Human Resource Management in Volkswagen - Report

Human Resource Management

Table of Contents
INTRODUCTION...........................................................................................................................1
Main body........................................................................................................................................1
Company 1: Volkswagen.......................................................................................................1
Company 2: HSBC.................................................................................................................5
Recommendations..................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Human resource management is a concept through which business become able to
manage all their workforce in an appropriate and effective manner (Alfes and et. al., 2013).
Hence, for dealing with diverse situation, managers need to recruit such personnel whom are
highly talented and accept all challenges, for this context, firms adopted concept of internal
human resource management perspective. “Recently economic globalisation has been rocked by
a series of political shocks, life is not what it was”. This statement stated for many business
association whom are working in United Kingdom and European Union and face so many issues
at the time of Brexit. This political shock is not appropriate for long term growth and thus,
globalisation impacted business badly. Hence, to deal with these problems, business need highly
skill employees but international human resource management face many issues or challenges a
such point of course which are: labour laws, political climate, values and attitude, language, role
of religion. The two major organisation on which project is based: HSBC and Volkswagen.
Main body
Company 1: Volkswagen
International HRM is a process of procuring and allocating resources effectively by
utilising them while integrating the balance and differentiation of HR activities at foreign
location. Volkswagen AG internationally known as VWAG group is an automotive organisation
is a German manufacturer. It was founded in the year 1937 on 28 May in Germany in Berlin with
100 production facilities in 27 countries. There are many innovations are taking place into
business with change in time frame and every time human resource manager enable business to
deal with such context properly. But there are several issues are determine which face by an
organisation at the time of dealing at HRM in internal perspective. Political situation is not stable
in nature at every place which stated that business have to modify there policies and procedure
with time frame. Along with this, economic condition always impacted on business operations.
Thus, several issues or challenges which face by IHRM are stated as follow:
Labour laws: International business is conducted in the maze of various laws and regulations
which enable an association to manage their diverse range of activities (Baum, 2016). Thus, for
multinational business association parent country have differ laws on the other hand at macro
environment laws are different. Thus, Volkswagen have to determine labour laws which are
incorporated in Germany as well as in European Union. Hence, when Brexit lead to take place it
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will also lead to made impact upon Volkswagen operations because there laws which are
incorporate for labours get change (Labour law, 2018). Labour laws can be a major issue for a
company in which they evaluated that at the time of Brexit all policies which are concerned with
employees get change in UK as well as in EU and thus create problem in front of VWAG.
Hence, this major issue or a problem have to deal by managers of a company in an appropriate
and effective manner so that better working practices could be promoted.
Political climate: Moreover, government also play an important role in order to manage
activities of multinational corporation (Brewster and et. al., 2016). Volkswagen is a German
based company which is democratic nation of a world. But when they start dealing in European
Union, there are various nations are already indulge into it out of which UK is a constitutional
monarch where Queen is a only personality whom have a right to frame laws and regulations.
Thus, this is another major issue for IHRM because, HR manager of a company have to under
take this consent in account properly and try to modify their work according to the nature of
government. Another major issue which face by Volkswagen is political-climate-change in
which Queen modify their working conditions at any time. A major change was determine at the
time of Brexit which was not appropriate for business and thus they lead to modify their internal
policies as well as external policies which are concerned with trading. Hence, it will create
barrier for employees to deal with and thus, HR manager of a company have to adopt suitable
steps to deal with.
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Illustration 1: Political climate
(Source: Landells, 2013)