HSBC Operations in India

Presented by Argentina Lupu

Student ID : 2010341
 Background of the case:

• HSBC – Third largest market capitalization bank in the world

• Area of origin and region where it is located currently
• Operations of HSBC Group in India
• Aim to expand operations in India (News, 12 August 2003 )
• Reorganization program launched by the CEO of HSBC India
• Various internal reorganization measures
 Introduction to Hofstede Cultural Dimension
Model
• Proposed by Psychologist Dr. Geert
Hofstede
• Analysis of organizational culture
• Internationally recognized
standard for understanding cultural
differences
• Six dimensions of the model (in
terms of organizational culture)
 Two selected dimensions from the model:

• Short term vs. Long term

The analysis suggests that the successful organizations like HSBC intend to find the
right equilibrium position on the short term and long term approach continuum.
• Restraint vs. Indulgence
HSBC as an organization is more restraint than indulgent.
(Harry, March 19, 2020)
 Communication and cultural problems

"We had to deal with structural issues and we were already behind the
competition….. We want to change the structure of the organization so
that there are more people operating on the selling and marketing side. As
such, we are restructuring the skill set to drive sales and at the same time,
restructuring the basic terms and conditions (of employment) to lower cost
structure."
- Niall S K Booker, CEO, HSBC India.
(HSBC's Restructuring in India, 2005 )
 Communication and cultural problems

• Conventional methods followed by HSBC India

• Laidback work culture in India
• Inactive and unaggressive approach of HSBC India
• Bureaucratic and conservative image of HSBC India
• Restructuring program
 Summary

• HSBC – Third largest market capitalization bank in the world

• Operations of HSBC Group in India
• Hofstede Cultural Dimension Model Analysis
• Communication and Cultural Problems
 References
Harry, March 19, 2020. essay48. [Online]
Available at: https://www.essay48.com/13631-HSBC-Organizational-
Culture
[Accessed Tuesday January 2021].
HSBC's Restructuring in India (2005 ) IBS Centre for Management
Research .
News, B., 12 August 2003 . BBC NEWS. [Online]
Available at: http://news.bbc.co.uk/2/hi/business/3144149.stm
[Accessed Monday January 2021].
https://corporatefinanceinstitute.com/resources/knowledge/other/h
ofstedes-cultural-dimensions-theory/