Table of Contents........................................................................................................................................................................5

Chapter 1: Introduction..................................................................................................................................5

Objectives of our study:.............................................................................................................................6

Broad objective......................................................................................................................................6

Specific objective...................................................................................................................................6

SCOPE OF THE STUDY..........................................................................................................................6

Methodology:.............................................................................................................................................7

Limitation of the study:..............................................................................................................................7

Literature Review.......................................................................................................................................8

Chapter 2: Overview of Hong Kong and Shanghai Banking Corporation (HSBC)....................................10

Company Profile:.....................................................................................................................................11

History:....................................................................................................................................................11

Board Directors and Senior Management:...............................................................................................12

Organizational Structure:.........................................................................................................................13

HSBC mission statement: "We aspire to be one of the world's great specialist banking groups, driven by commitment to our core philosophies and values"................................................................13

HSBC Vision Statement:.........................................................................................................................13

HSBC Slogan:..........................................................................................................................................14

HSBC Values:..........................................................................................................................................14

Dependable..........................................................................................................................................14

Open to different ideas and cultures....................................................................................................14

Connected to customers, communities, regulators and each other......................................................14

HSBC Bank’s main competitors:.............................................................................................................14

Chapter 3: Employment at HSBC................................................................................................................15

......................................................................................................................................................................15

Employment guiding principles for Local and Expatriate.......................................................................16

Employment Policy..............................................................................................................................16

Types of Employment..........................................................................................................................17

Hiring internal Employees...................................................................................................................17

Confidentiality & Documentation........................................................................................................18

Types of International Assignments....................................................................................................18

Recruitment Process:...............................................................................................................................18

Job Requisition and Human resource planning...................................................................................19

Job description.....................................................................................................................................19

Qualifications...........................................................................................................................................19

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The Recruitment Process of HSBC Bank............................................................................................20

Types of Recruitment...........................................................................................................................20

Recruitment Sources and Methods:.....................................................................................................20

Mode of Recruitment for Management Trainees:................................................................................21

Requirement for all Employees:..........................................................................................................22

Selection Process:....................................................................................................................................23

Receipt of Applications........................................................................................................................23

Sorting out of Applications:.................................................................................................................23

Informing Candidates...........................................................................................................................23

Written Tests:.......................................................................................................................................23

Interview:.............................................................................................................................................24

Final Approval by Competent Authority:............................................................................................24

Physical Examination:.........................................................................................................................24

Joining and Placement:........................................................................................................................24

Restriction on Appointment:................................................................................................................24

Termination:.........................................................................................................................................25

Benefits....................................................................................................................................................25

Medical................................................................................................................................................25

Dental...................................................................................................................................................25

Vision...................................................................................................................................................25

Health Care Accounts..........................................................................................................................26

Dependent Care Flexible Spending Accounts.....................................................................................26

Associate Basic Life Insurance............................................................................................................26

Supplemental Life and Accidental Death and Dismemberment Insurance.........................................26

Performance-based compensation.......................................................................................................26

Approach used for expatriate compensation........................................................................................26

Leave policies..........................................................................................................................................27

Leave Rules..........................................................................................................................................27

Grant for Leave....................................................................................................................................27

Absenting from duty without leave......................................................................................................27

Privilege leave......................................................................................................................................27

Training and Development......................................................................................................................28

Internal Training Programs..................................................................................................................28

External Courses..................................................................................................................................28

Distance Learning................................................................................................................................28

Resident Management Trainee Program (RMT Program)...................................................................28

European training program..................................................................................................................29

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Providing a comprehensive insight into our retail and commercial banking businesses, it is designed to help employees develop the skills and experience you need to embark on a management career with HSBC in your home country through different placements overseas. This training is a part of HSBC’s performance management appraising process...........................................................................29

Performance Management.......................................................................................................................30

Achieving targets.................................................................................................................................30

Features of work..................................................................................................................................30

Consistency in the performance...........................................................................................................31

Behavior of the employee....................................................................................................................31

Accepting company's policy................................................................................................................31

Cost control..........................................................................................................................................31

Feedback from colleague.....................................................................................................................31

Challenging their employee.................................................................................................................31

Making Specification criteria...............................................................................................................32

Preparing Time period.........................................................................................................................32

Employee organization making the oriented.......................................................................................32

Chapter 4: Impact of Human Resource Management on Organizational performance of HSBC...............33

Effective Resourcing Strategy.................................................................................................................34

Effective Learning & Development.........................................................................................................34

Competitive Compensation Packages......................................................................................................34

Pay for Performance................................................................................................................................35

Reduce turnover.......................................................................................................................................35

Employee Grievance Policy.....................................................................................................................35

Chapter 4: Findings & Analysis...................................................................................................................37

Findings....................................................................................................................................................38

SWOT Analysis.......................................................................................................................................39

Strengths..............................................................................................................................................39

Weakness.............................................................................................................................................39

Opportunities........................................................................................................................................39

Threats..................................................................................................................................................39

......................................................................................................................................................................40

Chapter 4: Conclusions and Recommendations..........................................................................................40

Conclusion...............................................................................................................................................41

Recommendation.....................................................................................................................................42

References................................................................................................................................................43

Bibliography............................................................................................................................................43

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Increasing globalization has created more awareness of the need for managers to be sensitive to be cultural aspects in human resource management. Proper human resource management brings and understanding regarding the values and beliefs of employees from different cultural backgrounds. This report is comprised with evaluation and analysis of key performance areas in human resource management of HSBC holdings PLC. HSBC as an organization which operates globally with thousands of employee base, strategic HRM is inevitable. Recruitment and selection process of organization performs a significant role in attracting talent to the organization. Training and development strategy enhances employee job performance as well as career growth, further performance management and reward strategy defines the evaluations and returns for better performances. Recommendations have addressed aspects to be improved.

Objectives of our study:

Broad objective

The broad objective of this report has been to understand the policies and practices that Hong Kong and Shanghai Banking Corporation (HSBC) have regarding Human Resource Management (HRM). We will try to analyze their HRM policies and practice, finding out key issues and provide recommendations.

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Chapter 1: Introduction

Specific objective 

The specific objective has been to focus and analyze following issues

HR planning process Recruitment and selection process Training & Staff Development for the employees and management Different types of rewards and assessing whether the current reward system motivates the

employees or not Performance Management

SCOPE OF THE STUDY

The present research is confined to study the recruitment and selection process followed at HSBC. The study reveals the recruitment and selection process followed in the organization. Whether employees are satisfied with the recruitment process? Is the organization is providing ethical process for recruiting employees? The organizational study of HSBC was done with the study of recruitment and selection.

Recruitment & Selection includes information related to the way of obtaining the potential candidates the way of elimination or rejection procedure.

1. To analyze the present system and recommendations necessary.

2. Identification of the development needs.

3. To explore the possible area of defects to determine decisions regarding Change in procedure.

4. To study aims to provide guidelines for corrective measures to be taken.

5. Overall the study evaluates various factors which affect recruitment Procedure.

Methodology:

The information collected based on both primary and secondary data.

Primary data will be collected through direct interview from HSBC employees as well as other banks too.

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The secondary data will be collected through their official website, different articles, newspaper, annual report etc.

Limitation of the study:

The nature of our research requires a huge reference and internal management information which was not available. Moto of HSBC is “World’s local bank”. It is growing in hard competitive global market. It does not disclose all policies due to competition in the banking industry. That is why; the analysis will be conceptual. Moreover,1. Details about their policies are not available on internet2. Employees of the bank doesn’t share all kind of information due to bank’s non-discloser policies3. Our lack of knowledge and experience to analyze information properly

Literature Review

Human resource and the management is truly one of the functional and credible areas in the organization and human resource management has challenges that they must learn to recognize and learn to work out. It is now strongly felt that high morale and employee competence, distinctive organizational cultures, management process and systems are vital for the success for a company’s continuous success. It is being recognized that competitive advantage can only be obtained by building up highly motivated and skilled employees at all levels that will enable organization to compete in a volatile market scenario and to respond appropriately to the market needs, with regard to quality products & services and technological innovations.

To ensure the dynamic environment of an organization Human Resource Policy is the guideline of an organization, where the HR issues are suggested to manage. This policy covers all the aspects related to Human Resources of the organization. These include

HSBC holdings a British financial holding company with organs in Honking and shanghai opened in 1865 .the company shifted its headquarters from Hong Kong to United Kingdom in 2003. The bank has got intense competition all over Asia .the Company is doing well in business for the past 3 years and attained a huge rise in revenue. The financial performance of the company indicates that the company is achieving its goals and willing to offer better service and products to the customers,

HSBC has current employee strength of 26,000 employs and managers different kind of people all around the world. By doing so the company maintains a balanced and well-rounded employment status. This gives the company advantage to face all kinds of situations an issues .HSBC bank gives

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foremost priority to its employees and make certain their rights are preserved. Taking proper approach to HRM the company will soon be best in personnel among the competitors.

HSBC bank performs various types of HRM functions like it appropriate selection and identification of overall skills profile, Investment in training and development Motivation and appraisal. For implanting a resource strategy it must be translates the strategy in to practical action. Two models of HRM are practiced in HSBC called Hard and Soft model. Hard model insist on meeting the requirement with work force .soft model is considered as more employee oriented and give room to the employee to grow within the organization. HSBC bank implements both models of HRM and varies with the situation

Citi bank limited has also a proficient human resource management practice .it maintains recruitment and selection program so that it can attracts the appropriate employees selecting for the appropriate post tries to maintain effective training and development program .training helps the Citi bank employees to expertize themselves in their current job on the other hand development programs the employee to make themselves competent for future. . Citi Bank Limited has an established resourceful training institute .Experienced banker’s work as faculty members under the direct guidance of a director. Citi Bank Limited can be classified as either on the job or off the job training.

Rewards & Control Systems are meticulously refined to reinforce behavior that is deemed pivotal to succession the market place. The employees who don’t adhere to the cultural and behavioral norms of the organization, due to dissonance between the values of the individual and the values of the organization; are given a clear warning to either shape up or ship out.

Standard Chartered is the world's leading promising markets bank. It is headquarter situated in London. Its businesses though, have always been overwhelmingly international. Standard Chartered is name after two banks, which merged in 1969. They originally have known as the Standard Chartered Bank of British South Africa and the Chartered Bank of India, Australia and China. The Bank's Management Trainee Development Scheme takes place in Karachi, where they recruit management trainees. Standard Chartered Bank recruits the most talented individuals from the external market to supplement their internal pipeline of talent. Their Human Resources department provides guidance on the use of Â psychometric tests and has robust recruitment criteria to ensure that all candidates are treated fairly, equally and with respect. It has a global Graduate Recruitment Program; where in the region of 150 graduates are recruited each year on a management trainee program across all businesses, functions and countries. The selection criteria of Standard Chartered are based on knowledge, skills and talent. They are committed to providing equality of opportunity to all employees, regardless of gender, age, race, nationality, ethnic origin, disability, or marital status. They are committed not only to providing equality of opportunity to all employee, but also identifying what unique strengths each individual brings to the roles they carry out and the development of these strengths. The compensation package provided to the employees can divide into two categories of Slandered Chartered Bank. One is the sales personnel, who are compensating on their ability to meet their targets. Second is compensating the executives who are responsible for the overall functions of the Bank.

According to many writings HSBC bank ensures the evaluating the performance of the employees to achieve the target. The bank measures the employee's quality and quantity of work and will evaluate his performance accordingly. The organizations goodwill always depends on the quality work performed by the employee. So the company will be very keen on the way the employee does his work. The bank always tries to measure the employee's quality and quantity of work and will evaluate his performance accordingly. The organizations goodwill always depends on the quality work performed by the employee. So the company will be very keen on the way the employee does his

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work. Always set challenges to employees and should measure how the employee is taking up the challenge. Bank monitor the quality of the work and the time consumed to do the work. Bank

monitors the quality of work and the time consumed.

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Chapter 2: Overview of Hong Kong and Shanghai Banking

Corporation (HSBC)

Company Profile:

HSBC was born from one simple idea – a local bank serving international needs. In March 1865, HSBC opened its doors for business in Hong Kong, and today we serve around 46 million customers in 71 countries and territories.

The experiences of the past 150 years have formed the character of HSBC. A glance at our history explains why we believe in capital strength, in strict cost control and in building long-term relationships with customers. HSBC has weathered change in all forms – revolutions, economic crises, new technologies – and adapted to survive. The resulting corporate character enables HSBC to meet the challenges of the 21st century. As part of the HSBC Group, one of the world’s largest banking and financial services organizations, HSBC Private Bank seeks to be the leading international private bank for business owners and their families. It provides clients with wealth, business and family succession solutions in the largest and fastest growing markets around the world. HSBC Private Bank is the marketing name for the private banking business conducted by the principal private banking subsidiaries of the HSBC Group.

Headquartered in London, HSBC is one of the largest banking and financial services organizations in the world. HSBC is known as the world’s local bank. It also has reached to the Bangladeshi market not only to boost up the banking system of onshore but also offshore banking. To compete the global challenge HSBC has developed a skilled and efficient workforce.

With listings on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by around 220,000 shareholders in 119 countries and territories. The shares are traded on the New York Stock Exchange in the form of American Depositary Receipts. With assets totaling US$2.691 trillion, HSBC is one of the world’s largest banking and financial services organizations. HSBC is rated one of the top 20 safest banks in the world by Global Finance. Banks were selected based on an evaluation of long-term credit ratings and total assets of the 500 largest banks worldwide. HSBC has a unique and longstanding presence in international and emerging markets

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History:

Members of the Group include HSBC Private Bank (UK) Limited (formerly Samuel Montagu & Co Limited), founded in 1853, HSBC Trinkaus & Burkhardt KG (1785), HSBC Guyerzeller Bank AG (1866), HSBC Bank USA (formerly Republic National Bank of New York) (1966) and Crédit Commercial de France (CCF, 1894).

HSBC Private Bank (formerly HSBC Republic) was established on 31 December 1999, when HSBC acquired Republic New York Corporation and Safra Republic Holdings, parent companies of Republic National Bank of New York. Founded in 1966 and built on a banking tradition established during the Ottoman Empire, Republic National Bank of New York specialized in private banking.

The marketing name HSBC Private Bank was adopted on 1 January 2004, building on the heritage of private wealth management brought by international subsidiaries, the strength of our commercial banking relationships and HSBC’s prudent long-term strategy. The use of the label ‘HSBC Private Bank’ refers to HSBC’s worldwide principal private banking business, and is not indicative of any legal entity or relationship. At HSBC Private Bank, aim to bring the very best of the HSBC Group to their most valued clients. With the global network, combined with local market knowledge and expertise, sets them apart and connects clients to bespoke growth opportunities around the world.

Board Directors and Senior Management:Designation Name

Chairman S K GreenDeputy Chairman M F Geoghegan, CBEDeputy Chairman and Chief Executive D D J JohnManaging Director P A Thurston

D C BuddJ D FishburnS T GulliverDame Mary MarshR E S Martin A R D Monro-DaviesS P O’Sullivan J F TruemanP M Shawye

Executive Directors Phillip David AMEEN Kathleen Louise CASEYLaura May Lung CHA, GBSHenri, René, Marie, Augustin DE LA CROIX DE CASTRIES Lord Evans of WeardaleJoachim FABERWilliam Samuel Hugh LAIDLAWIrene Yun-lien LEEJohn Phillip LIPSKYJanis Rachel LOMAX (Senior Independent non-executive Director)Heidi MILLERDavid Thomas NISHJonathan Richard SYMONDS, CBEPauline VAN DER MEER MOHRPaul Steven WALSH

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Organizational Structure:

11

HSBC mission statement:

"We aspire to be one of the world's great specialist banking groups, driven by commitment to our core philosophies and values"

HSBC Vision Statement:

To be the leading international Bank in the world

HSBC Slogan:“World’s Local Bank”

HSBC Values:

HSBC values define who they are as an organization and what makes us distinctive. they believe in acting with courageous integrity.

Dependable

Standing firm for what is right, delivering on commitments, being resilient and trustworthy Taking personal accountability, being decisive, using judgment and common sense,

empowering others

Open to different ideas and cultures

Communicating openly, honestly and transparently, welcoming challenge, learning from mistakes

Listening, treating people fairly, being inclusive, valuing different perspectives

Connected to customers, communities, regulators and each other

Building connections, being aware of external issues, collaborating across boundaries Caring about individuals and their progress, showing respect, being supportive and

responsive

HSBC Bank’s main competitors:

1. RBS 2. Citi Bank3. Bank of America 4. City Group5. Santander 6. Lloyds7. ICBC 8. UTI

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9. SBS 10. ANZ11. Standard Charter 12. BPI

To know the future need and demand of human resources, the HR division of Hong Kong and Shanghai Banking Corporation (HSBC) usually provides all the divisions and branches with a general form stating the need at the beginning of the year. From the information collected, the HR division of Hong Kong and Shanghai Banking Corporation (HSBC) gets an estimated need of human resource requirement for the year. No long term human resource forecasting is done by Human Resource Department (HRD) in Hong Kong and Shanghai Banking Corporation (HSBC). The strategy defines various sources (external and internal) of recruitment. Which are the sources to be used and focused

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Chapter 3: Employment at HSBC

for the recruitment purposes for various positions are determined by HRD Hong Kong and Shanghai Banking Corporation (HSBC)

Employment guiding principles for Local and Expatriate

Employment Policy

Hong Kong and Shanghai Banking Corporation (HSBC) has some guidelines on employment policy based on some principles. These principles are applied on any kind of recruitment by Hong Kong and Shanghai Banking Corporation (HSBC). These principles are:

Hong Kong and Shanghai Banking Corporation (HSBC) shall not discriminate against any job seeker and employee on the basis of race, religion, gender, age or any other factor that does not relate to individual’s ability to do on the job.

Each employee entitled to fair salary.

The bank applies the employment principles in a fair, uniform and consistent manner

HSBC employment principles do not allow any favor, nepotism or preferential treatment to anyone. Any explicit/implicit influence during the implementation of any step of hiring process by any quarter is seriously dealt with according to the governing principles.

HSBC shall support, supervise and ensure a professional recruitment process based on the requirements prescribed in local policy people. Candidate selection shall be aligned with the HSBC way and leadership expectation.

HSBC shall ensure best match of skills to recruit competent people in the right position. Individuals between the ages of 18-57 can be hired as regular employees of HSBC

Minimum qualification must be bachelor degree for regular position.

All appointments in the bank shall conform to its job grade and salary structure

Types of Employment

HSBC also applies some strategic HR methods for selecting the most logical and efficient candidates.

In the banking sector employees are not in a huge number in a firm. Banks need highly skilled

employees. HSBC is one of the largest banks in the world. They have 7500 branches in 119countries.

Every branch of HSBC is monitored by the HR department employees. These employees are highly

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qualified and skilled in their respective job positions. Big branches are monitored by minimum 20

HR personnel and small branches are controlled by minimum 3 to 6 employees. So the whole

organization runs in a stable way in terms of the HR activities of the employees.

Figure 4: Employee ratio of HSBC

Hiring internal Employees

HSBC encourages both vertical and horizontal move for its employees and hence, HSBC encourages internal employees to apply for suitable position across the organization. It is the responsibility of the candidate to apply for the right position. However the employees who are on probation period and those who have joined in new position are not eligible to apply for six months. |Selected candidates are required to join the new job/position after clearance from releasing supervisor. The placement of employees to the new position should be within a month based on understanding between releasing and receiving supervisors.

Confidentiality & Documentation

All appointment / recruitment in the Bank will be made by direct recruitment as per approved criteria or by promotion as per promotion policy approved and or amended / updated by the competent authority from time to time. Moreover, all the employee on the job information are maintained confidentially especially their time to time evaluation. All information and details regarding the employee are treated with utmost confidentiality. It is the duty of HRD of HSBC to maintain confidentiality of agreement and other related information.

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Types of International Assignments

For any employees, an international assignment can be the opportunity of a lifetime. It's a chance for them, as well as their families, to expand their horizons, experience new cultures and travel to new places. However, preparing for an international assignment is a challenging and often stressful experience. As HSBC has vast network of branches across the world, there is lots of opportunities for its employees to go for an international assignment. International assignments are time framed work responsibility given to one or more employees outside the border of their country. According to time frame HSBC mostly goes for the traditional (Long-Term) assignment system which is from 1-5years time span. HSBC follows the Contractual approach for international projects.

Recruitment Process:

HSBC bank has a strong HR culture in the organization, and it is maintained very tactically. It is said

that HSBC practices all the HR basic activities. This bank also offers strategic training sessions for its

employees for the growth career. Let’s have a glance of the functions that HSBC applies:

International market competitive compensations

Personal and organizational benefits and rewards

European standard training sessions

Performance metrics

Organizational charts

Diverse recruitment process

Proficiency development program (PDP)

Advanced HRIS (Human Resource Information System)

Four Step selection process

Job Requisition and Human resource planning

Human Resource Division/Department Head of Dutch-Bangla Bank Limited (DBBL) informs other department of Dutch-Bangla Bank Limited (DBBL) on personnel requirement through Manpower Requisition form. After obtaining necessary approvals from all other departments, the Managing Director approves the requirement of personnel. Employment Requisition Form must contain a JTOR (Job Terms of Reference) comprising Job Description & Job Specifications / Requirements for the position.

Requisition form contain some information like

Types of Recruitment Name of the position Status of the employment Job description

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Job specification Approval of the HRD

Job description 

Job description is a list that a person might use for general tasks, or functions, and responsibilities of a position. It may often include to whom the position reports, specifications such as the qualifications or skills needed by the person in the job, and a salary range. It serves as a key subject matter expert for assigned area(s). It Provides compliance support, advice, and guidance to the first and second lines of defense across HNAH relative to assigned regulation(s), regulatory requirements and/or compliance risks. Provides regulatory compliance expertise to support strategic initiatives and advises the first and second lines of defense in managing their compliance risk associated with assigned regulatory requirements. It manages regulatory officer staff focused on assigned regulatory requirements and/or compliance risks. Identifies any possible compliance deficiencies related to assigned regulation(s), regulatory requirements and/or compliance risks, and proactively implements corrective actions to help ensure adherence. It also interacts with relevant regulatory agencies to understand impact of changes to applicable regulations on all relevant lines of business.

Qualifications 

Strong background in compliance within a financial services environment and be able to understand, interpret and apply complex regulatory requirements to business practices.

Minimum 10 years proven audit, compliance, financial services and/or regulatory experience, or equivalent.

Well-developed managerial, communications, negotiation, analytical, interpersonal, organizational, project management and strategic and/or operational planning skills.

Minimum of a Bachelor’s degree in business, related field or equivalent experience; Master’s degree and/or Juries Doctorate (JD) preferred.

Ability to meet deadlines. Proactive and independent. Proficiency with personal computers and software packages including Microsoft Excel,

Word, and PowerPoint.

The Recruitment Process of HSBC Bank

To know the future demand of human resources, the HR division of HSBC usually provides all the

other divisions and branches with a general form at the beginning of the year. From the

information collected from these forms, the HR division gets an estimate of the human resource

requirement for the year. No long term human resource forecasting is done in HSBC. The

recruitment goals of HSBC are to attract and retain highly qualified human resources who will

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perform best in their respective areas. The bank not only tries to attract well-qualified candidates

but also tries to identify and recruit people who are really interested to work in the bank for an

acceptable period of time.

The recruitment philosophy of HSBC is as follows:

HSBC usually promotes from within the organizations, but when the need arises, the bank also hires from outside for vacancies at all levels.HSBC always emphasizes on hiring for a long period of time. The bank tries to attract and select those candidates who will move through the organizational hierarchy to the senior level positions in the future.HSBC has developed a corporate culture where employees are not treated as mere employees. They are treated as associates of the bank. Together, they form a family and all associates are the members of the family.

Types of Recruitment

HSBC practices two types of recruitment Yearly recruitment: this is done each year, according to the HR plan Need-based recruitments: this is done when there is a sudden vacancy

 Recruitment Sources and Methods:

HSBC usually promotes from within the organization. But it also recruits from external sources.

The external sources are:Different universitiesCompetitors and other organizationsUnsolicited applicants

Campus recruiting will be handled by the HR Division and the overall planning for this will be

done based on the Annual Manpower Plan. However, the respective business department/function

requiring the profiles should have the responsibility and mandate to short-list the campus-based

candidates. The skill base generally recruited through this route will be entry level positions.

Therefore, the plan for campus recruitment will have to tie up with the placement season of

various universities that are targeted for recruitment. The HR Division needs to identify a set of

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campuses based on the courses conducted there, any past experience of candidates from these

campuses and the emerging requirements of the bank.

The HR Division will need to take a decision regarding the source of external recruiting

considering variables like –

Available spread of candidatesCost impactTime needed and the external recruitment methods include:Advertising in newspapers, company website etc.Employee referralsInternships

Mode of Recruitment for Management Trainees:

Recruitment through Press Advertisement: Every candidate will appear for a written test. The

subject matter of test should be general knowledge, Arithmetic, English, Economics/ Banking as

may be decided by the Management from time to time. For this purpose HSBC may take the help of

outside experts for setting the questions, supervising the examination work and marking the scripts.

 

A candidate must secure minimum 60 % mark in written Test to be eligible for VIVA/interview as

Management Trainee.

Written Test will however not be required for the following:

I. MBA/ MBM from IBA & BIBM with minimum CGPA 3.00

II. BBA/MBA from Bank’s other approved universities, i.e., NSU, EWU, BRAC University,

IUB & AIUB with minimum CGPA 3.25/

They will be recruited based on performance in interview with the Selection Committee.

Recruitment from the Interns: They will be recruited based on their performance during

internship period, evaluation report of their supervising officials and performance in the interview

with the Selection Committee.

There are very negligible amounts of interns will be eligible for appointment. Interns selected

under this criterion should join within one month of completion of his course.

An internee who has completed his internee more than six months ago will not be eligible under

this criterion.

The appointment will be made according to requirement on the basis of a panel to be prepared in

order of merit by the Interview Committee and after approval of the competent authority.

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While interviewing the candidates for final selection, due weight should be given on the

educational back ground, professional excellence and technical skill in the appropriate field.

Requirement for all Employees:

I. He/ She must be a citizen of Bangladesh

II. Third division/class in his/her academic attainment shall not be considered for

employment in the Bank.”

III. He/ She must be physically fit. All persons to be appointed by the Bank will have to

undergo a medical test by the Bank’s approved Physician/ Medical Officer so as to

ascertain that they are physically and mentally sound health. No person shall be appointed

in the service of the Bank unless he/ she is declared physically and mentally fit by a

medical officer of the Bank or by any other Medical authority specified by the Bank in this

behalf.

Receipt of Applications

This is the first selection hurdle to join HSBC. Candidates either send their CVs in application for

a specific vacancy, or they send unsolicited CVs for any suitable position. The HR division

collects job applications against each job vacancy. In case of newspaper advertisements, the

applicants are given at least 3 weeks to apply. After a specific period, each and every job is closed

for applying.

Selection Process:

The different steps if the selection process is described below in detail:

Sorting out of Applications:

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The next step is the short listing of CVs. Usually the HR division is engaged in the short listing.

But the HR division may delegate this step to the respective divisions (for which the selection is

being carried out) to save time. To recruit experienced bankers, CVs may be sorted out from the

collection of unsolicited CVs received. Or, another possibility is to find out experienced and

competent bankers in other banks. Once potential candidates are thus found out, they are contacted

and called for an interview.

Informing Candidates

After the applications are sorted out and a preliminary list is prepared, the candidates are informed

and are called for a written exam (for entry level positions) or an interview (for experienced

banker for mid-level or senior level positions). For written tests, the bank issues admit cards

through courier services seven to ten days prior to the exam.

Written Tests:

The employment test is generally an aptitude test which measures the candidates’ verbal ability,

numerical ability, reasoning ability etc. The HR division contacts IBA/BIBM to design and

conduct the recruitment tests on behalf of the bank. The HR division provides them with the

desired academic qualification and the name of the vacant posts to construct the question paper for

the test.

Interview:

The interviews that are conducted are panel interviews and not structured. The interview board

consists of the MD, DMD and the Head of HR. Even in the selection of fresh graduates for TA or

MT positions, those top level and executive level managers are present. Usually only one

interview is conducted for selecting a candidate for a position. But in case of recruiting

experienced bankers, sometimes more than one interview is conducted.

 Final Approval by Competent Authority:

After the interview is conducted and the interviewees are evaluated, the management committee

decides who is to be selected and who is to be rejected. After this final decision, an ‘Offer Letter’

is made for each selected candidate. Once the candidates accept this offer, they are given the

‘Appointment Letter’. The candidates that are rejected are not informed.

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 Physical Examination:

After the appointment letters are printed, the candidates are given one month for joining. First, the

candidates have to go through physical examinations. If the result of these physical examinations

is satisfactory, then the candidate is eligible to join the bank.

Joining and Placement:

After the physical examination, the candidate needs to bring the result of the medical tests along

with all the necessary documents and academic certificates for joining. After going through the

formal joining and placement process, the candidates are finally employees of HSBC.

Restriction on Appointment:

The following categories of employees from other Bank/Organization shall not be employed:

I. Employees against who there are pending charges or who are dismissed, discharged,

terminated and forced retired.

II. Employees who do not submit formal release order from the immediate past employer

III. However, an honorably retired person may be engaged for a particular assignment on a

contractual basis.

Termination:

The service of provision or temporary employee shall be liable to termination by the competent

authority without assigning any reason after giving him one months’ notice in writing or on

payment of on more substantive pay in lieu of such notice and the probationary or the employees

shall not be entitled to any form of composition for termination of services.

Benefits

HSBC offer a comprehensive benefits package that includes medical, dental and vision coverage for employees and their eligible family. Life and disability insurance options provide income replacement in the event of serious injury or death.

Our health plans focus on wellness and helping employees learn more about their own health to save money in the long run. Through this focus on wellness, our covered employees and dependents have access to tools like healthy lifestyle coaching to support a healthier life. Employees can contribute to tax-favored health care accounts to help manage out-of-pocket health care costs. To help, the bank may also contribute to eligible employees' health care accounts.

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Medical

HSBC offers medical plans that are easy to understand, and delivers valuable features to help manage health care costs by focusing on wellness. All of our plans include the predictability of an annual deductible, security of an out-of-pocket maximum and coverage for eligible medical services, such as doctor's office visits, specialist care or a hospital stay, as well as a prescription drug plan.

Dental

HSBC offer dental plans that provide coverage for preventive care, basic care, such as fillings and extractions, and major care, including crowns, dentures and bridges.

Vision

HSBC vision plans cover eye exams, eyeglass lenses, frames and contact lenses. Employees also can elect a vision discount program, which offers discounts on routine eye exams, eyeglasses, LASIK surgery, contact lenses, nonprescription sunglasses, contact lens solutions and other eye care accessories.

Health Care Accounts

Health care accounts help employees of HSBC manage out-of-pocket costs by setting money aside pretax from their paycheck to use for eligible health care expenses. For eligible employees, the bank may also contribute to these accounts.

Dependent Care Flexible Spending Accounts

This account allows employees to contribute pretax dollars to pay for eligible out-of-pocket dependent care expenses.

Associate Basic Life Insurance

Employees are automatically provided with bank-paid basic life insurance equal to one times their annual base salary, up to a maximum of $2,000,000.

Supplemental Life and Accidental Death and Dismemberment Insurance

Our employees may purchase Supplemental Life and Accidental Death and Dismemberment (AD&D) insurance for themselves, their spouse/domestic partner and their children, up to certain limits.

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Additional supplemental life insurance can be purchased for up to eight times the sum of annual pay and bonus, up to a maximum of $3,000,000. AD&D insurance pays a benefit if an employee (or a covered family member) becomes paralyzed, dismembered or dies as the result of an accident.

Performance-based compensation

In addition to base salary, incentive awards are designed to reward eligible employees for company, line of business and individual results. Eligibility of incentive awards vary by role and line of business

Approach used for expatriate compensation

HSBC is operating in 119 countries across the world. As we all know, each country has different currencies, payment systems, work conditions etc. To handle these obstacles, HSBC follows “Contractual approach while recruiting employees. Employee has to sign a contact which is very beautifully designed by the experts of HSBC. Most employees usually sign 6months to 4years contact. These contacts make sure that; employee viewpoint are effectively handled.

In case of HSBC operation in Bangladesh, Third Country Nationals (TCN’s) are mostly come from India. As India is a neighbor country and their environment, work conditions, culture etc. are quite similar to our country, Indian employees are often successful. As far as Parent Country Nationals (PCN’s) are concerned, higher level employees from Hong Kong often come to Bangladesh for relatively short term periods.

Leave policies

Employees of HSBC can get 20 days of casual leave in a year. Branch wise employees except Branch Manager can get casual leave on the basis of application for leave by the Branch Manager. Other leaves can be granted only by Head office. But Branch managers and upper level managers can get leave by applying to Head Office.

Leave Rules

All applications for leave shall be addressed to the Head of branch / Relevant Department / Divisional Head which must contain his full address during the period of leave applied for and in

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the case of leave on the ground of illness or maternity leave must be supported by medical certificates indicating the period of leave recommended. Those leaves that weren’t claimed end of the year against those employees get extra bonus on that unclaimed leave.

Grant for Leave

Leave cannot be claimed as a matter of right When exigency of service so required the competent authority may at its discretion decline leave of any kind also require an employee to resume duties before expiry of the leave already sanctioned to him Casual leave will be approved by the Head of branch. All other forms of leave will be sanctioned by the Head office. However, casual leave applications from Head of branches as well as Operation Managers shall be approved by the Head office.

Absenting from duty without leave

An employee shall not absent himself from duty or leave his place of posting on any ground without obtaining prior leave sanctioned by the competent authority. An employee shall not himself from duty on the ground of illness without applying for leave and submitting a medical in support thereof.

Privilege leave

Every employee shall earn privilege leave on full pay after completion of one service @1/13th of the period spent on duty i, e, 1 (one) day for every thirteen days of duty and the shall be credited to his leave account on first day of joining and the maximum that can be accumulated shall be 90 days.

Casual leave

Casual leave means a leave of absence for a very short period granted to an employee who may to attend duty during such period due to certain illness or urgent private affairs. Casual leave for not more than 10 (ten) days in a calendar year may be granted to on that:

Not more than 3 (three) days leave is taken at a time. Casual leave can be combined with holidays either suffixed or prefixed but not with both.

Any unutilized casual leave during a calendar year will not be carried forward to next year.

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Maternity leave

Maternity Leave to female employees may be granted for a period of maximum 6 (six) weeks. Maternity leave shall be granted only thrice during the entire period of services of a female employee with the bank. The interval between the first and last maternity leave must be 3 years if the request for its grant be supported by certificates acceptable to the bank. On the completion of 2 years of continuous service in the Bank, employees are eligible for this kind of leave. Maternity leave, which shall be on full pay and not debatable to the leave account,

Recreation Leave

As per Bangladesh Bank instruction the employees of the bank are enjoying 15 (fifteen) days mandatory leave with Leave Fair Assistance twelve times of the thirty percent of basic salaries of each grades.

Extra Ordinary Leave

On the completion of 3 years of continuous service in the Bank the employees of the bank become eligible for this type of leave. Extraordinary leaves without any substantive pay may be granted for a maximum period of 2 (two) months to an employee in special circumstances, when no other leave under these rules is available;

Training and Development

HSBC believes our primary competitive advantage comes from our employees. It is their ability to

provide a superior customer experience to its customers that sets it apart from other financial services

companies. In the ever changing financial services industry, all of us must continuously upgrade our

skills and knowledge in order to maintain this competitive advantage.

HSBC’s goal is to attract, retain and motivate the very best, and to do that it supports training,

development, and business education through the following:

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Internal Training Programs

Seminars, workshops and locally tailor made training on a variety of topics are offered

directly by HSBC Training and Development Department at our training center located at

headquarters.

External Courses

Job related courses, seminars, workshops and conferences developed and presented at HSBC

Offices in Asia and also at Group Training and Management Development Centre at Bricketwood,

UK.

Distance Learning

Web-based and multimedia self-study programs available through our Intranet and

multimedia Learning Centers located in our HSBC offices.

Resident Management Trainee Program (RMT Program)

The Resident Management Trainee program (RMT) aims to select a group of high potential

executive trainees and provide them training and development opportunities. The RMT program gives

potential executives effective and systematic training to acquire an excellent understanding of the

commercial operations and business functions.

The RMT program ensures that successful applicants, with the right training, will have the

ability and potential to reach the highest level of management within HSBC Bangladesh, and possibly

beyond.

European training program

Providing a comprehensive insight into our retail and commercial banking businesses, it is designed

to help employees develop the skills and experience you need to embark on a management career with

HSBC in your home country through different placements overseas. This training is a part of HSBC’s

performance management appraising process.

In total, the program lasts approximately 20 months, commencing at the beginning of September

2009, with a two-week local induction course followed by a two-week UK induction course on 14th

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of September 2009.Following the induction, you will undertake three four-month placements overseas

and the last placement is for a six-month period in the home country.

2 weeks – Home country induction (Greece)

2 weeks – UK induction 14-25 Sept 2009

4 months – 1st overseas placement

4 months – 2nd overseas placement

1 week – UK training

4 months – 3rd overseas placement

6 months – Home country placement (Greece)

Typically, these placements will take place in Europe, Canada, India, Sri Lanka or the United

Arab Emirates.

At the end of the program, a candidate is ready to take up a management position with HSBC

in his/her home country.

Performance Management

HSBC has a strong HR culture in their organization. Being a multinational company (MNC) it has

their own way of daily evaluation. Through different formats of evaluation, they measure their

employees’ performance. Participant diary and observation these two methods are applied for

evaluation. After evaluation using some metrics comes out the performance appraisal of employees.

Then it is decided whether the employee need more training sessions or developments. Succession is a

very common practice in HSBC. It helps to reduce cost as well as determine the employee

performances that are being ready for the expected post.

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Performance evaluation is very important in the organization as it indicates how far the organization

has achieved its target and how it should mentor the employee to challenge more tasks. HSBC bank is

always keen on performance evaluation of the staff to deliver a better service to its clients.

Performance evaluation will help in finding the employee needs and company can collect views from

the employees and can act on to meet the necessary needs. It gives a feedback on employee's

performance. Evaluation will decrease the communication gap between the high level administration

and staffs. Organization can allocate a reward programmed for the employees to enhance their

performance. Performance evaluation widens the opportunity for the employee to develop and be

more beneficiary to the company. Performance evaluation is a strategic canalization about the

employees to improve their potential and making them beneficial for the company. There are several

aspects that should be considered while evaluating the performance. Those aspects are stated below

Making Specification criteria

HSBC will evaluate the performance of the employee not only with the goals achieved but by recognizing what the employee is capable of. The company measures the employee in all aspects and it will be specific with each employee and try to develop the skill and knowledge in what the employee is good at. By doing so HSBC gains specialist workers for each department.

Features of work

The company will measure the employee's quality and quantity of work and will evaluate his performance accordingly. The organizations goodwill always depends on the quality work performed by the employee. So the company will be very keen on the way the employee does his work.

Consistency in the performance

Company will always consider consistency of the performance by the employee. A reliable employee is the one who always shows consistency in his performance. Organization can't take decision on long term plans if it doesn't find its staffs consistent.

Behavior of the employee

The company will be very keen on the organizational behavior of the employee. Company monitor how the employees attitude towards supervisors, managers and how employee cop up with his coworker. With his performance in achieving target company also looks forward for a good behavior within the organization.

Accepting company's policy

Employees performance not only comprise on achieving targets but also on how the employee work adhering the companies policies. The company wants their employees to upheld companies policies in the work they do.

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Feedback from colleague

The company will check the employee's feedback from its colleague and that process is referred as 360-degree feedback. The organization will collect the feedback from coworkers, managers and all those who are associated with the employee in work. These feedbacks will be considered while evaluating the performance of the employee.

HSBC bank evaluates the performance of the staff at consistent intervals to improve the performance of them. They also consider all these aspects while evaluating the employee. They also adopt some methods for evaluating the performance of the employee. Method is stated below:

Challenging their employee

Always set challenges to employees and should measure how the employee is taking up the challenge. Bank monitor the quality of work and the time consumed to do the task

Preparing Time period

HSBC sets a particular timeframe for all tasks and will monitor the staff. HSBC can attain high performance and save quality time which is very important for the company. Being time oriented the staffs knows the work and time period for finishing it.

Employee organization making the oriented

HSBC train their employee for not only attaining individual goals but also the organization goals. The employee won't be concentrating on achieving his goals but will be keen on the organizations goal. By implementing this HSBC has tied up their employee with the company to review the target of company in the future.

Achieving targets

The more an employee achieve companies target more the company will lend the support. Employee who cannot achieve the task will be considered as a burden for the company. So the organization will monitor every employee's performance and will rate the employee according to the target he achieves.

Cost control

The company always looks for the employees who are cost efficient on completing their tasks. They prefer staffs that can control the expenditure of operations to achieve the target.

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Effec

tive Resourcing Strategy

Human Resources are responsible for implementing HSBC’s people strategy. It facilitates talent management, succession planning and employee mobility while defining and overseeing frameworks that support employee performance management, reward, learning and development, resourcing and engagement.

Effective Learning & Development

HSBC recognize that the talent and diversity of people is the foundation of success, so they are committed to helping develop personal and professional skills in order to bring out strengths.

Manager will help you to identify potential opportunities and the capabilities will need to be effective in employee’s role. As part of the HSBC performance review process, they will work with employee to set clear career development goals and provide feedback and support to assist you in achieving them. At the same time, they are encouraged to take responsibility for driving own personal development.

From the HSBC Business School, Employees are able to access a comprehensive set of tools and learning materials based on specific role and business area, as well as courses that help develop communication, leadership and presentation skills. Employee are expected to complete some learning activities based on local regulatory requirements or the nature of

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Chapter 4: Impact of Human Resource Management on

Organizational performance of HSBC

your role, but you can also choose courses that are linked to your own interests or support your personal development.

Employees also have access to a mixture of formal and informal development opportunities, including on-the-job coaching and mentoring in addition to instructor-led workshops and e-learning.

Competitive Compensation Packages

HSBC offers a comprehensive, market-competitive pay and benefits package to support employees' professional and personal needs. This may vary according to role and location. HSBC’s approach to remuneration consists of four main elements:

Fixed pay Annual leave A range of benefits, which may cover areas such as work-life balance, insurance and

savings, health and personal development Employee share plans and discretionary pay awards based on performance

Pay for Performance

HSBC believe that the way people achieve their goals is essential to the long-term sustainability of our business. As a result, annual performance reviews also take into account employees' adherence to HSBC's values

HSBC’s approach to remuneration, including any discretionary incentive or performance-related awards, is designed to reward success appropriately and to ensure that what we pay employees is aligned with their business strategy. To achieve this, we assess individual performance against our annual and long-term financial and non-financial objectives.

Reduce turnover

As part of HSBC's commitment to an open, supportive an inclusive work environment we recognize that our employees have different personal circumstances and want a suitable work-life balance. We support our staff to adopt flexible and alternative ways of working where possible, including working from home and different hours.as a process flexible working reduce turnover

Employee Grievance Policy

HSBC believe that employee service is an important imperative for sustained business growth and we want to ensure that our employee receive exemplary service across different touch

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points of the Bank. Prompt and efficient service is essential to retaining existing relationships and employer satisfaction is critical to the Bank. 

Employee complaints constitute an important voice of customer, and this policy details complaint handling through a structured grievance redressal framework. Complaint redressal is supported by a review mechanism, to minimize the recurrence of similar issues in future. The Bank’s Grievance Redressal policy follows the following principles:

1. Employees are treated fairly at all times

2. Complaints raised by employees are dealt with courtesy and in a timely manner

3. Employees are informed of avenues to escalate their complaints within the organization, and their rights if they are not satisfied with the resolution of their complaints

4. Complaints are treated efficiently and fairly

5. The Bank employees work in good faith and without prejudice, towards the interests of the customers

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Chapter 4: Findings & Analysis

Findings

Hiring of employees from external source is very unbiased and no room for nepotism but Sometimes recruitment of internal employees are biased and those employees who are close to the supervisor get advantage of their relationship in internal recruitment process.

Employees of the bank care about its customers much. They always try to fulfill customers request if possible.

Employees of the bank get much performance bonus in time. They get bonus on loan sanctioning, collecting deposit, creating account, providing credit cards and so on. This policy helps the bank to perform its maximum and increase banks profitability.

The bank provides very attractive salary with different essential allowance payment that attracts new recruits as well as motivates existing employees to be in touch with HSBC.

HRM division of the bank always concern about the comfortable working environment and also safety & compliance issue of its branches.

Banks financial performance is outstanding over these years. HRM policies of the bank exert employees perform to their full potential and helps organization to perform maximum of its ability

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SWOT Analysis

Strengths Management strength in depth.

Skilled employees, successful recruitment, and effective training and development.

Good motivation and morale.

Efficient administration

Weakness Failure to delegate and train successors.

Expertise and control locked up in a few key personnel.

High staff turnover.

Opportunities The opportunity to take on a key employee from a competitor.

The introduction of financial backers who are keen to fund expansion.

Threats Key personnel leaving, perhaps with trade secrets.

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Conclusion

Having analyzed the policies and practices Human Resource Management of HSBC, we are able to gain a wide understanding about Human Resource Management in a practical scenario and identified factors which can be affected on leading employee behavior for achieving organization goals and objectives. Analysis of HSBC’s HRM policies and practices in Bangladesh has evaluated both positive and negative facets of organizational performance considering imperative areas as recruitment, selection, training and reward systemAccordingly recommendation is proposed to overcome shortcomings with human resource facets of an organization. Modern organization are competing through human talent and considering Human Resource as a competing advantage of getting its goal and objectives. Therefore Human resource become the most valuable asset even for every multinational organization like HSBC

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Chapter 4: Conclusions and Recommendations

Recommendation

More conscious on cultural dimensions across countries and take advantages from them

HSBC need to more conscious on cultural dimensions across countries and take advantages from them. According to the cultural dimension of Hofstede’s different regions of countries have distanced cultural implementations. Linking those to recruitment process of each country. Organization will be able to gain cultural opportunities in attracting employees this would be an advantage to attract most talented people from pool of limited qualified bankers in Bangladesh

Put more attention on individual training and planning

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HSBC has placed small attention on weakness on in planning training and development program .Instead they pull employees toward training and development insisting on seniority and service period. If organization pays attention on individual weakness, it will be much helpful in correcting their performance drawbacks and enhancing employee performance up to the expected limit

Link grievance handling procedure with rewarding system

HSBC can link grievance handling procedure with rewarding system. Any rewarding system may create grievance for a certain extent .Hence management of HSBC can develop effective grievance procedure linked to reward system

Performance management and reward system should be more improved

Current performance system is considered only the job related aspects. But it is important to evaluate all other characteristics of employees which related with performance either directly or indirectly.in return organization will be able to create balanced employees who can manage time and work with outstanding personality repercussion.

References

http://www.hsbc.com/ https://www.knowledge.hsbc.co.uk/tools-and-resources/article/swot-analysis http://humanresources.about.com/od/glossaryh/f/hr_management.htm http://www.hrmguide.co.uk/hrm/chap7/ch7-links3.htm http://www.hsbcnet.com/hr/careers/company

http://www.ukessays.co.uk/essays/business/human-resource-management.php#ixzz4GfYU452W http://en.wikipedia.org/wiki/Human_resource_management

Bibliography

Human Resource Management at Work by Mick marching ton 4 EDITION. Management in a Business Context, 3rd edition by Alan Price

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