HSBC is the famous world's local bank or investment company which headquartered in London. Furthermore, HSBC also consider one of the major bank and financial services organizations on earth and most significant foreign-owned standard bank in Malaysia who offers a complete selection of personal and commercial services from a network of branches and immediate programs. Besides that, HSBC has been offering Islamic financial services in Malaysia since 1994.
Moreover, HSBC having a huge and strong company record which its international network contains and comprises around 8, 000 offices in 87 countries and territories. A couple of located in European countries, the Asia-Pacific region, the Americas, the center East and Africa. By the way, HSBC intend to discovery more new market in different country within the globe currently.
HSBC provides a comprehensive selection of financial services to around 100 million customers in the daily working and providing recommendation or evaluation with their customer when they want to do investment. In enhancements, HSBC always provide money keeping plan which allow customer to save money sensibly and get higher bonus rate if equate to normal bonus rate of saving account in other loan company. HSBC standard bank also providing loan service of purchase vehicles and homes to the customer who lacking of money.
HSBC having four customer groupings and global businesses and there are personal financial services, commercial banking, global bank and market and Private Bank.
In improvements, the HSBC Group has an international pedigree which is exclusive and successful. It is because a lot of its principal companies opened for business over a century ago plus they have an extended background which is abundant with variety and achievement. Those main companies which abundant with achievement help build HSBC's business and long record of HSBC gain a great deal of assurance from a large amount of customers.
Maslow's Needs Hierarchy Theory is a theory which has five different stages needs of an person. There are physiological needs, basic safety needs, belongingness needs, esteem needs and self-actualization. Physiological needs mean that human need food, air and shelter to survive. Safety needs mean that human desire a secure and stable environment and belongingness mean human being need love, devotion and friendship. Additionally, individual need esteem needs for their personal achievements and value from other people. Lastly, individuals desire to attain self-actualization which realize their full potential and achieve higher goal in their life. Company and supervisor of the HSBC loan company always use the Maslow's Needs Hierarchy Theory to motivate their employees and staff. They motivate their employees to work harder to be able to get higher go back and higher position.
Next, the Discovered Needs Theory mean that needs of person can be amplified or suppressed through self-concept, interpersonal norms and previous experience. You can find three types of needs in the idea and there are needs for accomplishment, needs for affiliation and needs for power. In the HSBC bank, staff and staff always figure out how to obtain more ability that adjustments other behavior when they are higher position than others. They discovered this needs by observe other who having higher position. Hence, they'll work harder to get reach their needs and concentrate on.
Expectancy Theory of Desire also becomes one of the tools that supervisor of HSNC standard bank to stimulate their employee. Inside the Expectancy Theory of Desire, it state that people looking to achieve certain end result by placing certain effort and performance. In addition, it does mean that certain level of effort and performance will surely create end result of same level with your time and effort. Because of this, personnel of HSNC loan provider will continue to work harder and devote more effort that can make them get higher go back. Managers also encourage and persuade these to increase the effort in order to increase their salary.
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HSBC keep motivates their workers in order to have successful business. We found that HSBC has executed two types of drive model that happen to be McClelland's theory of needs and Maslow's hierarchy of needs.
HSBC has satisfied employees who desire are for the need of power identified in the McClelland's theory of needs. This need often is perceived as undesirable. Employees with high dependence on power could be more commitment on the job. They are prepared to spend additional time to boost themselves and company. Besides, most individuals need to feel they have responsibility and the energy to affect results by their actions. HSBC gives them the flexibility to choose options and goals at work.
For individuals who are desire for the necessity of accomplishment, HSBC used performance appraisal and pay for performance to track record employee's performance. Employee will get cash bonuses when stated performance goals are reached. Employees with high need for achievements will seek to excel high-risk situation and tend to avoid both low-risk situation. Appraisals are a positive way for a staff to learn how well these are performing the responsibilities given to them which is also a good sign of how an employee must improve in work. Therefore, HSBC will also give employees the challenge of new projects to encourage them.
Moreover, those employees who've high need for affiliation, they tend to conform to the norms of their work group. Remuneration deals also play an important role in motivating employees. But every employee's desires and needs are different and what inspire one worker may vary also. Therefore, HSBC divided salary into several elements including basic pay, payment, bonuses, profit-related pay and show dividends to motivate them. Bonuses can connect to clear focuses on for specific performance and can encourage individual effort. Bonuses also connect to company revenue and promote team goals such as sales, margins, costs and staff punctuality.
Furthermore, HSBC also fulfill the protection needs of employees byproviding pension, medical health insurance, life insurance coverage, and healthcare plans to motivate employees. Some employees appreciate these much. Employees have the chance to get involved on-site health screenings for diabetes, blood pressure and cholesterol free of charge every year. Employees who've fulfilled basic safety needs, they will have a tendency to feel free from the threat of physical and psychological harm. This will likely improve employees' performance in their work. Besides, HSBC also provided company cars for certain employees and offering staff discount on company product or services such as free interest loan.
HSBC recognize that chance to attain ambitions is a significant drive. Hence, HSBC stimulate employees by giving them acknowledgement such as promote these to an increased level. Furthermore, HSBC will also encourage employee by fulfilling them money or increase salary. Manager will compliment or criticism employees to let them know when they are doing well and when they are doing badly. The goal of accomplishing this is to boost employee's performance, help them to study from experience, build employee's desire and self-esteem.
In addition, HSBC offers Sharesave to the employees. HSBC give chance for employee to acquire stocks of HSBC Holdings stock at a 20 percent discount without brokerage fees or commissions. Employees contribute through payroll deductions on the three or five time contract period. They may have the possibility to use all or part of the cost savings plus interest to buy shares at the recently fixed discount price. If the worthiness of the stock declines, they can withdraw all of their cost savings plus interest. This Sharesave will motivate employees to improve best interest of the company because they're also the shareholder of the business. They will maximize stock price of the company so that the price will go above the opinion's price level.
Besides, HSBC provided time off program to employees with a bank of paid days off to use as they wish. HSBC also provided company-paid getaways each year for employees. Employees who want to observe other holiday seasons may do so by utilizing their time off program times. Furthermore, HSBC also offer retirement and savings program for employees to be able to form a partnership between the company and employee. To support that partnership, HSBC offers employees two ways to create for his or her future which can be tax decrease investment plan and trust as well as old age income plan and trust. Duty lowering investment plan and trust supplies the convenience of payroll deductions, duty advantages and diverse investment opportunities. While the pension income plan and trust is the company contributes money to a old age account for each eligible employee at no charge to the employee.
Lastly, HSBC also provided product owner discounts to stimulate employees. Employee can take advantage of discount rates and special marketing promotions offered by countrywide and local merchants, including personal savings on furniture, jewelry, call phone plans, travel programs and trips, as well as health club memberships.
Pros and cons
McClelland's theory of needs
The theory of needs are made up three types of discovered learns. You can find need for achievements, need for affiliation and dependence on power. McClelland argued that three of the learned needs can be strengthened through training. It's the advantage to the business to use this theory in the business for motivation their employees. It is because the business can take action to strengthen their employees' needs and increase the effect of the inspiration. Therefore, the employees will work harder for the business. At last, it is gain to the business in term of performance.
On the other palm, the idea of needs has disadvantage as well. Every person may has own needs toward the energy, success and affiliation. For the examples, some people may have all of the needs; some people may only want to take pleasure from their work and do not have advanced of needs. It is quite hard to the company to look for the needs of every employee. Therefore, the company may give the incorrect pay back to the employee. In order that, it might not have the maximum aftereffect of the motivation or even not motivate by any means.
Maslow's hierarchy of needs
The Maslow's hierarchy of needs are made up five stages which is Physiological, basic safety, belongingness, esteem, and personal actualization. It is useful for the company in motivate their workers. For the reason that the hierarchy of needs is more humanistic and relevant to apply on real human. The hierarchy of needs do not merely point out on instinct of men and women but also stated that sociable dynamics can influence people needs. Therefore, the business can try and fulfil employees' lower needs in order to stimulate them to reach the potential of the employees. For the example, the company provides insurance to their employees for satisfied their protection needs, so that the employees can go further stage.
On the other side, the Maslow's hierarchy of needs has down sides as well. First of all, the hierarchy of needs do not included need of know and need of beauty. This two of needs are very important as well because some individuals especially ladies are incredibly matter on beauty. Therefore, they could not follow or fit to the Maslow's hierarchy of needs. It really is one of the drawbacks. Besides, every individuals may have their own hierarchy of needs which is not similar like the Maslow's one. Some people may look for higher needs even through the low one have not fulfilled. Therefore, it is quite difficult for the company to obtain a prize system which fulfils all employees' needs.
Potential problem
There are some potential problems for the company. Firstly, the company could face failure for their incentive system. It is because every specific may have a unique needs hierarchy since it is strongly influence by their value. In order that, those people might not follow the flow in the Maslow's hierarchy. For the example, those individuals have electricity and achievement near the top of their value system; they may focus on position needs. Therefore, it may not applicable to all or any the employees in the company.
Besides, employees may over rely upon the reward. This means that the employees will on work hard when compensation is given. It really is an issue to the business because employees won't work hard for the company if pay back is not given. Therefore, the company has to encourage constantly to be able to get better performance from their employees. It could improve the total cost of the business. When the business having financial problem and unable to give incentive, the employees may exit and become a member of other company even the competitors. As a result, the company loses their experience employees.
Lastly, employees may feel stress because they think that reward is add up to responsibility. Some people only want to enjoy their job however, not looking for promotion. If the business promote those to high position, they could feel stress and uncomfortable, working performance will drop as well. It is some sort of demotivation for those employees. As a result, they quit the business to change their working environment.
