Discuss about the Business Environment Of HSBC Bank Australia.
The aim of the paper is to study the changes in the business environment ushered by globalisation and management of talent in the light of the challenges posed by these changes. The study is conducted taking HSBC Bank Australia as the base. The assignment has been divided into three sections namely, globalisation, technology and demography. The globalisation section delves into the ways to motivate employees keeping globalisation in the backdrop. The second section deals with the challenges posed by globalisation towards MNCS in terms of technology. The third section studies the needs for multinational companies to be culturally intelligent to be able to deal with employees and customers from diverse cultures.
The multinational organisations face the challenge of motivating and maintain employees due to globalisation. Globalisation has allowed the business organisations to expand into new economies. For example, HSBC Bank is based in London, the United Kingdom. The international bank has expanded into many countries including Australia. This foreign expansion of multinational companies has allowed them to get access to new consumer base and employee bases. Australia is a developed market, which provides the multinational bank with skilled employees who contribute towards the high market performance of the bank (Yamao and Sekiguchi 2015). The multinational organisations like HSBC bank motivate and maintain their employees in the following ways:
The multinational companies should establish a strong channel of communication with their employees. The departmental heads should communicate the targets of each employee clearly. They should allow their subordinates employees to take part in decision-making process, which would make them feel responsible towards their duties. The subordinates should be encouraged to express their fears, pressures and insecurities with higher officials. The multinational companies like HSBC Bank operate in several markets in the world like Australia. They have to compete with several other strong competitors to attain and retain their competitive position in the market. This requires them to motivate their employees to achieve high degree of efficiency(Raab, Ambos and Tallman 2014). Transparent communication motivates employees to function more efficiently towards strengthening the market position of the multinational companies. HSBC Australia serves a large number of business and domestic customers. This requires the employees of the bank to be motivated to provide service to these customer base with diverse needs. Thus, it can be inferred that transparent communication among junior and senior employee help the bank to motivate its employees to serve the customers efficiently(Lupton and Beamish 2014).
Globalisation has led to the multinational organisations to empower their employees to take business decisions to take advantage of market opportunities. It has led to the expansion of multinational companies into new host market, which has brought these companies under influence of macro-environmental influences like political, economical and technological factors. The companies today are required to make their decision making process more streamlined to enable them to take advantage of the market opportunities in the host countries as well. Multinational banks like HSBC Bank Australia put emphasis on empowerment of employees to enable them to take prompt business decisions. Empowerment of employees motivates them to get more involved in the operations of the company and serve customers better(Skudiene et al. 2013).
Advancement of new technology has made the multinational companies improve the technical knowledge of their employees, hire staff that are more technical and update their technology on regular basis. The key technology factors driving talent management are as follows:
Advancement in technology has encouraged employees to adopt new gadgets and technology in their professional and personal lives. Globalisation has brought about advancement in new technology which the encourages the multinational companies to make their production facilities more advanced. The multinational companies should encourage their workers to gain knowledge in modern technology and use the same while operating and serving customers. For example, the banking industry is experiencing a very high rate of technical advancement, which has impacted the banking product line as well(Baptista and Oliveira 2015). The banks today offer products like mobile banking, net banking and online fund transfer facilities, which allow customers to bank as per their conveniences. HSBC Bank Australia should encourage its employees to educate themselves in these new technological advancements so that they can encourage the customers to use them and increase the revenue generation of the bank(Hsbc.com.au. 2017).
The multinational companies should hire more talent workers to bring about more technological and innovative improvements in their operations. Globalisation has made the organisations adopt modern technology to upgrade their operations. The multinational companies are present in geographically dispersed locations even within a single host country. They managers posted in these various locations require communicating with each other to take crucial business decisions. For example, the managers of the various branches of HSBC Bank Australia require to hold meetings while making business strategies concerning the Australian market and integrate those plans with their international startegies(Wanyama 2016). This requires the multinational companies to be very strong technically and acquire advanced communication infrastructure like cloud computing and teleconferencing. This requires the multinational companies like HSBC Bank Australia to hire workforce, which have deep knowledge about technology. The multinational banks like HSBC require conducting continuous research and development to improve their digital products and add new features to them. This necessity to continuously improve technologically has necessitated the multinational banks to employ more talent to work in the areas of technology and innovation(Kinyua, Muathe and Kilika 2015).
Technology has emerged as a new form of capital and the companies need to update their technological infrastructure to maintain their competitive position in the local and international market. The multinational banks like HSBC Bank Australia today cater a huge consumer base both domestic and business customers. These companies require holding a large number of data about customers to be able to serve them appropriately. This requirement to hold vast customer data requires them to upgrade their knowledge management system. The multinational companies today need to acquire, share and use a vast body of data with their business partners like management and employees to execute business strategies(Lilly and Juma 2014). The multinational banks like HSBC Australia has to handle a great deal of data which is financial in nature and have to secure them against data threats. These threats to the crucial business data require the banks to install security infrastructure. The banks today collaborate with other companies like debit card making companies and insurance companies to provide their customers with new age banking products like debit cards and insurance products. All these requirements demand the banks to upgrade their technological systems and allocate funds towards these advancements on continuous basis. Thus, it can be inferred from the discussion that globalisation challenge these banks to keep their systems up-to-date on regular basis(Ngugi and Karina 2013).
The multinational companies today require to employ talent from their host countries and serve a customers from diverse cultural background which require them to acquire cultural intelligence. Difference in cultural perception between the managers and their subordinates create communication gap which impedes departmental performances which ultimately impacts the performances of the entire organisations as a whole. Thus difference in culture is a challenge which the multinational organisations have to manage as a result of their expansion into countries with diverse cultures(Daft 2014). The multinational banks like HSBC Australia employ people in their host countries like Australia. The cultural perceptions of the Australians are very different from the cultural perception of the apex management in Britain. This requires the departmental heads to have information about the cultural perception of the Australian people to be able to employ them and retain them. Understanding of multiple cultures helps the managers to create strong communication channels with their subordinates. The subordinates on the other hand feel motivation to work under managers who understand their cultures. Moreover, these multinational banks serve the people of Australia with their products. Their knowledge about the cultures of the people of Australia helps them to offer appropriate banking products. This helps the banks to offer products that are more appropriate and handle the customers’ complaints more effectively. This enables customer satisfaction and the customers keep on banking with HSBBC Australia on regular basis. This yields high revenue from continuous transactions with customers. This also helps the multinational bank to acquire and retain competitive advantage in the Australian market. This discussion shows that the multinational banks like HSBC Bank, Australia require to have cultural intelligence to be able to exploit the talent of Australia. It is requires to be able to understand the needs of the customers in Australia and offer them with appropriate banking solutions(Du Toit 2013).
Conclusion:
The above study shows that globalisation and changes in the modern business world have placed the multinational companies before diverse challenges. The first challenge, which the multinational companies have deal with, is to motivate their employees to over achieve their targets. The second challenge, which these companies have to deal with, is the need to strengthen them technologically and keep on allocating huge funds towards technological advancements. The third challenge, which these companies have to face, is the requirement to be culturally intelligence and have knowledge about diverse cultures.
References:
Baptista, G. and Oliveira, T., 2015. Understanding mobile banking: The unified theory of acceptance and use of technology combined with cultural moderators. Computers in Human Behavior, 50, pp.418-430.
Daft, R.L., 2014. The leadership experience. Cengage Learning.
Du Toit, A.S.A., 2013. Comparative study of competitive intelligence practices between two retail banks in Brazil and South Africa. Journal of Intelligence Studies in Business, 3(2).
Hsbc.com.au. (2017). HSBC Bank Australia – Personal Banking | HSBC Australia. [online] Available at: https://www.hsbc.com.au/1/2/ [Accessed 14 Sep. 2017].
Kinyua, G.M., Muathe, S.M.A. and Kilika, J.M., 2015. Effect of knowledge conversion and knowledge application on performance of commercial banks in Kenya. International Journal of Education and Research, 3(10), pp.431-445.
Lilly, L. and Juma, D., 2014. Influence of Strategic Innovation on Performance of Commercial Banks in Kenya: The Case of Kenya Commercial Bank in Nairobi County. European Journal of Business Management, 2(1), pp.336-341.
Lupton, N. and Beamish, P., 2014. Organizational structure and knowledge-practice diffusion in the MNC. Journal of Knowledge Management, 18(4), pp.710-727.
Ngugi, K. and Karina, B., 2013. Effect of innovation strategy on performance of commercial banks in Kenya. International Journal of Social Sciences and Entrepreneurship, 1(3), pp.158-170.
Raab, K.J., Ambos, B. and Tallman, S., 2014. Strong or invisible hands?–Managerial involvement in the knowledge sharing process of globally dispersed knowledge groups. Journal of World Business, 49(1), pp.32-41.
Skudiene, V., Everhart, D.D., Slepikaite, K. and Reardon, J., 2013. Front-Line Employees’ Recognition And Empowerment Effect On Retail Bank Customers’ Perceived Value. Journal of Service Science (Online), 6(1), p.105.
Wanyama, F.O., 2016. Surviving liberalization: the cooperative movement in Kenya.
Yamao, S. and Sekiguchi, T., 2015. Employee commitment to corporate globalization: The role of English language proficiency and human resource practices. Journal of World Business, 50(1), pp.168-179.
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