Strategic HRM Report: Models, Culture, and Practices for BMW

This report delves into the human resource management (HRM) strategies employed by BMW, a multinational automotive company. It explores strategic HRM models, emphasizing their role in achieving competitive advantage, and examines the influence of regional and national cultures on HRM practices. The report analyzes organizational models of employment and leverage within BMW, differentiating between HRM and personnel management using Story's 27 points. It also addresses the importance of local culture in hiring and firing, as well as the relevance of HRM practices in transactional and international markets. Furthermore, the report highlights the impact of employment law on international HRM. Finally, it provides examples of BMW's HRM practices, offers recommendations, and concludes with a comprehensive overview of the company's approach to human resource management, making it a valuable resource for students studying leadership and management on Desklib.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Explain the concept of strategic HRM models which helps in achieving competitive advantage
in market. ...............................................................................................................................3
Discuss the impact of regional and national culture on HRM practices................................5
Explain a appropriate organisational model of employment and organisation leverage in
context of selected firm..........................................................................................................6
Differentiate between HRM practices and personnel management by using Story's 27 points
and various human practices which are conducted by the firm in Asian market...................6
Importance of local culture in hiring and firing & HRM practices needs in
transactional/international market. ........................................................................................9
Examine the difference in relevance of employment law when international HRM influence
local business system. ..........................................................................................................10
Justification with the help of an appropriate example of firm using good HRM practices..10
Recommendation..................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Human resource management refers to an activity which helps an organisation to manage
its human resource in a proper manner, so that they efficiently achieve goal of an organisation
(Adla and et. al. 2019). Human resource management conduct various training and development
programs which increase skills and knowledge of employees. Higher skills motivates employees
to do work with their full efficiency and achieve organisation objective. Human resource
management practices includes various strategies and policies which is conducted by an HR
manager for successfully conducting business operations and activities. It includes various
activities such as recruiting, selecting, training and development, performance management,
compensation management, encourage employee involvement in decision making and so on. For
this report BMW company is taking into consideration. It is a multinational company which is
deals in luxury vehicles and motorcycles. It is an automotive company founded by Camillo
Castiglioni, Franz Josef Popp, Kari Rapp in 1916. Its headquarter is in Munich, Germany and
almost 133,778 numbers of employees are working with it. This report includes various
strategies of HRM, impact of regional and national culture on practices of HRM, organisation
model of employment and organisation leverage used by an organisation. Other than this it
includes story's 27 points of difference between HRM and personal management.
MAIN BODY
Explain the concept of strategic HRM models which helps in achieving competitive advantage in
market.
Human resource management play an essential role in the growth and development of
company (Alshira’h and et. al. 2019). For success of any organisation its important that they
effectively manage its HRM activities so that higher productivity and efficiency of employees is
achieve. Human resource management strategies refers to an overall business plan which helps in
effectively managing its human resource with its business activities. HRM strategies provides
direction for various activities of HRM such as recruiting, selecting, performance appraisal,
compensation management and so on. In context of BMW, they use strategic HRM model for
achieving competitive advantage in market. The concept of strategic HRM model is mention
below:

Strategic HRM model- SHRM means formulating various human resource management
practices and polices which helps in producing employee competencies and behaviours which
helps an organisation to effectively achieves its goal and objective (Armstrong and Taylor,
2020). According to Armstrong, strategic human resource management refers to an approach
which helps in decision making after concerning employment relationship and organisation
strategies and polices (Banfield and et. al. 2018). SHRM is mainly concerned with maintaining
relationship between HRM and strategic management in an organisation. In context of selected
company, strategic human resource management helps in decision making related to employment
relationship, recruitment, training, development, performance management and so on. In context
of selected firm, various concepts which produce value for company are mention below:
 Increase employee engagement- In context of BMW, company encourage employee
engagement in decision-making which helps an organisation to make effective decisions.
While employee engagement in decision making increase motivation of employees which
increase their efficiency level and maintain a good environment in organisation (Berman
and et. al. 2019).
 Brand image construction- In context of selected firm its positive brand image helps in
easily promote its products in market. Brand recognition and customers engagement
increase generate value for organisation (Chelladurai and Kerwin, 2018).
In context of BMW, various components of strategic human resource management which
helps in achieving competitive advantage in market are mention below:

 Human resource- In context of selected firm, employees and human resource is the
primary source of competitive advantage of company. Selected company use strategic
human resource management for effectively focusing on their human resource (Cooke
and Kim, 2018).
 Activities- In context of selected firm, they develop various HR programs such as
training and development which helps organisation to increase skills of their human
resource and achieve competitive advantage in market. They formulate and implement
various policies and practices which develop employees (Dewangan and et. al. 2020).
 Pattern and Plan- In context of BMW, company plans and pattern are imply a fit
between HR strategies and organisation business strategies and between all human
resource activities. It will help company to achieve competitive advantage( Deyo, 2019).
 Purposeful- According to this competent of SHRM, selected company can achieve
competitive advantage in market if its people, practices and planned are all purposeful
and all are effectively directed towards achievement of common goal of
organisation(Faubert, 2019).
Discuss the impact of regional and national culture on HRM practices.
Culture refers to a set of beliefs, ideas, values, attitude, behaviours of a person which is
shared by a society and transferred from one generation to another (Iqbal and Hassan, 2018).
Regional and national both the culture are influenced the growth of business. It refers to the
difference and similarities between countries. For success of any organisation its very important
to analysis both the culture for avoiding assumption at the time of doing business. Culture play
an very important role in changing and shape the behaviour and attitude of a person. Cultural
factors are command the behaviour of employees. In context of selected firm, they face a big
difference between regional and national culture. Its not important that a HRM practice is
applicable in all place. In context of selected company, its HR department effectively analysed
all factors of regional and national culture and make effective strategies of human resource
management which helps in the development of company.

Explain a appropriate organisational model of employment and organisation leverage in context
of selected firm.
Organisational model refers to the role of consumer, hierarchy and team development in
an organisation(Jacoby, 2018). While employment model refers to various methods which helps
an organisation to recruit best and talented employees for their organisation. Which helps an
organisation to effectively achieve their organisation goal. Organisation employment model
includes various approach related to recruitment for a specific position in business. Their are
various models of employment which are mention below:
 Competitive employment- This employment model states that all the employees
whether they do full-time job or part-time job in a business all get same benefits that their
co-workers enjoy. According to this model employees are independently perform their
job and do not require any support (Kamoche, 2019).
 Supported employment- It refers to a model of employment which provide necessary
support to employees for achieving competitive work environment. Main objective of this
model is to provide various employment opportunity in the labour market for employees
with important disability (Kim, 2019).
In context of selected firm their HR manger use competitive model of employment for
hiring best employees for full-time and part-time job and provide equal benefits and reward
which helps organisation in increasing their worker efficiency and productivity. In context of
selected firm organisation leverage helps in enhancing resources and its capability for increasing
its competitive advantage.
Differentiate between HRM practices and personnel management by using Story's 27 points and
various human practices which are conducted by the firm in Asian market.
Human resource management refers to an activity and strategies which help an
organisation in effectively managing its human resource and increase their efficiency and
productivity with the help of various human resource practices (Kundu and et. al. 2020). It helps
an organisation in effectively achieving its organisational goal. While personnel management
refers to an administrative specialization which focus on hiring and developing employees for
effectively achieving organisation goal. In context of selected company on the bases of Story's
27 points various differences between human resource management and personnel management
are mention below:

Benchmarks Human resource management Personnel management
Communication In context of selected firm, its
human resource management help
organisation to flow a direct
communication between
employees and employers. Which
reduce conflicts and disputes and
help organisation in effectively
performing its business operations.
Selected company regularly
conduct various task and activates
for maintaining effective relation
between employees and employer
(Lee and et. al. 2020).
In personnel management it
involves individualistic approach
at the time of communicating
with employees. In personnel
management there is no direct
communication between
employee and employer. This
will help an organisation in
maintaining its work culture in
organisation (Lei and et. al.
2021).
Job design In context of selected firm, human
resource management increase
power of coordination between all
employees which helps them to do
team work and efficiently achieve
goal of organisation. HRM job
design is mainly focus on
teamwork (Machlis and Tichnell,
2019).
Job design of personnel
management is based on division
of labour. It does not focus on
increasing ability of employees
to do teamwork. Rather than this
it focus on increasing and
utilizing individual skills and
ability. In context of selected
firm, they select talented
employees in their organisation
and all are able to individually
work with high efficiency.
Selected firm divides whole
work into various projects and
assigned each project to
individual worker according to

their skills and ability(Mitchell,
2018).
Speed of decision
making
In context of selected firm, human
resource management is fast in
taking decision. When company
operates its business in Asian
market they face various conflicts
between employee and
management which cause
reduction in their performance.
Human resource management take
effective and fast decisions for
solving conflicts. HR manager of
BMW, timely take all decisions
which increase efficiency of
employees (Mone and et. al. 2018)
.
In terms of personnel
management its speed of taking
decisions is slow. It individually
take all decisions which
consume more time. In context
of selected firm, at the time of
operating their business in Asian
market they need effective and
efficient decision for growth of
company. Personnel
management take slow decisions
but its decisions are
effective(Morgeson and et. al.
2019).
Practices of human resource management-In context of select firm, it perform various HRM
practices at the time of operating its business activities in Asian market. Various practices of
personnel management are mention below:
 Provide securities to employees- In context of selected firm, it is an automotive
company and employees are working on machinery for manufacturing luxury vehicles.
Selected company provide a safe working environment and free life insurance to their
employees which increase their efficiency and motivation level. This practice of HRM of
selected company increase image of company and maintain a good relation between
management and employees (Nam and Lee, 2018).
 Selective hiring- Another important practice of selected company is that they hire and
select top candidates from pool of applications. High skills employee save cost of training
for company and achieve effective and innovative ideas from them. Selected company

select best and high skill employees which helps them to achieve higher growth in Asian
market.
Importance of local culture in hiring and firing & HRM practices needs in
transactional/international market.
In context of selected firm, it face a big difference of culture at the time of operating its
business in Asian countries. Local culture play an essential role in influencing human resource
management practices of selected company. For effectively hiring and firing employees its
important that they understand that place culture. Culture of a country guide the behaviour of
employees so its very important for company to analysis all factors of culture for selecting best
practices of human resource. Cultural values are the important part of external factors which
influence HR practices and policies. In context of selected company, all decisions are taken by
higher authorities and all employees are in favour of it but its not important that they can adopt
same policy while operating its business in Asian market. So its very important for an
organisation to effectively analysis local culture (Nguyen and Hadikusumo, 2018).
Recruitment process- In context of selected firm, its HR manger effectively analysis the
factors of local culture which helps them to easily attract more and more candidates towards
vacant job in their company. Analysing traditional standards and cultural values helps
organisation to select best and effective candidate for their organisation which helps in achieving
organisational goal in Asian market (Oluwatayo and Adetoro, 2020).
Firing process- Local culture helps organisation to understand all government laws and
regulation laws related to employees. In context of selected company, if they fir any employee
they follow all rules and procedure of government which helps them in avoiding legal conflicts
and maintain their reputation in market (Page and Connell, 2020).
In context of BMW, they need to effectively analysis and study all local cultural factors.
Local culture of a country influence the HRM practices most at the time of operating its business
activities in international market. All countries have their different cultures from each other.
Various HRM practices of selected firm are affected which are discuss below:
 Compensation & reward policy- In context of selected company, employees from
different country and culture are motivated by different motivational tools. Such as its not
important that employees in other country are also motivated by monitory rewards.
Selected company do proper research on culture of country and select their HRM

practices according to that. Which helps company to effectively spread its business
worldwide.
Examine the difference in relevance of employment law when international HRM influence local
business system.
In context of selected company, they face various problems at the time of
internationalisation of business. Rules and regulations related to employees and employment
working condition is totally different from one country to another. At the time of globalisation a
company face many changing and dynamic environment which influence the growth of business.
For success of BMW in international market its important that they analysis this dynamic
environment and formulate effective strategies and polices which help organisation in
successfully running its business international market. Various employment law which influence
local business system are mention blow:
 Labour and employment law- For success of an organisation its important that they
follow all rules and regulations of a country related to its employee. Every country have
its own law related to employment. In context of BMW, it world operate its business
activities by following all rules and regulations of of government related to employment.
Selected company effectively analysed all employment law and make their policies
based on these law. Working hour, minimum wages, vacations are fixed according to
employment law of that country (Pera, 2019).
 Intellectual property- In context of selected firm, its innovate new designs for their
vehicles and operate its business worldwide. So its very important for company that they
should registered its all product and services and provide protection through intellectual
property rights (Song and et. al. 2018).
Justification with the help of an appropriate example of firm using good HRM practices
In context of BMW, its HR managers adopt effective HRM practices which helps them in
successfully operate its business operations in different countries. Its various HRM practices help
organisation in effectively managing its human resource and efficiently achieve its organisational
goal. Various HRM practices of BMW company are mention below:
 Fair and performance based compensation- In context of selected firm, they provide
fair and performance based compensation to their employees, which increase their
motivational level and make them to do work with their full efficiency and productivity.

Fair compensation to employees maintain a good relationship between employees and
organisation, which maintain a good environment in organisation and make employee to
efficiently achieve their organisational goal (Stewart and Brown, 2019).
 Recruitment and selection- In context of BMW, this HRM practice helps selected
company to attract more and more talented candidates towards company. Relevance
company select high skills and talented candidates for vacant job in organisation. It HR
manager use various techniques for attracting more and more employees towards
company and select the best one from pool of applications. High efficiency and skills of
selected employee help organisation to effectively achieve its goal.
Volkswagen- It is an another example of a company which use good HRM practices. Its human
resource management practices helps company in successfully operating its business in different
countries. It is an automotive company which is founded in 1937, headquarter is in Germany.
Various HRM practices of selected company is mention below:
 Training and development- It helps an organisation to increase its employee skills and
knowledge by providing them proper training. In context of Volkswagen, it provide
training to its all employees whether it is new or old employees. Training for their
existing customers will based on their requirements and needs. While induction training
is given to new employees. This will help organisation to efficiently achieve its business
goal.
 Organisation culture- In context of selected firm, its HR manager provide a good
organisation culture to their employee which increase their loyalty towards company. Its
HR manager listen all problems of employees and timely resolve it which helps in
reducing conflicts between management and employee. Good organisation culture and
working environment help company to retain their talented employees for log period of
time (Bratton, 2020).
Recommendation
From above discussion it is analysed that for success of any organisation its very import
to effectively manage its human resource and increase their efficiency for achieving
organisational objectives. In context of selected firm, some of the recommendation related to
HRM practices which helps organisation in enhancing efficiency of their employees are mention
below:

 Training and development- In context of selected firm it is recommended that selected
company needs to provide proper training to its all employees. Whether it is new and
existing customers. For maintaining efficiency of their existing employees its important
that they regularly conduct training and development programs based on their needs and
requirement. It will increase employees efficiency and productivity which helps an
organisation to effectively achieve its goal (Hamdoun and et. al. 2018).
 Taking Feedback- After analysing above it is recommended that selected company
needs to timely take feedback form their employees for understanding their requirements
better. They can introduce telephonic policy for their employees in which any employee
can directly contact to higher authorities for related to any problem. This will help in
direct communication between management and employment, which maintain a good
relation between them and reduce conflicts and disputes.
CONCLUSION
From above discussion on this report it is analysis that human resource management play
an essential role in the growth of an organisation. It increase efficiency and productivity of
employees which help an organisation in achieving its objectives. Their are various human
resource management practices such as training and development, compensation management,
employee satisfaction which helps an organisation to effectively manage its human resource
management. Story's 27 point of differentiation provides various points which helps in better
understanding the concept of human resource management practices and personnel management
practices. Their are various strategies such as talent management, performance management
which add value for organisation. From this study it is analysed that both the national and
regional culture has a great influence on HRM practices. It is concluded that a business is also
face various differences in employment law at the time of internationalisation of business. So for
success of organisation its very important that they appropriately use human resource
management practices and strategies.

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