The Importance Of HRD: Examining The HRD Process At HSBC

HRD Process and Its Significance

Question:

Identified and key HRD Theoretical Frameworks, Examine the HRD process in your Selected Organisation.

Human Resource Development (HRD) is a concept and task of human resource management (HRM) which deals with enhancement of employee skills, talent management, performance enhancement, improvement of learning and knowledge etc. (Wang, Hollly, Hutchins, & Garavan, 2009). Aim of HRD is to create a superior and better performing workforce through endowment of skills and knowledge. In the view of Vredenburgh, (2009) HRD is important because it creates a well-endowed, competent, talented and high performing workforce. It helps idea generation and encourages learning in an organisation. Therefore, it is a very important function of HR department of a company.

Hong Kong and Shanghai Bank (HSBC) is a multinational banking and finance company with headquarters in London (Gakovic & Yardley, 2007). It has banking branches across the globe including Australia (Kynaston, 2015). It is one of the largest banking companies of the world. HSBC has a strong Human Resource (HR) department with emphasis on knowledge management, training and development of the workforce.

HRD function tries to create a knowledge economy with in organisations. HRD professionals face the challenge of augmenting human capital in order to create competitive advantage (llinger, Ellinger, Bachrach, & Wang, 2011) HSBC is a company which tries very hard to create an atmosphere of learning and skills development (Ariss, 2014). In the view of Masum, (2016) major challenges face by an organisation like HSBC is aligning the HRD principles with strategic objectives. As per, Abdulah, (2009) it is important to endow the workforce in those skills that are important to attain the organisational objectives. For example, the objective of HSBC is to become one of the best banking company in the world. Hence, it is important to train employees in financial knowledge.

In comparison, Singhal & Tiwari, (2012) write that, major challenge of HRD is transference of training to behavioural changes. Firms like HSBC organise high class training for employees. However, cultural, social and attitude constraints may lead to no or very less change in behaviour of employees. By contrast karaborworn & McLean, (2002) mentions another issue with HRD, This is its financial implications and budget. During time of economic down turn it is difficult to sustain training and development programme. However if we critically examine the situation, human resource development is meant to improve performance efficiency. Trained employees will be able to handle crisis situation better (Sabourin & Ayande, 2016).Therefore, it a good idea to invest in human resource development as better skill sets may help a firm survive during economic downturn. Hence, there are many challenges facing human resource development in a country. However, as HRD increases workforce skills, a trained workforce may be able to deal with these challenges better.

It is stated by Wilson J. D, (2014) that, organisational performance is directly affected by human resource development practices like training and development. In the view of Odumeru & Ilesanmi, (2013) organisation can achieve higher productivity; better customer management and higher competitive advantage by have a well trained workforce. Companies which are more innovative with their HRM and HRD practices tend to have satisfied customers.

HRD Challenges Faced by Companies like HSBC

At HSBC it is believed that training is extremely important part of workforce management (Ahamed, 2014). Philosophy of HSBC is that training enhances employee skills which in turn improve company productivity (Mageswari Kunasegaran, 2016). As per Masum, (2016) training can be defined as an attempt by the organisation to make its employees learn related skills, knowledge and behaviour. At HSBC periodic training is provided to employees in order to improve their knowledge and impart new skills.

HSBC is a financial product company therefore; employees should be clear on financial policies of the Government of the country in which they are operating (Gakovic & Yardley, 2007). Additionally, the policies keep changing along with changing financial instruments. As per, Masum, (2016), therefore, to enhance customer satisfaction and productivity, HSBC provides training and tries to improve the skills of its new and old workforce.

Additionally, HSBC provides training in teams so that team members can learn cooperation and collaboration and help each other in crisis situations (Odumeru & Ilesanmi, 2013). HSBC has a diverse workforce hence, it encourages self-learning and idea generation through interaction of a diverse workforce (Inn, Zailani, & Ramayah, 2016). Therefore, HSBC encourages employee training and development.

Human resource development at HSBC is strong as it gives importance to both personal and professional development (Masum, 2016). Through a mix of formal and informal activities like discussions, meetings, brainstorming and formal training sessions, HSBC encourages its employees to enhance their skills (Gakovic & Yardley, 2007). Personal development includes self-assessment and making efforts to improve one self. HSBC encourages employees to improve own skills so that their productivity increases.

HSBC offers skill improvement opportunities to its workforce at every career stage. At entry level the firm gives induction training and employees are made to understand the job (Kynaston, 2015). The employees are made aware of the various global businesses of the firm like wealth management and commercial banking. (Masum, 2016) As the employee becomes older in the organisation, he is given the opportunity to augment his skills by further training and working in various departments

Critical evaluation of the training imparted at HSBC shows a strong value for learning economy.  As per, Gakovic & Yardley, (2007) HSBC is a global company. Therefore; the firm provides formal training to its employees to become skilled at handling financial instruments of customers

The firm has developed the HSBC business school to provide the best possible learning to its employees (HSBC, 2017). There is a formal skills training where the employees are trained on their job specific skills like marketing skills, negotiation skills or skills about financial instruments (Gakovic & Yardley, 2007). HSBC assigns mentors to employees so that they can clarify their doubts and become better skilled.

HSBC is an old and established firm and therefore training and development is a part of the basic fabric of the firm. They also have a formal division to handle it (HSBC, 2017). At HSBC performance goals are set for employees and training is given to improve performance of employees. Employees are taught not only on what needs to be done but how it should be done

Impact of HRD on Organizational Performance

As per Kotnour, Landaeta, & Lackey, (2011) an HRD initiative can be successful only if it is implemented after assessment of kind of training and development required by the workforce. Iles, (2010) further adds to the above by saying that, the training and HRD process flow model gives a framework for managing HRD process like training, development and talent management effectively. This model has four stages. These are needs assessment, design, implementation and evaluation.

HSBC is a diverse global enterprise and gives training support to its employees and encourages them for professional and personal development at every stage of their career. In the view of Takeda & Helms, (2007) firm assesses training needs of the employee through performance appraisal and feedback from superiors. After need assessment a training programme is designed which includes training on various skills like job skills, transferability sills, Analytical skills, team skills etc. Comparatively McCracken & Wallace, (2000) in the design stage learning objectives are designed which may include improvement in various skills of the employees. Further, lesson plan and training material is developed. A Trainor is assigned to the group which is to undergo training. Media to be used and time frame of training is also decided.

If we critically assess the process flow model then as per Cappelli, (2008) a process flow mole can be implemented with success only if the design and plan is made with detailed emphasis on resources required for training and development. Furthermore, Iles, (2010) states that, after design; implementation stage is also very important where HED and training processes are concerned. Training should be implemented as per design and after an assessment of skills required. Finally after the training is delivered the impact of training must be evaluated. This can be done by assessing the entire information available pertaining to effects of training and the feedback of the trainer.

At HSBC it is believed that training is essential for growth hence training is implemented according to design (Gakovic & Yardley, 2007). The impact of training is judged by assessment and evaluation of employee’s performance, change in efficiency, mannerism, knowledge and conduct

Therefore at HSBC training and HRD process model is used in totality to execute HRD framework

In the view of Masum, (2016) the aim of human resource development is to create a work force which is endowed in needed skills and is talented to propel the organisation on growth path. By contrast Jacksin, (2014) states that, Strategic human resource development (SHRD develops skills and knowledge level of employees in a fashion that they become better endowed to attain the current and emergent strategic objectives of the organisation. It gives importance to development of skills and management of training and development by fully utilizing the knowledge and skills of the individual Takeda & Helms, (2007) states that SHRD is a process of systematically linking the HRD with the organisational goals.

Financial sector in which HSBC operates is highly dynamic. Business cycles hit the economies and cause disruption in the financial instruments (HSBC, 2017). Therefore, HSBC need to align its training development to current strategies and emerging strategies. Additionally, it has to focus on complete utilisation of skills and knowledge of its employees

Training and Development at HSBC

 For this purpose the firm makes evaluation of changes which can occur and gives training to its employees on various issues in the financial sector. Major goal of HSBC is customer satisfaction and value addition through its financial instruments (HSBC, 2017). For this purpose there is rigorous customer support training. Also the firm trains employees continuously about current and emergent financial instruments and changes in the financial sector (Kynaston, 2015). HSBC’s competitive advantage lies in their customer support, excellent financial help to customer, and providing finance to thriving businesses (Kynaston, 2015). The strategic human resource development is linked to this strategy as the aim of SHRD is to continuously train employees so that they can handle current and emergent situations.

Recommendations for improvement in HRD of HSBC

HSBC is a learning organisation and holds human resource development as an important function (Gakovic & Yardley, 2007). It has training for employees to enhance their skills. However, there is always a scope for improvement in every process. Therefore, following are a few recommendations for HSBC to further enhance its HRD process.

HSBC can improve its training and development impact further by including electronic learning module for self-learning of employees. Employees can be given e-material for self-learning which can enhance their abilities.

HSBC is a firm with diverse workforce therefore; firm should give diversity management training with an emphasis on non-discrimination. Training should also be given on how to interact with people of different cultures. This will help the employees in interacting with customers in a better and more capable manner.

As HSBC is a financial company it should make its crisis and risk management training more effective. The firm gives training on new and emerging financial instruments. However, the training should also be given on handling customers during risky and crisis ridden economic conditions as business cycles affect the financial sector.

HSBC can also rotate team roles and increase its international assignments for individuals so that they can learn new way of working in the new roles or in the new regions. As HSBC is a multinational organisation international mobility will help employees in attaining new skills which will help them in furthering their career. Self-development will also lead to improvement in knowledge and the employees will become more aware of their own training needs.

Self-assessment of employee based on key performance indicators should be implemented. Feedback of all the stakeholders like superiors and subordinates should be taken into consideration while formulating training needs for the employee.

Therefore, through these additions to its training and development process HSBC can improve and become an organisation of highly skilled and talented workforce.

Conclusion

HRD is a very important function of a company as it helps in talent management and improvement of performance through training. Training helps employees in becoming better at their jobs. In addition, it helps in understanding various issues like crisis management, conflict management and risk management.  Through HRD, employees improve their personal skills which lead to better performance and productivity. Additionally, employees become better endowed to handle difficult situations.

HSBC Business School and Formal Skills Training

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