Importance of Local Culture and HRM Practices in Hiring and Firing

This report discusses the importance of local culture and human resource management practices in the hiring and firing process. It explores how cultural factors influence recruitment decisions and the impact of HRM practices on employee termination. The report focuses on the case of BMW, a German multinational company operating in India, and highlights the strategies used by the company to create value through HRM. It also differentiates between HRM and personnel management using Storey's 27 points and provides recommendations for enhancing HRM practices.

Human Resource
Management

Table of Contents
Introduction .....................................................................................................................................1
Task .................................................................................................................................................1
Discuss how worth was created by the company using HR strategies...................................1
Evaluate the outcomes of regional & domestic culture on the practice of human resource
management............................................................................................................................2
Discuss the organisation's model of employment and also state the organisational levers helps
in creating value.....................................................................................................................3
Differentiate between Human resource management and personnel management using
Storey's 27 points....................................................................................................................4
Discuss the importance of local culture and Human resource management practices when it
comes to hiring and firing of individual................................................................................5
Explain the difference in employment law at the time of international HRM changes local
business system......................................................................................................................6
Use corporate examples of firms using good HR practices and literature to justify your stand.7
Discuss what suggestions/recommendations can be made by employers regarding HRM
practices to ensure that the organisational performance is high.............................................7
Conclusion ......................................................................................................................................8
References .....................................................................................................................................10

Introduction
Human resource management the activity involves controlling & managing human
resource in the organisation also training, motivating and compensating them effectively. The
main focus of human resource management is hiring right or skilled people for the right job in
the organisation, it involves availability of skilled employees also enhancing the performance of
existing employees by providing training giving regular feedback in the organisation. In this
report Bayerische Motoren Werke commonly known as BMW is taken as the base company
which has their headquartered in Germany and having presence in India also. BMW is one of the
top German international company manufacturing expensive cars and motorcycles. The BMW
was founded in 1916. The company is one of world's fourteenth largest producer of automotive
vehicles. This report covers detailed description on how values are created by company using
human resource strategies with outcome of regional & domestic culture on the practice of HRM
also administration model of employment is also highlighted above. In addition to this difference
between HRM and personnel management using storey's 27 point and HRM practices needs to
be considered when it comes to hiring and firing and also the difference in case of employment
laws. Further more various HR practices used by the company and various recommendation that
can be given in order to enhance human resource practices is also highlighted.
Task
Discuss how worth was created by the company using HR strategies.
Human resource management is process of ensuring availability of skilled human
resource in the organisation also managing and controlling existing human resource by regularly
evaluating their performance and providing required training to to them in order to develop their
skills (Adams, 2018). Human resource department needs to carefully manage its existing human
resource using various human resource strategies. It includes companies properly well evaluated
plan in order to manage its human resource, it helps in proper execution of various functions of
Human resource like hiring, selecting, training, enhancing performance, motivating and
compensating employees (Amirnejad and Azhdari, 2019). In context to the chosen company,
BMW company focuses on developing their employees and formulating best strategy for them,
human resource strategies touches all the functions of human resource management which helps
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in creating value by the company and increasing performance and profitability are discussed
below:
Learning and improvement: Human resource manager needs to ensure that employees
are regularly engaged in regular learning which helps then to grow effectively. In context to the
company engaging employees in the learning and developing them regularly in the organisation
helps in improving performance of employees and creating value (Billings, 2018) .
Compensation management: The employees are required to be compensated effectively
and efficiently by the human resource manager in order to be motivated and to create value in the
organisation. In context to BMW, human resource department effectively manages the
compensation of its employees in order to create value in the organisation.
People management: Human resource manager needs to ensure that people of the
organisations are managed effectively. In context to BMW company, human resource manger
needs to ensure that people at both the location in Germany and India are managed effectively at
right individual is attracted for the right position.
Performance management: The main area of focused by the company is evaluating
performance of the employees at both locations regularly and also providing regular feedback to
them in order to enhance their skills.
Evaluate the outcomes of regional & domestic culture on the practice of human resource
management.
The regional and national culture are the different norms, values and belief which can
effects the functioning of human resource management in the organisation. The national and the
regional culture effects the various facts of companies human resource department and its
policies also human resource administration and performance evaluation of the employees. The
national and regional culture has the immense effect on the norms, values, attitude of the
individual of the particular region or nation . Company needs to analyse that the culture
difference plays an important role when they are shifting from their regional culture to any other
culture. In context to the BMW, when company is shifting from Germany to India the culture is
effect their functioning and human resource department, so human resource department needs to
carefully study the culture difference in order to enhance their productivity, the outcomes of
regional and culture on the practices of human resource management are discussed below:
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Training and learning: The human resource department ensures that each and every
individual is getting proper training as per their requirement to enhance their skills and
development (Chakraborty and Biswas, 2019). In context to BMW, the company has considered
training and learnings the essential part of their management and culture at both the locations as
the both the countries has their own culture, the employees at the company are motivated to
share their knowledge among each other in order to enhance their confidence, the company is
relay on the effective training and development program. The regional and cultural factors of
both the countries needs to be carefully monitored by the company to carry out their HRM
practices in case of Indian national culture factors the more focus should be given on the training
and development by the company. (Chelladurai and Kerwin, 2018).
Performance management: The practice of human resource management is performance
management, it is the process of regularly and effectively measuring and analysing the actions or
performance of the employees in order to enhance their skills. In respect to BMW, company's
main focus is on developing high level performance of employees and measuring the
effectiveness of the management and its employees. The company uses various performance
tools like performance evaluation process, 360 degree model to effectively measure the
performance of its employees at both regional and cultural level, the regional and national
culture allows companies to effectively improves performance of its employees in order to deal
with the dynamic changes .
Recruitment process: One of the important practice of human resource management is
recruiting skilled and talented candidates in the organisation. The recruitment is the process of
hiring or recruiting right or skilled individuals for the right job. In context to BMW, the human
resource manager of the company ensure that while recruiting individual at both the locations
their values and the culture is given the highest priority by the company as individual at different
locations has their own set of values and culture with addition to this the loyalty, honesty, and
handwork of the individual is considered as the top most element in the recruitment process.
BMW is one of the top company offering luxury cars and motorcycle which is attracting large
number of workforce world widely. The culture at both the places are equally important for the
company proper study of the culture of both then locations needs to be done in order to enhance
their productivity and profitability. (Clark, 2018).
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Discuss the organisation's model of employment and also state the organisational levers helps in
creating value.
The organisation's model of employment plays an very important role in the organisation,
and effective use of theses models helps in generating effective value in the organisation also the
organisational levers helps in the creating and generating value in the organisation which will
help enhancing performance and productivity of the organisation (Daft, 2021). The organisation's
model of employment in context to the chosen company are discussed below:
Competitive employment model: It is the model which helps companies in enhancing
their performance and gaining competitive advantage for the company, it helps in providing
various support activities and services in order to maintain the employment of the individual in
the organisation. The competitive advantage works as the best tool in order to maintain the
growth of the company in the competitive environment. In Context to the company this model
can help company to gain competitive advantage in the highly competitive market and enhancing
their performance and profitability (Dubin, 2017).
Supportive employment model: The another organisational employment model is
supportive model, this model helps in supporting employees in case of various challenges, and
helps them in gaining competitive advantage in the marketplace. In respect to the chosen firm,
the supportive model can help the company to get various strategic support needed in order to
enhance their performance and increase their sale and also to gain competitive advantage in the
marketplace.
Customised employment model: The last organisational employment model is
customised employment model, this model is a people centric approach, this model focuses on
one person at a time, its is an personalised approach to vocalised support and services in the
organisation. This approach focuses on the supporting employees and their services. In respect to
the BMW, this approach can help company to focus on each and every employees and enhance
their performance accordingly in the organisation. This approach also helps company to support
their employees and improve their performance accordingly (Harmon, 2019).
Differentiate between Human resource management and personnel management using Storey's
27 points.
Basis of difference Human resource Personnel management
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management
Training & development In case of human resource
management, the training and
development programs are
controlled and managed by the
well developed professional
teams or companies, company
outsources their trainings and
development programs to
learning companies.
Under personnel management
the training and development
process is controlled and
management by the company
personally, personnel
management has direct control
over the training and
development process (Hayes,
2018).
Job design The job design under the
human resource management
is on the basis of teamwork in
the organisation.
Whereas in case of personnel
management the job design in
the company is on the basis of
division of labour.
Management role Human resource management
is one of the essential function
of the management, so the role
of management in case of
human resource management
is transformational leadership,
it focuses on the leadership in
the organisation.
Whereas in case of personnel
management the role of
management is transactional as
compared to the human
resource management the
personnel management is
transactional in nature as it
involves personal interaction
between management and the
employees.
Communication In case of human resource
management there is direct
flow of communication
between the manager and the
employees, it allows the
smooth flow of
In case of personnel
management there is indirect
flow of communication in the
organisation, there is no direct
communication between the
management and the
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communication in the
organisation.
employees (Hee and Jing,
2018).
Discuss the importance of local culture and Human resource management practices when it
comes to hiring and firing of individual
The local culture and human resource management plays an important role in recruiting
and firing of employees in the organisation, the main functions of human resource management
is hiring and selecting the right candidate for the right job. The company is moving to different
culture company can face various challenges. Hiring is the process of selecting the individual on
the board and selecting the right candidate helps in increasing the efficiency of overall
management so it becomes an important task for the human resource manger to correctly hire the
right candidate with the right skills and ability to adapt in any culture, where as the firing is the
process of terminating an employee from the job can be because of any inappropriate act done by
him or can be due to any reason (Jacoby, 2018). The local culture plays and important role in
hiring and firing as there are various cultural factors like attitude, behaviour, norms and value of
an individual which directly influences the behaviour or characteristics of n individual any
having strong command over the various cultural factors can be benefited for the employee and
vice versa . In case of HR practices like training and development, performance management
and so on. Having improper training or lack of skills or having poor performance can lead to
termination of employees in the organisation also having proper training and development and
good performance can lead to growth of an individual and also enhancing performance of
individual and organisation while hiring and firing at the both the locations the human resource
department needs to carefully analyse the local culture of India in order to enhance their
productivity and profitability. (Katz and Green, 2018).
Explain the difference in employment law at the time of international HRM changes local
business system.
When an organisation operates its business at a global level it will face many changes
related to rules and regulations. For success of any organisation its very important that an
organisation do work under control and follow all rules and legislations regulated by
government. In context of BMW, they operate its business word wide and face a dynamic
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environment. Its management adopt various effective strategies which helps in facing these
changes and smoothly perform its business operations. In context of selected firm they needs to
follow all rules and laws of that country at which they operates its business (Kavanagh and
Johnson, 2017). Various employment law which will cause change in local business are mention
below:
 Employment and labour law- In context of selected firm, its headquarter is in Germany
and they successfully follow the the employment and labour law 2021. it refers to a
legislation which is govern by government of Germany. This law includes common
issues in employment and labour laws and regulations, various terms and conditions of
employment, employee representation and industrial relations, discrimination and so on.
One of the reason of company success is that it follow all rules and regulation related to
their employees which helps in creating a good brand image. But company face
difference in employment law at the time of operating its business operations in other
countries. If company wants to achieve higher growth in that market they needs to
understand that country laws and do work under these laws (Khurshid and Darzi, 2016).
 International trade compliances- In context of selected firm, it operates its business at
global business which includes import and export of business. Rules and regulation
related to imports and export of goods and services are different from country to country.
So selected company needs to understand all these rules and regulations so that no barrier
can occur in the path of import and export goods and services.
Use corporate examples of firms using good HR practices and literature to justify your stand.
According to the AIHR report (2020) HRM practices should be done by concerning the
needs and business model of the organization along with the satisfaction of employees needs. It
should be related to the business strategy. Such as HR manager have to manage selection of the
best staff for their organisation job role and they have take care of their employees satisfaction,
by providing best environment, security, training and reward's. Below is the explanation of some
HR practices use within the selected organisation (Luo and Tung, 2018).
Selective hiring- One of the most important practices of HRM is selective hiring of the
employees for organisation by analyse and evaluating the selective skills of the job role
candidates. BMW is using most effective method of employment , most initially the internal
recruitment process.
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Training and development – This is another most important practice of the HR
manager, which involves the proper analysis of the employees performance and skills
development needs, which can be further proceed with selective training and development
programmes on the basis of improvement requirements. BMW use regular training and
development program's on the basis of changing technology.
Reward's and motivation- HR of every organization have to take care of their
employees satisfaction and achievements through which they can retain them for longer period
of time by building strong relationship. BMW objective is to keep long term relationship with
their employees due to which HR manager manage effective practices of compensation and
insensitive (McPherson, 2017).
Discuss what suggestions/recommendations can be made regarding HRM practices to make sure
that the business performance is high
Business organization is involving different functions for the achievement of their goals
and in order to achieve all that objective effectively on relevant cost organisation HR manager
have to make right steps and decisions some of the recommendation is given below in context to
the selected organisation (Moutinho and Vargas-Sanchez, 2018).
Align HRM practices with external and internal factors- BMW HR manager can
consider current strategy's of organization, related to the external factors. Along with the
analysis of return expectation of organization related to the training and development
investment. In order to select most effective and productive HRM practices (Nicholas and
Steyn, 2017).
Talent management strategy should be done on the basis of company overall plan
Be proactive – In order to manage the most effective workforce, HR manager of BMW
have to develop best talent management strategy's or process which should related to the
overall business plan. This is important because all the talent management programmes if
for success of the business operation (Presbitero, 2017).
Evaluate the right area of training- In order to get success in the management of
higher performance of organisation. HR manager have to effectively manage the
productive employees by providing them specific training at the particular area of
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improvement. Through this cost of the training and development is can also be save by
reducing the investment on unnecessary place.
Use of different tools to asses capability of workplace - HR manager of the
organization should use different frameworks and tools of the employees performance
and capability assessment in order to take right decision for improvement and
encouragement (Rana and Malik, 2017).
Conclusion
From the above report it can be concluded various functions of the organisations needs to
be effectively managed in the organisation. The human resource management includes hiring,
selecting, training and development, motivating and compensating of employees in the
organisation. The human resource management ensures that the right candidates or skilled
candidate is at the right place in the organisation also it involves regular evaluation of
performance of the employees. In the above report, how values can be created by the company
using human resource strategies with outcome of various culture on the practice of HRM is
highlighted also various organisational model's of employment are also discussed in the above
report. In addition to this, difference between human resource management and personnel
management using the Storeys 27 point also importance of hiring and firing when it comes to
importance of local culture and human resource practices is also explained. Furthermore the
difference in employment laws when international HRM changes and also firms using various
HRM practices with recommendation is also highlighted on the above report.
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