Analyzing HRM: Strategies, Cultural Impact, and Best Practices

This report provides a comprehensive overview of human resource management (HRM) strategies and practices within an organization, focusing on how HR strategies create value, the impact of regional and national culture on HRM, and the use of organizational models. It explores the differences between HRM and personnel management using Storey's 27 points, the importance of local culture in hiring and firing processes, and the challenges of international expansion. The report assesses the impact of international HRM on local business systems, highlights best practices in HRM, and offers recommendations for enhancing employee performance. The analysis considers Volkswagen as a case study, examining its HRM practices in Singapore and Germany, emphasizing the importance of employee engagement, motivation, and cultural adaptation to achieve organizational objectives.

Human Resource
Management

EXECUTIVE SUMMARY
Human resource management plays very crucial role in every organisation. They manage
the people so they achieve the organisation objective effectively and efficiently and helps to
maintain cordial relationship with employees. The main role of HR department is to select and
recruit the most talented employees and give them training and development sessions so they can
put efforts to attain the company's target.

Table of Contents
INTRODUCTION............................................................................................................................4
TASK A............................................................................................................................................5
Explain how HR strategies created values for firm. ..................................................................5
TASK B............................................................................................................................................6
Explain the impact of regional and national culture on different HRM practices.......................6
TASK C............................................................................................................................................7
Explain how values are created by using appropriate organisation model of employees..........7
TASK D............................................................................................................................................8
Difference between HRM and personnel management by using storey's 27 points...................8
TASK E............................................................................................................................................9
Determine importance of local culture in hiring and firing process and practices of HRM for
expansion in international market................................................................................................9
TASK F..........................................................................................................................................10
Assess the difference when international HRM business changes local business system in
reference to laws of employment...............................................................................................10
TASK G..........................................................................................................................................11
Best human resource practices used in organisation.................................................................11
TASK H..........................................................................................................................................12
Recommendation.......................................................................................................................12
CONCLUSION..............................................................................................................................15
REFERENCES...............................................................................................................................16

INTRODUCTION
Human resource management is one of the most important department in organisation. It
is the process where there is process of selection, recruiting and training and development. They
perform various roles such as deciding salaries and compensation, taking feedback, maintaining
relation between employer and employee etc. This is developed because to enhance productivity
and performance of employees and also aim from individual to attain competitive advantage at
marketplace.
According to this project Volkswagen is considered as organisation. Volkswagen is
public company and headquarters in German as they deal in automotive industry. They produce
goods and service all over the world and also they have presence in Asian and African countries.
This include various human resource strategy to achieve organisation objective and engage
employees to give their effort. The headquarter of Volkswagen is in German. In this report
Singapore is taken as country as Volkswagen have presence in it. Report include practices of
HRM that impact both regional and national culture. Volkswagen uses competitive and supported
employment model to create value and they also uses 27 Storey's differences of HRM and
personnel management that is practised by then in Singapore. The importance of culture when
organisation select and discharge employees and when they expand their business internationally.
This project also include recommendation that make employers in regards to practices that ensure
the performance of employees.

TASK A
Explain how HR strategies created values for firm.
Human resource department is a group of people who helps organisation in managing
employee related activities such as, recruiting, selecting, training and administering
employees benefits activities (Berrell,2021). HR of an organisation guide and motivate
their employees for enhancing their productivity and maintaining culture of organisation.
Human resource strategies provides a right direction to create values from organisation
manpower. In context of Volkswagen Group, for increasing productivity and achieving
customer satisfaction they use different HR strategies. HR strategies of an organisation is a
long term plan which prescribe HR practices. In relevance of company, HR strategies
creates values for organisation are discus below: Increasing performance: In context of selected firm, its human resource department
maintaining good quality of workforce and better performance. Long term success and
financial capacity of company is connected to its employees talent and ability. HR of
relevance company add values in organisation by providing training and development
programmes to their employees. Human resource department use different strategies
such as, increasing compensation & promotion for increasing efficiency of their
employees (Fuchs 2020). Reduce labour turnover rate- It refers to the number of employees who leave an
organisation during a specific period of time. High labour turnover influence brand
image & reputation of a companyS. In context of Volkswagen Group, their HR uses
different human resource management strategies for long term retention of their
employees in an organisation. Such as providing training and development programs,
motivating, guiding their employees. HR strategies add values in organisation by
reducing labour turnover rate. Employees engagement: It refers to a workplace approach which helps in creating right
conditions for all employees on an organisation (Fruehbuss,2020). It increases their
employees productivity and efficiency which helps in smooth functioning of
organisation. Employees engagement is based on the factors such as, trust, integrity and
communication between employees and management in an organisation. In relevance of
selected company, they involve their employees in decision making and also take their

important suggestions. Which motivates them to work with their full efficiency for
achievement of goal of organisation (Glendon, Clarke and McKenna, 2016).
 Improve reputation & brand image: For success of any organisation its important to
maintain a good brand image and reputation of company. Brand image improves market
presence and brand equity for an organisation. Customers satisfaction & brand
recognition creates values for organisation. In context of company, their HR selects best
candidates which have high level of knowledge and skills. With high level of
productivity and efficiency they provide good quality products to their customers. Which
increases reputation and brand image of company (Goliński 2020).
TASK B
Explain the impact of regional and national culture on different HRM practices.
Culture refers to a set of ideas, belief, values, behaviour and characters that form a people
way of life. Culture is passing from one generation to another generation. Culture influence the
personality and level of performance of people. National and regional culture of EU countries
influence HRM practices of selected company. Which are discuss below:
Impact of regional and national culture on HRM practice: Recruitment policy- Companies established in EU countries follow different recruitment
policies depending on their cultural attitude. Each country of Europe has their own and
different culture. Employers of related firm face problem at the time of recruiting
employees. Candidates applying for job vacancy are belongs to culture which effects
human resource practices. At the time of recruiting best candidate its difficult to select
candidate. In context of selected company, the culture of Germany is totally different
from culture of Singapore. Which create problem for HR manager to adopt a effective
recruitment policy or strategies. Compensation- This policy includes different aspects such as tax, cost of living etc. EU
has more than 40 countries and each country has its own policies, such as taxation policy,
cost of living, retirement policy etc. In relevance of company their human resource
manager face problem while determining compensation. The policies regarding
compensation of employees of Singapore is very different. Selected company provide
equal compensation while in Singapore their employees wants requirement according to

their performance which create conflicts between employee and employer (Kim and
Hyun, 2017). Motivation- This human resource management practice helps in enhancing efficiency &
productivity of their employees for completing a task. But meaning of motivation is also
different from one country to another and culture to culture. In Singapore people give
more more importance to work rather than money while employees of Germany are
motivated by monetary factors.So its difficult for human resource manager to successfully
implement their HRM practices. Leadership style- This human resource management practice is also influenced by culture
of different country (Moskalenko 2018). Every country follow different leadership styles
for directing their employees towards work. Such as some countries follow formal while
some follow informal, some follow centralised structure while some follow decentralised
structure of leadership. These regional and national culture makes human resource
practices more challenging. In context of selected firm, they face a big problem while
selecting leadership style because employees of Singapore give more preference to formal
leadership style.
 Decision making – Decision making structure every European country is different based
on their culture. Some countries employer involve their employees in decision making
while some companies are not involving their employees in decision making. It creates
problem while selecting the best HRM practice or policy for employees in an
organisation. Employees of Singapore country wants that organisation includes them in
decision making process which build a strong relation between them but selected
company based on hierarchical structure and all decisions are taken by higher authority.
This while create problem between employee and employer while operating its bbusiness
in Singapore.
TASK C
Explain how values are created by using appropriate organisation model of employees.
It refers to a method which helps in recruiting experienced and talented staff for the
development of an organisation (Moskalenko 2018). Many operations are performed in an
organisation and for successfully completion of these activities company require effective and

efficient employees. In relevance of company they appropriately use different models of
employment. which are discuss below: Competitive employment model: In context of company they use this employment model
for selecting full time and part time employees in an organisation. According to this
model of employment, all employees working in an organisation received equal
compensation and benefits (Prince and Kabst 2020). Selected company use this model
because it create value for company by maximising their efficiency and more
participation in organisation activities. In this employment model all employees are
independent in their job and not require any kind of support from management. By using
this model in selected company, it provides more experienced and talented staff to
company. This model increases efficiency of their employees & maintain a healthy
environment in an organisation. Supported employment- It refers to an employment model which provides current
support to employees for enhancing their motivational level and work performance for
achieving competitive work environment. Main purpose of this employment model is to
provide job opportunity to a person with important inability (Moutinho and Vargas-
Sanchez, 2018). These employees have less skills and experiences for that job.
Organisation take the helps of leaders, supervisors, trainers, coach etc. for enhancing the
skills and efficiency of their employees. In context of company their trainers and leaders
provide full support to their employees who have lack of skills or knowledge for
completing a task. This support to their employees helps organisation in enhancing its
brand image and success for future.
 Customized employment- It refers to a process based on mutual understanding between
employer and employee (Prince and Kabst 2020). They are the types of employees whose
skills and preferences are not match with available post. But they have special strength
which helps in development of organisation. Volkswagen Group use this employment
model because it add values for organisation.

TASK D
Difference between HRM and personnel management by using storey's 27 points.
Human resource management helps an organisation in managing organisation operational
activities and environment. It mainly focuses on recruitment, directing and controlling workforce
of an organisation. Personnel management refers to an administrative specialization that mainly
focuses on hiring best talent for company and provide training and development programs for
improving skills of their employees. Asia and Africa both have different HRM practice because
both have different organisation culture. On the basis of Storey's 27 points difference between
HRM and personnel management are discuss below:
Dimensions Personnel management Human resource management
Job design In context of selected firm, they
separated whole workforce of an
organisation into a numbers of task.
And each task is performed by an
individual employee. This increases
efficiency of each employee in an
organisation (Wajeeh-ul-Husnain and
Benson 2020).
Human resource management of
relevance company divide their
workforce into a team. And any
work or task assigned to all its team
members. It increases coordination
between the team members. And
the task is completed in a effective
and efficient way.
Communication Personnel management uses
individualistic approach. Which
means all workers doing their work
separately and putting it together in
the end. It uses indirect Chanel
communication. In relevance of
selected firm main aim of this
department is maintaining structure
and culture of organisation.
In context of selected company
their human resource management
department use direct channel of
communication. Because of direct
communication any information
that communicate between all
employees are smoothly flow. For
better communication between team
members selected firm use different
team activities which improve
coordination between them.

Speed of decision In relevance of firm its personnel
management is slow in taking any
decision. Because it takes decision on
their own basis. Which is effect for
organisation growth.
Speed of decision-making in human
resource management department is
quite fast. Because in it all team
members are included while taking
any decision related to organisation
or for achievement of its goal
(Silvestrini and et. al. 2019).
TASK E
Determine importance of local culture in hiring and firing process and practices of HRM for
expansion in international market
Local culture affect company and their HR practices in international expansion such as
recruiting and firing process. Volkswagen has to clearly understand about culture in organisation
so that they can achieve objectives for expansion and run their business smoothly. They have to
collect true information of foreign countries or in which country they have to expand their
business which help organisation to grow in future and can implement HR policies according to
international market.
This culture also affect hiring and selection procedure of organisation, so Volkswagen has
to attract talented candidates by collecting relevant information according to the areas in which
they have to establish company and formulate or implement human resource policies (Kavanagh
and Johnson, 2017). After they have analyse about the local culture and talent of candidates such
as their skills or abilities to perform a particular work which is recognised in location where they
are expanding their organisation, according to this HR department have to modify the procedure
and techniques of recruitment and selection.
Company should formulate their HR policies according to cultural trends and before this
they should analyse the trend in that country (Dubin, 2017). The policies include the details
regarding employee joining and discharging, holidays etc. because if there is any unfamiliar
policy then it will affect satisfaction and motivation level of employees, they will not involved in
work. These things will impact organisation goal and customer satisfaction. They should also

formulate policy according to rules and regulation of government as law will imposed in that
location. These practices will help company to avoid various legal conflict and gain reputation in
international market. They can also modify HR policies for retaining CSR and subsidies from
government as per rules of that country. In context to Volkswagen, they can give training and
development sessions to employees, so this will help organisation to reduce diversification in
culture as there are different people with different culture because in this session employees can
interact with each other.
TASK F
Assess the difference when international HRM business changes local business system in
reference to laws of employment
There are many changes that impact the business such as laws, procedure, rules and
regulation but when there is effective globalisation, then business function of organisation will
run smoothly (Scholz, 2016). Business environment have dynamic changes, due to these changes
Volkswagen have to develop strategies and implement them effectively so they can handle the
situation which are unknown. In other words, organisation have to understand different laws of
that country which can impact there business which are described in below points:- Employment and Labour law:- This law states about the relation of employer and
employee. In context to Volkswagen, they achieve success because they recruit talented
employees. Therefore, they follow all rules of employee law as they provide various
benefit to their employees (Zarqan, 2020). The company should ensure that they are
following rules that are appropriate for staff such as workplace safety and health, wages
and hours, employee benefit security. Volkswagen is a large organisation and follow all
labour laws to satisfy them and employees can contribute towards achievement of goals. Intellectual property:- Volkswagen is the renowned organisation and it is important for
them to use all the intellectual property which includes trade secret, patent, trademark
and copyright. According this law company can enforce their right and protect them from
any fraud and can register their product and services. This enable them to earn status and
take financial benefit for what the have introduce new goods or services.
 International trade compliances:- This law define that whenever organisation import or
export have to follow some rules and procedure because they are navigating their goods

or service from one country to another country (Shen and Benson, 2016). So, government
has set some rule and limit for different type of organisation. In reference to
Volkswagen, they are automotive company and operating in 27 countries so they have to
follow international trade compliance and this will help them to implement activities
because they are operating worldwide and from this law it eliminate all conflicts.
TASK G
Best human resource practices used in organisation
HR practices is optimum utilisation of all the activities or process of organisation. As per
the viewpoint of Prakash (2020), the company should choose best practices that help
organisation to achieve objectives effectively (Best practices to build better workplace 2020).
These are described as under:- 360 degree performance management feedback system:- Volkswagen in German,
manager and supervisor continuously monitor the performance of employees and give
feedback to every employee in the team and listen complaints and solve issue by giving
them feedback. In comparison the practice of Volkswagen in Singapore, they regular
check employees and tell them where they should improve whereas they also give reward
and incentives to employees according to their performance. True and fair evaluation system:- According to selected organisation in German they
create an evaluation system that is related to individual performance to business
objectives. This become true and fair when company track employees achievement for a
year and should be to evaluated to high level. On the other hand Volkswagen in
Singapore, pay salary according to their position and increase their salary according to set
percentage. Hiring right people and trained their skills:- In Volkswagen in German they first select
candidates according to skills and abilities as company require to fulfil a particular
position. In other words, they hire right people at right position. On the other hand,
Volkswagen in Singapore, train their employees which help them to develop their skills
in order to achieve business objectives. They select candidate from pool of application so
that they can select right people.