Human Resource Management Report: Volkswagen - HRM Strategies

This report provides a comprehensive analysis of Human Resource Management (HRM) practices, specifically focusing on the case of Volkswagen, a German automotive company. The report begins by examining how value is created through various HR strategies, including continuous enhancement, talent management, managing rewards, knowledge management, and resourcing. It then analyzes the impact of regional and national culture on HRM practices within Volkswagen, emphasizing how cultural factors influence recruitment, training, and overall employee management. The report further explores Volkswagen's employment model and the organizational levers employed to create value, such as strategic communication, relational trust, strategic hiring, and strategic direction. A key section differentiates between human resource management and personnel management, highlighting their distinct approaches and objectives. The report also addresses the importance of local culture in HRM practices, particularly within transnational subsidiaries. It examines the differences in employment laws when international HRM modifies local business systems. The report concludes with recommendations and suggestions for improving HRM practices at Volkswagen, providing a holistic overview of the company's approach to managing its human capital.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1 Examine how value is created by companies by using HR strategies...................................1
P2 Analysis of impact of regional and national culture on practice of HRM in.........................3
P3 Company’s model of employment and state organisational lever used by company to
create value..................................................................................................................................4
P4 Difference between human resource management and personal management as a
benchmark...................................................................................................................................5
P5 Importance and significance of local culture and human resource management practice
requirements which are to be undertaken in general and practices which are required to carry
HRM in transnational subsidiary................................................................................................7
P6 Examine difference in terms of employment laws when international HRM changes local
business systems..........................................................................................................................7
P7 Justification............................................................................................................................8
P8 Recommendations and suggestions.......................................................................................9
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Human Resource Management is referred as an strategic approach to an effective
management of employees in companies like they help their businesses to gain competitive
advantage. It is simply designed to maximise employee performance in service of an employer's
strategic objectives and goals(Stewart and Brown, 2019). Human resource management is
generally concerned with management of employees with in company, focusing on policies and
systems. Human resource departments are generally responsible for overseeing employee
benefit design, employee recruitment, training and development, performance appraisal and
managing rewards in order to manage pay and employee benefit programs. This report is based
on human resource management of European Union company Volkswagen which is a German
auto mobile company and it is known for its iconic Beetle. It is flagship brand of Volkswagen
Group. This report includes difference between human resource management and personnel
management, concepts of strategic HRM, understanding of employment model, impact of
regional and national culture, significance of culture to organisational behaviour, evaluation of
international HRM changes local business systems along with its conclusion.
MAIN BODY
P1 Examine how value is created by companies by using HR strategies.
Human resource strategies generally refers to business's overall plan that is implemented
and used in order to manage human capital to align them with business activities(Pieper,
Greenwald and Schlachter, 2018). Human resource strategy is related with guiding and direction
of all key areas of HR like hiring, development, performance appraisal, recognition as well as
compensation. These strategies are said to be long term plans which dictates human resource
practices by company and needs analysis of external as well as internal environment. There are
different strategies which help in creating value for business. In terms of Volkswagen, some of
strategies that creates value for business are as follows: Continuous enhancement: This strategy states that human resource management is
focussed on having regular improvement in innovation and in employee performance
that has to be sustained over a specific period of time. This human resource strategy
generally helps in creating value for Volkswagen, as it facilitates flexible working
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environment in which regular innovation and enhancement has been used in company.
This strategy helps in supporting and building strong competitive advantage for company. Talent management: This human resource strategy is defined to have regular and
continuous process of retaining and attracting high quality of employees, developing
employee's skills, abilities as well as motivating them to enhance their performance. In
this strategy company intends that how to have talent which is tend to produce quality
and productivity (Arubayi, Eromafuru and Egbule, 2020). In terms of Volkswagen,
enhancing and retaining employee's skills and talent is carried in order to have better
results that will proceed by having better productivity, customer satisfaction as well as
proficiency. Managing rewards: This HR strategy in companies helps in developing rewards
practices and policies which helps in achieving goals and objectives of business and fulfil
requirements of workforce. In terms of Volkswagen, company uses this human resource
strategy that helps in adding and creating value to employees and makes them sustain in
their workplace for longer period of time in company and continue in contributing
business success and profitability. Knowledge management: This HR strategy is related with creating, acquiring, sharing,
capturing as well as implementing of knowledge to improve learning and performance of
workforce (Rodríguez-Espíndola, Albores and Brewster, 2018). In terms of
Volkswagen, company is providing specific training and development programmes so
that employee's abilities and knowledge will be enhanced on regular basis. This strategy
is carried by which performance will get increased and produces better results by having
higher profits.
 Resourcing: This human resource strategy refers in retaining and attracting high quality
and skilled employees so that talented and skilled workforce will be maintained in
companies. Human resources are considered to be an important as well as essential
resource which is to be performed effectively by companies. In terms of Volkswagen,
company develops and designs various strategies in hiring and recruiting employees so
that skilled employees could perform their role and duties effectively as well as
contributes in having growth of company.
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P2 Analysis of impact of regional and national culture on practice of HRM in.
Culture could be defined as features, ways of learning and sharing behaviours with
different beliefs of a specific ethnic and social group. It is also defined as a collective and
difficult human beliefs with its structure stage of civilisation that could be specified of a
particular period of time or to a nation (Machlis and Tichnell, 2019). In terms of Volkswagen,
human resource management practices in company is dependent upon various aspects that are
providing safety and security for their employee's hiring, training, promotion, performance, team
work as well as development. It also provides easy accessibility upon information which is other
aspect that are included in their HRM practices. These practices helps in developing
effectiveness that makes cultural understanding of employees. With this practices cultural is
promoted by working surroundings and on other hand it helps in enhancing efficiency in
communication through redundancy and confusion.
In regional and national culture that creates direct impact on HRM practices of company
which are as follows:
 HR of Volkswagen must follow various recruitment policies for hiring of employees.
Culture should be considered as higher to understand foreign culture and various factors
that are related to individual's apply.
 As in Asian companies work is basically carried upon having extensive selection whereas
in US short selection process is followed. In this HR of company becomes more aware
about attributes and cultures. There are various problems and challenges like difference
in language, buying habits, dressing sense and different other factors is being faced by
companies.
 HR of company generally selects employees which have better skills and techniques and
it is required to know about how challenges and cultures are faced by HR in company. In
this training and development policies is being adapted by HR of Volkswagen which is
easily being understood by new recruiters that makes an easy understanding over working
norms and conditions possible.
 There are challenging problems which are faced by HR of company. As providing
training of employees that are belonging to various culture, different languages as well
as religion by norms and values.
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P3 Company’s model of employment and state organisational lever used by company to
create value.
Employment model are basically designed to support complex as well as simple work
relationship between employees and different elements in companies that is important to manage
employees efficiency so that they could be able to work with full capability which is aligned
with company's objectives and goals(Shantz, , Wang and Malik, , 2018). There are generally two
kinds of employment model that companies that takes usage to maintain their workforce
effectively. By using employment model company as well as legal employer offers flexibility for
during and after implementation of strategies for having higher performance and productivity in
company. By having support of this model Volkswagen will effectively manages employee's
relationship with legal employers, various assignments and individual contractual agreements
through high ease and flexibility.
Organisational levers:
It is defined to a factor which is desired and required by every company. Organisational
levers are required to be accomplish success and growth of company. There are different
organisational levers which is used to create and design value for effectiveness. In terms of
Volkswagen, various organisational levers which is used by company in order to have efficiency
in their work are as follows: Strategic communication: This lever states that there should be a specific channel of
communication throughout company that is used to communicate expectations and values
of employees working at each level. In terms of Volkswagen, this lever help company to
maintain transparency for better decision making and enhancement of quality of work
while decreasing confusion, conflicts and overlapping. Relational trust: As trust between employees at every level is important for having
values and excellence of company. It is important to establish trust between members
from employees to top level superiors. In terms of Volkswagen, company encourages its
employees to speak openly about their concerns by which they could address
proactively(Riccucci, Naff and Hamidullah, 2019). This type of environment in
company helps in creating support and values in growth and success of company. Strategic hiring: As effective hiring practices helps in decreasing turnover, recruitment
cost and enhance effectiveness of companies. For carrying this it is important and hire
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right employees at right profile by which skills and knowledge of employees could be
matched better with a particular job role. In terms of Volkswagen, company is basically
focused on hiring skilled and talented employees so that there planned objectives and
goals could be meet easily.
 Strategic direction: As for building an effective company it is important to understand
company's purpose and aims. With this company is able to define their long terms goals
more clearly which helps companies in moving towards accomplishments of objectives
and goals. And for this it is essential to ensure that business has to be put into various
practices that creates values for company and help in accomplishing goals. In terms of
Volkswagen, company is focussed in providing their employees a sense of direction so
that they will be able to perform their duties and roles in an effective manner and planned
goals and objectives are to be met timely with an ease.
P4 Difference between human resource management and personal management as a
benchmark.
Human resource management is defined as a formal system which is devised for
management of employees in company. It includes practices of recruiting, hiring, managing and
training employees in companies(Mabaso and Dlamini, 2018). This has been done for managing
employees within workplace in order to achieve its company 's mission and reinforcing culture.
It consists as well as ensures various compensation and benefits which has to be fair so that
positive environment in company will be designed.
Personnel management is defined as a administrative of specialisation that is concerned
with hiring and developing employees so that they could become more valuable for their
company. It is basically related with sub category of human resources which focuses on
administration. Personnel management generally deals with performing managerial functions for
measuring and classifying human resources needs so that company could be able to accomplish
targets with support of employees and their relationships. In terms of Volkswagen, human
resource management and personnel management are differentiated as follows:
Basis Human resource management Personnel management
Meaning It refers to managing of employees It refers to administration record,
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with company to order to improve
their performance and quality results.
keeping function at operation level. It
deals with employees and includes
hiring, training and paying them for
their work.
Key relation It have key relation with customers,
as this help in to improve customers
satisfaction by increasing
performance of employees.
It have its relation to labour
management as this is an
administrative function and deals with
workforce.
Conflict
management
In HRM, culture as well as climate
are managed in company's workplace
so that conflict could be reduced.
Temporary solutions are used for
handling conflicts in company.
Communication It facilitates increased flow of
communication as employees are
encouraged to have open
communication by making strong
bond and trust that has been
developed(Mitchell, 2018) .
Communication is restricted as it
follows a specific hierarchy to
communication.
Management
role
It follows transformational
management role that encourages, in
spire and motivates employees so
that they can perform with their full
potential.
Personnel management plays
transactional role in management that
they value order and chain and
focuses on supervision, organisation
and performance.
Human resource management practices in Asia: Self managed and effective teams: As team work in company is difficult to carried for
accomplishing objectives. In this HR of company encourages its employees to work
together as a team for company so that their capabilities will be improved while
achieving task on time(Taylor and Kliestikova, 2018). As for Volkswagen, company is
focused in utilizing of communication software, project management, feedback tools
which helps in being more efficient.
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 Providing safety to its employees: This practice of human resource management helps
company to retain its employees for long period of time and makes their employees feel
motivated to work with full efficiency.
P5 Importance and significance of local culture and human resource management practice
requirements which are to be undertaken in general and practices which are required
to carry HRM in transnational subsidiary.
Human resource management practices are important elements in companies that makes
business better to attain its objectives. As these practices are used in Volkswagen, for
enhancement of performance in corporate market for resolving different challenges which makes
significance which is implied on continuous development. Present scenario of business is not
focused on local workforce but also searching forward in making acceptance developed upon
global platform. In this hiring and firing is related for making new recruitment or exit on prior
employees for developing sustainability upon working culture(Deyo, 2019). As it makes
reflection perform over sustainable growth and development by components of long term success
which is being accomplished on regular basis. In terms of Volkswagen, importance of hiring and
firing of local employees are as follows:
 It helps in reducing lesser costs that is being compared over expected by hiring employee
of local culture to cut cost three times. It also consists of relocation, culture and language
training that is not bear by company.
 As local employees have more knowledge over culture which easily navigates about their
problem with an ease by hiring that designs productivity which is attained in outcomes
that are generated from financial losses.
P6 Examine difference in terms of employment laws when international HRM changes
local business systems.
Human resource management is generally dependent on internal aspects that are related
to international HRM practices which is based on external as well as internal aspects.
International HRM change of local business system in terms of making management of
employees in various nation 's host, third part and parent(Altman, Larsen and Buchanan, 2018) .
In terms of Volkswagen, there are employment laws in international HRM as well as local
business system are as follows:
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 Third country Nationals: It involves employee over country that makes working in
various country over Volkswagen headquarters. Parent country nationals: It is defined as a country that is based over origin and base
that business is performed by functions.
 Host country national: It includes employees of Volkswagen working in foreign
subsidiary of business.
Volkswagen in UK is required to follow different laws like employment rights act 1996
that helps company in dealing with unfair dismissal, redundancy and leaves(Hong and Varghese,
2019) . Human resource management of company should ensure that all these laws are
associated with employee and it is provided and ensures that no harm and exploitation is
performed towards employees by other employees and superiors with productivity surrounding
over business that is being promoted.
P7 Justification
From this report it has been analysed that human resource is being managed and controls
various working over business with fairness. With this employees are biggest asset that makes
company to build and gain competitive advantage in markets in a proper manner. These practices
are needed for attracting and retaining of employees that encourages perfection with motivation
and effectiveness possible.
Human resource segments and functions in business and these strategies helps in
designing management for having planning in order to meet requirements that arises in future.
Employment and workforce planning helps in managing recruitment, selection, orienting and
training of employees.
In terms of Volkswagen, HR of company has developed various strategies that are based
over needs and demands conditions by having effectiveness in company;'s working. As they are
working over managing and controlling risk through appropriate management for making
profitability upon controlling success. Company is working within UK and Asian country thus
makes supplementary alternation within business for making all employees that makes comfort
through working in positive way for making promotion.
P8 Recommendations and suggestions.
According to above report it has been analysed and measured that Volkswagen is using
different human resource practices in a efficient manner by which it is effectively increases its
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productivity and efficiency. There are some of recommendation that could be provided to
company for carrying human resource practices effectively and could be utilized for performing
their company';s functions. Some of recommendations are as follows:
 Manager should make information easily accessible to those who requires it as a sharing
of information which is important for decision making and to carry their role efficiently.
 There should be open communication and sharing of information as well as data about
their strategy, financials and operations that creates culture in which employees are
trusted.
 Volkswagen should starts creating favourable working conditions in which basic
requirement of employee which have to be satisfied while improving them to work
productively and to keep their motivation high.
 Company must facilitates its employees with all necessary commodities to employees
will increase the productivity and efficiency of work.
 Company should also keep their focus on the employee retention so that employee
turnover will be reduced and talent get remain in the company. Employee retention
efforts of company make workforce feel that they are valued through which motivation
level get enhanced.
CONCLUSION
From above report it has been concluded that human resource management is an important
element which is to be performed by companies in order to increase their effectiveness. Human
resource is said to be an behaviour of employee which form workforce together for a company.
There are different human resource strategies which have been used and implemented in
businesses in order to design and create value for business and help in having growth of
company. Various Human resource management practices of company is being influenced by
regional as well as national culture. Company's employment model and lever plays an important
role in designing value for company. HRM is diverse and different function from personnel
management in context of different factors.
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