HSBC Bank (employee mistakes) - Research Paper Example

?HSBC Bank Employee Mistakes Essentially, the employee has been tagged as a person whose services affect the successful rate at which management would also work and the enthusiasm and motivation with which customer would have to do business with the company. For this reason if the work of the company becomes porous in the slightest way, the entire company becomes affected. It is against this general problem statement that this research work was set off. In order to understand the role of the employee in enhancing the successful running of an organization, a case study was research work was designed with specific emphasis on HSBC Bank. Major flaws of the employees that have to do with customer relations were examined. For instance the research tested the various ways in which the availability of training facilities would help in equipping the employee with up-to-date knowledge on how to relate to the customer in a manner that would motivate the customer to come back for more services (Heppner, Kivlighan, Jr., & Wampold, 1999). The effect of employee stress on the rate of delivery and general productivity rate to meet the demands of customers were also examined as well as the role of organizational systems in ensuring that the right platforms are created to check the conduct and behave of employees to towards customers. By and large, it was concluded that HSBC is currently faced with avoidable losses as a result of common mistakes committed by employees and these mistakes come about as a result of low training for employees and high levels of stress. The company is however in a position to changing the trend by increasing motivation and training for employees. 1.0 Introduction 1.1 Background Officially, the company that is commonly referred to as HSBC is known and registered as HSBC Holdings plc. HSBC Holdings plc is a British company with headquarters in London; whose major line of business is channeled at banking and financial service provision. This means that HSBC Holdings Plc is a financial organization who has other major companies in the same industry of finance as competitors. The company is touted as an international company with branches spread across the globe. There is a heavy representation of the company in major global economic destinations including Hong Kong, The United States of America, Mexico, Brazil and France. With such branches the company is known to offer prudent financial assistance to “over 50 million people worldwide to manage and save for their futures with a complete range of personal financial products” (HSBC, 2012). One of the highly commendable stands that the company has made over the years is that it has taken advantage of the globalization phenomenon to reach out to even more people who do not have the presence of the company in their countries. With such services such as online banking and online transfer services attached to the regular banking operations, HSBC was rated as the second largest banking and financial service company in the world (Kerlinger, 2006). It was also said that HSBC was the second largest company in public service delivery (LaFountain & Bartos, 2002). All these have been made possible by the 7,200 offices owned by the company in 85 countries with major listing on the London Stock Exchange and secondary listing in the Hong Kong Stock Exchange, New York Stock Exchange and the Bermuda Stock Exchange. On the London Stock Exchange alone, the official 2011 market capital of the company was quoted as ?87.4 billion (Rosenthal & Rosnow, 1991). This such a performance, there remains one thing left for the company to do and this is to maintain its statuesque or even think of making it better. 1.2 Problem Statement As the world continues to experience very huge competition in the financial sector with a strive to make good of the recovery of the present global economic recession, this research is seeking to examine the effect of training facilities, employee stress and organizational systems on the number of mistakes made by employees of HSBC and relate this to how some of these mistakes could be avoided and how a number of the mistakes have also accounted for major losses for the company in times past. 1.3 Contextual Information The employee has been identified as a very pivotal part for the survival of any organization (Thompson, 2007). It is not for nothing that they are at times referred to as the lifeline of the company. This is because of the role they play in lying between the management and the customers of the company. For HSBC however, there a number of avoidable mistakes identified with employees that by and large affect the successes of the company. 1.4 Background Literature Recent literature that takes closer look at the role of the employee as an agent of organization change for maximizing productivity and profits outline how the absence of effective training facilities can endanger the dream of any company into become a global icon (Urwick, 2003). By this, a number of training facilities have been identified as very useful and appropriate for employees in the banking and financial services department. Some of these have been named as in-service training, conferences, seminars, brainstorming, advanced education and ground breaking responsibilities (Vancouver, 2006). It is also lamented how some global companies that have the capacity to train their employees fail to do so because of the mere explanation that training takes valuable time away from employees to be at post and deliver. The truth of the matter however is that a trained employee is twice better if he or she spends half of his or her time at post than one who is not trained and would be at post on a full time basis (Pritchard, DeLeo, Von Bergen, 2006). When employees are stressed also, research has showed that their general output of work can be affected greatly. This is because such employees lack the mental focus to deliver excellently and they tend to resort to very unacceptable and awkward ways of overcoming their stress such as the use of hard and un-prescribed drugs (Valence Incentive Motivation Techniques, 2005). What is dangerous is that these self medications only worsen their situation by slowing down on their performance rates entirely. In the light of this, it is admonished for managers to create very useful avenues for their employees to shed off stress. Some of the basic techniques that can be used could include the shedding away of working times by creating more room for on-the-work breaks, holidays, vacations and extended weekends. It is important again to note that a revitalized and rejuvenated employee will work twice better than one that is not (Quick, 2009). Organizational system has also been pointed out as an unavoidable necessity if employees are to perform creditably and as expected of them. This is because organizational system has a lot of components that ensures that everything that needs to be done right is fundamentally done (Rarick, 2007). For instance it caters for the regulation of the performance of employees to ensure that they are living up to expected standards. With an effective organizational system, al non-performing employees who make so many mistakes on regular basis shall easily be identified and cautioned. 2.0 Theoretical Framework 2.1 Variables for the Study 2.1.1 Dependent Variables A unique about dependent variables for any academic and scientific research of this nature is the fact that they are responses that are measured. This means that the researcher has no control over these variables and cannot influence them to suit an expected result by the researcher. From the research problem presented, there is one of such dependent variable that stands out and that has to do with employee mistakes at HSBC. Theoretically, it can be understood that in the conduct of the present search, the researcher is not in a position to manipulate how employees at the company should commit mistakes or the rate at which they should do this. The mistakes committed by employees are dependent of the research and constitutes a presumed effect on the research (University of North Carolina, 2012). 2.1.2 Independent Variables Independent variables for any research on the other hand give the researcher some room to manipulation of results and factors. This means that “in an experiment, the independent variable is the variable that is varied or manipulate d by the researcher” (University of North Carolina, 2012). With the present study, there are a number of independent variables that the researcher shall be dealing with. These include training facilities, employee stress and organizational systems. By placing these as the independent variables, an inference is not being made that the researcher shall determine the kind of training facilities, employee stress or orgainisational system that should exist at HSBC. Rather, the researcher is making reference to the fact that in the course of the research, the effect of these variables can be measured especially by determining the degree by which a degree of each of the three variables can affect the company negatively or positively. 2.2 Conceptual Model Organizational losses in terms of customer satisfaction, profits and company growth and expansion are greatly influenced by the variables discussed above. For instance, because the employee is expected to liaise between management and customers, there is the likelihood that common mistakes committed by the employee could lead to the conveyance of wrong information and details to and from customers to managements (Butler, 2005). these bad behavior or employee mistakes are also accounted in the existence or absence of a some core factors, which are considered as the independent variables. These factors include the kind and propriety of training facilities available to employees, the degree of employee stress and the kind of organizational system instituted by the company (Calder, 2005). This could therefore be summarized that the three independent variables could be caused and or controlled by the dependent variable and the ultimate basis to these variables is organizational losses, which can be reduced if the right things are done or can be increased if the right measures are not put in place. The conceptual model that shows the relationship between the dependent and independent variables and organizational losses is presented in the schematic diagram below.                   Key Dependent variables Independent variables 2.3 Hypothesis The absence of adequate training facilities at HSBC that is coupled with high levels of stress and a poorly regulated organizational system will create room for employees to make mistakes, which will subsequently increase the rate of losses for the organization in terms of customer satisfaction and fiscal profits. 3.0 Methodology 3.1 Research Approach This research shall incorporate the case study research design. Case study is generally estimated as the most ideal for the present research work because the current research problem has to do with the critical study given to a selected entity, which is the HSBC Holding Plc. In case studies, researchers are seen identifying a specific entity such as what is prevailing now and critically analyzing them (Chen and Chung, 2009). With this present research, efforts are being made to ensure that the researcher satisfies the principles of both qualitative research study and quantitative research study. This shall be done by undertaking both primary data collection and secondary data collection. Fundamentally, the primary data collection shall set the pace for the quantitative research as it shall involve the use of field data collection from the company’s premises and other settings to test the hypothesis test. These primary data to be collected shall be handled quantitatively by using basic mathematical and scientific approaches such as the use of tables, percentages, charts and graphs to bring out the empirical analysis of the data. Then the secondary data shall be incorporated into the qualitative research because that will merely involve the use of existing data from sources such as books, articles, financial reports and internet sources. These sources shall be influential in the literature review and shall not involve any quantitative descriptions. 3.2 Reducing mistakes with effective training Training is a very central part of human resource development. Training has the potential of enriching the potentials that are possessed by the human resource base of the employees (Child, 2004). It is in line with this that the researcher argues that effective training can reduce employee mistakes in an organization. The banking and finance industry is one that is frequently changing with lots of dynamism that needs to be tapped by employees. Even though it is common knowledge that all employees on the staff of the company have undergone education that places them at very useful points in their careers where they can confidently refer to themselves as professionals, this merit will be short lived if constant training is not carried out to ensure that employees come up to date with the changing circumstances around their profession. From the arguments laid above, there lives one central task for the company to undertake without compromise and that is to adequately train its employees from time to time. By saying this, it is also very important to point out that the call for training should not be done for the mere sake of doing it. Rather, it is important that the training sections are adequately structured to ensure their effectiveness. Generally, an effective human resource training is one that would address specific needs of employees and be used to correct specific mistakes committed by employees on the job. For example if an accounts clerk is given the training of a public relations officer, this will clearly be defined as ineffective because it will not be able to solve any identified problems. To this end, literature reviewed as part of the secondary data collection points to the fact that training for human resource personnel for the company should not be organized in a mass format. Rather, there should be a well defined distinction among employees so that trainings that eliminate specifically identified problems will be dealt with. In the absence of this, present data shows that mistakes will continue to take place because employees of the company have never had the opportunity to being to other companies to realize how new and modern trends of doing business are being used. 3.3 Stress Coping Mechanisms for Employees The service department of all institutions and organizations has been identified as one of the worse hit when it comes to records of stress among employees (University of North Carolina, 2012). Through the data collection process, it was discovered that more employees at the services departments of the company suffer various degrees of rest because their work is often tasking to the brain. What this means is that these service providers use their brains a lot. In the finance and banking sector where HSBC belongs for instance, service providers need to be extra alert and cautious if they want to avoid fraud of all kinds. In doing this, they put a lot of strain on their brains. Meanwhile, stress refers to a state where the human mind is tired (Child, 2009). This means that it would take people who use their mental faculties a lot to experience stress. In the case of the banking and finance sector, those who work on monetary records to balance sheet also service as customer attendants. What this means is that when stress sets in for these workers, their ability to focus will be reduced and customers will become the ultimate sufferers to consequences that include poor customer satisfaction. In the second argument of the researcher, which is backed by data collected therefore, the researcher is emphatic with the argument that employees make more mistakes when they are under stress as they cannot concentrate. In fact, apart from the poor customer satisfaction that stress may be characterized with, it is common knowledge that an unstable and a mind that cannot concentrate is more likely to get decision making straight. By decision making, very casual issues like ad up and subtracting monies come to play. As soon as levels of stress become endemic among employees, the resulting consequence is likely to be unpardonable mistakes on financial records. In light of this, the researcher strongly holds the view that there remains so much effort that the company can put in place to minimize stress among workers. Some of these as suggested by employees of various companies include the need to give employees a lot of rest time in-between working schedules. It is also important to create avenues for relaxing the mind like holidays, parties, socialization and excursions. In the absence of these, employees are likely to carry their stress to their service delivery to customers and in balancing their sheets. 3.4. Inconsistency of organizational systems Today, it is common knowledge that organizations are identified by their organizational systems and structures. Some of the organizational systems exhibited by some of the companies make it possible for them to be referred to as either creative, strict, disciplines, weak, proactive, principled, potent, and so on (Child, 2009). This means that an organizational system could very much affect the working style and pattern of employees if it turns out to be one that is inconsistent and weak. Generally an inconsistent organizational system would create a situation whereby employees cannot find any clear cut trend and organizational culture. This way, they may never be able to predict the principles with which they are supposed to work. Adversely, they are in a position to think that there is always much room for them to conduct themselves in a manner that best suits them rather than conducting themselves in ways that are directed at commitment for productivity. Gradually, what happens is that employees begin to break simple rules with impunity because cannot be assured of strict principles that guard against such indiscipline. Sadly, an organization whose employees have lost the need to discipline themselves and always sit up to the task of performing creditably even in the absence of rules and orders from authorities is one that will have higher incidence of committing mistakes because of the absence of a reinforcement that forbids them from doing so. For the present company therefore, a definition of its organizational system should be a must that will not be broken for whatever reason. 3.5 Conclusion The competition for survival in the banking and finance sector of the economy continues to grow lager and lager by the day and HSBC cannot take itself out of the competition. Though a very reputable and respected company, the company can never say it has reached its peak yet as major economic deals such as mergers and acquisition among key competitors keep raising the size of those competitors to the level of HSBC (Child, 2004). In view of this, there remains a cardinal principle that the company must work within and this is to be the growth and expansion of the present capitalization of the company. But to achieve such growth effectively, the need for rendering effective customer satisfaction cannot be eliminated. Data collected in the present study has indeed indicated that customers today seek for more avenues to be satisfied in service delivery rather than looking at the cost of doing business. Meanwhile, this same research has exposed major flaws that are commonly associated with service delivery from employees of HSBC to customers. Having affirmed the hypothesis that the absence of adequate training facilities at HSBC that is coupled with high levels of stress and a poorly regulated organizational system will create room for employees to make mistakes, which will subsequently increase the rate of losses for the organization in terms of customer satisfaction and fiscal profits, what remains left for the company to do now is to start seeking ways of addressing some of these problems. In conclusion, the researcher would like to reiterate the need to make training programs at the company more frequent and effective enough to match up the task of changing global competition. Secondly, the company must take measures to ensure that employees are always in a very good mood to give off their best. This should be done through various ways of stress management mechanisms. Finally, organizational system of the company should be well defined to ensure that employees give maximum attention to the need to behave towards certain direction and act according to a defined organizational culture that is directed at improving their performance at work. REFERENCE LIST Butler, J., Womer, K. 2005, ‘Hierarchical vs. non-nested tests for contrasting expectancy alence models’, Multivariate Behavioural Research, Vol. 20: 335-352 Calder, B., and Straw, B. 2005, ‘The self-perception of intrinsic and extrinsic motivation’, Journal of Personality and Social Psychology, Vol. 35: 599-605 Chen, MS and Chung, J., 2009, ‘Note on the Production Function for Organizations doing Case Work’, Mathematical Social Sciences, 19: 135-141 Child, J. 2004, ‘Organisation structure, environment and performance: The role of strategic choice’, Sociology, Vol. 6: 1-22 Heppner, P. P., Kivlighan, D. M., Jr., & Wampold, B. E. (1999). Research design in counseling (2nd ed.). New York: Brooks/Cole. 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