Challenges and Solutions in Human Resource Management at BMW

This report discusses the challenges faced by Human Resource Management (HRM) in BMW, including issues with management, developing expected behavior in employees, increased overseas production, and performance-related pay. It also explores the benefits and challenges of managing an older workforce. The report provides insights into the dynamics of HRM in a luxury automotive company and offers solutions to overcome these challenges.

Business Management

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Issues concerning with the Management.................................................................................................4
Developing expected behavior in Employees..........................................................................................6
Increased overseas production and HRM policies...................................................................................7
Performance Related Pay.........................................................................................................................8
Benefits and challenges of older workforce.............................................................................................9
CONCLUSION.........................................................................................................................................10
REFERENCES..........................................................................................................................................12

INTRODUCTION
As a business manager, you are given the major responsibility of managing administrative tasks
for a business. A company may expect you to assist with its marketing program. A company may
also want you to perform a budget analysis in order to find out ways that the company can cut
costs. You should have an astute understanding of accounting, marketing and administrative
procedures that are required in order to run a business.
In this report Human resource branch of management had been focused, belonging to one
of the most popular and frequently preferred company of automotive sector, BMW. BMW
company has recently decided to ramp up its production capacity and is also looking forward to
focus on its overseas sales. In this manner, the report has made discussion over different areas
and aspects of Human resource management that can be involved in company achieving its new
targets. The discussion in report is including issues that can be faced by management in
company, manner of developing desirable behavior in employees, relation between new policies
of company with HRM, aspects f payment based over performance of employees and also
benefits and challenges that a company indulges in while managing their older workforce.
MAIN BODY
Human Resource Management is one of the most important, highly advantageous and
one of the most requiring or demanded branch of management. The dynamics of business
environment, the wave of globalization and internationalization of business enterprises have
taken the demand of this particular branch of management to some new heights, where business
enterprises, and especially some big enterprises, are affording their businesses to run in absence
of other managers but not the Human Resource Manager. Also, it is a matter of fat that Human
Resource management is crucial in fulfilling demand of other branches of management as well,
regarding fulfilling their requirements of required and efficient workforce. However, also, it is a
matter of fact that, all such necessities and high demand of Human resource management, along
with internationalization of not just business operations but the branch of management itself.
Discussed in this section of the report are many complexities and dynamics that Human
Resource management in one of the most luxurious company in Automotive sector, BMW is

facing. Also, highlighted in the report are some key solutions that can answer many specific
questions that this branch of management is facing in the company (Radovic Markovic and
Salamzadeh, 2018).
Issues concerning with the Management
BMW is a really large scale company which is also still engaged in managing to expand
and enrich its production process. But, when a company of this stature takes some concerning
steps in regards of expanding its business enterprise, then that does not come with many new
challenges that company is required to face and resolve. Discussed below are some those
challenges for HRM while making expansion of production and distribution in BMW.
 The most obvious challenge that company could be facing in order to expand the process
of production and distribution, that company could be most likely facing the degradation
of its quality of products. There are chances that while making and focusing on the
increase of production, management in BMW company can have negligence in managing
and controlling standards of quality in company. also, the overreaching production in the
company, requiring to strike some new heights, will also necessitates that appropriation
of resources in production should be well used among different units of resources. Now,
since everybody knows that BMW, or any other company in the market has its own
limitation regarding resources, than in this case obviously quality can be seen decreasing.
 Like physical resources of the company, also, manpower and the human resources of
company, are to be distributed and utilized in very equitable manner. Increase in
production pens up many scope of appropriation of different kind of resources in the
company (Tsyganov, 2019). It requires them to be available with company in more
quantity, and also there allocation between different units of company has to be very well
thought off. Managing process of distribution of resources related to employees and
workers is some kind of extra demanding, as they are the one that has their own qualities
and skillset, and Human resource manager in BMW is required to manage them in
accordance with their talent. Therefore, this could be more challenging for management.
 Lack of communication is another area of concern. This is another challenge, that gets
open up, or also this can be regarded as one of the scope of disruption that gets caused
when a large scale company is trying to expand its production process. BMW is a

multinational company, and it has its production unit in several countries. And, the
mechanism through which its process of production and distribution of goods work, that
is a highly developed supply chain mechanism. Therefore, it could be well interpreted
that communication channels in the units that engaged for facilitation of business
operation of company, should be very smooth, uninterrupted and very frequent. The
manner in which this channel of communication in the company is seeming to be
complex, is the same manner in which it could turn out to be difficult in maintenance and
management as well. Therefore, Human Resource manager in BMW is required to have
some really dedicated approach in facilitating this for the company. Loopholes n
company had to be quickly identified, resolved and implemented. Also, if employees are
needed to be trained in some specific manner that should also has to be done, with lapse
of no time.
 As the company is aspiring to frequently develop its production capacity, and it is also
aspiring to make some dedicated channels of distribution in very frequent, efficient and
absolute manner, then it is obvious that pressure to work and perform at good scale will
be coming over the existing workforce of company. That is also a serious issue, because
workforce in company is the only one that gives effects to every important task of
production and other functions of company, ranging from every big to small function of
the process. In this line human resource management in the company could be facing two
big challenges, one is regarding developing performance levels of exiting staff, and
imparting necessary training to new staff, if recruited any. Therefore, the management in
company would be requiring an approach from the ground level, in facilitating the
implementation of this improvement in company (Common Management Challenges and
How to Overcome Them, 2021).
 Poor teamwork and coordination among staffers, along with inadequate and unacceptable
standards of working environment could also emerge to be another challenge for
management. As, every worker in the company would be engaged in giving their best for
ramping production levels in company and they will be striving in order to meet new
targets of production, workers can be seen getting frustrated from their work pressure,
and get engaged in frequent clashed with their co-workers or with the management.
Human resource management is very strictly required to pay attention over this issue in

company and can focus over two areas for resolving this issue from grass roots
level .One, there are chances that workers are engaging in fights because they are not
available with necessary skills in giving effect to their work. Then, in this case HRM
should focus on developing performance levels of employees, targeting those who are
frequently facing this issue. Secondly, there are chances that multiple units in company
are not available with desirable workforce and existing workforce is thus getting
overburdened with work. Therefore, there is necessity of BMW for increasing their
workforce levels.
Developing expected behavior in Employees
It is required that, for achieving the targets that BMW is aspiring for, in terms of
production and distribution capacity. Employees of company should better behaving in most
expected and desirable manner. However, it is also better understood that these standards of
behavior in the employees cannot be dreamt of coming on their own and HRM of BMW shall be
working towards developing them in employees. In this regard this section discussion on HRM
had evaluated some of the basic standards of performance levels, and also the manner in which
they can be cultivated in employees.
 It is most understandable and most witnessed practice that, employees are desired to
perform best of their potential and are seen utilizing their optimum levels of capacities,
when they can seen some long term benefits in the work that they do. They are required
to have some long term vision which can make developments in their personal and
professional graph of life (Jena, 2020). Therefore, HRM must act towards developing
some vision n minds of employees, that they can be fulfilling while putting their efforts at
such time in company. This will internally push employees to put their efforts, so that
they could be achieving many long term goals.
 Human resource manager in BMW should also be motivating employees in making their
approach towards work a little open minded. The employees in company should not have
a narrow minded approach where they would only be fulfilling some set goals of personal
life. HRM shall better show their employees a different vision of career life, if they also
adopt goals of company in their charts of goals. Employees are required to be convinced
that the relation that they have with company is based on principle of something for

something. If employees are willing to give their time and efforts to the company, than
company will also make its best in giving benefits to its employees. Therefore, the
relation is two ways and not one way (Behaviours of Effective Employees, 2020).
 Also, these employees in company, from which company is taking efforts and energy
should also be made to increase their knowledge about business. If their understanding
about the business will be increased to some extent, than the employees will look at their
job beyond the constraints of their job description only. They will have a larger view, that
if BMW is thinking of increasing its production capacity and is also striving to develop
its distribution channel, than what are those overall range of improvements that are being
made everywhere, from company to customers to employees to economy at larger
context. In this manner, their bigger understanding can give them a view, that shall
eventually boost morale of employees. Also, they can effectively take some decisions on
their own, and they can also offer some effective suggestions to their employers, in
managing difficult circumstances. In nutshell, through improvement in knowledge
employees could be taking active participation in their job and business of company,
while looking at this as their personal goal of life.
Increased overseas production and HRM policies
Now, when BMW is aspiring to ramp up its capabilities and it is also striving to make it
happen at the global level, than in one context this change in company can be regarded as a
change in policies of BMW. This is not a small change the one specific unit of company in a
country is making, looking conditions of domestic market of the country, but this step of
increased production is taken at larger level of company, that would be implemented at all units
of company across the globe. Therefore, this can be seen as policy change. In this scenario every
department of company will also be requiring to manage some changes in policies of their own
level, so changes can be implemented effectively in company. In this context, under this section
of report, some changes that HRM department could be seen making for boosting exports of
BMW products are discussed:
 First of all, along collaborating the marketing department of company, HR department
can focus over identifying actually growth sectors in the market. These sectors are those
segments of market, divided in term of geographical areas, or age, sex or incomes of

consumers in the market that can be seen offering actual growth potential to the
company. This shall be helpful in saving, time and cost of company (Marom and Lussier,
2018).
 Also, after identifying sectors of growth the actual manner and direction of preferences of
consumers has to be identified. In this function, collaboration of HR department in the
company is important because through this effective training to employees can later be
provided by this department that will be proving directly beneficial to overseas customers
of company, solving their all grievances and then achieving highest ever customer
satisfaction then possible (Growth Strategies to Help Boost Export Growth in 2019,
2019).
 Human resource department can also actively participate in larger policy frameworks of
company. As the matter of concern here is regarding boosting overseas exports of
products of BMW, than HR department can help senior management and leaders in
company to make some highly beneficial Free Trade Agreements with other companies
or from different governments as well. In this fact, Human resource department can
instruct and train some of their highly skilled employees to offer their valuable time in
evaluation of multiple sets of data and figures along with Research department of
organization, so that potential business allies of company can be figured out.
Performance Related Pay
Under the policy of performance related pay, employees in the organization are rewarded
and awarded through monetary benefits and payments based on quality of their work. In this,
quality of work of employees is better assessed by the employers, and if particular employees is
seen meeting desired standards and levels of performance, then they are rewarded in monetary
terms. However, this system has its own advantages and disadvantages that are discussed in this
section.
Advantages
 This could be best way of inducing employees to develop their standard of performance.
As, money is one of the most important motivation for any employee to work in an
organization, then monetary rewards based on level of performance of any employee, can

help employers to boost internal motivation in employees for developing their level of
performance (The advantages and disadvantages of Performance Related Pay, 2019).
 Employees can be seen identifying on their own those areas of work that they are needed
to improve. As any development in performance will be directly linked to monetary
rewards.
Disadvantages
 There are chances that, employees can also be seen getting de-motivated or discouraged,
if the employers in BMW had set standards of desirable level of performance as too hard.
As, BMW is now aspiring to ramp its production and also aspiring to boost their overseas
sales, then speed in production will have to be maintained. As employees will be
managing quality and speed together, then there are chances that some deviations in level
of performance would be inevitable, and employer must take note of this concern.
 Also, employees can then be focusing too much over the quality of work and in this
manner production targets can be seen being unmet, whereas targets related to quality can
be seen meeting effectively. Therefore, in lieu of achieving one set of targets, company
will be seen losing other set of targets. Rather, management in BMW is required to
maintain a striking balance between the two, so that employees can appropriate their
attention equally.
Benefits and challenges of older workforce
Older workforce in the company is regarded as one of the most valuable workforce in
company, as these workers in company are present with wide range of experience in business
environment and in their specific area of work as well, therefore, company is seen getting some
high benefits from these workers, However, there are also some specific challenges that
company can face while managing this workforce, and organizing them in accordance with goals
and objectives of company. In this regard this section of report has discussed some key benefits
and challenges that an organization like BMW can be seen facing while managing their most
experienced and valuable workforce .
Benefits

 The most obvious benefit than anyone can gauge and figure out from the presence older
and experienced workforce in the company is regarding their valuable skills. S older
employees in the company are the one that has worked for a longer time, and their
engagements had been in variety of working conditions and operations, their theoretical
and practical knowledge of work is highly competitive, when compared to anyone else.
Regarding theoretical knowledge it can be mentioned because these employees must have
gone through theories and would have learnt them at repetitive times for giving effects
and solutions to various challenges that they have faced in this prolonged working life.
Therefore, they have stronghold over both.
 Older workforce, by nature is seen to be getting engaged more in work and they are also
seen taking fewer days of leave. This is because they have the most stabilized personal
life. It can be argued that these employees had fulfilled most of the responsibilities in
personal life, and now they do not have much to look besides their health and work.
Therefore, their engagement in work is found more than younger people (Older Workers
– benefits and challenges, 2020).
Challenges
 Employees in older workforce are also themselves aware f their skills and value of their
knowledge and performance in their job, therefore they are also seen demanding in terms
of salary and monetary benefits. However, this can only be seen as a challenge only of
company is running inn short of finance and they are available with liquid funds for
paying off to employees (Matthews and Wrigley, 2017). Thus, in respect of BMW it
cannot be regarded as challenge. Rather company should be focusing to avail most of
advantage from its older workforce.
 Older workforce is also sometimes seen getting carried away by their seniority, and they
develop a stubborn attitude. Also, they can be seen taking their own decision. In this
respect, HR manager is required to have some flexible and respected approach in
handling such attitude, as any harsh attitude can lead to clashes.

CONCLUSION
From the above discussion it can be concluded that, Human resource management branch
of company, and the nature of its works and functions are really complex. As, this is the only
department in the organization that has to deal with management of employees, and handle their
attitude and different circumstances, there is a need of sympathetic and psychological approaches
as well. The targets that BMW had developed can be seen very huge and significant and in order
to manage workforce of company, spread over several continents and parts of world , a holistic
approach is commendable, along with being situational as well, sometimes.

REFERENCES
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