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Letter of Transmittal

19th August 2009

Mr. Kamrul HassanAssistant ProfessorDepartment of Business AdministrationEast West UniversityDhaka, Bangladesh

Sub: Submission of Report

Dear Sir,

It is great pleasure for us to submit the report entitled “OB Practices in Organization.” In accordance to your advice we have selected to complete the report on HSBC.

To serve the purpose, we have applied sophisticated and standard management concepts in order to get the sound output. As per your direction we have tried our best to highlight our findings through this assignment.

We sincerely hope that this assignment will fulfill the requirement suggested by you under the course MGT-251.

Please call us anytime for further query.

With Thanks,

Sincerely,

S. M. Nazmus Sakib Chowdhury(2007-2-10-058)

Md. Abul Bashar()

Sukanta Saha()

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Table of Content

Acknowledgement 06

Executive Summary 07

CHAPTER ONE

1.0 Introduction1.1 Origin of the Report 091.2 Objective of the Study 101.3 Scope of the Study 111.4 Methodology 121.5 Limitations 12

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ACKNOWLEDGEMENT

The subject that we have to carry out in our term paper is an interesting research area. We have tried our best to make the report appropriate. We have just successfully completed our term paper. We want to give special thanks to the honorable instructor Mr. Kamrul Hassan to give us the opportunity to do the term paper.

To prepare this term paper we collected different types of data in various fields. We also took help from some sources and also grateful to those people who corporate us to do this term paper.

We are also paying our gratitude to Almighty ‘ALLAH’ who gives us the brilliant opportunity to complete this assignment successfully with good health and sound mind. All praise for almighty ‘ALLAH’ who give is always very kind to his subjects.

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Executive Summary

The recommendations that result from this study are to add the following topics to the OB practices in HSBC.

Introduction of Overtime Payments Opportunity of having loans for employees. Use of more modern & user friendly software. Official Transportation system. Giving concentration on the claim of the employees. Increase the number of branches.

HSBC employee’s has a culture to guide by integrity, thoughtfulness and creativity. Their solutions, focused on the needs of our clients. Thus they has became the insurer people trust and turn to the leader of the industry. HSBC think services are the parts of their organizational culture

Our study shows that, with listings on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by around 220,000 shareholders in 119 countries and territories. The shares are traded on the New York Stock Exchange in the form of American Depositary Receipts.

Through an international network linked by advanced technology, including a rapidly growing e-commerce capability, HSBC provides a comprehensive range of financial services: personal financial services; commercial banking; corporate, investment banking and markets; private banking; and other activities.

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Part One

INTRODUCTION

Origin of the Report

The basic deal for a job is that a person receives fair reward in exchange for the service that a person

gives to the organization. But beside salaries or payment, there are other factors that a person needs to get

him/her or himself/herself motivated towards the job. There must be feelings for the work in the

background for a same person to give his or her full potential for the organization. Our study states the

real fact of Organizational culture, employees motivations, leadership and communication process and

conflict handling which are the basic needs to make an employee motivated towards the organizational

goal. We thank our course instructor Mr. Kamrul Hassan for providing us with the opportunity for

conducting surveys and coming up with this project. Therefore, we think that the origin of this report is

the assignment that we got from our honorable course instructor.

Objective of Study

The basic objective of this study were,

To be able to understand the impact of Organizational culture

Characteristics of organizational culture,

What r the basic concepts of Uniform culture,

Some processes of OC.

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On the motivation Factors we get the concepts on

Maslows Hierarchy need

Douglas Mc Gregor Theory X&Y

Herzberg two factors theory

To understand the process of the

Leadership approach

Development of leadership

Act of managers as leaders

To hone our communication as well as convincing skills in real life situations

Channels and methods of Business Communication

Focuses of Business Communication

To understand the phases of decision making

Cognitive and personal biases

Styles and methods of decision making

To become efficient in handling conflict

Types of Conflict

Causes of Conflicts

How to resolve conflict

Scope of Study

The scope of the term paper will limit to the human resource issues of the organization only. The

contents of the term paper will be the best possible information available thus preserving the

confidentiality of the company’s policies and procedures.

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Topics studied in ‘Report writing’ part:

Finally, to make this report we have also learned few things:

The standard method of report writing.

Learn properly the theories of Organizational culture, theories of employee motivational factors,

leadership, decision making, conflict handling from the book.

Methodology of Study:

We actually went through many phases for research method. We have followed the guideline supplied by

our instructor KAMRUL HASSAN.

Firstly, we created a conceptual framework of the topic.

Secondly, we collected data from primary sources and secondary sources.

Thirdly, we analyzed the data to fit the data in appropriate location to have meaningful and

relevant information.

Fourthly, we implemented and developed by writing the information under proper heading.

And on the basis of this analysis the findings of the report were made.

Limitations:

The following were the major limitations that hampered the report from being more valid and accurate.

The report will be far more informative and acceptable if we would have the proper

cooperation from the managers.

In spite of assuring them, they were not that much free flower of their information.

Lack of manpower.

Time constraint or limitation.

Errors in rating the factors from the personnel’s point of view.

Related websites are not standard because they give demo or little information or data.

Assembling all the information in an adequate manner was also a difficult task.

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But among these we believe lacks of information are the main limitation of

our report.

Definitions and Acronyms

Report Preview: At part one we have given the over view of the HSBC

At part two we have given the theoretical discussion on the topics.

At part three we have showed the organizational Behavior practices in the bank.

At part four we have given the conclusion and recommendation.

BACKGROUND OF THE BANK

: AN OVERVIEW

HSBC is the world's local bank.

Headquartered in London, HSBC is one of the largest banking and financial services organizations in the world. HSBC's international network comprises around 8,500 offices in 86 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa.

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With listings on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by around 220,000 shareholders in 119 countries and territories. The shares are traded on the New York Stock Exchange in the form of American Depositary Receipts.

Through an international network linked by advanced technology, including a rapidly growing e-commerce capability, HSBC provides a comprehensive range of financial services: personal financial services; commercial banking; corporate, investment banking and markets; private banking; and other activities.

HISTORY OF HSBC:

HSBC has a history of more than 144 years. HSBC stands for ‘The Hongkong and Shanghai Banking Corporation Limited’. Bangladesh branches co branches (the bank) commenced banking operations in Bangladesh on 3 December 1996 after obtaining its banking license from Bangladesh bank on 17 April 1996. HSBC is incorporated in Hong Kong and its ultimate holding company HSBC plc (the group) is incorporated in England.

The Bank established an Islamic Banking Branch (amanah branch) from 26 February 2004, on Islamic shariah principles based banking which is governed by the HSBC Supervisory committee in Dubai, after obtaining its license from Bangladesh Bank on 31 August 2003.

HSBC also operates an Offshore Banking Unit (OBU) after obtaining its license from Bangladesh Bank on 9 July 1998.

THE ORGANIZATION STRUCTURE

The Standard Chartered Bank in Bangladesh has its headquarters and twenty one branches across

the country. While the full range of services is available at the headquarters, other branches offer

specific services appropriate for the location. At the headquarters, the bank mainly consists of

two divisions:

Business

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Support

The business division has the following departments:

Corporate Banking Group (CBG)

Global Banking & Markets (GBM)

Institutional Banking Group (IBG)

Consumer Banking (CB)

Internet Banking (IB)

Personal banking (PB)

The Support division provides assistance to the above business activities and

consists following departments:

Operations

Finance, Administration and Risk Management

Information Technology Center

Human Resource Department

Legal and Compliance

External Affairs

Credit

GROUP STRUCTURE

HSBC Holdings is a public limited company incorporated in England and Wales.

Headquartered in London, the HSBC group operates in five regions: Europe; Hong Kong; the rest of Asia Pacific; including the Middle East and Africa; North America; and South America. 

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The entities which form the HSBC Group provide a comprehensive range of financial services to personal, commercial, corporate, institutional and investment, and private banking clients. To more easily promote the Group as a whole, HSBC was established as a uniform, international brand name in 1999.  In 2002, HSBC launched a campaign to differentiate its brand from those of its competitors by describing the unique characteristics which distinguish HSBC, summarized by the words 'The world's local bank'.

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Theoretical Discussion of the Report

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Part 2

Leadership

What is Leadership?

Leadership is ultimately about creating a way for people to contribute to making something extraordinary

happen.

Leadership is the art of motivating a group of people to act towards achieving a common goal. A

leader is the inspiration and director of action. He or she is the person in the group that possesses

the combination of personality and skills that makes others want to follow his or her direction.

To find out the best leader for our society it is best way to talk over with the people who is

working for it and serving for the society.

Leadership has been described as the “process of social influence in which one person is able to

enlist the aid and support of others in the accomplishment of a common task”. Students of

leadership have produced theories involving traits, styles and behaviors, power, situational

interaction, vision and values, charisma, and intelligence among others.

Leadership Performance:

In order to facilitate successful performance it is important to understand and accurately measure

leadership performance. Job performance generally refers to behavior that is expected to contribute to

organizational success. Many distinct conceptualizations are often lumped together under the umbrella of

leadership performance, including outcomes such as leader effectiveness, leader advancement, and leader

emergence (Kaiser et al., 2008). For instance, leadership performance may be used to refer to the career

success of the individual leader, performance of the group or organization, or even leader emergence.

Each of these measures can be considered conceptually distinct.

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Types of Leadership Style:

Leadership has a formal aspect (as in most political or business leadership, individual persons

holding the title "manager") or an informal one (as in most friendships or team activities).

Speaking of "leadership" (the abstract term) rather than of "leading" (the action) usually it

implies that the entities doing the leading have some "leadership skills" or competencies. There

are a several types of styles of leadership. They are as follows:

The bureaucratic leader:

The bureaucratic leader is very structured and follows the procedures as they have been

established. This type of leadership has no space to explore new ways to solve problems and is

usually slow paced to ensure adherence to the ladders stated by the company.

The charismatic leader:

The charismatic leader leads by infusing energy and eagerness into their team members. This

type of leader has to be committed to the organization for the long run. If the success of the

division or project is attributed to the leader and not the team, charismatic leaders may become a

risk for the company by deciding to resign for advanced opportunities..

The autocratic leader:

The autocratic leader is given the power to make decisions alone, having total authority. This

leadership style is good for employees that need close supervision to perform certain tasks.

The democratic leader:

This style involves the leader including one or more employees in the decision making process

(determining what to do and how to do it). However, the leader maintains the final decision

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making authority. Using this style is not a sign of weakness; rather it is a sign of strength that

your employees will respect. This is normally used when you have part of the information, and

your employees have other parts.

The laissez-faire ("let do") leader:

In this style, the leader allows the employees to make the decisions. However, the leader is still

responsible for the decisions that are made. This is used when employees are able to analyze the

situation and determine what needs to be done and how to do it.

The task-oriented leader:

The task-oriented leader focuses on the job, and concentrates on the specific tasks assigned to

each employee to reach goal accomplishment. This leadership style suffers the same motivation

issues as autocratic leadership, showing no involvement in the teams needs. It requires close

supervision and control to achieve expected results.

The transaction leader:

The transaction leader is given power to perform certain tasks and reward or punish for the

team’s performance. It gives the opportunity to the manager to lead the group and the group

agrees to follow his lead to accomplish a predetermined goal in exchange for something else.

The transformation leader:

The transformation leader motivates its team to be effective and efficient. Communication is the

base for goal achievement focusing the group on the final desired outcome or goal attainment.

This leader is highly visible and uses chain of command to get the job done.

Principles of Leadership

1. Know yourself and seek self-improvement - In order to know yourself, you have to

understand your be, know, and do, attributes. Seeking self-improvement means

continually strengthening your attributes. This can be accomplished through self-study,

formal classes, reflection, and interacting with others.

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2. Be technically proficient - As a leader, you must know your job and have a solid

familiarity with your employees' tasks.

3. Seek responsibility and take responsibility for your actions - Search for ways to guide

your organization to new heights. And when things go wrong, they always do sooner or

later -- do not blame others. Analyze the situation, take corrective action, and move on to

the next challenge.

4. Make sound and timely decisions - Use good problem solving, decision making, and

planning tools.

5. Set the example - Be a good role model for your employees. They must not only hear

what they are expected to do, but also see. We must become the change we want to see -

Mahatma Gandhi

6. Know your people and look out for their well-being - Know human nature and the

importance of sincerely caring for your workers.

7. Keep your workers informed - Know how to communicate with not only them, but also

seniors and other key people.

8. Develop a sense of responsibility in your workers - Help to develop good character traits

that will help them carry out their professional responsibilities.

9. Ensure that tasks are understood, supervised, and accomplished - Communication is the

key to this responsibility.

10. Train as a team - Although many so called leaders call their organization, department,

section, etc. a team; they are not really teams...they are just a group of people doing their

jobs.

11. Use the full capabilities of your organization - By developing a team spirit, you will be

able to employ your organization, department, section, etc. to its fullest capabilities.

Leadership VS Management:

Management and leadership have been closely related. Traditionally ascribed to management style could

also apply to leadership style. However, a clear distinction between management and leadership may

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nevertheless prove useful. This would allow for a reciprocal relationship between leadership and

management, implying that an effective manager should possess leadership skills, and an effective leader

should demonstrate management skills. One

Management involves power by position.

Leadership involves power by influence.

Warren Bennis (1989) drew twelve distinctions between the two groups:

Managers administer; leaders innovate.

Managers ask how and when; leaders ask what and why.

Managers’ focus on systems; leaders focus on people.

Managers do things right; leaders do the right things.

Managers maintain; leaders develop.

Managers rely on control; leaders inspire trust.

Managers have short-term perspective; leaders have long-term perspective.

Managers accept the status-quo; leaders challenge the status-quo.

Managers have an eye on the bottom line; leaders have an eye on the horizon.

Managers imitate; leaders originate.

Managers emulate the classic good soldier; leaders are their own person.

Managers copy; leaders show originality.

In the end, both leadership and management do not only manifest itself as purely a business phenomenon

Leadership Development

Leadership development refers to any activity that enhances the quality of leadership within an individual

or organization which involves

Developing Individual Leaders :

People are not all born with the same potential to lead well .Different personal characteristics can help or

hinder a person's leadership effectiveness and require formalized programs for developing leadership

competencies

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The success of leadership development efforts has been linked to three variables

Individual learner characteristics

The quality and nature of the leadership development program

Genuine support for behavioral change from the leader's supervisor

Developing Leadership at a Collective Level :

More recently organizations have come to understand that leadership can also be developed by

strengthening the connection between and alignment of the efforts of individual leaders and the systems

through which they influence organizational operations. Leadership development can build on the

development of individuals (including followers) to become leaders. In addition, it also needs to focus on

the interpersonal linkages between the individuals in the team

Succession planning

The development of "high potentials" to take over the current leadership when their time comes

to exit their positions is succession planning. This type of leadership development usually

requires the extensive transfer of an individual between departments. In many multinationals, it

usually requires international transfer and experience to build a future leader. Succession

planning requires a sharp focus on organization's future and vision, in order to align leadership

development with the future the firm aspires to create.

Employee Motivation:

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What is motivation?

Motivation is a desire to achieve a goal, combined with the energy to work towards that goal.

Students who are motivated have a desire to undertake their study and complete the requirements

of their course. Motivation is the reason or reasons for engaging in a particular behavior,

especially human behavior as studied in psychology and neurophysiology. The reasons may

include basic needs such as food or a desired object, goal, state of being, or ideal. The motivation

for a behavior may also be attributed to less-apparent reasons such as altruism or morality.

According to Geen motivation refers to the initiation, direction, intensity and persistence of

human behavior.

Positive and negative Motivation

Sometimes a distinction is made between positive and negative motivation. Positive motivation is a

response which includes enjoyment and optimism about the tasks that you are involved in. Negative

motivation involves undertaking tasks because there will be undesirable outcomes,

MOTIVATIONAL CONCEPTS :

Reward and Reinforcement

A reward, tangible or intangible, is presented after the occurrence of an action (i.e. behavior)

with the intent to cause the behavior to occur again. This is done by associating positive

meaning to the behavior. Studies show that if the person receives the reward immediately, the

effect would be greater, and decreases as duration lengthens. Repetitive action-reward

combination can cause the action to become habit.

Rewards can also be organized as extrinsic or intrinsic. Extrinsic rewards are external to the

person; for example, praise or money. Intrinsic rewards are internal to the person; for example,

satisfaction or accomplishment.

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Some authors distinguish between two forms of intrinsic motivation: one based on enjoyment,

the other on obligation. In this context, obligation refers to motivation based on what an

individual thinks ought to be done. For instance, a feeling of responsibility for a mission may

lead to helping others beyond what is easily observable, rewarded, or fun.

A reinforce is different from reward, in that reinforcement is intended to create a measured

increase in the rate of a desirable behavior following the addition of something to the

environment.

Intrinsic and extrinsic motivation

Intrinsic motivation is when people engage in an activity, without obvious external incentives,

such as a hobby.

Intrinsic motivation has been studied by educational psychologists since the 1970s, and

numerous studies have found it to be associated with high educational achievement and

enjoyment by students. There is currently no universal theory to explain the origin or elements of

intrinsic motivation, and most explanations combine elements of Bernard Weiner's attribution

theory, Bandura's work on self-efficacy and other studies relating to locus of control and goal

orientation. Thus it is thought that students are more likely to be intrinsically motivated if they:

Attribute their educational results to internal factors that they can control (e.g. the amount of

effort they put in),

Believe they can be effective agents in reaching desired goals (i.e. the results are not determined

by dumb luck),

Are interested in mastering a topic, rather than just rote-learning to achieve good grades.

In knowledge-sharing communities and organizations, people often cite altruistic reasons for

their participation, including contributing to a common good, a moral obligation to the group,

mentorship or 'giving back'. In work environments, money may provide a more powerful

extrinsic factor than the intrinsic motivation provided by an enjoyable workplace.

The most obvious form of motivation is coercion, where the avoidance of pain or other negative

consequences has an immediate effect. Extreme use of coercion is considered slavery. While

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coercion is considered morally reprehensible in many philosophies, it is widely practiced on

prisoners, students in mandatory schooling, within the nuclear family unit (on children), and in

the form of conscription. Critics of modern capitalism charge that without social safety networks,

wage slavery is inevitable. However, many capitalists such as Ayn Rand have been very vocal

against coercion. Successful coercion sometimes can take priority over other types of motivation.

Self-coercion is rarely substantially negative (typically only negative in the sense that it avoids a

positive, such as forgoing an expensive dinner or a period of relaxation), however it is interesting

in that it illustrates how lower levels of motivation may be sometimes tweaked to satisfy higher

ones.

Self-control

The self-control of motivation is increasingly understood as a subset of emotional intelligence; a

person may be highly intelligent according to a more conservative definition (as measured by

many intelligence tests), yet unmotivated to dedicate this intelligence to certain tasks. Drives and

desires can be described as a deficiency or need that activates behavior that is aimed at a goal or

an incentive. These are thought to originate within the individual and may not require external

stimuli to encourage the behavior. Basic drives could be sparked by deficiencies such as hunger,

which motivates a person to seek food; whereas more subtle drives might be the desire for praise

and approval, which motivates a person to behave in a manner pleasing to others.

By contrast, the role of extrinsic rewards and stimuli can be seen in the example of training

animals by giving them treats when they perform a trick correctly. The treat motivates the

animals to perform the trick consistently, even later when the treat is removed from the process.

MOTIVATIONAL THEORIES :

Need Hierarchy Theory

Abraham Maslow's hierarchy of human needs theory is the most widely discussed theory of

motivation.

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The theory can be summarized as thus:

Human beings have wants and desires which influence their behaviour; only unsatisfied needs

can influence behavior, satisfied needs cannot.

Since needs are many, they are arranged in order of importance, from the basic to the complex.

The person advances to the next level of needs only after the lower level need is at least

minimally satisfied.

The further the progress up the hierarchy, the more individuality, humanness and psychological

health a person will show.

The needs, listed from basic (lowest, earliest) to most complex (highest, latest) are as follows:

Physiological

Safety and security

Social

Self esteem

Self actualization

Herzberg’s two factor theory

Frederick Herzberg's two factor theory, concludes that certain factors in the workplace result in

job satisfaction, while others do not, but if absent lead to dissatisfaction.

He distinguished between:

Motivators; (e.g. challenging work, recognition, responsibility) which give positive satisfaction,

and

Hygiene factors ; (e.g. status, job security, salary and fringe benefits) which do not motivate if

present, but if absent will result in demotivation.

The name Hygiene factors is used because, like hygiene, the presence will not make you

healthier, but absence can cause health deterioration.

The theory is sometimes called the "Motivator-Hygiene Theory."

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Alderfer’s ERG theory

Created by Clayton Alderfer, Maslow's hierarchy of needs was expanded, leading to his ERG

theory (existence, relatedness and growth). Physiological and safety, the lower order needs, are

placed in the existence category, Love and self esteem needs in the relatedness category. The

growth category contained the self actualization and self esteem needs.

Drive Reduction Theories

There are a number of drive theories. The Drive Reduction Theory grows out of the concept that

we have certain biological needs, such as hunger. As time passes the strength of the drive

increases as it is not satisfied. Then as we satisfy that drive by fulfilling its desire, such as eating,

the drive's strength is reduced. It is based on the theories of Freud and the idea of feedback

control systems, such as a thermostat.

There are several problems; the first problem is that it does not explain how Secondary

Reinforcers reduce drive. For example, money does not satisfy any biological or psychological

need but reduces drive on a regular basis through a pay check second-order conditioning.

Secondly, if the drive reduction theory held true we would not be able to explain how a hungry

human being can prepare a meal without eating the food before they finished cooking it.

However, when comparing this to a real life situation such as preparing food, one does get

hungrier as the food is being made (drive increases), and after the food has been consumed the

drive decreases. The only reason the food does not get eaten before is the human element of

restraint and has nothing to do with drive theory. Also, the food will either be nicer after it is

cooked, or it wont be edible at all before it is cooked.

Cognitive dissonance theory

Suggested by Leon Festinger, this occurs when an individual experiences some degree of

discomfort resulting from an incompatibility between two cognitions. For example, a consumer

may seek to reassure himself regarding a purchase, feeling that another decision may have been,

in retrospect, preferable.

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Need Achievement Theory

David McClelland’s achievement motivation theory envisages that a person has need for three

things but people differ in degree in which the various needs influence their behavior: Need for

achievement, Need for power, and Need for affiliation

Interests Theory

Holland Codes are used in the assessment of interests as in Vocational Preference Inventory

(VPI; Holland, 1985). One way to look at interests is that if a person has a very strong interest in

one of the 6 Holland areas, then obtaining outcomes in that area will be very strongly reinforcing

relative to obtaining outcomes in areas of weak interest.

Goal-setting theory

Goal-setting theory is based on the notion that individuals sometimes have a drive to reach a

clearly defined end state. Often, this end state is a reward in itself. A goal's efficiency is affected

by three features; proximity, difficulty and specificity. An ideal goal should present a situation

where the time between the initiation of behavior and the end state is close in time. This explains

why some children are more motivated to learn how to ride a bike than mastering algebra. A goal

should be moderate, not too hard or too easy to complete. In both cases, most people are not

optimally motivated, as many want a challenge (which assumes some kind of insecurity of

success). At the same time people want to feel that there is a substantial probability that they will

succeed. Specificity concerns the description of the goal in their class. The goal should be

objectively defined and intelligible for the individual. A classic example of a poorly specified

goal is to get the highest possible grade. Most children have no idea how much effort they need

to reach that goal. For further reading, see Locke and Latham.

Common Myths about Employee Motivation:

The topic of motivating employees is extremely important to managers and supervisors. Despite the

important of the topic, several myths persist -- especially among new managers and supervisors. Before

looking at what management can do to support the motivation of employees, it's important first to clear up

these common myths.

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Myth #1 -- "I can motivate people"

Not really -- they have to motivate themselves. You can't motivate people anymore than you can

empower them. Employees have to motivate and empower themselves. However, you can set up

an environment where they best motivate and empower themselves. The key knows how to set up

the environment for each of your employees.

Myth #2 -- "Money is a good motivator"

Not really. Certain things like money, a nice office and job security can help people from

becoming less motivated, but they usually don't help people to become more motivated. A key

goal is to understand the motivations of each of your employees.

Myth #3 -- "Fear is a damn good motivator"

Fear is a great motivator -- for a very short time. That's why a lot of yelling from the boss won't

seem to "light a spark under employees" for a very long time.

Myth #4 -- "I know what motivates me, so I know what motivates my employees"

Not really. Different people are motivated by different things. I may be greatly motivated by

earning time away from my job to spend more time my family. You might be motivated much

more by recognition of a job well done. People are not motivated by the same things. Again, a

key goal is to understand what motivates each of your employees.

Myth #5 -- "Increased job satisfaction means increased job performance"

Research shows this isn't necessarily true at all. Increased job satisfaction does not necessarily

mean increased job performance. If the goals of the organization are not aligned with the goals of

employees, then employees aren't effectively working toward the mission of the organization.

Tips on Improving Employee Motivation:

Here are 10 useful pointers on getting your employees enthused, productive, and ready to give their all:

Build a foundation. It’s important to build a solid foundation for your employees so they feel

invested in the company. Tell them about the history of the business and your vision for the

future. Ask them about their expectations and career goals, as well as how you can help them

feel part of the team. When any new employee starts, make sure he or she receives a thorough

welcome orientation.

Create a positive environment. Promote an office atmosphere that makes all employees feel

worthwhile and important. Don’t play favorites with your staff. Keep office doors open and let

folks know they can always approach you with questions or concerns. A happy office is a

productive office.

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Put people on the right path. Most employees are looking for advancement opportunities within

their own company. Work with each of them to develop a career growth plan that takes into

consideration both their current skills and future goals. If employees become excited about

what’s down the road, they will become more engaged in their present work.

Educate the masses. Help employees improve their professional skills by providing on-the-job

training or in-house career development. Allow them to attend workshops and seminars related

to the industry. Encourage them to attend adult education classes paid for by the company.

Employees will feel you are investing in them, and this will translate into an improved job

performance.

Don’t forget the fun. Once in a while you have put work aside and do something nice for the

people who work for you. Treat the office to a pizza lunch or take everyone to the movies.

Reward employees with an unexpected day off or by closing the office early on a random

Friday afternoon.

Acknowledge contributions. You can make a huge difference in employee morale simply by

taking the time to recognize each employee’s contributions and accomplishments, large or

small. Be generous with praise.

Provide incentives. Offer people incentives to perform well, either with something small like a

gift certificate or something more substantial such as a performance-based bonus or salary

increase. Give out “Employee of the Month” awards. Such tokens of appreciation will go far in

motivating employees.

Honor your promises. Getting people to give their all requires following through on promises. If

you tell an employee that he or she will be considered for a bonus if numbers improve or

productivity increases, you’d better put your money where your mouth is. Failure to follow

through on promises will result in a loss of trust -- not only that person’s trust, but the trust of

every employee that hears the story.

Provide career coaching. Help employees reach the next level professionally by providing on-

site coaching. Bring in professionals to provide one-on-one counseling, which can help people

learn how to overcome personal or professional obstacles on their career paths.

Match tasks to talents. You can improve employee motivation by improving employee

confidence. Assign individuals with tasks you know they will enjoy or will be particularly good

uhat. An employee who is successful at one thing will have the self-confidence to tackle other

projects with renewed energy and excitement.

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Organizational Culture:

What is Organizational culture?

A common perception held by the organization’s members; a system of shared meaning.

Basically, organizational culture is the personality of the organization. Culture is comprised of the

assumptions, values, norms and tangible signs (artifacts) of organization members and their behaviors.

Members of an organization soon come to sense the particular culture of an organization. Culture is one

of those terms that are difficult to express distinctly, but everyone knows it when they sense it. For

example, the culture of a large, for-profit corporation is quite different than that of a hospital which is

quite different that that of a university. You can tell the culture of an organization by looking at the

arrangement of furniture, what they brag about, what members wear, etc. -- similar to what you can use to

get a feeling about someone's personality.

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Corporate culture can be looked as a system. Inputs include feedback from, e.g., society, professions,

laws, stories, values on competition or service, etc. The process is based on our assumptions, values and

norms. For an example our values are based on money, time, facilities, space and people. Outputs or

effects of our culture are, e.g., organizational behaviors, technologies, strategies, image, products,

services, appearance, etc.

The concept of culture is particularly important when attempting to manage organization-wide

change. Practitioners are coming to realize that, despite the best-laid plans, organizational change

must include not only changing structures and processes, but also changing the corporate culture

as well.

There's been a great deal of literature generated over the past decade about the concept of

organizational culture -- particularly in regard to learning how to change organizational culture.

Organizational change efforts are rumored to fail the vast majority of the time. Usually, this

failure is credited to lack of understanding about the strong role of culture and the role it plays in

organizations. That's one of the reasons that many strategic planners now place as much

emphasis on identifying strategic values as they do mission and vision.

Recognition of culture as an organizational opportunity:

Attitude toward change and risk is often seen as the major barrier for change to be initiated or

successfully implemented. Comfort with the status quo too often extends toward passive-aggressive

attitudes to any idea lacking a full analysis that documents a high ROI that can be attained with limited

risk. Rewards too often go to those who identify risks associated with new ideas and not to those initiating

the ideas. This is not to say that all change is prevented since many changes are essential for competitive

positioning and are integrated into the capital budgeting process. The change that is often overlooked is

that associated with a true desire for high achievement that drives the search for continuous improvement

and identification of best practices employed elsewhere. Without encouragement of such change

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initiation, the current culture allows numerous ideas to die for lack of support and warnings not to rock

the boat. Or the new ideas are burdened down with additional study as those identifying potential risks are

rewarded. In addition to suppressing bottom-up ideas, the organization culture often encourages a

passive-aggressive attitude toward top-down initiatives since there is little confidence that the change

effort will be sustained. Progress toward changing attitudes can be tracked with various cultural

assessment tools.

Global vs. local orientation :

Further integration will require an employee base that thinks of themselves as “Company X employees”

and understand their role within the larger entity. While a communication and training program might

assist some employees in making this transition, it is expected that this is a longer term initiative that will

require careful recruitment (brochure & video) and selection (interview guide) of new hires that fit the

desired mold. Examples of how this culture might be nurtured include:

Set clear expectations for new hires that their ultimate career goal is likely to include one or more

job relocations.

Cross-organization workforce planning for high potentials where employee development might

include a rotational assignment at a foreign location. These lateral assignments would then set up

a promotional assignment when rotated back.

Cross-organization recruiting where different locations assist in recruiting college graduates for

other locations. This requires relocation at a time when lifestyle changes are likely to favor such a

move, while at the same time setting the expectation that future relocations are also likely for

career development.

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Employee RelationsEmployee Relations involves the body of work concerned with maintaining employer-employee relationships that

contribute to satisfactory productivity, motivation, and morale.   Essentially, Employee Relations is concerned with

preventing and resolving problems involving individuals which arise out of or affect work situations.

Advice is provided to supervisors on how to correct poor performance and employee

misconduct.   In such instances, progressive discipline and regulatory and other requirements

must be considered in effecting disciplinary actions and in resolving employee grievances and

appeals.   Information is provided to employees to promote a better understanding of

management's goals and policies.  Information is also provided to employees to assist them in

correcting poor performance, on or off duty misconduct, and/or to address personal issues that

affect them in the workplace.   Employees are advised about applicable regulations, legislation,

and bargaining agreements.   Employees are also advised about their grievance and appeal rights

and discrimination and whistleblower protections.  

Employee’s Discipline

Discipline refers to the actions imposed by an organization on its employees for failure to follow

the organization's rules, standards, or policies. Traditional approaches to discipline, based on

punishment, are known to promote adversarial relationships between leaders and followers. A

more effective approach now being used by many companies recognizes good performance and

encourages employee commitment to the organization and its goals. Once employees see the

discrepancy between actual and expected performance, the burden is on the employee to change.

Even with more positive approaches to discipline, organizations still need to have some form of

disciplinary procedure, whether formal or informal, that carries successively stiffer penalties for

repeated or more serious offenses.

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Establishing and Communicating Work Rules

A first step in the disciplinary procedure is to establish work rules that are in line with the

organization's goals or objectives. These work rules become the basis for disciplinary actions

when the rules are broken. They are generally established jointly by management, the

organization's human resources unit, and employees, who should have an opportunity for input to

ensure that rules are fair and can reasonably be followed. Work rules are directly related to work

behavior and productivity. Employees who continually violate the rules are candidates for a

disciplinary procedure.

Employees must know the rules that have been established. Even though employees might have

had input in the development of the rules, it is the employer who creates the final version. The

organization's work rules should be presented in a printed format, and each employee should be

given a copy. This is usually accomplished in the form of an employee handbook. The handbook

may have other information, but the work rules are a critical part of it.

In some organizations, these work rules are discussed at meetings, seminars, or training sessions.

Employees with long tenure in the organization typically review the rules periodically. Work

rules should be reviewed from time to time and, if necessary, revised. If an organization makes

major changes in the way it operates because of new equipment, expansion or contraction, or

new ownership, it will need to revise its work rules accordingly. Small companies with only a

few employees also need to have written work rules. Such companies may not have an employee

handbook, but it is still wise for the rules to be written down and presented to each employee.

Additionally, these rules may be posted in a spot where all employees can read them easily.

Evaluating Employees

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In the employee evaluation process, either formal or informal, behaviors requiring disciplinary

actions are often revealed. Informal evaluation might occur at all times as supervisors monitor

employees. Formal evaluations of each employee should be completed regularly so that

deficiencies can be discovered and discussed with the employee. When employees violate work

rules, a change of behavior is sought. Although small companies with only a few employees may

not use a formal written evaluation, it is still important that employees be evaluated regularly.

Small companies may find it easier to take corrective actions than large companies because of

the closeness of the supervisor to each of the work situations. In contrast, a supervisor in a large

organization might be responsible for fifty, a hundred, or more workers.

When employees break the rules of the organization, they often need assistance to change their

behavior so as to operate within the established parameters. Counseling and coaching could be a

part of this process, but they usually take place prior to disciplinary actions. If employees change

their behavior as a result of disciplinary actions and conform to the established work rules, there

is no need for further discipline. If a change in behavior does not occur, then a harsher

disciplinary procedure will need to be implemented.

The need to resort to disciplinary procedures may be lessened by (1) smart hiring, using

background checks and extensive interviews; (2) performance evaluations with clear goals and

objectives; (3) training and development to improve skills and increase performance; and (4)

rewarding performance and goal achievement.

Using the Disciplinary Procedure

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Although most employees do follow the organization's rules and regulations, there are times when the employer must use the discipline procedure. Frequent reasons for using the procedure include the following:

Absence from work

Absenteeism

Abusing customers

Abusive language toward supervisor

Assault and fighting among employees

Causing unsafe working conditions

Damage to or loss of machinery or materials Dishonesty

Disloyalty to employer (includes competing with employer, conflict of interest)

Falsifying company records (including time records, production records)

Falsifying employment application

Gambling

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Horseplay

Incompetence (including low productivity)

Insubordination

Leaving place of work (including quitting early)

Loafing

Misconduct during a strike

Negligence

Obscene or immoral conduct

Participation in a prohibited strike

Possession or use of drugs or intoxicants

Profane or abusive language (not toward supervisor)

Refusal to accept a job assignment

Refusal to work overtime

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Sleeping on the job

Slowdown

Tardiness

Theft Threat to or assault of management representative

A formal disciplinary procedure usually begins with an oral warning and progresses through a

written warning, suspension, and, ultimately, discharge. Formal disciplinary procedures also

outline the penalty for each successive offense and define time limits for maintaining records of

each offense and penalty. For instance, tardiness records might be maintained for only a six-

month period. Tardiness prior to the six months preceding the offense would not be considered in

the disciplinary action. Less formal procedures generally specify the reasons for disciplinary

action as being for just or proper cause.

Preventing the disciplinary procedure from progressing beyond the oral warning stage is

obviously advantageous to both the employee and management. Discipline should be aimed at

correction rather than punishment. If the behavior can be corrected by a friendly talk between the

supervisor and the employee, there is less chance that the problem will become a source of

bitterness. Formal oral or written warnings are less likely to cause animosity than would a

suspension. Of course, the most costly and least acceptable form of discipline is discharge.

Disciplinary procedures should be viewed as a means of encouraging employees to abide

willingly by the rules and standards of the organization.

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The importance of having a procedurally correct performance evaluation system receives

constant emphasis. There is a need to adopt procedural due process for performance evaluation

systems in order to rate employee job performance accurately because those ratings might be

challenged. Legal problems regarding employee disciplinary measures can be prevented by

making sure that these measures follow prescribed guidelines, such as these:

* Employees are given advance notice of disciplinary action.

* Disciplinary rules are reasonable.

* Offenses are properly investigated.

* Investigations are conducted objectively.

* Rules are enforced equally.

* Penalties are related to the severity of offenses.

Employee Empowerment

Attitude toward employee empowerment Managers must believe the best in people and that people can

change if encouraged to do so and given the necessary support. This is fundamental to employee

development. Aspects of two-way trust are also involved. This is moving toward more employee and

supervisor control over business processes without tight controls from management or corporate services.

As such, cultural attributes of micro-managing and bureaucracy come into play when control is a

dominant feature in the culture.

Some Interpersonal culture inside an Organization:

Dominant Culture: Express the core values that are shared by a majority of the

organizations members.

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Subculture: Mini cultures within an organization, typically defined by department

designators and geographic separation.

Power Culture: Strong leaders are needed to distribute resources. Leaders are firm, but fair and

generous to loyal followers. If badly managed there is rule by fear, abuse of power for personal

gain, and political intrigue.

Achievement culture: Rewards results, not unproductive efforts. Work teams are self-directed.

Rules and structure serve the system, not an end by themselves. A possible downside is sustaining

energy and enthusiasm over time.

Support Culture: Employee is valued as a person, as well as a worker. Employee harmony is

important. Weakness is a possible internal commitment without an external task focus.

Role Culture: Rule of law with clear responsibility and reward system. Provides stability, justice

and efficiency. Weakness is impersonal operating procedures and a stifling of creativity and

innovation.

Understating an Organizational culture:

To understand an organizational culture one has to understand the basic things of an organization. To

understand these employees must face this question,

Who sets the style and pace?

What kind of Role Model are they?

"Do as we do" or "Do as we say?"

What behavior is rewarded, condemned or ignored?

Is feedback constant, intermittent, at job completion, or never?

Are improper or unethical practices condoned through silence?

What information is shared? (needed vs. desired information)

Is upward information flow constrained? (Do you really know?)

How is superior performance encouraged?

What type of performance appraisal system is used?

How are the best qualified people recruited?

Is training and development offered to everyone?

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Are values backed up by time and money?

What is the relative importance of bottom line results?

- saving face?

- Power building?

Not only understanding the culture will do the work employer should include some basic actions to move

furrowed with their own culture and they are,

Identify the one or two cultural attributes that are most essential for long-term success and focus

attention on them. As progress is made in that area, attention can be turned to other cultural

attributes. This is not to minimize the necessity of being successful in all areas, but a recognition

that employees cannot cope with the stress and confusion of too many changes at one time.

Communicate the vision of the desired culture in all available communication mediums including

the informal channels.

Establish structural enablers of behavior consistent with the desired culture. At the same time

identify and remove barriers that are preventing such behavior from occurring.

Establish structural barriers for behaviors that are associated with the undesirable culture & assess

progress toward the desired culture and refine the above actions.

Focuses of Business Communication

Business Communication encompasses a variety of topics, including

Marketing

Branding

Customer relations

Consumer behavior

Advertising, Public relations

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Corporate communication

Community engagement

Research & Measurement

Reputation management

Interpersonal communication

Employee engagement

Online communication

Event Management

It is closely related to the fields of

Professional communication

Technical communication

Channels of Business Communication

Business is conducted through various channels of communication

the Internet

Print (Publications)

Radio

Television

Ambient media

Outdoor

Word of mouth

Business Communication can also refer to internal communication. A communications director will

typically manage internal communication and craft messages sent to employees. It is vital that internal

communications are managed properly because a poorly crafted or managed message could foster distrust

or hostility from employees.

Methods of Business Communication

There are several methods of business communication, including:

Web-based communication: For better and improved communication, anytime anywhere.

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E-mails: Provide an instantaneous medium of written communication worldwide.

Reports: Important in documenting the activities of any department;

Presentations :Very popular method of communication in all types of organizations, usually

involving audiovisual material, like copies of reports, or material prepared in Microsoft

PowerPoint or Adobe Flash;

Telephoned meetings: Allow for long distance speech;

Forum boards: Allow people to instantly post information at a centralized location; and

Face to face meetings: Personal and should be succeeded by a written follow-up

Decision Making:

Decision making can be regarded as an outcome of mental processes (cognitive process) leading to the

selection of a course of action among several alternatives. Every decision making process produces a final

choice. The output can be an action or an opinion of choice. It might be regarded as a problem solving

activity which is terminated when a satisfactory solution is found. Therefore, decision making is a

reasoning or emotional process which can be rational or irrational, can be based on explicit assumptions

or tacit assumptions.

The organizational decision making process involves proper and efficient implementation of strategic

plans and methods to achieve desired business objective. In organizational decision making process key

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strategic evaluation and planning is crucial. This planning needs to address the overall strategic goals of

the organization but also the end effects that impact workers outside of the decision chain. Organizational

dysfunction and worker resistance can result if proper thought and attention is not directed towards front

line efforts

Cognitive and personal biases

Biases can creep into our decision making processes. Many different people have made a decision about

the same question and then craft potential cognitive interventions aimed at improving decision making

outcomes.

Below is a list of some of the more commonly debated cognitive biases.

Selective search for evidence (a.k.a. Confirmation bias in psychology) (Scott Plous, 1993) -

We tend to be willing to gather facts that support certain conclusions but disregard other facts that

support different conclusions.

Premature termination of search for evidence - We tend to accept the first alternative that

looks like it might work.

Inertia - Unwillingness to change thought patterns that we have used in the past in the face of

new circumstances.

Selective perception - We actively screen-out information that we do not think is important.

Wishful thinking or optimism bias - We tend to want to see things in a positive light and this

can distort our perception and thinking.

Choice-supportive bias occurs when we distort our memories of chosen and rejected options to

make the chosen options seem relatively more attractive.

Recency - We tend to place more attention on more recent information and either ignore or forget

more distant information.

Repetition bias - A willingness to believe what we have been told most often and by the greatest

number of different of sources.

Anchoring and adjustment - Decisions are unduly influenced by initial information that shapes

our view of subsequent information.

Group think - Peer pressure to conform to the opinions held by the group.

Source credibility bias - We reject something if we have a bias against the person, organization,

or group to which the person belongs: We are inclined to accept a statement by someone we like

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Styles and methods of decision making

Styles and methods of decision making were elaborated by the founder of Predispositioning Theory,

Katsenelinboigen. In his book hestates that apart from the methods (reactive and selective) and sub-

methods (randomization, predispositioning, and programming); there are two major styles , positional

and combinational. The two styles reflect two basic approaches to the uncertainty: deterministic

(combinational style) and indeterministic (positional style). Katsenelinboigen’s definition of the two

styles is the following.

The combinational style is characterized by

A very narrow, clearly defined, primarily material goal, and

A program that links the initial position with the final outcome.

The positional style is distinguished by

A positional goal and

A formation of semi-complete linkages between the initial step and final outcome.

The positional style serves to

Create a predisposition to the future development of the position;

Induce the environment in a certain way;

Absorb an unexpected outcome in one’s favor;

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Conflict Handling:

Conflict Defined:

Conflict is a process that begins when one party perceives that another party has negatively affected, or is

about to negatively affects, something that the first party cares about. It might be an ongoing activity

when an interaction crosses over to become an interparty conflict. A clash of interests, values, actions or

directions often sparks a conflict. Conflicts refer to the existence of that clash. Psychologically, a conflict

exists when the reduction of one motivating stimulus involves an increase in another, so that a new

adjustment is demanded.

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Conflict encompasses a wide range of conflicts that people experience in organization.

Incompatibility of goals

Differences over interpretations of facts

Disagreements based on behavioral expectations

A conflict can be

Internal : within oneself

External: between two or more individuals

Transitions in Conflict Thought:

Traditional View of Conflict: The belief that all conflict is harmful and must be avoided. It

causes poor communication, lack of openness and failure to respond to employee needs

Human Relation View of Conflict: The belief that conflict is a natural and inevitable outcome in

any group.

Integrationist View of Conflict: The belief that conflict is not only a positive force in a group

but that is absolutely necessary for a group to perform effectively.

Types of Conflict

Conflict can exist at a variety of levels of analysis:

Task Conflict: Conflict that is considered over content and goals of the work.

Relationship Conflict: Conflict based on interpersonal relationships

Process Conflict: Conflict over how work gets done.

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Conflict Definition

Negative Emotion Positive Feelings

Causes of Conflicts

Conflict also defines as natural disagreement resulting from individuals or groups that differ in beliefs,

attitudes, values or needs. It can also originate from past rivalries and personality differences.

The following factors are the causes of conflict:

Structural Factors (How the conflict is set up)

Authority Relationships (The boss and employees beneath them)

Common Resources (Sharing the same secretary)

Goal Differences (One person wants production to rise and others want communication to rise)

Interdependence (A company as a whole can't operate w/o other departments)

Jurisdictional Ambiguities (Who can discipline whom)

Specialization (The experts in fields)

Status inconsistencies

Need of land, water and food (whole country)

Personal Factors

Communication barriers

Conflict management style

Cultural differences

Emotions

Perception

Personalities

Skills and abilities

Values and Ethics

Conflict resolution

When two or more parties, with perceived incompatible goals, seek to undermine each other's goal-

seeking capability conflict resolution arises.

Assertive

Assertiveness

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Lose-Lose Avoiding

Lose-Win Accomodating

C o m p r o m i s i n g C o m b i n a ti o n o f l o s s & W i n )

Unassertive

Uncooperative Cooperative

Cooperativeness

Dr. Thomas Harries introduced four possible results after arising conflict.

Win-lose: one party forces to win by playing a dominant rule.

Win-win: both parties get what they want.

Lose-win: one party looses to let the other party win.

Lose-lose: both parties don't get what they want.

Five basic ways of addressing conflict were identified by Thomas and Kilman in 1976.

Accommodation : surrender one's own needs and wishes to accommodate the other party.

Avoidance : avoid or postpone conflict by ignoring it or changing the subject. Avoidance can be

useful as a temporary measure to buy time or as an expedient means of dealing with very minor,

non-recurring conflicts.

Collaboration : work together to find a mutually beneficial solution.

Compromise : find a middle ground in which each party is partially satisfied.

Competition : assert one's viewpoint at the potential expense of another. It can be useful when

achieving one's objectives outweighs one's concern for the relationship

Conflict Management

Conflict management is the label for the variety of ways by which people handle grievances—standing up

for what they consider to be right and against what they consider to be wrong. Conflict management is

often considered to be distinct from conflict resolution. In order for actual conflict to occur, there should

be an expression of exclusive patterns, and tell why the conflict was expressed the way it was. Conflict is

not just about simple inaptness, but is often connected to a previous issue. The latter refers to resolving

the dispute to the approval of one or both parties, whereas the former concerns an ongoing process that

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may never have a resolution. Neither is it considered the same as conflict transformation, which seeks to

reframe the positions of the conflict parties.

Conflict management focuses on these factors

Scientific studies

Counseling

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HSBC

ORGANIZATIONAL BEHAVIOR PRACTICES

CULTURE

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Part 3

VISION

Our path must always be guided by integrity, thoughtfulness and creativity. Our solutions, focused on the needs of our clients. Thus we will become the insurer people trust and turn to, the leader the industry looks to.

OUR MISSION

To protect our personal clients, their families and way of life.

To protect our corporate clients, their business and employees.

OUR GOALS

Provide solutions that exceed or meet the needs and aspirations of our clients.

Set the industry standard for service delivery and value creation.

Influence and enhance the development of our industry.

Be valued by our clients, shareholders and staff.

Values:

Responsive

Courageous

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International

Trustworthy

Creative

Courageous

Stand up for what we believe to be right. We accept accountability and take calculated risks. We

encourage others to do the same

Responsive

We listen to our customers and colleagues and build strong relationships based on mutual

respect. We work quickly, thoughtfully and effectively to deliver the best solution. We work

quickly, thoughtfully and effectively.

International

We value our diversity. We share standards and best practice. We work together, as one team

across the organization from the benefit of our customers. We work together building strong

partnerships across the Bank.

Creative

We are innovative and imaginative in working with opportunities and challenges. We

continuously improve the way we work, making it simpler, better and faster.

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Trustworthy

We do what is best for the organization and our customers. We deliver on our promises and work

to high standards. We are reliable, open and honest.

What we stand for:

Strategic intent

The world's Local Bank

Leading the way all over the world.

Values

Responsive

Trustworthy

International

Creative

Courageous

Approach

Participation

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Focusing on attractive, growing markets where we can leverage our relationships and

expertise

Competitive positioning

Combining global capability, deep local knowledge and creativity to outperform our

competitors

Management Discipline

Continuously improving the way we work, balancing the pursuit of growth with firm

control of costs and risks

Commitment to stakeholders

Customers

Passionate about our customers' success, delighting them with the quality of our service

Our People

Helping our people to grow, enabling individuals to make a difference and teams to win

Communities

Trusted and caring, dedicated to making a difference

Investors

A distinctive investment delivering outstanding performance and superior returns

Regulators

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Exemplary governance and ethics wherever we are

Confidentiality of Information: All information received by employees in

respect of the company business, its practices, procedures and clientele should be treated as

strictly confidential. Any disclosure of information to unauthorized persons within or outside the

company will amount to misconduct. Therefore, employees will be required to exercise great

care in handling information.

Loyalty: In HSBC employee shall serve the company exclusively, faithfully and diligently

gives his/her whole time and attention to the business and affairs of the company and observe

and perform all lawful directions whether written or oral that may be given from time to time.

Dedication: Employees in the bank are very dedicated to the bank. Whether during or

outside working hours or whether at the place of work or otherwise the employee shall not

conduct himself/herself in a manner which may or is likely to cause or be calculated to cause loss

or damage to the reputation and or business of the company or it subsidiary or associate of

companies.

Punctuality: Employees have to be very punctual in the bank. They have to come in time

and left the bank. They have to use punch card at the time of entry and exit.

Dress: Employees have to wear formal dress at the time of the work. They must have to use

tie ad shoes. They have to carry id card also.

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Honesty: Employees in the organization will be very honest in nature. Employees shall not

receive any payment or reward whether in money or kind from any customer of the company or

its subsidiary or associate company for the performance of any work or function in relation to the

company or such customer.

No Smoking Zone: Smoking within company premises is strictly prohibited.

Best Service Quality: Work assigned to an employee should be accomplished in the

manner and to the standard required and set out by the company from time to time. Under no

circumstances shall an employee allow his/her work to fall into arrears or below standards. If the

work is in arrears or below standards, the fact must be reported to the Superior officer

immediately. Any employee should not delegate his/her work or any part thereof to any other

employee without the prior consent of the Officer-in-charge of his / her work.

Cleanliness:

i. Employees shall always attend work clean in both person and clothes. Work

places must be kept clean and tidy.

ii. Employees must adhere to all hygienic conditions/requirements set out by the

company at their places of work.

SERVICES

HSBC think services are the parts of their organizational culture.

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PREFERENTIAL SERVICES

Enjoy customized services from a dedicated Relationship Officer who will assist you with your banking requirements through a dedicated service desk and a cash counter

Fast track service for credit applications Dedicated desk at Call Centre Free endorsement of foreign currency against yearly travel quota

DEPOSIT SERVICES

Customized cheque book Specially designed ATM card with enhanced cash withdrawal limit Composite account statement on a quarterly basis

CREDIT FACILITIES

Clean Overdraft Facility up to a maximum limit of BDT 50,000* (Fifty Thousand Taka only) Preferential interest rates and discounts for lending products

INSURANCE COVERAGE

As a Power Vantage customer, you will enjoy free personal accident insurance coverage.

AUTOSWEEP OF FUNDS

You can issue standing instructions to have funds transferred between your current account and savings accounts, enabling you to better manage your funds and obtain a higher rate of interest, free of charge.

STANDING INSTRUCTIONS

You can set up standing instructions of any fixed amount to be paid to selected parties' accounts with HSBC, free of charge.

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HSBC

ORGANIZATIONAL BEHAVIOR PRACTICES

Motivation

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Salary: Salary is the main motivation tool in HSBC. Employees here usually get a very

good salary. All jobs below board level will be graded from 1 to 9 and this will be reviewed

from time to time. Gross salary ranges will be related to each grade and are set out at appendix.

The amounts will be set to maximize net take home pay and will be reviewed individually.

Salary Adjustments: Salary reviews will take place from time to time, at least

annually, but their frequency will be determined by basing on economic conditions and the

capacity of the company to pay. Incremental awards will be based on two components, a general

increase and a merit increase. General increase will be based on alterations made to salary ranges

whereas merit increase will be awarded based on performance and will be recommended as part

of the staff annual appraisal exercise. Promotional increase will be awarded on progress to a post

in a higher salary range.

Incentive: Incentive plays an important role to motivate employees. Employees get

incentive as per their performance. According to target achievement, goal achievement, idea

innovation etc. employees get their incentive. The Bank has different categories to determine

incentive.

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Training: HSBC arrange different types of training for their employees for improving

employee performance.

Belief: Belief is another motivation tool used by the managers of the bank. According to

them belief plays a great role in banking sector. They largely belief their employees and this

thing motivate the employees very much.

Feedback: Feedback session is a quite new concept but very effective in motivating

employee. Managers of the bank gives a separate time for his/her sub ordinates and tell them

about their positives and negatives sides. This shows that managers are careful to the employees.

And by understandings this things employee are also getting motivated.

Extra care: Sometimes managers pay special attention to some employees. The

employees who are a bit different or innovative, giving good performance get the special

attention from the managers. These help the potential employee to do much better in future.

Award: Every year the bank gives some awards to the employees. According to the

performance and annual appraisal report employees get these award. The employee who get

award is greatly honored in the organization. This thing motivated he employees a lot. So they

always try to do best to get award.

Special Event: Every annual report publishing night is a colorful night for all the

employees in the bank. This night they have a great dinner and marvelous cultural events.

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Different departments of the bank occasionally arrange different programs as its necessity.

After successful finishing of every project they arrange a big party to celebrate.

HSBC

ORGANIZATIONAL BEHAVIOR PRACTICES

Leadership

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Leadership is the ability to influence a group toward the achievement of goals.

No universal traits found that predict leadership in all situations.

Unclear evidence of the cause and effect of relationship of leadership and traits.

Better predictor of the appearance of leadership than distinguishing effective and

ineffective leaders.

We try to find out the basic leadership management Of HSBC but there is no exact figure that

can be following in there, but there are some points which Leaders (manager) are followed in

various situations.

Guiding

HSBC is the place where leadership role play very important guiding for the employees. Every

department has their own mangers who leading the way to achieve the company’s goal very

efficiently. The manager provides proper guide to employee how to work will be done.

Order Giving

In HSBC Order giving to subordinate in a very formal way. Managers are very concern about

their subordinate because the in mind of subordinate managers plays a leader’s role so that they

can be motivated by them.

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Participative management: Participative management is a part of leader’s people

oriented behavior. Leaders are more concern with people in this case and make their

subordinates feel free to give their own suggestions. Leaders are more supportive in this

situation.

Task oriented: Though participative management is an important factor within an

organization but tasks are something that you cannot avoid completely. So for leaders, giving

direction to their subordinates is also important. Tasks should be scheduled and the subordinates

are bound to accept the instruction given by the leaders. And it is important for the subordinates

to know that a good leader always follows the rules, regulation, directions which are good for the

organization as well as for the subordinates.

Door of communication: Subordinates should get a chance to communicate with

their leader. In this way they can come up with the dilemmas they are facing and also can get the

instant solution within a short period of time. Door of communication is one of the best ways to

make strong bonding between the leader and the subordinates. It increases the faith, trust, respect

of the subordinates towards the leader.

Having coercive power: Leader should administer punishment for irresponsible

workers. Leaders have the full authority to give punishment in order to make the subordinates

careful on their respective works. Leaders should not misuse this authority because if he/she

misuses it, he/she doesn’t belong to the leader category anymore.

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Appraising: Motivation, persuasion, praising are all included in this category. Leader can

drag his subordinate’s attraction on works through appraising. Rewards, fulfilling demands,

career advancement can make the subordinates more serious to the activities.

Straightforwardness: Not all subordinates are educated inside the organization. So

the leaders should be straightforward to his words. The subordinates can easily catch what the

leader wants to say and take attempts to fulfill it.

Endurance: If the leader is relatively long lasting subordinates will automatically think

that they have to face direction in this way in future. So they won’t take any risk and avoid

works. Because this can hamper their careers. So endurance of a leader is important which we

find in formal organization as a face of command.

Look out for their welfare: A leader should have a trait of charisma. It is a form

of referent power. The subordinates always follow the leader who has charismatic attributes.

This factors influence the followers to be like the leader and also persuade the followers to gain

appreciation as well. This is one of the easiest ways to get all the works done by the

subordinates.

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HSBC

ORGANIZATIONAL BEHAVIOR PRACTICES

Disciplining

Employee

Behavior

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Stress testing: Stress testing and scenario analysis are used to assess the financial and

management capability of the employees to continue operating effectively under extreme but

plausible trading conditions. Such conditions may arise from economic, legal, political,

environmental and social factors.

The Bank has a stress testing framework designed to:

• contribute to the setting and monitoring of risk appetite;

• identify key risks to the Group’s strategy, financial position, and reputation;

• examine the nature and dynamics of the risk profile and assess the impact of stresses on the

group’s profitability and business plans;

• ensure effective governance, processes and systems are in place to co-ordinate and integrate

stress testing;

• inform senior management; and

• ensure adherence to regulatory requirements.

Work shop: Different workshops on different topics are held to teach the employees how

to act in the bank.

Training program: Different training programs are also held to teach the employees.

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Oral Warning: It is hard for a manager to warn the employee because managers love

their employees. But sometimes warnings are necessary. In case of oral warning they follow six

steps:

Step1: Set time and place to ensure privacy.

Step2: Make notes about what needs to be said before the meeting.

Step3: Clearly state those managers are issuing an oral warning about unacceptable behavior. Be

specific in describing the behavior. Give concrete examples that depict the problem the manager

want to fix.

Step4: Remind the employee of acceptable behaviors and company rules.

Step5: State the consequences of non-compliance.

Step6: Note the oral warning on calendar. If the problem persists after a specified amount of

time, issue a written warning.

Written Warning: When oral warning is not work then the managers have to give

written warning. They follow 8 steps to give written warning:

Step1: Clearly state that issuing a written warning. Cite proper personnel policy that supports

this procedure if there is one.

Step2: Describe in detail the performance problem. Give examples stated during the oral warning

along with examples that occurred since that meeting.

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Step3: Outline previous steps taken to correct the behavior such as coaching, performance

appraisals or any other previous disciplinary action.

Step4: Describe the impact of the problem.

Step5: Note employee's explanation for the behavior.

Step6: Reiterate the company's expectations.

Step 7: Refer the employee to the appropriate policy or contract provision to appeal the warning.

Step8: Deliver the letter to employee and place a copy of the letter in their personnel file.

Termination:

Managers sometimes terminates some employees if it is needed. When all the previous steps do

not come to work then they have to do this for the welfare of the bank.

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HSBC

ORGANIZATIONAL BEHAVIOR PRACTICES

Employee

Relation

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Trade Union: There is no external trade union in HSBC.

Labor union: There is no labor union in HSBC,

Team Sports: Team sports help to build employee relation. So HSBC often arranges

some sports among the employees.

Politics: There is no political party in the bank. External politics is strictly prohibited in the

organization. Employees can support a political tem but just personally. It must not any

connection with the organization.

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Part 4

Observation & Recommendation

HSBC is a multinational organization. The major portion of the entire staff strength of the

company will fall under the jurisdiction of the rules and policies. There are some

recommendations against the findings of the analysis are given below.

1. Overtime Payments should be introduced.

2. Every staff should have the opportunity of having loans.

3. The performance appraisal should be on the basis of the employee’s merits, workability

& performance

4. The software that is used to run the business should be more modern & user friendly.

5. Official Transportation system should be introduced.

6. Management should need to concentrate on the claim of the employees.

7. Should increase branches all over the country.

8. Should construct more ATM booths.

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Conclusion

HSBC, being world’s largest bank has proven to be very much careful about their employee motivation.

They have a strong base of activities due to their strong employee dedication. As HSBC is a

corporation that is increasing its business over the country day by day, there are a lot of

employee rules and policies that needs to be set right for the staff. HSBC’s main purpose is to

satisfy its customer. To serve the customer better it is required to achieve its employee’s

satisfaction first. Henceforth, with the recommendations as mentioned in the earlier chapter,

HSBC employee rules and policies may be developed for the benefit for the employees.

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Appendices

http://www.hsbc.com.bd

Different types of Leaflets of HSBC product.

BRANCH OF HSBC

JSTOR

www. hsbc .com

us.hsbc.com

banglapedia.search.com.bd

www.ukbusiness. hsbc .com

www. hsbc usa.com

www. hsbc net.com

www.offshore. hsbc .com

www. hsbc creditcard.com

www. hsbc privatebank.com

www. hsbc committochange.com

www. hsbc direct.com

www. hsbc amanah.com

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en.wikipedia.org/wiki/HSBC

www.assetmanagement. hsbc .com

investing.businessweek.comwww.hsbcnet.com/campusrecruitmenmpusrecruitment

Special Thanks To

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