Dissertation: Human Capital Development in Mercedes Benz UK

This dissertation investigates the impact of contemporary human capital development on the UK economy, with a specific focus on Mercedes Benz. The study delves into the definitions and effects of human capital development, examining its benefits for Mercedes Benz, and proposing strategic outcomes to enhance the company's growth and development in the UK. The research employs a mixed-methods approach, including a literature review and a survey questionnaire to gather primary data. The findings are analyzed to assess the contribution of human capital development to Mercedes Benz's workforce, innovation, and sustainability. The dissertation explores the success factors of human capital development within Mercedes Benz and its implications for the broader UK economy, including employee training, skill development, and overall economic growth. The study also highlights the importance of ongoing professional development, talent management, and the alignment of human resource practices with corporate culture to foster a skilled and motivated workforce.

Contemporary Human Capital
Development in Auto - mobile

TABLE OF CONTENTS
Dissertation Topic: Contemporary Human Capital Development in Mercedes Benz.................4
CHAPTER 1: INTRODUCTION....................................................................................................4
Background of the study..............................................................................................................4
Overview of the organisation.......................................................................................................6
Research Aim...............................................................................................................................7
Research Objectives.....................................................................................................................7
Research Questions......................................................................................................................7
Rationale of study........................................................................................................................7
Significance of study....................................................................................................................8
Research Gap...............................................................................................................................8
Summary of Chapters..................................................................................................................8
CHAPTER 2 LITERATURE REVIEW........................................................................................11
Introduction................................................................................................................................11
Theme 1: Definitions and impact of human capital development on the UK economy............11
Theme 2: Benefits of human capital development on Mercedes...............................................17
Theme 3: Strategic outcome of what will help enhance the growth and development of
Mercedes Benz in UK................................................................................................................21
CHAPTER 3 RESEARCH METHODOLOGY............................................................................26
Research Type............................................................................................................................26
Research Philosophy..................................................................................................................27
Research Approach....................................................................................................................28
Sampling ...................................................................................................................................28
Data Collection..........................................................................................................................29
Data analysis .............................................................................................................................30
Ethical Consideration.................................................................................................................31
Research Limitations.................................................................................................................32
Reliability and Validity..............................................................................................................33
Ethical statements......................................................................................................................34

CHAPTER 4 DATA ANALYSIS AND DISCUSSION...............................................................35
Questionnaire.............................................................................................................................36
Data Analysis and Interpretation...............................................................................................37
CHAPTER 5 CONCLUSION AND RECOMMENDATION......................................................53
Conclusion.................................................................................................................................53
Recommendation.......................................................................................................................56
REFERENCES..............................................................................................................................58

Dissertation Topic: Contemporary Human Capital Development in Mercedes Benz
CHAPTER 1: INTRODUCTION
Background of the study
Contemporary human capital development is one of the important elements for attaining
growth of economy and business. The process of developing human capital requires learning
environment by applying innovative ideas, acquiring new competencies, developing skills,
attitudes and behaviours (Cherkesova and et.al., 2016). Development of human capital in an
organisation is related with enhancement of employee’s skills and knowledge with respects to
career development. On the other hand, human capital development with regard to economic
growth is related to job training and education in specific field of study. Human capital is a
fundamental source for economic growth as it is a source to increase in productivity and
technological advancement (Filinova and et.al., 2015).
Knowledge, skills and capability of a person are an intangible asset which creates
economic value for the particular individual, community and employer. Education is the main
source of investment in human capital development of economy (Acemoglu, Gallego and
Robinson, 2014). Education system of UK is worldwide reputed for its high-quality standards
sources and learning institutions. The universities in UK provides career focuses sources a
learning to students which is the major factor of growth of economy. Human capital
development in an organisation is based on training, retaining, talent management and gaining
high performance of employees. Majority of organisation in UK focuses on managing on going
professional development of employees which supports individual career development (Popescu,
Comanescu and Sabie, 2016). This assist the companies in enhancing working skills, interest,
knowledge and capabilities of workers. On the other hand, ongoing career development when
working supports employee’s motivation. Infrastructure and technological innovation on
developing regions are closely linked with human capital of countries. Skilled workers contribute
to Gross domestic product in developed region via flow in tertiary and primary education.
Apparently, the study outlined negligence of developing countries over basic primary and
secondary education with focus on tertiary education. This leads to lack of quality to contribution
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to GDP because of poor foundation and attention to primary and secondary education (Birasnav,
2014).
Human development in automobile industry is relate to economic growth because training
employees according to changing market trends and preferences helps in product innovation.
Innovation in product range encourages international trade and Foreign Direct investment which
is directly proportional to economy development. For example, training of employees as per
trends of Artificial intelligence has become crucial part of manufacturing process and therefore it
is important for the management of organisation to focus on expert training of workforce with
regard to cognitive functions of the human mind which can be incorporated in automotive.
Primary objective of human capital development aim at development of superior
workforce which is accountable for guiding and leading employees in different department. The
individual’s authority on the basis of own expertise which provides them the power to control
employees’ activities and enhance their workplace skills. Superiors in organisation are
encouraged with the purpose of internal promotion of job and profile which is beneficial for
individuals personal and professional development. Apart from this, Human development is
about development of entire department. This aid in skill and knowledge enhancement of
particular department by organisation specific on the job training session. Accomplishment of
this objectives assist the organisation in providing departmental work and maximizing
productivity.
Figure 1: Balanced Career: Human resource development
(Source: Han, Han and Brass, 2014)
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Specialized skills of human resource have become more important in our technology-
driven economy. Skilled workers are the economic backbone of developed countries. No longer
high school education is sufficient to secure a family-supporting job. In fact, the majority of all
jobs in the UK, labour market requires postsecondary training or education. In ac accordance
with this it can be said that to efficient deal with market requirement and competitive spirit
skilled workers have become must for economy. Development of workers is supportive aspect
for innovation and economic development. For example, long term growth of organisation is
based on quality and innovation in work which improve economic contribution of different
industries of the country. Thus, increase in human capital induce a rise in number of innovative
products and entrepreneurs, who indirectly prompt economic development via channel of
innovation.
Overview of the organisation
Mercedes Benz is a German Global automobile company and the brand is known for its
buses, vehicles, trucks and coaches. The company is focused on continuous development of
brand for which the firm has complies to different legislations and polices to meet international
requirement and management innovation in automotive services (Roeckle and et.al., 2018). The
manufacturing process of company is focused on customer demand which encourages optimum
utilisation of resources. The company has strength of 298,700 employees among which almost
145, 400 employees work for Mercedes-Benz Car division.
Apart from this, organisation appreciates interest of buyers in its products and addresses
individual queries and concerns online via internet site. Protecting privacy of employees and
customers is foremost concern which is considered by Mercedes benz. This process of managing
personal information assist the organisation in establishing corporate reputation among key
stakeholders. The company focuses on innovation management in automobiles on the basis of
advanced technology which enhances services of business. The company organises regular job
training programmes for employees of different department. The employees are trained to meet
needs of customer on the basis of changing expectations of customers. This on the job training
initiative of firm helps the organisation in supporting career development and boost in skills of
individual employees.
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Human capital development of Mercedes Benz is focused on cost effective performance
management. For example, management believes cost effectiveness can be achieved by 2 %
increase in performance of workforce within 18 months pays for the system (Mercedes Benz:
Cost effective Performance Management, 2019). This accomplishment is evident to management
and therefore motive of firm is on ongoing education o employees on the basis of job role. In
addition, HR professionals of automobile company presented a link between profitability and
employee learning and development. Human resource alignment and corporate culture of
Mercedes Benz aim at gaining support to improve skills of staff to meet different demands of
business (Human resource management and Mercedes-Benz USA, 2019). In accordance with
management, training and enhancement in skills of employees are the best way to improve
productivity and prepare staff to meet challenges of dynamic working environment.
Research Aim
“To investigate the impact of contemporary human capital development on UK economy:
A case study of Mercedes Benz”
Research Objectives
 To investigate the definitions and impact of human capital development on the UK
economy
 To examine the benefits of human capital development on Mercedes
 To propose a strategic outcome of what will help enhance the growth and development of
Mercedes Benz in UK
Research Questions
 How impactful is human capital on growth and development of the UK Economy?
 Has human capital development contributed to Mercedes workforce?
 Has human capital development contributed to Innovation and Sustainability of Mercedes?
 What is the success factor of human capital development of Mercedes in UK?
Rationale of study
The motive behind choosing this human capital development is personal interest. The
study will boost learning over skills and knowledge requirement and its impact on economic
growth. Further, learning over factors and sources of human capital development in an
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organisation which enhance will knowledge over plans and polices of companies which should
be focuses on employees training. On the other hand, the topic is of personal interest where
scholar will gather specific information regard workforce development in automobile industry.
The scholar will be able to gaining knowledge over skills and capabilities required to be focused
for approaching career in automobile company.
Significance of study
The research is significant as it is focused on development of workforce of organisation
with respect to economic growth. The study will derive the importance of incorporating structure
of ongoing professional development in company for employee training and management. The
continuous improvement in skills and knowledge of employees will assist the organisation career
development of workers which is beneficial for not only organisation by for economy. Skilled
workers are a necessary resource for the development of a country. Therefore, the study is
important and different as it will help in deriving employee training can led to development and
growth of economy with regard to interpersonal skills and technology. The study topic is
significant as it will assist in deriving developing human capital with respect to innovation and
rise in number of success entrepreneurs. This will reflect support of growth of individual citizen
of country and their contribution in economic development.
Research Gap
It is problem or question which cannot address with particular field of study. In accordance
with area of study, it can be said that with this particular researcher will be unable to outline
about growth of company with skilled workforce as it is specifically focused on economic
growth. Further, the research lacks focus on specific focus on workforce of chosen company and
its benefits. The findings and recommendation will be for accomplishing growth of economy by
focusing on the job training and development of employees.
Summary of Chapters
 Chapter 1: Introduction: The chapter will help in developing brief understanding over
research topics which is impact of human capital development on UK economy. The
concept of study is wide but the research will be specific to automobile company that is
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Mercedes Benz. The chapter has outline objectives and question of research on the basis
of which information will be gathered and analysed. The focus of objectives of research
is on outlining impact and benefits of human capital development on the UK economy
and deriving strategic outcome which company can enhance growth of Mercedes Benz.
Lastly, the chapter has outlined motive, significant and gap of the research.
 Chapter 2 Literature Review: The chapter will be completely based on secondary
source s that is articles, journals, online blogs, government publication, annual report of
company, news, etc. Information in this chapter will helps in developing understanding
over different aspects of research. This section of dissertation will be divided into three
themes which will be specific research objectives that is impact and benefits of Human
capital development and strategic outcomes which enhance growth of automobile
company. The chapter supports critical analysis of information on same element of study.
 Chapter 3 Research Methodology: This chapter of dissertation will discuss about
different methodological tools suitable for the study and which will be used by scholar. In
first researcher will derive research philosophy and its types like realism, interpretivism,
positivism, etc. However, scholar will make use of interpretivism philosophy as it helps
in incorporating human interest in research topic. Further, researcher will derive use of
inductive research approach which will assist in logical reasoning of collected
information. This will help in deriving understanding of researcher over chosen topic.
Further, the chapter will outline data collection and analysis tool of research that is
secondary sources and primary data collection which will be via survey questionnaire.
The chapter will suggest qualitative type of analysis which will be done by scholar. Thus,
the chapter will conclude by ethical consideration and deriving about viability and
reliability of research.
 Chapter 4: Data Analysis and Discussion: The chapter outlines discussion over
collected results from primary data collection method. This is the most critical part of
research where it is important for the intellectual to compare and contrast accumulated
information. This will be done in form of thematic analysis where themes will be formed
on the basis of survey questionnaire. Interpretation of information on the basis of themes
is a part of analysis whereas discussion in this chapter will be done by comparing primary
and secondary information.
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 Chapter 5: Conclusion and Recommendation: The chapter is summary of all the
chapter and helps in outlining important aspect and outcome of study and each chapter
Conclusion will be chapter wise which will give brief understanding over researched
information. Further, recommendation will be on the basis of discussion which will be a
critical analysis of primary and secondary information.
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CHAPTER 2 LITERATURE REVIEW
Introduction
Review is based on different researches conducted on similar topic. The chapter is about
accumulation different findings, facts and statistics relevant to research topics which is
contemporary human capital development in Mercedes Benz. The discussion of review will be
done on the basis of theme. Thus, will help in developing clear understanding over different
aspects of research like impact of workers development on economy of UK. Further, the scholar
will accumulate information on benefits of human capital development on Mercedes Benz. The
review will be based on different and specific example of automobile industry and their focus on
leaning and development of employees. Critical analysis will be done on the basis of arguments
of different articles, governmental publications books, journals, online blogs, etc. However,
evaluation of last theme will propose strategic outcome that can aid in enhancing growth and
development of Mercedes Benz in UK.
Theme 1: Definitions and impact of human capital development on the UK economy
Human capital development
According to Pelinescu, 2015, human capital refers to skills and abilities of human
resource of country whereas human capital development is a process of increasing and acquiring
number of persons who are educated, experienced and skilled for economic development. It is
considered as one of the most important elements for success of company. This requires creation
of necessary learning environment, innovation ideas, development of skills and acquiring of new
competencies (Human capital development, 2018). As per the views of Ogunleye and et.al.,
2017, human capital is human factors which is related to production process and combines,
education, knowledge and skills of staff of the organisation. However, development is about
learning and ability of workforce to adapt changes and present innovation work. Development
of human capital is a continuous process of organisation which produces economic value for
promoting sustainable national development. Human development pathway to progress has
gained currency in many developing countries including Nigeria. Talent management and
appropriate workforce planning has assisted country to become part of 20 leading economies. In
accordance with this, it can be said that continuous learning programmes of organisation are
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supported to skilled workers in economy. Development programme by companies for human
capital development act as a base for socio economic development of country.
As per the views of Felício, Couto and Caiado, 2014, Human capital development is
specific to Human management practices of organisation like ongoing professional’s
development programme of Tesco encourage continuous learning of employee. This is beneficial
for the career development of workers. However, personal and professional development via
learning programmes of enterprises promotes skilled workers in economy. In accordance with
this it can be stated that learning and development session of organisation are supportive
economic growth. Donate, Peña and Sanchez de Pablo, 2016, stated that the training of
companies is focused on boosting innovation ability of staff where management focuses on
identifying individual skills of working. The identification of employee’s skills and creative
ability enhances performance for organisation and contribution for economy.
In contrast, Coff and Raffiee, 2015, outlined that workforce is a source of sustained
competitive advantage because it supports employee mobility. Employees are hesitant to invest
in firm-specific skills because such investments may come at the cost of developing general
skills. The investment of staff in firm specific human capital is necessary for value creation. The
major assumption on firm specific skills development is of employee retention. For example,
employee working for automobile company will be trained for technological tools used for
managing innovation automotive. By this means, employees see their growth for specific
companies regardless of the facts that developing skills for specific aid in sustaining advantage in
labour market.
Ways of Human capital development
According to Rocha, Ferraz and Soares, 2017, increasing employee satisfaction by
investing in professional development of staff helps the organisation in managing job
satisfaction. This is most systematic ways of managing workforce learning and developing
human capital within company. In learning and development session of organisation,
management focuses on learning needs of employees on the basis of individual job role. For
example, HR professionals of Mercedes Benz organisation learning session of employees on the
basis of departments and need of improvement. The training Mercedes Benz works in
partnership with Intex Business colleges to provide NVQ training in team leading and customer
services to its staff. The training academy began in autumn of 2010 and is performing well and
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