Evaluating HRM Practices and Their Impact on BMW's Performance

This report provides an analysis of Human Resource Management (HRM) strategies employed by BMW, focusing on their contribution to organizational performance. It begins by comparing various HRM areas such as recruitment and staffing, employee training and development, and worker benefits, highlighting their individual and collective impact on the company's efficiency and profitability. The report then examines the role of strategic HRM in adapting to changes in the business environment, emphasizing the importance of acquiring and developing a skilled workforce. A critical evaluation of recruitment and retention practices follows, discussing both the positive impacts, such as improved employee retention and performance, and the negative impacts, such as increased costs associated with inappropriate hiring. Finally, the report investigates internal and external factors influencing HRM decisions within BMW, including labor force availability, government regulations, social changes, and technological advancements, and how these factors support organizational development, all of which is available along with other resources for students on Desklib.

UNIT 3 HUMAN RESOURCE
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Comparison of various HRM areas and their contribution in organizational performance........3
Examining strategic HRM in relation with change effects in business environment..................5
Critically evaluation of role recruiting and retaining appropriate employees.............................5
Internal and external factors that affects the HRM decisions in the workplace and also
evaluating these factors for supporting the organizational development:...................................6
PART 2............................................................................................................................................8
Covered in Presentation...............................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
The Human Resource Management is defined as the strategy used by various
organizations for gaining competitive advantage with the use of effective recruitment, hiring,
development and managing of workforce. These areas help the BMW in contributing towards the
welfare for the company, helps in maintaining the sustainable performance of the organization
which further creates the effective and standardized meeting requirements and improvement in
performance for the organization. Report delivers about 'BMW' one of the top luxury vehicle
brand based in U.K. Analysis showcase about different areas of HRM and their contribution
towards performance of firm. Further analysis discuss proper examination of strategic HRM with
relation towards changing effects on firm and their business environment. Lastly, the report
showcase about the evaluation of role of recruitment along with retaining appropriate employees
from the labour market along with investigation to internal and external factors influencing
HRM. These factors after evaluation will further lead the development of the organization and
result in improving the performance.
PART 1
Comparison of various HRM areas and their contribution in organizational performance
The major areas of Human Resource plays an important role in the effectiveness of
performance. Human Resource Management requires at every level of an organization for
providing company wit various benefits and increasing profit accessibility with gaining
competitive advantage over other firms. These areas include:
Recruitment and Staffing of workforce: Under this area BMW's HR management team
works on sought and providing company with potential employees suitable for job (Wikhamn,
2019). As well as under the staffing process the most suitable individuals been hired for filling
up the role. This may lead to providing sustainable performance by firm. An important part of
human resource for selecting the most suitable personnels required for the right job. With the
selection of right candidate company may able to improve their quality, increase diversity in the
working area, strategic alignment with being able to earn long term profits and increase
efficiency for the firm.
Employee Training and Development: The human resource management team of
BMW aims to provide their workers with familiarity and training in according to the work and
also developing their key skill set required. Along with providing quality products and services

to customers. This is an important term for company for gaining higher capacity for adapting
new methods and technologies. Employee training and development aids 'BMW' keep up with
ever-growing changes in the market and in industry. As well as also aims firms to increase their
workers job satisfaction towards their work with boosting their working morales. The biggest aid
provide towards company with decreasing in the employee turnover rate as, withy less number of
employees leaving work results in increased efficiency of organization. This also allows 'BMW'
human resource team to retain talent with gaining the most suitable workers, also aims in gaining
competitive advantage over other firms and increase in profitability.
Workers Benefits: With this area HR department aims to work on providing staff with
different kinds of benefits like insurances, medical facilities etc. for improving workforce
influence in work and producing high and standardized cars. With this feature helps company in
attracting the most talented candidates for choosing organization, keeps in maintaining an equal
balance at workplace and healthy workforce, boosting in workers productivity and enjoying
more and better worker morale.
Comparison about areas of HRM: While every area is important in aspect of
contributing into delivering the best, comparison of major areas include as under the recruitment
and staffing area aims at providing company to analyse, observing and sorting of employees
required for job with this area aids in finding and placing right and most suitable candidate for
the right work like engine processing, production or other (Dastmalchian and et.al., 2020).
Whereas in the workforce training and development area focus on providing the selected person
with immediate and effective training about the work in order to match the requirement and
delivering sustainable performance in organization working. Apart from above two the area of
work force benefits helps BMW to made their employees interest in work and delivering out the
best and quality efficient cars, by providing them with various benefits.
Contribution of HRM: As all the areas may varies and be different from others but ends
up Contributing in welfare for company in providing and maintaining sustainable performance
of BMW (Marescaux, De Winne and Forrier, 2019). The HR team focus on areas required to be
improved and work on that so that company may able to achieve efficiency in working as well as
goal achievement. Areas major contribution may also leads to have an impactful working
environment improving the productivity without causing any major problems which ends up in
producing quality effective and standardized cars for meeting customers requirement.

Examining strategic HRM in relation with change effects in business environment
The Strategic Human Resource Management is defined as the practise used by
organization for getting of workers with attracting, rewarding, developing and retaining which
will end up in providing benefits to both organization and individuals. With the achievement of
strategic HRM company may able to achieve performance objectives. Apart from that strategic
hrm in relation to change effect under business environment aims to get and provide company
with the most efficient working force which required proper skills and knowledge. For example
the HR management team of 'BMW' aims to hire and recruit the right individuals acquiring the
right skills set for filling up their working requirements (Jiang and Messersmith, 2018). As well
as team also focus on improving the existing workers with providing them proper training and
development resulting in add on skills. The strategic resource management also plays important
role in relation when new changes occurs it aids enterprise to work accordingly to the
requirements and gaining access towards new techniques needed for fulfilling the part.
On the other side SHRM also aims in 'BMW' management to gain advance flexibility
innovation in the business environment resulting in gaining competitive advantage over other
companies. With changes in needs and requirements according to organization strategy aids in
hiring of new personnel to satisfy departmental needs along with forecasting future needs
company may require for gaining more efficiency (Kosheleva and Bordunos, 2018). For example
'BMW's shrm team focus on setting efficient people for firm to achieve specific goals and also
by measuring performance with HRM. With recruiting and gaining new people for the right job
aids enterprise in improving the quality performance, removing all the problems, dealing with
changes and gaining profitability. With this technique firm also gets an advantage of devolving
employee engagement and retaining of workforce with an immediate effect.
Critically evaluation of role recruiting and retaining appropriate employees
The Human Resource Management practice of recruitment and retaining puts an impact
on company in both positive and negative ways (Hadi and Ahmed, 2018). As under this firm
tends to select and recruit the most appropriate and suitable personnels for the job and after that
providing them with proper training and development which may result in organization to gain
more efficiency and effectiveness, in processing the operations. For example when HR
management team of 'BMW' select workers with right required skills and knowledge aids firm in
identifying the missing skills and competencies in the organization. Along with that also helps

company in increasing profitability and performance by firm with providing quality performance
(Morello, Issa and Franz, 2018). The role of recruitment and retaining also puts positive impact
in enterprise working with improving employee retention rate so that less number of workers
leave the firm. More efficiently recruitment process may also have a major impact on
engagement, increasing performance and reducing staff attrition. Apart from that also aids firm
in improving their working ability by providing them with benefits and boosting their morale for
more and effective working.
On the other hand the practice of recruitment and retaining also does put negative impact
on the working of enterprise as with recruitment of inappropriate workforce leads to cause in
high costing of firm in the whole process of selecting. As well as also puts the whole training and
development into a great downfall which may results in degradation of new skills and knowledge
developed by personnel if that is being not used effectively. When company hire for some
specific position, typically results in having to do the whole process over and over again for
fulfilling that role (Vetráková and et.al., 2018). Ending up in wasted time, efficiency, money and
energy for the recruiter. For example when 'BMW' Human resource team choose to hire
inappropriate candidate results in decreasing efficiency of work, also may cause various
problems and challenges needs to be faced by firm. As well as downfall of whole recruitment
plan for the company and results in quality and standard of cars enterprise made. With very less
effective working of company also leads to not being able to achievement of organizational
goals, reduced competitive advantage may results in other brands to take over and also decreased
in efficiency and customer services that BMW provide.
Internal and external factors that affects the HRM decisions in the workplace and also evaluating
these factors for supporting the organizational development:
Human resource department pays very important role in the area of the workforce, as of
planning, employee and labour relation, training and development, legal compliance, within the
BMW. External factors are those forces which gives the shape and form of the development of
the economic activities and mainly includes various issues. These factors of the human resource
management mainly include socio culture, political, legal and the professional association
practise.
Labour force availability: It is the main function of the HRM to maintain the adequate
staffing level of the workforce planning. It influences the ability to recruit the qualified candidate

mainly the labour availability, which is affected by the unemployment rates, number of qualified
workers, the number of the specialized people with the skilled and the technology . The BMW
might have the difficulty in finding and attracting the suitable candidate especially the among
skill being demanded by the organization. In the labour pool the company location and the area
is also a factor where the company HR need to focus on their recruiting efforts outside the region
and pay the packages as appropriate to the qualified staff for the position (Raju and et.al., 2021).
After analysing this factor the right labour employed at the right place will provide the gainful
employment for BMW and contributes the individual personal well-being and the growth for the
organization.
Government regulations and legal changes: The federal and the state workplace laws
effects the organization. These influence the BMW in hiring, training, compensating, and even
disciplining its workers. Even a small misstep can result in the company sanctions and the
lawsuit may filed against employees, vendors and customers. Example : the legislations are the
area which will affect the BMW company in the maximum working time and the employment
rights impact directly on the workforce planning and remuneration (Čižinská, Matějková and
Nesez., 2021).After analysing this factor will help the company in protecting the rights of the
employees, protecting the environment, furthermore, helps in becoming the business driven
society.
Social changes: These are the increasing concern of the privacy, HRM needs to be aware
of the social issues related with the security data and the privacy for the company. workforce of
the company needs to be employed with the federal regulations which ensures the worker to
have a safe workplace.
Technological changes: Technical and digitalization is a major source for increasing the
productivity. These include the invention, techniques which affects the things in designing,
producing and distributing the products. Example for this factor which helps in the decision-
making and the development in the BMW, with the help of technology this will help in
determining the type of the skills to be possessed by the performers. As for the knowledge based
and the IT sector area in the company, skills needed is quite different as compared to the other
companies operating. So these factors helps in the development and analysing the economic
changes, and the market changes which affect the environment. Internal factors are those which
affect the HRM and can be controlled easily (Nobanee, H. and et.al., 2021).These factors help in

figuring out the strength and weaknesses of the company. After analysing the technical factors
will hep in advancement in the connecting the vehicle with the surroundings and the other
traffics. With the technology the BMW has introduced the unique connected devices services
with the apps.
Corporate objectives: The companies goals and objectives mainly includes the survival,
making the profits and gaining the market share with the global recognition. As the company HR
takes care of the corporate objective by resolving the disputes and the labour relations within the
BMW by setting the corporate objective properly as it affects the decision-making in HRM.
Financial strategies: These help in allocating the resources and the finance with the
business. The finance help in the goals, and in maintaining the balance between the cost and the
revenue. Financial strategies mainly affects the implementation of the technology, working
environment, training and development, and recruiting the good talent in the BMW (Jiang, X.,
2018). Example can be, the company has to take the decision for the outsourcing and training
this will further result in more financial requirement, will result in overall development of the
workforce of BMW, also for instance the HR managers will consider the cost and benefit for
recruiting the new employees, furthermore, considering the impact of HR policies on the
profitability of the organization. After analysing the financial factors it will help the company in
allocating the savings into fruitful investment channels.
Furthermore, the marketing strategy factors also influences the BMW. example launching
the new product in the market will require the changes in the marketing team, the organizational
structure and recruiting new sales team for development of the performance (Internal and
External Influences on Human Resources, 2021). furthermore, the BMW uses the different
marketing mix which helps in development for the performance ,the company mainly sell the
cars to the different socio-economic segments, by using the proper mode of channels by
promoting the auto mobile through online ad, billboards, print ads, and continuously adopting the
brand awareness.
PART 2
Covered in Presentation
CONCLUSION
From the above report it can be concluded that human resource is the key strategy used
by various businesses organizations. The various HRM areas that contributes in the

organizational performance mainly includes the recruitment and staffing of the workforce,
employee training and development, workers benefit, comparison about the areas of the HRM.
These areas help the BMW in contributing towards the welfare for the company, helps in
maintaining the sustainable performance of the organization which further creates the effective
and standardized meeting requirements and improvement in performance for the organization.
Also, the HRM in relation with the change in the business environment helped the company in
focusing on recruiting the right individuals, with the right type of skills required for filing the
working requirement, also it helps the company in gaining the flexibility in innovation of the
business resulting in the acquiring the competitive advantage. There are major factors which
affects the organization environment and the workplace of the HRM mainly includes labour
force poll, government regulations, social changes, technological changes, corporate objectives,
financial strategies and the marketing strategies.

REFERENCES
Books and journals
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pp.8-18.
Dastmalchian, A. and et.al., 2020. High-performance work systems and organizational
performance across societal cultures. Journal of International Business Studies. 51(3).
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Hadi, N. U. and Ahmed, S., 2018. Role of employer branding dimensions on employee retention:
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human resource management. The International Journal of Human Resource
Management. 29(1). pp.6-33.
Jiang, X., 2018. Improving the Cross-Cultural Marketing Strategy of Chinese Atomobile
Industry: Case Company: BMW.
Kosheleva, S. and Bordunos, A., 2018. HRM systems effects as a basis for strategic HR
planning. Human Resource Planning for the 21st Century. pp.83-102.
Marescaux, E., De Winne, S. and Forrier, A., 2019. Developmental HRM, employee well‐being
and performance: The moderating role of developing leadership. European
Management Review. 16(2). pp.317-331.
Morello, A., Issa, R. R. and Franz, B., 2018. Exploratory study of recruitment and retention of
women in the construction industry. Journal of Professional Issues in Engineering
Education and Practice. 144(2). p.04018001.
Nobanee, H. and et.al., 2021. Financial Analysis of BMW & Daimler (Mercedes-
Benz).Available at SSRN 3766088.
Raju, T. B. and et.al., 2021, June. Ranking of Factors Affecting Covid-19 Vaccine Distribution
Using BWM Method. In The International Workshop on Best-Worst Method.(pp. 238-
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Vetráková, M. and et.al., 2018. Corporate sustainability in the process of employee recruitment
through social networks in conditions of Slovak small and medium enterprises.
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Online
Internal and External Influences on Human Resources, 2021, online available through:
<https://www.tutor2u.net/business/reference/internal-external-influences-on-human-
resources>