Human Resource Management Report: Audi AG - Analysis and Impact

This report provides a comprehensive analysis of Human Resource Management (HRM) practices within Audi AG. It begins by outlining the core purposes and functions of HRM, particularly in workforce planning and resourcing, and then delves into the strengths and weaknesses associated with various recruitment and selection approaches. The report examines the benefits of different HRM practices for both employers and employees, including training and development, conflict management, and fair compensation. It further assesses the effectiveness of these practices in terms of profit and productivity, emphasizing the importance of employee retention, leadership development, and working conditions. The influence of employee relations on HRM decision-making is discussed, alongside an identification of key elements of employee legislation and its impact. The report concludes with an evaluation of the practical application of HRM strategies within the context of Audi AG, offering valuable insights into the management of human capital within a multinational automotive company.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
P1.................................................................................................................................................3
Purpose and functions of HRM in respective of workforce planning and resourcing.................3
P2.................................................................................................................................................4
Strength and weakness related to different approaches of recruitment and selection.................4
P3. ...............................................................................................................................................5
Benefits of different HRP practices for employers and employee..............................................5
P4 ................................................................................................................................................6
Effectiveness of different HRM practices in terms of profit and productivity............................6
P5.................................................................................................................................................7
Importance of employee relations which influence HRM decision-making...............................7
P6.................................................................................................................................................8
Key elements of employee legislation and its impact on decision-making.................................8
Application of HRM practices.....................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Human resource management is the procedure of managing people efficiently within an
organisational setting which help them to grow and and to achieve their establishment objectives
and goals and can also attain competitive advantage. It basically works on enhancing the
efficiency of the employees. This department is accountable for managing all the employee
benefits, recruitment, selection, training and development of the workers and reward
management. Audi Ag is a multinational auto mobile company that assemble, design, distribute
and produce premium vehicles. It was established in 1909.The following report discuss the
various purpose and functions of HRM and their applicability to planning and resourcing. It will
also identify all the strengths and weaknesses management face in recruitment process. Benefits
of different HRM practices will also be discussed and how various practices will contribute in
the productivity and growth of the organisation. Further the report will analyse the employee
relation in respect to HR decision making process also identify the key components of employee
legislation and its impact. Lastly the application of HRM practices will evaluated in work
related context.
P1.
Purpose and functions of HRM in respective of workforce planning and resourcing
The major functions and purpose of Human resource management are as follows:
Human resource planning: The management of AUDI perform the planning of human resource
which include understanding the future needs of the organisation. They also work towards
identifying that how much workforce is needed and what all are the qualification and skills are
required to be possessed by the candidates. They manage their workforce planning in order to
manage their future objectives by hiring efficient employees which will take their organisation to
their desired destination (Alatailat, Elrehail and Emeagwali, 2019).
Staffing: The HR planning and the recruitment function will give direction to the actual staffing
and selection of suitable candidates for the offered position. The HR personal conduct a
strategically designed recruitment function which will draw in the potential and talented
applicants to fill the offered vacancies.
Job analysis: Company conduct the proper job description and analysis which will make the
resource and planning process much effective. They describes the quality of the job offered, and

education qualification,set of skills and specific experience required by the candidate to perform
the task. They also provide a brief description of the occupation include the roles and
responsibilities. By giving a detailed idea what the work is all about and what will be the duties
need to be perform it will become easy to attract the right amount and quality of applicants.
Personnel research: Human resource personal conduct a detailed research to collect all the
beneficiary information and data to build a efficient program. The properly planned system of
rules will help the management in conducting efficient selection and hiring procedures (Aust,
Matthews and Muller-Camen, 2020).
P2.
Strength and weakness related to different approaches of recruitment and selection
Recruitment
Internal recruitment: This type of recruitment can be done in the company through various
methods like by promotion or internal and inter departmental transfers to different designations
and job responsibilities. Employees also have a benefit of switching from permanent to part-
timers and from part-time employees to fixed term employees. This method is time savvy and
very cost effective as company doesn't need to conduct the whole hiring procedure. Through this
the talented, skilled and experienced workers can be retained and overall ratio of worker turn
over will be reduced. People will will motivated towards working even with more efficiency to
secure their desired position in the company.
The negative aspect related to this particular system is that company will stay deprived
from new possible talents and from all the innovative and fresh creative thoughts and ideas
which they can bring along with them. The internal rivalry and foul competitive feeling may
arise.
External recruitment: This is a very complex and time and cost consuming arrangement. As a
renowned auto-mobile industry they are required to train their workforce, invest on their
development and induction process, conduct background checks. Program a whole new
systematic function of posting job ads on newspapers, on company websites and portals, and on
social media platforms etc. Attracting candidates, conducting assessment and interviews, on-
boarding and orientation for them. So many candidates get rejected just because their profile was
not formed systematically (Taamneh, Alsaad and Elrehail, 2018).

But company can highly benefit from the external hiring as they have a wide pool of
potential applicant with distinct qualifications and skills set to choose from . That will bring new
and developed ideas to the company.
Selection: The assessment before the final employment is necessary as it will become easy to
identify the calibre of the applicant. AUDI human resource managers conduct proper test and
sorting exams which include questions related to the work profile offered through that the
practical knowledge of the person is measured and its easy to exclude the people who are not a
good fit for the profile (Otoo, 2019). The traditional interviews will sometimes turns out to be
ineffective as people can lie in their interviews.
P3.
Benefits of different HRP practices for employers and employee
Training and development: All the workers employed in an organisation need to be trained at
fixed time intervals. AUDI have a policy to conduct training session for their staff members no
matter they are existing or newly hired workforce. Existing workers also needs to be trained to
keep them updated about all the new technology and procedures and policies company follows,
and for new candidates it is a mandatory function to follow as to become more efficient and to
learn about the functionality of the company. Employees get benefited from the training as they
get to learn new things and scale up their knowledge and skills but it will also proved to be
beneficial for the organisation as well as their workforce become educated enough so the overall
productivity will increase, they need less assistance and lesser issues will occurs in terms of work
(Azeem and Yasmin, 2016).
Training and development: All the workers employed in an organisation need to be trained at fi
xed time intervals. AUDI have a policy to conduct training session for their staff members no ma
tter they are existing or newly hired workforce. Existing workers also needs to be trained to keep
them updated about all the new technology and procedures and policies company follows, and fo
r new candidates it is a mandatory function to follow as to become more efficient and to learn ab
out the functionality of the company. Employees get benefited from the training as they get to lea
rn new things and scale up their knowledge and skills but it will also proved to be beneficial for t
he organisation as well as their workforce become educated enough so the overall productivity w
ill increase, they need less assistance and lesser issues will occurs in terms of work.

Management of conflicts: The Human resource department will act as a barrier between the em
ployer and employees and between the co-workers if any conflict situation arises. This is the
process of limiting the negative aspects of conflicts while increasing positive aspect conflicts.
The main aim of this is to enhance the learning and group outcomes, including effectiveness or
performance in an organizational setting. This creates various benefits for employee and
employer of company in effective manner. This will be benefited for company when employer
solve all the problems of employee n proper manner. Through that employee learn new updates
about the work process. On the another side, this is also beneficial employer of Audi,when
employee not face any problems than they give their hard efforts in work process. Through that
management of conflicts in better manner is beneficial for both employees and employers of the
Audi company.
Fair and performance based compensation:Fair and performance based compensation is
another important Human Resource Practices which will be added most value to company so
want to retain them and pay them fairly. This main aim of this practice is to pay compensation to
their employees as per rules and regulations of Company. In that process Audi need to provide
fair and performance based compensation to employees will help to make loyalty and trust of
employee towards the company. With the help of this, management is able to get quality
outcomes from employees efforts. This will be beneficial for both employee and employer of
Audi company. The benefit for employee to get the best rewards and appreciation against of their
work and increase their performance at company. On the another side, benefits for employer is to
get the best outcome, profits and customer loyalty towards company. Through that employees
are able to give their hard contribution towards company.
P4
Effectiveness of different HRM practices in terms of profit and productivity
HR practices are now attached to profits, revenue and productivity as well. HRM focus
on maintaining the relations within the workers. Some practices of HRM to increase profits and
productivity:
Employee retention: HR of Audi make sure that they retain their employees because if their
employees are not retained then this can affect the profits of the company. Costs are incurred in
recruiting, selection and in the training of the employees so, HR should provide such working

environment to their employees so that they work for long time in the organization and do not
leave it frequently.
Leadership development: HR should make sure that proper leadership is provided to the team.
In Audi, they focus on team members. Their leaders and HR make sure that the employees
understand the task which is assigned to them and also guide them in completing the task. Any
confusion regarding the task by the employees can create delay in completion of task.
New hired employees: employees should hire carefully by HR. HR of the company should hire
such candidate who is the right for that position. Wrong hiring lead to wastage of time and
money (Kianto, Sáenz and Aramburu, 2017). Proper induction should be provided to the new
employees and HR should guide about his or her role in the organization.
Rewards and incentives: rewards and incentives is the way of motivating the employees and
motivation will increase the productivity of the employees which will increase profit of
company. Audi started appraisal programs in which the company appraises those employees
whose hard work has benefited to the company and help company to get more profits. Not only
rewards but employees should also appreciate for their hard work which will increase their
morale and eventually their productivity.
Training and development: this is very important for the employees. Company make sure that
proper training is provided to the employees so that they know about their role in the
organization and training will also help employees to brush their skills and also building new
skills which will help employees to work with perfection by which they can contribute in the
profit of the company (Hughes, 2018).
Working conditions: this plays a vital role in the efficiency of the employees. Poor working
environment will affect their productivity. Employee will demotivate and will not be able to help
company to achieve goals.
P5
Importance of employee relations which influence HRM decision-making.
Employees influence decision-making of the company a lot. Employee relation indicates
the relationship between the employer and employee. Good leadership practice should adopt by
the organization which will build good employee relations. If employee relations are good then
that will help company to motivate and understand their employees. Audi knows the benefit of
employee relations and educate their managers to maintain healthy relations in the organization.

Company even assure that there is no communication gap between any of the department
because this can create confusion and can affect the morale of the employees (Michael, 2019).
Audi allow their employees to participate in the decision-making process. They know its
benefits. By doing this company gets innovative and creative ideas from their young employees
and employees also feel that they are valued by the company and their opinions matters and also
asked. Feedback should be taken and given to the employees by HR. timely feedback should be
given for their performances, positive feedback will motivate employees and improve their
productivity while telling about their areas for improvement will help the employees to know
about their weakness and where they have to work.
Employee satisfaction is also very necessary. Employee will enjoy work only if they are satisfied
(DeCenzo, Robbins and Verhulst, 2016). Poor employee relations will lead to dissatisfaction
among the employees. Employee satisfaction is directly connected to employee productivity. If
the company want productive employees then they have to make sure that they are satisfied.
Employer should treat employees in a good manner. In Audi employer helps employee to settle
in the company and also educate about their job role.
Employee empowerment is also necessary. It means that employees are given responsibility and
autonomy to manage their work and make such decisions through which goals of the
organization can be achieved. When employee give freedom to take decisions by own will help
them to do work in a better way because they will feel that they do not only have to follow the
instructions, but they can work according to their own style which will help them to deliver the
best. Before giving responsibilities to employees they should know about the vision, mission and
objectives of the company clearly. Safe and hygienic work space should be provided to the
employees because working culture and environment affect the working practice of the
employees.
P6
Key elements of employee legislation and its impact on decision-making.
Employment legislation is very important for the organization and have to compulsory
follow by the organization. Employee legislation prevent unfair, discriminatory and unethical
practices of the organization (Boon and et.al., 2018). Employee legislation provide benefit to the
employee relations and protect the rights of the employees and assure the ethical practices in the
organization. By following all the guidelines of employee legislations company improve their

image in the market and people come to know that this company do ethical practice while doing
the business. Audi follows all the employee legislation guidelines. Employee legislation has
safety and security laws under which all the companies have to provide safe and secure working
environment to their employees. Under this all the employees are treated equally and there
should be no discrimination. HR carry their decision-making process while keeping in view the
employee legislation and also make strategies by following its guidelines. They know about the
rights of the employees and make sure that they do not face any problems.
Key elements of employee legislation in the company are:
Social responsibilities: Audi believes that corporate social responsibility is very important for the
company. Society expects this from the company and company get support from public if they
carry social responsibilities. Company make sure that while doing their production they control
over pollution and wastage. Company even spread awareness and educate society about how to
protect environment (Ahammad, Glaister and Gomes, 2020).
Health and safety: this is the priority of the company. Proper care is given to the employees.
They are provided such working spaces where they feel safe. Employees even provided lockers
where they can keep their belongings safely. Company can even provide health insurance to the
employees. Working conditions are directly connected to the performance of the employees. If
they are good will boost the morale of the employees and their productivity.
Data protection: this acts gives the protection of the data of the employees. Audi has installed
security software in the company where no one can take out the personal information of the
employees easily or can easily hack the system. Company have no rights to share the personal
information of the employees without their permission.
Regulating working hours: standard working time is given to the employees to complete the task.
Company should not overwork employees because they also have their personal life along with
professional life.
P7
Application of HRM practices
Job advertisement:
Vacancy for Manager in Audi. Attractive salary package. Experience will be the preference.
Interview will be held in company's campus.

Job specifications:
Vacancy is for marketing manager. Responsibilities should be handling marketing team
effectively. Age above 18 should be applied. Post graduation is must in marketing area.
Excellent communication and knowledge of computer.
Interview questions:
Tell about your experience?
Tell about your family background?
Tell about the company Audi?
Who told you about the vacancy?
Why you want to work in this organization?
What are your hobbies?
Offer letter:
We are pleased to inform you that you are selected for the position of manager in Audi. Your
joining will be after 7 days. Congratulations for this. Hope you will join on time.
Job description: Job description is most important think which is provided proper information
about new candidates who will be joined within the company. This help to management to know
about all the academic and work experience of candidates. This clarifies the expectations of
employees, provide the basis of measuring job performance and carrying our performance
reviews.
Person specification: This help to Audi to ensure about assessing a candidate on their abilities
who related to the role. The help to company to remove bias, prejudice and personal interest, all
of that can be problematic for the recruiting successfully. With the help of this, company is able
to judge systematically.

CONCLUSION
Through this report it can be concluded that human resource management is very
important of the company and HR have many roles and responsibilities in the organization. HR
is the blood to the company. Purpose and functions of HRM are explained with the application of
workforce planning and strengths and weaknesses of approaches to recruitment and selection are
discussed. Further, benefits of different HR practices are evaluated of an organization for the
employee and employer. Assessment of the effectiveness of HRM practices in terms of profit
and productivity and also analysed the importance of employee relations in terms of HRM
decision-making and the elements of employee legislation are identified and its impact on
decision-making. Such working environment should be provided to the employees which can
motivate them and can increase their productivity. Finally, given the application of HR practices
in the context of the company.

REFERENCES
Books and journals
Ahammad, M.F., Glaister, K.W. and Gomes, E., 2020. Strategic agility and human resource
management. Human Resource Management Review. 30(1). p.100700.
Alatailat, M., Elrehail, H. and Emeagwali, O.L., 2019. High performance work practices,
organizational performance and strategic thinking. International Journal of
Organizational Analysis.
Aust, I., Matthews, B. and Muller-Camen, M., 2020. Common Good HRM: A paradigm shift in
Sustainable HRM?. Human Resource Management Review.30(3).p.100705.
Azeem, M.F. and Yasmin, R., 2016. HR 2.0: linking Web 2.0 and HRM functions. Journal of
organizational change management.
Boon, C. and et.al., 2018. Integrating strategic human capital and strategic human resource
management. The International Journal of Human Resource Management. 29(1). pp.34-
67.
DeCenzo, D.A., Robbins, S.P. and Verhulst, S.L., 2016. Fundamentals of human resource
management. John Wiley & Sons.
Hughes, C., 2018. Ethical and legal issues in human resource development: Evolving roles and
emerging trends. Springer.
Kianto, A., Sáenz, J. and Aramburu, N., 2017. Knowledge-based human resource management
practices, intellectual capital and innovation. Journal of Business Research. 81. pp.11-20.
Michael, A., 2019. A handbook of human resource management practice.
Otoo, F.N.K., 2019. Human resource management (HRM) practices and organizational
performance. Employee Relations: The International Journal.
Taamneh, A., Alsaad, A.K. and Elrehail, H., 2018. HRM practices and the multifaceted nature of
organization performance. EuroMed Journal of Business.
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