Evaluating HRM's Impact on Sustainable Performance: Mercedes Benz

This report examines the role of Human Resource Management (HRM) in achieving sustainable performance at Mercedes Benz. It discusses HRM as a functional area, differentiating between hard and soft HRM approaches, and explains how key HRM areas contribute to sustainable performance. The report reviews the impact of changing business landscapes on HRM skills and knowledge, comparing HRM areas to enhance organizational performance. It analyzes HRM practices related to recruitment and retention, considering the labor market's importance. Furthermore, the report investigates internal and external factors influencing HRM decision-making for organizational improvement, illustrating HRM practices in a work-related context to demonstrate enhanced sustainable organizational performance. The legal aspects of HRM are also considered, providing a comprehensive overview of HRM's strategic role at Mercedes Benz.

Human resource
management

Table of Contents
INTRODUCTION ..........................................................................................................................4
TASK ..............................................................................................................................................5
Explain HRM as a functional area..........................................................................................5
Discuss Hard and Soft HRM..................................................................................................5
Explain the principle regions of HRM of their contribution to growing sustainable overall
performance ...........................................................................................................................6
Review the outcomes of the converting nature of companies on human sources abilities and
knowledge. .............................................................................................................................8
Compare regions of HRM to create sustainable organisational overall performance .........10
Examine HRM when it comes to the converting nature of the present day enterprise
corporation ...........................................................................................................................10
Review applicable HRM practices when it comes to recruitment and retention of personnel for
the fulfilment of enterprise targets ......................................................................................11
Evaluate using HRM practices in recruitment and retention when it comes to the significance
of the labour market. ............................................................................................................13
Performance appraisal form of Mercedes Benz...................................................................14
Investigate the outside and inner elements that have an effect on HRM selection making to
help organisational improvement. .......................................................................................15
Discuss the important thing outside and inner elements that have an effect on HRM selection
making, the usage of applicable organisational examples to demonstrate how they help
organisational improvement ................................................................................................16
Apply HRM practices in a piece-associated context, the usage of particular examples to
illustrate development to sustainable organisational overall performance...........................17
Legal aspect of HRM:..........................................................................................................18
Illustrate how the utility of particular HRM practices in a piece associated context can
enhance sustainable organisational overall performance.....................................................19
CONCLUSION .............................................................................................................................20
REFERENCES..............................................................................................................................21

INTRODUCTION
In the functioning of a business human resource management plays a key role by
managing employees in a well and advanced manner (Armstrong, and Taylor, 2020). In the
recent times, it is crucial for a company to focus on development of its human resource
management department in order to gain competitive advantage. The human resource
management also play an important role in providing key solutions to employee related problems
and functions. It is major role of human resource management to develop a focused approach in
managing the employees for better development of the organisation. In this project example of
Mercedes Benz company is taken into consideration which is a German multinational
Automotive company. The company was founded in the year 1926 and is known worldwide for
its luxury cars. The company is currently having requirement of human resource management
based practices which are to implemented in order to achieve organisational success. This project
will include key focus on major areas of human resource management in order to develop
sustainable performance. The project will cover key areas related to HRM practices in relation to
the process of recruitment and retention of employees. This project will also include focus on
external and internal factors that affect HRM decision making to gain desired success.

TASK
Explain HRM as a functional area
Human resource management is the process which helps in developing various
perspectives present within an organization. Such management basically leads over improving
quality of employees by following various functions like planning, controlling, directing and
organizing company activities, utilization of workforce, recruitment and staffing.
Discuss Hard and Soft HRM
In Human resource management the concept of hard and soft deals with various elements
involved within organization growth. The “hard” aspect deals with making plan, seting of
structure and monitoring of performance. The “soft” these are based upon management and
emotions which leads upon creating diversity within workforce.
Recruitment process:
There are different steps to be involved in recruitment process which assists organisation like
Mercedes Benz to hire skilled and talented employees in their organisation. This process consist
different steps which are mentioned below:
 Identifying needs of hiring is one of first steps of recruitment process. It will provide
clarity to organisation about which types of employees they recruitment for their
organisation.
 Preparing job description is another stage in which recruitment is taking place. In this,
different skills and knowledge required by a person included which provide guidance to
candidates who are applying for job in their job organisation.
 It is the third stage in which organisation is searching for right candidates for the job
available in their organisation. It is one of important component for purpose of
recruitment and in this, business will also invest in attracting suitable candidates in the
business.
 In this stage, business is focusing on screening on numbers of application and shortlisting
on basis of requirement of business.
 Interview is to be taken by managers of company in order to understand about candidate
and also to analyse whether they suitable for job vacancy available in their organisation.

 In this stage, managers of company evaluate the candidate on basis of their competencies
and capabilities and provide employment to suitable candidates.
 In this stage, business managers intrTraining and developmentoduce new employees
with the organisation and provide them induction which will helps them to understand
job requirement.
Advantage of Selection and recruitment process: HRM practices provide different advantages
to Mercedes Benz and among these some advantage for firm are mentioned below:
 It helps business to hire skilled and talented employees in their organisation by attracting
them towards organisation.
 It also retains employees for long term in business which is important for them in order to
reduce cost of business as retaining existing employees are less costlier in compare to
hire new employees.
 It will motivate employees to work efficiency in the organisation which will helps firm to
attain its goals and objectives.
Disadvantage of Selection and recruitment process : HRM practices provide different
disadvantages to Mercedes Benz and among these some advantage for firm are mentioned
below:
 HRM is a costly set up for firm as in order to maintain an HRM team in business,
business needs to invest more. Also, different practices adoption for this process will also
increase the cost of firm.
 Having insufficient information about different workers in a firm create a negative impact
over human resource management as it does not allow them to implement right strategy
for business.
Explain the principle regions of HRM of their contribution to growing sustainable overall
performance
Human useful resource control is an helping company which improves effectiveness to
control company governance and moral troubles. This control helps companies destiny route and
imaginative and prescient of working greater effectively. HRM is one of the simplest angle this
is associated which creates sustainability inside an company. Further, HRM severely helps
companies for enhancing effectiveness in coping with company governance and moral troubles
past monetary overall performance helping realignment of company destiny route and

imaginative and prescient which makes new and higher methods advanced for engaging in
operations. Human useful resource control offers upon diverse regions that allows upon growing
sustainability with the aid of using focusing over regions like company social duty, moral
troubles, personnel compensation, organizational structure, personnel education and
improvement. These regions holds duty in phrases of growing angle that's used for boosting
sustainability inside an company (Bailey, Mankin, and Garavan, 2018). HRM branch of
Mercedes Benz must be centered upon growing diverse views that's used for achieving
sustainability those views has been mentioned as follows:
Recruiting and staffing personnel
This is one of the maximum crucial angle of human useful resource control that relates
with hiring personnel greater effectively. It leads upon locating appropriate applicants over
hiring supervisor. Through the angle first-class of personnel is advanced which makes hiring of
managers accomplished greater effectively. The programs allows upon making improvement
accomplished of body of workers greater effectively. Through making use of monitoring gadget
human useful resource programs has helped in assembly process over list criteria. The manner is
accompanied with the aid of using hiring supervisor in greater powerful manner. Recruiting
manner makes first-class of personnel advancTraining and developmented as in step with
requirement of process. It permits company to reinforce body of workers with superb approach.
Employee advantages
Employees advantages that is one of the maximum crucial region that's required to be
centered upon views like accounts, holiday time, ill go away, own circle of relatives go away and
some other advantages an business enterprise gives. These are beneficial in growing sturdy
advantages which gives personnel greater productiveness in the direction of running inside an
company. This makes human useful resource understand approximately diverse personnel
advantage software that makes personnel improvement feasible with right execution of plans and
applicability of legal guidelines in greater powerful manner. Human useful resource makes
personnel advantage feasible with the aid of using upgrading all abilties inside personnel.
Employee compensation
It’s the responsibility of human assets to determine how tons a person might be paid,
overall performance bonuses, increases and if a person is salaried or hourly (Becker, and Smidt,
2016). To that extent, they deliver the payroll branch with the statistics it desires to pay

personnel the perfect quantity if holiday pay is due, while a ill day became taken and if an
advantage has been issued.
These regions are required to be centered with the aid of using HR supervisor of Mercedes Benz
because it makes long time sustainability performed thru improving dreams and targets greater
effectively. Also the region contributes over growing personnel overall performance which
complements personnel overall performance. They contributes upon human useful resource with
the aid of using making over all improvement of human useful resource feasible inside Mercedes
Benz.
Review the outcomes of the converting nature of companies on human sources abilities and
knowledge.
The converting nature of an employer and operations is primarily based totally upon
making adjustments achieved extra efficaciously. As in line with diverse views of HR branch
hyperlink is evolved among organizational control and personnel having critical position to play
which makes facilitating of adjustments inside organizational subculture feasible. Human aid
branch has been assisting in growing diverse talents inside its worker operating in Mercedes
Benz and has been mentioned as follows:
Communication talents
This is one of the maximum critical talent that's utilized by human aid supervisor so one
can make certain that critical records is circulated extra efficaciously inside an employer.
Through communique talents diverse responsibilities like Salary negotiation, Benefit
explanation, Conflict resolution, Company shows and Employee manual updates. This has been
assisting HR supervisor makes personnel trouble solved extra efficaciously (Bratton, Gold,
Bratton, and Steele, 2021). The communique talents additionally play an critical position
growing the probabilities of coordination among personnel. The communique fashions and
techniques have to be utilized by a commercial enterprise entity so one can fulfil want and
desires of personnel. In order to expand powerful communique talents with inside the personnel
it's far important for HRM to offer suitable education and improvement. The communique is
taken into consideration as key and essential method that's beneficial in growing ordinary
coordination with inside the organisation. It is important for a enterprise to awareness on
improvement of communique with particular gear and strategies to benefit competency edge. All

principal agencies with inside the worldwide and country wide market awareness on
improvement of communique to growth sales and profitability (Tung, 2016). The pinnacle
degree control and board of administrators of a commercial enterprise have to awareness on
paying attention to worker voice for knowledge worker wishes. The significance of knowledge
worker wishes is beneficial in growing ordinary capacity of the enterprise and additionally
allows in growing ordinary improvement.
Technology talents
These are the ones talents which allows up[on growing diverse types of components
that's used so one can make generation utilized in extra powerful manner inside HR operations.
Through analysing of the talents and making worker keep command upon making organizational
carried out with the aid of using the usage of virtual platforms. Thus it's far an critical attitude for
human aid improvement. The technological talents additionally play an critical position in
growing the participation of personnel with the assist of pleasant control practices like control
records gadget and choice guide gadget. The key technological talents will assist the commercial
enterprise to develop extra on the market with the aid of using the usage of superior gear and
strategies.
Dispute fixing mechanism
This is one of the best attitude that's used so one can remedy dispute extra efficaciously.
Through such talents diverse troubles are solved extra efficaciously making troubles solved extra
efficaciously. It allows HR supervisor recognize approximately personnel nature extra
efficaciously. It leads over fixing disputes extra efficaciously (Brewster, Houldsworth, and
Vernon, 2016). Through fixing dispute HR supervisor is capable of acquire its desires extra
efficaciously.
Coaching talents
Coaching talents are beneficial in terms of one-on-one or organization periods to unfold
records or teach human beings. This can are available in reachable in education and
improvement situations, however additionally in on-boarding, re-integration, struggle resolution,
and in helping front-line managers with human beings troubles. These education talents are most
customarily evolved at the activity or in outside education education.
These talents allows HR supervisor of Mercedes Benz to for powerful staff main closer
to personnel improvement feasible extra efficaciously. Through talents improvement inside an

employer innovation and innovative questioning is evolved over making paintings achieved extra
efficaciously. This makes information progressed extra efficaciously making all form of
paintings achieved extra efficaciously. HR supervisor of Mercedes Benz is capable of enhance
its HR practices extra efficaciously.
Compare regions of HRM to create sustainable organisational overall performance
HRM practices are capable of expand higher shape of an employer which enables in
enchaining commercial enterprise sports extra effectively. These are the ones factors main closer
to improvement of organizational surroundings extra effectively (Sutherland, 2017). The precise
region over which HR supervisor of Mercedes Benz has been operating leads over enacting
surroundings through growing worker productiveness and capabilities extra effectively. It is
prime function of the human aid control to expand high-quality sustainability primarily based
totally practices which can be beneficial for growing the increase and opportunities. The key
regions and their comparative evaluation will assist the corporation to benefit improvement in
profitability and sales on the marketplace. In order to benefit aggressive increase on the
marketplace, it's miles one of the essential features of human aid control to expand systematic
approach (Brewster, , Mayrhofer, and Farndale, 2018). Sustainable organisational overall
performance is likewise beneficial in growing the probabilities of improvement of the
corporation. In order to boom the selection making with the assist of subordinate employees, it's
miles vital for human aid control to apply democratic management fashion a good way to expand
selection making approach.
Examine HRM when it comes to the converting nature of the present day enterprise corporation
The modern business organisations need effective measures related to human resource
management in order to gain competitive advantage. It is also one the major role of a business to
focus on analysing contemporary business environment and perform HR functions accordingly
The human resource is directly connected with the all departments of business like financial
management, marketing department and operations management. It is major role of a business to
develop according to changing nature of modern business organisations. It is also one of the key
role of a business to develop focused approach in managing key tasks and activities according to
the contemporary business environment. Change is the essential part of Mercedes company,
which is to be developed in order to develop focused practices and approach. The human
resource management is also helpful in making a company more competitive irrespective of the

change management practices (Crawshaw, Budhwar, and Davis, 2020). In order to lead the
marketplace within a set period of time, it is essential for a company to focus on change
management based approach. In the recent times, many global and domestic companies focus on
increasing the participation of employees to develop competitive approach in between the
modern business organisations. Employee engagement can be described as human resource
concept that consist level of dedication, enthusiasm of a worker for their job role. Engaged
employees are concerned about their work, performance of company and also making efforts in
order to make difference. It is important for purpose of improving productivity of employees, for
improving customer satisfaction, retain best people of company and provide success to company.
The main priority of a business should be to facilitate maximum participation and involvement of
employees in order to achieve key business targets.
Review applicable HRM practices when it comes to recruitment and retention of personnel for
the fulfilment of enterprise targets
The HRM practices are considered as key approach which helps a business organisation
to achieve key goals and objectives. The recruitment practices are helpful in increasing
participation of employees and hire best talent for the organisation. The HRM is the key
organisational body which facilitates operations related to recruitment and selection to provide
right type of employees to company (Wilkinson, and Dundon, 2021). It is also one of the key
role of a business to develop recruitment practices in order to gain competitive advantage. The
HRM can take help and assistance of information and technology in order to perform key
operations related to recruitment (DeCenzo, Robbins, and Verhulst, 2016). The HR also
performs key functions like interview in order to check knowledge and learnings of employees.
In order to gain competency edge at the marketplace, it is essential for the HRM to take
assistance of strategic and top level management.
Employee retention is also one of the key functions of human resource management in
order to bring back employees. The employee retention helps a business entity to decrease the
employee turnover ratio which is most important for a business entity. In order to develop a
crucial approach in managing employees, it is main role of human resource management to
select best strategic choices. The employee retention techniques are also selected by key
organisations in order to develop a focused approach. Human resource management of Mercedes
company should also develop harmony and healthy relationship between employees in order to

support retention function. In order to retain majority of employees, it is major role of business to
focus on development of key practices. The Mercedes Benz should take into consideration
development of strategic choices to focus on increasing employee engagement in order to
improve their productivity. The various HR practices are covered under HRM functions which
are discussed in relation to Mercedes as follows:
 Motivation: This is an important practice which is used for improving productivity of
employees within an organization on large scale. In relation to Mercedes Benz the
practices is used for improving ability of employee to achieve goals and objectives on
large scale.
 Performance management: This is based over managing of performance which is
based upon developing importance over an ongoing process like identifying, measuring,
and developing of employees performance within it. In relation to Mercedes Benz it
helps in improving employees performance making goals and objectives achieved more
effectively.
 Training and development: The practice of HRM includes training over those
techniques which are new to employees by developing skills effective towards
organizations functions. Thus organization like Mercedes Benz has helped in making
employees knowledge achieved more effectively.
 Reward and compensation: This is based upon making rewards and compensation
achieved over those strategies and policies which makes employees awarded for work
done by them within Mercedes Benz.
 Health and safety: This is an important practices that makes health and safety improved
for employees. The HR manager of Mercedes Benz should take care of health and safety
of its employee that increases employees satisfaction.
 Collective bargaining: Collective bargaining is the process of negotiating the
employment terms between an employer and a group of workers. The process takes place
between company management and a labour union.
Evaluate using HRM practices in recruitment and retention when it comes to the significance of
the labour market.
The labour is considered as most important resource for the business organisation which
helps in providing key solutions to the business in terms of production. The production line of a

business is highly attached with labour as it helps in optimum utilisation of resources. All major
companies in the international and national marketplace focus on development of HRM practices
in order to lead the marketplace (Delery, and Roumpi, 2017). The human resource management
of a company should focus on hiring right type of labour for the organisation in order to develop
production based operations. It is also one of the major role of a business to focus on increasing
competitive strength of the business by hiring labour. It is essential for a business entity to hire
skilled labour for the organisation in order to develop focused approach.