HRM Final Dhanuuuu

HUMAN RESOURCE MANAGEMENT IN HSBC
HUMAN RESOURCE MANAGEMENT IN HSBC 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 that MR. DHANESH D VYAS of TY.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 SHILPA (In charge Principal)

_________________
Prof. CHHEDA
(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
I
CHAPTER
SECTION -I : BANKS 1- INTRODUCTION TO BANKS 2 - HISTORY OF BANK 3 - TYPES OF BANK 4 - FUNCTIONS OF BANKS
PG NO.
10-11 11-12 12-14 14-16
II
SECTION -II : HUMAN RESOURCE MGT 1 - INTRODUCTION 2 - THEORIES OF HRM 3 - STRATEGY 4 - FUNCTIONS OF HRM 5 - EVOLUTION OF HRM 6 - SCOPE AND LIMITATION OF HRM 17-20 20-24 25 26-27 27-28 28-35 35-43
III
SECTION- III : HRM IN BANKS IN 21st CENTURY
IV V VI VII
SECTION -IV : INTRODUCTION AND HISTORY OF HSBC BANK SECTION - V : HR IN HSBC QUESTIONNAIRE CONCLUSION
44-64 64-79 80-81 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 able and motivated workforce. To establish and maintain organizational structure and desirable working relationships among all the members of the organization. Develop co-ordination among individual and group within organizable to secure the integration of organization.
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SCOPE OF THE STUDY:-
THE SCOPE OF THE STUDY IS TO UNDERSATND THE CONCEPT OF 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 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.
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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 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
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 of Madras, 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 by green 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 ( and a bank. ) means both a table
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 the 1860s. The Comptoire d'Escompte de Paris opened a branch in Calcutta in 1860. 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 nationalized banks, 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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Cooperative banks in India With the aim to specifically cater to the rural population, the cooperative banks in India were set up through the country. Issues like agricultural credit and the likes are taken care of by these banks.
The Functions Of Banking
The most important functions of banking may be classified as follows:(1) to assemble capital and make it effective; (2) to receive deposits and make collections; (3) to check out and transfer funds; (4) to discount or lend; (5) to exercise fiduciary or trust powers; (6) to issue circulating notes. Every bank which expects to succeed must first of all prove its value to the community. The services which a bank performs are so generally taken for granted that the public is unaware of the real extent of the facilities offered. Banks are equipped to utilize funds, for either a short or long period of time, safely, and with some profit. Depositors individually do not enjoy the same ability. An individual's unused funds are perhaps small in amount, cannot be loaned to advantage
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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 and experience. 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 in making 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, hundreds or thousands of miles away, to convert that check in a relatively short time into 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 and other negotiable paper in a similar way. In addition to taking care of funds without charge and making collections, the bank provides the means of withdrawing 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 it supplies 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 small loans from individuals. Note issue, originally a common right of a bank, is now restricted by law to National 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 the last 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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Glossary defines Human Resources as: The people that staff and operate an organization as contrasted with the financial and material resources of an organization. The organizational function that deals with the people ... Long a term used sarcastically by individuals in the line organization, because it relegates humans to the same category as financial and material resources, human resources will be replaced by more customer-friendly terms in the future.
What Is Human Resource Management?
Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. Human Resource Management can also be performed by line managers. Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. Human Resource Management is also a strategic and comprehensive approach to managing people and the workplace culture and environment. Effective HRM enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization's goals and objectives. Human Resource Management is moving away from traditional personnel, administration, and transactional roles, which are increasingly outsourced. HRM is now expected to add value to the strategic utilization of employees and that
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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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Human Resource Management(HRM) is seen by practitioners in the field as a more innovative view of workplace management than the traditional approach. Its techniques force the managers of an enterprise to express their goals with specificity so that they can be understood and undertaken by the workforce, and to provide the resources needed for them to successfully accomplish their assignments. As such, HRM techniques, when properly practiced, are expressive of the goals and operating practices of the enterprise overall. HRM is also seen by many to have a key role in risk reduction within organisations. Synonyms such as personnel management are often used in a more restricted sense to describe activities that are necessary in the recruiting of a workforce, providing its members with payroll and benefits, and administrating their work-life needs. So if we move to actual definitions, Torrington and Hall (1987) define personnel management as being: a series of activities which: first enable working people and their employing organisations to agree about the objectives and nature of their working relationship and, secondly, ensures that the agreement is fulfilled" While Miller (1987) suggests that HRM relates to: ".......those decisions and actions which concern the management of employees at all levels in the business and which are related to the implementation of strategies directed towards creating and sustaining competitive advantage" .
Academic theory:-
Research in the area of HRM has much to contribute to the organisational practice of HRM. For the last 20 years, empirical work has paid particular attention to the link between the practice of HRM and organisational performance, evident in
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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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Overall, the theory of HRM argues that the goal of human resource management is to help an organization to meet strategic goals by attracting, and maintaining employees and also to manage them effectively. The key word here perhaps is "fit", i.e. a HRM approach seeks to ensure a fit between the management of an organisation's employees, and the overall strategic direction of the company (Miller, 1989). One widely used scheme to describe the role of HRM, developed by Dave Ulrich, defines 4 fields for the HRM function: Strategic business partner Change Agent Employee champion Administration Expert
Business practice:Human resources management involves several processes. Together they are supposed to achieve the above mentioned goal. These processes can be performed in an HR department, but some tasks can also be outsourced or performed by linemanagers or other departments. When effectively integrated they provide significant economic benefit to the company.[15] Workforce planning Recruitment (sometimes separated into attraction and selection) Skills management Training 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 spread between the cost of funds and the loan interest rate. Historically, profitability from lending activities has been cyclical and dependent 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 excessive debt. Banks make money from card products through interest payments and fees charged to consumers and transaction fees to companies that accept the creditdebit - 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 an overall 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 in the 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 of activities, 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 and compensation, 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 aware ofpersonnel 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 over the 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 4th century 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. The failure 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[Type text] Page 30
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 their success. 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 performance improvement 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 the nations 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, the creation 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 of the 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 will sparsely 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 the efforts 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 in diverse 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 we go 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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HR Function and its roles and responsibilities:-
Sifting through a thousand and one resumes (some abysmal) and cover letters. Conducting phone screenings and scheduling interviews, in addition to listening to about a million voice messages. Walking raw recruits through computerized testing. Hey, didnt her application say she was proficient in all Microsoft applications?
Trainers are also on the front line of shaping the organization. Critical to individuals at all levels of the organization, a successful training team is invaluable. They often have their finger on the pulse when it comes to the needs and complaints of the employees, and are invaluable in planning new initiatives. Perhaps one of the most undervalued positions, these folks:
Conduct new-hire orientation and training. Someone has to get those raw recruits into shape. Support the functional departments with process training Shape the company culture through the use of soft skills and collaborative training modules. HR Managers are the glue that keeps it all together. Tasked with overseeing Generalists, Recruiters and Trainers, HR managers also have to ensure that the goals and objectives of Senior Leadership are being implemented across the
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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 guidelines to 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 HUMAN RESOURCE
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PERSONNEL
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MANAGEMENT Time and Planning Short-term Perspective Psychological Contract Control Systems Employee Relations Perspective Preferred Structures/Systems adhoc marginal reactive MANAGEMENT Long-term proactive strategic integrated Commitment Self-control Unitarist individual trust Organic devolved flexible role Largely integrated Roles Specialist/professional into management Maximum Evaluation Criteria Cost-minimization utilization (human asset accounting) Source: Guest 1987 line high
Compliance External controls Pluralist collective low trust Bureaucratic/mechanistic centralized defined roles formal
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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 by the 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 sales ability. 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, offered voluntary 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) staffing needs 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 takes various measures to achieve this (2009).
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HUMAN RESOURCE MANAGEMENT IN HSBC 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 the challenges 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 AsiaPacific 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. Although the 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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achievement, with an international pedigree that is unique in banking history. This brief history describes the origins and evolution of the companies that make up the HSBC Group. The history concludes with a summary of the far-reaching changes in recent years that have given HSBC its special place in todays major financial markets.
Below: Map showing the offices of the HSBC Group in 1965.
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HUMAN RESOURCE MANAGEMENT IN HSBC 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 been recognised 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 jointstock 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 issues included 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 brief period 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 of the 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 with a 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 (which provided 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, New York 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, would be 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 growth since 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, investment banking 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 from almost 100 million customers worldwide, with an even further total e-customer base of 11 million. As a result of these figures, it's not to mention that in order for HSBC to have such/or to even gaining such an amount of both customers and revenue at the same time, can be in
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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 development programmes 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 analytical approach, 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 labour duties, and several other factors of a wide range of information regarding the process of decision making - in relation to internal staffing, such as information on: Labour turnover (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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HUMAN RESOURCE MANAGEMENT IN HSBC 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 recruiting people 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 include Personal 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. 2. 3. 4. 5. Outstanding customer service Effective and efficient operations Strong capital and liquidity Conservative lending policy Strict expense discipline
Morality is as important as earnings growth. (HSBC) The job application is very competitive and selective. HSBC expects 5,000 Job postings International management applications alone for this year. (HSBC) will have to click on their area of interest.
are placed on line and can be accessed via www.hsbc.com. After the job applicant
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HUMAN RESOURCE MANAGEMENT IN HSBC 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 knowledge of employees are evaluated and then training requirements are assessed. Then in the second step appropriate program is designed to fulfill the training 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 certain motivational 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 competitive businesses to link performance reviews and evaluations to appropriate training and development needs of individuals. The information of understanding the environment which HSBC attempts to manage the performance of their employees, in particular therefore, 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 these resources 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 of employees. 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 savings programs, 401(k) and other employee services. We also offer programs and initiatives that help employees manage their careers and their diverse lifestyles.Here is a quick overview of our major benefits:
Health Care :Medical, Dental and Vision Plans HSBC Bank offer options that include National/Regional Network Only Plans, Health Maintenance Organizations (HMO) and corporate- and employee-supported Health Savings Accounts (HSA). In addition, we provide vision, dental and prescription drug programs for eligible full- and part-time employees and their spouses, children and opposite or same-sex domestic partners.
Flexible Spending Accounts :Employees can enroll in tax-free health care, commuter expense and dependent care flexible spending accounts. With our industry-leading family care plus dependent care FSA, HSBC contributes 50 cents for each dollar that employees contribute, up to the plan maximum.
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Insurance, Disability and Long-term Care Programs :HSBC Bank offer basic life insurance free to eligible employees, as well as discounted supplemental life, dependent life, and accidental death and disability insurance programs. Shortand long-term disability coverage and long-term care insurance options are also available, as are group home and auto insurance plans, a group legal plan and a senior advocate plan. Work / Life Balance Adoption Assistance HSBC pays up to $5,000 toward eligible adoption expenses for each adopted child..
Child Care Centers :In specific major sites, HSBC offers child care centers, mothers' rooms, back-up child care options and a new-mother transition program.
Time Off Program (TOP) TOP provides employees with a bank of paid days off to use as they wish.
Company-paid Holidays HSBC observes a number of company-paid holidays annually. Employees who wish to observe other holidays may do so by using their TOP days.
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Financial Security Sharesave Sharesave offers employees the opportunity to buy shares of HSBC Holdings plc stock at a 20 percent discount, without brokerage fees or commissions. Employees contribute through payroll deductions over a three- or five-year contract period. At the end of the contract period, they have the opportunity to use all or part of their savings, plus interest, to buy shares at the previously fixed discount price. If the value of the stock declines, they can withdraw all of their savings, plus interest.
HSBC - North America (U.S.) Retirement and Savings Program Retirement saving is a partnership between the company and the employee. To support that partnership, HSBC offers employees two ways to build for their future.
HSBC - North America (U.S.) Tax Reduction Investment Plan and Trust 401(k) Our 401(k) savings plan offers employees a generous $3 for $1 match on the first 1 percent they contribute. In addition, HSBC matches $1 for $1 on the second, third, and fourth percent of pay they contribute. That is a total 6 percent match when employees contribute 4 percent of their income. The plan also offers the convenience of payroll deductions, tax advantages and diverse investment opportunities.
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The HSBC - North America (U.S.) Retirement Income Plan and Trust At no charge to the employee, the company contributes funds to a retirement account for each eligible employee.
Employee Services (Locations and availability vary)
Concierge Services :Some larger facilities offer services such as dry cleaning, a cafeteria, movie passes, a gift shop, postal services, photo finishing services, ATMs and discounts to entertainment destinations.
Merchant Discounts :All employees can take advantage of discounts and special promotions offered by national and local merchants, including savings on furniture, jewelry, cell phone plans, travel programs and tours, and health club memberships.
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HUMAN RESOURCE MANAGEMENT IN HSBC HRM Questions for Banking Sector

Role of HR Manager in Bank-Perception from both perceptive i.e. HR Manager & the Management 1. Can you briefly describe the role/listed functions of the HRM department at your bank? 2. What has been some of the changes that have been brought about to your particular institution due to the HRM dept.? 3. What were things like before HRM was given as much importance as it is now? 4. Its contributions aside, could you please list some of the new issues/problems that have arisen from a management perspective due to the HRM Dept., if they exist. 5. How is performance measured for HR in your bank? 6. What types of opportunities are available for the advancement/development of human resources? 7. What are the criteria for the selection and recruitment for job? 8. What have been the primary factors in the changing perspective towards Human Resource Management?
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9. To what extent is the human resource staff/department involved in strategic organizational decisions? 10. To what extent do the employees come to you concerning their problem? Mostly what problem are they? 11. In your opinion, what are some of the most pressing human resource issues faced by the banking industry today? Why? 12. What was the most difficult organization problem faced by the human resource department in the last few years? How was it resolved? 13. What are the quality and competence you think a HR Manager should have? 14. Are you satisfied with the role expected by the management to be performed by you? If not why? 15. What do you expect in general from a HR Manager in your organization?
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CONCLUSION:Human resource department is a basic part of the banks now days. So to run a bank well, this department has a lot of activities to do. The HR department of the HSBC BANK is the department from where the organization is actually monitored and controlled over time. In INDIA the HRM departments of Banks are highly organized and well equifed with necessary number of personnel and others. Almost all of the banks practise almost the same kind of HR activities like compensation; arrangement of training program and seminar and so on.
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HUMAN RESOURCE MANAGEMENT IN HSBC

HUMAN RESOURCE MANAGEMENT IN HSBC

This is certify that MR. DHANESH D VYAS of TY.B.B.I

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

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

(Prof. Shilpa Chheda)

HUMAN RESOURCE MANAGEMENT IN HSBC

Signature DHANESH.D.VYAS (T.Y.B.B.I) Vth Semester

Date: 10th Nov, 2011.

HUMAN RESOURCE MANAGEMENT IN HSBC

CERTIFICATE FROM THE GUIDE.

Mrs. L. R. Visaria SHILPA (In charge Principal)

Prof. Shilpa Chheda

HUMAN RESOURCE MANAGEMENT IN HSBC

Signature DHANESH.D.VYAS. (T.Y.B.B.I) Vth Semester

HUMAN RESOURCE MANAGEMENT IN HSBC

10-11 11-12 12-14 14-16

SECTION- III : HRM IN BANKS IN 21st CENTURY

44-64 64-79 80-81 82

HUMAN RESOURCE MANAGEMENT IN HSBC

OBJECTIVES OF THE STUDY:-

To study Human Resource Management in Detail.

HUMAN RESOURCE MANAGEMENT IN HSBC

SCOPE OF THE STUDY:-

EVOLUTION OF HUMAN RESOURCE MANAGEMENT

LIMITATIONS OF PROJECT STUDY:-

HUMAN RESOURCE MANAGEMENT IN HSBC

Methodology of the study:

HUMAN RESOURCE MANAGEMENT IN HSBC

INTRODUCTION AND MEANING OF BANKING:-

HUMAN RESOURCE MANAGEMENT IN HSBC

HUMAN RESOURCE MANAGEMENT IN HSBC

Types of banks in India:

HUMAN RESOURCE MANAGEMENT IN HSBC

The major types of banks in India are as follows:

HUMAN RESOURCE MANAGEMENT IN HSBC

The Functions Of Banking

HUMAN RESOURCE MANAGEMENT IN HSBC

HUMAN RESOURCE MANAGEMENT IN HSBC

HUMAN RESOURCE MANAGEMENT IN HSBC

HUMAN RESOURCE MANAGEMENT:-

HUMAN RESOURCE MANAGEMENT IN HSBC

What Is Human Resource Management?

HUMAN RESOURCE MANAGEMENT IN HSBC

HUMAN RESOURCE MANAGEMENT IN HSBC

HUMAN RESOURCE MANAGEMENT IN HSBC

HUMAN RESOURCE MANAGEMENT IN HSBC

HUMAN RESOURCE MANAGEMENT IN HSBC

HUMAN RESOURCE MANAGEMENT IN HSBC

HUMAN RESOURCE MANAGEMENT IN HSBC

HUMAN RESOURCE MANAGEMENT IN HSBC

HUMAN RESOURCE MANAGEMENT IN HSBC

EVOLUTION OF HUMAN RESOURCES MANAGEMENT:

HUMAN RESOURCE MANAGEMENT IN HSBC

SCOPE OF HUMAN RESOURCE MANAGEMENT:

HUMAN RESOURCE MANAGEMENT IN HSBC

Training and development Organization development (OD)

OBJECTIVES OF HUMAN RESOURCE MANAGEMENT:

HUMAN RESOURCE MANAGEMENT IN HSBC

HUMAN RESOURCE MANAGEMENT IN HSBC

HUMAN RESOURCE MANAGEMENT IN HSBC

HUMAN RESOURCE MANAGEMENT IN HSBC

Human Resource in Banking:-