IHRM of HSBC

International HRM of HSBC

Executive Summary

HSBC is a world renowned banking corporation and consequently has to deal with human resource issues on a global level. For companies like HSBC, having a well functioning IHRM strategy is critical but it has to formulate it on the basis of internationalization stage. Analysis of data and numerous reports suggest that HSBC is on a transnational stage of internationalization where it has a very geocentric IHRM approach.

Executive Summaryii

Introduction1

HSBC's Internationalization of Human Resource activities2

Effect of Globalization on Human Resource Management3

Stages of Internationalization3

HSBC's internationalization stage4

Gaining Competitive Advantage through IHRM4

HSBC's Recruitment in the light of Harris Brewster Framework for Expatriate Preparation5

HSBC and Cultural Diversity7

Training and Development in light of Internationalization8

Important Determinants in HSBC's IHRM Strategy8

HSBC's Mindset9

Conclusion10

References11

International HRM of HSBC

Introduction

HSBC bank is the world's largest banking group. Founded in Hong Kong in 1865, HSBC (Hong Kong Shanghai Banking Corporation) moved to London in 1992 (Finance Owl).

According to Forbes, HSBC is the sixth largest company in the world. It has branches in Europe, North America and Asia. Currently it has 6600 offices in more than 80 countries and serves more than 58 million customers (HSBC).

In 1992, HSBC bank acquired Midland Bank, which allowed HSBC to increase its influence and areas of operation in North and South America regions (Finance Owl).

Before we delve into the internationalization of HSBC's HR activities, let us differentiate between domestic and international HR approaches.

According to Dowling, Festing, & Engle ( 2008 pg.5), domestic and international HR differ in the cultural environment that the company deals in, industries with which they are principally involved in, reliance on their home markets and the attitude of their senior management. Also, global organizations are exposed to more risks than domestic organizations with regards to diversity and employee management; thus they require a broader perspective with clear guidelines (Kaše).

HSBC's HRM activities are international because it is an established global company. Steve Tait, HSBC's Human resources manager for the Asia Pacific region says that the bank routinely sends its managers on foreign assignments so that they get to know HSBC's international markets. This, Mr. Tait says, is a requirement for them to get top jobs (Sirimanna, 2007).

HSBC's Internationalization of Human Resource activities

As has been described above, HSBC's reach into global markets (having offices in more than 80 countries) means that HSBC HR Strategy has to take international human resource management (IHRM) practices into consideration.

According to Harris (1999), many people assume that IHRM is similar to expatriate management. However he says that IHRM is more than international hiring and recruiting. IHRM, according to Harris (1999), involves global management of human resources. Although domestic HR practices are almost similar to international HR practices, the difference lies in the complexity of international HR tasks and the degree to which that the company has internationalized.

HSBC has favoured a global approach combined with localization of its banking operations. For example, it's “World's Local Bank” campaign showed that despite its drive to increase its operations internationally, HSBC also wants ...