MercedesBenz Human Resource Requirement and Management

This report discusses the contribution of HRM in developing sustainable performance at MercedesBenz. It covers the key factors impacting HRM decision-making, recruitment and retention practices, and the effects of changes on HR. The report also highlights the impacts of internal and external factors on HRM and the critical aspects of managing employee performance. Course code and college not mentioned.

UNIT 3 : MERCEDESBENZ
HUMAN RESOURCE
REQUIREMENT AND
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Explaining the main areas of HRM in contribution to develop sustainable performance...........3
HRM practices in relation to retention and recruitment of employees........................................5
Review of the effects of changes on human resource..................................................................7
Impacts of internal factors on HRM............................................................................................9
Impacts of external factors on HRM..........................................................................................10
Human resource practices in organization for improvement in sustainable performance.........11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Human resource management is the practice which is based on the process of
recruiting and training right individual for performing job. The HR hires adequate and
skilled employee for which may improve the overall productivity and efficiency by
performing task and activities. It also plays vital role in management of people at the
workplace culture. Mercedes-benz is German luxury as well as commercial vehicle
automotive brand, it was established in 1926 (Saeed and et.al., 2019). they produce
such luxury vehicles which is badged under Mercedes-Benz and the commercial
vehicles are heavily badged and maintained by Daimler lorry which is former part of
group.
This report will execute the broad areas which will discuss organization human
resource management functions for achievement of business objectives and
organizational performance. It will also discuss its key factors which impact human
resource management decision-making on the basis of adequate recommendations.
This will provide on the basis of examples to illustrate their support organization and
talent development. Further, in this report, it will be discussing critical aspects of role of
recruiting and retaining of skilled employees from the availability of labour markets. By
the end of this it will determine strengths and weakness of HRM practices referring to
SWOT analysis, it will make justifications regarding with sustainable organizational
performance with illustrations.
MAIN BODY
Explaining the main areas of HRM in contribution to develop sustainable performance
Sustainable human resource management refers to adoption of HRM tactic and
practices which enables the achievement of social, financial and ecological aims. It
impacts inside as well as outsider the organizations and on long-term time horizon it
controls for unintended side effects. The sustainable HRM refer to method which social
and human outcomes contribute to continuous process of organization in long term
which can be referred to sustainable organization. Similarly, the functions of HRM
ensures that Mercedes-Benz is able to achieve success through skilled people. Human
resource management helps to improve their organization effectiveness and ability to
develop their capacity to form the best use of resources available to them (Sardi and

et.al., 2020). On positive note it is essential for company to adopt with hrm policies and
grow to higher extent in industry. Human resource management is alinged with process
which starts with recruitment and hiring. Similarly, HRM is highly concnerned witht
adequate measures of providing the effective training and developmental aspects. They
maintain structural and organization culture in workplace by promoting through
monitoring various terms aligned to develop the better result for the organization. On
the other hand it may negatively impact on the organizational performance in the
situations when it is not favourably met with the recruiting methods. The functioning of
HRM retains great influence in success criteria and overall expansion of Mercedes-
Benz. The employee grow their skills so the company automatically drive to make the
sustainable performance in industry. There are various functions of Human resource
management which enables to make better lucrative outcomes. HRM enables smoother
functioning of organization, the process of these starts with developing right policies for
job requirement and sum up with ensuring success driven factor of overall business.
There are various HRM functions such as hiring and recruitment, training, employee
relations, maintaining company culture, employee benefits, safe working environment
and managing disciplinary actions.
Each of the human resource management functions are lucrative for
organizations, whereas in recruitment and selection process it allows Mercedes-Benz to
execute well-trained and professional workforce having such innovative thinking and
soft skills (Otoo, 2019). This may help organization to achieve their strategic and
financial objectives. Further, in the process of training and development it may impact in
two ways such as training strengthens the skills which is adoptable and also it improves
their satisfaction with present employment and workplace. The training and
development are focused to make effective contribution to growth of individual and for
the organization like Mercedes-Benz it is mandatory to have the skilled workforce to get
the result in higher level of extent. Also, the company adopts the training and
development program in which it procures the leadership development programme for
the duration of five months for management staff. Such programs ensure that all leaders
must be able to communicate their vision and motivate to develop others as well.
Whereas such programs are highly effective for their employees in which company wills

to build team with higher level of motivation and fully competent. This will reflect
employee to improve on their weaker skills and further development of new skills allow
them to design new and differentiated product from others.
Managing the performance of employee is the most favourable with functioning
of Mercedes-Benz human resource management. The department of the company work
on crucial aspects to make the valuable outcomes for company and increase their
stability. While being as the top most valuable brand across the world are concerned
with logical term of skilled workforce. These skilled workforce are relevant to make their
effective contribution to company by formulating the critical thinking and innovative
measures to drive the sudden technological concerns in business. Innovation improves
the fundamental for business to expand its business to great extent (Alsafadi, and
Altahat, 2021). So the basic human resource function of Mercedes-Benz drive the
sustainable performance of business and covers all the aspects of those functions to
increase its market share and valuable image in industry. It also contributes to the
employee and leaders to enhance their performance and comfortably engage
themselves in business operations and it develops to retain them as well and be part of
positive working environment.
HRM practices in relation to retention and recruitment of employees
The recruiting and retention are the key factors in organization that varies to be
consider by the human resource departments. While recruiting the right employee for
job and such hiring process requires more attentive process to formulate the better
employee retention. The positive work culture highly impact on such employees which
develop the source of motivation among them to work more willingly and make better
interactions with each other. On the other hand Human resource management practices
are essential to procure as source of motivation to them as well as in retention of
employee. The retention of employee is essential for company to make effective
turnover ratio which may develop the competitive edge for business in respective
industry (AM and et.al., 2020). The higher concerns regarding to employee retention
rate are solid instrument which reflects working aspect for organization. This will not
only result to motivated and hard-working employees as well as to rewards organization
with positive and attractive reputation.

Human resource practices, the process of selecting and recruiting staff is to be
presented with HR practices which relates with key factor to organizational success.
There are various hr practices which covers the overall aspects of functioning, working
and effectiveness in terms of motivating employees and organizational performance.
While elaborating to the major factor aligned with process of employee retention is
providing increasing the level of job satisfaction among them. It is essential to formulate
such policies which contribute to employee motivation which encourage them to work
effectively to achieve the business aims and objectives. There are some Human
Resource practices which formulate the process of employee retention as well as
motivate them to work in providing efficiency in task by clear understanding of
responsibilities. HR should be involved in activities of their business strategy
implementation and planning, they are also applicable to accelerator of honest and
open employee engagement. There are some methods which contributes to the
employee retention.
Creating favourable working conditions -
The working environment is designed in manner which will promote and satisfy
the basic requirements of individual and encourage them to work profitably and stay
intended. Providing them with all necessary wants can lead developed workforce
productivity as well (Stone, Cox and Gavin, 2020). The positive workplace culture
influence employees to stay motivated and work willingly in organization. Teams and
interactions with others in such culture introduce fundamental consequences for
business and form the valuable image for business in industry which it operates.
Compensation and benefits -
These benefits are also part of human resource practices, such benefits are the
major concern for making employee retention most favourable aspect. Benefits or
rewards are the advantages for employees which boost their morale and level of
satisfaction for the job. Such employee influence others as well to work effectively and
support in forming better result. While in such situations' employee tend to work higher
due to motivational terms. On the other hand, before hiring the people it is essential for
manager to research the market pay rate for the suitable position and offer the
employee with same. In this process employees are informed with salary for probation

and dafter probation period which enable them to know about certain benefits they are
being offered from job regarding to their salary concerns.
Recognizing employee contribution -
In workplace each and every one wants to be recognized for their work and
promoted to further increment. In Human resource practices such recognizance are
significant for employee retention whereas most of the organization lack with measures
and formulates the poor working conditions. The positive impact of this service
encourage individuals and allow them transparency around such clear and effective
policies are more familiar to win employee retention.
Measuring performance -
The measurement of such hired employee is essential to make the competitive edge in
business environment. While monitoring progress helps to form the mistakes and errors
being served by them and providing them with guidance enable to improve the work
efficiency and lucrative terms for organization. It boosts the overall concerns for
performance as well as productivity to drive competitive pros. Overall, it can be seemed
towards their requirements as well, the needs attempt to make retention scale much
convenient for individuals. Human resource may form better strategy implementations
and responsible for measuring the working progress, engagement and difficulties they
are lacking with.
Review of the effects of changes on human resource
The transformation of the organization which takes place within its life tenure
through time to time alteration in different process is referred as a change in the nature
of organization. Alteration in the activities and functioning of the organization, depends
upon different factors that are impacting the firm. Adaptability or flexibility has to be
attained by organization in order to survive in the market otherwise the company will lag
behind or may be swept away by the forces of changing environment (Boon, Den
Hartog and Lepak, 2019). Effects of change in the environments of the organization are
unavoidable and inevitable as they impact the organization both directly and indirectly.
Modern organization are attaining more and more versatility and flexibility
through adaption of different strategies and techniques that helps them to increase the

chances of sustainability. These strategies are implemented with the help of HRM which
determines the perfect candidate to do the job effectively and efficiently. To cope up
with the change an organization can adapt several methods that leads to the overall
upliftment of the firm in terms of the changing environment. These methods can be
technological, strategical, structural or other elements like people.
Change in an organization impacts the behaviour of employees. This behaviour
of employees plays a major role in the adapting capability of the firm. The effects of
changes on various skills of human resource are as follows:
Time management skills
Time managing skills is the most important characteristic that should be
possessed by a person to manage different task accordingly and without exceeding the
given time limit. Organizational changes leads to the miss management of time as
whole workforce is concerned and working towards the survival in such conditions.
Disturbance in overall time management of the organization can lead to unmanaged
work load on both the employees and managers. Overburdening of the work decreases
the productivity of the employees and effects the productivity which reflects in products
or services on which the employee is working on.
Customer serving skills
Providing the customers with the best product and services is the main
characteristics that an organization focuses on through their employee base. In the
changing conditions when there is a lot of things happening in the internal and external
environment the quality of product or service of the firm can decline (Pak and et.al.,
2019). This happens when the employees are not able to concentrate on their roles
because of various situations. The diversion of focus that occurs due the changing
conditions reduces the customer satisfaction rate and can lead to lose the customer
loyalty towards the company because of declined quality of product and services.
Teamwork
Working in team improves the performance of both the employees and the
organization which helps in catering the customers with the best collective services.
Collaboration and coordination in the operations performed by the employees in the firm
gets disturbed and eventually leads to the end of teamwork (Macke and Genari, 2019).

This decreases the quantity and quality of the work delivered by the workforce which
results in dissatisfaction of customers. Cooperative nature of the employees starts
reducing if there is any major change in the organization that is concerning the
employees too much. Lack of team work can lead to contradictory behaviour in the
employees, products and services delivered by the company can get affected by this
contradiction.
Communication skills
The way of delivering the message or command to superior, subordinates and
colleagues is known as the communication skill of the employee. This communication
skill plays a vital role in the efficient functioning of the organization. Good
communicative skill in the employees and managers help to reduce the conflicts and
contradiction in the organization. Changes in the working environment or external
environment disrupts the communication channel developed within the organization.
This eventually leads to the conflicts among the employees due to the lack of efficiency
in the communication channel.
Impacts of internal factors on HRM.
Growth level
The growth level expected by the company in a period of time effects the
decision-making of the human resource management as that needs exclusive staffing
process. The training of staff is expected to make them highly efficient to work
effectively and give good results up to the expectations of the management (Peccei and
Van De Voorde, 2019). Human resource management has to maintain the intellectual
and skill growth of the employees in order to meet the level of growth expected by the
management. Lower levels of growth can also effect the human resource as it
eventually leads to the downsizing in the company so that the company can reduce the
expenses.
Use of technology
Machine intensive techniques are replacing the labour-intensive techniques and
it has lead to unemployment for many unskilled or low skilled labours. This replacement
has forced the human resource to deeply evaluate the skill-sets and experience of the

candidates for the respective job roles. Technological use in Mercedes can effect the
human resource management by pushing their focus towards the training and
development of the employees so that they can gain the ability to utilize the
technological process in the firm and increase the overall productivity. Human resource
administrators in the organization may have to terminate the employees that are
incapable in coping up with the change or lack in gaining the technological knowledge in
the field.
Strategical changes
Changes in the environment forces the management to alter the strategies in
order to sustain in the different conditions. Implementation of these altered strategies
can impact the activities of the HR team as they are expected to allocate the human
capital in a direction towards the successful implementation (Bratton and et.al., 2021).
There are different strategies that may have a major impact on the HRM decision-
making such as change in financial strategies that may force them to alter the
compensating policy, operational strategy which can effect the staffing and training
process etc.
Impacts of external factors on HRM.
Labour pool
Major responsibility on the shoulders of human resource management is the
staffing process of the suitable candidates for the job roles. Availability of labour in the
field impacts the decision-making of the HRM. If there is unemployment in the market
than the management team may get the suitable candidates for the job in lower
compensation. In order to acquire skilled labour force the team may face difficulties in
the staffing process especially when there is the same demand in the whole industry for
employees with particular skill sets (Rana and Sharma, 2019). In this type of scenario
the organization may have to offer attractive compensation for the employees that are
already working in the firm to retain them. This can effect the targetted budget of the
management, and they might be forced to lower the salaries of less skilled employees in
order to maintain the payroll of highly skilled employees.
The geographical area in which the outlets or production units of Mercedes are
located can also effect the working of HR as the availability of labour with distinct skill-

set differs from place to place. In case the company is located in an area with low
literacy rate than they might have to bear high cost for availing the skilled candidates as
they have to hire them from different regions and has to bear the transportation or
accommodation costs on behalf of the candidate.
Legal factors
Organization working in a country has to comply with the rules and regulation
implied in the region by the governmental bodies. There are certain sections that consist
the laws focusing on the workplace and workforce in the companies operating in the
region. These laws play a vital role in the functioning of the HRM as they have to
comply with those rules and regulations (Amrutha and Geetha, 2020). This factor
impacts the staffing, training and compensating process which is performed by HRM
team. These rules set certain boundaries in which the management has to work in order
to maintain the rights of the employees. The rigidity that occurs due to this factor
impacts the effective working of the management team and it is considered as the
negative impacting factor in the view of management.
Human resource practices in organization for improvement in sustainable performance
The HRM practices are crucial for organization and utilization of those strategy
helps to make the sustainable performance of organization. In the context of Mercedes-
Benz such practices are favourable to make advantage in business performance and
improved level of employee retention. Similarly, for further improvements and access to
various growth opportunities the human resources practices should be favoured by
company. While providing the lucrative terms for employees retentions, the company
may focus on improving communication and engagements with each other to make
organization more productive. On the other hand training program for employees should
be developed on constant basis for new and existing employees to make the effective
use of resources and enhance their knowledge. The overall productivity of the
organization will enhance with the training of the employees as the combination of
increasing intellectuality and experience of the employees will give the organization a
direction towards the sustainability. The up gradation in the workforce will lead to

flexibility of the organization and the survival chances of the organization in different
conditions will increase.
Moreover, the human resource practices are uncharted about the effectiveness
measuring and identification of indicators. Such practices will drive and boost the overall
productivity of organization and individual. Increased productivity will be a factor for the
organization to gain perfection in the field and any change coming in their way will be
faced with the power of this increased productivity. The three major key indicators for
HR effectiveness is employee retention, satisfaction and culture. These are significantly
aligned to develop the strong and improved sustainable organizational performance
(Anwar and Abdullah, 2021). Higher employee retention rate develops a good
connection among the employees working together for a period of time. This leads to
higher cooperativeness in the organization. Focus on employee satisfaction rate can be
a effective method in gaining higher loyalty from the workforce deployed. For future
development the organization should hire adequate employees and provide them with
training programs. Also, company can make better working culture assessing on the
basis of current requirements to make changes leading to more significant developed
culture. Development of positive working culture can help the organization to maintain
the mental peace of the workers so that they can work efficiently without any concerns.
For further business expansion following the appropriate expansion and the employee
retention is most essential term for business to drive the competitive advantage in
industry. On the other hand there are various concerns which should be favoured by
Mercedes-Benz such as they must utilize the selective hiring strategy by recruiting the
right people at the place who can be able to maintain their role and responsibilities.
Although they can formulate self managed and effective teams tend to increase their
work efficiency and productivity as well. This will encourage as positive work culture and
develop the better organizational performance for long terms which reflect towards
being most attentive company.
In the initial period of the job, the HRM tries to make the new employees comfortable so
that they can fit in the culture of the organization instead of feeling left out. This activity
of the HRM develops a feeling of relevance in the mind of the new employees and
eventually they star getting used to the environment and work collaboratively with other

colleagues. This process done by HRM holds the employees in the initial period of their
joining.
To gain the best results the management focus on providing the best tools that can
utilize the efficiency of the employees and best products can be delivered through the
process. Focusing towards this aspect is the role of HRM which is performed regularly
to cope up with the changing technology to gain higher sustainability levels.
Implementation of these practices by HRM can result as the boost in overall
productivity of the organization. Higher productivity rate achieved through these
practices will develop sustainability in the organization as the activities of human
resource management will be aligned to gain perfection and quality. Encouragement of
HRM in the organization will help the betterment of employees and organization as well.
Good working experience in the employees will lead to the flexibility that will be attained
by the firm. This will help the company to mould itself in any situations or any changes
occurring in their way of success.
CONCLUSION
The above report has concluded the contribution of HRM in the organization and the
ways in which they operate for achieving the better human resource organizing
methods. The report has highlighted the areas which are focused by HRM to gain more
sustainability in the life cycle of the organization. The HRM activities are analysed in
context with the employee retention and satisfaction which effects the employee
turnover ratio. Recruitment activities of the management team as it is the major
objective of the HRM. It is discussed that how human resource team finds the perfect
candidate for the suitable roles and how it improves the performance of the
organization. Further on, the report contains the elements on which the HR team works
on to balance the profitability of both employees and the organization as well. Analyses
of internal and external factors shows that how the decision-making and operations of
HR are affected by these factors. The effects of changing nature of the organization
within the passing time has shown that how these factors effects the skills of the human
resource operating in an organization. Moving on, the report has included the
considerable contribution of the HRM activities in gaining the sustainability in the

organization and how it helps in gaining the organizational profits without disturbing the
mental peace of the employees.

REFERENCES
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