A qualitative Analysis of Recruitment Requirements for Management Trainees of Banks in Hong Kong
Level 6 Business Research & Project
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Abstract
Human Resource managers are concerned with appropriate staffing and staff management in their organizations. This involves identifying, hiring, training and placement of suitable workers. In Hong Kong, banks hire management trainees annually. This project is a qualitative study of the recruitment requirements for management trainees of banks in Hong Kong, China. It aims at suggesting criteria for recruitment of management trainees by learning the general requirements for banks in Hong Kong in comparison with Barclays and Standard Chartered Banks, multinational banks. This project was largely based on qualitative methods of interviews and questionnaires for bank HR managers and management trainees respectively. Much of the information required was also sourced from the Banks’ websites and various media postings. The primary and secondary data collected was subjected to qualitative analysis by comparison with respect to the study objectives. The findings indicated nearly uniform requirements across all the banks. These included: fresh graduates/postgraduates, 0-2 years working experience, language proficiency and particular personal and interpersonal attributes and skills. Minor differences were noted in experience and legal requirements as well as in the nature of training programs. Most of the management trainees were satisfied with the training programs they underwent in their respective banks. From these findings, the study concluded that the management training program was a suitable means of direct grooming of young, energetic and innovative managers not only for banks, but also for other organizations.
Keywords: Human Resource Managers, Management Trainees, Recruitment Requirements, Qualitative analysis, Primary and secondary Data, Fresh Graduates, Working Experience.
Acknowledgements:
Firstly, I would like to take this opportunity say thank you to my supervisor, Mr. CY Leung, who provided me with high quality guidance in the process of my project.
Next, I would like to show my sincere gratitude to my parents for their moral support, mentorship and inspiration all through this project and my education, in general.
Furthermore, I would like to acknowledge all my friends who gave me a lot of suggestion on my topic selection, grammar check and software support in my research programme.
Finally, I sincerely thank the Management, staff and graduate trainees of the banks that which provided the basis for this study namely, HSBC, HangSeng, BOC, Barclays Bank and the Standard Chartered Bank.
Table of Contents
1.2. Project Aims and Objectives. 3
Chapter 2: Literature Review.. 4
2.1.2 Definition of Human Resource Management (HRM) 5
2.1.3 Recruitment and Selection. 6
2.2.1Recruitment and Selection of State-Run Commercial Banks under New Economic Condition 7
2.2.2 Recruitment Process of the State-Run Commercial Banks. 8
2.2.3 Foreign Banks Recruitment Surgery. 8
2.3 Foreign banks recruitment requirements and interview process. 10
2.3.3 Standard Charted Bank. 11
2.3.5 Bank of China, Singapore. 12
3.0 Overview.. 13
3.2.1 Quantitative Research. 16
3.2.2 Qualitative Research. 16
3.3.3 Literature Search and Analysis. 21
3.5.1 Quantitative Data Analysis. 25
3.5.2 Qualitative Data Analysis. 25
3.8 Ethical Considerations. 27
Chapter 4: Results and Data Analysis. 28
4.1.1 Recruitment Requirements for Management Trainees by HSBC.. 28
4.1.2 Requirements for Management Trainees by HangSeng Bank. 28
4.1.3 Requirements for Management Trainees by the BOC.. 29
4.1.4 Requirements for Management Trainees by Barclays Bank, Kenya. 29
4.1.2 Requirements for Management Trainees by Standard Chartered, Singapore. 30
4.2 Qualitative Data Analysis and Discussion. 31
4.2.1General Recruitment Requirements for Bank Management Trainees. 31
4.2.2 Similarities in Recruitment Requirements among HSBC, Hangseng and BOC.. 31
4.2.3 Differences in Recruitment Requirements among HSBC, Hangseng and BOC.. 32
4.2.4 Comparison with Barclays and Standard Chartered Banks. 32
4.3 Quantitative Data Analysis and Discussion. 33
Chapter 5: Conclusions and Recommendations. 33
5.2 Theoretical Implications. 34
Chapter 6: Self Reflection and Development 35
6.1 Time Management and Allocation. 35
Appendix I: Interview Questions for Bank HR Managers. 40
Chapter 1: Introduction
1.0 Overview
This chapter is going to give a brief introduction of the project. The project is a qualitative study of the recruitment requirements for management trainees of banks in Hong Kong, China. In Hong Kong, banks hire management trainees annually, who they intend to nurture directly into management positions in their respective banks (). In this project, I seek to investigate the specific factors that human resource managers in these banks are looking for in an attempt to identify candidates with “strong qualities and potentials” for managerial functions in the banking industry. I will focus specifically on the banks which hire management trainee in Hong Kong, namely Hong Kong and Shanghai Banking Corporation Limited (HSBC), HangSeng (HS) Bank and the Bank of China (BOC).
1.1 Background Information
Human resources managers are first concerned with appropriate staffing of their businesses in order to draw the requisite human resources. This is achieved by proper design of organisational structures and identification of the kinds of contracts under which various groups of employees work (). This is done prior to the recruitment, selection and development of candidates to fill the available opening. They must identify be the right people relevantly skilled with respect to the services of the organization (). In the recent past, globalization has rapidly revitalized the banking industry by opening up the sector to the international market. As a result, there is an urgent need for human resource managers to effectively keep up to the competition in the employment market by recruiting the best, affordable workforce that is available ().
This project will be particularly useful to the human resource managers in these banks. We know that human resource management, in an organization, focuses on recruitment, management of, and direction of the workers of an organization. This function can be executed by line managers, in some organizations (). Another important function of human resources management is hiring of new employees. When conducted effectively, HR Management would enhance employees’ be effectiveness and productivity to the general company direction. This is necessary for an organization to accomplish its goals and objectives (). For this reason, I think this project area is important. It also relates to my profession in view of my need to learn in preparation for future employment ().
In the banking sector, recruitment requirements for management trainees vary from bank to bank. However, generally, they are interested in candidates with specific skills and educational qualifications suitable for future bank management (). By a careful observation and consideration of these similarities and differences, this project will seek to find out which factors are more suitable for the conditions of each bank’s recruitment with respect to cultivating the ability of the manager to make outstanding contributions to future development of their banks. By this, other banks may be able to draw important lessons on the particular factors they should consider and the qualities they should look for as they seek to recruit management trainees for their banks.
Every year, many students graduate graduates from colleges and universities, across the world, and are released into the job market. Hong Kong, being an international metropolis, is no exception (). These graduates are qualifies in diverse disciplines and look forward to getting into gainful employment. Every year, banks in Hong Kong provide several job openings to these graduates. One of the key positions that are commonly offered by these banks, today, is that of management trainees (). It is therefore important the crucial criteria followed by banks in hiring the best management trainees from the great pool of fresh graduates. It is believed, by comparison of recruitment criteria between local banks and overseas banks, that some good practices can be summarized in this project.
1.2. Project Aims and Objectives
1.2.1 Project aim
This project aims at understanding the requirements for recruiting management trainees for banks in Hong Kong; explore the similarities and differences between these banks, locally and internationally, with banks in other countries. It is hoped that the analysis may suggest a possible criteria for recruiting the right candidates for future bank management.
1.2.2 Research questions
In order to meet the project aim, the question, “What criteria would be crucial for banks to hire good management trainees?” is put forward as a guiding framework for the entire project.
1.2.3 Project objectives
- To study the general recruitment requirements for management trainees of banks.
- To identify the recruitment requirements for management trainees of banks in Hong Kong.
- To compare the recruitment requirements for management trainees across local banks and banks in other countries.
- To suggest criteria for recruiting effective management trainees.
Chapter 2: Literature Review
2.0 Introduction
This chapter aims to provide definitions, themes, concepts and debate relevant to my study. The literature review focuses on the history and trends of recruitment and selection in banks, similar researches in recruitment and selection in banks, and the correlations of recruitment and selection criteria to actual staff performance.
2.1Concepts
2.1.1 Management Trainee
Management training refers to a special reserve program conducted by organizations to train independent enterprise senior management personnel. The training focuses on perfecting talents and equipping the trainees with necessary management theory and experience (). The trainees are expected to have an overall understanding of operations of the entire organization. For this reason, the program cuts across all the departments of the organization with regards to candidates specialty arrangements (). Finally, after undergoing successful management training, the management trainees can become competent department or branch heads in an organization. In most banks, management training programs target fresh college/university education ().
The Management training program has the fundamental purpose training fresh candidates for future enterprise management. As a result, at the beginning of every training project, the recruits for management training are arranged inside the organization and trained on such areas as inter-departmental relations, leadership, and corporate culture (). This is aimed at getting the future leaders thoroughly experienced on all aspects of organizational challenges likely to face them in their future management function. In order to let the management trainees get enough exercise, they are engaged in the day-to-day operations of the company that adequately prepare them to become the company’s top managers in the future ().
2.1.2 Definition of Human Resource Management (HRM)
The term “human resource management” is not easy to define. We often hear the term Human Resource Management, Employee Relations and Personnel Management used in the popular press as well as by Industry experts (). The process of defining HRM leads us to two different definitions. The first definition of HRM is that it is the process of managing people in organizations in a structured and thorough manner. This covers the fields of staffing (hiring people), retention of people, pay and perks setting and management, performance management, change management and taking care of exits from the company to round off the activities. This is the traditional definition of HRM which leads some experts to define it as a modern version of the Personnel Management function that was used earlier ().The second definition of HRM encompasses the management of people in organizations from a macro perspective i.e. managing people in the form of a collective relationship between management and employees. This approach focuses on the objectives and outcomes of the HRM function. What this means is that the HR function in contemporary organizations is concerned with the notions of people enabling, people development and a focus on making the “employment relationship” fulfilling for both the management and employees (). These definitions emphasize the difference between Personnel Management as defined in the second paragraph and human resource management as described in the third paragraph. To put it in one sentence, personnel management is essentially “workforce” centered whereas human resource management is “resource” centered. The key difference is HRM in recent times is about fulfilling management objectives of providing and deploying people and a greater emphasis on planning, monitoring and control ().
2.1.3 Recruitment and Selection
Recruitment “includes those practices and activities carried out by the organization with the primary purpose of identifying and attracting potential employees” (Breaugh and Starke, 2000, p. 45). There is always a need for replacement of employees and those with new skills that business growth or change make necessary. The various stages of the selection process provide information for decisions by both the employer and the potential employee. While employment decisions have long been regarded as a management prerogative, it is acknowledged that selection is increasingly being viewed as a two-way or ‘social’ process. Lievens et al. (2002) suggest that labor market shortages have promoted a concern for the organization’s image and the treatment of applicants during the recruitment and selection process. Selection criteria need to be explicitly defined in order to choose the most appropriate selection procedure and approach, make credible selection decisions and validate the selection process. Selection criteria are typically presented in the form of a person specification representing the ideal candidate, and cover such area as skills, experience, qualifications, education, personal attributes, special attributes, interests and motivation (IRS, 2003).
2.2 Related studies
2.2.1Recruitment and Selection of State-Run Commercial Banks under New Economic Condition
The term “new economy” first appeared in the United States, “Business Week” in a group of articles, published on December 30, 1996. The “new economy” is built in the revolution in information technology and system innovation based on sustained economic growth with low inflation, low unemployment co-exist, a new economic phenomenon significantly dilute phase characteristics of the economic cycle (). The new economic era is a knowledge-based economy era, as opposed to the traditional economy; it requires a new economy in the secondary of the high-tech industry as a fulcrum to information networks, innovative ideas, through the rational allocation of human resources distribution, achieve sustainable economic development. The new economy is a new economic form, knowledge of human resources, which means that human resources are the main body of the new economy ().
2.2.2 Recruitment Process of the State-Run Commercial Banks
State-owned commercial banks are wholly state-owned commercial banks, which are characterized in all capital investment by the state, are state-owned financial enterprises (). China’s five major banks are Bank of China, Agricultural Bank of China, Industrial and Commercial Bank of China, China Construction Bank, Bank of Communications, also known as the central five-line, which represents the most powerful financial capital strength ().State-owned commercial bank recruitment process can generally be divided into seven parts: the preparatory work, publicity and receipt of a resume, qualification examination, written tests, interviews, entry examination and employment contracting().
2.2.3 Foreign Banks Recruitment Surgery
Standard Chartered Bank’s president of China, Zeng Wangjing Xuan has revealed that the Standard Chartered Bank in China recruited about 1,000 employees last year. This represents a 60% increase in employment compared to the previous year and 90% of these employees are from the local community ().Standard Chartered Bank’s local enlargement project is just the tip of the iceberg of the entire foreign bank staff localization. A number of foreign banks, including Standard Chartered Bank, Citibank, HSBC, East Asia, with the expansion of local business, started a recruitment campaign in Chin. It is reported that HSBC has been practiced in China for 35 business outlets this year and plans to add 30 this year will recruit 1,000 new employees to support business expansion plans mainland should the number of employees increased by 25%, up to about 5000 people. In addition, the Bank of East Asia this year will add 500 employees (). “With the liberalization of national policy, the business of foreign banks and outlets will continue to increase, which will lead to foreign banks big recruit local talent” (page number). At DBS Bank Beijing Branch, their main goal is experienced in capital banking elite, does not rule out some of the existing backbone of the foreign banks, as well as a small part of the well-known financial institutions graduating outstanding student ().“The internal training of future leaders” has become the way of human resources of foreign banks attracting talent in one direction. Standard Chartered Bank, president of China said: “talent on one hand, we introduce leaders from the Group in order to enhance the competitiveness of business in China; On the other hand, we are committed to develop their own leadership over the past two years, Job in China for more than 80 management trainees, as they regularly carry out training, arrange a bank internal rotation, helping them to a deeper understanding of the banking business, I believe that these young people will be the future leaders of Standard Chartered. In fact, Standard Chartered senior staff inside, there are already a number of local employees” (page number). The HSBC bankers plan rigorous selection among college students, after 2 to 5 years of training and on-the-job exercise, eventually becoming the bank’s business, and management backbone. The data show that HSBC has more than 15 years of Chinese bankers training programs in China, will be a significant growth in the number of plans to hire this year (). The actual number of recruits which just started in 1991 has increased about 50 times. Banker training programs are also launched every year to recruit the best graduates from colleges and universities nationwide. Through layers of screening and examination, graduates to join “bankers training programs” will get 18 months of professional training ().
2.3 Foreign banks recruitment requirements and interview process
2.3.1Job vacancy
Foreign Banks recruitment almost covers all the business departments including customer service, credit card department, finance department, credit department as well as risk management. One of the biggest demands is Wealth management and risk management class (Anderson & Karsen, 2012). General foreign Banks in the graduates can recruit two positions: Banker Trainee and Management Trainee. Comparison pay attention to the former bank, finance, trade, management, and sales aspects of knowledge, to cultivate excellent comprehensive strength bankers; the latter is to cultivate a departmental manager (Anderson, 1989).
2.3.2 HSBC
The Hong Kong and Shanghai Banking Corporation Limited (HSBC) was established in 1865 in Hong Kong and Shanghai. HSBC is the largest locally incorporated bank in the Hong Kong Special Administrative Region and the three note-issuing banks. The line, which belongs to the HSBC Group, is one of the world’s largest banking and financial services organizations. It has a total of nine branches in mainland China, more than 700 employees with more than 92% in local recruitment in the country. Its localization has been the policy line representatives. In May 2000, HSBC was formally established in Shanghai Pudong HSBC general representative office in China (HSBC Ltd, 2013). Their requirements for management training recruitment include a Masters Degree or Bachelors Degree with 2-year working experience. For those high potential undergraduates without any working experience, HSBC offers a 3-year tailor-made program where one joins the bank at a junior level. The recruits undergo two years of training whose requirements are not so demanding with the undergraduates and professionals being less restricted. HSBC interviews cover a total of 30 minutes, 25 minutes in English and 5 minutes in Chinese. The interviewer is concerned with the candidates’ soft skills and their ability to deal with problems and organize language (HSBC Ltd, 2013).
2.3.3 Standard Charted Bank
Standard Chartered has 500 branches all over the world in more than 50 countries and employs more than 28,000 people. Standard Chartered has 143 years of history and repute in Hong Kong. The Bank has a Management Trainee Programme for university graduates which comprises a two years of training, the first year without doing any work. The recruits are engaged in an International’s orientation week, followed by six weeks of Class training (in Singapore or Hong Kong), and then six months of Internship (in foreign countries), and then six weeks Class Training (Singapore or Hong Kong) and the last three months as Interns in foreign countries (Standard Chartered Bank, 2013).
After one year of training, allocation of work begins according to the performance and personal interest in the dispatch department. Their recruitment interviews last 30 minutes preceded by hardly any preparations. The candidate is required to introduce him/herself in English stating their strengths and career goals before talking about the views of the Global Market (Standard Chartered Bank, 2013).
2.3.4 HangSeng
HangSeng, founded in 1933, is a focus for business in Hong Kong and the Mainland commercial banks as one of the main members of the HSBC group. Hang Seng Bank management trainee programme includes 12 months of training in Hong Kong and 2-3 years of on-the-job training (Hong Kong or the mainland).The interviews are not so special, first pumping a topic you do three minutes of presentation followed by a discussion for a moment after which the candidate is asked questions about his/her resume and professional issues. The interview last a total of about 30 minutes. (HangSeng Bank, China, 2013).
2.3.5 Bank of China, Singapore
The Bank of China, Singapore Branch is looking for young talents to contribute to its business growth. The bank is interested in intelligent, committed, dynamic and fresh graduates with positive learning attitude and mindset to develop career. They offer vacancies in the following areas:
Corporate and Commercial Banking
This division supports multi-national companies (MNCs) and small and medium-sized enterprises (SMEs) with an extensive range of financial services, including commercial loans and trade finance products. It gives the candidates opportunities to drive strategic projects and develop total banking relationships with a great variety of MNCs and SMEs customers. Management trainees in this department are responsible for functions like: relationship management, trade financing as well as risk management (Bank of China, 2012).
Retail Banking
This division supports a wide range of personal financial needs, including credit cards, wealth planning, mortgages, deposits and transactional services. Candidates will learn the full spectrum of the Retail Banking business knowledge and explore career opportunities in branch operations and other areas of Personal Banking. Their core functions include customer management and sales and marketing (Bank of China, 2012).
Operations & Processing
This division supports banking operations and transaction processing. In the face of keen competition in the market and the rising expectations of customers, the bank operations team’s competitive edge is moving beyond a service role to becoming a proactive service partner to its business teams. Candidates, here, learn all about the procedures, systems and processes that underpin the successful running of a thriving bank. Their core functions include: banking operation, credit administration, treasury settlements operations and trade service (Bank of China, 2012).
Chapter 3: Methodology
Overview
This chapter aims to provide a detailed highlight of the materials and methods that were employed to conduct this study. It will focus on the selection of appropriate samples for the study, research philosophy, research design, research methods, data collection (both primary and secondary), data analysis, research criteria and resource requirements. Ethical considerations involved in the research as well as research design limitations will also be highlighted in this chapter.
3.1 Research Philosophy
Philosophy, in this research, refers to the systematic development of a background, knowledge and the nature of research in this topic (Flowers, 2009). It also brings in a rich perspective of research paradigm in the way in its broad framework of perceptions, theories, beliefs and understanding of the various parameters involved in recruitment of management trainees for Chinese as well as International Banks in China (Schindler & Cooper, 2006). The study also involved a systematic procedure of analyzing the required aspects that further give it a great sense of research philosophy. In particular, this research focused on three aspects of research philosophy namely, positivism, interpretivism and realism.
3.1.1 Positivism
Positivism is a research philosophical approach whereby scientists make use of objectivity, rather than subjectivity, to present their points of view in the evaluation of the social world (Cohen & Morrison, 2007). Based on this paradigm, this research sought to collate general data/information out of a large social sample rather than focusing on a particular small detailed area. Observations and findings from the survey were largely used, over mere scientific principles and beliefs, to draw conclusions and recommendations from the few banks which offer graduate management training in Hong Kong, china.
3.1.2 Interpretivism
Management researchers refer to Interpretivism as a social constructionist philosophical approach to research (Schindler & Cooper, 2006). In this respect, this study sought to give the due significance to any existing scientific principles and beliefs as a means of justifying the need to understand the various dynamics of bank management trainees in China and the world at large (Flowers, 2009). This specific business situation was analyzed in great detail, from the 3 selected Chinese banks that offer graduate management training, on behalf of all other banks. The results from the small sample were analyzed in so much detail that the conclusions and recommendations arrived at can apply across the banking sector.
3.1.3 Realism
This research philosophy was also widely applied in this study. The study concentrated much on already existing knowledge, reality and beliefs about management training for graduates in China. Both the two aspects of realism were applied. Firstly, direct realism was exhibited by taking into account what was seen, felt and observed from the selected banks concerning graduate management training. On the other hand, critical reality took the form of considering arguments raised by various stakeholders as well as our own arguments on observed facts (Flowers, 2009).
3.2 Research Methods
This section summarizes the exact developments that transpired in this project in an attempt to understand the issues surrounding recruitment of management trainees by banks in Hong Kong. It aims at putting these developments in context both scientifically and technically. This project involved both quantitative as well as qualitative research methods which are extensively highlighted in this section.
3.2.1 Quantitative Research
Although this research is highly based on qualitative research methods, a small extent of quantitative research techniques was still involved. Quantitative research refers to inquiries which attempt to test theories by means of numerical measurements and statistical analyses. Such numerical measurements and statistical analyses are aimed at determining the level of truth in theories, laws and generalizations (Creswell, 1994). There are a number of quantitative research methods that have since been put up by research experts for use in research activities. The choice for a particular method often depends largely on the topic of research and partly on other factors such as resources available, skills or training available to researchers and the type of target audience. The methods available include: experiments, quasi experiments and surveys (Saunders, Lewis & Thornhill, 2007).
In the case of this project, we sought to study the recruitment of management trainees by banks in Hong Kong. The only quantitative methods that proved relevant for the study were the questionnaire and the interview modes of survey. These methods are described in the preceding sections and details outlined showing how they were employed to meet the objectives of this project.
3.2.2 Qualitative Research
As already stated earlier, this project is a qualitative study of the recruitment requirements for management trainees by banks in Hong Kong, China. According to research experts, qualitative research methodologies aim at providing insight into some social issues or human problems from a wide range of perspectives. Qualitative inquiries are often carried out in natural settings and entail careful building of some complex and detailed insight into a particular phenomenon under study. Qin addition, qualitative research methods recognize the existence of multiple realities and perspectives of a given phenomenon with respect to the respondents involved in the study in question (Mason, 1996).
It is important to note that a number of qualitative research methods were available for us to choose from while conducting this study. These include: case studies, Ethnographic studies and phenomenological studies (Shaughnessy & Krogman, 2012). However, based on the nature of this study, case studies were found to be of particular importance and were therefore utilized. In particular, we conducted case studies of three banks in China that offer graduate management trainee positions to fresh graduates in Hong Kong. The information received from these case studies were then used to draw general and inclusive conclusions on the factors banks are looking for in order to recruit fresh graduates into management training positions.
3.3 Research Design
The research questions in this paper are investigated and analyzed mainly by means of interviews, questionnaires and analysis of existing materials and literature posted in the media as well as the websites of the banks under study with regards to recruitment of graduate trainees (Creswell, 1994). Before we embarked on data collection, it was necessary for us to have a logical organization of the methods that would be applied in actual data collection as well as data analysis. In this section, we provide insight onto how the research project was designed and organized in order to ensure systematic and significant data collection, data capture and data analysis. The primary qualitative methods applied in this research are put into perspective in this section.
It is important for a project to have a clear design/structure before actual data collection is started. Research experts agree that a research design helps the researcher to ensure that the outlined objective and research questions for his/her project are answered without ambiguity (Creswell, 1994). It is also at this stage that the type of data to be collected or the kind of evidence required to answer the research questions are defined. In our case, we were interested in identifying the various factors that banks looked for in recruiting graduates for management training programs. The specific kind of evidence needed to answer this question is information on graduate trainee job advertisements posted by various banks on their websites and on the media or from the management of the banks in question.
3.3.1 Interviews
Focused group interviews were carried out for the three selected banks under study in this project. The interviews focused on human resource managers of these banks with an aim of finding their responses on the particular requirements their banks demand from candidates in order for management trainee positions offered by their banks. This was done with respect to the first objective of this study which seeks to understand the general requirements for recruitment of management trainees by banks. It also helped respond to the second objective of this study which focuses on the recruitment requirements for the three selected banks which offer management trainee positions in Hong Kong. These banks include: Hong Kong and Shanghai Banking Corporation Limited (HSBC), HangSeng and the Bank of China (BOC).
In order to initiate the interviews with these banks, it was necessary for us to seek formal consent of the bank towards the same. As a result, we wrote official letters to each of the banks seeking official appointments with their human resources managers. The letters were written through our school, Teesside University business school with details of this research project and what we seek to achieve by interviewing human resource managers at their banks. The letters were sent to these banks three months prior to the intended dates of interview to allow the banks’ managements enough time to make necessary arrangements or adjustments towards the same. After receiving formal consent from the banks, which came way beyond one month prior to the dates for interviews, we sent back a formal notification with particular questions that we would like them to address during the interview (outlined in the appendix section).
The use of interviews, as a method of survey, in this project was found particularly very significant and appropriate based on the qualitative kind of information we sought from the banks. Firstly, we preferred the use of face-to-face interviews due to the high response rates that result from them as compared to other methods which are prone to being ignored by respondents (Creswell, 1994). Secondly, we preferred the use of interviews due to the fact that they would allow us to questions at multiple levels with an aim of getting a wide range of information from our respondents (Saunders, Lewis & Thornhill, 2007). The interviews brought together both structured as well as unstructured questions in order to enhance richness and depth of information received from our respondents. This would help us get data that could be easily comparable to that obtained from the other banks in question (Mason, 1996).
Apart from the face-to-face interviews conducted for HSBC, HangSeng Bank and BOC, telephone interviews were also employed to gather similar information from two other international banks operating in other countries. This is in line with the third of objective of this study which seeks to compare the requirements for recruitment of management trainees in Hong Kong based banks with banks in other countries. We particularly focused on Standard Chartered Banks and Barclays Bank which operate in various countries in the international market. However, it is important to note that the telephone interviews were generally shorter, hardly 20 minutes and were aimed just at authenticating information obtained from other sources such as the media on these banks.
3.3.2 Questionnaires
Due to the widely qualitative nature of our study, questionnaires were not used extensively for data collection in this project. The only areas from which we decided to use questionnaires to seek information were on the management trainees who have been recruited for management training by the banks under study. As such, the data obtained from the questionnaires were primarily qualitative despite some little quantitative aspects that would be obtained from the same. The questionnaires were simplified to seek information highlighting the various recruitment processes that the management trainees underwent and well as the specific requirements that were expected from them in their recruitment exercise. Their experiences as management trainees in these banks would also be important in assessing the success of the programmes for grooming future bank managers and for comparing such experiences with those from other banks.
The questionnaires focused on at least three current management trainees from each of the banks. The method was selected for use on management trainees partly because it would be simple to use over the large number of management trainees across the banks than say, conducting interviews among them (Easterby-Smith, Thorpe & Jackson, 2008). However, this was not the primary reason we sought to employ the method. The major reason we chose to use questionnaires is the fact they gather responses in a highly standardized manner. This makes questionnaires more objective as compared to other methods of data collection. They also collect information from a wide range of respondents in a relatively shorter time thus making the data collection process quicker and simpler. Due to their objectivity and simplicity to prepare, the questionnaire was a very significant tool in this project (Mason, 1996).
3.3.3 Literature Search and Analysis
Apart from the use of Questionnaies and Interviews in this study, the method of literature search and analysis was also used as an important source of the much needed qualitative information on this project. Due to advancement in technology and the wide usage of the media and the internet for communication, we noted that most of this information we sought would be easily available particularly on the websites of the banks in question. We therefore made use of such information as well as advertisements for management training programs which are often posted on the websites, meaning that by visiting the website of each of the banks under study, we were able to obtain information on the processes and requirements for management training programmes.
3.4 Data Collection
One of the most vital aspects of research work is data. Despite the fact that research carried out in various disciplines may differ in other aspects such as methodology and design, every piece of research is based on some data which is collected, analyzed and interpretations drawn from the analysis with respect to the objectives of the study and the research questions (Creswell, 1994). This section seeks to highlight the process of data collection as was applied in this project. First, it is important to note that there are two types of data that were involved in this study, primary data and secondary data.
3.4.1 Primary Data
By definition, primary data is the data that has been originally collected by the researcher, from the first hand original source, to meet the purpose of the study. Data is more reliable, authentic as well as objective since it has not been altered, published or changed by actions of any agents (Easterby-Smith, Thorpe & Jackson, 2008). In this research, we recognized the importance of collecting primary data. This is why, despite much of the data we were interested in being easily available on the media and company websites, and we opted to compliment them with primary data for purposes of authenticity. This is because basing a study solely on secondary data would jeopardize the reliability of the results of the study (Mason, 1996).
In this research, primary data was collected by means of interviews conducted for bank human resource managers to learn the requirements for recruitment of graduate management trainees. Another source of important primary data was the questionnaires that were administered on at least three graduate management trainees from the banks under study. These primary data played an important role in drawing conclusions on the qualities that should be sought by banks in recruiting management trainees. They form the primary basis of this research project.
3.4.2 Secondary Data
Secondary data refers to already existing data that has been collected and can be readily obtained from other sources. This data is often quickly and cheaply available as compared to primary data and is often useful to researchers where primary data is not available (Clements, 2006). In this research, secondary data was made use of due to their easy availability. This is because most of the information sought on recruitment of management trainees by banks in China is easily available from secondary sources such as the media and the websites of these banks. When they have openings for management trainees, banks post the advertisements for these positions in newspapers, on their websites and onto the websites of some other online recruitment agencies. The adverts clearly outline the available openings, the requirements and qualifications by candidates to get into such positions as well as the application procedure.
Secondary data is preferred by researchers seeking to save efforts, time and cost. It also aids in identifying existing gaps and deficiencies in data availability thus making collection of primary data more specific (Mason, 1996). In this research, the secondary data available was reviewed first and the information used to design and streamline primary data majorly towards obtaining data that was not available. In this way, the secondary data obtained provided a basis for formulation of questionnaires and interviews from primary data collection, which was then, used a means of authenticating secondary data obtained from the media. This would ensure that they are accurate and up-to-date. Secondary data also helped in improving our understanding of the research problem and provided a suitable basis for comparing the primary data (Clements, 2006).
3.5 Data Analysis
Data obtained from primary and secondary sources is often considered as raw data. Therefore, the data must be processed or analyzed to provide relevant information necessary in a form that can be presented to answer the research questions (Creswell, 1994). Data analysis is categorized in two groups namely, quantitative data analysis and qualitative data analysis. In this research, both primary and secondary data collected was analyzed, as follows:
3.5.1 Quantitative Data Analysis
There are many quantitative data analysis methods available in research ranging from manual numerical analysis to modern software analysis such as the use of SPSS to analyze questionnaire results (Easterby-Smith, Thorpe & Jackson, 2008). However, as stated earlier, this research was highly qualitative and therefore quantitative data analysis methods only applied to a lesser extent. The results from the questionnaires and interviews were therefore mostly analyzed manually by studying the responses obtained. The only quantitative aspects that were referred to regarded the number of people interviewed or the number of questionnaires and any other relevant details that could be drawn from the data. This is outlined in the succeeding section on data analysis.
3.5.2 Qualitative Data Analysis
This research was highly qualitative. Most of the objectives were met out of detailed qualitative analysis of both primary and secondary data. First, the data was assessed to identify the requirements for recruitment of graduate trainees by each of the sampled banks. In order to meet the second objective, comparisons were made among recruitment requirements and procedures of the selected banks. The findings were also compared with those from other banks outside China to establish how they compare. These results were then used to draw various conclusions and recommendations on the qualities that should be sought in recruiting bank management trainees (Creswell, 1994).
3.6 Research Criteria
Two major criteria research criteria were observed in this study namely, reliability and validity. This section gives a brief overview of these criteria.
3.6.1 Validity
In a qualitative research, such as this, validity entails correct interpretation of observations, integrity of inferences drawn from the findings and the truthfulness involved in the research (Lefly & Pennington, 2000). Two main measures were taken to enhance validity of this project namely, analytic induction and constant comparative method. These involved identification of a series of related findings and finding alternative cases of testing the findings respectively.
3.6.2 Reliability
Reliability, in qualitative research, is the extent of independence of research findings from accidental incidences of the research. It also refers to the consistency with which observations are made (Lefly & Pennington, 2000). In order to enhance reliability, in this study, standardized methods of recording observations and interview responses were used. The findings were also analyzed carefully and multiply and comparing the results in each case.
3.7 Resource Requirements
In order to successfully complete this project, several resources were put to use. The first resource employed is time, a duration of six months used in conducting the study. The second important resource used is the human resource. This included our project team as well as enumerators recruited to help in administering the questionnaires. All this resources revolved around financial resources that played the greatest role in facilitating the study. Services such as printing of the questionnaires were outsourced from external service providers.
3.8 Ethical Considerations
Ethics refers to a set of moral principles, rules and values that govern conduct of people, individually or in a group (Saunders, Lewis & Thornhill, 2007). As researchers, we have a great responsibility to our profession, university and respondents. We therefore sought to abide by all the professional as well as students’ ethical standards as directed by the university. These ran through the various phases specifically data collection, conducting the research procedure, worth of the research and the researchers as well in order to maintain good reputation.
3.9 Design Limitations
Two major limitations are worth noting in this study namely, the ability to generalize as well as its longitudinal effects. Since the inquiry was highly qualitative, the ability to generalize the findings may be limited. The design of this study was also limited to generating results that can account only for a small classification of banks. As such, since only a few banks were studied, the conclusions may not necessarily reflect the situation in all other banks. In addition, budget and time constraints made it impossible for us to study a large sample of banks. This could be adjusted by future researchers in this area in order to give it a more holistic approach.
Chapter 4: Results and Data Analysis
Any research work aims at generating results which are then analyzed by various methods to make the more meaningful (Shaughnessy & Krogman, 2012). This section outlines the findings of this research and their subsequent analysis with respect to the specific objectives of the study.
4.1 Results
4.1.1 Recruitment Requirements for Management Trainees by HSBC
Requirements: Masters Degree or Bachelors degree with 2 years working experience. Undergraduates with no working experience join the bank at a junior level and are subjected to a tailor-made program for 3 years instead of the normal 2 years. The program is not very demanding with fewer restrictions for undergraduates and professionals. Recruitment Procedure: Shortlisted candidates go through a 30-minute interview, 25 minutes in English and 5 minutes in Chinese. The interview tests soft skills and candidates’ the ability of handling problems and organizing language. Successful candidates join the program.
Compensation: basic salary, overtime allowance, shift allowance, and end-year special rewards.
Employee benefits: annual leave of10 working days, industrial injury, endowment, medical, unemployment insurance, birth and housing fund.
4.1.2 Requirements for Management Trainees by HangSeng Bank
Requirements: Bachelors degree (or above); less than 2 years working experience; strong self motivation, ability to work under pressure and independently with minimum supervision; good communication, analytical and interpersonal skills; proficiency English and Chinese; high mobility;
Compensation program: 11 CNY / hour
Working Hours: 08:30 -17: 30 hours.
4.1.3 Requirements for Management Trainees by the BOC
Requirements: talent; intelligence; commitment; dynamism; positive attitude and mindset to learn and develop career; analytical; meticulous; independent; good interpersonal skills; Proficiency in English and Chinese. They must be fresh university graduates of Business Management, Financial Engineering, Banking and Finance or any Accounting-related course.
Vacancies Offered: Corporate and Commercial Banking, Retail Banking, Operations and Processing.
Training program: short attachments in Business & Branch, classroom & e-learning sessions and periodical evaluation of progress and performance to determine final job fit.
4.1.4 Requirements for Management Trainees by Barclays Bank, Kenya
Overview: The Graduate Emerging Managers (GEM) programme at Barclays Bank is a structured development program offering entry level opportunities to prepare graduates into management and subsequently senior management positions. It emphasizes on equality and diversity.
Requirements: Masters Degree or Undergraduate degree (Upper Second Class Honors); professional qualification in any business related discipline; Minimum of grade ‘B’ or its equivalent at ‘O’ level; Minimum of Grade ‘B’ in Mathematics and English at ‘O’ Level; Self motivation; work energy; competency; diverse skills and experience; Kind with ability to grab opportunities; Ability to prioritize the customer.
Training program: two years development training.
Compensation and benefits: generous salaries; excellent training and career development as well as grooming for challenging and more exciting roles.
4.1.2 Requirements for Management Trainees by Standard Chartered, Singapore
Overview: the Standard Chartered Bank in Singapore offers a management trainee program lasting 12-18 months. It aims at: building candidates’ career strengths, accelerating career, shaping one’s future and broadening his/her career horizons.
Vacancies offered: Corporate Real Estate Services, Finance, Group Technology, Human Resources and Operations Management.
Programme structure: Induction Programme on core banking curriculum; Rotations/straight to desk tasks, advanced banking curriculum, Performance Evaluation and Graduation.
Requirements: undergraduate/postgraduate degree; Legal right to work in Singapore; Proficiency in English and a possible second language; self motivation; interest in Banking & Finance; entrepreneurial attitude; resourcefulness; innovativeness; ability to work under pressure; Ability to cope with frequent changes; ability to reprioritize at short notice; excellent interpersonal and communication skills; planning and organizing ability; positive attitude and commercial thinking.
Application process: online registration and assessments, application, telephone interview, final assessments and final decision within 72 hours
4.2 Qualitative Data Analysis and Discussion
4.2.1General Recruitment Requirements for Bank Management Trainees
In order to acquire suitable young trainees who can adequately be trained for future bank management, the following general trends were noted in recruitment requirements for management trainees across banks.
- Bachelors/Masters degree in a relevant field
- Fresh graduates,
- Little or no relevant experience
- Personal attributes and attitude
- Good interpersonal and communication skills
- Proficiency in relevant official and/or national language
4.2.2 Similarities in Recruitment Requirements among HSBC, Hangseng and BOC
The recruitment requirements were almost uniform across these banks. This was attributed to the fact that most banking operations are common across banks and thus, would require similar knowledge, expertise and experience. The following similarities were noted:
- All required either a Bachelors or Masters Degree.
- A minimum of 2 years experience was needed.
- Proficiency in both English and Chinese was common.
- All preferred fresh graduates.
- All required graduates with good personal and interpersonal attributes
- All subjected their trainees to 1-2 years on-the-job training.
4.2.3 Differences in Recruitment Requirements among HSBC, Hangseng and BOC
Most banks had similar recruitment requirements. However, similarities were only noted in the length of experience needed. While BOC required no necessary experience, HangSeng needed less than 2 years while HSBC needed at least 2 years working experience. HSBC subjected candidates with no experience to an additional one year of training over the normal 2 years.
4.2.4 Comparison with Barclays and Standard Chartered Banks
Most of the recruitment requirements for these banks were similar to those of the three Hong Kong based banks already discussed. Similarities were noted in educational requirements, personal attributes and interpersonal skills, requisite working experience and proficiency in English and a possible local language in the respective countries of operation.
However, unlike the Chinese banks, these international banks required candidates to have a legal right to work in a given country. Their training programs were also more elaborate than the Chinese banks, possibly to meet the heightened needs of the International market in which they operate. Barclays Bank, Kenya even traced candidates’ performance in English, Mathematics and general grades at ‘O’ level.
4.3 Quantitative Data Analysis and Discussion
This research was highly qualitative. As such, no much quantitative data analysis was found particularly necessary. However, it is important to note that from the 9 management trainees who responded to our questionnaires, there was almost a 100% trend of satisfaction with the training and the benefits they had from the programs. The 9 respondents were management trainees from HSBC, HH and BOC, each giving 3 respondents.
Chapter 5: Conclusions and Recommendations
5.0 Overview
Based on the above findings, several conclusions and recommendations were made. This section summarizes the main findings with respect to the objectives of the study. It also highlights the theoretical implications of the conclusions and gives relevant recommendations thereof.
5.1 Summary of Findings
Generally, for their graduate management trainees, it was found out that banks required fresh Bachelors/Masters degree graduates, with an average of 2 years, or less, working experience. They also emphasized on attitude, personal and interpersonal attributes and language proficiency. Among the Hong Kong based HSBC, HH and BOC, the recruitment requirements were almost similar. They all stressed on recruiting fresh Undergraduate/Masters qualifications with 0-2 year’s experience and similar personal and interpersonal attributes as well as language proficiency. These similarities were attributed to the similarity in general banking operations across banks. However, slight differences were noted in the length of work experienced needed by this banks ranging from zero, less than 2 and at least 2 years in BOC, HH and HSBC respectively.
A comparison between the three banks with Barclays and Standard Chartered Banks, which are multi-national banks, indicated general similarities in terms of educational, personal, interpersonal and language requirements. However, the emphasis by these international banks was so thorough that the Kenya-based Barclays Bank even traced language and academic performance all the way from ‘O’ level. They also required candidates to have legal right to work in a particular country as part of the eligibility criteria. This is meant keep up with the ever increasing competition in the world market in which they operate. Finally, this research established that a vast majority of the management trainees were indicated satisfaction with the quality of the program in their various banks. A survey across their human resource departments also indicated a high level of success of the programs.
5.2 Theoretical Implications
The theoretical implications of these findings on, existing management principles and strategies would be a shift from the traditional forms of developing managers. In the past, appointment to management positions was based on long-term experience and work maturity. However, focus is now shifting to developing managers out of fresh graduates who are recruited specifically with an aim of developing them into managers (Yasmina, 2010). This has seen a rising trend in the number of young, energetic and innovative managers as opposed to the traditional old and tired managers.
5.3 Recommendations
Based on the successfulness of management training programs and their efficiency in developing a pool of young and innovative managers, we hereby recommend that other organizations, other than banks, that have not adopted the system, should do so. This would be a suitable means of revitalizing their operations and boosting their performance to keep at par with competition in the global market. We also recommend that instead of just concentrating the management trainee programs to graduates and post-graduates, organizations should extend the program to other middle-level college graduates who may be having all the other requisite qualifications but have not attained the degrees level of education. However, further research should be conducted to assess the feasibility of these attempts and to give a holistic perspectives across all types of organizations.
Chapter 6: Self Reflection and Development
6.0 Introduction
After carrying out such an extensive study, it would be important for us to evaluate and reflect on its contribution to our development and experience. The section briefly highlights this with respect to time management and allocation, personal achievements and future development.
6.1 Time Management and Allocation
In order to successfully complete this research, time management and allocation was of essence. I had to distribute the various project phases, from planning to implementation, over the available eight months timeframe. I also had to be careful to strictly adhere to the allocated set timeframe. A detailed work plan is attached on the appendices’ section.
6.2 Personal Achievement
As a beginner in research, this research project has been a great learning experience for me. Other than time management, the data collection exercise, especially the interview, has sharpened my interpersonal skills. It has also widened my network due to the many people I interacted with during the study. I have also learnt a lot regarding research and regarding banking due to my close interaction with bankers during the study.
6.3 Future Development
The knowledge and experience gained during this project will certainly be of great use to me in accomplishing future projects, either in the academic or professional line. However, I recognize the fact that this should be coupled with progressive learning and practice to perfect the skills I have gained so far.
List of References
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Appendices
Appendix I: Interview Questions for Bank HR Managers
- What is the general recruitment procedure for graduate management trainees in your banks? What are the requirements for candidates to qualify for management trainee positions in your bank?
- How successful are the management training programmes in preparing future managers for your banks?
- What are your general comments regarding management training as a way of grooming future bank managers?
Appendix II: Work Plan
