Volkswagen Group or Volkswagen AG is a major German automobile manufacturer which operates in 153 countries and owns production plants in 31 (Volkswagen AG, 2020). As a result the company hires a staggering total of over 650,000 employees worldwide (Volkswagen AG, 2020) making both global operations and human resource management of extreme importance to the corporation.
The company is one of the largest players in the automobile industry worldwide, and is therefore regulated greatly by government regulation of factors including product, design, environmental impact and many more. Due to this non-negotiable need for adaptability globally, Volkswagen emphasises a remaining level of global integration through following the German Corporate Governance Code. This provides a framework for employee relations and human resource management within the company and therefore allows for high internal consistency in the company’s human resource strategies and practises. Through both internal consistency and local adaptation Volkswagen’s international strategy sits towards the global archetype with some elements of transnational approach (Cerrato & Depperu, 2016). Each human resource function such as recruitment, selection, development and compensation also support the company to achieve the desired level of consistency and global integration. Each of the functions are also implemented with an emphasis on this global integration, however maintain some flexibility where required, specifically, the recruitment and training at Volkswagen are implemented to this strategy.
Certain factors in the automobile industry have evidently impacted and moulded Volkswagen Group’s global strategy to emphasise integration, particularly in human resource management, with some room for local adaptation. The company has built many human resource functions and practises which are implemented in a way which supports this strategy to further benefit employee relations at Volkswagen.
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