The Role of HRM and Organizational Development in Sustainable Performance of Business

This report discusses the main areas of HRM, critiques the impact of dynamic nature of organizations on HR skills, evaluates HRM practices for sustainable performance of business, and applies HRM practices in a work-related context for improvement. The report is based on Mercedes, a German automobile company.

The role of HRM and
organizational
development

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Explain the main areas of the Human resource management in organisation......................3
P2 Critique the personalty of the dynamic nature of organisations on human resources skills
and knowledge............................................................................................................................5
M1 Compare areas of HRM to ensure sustainable performance of business.............................6
M2 Examine HRM in relation to the changing nature of the modern business organisation.....6
D1 Critically evaluate the strengths and weaknesses of HRM in relation to creating
sustainable organisational performance and achieving business objectives...............................6
P3 Revaluation applicable HRM practices in relation to enlisting and possession of worker for
the accomplishment of business .................................................................................................7
M3 Evaluate the use of HRM practices in recruitment & retention in context to the
significance of the labor market..................................................................................................8
P4 Investigate the external and internal factors that affect HRM decision making to support
company decision making to support organizational development............................................8
M4 Discuss the key external & internal factors that affect HRM decision making, using
relevant organisational examples to explain how they support development of the company. 10
D2 Evaluate key aspects which are affecting HRM decision making to make valid
recommendations......................................................................................................................10
P5 Apply HRM practices in a work-related context, using specific examples to demonstrate
improvement to sustainable organizational performance.........................................................10
M5 Justify how the application of particular HRM practices in a work related context can
enhance sustainable performance of the business.....................................................................13
D3 Determine strengths & weaknesses of HRM practices to make recommendations for
enhancing sustainable performance of the company................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Human resource management refers to department that is concerned with the recruitment
& selection of the personnel by which they can enhance the entire productivity of the business.
This is process of hiring the skilled and talented employees within the organisation so that all the
related work can be completed in an right approach. They are focusing giving effective training
to the employees, healthy working environment, rewards and good compensation (Tavakoli and
et,. al,.2018). This respective report is based on the Mercedes, it is the German auto mobile
company which is headquartered in Stuttgart, Baden-Wurttemberg, Germany. They are operating
in producing consumer luxury vehicles and commercial vehicles. Furthermore, this report will
cover the main areas of human resource management within the organisation and also critique
the personalty of the varying nature of the company on the basis of human resource skills &
knowledge. This also analyse the HRM practices and their main areas. Furthermore, this will
review the influence of changing nature & the relevant practices in recruitment & retention. This
otfurther analyse the micro and macro factors that effects the HRM.
MAIN BODY
P1 Define the main areas of the Human resource management within organisation.
There are certain aspects which are working as functional drive in human resource
management. The main goal of recruitment is to infleuce the interested candidate who is looking
for the same job designation and they are applicable to the vacant post. Following are the tasks
that is done by the people which are listed below:
 Recruitment & onboard new staff- it is vital to hire the new staff by which all the work
can be completed with full of effectiveness and all the actions are being done by the HR
team in order to influence its employees within the large team. As the company is hiring
the skilled and talented employees by which company can ensure the professional
behaviour within the premises.
 Organizational structure- as it is known that the size of the industry is large which is
consist of certain factors. Thus, it is not easy to handle every employee personally. So
human resource department has given the assignment in order to assure better working of
the staff by which they can familiar with in the company and can feel happy at the
workplace.

 Performance management- It is concern with evaluating entire working of the
employees and manager as people are doing well in their given job role and feels like
they are having the appropriate training and tools by which they can complete the given
task in an effective manner and improve its working on daily basis.
 Employee compensation and benefits- when an individual is working within any
business organisation, they are working for generating good income which help them in
improving their living standard by which they can be influenced when they are rewarded
by Mercedes and get the deserving appraisal within the organisation. The company is
focuses on offering appraisal & compensation to the personnel by which they can be
influenced & happy (Poór and et,. al,. 2019).
 Training and development- Training is reffered to the process by which skills,
knowledge & the attitude of the workforce are enhanced in order to perform the particular
job prescribed to them by which they can effective at the workplace and contribute their
best in their specialised job role. This also help them to learn the new techniques of
operating business by which they can rightly economical and effective at their given job
role. These are the given terms which is organised in the given organisation. There are
certain method which is being opt by business. Mercedes providing the better training
programs for the employees by which they can learn the given operations and the
emerging trends within the business organisation. They basically ensures the overall
consideration in the target market by which they can sustain in the company for longer
period of time.
From the above discussion, it is being showed that betterment in the entire productiveness
of the company helps in ensuring the overall profitability and productivity within the business
organisation. These are the attributes which are directly related to the attitude of the employees.
Moreover, there are certain above mentioned functions which is ensuring giving the better
satisfaction to the workforce by which they can retain with the company for a longer period of
time. This provide a clear sight to the structure of the business by which they are sustaining in
the competitive market.

P2 Critique the personalty of the dynamic nature of company on human resources skills &
knowledge.
In order to attain the structure objectives and goals, this is needed to have the effective
execution of various business activities in an appropriate manner. Strategic HRM is the
procedure in which an arrangement use for coordinative all the pattern of workplace.
Additionally, this also plays the crucial role in analysing he current and future requirement of the
company that emphasis on attaining the overall organisational goals. Basically this emphasis on
conducting plan for the effective management of the business.
 In the current time, all the business organisation is going through the huge competitive
issues and it is the scnerio of the market is violate in nature. Mercedes is focuses in
improvising the skills & power of market in the near future. Organisation can get impact
in terms of trusting approaches only due to the major change in the HRM strategies.
 Strategic HRM have the significant role in impacting the entire company in context to
attains the goals & objectives of the company. This tends to gain the huge level of
competition as the better technique bring the continuous improvement in the company.
 Strategic HRM focuses on the motivating employees, construction the style and the
sincerity for the effective execution of the occurrence of the scenario in the given
business,
The performance of Mercedes company can enhance in various ways. Following are
explained as follows: Analysing the business strategies:In this respective process, company is required to
focuses on the research and development by which they can evolves the new scheme that
are connected to the marketing mix of products. The development of emerging strategies
leads to have huge growth of certain aspects across the world(Piatak and et., al,. 2020). Match HR opertaions to strategies: After analysing the booming company plan,
administration emphasis on choosing the ability that is implies a competitive border to
the major concerns. This is being evaluated that there are certain ability that there are
different ability that are being accessed for operating the overall functions of HR that
includes recruitment. These are the strategies which are being used for the further
development and the successful business plan.

 Analyse techniques which is needed by employees: When the structure gets to know
about the power sets that is required by the administration. By the use of certain
instrument of HR, as the management can evolve the needful ability in their employees as
they are going to be ensuring in the happening of the structure.
 Evaluate effectiveness of practices: As the HR have to acquire the certain process that
they can analyse the powerfulness of various task which are being performed by the
employees. This will help the company in constant pursuant related to the affirmation
which is occurring in the business environment.
M1 Compare areas of HRM to ensure sustainable performance of business.
Recruitment is the process of attracting the large group of interested individuals who can
operate the given job role in an appropriate manner by using their specialised set of skills, where
as the performance management is a corporate management tool which helps the mangers for
monitoring and evaluating the overall working of employees(Lasisi and et,. Al, 2020). This leads
to ensures the better sustainable performance of the business by doing the effective performance
management in the target market. Selection is the process of choosing the deserving individual
by going through the technical text and interview round so that talented employees can perform
their job role.
M2 Examine HRM in context to the changing nature of the modern trading organisation.
With the changing market scenario, business are facing the certain competitive issues &
in such situation market place is violate in nature. It is the state in which the business is focuses
on the overall consideration in the target market. As the modern business organisation, they are
facing change in the market due to which they need to understand the business strategies, analyse
the technique that is required by the personnel.
D1 Critically analyse the strengths & weaknesses of HRM in relation to maintain sustainable
organisational performance & attaining firm's objectives.
HRM is focusses on the employee development by the way of mentoring, training and
coaching so that loop holes of the employees can be rectify by the company so that they can
ensures the better growth of the company. Moreover, HRM build the advocacy a they build the
bridge between the employees and the employer. Sometimes, business leaders see HR as the
employee's voice so that they can rightly ensures the better performance of the business.

P3 Revaluation applicable HRM exercise in context to enlisting & possession of worker for the
attainment of organization.
A critical link has been found in the retaining and the hir9ing of the employees as these
both are the important factor for the development of the business and it is being utilized for the
development of the business growth. In context to Mercedes, procedure of HRM practices are
given below:
Working class market in recruitment: this is the process which is vital in the company
with the sim of recruiting the talented employees within the business. As when the company is
focusing on hiring the qualified employees who can operate the in an effective manner in the
given job role(Cantoni and Mangia, 2018). This also leads to reward benefits to the personnel.
Certain roles & duties of the provider in this given process are given below:
 Hired skilled person - this is the duty of the human resource by which they must hire
the skilled also the educated employees so that they can have the idea of their given task
and all the work can be completed in an appropriate manner. This eliminate the need of
training for the new staff so that all the work can be completed within the right
approach.
 Improving competitive advantage – when the company is having the talented and
skilled employees then they would help in completing the task within the set period of
time. This also tends to improve the overall working of the company by effective hiring.
Qualified employees are working with full of potential by which they can sustain in the
competitive market.
Developing motivation- this is vital for the company to influence its employees by
rewarding them with the compensation and retention by which they can be motivated and
influenced within the workplace. As the automobile must focuses on the employees retention by
offering bonus so that they can be acquainted within the business.
Improving the policy within the company- This respective procedure which includes
the policies such as wellbeing rights of employees which are meant for the employees by which
they can feel safe & healthy within the organization. The institution must appoint the policies

which are helpful for the staff and the employer too which also give the stability of the
workforce in long run.
As the company is offering the rewards on the consideration of quality & effects & even
advance commanding status & the private inheritance. Quality are being analyze on the effective
foundation of the idea for the evaluations(Shen and Zhang, 2019). This basically aims at
enhancing the entire expiation level of the personnel and such endeavor on the part of the
working of the workforce. Organization has enhancing the system and ensure the support by
which they can create balance in their work & personalize life. Additionally, they also provide
the another measure that includes the housing support, comfort, system of payments, wellbeing
plan, health promotion etc. they also ensure the firm payment plan which help the individual in
life planning. These all efforts helps the companies and the employees. Workers feel rewarded
and influenced which establish the seriousness to the company and leads to get better output
within the organization. They basically produce and initiate with the strength which also help the
fellowship changes which also cut the ratio of the employees. Lower number of employees
turnover helps the organization in improving their overall profitability.
M3 Analyse the use of HRM approaches in recruitment & retention in context to the importance
of the labor market.
Once when the organisation is hiring the right person at the right place, it the time to
retain their potential employees. It is being known that the high employees retention rates are
solid testament which analyses the overall performance of the business. This not only helps in
the motivation the talented employees but they also reward them for them better performance as
this leads to have the positive and attractive reputation.
P4 Examine the external & internal factors that is influencing HRM decision making to help the
company decision making to assist organizational development.
When there are certain factors which is assisting the human resource team in developing
the overall strength of the company and leads to increase the opportunity for the business by
which they can grow in the global market. There are main aspects which impact the overall
growth of the company. External and internal which impact the presentation of the company
which are given below:
External factors -

 Technology: As the technology is changing dynamically in the given market which also
effect the business in optimistic attitude which gives the advantages within the
organization. These are the practical application which makes the activity in an effective
which is salutary for the company which makes the decrease in overhead cost which is
leading to the overall cost which could save the vast cost amount within the
companionship. This also deliver the time of the workers which make imaginative and
effective(Raut and et., al,. 2020).
 Government policies: When the government body passes any law which is leading to
the beneficial for the entrepreneurs and the company. There are some of the aspect which
impact the human resource planning in the certain operational task with the aim of having
huge growth. All the rules of the government effects the HR activity such as training,
hiring and compensation and many more.
 Availability of labor pool: It is being known that the HRM is having the ability to
staffing stage with the help of planning of the workforce. As the convenience of person in
the labor industry which is straightly impacting the decision-making of human asset of
Mercedes. The place is to focuses on hiring by existing more efforts outside the position
and offering the share as well.
Internal factors -
 Organizational culture: when a company gather the share value, attitude and trust
within the organization. This basically shows the conduct of the institution. This is the
responsibility of the decision maker to set the constructive working surroundings. In
context to Mercedes, this has been studies that evaluating the trends and the culture of the
company fir the ground of building and processing the accurate HR rules and the better
ideas. It is vital for the HR managing director of Mercedes to select the method which are
impacting the institutional direction.
 HR system: it is being analyzed that activity, development and the stability of the
company is basically depends upon the quality of its employees. Mercedes has worked
upon their strategies which introduces the active administration and prime area with by
having effective flow of human action in the enterprises. It also exercising for the entire
development of the business.

 Marketing strategy: It is the strategy that are being decided for the sole reason of
attaining to their goal masses and certain changes over them into the possible alteration.
In relation to Mercedes, it helps in the decision-making of HRM in an positive manner as
this leads to take the most suitable people who are linked to the business.
M4 Discuss the key external & internal factors that change HRM decision making, using
relevant organisational examples to explain how they influence development of the
company.
It is being analysed that the there are external and internal factors such as technology ,
Mercedes is using the upgraded version of technology by which they are manufacturing and
selling the luxury cars to their customers who is having good income level. In internal factor,
organisational culture, HR system and marketing strategy are the factors which are considered by
the business so that they can ensure the better functionality of the business in the target
market(Lee, 2019).
D2 Measure key aspects which are affecting HRM decision making to make valid
recommendations.
Organisational culture, government polices, state of technology are the certain factors
which is affecting the human resource decision-making. It is recommended to the company to
establish the good working environment to the business so they can sustain in the market place
for long time period. Furthermore, it is also suggested to the company to comply with the
government rules and regulation by which they can be ethical in the large market.
P5 Apply HRM practices in a work-related context, using specific examples to show
improvement to sustainable organizational performance.
As the division is confide with much obligation inside the company within the business
attendant o human resource management, one of the enlisting and substance. This is the
procedure which initiate by analyzing the need of engage for a given designation.The particular
job description is drawn. On such ground, further processes of conducting the advertisement and
taking interview, HR manager can recruit and select the HRM function. Following are the
illustration of recruitment related processes for the given post of marketing manager at Mercedes
.
Job Description

Job Information
Post : Marketing Administrator
Organization : Mercedes
Job Purpose
Marketing director has some role and the responsibilities on with this ensuring that all the work
has been executed in the right direction. The candidate must have the good convincing skills.
Roles & Responsibilities
 Execution of effective strategy and polices in consideration to the marketing.
 Define the consecutive goals and reference in order to make the sale of the specific
product.
 Focuses on the implementation and the fruitfulness in the sale.
Job Specification
Post: Marketing Administrator
Department: Marketing Department
Key: This shows required evidence:
Attributes Essential Desirable
Qualification & Experience  Done the post
graduation from the
recognised university
and also having the
better knowledge of
marketing field.
 Also worked on some
project with the
supervision of the
expert for a long time.
 Wants to have the 2
years for experience in
the marketing
department.
 Effective
communication ability.

 Effective
communication skills
 Graduate from top
institution and with that
also completed the
diploma in marketing.
Skills or knowledge  Social skills
 Advertising skills
 Framing of new
marketing strategy for
the business
development.
Selection Process:
 Hiring command: It is the process in which the individual is being interviewed by the
management by asking certain questions which are relates to the CV and academic skills.
They all were selected on the ground of their performance in the interview.
 Selection Criteria: This is the next level after hiring procedure in which the individual
clear the specialised round and on the basis of attribute on the interview. It is being
consider the several components such as assurance, level of education and so on.
 Selection of the capable candidates: It is the stage in which the engagement & the
analysis of the various petition modular by the HR manager on the selection of the
talented candidate(Chaudhary, 2019).
 Interview process – It is the process in which few questions have to answer and they
face rounds in institution to be the parts of an organisation. This respective process has
different level such as technical round, questions answer round and so on.
 Task Offer – After conducting all such test, company concluding the capable candidate
employees for their business & offer them the designation letter in which all the rules and
working terms are written such as salary, designation, task role and leave policy and so
on.
Visual roadmap
Analyse the
influence of
internal and
external factors
on the HRM
decisions
Evaluation of
such factors and
their support for
the organisational
development
Documentation
of recruitment
and selection

M5 Uphold how the application of particular HRM practices in a work related context can
enhance sustainable performance of the business.
There are certain HRM practices which is being used by the business and there are
certain approaches which is leading to the entire growth of the business. When the human
resource manager is establishing the effective performance management strategy then they can
improve the overall working of the employees in their specialised job role. Further more, training
and development of the employees also helps them to have more versatile and the talented
candidate by improving their skills and capabilities by which they can effective in the given job
in an organisation. Appropriate method of recruitment leads to have the right candidate within
the enterprises so that they can contribute to the higher profitability and productivity of the
company.
Recruitment and
selection process
Performance
management
Maintain
employee’s
relations

D3 Determine strengths & weaknesses of HRM practices to make recommendations for
enhancing sustainable performance of the company.
There are certain pros and cons of HRM practices as these are the important practices
which is ensuring the growth of the business in the market. Recruitment and selection is the
major practices but this is not sure for the HR manager that they will select the right candidate so
it is recommended to the company to use the appropriate methods if recruitment and selection so
that they can engage the talented employees who can perform the job role in an proper manner.
They must use the effective and advance methods of training so that they can have the effective
working within the company by which they can ensures the effective working of the
employees(Berman and et., al,. 2021).
CONCLUSION
From the above study, it is being concluded that human resource management is the
process that plays the vital role within the company as it actions are linked to the employees
working within the workplace. Employees are the main assets of the company which perform all
the actions and which are regulated by the employees. Regulating the management may leads to
the attainment and the failure of the business. HRM also controls the activity of the framing
strategies and the successive ideas for the company. The manager of company of company is
motivating and influencing the employees so that all the related work can be completed with the
right approach. They basically using the internal and external approaches in order to full fill the
vacant post within the business organisation.

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