Impact of HRM on Sustainable Performance and Development at BMW

This report provides an in-depth analysis of Human Resource Management (HRM) practices at BMW, a leading automotive company. It highlights the significance of HRM in achieving sustainable performance by examining key areas such as recruitment and selection, work design, and training and development. The report reviews the effects of the changing nature of organisations on human resources skills and knowledge, focusing on managing diversity, changing social needs, and technological advancements. It also evaluates relevant HRM practices related to recruitment and retention of employees for the achievement of business objectives, including innovative recruiting, effective training, and performance appraisal. Furthermore, the report investigates the internal and external factors, such as organisational objectives, marketing strategies, political and legal factors, and social factors, that affect HRM decision-making and support organisational development within BMW. This comprehensive analysis provides valuable insights into how HRM contributes to the success and sustainability of a global organisation like BMW.

Unit 3 Human
Resource Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
TASK...............................................................................................................................................3
P1 Explain the main areas of HRM in their contribution to creating sustainable performance.. 3
P2 Review the effects of the changing nature of organisations on human resources skills and
knowledge....................................................................................................................................4
P3 Review relevant HRM practices in relation to recruitment and retention of employees for
the achievement of business objectives.......................................................................................6
P4 Investigate the external and internal factors that affect HRM decision making to support
organisational development.........................................................................................................7
CONCLUSION................................................................................................................................8
REFERNCES:..................................................................................................................................9
Books and Journals:.....................................................................................................................9

INTRODUCTION
The report aims to provide significance of Human resource management practices. HR
department plays a vital role and it is the most required function in organisation. This department
is liable for hiring effective employees for achieving organisational objective. HRM is the crucial
function as it undertake all the activities regarding fulfilling vacant position with the suitable
individuals. The managers prepare policies and strategies to look for managing people within
organisation. There are a lot of function of human resource manager which include recruitment,
selection, policy making, employee’s performance, rewards and recognition and many more. All
these are vital function which contributes in success of company (Chams, and García-Blandón,
2019). HRM department perform day to day operations to manage workplace culture, structure
and position of different job role. This report is going identify the practices and strategies
performed by BMW; it is one of luxurious brand in automotive industry which was established
in the year 1916 in Germany. The company covers large market through dealing in cars, bikes
and other vehicles which they manufacture in own unit. The report will present the sustainable
operations in company and how changing nature effects on different roles within company. In
addition to this, there will be review upon the recruitment practices and how doe the internal and
external factors affects HRM decision making.
MAIN BODY
TASK
P1 Explain the main areas of HRM in their contribution to creating sustainable performance.
Sustainability has gain much importance in this current dynamic world. It refers to carry
out activities which are in favour of both organisation people and society. Sustainability leads to
give benefits in attaining social power to secure brand position. Employees plays vital role in
performing sustainable operations within organisation. It creates a culture of social practices
which undertake all the practices in favour of society, environment and economy. Sustainability
in organisation is all about fulfilling all the needs and expectation of stakeholders in company.
These stakeholders are employees, investors, clients, shareholders and customers. Therefore, in
order to ascertain sustainability, there are a lot of functions that are performed by BMW. The
company is performed best practice to be successful and sustainable into market. But the

automotive industry is facing lack of skill full workforce due to which they need to put more
emphasize on HRM key areas which are discussed below:
Recruitment and selection: It is the foremost key area of HRM department. The
managers need to recruit best candidates who are suitable for the job role within organisation.
Effective employees will lead to attain objectives and sustainability. So, this key area must be
performed well as the selected employees must be capable of accepting organisation culture and
work on maintaining sustainability standards (Strenitzerová,. and Achimský, 2019). BMW has
its effective recruitment strategy but due to lack of skilled workers in automotive industry, the
organisation has vacant positions for engineers which have much skills for designing, production
programmes and quality. HR managers of company has to be particular about making good job
description, person spec
Designing work: It is also a crucial task to perform by HR manager. Designing work as
per each individual specialisation is necessary. It maintain the effectiveness and completion of
work on time. Therefore, sustainability refers to dividing work as per each individual capabilities
and knowledge about production, packaging, promotion and other operational task. BMW needs
to make a roadmap of work distribution that makes work in simpler manner.
Training and development: The essential key area of organisation is to provide good
trainings for employees. Due to having skilled shortage in automotive industry, BMW must
focus on providing good training to existing employees and make them sustainable while doing
each work activity. It involves the role of manager to acknowledge employees about all the
safety standards prepare them for adopting changes and keep performance records for analysing
need of further improvement.
P2 Review the effects of the changing nature of organisations on human resources skills and
knowledge.
The nature of organisation in regard with human resource skills and knowledge is changing
drastically. As the world is becoming Complex and there is rise in customer demands, market
uncertainty and many other factors which affect the companies to look within the internal
resources. Every individual is indifferent with their skills and knowledge whosoever working in
two organisation (Kainzbauer, and Rungruang, 2019). Almost all the companies require
Workforce and provide many training program do increase the skins in order to achieve
objectives effectively. The changes which are faced by BMW are described below:

Managing diversity at workplace: An organisation require diversified employees to carry out
workplace activities. The companies which are globally expended and perform overseas work
are in high need of diversified workplace culture. This change in organisation makes them realise
the need of multilingual people culture of black and white no difference between women and
men workforce. The BMW affected with this factor as employees must be well-trained to cope
up in different cultural aspects. It creates both positive and negative effect on the human
resource. The employees gain opportunities of personal growth through which they could
achieve career AIIMS. Being diversified and accepting different cultures will lead to give a
confidence and improvisation in skills. Therefore, the manager of BMW has to put focus on
providing training to both men and women workforce. Also, they need to remote participation in
learning different languages, technical functioning as per the resources availability.
Changing social needs: This factor emphasis on the needs of society which is changing rapidly.
For that instance, the organisation needs to bring innovation as well as provide new product
experience to fulfil changing customer needs (Delery, and Roumpi, 2017). This requires increase
or change in the skills and knowledge of employees that must be match with market requirement.
BMW require highly skilled engineers who could develop designs and project planning to bring
necessary innovation in their automobiles. This will impact positively organisation profitability
as well as employees career growth. It also causes negative effect like increase in workers
turnover as the company needs to hire fresh talent and the demands for high salaries and pay.
Changing social needs will make low connections with customers and leads to under confidence
of employees if their strategy does not meet with the requirement of customers demand.
Change in technology: This factor also effect on organisation functioning. Technology is being
a necessity for all the companies who wants to run for long term success. There are several many
Technologies arrived into market that employees take time to get familiar with them. Therefore,
BMW require do engineers who could put their hands with these Technologies. This changing
trend in organisation effect on human resource skills and knowledge as they need to have
technical Outlook as well as good catch on software’s to work in automobile industry. This
create positive effect on the development as learning will not get waste and give results in
effective career development. Whereas, negative effect leads to poor interrelations with
employees and chances of organisational dispute could arrive.

By analysing all the effect of change on organisational workforce , it has identified that
there are some positive and negative effects of having change in the organisation. The employees
need to improve and enhance their skills and knowledge to cope up with social needs,
Technology and diversity at workplace.
P3 Review relevant HRM practices in relation to recruitment and retention of employees for the
achievement of business objectives.
HRM practices play a vital role to fulfil business objectives as according to the set goals. The
human resource manager needs to conduct effective recruitment and retention process for
employees. The organisation success is depend upon the best efforts employees put in
performing workplace activities (Siyambalapitiya, Zhang, and Liu, 2018). Every individual has
some from their organisation and also it is necessary to understand by employees what their
organisation seeks into them. Therefore, in order to eliminate the skill shortage in BMW as the
organisation required to maintain their human resource for effective functioning so that there are
some questions about relevant HRM practices which are described below:
Innovative recruiting and selective hiring: it is the foremost HRM practices done by
managers. The BMW need to include innovative recruitment strategy in the organisation. They
must provide vacancies and dresses for attracting new candidates. There is need for a specific job
description in which all the requirements which a candidate needs to perform should be
mentioned. Also, person specifications and all the benefits and incentives provided by company
are there template. This would attract a lot of candidates who are looking for a reputed job
position. The manager must focus on giving career opportunities incentives and a diversify
cultural practices so that large number of candidates would take interest in company.
Effective training and development: it is the vital HRM practice that must be performed in
every organisation to gain success in competitive market. BMW ascertain huge reputed brand
name into market that require highly qualified workforce and competencies at global level.
Therefore, the managers need to make culture of regular training and enhancing development
within organisation (Song, Fisher, and Kwoh, 2019). These trainings must provide knowledge
about all the work activities and make employees familiar with technology, concept and Mission
of company. The development strategy of BMW must include higher positions, opportunities for
growing in vast market.

Performance appraisal: it is also a vital practice for achieving business objective. The
human resource manager must look at performance of each employee to appreciate and motivate
them towards achieving higher positions. These appraisals could be in form of monetary
rewards, growth and development and incentives. The employees of BMW require to get entitle
with performance appraisals to retain in organisation for long time. The more they get career
opportunities and benefits, the more they will take interest in performing job roles with possible
efforts.
P4 Investigate the external and internal factors that affect HRM decision making to support
organisational development.
In an organisation, the Human Resource Department is affected with various internal and
external factors. The human resource manager needs to undertake all these factors before taking
any decision for making policies and strategies. They need to be concerned about what elements
good effect HRM decision and leads to create positive impact on organisational development. In
relation to BMW, the sectors are described below:
Internal factors:
Organisation objective: the objective of BMW is to ascertain a high position in
automobile industry. This leads to requirement of highly technical workforce to accomplish long
term objective. Therefore human resource manager of BMW must make decisions after
considering all the objectives carefully.
Marketing strategies: in the digital and modern world of marketing , the organisation need to
maintain good marketing strategies for which they require skilful employees who have good
communication interpersonal, convincing skills (Chillakuri, and Mahanandia, 2018). Therefore,
BMW is required to market their products well for which HR managers need to take decisions
while recruiting employees for the job role.
Financial strategies: The internal environments of business include a lot of financial
planning which affect HRM decision-making. Outsourcing training programs with lead to high
cost for that BMW has to make strategies according to the financial condition of company.
External factors:
Political and legal factors: the policies created by HR managers in terms of employment
area working time and remuneration are affected by political interference. BMW has to make
recruitment by ascertaining all the legal obligations over organisation for smooth functioning.

Social factors: human resource management strategies include number of person’s
livelihood. So that the employee is mainly wants flexible working hours. BMW has affected with
this factor as they require full time working engineers and less work leaves which could affect
their motivation.
Economic practice: due to high economic changes in inflation, unemployment the organisation
will face high wages and payments for hiring new candidate (Luu, 2019). The MW has good
financial position and contribution in economic development so that they could provide good
salaries and wages.
CONCLUSION
The report has concluded that human resource management is the vital function which
includes recruitment and selection, workforce planning, performance appraisals and many more.
These all are linked with sustainable strategies that require highly skilled workforce to cope up
with market changes in organisation. Also it has identified that proper training, recruitment and
selection will lead to contribute in achieving goals of organisation. Therefore various internal
and external factors would become easy to deal by the organisation.

REFERNCES:
Books and Journals:
Chams, N. and García-Blandón, J., 2019. On the importance of sustainable human resource
management for the adoption of sustainable development goals. Resources,
Conservation and Recycling, 141, pp.109-122.
Strenitzerová, M. and Achimský, K., 2019. Employee satisfaction and loyalty as a part of
sustainable human resource management in postal sector. Sustainability, 11(17),
p.4591.
Kainzbauer, A. and Rungruang, P., 2019. Science mapping the knowledge base on sustainable
human resource management, 1982–2019. Sustainability, 11(14), p.3938.
Delery, J.E. and Roumpi, D., 2017. Strategic human resource management, human capital and
competitive advantage: is the field going in circles?. Human Resource Management
Journal, 27(1), pp.1-21.
Siyambalapitiya, J., Zhang, X. and Liu, X., 2018. Green human resource management: A
proposed model in the context of Sri Lanka’s tourism industry. Journal of Cleaner
Production, 201, pp.542-555.
Song, M., Fisher, R. and Kwoh, Y., 2019. Technological challenges of green innovation and
sustainable resource management with large scale data. Technological Forecasting
and Social Change, 144, pp.361-368.
Chillakuri, B. and Mahanandia, R., 2018. Generation Z entering the workforce: The need for
sustainable strategies in maximizing their talent. Human Resource Management
International Digest.
Luu, T.T., 2019. Green human resource practices and organizational citizenship behavior for the
environment: the roles of collective green crafting and environmentally specific
servant leadership. Journal of Sustainable Tourism, 27(8), pp.1167-1196.