HRM Practices: Application, Factors Affecting Decision-Making

This report delves into the critical role of Human Resource Management (HRM) within organizations, particularly focusing on Mercedes Benz Company. It explains the main areas of HRM, including recruiting and staffing, employee benefits, and compensation, emphasizing their impact on organizational efficiency and ethical governance. The report reviews the effects of the changing nature of organizations, highlighting the importance of communication, technology, dispute-solving, and coaching skills. It compares different areas of HRM and examines HRM in relation to the evolving business landscape. Furthermore, it reviews HRM practices related to recruitment and retention, evaluates their use, investigates internal and external factors affecting HRM decision-making, and illustrates the application of specific HRM practices in a work-related context, underscoring their importance for organizational growth and sustainability.

Human resource
management

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
P1 Explain the main areas of HRM.............................................................................................3
P2 Review the effects of the changing nature of organisations...................................................5
M1 Compare areas of HRM........................................................................................................7
M2 Examine HRM in relation to the changing nature................................................................7
P3 Review relevant HRM practices in relation to recruitment and retention..............................8
M3 Evaluate the use of HRM practices in recruitment and retention.........................................8
P4 Investigate the external and internal factors...........................................................................9
P5 Apply HRM practices in a work-related context..................................................................10
M4 Discuss the key external and internal factors that affect HRM decision making...............10
M5 Illustrate how the application of specific HRM practices...................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Human resource management plays critical role in managing the performance of the
employees as in the functioning of the commercial businesses. In the earlier time this is very
significant for the business in respect to focuses on the development of its HR division as per to
achieve the superiority over their challengers. In addition to it business of HR has also very
essential part in providing the vital clarification to their employees which are having the
problems in its operations. This is a fundamental obligation of the business of HR in respect to
make an appropriate technique in managing the workers for the effective development of the
business in the market area. The management consider in this report is Mercedes Benz Company
which is one of the largest automobile organization founded in Germany (Aboramadan, and
Karatepe, 2021). The organization was also founded in the year 1926 and it basically deals in
luxury cars around the world. Moreover to this the organization is basically having the need of
suitable management of human resource that are required to be executed in accordance to
accomplish the success as well as growth of the company. The following report will cover about
main areas of the human resource management in accordance to make appropriate as well as
sustainable productivity and performance. In addition to it it will also include vital areas which
are linked to the practices of human resource management in respect to the method of retention
as well as recruitment of the workers. Moreover it will also cover about concentration on the
interior as well as exterior factor that have an impact on the decision-making of the HRM in
respect to gain higher term of growth and as well as effectiveness.
TASK
P1 Explain the main areas of HRM
Management of human resources helps in supporting the company that can better the
efficiency as well as effectiveness in order to maintain the governance of the organization as well
as its ethical problems. The management of the human resource provide assistance to the
company and play the very crucial part over vision as well as direction for the future in order to
function more efficiently and effectively (Alkharabsheh, 2021). In addition to its management of
human resources one of the most effectual idea which is linked to sustainability as well as
success of the company. Moreover to this human resource management basically assist the
company for increasing the effectiveness in maintaining the ethical issues and also supports the

company in many other ways in order to make them conduct their operations more efficiently.
Also human resource management basically deals on the several elements which assist on
enhancing the growth as well as sustainability by concentrating on several elements which are
ethical issues, training and development of the workers, corporate social responsibilities,
structure of the organization, compensation to the workers and various more. In context the
organization Mercedes Benz management must be concentrated on making several strategies that
is utilised for gaining growth and those strategies are described below in brief:
Recruiting and staffing employees
This is one of the most essential element of the management of human search which links
to the recruiting as well as hiring of the workers more efficiently as well as effectively. As it
basically leads towards identifying the appropriate candidates in order to hire the respective
manager of this department. The process of recruiting involves hiring of the experience as well
as talented workers in accordance to the need of the job profile. This also permits the company to
enhance its staffing with the optimistic approach.
Employee benefits
Benefits of the workers is one of the most essential part that is needed to be
concentrated on the elements like sick leave, casual leaves, compensation, rewards and various
more other advantages which the company can offer to its worker (Chakraborty, and Biswas, W.,
2020). These methods are useful in increasing the motivation level of the workers which can lead
to enhance performance as well as productivity towards functioning in the company.
Additionally human resource makes the workers benefit possible by enhancing as well as
increasing their capabilities as well.
Employee compensation
This is the obligation of the department of human resource in order to resize how much verdia
person is and the deserving amount will be paid as per to their performance which can also be
called as bonuses, appraisal’s and incentives as well.
These are the part which are needed to be concentrated by the manager what the leader of the
human resource of the respective organization Mercedes Benz as it’s creates towards the long
term growth as well as stability which can be accomplished by attainment of the goals As well as
objectives of the company more efficiently as well as effectively. In addition to it the elements
also assist in making the workers more productive as well as increasing their motivation level.

P2 Review the effects of the changing nature of organisations
The dynamic as well as changing environment of the company as well as its function which is
entirely based on the making such in the organization more efficiently as well as effectively. In
according to several ideas of the department of human resource relates towards the employees as
well as the management which you are having the very crucial part to play that makes providing
the facility of alteration in the culture of the company as much as possible (Crawshaw, Budhwar,
and Davis, 2020). In addition to it department of the human resource has been consistently
supporting the organization in making several strategies as well as enhancing the level of skills
within the employees who are presenting within the business of Mercedes Benz are want to learn
and such abilities are as follows -
Communication skills
It is an effective section of the skills which are used by the executives of HR division as
per to make sure that critical term of data and information is blowout among the people suitably
and properly in the organization. With the assistance of communication skills several obligations
and responsibilities which are reward explanation, conflict resolution, negotiation of salary as
well as updates of employee handbook. In addition to it it has also been understood that manager
of human resource department provide assistance to the workers in order to solve their several
problems more efficiently as well as effectively in the company. Moreover to this the skills of
communication has also very crucial part in enhancing the possibilities of coordination among
the workers in the commercial business. Further move strategies as well as models of
communication must also be utilised by the respective organization in accordance to satisfy their
employee’s preferences and needs. Also in accordance to develop suitable skills of
communication in the workers this is very important for the department of human resource
management in order to offer suitable training as well as development to their workers (Frangieh,
and Yaacoub, 2018).
Technology skills
These skills are such set of skills that assist on developing several types of the attributes
that is utilised in accordance to make the latest tech and automation implemented in more
efficient as well as effective manner in the operations of the human resource. By evaluating

capabilities as well as several set of skills and making the workers having the authority on
making the performance of the organization mode productive with the assistance of several
platforms of digital media. Hence it is also crucial element for the department of human resource
as well as its development (Liu, 2020). The technological skills has also very crucial part in
enhancing the level of participation among the workers with the assistance of suitable practices
of management have decision support system as well as management information system in the
operations of the organization. The vital skills of technology will provide support to the
organization in order to grow more in the market area by implementing several advanced
techniques as well as tools in the operations.
.
Dispute solving mechanism
It is one of the most excellent as well as effective method that is implemented by the
organisation in accordance to solve suitably and efficiently. In addition to it this also supports the
manager of human resource in order to evaluate as well as understand regarding the nature of the
workers more appropriately. With the assistance of solving conflicts human resource associate is
more capable to accomplish the goals as well as objectives of the company.
Coaching skills
Coaching skills are known to be very useful at the time when it comes to the group
sessions as well as one on one programs in accordance to spread data as well as to train the
workers. In addition to it this can windows today’s training and development can be provided in
it and also in assisting the managers of frontline that are having issues with their workers.
Moreover to this it will also assist in reintegration resolution of the conflict on boarding and
many more.
These above stated section of abilities will provide assistance to the associate of HRM of
the respective management of the Mercedes Benz in order to lead the development of their
workers more suitably and properly. Through divisions of various section of the abilities in the
business creative thinking and innovation are also adapted by the employees with
accomplishment of more and more task. It will also provide assistance to the associate of human
resource department of the respective organization Mercedes Benz in order to improve its
practices of human resource more efficiently and effectively (Luu, 2020).

M1 Compare areas of HRM
Practices of HRM are able to make more suitable system as well as structure of the
company. As this will provide assistance in maximising the exercises of the management more
productive as well as efficient. In addition to it there are specific elements which are leading to
development of the situation of the organization more efficient. Also the certain place through
that the leader of HR of the respective business Mercedes Benz have been evaluating their leads
by communicating the environment also through making their workers performance as well as
capability is more efficient. Moreover to this it is the significant section of the business of HR in
respect to make more sustainable based activities that are useful for enhancing the possibilities of
growth as well as success of the organization. The crucial places as well as their comparative
evaluation will assist the organization in order to attain growth in revenue as well as its income
in the industry and in accordance to have the edge over their competitors in the market area this
is one of the main operations of the management of human resource which is to make a suitable
approach.
M2 Examine HRM in relation to the changing nature
The management are presently need efficient terms that are related to the business of HR
as per to the edge over their contestants in the field of market area. In addition to this it is one of
them major publication of the organization in respect to focuses on measuring its contemporary
environment of business as well as also focus on performance of HR in accordance to the
department of HR which is directly linked with all other divisions of the organization such as
marketing department, production department sales department and various more (Macke, and
Genari, 2019). In addition to it change is also known to be very crucial element of the respective
organization Mercedes Benz that is to make and create in accordance to develop specific method
as well as techniques which can be beneficial for the organization for the long period of time and
which also lead to the accomplishment of the goals and objectives of the company for their
success in the marketplace. The management of human resources is also useful in creating the
commercial business more competitive irrespective of the practices of change management. In
accordance to lead the industry within a specific given period of time this is very essential for the
organization in order to concentrate on approach which is based on the change management.

P3 Review relevant HRM practices in relation to recruitment and retention
The exercise of HRM are termed to be a significant approach that help the management
in respect to complete their effective targets as well as goals for the long trade of time which will
assist in leading towards the growth and success of the organization. The practices of recruitment
are also useful in enhancing the level of participation of the workers and select as well as higher
the suitable talent for the company and the management of human resources vital department of
the company that provide assistance in functioning which are linked to the selection and hiring
process in order to offer the organization the suitable type of the workers (Rana, and Sharma,
2019). It is also known as the significant section of the profitable management in respect to
manage the exercises of employment as per to have the advantage over the challengers for the
longer period of the time also. In respect to it, the business of HR can also take support as well as
support from the technology and information department as per to perform vital function of the
organization that is connected to the recruitment and selection procedure.
Moreover to this retention of the workers is also known to be the vital operation of the
management of human resource department in accordance to make the workers more loyal to the
organization. Also the retention of the employee assist the commercial business in order to
decline the turnover rest of the workers that is one of the most crucial factor for any business
organization. In accordance to make a specific measure in maintaining the workers this is the
main obligation of department of human resource in order to choose one of the most suitable
strategic method. Furthermore the retention of the worker methods are also opted by the
company in accordance to make a specific approach. In relation to the respective organization
percentage Mens management of human resource of the respective organization must also make
healthy relation and harmony among the workers in accordance to provide assistance to the
retention operation of the company.
M3 Evaluate the use of HRM practices in recruitment and retention
The term labour is related as one of the most critical factor for the profitable business
which support in providing an effective term of solution to the business in context to the trading
and invention. The line of production of the commercial business is extremely linked with
employees adds it supports in suitable usage of all the resources that are available in the
company (Stewart, and Brown, 2019). All the functioning organization in the domestic as well as
global market area concentrate on making the exercises of HRM more effective as per to assist in

leading the marketplace. In addition to it, HR department of the business should also focuses on
hiring and selecting the an effective section of the workers who related to the business in
accordance to make and enhance the level of production effectively and efficiently. Also it is
also known to be one of them most crucial obligation of the commercial business in order to
concentrate on enhancing their strength which will assist them in having the edge over their
competitors in the marketplace.
P4 Investigate the external and internal factors
Both element has plays significant role in the decision making of the HR division of the
business. In respect to this, it is a critical section for the business in respect to measure the
significant impact of the external elements that are generally affecting the functions of the
business as well as the internal factors that are termed to be the dynamic factors that might be
measured by the business as per to lead the effectiveness of the business by the estimation of
internal as well as external factors of the business of management who have the edge over their
challengers in the field of market area.
Analysis of internal factors of Mercedes Benz-
 Workplace factors- The workplace is known to be most crucial element of the internal
atmosphere of the organization and this is also known to be one of the most crucial for
the management of human resource of the respective commercial business Mercedes
Benz in order to take this into their consideration that various internal components that
influence on its operations (Stone, Cox, and Gavin, 2020). The process of decision need
to be taken by the department of human resource by focusing on the vital requirements of
the company.
 Set targets and objectives of the company- The objectives as well as goals of the
profitable management require to be made as per to the manner of requirement of the
market area. In addition to it commercial business must have the very vital obligation in
enhancing the power of decision making on the foundation of their goals as well as
objectives that are formed by the company.
Analysis of external factors of Mercedes Benz-
 Stakeholder requirements- In the working of the business which is very much
obligatory in respect to focuses on the achievement of the requirements of the
shareholders of the business. The main external stakeholder of the organization are like

consumers and governments which are need to be taken into consideration of the
respective organization Mercedes Benz in order to make crucial activities which are
linked to the decision making
 Government policies and legislations - Rules of the government and regulations are
require to be supervised by the profitable management and it is the very critical
publication of the department of HR of the respective organization Mercedes Benz in
respect to be manage an effective term of directions of the government and also imposed
policies of the legal rules of the specific market area in order to take the specific decision.
P5 Apply HRM practices in a work-related context
There are several sort of practices of the human resource that are to be opted by the
commercial business that gives the outcomes in the optimistic way in the productivity and
performance of the organization (Tladi, 2021). Few of such activities that are implemented by
the organization are described below in brief:
Flexibility: This is the practice that is opted by the associate of the human resource management
of the respective organization Mercedes bands and this is very crucial for the enhancement of the
level of motivation among the workers and also in contribution towards their enhanced
effectiveness and efficiency in the company. In addition to it associates of human resource of the
company Mercedes Benz are providing suitable working hours and compensation to their
workers.
Hiring of the right people: Hiring and recruiting of the suitable workers is known to be the
practice of human resource management that permits the associates of human resource of the
respective company Mercedes Benz in order to select workers that can increase the value to the
company. This will provide assistance to the company in accomplishment of their long terms
targets as well as objectives more efficiently and effectively and it will lead to their long term
sustainability as well as success in the market area for the long period of time.
M4 Discuss the key external and internal factors that affect HRM decision making
The internal as well as external factors are termed to be a critical section for the
commercial management that plays significant role in the development of the business as well as
in managing various terms of the decisions (Wahyuningtyas, 2020). In relation to the respective
company Mercedes Benz management has early encountered major crisis of finance because of
the pandemic COVID-19. In addition to it financial management and human resource department

of the company assisted in taking the several effective decision making in accordance to have the
edge over their competition and this is also one of the crucial obligation of the company in order
to concentrate on the growth of the effective decision making in the operations of the company.
Moreover to this the ethical way in the process of decision making is needed by the company in
accordance to move forward and eliminate the overcoming of the competitors in the marketplace.
Also the internal as well as external elements are very crucial for the sustainable success of the
organization in the effectiveness and efficient way.
M5 Illustrate how the application of specific HRM practices
As there are various section of the exercises of HR that are presented by the respective
company Mercedes Benz which is critical in accordance to enhance the presentation section as
well as efficiency of the business. Moreover to this sustainable performance is known to be the
one that provide assistance to the commercial business in order to accomplish its objectives and
goals more efficiently and effectively. In addition to it there are various kinds of the practices of
the human resource that are implemented by the associate of human resource of the respective
company Mercedes Benz. These activities involves process of recruiting hiring and selecting the
suitable workers and providing them the appropriate training as well as different opportunities
with more transparency and flexibility in the company (ZARE, and BAGHERI, 2018). It is also
critical as per to increase the manner of productivity and as well as presentation between the
employees and also in enhancing the manner of satisfaction of the employees as it will provide
assistance to the company in retaining the workers for the longer period of time which is very
critical for the growth of the company in accordance to enhance its suitability and effectiveness
also.
CONCLUSION
From the above mentioned report it has been concluded that, in the operations of the commercial
management HRM has a very significant role and section in the growth as well as success of the
organization and also in the accomplishment of the long term goals which are formed by the
company efficiently and effectively. In addition to it the importance of the development as well
as strategic framework that offers help to the profitable management in respect to attain higher
term of the growth as well as expansion of the operations of the business in different market area

for the long period of time. Moreover, the importance of the practices of HRM of the respective
business which is effectively critical for the global development and success of the company in
the effective and efficient way. Furthermore the obligation and role played by the several set of
skills as well as understanding of the management of HR in the growth of the employees.