Title - HSBC’s HR Policies
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Table of Contents
1. Introduction
The present report analyses the case
study of HSBC bank and critically analyses the issues faced by the organization
and the way they were addressed by the organization. The report further critically
evaluates the advantages and disadvantages HSBC’s HRM policies and practices in
East Asia, specifically, global talent management, standardized rewards and
high levels of investment in training and development
The report further considers how policies and
practices need to be further developed to ensure retention of
talent in the company.
2.
Recruitment and Retention
The
company decided to use a global talent management process for attracting
potential talent and for retaining them in the company. HR executives from the
company paid visits to the company and used interviews, panel discussions and
flexible feedback based systems. Based on these candidates were shortlisted.
However,
cultural barriers may affect the implementation of this plan. It is not simple
to face cultural barriers. It is productive to be opening minded along with the
proper communication of Asian employees so as to be aware of their mind frames.
So as to apply international standards at the place of work, it is helpful to
infrequently stop and understand the reason of the behavior patterns of people
of Asia. Theories of providing face and forging appreciable relationships with
staff may be considered counterproductive to the western idea of competence and
profit maximization along with the criticism of Asian views of human
associations for partiality and corruption. Yet, an appreciable awareness and
praise for Asian cultural features is necessary. Asians are usually eager to
get better at personal and nationalized level. Praise for Asian cultural
features along with the proper motivations may provide Asian workers an
international outlook and proper contribution towards business and
organizational objectives. Significantly, organizations prevailing within their
home country borders possess the comfort of conducting businesses with a
comparatively narrow set of financial, cultural, and regulatory variables,
because HSBC is from Hong Kong is essentially a capitalist competitive economy
Bhopal and Rowley(2009). An organization with diverse international trade, is
usually does not get benefit of such comparative homogeneity. For instance,
least amount of official holidays in U.K may vary from not any to 5 weeks per
year in Thailand. Other challenge is the requirement of proper security along
with terrorism alertness training for workers posted in the nations like
Bangladesh, where kidnapping of overseas employees is extremely common.
Though, employees such as in Hong
Kong are officially allowed vacations for 5 weeks, policies may vary from
nation to nation, still in Europe, there is tendency to stress on work group.
The company’s current employee share based system may succeed but generally
individual employee incentive system is considered in Asian nations. A famous
research by Professor Geert Hofstede depicts other international cultural
dissimilarities that may affect the recruitment system currently followed by
the bank. Hofstede states that the communities vary foremost in the power
distance i.e. they are different to a level where less strong members of
organizations recognize and anticipate for equal power distribution.
Individuality vs. collectivism depicts the level up to which relationships are
not strong. In the nations where individuality is appreciated, every citizen is
responsible for him or her along with his or her immediate family
(Zhu, 2002).
Examples
of Individualistic nations may be Canada and the United States while examples
of Collectivist nations may be Indonesia and Pakistan. Hofstede stated that
Masculinity vs. Femininity can be explained to a level, community give
preference to forcefulness i.e. masculinity in comparison to gentleness i.e.
femininity. Masculinity is valued more in Japan and Austria whiles less in
Denmark and Chile.
These inter nation cultural
dissimilarities have various HR propositions for HSBC. Foremost, they demand
the requirement of adoption of HR practices like testing and pay plans to
domestic cultural considerations. Further, they recommend that HR department in
the overseas office may be formed with the residents of host- nation. The high
level of understanding and compassion for the cultural and attitudinal
requirement of employees is ever significant while recruiting workers for
foreign subsidiary (Ding and Warner, 2009). Specialists stated that HR
employee, sharing worker’s cultural setting, is required to be empathetic
towards the worker’s requirements and anticipations in the organization &
therefore are able to run organization profitably.
Human resource executives in MNC’s
are challenged by the requirement for adapting HR strategies and methods so as
to consider dissimilarities among nations in which every subsidiary is
established. Various factors requiring such adoption are mentioned below.
To read more…….
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