Volkswagen Aktiengesellschaft ( Volkswagen AG), a Germen automotive corporation, was the second largest vehicle manufacturer worldwide in 2011( OICA, 2011) and leads the vehicle market in europe over the last two decades. There are many brands under it, including Audi, SEAT, Skoda, Bentley, Bugatti, Lamborghini, Porsche, Ducati, Volkswagen, Volkswagen Commercial Vehicles, Scania and MAN (Volkswagen, 2013).
In 1937, ‘company for the preparation of the German Volkswagen Ltd’( Volkswagen 2013) was founded in Berlin, which seems to be the start of Volkswagen empire. During 76 years, Volkswagen Group is developing from a small plant to a global car manufacturer. It is not only because of its organization structure and high technology but also because of its excellent human resource management. This report will analyze the human resource management and strategies of Volkswagen, and try to explain its success secret.
Human Resource Management
After Volkswagen AG established, it is almost 70 years. In these years, Volksvagen AG has developed from a small plant to an international automotive corporation. The Managers of this corporation has done many organizational strategies to complete the company-wide innovations. These organizational strategies lead the company into development and bring benefit for the company. However, every organizational strategy need talent managers to create it and many engineers, designers and workers to finish it. In another words, organizational strategy can not come true without the assistance of human resource strategy.
Human resource management is a tool to complete organizational strategies, and even the objectives and goals of an organization. Therefore human resource strategies focus on organizational wide objectives and goals to make the organization fit the changing environment. ‘ The Volkswagen Group needs employees who enthusiastically give their best. A good balance between demands and ability is the basic precondition for optimum performance and results’ (Volkswagen 2013). Therefore, the top managers of this company prefers employees paying attention to both work and living to achieve the top performance.
2.Human Resource Planning
The reason why human resource management is important is because many essential factors of running a company is changing, such as market and requirement of customers, staff and capabilities of them, work and organization structure, policies and laws. Human resource strategies can assist organizations to adapt to changes. However, before setting a human resource strategy, an organization should analyze the changes of the organization itself and the whole market or economy to do a human resource planning for it.
After WTO established in 1995, global business and trade is totally changed. The trade between nations is quite usual, and companies of developed countries operate plants in developing countries to get cheap materials and labour. Therefore, the environment of a company is also changed, they need to compete with not only national companies but also international ones which many have advanced technology and larger amount of finance. Moreover, the age distribution of employees is older than before, which means employees may learn new stuff slower than before. In addition, the basic requirements of skills of employees is much more complicated than before. The retaining of employees becomes necessary in some companies. These changes are all related with the development and innovation of organizations, and analysis of them is an essential component of human resource planning.
Human resource planning has been defined in many ways, ‘ systematically forecasts an organization’s future demand for, and supply of, employees’(Werther&Davis 1989) is an organization related one and can explain its meaning in this report. The purpose of human resource planning is completing the demands of organizational strategies and supplying the...