Human Resource Management and Sustainable Organisational Performance at Volkswagen Group

Human Resource
Management
Table of Contents

INTRODUCTION...........................................................................................................................4
CHAPTER 1:...................................................................................................................................5
The impact of the role of HRM in creating sustainable organisational performance and its
contribution in recruiting and retaining talent and skills to achieve business objective..................5
A review of the different HRM areas and departmental scope with their contribution to
organisational performance....................................................................................................5
An examination of strategic HRM in relation to the changing effects on organisations and its
business environment.............................................................................................................6
Importance of HRM for resourcing, recruiting, selecting, and retaining required employees in
the workplace from the labour market....................................................................................8
As part of the report, you will Critically Evaluate the strengths and weaknesses of HRM in
terms of its contribution to business success. You are also required to use other organisations
as examples to support your analysis of the HRM activities................................................10
CHAPTER 2:.................................................................................................................................11
The effect of external and internal factors on HRM decision making in relation to organisational
development...................................................................................................................................11
Conduct research and explain the internal and external factors that affect the decisions made
by HRD in the business........................................................................................................11
Evaluate how the identified external and internal factors affecting HRM in turn affects
organizational development..................................................................................................13
CHAPTER 3..................................................................................................................................14
Applying HRM practices in a work-related context for improving sustainable organisational
performance...................................................................................................................................14
Determine strengths and weaknesses of HRM practices in practical business world for
improving organizational performance. In relation to your chosen company highlight
performance management and employee employer relationships with recommendations of
how the practices illustrated can improve sustainable organisational performance.............14
As part of the application of HRM you are to prepare a sample job advertisement for your
company making use of Person specifications and Job Description....................................15
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................19

INTRODUCTION
To run the business operations smoothly, proper management of the staff according to
there skills and experience is considered as main factor. As the name indicates, human resource
management is the process of managing the working staff within an organisation(Stone, Cox and
Gavin, 2020). It includes recruitment and selection, training and development, relations of
employees and the owner, maintain culture of the company and others. Sustainable human
resource management simultaneously provides a positive economic, social, human and
environment outcomes.
Human resource management plays a great role in sustainable development (Macke and Genari,
2019). The following report is based on the Volkswagen group which is basically a German
Motor vehicle manufacturing company whose headquarters is situated in Wolfsburg, Lower
Saxony, Germany. The respective firm was established in 1937 by German Labour Front.
This report will cover the main areas of human resource management and their contribution in
creating sustainable performance. As it is known, HRM has the responsibility of setting
organisational mission, vision and objectives, any change will impact the decision-making
process of HRM. Organisational change could force the human resource to put efforts in
handling the management of staff. There are the effects of changing nature of organisation at
human resource skills and knowledge. Human resource management have different practices.
This report will explain the practices of recruitment and retention of employees in achieving
business objectives.
This report will cover the external and internal factors affecting decision-making of HRM in
supporting organisational development. At last there will be application of HRM practices in
context to work with suitable examples for present improvement in sustainable organisational
performance. Sustainability is very important for the company and recruitment, training and
other will make improvement in the sustainable development of the company.
CHAPTER 1:
Organisational structure of the Volkswagen group: -
Volkswagen group is basically a well-known as well as leading multinational brand within the
automotive industry. The structure of the company is divided in different business arena. The

passenger cars business arena paid emphasis on the development of vehicles, engines and
vehicle software. The commercial vehicle business arena focus on the development of the
trucks and buses along with its sales. The next arena is power engineering business arena
which paid focus on the large-bore diesel engines, turbomachinery, special gear units and
many more.
Within the business organisation the responsibilities are divided into eight board management
position. The board of management is comprising of volume brand group and the other
position of board members are Components and Procurement, Finance and IT, Human
Resources and Truck & Bus, Integrity and Legal Affairs, Premium, Sport & Luxury. The
brand board of management manage all the Volkswagen group.
The impact of the role of HRM in creating sustainable organisational
performance and its contribution in recruiting and retaining talent and skills
to achieve business objective
A review of the different HRM areas and departmental scope with their contribution to
organisational performance
HRM can be viewed as the functional activity that plays a great role in any organisation.
Human resource management has the responsibility to manage the staff in the organisation either
by hiring, positioning, training and others (Bratton, Gold, Bratton and et.al., 2021). Human
resource management should have the understanding of their work as they play a great role in an
organisation because what type, what number and in which department, which type of candidate
is hired and positioned all are comes under the responsibility of a human resource management.
The objective of the Volkswagen company is to become most attractive employer in the
automotive industry. Their main aim is to recruit the best employees and have the best team in
the respective industry. In context to the VW group role key roles of HRM are discussed below: -
 Staffing: - this can be defined as the process of continuously finding, selecting and
building good working relationship with the existing as well as future employees. In
context to the Volkswagen company the main role of the HRM department is to find the
candidate by evaluating their skills as well as knowledge. Along with this, they also paid
focus on the activities of workers, how their time is spent and many more.

 Reward and compensation: - It is the process of providing extra benefits by measuring
the performance of employees at the work place. There are various methods to appraise
the performance such as: management by objective (MBO), behavioural anchored rating
scale (BARS), 360-degree appraisal and many more. In relation to the VW group, the HR
manager is responsible for evaluating the performance of its employees and provide
reward as per their extra efforts (Pichler, 2019). This will allow the workforce in
improving their performance and motivate others to work hard.
 Health and Safety: - Every worker wants their safety at the workplace either it is
physically or emotionally. The HR manager of the respective company make sure their
job security and ensure them that they will be behaved and treated. Along with this they
also provide safe working environment and first aid if any employee gets injured. All
such responsibilities come under the human resource department.
 Employee Relation: -It is very necessary to maintain good relations at the work place. An
employer or the manager (HR) should properly behave and communicate with its staff. In
context to the Volkswagen it is the responsibility of human resource management to
maintain good terms with the staff and also in between employees. Well coordination will
help the employees to work comfortably with each other, helping one-another in
achieving any organisational goal as well as objectives.
 Training and development: It is very important for any organisation to have well trained
employees. It will help the organisation in achieving organisational goals at time and in
the overall success of the company by gaining overall revenue. In relation to the VW
group, the HRM has the responsibility to train and develop the existing or new employees
as per their requirement. They are also responsible in checking their activities and
working on a regular basis which will allow them in having the idea about whom will
need to be trained.
 Recruitment and selection: It is the responsibility of a human resource department to
search or find out appropriate candidates for the organisation. They search for the
candidates through different job portals such as: LinkedIn, Indeed, Shine and others.
After finding the candidates they have the responsibility to get the knowledge about them
by scheduling interviews for them and after interviewing they have to choose or hire a
well skilled and suitable employee according to the job position.