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ASSIGNMENT

OF
HUMAN RESOURCE
MANAGEMENT

ASSIGNMENT NO.III

Comparative Analysis of the Human Resource Policies of BMW and AUDI

Submitted to:- Submitted by:-

Lect .Amanpreetkaur
sahilkashyap
Roll no:-B-25
Sec :-T1001

BMW introduction
The BMW Group is one of the world’s leading car and motorcycle manufacturers with more than
100,000 employees in over 100 countries.

With our brands BMW, MINI and Rolls Royce we operate very successfully in the premium segment
of the automobile and motorcycle industry.

In order to consistently maintain our quality standards, we seek employees who possess team spirit
and personal initiative, as well as an uncompromising desire to constantly further their knowledge.
Because we are convinced that those who cease to improve have already ceased to be be good.

High-efficiency culture
It is not only our technical know-how that makes us stand out considerably from other companies. In
keeping with the quality standards of our products, our corporate culture is a consistent high-
efficiency culture.

We aim to constantly incite each other to become even better, to offer even better products. This is
only possible through a pronounced team spirit. Critical reflection and self-critical advancement are
only possible within a well-functioning team.

Because we approach each other with respect and esteem, our employees have a strong team spirit –
the decisive prerequisite for success within a team. Satisfied and motivated employees are an
invaluable competitive advantage to our company.

Basic principles of HR (BMW)

During the next decade we aim to secure our position as the world’s leading manufacturer of
premium automobiles. For this reason all of our strategies – including our corporate culture –
are conceived on a long-term basis and are constantly target-oriented.

We established this prerequisite when we launched our Strategy Number ONE. The Vision:
to become the world’s leading provider of premium products and premium services for
individual mobility. To this end, the BMW Group concentrates on profitability and sustained
value creation. The company’s four strategic pillars also include growth, shaping the future
and access to technologies and customers.

The following principles of the BMW Group form the basis of this long-term and target-
oriented action.
Customer orientation

Our customers decide whether or not our company is successful. Our customers are at the
centre of all of our actions and the results of our actions must be judged from a perspective of
their benefit to the customer.

Peak performance

We aim to be the best. Each of us has to rise to this challenge, meaning that each employee
must be prepared to achieve a high degree of efficiency. We aspire to belong to an elite, but
without being arrogant, because it is the company and its products that count the most – and
nothing else.

Responsibility

Each BMW Group employee bears personal responsibility for the success of the company.
This also applies within a team, where each individual must be aware of his or her
responsibility. In this respect we are fully aware that we all work together in achieving
corporate goals. For this reason we also work together in the interests of the company.

Effectiveness

Only sustainable and effective results are of benefit to the company. When assessing
management, it is only the effect of performance on results that counts.

Adaptability

In order to achieve continuous success we must adapt quickly and flexibly to new demands.
Therefore, we regard change as a chance and the ability to adapt as the prerequisite for
making use of this chance.

Dissent

In the search for the best solution everyone has the duty to bring to light any disagreement.
The solutions found are then resolutely implemented by all involved.

Respect, trust, fairness

We treat one another with respect. Management is based on mutual trust, trust is based on
calculability and fairness.

Employees

Business enterprises are made by people. Employees are our strongest factor of success.
Consequently, personnel decisions belong to the most crucial decisions.
Leading by example

Every executive has an exemplary function.

Sustainability

We regard sustainability as a lasting and positive contribution towards the economic success
of the company. This is the basis of our ecological and social responsibility.

Society

We consider awareness of social responsibility an inseparable part of our corporate self-


conception.

Independence

We secure the BMW Group’s entrepreneurial independence through sustainable and


profitable growth.

BMW RECURITMENT POLICY


BMW (UK) Ltd. Applies selection processes for both internal and external applicants which
ensure the appointment of the highest quality staff.

Special selection events are designed to give applicants every opportunity to demonstrate
their skills and abilities in a variety of relevant activities, to learn as much as they can about
the organisation and to take responsibility for the role they are applying for.

Generally, vacancies will be advertised internally and wherever possible a current member of
staff will be recruited into a position. Only if an internal appointment is not possible will
BMW consider external recruitment. BMW (UK) Ltd. actively encourages its employees in
the development of their careers.

BMW (UK) Ltd. operates an equal opportunity policy.

Staff training schemes


BMW (UK) Ltd. offers all employees the practical support, advice and training opportunities
to encourage personal development, aligned to the achievement of corporate objectives.

The BMW Group Academy UK helps employees to select and undergo the most appropriate
training programme for their needs. Requirement is assessed annually during the appraisal
process.

Courses available to staff include:


 Management
 Sales
 Aftersales
 Technical
 Dealer Service

Appraisal process

Managers are expected to interact regularly with their team members and this process is
formalised through a performance management system called 'Portfolio'. Managers and
employees review performance together annually covering the following areas:

 Review of performance against agreed objectives


 Establishing objectives for the forthcoming 12 months
 Identification of individual training and development needs
 Planning actions to build on strengths address weaknesses and plan
career development.

Performance and reward


We can only be successful if our employees apply all their productivity and knowledge to making
corporate success happen. In turn, the company rewards employees’ performance with fair,
transparent, competitive and attractive remuneration. The design of our remuneration system is based
on fairly rewarding both an individual’s performance and the performance of the entire team

Cooperation and appreciation


In the same manner in which the BMW Group expects its staff to show full commitment to value
creation, the company shows staff great appreciation. This aspect is most visible in the vast range of
possibilities for staff to become actively involved in shaping the company – via co-determination and
the improvement management system. However, appreciation is also obvious in the fruitful
cooperation of the two parties, in the new, behaviour-driven leadership style and the regular staff
surveys, a systematic way for us to obtain our employees’ feedback.

Shaping change flexibly


The business of individual mobility is changing. To emerge from this period of change even stronger
than before, companies and their employees have to be one thing above all others: adaptable

Guarantee productivity, encourage top performance

Success, as automotive pioneer Henry Ford once said, “is to have exactly the skills demanded
at the moment.” That basically holds true to this day. However, Ford’s success formula has to
be expanded by several key questions: What exactly are these skills? Which competencies are
not only in demand today but will continue to be in demand in the near or far future? And
how does one guarantee that these skills are further developed and applied at the right place
and time? In other words: How can a company maintain and expand its staff’s productivity?

These are the questions that drive our human resources strategy. Answering these questions
will help the BMW Group find the right employees, retain them and offer them the perfect
environment to deliver superior performance. With regard to the employees’ competencies,
three core fields of action have been defined:

-  Identify the skills needed and develop the corresponding human resources planning
activities

-  Develop existing competencies further

-  Recruit and develop new competencies

The right people in the right place

Just as customer requirements, market demands, technologies and corporate strategies


change, so does the need for certain competencies in the company. One example: The
development of electric mobility solutions and hybrid drives has stepped up the demand for
engineers and technicians with experience and expertise in these fields.

In a first step, our personnel planning determine the future demand for specific competencies in line
with certain strategic focus areas. In a second step, existing staff is scrutinised with regard to
employees who could provide these competencies thanks to acquired skills or completed training
courses. The goals are, firstly, to provide employees with a long-term employment perspective and,
secondly, to cover the company’s need for certain competencies in the most time and cost-efficient
manner

HR PRACTICES OF AUDI
Training
Training refers to activities intended to develop and improve an employee's skills and to add
to his or her knowledge of the job. The main purpose is to help the employee perform his or
her job to the satisfaction of the employer.

Training Needs Analysis


this is the determination of the types and regularity of training needed by each employee in an
organization and the skills needs of the organization.This is related to skills and knowledge
needs.

Recruitment
Recruitment refers to the activities carried out by the HR department to identify and employ
the right person for the right job.

Re deploymentThe placement of an employee to a certain job or location.


ReliabilityThe extent of consistency and dependability.

This can refer to people, team, tool, process, system or method, among others.

Retention
With reference to employees, keeping them in service through proper planning and offering
the right set of incentives.

R0I of Human ResourcesA measure on the return from employees taking into consideration
all their skills, capabilities knowledge, and qualification.

Here, people are treated as assets upon which organizations have invested.

Wage
Wage is pay for the actual time that an employee had worked.

Optional Retirement
the age at which employees can choose to retire and still enjoy retirement benefits.The age
differs from country to country.

In some countries, the terms and conditions for male and female employees may differ.

Work
Work is a group of tasks or assignments that an employee must perform in return for
payment.

AbsenteeismFailure of an employee to report for duty. He or she may face disciplinary


action for not being present at the workplace at scheduled times.

Ageing Population
The number of older employees are more than younger ones.

Work-family ConflictThe competing demands on employees by family and work


responsibilities.This can lead to stress if not properly managed.

Workplace
A workplace is the location or premises where an employee works or where an organization
carries out its activities.It can be in an office, a factory or an open field.

Applicant Tracking
Action taken by organizations to monitor the process of recruitment from the time the
application letter is received until the recruitment file is closed. It lists out all important
particulars of the applicant's profile.

Base Salary
Standard salary paid. Sometimes called "basic salary", it is the basis in the calculation of
allowances and benefits.

BenchmarkingThe act of identifying best practices that make competitors' products better in
quality.The products are either goods or services.
ApprenticeA beginner or a novice at work. Sometimes a beginner undergoes and internship.

In certain cases, a novice is someone who is undergoing skill training at a certain trade such
as a mechanic or technician.

Arbitration the situation where a third party makes a binding decision in a dispute between
two parties. An instance of this is when an industrial tribunal makes decision in a dispute
between employees and their employer.

Benchmarking Human Resources


The act of identifying other organizations' human resource "best practices" that contribute
towards obtaining, producing and maintaining better-quality employees.These practices are
the ones that contribute positively to the success of organizations.

Benefits
these are rewards or compensation paid in-kind (that is, non-cash) such as life insurance and
annual leave.Benefits are given as a method of motivating employees.

Benefits administration
Management of financial rewards given in kind for the purpose of achieving a certain
objective such as employee motivation.

Bonus
A reward, usually financial in nature, given after a target is achieved. Performance bonus is
an example.Contractual bonus is not tied to any target.

Career
Career includes all the jobs a person had held during his or her working life.

Career Development and planning


this is an act of a person to realize his or her career goals.

This also refers to an employer's plan to develop the potentials of employees as a form of
strategy to motivate and retain employees.Organization may do this under its succession plan.

Changing Role of Human Resources


This refer to the new role that human resources - that is, workers - play in helping
organizations to achieve their overall goals.

They are treated as assets, not liabilities. Some organizations had accepted that human
resource is their most important asset.

CompensationThe pay given to employees for work done.Sometimes benefits are given in
addition to payment of salaries.

Common law
Called "case law", this is the type of law developed by the court system. It is binding like
enacted laws.
Compensation
this is what employees get in return for work performed. It can comprise of cash and non-
cash compensation.

Competitive Advantage
Something that distinguish organizations from others in superior performance. These include
competent people.

ConsultancyServices provided by someone who is an expert in a certain field to help


organizations to formulate improvement plans.

Core Competencies
The skills and knowledge that every employee within a certain group must possess such as
problemssolving skills by managers.

Delegation
Delegation is the act of giving subordinates a higher level task or a decision making
responsibility.Delegation can also be made laterally or to a team of executives or employees.

Competency-Based Human Resources


This is the method of managing the skills and knowledge of employees for the purpose of
performing the job to the required standard.

This involves training activities intended to improve the knowledge, skills, abilities and
behaviors of an individual.

It is related to knowledge management. This type of organizational culture encourages


learning among employees. And employees must continue to learn for as long as they are
working.

Some writers refer to it as "competency-based training". This is so because the training given
is intended to enhance employees' competencies or to provide them with new competencies
in order to perform the job better.

Collective Bargaining
Process in which management representatives and union representatives meet to negotiate an
employment agreement.

Development
An act of or the result from carrying out a series of activities intended to improve the present
situation.

Diversity
having different human characteristics, belonging to different groups, or having different
components, and so on.
Diversified Human Resources
The existence of a situation where employees of different ethnic and cultural background,
qualification and skills are on the payroll.The presence of women in the workplace,
employment of minorities and disabled people are other indications of this.

Federal Employment Laws


These are the laws governing employment enacted by a federal legislature.

Federal Labour Laws


Federal-enacted regulations that govern workplace conditions and usually impose minimum
terms and conditions of employment.These regulate employer-employee relations.

Difficult Employees
these are workers who are not easy to manage and present problems to employers. This
affects the organization's efficiency and has the potential of reducing productivity.Reasons
for this state of affairs are many, personal or work-related. Counselling can help. But
coaching is a more effective option.Employees having this nature who are not ready to
change their undesirable attitude may face the possibility of dismissal.

Discrimination
an act or a practice that differentiates between people or groups of people based on certain
characteristics such as gender, race or religion.

Focus Groups
Groups of employees brought together to discuss or provide data on topics concerning HR.

Functional Competency
the skills, knowledge and experience required to perform a specific job.

The definitions given in this HR glossary is intended to give you some idea how others define
such words.

Goal
this has the same meaning as target or objective or aim. It is something desired by an
individual or an organization such as high productivity.

GrievanceA dispute between parties such as an employer and a union.


HR PRACTICES COMPARITIVEANALYSIS OF

BMW AND AUDI


The changing business environment BMW isbeing more business and service focus. In the
past decade the organisation hasbecome much more proactive, dealing with new concepts to
become more serviceand customer focus oriented. The structure of the organisation has
beenredefined to deal with the new ways of operating. Organisational structuredefines
important relationship within the business for achieving businessobjectives. At the same time
it helps to define the new business culture withinBMW. Culture exists with the minds and
hearts of BMW's employees andcontributes to business strategies of the organisation.
Therefore, BMW's humanresources policies are critical in the organisations structure,
conduct andperformance.

Competitive pressures on BMW and national economies haveincreased markedly in recent


decades. Therefore, organisations are constantlychanging, as powerful entities have arisen at
the international level, theEuropean Union being a good example and multinational
corporations increasinglydominate particular sectors such as cars. New competitions are
emerging andforcing older companies to adopt or reform to survive. Different structuresaffect
the way in which human resources are managed. BMW like all otherbusinesses require the
same basic human resources activities like recruitment,development and training, appraisal
and reward systems, and control andfeedback mechanisms. Organisational structures are
influenced by culture.Employees have strong feelings towards the organisations they work
for. Germanfirms have inherently flat, less rigid structures. The McKinsey 7 'S' modelis often
used to identify all the areas that make up an organisation.Structure, Style, Staff are three
such areas.

BMW has an equal opportunities none sexual discriminatingculture within its organisation.
BMW actively supports young female executivesand gives females insight into the field of
technology. BMW also offersextensive training for all level of staffs; BMW Group's Trainee
PromotionProgramme (TPP) provides the perfect combination of theoretical studies
andpractical work. BMW Group trainees receive many benefits in addition to theirpay, other
social payments such as holiday and Christmas bonuses, meal andtravelling expenses
subsidies, health programme and PC training.

BMW claims that it does not see its staff as a cost factorbut as an essential performance
factor. Also the employees are referred to as'associates' rather that works. BMW in its human
resources policy states thatany policy that is not oriented towards its associates will lead to
negativecost effects in the long-run.

As a future-oriented company, we seek to pursue anexemplary, creative and associate-


oriented human resources policy, makingsignificant contributions to business success through
our human resourcesactivities. The human resources policy of the BMW Group is an integral
featureof our overall corporate policy in both strategic and operative decisions. (Corporate
appraisal (or SWOT analysis) consists of the internal appraisal ofthe organisation's strength
and weaknesses and an external appraisal of theopportunities and threats open to
organisations in competition within industry.

Whereas,On the other hand AUDIhas good HR policies to attract or become stagnant
position of employees in the organisation. It mainly focuses on

 Audi benefits from having highly skilled Technicians who are able to enhance the Audi
Brand

 dealerships benefit from having high quality, enterprising and motivated employees who are
confident, independent and provide a high quality service

 customers benefit from knowing that they will always come first, and that their expectations
are exceeded by highly skilled Technicians and other Audi Centre team members

 employees benefit through the identification of their development needs, and then developing
the skills that enable them to become more effective and motivated.

SUGGESTIONS
:- Attractive employment should be there in each and every field of organisation in which
employee should feel intellectual behaviour by giving incentives or bonus, hard work should
be recognised and rewards system should be taken in order to get maximum output with
minimum input.

:-Job security should be there in order to stagnant position of the highly skilled human
resource

:-Good working climate through leadership and co-operation

:-Remuneration in line with performance should be given as per knowledge or grade of all the
employees.

:-Personal development opportunities should be there in order to enhance the overall


personality.

:-Motivation to employees in time to time generates maximum output in order to achieve the
organisational goal.

:-Product and company image should increase with having credible strategies adopted by
managers to in increase the brand value as well as profitability index of the organisation
REFERENCES
http://www.bmwgroup.com/bmwgroup_prod/e/nav/index.html?
http://www.bmwgroup.com/bmwgroup_prod/e/0_0_www_bmwgroup_com/verantwortung/mitarbeite
r/mitarbeiter.html

http://www.strategic-human-resource.com/hr-glossary-terms-starting-o.html

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