Over the past decade, human resource (HR) management has evolved into a range of complex responsibilities and strategic activities that are central to creating an organizational culture of success. From the traditional job of identifying and recruiting the best available talent and partnering with managers to retain, develop and motivate people, the HR function has grown to involve working with senior management to suggest and change corporate policies.

Margaret Leung, HSBC general manager, global co-head commercial banking, said that as the head of a business line in the mid and small corporate sector, she played a key role in executing the organization's strategy and improve the bottom line. She said the human resources function must be clearly aligned with the business it supported and should ideally report directly to that business line or be embedded in it.

Today in HSBC, HR occupies a more strategic position, undertaking higher value roles, influencing change and ensuring the organization has the right employment environment. 'As a business line head, I see HR as a strategic internal business partner. HR firmly supports and promotes the group's strategy of 'managing for growth'. It aims to deploy appropriate levels of human capital investment into identified business areas to ensure the group's long-term earnings, profitability and shareholder value,' Ms. Leung said.

In Asia, HSBC top management takes a direct interest in the HR function and considers the management of human capital an important issue. 'Our chief executive officer is actually an HR champion and is directly involved in setting the HR agenda in the organization across the region ,' Ms. Leung said. For example, HR needs to understand and ensure that its remuneration packages fit in with and promote business line objectives. Additionally, there has been a trend that has placed a high degree of responsibility for HR functions on the shoulders of business line managers.

Ms. Leung said this was a positive development as it involved the HR team directly in the planning and development of the business line. HSBC has a diverse number of business lines, each presenting its own needs and specialist characteristics. By integrating key elements of HR with the other responsibilities of line management, the goal is to ensure HR processes are in place to meet specific needs. 'This is not a one size fits all scenario. Our HR functions are appropriate to the business lines and local needs, which help us become the world's local bank,' Ms. Leung said.

Question 3 (30 marks) HSBC is operating in the banking industry, which is characterized as one of the most competitive industries. Discuss the key features of competitive business environment and their implications for human resource management of HSBC?

(around 500 words.