Human Resource Management Challenges and Solutions for BMW

This report provides a comprehensive analysis of human resource management (HRM) practices within the context of BMW, a global automotive manufacturer. It begins by identifying key issues in people management, including challenges related to employee behavior and working environment, especially in the context of increasing production and distribution. The report explores various HRM practices, such as training and development, and their impact on employee motivation and performance. It also delves into the effects of increased overseas production on HRM policies, addressing cultural differences and legal and political changes. Furthermore, the report examines the merits and demerits of performance-related pay, discusses the challenges of managing an older workforce, and outlines McGregor's Theory X and Theory Y. Maslow's theory of human needs and its relation to Frederick Taylor's ideas are also explored. Finally, the report addresses operational challenges in a fast-moving market, the impact of globalization, and the importance of operational strategy, concluding with insights into becoming and remaining a global leader. This report aims to provide a detailed overview of the various challenges and opportunities that BMW faces in managing its human resources effectively.

Business management

Table of Contents
Introduction .....................................................................................................................................2
Part 1 ...............................................................................................................................................3
Discuss Issues concerning the management of people are to raised in a group ....................3
Explain various HRM practices that can lead to encouraging or discouraging the behaviour of
employees...............................................................................................................................4
Discuss how Increased overseas production can affect HRM policies..................................4
Explain the merits & demerits of performance related pay....................................................5
Discuss the problems associated with an older workforce and how HR practices change to
deal with this ........................................................................................................................6
Part 2................................................................................................................................................6
Outline basic assumptions of McGregor's Theory X and Theory Y......................................6
Discuss Maslow's theory of human needs and how it relates to idea of Fredericks Taylor's.7
Differentiate between Herzberg's hygiene & motivating factors. .........................................8
Explain psychological contract and the expectation of employees from employer. .............9
Part 3................................................................................................................................................9
Discuss the major challenges in forming operations system to serve a fast moving and fickle
market...................................................................................................................................10
Discuss how leaning towards globalisation can help in company's success........................10
Explain the difference between operational strategy of two companies ............................11
Discuss the importance of considering operational challenges in becoming and remaining a
global leader. .......................................................................................................................11
Conclusion ....................................................................................................................................12
References .....................................................................................................................................12

Introduction
Human resource management is one of the essential function of any organisation which
leads to the smooth functioning, managing and controlling of human resource of any
organisation. The various functions of human resource like planning, controlling, managing,
recruiting, compensating and so on helps proper functioning of human resource in the
organisation which leads to effective formulation of strategic management in the company.
Effective human resource helps in improving strategic performance of the organisation. This
report covers various factors of human resource management and strategic performance of the
organisation like what HRM practices may effect the behaviour of employees also how increased
overseas productions may affect HRM policies and merits and demerits of performance of
performance pay is also discussed. In addition to this various theories of motivation like
McGregor's theory, Maslow's theory, Herzberg's hygiene and motivating factors are also
discussed. Further more the for managing operations and quality various factors considered are
also discussed.
Part 1
BMW is one of the top multinational German company, dealing in luxury and expensive
vehicles and motorcycle. Company was founded in 1916 in Munich, Germany serving their
services world widely. Company provides number of services to their customers like financing,
maintenance and also repairing services serving globally. For this case BMW is taken as the base
company (Alsawaier, 2018).
Discuss Issues concerning the management of people are to raised in a group
There are number of issues that can arise in an organisation, management of the people in
the organisation is not an easy task, it requires lots of efforts from the managements side to
effectively mange their employees, but still there are number of issues concerning the
management of the people that are likely to be raised (Anderman and Anderman, 2020). In case
of BMW which has speedily increased their production and distribution facilities, the issues
concerning the management of people are likely to be raised in a group are discussed below:
 Issues concerning the management of people are to be raised in a group having proper
and healthy working environment, in context to the chosen which is increasing their
production and distribution facility, which increases the concern of having proper

working environment where planning is planning to expand their production.
Company needs to ensure their employees about this issue.
 Another issue concerning the management of the people can be working overtime,
employees are afraid that their better performance will only lead to working more
harder without any extra benefits. In context to BMW, company needs to ensure that if
employee's are working hard for their production expansion then they are paid extra
for that in order to resolve issues concerning the management of people.
Explain various HRM practices that can lead to encouraging or discouraging the behaviour of
employees.
Human resource management helps in effective functioning of human resource in the
organisation. It is the process of hiring the right and skilled candidate for the right job at the right
place in the organisation. Various practices of human resource helps in enhancing the
performance of an individual and motivating them towards achieving their goals and objectives
in the organisation (Andrews, 2016). In context to BMW, various human resource management
practices that can lead to encouraging and discouraging behaviour of employees are:
Training and development: Human resource manger needs to ensure that employees are
provided with proper training in order to enhance their skills and knowledge, as having proper
skills enhances the performance of employees which will encourage them towards working hard
and vice versa. In case of company, employees needs to be provided with required training and
development program.
Providing security and safety to employees: Having provided with proper security and
safety by the management will encourage employees. Where as not provided with proper
security will discourage them. In context to BMW, company needs to ensure that employees are
provided with safety and security (Boudreau and Cascio, 2017).
Discuss how Increased overseas production can affect HRM policies.
With increasing globalisation, companies are expanding or increasing their production in
the other countries which directly affects the human resource management policies and
management, as dealing with overseas production companies needs to focus on modifying
various factors like formulation of strategies, hiring, training and effective evaluation of
performance of employees working overseas. While increasing production oversea the major
factors that can effect the human resource policies are

Dynamic culture and language barriers: while expanding oversea production by the
company company can be affected if the production of goods and services is effecting their
culture in any way. The cultural differences can affect how the employees work in that
environment and managing them effectively will be challenge for the human resource manger. In
context to the chosen company, human resource department
Legal and political changes: The another factor which needs to be considered while
increasing the overseas productions is the changing political and legal factors of the oversea
countries, these factors equally effects the human resource policies as HR department needs to
ensure different policies (Dubin, 2017).
Explain the merits & demerits of performance related pay.
The performance related pay system is effective tool used by the human resource
manager where employees are paid according to their performance in the organisation by the
employer, under this employer continuously monitors the performance of its employees and pays
them according to the standards of their work. In context to BMW, the various merits and
demerits of performance of related pay is discussed below:
Merits of PRP Demerits of PRP
 Paying employees according to their
performance can help in improving
their performance and motivate them
towards their their goals and objectives.
 A effective PRP system in the
organisation helps in finding the best
performer and providing them with best
benefits.
 Performance related pay also helps
organisation in retaining their
employees.
 One of the biggest disadvantage of
performance related pay can sometimes
lead to demotivation of employees if
they are not paid correctly.
 It can also lead to effecting team spirit
and cooperation between employees.
 This process can lead to unequal pay
among the employees which can create
equal pay challenges in the
organisation.
From the above discussion, fair and effective performance related pay system can helps
BMW can helps company to improve the performance of their employees and motivates them

towards their goals and objectives (Edgeman, 2018). Also it will also allow company to find best
performer so that they can reward them accordingly. But there are various demerits of PRP
system which needs to be carefully considered by the company in order to enhance their
performance (Jensen, 2017).
Discuss the problems associated with an older workforce and how HR practices change to deal
with this
The older workforce are the group of workers that has reached a certain age and beyond
that, there are number of challenges that human resource manager needs to face while dealing
with the older workforce like
 one of the biggest challenges the HR faces while dealing with the older workforce
is the managing them as they are mostly less flexible, less motivated and because
of their age take more time to finish their work.
 Another challenge is controlling their absenteeism, older people are more like to
take more leaves as comparatively, which effects the functioning of the
organisation.
Managing older workforce
 Human resource needs to ensure to develop a mentoring program so as to promote the
transfer of skills and knowledge between younger and older generation, developing
platform where older generation can share their experiences with the new generation.
 Also human resource needs to develop flexible work environment for the older workforce
, providing equal work opportunities to them.
 In addition to this human resource needs to provide required training in order to enhance
their skills and knowledge.
From the above discussion, in context to the BMW, effective managing of older
workforce can benefit company. The older workforce carry huge experience which can help
company also conducting various program where older workforce can share their experience
with younger generation will enhance the skills of younger generation (Herzberg, 2017).

Part 2
Outline basic assumptions of McGregor's Theory X and Theory Y
McGregor's Theory X and Theory Y are theory used by the manger in order to motivate
their employees, the McGregor's mainly includes two theory, Theory X and Theory Y.
according. Under theory X manger assumes that employees are normally demotivated and tend
to dislike their work, so in order to motivate them manger thinks that they needs to be promoted,
punished and given rewards. Whereas in case of Theory Y, manger uses positive approach
towards their employees in order to motivate them. Manger develops trust based and
belongingness relationship with their employees in order to motivate them. Each organisation
has their own culture and also functions in the different culture. The McGregor's theory applied
in one society or organisation will be based on their culture and will be different from same
theory applied in other society. Theories works according to the working and functioning of an
organisation and its employees. The new economic powers in the east may be different than the
economic power in the west which may lead to different functioning of same theory accordingly.
The main focus of the manger is to motivate their employees effectively and efficiently in order
to enhance their productivity and performance (Luo and Tung, 2018).
Discuss Maslow's theory of human needs and how it relates to idea of Fredericks Taylor's
The Maslow's theory of human needs is one of the theory used in order to understand
how different levels helps in motivating individual towards achieving their goals. The are
different levels of hierarchy discussed below:

Physiological Needs: These are the most basic needs an individual needs in order to
survive, the most basic needs are needs for food, water, shelter. These are the most basic needs
individual requires in order to survive and be motivated.
Safety Needs: The next level of hierarchy includes the safety needs, under this individual
needs to be safe and secure in their surrounding, in order to motivate individual they needs to be
provided with basic safety needs .
Social Needs: social needs are the needs for belongingness from friends, family. In order
to be motivated individual needs to be feel belonged in a group, among friends. Social
interaction becomes motivation factor sometimes.
Esteem Needs: The another factor is Esteem needs, these includes getting noticed,
recognised, promoted and respected in the society or in organisation. In order to motivate
individual their esteem needs to be fulfilled.
Self- Actualisation Needs: The last one is Self actualisation needs, these needs includes
self fulfilment, individual realising their own potential in order to get motivated.
How it relates to the idea of Fredericks Taylor's
Both Fredericks Taylor's theory and Maslow needs theory are similar as both focuses on
motivating their employees effectively, both the theory focuses on motivating their employees by
satisfying their needs as it is assumed by both the theories that satisfying the needs of its
employees will make them to more harder towards their goals and objectives. In addition to this
according to both the theories employees needs and wants should be given main priority in order
to motivate them, also some program needs to be developed in order to satisfy the needs of its
employees (Mitchell, 2018).
Differentiate between Herzberg's hygiene & motivating factors.
The Herzberg's hygiene & motivating factors both are important in the organisation in
order to create satisfaction and dissatisfaction among the employees in the organisation .
Hygiene factors Motivating factors.
 The Herzberg's hygiene factors are the
type of factors which are related to the
work environment or the job
 Not availability of hygiene factors at
 Whereas the motivational factors are
the factors which motivates employees
in the organisation to improve their
performance effectively.

the work will create dissatisfaction
among the employees of the
organisation.
 The hygiene factors are working
condition, extra benefits, good
environment and so one.
 Whereas not availability of
motivational factors will not lead to
dissatisfaction but are needed in order
to do a task effectively.
 Some of the motivational factors are
promotional, recognisance, growth,
participation, certification and rewards
and so on.
Explain psychological contract and the expectation of employees from employer.
The psychological contract is defined as the contact which is depended on the mutual
trust and belief between the employer and employee. It is mainly on the psychological term
between bothy the parties. The contract mainly forms on the basis of communication between
employer and employees. For example, employees get a promise of increasing their salary or
promotion by the employer is part of psychological contract, where there was no written
statement only oral promise based on the belief and trust between both the parties (Moutinho and
Vargas-Sanchez, 2018).
a) Expectation from employer
Every individual before joining any job has certain expectations from their employer, as
an employee the basic expectation an employee can have from their employer can be providing
good working environment, paying fair salary, providing opportunities for growth and
promotion. Also there should be fair and clear flow of communication between employer and
employee in case of any problem. And providing all the required safety and security to its
employees
b) Expectation from employer providing part time work while you are studying
The expectations an employee can have from their employer while they are still studying
can be providing learning opportunities to them are they are still studying with no experience,
also providing safe and healthy work environment. They expect employer to form good and
healthy relationship with them so in order to build trust and belief among them and can have
smooth flow of communication.

Part 3
Zara is the top stylish clothing and accessories retail brand offering their services world
widely. It was founded in 1975 by Amancio Ortega and Rosalia Mera. Currently company is one
of the biggest retailer of clothing having more than around 3500 retail outlets globally, company
is having their operations in around 100 countries currently. The increasing growth of
globalisation has created huge challenges for the operations manager. In context to the managing
operations Zara company is taken into consideration.
Discuss the major challenges in forming operations system to serve a fast moving and fickle
market.
The major challenges that a company can face while setting operations system to serve a
fast moving and fickle market in context to Zara company are discussed below:
Increasing trend of Globalisation: The trend of companies going global is increasing,
the globalisation allows company to expand their business beyond their local boundaries and
increase their customers base and expand their market size but it has created a huge challenge for
operational manger tackle both the market also have handle competition from different market
where company operates. In context to Zara, company operates in more that 100 countries, so
chances of facing the competition for the operational manager will be higher so in order to tackle
the competition and continue to gain competitive advantage, operational manger of the company
needs to continuously analyse the local and global market in order to understand the trends and
technological advancement.
External factors: While doing business globally or even locally there are number of
external factors like environmental, social, political and economical which directly effect the
functioning and operations of any organisation. So in order to have smooth func6tioning of the
operation, operational manger needs to carefully analyse these factors and corrective actions
needs to be taken. In context to Zara, the external factors which are discussed above can affect
their operations globally, operational manger of the company needs to makes sure all these
factors are effectively monitored and controlled, in order to enhance their productivity (Shefrin,
2016).

Discuss how leaning towards globalisation can help in company's success.
In order to gain competitive advantage in the market and expand their operation. The
trend of expanding their business and operation globally is increasing among business enterprise.
Globalisation allows company to have access to the international market, globalisation helps
company to increase their customer base and also expand their market size. Moving towards
globalisation can helps company to interact with large number of customers on global scale and
also have access to advance technology and information. In context to Zara, which is one of the
top clothing and accessories retailer having operation in various countries, globalisation has
helped company to expand their customer base and also increase their market size effectively
which automatically helps company in enhancing their productivity and profitability. Also
globalisation allows company to have smooth flow of trade between different countries which
will increase their sale. Globalisation allows companies to understand different culture and
promote dynamic culture which can help in increasing their brand image globally. The
globalisation helps company is moving towards success effectively.
Explain the difference between operational strategy of two companies
In order to differentiate the operational strategy of two companies Zara and marks &
Spencer is taken into consideration.
In case of Zara, their operational aim is to attend minimum lead time, decrease their
inventory and also expand their choices. Company's focus is also on enhancing their creativity,
maintaining their quality in products and services as company thinks that main reason behind the
success of the company is by providing quality and value added products and services to their
customers. Effective management of the operational strategy can help company to gain
competitive advantage in the market. Where as in case of Marks & Spencer, the main focus of
operational manager of the company is to provide quality products that are easily accessible to
all their customers. Company focuses on expanding their customer base using offline and online
platforms (Wlodkowski and Ginsberg, 2017).
Discuss the importance of considering operational challenges in becoming and remaining a
global leader.
Operational management play an important role in the smooth functioning of various
operations of the organisation, effective operational management helps in ensuring product and
services provided are of great quality and are value added. Also it is the responsibility of the

operational manger to ensure that all the operations are effectively carried out satisfying the
needs of their potential and targeted customers, there are numbers of operational challenges
which are needed to be considered and monitored effectively by the operational manger in order
to effectively manage the performance of the organisation and become and remain a world leader
. In context to Zara the various operational challenges the company can consider to effectively
mange their operation are:
Measuring performance: In order to effectively mange their operations, operational
manger needs to continuously and effectively monitor performance of its employees, as
enhancing their performance motivates them to work hard.
Controlling overheads: Another challenge that can be faced by the operational manger
can be increasing overheads, which can leads to reducing the efficiency of the company.
Company needs to effectively manage their overheads.
Conclusion
From the above report it can be concluded that human resource is on of the most essential
function of any organisation which helps in managing and controlling all the activities and
functions related to the human resource. Effective functioning of human resource helps in the
smooth functioning of strategic management. In this report the importance of human resource in
the smooth functioning of strategy management is highlighted. In addition to this how individual
can be motivated using various motivational strategy is also highlighted. Furthermore the
importance of managing operation globally and maintaining the quality is also explained.

References
Books and Journals
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Shingo operational excellence model. Business Process Management Journal.
Herzberg, F., 2017. Motivation to work. Routledge.
Jensen, R.S., 2017. Pilot judgment and crew resource management. Routledge.
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Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI
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Shefrin, H., 2016. Behavioral risk management: managing the psychology that drives decisions
and influences operational risk. Springer.
Wlodkowski, R.J. and Ginsberg, M.B., 2017. Enhancing adult motivation to learn: A
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