The Role of HRM in Sustainable Performance: A Volkswagen Case Study

This report provides a comprehensive analysis of Human Resource Management (HRM) practices within Volkswagen, a leading automotive manufacturer. It explores the critical role of HRM in fostering sustainable organizational performance, detailing its contributions to talent acquisition, retention, and skill development, aligning with overall business objectives. The report delves into the influence of both external and internal factors on HRM decision-making, particularly in the context of organizational development. It investigates how technological advancements, labor market dynamics, governmental regulations, organizational culture, and HR systems shape HRM strategies. Furthermore, the report evaluates the practical application of HRM practices, such as workforce planning, staffing, compensation, health and safety, employee relations, training and development, and performance management, within Volkswagen, assessing their strengths and weaknesses. The analysis includes a critical evaluation of HRM's contribution to business success, supported by comparisons with other organizations like Aston Martin. The report concludes with recommendations for enhancing HRM practices to improve sustainable organizational performance, focusing on performance management and employee-employer relationships, ultimately aiming to optimize business outcomes.

3 Human Resource
Management (Pass
Criteria)

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
CHAPTER 1....................................................................................................................................1
The role of HRM in creating sustainable organisational performance and its contribution in
recruiting and retaining talent and skills to achieve business objectives.....................................1
CHAPTER 2....................................................................................................................................4
The effect of external and internal factors on HRM decision making in relation to
organisational development.........................................................................................................4
CHAPTER 3....................................................................................................................................6
Applying HRM practices in a work-related context for improving sustainable organisational
performance.................................................................................................................................6
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Volkswagen is leading motor vehicle manufacturer that enables individual mobility for
millions of customers at global level with affordable, fascinating, sustainable as well as reliable
attributes. The company aims to promote highest technical expertise level and strong team spirit.
Globally, the establishment employed approximate of 668000 people in the year 2021 (Number
of Volkswagen AG employees worldwide from 2008 to 2021(in 1,000s), 2022). Human resource
management is demarcated as employing personnel, training them. Setting their compensation,
developing policies for them along with developing retaining strategies. It is all about
maximising productivity of company through optimising effectiveness of organisational
manpower.
The project covers impact of role of HRM in creating sustainable business performance and
effects of external along with internal factors in decision making of HRM for organisational
development. It also includes application of HRM practices to improve sustainable
organisational performance.
CHAPTER 1
The role of HRM in creating sustainable organisational performance and its contribution in
recruiting and retaining talent and skills to achieve business objectives
HRM role in achieving organisational objectives
HRM can be viewed as the functional activity that entails designing and analysis of job,
recruitment and selection, training and development, performance management, compensation
and benefits along with managerial and labour relations (Stone, Cox and Gavin, 2020). In
Volkswagen, human resource management performs role of ensuring that company is able to
attain its success through available workforce. With this, managers improve business capability
and effectiveness to accomplish goals through making best possible use of available human
resources.
The roles of HRM
Workforce planning is a process to generate information along with analysing it for
informing future demands of human resources and sets of skills for creating actions to develop
existing manpower having potentials to meet demands. Within Volkswagen, objective of
workforce planning is to make sure that there are adequate number of human resources to run the
1

business effectively and efficiently in present and future time period. Mentioned below are some
of roles played by human resource management in Volkswagen:
Staffing: It is role of human resource management to recruit and select right candidate at
right position at right time. It comprises of creating position announcement, finding, selecting
evaluation along with developing working relationship with existing and future human resources.
In Volkswagen, main purpose of human resource management is to fill variant job roles at
workplace with suitable candidate.
Reward and Compensation: Herein, human resource management of company performs
role of implementation as well as formulating policies together with strategies which aspire
rewarding personnel in equitable, regular and fair manner as per performance and values (Garg
and Et. Al., 2021). In Volkswagen, purpose of human resource management is to devise
attractive yet efficient rewards and compensation packages for attracting wider talents into
workplace without disturbing business finances.
Health and safety: In a company, human resource management has role to adhere health
and safety regulations to provide protection of health of each manpower. In Volkswagen,
purpose of human resource management is to foster safe work environment by implementing all
occupational based health and safety programs.
Employee relations: In this, role of human resource management is to determine amount
of work which required to be completed in particular day as well as ways to mobilise workforce
for goal accomplishment. In Volkswagen, purpose of managing human resource is to managing
work schedules, relationships and productivity of personnel along with company.
Training and development: It is key role played by human resource management of an
enterprise. In this, a systematic setup is established by human resource management wherein
manpower is provided instructions along with taught matters related to technical knowledge
concerned with jobs. Within Volkswagen, purpose of human resource management is to provide
orientation, evaluate performance, handle succession planning, assign suitable training along
with improve processes of the company.
A review of the different HRM areas and departmental scope with their contribution to
organisational performance
In overall performance of company, areas of human resource management as well as
departmental scope contributes through developing psychological contracts, increasing skill sets,
2

increasing commitment and extending skill base. Within Volkswagen, training and development
contributes in business performance by allowing personnel to pinpoint skills and knowledge as
well as enhance capabilities by providing updates to set of skills for enhancing productivity.
Likewise, employee relation contributes in organisational performance through creating working
environment which motivates people for achieving goals of company. Moreover, rewards and
compensation contributes in driving Volkswagen performance through motivating each
manpower to reach targets addition to business goals in exchange for rewards.
An examination of strategic HRM in relation to the changing effects on organisations and
its business environment
Strategic human relations management is long term required planning of activities
concerned with human resource management with the aim of ensuring organisational
sustainability (Chaudhary, 2020). In Volkswagen, strategic human resource management
considers changes that are arising in business environment at the time of devising decisions. In
decision making of human resource management of Volkswagen, one of factor is technology that
influences practices of human resource management. It is examined that advancement of
technology impacts practices of human resource department as it permits improvement in
internal processes and business structure as whole. Artificial Intelligence and Machine learning
are key technologies used in Volkswagen for performing tasks related to managing personnel. It
contributes in faster, more accurate along with efficient processes that reduces various HR costs.
Another factor is labour market that impacts decision making of human resource management by
helping managers to find qualified personnel for jobs which the company offers. Human resource
management also ensures to provide competitive compensation packages to its labours or
employees.
Importance of HRM for resourcing, recruiting, selecting, and retaining required
employees in the workplace from the labour market
HRM is important for resourcing from labour market in Volkswagen as human resource
managers match capabilities of people to strategic along with operational needs of company. In
context to recruitment, HRM is important as HR professionals discover reliable sources in order
to contact desired personnel for meeting needs of staffing. In recruitment, HR manager make use
of variant documents that are offer letter, job description and reference check guide. In context to
selection, human resource management is important as managers make decision about hiring
3

some personnel internally or externally for a vacant position. In selection, key stages on which
managers of Volkswagen are job designing, position designing forming selection committee,
recruitment, initial screening of candidates, pre interview options and final selection.
Critically Evaluation of strengths and weaknesses of HRM in terms of its contribution to
business success. Using other organisations as examples to support the analysis of the HRM
activities
In success of Volkswagen, strength of human resource management is effective practices
related to training, development, reward, compensation and staffing as all these help managers to
manage people by covering improvement on performances, developing employees along with
effective communication. Another strength of human resource management of Volkswagen is
organisational compliance as HR managers of the company are specialise in all the areas
comprises compensation and rewards, training and development, staffing, etc to employment law
that results in business success (Stewart and Brown, 2019). However, HR managers of
Volkswagen lacks actualisation that is weakness of human resource management of the company
that leads to disturbing management profitability along with productivity of the company.
In contrary, other organisations, such as Aston Martin, inclusivity is one of strength of
human resource management as HR managers have job to ensure all workforce feel comfortable
addition to welcome in workplace that brings everyone together resulting to higher returns on
training and development or other practices. Nonetheless, lack of strategic foundation is
weakness of human resource management at Aston Martin as HR management department of the
company has garnered reputation for being bit slow to adopt new processes that contributed in
delays in completion of tasks.
CHAPTER 2
The effect of external and internal factors on HRM decision making in relation to organisational
development
Conduct research and explain the internal and external factors that affect the decisions
made by HRD in the business
When a number of elements help the human resources staff build the organization's overall
strength and raise the chance for the company to expand in the international market, the latter is
possible. There are several elements that have an impact on the industry's overall economic
4

growth. Following are some external and internal factors both of which have an impact on the
performance of the company:
 Factors outside of our control include: The market is experiencing rapid technological
change, which has a beneficial impact on business and provides advantages for the
organisation. These technologies improve productivity and benefit the business by
lowering overhead costs, which in turn lowers overall costs and has the potential to save
the organisation a significant sum of money. Additionally, doing so gives employees
more time, which fosters creativity and efficiency (Stahl and Et. Al., 2020).
 Governmental regulations: Any time a government entity enacts legislation that
benefits business owners and corporations. There are some factors that have an impact on
how human resources are planned for a specific operational task with the intention of
experiencing significant growth. All governmental regulations have an impact on HR
activities like hiring, training, and compensation, among many others.
 Labour pool accessibility: It is well known that HRM has the capacity to staff the stage
with the aid of staffing needs. The human resource decisions made by Volkswagen are
directly influenced by how many people are available on the labour market. By making
more of an attempt beyond the immediate area and by providing compensation as well,
the job or place will concentrate on recruiting.
Internal aspects:
 Organizational culture: how a company gathers its employees' shared values, attitudes,
and levels of trust. This essentially depicts the company's behaviour. The HR manager is
responsible for creating a supportive work environment (Anwar and Et. Al., 2020). For
the purpose of creating and establishing precise HR policies and improved planning,
studies have been done in relation to Volkswagen that evaluate the trends and culture of
the organisation. The HR manager at Volkswagen must be sure to select a strategy that
will influence current organizational trends.
 HR system: It has been determined that a company's ability to operate, develop, and
maintain stability is largely dependent on the calibre of its workforce. In order to
implement active management and the quality area while maintaining an efficient
efficient communication throughout the organisations, Volkswagen has worked on their
tactics. Additionally, it is training for the complete expansion of the firm.
5

 Marketing strategy: This is a plan that is made with the express intent of contacting the
target population and converting them into a potential consumer. In terms of
Volkswagen, it positively influences HRM decision-making as it results in the hiring of
the best qualified individuals with business ties.
Evaluate how the identified external and internal factors affecting HRM in turn affects
organizational development
According to analysis, there are both internal and external forces at play. For example,
Volkswagen uses more advanced technology to produce and market high-end vehicles to
consumers who have good income levels. Internal aspects that the company takes into account to
ensure greater operation of the firm in the target market include organisation behavior, HR
system, and business model.
CHAPTER 3
Applying HRM practices in a work-related context for improving sustainable organisational
performance
Determine strengths and weaknesses of HRM practices in practical business world for
improving organizational performance. In relation to your chosen company highlight
performance management and employee employer relationships with recommendations of
how the practices illustrated can improve sustainable organisational performance
The hiring and retaining of personnel, which together make up a key aspect in the
development of the firm and are used to fuel its expansion, have been linked in a crucial way
(Acquah, Agyabeng-Mensah and Afum, 2020). Following are examples of HRM practices in
relation to Volkswagen:
 Working class market in recruitment: This is a crucial step in a company's effort to
find competent individuals for the organisation. In the same way that the business is
emphasizing the hiring of qualified personnel who can do the assigned duties efficiently.
Additionally, this gives the staff a benefit in terms of rewards.
 Hired skilled person - it is the responsibility of human resources to employ skilled and
educated workers so that they can understand the tasks assigned to them and accomplish
all job in a suitable manner. This eliminates the requirement for new hire training and
allows for the proper completion of all tasks.
6

 Increasing competitive edge - Having talented and skilled staff will help the
organisation complete the task within the allotted time. By making wise employment
decisions, this also helps to improve the company's general functioning. The potential of
qualified workers is being used to the fullest extent possible so they can compete in the
market.
 Creating motivation is essential for the business to influence its workers by rewarding
them with remuneration and retention benefits that will keep them engaged and able to
influence others at work. The company must put a focus on staff retention by giving
bonuses so that they are familiar with the industry (Pattanayak, 2020).
 Improving workplace policies: This specific procedure comprises rules about employee
rights to welfare, which are intended to give workers a sense of security and well-being
within the company. As a result, the business must develop policies that benefit both the
employer and the labour, ensuring long-term workforce stability.
Since the business bases its incentives on quality, results, and even on advanced commands
for better rank and personal heritage. Quality is assessed using an efficient conceptual framework
for processing the assessments (Garg and et. al., 2021). The main goal of this is to raise
employee satisfaction levels and to increase labour productivity through such employment-
related actions. The organisation has created a framework and made help available so that
employees may manage their careers with their personal lives. Furthermore, they give additional
measures like housing assistance, comfort, a payment method, a welfare plan, promotion of
health, etc. They also guarantee a business payment schedule that aids a person in making long-
term plans. All of these initiatives benefit both businesses and employees. Employees feel
encouraged and rewarded, which reinforces the organization's sincerity and results in improved
performance. They primarily manufacture and start things off with vitality, which also aids in
social changes that lower the employment ratio. A lower staff turnover rate aids the company in
increasing overall profitability.
As part of the application of HRM you are to prepare a sample job advertisement for your
company making use of Person specifications and Job Description
Even as department is charged with several duties related to human resource
management, including hiring and mixing, inside the corporation (Emeagwal and Ogbonmwan,
Zaim and Et. Al., 2018). This procedure begins by determining if hiring is necessary for the
7

position in question. The specific job description is then created. The HR manager can hire and
select the HRM function based on such a reason before continuing with the advertisement
procedure and doing the interview. The recruitment-related processes for the designated position
of marketing manager at Volkswagen are illustrated in the sections that follow.
Job Description
Job Details
Post: Marketing Manager
Company: Volkswagen
Job Aim
Marketing supervisor plays a few part and the obligations on with this guaranteeing that
practically everything has been executed in the correct course. The up-and-comer should have
the great persuading abilities.
Roles & Responsibilities
 Execution of compelling procedure and polices in thought to the showcasing.
 Determine the successive objectives and focuses to make the offer of the particular item.
 Centres around the execution and the efficiency in the deal.
Job Specification
Post: Marketing Manager
Department: Marketing Department
Key: This shows required evidence:
Attributes Essential Desirable
Qualification & Experience  Done the post-
graduation from the
perceived college and
furthermore having the
better information on
promoting field.
 Needs to have the 2
years for experience in
the promoting office.
 Successful
correspondence
capacity.
8

 Likewise chipped away
at some undertaking
with the oversight of
the master for quite a
while.
 Successful relational
abilities
 Move on from top
foundation and with
that likewise finished
the recognition in
advertising.
Skills or knowledge  Interactive abilities
 Promoting abilities
 Outlining of new
promoting procedure
for the business
improvement.
Selection process:
 Hiring command: This is the procedure in which a candidate is questioned by
management regarding their educational and professional qualifications during an
interview (Chaudhary, 2019). They were all chosen based on how well they did in the
interview.
 Selection Criteria: This is the level after hiring where the candidate must pass the
practical round and be chosen based on their performance in the interview. It takes into
account a number of factors, like trust, knowledge, and so forth.
 Selection of the qualified candidates: This stage involves the HR manager's
involvement and analysis of the numerous petition standards in accordance with the
choice of the competent individual.
 Interview process - This is the procedure when candidates are asked a limited number of
questions and go through rounds of testing to become a part of a company. There are
various levels to this process, including a technical round and rounds for answering
9

questions, among others.
 Job Offer - Following the completion of these tests, the company selects the qualified
candidates for employment and extends to them an appointment letter outlining all of the
conditions of employment, including pay, title, job responsibilities, leave policies, and so
forth.
The report will conclude with a visual roadmap that shows the steps that need to be taken
to successfully strengthen the organisation’s talent management strategy.
As vital activities that are assuring the growth of the business in the market, HRM
practices have some benefits and drawbacks (Townley, 2019). It is advised to the company to
use the appropriate methods for hiring and selection in order to hire valuable staff who can carry
out the job role in a proper manner. Hiring and selection is a major practice, but the HR manager
cannot be certain that they will choose the right candidate. In order to have the correct
functioning within the organisation through which they can guarantee the effective functioning
of the personnel, they must use the effective and advanced techniques of training.
CONCLUSION
From, the aforementioned report. It can be inferred that human resource management is a
crucial procedure for the organisation because its activities are correlated with those of the
workers who occupy the workplace. Employees are the primary sources of the business, doping
all acts within their authority. Managing the administration can determine whether a business
succeeds or fails. The task of the formulating plans and the company's subsequent plan is also
managed by the HRM. The manager of the organisation is influencing and inspiring the staff to
ensure that all associated work is carried out properly. They are essentially utilizing both internal
and external strategies to fill the open position within the business organisation.
10

REFERENCES
Books and Journals
Acquah, I. S. K., Agyabeng-Mensah, Y. and Afum, E., 2020. Examining the link among green
human resource management practices, green supply chain management practices and
performance. Benchmarking: An International Journal.
Anwar, N. and Et. Al., 2020. Green Human Resource Management for organisational citizenship
behaviour towards the environment and environmental performance on a university
campus. Journal of Cleaner Production, 256, p.120401.
Chaudhary, R., 2019. Green human resource management and job pursuit intention: Examining
the underlying processes. Corporate Social Responsibility and Environmental
Management, 26(4), pp.929-937.
Chaudhary, R., 2020. Green human resource management and employee green behavior: an
empirical analysis. Corporate Social Responsibility and Environmental
Management, 27(2), pp.630-641.
Emeagwal, L. and Ogbonmwan, K.O., 2018. Mapping the perceived role of strategic human
resource management practices in sustainable competitive advantage. Academy of
Strategic Management Journal, 17(2), pp.1-19.
Garg, S. and Et. Al., 2021. A review of machine learning applications in human resource
management. International Journal of Productivity and Performance Management.
Garg, S.,and et,. al., 2021. A review of machine learning applications in human resource
management. International Journal of Productivity and Performance Management.
Pattanayak, B., 2020. Human resource management. PHI Learning Pvt. Ltd.
Stahl, G. K. and Et. Al., 2020. Enhancing the role of human resource management in corporate
sustainability and social responsibility: A multi-stakeholder, multidimensional approach
to HRM. Human Resource Management Review, 30(3), p.100708.
Stewart, G. L. and Brown, K. G., 2019. Human resource management. John Wiley & Sons.
Stone, R. J., Cox, A. and Gavin, M., 2020. Human resource management. John Wiley & Sons.
Townley, B., 2019. Foucault, power/knowledge, and its relevance for human resource
management. In Postmodern Management Theory (pp. 215-242). Routledge.
Zaim, H. and Et. Al., 2018. The effects of knowledge management processes on human resource
management: Mediating role of knowledge utilization. Journal of Science and
Technology Policy Management.
Online:
Number of Volkswagen AG employees worldwide from 2008 to 2021(in 1,000s). 2022. [Online].
Available through: <https://www.statista.com/statistics/272052/worldwide-number-of-
volkswagen-group-employees/>
11