Managing and developing human resource in Organization

Managing and Developing Human Resource in Organization

Introduction

The Royal Bank of Scotland (RBS) is a global financial institution based in Edinburgh. It was in 2007 in terms of market capitalization, the largest financial institution in Scotland, the UK's second largest, the third largest in Europe and the tenth largest in the world. The Board of Directors since November 2008 is led by Stephen Hester, Chairman of the Board since early 2009, and Sir Philip Hampton. After massive losses in 2008 and funding from the government amounting to 45 billion pounds holds the British state since 84 percent of RBS shares. We will discuss the year of the financial crises and the concern of the stakeholders. We will also pose the possible solution regarding such dealings.

Discussion

Losses in Financial Crisis

In fiscal year 2008 was a loss of 24.14 billion pounds (about 27 billion Euros) announced. The RBS will insure rotten securities with a nominal value of 325 billion pounds to the British government for 6.5 billion pounds against defaults. The state share could rise by about 70 up to 95 percent. After a recovery plan was presented at the beginning April 2009, aims to earn the RBS savings of 2.75 billion Euros within three years. It must also be about 9,000 jobs will be eliminated.

The government invested in the wake of the banking crisis, another 25.5 billion pounds in the British tradition of the house. Thus the share of government increases the bank to 84%. The UK government secures additional 282 billion pounds from more critical to securities in the portfolio of RBS. The takeover of rival ABN Amro in 2007 has brought the bank into financial difficulties. In return for state support, the bank portions of their investment banking business and the branch network to sell.

In August 2005 a strategic partnership that was Bank of China (BOC) is agreed, the second-largest Chinese bank. Under the agreement, RBS bought 10% of the BOC for 3.1 billion dollars and set up a supervisory board member. On 14 September 2005 by the British Queen Elizabeth II, the new headquarters of RBS in Gogarburn opened to the west of Edinburgh, which took up to date on the numerous sites in the city distributed employees. The British press made ??in this context, at times over the former CEO Fred Goodwin funny to build because it is supposedly a private bridge to the airport had allowed escaping the traffic jams.

In mid-2008 took over the Spanish Santander Group, the Santander Consumer Bank, the continental European consumer finance business of Royal Bank ...