing Director from 1898 to 1908 and Chairman and

Managing Director from 1908 until his death in 1919. He oversaw more than 20

bank amalgamations between 1891 and 1918, and opened new branches

throughout England and Wales. Holden also encouraged the development of

Midlands international business; it was the first British bank to set up a foreign

exchange department and, by 1919, it was acting as London bank to some 650

correspondent banks throughout the world. From 1907, these correspondents

included The Hongkong and Shanghai Banking Corporation. After the First World

War, the leading British banks entered an agreement with the government that they

would not attempt further amalgamations without Treasury approval. As a result,

Midland turned its attention to expanding its branch network, adding new banking

services, mechanising its systems (from 1928) and advertising its activities.


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Headquarters of HSBC Bank Malta p.l.c. in Valletta.

The making of the modern HSBC Group:-

When The Hongkong and Shanghai Banking Corporation acquired the Mercantile

Bank and The British Bank of the Middle East in 1959, it laid the foundations of

todays HSBC Group. In these acquisitions and, by the later investment in Hang

Seng Bank in 1965, the bank grew and diversified through subsidiary companies

with their own experience and expertise. In the late 1970s, this group approach

was a key factor in the strategy for expansion in markets where previously The

Hongkong and Shanghai Banking Corporation was not well represented,


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particularly in North America and Europe. In the United States, this expansion

centred on the purchase of a 51 per cent shareholding in Marine Midland Bank in

1980. This purchase, at a cost of US$314 million, nearly doubled the Groups

assets, from HK$128 billion to HK$243 billion. The remaining shares were purchased in December 1987, making Marine Midland the Groups principal

subsidiary in the United States. In Europe, The Hongkong and Shanghai Banking

Corporation sought a partnership similar to its investment in Marine Midland. In

1981, its plans to acquire the Royal Bank of Scotland, countering a bid from

Standard Chartered Bank, were thwarted when the UK Monopolies and Mergers

Commission ruled against both bids. Six years later, however, the bank signalled

its continuing interest in the major British banks when it purchased a 14.9 per cent

interest in Midland Bank. A co-operation agreement between the bank and

Midland allowed the two banks to consolidate and rationalise their international

activities by reciprocal transfers of business as, for example, the transfer of

Midland Bank Canada to Hongkong Bank of Canada in 1988. The formation of

HSBC Holdings plc in 1991, creating a holding company for the entire Group with

its shares quoted in London and Hong Kong, showed that the Group viewed

Europe, and the London market in particular, as a vital part of its future

development. This strategy was made clear when, in March 1992, HSBC Holdings

announced that it would make a recommended offer for full ownership of Midland.

In late April Lloyds Bank, one of the other British clearing banks, indicated that it

was also considering an offer for Midland. That possible offer was dropped shortly

after HSBC announced its final offer in June 1992, valuing Midland at 3.9 billion.The offer became unconditional in July, lifting the Groups total assets from 86

billion in 1991 to over 170 billion in 1992.


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HSBCs acquisition of Midland created one of the largest financial organisations of

its kind in the world. Attention now turned to integrating and consolidating the

business of the enlarged Group. HSBC was especially keen to see a synergy of the

interests of the major subsidiary companies. Treasury operations in London, NewYork and Tokyo were integrated and common standards in technology were

introduced. Similarly, between 1992 and 1994, HSBC drew together its activities

in merchant banking, securities and asset management, and then enhanced its

private banking and securities custody business. In each of these areas of business,

the enlarged Group benefited from a greater level of co-ordination and a

commitment to effective technology and training. The results of these efforts were

reflected in HSBCs performance, with profits attributable to shareholders

increasing from 586 million in 1991 to more than 2,000 million in 1994.

An important result of the acquisition of Midland was the transfer in January 1993

of the Groups head office but not that of The Hongkong and Shanghai Banking

Corporation Limited from Hong Kong to London to meet the requirements of

the UK regulatory authorities. Although the Bank of England now became the lead

regulator for HSBC Holdings, the banking subsidiaries continued to be regulated

locally in their country of operation. HSBCs traditional concern for rapid

decision-making and local accountability meant that the new Group Head Office in

London provided only the essential central functions, such as strategic planning,

human resource management, legal and company secretarial, and financial

planning and control. In 1998, HSBC announced that these head office functions,

together with most of the Groups London-based businesses and operations, wouldbe relocated to a new headquarters building in Londons Docklands.

In contrast, the acquisition in 1999 of Republic New York Corporation and Safra

Republic Holdings S.A. for US$9.85 billion reinforced HSBCs presence in the

highly developed markets of the United States, Switzerland and Luxembourg.


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The branding initiative allowed HSBC to develop new services and products on a

worldwide scale, all bearing the Groups identity. For example HSBC Premier,

launched in 2000, provides round-the-clock international services for the Groups

most valuable personal customers. Although HSBCs acquisitions and growthsince 1992 had brought greater geographical balance, its position in North America

did not yet match its prominence in Asian and European markets. As a platform for

growth in that region, in 1999 the shares of HSBC Holdings plc were listed on the

New York Stock Exchange. Acquisitions were also essential to a larger role in the

region and in 2003 the purchase of Household International, Inc added

substantially to HSBCs business and profile. However, by 2007 it was becoming

obvious that the troubled state of the US housing market was having a negative

impact on debt repayment, and the decision was taken to scale back business.

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


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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, investmentbanking and markets and private banking, is all part of the lines of

business HSBC operates in.

What is the approximate size of HSBC, including the number of people who

are employed throughout the enterprise?

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 fromalmost 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


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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.

An Analytical Report on Human Resources at HSBC Group Plc. :-

Terms of reference:

This report is being produced to fulfil the criteria required for Unit

four of the Advance Vocational Certificate of Education (AVCE) course

in Business Studies. It will give a comprehensive overview of the

way's in which the human resources function(s)', within businesses are

organised and managed and how they operate, and an analytical insight

into the human resource management team, of the business that I' am

focusing on, which is HSBC Group Plc. The report will specifically

focus on the possible conflicts of interest between employees or

individuals, the way's which human resources planning procedures take

place, the recruitment and selection process, training and developmentprogrammes and performance management at HSBC Group Plc, in view of

the current economic climate for retailing/banking.


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An Introduction to the Report:

In this assignment, I have been asked to structure an analyticalapproach, about human resources and its effects, on one business, and

to file all of my information in one simple, but sophisticatedly

structured report. The report will therefore contain the following

topics, as of mentioned in the first paragraph (terms of reference),

and are as follows:

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 businesses 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;

And the availability of labour (both internally and externally


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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 labourduties, 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 (stability index, wastage rate, etc.);

Sickness and accidents;

Age, skills and training needs;

And succession.

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).


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Recruitment and Selection:

This section will 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, etc;

And internal promotion.

This section will also help 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:


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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.

Will also 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 recruitingpeople for a flexible workforce, which should include information on

such factors, such as:


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The different modes of employment used;

Different terms and conditions;

Core employees;

And part-time, temporary and contract labour.

And finally relating to this section, how

contracts of employment help HSBC achieve a flexible workforce and how

they are put together, and the key implications that seek to protect

the rights of employees relating to contracts of employment.

HSBC bank recruitment and selection process and comparison between UK and

Bangladesh, what is the underpinning reason for differences

Hong Kong Shanghai Bank Corporation is one of the worlds largest banking and

financial services organizations. The HSBC group was established in 1865 to

finance the growing trade between China and Europe. HSBCs international

network is made up of around 7,500 offices in 87 countries and territories in

Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. HSBC

is listed in the London, Hong Kong, New York, Paris and Bermuda Stock

Exchanges with 221,000 shareholders in 127 countries and territories.

HSBC offers a comprehensive range of financial services to about 95 million

customers through four customer groups and global businesses. These includePersonal Financial Services, Commercial Banking, Global Banking and Markets,

and Global Private Banking.

HSBCs international presence offers potential employees many opportunities

around the world. Some of the businesses are managed globally and some are


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managed geographically. There are over 335,000 diverse workforce within the

company and a diverse customer base of over 100 million. Of the six official

languages of the UN, more than 10,000 employees are native speakers in four of

them and another fife thousand in a fifth. (HSBC)Recruitment is global and the companys intake for this year comprises of 50

nationalities. The HSBC group is committed to five Core Business Principles:

1. Outstanding customer service

2. Effective and efficient operations

3. Strong capital and liquidity

4. Conservative lending policy

5. Strict expense discipline

Morality is as important as earnings growth. (HSBC)

The job application is very competitive and selective. HSBC expects 5,000

International management applications alone for this year. (HSBC) Job postings

are placed on line and can be accessed via www.hsbc.com. After the job applicant

will have to click on their area of interest.


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Training and Development:

It shows the differences and 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.

Training and development is a vital part of HRM and is incomplete without

proper performance management. The article discusses the training and

development in detail as practiced at HSBC. It is conducted in four steps.

First Training need analysis is done where the existing skills and knowledgeof employees are evaluated and then training requirements are assessed.

Then in the second step appropriate program is designed to fulfill thetraining requirements and in the third step that training is conducted. In the

fourth and last step the employees are again evaluated to check the

effectiveness of the program. The training program is usually divided into

three parts. In the first past employee is given orientation of the bank and the

job. This is called induction training. In the second part, employee is given

job specific training and in the third part employees are encouraged and

groomed to achieve their personal development goals. The paper then

discusses performance management at HSBC and how it influences the

several stages of the training program. Also the relationship between training

and development and performance management is discussed. The paper


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argues that performance management should coordinate with training and

development. Both much complement each other rather then contradict. This

is what is observed in HSBC where performance management is practiced in

line with training and development. In the end, this paper discusses certainmotivational theories at work at HSBC Bank. The bank exercises these

theories all over its global operations. The paper concludes by giving

emphasis on training and development and the need to invest heavily in it,

especially in Pakistan where educational standards are quite negligent.

Performance management:

In this section, it would involve 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 individuals and groups;

Measuring individual and group output/production.


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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 competitivebusinesses 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,

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 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 way's in which HSBC manages its

employees:

Frederick Taylor's principles of scientific management;

Abraham Maslow's hierarchy of needs;

Douglas McGregor's Theory X and Y;


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Frederick Herzberg's two-factor theory.

It covers the responsibilities that are covered by

the human resources function at HSBC, and the importance of theseresources to HSBC. 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. 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 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.

Performance Appraisal :-

INTRODUCTION :-

After an employees has been selected for a job, has been trained to do it and has worked on it

for a period of time, his performance should be evaluated. Performance evaluation or Appraisal

is the process of deciding how employees do their jobs. Performance here refers to the degree of

accomplishment of the tasks that make up an individuals job. It indicates how well an

individual is fulfilling the job requirements. Often the term is confused with efforts, which


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means energy expended and used in a wrong sense. Performance is always measured in terms

of results. A bank employee, for example, may exert a great deal of effort while preparing for

the CAIIB examination but managers to get a poor grade. In this case the effort expanded is

high but performance is low.

DEFINITION :-

Performance appraisal is a method of evaluating the behaviour of employees in the workspot,

normally including both the quantitative and qualitative aspects of job performance. It is a

systematic and objective way of evaluating both work-related behaviour and potential ofemployees. It is a process that involves determining and communicating to an employee how

he or she is performing the job and ideally, establishing a plan of improvement.

What is Performance Appraisal?

* Identification: Means determining what areas of work the manager should be examining

when measuring performance-essentially focusing on performance that affects organizational

success.

* Measurement: Entails making managerial judgements of how good or bad employee

performance was.

* Management: Appraisal should be more than a post-modern examination of past events,

criticizing or praising workers for their performance in the preceding year. Instead, it must take

a future oriented view of what workers can do to realize their potential.


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Benefits and Rewards :-

We are proud of our high-performance culture, which has made us one of the top 10 financial

services companies in the United States.

We offer our people a wide variety of employee benefits and competitive rewards, including

health insurance (medical, dental, vision), life insurance, retirement and

hrm final dhanuuuu

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