Automobile industry
In the present era, the automobile industry faces various issues associated with HR that have a greater impact on the business operation of the companies. The availability of talent is considered one of the major issues that affect the business activities of Volkswagen. It has been identified that there is a shortfall of talented employees in both segments, such as technical and at the commercial level. Apart from this, there is a huge shortage of talented workers in the chosen business. So, because of the non-availability of expertise in the automobile industry, companies sometimes have to compromise with the quality of the product that is served in the market.
Moreover, compensation is another issue that is faced by Volkswagen as here, an increase in compensation within the automobile industry is less than while compared with the manufacturing industry. This further leads to the increasing attrition rate of the company as workers are not provided compensation for their work. This affects their motivation towards work, and they leave the organization. So, this affects the productivity of Volkswagen as employees are leaving their positions through which further profits of the company also get impacted. In an analysis, it has been found that for attracting talent with respect to this sector automobile industry has ranked as fourth. By considering this aspect, it has been identified that in the present scenario, the automobile industry cannot be able to meet the expectation of young engineers.
Lack of human resource strategic plan is also an issue that is faced by Volkswagen to carry out its business operation for the long term. This is the biggest issue that influences the strategic planning of HR within the company. In this case, Volkswagen struggle with different HR functions, so they do not have strategic planning regarding different HR activities such as training, hiring, promoting, and delegating employees within the business. Due to a lack of planning processes in the automobile industry, it becomes difficult to manage human resources activities in the company. If there is not effective planning carried out, then it is not possible for the firm to do planning associated with HR practices.
The development of leaders for the future generation is an issue that affects HR activities within Volkswagen. It is not easy for companies to manage and provide training to leaders through which it can be able to meet the company’s expectations regarding the carryout business activities in an efficient manner. Furthermore, due to this issue, employee turnover also gets increased, so this has a greater impact on the HR practices of the automobile industry. On the other hand, this sector lack in providing training to leaders as they focused on daily operations, so it becomes difficult for them to tackle both activities at a time.
The communication gap influences the working environment within Volkswagen as employees are not much interactive and engage in business activities; this leads to decreasing communication, and goals and objectives cannot be met. If there is a lack of communication between employees working, then it is not easy for the firm to manage HR activities in the company. It has been evaluated that in the automobile industry, if the project is carried out, then communication between workers get decreased as they focus on carrying out their task on a given deadline. In addition to this, their full focus is on completing the task such as repairing vehicles, meeting sales of the firm, etc.
The demographic and geographic shift is also an issue that has a greater influence on the HR activities of Volkswagen. It has been evaluated that sometimes it becomes difficult for HR to manage shifts of its employees because of the change in timings in different countries. Different laws are adopted in different countries at the time of carrying out business, so it is difficult for them to manage activities and further influence the cost of the company. In addition to this, it has been found that in the south direction cost of living is less as compared with other countries. This further supports in evaluating various aspects as this has a greater impact on the HR of the company.
Apart from this, change management issues affect the automobile industry the most, and along with this, it also affects the motivation of employees working in the organization. It has been observed that change cannot be adopted by employees in an easy manner as they are not ready towards accepting changes that bring within the automobile industry. Apart from this, every employee in the firm is not in favor of bringing change, so this also affects the business environment for the future. In the automobile industry, it is not an easy aspect to evolve change in a frequent manner as a lot of investment and changes require that is not suitable for the business.
It has been identified that learning and development are also an issue within the automobile industry that influences the working of employees in the organization. It is important to consider the development of employees, but it is not possible for the Volkswagen HR unit to manage this aspect in an effective manner as it also has to carry out the daily business operation. So, it is not possible for the firm to manage both the activities within the organization. It is necessary to consider various activities related to enhancing skills and knowledge so as to meet objectives and goals for the future.
Compliance with laws and regulations is an issue that creates problems for the HR unit of the automobile to manage laws that are implemented by the government of the countries. It has been observed that Volkswagen has its operation in various countries, so different countries have their own regulations and laws for carrying out HR practices, so this influences the current working environment of the company.