Purpose of an HSBC and Its Operating Environment - Example

Lo1. Understand the purpose of an organization and its operating environment

• • Understand the purpose of an organization and its operating environment

Organizations only exist in the world today mainly because of one reason- the purpose. Every organization has a purpose regardless of its size. Generally, the fundamental purpose of an organization might perhaps involve selling a product, providing service or even the combination of the two. The goals of an organization can be formal or informal; however, this greatly depends on the size of an organization. The larger an organization, the higher the likelihood that there exist formal or rather written goals based on the operations and the advancements in the organization. Hence, the popularity of the terms: Mission, vision, and objectives (Callaghan, 2015).

• Mission: An organization’s mission entails the overall purpose or goal of an organization together with the scope of its activities in relation to what each stakeholder (employees, customers, administrators etc.) anticipates from the organization. The general purpose of the HSBS is to link customers to opportunities by assisting business, economies and people to prosper.
• Vision: An organization’s vision is the position or place an organization desires to reach in the future expressed in a statement. The vision of HBSC is to be the topmost and the most valued bank around the globe.
• Objectives: specifies how the general purpose can be reached. The objectives of an organization must be specific, measurable, attainable, relevant and time-bound. In this case, the vision of HSBC is to capture global trade and capital flows and tap the most and greatest opportunities arising from the increased global mobility, wealth development and the ever-increasing population in its priority markets (HSBC, 2016).
  • Describe the products, services and customers of an organization

The increased globalization has encouraged organizations to travel around the world, leading to increased competition for customers within industries making every organization to strive for higher competitive advantages. It is, therefore, necessary to understand the products, services and customers for an organization such as the HSBC to attain higher competitive advantage within the banking sector (Callaghan, 2015).

• Products and services: In order to attract customers and increase revenues, an organization must produce high-quality goods and deliver good services. HSBC is mainly a service industry offering services such as overdraft protection, checking, saving and deposit, however, it trades in products such as credit and debit cards.
• Customers: A customer can be an individual, organization, government, funders and the beneficiaries of the product or service. HSBC mainly targets individual and business customers. The bank can also allow children to be the beneficiaries of a bank account. In addition, the bank funds many community projects particularly in Hong Kong, not to mention giving to charity. It also provides government-supported finance to help individuals or businesses to enhance their trade (HSBC, 2016).
  • Analyze how external factors impact on the business activities of an organization

Businesses are subject to not only internal forces but also external forces like politics, technology, and competition among other external forces. The external forces can influence an organization’s growth, revenue, and operations and ultimately impact human resources. When such forces are not well looked into, they might result in the failure of organizations, however, HBSC is such a successful company hence it is prudent to examine the external factors to have a glimpse of how they make the right decisions for the company. In particular, PEST analysis would be used (Callaghan, 2015).

• Political analysis: As a multinational organization, HSBC is protected by the policies and regulations in the countries they operate in. The company has remained to abide by the policies and regulations established by the various regimes to ensure successful and efficient operation of its business. Besides the government restraints and precincts, HSBC also formulates its own defense regulations.
• Economic analysis: HSBC is the world’s leading and most competitive institution in the banking and finance sector making it exhibit a secure economic strength. Despite the numerous threats they face in the majority of the nations they work in, the HSBC management does its best to move past the obstacles to establishing an enhanced economic conditions and minimize unemployment.
• Social analysis: HSBC is quite indispensable from the societies in which they operate. The company tries to ensure the societies they work with live a better economic life by providing better banking and financial services in addition to charity donations and government support funds. It also ensures discipline and good relations to secure good reputation in the societies.
• Technological analysis: Technological advancement has been part of the HSBC throughout its existence. The company has been able to use various systems and most importantly the internet to reach the extensive number of customers around the globe. The company also uses advanced facilities to help enhance production and its operations (HSBC, 2016).

Lo2 Understand the structure, culture and functions of an organization

2.1. Describe the structure of an organization and the functions within it.

The contemporary business society requires organizations to have flatter, flexible and collaborative organizational structure since it can allow for the utilization of multi-skilled teams to enable cost effective and increased operational efficiencies. Having a clear structure in an organization is prudent because it brings about order, synchronization, culpability, and effective management. This ensures that the organizations such as the HBSC can pursue its main purpose in a more efficient and effective manner (Callaghan, 2015).

• Hierarchy-community phenotype model: Organizations employ a wide range of organizational structures including matrix, divisional, hierarchy, networked, and virtual structures. The HSBC employs the Hierarchy-community phenotype structure, where organizations are not only purely hierarchal in structure but managers can still utilize the flat community structure within the company. Within the structure, the branches report to the executive committees within the countries. Generally, there is a central committee at the main branch of the bank located in Hong Kong who oversees the activities of all its branches and is further subdivided into the national and the local levels. The structure allows for more efficient management not only within the localities but also more importantly within the entire HSBC Company. The local performers have autonomy on their structures (HSBC, 2016).

2.2. Explain how the different functions work together to optimize performance.

The larger an organization is, the more complex it becomes hence the need for more specialized functions to ensure effective operations. In addition, coordination is required to ensure the separate functions are synchronized to help realize the common goals of the company. The HSBC is divided into various global operational and functional groups including the Human Resource, Marketing, Secretary, Finance, Communications, internal audit and Legal, sustainability and global risks. Each of these functional teams works in coordination with other teams and performs specific tasks aimed at achieving the organization goals (Callaghan, 2015). For instance:

• Human Resource: is accountable for the HSBC strategy on people. It is responsible for talent management, succession planning, and employee mobility within the organization. It also develops and directs strategies that underpin employees’ performance, culture, advancements, engagement, and rewards.
• Company secretary: the team leads, enhances and manages the corporate affairs of the company. It is mainly accountable for advising the company’s board of directors on corporate issues, managing stock exchange schedules as well as shareholder meetings and equity levitations.
• Global Communications: the team help designs and implement the company’s communication strategies, which underpin the HBSC business. It also protects the reputation of the company (HSBC, 2016).

2.3. Explain how the culture of an organization affects its operations

The various aspects of culture including values, norms, and assumptions can be established and adjusted in a way to help nurture the behavior of individuals or teams to allow a behavior that would help organizations to increase their performance. The HSBC sets in is core values in their routine work, everyday interactions with customers and its employees to ensure a smooth running of the company’s operations. The company believes in its three core values that help shape its culture and enhance its performance (Callaghan, 2015).

• Belief in doing the right thing: The value helps the company to remain firm in what is right and deliver the products and services in a way that is trustworthy and resilient. This helps build a strong organization culture committed to advancing the interests of the company and be accountable for any decision that defies the company’s interests.
• Belief in openness to different ideas and cultures: The value enables the HSBC workforce to communicate openly and in a transparent manner as well as treat individuals impartially, be engaging and value different opinions. These helps build trust among the workforce and increase the customer relations hence help improve operation efficiencies.
• Belief in connectivity: HSBC believes in establishing connections with its customers, communities, and the relevant regulatory bodies as well as connectivity within the organization. This enables the workforce to care about people and their advancements as well as demonstrate esteem and be supportive and receptive to each other (HSBC, 2016).

Lo3 Understand how HR activities support an organization

3.1. Describe how HR activities support an organization’s strategy

As mentioned earlier, the Human resource team is quite vital in advancing the HSBC strategy in human. To do so, each of the Human Resource team member must possess most of the qualities of HR professional as outlined in the fourth band of the CPD Human Resource professional map, which includes curiosity, decisive thinking, talented influencer, credibility, focused, courageous, and role modeling. In the HSBC, the Human Resources team roles follow the OCP map guidelines where the team engages in the employee relations, resourcing and talent planning, learning and development, employee engagement, performance and reward, and organization design. In general, the HSBC Human Resource managers are responsible for shaping the company and its business and uses the relevant skills to find solutions to help attain the company’s needs both in the present and in future (CIPD, 2016).

3.2. Explain the role of HR professionals in supporting line managers and their staff

Since both the Human Resource and the Line Resource management are geared towards the success of an organization, the Human Resource managers and the Line managers should work in collaboration. The Human Resource manager can help the line managers became more skillful in strategic human resource activities. In HSBC, the Human Resource professional help the line managers achieve this by assuming various roles (Malcolm & Whiting, 2013).

• Acting as strategic partners to the line managers: In HSBC, the Human Resource Managers has a duty to facilitate effective execution of HR services to the functional departments of the organization.
• Employment law guidance: The HR team can also help interpret the employment laws to the line managers to save on time and advance on the company’s business.
• Conflict Resolution: The HR team can also help the line manager solve issues among its staff.
• Equality and Diversity guidance: The HR team in HBSC ensures the entire workforce within the various departments recognize the importance of equality and diversity not only among the customers but also within the organization. This enables the company to pursue its goals in an effective way (HSBC, 2016).