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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
This large employee force is managed totally by the HR department of HSBC. This industry is very big in Bangladesh and holds a lot of skilled employees. It also has reached to the Bangladeshi market not only to boost up the banking system of onshore but also offshore banking. HSBC is the organization where actually the HR activities are applied with a huge effort. To compete the global challenge HSBC has developed a skilled and efficient workforce. In Bangladesh banking industry is also very influential. This HR department meets all the requirements of the employees from salary to rewards. So Human Resource Management (HRM) is very much applicable as well as practiced in the banks of Bangladesh. 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.Banking Industry is the potential industry where the growth of a country depends a lot. HSBC is known as the world’s local bank. and the outcome is also very satisfying.
Content Introduction Page 1-3 • Company Page 4-6 • Profile • General Background • HSBC’s Operation in Bangladesh HRM Page 7-16 • Practice • Size • HR Activities • Recruitment Process • Selection • Training And Development .
utilizing. man has become the most important factor in business. as well as a motive force for all other resources by manipulating them. . Business needs people as owners. Of all the resources.• Benefits And Rewards Conclusion Page 17 • References Page 18 • INTRODUCTION With the increase in the size and complexity of business organization. employees. So human resource management (HRM) functions include recruitment. Organizations need people to make them operated. by the way of developing. commanding and controlling. An organization is nothing without human resource.as resource. and consumers. the most important one is human resource. because human beings play a dual role.
940 million . It has a huge human power. training and development. After the survey and gathering all the information. HPWS.56 • Remittance in FY2008 is US$ 7. performance appraisal. And the industry analysis says: • 87.selection. it is found that HSBC practices all the basic functions of HRM and this bank also practices other HR strategies like Strategic testing. In the year 2008 Bangladesh banking industry was ranked in 59 by the World Bank.5 billion • GDP growth rate is 6.6 scored in world banking industry • 42% growth in deposit and interest skimming • Worth more $ 92. Our report is focused on the HR activities that HSBC practices to develop its organization. Unskilled labor is the main opportunity to develop a industry in this country. 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. When this is skilled a huge profit an economic development can be achieved easily. HRIS etc. compensation and industrial relation in an organization. HRM is the track by which the country’s organizational activities can be developed.
00% 10.00% 15.• Industry growth rate 6.00% 25.00% 20.00% 0.00% 2008 2007 2006 Investment rate Savings Rate Figure 2: Investment and saving relation for industry growth .00% 5.9% in FY2008 Figure 1: Bangladesh banking industry growth 30.
00% 8. Through the report we have tried to describe the HR acts which are being used by Multinational organizations like HSBC.00% 4. This bank recruits highly skilled candidates and offer international trainings to develop its employees in an extensive cast. They have emphasized their organization in a unique away through its HR activities. This organization practices exceptional training sessions to develop its candidates and offers an attractive salary line to its personnel.00% 2.00% 2008 2007 2006 inflation price increase 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.00% 6.00% 0.00% 10. HSBC bank has the country’s one of the best HR department which does a variety of acts to achieve organizational objectives and expectations.12. COMPANY PROFILE HSBC in Bangladesh The world's local bank .
the HSBC Group offers a comprehensive range of financial services in Bangladesh including commercial banking. payments and cash management. 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.602 in FY2008 HSBC’s operations in Bangladesh In Bangladesh. Chittagong and Sylhet and Business Development offices in Dhaka and Chittagong Export processing Zones.724.General Background • Opened first Bangladesh branch in December 1996 • Network of 10 offices:9 branches. 30. consumer banking. HSBC offers a full range of personal banking and related financial services including current and savings accounts. Today.970.243. 56. 64.661. and custody and clearing. .583. 27 ATMs and 7 Customer Service Centers in Dhaka.210 in FY2008 • Total liabilities: Tk.116. 1 Personal Banking: With 9 branches and 1 sub-branch. trade services.197 in FY2008 • Total offshore balance: Tk. treasury. the HSBC Group’s history dates back to 1996 when The Hong Kong and Shanghai Banking Corporation (HSBC) Ltd opened its first branch.
traveler’s cheques and inward and outward remittances. Adamjee. there are 5 business development centers in the country’s major 5 EPZ areas including Dhaka. Mongla and Comilla. 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. provides customer with an instant link into the HSBC Group’s international computer network. Chittagong. highly automated trade processing systems and extensive geographic reach. 1 Commercial banking: Commercial banking is a traditional strength of the HSBC Group . HSBC net: HSBC net. . In addition.In Bangladesh. Trade & Supply Chains: Trade finance and related services are a longstanding core business of HSBC based on the depth and spread of its corporate customer base. Corporate and institutional banking: Corporate and institutional banking provides dedicated relationship management services to HSBC’s clients in major corporate and financial institutions. 365 days a year. time deposits.personal loans. a proprietary computer-based software package. The Bank’s focus is on fostering long-term relationship based on its international connections and extensive knowledge of Asia and Asian business. allowing them to perform transactions and obtain a diverse range of up-to-date information 24 hours a day.
corporate and personal customers in Bangladesh. and liquidity and account services. and treasury and capital market activities of the HSBC Groups.Payments and cash management: HSBC is one of the leading providers of payments and related services to financial institutions. collections. HRM PRACTICES . trustee. Underpinned by the Group’s extensive network of offices and capabilities. equity securities. private equity. payments and cash management assists companies in efficient cash management through the provision of payments. Investment banking and markets: This division brings together the advisory. private banking. asset management. financing.
is practiced HSBC also applies some strategic HR methods for selecting the most SIZE In the banking sector employees are not in a huge number in a firm.HSBC is the bank where all the employees are monitored under an effective HR department. So the whole organization runs in a stable way in terms of the HR activities of the employees. Among those specifically: Recruitment Selection Training and development Compensation management HRIS HPWS logical and efficient candidates. Every branch of HSBC is monitored by the HR department employees. HSBC’s HR department is consisted about 82 employees who are controlled by 10 managers among that number. 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. HSBC is a large bank in Bangladesh. . Banks need highly skilled employees. They have about 830 employees in the total organization. Big branches are monitored by minimum 20 HR personnel and small branches are controlled by minimum 3 to 6 employees. This department of the organization playing the role of implied authority of HSBC. These employees are highly qualified and skilled in their respective job positions.
Bangladesh HR ACTIVITIES HSBC bank has a strong HR culture in the organization. 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 . this bank also offers strategic training sessions for its employees for the growth career. and it is maintained very tactically. As it is said that HSBC practices all the HR basic activities.Figure 4: Employee number of HSBC.
All applications are kept based on strengths and specialization. Capability Based Interviews . 2. against prerequisite abilities and skills set for all current openings. verbal. numerical. 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. when deemed necessary. Application Evaluation The Human Resources department evaluates all incoming applications. An acknowledgement of receipt is sent for all submitted applications to the candidate's email. CV Submission Potential candidates interested in joining the bank are required to send their complete curriculum vitae. English and psychometric. for future reference. Ability Tests Potential candidates will be invited to participate in aptitude tests i.e. 3. 4.
These are: • • • • • Internet Off shoring College recruiting Referrals Advertising Internal recruiting is very high in HSBC. all candidates who are successful at the exams are invited for a capability based interview. succession process. A capability or competency is an ability described in terms of skills & behaviors that are essential to effectively perform within a job. 5. 6. Job Offer If a candidate successfully reaches the final stage. Reply Letters At all stages of the process candidates are kept informed of the status of their application with an email reply letter. required for each position for which the candidate is interviewed for. Internal selection is done through competency based recruiting. HSBC’s training and development activities are very high in quality so the recruiters . a position offering is made in conjunction with a competitive reward package.To ensure that our recruitment process is fair and consistent. HSBC uses some external sources for recruitment. Interviews are based against capabilities.
The FSC consists of a number of capability based exercises. they will invite to the location most appropriate to them. If a candidate completes the telephone interview successfully. HSBC also uses HRIS for succession planning. 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. including: • • • • Face-to-face interview Group exercise Written case study Presentation . The final step to success The FSC is a two way process.emphasize to recruit internal capable candidates for the respective post. SELECTION HCBC runs Final Selection Centers (FSCs) in a number of key global locations. HSBC wants candidates to be able to make an informed decision a candidate should receive an IM offer. Hong Kong. including London. In Bangladesh face-to-face selection is done in the head HR departments’ office where the job is described eventually. Chicago. Mexico and Dubai. It also a method of the internal recruitment of HSBC.
In the ever changing financial services industry. Through this they can easily recruit and select top level managers. development. It is their ability to provide a superior customer experience to its customers that sets it apart from other financial services companies. External Courses . and to do that it supports training. all of us must continuously upgrade our skills and knowledge in order to maintain this competitive advantage. retain and motivate the very best. and business education through the following: Internal Training Programmes Seminars. This is our opportunity to see how candidates perform in a number of different situations. other than to relax and be you. TRAINING AND DEVELOPMENT HSBC believes our primary competitive advantage comes from our employees. “Head Hunting” process is very effective for HSBC. HSBC also wants to get to know candidates better and understand what drives you towards the IM programme. HSBC’s goal is to attract. 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. though they are offering a very attractive compensation.• Role play There is nothing candidates can do to prepare in advance for the FSC. against clearly defined criteria.
UK. The RMT program gives potential executives effective and systematic training to acquire an excellent understanding of the commercial operations and business functions.Job related courses. workshops and conferences developed and presented at HSBC Offices in Asia and also at Group Training and Management Development Centre at Bricketwood. 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. and possibly beyond. with the right training. The RMT program ensures that successful applicants. will have the ability and potential to reach the highest level of management within HSBC Bangladesh. 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 . seminars.
you will undertake three four-month placements overseas and the last placement is for a six-month period in the home country. a candidate is ready to take up a management position with HSBC in his/her home country. Canada. Following the induction. with a two-week local induction course followed by a two-week UK induction course on 14th of September 2009. After the program At the end of the program. the program lasts approximately 20 months. .HSBC in your home country through different placements overseas. • • • • • • • 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. India. Program Structure In total. This training is a part of HSBC’s performance management appraising process. Sri Lanka or the United Arab Emirates. commencing at the beginning of September 2009.
Then it is decided whether the employee need more training sessions or developments. Being a multinational company (MNC) it has their own way of daily evaluation. After evaluation using some metrics comes out the performance appraisal of employees. 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. Performance Bonus Market competitive annual bonus based on results and individual performance. . Succession is a very common practice in HSBC. Participant diary and observation these two methods are applied for evaluation. Rewards Salaries Market competitive remuneration package subject to annual review where individual performance is recognized.Performance Management HSBC has a strong HR culture in their organization. It helps to reduce cost as well as determine the employee performances that are being ready for the expected post. Through different formats of evaluation they measure their employees’ performance.
as well as life insurance. 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.Incentive Schemes Market competitive incentive schemes in specific business areas. parking space and allowances. . depending on position Eid. • Short and long-term disability coverage. annual employee party etc Market competitive remuneration package and annual cash bonuses. • Health plan and routine medical allowance including optical and dental treatment. Share save Employees are entitled to buy HSBC shares at a 20 per cent discount on the market price. children party. Achievement Shares HSBC shares may be granted annually.
CONCLUSION HSBC is a very big organization in Bangladesh. As for saying HSBC. HSBC’s HR department is the department from where the organization is actually monitored and controlled over time. Human resource is considered as the most important resource of business and to use this asset HRM has no alternatives. Retirement benefits. • • • An active Sports and Social Club. sickness and vacation. 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. sundry loans and home loans. maternity. including special interest rates for car loans.• • Paid leave for marriage. In Bangladesh HSBC is operating for 13 years and have grown significantly. Staff banking privileges. So after all the details it is clear that to run an organization effectively and efficiently it must have to do some HR jobs. 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. This organization is also very important and influential in the industry. Development opportunities and career support. it uses its most important resource by developing and satisfying .
citehr. By using HRM organizations of Bangladesh can be more efficient than before and overall monitoring process will be more effective as well as beneficial. REFERENCES www.org www.com www. Bangladesh is very young in HRM practices. A strong organizational culture is the key of its success. So most of the organizations are not concerned about the HRM practices. Considerably.com www.every need of the employees which helps a lot to increase the OCB’s (organizational citizenship behavior) positivity. we all hope that every organization of Bangladesh will soon start to practice all the HR activities for their long term growth. HRM actually maintains and creates organizational culture.iisd.com .bangladesh-bank.hsbc.
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