Impact of HRM Practices in Volkswagen

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAINBODY....................................................................................................................................1
Examine how value was created by the firm by using HR strategies. Use of concepts of
strategic HRM should be evident................................................................................................1
Analyse the impact of regional and national culture on the practice of HRM of Volkswagen
in Asia and Africa country..........................................................................................................2
Use appropriate organisation’s model of employment and state the organisational levers used
by Volkswagen to create value...................................................................................................3
Using Storey’s 27 points of difference between HRM and Personnel Management as a
benchmark, state what is being practised by Volkswagen in the Asian / African Country-
HRM policies or Personnel Management or both?.....................................................................4
When it comes to hiring and firing do you consider the importance and significance of local
culture and HRM practice needs to be undertaken in general and the practices need to carry
out HRM in transnational/international-subsidiary.....................................................................6
Examine the differences in terms of employment laws when international HRM changes local
business systems..........................................................................................................................6
Use corporate examples of firms using good HR practices and literature to justify your stand.8
Recommendation.........................................................................................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Human resource management is defined as the management functions that is concerned
with hiring, motivating, training and management of the workforce in a company, HRM
practices and HR strategies is focus on people in the organisation. As per the academic accepted
definition, HRM is a personnel function which is obsessed with the acquisition, development,
reward and pay-off system and management of the employees of a company for an aim of
contributing towards the attainment of the organisational goals and missions. Volkswagen is a
German automotive company which is third bigger name in the EU nations in respect to the sales
revenue. Volkswagen trade under its parent company i.e. Volkswagen Group which serve and
ships its cars in the Asia, Europe and African auto-mobile market, the biggest car market for
company is China in Asia from where company generate 35% of its sales and profits (Zaid,
Jaaron and Bon, 2018). Company has overseas operations with diversify workforce which
needed to be managed effectively to achieve sustainable goals of the business. Therefore,
following report present the HRM practices and HR strategy in Volkswagen by analysing
personnel and HRM model along with key difference difference among HRM management and
personnel management by using Story's 27 point of difference as a benchmark to throw light on
the HRM practice in the Asian and African market. Following report also analyse the effect on
company's HRM practices in contrast to the regional and cultural aspects along with basic
employment law that come into existence because of Globalisation and impact the lever on HRM
practices of the company.
MAINBODY
Examine how value was created by the firm by using HR strategies. Use of concepts of strategic
HRM should be evident.
In a company which adhere its workforce as the most valuable asset for the firm, HR
strategies has extreme valuable to deliver the same. In the 21 century era where many companies
are struggling to get and attract skilled and competent employees Volkswagen us using strategic
HR practices in its human resource management as it lead a critical role in creating value for the
company. HRM practices can add value into the bottom line of the firm by using appropriate HR
strategy that meet strategical and tactical goals of the employers (Järlström, Saru and Vanhala,
2018). So, in order to attain business goals and add value to the organisation there is need to
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align HR strategies with the business strategies. Nevertheless, strategical HRM practices are link
between the Volkswagen human resources and business strategical which were developed to
improve business performance, to create a fit for purpose organisational working culture and
maintain flexibility in the working. Strategical HRM practices are important for Volkswagen
for the following motives
 To enhance the job satisfaction
 To maintain healthy working environment Aids in boosting productivity and retention capacity of the company.
HR strategies Talent acquisition and retention strategy
Volkswagen is a company known for its skilled and competent taskforce which was
successful by effective hiring and retention of talent strategy. It is huge duty of HR to built
strategies for creating a well planned system of the recruitment, attraction, selection , training
and retention of the valued and best employee for the longer duration.
 Performance management strategy
Volkswagen is largest automobile producer in the EU nations because of its well run
human resource department function of performance and people management. In performance
management, HR form strategies to boost productivity in the manufacturing process and lever
motivation among the people by offering sort of promotional and reward program (Wang and et
al, 2018). Consequently, the supreme manner in which HR personnel creates value for
Volkswagen by promoting link between the performance and people management by sort of
reward and recognition strategy.
Analyse the impact of regional and national culture on the practice of HRM of Volkswagen in
Asia and Africa country.
The Volkswagen company employees around 75k people in the Asian and Africa auto-
mobile market. Volkswagen is company that stands for diversity and equal opportunity to all the
employees. Withal, there are some geological cultural aspects which affects the HRM of Analyse
the impact of regional and national culture on the practice of HRM of Volkswagen in Asia and
Africa country Volkswagen in Asian and African market. Culture is major aspect which not only
affect the HRM practices but whole organisational operations in the Asia or African countries.
Regional culture affect the communication, motivation and people expectation of the work
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