Strategic HRM Assignment Examining HR System Of Volkswagen

Question

Task:
As a Human Resource Management Consultant, you have been invited by a company of your choice to advise them on the possibility of restructuring their HR practices in order to compete more effectively in the global market place. Linking relevant theories of SHRM, and the role of SHRM in creating a high-performance organization, develop a strategic HRM assignment critically examine the HR system within the selected company.

1. Identify strategic issues that need to be address by the board of directors
2. Critical reflection of different SHRM development and practices from various business sectors and propose training strategy to create high performance organization for the chosen firm.
3. Provide a strategic HR implementation plan to create a high performance and competitive organization.
4. The proposed implementation plan should cover SHRM, HR planning, recruitment, Selection, performance appraisal strategies.

Answer

Executive Summary
Strategic human resource management theories used in the present context of strategic HRM assignment assist the manner in which management behaviour and structure influences employee behaviour positively and negatively. Further, strategic human resource management practices does act as strong pillars for enhancing productivity and efficiency of employees. Present report provides discussion relating to HRM issues to be addressed by board of director of Volkswagen. SHRM theories do provide support to management for development of HRM practices and policies for enhancement in efficiency of employees. For instance contingency SHRM theory specifies that there does exist specific situational factors which affect relationship between dependent and independent variables in study of organizational behaviour. Thus, through application of contingency theory management can make prominent decision after assessing positive and negative perspective of specific situation. The main issues faced by company are communication gap and lack of leader for motivating employees. The company is recommended to restructure organization and incorporate SHRM strategies such as switching to decentralized decision making process and encouraging employees wherein all levels of management can be engaged and involved in decisions of organizations so that they feel themselves as important part of organization

INTRODUCTION
Strategic human resource management practices do play is critical role in restructuring organization for development of organizational infrastructure, improvement in business process, incorporation of innovativeness and other organizational parameters (Das and Kodwani, 2018). As, HRM practices are believed as key of attaining required changes in performance of employees and increasing productivity of organization. The present report on strategic HRM assignment emphasizes on assessing the strategic issues assessed by board of directors of Volkswagen Company. A detail discussion has been made relating to SHRM development and practices applied by various sectors in order to create high performance organization. Lastly, strategic implementation plan has been provided for creating Volkswagen Company as high performance and competitive organization

Discussion
SHRM Development Practices and relevant theories
Strategic human resource management plan refers to plan for organizations applied for attainment of goals and objectives of company (Malik, 2018.). It assists in providing benefits to employees and organization through rewarding, developing, retaining towards work. Thus, it would be appropriate to assist that it supports in attainment of goals of organization. The significant strategic human resource management theories have been discussed below:

Behavior Theory: The behavioural perspective of HRM argues that different strategies are required for different role behaviour of employees for successful implementation of strategies. It is assumed that management policies and practices impact operations as well as manner in which operations are done in organization (Malik, 2018.). Behaviour of employee is one the major determinant of organizational effectives in accordance with primary stakeholders. An effective HRM strategy guides employee behaviour toward desired behaviour through proving opportunities to engage with employees different behaviours and encourage employees to behave in required manner. In case one employee respond active interpretation of specified practices and policies than other employees can be inspired to adequately respond to managerial policies and practices and direct employee behaviour in a manner which enhances likelihood of long-term organizational effectiveness (Das and Kodwani, 2018). Behavioural perspective does provide logic which can be applied for prediction and interpretation of different relationship between variants of organization and environment at one side and its relationship with management practices on other side. Through adequate predictions it is possible for HRM system to support behaviour for innovation and emphasis on development of innovative services and products (Malik, 2018).

Contingency Theory: It provides significance to leadership behaviour that directly affects the relation of employee and employer. The core principal of theory specifies that there is no exact science to organizational behaviour (Cote, 2019). In accordance with this theory there does exist specific situational factors which affect relationship between dependent and independent variables in study of organizational behaviour. An organization require to develop perfect organizational environment through assessing different variables which affect employees through using trial and error method to assess which variable increase efficiency of employees and which does not make any change in productivity. For instance motivation and leadership; two independent variables and productivity, turnover, absenteeism are dependent variables which does affect performance of employees. Implementation of specified theory does provide assistance in analysing different situation and applying conclusion for future management of similar scenarios (Das and Kodwani, 2018). Through implementation of above stated theory it is possible to assess favourableness and negative perspectives of a situation before making final decision. Thus, leaders as well as management are able to judge scenario or issues in detail with which it is easy to ascertain adequate solution.

Strategic issues required to be addressed by board of directors of Volkswagen Company
Availability of excessive pressure and Intimidation which results in unintended outcomes
Generally employer believes that employee will obey as they have no other alternative. By doing wrong things for wrong reasons, good folks wind up; it is frequently complicated and hard for whistleblowers to pay attention or listening attentively (Dundon and Wilkinson, 2020). These similar practices are witnessed in HR department of Volkswagen; thus efforts of employee usually result in wrong end and does not validate the way or means in required manner and lead towards wrong goal.

In Volkswagen, management violently set practical and attainable goals and create an environment in which every employee is free to ask any problem or issue they have been facing. They use cross-functional teams to solve problems, rather than covering them due to which complexities increase within employees (Dundon and Wilkinson, 2020).

Absence of engagement by employer which results in Isolation and Insular Thinking
Leaders have to move out from their office and find out about who is working who is not, connect or get comfortable with employees and customers, ask questions and take input on mandatory basis as per insular demand and control approach (Siano, et al, 2017). As, it is not possible to achieve successful outcome by remaining in our own cocoon. Thus lack of engagement of employers in Volkswagen leads to enhancement in employment issues.

Absence of transparency which result in uncertainty and problems
Management should share as much information as they can, except some highly private information, so that they can give more power to their teams to create excellent decisions all the time .As they are adult so leaders should treat them that way. From the experience of Volkswagen scandal, management became more engage and occupied with employees and customers , take a practical and positive view of leadership style, keep minimum unprompted errors and enjoy the ride to the fullest (Clemente and Gabbioneta, 2017). Thus, scope does exist in Volkswagen HR department require to be open with its employees so that they could assess the actual situation appropriately and act accordingly.

Ignorance of code of ethics
Rules and codes alone will not keep companies or individuals safe. As codes and rules act as ‘HARDWARE’ but the quality of the ‘SOFTWARE’ is crucial. The rules can be applied to make healthy climate, where every person can challenge each other and even system without risk or negotiation (Clemente and Gabbioneta, 2017).

HR cannot pursue orders from without any grounds or principals it has to make strategies or decisions that might assist employees in making adequate decision regarding right and wrong. In case of Volkswagen as employers does not comply with code of ethics, similar impression is drawn on employees and they too do not comply with same. The management requires developing a strong principled or decent quotient with the leaders i.e. very crucial, that facilitate or allow them to identify what is right or wrong.

Availability of harder and tightly-knit ownership
It is well-known that VW cheated U.S. emissions test relating to diesel engine to became more translucent and disperse power, thus they require re-establishing faith of investor. But reformers are conflicting a long tradition of management hierarchies and some investors thought their work has been made inflexible or rigid by tightly-knit ownership which is dominated by company’s founding families along with home state of Lower Saxony (Dundon and Wilkinson, 2020).

It is stated that ‘Good ideas are worth nothing if they fail because of structural blockades’ the statement was provided by VW human resources chief ’BLESSING’ as he himself assessed that traditional approaches are given more consideration which result in dominance for employees (Silvia, 2018). Thus, in order to deal with above issues, it is necessary to reduce no. of committees and develop streamline models and enforce managers to enhance their leadership skills as ‘Not only the values must be right but it is necessary for structure to be appropriate’. It has been assessed that VW is constrained with different interests of stakeholders, which include powerful role of trade unions and a lack of new leaders (Gaim, Clegg and Cunha, 2019). The existing structure wanted to put end to manager shifting accountability to other in order to ensure that responsibility is provided to responsible and qualified people which is not always possible in top-down management style.

SHRM development practices from various business sectors and proposed training strategy for creating high performance
SHRM practices can be referred as broad array of practices which matter in perspective of employee performance not individual tests, recruiting etc. It is necessary to remember that HR strategies are developed for specific set of jobs, thus different training is required in accordance with business operations. For instance if an organization’s main emphasis is on customer service than management will require to develop customer service skills and behaviours into each customer-oriented jobs. The SHRM developments which can be accepted and implemented by Volkswagen for improving performance of employees have been discussed below:

Focusing on significant variants of HRM i.e. innovation business value, global integration and on- demand infrastructure
HR strategy refers to a system of human resource practices for specific job or collection of jobs whose main objective is to motivate employees to perform with efficiency in order to accomplish organization ultimate goals. For instance, HR strategy of IBM emphasizes on four areas:

• Innovation,
• Business value (Malik 2018),
• Global integration- on-demand infrastructure.

The company is able to attain its goal only because employees comply with strategy and make it work (Mansouri, 2016). IBM’s HR strategy ascertains organization characteristics which encourage and energize those employees. The management encourages its employees through incorporating practices such as: providing performance-based opportunities, Leadership, recruitment of diverse and talented people and providing flexibility. Thus, the HR department emphasis on explain goal and lead towards transformation in order to enhance efficiency of employees.

Commitment vs control strategies:
The two strategies which are generally applied by Human resource department for enhancing productivity are “commitment” and “control”. The commitment HR strategy comprises variants such as: explanation of task in detail manner, adequate levels of employee participation, inclusion of highly skilled workers and providing extensive training with adequate rewards and benefits (Su, Wright and Ulrich, 2018). On the contrary, the control HR strategy would represent just opposite i.e. narrowly defined jobs, no participation of employees, intense supervision or control, restricted training and providing low wages and benefits (Cote, 2019.).

In practical world, commitment strategy usually is complied by organizations which apply differentiation business strategy and leads towards best result. However, control strategy might work adequate for organization with a cost business strategy (Andrianova and Antonacopoulou, 2020). The practical application of discussed strategies can be accessed through assessing HR practices of Costco and Walmart.

The fact cannot be denied that Wal-Mart has attained huge success and is one of know successful organization operating at global level. However in past few years, company has faced enhanced competition and through scrutiny of its HR strategies, it has been assessed that management is emphasizing on low workforce costs i.e. aiming on keeping prices low (Andrianova and Antonacopoulou, 2020). Sam’s Club, the bulk division of Wal-Mart, having tough competition Costco in recent years. Through, assessing HR strategies of both the companies it has been analysed that business results of these two companies represents, Costco make significant investment in sales associates through making payment and health care benefits and to work through coordinating with unions rather than actively fighting against unions, as Walmart does (Farndale and Paauwe, 2018). Even though Costco pays higher wages, it does have lower labour costs and higher profitability per employee in comparison to Wal-Mart. Thus, it is necessary to provide adequate rewards and payments to enhance productivity of employees and profitability of company (Cote, 2019).

Productivity appraisal strategy
Apart from the above aspects, another strategy that could be applied by human resource department for increment in the productivity is performance appraisal strategy (Su, Wright and Ulrich, 2018). In this aspect, such strategy should be built in order to achieve the educational objective in the organization. Creation of the performance appraisal strategy consists of setting expectation for the performance by employees and planning manner in which those expectations could be satisfied (Delery, and Roumpi, 2017). It can be said that, performance appraisal is one of the best mechanism for identifying the productivity of the workers and manner in which the same could be improvised. Another strategy that could be applied by the human resource department for enhancement in productivity is connected with recruitment and selection strategy. Such strategy ensures that company possess the essential skills, knowledge, and qualities to satisfy the present and future strategic as well as operational requirement (Qadir and John, 2019). It is essential that, proper recruitment and selection strategy should be followed by company while hiring new employees. The practical implication of performance appraisal strategy and recruitment and selection strategy could be analyzed by HR practices of some global companies (Boon, et.al 2018).

Apple Company has implemented performance management system in the organization in order to enhancement in the productivity of the employees. The goal of company is made known to the employees immediately after ascertainment of organizational goals. Performance of the individuals is measured on the basis of these goals and they should be informed regarding their contribution of the achievement in objective of the company (Zehir et.al 2016). The appraisal system in the Apple Company supports to HR to ascertain about any shortage of specific skills and thus undertake recruitment to replace such efficiency. Rewards are provided for the best performance (Malik, 2018). There are two appraisal tools used by the Apple Company for analyzing the performance of employees such as peer appraisal method and 360 degree feedback. In case of peer appraisal, teammates offer distinct perspective on the performance of employees. Although, management of the company are best for analyzing result of the employees but teammates offers opinion regarding interpersonal skills and insight about the employees. Under the 360 degree method, employees receive feedback from its subordinates, customers, management, and supervisors. This assists towards ascertainment of broader view of ten employee’s performance on the basis of relationship between the main stakeholders (Stahl et.al 2020).

Recruitment and selection strategies
There is several recruitment and selection strategies that could be implemented by the company by which it could hired the suitable employee for the organization. But for recruitment of proficient employees it requires combination of creativity and diligence (Karman, 2020). Technology has provide great assistance for publishing advertisement of job to broad audience but through connecting with employees adequately one could assess real skill and proficiency of candidate. Implementation of referral program is one of the strategies which encourage employees to refer the best talent known to them. Through providing incentives for referral along with bonus it is possible to encourage more candidates to be part of program (Cote, 2019). In order to seek efficient candidates industry related meet up can be attended through which organization get adequate opportunity to meet motivated industry professional who are searching opportunity to advance skill in their field.

For instance, Google Company does not consider the work experience as a significant criterion for selection of employee. This company is known for the implementation of several distinct approaches, by which skilled and best employees could be attracted (Das and Kodwani, 2018). There are distinct procedures applied for the selection of person at Google. Usually, selection criteria by the company consist of background checks, on-the-job-test, interviews, and some other aspect.

Proposed implementation plan for Volkswagen
By considering the given issues of Volkswagen, the company is required to adopt the following plan and strategies for ensuring high competitiveness and performance:

SHRM strategies
Due to the fact that large automobile companies like Volkswagen face the issue of collaboration, communication and high turnover, it is recommended to the company to firstly consider proper HR planning followed by top notch recruitment and selection. For this aspect, Volkswagen is needed to incorporate competitive salaries, promotional opportunities, constant training and development, transparent communication, focused employee welfare and employee autonomy to the great extent.

In regards with the present situation of Covid 19, Volkswagen needs to ensure employee security by guarantying employment to workers and providing job security to them; this will enhance trust and can help in building long term relationships. This has to be done by the upper management and senior management, and make all employees informed about the safety and precaution measures needed to be considered to make workplace safe and secured. In addition to this, in this current scenario providing adequate training is very important to minimize the governance enforcement action risks and employee litigation (Zehir and et.al. 2016). The training can be provided through introducing workplace satisfy protocols, integrating employer workplace safety policies and practices and so on.

In the Volkswagen case, needs to switch to decentralized decision making process and motivating employees wherein all levels of management can be engaged and involved in decisions of organizations and are provided with authority so that they can contribute their efforts, ideas and thoughts effectively. This can help in reducing delays, improvising product development flow, facilitate quicker feedbacks and boost more innovative solutions (Barrena-Martinez, López-Fernández and Romero-Fernandez, 2018).

Since the company is facing the issue of lack of engagement and insufficient compliance towards code of ethics for this aspect there is a high need to integrate training by commitment so that employees are motivated, counselled and taught to bear responsibilities for outcomes, initiate proper changes in the work system to improvise productivity and resolve workplace problems.

Action plan
These strategies can needed to be developed by the senior management and are required to be implemented by the HR departments, to ensure proper flow of communication, motivation, training and development across all levels. The training needs to be timely provided by the HR managers and supervisors so that regular review of employee performance and tasks can In this way, creation of a collaborative and supportive work culture is the top priority, as well as the company is also needed to adopt the strategy of high performance work system so that work is organized in a manner where employees are cherished to participate in problem solving and decision making (Armstrong, 2016). Through this strategy employees can make their own decisions to attain the specified goal. Given that, high pressure on employee can create dangerous outcomes and mislead conduct for this aspect, Volkswagen is needed to integrate work life balance strategies to employees such as providing flexible and remote work conditions, encouraging HR managers to concentrate on productivity instead of hours, encouraging breaks, considering timely review of workloads and volunteering.

HR planning strategies
Human resource planning is specifically engaged with addressing the particular needs in the organization on the basis of the strategic direction of the company. In this aspect, the first step Volkswagen needs to follow in its HR planning is to determine the present and future needs of human resources, herein current employees, accessible employees in the market and future requirements are required to be evaluated and developed. To this note, the company needs to consider the internal analysis wherein information regarding the workforce and the skills they currently retain, and all of such information needs to be complied to make a human resource inventory (Abdullah, 2017). After then, talent development and management process comes into play, in the recruitment stage; the company needs to search for candidates that match the skills and expertise according to the need. This can be conducted by posting on job websites, finding social networks such as LinkedIn for competent potential employees and motivating existing employees to suggest proficient employees are perfectly fit into the job position.

Action plan
Herein the top level executives are liable for the human resource planning as it is one of the significant factors that impact the overall organizational success, proper plans are needed to be prepared by the HR divisions with proper consultation and guidance from corporate heads and senior authorities. It is important that top level executives consider the optimum forecast of demand and supply of workforce to know the existing and future HR needs and avoid any manpower surplus or shortage (Kushwaha, Yadav and Prasad, 2018) For this aspect, they are mainly responsible to analyze the current labour supply, predict labour demand, offset proposed labour demand with supply and promote organizational goals.

Recruitment strategies and Selection strategies
It is very important that proper recruitment practices are considered so that new hires can be evaluated on the basis of critical job skills as well as attributes. By considering this aspect, Volkswagen needs to pay close attention towards bring best and competent people that match the requirement of core job tasks and compliment organizational culture. It has been evidenced that auto industry face significant challenges in terms of hiring employees and these comprise of miscommunication, workflow failure, and turnover tumult and so on (Brown, 2017). In relation with these facts, Volkswagen is needed to forecast and predict the demand for employees and workforce and analyze the main requirements. It is very important that the skills, qualifications, experiences and expertise are specified appropriately so that any of miscommunication can be avoided, this is to be followed by providing proper job description, individual specifications and competencies (Coole and et.al. 2018). In the present era, considering online channels and recruitment channels and websites such as Monster, Indeed etc are viewed as one of the best sources advertise the vacancies properly. This is considered as a highly creative task for this aspect, Volkswagen is required to outsource the same to recruitment websites, agencies, newspapers, e-advertising etc. Adding to this, recruitment is the step which requires utmost contribution and investment by the cited company for this they can consider the use of methods of administrative seek firms, internet employing and open hire groups. The company is needed to consider use of artificial intelligence for recruiting, which is developed to streamline as well as automate workflow of recruiting, particularly repetitive and high volume tasks (King-Daniel, 2020). This technology in recruitment can considerably improvise candidate engagement via improvised communication and can be beneficial in terms of disclosures of vacancies, quicker and effective recruitment and selection and hiring for profile quality (Hmoud and Laszlo, 2019). In the contemporary business world, social recruiting has become the most popular recruitment channel which allows business to retain a further reach and allow them to search candidates quicker at cost effective manner (Mi?ík and Mi?udová, 2018). This strategy can be used by positing job descriptions and requirements on original business websites and on various social media channels such as Facebook, Linkedin. Quality and attractive content needs to be taken into account by company to attract more and more candidates, using hashtags and videos can also help in engaging better with candidates (Golovko and Schumann, 2019).. Further strategies comprise of implementing referral programs, forming compelling and differentiated job descriptions and making use of sponsored jobs.

One of the major tasks is to do selective hiring, and these can be done by the cited company by following the best selection instruments such as personality assessments, reference checks, interviews, work tests, IQ tests, peer assessments and so on. The main role is played by HR manager here, the HR managers of Volkswagen needs to set up interviews and consider the selection of right person for the job, following to this proper compensation plans, bonus, salaslry and related benefits are needed to be developed and designed to appeal and retain the best employees (Sufriadi, 2017). After the recruitment process, the main role is played by training and development programs so that the new employees get aware of the workplace culture, individual roles and responsibilities, this would allow employees to obtain new skills, reduce change resistance, polish their existing skills, improvise productivity, and perform better. Induction of employees in this stage have significant importance, for this aspect the company needs to review and analyze the new job concerns, and make efforts by increasing organizational knowledge, its procedures and policies (Akey and et.al. 2017). In addition to this, once the recruitment and selection process is done, the HR managers must head over induction strategy to make sure that the newly hired individuals acclimatize to their new responsibility and environment so that any near conflicts or resistance can be avoided.

Action plan
The recruitment and selection strategies are implemented by top management and are directed and reviewed by HR department. The above strategies can be applied by Volkswagen in order to resolve the existing issues of lack of expertise and insufficient talent pool who can contribute in bring new innovation. By implementation of these tactics and strategies a talented pool of workforce can be attracted, appealed and retained which can thereof contribute towards augmented productivity, generation of revenue, gaining a competitive edge and combating employee turnover,

Performance appraisal strategies
These strategies play a very important role in gauging the value of the performance of employee and determining how the same can be improvised (Bayo-Moriones, Galdon-Sanchez and Martinez-de-Morentin, 2020). By considering this aspect, in automobile industry workers are required to work for very long time and contribute a lot of efforts and time, however the limited appraisals, benefits and perks remains a big issue for them.

In view of the fact, Volkswagen is needed to consider the strategy of result based compensation by rewarding employees on the basis of the how they have added value and proficiency into the business. This will therefore help in building team spirit as well as accountability. Along with this, the strategy of 360 degree feedback is also needed to be considered by the company needs to collect feedbacks from the subordinate, HR and supervisor of the employee this helps in providing the clear understanding on the competence and skills of the individual (Kanaslan and Iyem, 2016). This will increase the awareness of individual of how they perform and influence others plus act as driver to initiate counseling, career development activities and coaching. Furthermore, it would beneficial in terms of encouraging employees to make investment in self-development and embracing change management (Sharma and Sharma, 2017). The company is also needed to employ and integrate top performance management software such as Workday HCM, PerformYard, Reflective and so on these have an accessible dashboard interface which enable for quicker and informed reporting which thereof stimulate employee development. The strategies of self evaluation, behavioural checklist, rating scale, management by objectives needs to be used by company to better performance management these will also help in creating dialogue, fostering communication, empowering career opportunities and gaining a bigger and better picture on the performance of employee (Islami, Mulolli and Mustafa, 2018).

Action plan
These strategies are needed to be employed, implemented and monitored by HR managers and supervisors, who would be responsible to take timely feedbacks of employees so that areas of improvement can be observed and immediate actions can be taken. Communication and feedbacks are the two important elements in this stage and HR managers to take care of the same strictly to know the concerns of employees, review their performance, understand their needs and reward, recognize and appraise them accordingly. Apart from this, the responsible leaders and managers must set expectations for work performance as well as planning, and monitor the employee performance with regular meeting as well as check in. This can help in solving the queries and issues of employees immediately, plus company would be capable to know how well the operations are conducted by workforce, is there any requirement to improve or is there any resistance. In addition to this, it is crucial that the responsible managers carry out timely rating performance via summaries and reviews and constantly develop capacity for optimal performance.

Conclusion
On the basis of above analysis, it can concluded that human resource strategic implementation plan is highly important for Volkswagen it is because it has currently gone through a big scandal and is facing issues in terms of productivity and performance. It has been assessed that main issues faced by company comprise non compliance with ethics and code, communication gap due to which HR pursue orders without any grounds or principals. Thus, they are incapable of developing strategies or concluding decisions that might assist employees in making adequate decision regarding right and wrong. In case of Volkswagen as employers does not comply with code of ethics, similar impression is drawn on employees and they too do not comply with same. Therefore, it is important for the company to consider top HR plan in order to respond to market environment and regain its reputation and image and needs to make higher investments in HR practices to reduce turnover rates and increase greater productivity. It could be assessed from above analysis that communication and feedbacks are the two important elements for performance appraisal of employees. Thus, HR managers require to take care of the same strictly to know the concerns of employees, review their performance, understand their needs and reward, recognize and appraise them accordingly. In a nutshell, Volkswagen required to implement the above mentioned strategies to bridge the gap between the workforce performance and the organizational strategic objectives, through an efficient and well trained HR management team, VW can be able to deliver heightened productivity, better quality and services and obtain increased customer satisfaction rate.

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