Crisis Problems due to which Banks Change as Required in - Term Paper Example

Human Resources and Change Paper: HSBC Bank The objective of this essay is to proffer an aspect of organizational change as required in HSBC Bank, focusing on human resources management responsibilities. In the process, the following concerns would be addressed: (a) the change needed from the organization selected; (b) rationale for the change and possible consequences if this change does not occur; (c) how would this organization attract, develop, and maintain the workforce required to bring about the proposed change; (d) how should this organization attract a quality workforce and what should be considered in human resource planning, recruitment, and selection; (e) how should this organization go about the process of employee orientation, training and development, and performance appraisal to support the change; and (f) what should be done regarding career development, work-life balance, compensation and benefits, employee retention and turnover, and finally, labor-management relations. Human Resources and Change Paper: HSBC Bank Our world today is beset with financial crisis of insurmountable coverage. A multitude of corporations on a global scale declare bankruptcy and render thousands of employees jobless. The inevitable nature of factors which interplay and caused this financial turmoil on a global scale affect other facets of the organization’s operations, including human resources management. Several financial institutions are most affected by the crisis, of which HSBC Bank is one. The strategies employed by the organization, especially in the area of human resources, assist in its survival. The objective of this essay is to proffer an aspect of organizational change as required in HSBC Bank, focusing on human resources management responsibilities. The following human resources functions would be considered in the discourse: organizational change, planning, recruitment, selection, employee orientation, training and development, performance appraisal, career development, work-life balance, compensation and benefits, employee retention and turnover, and finally, labor-management relations. Background of HSBC Bank HSBC Bank’s holding company is located in New York City. Its official website boasts of its “nearly 400 branches in New York State, as well as 11 branches in Florida, six in California, and one branch each in Delaware, Pennsylvania, Oregon, Washington State and Washington, D.C.” (HSBC: About us, 2010, par. 2). . It offers a diverse portfolio of financial instruments including savings and current accounts, investment accounts, credit cards, loans, mortgages, insurance and international services. It supports a wide range of education and environmental projects and initiatives throughout the communities where they do business. Organizational Change Since the United States considered one of the most powerful countries in the world was the source of the financial crisis, the drastic effects cascaded to the rest of the countries directly or indirectly doing business with it. A number of financial institutions and business enterprises fail and close in countries such as Europe, Iceland, and Asian countries like Japan, China, India, from among the rest. Luckily, with the extent of drastic effects that the financial crisis have wrought, HSBC Bank remains strong in the market due to its strengths, as presented: (1) diversity of financial portfolio; (2) a strong customer relations skills; (3) a competent and professional management; (4) extensive global reach; (5) substantial resources. In fact, according to an article written by Marquez (2009, par. 15) “given the company’s traditional credit discipline, its share of trouble was relatively small compared to what the competition suffered through. And in the end, the bank’s strong capitalization, global diversification and discipline saved the day. HSBC’s exposure to a variety of resilient economies around the world, including Asia and Latin America, gave it an edge over U.S.-based firms”. Despite the minimal effect in terms of financial performance, HSBC focus on its competent and professional management as well as ensuring a qualified pool of diverse workforce to sustain its good fortune. In this regard, in view of increasing global competition, HSBC’s human resources strategy needs to prepare its personnel in various aspects of the global market. According to Epstein (2009, par. 12), “HSBC normally rotates its senior executives not only within a country but globally every two to three years, ensuring they amass a breadth of experience while also bringing fresh eyes to its business lines and geographic markets”. Rationale for the Change In global organizations, like HSBC, culture plays an important part in influencing and affecting the host organizations’ operations in terms of interacting with a collective group of people, whose values, beliefs and traditions are diversely variant from theirs. The complexity of managing global processes on a wider scale is eminent taking into account obstacles including “language, customs, current standards, education levels, and government regulations. Increased competition, demanding customers, and constantly changing business environments have forced management to seek radically different ways for their companies to succeed in the marketplace.” (Manrodt & Vitasek, 2004, 3) Rotating executives every two or three years might compromise application of appropriate leadership and management strategies in new cultures which could affect their performance in the long run. In this regard, HSBC’s human resources management must focus on training and development of personnel especially in the area of organizational culture and globalization. Failure to do so would create anxiety and stress to executives expected to deliver improvements on a new culture. Acquisition of Personnel Recruitment is a critical function of human resources management to ensure that the organization has an adequate supply of the right quantity and quality of human resources at all levels and in all positions at the right time and in the right place to man the jobs that have been properly identified and described. As management wants to ensure the healthy operation of the organization, human resource acquisition should be given priority. At HSBC, the policy of diversity is being actively implemented. Their official website reveals that “HSBC is committed to attracting and selecting only the best-qualified candidates while valuing a diverse workforce. We are committed to creating a workplace that nurtures individual growth regardless of age, citizenship, color, creed, disability, marital status, national origin, race, religion, sex, sexual orientation, or veteran status. To keep our valuable people, we provide an attractive array of employee benefits and services.” (HSBC: Diversity, 2010, par. 5) This policy ensures that people from diverse cultures with different backgrounds, educational capabilities and skills are honed to prepare them for new markets and various clienteles in the global market. Development of Human Resources It is worthy to note that HSBC has been awarded the employer of choice by diverse organizations and publications from 2007 to 2009 (HSBC: Employer of Choice, 2010). This attests to the fact that the organization takes good care of their human resources. For career development, HSBC implements the following programs: career track, formal skill training, management training, mentoring, performance management, training libraries and even reimbursement for tuitions for personnel who opt for higher education. Under global conditions, culture is seen as heterogeneous which consists of dissimilar elements or parts. Therefore, global organizations, like HSBC, should design strategies taking into consideration the diversity of cultures in the markets currently operate and plan to expand in the future. HSBC must train and prepare a competent leadership team who understands components such as the intricate systems and processes of their core competencies, the functions they are to undertake, the culture of the target markets and the ability to change cultural framework in the targeted markets. Knowledge of cross-cultural and interpersonal communication are likewise critical factors in ensuring a competent pool of human resources to encompass diverse cultural backgrounds of virtual teams. A knowledge of diverse cultures would incorporate and address issues concerning organizational culture and diversity. Maintenance of Human Resources As HSBC continues to belong to the top 10 financial services companies in the US, its management strives to maintain the quality of its human resources through “a wide variety of employee benefits and best-in-class 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” (HSBC: Benefits and Rewards, 2010, par. 1). With more emphasis focusing on the global markets to ensure HSBC’s success in the financial services market, its management must continue to improve on the delivery of benefits to its workforce. Their strategies on according work/life balance in terms of adoption assistance, child care centers, time-off programs, and company paid holidays, are commendable. They should strive to apply the same benefits in other HSBC affiliates all over the world. Conclusion The interplay of factors contributing to the financial dilemma which affected financial institutions like HSBC created a crisis so severe that the situation became unmanageable and complex. It diminished the confidence on financial institutions which are pinpointed as the cause of the financial breakdown. However, like HSBC, other financial institutions could restore confidence in financial services by adhering to the high standards of the codes of banking and those set by the Financial Services Authority. Likewise, by building on the company’s strengths and addresses areas where improvement have been identified as desirable and attainable, HSBC would ensure its customers that their financial institution remains strong despite economic pressures and a highly competitive global environment. By emphasizing corporate values such as long term ethical client relationships; high productivity through teamwork, its personnel would remain confident in delivering high standards of service ensuring customer satisfaction. A confident and ambitious sense of excellence exemplified and manifested by management and the rest of the human resources of HSBC is required to continue looking for ways to adapt and adjust to the competitive environment. It is an effective strategy to focus on international issues and be global in outlook and character. Finally, prudence, creativity, customer focused marketing and excellent human resources management helps establish the leadership that HSBC gained in their respective markets. References Epstein, J.D. (2009). “HSBC Bank USAs new president to be transferred from Malaysia.” Buffalo News (New York). Retrieved 15 April 2010. HSBC Bank USA, N.A. (2010). About us. Retrieved 15 April 2010. < http://www.us.hsbc.com/1/2/3/personal/inside/about> -----------------------------. (2010). Diversity at HSBC. Retrieved 15 April 2010. < http://www.hsbcusa.com/diversity> -----------------------------. (2010). Employer of Choice. Retrieved 15 April 2010. Marquez, H. (2009). HSBC Holdings PLC (NYSE: HBC) has absorbed the financial crisis impact and is now exploiting it. Retrieved 15 April 2010. Manrodt, K.B. & Vitasek, K. 2004. Global Process Standardization: A Case Study. Journal of Business Logistics, 25(1), 1 – 23. Retrieved 15 April 2010. Read More