CIPD Branch Presentation, Ethics, and Accountability - Case Study Example

Running head: CIPD Branch Presentation, Ethics, and Accountability Your name Course name Professors’ name Date Part 1: CIPD Branch Presentation Background information The organization to be covered in this paper is Hong Kong and Shanghai Banking Corporation otherwise called HSBC Holdings Plc. This public company was incorporated in England and Wales. The organization has its head office in London and conducts business in five specific regions of Europe, Hong Kong, Asia Pacific, North, and South America. This group has listings on London, Hong Kong, New York, Paris, and Bermuda stock exchange. According to HSBA annual report of 2010, shares are held by more than 221,000 shareholders in 127 countries (Narayana, 2010). The institution provides banking and financial services to personal, commercial, corporate, institutional and investment, and private banking clients across the globe. In a bid to differentiate itself from competitors, the bank launched a campaign in 2009 that described HSBC unique characteristics. These differentiated characteristics were summarised in the words “The World’s Local Bank.” The objective of HSBC is to ensure consistent earnings and superior risk adjustment returns for the shareholder (HSBC Annual Report, 2001). One of the strategies used is competing as a universal bank in provision of financial services in areas where the company has scale or rather competitive advantage. The other strategy is to access fast growing economies such as Greater China. This bank recognises that highly motivated employees can assist the organization reach its goals. Strategic management of human resource would therefore go a long way in improving productivity of employees. HSBC key competitors The key HSBC business areas are in Global Banking and Marketing, Private and Commercial banking, and Personal Finance Services. All these sections allow the bank to use global trends to stimulate its current and new market. In the outlined business areas, HSBC faces stiff competition both emerging financial institutions and the existing global banks. Competitors facing HSBC Holdings Limited mainly comprise of the global banks i.e. Citibank, ING, JP Morgan Chase, Bank of America, and Deutsche Bank. Part of multinational banks has developed strong and profitable franchises with a number of services. JPMorgan Chase and Deutsche are entering emerging markets with their narrowed business activities (Adams, 2000). The two banks have their sight on investment banking and private banking activities. The vision of HSBC Holdings Plc is to become the world local bank with an exciting working environment for staff, a high-class experience for customers, realising returns for shareholders, and a good corporate social responsibility. The organization has three core values including teamwork, integrity, and performance. HSBC employs a customer-focused strategy of delivering superior customer experience and broadening customer relationships. The strategy further recognises the need for operational efficiency, balancing risk and reward, and inculcating culture driven by high performance. Moreover, the strategy appreciates the need to integrate corporate responsibility into business model. Key priorities of HSBC Bank The priorities of HSBC are evident in its slogan “The World’s Local Bank.” This means that the bank intends to combine global emerging markets and the diverse nature of customer base with the strong financial base and wide international network. Organization structure of HSBC is driven by the need to enhance efficiency by capitalising on local, regional, and global economies of scale. It is in the priority area of HSBC to redesign product processes and operation to ease the process of doing business. This calls for robust technological ability and building processes and solutions from the perspective of the customer. HSBC business performance in the last 1-2 years In 2009, markets were recovering from the global financial crisis of 2007/2008. To salvage financial institutions from falling, governments around the world offered emergency support in form of stimulus package but HSBC did not require such funds since it was recording profits during the crisis. The crisis saw several institutions shift their attention from the west to the east. This followed a realisation that developing economies were now driving growth in the world contrary to previous observations (Stroh, 1998). In fact, it was expected that developing economies would grow three times faster than developed markets and this motivate HSBC to focus on investing in Greater China (Adams, 2000). As a market leader in mortgage and deposits, issue of credit cards, and other business segments, HSBC intends to use this platform in establishing its base in China. The move is towards increasing its international network coverage and meeting the needs of its unique international customers. Moreover, HSBC is determined to become a largest bank in the emerging market of the east. The strong financial performance of the HSBS in 2009 has enabled it to withstand the shocks of global financial crisis. During the same year, pre-tax profits were significantly high, up by 36%, which demonstrates unquestioned financial strength. HSBC organizational structure HSBC has 17 directors of which three are executive and 14 non-executive. It is apparent that majority of the directors should be independent non-executive directors. The HSBC board is responsible to shareholders for the management of HSBC business and stewardship of its assets. In addition, HSBC has a committee that derives its power form the board. The committee is responsible for looking into the various functional areas of the company. An example is remuneration committee that oversees human resource issues specifically in terms of remuneration policy, retirement benefits, motivation plans, and improvement ability of employees. In relation to HSBC organizational chart, shareholders are at the top followed by board members then human resource. The next level is cash centre, which is succeeded by operations department and lastly is the marketing department. This is a form of tall structure with a chain of command. The highest level of the structure i.e. the shareholders; contain most authority while marketing department has less authority. An advantage of this model is that employees are closely supervised due to the existence of narrow span of control. Besides, this organizational structure presents clear progression and promotion opportunities. On the contrary, the model is faced with a disadvantage of high management costs, slow decision-making process, and less freedom within the employees. The main functional areas of management within HSBC include risk management, financial control department, operations department, human resources, commercial banking, treasury, and personal financial departments. All these functional areas are indispensible for successful management of HSBC business investment. Human Resource function is the most important area of management given that it handles recruitment and selection, redundancy, industrial and employee relations, remuneration, career development, employee appraisal and employee data storage. HSBC strategically employs and manages diverse workforce sourced from across the world. The motivation behind the move is that a diverse workforce is capable of producing a balanced and rounded organization. Additionally, the company will be able to adapt to changing business environment. HSBC treats employees with respect so that the company gets back the respect it deserves. HR’s roles and functions in management structures HR is vested with the role of labour planning. In this case, HR takes into consideration labour requirement in the organization. The purpose of labour planning is to curb overstaffing which is wasteful and expensive. Planning also eliminates understaffing that culminates to loss of organizational economics and profits. Human Resource within HSBC plays the role of employee selection and motivation. The department encourage employees to be productivity so that the whole organization with its employees progresses. What is more, human resources manage employee relations by formulating policies that tackles healthy relationships and how to address problems within the realm of work relationships. The role of training and development and measurement of performance still lays with HR. HSBC trains its employees while paying attention to the changing business environment. A trainee program was established in HSBC to cultivate required expertise in any business area. To add on this, HSBC has formulated a local, overseas, and online training course to staff members. Overseas attachment to executives and officers is also available for exposing them to necessary international experience. To develop future leaders, HR has identified future talents in HSBC and subsequently sent them to leadership assessment centres and development program. Forces shaping the HR agenda There are four distinct forces shaping HR strategies and they include globalization, technology, talent management, and demographics. In the recent times, International HR Management gained recognition following the effects of globalization. The labour market in the current era forces organization to take a global look at how workforce is planned and deployed. The priority for HR is now to find the right people to work at the right place and job. For effectiveness in managing globalization, human resource ought to focus on the global outlook as opposed to local. Fast adaptation of technology is vital in the present world economy where cost efficiency is the key driver of long-term growth. Technology, in form of HR Information Systems leads to achievement of competitive advantage. There is need therefore to allocate more expenditure to IT for the purpose of maintaining and updating software. HR functions such as career management, compensation and benefits, workforce planning, and reporting can be executed well by use of IT. Talent management seeks to address the difficulties in recruiting, developing, and retaining highly competent workforce, and provision of opportunities to advance career. Talent management is simply managing new employees and the highly capable existing ones. To excel in management of talent, support by both top and line management is necessary. It is important to formulate a transparent talent management system that illustrates selection criteria and development application to be used. Moreover, the success of HR in management of talent depends on a system that increases employee engagement and motivation. In terms of demographic forces, the global workforce is aging which means that organizations are undergoing knowledge loss that is difficult to replace. To address this issue an organization is forced to assess its workforce and conduct internal training or job rotations to enable people to work in different job groups. To help in suspending knowledge loss, some organizations offer employment options to retired labour force. The option of coaching senior personnel can be utilised in replacing knowledge. Ways in which HR contributes to organizational effectiveness According to Richard (2009), organizational effectiveness simply means performance in an organization that is associated with efficient operations and external factors such as corporate social responsibility. Organizational effectiveness can be improved by employing progressive human resource practices that emphasises on assessing the knowledge, skills, and abilities necessary for the future. Staffing, appraisal and evaluation, remuneration, and training and development programs should be instituted in a bid to enhance effectiveness of workforce. These practises by the HR department have been referred to as “high performance work practices” by Huselid (1995). To maintain high performance and eventual organizational effectiveness, Burack (1994) argues that organizational credibility with employees ought to be promoted. Other approaches suggested by the researcher include participative management and employee involvement, focusing on high achievement reciprocity, and developing combined group approach to management. Role of HR in strategy formulation and implementation To succeed in implementing strategies, it is essential to gain support and contribution from all strata of the organization. Human resource function can access and influence organizational employees thus making its role in implementation of strategies critical. In order for a strategy to be accepted, a culture that displays positive attitude towards change is necessary. The role of HR in this scenario is to promote training and development activities so that employees know the reasons for change. After introduction of this culture, HR goes ahead to build cordial relationship between levels of the organization. Vertical and horizontal integration is required if the strategy formulated at the top management level is to be experienced in every business function. Vertical integration explains HR effectiveness i.e. the ability of HR to contribute to the mission and objective of the organization. Lower managers are supposed to mobilise subordinates towards success of the strategy by convincing employees of the personal and career benefits accruing from the new policy. HR thus enables the people to do the right thing. On the other hand, horizontal integration deals with achieving efficiency by aligning strategy, systems, and tools with each other. An example is job appraisal instrument that is linked with personal development. The task of removing discontent during strategy formulation rests with the human resource. At some stage in implementation, HR should beware of problems that can arise. This is the point where line managers monitors employee reception of the new strategy. The HR department now reviews changes brought about by the strategy and goes ahead to institute Hr policy to guarantee success of the new strategy. Part 2: Ethics and accountability Actions to enhance my professional and ethical conduct The ability to manage ethics depends on employee perception of fairness, ethical leadership at all levels, and streamlining formal and informal cultural systems with a view of supporting ethical behaviour. In appreciation of the fact that HR systems bring about evolution of fairness and sustain organizational culture while managers in HR design leadership training, HR professions are thus vested with the responsibility of managing ethics. My first step to improve own service as a HR professional is to change the perception of fairness by employees in a way the supports positive outcomes. The perceptions of fairness by the employee tend to have greater influence on ethical related outcomes. This is particularly evident where employees who perceive unfair treatment tend to balance this by conducting themselves in a way that harms the organization. On the contrary, those who perceive fair treatment will always act in a manner that supports management. To make sure that employee perceive fair treatment, I will design HR systems and interventions with a goal of actualising perceived fairness. In this situation, emphasis is on fair procedures followed in decision-making and fair interpersonal treatment. This will be monitored through regular surveys and subsequent changes made based on outcomes. The move is further intended to remove feelings of discrimination, a standard that is outlined by CIPD code of professional conduct. I will then proceed to nurture my leadership skills and subsequently provide the required ethical leadership in all situations. Ethical leadership is indispensible when looking forward to creating ethical labour force. This follows an understanding that employees consult significant others in situation of ethical dilemmas. Organizational leaders are therefore obliged to provide this necessary guidance and leadership failure to which employees will seek help from peers and others. In providing ethical leadership, I will be caring and considerate to employee interests. Moreover, as a leader, I should be able to communicate ethics while also conducting myself in an ethical manner since leaders are always role models. To enhance ethics and accountability, I am looking forward to designing HR systems that are sensitive to performance, professional growth, and training. In doing so, I will be leading and mentoring employees towards the right direction. The third action to supplement my professional and ethical conduct in work is professional development. I will keep myself informed of technological advancement and change in practices and standards within the field of human resources. Professional development serves the purpose of exposing me to international human resource strategies brought about by globalization. As a human resource professional, a person is expected to provide special skills and advice. This is possible where knowledge is kept up-to-date. Through coaching and mentorship program, I will be able to gain more knowledge while passing on my experience to others. Additionally, I intend to encourage employees to proceed with their own professional development since ethics is all about sensitivity to needs of other people. By supporting education, training, and professional development in ICT, I will gain ability to meet diverse needs of professionals in their career paths. These actions are in line with CIPD standards of professional conduct. My other action is to use information in a manner that protects the rights of individuals especially with regard to acquisition and dissemination of information. My responsibility is to facilitate truthful communication and informed decision making. To reach this end, I will acquire and disseminate information in ethical and responsible way. When making decisions that affects employment decisions, only appropriate information will be factored in. This calls for an investigation into accuracy and source of information before availing it for decision-making. In the realm of training, hr policies, and practices, information should be accurate and complete. To achieve this, I will review and update such information frequently while also safeguarding restricted and confidential information. CIPD standards of professional conduct provide that a professional in HR must respect the need for confidentiality. This is within the confines of how information is used and disseminated. In situations of conflicting interests, I will protect the interest of stakeholders as well as my own professional integrity. It is not my intention to engage in activities that is tantamount to conflict of interests. To achieve this motive, I will go ahead and publish policies that guides on conflict of interest so that all employees are informed of what precedes the other in times of conflicts. My work as a HR professional is further improved by evading use of my position to achieve personal and selfish gains. Similarly, my service will be reshaped if I avoid seeking preferential treatment while serving as an HR professional. Besides, when conflicts arise, my task will be to disclose them immediately to appropriate stakeholders for redress. Reference List Adams, C., Litan, R.E. and Pomerleano, M., 2000. Managing Financial and Corporate Distress: Lessons from Asia. Washington: Brookings Institution Press. Burack, E.H., et al., 1994. 'New Paradigm Approaches in Strategic Human Resource Management', Group and Organization Management, 19:141-59. HSBC, Annual Report 2001. [online] Available at: [Accessed 8 November 2011]. Huselid, M.A., 1995. 'The Impact of Human Resource Management Practices on Turnover, Productivity, and Corporate Financial Performance', Academy of Management Journal, 38: 635-70. Narayana, M., 2010. HSBC Holdings Plc Sustainability Report 2010. [online] Available at: [Accessed 8November 2011]. Richard, P. et al., 2009. Measuring Organizational Performance: Towards Methodological Best Practice. Journal of Management, 35(3), 718-804. Stroh, L. K. and Caligiuri, P. M., 1998. Strategic human resources: a new source for competitive advantage in the global arena. The International Journal of Human Resource Management 9(1), pp. 1-17. Read More