Please note: Large multinational enterprises (MNEs), Small multinational enterprises (SMEs)
Introduction
Hello everyone, welcome to this blog, in this post I have compared the business functions of two well-known corporates “Mercedes Benz and Audi” due to their similarity in business nature also, unhappy experience that I had with Mercedes Benz just a week ago led to dig-in into the corporates projects objectives and IHRM policies. Both enterprises are Multinational Enterprises (MNEs) and foreign-subsidiaries of home-owned firms thus, the enterprises need International Human Recourse Management in action.
Mercedes Benz UK
Mercedes Benz’s trend based on the units’ sales, stagnating at around 75000 in 2010, and the units’ sales radically increased to 85000 in the UK in 2011. What factors caused an increase in Mercedes unit sales from 2010 to 2011 in the UK?
Marcus Breitschwerdt, head of Mercedes cars Europe, joined the Mercedes in the UK in 2011. He explained that the management could be only achievable on four elements strategy processes, methods, structures, resources, and people.
He says; we needed the organisation to perform as fast as an airplane, so he launched an organisation strategy to get rid of the unnecessary tasks and only focus on the factors that help to run the business smoothly by creating competitive advantages and empowering innovation. He changed the organizations’ strategies and based it on the four elements mentioned above.
His target was achievement, growth, and making the team happy. the key was to focus on the De-cluttering process as well as motivating and empowering the staff at the same time. Their approach is to motivate and challenge the employees to achieve sustainable performance. Mercedes provides its personnel training and continuing education opportunities. Also, Mercedes promotes health and safety to the employees via relevant programs and advises on nutritional, individual exercise courses, and much more. Their health and safety plan defines and monitors measures to ensure professional health and safety at work.
After researching the Mercedes Benz’s organisational and IHRM in actions. the research in Mercedes’s organisational and national cultures led to viewing the employees’ reviews, 4.1 “star” in the UK against International employees reviews 3.8 “star” can measure that their employees satisfaction is slightly higher than the average level.
Also, the employees’ portion in Germany against foreign subsidiaries pie illustrates that Germany has the highest portion of employees by 58.5 percent, whereas China has the least portion only by 1.5 percent.
Audi International
Audi globally transferring from a car manufacturing to a mobility provider and their achievement strategy is based on customers’ perspectives. Their central question is what our customers want and need at present and in the future? Therefore, Audi is focusing on long-term achievements and creating competitive advantages.
Audi International Human Resources Management policies
Audi sustainability focuses on employee training and graduate programs in terms of strengthening its team for the future.
Mercedes Benz and Audi Global sales based on units
Mercedes’s global sales based on units was 1276827 in (2010) and increased to 2456343 units in (2019), and Audi global sales based on units was 1143902 in (2010) and climbed to 1845550 in (2019). The above figures illustrate Mercedes has always been on the top in-car global market compared to Audi.
Both Mercedes and Audi companies focus on IHRM and their organisational objectives and are concerned on adapting to the changes forced by technology, countries, individuals, and companies to keep up with the global competitive advantages. Both corporates are very similar and focus on long-term achievements aligned with their employees strategies.
Conclusion:
At the time in March 2020, I could not understand and identify the issue. Why the majority of the consumers were not happy and they all made a verbal complaint? (At the same place, during the same time, also at the same place but during a different day and time).
Here is where business and physiology explained the phenomenon. The HRM.
To be continued…
References:
Ibraiz, T. Dennis, B. and Randall, S (2015) IRHM Policies and Practices for Multinational Enterprises. Available at: https://ebookcentral.proquest.com/lib/londonmet/reader.action?docID=3570201 (Accessed: 28/02/2020)
Hofstede (No date) Hofstede Insights. Available at: https://www.hofstede-insights.com/models/ (Accessed: 28/02/2020).
Audi (2018) Employees and Sustainability: Training and development. Available at: https://www.audi.com/en/company/sustainability/core-topics/employees-and-society/training-and-development.html(Accessed: 27 February 2020).
Daimler (2019) “Annual report: The workforce”. Available at: https://annualreport.daimler.com/ar2018/combined-management-report/sustainability-and-integrity/workforce- (Accessed: 27/02/2020).
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