A critical perspective on branding, concerned with issues in practical application of branding practices - Essay Example

? A critical perspective on ‘branding,’ concerned with issues in practical application of branding practices Word count: 2871 words excluding Title page and references 1. Introduction Lury (2004) explains that branding refers to a totality of various perceptions shown to the outside and inside world of a business; this conceives holistic branding process, which considers every aspect of the business to promote the chosen brand. Lury (2004) also adds that employees form a core part of brand promotion in any company; large businesses use employees as mediums to promote their brands not only to external potential customers but also to the existing and potential internal customers. A reflective analysis on the impact of branding on employees and organizations has been undertaken in the present context. Working with a large and influential brand is usually regarded as an example of prestige and privilege. One such brand is the HSBC bank that will be studied for its efforts to enhance brand image in this analysis. Drawing points from Dr. Brannan’s teachings from the theme titled, ‘Branding: Being 'you' inside and outside the organisation,’ likeliness of impact of branding on employees will be assessed against literature propositions. This analysis will specifically focus on Warhurst and Nickson’s (2009) perspective of employees’ position in branding efforts, which is a mere object of brand personification in order to please customers and stakeholders. In this process, an attempt will be made to understand how branding impacts employees’ place and meaning in organizations by relating to personal experiences. Important findings from literature will be evaluated along with identification of some critical reviews of management specialists. These evaluations will be helpful in explaining practical positions held by individuals in organizations with respect to brand promotions based on personal experiences. Important conclusions will be subsequently highlighted. 2. Working at HSBC: About HSBC: HSBC Bank is multinational bank setup in more than 80 countries and has over 7200 offices with more than 287,000 employees. HSBC bank provides the widest range of financial services to over 89 million customers across the globe. Its services are in retail banking, personal financial services, commercial banking and markets, and global private banking (HSBC history, n.d). Working as a back-office executive at HSBC bank is perceived as a prestigious position owing to its brand value besides its size and strength. This brand is considered as one of the greatest success stories in modern marketing, according to the bank’s website. HSBC was ranked number one financial services in 2011 in one of the surveys and its brand value is estimated to be worth $ 27.1 (Advertising, 2012). The HSBC brand: Globally, all HSBC offices and businesses follow certain common practices, which, they believe, reinforce their brand. One such practice that reinforces brand image and corporate reputation through certain regulations is its ‘core standards of behaviour,’ based on integrity, trust and excellent customer service; these standards facilitate building HSBC’s reputation, keeping different units united, in making them unique and earning them the competitive edge in the market. These core standards define certain behavioural components for all employees towards active listening, understanding, freedom to deliver, integrity, straightforwardness, forward thinking, and teamwork (Employee Handbook, 2008). Like many other far-fledged businesses and corporate sector firms, HSBC’s brand image is emphasized in almost every aspect that is visible to its internal and external customers. Its brand image also reflects in its choice of aesthetics in terms of interiors, logo design and color as well as in its rules for employee etiquettes. For instance, its slogan, ‘The World’s Local Bank,’ actually depicts HSBC’s mission of making its presence felt in every country and region by offering diverse and customized products. The bank attempts to introduce varied businesses and products under one brand thereby bringing the international bank to local people (Kotler & Keller, 2009; p.206). In addition, HSBC flaunts a unique logo and specific interiors in all its offices. Moreover, HSBC promotes its brand image and aesthetics through its core strategies. These core strategies are converted to implementable policies, rules and practices that are meant to be strictly adhered to by all its employees (Employee Handbook, 2008). The Employee Handbook (2008) elucidates specific rules and policies that reinforce HSBC’s brand image through its codes of business ethics and responsibilities, represented by ‘core standards of behaviour’ (2008; section 2.5). HSBC employees are well-versed with these standards and recall the standards of behaviour as well as apply them in every possible manner. In fact, demonstration of these core standards was one of the metrics in performance measurement system and in performance appraisals. 3. Literature review: According to Klein (2001), marketing is more important than the products and/or services offered for business sustenance. Klein (2001) also asserts that advertising is a part of branding, which forms the core of modern corporations, and that advertising is used as a medium to convey the brand’s meaning to the rest of the world. Klein (2001) points out that most of the well-known manufacturers do not produce goods, but buy them from others and ‘brand’ them using their company’s brand name. Moreover, the process of branding is very different from manufacturing process. While the latter could be one-time activity for a specific product in specific numbers, the former is an ongoing process and requires continuous exploration of new avenues to disseminate the idea of their brand. Fombrun (1996) clarified that establishing and developing corporate reputation is a part of branding and is aimed at attracting customers and investors in large numbers and also the best employees. However, Nguyen and LeBlanc (1998) argue that corporate reputation is also a function of perceived value, which varies with stakeholders’ interests. Sheth et al., (1991) had identified five different dimensions to value namely, functional, social, emotional, epistemic and conditional. This multidimensional disposition attached to value proposes that, despite company’s efforts to create a perception of their brand or reputation through value systems, customers and stakeholders develop their perception or attach value based on their need and/or situation. This conceptualization can be equated with Vroom’s (1964) Expectancy theory of motivation and as explained by Robbins (1982), which argues that the strength of a tendency to act in a certain way depends on the strength of expectation that the act will be followed by a given outcome and on the attractiveness of that outcome on the individual (as cited in Fox, 2007; p.64). Klein (2001) also suggests that brands invoke emotional feelings in people associated with them and also in those that are not; this is probably one reason branding is so significant for business. Individuals’ thoughts and emotions are linked to each other, yet emotions dominate when it comes to important decision-making processes and displaying behaviours. This feature of emotional underpinning by the brand image is often exploited in branding processes that invoke emotions in people (Gordon, 2003). Another perspective is that of employees’ looks that holds an important position in shaping aesthetics of the company. Postrel (2003) links employees’ looks and aesthetics to organizational atmosphere (Warhurst, Nickson & Thompson, 2009; p.104). Witz, Warhurst and Nickson’s (2003) study revealed the significance of aesthetics, even if theatrical, on organizational success. Through their study, Witz et al., (2003) concluded that aesthetics of labour is a deliberate initiative incorporated into corporate culture by management in work that involves face-to-face and voice-to-voice interactions between employees and customers. They further stress upon the fact that such aesthetics concerning behaviour are developed and incorporated through management practices such as recruitment, selection and training activities, even in service-oriented corporate businesses. This work introduces a new paradigm of performance of service-oriented companies through stylized approach incorporated in corporate practices. Corporate branding process is used to create specific images of the company not only to its customers but all other stakeholders including employees, investors, suppliers, partners, regulators, special interests and local communities (Hatch & Schultz, 2001). Antorini and Schultz (2005) argue that the concept of corporate banding, as a management tool used to instill brand consciousness in all these stakeholders and to control subsequent behaviour of employees and others, might breed rigidity in terms of managing uniqueness and differentiation linked to formulation and execution of corporate brand. Another perspective attached with this rigidity is that management attempts to dictate meaning instead of creating meaning through corporate branding. Based on the idea of rigidity that is incorporated through branding activities, Antorini and Schultz (2005) draw attention to the impact of groupthink, which is formed by a group of managers, towards unique and differentiating elements in the corporate brand in the form of inappropriate loyalty and/or misguided conceptions. 4. Upholding the brand: Experiences and issues Work at HSBC certainly elicited feelings of prestige and privilege because of its brand image. The brand of HSBC that depicts multinational presence, immense growth and employer of choice is created on foundations of strong strategies and values, as deemed fit by its executive management team. All employees are required to abide by its core standards at all times, whether at work or off work, especially, when they are representing HSBC. In fact, representation of HSBC brand outside was emphasized right from induction and on-boarding activities at HSBC bank. From a frontline employee perspective, the core standards as applicable to every HSBC employee are generally perceived as positive indicators for ideal employment. All employees are oriented towards these idealistic values without any exceptions, and deviations are subject to disciplinary actions. These core standards of behaviour in terms of listening, behaving, and understanding are outlined in the code, which describe specific actions for each behavioural standard. For instance, the value depicting ‘understanding’ is demonstrated by greeting all customers and colleagues in a friendly and personalized manner; one should demonstrate pleasant, enthusiastic and helpful behaviour always; all customers, clients and colleagues have to be treated with dignity and respect. Considering the fact that HSBC has a multinational presence, application of these standardized behaviours in various cultural setups could be problematic. As argued by Antorini and Schultz (2005), sometimes these standardized demonstrations could result in misguided conceptions. For instance, demonstration of enthusiasm by expatriates from London in China is considered rude because the Chinese prefer calm disposition; and the reverse could result in misunderstanding with Western colleagues (Lewis, 2000). These differences could permeate almost every behavioural aspect, which renders these behavioural standards as mere rules and regulations instead of mediums to enhance relationships and image. Moreover, regulatory obligations in the form of behavioural standards are more often forcefully demonstrated by the employees, which is also the cause for significant levels of frustration and dissatisfaction amongst employees. Employees even tend to deliberately demonstrate these behavioural standards because adherence to core standards is one of the metrics gauged in performance management process. Hochschild (1983) criticized that companies exchange monetary and reputational benefits with employees’ emotions or feelings, which questions the ‘social’ being in the human body; a similar critique came from Warhurst and Nickson (2009). Adhering to the bank’s dress code and highly formalized work schedule are excellent practices to maintain brand image and discipline, respectively. However, employees will be least motivated or enthusiastic about such practices if their commitment and intrinsic motivation to work for the bank are low; this will again lead to only an exchange with the company and its customers rather than the emotional connection, which is the aim of all branding initiatives. Here, Klein’s (2001) point about branding products manufactured elsewhere brings different perspective. Branding, or decorating, employees with defined behavioural standards to match corporate image will become superficial activity and the outcomes may not be as effective as expected. Employees are shaped to match corporate image through training, on-boarding, coaching, and mentoring within the bank. Its core standards of behaviour add greater emphasis to the shaping process. However, Fleming (2005) argues that managing or controlling employees with internal corporate identity regulations can easily lead to cynicism and resistance. The cynicism and resistance can be further strengthened if the employees carry their wealth of work experience from elsewhere. One important reason for lower commitment and motivation and high frustration among employees at HSBC‘s back-office setup is the career advancement opportunities it provides to its existing employees. HSBC follows flat hierarchy throughout its functions and offices like many other companies, in order to facilitate better control over decision making and ownership and to promote innovation (Pisano & Verganti, 2008). This structure showcases HSBC as a brand inclined towards innovation and employee empowerment. However, employees at frontline and middle management levels perceive it as a threat to their career advancement. 5. Implications of branding: Branding carries multi-dimensional implications for business and companies (Bengtsson & Servais, 2004). Considering Antorini and Schultz’s (2005) argument which emphasizes that brand-consciousness creates limitation to organisation’s growth, it is true that strategists struggle to hold on to the brand image whenever they attempt to modify or introduce new management practices and policies. This is referred to as loyalty towards particular perception created by the brand image. While it is the right thing to do, these perceptions as well as practices might require completely different paradigm with changing times. From perspectives of Nguyen and LeBlanc (1998) and the argument presented in Vroom’s (1964) Expectancy theory (Robbins, 1982), individuals’ perceived values have a strong hold on corporate reputation as well as branding attempts. These perspectives further change based on employees values. For instance, the core standards of behaviour suggests employees to take pride in providing excellent customer service and personal responsibility for getting things right the first time (Employee Handbook, 2008). Getting things right the first time sometimes requires employees to be empowered to make certain decisions in certain situations. Although employees are empowered to take decisions, there also exists a cap on the degree of empowerment. For instance, there are limitations up to which waivers can be given by employees at various levels. if an employee at the frontline has to give waiver to the customer because of bank’s fault, and if this employee values responsibility, then he/she would not be motivated to approach superiors for the waiver in case of higher amounts. This employee would perceive the system as bureaucratic. In fact, Grant (2010) highlights that HSBC’s efficiency and high quality are results of management systems that are based on principles of bureaucracy. Management systems based on principles of bureaucracy coupled with flat hierarchy further complicate things for employees at HSBC in terms of enjoying freedom to take decisions related to work or involving in any other initiatives because controlling point still exists, but with fewer people. These fewer people at management level will be required to weigh greater number of odds when approving employees’ initiatives or ideas. Standardized behavioural principles might be perceived to be inconvenient for other cultures, which will further affect employees’ motivation towards commitment to corporate reputation. Headquartered in London, the HSBC group operates in five regions: Europe; Hong Kong; the rest of Asia Pacific; including the Middle East and Africa; North America; and South America (HSBC, n.d). Most of the core standards of behaviour are highly formal and subjective. Misinterpretation, misunderstanding and inappropriate gestures can cause complications. Hatch and Schultz (2001) assert that management of corporate brands requires a well-balanced approach between its constituents namely vision, culture and image, which can be possible only through effective dialogue between top management, external stakeholders and members of the organisational culture. Effective dialogue between top management and members of organisational culture, which includes employees, is an outcome of effective leadership, which will further influence external stakeholders such as customers and shareholders. 6. Conclusions: Corporate branding effectiveness is directly related to level of commitment, open attitudes, and respect for corporate values. HSBC uses various branding activities such as slogan and a logo, aesthetics for interiors, dress code etc, core standards of behaviour expected from employees etc. Literature review on branding highlights various perspectives. Branding in service industry is an ongoing process and is facilitated by various branding activities. Corporates, such as HSBC, strive to uphold their brand reputation through corporate regulations imposed on all employees. However, the human factor intervenes in the process of adherence to the regulations and striving to establish an emotional connection. The strife in this process is mostly due to differing values of individuals. Branding process takes advantage of its ability to invoke emotional responses in individuals, which initially succeed in attracting individuals but cannot tackle the disturbance that employees experience eventually due to differing values, needs, understanding, attitudes and motivation. Corporate branding breeds rigidity at organisational level, which could be difficult to change when need arises. Assessment of the implications of branding in comparison with personal experiences at HSBC has revealed some findings in conformance with critique in literature as well as certain unique issues. For instance, achieving corporate reputation through regulations limits growth and innovation within the organisation, as seen in limitations posed by flat hierarchies. Secondly, differences in individual values and organisational values could lead to chaos resulting in employee frustration and de-motivation; this further results in employee turnover and affects organisational performance. Regulating standards of behaviour for employees across countries could result in misinterpretations and misunderstanding among employees and between employees and customers. Considering these implications of branding and of tools used in branding process, it would be apt to emphasize Warhurst and Nickson’s (2009) argument that employees remain as mere objects of brand personification and eventually burnout carrying the burden of the brand they are associated with instead of continuing to regard the brand with pride. References Advertising (2012). About HSBC.. Available from www.HSBC.com. (Accessed April 19, 2012) Antorini, Y M and Schultz, M. (2005). Corporate branding and the conformity trap. In Schultz, M’s Corporate branding: Purpose/people/process : Towards the second wave of corporate branding. Denmark: Copenhagen Business School Press. (pp: 57-78). Bengtsson, A. and Servais, P. (2004). Co-branding and the effects on inter-organisational relationships. Presented at 20th Annual IMP Conference, Copenhagen, Denmark. Employee handbook. (2008). Employee Handbook – HSBC Holdings plc. 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