Impact of HR Strategies on Value Creation: A Case Study of Volkswagen

Human Resource
Management

Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY.................................................................................................................................................3
Value created by Volkswagen by using HR strategies.............................................................................3
The impact of regional and national culture on the practice of HRM......................................................4
Organization’s model of employment and organizational levers used to create value.............................5
Storey’s 27 points of difference between HRM and Personnel as a benchmark......................................6
Differences in terms of employment laws when international HRM changes local business systems.....7
Importance and significance of local culture and HRM practice in general and in
transnational/international-subsidiary......................................................................................................8
Corporate examples of firms using good HR practices and literature to justify your stand.........................9
Recommendations regarding HRM practices to ensure the organizational performance.........................9
CONCLUSION.............................................................................................................................................10
REFERENCES..........................................................................................................................................11

INTRODUCTION
Volkswagen is an automotive industry and the headquarters are in Wolfsburg, Germany.
The company has its presence in the Asian countries. The report discuss about the HR strategies
of the company adding values to it. The impact of regional and national cultures on the HRM
practices are discussed. Organizational models of employment are used and the levers that create
values to the company are discussed. The Storey’s 27 points of difference between HRM and
personnel management is used as a benchmark to state the practice done by the Asian country.
The importance of the local culture is discussed on the hiring and firing in the company. The
practices that are done by the HRM in general are discussed and the HRM practices that are done
in international subsidiaries re also discussed. The international HRM when make changes in the
local market the difference in the employment laws takes place that are discussed along with the
examples of the corporate firms that are practicing good HR practices. Recommendations are
given to the employers of the Volkswagen regarding the HRM practices to ensure the high
performance.
MAIN BODY
Value created by Volkswagen by using HR strategies
The values of Volkswagen are created by the HR of the company by implementing
strategies that work best for the company (Haipeter and Jo, 2021). The HR strategy includes: Understand the business
The HR of Volkswagen need to understand the market force and trends of the
Asian country to know the impacts on their business strategy. They need to keep the
priorities of the business before making the strategy.
 Define HR strategy
The HR of Volkswagen need to provide a map on how the strategy will be
directed in a unique way to manage the company’s human capital while managing the
business related challenges and the related objectives of the company (Dovbnya and
Pysmenna, 2017).
The HR strategies should be effective so it can add values to the organisation with the
workforce of the organisation. The strategies will provide the guidelines to retain the
talent while competing for the new talent for the organisation.
 Segment HR customers
The HR can identify the workforce and train them for certain programs as well as
services for the development. The HR can observe the issues and provide the workforce
with tools they require for the better performance.

 Prioritise HR investments
The HR can identify and put efforts in making strategies for the areas where the
priorities of the organisation can be put first. The life cycle of the employees can be
considered and strategies can be made on the basis of the analysis of the cost, benefits as
well as the risk in delivering the rewards to them. This can improve the efficiency of the
work of the employees.
 Ensure right HR service delivery model
The current strategies can be monitored and changes can be made according to
their effectiveness in the alignment to the objectives of the company (Pollard, Karimi
and Ficcaglia, 2017).
 Establishment of right HR capabilities
Skills and development training can be conducted to meet the need of the current
strategies if it lack in fulfilling the desired results for Volkswagen. The required support
can be given to the staff to work efficiently.
 Build HR brand
Communication with the employees for the development of the strategies in the
organisation and obtain feedbacks to change if there is any loop hole in the strategies
(Shetty, 2018). Measure impact of HR products and services
Linking the corporate strategies, HR priorities and the performance measurement
of the HR for the development of the organisation. Implementation of a HR scorecard
can help in measuring the impact, values and the costs by the strategies.
The impact of regional and national culture on the practice of HRM
Volkswagen is developing with a great speed in the Asian country and this leave option
but to adapt according to the cultural changes of the country (Wijewantha, 2019). The regional
and the national culture of Asian country have a great impact on the HRM practices of
Volkswagen such as: Recruiting
Countries follow different recruitment policies for hiring employees that depends
on the cultural attitude of the country. Asian countries may use different cultures like
Ethnocentrism, Polycentrism and Geo-centrism.
 Selection
Asian countries use extensive selection process and in most of the screening
process psychologist make the employees aware about the different culture, work and
the style of living.
 Training and development
Employees have to go through the training process and the HR manager of the
Volkswagen have to deal with the struggle in training the employees from the different
culture like that from the Asian country.
 Compensation policy
The compensation policy of Volkswagen have to consider the aspects of tax,
retirement plans, pension scheme and cost of living of the Asian employees. The HR