Impact of HR Strategies on Value Creation in Volkswagen

INDIVIDUAL REPORT

Table of Contents
INTRODUCTION.......................................................................................................................................3
A) Examine how value was created by firm using HR strategies. Use concept of strategic HRM....3
B) Analyze impact of regional and national culture on practice of HRM in chosen country............4
C) Use appropriate organization’s model of employment and state organizational levers used by
firm to create value..................................................................................................................................5
D) Using Storey’s 27 points of difference between HRM and personal management as benchmark,
state practice by firm in Asian country....................................................................................................6
E) When it comes to hiring and firing do you consider importance and significance of local culture
and HRM practice need to undertake in general and practice need to carry out HRM in transnational/
international-subsidiary...........................................................................................................................7
F) Examine differences in terms of employment laws when international HRM changes local
business system.......................................................................................................................................8
G) Corporate examples of firms using good HR practice and literature to justify stand...................9
H) Recommendations regarding HRM practices to ensure organizational performance is high.....10
CONCLUSION.........................................................................................................................................11
REFERENCES..........................................................................................................................................12

INTRODUCTION
Human resource management refers to the practice of managing people that helps in
attaining better performance. It is the process of recruiting, selecting, inducting employees,
training and development, apprising performance of employees, deciding compensation,
encouraging employees, maintaining poor relations with employees etc. This report is based on a
multinational company from European Union or European countries that also have their presence
in Asian/ African market (Stewart and Brown, 2019). To complete this project Volkswagen is to
be undertaken that is a largest multinational car manufacturing company in Germany who works
under the European Union. This company also deals in Asian Market that helps in gaining huge
customer base along with high profitable results. To complete this report several aspects are to be
included that helps in reflecting recommendations at the end of the project. It reflects a HR
strategy that is used by company to create value. Therefore, it also includes the impact of
regional and national culture on practice of HRM within Volkswagen. In this employment model
is also explains that helps in creating values. In this model based on Storey’s 27 points that helps
in differentiate between HRM and personal management within Asian country. It also reflects
importance of local culture and HRM practice within transactional and international subsidiary.
At last it represents corporate examples of the firms that use good HRM practice and provide
recommendations that help in gaining profitable results to the firm.
A) Examine how value was created by firm using HR strategies. Use concept of strategic
HRM
Strategic HRM is an essential approach which reflects plan that leads to execute several
HRM functional areas. Strategic HRM defines to a HR that coordinates and consistent overall
business objectives in order to enhance overall organizational performance (Armstrong and
Taylor, 2020). In terms of Volkswagen, human resource manager adopts the use of several HR
strategies so that goals and objectives of business enterprise are attained on time. These
strategies are also useful to create the value within working environment that are demonstrated
below:
 Selective Hiring- It is one of the best human resource strategies which is used by an
business enterprise for developing the value of company in marketplace. In terms of

Volkswagen Company, human resource manager focus on hiring talented and skilled
candidate for a specified job profile that creates values to the firm by fulfilling the
demand of particular job role. Placing right candidate on right position helps in
gaining competitive advantage within marketplace. For instance- If Volkswagen.
Wants to hire a sales representative for this they need a person who have good
communication and listening skills (Banfield, Kay and Royles, 2018). To hire that
person company create value within marketplace by attracting number of customers
and profits.
 Fair and performance based compensation- It is another best strategy of HRM in
which an organization can evaluate the performance of workers and provide rewards
according to that. This will create long term value within business firm. In terms of
Volkswagen. Human resource manager focus on evaluating employee’s performance
timely and getting rewarded for their good work. This helps in satisfying employees
for a longer period of time (Chelladurai and Kerwin, 2018). Due to get high rewards
they effectively attend and attract customers so that they will retain for a longer
period of time. It directly develops the organizational performance.
 Offering security to employees- It is a crucial form of HR strategy within an
enterprise. Employment security is one of the major parts that help in retaining
existing employees and attracting talented one. This strategy is creating value of firm
in the eyes of employees and market (Berman and et.al., 2019). In terms of
Volkswagen. Human resource manager provides insurance facilities, accommodation
facilities that live out of their home country to work in the company. These types of
security helps in creating value of entity in employees eyes so that they present their
potential to high extent that indirectly creates value of Volkswagenin competitive
marketplace.
B) Analyze impact of regional and national culture on practice of HRM in chosen
country
National culture refers to the norms, behaviors, belief, customs and values etc. that are shared
by population of sovereign nations. It reflects as particular characteristics such as religion, racial,
language, traditions and many more. Regional culture refers to that culture that is link with the