Human Resource Management: A Case Study of Volkswagen

This report examines the role of human resource management (HRM) in the UK operations of Volkswagen. It explores the purpose and functions of HRM, including workforce planning and resource management. The report analyzes different approaches to recruitment and selection, evaluating their strengths and weaknesses. It also investigates the benefits of various HRM practices for both employers and employees, assessing their effectiveness in raising organizational profit and productivity. The report further examines the importance of employee relations in influencing HRM decision-making and identifies key elements of employment legislation and their impact on HRM decisions. Finally, the report provides a rationale for the application of specific HRM practices in a work-related context.

HUMAN RESOURCE MANAGEMENT
A Case Study of Volkswagen

Table of Contents
INTRODUCTION...............................................................................................................3
OVERVIEW OF THE VOLKSWAGEN ORGANIZATION..................................................4
LO1....................................................................................................................................5
P1 PURPOSE AND THE FUNCTIONS OF HRM, APPLICABLE TO WORKFORCE
PLANNING AND RESOURCES IN VOLKSWAGEN.....................................................5
M1 ASSESS HOW THE HRM FUNCTIONS IN YOUR CHOSEN ORGANISATION
CAN PROVIDE TALENT AND SKILLS APPROPRIATE TO FULFIL BUSINESS
OBJECTIVES USING APPROPRIATE THEORIES AND MODELS.............................6
P2 STRENGTHS AND WEAKNESSES OF DIFFERENT APPROACHES TO
RECRUITMENT AND SELECTION...............................................................................8
M2 EVALUATE THE STRENGTHS AND WEAKNESSES OF DIFFERENT
APPROACHES TO RECRUITMENT AND SELECTION USING SUITABLE
THEORIES AND MODELS............................................................................................9
LO2..................................................................................................................................12
P3 EXPLAIN THE BENEFITS OF DIFFERENT HRM PRACTICES WITHIN AN
ORGANISATION FOR BOTH THE EMPLOYER AND EMPLOYEE...........................12
P4 EVALUATE THE EFFECTIVENESS OF DIFFERENT HRM PRACTICES IN
TERMS OF RAISING ORGANISATIONAL PROFIT AND PRODUCTIVITY..............14
M3 EXPLORE DIFFERENT METHODS USED IN HRM PRACTICES.......................15
LO3..................................................................................................................................16
P5 ANALYSE THE IMPORTANCE OF EMPLOYEE RELATIONS IN RESPECT TO
INFLUENCING HRM DECISION- MAKING................................................................16
P6 IDENTIFY THE KEY ELEMENTS OF EMPLOYMENT LEGISLATION AND THE
IMPACT IT HAS UPON HRM DECISION- MAKING...................................................17
M4 IDENTIFY THE KEY ASPECTS OF EMPLOYEE RELATIONS MANAGEMENT
AND EMPLOYMENT LEGISLATIONS........................................................................17
1

LO 4.................................................................................................................................19
P7 THE APPLICATION OF HRM PRACTICES IN A WORK-RELATED CONTEXT..19
M5 A RATIONALE FOR THE APPLICATION OF SPECIFIC HRM............................19
CONCLUSION.................................................................................................................24
REFERENCES................................................................................................................25
2

INTRODUCTION
This report helps in the understanding of the human resource management role in UK
organization of Volkswagen. The concept of human resource management describes
the management related to the human resources of the organization for the purpose of
achieving the goals as well objectives of the organization by improving the performance
of the employees (Boxall and Purcell, 2011). It further helps in increasing the human
capital of the organization. The purpose and scope of human resource management as
well as the key elements in this resource management, its different practices are
discussed in this report for increasing the effectiveness of the Volkswagen by assessing
the main functions of HR. in addition to this, the planning, recruitment, selection,
development, training, and the reward policies are also discussed in this report.
3

OVERVIEW OF THE VOLKSWAGEN ORGANIZATION
Volkswagen is an automobile manufacturing company established in the year of 1937
for producing cars of low prices. It is headquartered at Wolfsburg, in Germany. Initially,
the operation of the company was undertaken and looked after by the Nazi organization
(Cavico and Mujtaba, 2016). The production of this company was expanded in the year
of 1950’s. These cares of the company gained the popularity after being represented by
the American agency of advertising. The Volkswagen group consists of the twelve
brands namely the Audi, Bentley, MAN, Porsche, Bugatti, Passenger Cars of
Volkswagen, Scania, SKODA, Commercial vehicles of Volkswagen, Ducati, etc. these
brands are of seven countries of Europe.
The services provided by the Volkswagen group banking, financing of the customer,
insurance activities, leasing, and the management related to the Fleet. The company
consist of the 120 plants of Production (Zhang, et al. 2016). The company consists of
the two divisions namely the automobile division as well as the division of financial
services. The mission of the company is to provide the customers with attractive as well
as environmentally sound vehicles for competing in the market.
Figure: Volkswagen logo
Source: Reuters, 2017
4

LO1
P1 PURPOSE AND THE FUNCTIONS OF HRM, APPLICABLE TO WORKFORCE
PLANNING AND RESOURCES IN VOLKSWAGEN
The operations related to the organization are affected by the number of people working
in the organization. The planning done with respect to the workforce of an organization
like Volkswagen will ensure the proper conduction of the operations of the Volkswagen
organization so that the operation can be handled as well as managed effectively. The
recruitment of the workforce plays a significant role in an organization (Brewster, et al.
2016). The potential needed for the candidate as well as the skills possessed by the
employees can further be enhanced and developed by using different practices for them
such as training, and also rewarding them with the bonuses, perks, increment in their
salary so that they keep motivated in ensuring the effective management of the
resources which will further help in achieving the objectives of the company for further
enhancement. This is the responsibility of the HR department of the company for
analysing as well as regulating the patterns of the workforce of the different employees
so that the further improvement in a pattern of working can be done.
Figure: Functions of HRM
Source: Chand, 2010
5

The position of the different staff members must be analysed so that the vacant
positions of the company can be filled. These vacant positions can be filled by the
conducting the recruitment process for the different candidates who applied for it. Their
strength must be analysed and the potential needed by the candidates must be
understood by the HR department for hiring the desired candidates (Wang and Shultz,
2010). These approaches must be looked into for implementing the operations of the
organization effectively. Also, apart from these, different issues related to the workforce
must be analysed for solving them in order to prevent hindrances of the working of the
operations of the management.
M1 ASSESS HOW THE HRM FUNCTIONS IN YOUR CHOSEN ORGANISATION CAN
PROVIDE TALENT AND SKILLS APPROPRIATE TO FULFIL BUSINESS
OBJECTIVES USING APPROPRIATE THEORIES AND MODELS
The functions of HRM with respect to the Volkswagen in providing the talent and skills
for fulfilling the business objectives can be done by assigning the jobs with respect to
the different roles as well as the responsibilities of the different types of employees for
analysing the needs of the workforce needed for carrying out the operations of the
organization. Further, the positions of the employees are identified for the purpose of
linking the objectives of the business (Armstrong and Taylor, 2014). The planning is
done with respect to the employees of an organization such as providing them with
training for further improvement and development so that their talents can be analysed
as well as identified in order to increase the efficiency of the employees of an
organization. The abilities of the different workers are utilised in an effective way for the
purpose of achieving the objectives of an organization.
The management functions of the organization deal with the planning done for
maintaining the human resources, different activities are organized with a view for an
effective implementation of the different strategies adopted by the organization (Iles, et
al. 2010). Further, the employees are given direction in conducting the efficient working
of an organization. The skills, as well as the talents possessed by the organization, can
be recognized by the HR department during their training session, their working
analysis, etc.
6

These were the functions of the HRM department for recognizing the talent as well as
the skills possessed by the workforce of an organization in achieving the desired
objectives of the business with respect to the organization.
7

P2 STRENGTHS AND WEAKNESSES OF DIFFERENT APPROACHES TO
RECRUITMENT AND SELECTION
The various practices were included in the different process of recruitment as well as
the selection in the HRM department. These processes play a significant role in
recognizing the desired candidates who possess high potential and skills in order to
achieve the objectives of the organization.
The selection process helps in selecting the desired candidate according to the
organization requirement (Furnham, 2012). The desired candidate selected for the
profile will help in easing the operations of the business by utilising its efficiency and
effectiveness in the desired field. Different approaches are available for conducting this
process of reaching to the desired candidates which are further described below:
Figure: Concept of Recruitment
Source: SHMA, 2013
8

EXTERNAL SOURCING
With the help of external sourcing, a huge number of candidates participate in the
recruitment process for selection (DeVaro and Morita, 2013). As the huge number of
people arrives, there are chances of the people possessing the potential and the skills
required for the job. As the Volkswagen Company is big, the candidate might spend a
lot of time in understanding the operating environment of the organization. The cost of
conducting the recruitment process is high as a large sum of money is spent on the
advertisement.
THIRD-PARTY SOURCING
The third party sourcing is the approaching including the third party who recognizes the
talents as well as the skills of the candidate and send them to the organization fulfilling
the needs of it (Haski-Leventhal, et al. 2010). Such parties are generally the agencies,
consultancies, as well as the company who does only the recruitment procedure. It is a
time-saving approach and also less cost is involved in it as the candidates pay only the
registration charges demanded by these agencies.
INTERNAL SOURCING
In this approach, the organization conducts the recruitment process within an
organization which not only saves the money but will also help in understanding the
different procedures as well as the policies associated with it (Holtbrügge, et al. 2010). It
does affect the productivity of the organization with respect to the different opinions
possessed by the different employees of an organization.
M2 EVALUATE THE STRENGTHS AND WEAKNESSES OF DIFFERENT
APPROACHES TO RECRUITMENT AND SELECTION USING SUITABLE THEORIES
AND MODELS
The different approaches conducted in the recruitment process are the internal
sourcing, external sourcing, and the third party sourcing.
The strength of the internal sourcing are described below:
9

 This approach saves a lot of time and also is a cost-effective approach.
 The skills, as well as the abilities possessed by the candidates, are already
known to the organization.
 The motivation factor helps in enhancing the performance of the candidate.
The weakness of the External sourcing are described below:
 The scope of the candidate is constrained within the organization.
 The entry of the innovative, as well as the new ideas, is prohibited.
 A candidate is selected on the basis of vacancy and not on the basis of skills
possessed by them.
 Sometimes, the desired candidate fails in impressing the recruitment department.
The strength of external sourcing is described below:
 The new employees help in bringing the innovative ideas.
 The new employees increase the productivity of the company as well as the ratio
of the profit.
 The new employees help in bringing the several opportunities for the company
towards growth and enhancement.
The weakness of the external sourcing is described below:
 High investment is made by a company for doing the promotion of recruiting the
candidates.
 An interview cannot judge the skills, capabilities, and the potential possessed by
the candidate.
The advantages of third-party sourcing are described below:
10

 The candidates recruited from this type of recruitment are often provided with the
guidance of the company.
 The third party sourcing helps in giving the personality testing of the candidate.
 An efficient relationship is established between the different candidates through
the third party agency.
The disadvantages of the third party sourcing are described below:
 This third party charge candidates with the cost of recruiting them.
 The lack of control is possessed by the third party as the agency has to read
again and again resumes of different candidates.
 There are also some communication issues encountered by these third-party
agencies.
11

LO2
P3 EXPLAIN THE BENEFITS OF DIFFERENT HRM PRACTICES WITHIN AN
ORGANISATION FOR BOTH THE EMPLOYER AND EMPLOYEE.
Volkswagen is one of the leading automobile manufacturing Company and
implementation of the different practices for managing the human resources play a
significant role in achieving the growth of an organization (Bratton and Gold, 2017).
These practices are undertaken by the employer as well as the employee. Different
types of practices of HRM include the soft as well as the hard practices for the
management as well as the conduction of the operations. These HRM practices are
further described below:
Capacity Building
The capacity of the Volkswagen organization can be effectively increased by the several
techniques as well as the strategies (Rowley and Jackson, 2010). The business
objectives are further achieved by implementing these strategies as well as conducting
the selection as well as the recruitment process for the organization.
Satisfaction of the Employees
The satisfaction of the employees can be analysed by seeing the performance of the
different employees so that further improvement can be done by understanding their
needs as well as the requirements (Rousseau, 2015). The satisfaction can further be
implemented by creating a healthy atmosphere in the organization.
Planning for charge
Different planning must be done in the different segments for a proper functioning of the
operations so that a brand image of the company will be created in the market thereby
increasing the productivity as well as the profitability of the organization Volkswagen.
12

Motivation
The employees of the company must be motivated enough for bringing the high
efficiency in the work (Blomme, et al. 2010). The encouragement must be offered to the
employees for their excellent performance, rewarding them with different perks, as well
as supporting them in case of conflicts.
Commitment Building
The commitment of the employees towards the work must be undertaken for improving
the productivity of the company and also it must be analysed for increasing the
efficiency of the rate of production.
Development and Training
Development and training did for the employee's help in providing them with the
required knowledge so their skills can be improved. This will ultimately benefit the
organization in reaching its goals. Different programs must be conducted by the
department for improving the functionality of the operations.
13

P4 EVALUATE THE EFFECTIVENESS OF DIFFERENT HRM PRACTICES IN TERMS
OF RAISING ORGANISATIONAL PROFIT AND PRODUCTIVITY
The effectiveness of the different HRM practices can be evaluated by the factor called
Return on Investment. This factor helps in determining the growth of an organization at
the different levels. The growth with respect to the employees can be attained by
providing them with the training so that the development of skills can be enhanced in
order to achieve the objectives of the business.
These training programs are related to the development of the employees with respect
to the operations, resource management, the level of production, etc. through these
programs, the knowledge of the employees is enhanced in achieving the growth of an
organization so that the services delivered to the people are of superior quality.
RETURN ON INVESTMENT is calculated by the formula net program advantage per
the cost of program multiplied by the 100 (Bessen, et al. 2011). The different methods
used by the department for improving the growth of employees are described below:
Shadowing
Shadowing involves the training given to the new employees by the older employees so
that their skills and the knowledge can be learned by them in an effective way. These
older employees possess the experience of the work and have been contributed a lot to
this company.
Mentoring
Mentoring involves the training given to the newly recruited employees by some
experienced people.
Job Rotation
The job rotation helps in assigning the job of the employees for different types of fields
over some period of time so that the knowledge from all the fields can be gathered
together. The knowledge about the different fields will help in the development of the
employee as a whole in working with this organization.
14

Coaching
Coaching is given by the manager to the employees as well as the other staff members
for understanding their duties as well as the roles in order to ensure the smooth working
of the operations of an organization.
M3 EXPLORE DIFFERENT METHODS USED IN HRM PRACTICES
The Volkswagen organization uses different types of HRM practices namely the
commitment building, high motivation, building capacity, satisfaction of the employees,
and the training and development plan. The training and development sector of the
Volkswagen organization helps in giving the training to their employees in order to
increase the growth of the company as well as also for the development of the skills and
abilities needed for the efficient working. These training programs given by the
Volkswagen will help in attaining the knowledge of the required field. The satisfaction of
the employees regarding the strategies adopted by the organization is ensured in order
to analyse the performance of the employees towards the growth of the organization.
Further motivation is given to the employees of the Volkswagen for increasing the
productivity of the company by introducing and delivering them with perks, incentives,
and the different types of rewards so the interest of the employee towards working in
the organization remains in it (Long and Perumal, 2014). By not providing the
motivation, the growth of the company will be limited. The capacity of the organization
workforce is further increased by doing the recruitment of the new and the desired
candidates who possess skills and potential for doing this job so that the goals of the
organization are achieved. In addition to this, the strategies must be developed by the
organization Volkswagen for building the commitment of the employees in the work.
These human resources practises are used by the Volkswagen organization for
improving the efficiency as well as the productivity of the company. Also, with the
application of these strategies, a brand image of the company will be established in the
market as well as the market share of the company will be increased.
15

LO3
P5 ANALYSE THE IMPORTANCE OF EMPLOYEE RELATIONS IN RESPECT TO
INFLUENCING HRM DECISION- MAKING.
The efficient working of an organization is further affected by the relations build by the
employees. This can be understood by the ITV which television network is serving the
different types of services to the people across the UK. The concept of developing ITV
network within an organization will help in bringing the working environment which is not
only healthy but will also is strong enough to solve the problems encountered within the
organization (Hartmann, et al. 2010). The productivity of the organization as well as of
the employees is further affected and influenced by the relations of the employee with
an organization. If the relations are healthy then the productivity of the company will get
increased.
The decision-making process is further affected by the strategies being adopted by the
employees for carrying out the operations of the organization. This also helps in
bringing the satisfaction factor to the employees (Dixon-Fowler, et al. 2013). The
security of the organization is also concerned by the department and is not ignored by
the department. Further, the motivation factor helps in analysing the performance of the
employees towards the productivity of the company. The involvement of the employees
in the process of making the decisions must be done so that they are considered part of
it and feel respected and their opinions matter to the organization.
16

P6 IDENTIFY THE KEY ELEMENTS OF EMPLOYMENT LEGISLATION AND THE
IMPACT IT HAS UPON HRM DECISION- MAKING.
Employment legislation is being implemented at the organization for the employees of
the organization for the purpose of carrying out the conversation regarding the
employees’ salaries, trade unions, establishing the industrial relationship with the other
companies, etc. a legal relationship is also maintained between the two parties namely
the employee as well as the management department of the organization. Different
laws, as well as the legislation, were also set up for the employees for the purpose of
achieving the goals of the organization.
The Equality Act of 2010 helps in bringing the principle of equality for each employee of
the organization so that each employee of an organization are treated equally for
maintaining a healthy environment in the organization (Cascio, 2018). Further, the
employees are not discriminated on the basis of colour, religion, race, or sex. The
department head also ensures that no discrimination will be based on any of these
factors (Act, 2010). The employees are motivated by bringing the excellent performance
of an organization by offering them with promotion, perks, rewards, and incentives.
The Data Protection Act of 1998 is also followed by the organization for preserving the
information of the employees. For others, the authorization is restricted to such
confidential information.
M4 IDENTIFY THE KEY ASPECTS OF EMPLOYEE RELATIONS MANAGEMENT
AND EMPLOYMENT LEGISLATIONS
The key aspects of the employee relations management help in building a healthy
environment for working in the organization. The healthy relation built within the
organization helps in bringing the high productivity of the organization; as well as the
efficiency of the employees in the conduction of the different processes of the
organization becomes smoother (Kompaso and Sridevi, 2010). Further, the involvement
of the employees in making decisions for the organization will develop a sense of
feeling among the employees of the organization that their opinions matters with respect
to taking the decisions.
17

The key aspects of the employment legislation include the equality act for the
employees in which each employee is treated equally by the organization as well as the
other staff so that the performance of the employees can be enhanced and can work
better for the organization. The data protection act of the employees will ensure the
safety of the information of the employees by means of restricting the authorization. The
employees are further motivated toward the work by rewarding them with different types
of perks, incentives, and other such rewards.
18

LO 4
P7 THE APPLICATION OF HRM PRACTICES IN A WORK-RELATED CONTEXT
M5 A RATIONALE FOR THE APPLICATION OF SPECIFIC HRM
The Human Resource Management has several applications in which there are certain
applications or tasks which could be only managed through the involvement of the
Human Resource Management Department which further help in achieving desired
objectives in the future time of the companies like Volkswagen. The description of the
Human Resource Management practices along with the rationale has been explained in
details as follows:
1) JOB ADVERTISEMENT AND SPECIFICATION
A great start has been waiting for the people who wish to initiate their professional
life in the automobile industry for gaining substantial growth and accomplishment in
the future. We are announcing that there are several job vacancies in the
Volkswagen for the job designation of Assistant Manager and Sales Executive at the
location of London. The aim of the organization is to assist people in gaining
substantial development and it is an irresistible opportunity for them.
JOB DESIGNATION - Assistant Manager and Sales Executive
19

EXPERIENCE – An experience of 0 to 2 year along with a general knowledge of the
automobile industry and the management activities
QUALIFICATIONS – Automobile Engineer/ Masters of Business Administration/ or
any relevant degree which linked with the automobile as well as management field
along with high proficiency in English
REQUIREMENTS – The people who have the keen interest in joining the job should
possess adequate understanding and knowledge of the company, the management,
and general norms and guidelines in sales and management. Moreover, the person
who possesses an exceptional experience and proficiency in the English language is
mostly preferred.
NOTE – The resume could be sent to the company email
[e-mail] and for any other queries please contact us on
the email.
(Volkswagen, 2018)
2) AN EXAMPLE OF SELECTED RESUME
ABC
35xx5, King St.
London, UK
Email ID – [e-mail]
CAREER AIM
Wish to achieve a position of Assistant Manager in Volkswagen. Possess adequate
knowledge and understanding of the sales and management which would be helpful
and effective for the organization as well as self-development.
SKILLS
20

 Fluent communication abilities
 Effective customer relationship management
 Management Skills
 Effective in handling customers
 Operational knowledge and fast billing
EXPERIENCE
Works as a Sales Manager for 1 year in a Supermarket
ACADEMIC QUALIFICATION
Bachelor’s Degree of Management
PERSONAL INFORMATION
Name- PQR
Father’s Name – STU
Address - 35xx5, King St.
HOBBY – Reading, Gaining knowledge, and exploring things
DECLARATION
I hereby declare that the aforementioned information has been genuine and it is
correct as best of my belief and knowledge.
SIGNATURE
DATE -
3) INTERVIEW QUESTIONNAIRE
The Human Resource Management Department of the Volkswagen will be conducting
the recruitment with help of direct interview that possesses certain questions. The
information regarding the applicant will be gained along with their opinions and beliefs
regarding future and career. The questions of the interview are presented below:
21

 Aim and objective of the life
 Are you comfortable with the work timings?
 In what terms you can define yourself better than others?
 In a scenario where you have to pick a choice between two customers whom would you
choose and why?
 Could you handle the work pressure and remain calm during the interaction with the
customers at stores?
 What are your short-term and long-term goals?
 How would you assign work to the trainees or subordinates?
4) OFFER LETTER
OFFER LETTER
20th May 2018,
Mr PQR
London, UK
Dear applicant,
Hope you are good. We Volkswagen are highly pleased to inform you that you have
been selected for the permanent job in the company on the job designation of Sales
Executive for the branch at London. Also, we are expecting a reply from you
regarding the acceptance of the job designation in next two working days. The salary
that will be offered you is 20,000 GBP per annum that will be given on the basis of
22

your performance and sales. When you approve of the job then your joining date
would be sent through the mail in the next week. For any query, please contact us at
the mail or website.
Sincerely
HR Manager
Careers Volkswagen
5) The processes which are conducted under the HRM practice are fruitful and effective
in accomplishing the organizational objectives and also achieving effectiveness in the
market. The rationale for the HRM practices states that the appropriate practices for the
functioning of the organization. The HRM practices are majorly utilized for the
recruitment and selection of the candidate. Initially, the job specification has been
designed in order to brief the candidates regarding the vacant position in the
organization. In addition, a format of a CV is presented so that the candidates could
present an appropriate CV. Further, the preparatory notes for the interview are
conducted for gaining substantial candidate. At last, the job offer is made to the selected
candidate.
23

CONCLUSION
It has been comprehended from the aforementioned study that the human resource
management practice played a major role in the functioning of the organization. The
effectiveness of the human resource management practices could be observed in the
success and development of the organization in different areas. The knowledge of the
human resource management practices would be applied in future at the appropriate
situation for experiencing the desired outcomes.
24

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