8 July 2010

HSBC ASSIGNMENT ON HUMAN RESOURCE

BANK MANAGEMENT

Submitted To,
Rakibul Haque
Lecturer
BGMEA Institute of
Fashion And Technology

Submitted By
Mohammad Nasirul Islam -
(106)
Ahsanul Haq Sumon -(107)
Shafil Kafy -(108)
Mehedi Hasan -(110)
Students of KMT-092
BIFT
Human Resource Management Practice
in
HSBC Bank in Bangladesh

EXECUTIVE SUMMARY
 Banking Industry is the potential industry where the growth of a
country depends a lot. In Bangladesh banking industry is also very
influential. This industry is very big in Bangladesh and holds a lot of
skilled employees. So Human Resource Management (HRM) is very
much applicable as well as practiced in the banks of Bangladesh. 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. This large
employee force is managed totally by the HR department of HSBC. This
HR department meets all the requirements of the employees from
salary to rewards, hiring to firing employees and other important
developing trainings.

In this report the Overall work of the human resource department

will be focused and described. To know the details of the company we
interviewed some HR personnel or HSBC and other information were
collected and gathered with the help of the internet. HSBC is the
organization where actually the HR activities are applied with a huge
effort, and the outcome is also very satisfying.
 Content

•Introduction
Page 1-3

•Company Profile
Page 4-6

• General Background

• HSBC’s Operation in Bangladesh

•HRM Practice
Page 7-16

• Size

• HR Activities

• Recruitment Process

• Selection

• Training And Development

 • Benefits And Rewards

•Conclusion
Page 17

•References
Page 18

INTRODUCTION

With the increase in the size and complexity of business

organization, man has become the most important factor in
business. Business needs people as owners, employees, and
consumers. Organizations need people to make them operated. An
organization is nothing without human resource. Of all the
resources, the most important one is human resource, because
human beings play a dual role- as resource, as well as a motive
force for all other resources by manipulating them, by the way of
developing, utilizing, commanding and controlling. So human
resource management (HRM) functions include recruitment,
selection, training and development, performance appraisal,
compensation and industrial relation in an organization.

Our report is focused on the HR activities that HSBC practices to

develop its organization. After the survey and gathering all the
information, it is found that HSBC practices all the basic functions of
HRM and this bank also practices other HR strategies like Strategic
testing, HPWS, HRIS etc. this report provides the details about the
organizations’ :

• Planning and Recruitment

• Selection and testing
• Benefits and rewards
• Training and Development

Bangladesh is a potential industrial country. It has a huge human

power. Unskilled labor is the main opportunity to develop a industry
in this country. When this is skilled a huge profit an economic
development can be achieved easily. HRM is the track by which the
country’s organizational activities can be developed. In the year
2008 Bangladesh banking industry was ranked in 59 by the World
Bank. And the industry analysis says:

• 87.6 scored in world banking industry

• 42% growth in deposit and interest skimming
• Worth more $ 92.5 billion
• GDP growth rate is 6.56
• Remittance in FY2008 is US$ 7,940 million
 • Industry growth rate 6.9% in FY2008

Figure 1: Bangladesh banking industry growth

30.00%
25.00%
20.00%
15.00% Investment rate

10.00% Savings Rate

5.00%
0.00%
2008 2007 2006

Figure 2: Investment and saving relation for industry growth

 12.00%
10.00%
8.00%
6.00% inflation
4.00% price increase
2.00%
0.00%
2008 2007 2006

Figure 3: CPI analysis for economic growth and saving

measurement

HSBC is an international organization which has a strong position

in the banking sector of Bangladesh. This bank recruits highly skilled
candidates and offer international trainings to develop its employees in
an extensive cast. HSBC bank has the country’s one of the best HR
department which does a variety of acts to achieve organizational
objectives and expectations. This organization practices exceptional
training sessions to develop its candidates and offers an attractive
salary line to its personnel. They have emphasized their organization in
a unique away through its HR activities. Through the report we have
tried to describe the HR acts which are being used by Multinational
organizations like HSBC.

COMPANY PROFILE

HSBC in Bangladesh
The world's local bank
General Background
• Opened first Bangladesh branch in December 1996
• Network of 10 offices:9 branches, 1 sub-branch and an
offshore banking unit
• 830 employees as of 31 December 2008
• Key business areas:
• Personal Financial Services
• Commercial banking
• Corporate and institutional banking
• Total asset : Tk. 64,583,724,210 in FY2008
• Total liabilities: Tk. 56,661,970,197 in FY2008
• Total offshore balance: Tk. 30,243,116,602 in FY2008

HSBC’s operations in Bangladesh

In Bangladesh, the HSBC Group’s history dates back to 1996
when The Hong Kong and Shanghai Banking Corporation (HSBC) Ltd
opened its first branch. Today, the HSBC Group offers a comprehensive
range of financial services in Bangladesh including commercial
banking, consumer banking, payments and cash management, trade
services, treasury, and custody and clearing.
1 Personal Banking: With 9 branches and 1 sub-branch, 27
ATMs and 7 Customer Service Centers in Dhaka, Chittagong and Sylhet
and Business Development offices in Dhaka and Chittagong Export
processing Zones. HSBC offers a full range of personal banking and
related financial services including current and savings accounts,
personal loans, time deposits, traveler’s cheques and inward and
outward remittances.

1 Commercial banking: Commercial banking is a traditional

strength of the HSBC Group .In Bangladesh, HSBC is a popular choice
for customers because of the Group’s international reach and a wide
range of financial services and products HSBC has an offshore banking
unit (OBU) license and can therefore also provide foreign currency
financing to qualifying customers. In addition, there are 5 business
development centers in the country’s major 5 EPZ areas including
Dhaka, Chittagong, Adamjee, Mongla and Comilla.

Corporate and institutional banking: Corporate and institutional

banking provides dedicated relationship management services to
HSBC’s clients in major corporate and financial institutions. The Bank’s
focus is on fostering long-term relationship based on its international
connections and extensive knowledge of Asia and Asian business.

HSBC net: HSBC net, a proprietary computer-based

software package, provides customer with an instant link into the
HSBC Group’s international computer network, allowing them to
perform transactions and obtain a diverse range of up-to-date
information 24 hours a day, 365 days a year.

Trade & Supply Chains: Trade finance and related services are a long-
standing core business of HSBC based on the depth and spread of its
corporate customer base, highly automated trade processing systems
and extensive geographic reach.
 Payments and cash management: HSBC is one of
the leading providers of payments and related services to financial
institutions, corporate and personal customers in Bangladesh.
Underpinned by the Group’s extensive network of offices and
capabilities, payments and cash management assists companies in
efficient cash management through the provision of payments,
collections, and liquidity and account services.

Investment banking and markets: This division

brings together the advisory, financing, asset management, equity
securities, private banking, trustee, private equity, and treasury and
capital market activities of the HSBC Groups.

HRM PRACTICES
HSBC is the bank where all the employees are monitored under an
effective HR department. This department of the organization playing
the role of implied authority of HSBC. Internal and external all the
situations and considerations related to human is monitored and
operated by the HR department. Eventually this bank uses all the basic
functions of HR to run the organizations. Among those specifically:
 Recruitment
 Selection
 Training and development
 Compensation management
 HRIS
 HPWS is practiced
HSBC also applies some strategic HR methods for selecting the most
logical and efficient candidates.

SIZE
In the banking sector employees are not in a huge number in a
firm. Banks need highly skilled employees. HSBC is a large bank in
Bangladesh. They have about 830 employees in the total organization.
HSBC’s HR department is consisted about 82 employees who are
controlled by 10 managers among that number. Every branch of HSBC
is monitored by the HR department employees. These employees are
highly 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 number of HSBC, Bangladesh

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

RECRUITMENT PROCESS
The selection of external recruits consists of the following steps:

1. CV Submission

Potential candidates interested in joining the bank are required to

send their complete curriculum vitae. An acknowledgement of receipt
is sent for all submitted applications to the candidate's email.

2. Application Evaluation

The Human Resources department evaluates all incoming

applications, against prerequisite abilities and skills set for all current
openings. All applications are kept based on strengths and
specialization, for future reference.

3. Ability Tests

Potential candidates will be invited to participate in aptitude tests

i.e. numerical, verbal, English and psychometric, when deemed
necessary.

4. Capability Based Interviews

 To ensure that our recruitment process is fair and consistent, all
candidates who are successful at the exams are invited for a capability
based interview. Interviews are based against capabilities, required for
each position for which the candidate is interviewed for. A capability or
competency is an ability described in terms of skills & behaviors that
are essential to effectively perform within a job.

5. Reply Letters

At all stages of the process candidates are kept informed of the

status of their application with an email reply letter.

6. Job Offer

If a candidate successfully reaches the final stage, a position

offering is made in conjunction with a competitive reward package.

Internal selection is done through competency based recruiting,

succession process.

HSBC uses some external sources for recruitment. These are:

• Internet
• Off shoring
• College recruiting
• Referrals
• Advertising

Internal recruiting is very high in HSBC. HSBC’s training and

development activities are very high in quality so the recruiters
emphasize to recruit internal capable candidates for the respective
post. HSBC also uses HRIS for succession planning. It also a method of
the internal recruitment of HSBC.

SELECTION
HCBC runs Final Selection Centers (FSCs) in a number of key
global locations, including London, Chicago, Hong Kong, Mexico and
Dubai. If a candidate completes the telephone interview successfully,
they will invite to the location most appropriate to them. In Bangladesh
face-to-face selection is done in the head HR departments’ office
where the job is described eventually.

The final step to success

The FSC is a two way process. It is a candidate’s opportunity to

meet a number of current IMs (international Managers) and find out as
much as possible about their experiences. HSBC wants candidates to
be able to make an informed decision a candidate should receive an IM
offer.

The FSC consists of a number of capability based exercises, including:

• Face-to-face interview

• Group exercise

• Written case study

• Presentation
 • Role play

There is nothing candidates can do to prepare in advance for the

FSC, other than to relax and be you. This is our opportunity to see how
candidates perform in a number of different situations, against clearly
defined criteria. HSBC also wants to get to know candidates better and
understand what drives you towards the IM programme.

“Head Hunting” process is very effective for HSBC. Through this

they can easily recruit and select top level managers, though they are
offering a very attractive compensation.

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:

Internal Training Programmes

Seminars, workshops and locally tailor made training on a variety

of topics are offered directly by HSBC Training and Development
Department at our training centre located at Motijheel.

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

Program Overview

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.

Program Structure

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 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.

After the program

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.

BENEFITS AND REWARDS

HSBC continually evaluates and reviews its employee benefits to

ensure that benefits are competitive and in line with its employees
needs and to manage their diverse life.

Rewards

Salaries

Market competitive remuneration package subject to annual

review where individual performance is recognized.

Performance Bonus

Market competitive annual bonus based on results and individual

performance.
Incentive Schemes

Market competitive incentive schemes in specific business areas.

Share save

Employees are entitled to buy HSBC shares at a 20 per cent

discount on the market price.

Achievement Shares

HSBC shares may be granted annually, depending on position

and individual performance.

Benefits

• Private pension plan

• Private medical plan for employees and dependents
• Life and accident insurance
• Medical check ups
• Banking products with preferential pricing
• Nursery and summer camp allowances
• Bank car, parking space and allowances, depending on position
• Eid, children party, annual employee party etc
• Market competitive remuneration package and annual cash
bonuses.

• Health plan and routine medical allowance including optical and

dental treatment.

• Short and long-term disability coverage, as well as life insurance.

• Paid leave for marriage, maternity, sickness and vacation.

• Staff banking privileges, including special interest rates for car

loans, sundry loans and home loans.

• An active Sports and Social Club.

• Development opportunities and career support.

• Retirement benefits.

CONCLUSION

HSBC is a very big organization in Bangladesh. This organization

is also very important and influential in the industry. Human
resource department is a basic part of business now days. So to
run a business this department has a lot of activities to do.
HSBC’s HR department is the department from where the
organization is actually monitored and controlled over time. In
Bangladesh HSBC is operating for 13 years and have grown
significantly. So after all the details it is clear that to run an
organization effectively and efficiently it must have to do some
HR jobs. Coz the resource of an organization helps it to grow. And
the effective use of the resource makes the organization to reach
up to its expectations and objectives. Human resource is
considered as the most important resource of business and to
use this asset HRM has no alternatives. As for saying HSBC, it
uses its most important resource by developing and satisfying
every need of the employees which helps a lot to increase the
OCB’s (organizational citizenship behavior) positivity.

Bangladesh is very young in HRM practices. So most of the

organizations are not concerned about the HRM practices. By
using HRM organizations of Bangladesh can be more efficient
than before and overall monitoring process will be more effective
as well as beneficial. HRM actually maintains and creates
organizational culture. A strong organizational culture is the key
of its success. Considerably, we all hope that every organization
of Bangladesh will soon start to practice all the HR activities for
their long term growth.

REFERENCES

 www.hsbc.com
 www.iisd.com
 www.bangladesh-bank.org
 www.citehr.com
Thank you