HRM Practices and Strategies: Volkswagen Case Study Analysis

This report provides a comprehensive analysis of human resource management (HRM) practices at Volkswagen, focusing on its operations in Germany and Singapore. It explores the HR strategies employed to create value, including building brand image and increasing employee engagement. The report assesses the impact of regional and national cultures on HRM practices, such as leadership styles and decision-making processes. It also examines the organization's employment models, including competitive and supported approaches, and discusses the differences between HRM and personnel management using Storey's 27 dimensions. Furthermore, the report highlights the significance of local culture in recruitment and discharge processes during international expansion. It also addresses the differences in employment laws when the organization changes its local system. The report details various HRM practices used by Volkswagen and concludes with recommendations for employers to ensure high performance. The report's findings are based on the provided text, which details Volkswagen's HRM practices, strategies, and challenges in the context of its global operations.

Human Resource
Management

EXECUTIVE SUMMARY
Human resource management is a management where they play various roles which include
selecting and recruiting employees, training and development, induction, orientation, problem
solving and other activities which help organisation to achieve business objectives. The importance
of this department is that they make cordial relationship between employees and employers whereas
they motivate employees to put their efforts in order to achieve business goals which lead to
increase in sales and profit of organisation.

Table of Contents
EXECUTIVE SUMMARY .................................................................................................................2
INTRODUCTION................................................................................................................................4
TASK A ................................................................................................................................................5
Determine the HR strategies that create value in organisation .......................................................5
TASK B................................................................................................................................................6
Assess the impact on practice of culture of regional and national .................................................6
TASK C................................................................................................................................................7
Explain the organisation model of employment to build the value by organisation .....................7
TASK D...........................................................................................................................................8
Difference between HRM and personnel management by using Storey's 27 which is practise by
organisation in African and Asian country .....................................................................................8
TASK E.................................................................................................................................................9
Explain the significance of local culture in recruiting and discharging process of expansion in
international market ........................................................................................................................9
TASK F...............................................................................................................................................10
Determine the differences in employment laws when organisation change their local system.....10
TASK G..............................................................................................................................................11
Various Human resource practices used by organisation ...................................................................11
TASK H..............................................................................................................................................12
Recommendation to employers regarding practices of HRM .....................................................12
CONCLUSION..................................................................................................................................13
REFRENCES ..................................................................................................................................14
....................................................................................................................................................15

INTRODUCTION
Human resource management plays significant part in every type of organisation. It is
defined as the process of hiring, discharging and providing training and development sessions. In
other words, it is said that HR manage people and various activities in organisation for better
performance. These activities include healthy work culture, motivation of employees and monitor
performance level that help to gain competitive advantage in market.
Volkswagen is the organisation taken as consideration. They operate in automotive company
and head office in German and also have also presence in Singapore. This report includes various
practices of human resource that have impact in national and regional culture in that country. They
involve two types of model such as competitive and supported employment model that create value
by the firm. By using 27 Storey's with the difference of HRM and personnel management that is
practice by them in Singapore. To expand their business internationally they to implement some
laws such as employment or labour law, intellectual property and internation trade compliances.
There are some recommendation that make to employer in order to ensure that implemented
practices are giving high performance to organisation. As the selected organisation origin country is
in German and also operating in Singapore as they are also operating in Singapore as it is one of the
car brand as they are manage their business directly which means they are directly selling cars to
customer and also provide after sale service to customer. In origin country which is German they
manufacture car and sell to different countries where they operate.

TASK A
Determine the HR strategies that create value in organisation
Human resource management is main factor and plays an important role in organisation that
help in attaining goal and achieve all targets in organisation. They adopt various HR practices that
help to develop strategies and manage their staff members so that they can perform effectively and
efficiently (Abugre and Nasere, 2020). Volkswagen uses various strategies and practices to increase
the productivity and quality of goods and services, satisfaction of customer, in this way it increases
the output of organisation and create value. There are various ways which help to create value in
organisation by using HR strategies which are described below:-
(Source: Topic 1: Introduction to Human Resources Management)
 Building brand image:- It create value in organisation that promote brand that is associated
with attributes that help them to improve their presence in market and also increases brand
equity. To construct brand image, HR department have to recruit those employees who
clearly understand and have knowledge about the component of organisation brand.
Volkswagen select and recruit employees that create image and value of organisation brand
then they engage with customer and present the brand in a way that enhance the value to its
customer (Banfield, Kay and Royles, 2018). This HR practices help organisation to build
their image and attract customers for their goods and services.
 Increases engagement of employee:- This is the important for organisation to engage their
engage which help to achieve goals in appropriate and timely manner. If the organisation
motivate their employees by rewarding or giving incentive, so they will encourage to put
their efforts and skills to grow organisation (Wehrmeyer, 2017). In context to HR, this can
HRM

be achieve by developing and implementing policies that establish communication channel
and build good relation with each other so they work in positive environment. This way
employees can take participate in decision making and give their opinion or innovative ideas
(Best, Miller, McAdam and Moffett, 2021). In reference to HR department of Volkswagen,
they have develop portals where they can register complaint, give ideas for modification or
changes.
TASK B
Assess the impact on practice of culture of regional and national
Culture refers to the symbols, values and behaviour that have different way of life of people.
This culture imitate the communication from one generation to another generation. These type of
culture influence the performance level and personality of people (White, 2016). Both regional
culture and national culture influence the practices of human resource management. These impact
on HRM practices of national and regional culture are described as under:- Leadership style:- There are different style of leadership and various countries and
organisation follow different styles to guide and direct employees towards performing work.
This impact the national and regional culture because many organisation follow
transformational, transactional and many others.
 Decision making:- While selecting Human resource practices for employees, it create issue
as in Singapore is based on different culture because some organisation include their
employees in decision making whereas some organisation do not include all staff members
in decision making (Wagner, 2016).
There are various other factors that impact the national and regional culture but it is important for
every organisation that they should understand the culture of foreign countries where they are
expanding their operation so that the policies can be implemented in proper manner.
These difference in culture impact human resource practices that there will be ineffective
communication that creates conflict among employees in organisation. According to this pandemic
of Covid-19 that affect worldwide and has impact on HR practices of organisation. To safe their
employees from viruses they give work at their location. In context to Volkswagen in Singapore,
they focus on the culture at various geographical location where they are operating (Blyton and
Morris, 2017). With the effective policies organisation can increase their performance and gain high
market share. However, it is analysed that Volkswagen by using the best practices can influence and
directed the national and regional culture that help organisation to implement operation effectively
and efficiently.

(Source: Organizational culture)
TASK C
Explain the organisation model of employment to build the value by organisation
Organisation employment model are used by organisation to select and recruit talented
employees who have skills and abilities to complete different operation to conduct in organisation.
For recruitment they uses various method to put the right person at right position (Storey, 2016).
Volkswagen apply competitive employment model to select and recruit employees as per time of
workers such as part or full time in organisation. According to this, in Singapore pay salary to all
staff member above the minimum wages and provide them equal rewards and incentive according
to roles and responsibilities divided by human resource department. This will increase the
participation of employees in activities of organisation and enhance their productivity level (Yeboah
and Jayne, 2018).
Volkswagen also Supported employment model to help employees who do not have proper
skills and knowledge to do work. They invite trainer or coaches to develop skills and provide
training so they can compete to business environment (Cvetkovich, 2018). This will help
organisation to create their value in market so that it give satisfaction to customer. The HR
department of Volkswagen in Singapore, enhance the positive environment by implementing
various policies and roles as per need of employees so they can continue grow their path of career.
For using competitive model and supportive employment model, organisation use to invest but they

are not able to recruit many employees through the supportive employment model. Moreover, they
only take competitive model to attract talented candidates who have proper skills and abilities to
achieve the organisation goal effectively.
From the above discussion, it is concluded that department uses different approach to hire
and recruit candidates under the employment model. They form various guidelines and take proper
test to measure the skills or abilities of candidate for particular position and this provide company
skilful employees that increases the efficiency level of employees. It also create positive and
competitive work environment between all employees and help them to gain competitive advantage
over the rival organisation. This will create value in industry for organisation and help them to
achieve organisation goal and objective in appropriate manner (Stewart and Brown, 2019).
TASK D
Difference between HRM and personnel management by using Storey's 27 which is practise by
organisation in African and Asian country
The employees in African and Asian country are different from other because Asian
employees means chosen country which is Singapore want true and fair salaries and positive work
environment. In other words, they require proper and equal remuneration to all employees so that
there is no conflict among them (Gold, 2016). Therefore, in Singapore workers have priority to
follow all rules, regulation and clear policies. Human resource management focus on practising to
ensure that there are proper techniques used to motivate employees to increase the level of
production and performance of employees.
Dimensions Personnel management HRM
Conflict handling
The department of personnel
management temporarily solve
the conflict in organisation and
their objective is not to
eliminate cause of conflict from
basic. In context to Volkswagen
in Singapore, these practice is
applicable in other market but it
not completely reduce the
conflict from core and that
again create conflict after short
span of time.
In reference to Volkswagen,
they reduce conflict by
developing policies after
analysing needs of employees
and assign them task according
to their skills. Volkswagen in
countries where they operate
motivate them to do do work in
team and solve their conflict by
resolution (Zhong, Wayne and
Liden, 2016).

Communication
This management have
individual approach to
communicate with each other.
They follow indirect channel of
communication between
employees and give them
documents related to tradition
and culture of organisation. In
context to Volkswagen, their
market ensure that their
performance level is accurate
and they are following culture
in organisation.
HRM follow direct flow of
communication and information
to employees so that there they
run organisation smoothly with
their work in different
operation. In reference to
Volkswagen group, for effective
communication among
management and employees
they create portal for them so
that there is no conflict.
Speed of decision In relation to the selected firm,
the personnel management take
slow decision because they take
on their own basis which give
negative impact in growth of
organisation (Shen and Benson,
2016).
In human resource management
they take fast decision as
compare to personnel
management because in this
team is involve in organisation
to attain the company's goal.
TASK E
Explain the significance of local culture in recruiting and discharging process of expansion in
international market
When there is expansion of organisational in different culture of location then it impact
various practices of HRM such as process of hiring and discharging. In Singapore Volkswagen main
objective is to clearly understand the HRM practices and culture for international expansion so that
there is smooth operation in organisation. When they are expanding their organisation in foreign
countries, they should collected proper information so that they can develop policies of HRM and
implement them effectively to achieve the success in future (Haque, Fernando and Caputi, 2019).
Volkswagen has to formulate strategies and HRM policies as per the rules and regulation
defined by government in that particular location. By implementing this they can maintain their
position in market and can avoid conflict under any law whereas they can modify their policies

according to subsidies which they can avail in organisation. However, organisation should also
analyse the culture of that country in relation to develop policies in order to discharging employees
from organisation. This is important to investigate because if the policies are not relevant for
employees then it will lead to dissatisfaction and they will not engage in work. This will impact
company because it will down the reputation and they will have huge financial loss, that also affect
the satisfaction level of employees.
The selected organisation in Singapore have to invest in the process of hiring and
discharging, they have to collect information before formulating policies in order to recruit most
talented and fire employees from organisation according to culture in that country. They have to use
various methods or techniques to recruit the talented candidates and see that their knowledge for a
particular position. After that they can provide training sessions about the role, culture and work
environment so they can perform their job in proper manner (Kooij and Boon, 2018). They should
also guide and direct them about different culture diversity so they can manage position and duties
whereas there will no conflict among different employees.
TASK F
Determine the differences in employment laws when organisation change their local system
There are various laws, obligation and rules which impact with the globalisation. However,
many have state that if there is effective globalisation, then it is said there will be better function in
respect to organisation (Ravichandran and Bano, 2016). There are changes in business
environment, the Volkswagen have to prepare their strategies effectively so if any circumstances
occur they can deal with them easily. There are various laws when international human resource
management changes local business system which are described below:-

 International trade compliances:- This is the most important law for all organisation
because every business needs to export or import their goods or services from one country to
another country. If they are moving their goods, they have to follow some rules and
regulation of international trade. Moreover, government have also implemented some limit
for different type of organisation. In context to Volkswagen, they are operating in various
country and recently there are exporting or importing their goods or services at 27 countries. Employment and labour laws:- According to Volkswagen, this law means cordial
relationship between management and employees. They main reason behind the success of
company is they hire those employees who have good technical knowledge, skills, abilities
for that particular position. They should analyse they are following all the guidelines such as
safety and health of employees, working hours and security of all staff members. The
selected organisation follow all rules and motivate their employees for attaining the success
of organisation.
 Intellectual property:- According to Volkswagen, they are the largest and known
organisation and they use intellectual property such as trademark, copyright and patent. This
help them to protect their product or services and against any fraud (Kronenfeld, 2017). This
intellectual property is important because customers and other country can recognise that
which product is recognised to which company.
TASK G
Various Human resource practices used by organisation
There are best HR practices used by organisation for optimum utilisation of different
operation and activities in organisation. According to the viewpoint of Prakash (2020), he state that
every organisation who want success in every field has to implement best human resource practices
to achieve the target in appropriate time (Best practices to build better workplace 2020). These
practices are discuss in detail as under:-

(Source: Top 10 HR Best Practices)
 Bonus based on performance of employees:- The employees receive bones only when if
they have achieved the planned targets on time and in appropriate manner then employees
distribute bonus. Volkswagen give incentive to those employees who give innovative ideas
to modify or create products and services. Training and hiring employees:- In context to Volkswagen, they hire and select candidates
by taking appropriate test and checking their skills in accordance with the particular
position and putting the right person.
 360 degree performance management feedback system:- The manager of Volkswagen
check and monitor the performance of employees in various departments and then give
appropriate feedback either to improve or any guidance to follow. They also listen issue of
employees and first analyse that problem then give solution of problem (Muriel and
Crawford, 2018).
TASK H
Recommendation to employers regarding practices of HRM
The employees of organisation plays an important part because they perform different
activities to grow the organisation and attain more success in future. There are recommendation that

employers ensure that organisation performance is high in respect to human resource practices such
training and development, feedback and employee satisfaction level which are as follows:- Training and development:- The selected organisation should give training and
development programmes so that there skill and competencies increases and they can
perform their activities in effective manner. Moreover, in selected country which is in
Singapore it enhance the productivity level which motivates and increases the confidence of
staff members. Then they can give better quality products and services to customers in an
appropriate way. Taking feedback:- The human resource department of Volkswagen in Singapore take
regular feedback from all employees because it is the responsibility of employees that they
analyse problem faced by them and can take knowledge about the performance level. They
set various strategies that help them to motivate employees so they put their efforts to
achieve the objectives of organisation in timely manner (Mäkelä and Kinnunen, 2018).
However, as we discuss they also use 360 degree degree feedback management system
practices so that they can observe performance and tell them for improvement and enhance
the performance of organisation.
 Satisfaction level of employees:- In reference to Volkswagen, this is the important
recommendation to employer that increase level of satisfaction. For this they give financial
and non-financial incentive to employees (Muduli, Verma and Datta, 2016). Financial
benefits are those benefits which are given in the way of money such as cash reward,
incentives etc. whereas non-financial includes health insurance, coupons etc. This builds the
positive work environment and culture of employees

CONCLUSION
As discussed in above paragraph, it is concluded that there are different situation in
organisation where human resource department have to handle that situation accordingly. They
develop and implement various strategies that enhance the productivity and value for organisation.
We analysed that there are three strategies that organisation use such as to improve the brand image
and also improves reputation, employees engagement and reduce turnover and increase
performance of employees. This will help them to motivate employees and can build relation
between employer and employee. To expand the business in international market they have to
clearly understand culture and trends of that country where they are expanding their product and
services so they run their business effectively and in appropriate manner. The selected organisation
have to select most talented candidate that have proper skills and competencies for that particular
position. They have to follow all rules and regulation given by government so in future there is legal
conflict. There are some practices that organisation follow in order to achieve objective successfully
such as feedback system, true and fair evaluation system, bonus as per the performance.

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