2013

HUMAN RESOURCE MANAGEMENT AT BMW

BY: ISHPAL SINGH JINAL SHAH K.ABHISHEK GOVIND SINGH PARTH DESAI DIMPY AGARBATTIWALA
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ACKNOWLEDGEMENT
If a man waited for the time When he could do things best He would have done nothing

Written words have an unfortunate tendency to reduce genuine gratitude into silted formality. However we feel that this is the only way to record ones gratitude. When all work is done, it is a pleasant job to thank all those who were at every instant supervising us and ensuring the completion of the decoded work. The successful completion of our project can be attributed to the combined efforts made by us and the contribution made in one form or other by individuals we hereby acknowledged.

We are extremely thankful to our project guide Prof. Silpy Sarker Gupta for her outstanding efforts and for being with us right from the beginning of our project and guiding us at every step.

BMWS NEW LOGO

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INTRODUCTION
The BMW Group is one of the worlds leading car and motorcycle manufacturers with more than 100,000 employees in over 100 countries. With brands like BMW, MINI and Rolls Royce they operate very successfully in the premium segment of the automobile and motorcycle industry. In order to consistently maintain their quality standards, they seek employees who possess team spirit and personal initiative, as theyll have an uncompromising desire to constantly further their knowledge. BMW are convinced that those who cease to improve have already ceased to be good.

BMWS CORPORATE OFFICE IN MUNICH

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High-efficiency culture It is not only BMWs technical know-how that makes them stand out considerably from other companies. In keeping with the quality standards of their products, their corporate culture is a consistent high-efficiency culture. They aim to constantly incite each other to become even better, to offer even better products. This is only possible through a pronounced team spirit. Because they approach each other with respect and esteem, their employees have a strong team spirit the decisive prerequisite for success within a team. Satisfied and motivated employees are an invaluable competitive advantage to their company.

Basic principles of HR (BMW) During the next decade they aim to secure their position as the worlds leading manufacturer of premium automobiles. For this reason all of their strategies including their corporate culture are conceived on a long-term basis and are constantly targetoriented. They established this prerequisite when they launched their Strategy Number ONE. The Vision: to become the worlds 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 companys 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.
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Customer orientation Their customers decide whether or not their company is successful. Their customers are at the centre of all of their actions and the results of their actions must be judged from a perspective of their benefit to the customer. Peak performance They aim to be the best. Each of them has to rise to this challenge, meaning that each employee must be prepared to achieve a high degree of efficiency. They 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 they are fully aware that they all work together in achieving corporate goals. For this reason they 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 they must adapt quickly and flexibly to new demands. Therefore, they regard change as a chance and the ability to adapt as the prerequisite for making use of this chance. Dissent
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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 They 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 their strongest factor of success. Consequently, personnel decisions belong to the most crucial decisions. Leading by example Every executive has an exemplary function. Sustainability They regard sustainability as a lasting and positive contribution towards the economic success of the company. This is the basis of their ecological and social responsibility. Society They consider awareness of social responsibility an inseparable part of their corporate self-conception. Independence They secure the BMW Groups entrepreneurial independence through sustainable and profitable growth.

BMWs RECURITMENT POLICY

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BMW 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 Ltd. actively encourages its employees in the development of their careers. BMW Ltd. operates on equal opportunity policy.

SELECTION The People Brand To learn more about our People Brand philosophy, hover over the diagram below.

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At BMW they strive to be world class in everything they do. Their people strategies are geared towards the promotion of an enabling environment. They seek to foster a culture and promote processes that value the individual, reward performance, provide opportunities for growth, and recognise potential. One of the best ways to sustain and expand their premium, high performance brand is by attracting, developing and retaining dynamic people. Hence their Human Resources Vision says The Best People Drive Our Business. The selection process runs from August December annually. BMW conducts a needs analysis within the company to determine potential placement areas for graduate trainees. Applicants are assessed and short-listed based on their academic record and potential within the BMW corporate environment. Short listed Applicants are interviewed and the final selection takes place for start of contract by February each year.
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STAFF TRAINING AND DEVELOPMENT BMW Ltd. offers all employees the practical support, advice and training opportunities to encourage personal development, aligned to the achievement of corporate objectives. In addition to being placed within a specific department within the business, their programme includes 18-24 months of specially identified training and development opportunities in three key categories which are: Orientation Interpersonal Development Business Acumen This is included in a personal development plan for each Graduate. All Graduates also go through an in-depth and informative Departmental Induction after the Company Induction. The Graduates are then exposed to the specialist departments through job rotation, based on project work, and each Graduate is given the opportunity to manage an individual project and then provide feedback to the various management circles.

The BMW Group Academy 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

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Sales After sales Technical Dealer Service

Coaching Mentoring and coaching is essential to the individual Graduates success and this continues throughout the duration of the programme. This is an opportunity to give and receive feedback on progress made on the job as well as manage individual career expectations.

Learning Organisation The only thing that gives an organisation a competitive edge, is what it knows, how it uses what it knows, and how fast it can know something new. This drives BMW to become a Learning Organisation and has focused their efforts to: - Ensure complete integration of training and development with organisational objectives. - Ensure managers have the tools and incentives to actively develop staff. - Ensure everyone has access to development.

They promote co-responsibility for development, an empowering partnership entrenched in their values system We at BMW.

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They also aim to have all their training initiatives accredited as either externally recognised qualifications or contributing towards these qualifications.

CAREER AND DEVELOPMENT They attach the utmost importance to well trained employees who continuously improve their skills. They want to work with you to further your career so that they remain competitive and you remain employable. Therefore, the BMW Group systematically supports your career, as they aspire to fill job vacancies predominantly with qualified personnel from their own staff. Goal-oriented promotion The BMW Group actively helps its employees qualify for carrying out more significant and international assignments. For this reason interviews are regularly arranged with superiors to discuss career objectives and the development measures that are suited to them. Personnel and training departments at BMW Group locations at home and abroad have various opportunities on offer for their employees: - Vocational training up to management qualification - Professional development and personality training programmes - Training courses for moderation and working techniques - Training for project management - Intercultural programmes reaching far beyond normal language training courses

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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 their weaknesses and plan career development.

Performance and reward They can only be successful if their 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 their remuneration system is based on fairly rewarding both an individuals 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, behaviour12 | P a g e

driven leadership style and the regular staff surveys, a systematic way for them to obtain their employees feedback. Guarantee productivity, encouraging top performer As automotive pioneer Henry Ford once said, Success is to have exactly the skills demanded at the moment. That basically holds true to this day. However, Fords 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 staffs productivity? These are the questions that drive their 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

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demand for engineers and technicians with experience and expertise in these fields. In a first step, their 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 companys need for certain competencies in the most time and cost-efficient manner

All work and no play makes jack a dull boy

Living and working

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The BMW Group is interested in a person as a whole. There must be a healthy balance between living and working. Therefore, they not only actively promote health care and develop creative working hour schemes, but also support a number of employee initiatives. For example, in Munich they systematically support cultural activities, initiate events or act as partners to culture. In the brochure Kulturmobile, which is published quarterly and compiled by employees, they inform about BMW Group cultural sponsorship. Sport & hobbies Moreover, the BMW Group supports several clubs and associations that have been founded by employees who meet regularly and have a lot of fun together. You will find a spectrum that covers sport activities (Dancing, Tennis, Sailing, Football, Bowling, Cycling, Squash, Golf and more ) as well as cultural offers (Male-voice choir, chamber orchestra, Par force horn blowers and others) and special hobbies (Amateur radio operators, aero sports, model railway club, Dixie drivers and others).

WORK LIFE BALANCE

FAMILY AND CAREER

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The work life balance is important to us, because only those employees who feel comfortable in their job and combine their career with their private ambitions are, in the long run, motivated, even-tempered and efficient. GROUPS WITH DIFFERENT NEEDS The BMW Group sees herself as family-friendly company. Far beyond legal requirements the BMW Group offers employees varied possibilities of combining career and family flexibly and according to their needs. For example part-time models, home office work stations and the individual planning of child care periods. These comprise: - Cooperation with the agency Familienservice (counselling and procurement of child care services such as the search for playschools, child minders, au pairs) - Cooperation with local playschools, nurseries and parents initiatives (these differ according to location)

Flexible and demand-actuated solutions are required for all target groups, as lifestyles and role models have changed substantially in recent decades. An increasing number of women do not wish to choose between career and family, but to combine these as best as they can. We give special priority to: - Women who wish to devote more time to the family on a temporary basis - Men who wish to actively participate in family life
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- Career starters and part-time employees - Employees with a commitment to helping dependents in need of home care, e.g. with our eldercare project

PAY AND BENEFITS It is the stated aim of our personnel policy to continue to strengthen the coherency between performance and pay and, at the same, time secures the principle of performance as a fundamental virtue of our corporate culture. Those who achieve something always receive adequate reward. Remuneration should promote the personal achievements of each individual employee and, at the same time, the cooperation with the group and the assumption of corporate responsibility. It creates the basis of the further enhancement of the quality of products, processes and results, thereby securing the long-term success of the company. All employees participate in this success through a corporate profit-sharing plan.

More than standard It goes without saying that the BMW Group fulfils all legal requirements for the remuneration of its employees, from protective clothing, maternity leave to wage continuation in the event of sickness. This is complemented by capital formation benefits, supplementary payments (holiday bonus, Christmas bonus)
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and employee participation in the companys success, which naturally depending on the company being successful is paid out once a year. Depending on where you are employed and your agreed wages, you also receive extra pay if you work nights, on Sundays or on bank holidays. Also, for the time after your active employment with the company, the BMW Group offers you attractive benefits such as a company pension. Pension fund These days it is particularly important that every employee ensures that he has financial security in addition to a state and company pension. The BMW Group assists its employees in doing this: Additional capital formation through preference shares PVK (Persnliches Vorsorge Kapital -personal pension fund) o a particularly attractive financial security package

Additional benefits In addition to financial remuneration, the BMW Group offers a number of attractive possible additional benefits. - With the employee car purchase scheme you can purchase, finance or lease your BMW or MINI on exceptionally favourable terms.

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- Wedding car: if you or a first-degree relative should marry, you have the possibility of using a wedding car, e.g. an elegant BMW 7 Series Saloon. - Their idea scheme Imotion is a further, potentially very profitable source of income. By submitting tangible ideas for improving work procedures, making processes safer or making work procedures more efficient, you can earn attractive bonuses. Wellness At BMW they aim to create an environment where all employees and the community readily take responsibility for physical, mental and spiritual wellness. To promote a wellness culture in BMW, the Occupational Health Services are at the forefront, exemplifying the motto BMW Cares. The BMW employee can choose from an array of confidential services ranging from physiotherapy, to exercises, to financial counselling to participating in wellness events. Most of these services are completely free or covered by the BMW Employees Medical Aid Society.

CONCLUSION

HR PRACTICES The changing business environment BMW is being more business and service focus. In the past decade the organisation has become
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much more proactive, dealing with new concepts to become more service and customer focus oriented. The structure of the organisation has been redefined to deal with the new ways of operating. Organisational structure defines important relationship within the business for achieving business objectives. At the same time it helps to define the new business culture within BMW. Culture exists with the minds and hearts of BMW's employees and contributes to business strategies of the organisation. Therefore, BMW's human resources policies are critical in the organisations structure, conduct and performance. BMW has an equal opportunities none sexual discriminating culture within its organisation. BMW actively supports young female executives and gives females insight into the field of technology. BMW also offers extensive training for all level of staffs; BMW Group's Trainee Promotion Programme (TPP) provides the perfect combination of theoretical studies and practical work. BMW Group trainees receive many benefits in addition to their pay, other social payments such as holiday and Christmas bonuses, meal and travelling expenses subsidies, health programme and PC training. BMW claims that it does not see its staff as a cost factor but as an essential performance factor. Also the employees are referred to associates' rather that works. BMW in its human resources policy states that any policy that is not oriented towards its associates will lead to negative cost effects in the long-run. As a future-oriented company, they seek to pursue an exemplary, creative and associate-oriented human resources policy, making significant contributions to business success through their human resources activities. The human resources policy of the BMW Group is an integral feature of their overall corporate policy in both strategic and operative decisions. (Corporate appraisal (or SWOT analysis) consists of the internal appraisal of the organisation's strength and their weaknesses and an external
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appraisal of the opportunities and threats open to organisations in competition within industry.

REFERENCES 1. BMWS WEBSITE-http://www.bmw.com/com/en/ 2. BMW INDIAS WEBSITE-http://www.bmw.in/in/en/ 3. BMW EDUCATION PROGRAMMEhttp://www.bmweducation.co.uk/coFacts/default.asp?topicI D=4 4. HUMNAN RESOURCE MANAGEMENT-P.SUBBA RAO

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5. BMW CASE STUDY ON HRMhttp://www.eurofound.europa.eu/areas/populationandsocie ty/cases/de020.htm

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