Business Management: HRM Practices and Operational Challenges

This document explores various aspects of business management, including HRM practices, operational challenges, and theories of motivation. It focuses on the case study of BMW and discusses issues related to managing people, the expected behavior of employees, the impact of increased overseas production on HRM policies, and the advantages and disadvantages of performance-related pay. It also examines the benefits of old workers for BMW and the problems associated with them. Additionally, it covers McGregor's theory of X and Y, Maslow's theory of motivation, the difference between Herzberg's hygiene and motivation factors, and the psychological contract between employers and employees. Finally, it discusses the managerial challenges in setting up operational systems and the role of globalization in Zara's success.

Business management

Table of Contents
Business management......................................................................................................................1
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
Issue concerning with management of people as BMW enlarge its production and distribution
facilities........................................................................................................................................3
What BMW covey image? Kind of behaviour expected from employees. Does HRM practices
encourages or discourage employee behaviour...........................................................................4
Is increased overseas production likely affect HRM policies.....................................................5
Advantages and disadvantage in respect of performance related play........................................5
Benefits that BMW gain from old workers and problems associated with them. How HRM
practices change to deal with problems.......................................................................................6
PART B...........................................................................................................................................7
Assumption of McGregor’s theory of X and Y...........................................................................7
Maslow’s theory..........................................................................................................................8
Difference between Herzberg’s hygiene and motivation factors................................................8
Psychological contact..................................................................................................................9
PART C...........................................................................................................................................9
Managerial challenges in setting operation system.....................................................................9
Tendency towards globalisation help or hinders Zara success....................................................9
Operational strategy of Marks & Spencer and identify difference from Zara...........................10
Organisation strive excellence and some face operational challenges to become world leader.
...................................................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The business management is most important for successful implementation of business
activity or operation. All the task will be well organised prioritise in such a way so that business
goal can be easily achieved by them. The report contains assignment in three parts. In first part,
using case study of BMW is defining that covers all the aspect related with Human resource
management. In part second, theories of motivation have been explained to understand human
nature and how they get motivate (Santoro, 2019). In last part, report covers all the aspect related
with the managing operations and quality. All three aspects are very essential to understand as
this will leads towards greater good image of company in front of target audience and generate
more sales as well as net profit of company. The department of human resource manage all
employee and workforce and motivates them to accomplish business goal.
PART A
Issue concerning with management of people as BMW enlarge its production and distribution
facilities.
The BMW is commonly famous as Bayerische Motoren Werke AG. This one of German
leading multinational corporation that deals in the production of luxury vehicles and
motorcycles. This is founded in 1916 in parts of German. In order to enlarging its profitability in
others parts of world company decided to expand its production and distribution facilities. This
will leads towards major issue or problem related while managing people that is workforce
within the organisation (Lin, 2017). The biggest challenge that BMW face in its HRM while
managing whole workforce people.
Tracking team productivity- For the successful company like BMW has to go through
the major issue that is tracking each team productivity is going into the right direction or not
while operating its production and distribution activity. The workplace is continuously changing
due many reasons like globalisation or pandemic. So tracking or evaluating must be implanted
by the HR of company so they does not go out of track for fulfilling organisational goal.
Managing communication among team-This is also one of the major issue has been
faced by the BMW company as they has large number of employee who belongs to different
cultural backgrounds and believes. So as a result company has to face lot of problems related

managing communication in several teams of production and distribution department. Proper
communication is necessary as it will reduce the waste of company and proper flow of
communication will execute within each department.
Managing conflicts- Large numbers of diversified employee create more conflicts due to
lack of effective communication. This will found difficulties in following or regulating HRM
practices. Conflicts will generate within top management to employee workforce when proper
flow of information does not circulate in right medium and at right time.
Retaining talented employee- The Company also finds some issue as the top most
employee has several of option and offers of high salary, incentive from their competitors. So
this is major issue as their talented employee gets swap with other company if company fail to
provide them suitable salary or incentives.
What BMW covey image? Kind of behaviour expected from employees. Does HRM practices
encourages or discourage employee behaviour.
The BMW is well recognised brand that mainly target the premium segment of people. The
BMW company convey very strong, royal image in fronts of target audience as they deliver more
productive solutions in their production and distribution department. It delivers more value to
consumer and employee so that it will update its net profit and strong market position of the
company (Cokins, 2017). The kinds of behaviour expected from employees are must perform in
more organised and directed its efforts of works towards company gaol achievement and success.
The employee of company must provide most satisfied services to target consumer so that it will
automatically build positive image in front of mass consumer. Employee must work hard in
generating more lead and generate more sale to maintain long period of survival in competence
market.
The HRM practices plays great role in motivating, encourage or discourage the employee
behaviour. There is great relation among employee performance as well as HRM practices, it
will impact whole working environment of company (Bullough, 2017). HRM practices build
operational excellence so that each team of employee will leads towards continues improvement.
HR develop training session to encourage continues learning and development of skill of
employee. HRM practices develop governance programs such as organizational discipline and
accountability for filling benchmark of industry. When company fail to fulfill these HRM

practices then company automatically leads towards discouragement and negative culture in
working environment.
Is increased overseas production likely affect HRM policies.
BMW company is one of leading company that aims towards expanding its market share
across the globe (Harmon, 2019). That is why their increased overseas production gets into
greater strength while establishing global production and sustainability from high competition.
The HRM policies of company gets affected in respect of increased overseas production such as-
Corporate and cultural difference- Lots of cultural difference in corporate has been in
the HRM policies while expanding overseas production. Cultural norms influence working
condition and the ideas of employment expectations. HRM has to manage overseas staff and
understand global and local culture that is associated with business practices of HRM. In some
parts of world female managerial position is not preferable that is why in corporate cultural
difference has been seen in gender roles as well that influence HRM policies.
Employment and Tax laws-While enlarging expansion of overseas it may seen
difference in TAX and labour law. The policies of HR have to go through from different tax rates
along with examining beneficial requirement in respect of labour environmental regulations. The
requirement can also generate more conflicts in respect of existing corporate policies of
company. The regulation of each country government policy must be included by HR for
operates company production in overseas.
Long distance communication challenges- In respect of overseas production HR has to
face major challenge while communicating with task force across the globe. As the HR has to
depend upon the technology through interaction via conference or email while regulating any
HRM policies in the production of company. For that standardisation accommodation and
language must be developed in the software (Ardito and et.al., 2019).
Advantages and disadvantage in respect of performance related play.
Advantages of performance related play in BMW company.
 The ultimate benefit of performance related play is it will generate positive impact on the
high level of productivity rates.
 This will enhance motivation level of workforce so that it will delivers more focus upon
morale in the working cultural environment.

 This will leads towards proper direction in establishing strong connection among
employee and company.
 This act as most effective tool in rewarding employee on the basis of individual employee
efforts and group performance.
 Rewards to the best employee will leads towards high performance (Doppelt, 2017).
 This will generate more healthy performance culture in company.
 It will decrease the cost of operation and sustain business in terms of high profitability.
Disadvantage of performance related play in BMW company.
 When established goals are unachievable by the team and workforce then it will develop
demotivation among each employee.
 If the working environment of company become more competitive then it will decrease
the morale of employee.
 Sometimes employee may expect high level of payment in respect of their contribution
work and performance.
 Aims towards accomplishing goal for reward instead of business profit is not a right
direction of employee.
 This may covers measuring performance on basis of subjective this will involve low level
of rating employee performance.
Benefits that BMW gain from old workers and problems associated with them. How HRM
practices change to deal with problems.
The old workers that are attached with the BMW has more qualification, skill and
knowledge and competence (Håkansson, 2017). This will grow due long term experience with
the high profile company. The company gains maximum benefits from the old workers such as
Increased productivity and production- The old workers are very active and loyal towards
company profitability so they will contributes maximum efforts while increasing company
production while expanding global level and enhance high level of productivity for increasing
net profit of company.

Develop good public image-The old loyal employee has provide more satisfied services to
target consumer that ultimate brings good public image of company and profitability.
Sustainability- The old employee has high competence through with they handle company
long term sustainability in high competitive market at global.
There are several problems associated with the old workers such as retention as they are
very qualified and demand more salary package if company fail to fulfil demand of old employee
then they can swap their job in Competitors Company (Bashir, 2019). Along with this another
problem is technology advancement that old workers are not much aware about new innovative
technology.
The HRM practices plays major role in solving these problems through developing more
training and educational programmes to update regular knowledge of employee in terms new
innovative technology. And for retention they provide appropriate and appealing promotional,
perks, compensation that attract old employee remain with company profitability (Santos and
et.al., 2018).
PART B
Assumption of McGregor’s theory of X and Y.
The theory of X and Y is one of the traditional theory that enhance importance of motivation
workers in which theory X combines of negative view of workers and theory Y included positive
view. The assumption of X theory includes-
 The workers involve concept of dislike in their job role and keep on avoiding roles if it is
possible.
 Employees are not much worry about career growth and involve low ambition.
 It avoids all type of change and diminishes responsibility in their job role.
 Employee are self centred does not care about company goal (Kourula, 2017).
 They want someone lead them as they are not intelligent.
 They are bad at decision making and they required appropriate controlling and
monitoring work effectively.
Assumption of theory Y
 The average employee enjoy their work and act as a source of satisfaction.
 Employees are highly committed with the objective and self control direction.

 The employee seek to fulfil their work responsibility.
 They tends towards high degree of imagination towards delivers creativity or productive
solution of the problems.
 They are able to develop intellectual potentialities.
As per author opinion is in favour of Hofstede pointed that this theory is based upon
observation of the western societies that is far differ from economic power east as this theory is
totally based on employee behaviour observation (Kirchmer, 2017).
Maslow’s theory
The Maslow’s hierarchy theory consist of psychology employee motivation explanation.
This theory combines of several level through which gets motivated after completion from one
level to another (O'brien, 2019). It involve physiological, safety, love belonging, esteem and self
actualisation needs. The physiological needs include fulfilment of essential things such as
shelter, food, warmth, health, rest, water. The safety needs covers safety as well as security near
working condition so that no danger will occur in job security and stability. The love and
belonging contains development of friendship, love, intimacy, family that will leads good
experience in workplace to avoid depression of employee (Sroufe, 2018). The self esteem covers
respect, recognition, status in job so that employee gets boost in confidence. At last stage of this
will covers full potential best possible growth achieve by the individual.
The scientific theory of Frederick Taylor is related with Maslow theory as both aims
towards increasing employee motivation to raise efficiency and productivity. This will involve
scientific manner of job done in order to motivate employee with good working condition.
Difference between Herzberg’s hygiene and motivation factors.
The hygiene and motivation factor is known as two factor theory. The hygiene factor fulfil
need of employee who wants remain attach with company. It combines of job security, salary,
healthy working condition, supervising and positive relation among employee and management.
On the other hand motivation factors combine of inspiring and pushing the limits of employee to
accomplish greater goal of company. This will combines of recognition, responsibility, growth,
bonus, and rewarding promotion. So that each employee will increase its productivity. The
motivation factor include intrinsic job elements that is at primary on the other hand Hygiene
factor combines of extrinsic element that involve in the working environment. Both the factor
synchronised in order to motivate employee of the organisation (Brinch, 2018).

Psychological contact
 Expecting from Employer in career- They must provide good working condition and
focus upon establishing training programmes so that skill gets updated on regular basis. It
will increase more potential for employee in order to improve job opportunity.
 Expecting from employer who provide part time job while studying-The employer
must take care that employee can complete its job while pursuing this job for that flexible
hours of work structure developed. Employer also must focus upon maintain balance
through motivational theory so employee can manage its study and work.
PART C
Managerial challenges in setting operation system.
Zara is one the leading brand of fashion retail industry founded in 1974. This fashion
industry is most dynamic industry that gets changes at very fast degree of level. Here are some
challenges that is faced by Zara in maintain good operational management across the globe
(Brunet-Thornton, 2018).
Concerned over productivity-This one of the biggest challenge for the Zara as they
have to ensure no over production or productivity will generate in their operational department
which cause heavy loss.
Worried about process quality-The quality process may not create more standardised
product due to changing environment design. This will reduce optimum quality of standardised
product.
Consumer satisfaction- The company has to go through fulfilment of consumer
satisfaction otherwise they cannot maintain long term survive due changing environment and
consumer taste, preferences.
Conflicts- Company faces lost of difficulties in while managing balance conflicts among
each department to satisfy each demand of the market and consumer in more effective way. The
employee cultural difference background will leads towards more conflict in circulate
operational message and fulfil the demand as per the requirement of distribution department.
Tendency towards globalisation help or hinders Zara success
The tendency towards globalisation in one of the great step of Zara towards its success as
this will aid in recognising its brand name at the global level (Dave, 2017). This is clearly

examine the competition level of fashion industry goes at peak at global level but Zara also can
also get chance to increase its market share, profitability, revenue, net profit and consumer base.
While entering into other country global fashion market they first check and analyse feasibility
then taste and preference of market. After that introduce their own unique design from other
competitors and maintain sustainability at global market. This will enhance its consumer and
their experience at next level in order to contribute more success of company.
Operational strategy of Marks & Spencer and identify difference from Zara.
The Mark & Spencer is leading brand of retail founded in 1884. They mainly focus upon
several of operational strategy in order to maintain good quality and operational management.
The main component of their operational strategy is –
 Designing of production arrangement- This will leads towards consumer product
design along with standard product design.
 Optimum allocation of resources- Full utilisation of optimum resources for company
success.
 Facilities of production and services-This will ensure high level of specialisation, quick
delivery, low cost, high productivity and flexibility.
 Design as well as development of product, services- Design in more standardised and
qualitative in respect of goods and services.
 Technology selection-Proper technology selection is essential for the process
development with applicable technology in market.
 Allocation resources- All the resources must be allocated on the basis of continues
planning to reduce waste.
 Focus on planning-Company focus on layout planning, full facility utilisation along with
capacity of company.
There is great difference in operational strategy of Zara and Mark & Spencer. The key
difference involve in their technology selection as well as design of production arrangement.
They follow their own set pattern of design to maintain unique selling proposition (Tsyganov,
2019). Zara execute personalised design in production arrangement. Whereas Mark & Spencer
focus upon only standardise production arrangement.

Organisation strive excellence and some face operational challenges to become world leader.
This statement is totally justified as most of the organisation has to face lost of challenges in
operation and some of them strive excellence to become world leader. Here are some concepts
that is essential to involve for becoming world leader and if company fail to involve this then
they would some problems.
 Participation in effective communication leads towards more straightforward employee
behaviour to satisfy in more interaction manner.
 While connecting whole team in more synchronised way so that each employee will
deliver result for the success of company. This will develop trust and sense of
understanding while connecting world leader.
 Motivate personal and professional growth through educational programmes that will
build competence of employee for company success along with employee career
opportunity.
 Established predetermine goal of employee and company which help in addressing
feedback of company employee.
 Focus upon effective leadership style through motivate and coaching in order to raise
performance.
 More contribution towards new innovative idea that will leads towards more intellectual
excellence that brings unique perspective. This will brings success of company into next
greater level.
CONCLUSION
From the above report it has been concluded that business management has to ensure it effective
HRM policies and practices because whole organisation is managed by the organisation. This
will improve employee relation and communication so that company can easily operates its
business at global level. The whole workforce performance and old worker retention depends
upon HRM policy. There are several motivation factors theory encourage employee to push their
maximum efforts for employee profitability and success. It will also improve satisfaction level of
employee and consumer. For long period of survival dynamic industry such as Fashion must
ensured effective operational management system so that it will raise their productivity and
scope to moves towards globalisation operation. It will help company in become major leader
from its competitors with the help of unique differentiation.

REFERENCES
Books and Journals
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Lin, C.P., Tsai, Y.H. and Mahatma, F., 2017. Understanding turnover intention in cross-country
business management. Personnel Review.
Cokins, G., 2017. Strategic business management: From planning to performance. John Wiley &
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Harmon, P., 2019. Business process change: a business process management guide for managers
and process professionals. Morgan Kaufmann.
Ardito, L and et.al., 2019. A bibliometric analysis of research on Big Data analytics for business
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Håkansson, H. and Snehota, I. eds., 2017. No business is an island: Making sense of the
interactive business world. Emerald Group Publishing.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Bashir, M. and Farooq, R., 2019. The synergetic effect of knowledge management and business
model innovation on firm competence. International Journal of Innovation Science.
Santos, G and et.al., 2018. Critical success factors in the management of ideas as an essential
component of innovation and business excellence. International Journal of Quality and Service
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Kourula, A., Pisani, N. and Kolk, A., 2017. Corporate sustainability and inclusive development:
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Kirchmer, M., 2017. High performance through business process management. West Chester:
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O'brien, J., 2019. Category management in purchasing: a strategic approach to maximize
business profitability. Kogan Page Publishers.
Sroufe, R., 2018. Integrated management: How sustainability creates value for any business.
Emerald Group Publishing.
Brinch, M., 2018. Understanding the value of big data in supply chain management and its
business processes. International Journal of Operations & Production Management.
Brunet-Thornton, R. and Martinez, F. eds., 2018. Analyzing the impacts of industry 4.0 in
modern business environments. IGI Global.

Dave, B., 2017. Business process management–a construction case study. Construction
Innovation.
Tsyganov, V., 2019, July. Tutoring mechanisms of business management. In 2019 IEEE 21st
Conference on Business Informatics (CBI) (Vol. 2, pp. 60-67). IEEE.