The role and influence of human resource management in the capital markets and investment banking sector

Abstract

This thesis presents research on the role and influence of human resource management in the capital markets and investment banking sector. The initial research targeted 22 leading banks in the capital markets and investment banking sector covering the period 2001 to 2003 and further, exploratory, research undertaken between March and May 2007 focused on 14 of these banks.

The findings of this thesis indicate: that CEOs have greater influence over the human resource environment than human resource professionals and that where they are competent in human resource management then they can positively impact the human resource environment and following this, firm competitive advantage; that senior business line mangers must clearly understand and embrace their human resource management responsibilities for an integrated approach to human resource management to be successful; and, that the degree of human resource business partner influence is contingent on the degree of human resource business partner credibility. It is argued by this thesis that if human resource professionals have no credibility CEOs and senior business line managers are unlikely to include them in significant decision making. It is also argued that credibility can be both individual and institutional.

The implications of these thesis findings include: a strategic approach to management of the talent portfolio, led by the CEO. This involves an understanding of the fundamental links between leadership and management competency as it relates to the human resource environment; talent portfolio management; and, better firm performance; an integrated and strategic working relationship between the human resource function and business managers; stronger numerical, analytical and commercial skills in the human resource function; greater measurement around talent, building up to sophisticated human capital metrics; and, the identification and active management of people related risk.