UGB224 Business Management: HRM, Motivation, Operations & Quality

This report analyzes key aspects of business management, focusing on Human Resource Management (HRM), employee motivation, operations, and quality control. It addresses issues in managing a diverse workforce, the impact of brand image on employee behavior at BMW, and the effects of overs...Read More

Business Management

Table of Contents
INTRODUCTION...........................................................................................................................3
Part A: Human Resource Management............................................................................................3
Issues related to management of human resource........................................................................3
Brand Image of BMW and Expected Behaviour of the Employees along with policies which
may encourage or discourage employees....................................................................................4
Effect of overseas production on HRM Policies..........................................................................5
Advantages and Disadvantages of Performance Related Pay......................................................6
Benefits and problems faced with Older Workforce along with change in HR Policies.............6
Part B: Leading By Motivation........................................................................................................8
Assumptions of McGregor’s Theory & Opinion.........................................................................8
Globalization helps or hinders ZARA Success ...........................................................................8
Maslow's Need Theory along-with how it relates to Frederick Taylor Ideas..............................9
Difference between Herzberg's Hygiene and Motivating Factors.............................................10
Psychological Contract & What we expect from employer in career and part time work while
studying......................................................................................................................................11
Part C: Managing Operations & Quality.......................................................................................13
Challenges in setting up an operations management.................................................................13
Globalization helps or hinders ZARA Success .........................................................................13
Comparison of operational strategy of Zara with Marks & Spencer.........................................14
Operational Challenges for Becoming and Remaining a World Leader...................................14
CONCLUSION..............................................................................................................................15
REFERENCES................................................................................................................................1

INTRODUCTION
Business Management refers to the teamwork and organization of various activities of
business. In this manager supervise the functioning and try to assist the employees to achieve
efficiency. Manager also oversee and instruct new employee's so that organization can achieve
its objectives.
BMW is a producer of luxury vehicles it was founded in 1916. It is one of the leading
companies in automotive sector. BMW serves worldwide to gain more customer base. Apart
from this they also provide Financial services. ZARA is among the biggest fashion group. ZARA
is also the largest in the fashion industry. It was founded in 1975 by Amancio Ortega & Rosalia
Mera. They are selling their products on their own all over the world. Company provide quality
products to their consumer.
This report consist of issues of managing people, image of BMW & how overseas
production affect HRM Policies. It also explains the advantages and disadvantages of
performance related pay with benefits of having older workforces. This report also discuss
various motivation theories like human needs, 2-factor theory etc. It also provides information of
challenges in setting up operations and effect of globalization on ZARA Success. This report
consist of difference in operational-strategy of M&S & ZARA with challenges faced by the
companies to remain world leader.
Part A: Human Resource Management
Issues related to management of human resource
Diversity issues
Diversity issue are very common in an organization which has operations all over the
world as they employ people from various different culture (Berman, and et.al, 2021). BWM
have their operations in around 110 countries with very wide culture. BMW believes that this can
only be overcome when employees have trust on their teammates.
Poor Communication
It is one of the issue which is mostly faced by the manager as each and every member of
the team is different from other which can lead to the miscommunication. For this BMW
organize various social programs to help the employees to communicate with each other (BMW
Group,2022).

Motivating Employees
It is also the responsibility of the management to motivate their employees from time to
time. As BMW is a brand which have its employees from all over the world it gets difficult to
analyse which employee will be motivated with which factors.
Training of New technology adopted by company
It is difficult for the manager to train the employees with new technology when
organization adopts new technology very frequently for the innovation in products or working.
As BMW constantly innovate their system and products they provide proper training so that
employees can adapt to those technologies.
Brand Image of BMW and Expected Behaviour of the Employees along with policies which may
encourage or discourage employees
BMW is one of the leading company in the automotive industry. Their image is of those
cars which provide luxury, peculiarity or quality German engineering. Their current slogan for
brand positioning is “The Ultimate Driving Machine”. The certain behaviour of employees
which is expected is like -
Customer Support
Providing customer support is very crucial for any business as it will affect the brand
image of the company. Here BMW is one of the leading company so it is expected from their
employees that they will solve any issues of the customers which will maintain the brand loyalty
of customer as well as improve the brand image (BMW Group,2022).
Positive attention from employees
Employees should attract positive attention even when they are off-duty. As BMW is
well known brand and their employees should have positive image outside of the workplace
which will improve their brand image.
Expressing Company Value
Employees should depict the value of the company which will build the trust of the
customers. As one of the value of BMW is openness to adapt new techniques and opportunities
so their employees should be able to show these values.
HRM practices which will encourage or discourage
Providing Security

The factor which is stable in a human life is work which is very important for some
people along-with their families. BMW always support their employees as they are very peculiar
while checking the health of the employees and providing any help.
Performance-based Compensation
It is very important for an employee to have compensation according to their
performance. BMW ensures that their employees are getting appropriate compensation related to
their performance. They also ensure that every employee is comfortable and satisfies with their
work and work culture.
Ensuring Gender Equality
If a company is not ensuring that each gender are getting rights in their organization then
it is possible that the employees will be demotivated and not perform according to the standard.
Effect of overseas production on HRM Policies
Performance Management
BMW's managers overview work of their subordinates so that they can complete the
work effectively and efficiently. They focus on establishing the goals and objective such that
which will help the employees complete work according to standards. But they have to make
changes in their policies when they expand their business they also have to focus that the
employees can build and establish the common culture of the organization (BMW Group,2022).
Employee Relation
BMW provides various facilities such as insurance, housing facility, sick leave and others
to their employees so that they have positive relations with the employees but when they expand
to some other country they have to research about their cultures so that they can modify their
policies. For example every country have different festivals so for that they may have to modify
the quantity of those leaves.
Personal Management
BMW staff manages various personal information of the employees such as their
qualification, training and various others. They also know how to motivate their employees to
reach the goals. They focus on team building, time management etc. but when they expand to
other countries they may have to change their motivation factors or the method of team building
so that others can feel welcomed.

Advantages and Disadvantages of Performance Related Pay
Advantages
 Increase Motivation – Getting compensated for the work done is the best motivation(Da
Silva, Riana, and Soares, 2020). If employees get the compensation for work done then it
will motivate them to work hard to reach the goals of company.
 Improves efficiency – Whenever employees realize that they get compensated more for
their share they will try to reach more goals of company within a period. This will
improve their efficiency of work.
 Reduce need for supervision – As the employees are getting clear idea of what they are
meant to achieve the need for supervision will be required less. Employees themselves
will try to achieve the goals of the company.
Disadvantages
 Influence Teamwork – As every employee will be inclined towards meeting their own
goals to get more compensation it will definitely affect the teamwork of the company. It
can also raise conflicts among the employees regarding the quantity of work done by
them. To overcome this HR should put focus on forming goals according which include
teamwork. Quality Work – As employees will be more focused on getting more done it will affect
the quality of their work. To overcome this policy should include quality goals with the
amount of work done.
Benefits and problems faced with Older Workforce along with change in HR Policies
Benefits
One of the values of BMW is Trust and responsibility which can be ensured with the
older workforce. As the time period of their working in the organization is more which reflects
their loyalty towards the organization. Responsibility can be ensured as they are familiar with the
environment and the decision making of the business which helps them to complete it personally
and effectively.
They are familiar with the networks of the business which helps them to maintain BMW
image and their relation with the dealers. They are very skilled in their work and can easily train

the new employees of the company. Also, they are very efficient in their judgement and can
easily judge the nature of the new workforce.
Problems
BMW's work with innovation in their cars as well as work environment which makes it
difficult for them to adjust with the new technologies and for that they will also need training.
They can be biased with their judgement towards other employees.
They might need more incentives as they are older employees of the company which can
demotivate newer employees. The older workforces are too used with their working that they
sometimes not want to adapt to the new technology, and they need time to adjust with the new
way of working.
Changes in HRM Policies with Older Workforce
HRM policy of BMW should change their training program for the older workforces as
they might need it frequently so that employees are not lacking in their work. HRM policies
should have adequate break time for the employees so that employees are efficiency can be
increased.
HRM Policies of BMW should include certain skills which are to be established in the
older workforce so that they can easily work with the new employees. It should also include
proper rule for any type of misconduct with the new or older workforces so that it will not harm
brand image of BMW.

Part B: Leading By Motivation
Assumptions of McGregor’s Theory & Opinion
Theory X
Theory X manager tend to have a negative viewpoint for their employees. This theory
has some assumptions like their employees avoid work responsibility, they don't like their work,
they have to manage them, they don't have any motivation to work and various others
(Daneshfard, and Rad, 2020).
Theory Y
Theory Y manager tend to have productive viewpoint of their employees. They assume
that their employees are motivated enough, like to do the work, tend to take responsibility of
work, have creative mindset, they like take their work as challenging, and various others. These
managers like to have their management style decentralized (Hopper, 2020).
Reasons why McGregor’s Theory cannot be applied in Eastern Countries
According to Hofstede western countries culture is very different as in western countries
they are inclined towards Individualism which is way different in the eastern countries as they
are more inclined towards their families, and they work hard to provide for them. McGregor’s
have an only 2 viewpoints of employee's which is either they are not motivated or they are
motivated.
In eastern countries the economic dependence on the worker is more, so they are
normally motivated to work so that they can make their families condition improve. Also, it is
true that culture of a country changes the motivation of work while in some culture
belongingness is important so it can also happen that in another culture amount of payment is
more important. Now-a-days employee's give more importance to their personal development
for which management gives training which will ensure the quality of work done by them.
For getting a good quality of performance from an employee it is responsibility of both
management and employee to work together which is not favoured by Theory X&Y.
Globalization helps or hinders ZARA Success Economic Growth – As ZARA globalize it will lead to economic growth of the company
as they have access to various resources of other countries, they can get skilled labour
also it will increase the reach of the business which will impact the growth.

 Increased Competition – As the business of ZARA will enter into new countries it will
increase the level of competition. It as a positive point as the business try to beat the
competition which improves their efficiency as well as the quality of products. They also
try to innovate their products so that they can attract new customers. Environmental Concerns – Every country has different laws regarding the environment
which will increase the research time for the business. As ZARA have to understand
every country environmental policies so that they can avoid any problems which will
hamper their image.
 Increase in Revenue & Customer Base – Globalization helps the business in increasing
their revenue as well as their customer base. ZARA enter whichever country they make
their customer loyal to them because of the quality of the products which they provide.
Their price also justify the quality of their products. They innovate the design of their
products which impress the customers. With these things they create a loyal customer
base for their brand which help them to grow.
Maslow's Need Theory along-with how it relates to Frederick Taylor Ideas
Maslow's Need Theory
 Physiological Needs – According to Maslow physiological needs are important for a
human to survive as it contains food, shelter, water, clothes and various others. So these
needs should be above any other needs (Fallatah, and Syed, 2018).
 Safety Needs – These needs are somewhat difficult as this requires financial security as
well as physical & mental safety. For this the organization have to provide ample amount
of break and insurance which can motivate the employees.
 Love & Belonging Needs – These needs require interaction with other people so that they
can develop friendship between them. This need make the human feel welcomed in the
society which boost their confidence.
 Esteem Needs – These needs considers the ego of the person to be satisfied. In this
human should have faith in themselves that they are important and can accomplished
what they want.
 Self-actualization Needs – In these needs humans realize their capabilities, observe their
growth, and they try to ignore the fact about what others think of them.

Relation with Fredrick Taylor Ideas
Fredrick Taylor Scientific theory states Taylor's ideas that the employee's can only be
motivated with the remuneration they receive for their work. Taylor thinks that workers are not
very much inclined towards work because of which they have to be closely supervised. Also,
they will work only when they receive financial incentives.
Maslow's idea related to Taylor's ideas as according to Maslow's theory the very 1st and
2nd need i.e. physiological and safety needs are related to the remuneration they receive from
their employer. In 1st stage they will be able to fulfil their basic need of House, food, etc. only
when they have money while 2nd need is also based on providing financial security to the
employees.
Difference between Herzberg's Hygiene and Motivating Factors
Herzberg has given a 2-factor theory which is also said as motivator-hygiene theory.
Those 2 factor are Motivators and Hygiene Factors. He believes that antonym for “Satisfaction”
is “No Satisfaction” while for “Dissatisfaction” is “No Dissatisfaction”.
Hygiene Factors
These factors are basically important to motivate the employee's but it does not motivate
for longer period. But If these factors are not there then it can lead to dissatisfaction among
employee's. These factors are also known as Dis-satisfiers (Bevins, 2018). These factors include
 Amount of pay or how they are compensated
 Type of company policy such as is it inflexible or not clear.
 Are the employee's provided with the basic benefits
 The behaviour of their colleagues and their relation with each other
 Does the employee's have job security.
Motivating Factors
These factors are basically psychological needs of a person which are treated as those
additional benefit. These are called satisfiers. This factors also motivate the workers to perform
better. This motivating factors includes
 Employees are appreciated or applauded for their achievement
 Getting some sort of reward so that they can have sense of accomplishment

 There should be some sort of opportunities for growth so that employee's can be
motivated.
 The work which they are doing are interesting for them to perform
 They should have ownership for their work and responsible for their work.
Difference
 Motivational factors are associated with the job satisfaction while hygiene factors are
associated with job dis-satisfaction.
 Hygiene factors are more inclined towards basic needs of an employee's while motivating
factors are inclined towards the emotional needs of an employee's.
 Hygiene factors are on lower level of Maslow's pyramid as this are related tangible while
Motivating factors are on upper level of Maslow's pyramid as these factors are less
tangible in nature.
 If there is absence of hygiene factors then it might lower the motivation of the employees
while in the absence of motivating factors the performance of either team or an individual
can be affected.
Psychological Contract & What we expect from employer in career and part time work while
studying
Psychological contracts are those contract which are not written in any agreement but it is
expected by an employee and employer. It is said to be an intangible agreement. This is those
informal commitments which help them to make their relationship (Soares,and Mosquera, 2019).
It is different from the written contract which is signed by the employee. Employment
contract is legally binding while psychological contract are not legally binding. Psychological
contract is more related to having an encouraging manager, fair compensation and various
others.
What employee expect from employer in career Equal Treatment – It is mentioned in the Anti-Discrimination Law that there should not
be any misconduct on the basis of caste or gender and various others. As it will reduce
the motivation to work.

 Safety – It is expected by an employee that when they are at their workplace they are safe
from any type of injuries like they won't have to face any harmful chemicals or any
workplace bullying. Open Communication – Employees do work in efficient way when their employer is
giving proper description of work and the objectives.
 Acknowledgement of Efforts – It is a factor of motivation for employee's that their
employer is acknowledging them for their efforts. Also, it is very less expensive for the
employers to motivate employee's as a simple thank you are sufficient for the employee's.
What employee expect from employer in part-time work while studying Training stipends – In this an employee expect when doing a part time job he will get
stipends for those periods which will help to develop their skills efficiently. Days Off for Exams – It is expected that which managing study and job employee will
need days off during his exam time so that they can focus on study.
 Employee's Discount – If they are working in some kind of retail store employee expect
that if he purchases something from the store he will have to pay lower price.

Part C: Managing Operations & Quality
Challenges in setting up an operations management
Higher competitive Industry
As the company globalize itself they have to face the competition from all over the world
which creates challenge for the managers as they have to move with the trends and constantly
upgrade the software for better work efficiency (Whysall, Owtram, and Brittain, 2019).
Managing Sustainability for Business
There are 3 factors of sustainability which are economical factor, social factor &
environmental factor. Here manager of the ZARA will have to analyse which factor will affect
their manufacturing facilities or what will be the outcomes of these factors. This analysis will
help the manager to make effective strategy which will be implemented in manufacturing
facilities.
Ensuring there is effective communication
Uniformity and communication with employee's gets difficult when the company is fast
moving. It is major concern for managers of ZARA to keep the effective communication with
every stakeholder. As ZARA have a wide workforce it is important to have proper strategy for
demand planning or forecasting, etc. to ensure efficiency in outlets and factories.
Constant motivation needed
It is important for the manager of ZARA to constantly motivate the employee's to
maintain their efficiency. They should also know how their employees are motivated like either
they want monetary compensation or psychological needs. It will be a challenge because they
have employee's from various culture and their motivation will also differ from each other.
Globalization helps or hinders ZARA Success
Benefits achieved from globalization Economic Growth – As ZARA globalize it will lead to economic growth of the company
as they have access to various resources of other countries, they can get skilled workforce
also it will increase the reach of the business which will impact the growth. Increased Competition – As the business of ZARA will enter into new countries it will
increase the level of competition. It as a positive point as the business try to beat the

competition which improves their efficiency as well as the quality of products. They also
try to innovate their products so that they can attract new customers. Environmental Concerns – Every country has different laws regarding the environment
which will increase the research time for the business (Pleninger, and Sturm, 2020). As
ZARA have to understand every country environmental policies so that they can avoid
any problems which will hamper their image.
 Increase in Revenue & Customer Base – Globalization helps the business in increasing
their revenue as well as their customer base. ZARA enter whichever country they make
their customer loyal to them because of the quality of the products which they provide.
Their price also justify the quality of their products. They innovate the design of their
products which impress the customers. With these things they create a loyal customer
base for their brand which help them to grow.
Comparison of operational strategy of Zara with Marks & Spencer Inventory Management – Zara follows Lean inventory management for their stocks,
because they have very less number of stock which are outdated While Marks & Spencer
tend to make the inventory analysing stocks of a particular day. Product Quality – Zara has a high quality product where customer purchases those
products only because it is possible that the product will get out of stock. While M&S
products are also quality products, but they are not according to the current fashion in the
market.
 Location Strategy – Zara has a very impressive way to distribute its products which is
they make, designs and supply all the products themselves. Most of their outlets are
owned by them. While Marks and Spencer sells their product through different stores in
various countries.
Operational Challenges for Becoming and Remaining a World Leader
Overcoming Marketplace Development
As the market area increases the demand and choice of the customers also changes this
will also want changes in their marketing strategy (Operation Management, 2021). ZARA
understands their customer very well as they provide innovative products to their customer,

which are made according to their culture and also marketing strategy is as per the customer
culture.
Changes in the Economic Reforms
As a company enter into a new country they will have to follow through their trade
barrier. ZARA constantly monitors the tariff rates of the country so that they can adjust their
manufacturing unit to incur less operating cost so that the product is provided to the customers at
their choice of range.
New Technologies
As an organization grows they have to install new technologies to achieve efficiency in
their work. ZARA also have to install new technologies constantly so that they can provide their
customers with excellent services as well as innovation in the products. It requires constant
training to the employee's too so that they can have a better understanding of the technology.
Managing Website
Having a website which have speed, easy to access and have better performance can
cause satisfaction to the customers as they can easily operate and understand your website.
ZARA's website is also easy to access and it has better performance than others in the business.
CONCLUSION
From this report it is concluded that BMW has a impressive brand image and their
employee's also behave in a way which doesn't harm its image. It also showed the factors which
affect HRM policies such as performance management and others. There are various benefits of
having older workforces as they are trustworthy for the company. This report also shows that
Maslow's Theory is connected with Fredrick in remuneration point of view. Also, hygiene
factors are related to basic needs while motivating factors are related to emotional needs. This
report also shows that globalization have more positive impact on success of ZARA and
operational-strategy of ZARA & M&S are very different. There are various managerial
challenges such as constant motivation, ensuring effective motivation and various others. To
maintain world leadership companies have to manage website , adapt to new technology and
various others.

REFERENCES
Books and journals
Berman, E.M. And et.al., 2021. Human resource management in public service: Paradoxes,
processes, and problems. CQ Press.
Bevins, D.T., 2018. Herzberg's two factor theory of motivation: A generational study.
Cooke, F.L. and et.al., 2019. How far has international HRM travelled? A systematic review of
literature on multinational corporations (2000–2014). Human Resource Management
Review. 29(1). pp.59-75.
Da Silva, J., Riana, I.G. and Soares, A.D.C., 2020. The Effect of Human Resources Management
Practices on Innovation and Employee Performance (Study Conducted at NGOs
Members of FONGTIL) Dili. International Journal of Multicultural and Multireligious
Understanding. 7(9). pp.322-330.
Daneshfard, K. and Rad, S.S., 2020. Philosophical analysis of theory x and y. Journal of
Management and Accounting Studies, 8(2).
Fallatah, R.H.M. and Syed, J., 2018. A critical review of Maslow’s hierarchy of needs. employee
motivation in Saudi Arabia, pp.19-59.
Hopper, E., 2020. Maslow's hierarchy of needs explained. ThoughtCo, ThoughtCo, 24.
Pleninger, R. and Sturm, J.E., 2020. The effects of economic globalisation and ethnic
fractionalisation on redistribution. World Development. 130. p.104945.
Soares, M.E. and Mosquera, P., 2019. Fostering work engagement: The role of the psychological
contract. Journal of Business Research. 101. pp.469-476.
Whysall, Z., Owtram, M. and Brittain, S., 2019. The new talent management challenges of
Industry 4.0. Journal of Management Development.
Online References
BMW Group., 2022. [Online]. Available Through
<https://www.bmwgroup.com/en/company.html>
Operation Management., 2021. [Online]. Available Through
<https://www.geektonight.com/operation-management/>