Corporate governance and strategic human resources management (SHRM) in the UK financial services sector: the case of the Royal Bank of Scotland

G. Martin, Paul J. Gollan

    Research output: Contribution to journalArticle

    14 Citations (Scopus)

    Abstract

    In this paper, we outline a new configurational framework linking different models of corporate governance to their associated ethical, strategic management and strategic human resources management (SHRM) policies and practices. We draw on this framework to analyze the role played by HRM and leadership in the rise and spectacular failure of the Royal Bank of Scotland, the Scottish headquartered financial services group, which grew to be one of the largest and most successful banks in the work prior to the global financial services crisis (GFC) but had to be rescued by British taxpayers following a failed acquisition during the GFC. Drawing on published accounts and interviews with senior RBS HR staff, we also analyze how a post-crisis shift in corporate governance, ethics and strategy is shaping organizational climate and HR policies at the bank to provide the HR function with a greater opportunity to exercise an influence on the corporate governance regime. However, the global nature of the financial services industry, the needs to satisfy financial markets and the desire of the UK government to return RBS to private sector ownership has placed strict limits on the potential for the emergence of a stakeholder model of corporate governance and HR, which many critics anticipated would be one of the few positive outcomes of the GFC.
    Original languageEnglish
    Pages (from-to)3295-3314
    Number of pages20
    JournalInternational Journal of Human Resource Management
    Volume23
    Issue number16
    DOIs
    Publication statusPublished - 2012

    Fingerprint

    Industry
    Service sector
    Scotland
    Corporate governance
    Financial services
    Strategic human resource management
    Human resources management
    Financial markets
    Staff
    Ownership
    Private sector
    Financial services industry
    Headquarters
    HR function
    Organizational climate
    Stakeholders
    Government
    Strategic management
    Exercise

    Cite this

    @article{651d3007248944c6ad3dfac5562b9f1a,
    title = "Corporate governance and strategic human resources management (SHRM) in the UK financial services sector: the case of the Royal Bank of Scotland",
    abstract = "In this paper, we outline a new configurational framework linking different models of corporate governance to their associated ethical, strategic management and strategic human resources management (SHRM) policies and practices. We draw on this framework to analyze the role played by HRM and leadership in the rise and spectacular failure of the Royal Bank of Scotland, the Scottish headquartered financial services group, which grew to be one of the largest and most successful banks in the work prior to the global financial services crisis (GFC) but had to be rescued by British taxpayers following a failed acquisition during the GFC. Drawing on published accounts and interviews with senior RBS HR staff, we also analyze how a post-crisis shift in corporate governance, ethics and strategy is shaping organizational climate and HR policies at the bank to provide the HR function with a greater opportunity to exercise an influence on the corporate governance regime. However, the global nature of the financial services industry, the needs to satisfy financial markets and the desire of the UK government to return RBS to private sector ownership has placed strict limits on the potential for the emergence of a stakeholder model of corporate governance and HR, which many critics anticipated would be one of the few positive outcomes of the GFC.",
    author = "G. Martin and Gollan, {Paul J.}",
    year = "2012",
    doi = "10.1080/09585192.2012.689159",
    language = "English",
    volume = "23",
    pages = "3295--3314",
    journal = "International Journal of Human Resource Management",
    issn = "0958-5192",
    publisher = "Taylor & Francis",
    number = "16",

    }

    TY - JOUR

    T1 - Corporate governance and strategic human resources management (SHRM) in the UK financial services sector

    T2 - the case of the Royal Bank of Scotland

    AU - Martin, G.

    AU - Gollan, Paul J.

    PY - 2012

    Y1 - 2012

    N2 - In this paper, we outline a new configurational framework linking different models of corporate governance to their associated ethical, strategic management and strategic human resources management (SHRM) policies and practices. We draw on this framework to analyze the role played by HRM and leadership in the rise and spectacular failure of the Royal Bank of Scotland, the Scottish headquartered financial services group, which grew to be one of the largest and most successful banks in the work prior to the global financial services crisis (GFC) but had to be rescued by British taxpayers following a failed acquisition during the GFC. Drawing on published accounts and interviews with senior RBS HR staff, we also analyze how a post-crisis shift in corporate governance, ethics and strategy is shaping organizational climate and HR policies at the bank to provide the HR function with a greater opportunity to exercise an influence on the corporate governance regime. However, the global nature of the financial services industry, the needs to satisfy financial markets and the desire of the UK government to return RBS to private sector ownership has placed strict limits on the potential for the emergence of a stakeholder model of corporate governance and HR, which many critics anticipated would be one of the few positive outcomes of the GFC.

    AB - In this paper, we outline a new configurational framework linking different models of corporate governance to their associated ethical, strategic management and strategic human resources management (SHRM) policies and practices. We draw on this framework to analyze the role played by HRM and leadership in the rise and spectacular failure of the Royal Bank of Scotland, the Scottish headquartered financial services group, which grew to be one of the largest and most successful banks in the work prior to the global financial services crisis (GFC) but had to be rescued by British taxpayers following a failed acquisition during the GFC. Drawing on published accounts and interviews with senior RBS HR staff, we also analyze how a post-crisis shift in corporate governance, ethics and strategy is shaping organizational climate and HR policies at the bank to provide the HR function with a greater opportunity to exercise an influence on the corporate governance regime. However, the global nature of the financial services industry, the needs to satisfy financial markets and the desire of the UK government to return RBS to private sector ownership has placed strict limits on the potential for the emergence of a stakeholder model of corporate governance and HR, which many critics anticipated would be one of the few positive outcomes of the GFC.

    U2 - 10.1080/09585192.2012.689159

    DO - 10.1080/09585192.2012.689159

    M3 - Article

    VL - 23

    SP - 3295

    EP - 3314

    JO - International Journal of Human Resource Management

    JF - International Journal of Human Resource Management

    SN - 0958-5192

    IS - 16

    ER -