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 cultureIt 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

TrainingTraining 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 Analysisthis 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.

RecruitmentRecruitment 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.

RetentionWith 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.

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

Optional Retirementthe 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.

WorkWork 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 PopulationThe 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.

WorkplaceA 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 TrackingAction 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 SalaryStandard 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 ResourcesThe 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.

Benefitsthese 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 administrationManagement of financial rewards given in kind for the purpose of achieving a certain objective such as employee motivation.

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

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

Career Development and planningthis 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 ResourcesThis 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 lawCalled "case law", this is the type of law developed by the court system. It is binding like enacted laws.

Compensationthis is what employees get in return for work performed. It can comprise of cash and non-cash compensation.

Competitive AdvantageSomething 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 CompetenciesThe skills and knowledge that every employee within a certain group must possess such as problemssolving skills by managers.

DelegationDelegation 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 ResourcesThis 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 BargainingProcess in which management representatives and union representatives meet to negotiate an employment agreement.

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

Diversityhaving different human characteristics, belonging to different groups, or having different components, and so on.

Diversified Human ResourcesThe 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 LawsThese are the laws governing employment enacted by a federal legislature.

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

Difficult Employeesthese 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.

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

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

Functional Competencythe 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.

Goalthis 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/mitarbeiter/mitarbeiter.html

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

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