BSS064-6 Leading and Managing Organisational Resources Assignment Sample
Introduction
Leaders have special capabilities of influencing individuals related to the way tasks must be completed so that the company can gain competitive advantages in an external environment. Operational management involves administration of business practices with a motive to create the highest efficiency for the business as possible. Hybrid work mode can be stated as a plan which incorporates a mixture of remote working and in-office scheduling so that all operations can be smoothly completed. HSBC Holdings PLC is one of the largest European banks operating in more than 60 countries employing 237000 staff that are ready to work for the benefit of the organization (Georges et. al. 2019). Company is mainly working to assist global business related to the way they can expand and sustain business operation in an external environment for many years. This report will cover necessary information pertaining to challenges that are faced by HSBC while enhancing organization productivity and performance. Furthermore, discuss the necessary improvements that have to be made in operational management for effective management of people and finance.
Analysis of HSBC’s main challenges that hinder organization productivity and performance
HSBC is one of the reputable British multinational investment bank and financial services holding companies working in different parts of the countries in order to provide assistance to people living in the society. Commercial Banking, Wealth and Personal Banking and Global Banking and Markets are the three business groups of HSBC. It has been found that there has been a reduction in overall profit before tax from $5.9 billion in 2018 to $5.35 billion in 2019. During the last 18 months, HSBC bank is facing a number of problems in Asian market that have impacted the overall profitability of the company (Naheem, 2018). Likewise, the around loss of $944 million in the nine months to September has been suffered by HSBC. Hence, the company while operating its business in an external environment is suffering from different challenges that have hindered the overall productivity and performance of the organization to maximum extent. Such as:
Complication in corporate governance: The first and foremost challenges that have been borne by HSBC bank is that more complicated corporate governance has created confusion related to who will be responsible for handling a specific number of individuals. As several leaders of banks will have their own “leadership band” that will be altered in coming years (Kim and Amran, 2018). This has led to creating challenges pertaining to who will be responsible for handling and managing specific individuals so that qualitative services can be rendered to end customers. However, this will affect contractual employee benefits thus they will be less motivated to work for organization growth and success (Kapmeier et. al. 2021). Moreover, corporate governance is one of the most important tasks of a company as it helps in monitoring overall tasks that have been performed by each individual. On the basis of monitoring and evaluation, necessary steps could be taken to enhance its productivity so that the company can enjoy a huge profit margin. In addition to this, the company does not have five categories of corporate governance that results in effective management of banks (Satutikirono and Sunitiyoso, 2021). Such as: technology in sustainable finance, investors, sustainable bank, technology and achievement in inclusive business.
Over taking management of European business: Second common challenge that has been faced by the HSBC bank while operating its function is shaking of top leadership, as the company has replaced some of its senior positions by recruiting other people. Likewise, the organization has planned to take over the management of struggling European business for which it has recruited Moss, that is head of strategy and chief of staff (Lu et. al. 2020). Furthermore, Nuno Matos is newly recruited for chief executive officer of European bank by replacing James Emmett. Hence, all these changes in the top leadership management of the company have hindered effective performance, productivity of the organization to maximum extent (SUBUDHI, 2020). As the new leader has limited knowledge about the company, the performance of each employee and many more, it will take time to understand things and plan an appropriate set of strategies that could be used to manage people. Hence, all these lead in replacing the top investment bankers that have more capabilities, skills and knowledge to accomplish the task (Karjaya 2019).
Lack of communication and coordination because of Hybrid mode work: Furthermore, the HSBC bank has decided to make use of hybrid mode work in which some of the employees will work in the office while others from remote places so that all tasks can be smoothly completed. Companies have moved to a hybrid mode of working with a motive to reduce overall cost incurred related to labour spacing, however it was noticed that the profit fell to £6.3bn from £9.4bn in previous year. As a result, the bank is not able to effectively manage and monitor performance and productivity of each individual in the firm, as they are apart from each other (Nayak and Lai, 2021). In addition to this, it also results in creating communication and coordination challenges among the employees as they do not have physical contact with each other. Therefore, it is one of the most important plans which are focused by HSBC bank in order to reduce the 40 percent property footprint in coming years (Sarta et. al. 2021).
Lack of support of employees and lead in losses to the company: Another challenged that may hinder company performance and productivity is that it is planning to make global restricting that will lead in cutting down of thousands of jobs. Likewise, companies by focusing on rapid growth in Asia market as well as to cope with global uncertainties such as covid, Brexit and trade war will lead to 35000 job losses that will fall from 235000 to 200000 within next three years. It will have no impact on overall pay and condition of the firm hence there are no such benefits of the movement (USSIF and Yussif, 2020). Global restricting has involves consolidating of business, at the same time reorganize head office and global functions. As per the 2020 and 2022, it is mostly costly strategy as it is expected that company for its restructuring have to cost around $6 billion, plus $12 billion for sell of the assets. At the same time, it has been identified that restricting will result in an increasing risk of execution but found that return is being expected by Fitch (Bal and Pawlicka, 2021).
Evaluation of improving the operation management and enhance productivity and performance in focus with finance and people (hybrid mode)
From the above evaluation it can be stated that the company’s main challenges are its business model hence the restructuring plan could help HSBC bank in getting competitive advantages of its global franchise. Likewise, the bank will focus on cutting over USD100 billion of risk-weighted assets, mainly pertaining to its weak performing operations in European and US. Likewise, it has planned out to sell most of its retail locations situated across the United States that is reducing from 148 branches to 58 and window down additional 35 to40 branches. Furthermore, the bank has decided to make remaining locations for international wealth management centres purpose (Tahri, 2018). Hence, it changed its operation from retail banking to banking and wealth management needs of new clients. HSBC has also entered into a sale agreement with Cathay and Citizen bank for selling its business that will lead in transferring of more than 80000 accounts of east coast customers to Citizen Bank and 50,000 west coast accounts to Cathay bank (Kapmeier et. al. 2021). However, it has provided convenience to its customers that are living abroad to do account transfers with minimum requirements.
Moreover, with changes in the global banking industry, it has also planned to make certain modifications in its operation so that customers could have more qualitative services in the limited time frame possible. For example, the Bank has decided to cut down its offline branches and leverage digital banking and mobile which lead in reducing overall cost of the company and enhancing the profit margin to maximum extent (Soebandrio, 2020). In addition to this, the HSBC bank has brought changes in its top leadership management or restructured them which results in creating a lot of confusion related to whom to report about the performance. In other words, employees are not aware about whom they need to report their daily activities, which results in creating an effective operation and performance of the bank (Phillips and Jeanes, 2018).
With covid-19, the employees worldwide have made it clear that they want to have more flexibility in their working styles, as it reduces pressure and contributes to improving their overall performance and productivity. The study has helped in understanding that there are both advantages and disadvantages of making use of Hybrid mode of working by HSBC bank in terms of finance and people. Likewise, the first benefits of hybrid working adapted by the bank is that it leads to better space efficiency or management through ensuring that the workplace is neither overcrowded or empty (Griffiths, 2021). This has helped the company in requiring less office space for performing different tasks that directly lead to reducing the overhead cost incurred by the firm to deliver a range of services to end customers. Apart from this, it has also been found out that it leads to more engagement within the workplace, as employees become happy and satisfied when they are given flexibility. Hence, the staff of HSBC take more active participation in effective completion of each and every activity of the organisation with a motive to make customers satisfied beyond their expectancy level (Nielsen et. al. 2019).
On the contrary, there are some of the disadvantages of hybrid working mode that has been accepted by HSBC to reduce its overall cost. That is, it becomes too difficult to share information with other people as both are present at different places, which lead in creating chances of conflict and confusion. Moreover, it also results in making the workplace of HSBC dull as only few of the staff members are coming to the office in order to accomplish their respective work (Collins, 2018). This will result in making on site staff members feeling unmotivated and not interested to make best utilisation of their skills so that tasks can be completed. Hence, there should be enough space maintained within the workplace that staff members can interact with each other, share their opinion, have fun and enjoyment and work together as a team for achievement of end objectives (Wilkinson, 2021).
Integrity leadership Initiatives
Leaders are the most important individuals within the firm that take the first steps to perform a task and guide other individuals related to the manner in which it will be completed. So, that there are no chances of confusion and conflict in future scenarios (Kempster and Parry, 2018). The senior leaders of HSBC bank must take the initiative of transparently sharing all the necessary information with its subordinates to create and maintain a strong relationship with them for many years. They should give respect and recognize to each and every employee that is contributing in bringing change related to global organization restructure, accepting the hybrid mode of working and many more (Johari et. al. 2020). All these leadership initiatives taken by the top leader of HSBC bank will motivate staff members to enhance their overall performance and productivity to maximum extent. It will help in developing and maintaining a strong dedicatedly team that is ready to work hard in order to satisfy the wants of customers in an effective manner.
Leaders should ensure employees why the Hybrid work mode is effective for the company, what are its benefits to them as well as organization and the manner in which it can be implemented. It should focus on retaining trust among its subordinates so that they can easily share their feeling with it or innovative ideas that could be used for the benefits of the bank (Nayak, 2021). Moreover, leaders should regularly monitor and review the overall performance and productivity of each individual, what all challenges or issues they are conforming to and ways that could be overcome. Therefore, all these integrity leadership initiatives being taken by top leaders of HSBC bank will yield in retaining talented and qualified employees in the firm for many years.
Recommendations
From the above analysis it can be suggested that the company needs to focus on improving its leadership, organizational restructuring and enhancing hybrid mode of working so that the company can easily achieve its set objectives (Karppi and Vakkuri, 2019). On the basis of key challenges, there are certain suggestions that could be implemented by HSBC bank that are explained in detail as follows:
- First democratic leadership styles must be utilized by the senior manager of HSBC bank to know about the feedback, suggestion or opinion of the subordinate. On the basis of gathered information, necessary improvement can be made within the organizational structure, culture and many other things for its growth and sustainability (Sun, 2019). Hence, the top leader must take steps to encourage staff members to effectively share their feedback or view related to all challenges that they are facing while completing their work in the organisation.
- Secondly, in order to get the optimum outcome of Hybrid mode of working, HSBC must have huge investment in new technology that could provide convenience to its employees in having high quality video calling and audio equipment (Hansen al. 2021). Apart from it, the manager of the bank must also ensure that all the employees that are working must have access to fast and reliable internet connections. Both at work and in remote areas so that there are no chances of further delay in completion of work as desired.
Conclusion
From the above report it can be concluded that HSBC is one of the leading banks that provide a range of services to customers so that they are motivated to be part of it rather than other competitors in an external environment. But the company is facing different challenges that have directly hindered the overall performance and productivity of the firm, such as global restructuring, implementing hybrid working mode, corporate governance challenge and leadership challenges. Leaders should actively engage themselves in understanding the key issues and planning strategies that could work in maximising the benefits for organisation as well as society. Hence, the firm needs to find out an alternative method to overcome the associated challenge for its growth and sustainability in the banking industry for many years. Therefore, the study has helped in learning about what all challenges are faced by firms and the manner in which they can be overcome.
Reference
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