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Module: (MG414) Organizational behavior

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Research report
Based on the chosen organization- HSBC

The interface between human behavior and the organization

Student full name:

Lecturer:

Date:
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Executive Summary:

HSBC is a London-based UK international company with finance and banking services. It was

the second largest bank and finance agency in the world and the second largest public institution

in the world in 2011. It has a total user base of approximately 100 million and hires over 7500

people in 87 countries and territories in Africa, Asia, Europe, North America and South America.

The origins of the bank can be tracked back to Hong Kong and Shanghai, where branches were

first opened in 1865. HSBC is now the largest bank in Hong Kong and its recent expansion has

brought Hong Kong back to its roots in mainland China, where it is now the largest international

bank. This article details the specifics of the corporate behavioral culture of HSBC and its

approaches towards advancing model theories. (McShane et al.2017).

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Contents
Introduction:................................................................................................................................................4
Culture of HSBC's Organization:................................................................................................................4
Corporate Social Responsibility (CSR):..................................................................................................5
Management of Human Resources:.........................................................................................................5
Values and Principles:.............................................................................................................................5
Employee Benefits and Rewarding Programs:.........................................................................................6
How culture improves organizational effectiveness:...................................................................................6
Internal Focus (Involvement + Consistency):..........................................................................................6
Flexibility (Adaptability + Involvement):................................................................................................7
Stability (Mission + Consistency):..........................................................................................................7
Role of culture on employee motivation at HSBC:......................................................................................7
Role of Organization culture to further enhance its success:.......................................................................9
Practice in action to the models and theories of HSBC organization:........................................................10
Application of Hertzberg's two-factor principle:...................................................................................10
Theory X (Authoritarian Management Style):.......................................................................................11
Maslow's philosophy of motivation:......................................................................................................11
Conclusion:...............................................................................................................................................12
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Introduction:
The relationship between the organization's culture and function is explained by its behavior.

Organizations vary in terms of ethos and function. It is determined by the organization's

objectives. Changes in the global environment cause organizations to adapt their culture and

structure. The composition of the organization is often determined by the organization's form and

scale.

HSBC's Organization Behavior study also looks into the organizational strategies used by the

company's management. The other techniques in the organization, such as motivational theories

and management approaches. People's behavior in the workplace is often influenced by the

methods that have been used to manage them (Kynaston et al.2015). Another aspect that

influences employee performance and behavior is teamwork. With the advent of technologies,

the roles of organizations have evolved as well. The manner and degree to which functions,

authority, and duties are allocated, managed, and organized, as well as how knowledge flows

between levels of management, is determined by organizational behavior. This arrangement is

entirely determined by the organization's goals and the approach used to accomplish them. The

decision-making authority in a centralized system is concentrated in the top tier of management.

The system of relationships between roles in the organization and among its members is known

as behavior (Robbins et al.2012).

Culture of HSBC's Organization:

The branding of HSBC sets it apart from its rivals. The influential tagline "the world's local

bank" represents HSBC's commitment to effective branding. This brand reputation is the

culmination of years of work to improve the company's public image and community to draw
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and retain loyal clients and employees. HSBC's brand recognition is due to its understanding and

experience of different countries, as well as local expertise. HSBC has branches in 76 countries

and follows the "Think Global, Act Local" approach.

Corporate Social Responsibility (CSR):

HSBC, like many other major corporations across a wide range of industries, believes in sharing

its wealth by giving back to the community (Wong et al.2014). Corporate social responsibility

must be implemented for all businesses doing business. Being viewed as a liability can provide a

corporation with the resources it needs to promote its brand image within communities. They are

mindful of the economic, community, and environmental social obligations. Environmental

conservation initiatives, successful and honest corporate practices, college programs,

undergraduate grants, and supporting local neighborhood services have all been pursued by

HSBC. They also do charitable and voluntary service as volunteers (Hayton et al.2013).

Management of Human Resources:

About 284,000 employees work for HSBC around the world. They recognize the value of having

a smart, committed, and well-educated workforce and the strategic edge it provides. HSBC

promotes diversity in the workplace to build the best employee network and an organizational

community that values diversity, empathy, and dignity. To run top-level activities, they hire the

most trained people, regardless of ethnicity (Lai et al.2019). They do, though, hire local country

employees to handle day-to-day and branch activities so they are familiar with the local business

climate, and this tactic also aids the international company's acceptance by the local population.

Values and Principles:

The HSBC Group adheres to the following five Core Business Principles:

 Excellent customer experience.

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 Operations that are effective and functional.

 Strong capital and liquidity are important.

 The lending strategy is conservative.

 Expense control is a must.

Employee Benefits and Rewarding Programs:

HSBC offers a very appealing and affordable incentive package with quick opportunities for the

right candidates in exchange for their loyalty and hard work.

How culture improves organizational effectiveness:

Organizational efficacy has long been viewed as dependent on culture. Even if core values

emphasize disagreement and ingenuity, organizations with solid cultures develop consistent and

cohesive values and require people to think for and identify with them. Strong cultures help

companies gain competitive advantages. For example, with a strong strategy of holding costs

down and customers satisfied, Southwest Airlines has over time outperformed its competitors

(Glisson, 2015).

Denison (1990) proposed a paradigm that emphasizes four main characteristics of organizational

culture: mission, consistency, engagement, and adaptability.

Internal Focus (Involvement + Consistency):

A sense of control and duty is created where there is a high degree of involvement and

engagement (Denison, 1990). When members of a group have a well-understood set of principles

and ideals, they are empowered to take coordinated action.

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Defining the principles and processes that form the foundation of a strong society is part of

consistency. By focusing on the consistency of the goods or services, a strong and consistent

corporate culture contributes to organizational effectiveness.

Flexibility (Adaptability + Involvement):

A responsive organization can evolve in response to its surroundings, with an emphasis on the

competition and its customers. Flexible organizations have higher levels of product and service

innovation, imagination, and quick responses to evolving customer and employee demand.

Stability (Mission + Consistency):

With time, a stable organization will stay centered and predictable. Stable businesses have good

returns on assets, acquisitions, and revenues, as well as efficient business activities.

To be competitive, a company must master these core characteristics and reinforce its culture.

Good corporate culture, according to Barney, promotes greater team alignment, which

strengthens organizational efficiency and boosts employee morale and loyalty.

Organizations of established identities, on the other hand, are only capable of modest transition

due to participant aversion to altering such deeply rooted and commonly accepted beliefs.

This supports the idea that while cultural strength improves corporate success in the short term, it

can also limit an organization's capacity to adapt. It does, however, say that organizations with

such issues should use subcultures to become more agile and innovative.

Role of culture on employee motivation at HSBC:

It is important to emphasize that corporate culture has a significant impact on employee

satisfaction, task engagement, competitiveness, and the overall working environment. As a

result, the HSBC ethos encourages transparency, collaboration, and dignity. The following ideas
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and beliefs underpin the HSBC culture: the highest personal expectations of honesty, truth and

fair dealing, consistency and efficiency, minimal bureaucracy, swift decision-making, putting the

group's interests ahead of personal ones, economic growth, and many others (Bedarkar et

al.2016).

For example, HSBC leadership believes that correct principles, along with outstanding

leadership abilities and decent grades, are the most critical criteria from the beginning of the

recruiting process.

Furthermore, HSBC is open to new ideas and reforms. HSBC is still looking at new ways to

work with routines and challenges, and positive feedback is welcomed and promoted. HSBC also

offers flexible shift schedules, disability treatment, and aged care, as well as in-house employee

assistance.

Professional growth and preparation are encouraged in the HSBC community. Professional

consultants, for example, will teach employees leadership skills, problem-solving and decision-

making strategies, personal hygiene, time and project management, and so on. Both staffs have

free access to online courses and technical literature from the start of the working process

(Uzkurt et al.2013).

HSBC has a wide range of products. To put it another way, there are a lot of things to learn about

and a lot of people to learn from. HSBC employs a diverse workforce. The HSBC ethos places a

heavy emphasis on collaborative management and cooperation, claiming that these values are the

foundation for potential growth.

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Nonetheless, each team member is in charge of specific activities. The working environment is

enjoyable, and everyone is willing to support one another. Furthermore, a large number of staff

are critical and innovative minds who are open to new ideas.

HSBC, for example, sees critical reasoning as an important part of the decision-making process

and the enterprise as a whole allows you to enjoy reviewing evidence and facts before

formulating opinions and assumptions. Another plus is that HSBC promotes striking the same

balance, ensuring that people have ample time for social activities. "The day I stop laughing

coming to and going from work, I know I have to stop working," says the head of HSBC Human

Resources.

Understanding values, human desires, work commitments, and other factors influence HSBC

culture. Furthermore, the organization makes an effort to cater to all individual requirements. It

is important to note that women make up a significant portion of the company's market, and the

company strives to make service accessible and affordable to all communities. The company's

growth and accomplishments can be found all around the world. HSBC tends to get a greater

understanding of residents and to provide staff with the required knowledge to provide necessary

resources and strengthen the brand.

Role of Organization culture to further enhance its success:

Strong company culture today is trendier than law but in the view of its customers, a positive

corporate culture will clearly distinguish a company from its rivals. A good organization has to

build a community around a series of strong and broadly defined policies and structures. There

are three aspects when the culture of an organization is powerful: Employees know how the
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management wishes them to behave in any case, they believe that the desired reaction is correct

and that it is rewarded to demonstrate the company's principles (Agrawal et al.2020).

Employers play a critical role for maintaining a strong culture, from the recruitment and section

of candidates who share the faith of the organization, to the development of cultural orientation,

training and performance management programmes, which outline and strengthen the core

values of the organization, to the provision of appropriate rewards and payments to employers

who truly embody the culture.

Demonstrate to employees the value of their involvement. Employees should be allowed to

express themselves during both corporate culture meetings and day-to-day activities. Ascertain

that management's decisions are following established values. Employees would be unmotivated

to "walk the talk" if the founder, CEO, or other executives did not do so (Schraeder et al.2011).

Practice in action to the models and theories of HSBC organization:

Application of Hertzberg's two-factor principle:
According to Hertzberg's theory, all factors in an organization should be treated equally. This

philosophy can be put into practice by implementing a compensation scheme to inspire

employees in the workplace. Small parties, building an external climate, and other methods may

be used to incorporate hygiene factors.

Theory X (Authoritarian Management Style):

The average worker despises work and will do whatever possible to stop it. As a result, most

employees would be compelled to strive for corporate goals under fear of discipline. The typical
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person likes to be led, avoids taking on responsibilities, is less ambitious, and prioritizes security.

The basic premise of Theory X is that people dislike working and that some kind of overt

pressure and supervision is required to get them to function efficiently. These individuals need a

highly controlled atmosphere, with threats of punitive discipline serving as a primary source of

encouragement. Employees can only lead to cash incentives as an opportunity to achieve beyond

and above what is anticipated, according to this theory.

Autocratic (Theory X) bosses choose to keep the majority of their power in the workplace. They

make their own decisions and remind the staff, hoping that they can follow the orders. Since they

behave as "authorities," autocratic administrators are sometimes referred to as "authoritative."

Maslow's philosophy of motivation:

Maslow's philosophy of needs should be implemented in the workplace, with both supervisors

and workers participating. Workers must make an effort to complete assigned duties to meet

basic demands, and administrators must make an effort to ensure that employees have a thorough

understanding of the tasks. The achievement of safety goals necessitates a secure working

climate. Employees may also have a feeling of workplace stability, according to the organization.

The fulfillment of social needs necessitates social relations between workers or between

employees and upper management. This contact serves as a source of assistance to the workers

(Montgomery, 2011). An incentive scheme should be given to workers to meet their social

esteem needs. Employees are motivated to succeed when an incentive scheme is implemented,

and when their success is recognized, it encourages them to work harder. Finally, workers

recognize their value and strive to advance in their careers.

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Conclusion:
The number of its parts is greater than the sum of its parts. This is an expression that perfectly

describes HSBC. Although HSBC is a leader in the financial services industry as a whole.

HSBC's success and rapid growth can be attributed to the strength and scope of each of our local

teams operating together (Yelvionita et al.2020). The importance of local awareness is

emphasized in HSBC ads, but it is not the only message. It is a value that the HSBC adheres to.

To carry out everyday tasks smoothly, the workers operate as a team.

The interdependence between organizational structure and community is a critical aspect of the

organization. Any organization's base is built on them. Depending on the philosophy and nature

of the organization, various organizational methods, motivational theories, and leadership

models are used... Another crucial thing that the organization employs to motivate employees to

work is motivation. Motivational theories such as Maslow's hierarchy of requirements and

Hertzberg's two-factor hypothesis can be used to inspire employees in the workplace. Teamwork

is another aspect or consideration that has been highlighted. Working as part of a team is

important for the organization because it yields more outcomes than working alone. Teamwork is

supported by technology, which makes it possible for workers to collaborate (Naheem, 2015).

From an overview of the corporate culture of HSBC good businesses are not extremely culturally

oriented, but strive to strike the correct balance in order to create an efficient culture. HSBC has

built a solid, profoundly ingrained organizational culture and its diverse workforce has a broad

base. If the structure, ethos and operational goals of a business are effectively harmonized and

the dynamic interaction between basic principles, fundamental beliefs and tangible processes is

well understood, corporate culture can be used to reap competitive benefits. HSBC is an example
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of an organization that has been able to retain its position on the hypercompetitive market with a

strong working environment.

References

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