Volkswagen

Human Resource Policy

A study of Human Resource policies followed by Human Resource department of

Volkswagen group, and how they apply the policy in day to day life to accomplish the
organization objectives and goals
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Volkswagen
Human Resource Policy
About Volkswagen

Objectives and Goals 

Volkswagen means –
World Leader - Volkswagen plans to become a world leader by
“People’s Car”
using intelligent innovations and technologies.
Delivering customer satisfaction and quality. Tagline – “Das
Auto” (The Car)
Increase Sales - Volkswagen aims to increase unit sales to more
than 10 million vehicles a year; it intends to capture an above- Was originally founded by
average share as the major growth markets develop. the Nazi trade union, the
German Labour Front
Increase profit - By achieving a return on sales before tax of over (Deutsche Arbeitsfront)
8.0%, Volkswagen will safeguard its solid financial position and
ability to take action, even during difficult market periods. It’s one of the world’s
largest automobile
Top Employer - Volkswagen is to become the top employer manufacturers
across all brands, companies and regions; it must do so in order to
Head Quarter – Wolfsburg,
build a first-class team
Lower Saxony, Germany

Vision Statement Chairman of the Board of

Innovative solutions for the tasks of the future Management of
Volkswagen AG -
Prof. Dr. rer. nat. Martin
Mission Statement
Winterkorn
We are the team of highly qualified professionals, dedicated to
providing services of unparalleled quality to our customers. To
the end and through our services, we will create a collaborative
environment that:
Provides a quality product
Creates a safe environment
Enhances productivity, and
Enables our customers to be more successful.

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Human Resource

An Overview
Our success is based on the qualification and personal commitment of around 370,000 people who are
employed by the Volkswagen Group.
A company will only be able to survive in the face of international competition if it has a top team,
characterized by a high level of competence, dedication, inventiveness and fitness.
Competence is created from good basic training and a life-long willingness to learn.
Dedication ideally means entrepreneurial thinking and actions, not only by management staff.
Active contribution of ideas and participation are expected of all members of staff.
The success factors are encouraged in our human resources processes and in projects.

Basic Principles

Volkswagen group recruits people who give their best enthusiastically.

A good balance between demands and ability (the so-called "flow channel") is the basic precondition
for optimum performance and results.
For Top Performance and advance Success of company, Volkswagen does not overstretch or under
stretch their employees.
The VW Group will only be able to achieve with exemplary leadership and constructive cooperation
between management and workforce. This includes both targeted and continual personnel
development and work organization, which VW group continues to develop with the so-called
"Volkswagen Way".
“Volkswagen Way” - discussions, case studies, simulations and short lectures
By this management assumes a decisive role in the entire process
For active involvement of its employees in the organization, VW group introduced “Mood Barometer”
which gives employees opportunity to anonymously voice their opinion.
The “Declaration on Social Rights and Industrial Relations” expresses Volkswagen's global
understanding of social responsibility on the basis of minimum standards.

Working and Living

By the means of:

Attractive Employment
Job security
Good working climate through leadership and cooperation
Remuneration in line with performance
Personal development opportunities
Product and company image

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VW group are able to employ various instruments that enable us to respond quickly and flexibly tofluctuations in
employment, and so secure jobs for the long term.

Work/Life Balance

Work is just one part of life. The term "work/life balance" overtly takes up this notion.Enabling its
employees to find the right balance between work and private life is a permanentchallenge for any
successful company. Both staff and company benefit to an equal extent. The right balance encourages
employee satisfaction, providing for reduced absenteeism and increased productivity.

The Volkswagen Group employs numerous projects to support its staff, for example in reconciling time
spent with the family with time spent at work. Both in production and in the field of services, we offer
a variety of different part-time and shift models. But childless employees also have their own
individual ideas about harmony between work and private life,and want their employer to take their
interests into account. Creative employment solutions with flexible, individual working time models
have been available for all members of staff for many years.

To help parents achieve that often difficult balance between work and family, some factories are able to
offer special child care facilities, which can prove to be especially useful. That creates motivation to re-
enter the workforce.

Health and Safety at work

The Volkswagen Group attaches great importance to health protection and promotion for all our staff.
This involves far more than simply preventing accidents at work and precautions against occupational
sickness. Comprehensive health management ensures that employees remain fit and healthy.
Prevention and provision are given a high priority. Various early diagnosis examinations, health
promotion programs and individual health coaching are available for the well-being of the workforce.
Detailed information is provided about potential accident hazards at the workplace. With the
declaration of social rights and industrial relations at Volkswagen, the company has expressly
committed itself to the Group objective of guaranteeing healthy working conditions at all its sites.

Health protection
There is a wide range of health protection examinations available for all employees of the Group. These
are supplemented by an array of information and advice about what every individual can do to stay fit
and healthy.

Working safely
New scientific findings on the issue of safety at work are promptly implemented in theVolkswagen
Group. The issue of accident prevention is a central element of our human resources policy.

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Ability-matched workplaces
Innovative human resources concepts are required to accommodate members of staff withwork
restrictions that are critical with respect to their employment. The objective is to rationally integrate
people and to keep them in the work process for as long as possible.

Equal opportunities

Different cultural traditions in the global markets and increasing economic dynamism demand great
flexibility from a modern company. To achieve this, it is necessary to make maximum use of the
opportunities and innovative potential that stem from the employees' different backgrounds. Staff
appreciation has long been a tradition in the Volkswagen Group. The same thing applies to the specific
promotion of socially disadvantaged groups. We attach greatvalue to the diversity of the different
people we employ. Mutual respect is a principle that hasbeen written into our Group values. It forms
the basis for a productive corporate climate in which all employees enjoy the same opportunities.

Valued diversity
Not all members of staff are equal. There are outward and subjective differences, differentlifestyles and
different ideas about the future. Productively exploiting this diversity within the workforce is one of
the goals of our management.

Career women
Ever since the 1980s, the Volkswagen Group has been encouraging and promoting equality between
men and women. Targeted measures are employed to boost the proportion of women even further and
to make us even more attractive on our way to being the top employer.

Development Paths

The Volkswagen Group will only be able to satisfy growing demands with respect to flexibility,
processes, quality and cost if it views the dynamic processes of change as apermanent challenge. To be
successful, we also require the active and independent participation of all members of staff. It is
precisely here that systematic personnel development begins. From the trainee to the top
manager.From the very first day to the last.

Promoting development potential

It is the goal of the Volkswagen Group to recognize and uphold the performance and learning potential
of each and every member of staff, and to promote all employees in line with the company strategy and
in accordance with their personal development potential. Personnel development measures range from
technical seminars in automotive engineering andautomation technology, IT, quality management and
productivity, through supervisor development programs for the Volkswagen Passenger Cars brand, to
interdisciplinary training in subjects such as self-management and communication. In addition, the
Volkswagen subsidiaries Volkswagen Coaching GmbH, the Audi Akademie and the Volkswagen

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Bildungs institut GmbH are able to offer a broad and diverse range of seminars. These include,for
example, modules dealing with personnel management, leadership competence orinternational
development programs. Volkswagen Coaching GmbH is one of the largest providers of vocational and
advanced professional training in Germany, and is active not only for the Volkswagen Group but also
on the open market.

Advancement of women
The Volkswagen Group is not able to do without the special competence and creativity ofwomen. The
specific advancement of female talent is therefore an integral element of our personnel development
strategy.

Talent Groups
Talent Groups contribute to the consistent selection and advancement of particularly highachievers at
Volkswagen at all levels of development, preparing them for future tasks andresponsibilities. The
Talent Groups comprise several elements: a training program, networking events and specific services
from the relevant department or vocational group.

A Talent Group for young specialists has been set up for vocational trainees to manage the smooth
transition from vocational training to professional work. This ensures that the highestachievers among
the vocational trainees are deployed as needed in company, bringing about a lasting improvement in
the quality of the workforce.

“Wanderjahre” (year abroad)

The “Wanderjahre” (years abroad) programme is an established pillar of employee development at
Volkswagen. Here, former apprentices from all professional groups and young university graduates
are given the opportunity to work abroad and organize their working day in a foreign culture.

Participants are deployed to one of our companies around the world for an average period of twelve
months. The "Wanderjahre" programme benefits employers and employees alike. TheVolkswagen
Group gains motivated employees with international experience, while these have the opportunity to
develop on both a professional and individual level.
At Volkswagen, there are integrated and selective development paths leading into management. Up-
and-coming specialists, future leaders and junior management staff are specially selected and
promoted.

Management development

Management selection process

In the management selection process, the focus is placed on technical tasks in management and on the
competence needed for this. Apart from technical competence, personnel development focuses more
strongly on leadership functions. Management staff should be given intensive preparation and support

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to help them with their work.

Leadership license
The leadership license prepares selected Volkswagen employees, readying them to assume
management tasks. It comprises qualification modules and an examination, and is orientated toward all
members of staff who are about to assume leadership responsibility for the firsttime.

Potential
The basis of personnel planning, appointments and the promotion of top performers –especially of
technical experts – is a harmonized set of standards in the human resources systems, for example short
biographies for all managers and junior management staff. This makes the potential of the entire Group
visible in a systematic planning process.

Intercultural competence
Specific local knowledge of management in the country concerned is essential when it comes to
opening up and cultivating growth markets. For this reason, we are strengthening the management in
the regions. To this end, we are also promoting the temporary deployment of top performers from our
international companies to Germany. The staffs involved are thus given the opportunity of advancing
their professional qualification, of strengthening their intercultural competence and of building up
professional networks. International deployments between companies of the Group also play an
important role when it comes to making appointments to management positions.

Openings

Automobiles are the world's most sophisticated and complex industrial products to be developed,
manufactured and marketed. Not least because of this is Volkswagen a high-tech Group that lives from
the performance of its engineers and from the proficiency of its skilled workers. A vehicle such as the
Golf holds the condensed experience and knowledge of several generations of specialists. Over the
years, these have made it the most successful car in theworld. Without highly qualified staff who
possess extraordinary skills, Volkswagen would have no future.

If we are to enjoy success in the market, we need the best trainees, the most competent skilledworkers
and the most able university graduates. The Group Strategy 2018 defines the top teamin terms of three
categories: competence, dedication and fitness. That is why the VolkswagenGroup is not only
continually investing in new processes, machinery and products. Training and staff qualification are
also promoted to the same extent.

An important element of a sustainable corporate policy is the promotion of young talents. We employ
different training paths to qualify young people for a career in our Group. In this way,we shall secure
our long-term competitiveness. Here, we aim to provide maximum practical orientation and to
integrate junior staff as early as possible in the business and operational processes.

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There is a wide variety of options that can provide an opening into Volkswagen.

Vocational Training
"Volkswagen is full of opportunities for young people who show personality, dedication, athirst for
knowledge and great interest in automobiles." [Dr. Horst Neumann, Member of theBoard of
Management responsible for Human Resources].

Training provides security for the future

Great importance is attached to vocational training in Volkswagen's human resources work.Globally,
Volkswagen is currently training some ten thousand young employees in all years of training. For
example, every year, 1250 new trainees (including students on integrated degree courses) are taken on
at Volkswagen AG in Germany. In addition, the Group provides funding for additional training places
for disadvantaged young people in small and medium-sized companies across Germany. Despite the
difficult situation, we shall continue our training offensive.

Internationalization
Amongst other things, internationalization contributes to the establishment of uniform factory
structures and to a modularization of our products, whereby the production processes at the different
factories of the Volkswagen Group around the world are growing ever closer together. Consequently,
the specialists in production are increasingly required to satisfy internationally compatible
requirements with respect to their competence. Derived from this are international standards for
vocational training within the company, so that the training is more intensively systematized and its
quality harmonized to a uniform standard. In the future,these standards will represent the competence
requirements for our specialists in productionand will form the basis for qualification and development
programs across the VolkswagenGroup. For this reason, training is increasingly decentralized and
conducted in company learning stations that are integrated in the value chain process – an important
contribution on the road to creating the dedicated top team of tomorrow.

University Graduates

Special entry programs

Volkswagen has developed a special new entrants' two-yearprogramme for university graduates that
gives them the best possible start in the company. Participants familiarize themselves with the
Company and their own department but also attend a large number of individual training and
networking modules. In addition, the programme includes several weeks gaining experience of work
on the production line and in the commercial field, plus an optional deployment abroad, which is
specific to the department concerned. All trainees have a personal mentor from their own department
whom they can consult at any time.

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International development opportunities

The StartUp Cross programme allows suitable university graduates with a highly international
orientation to demonstrate their skills in deployments in different areas of the company. Here, the
emphasis is on gaining broad global experience and insight into the complex interrelationships of an
international corporation. The range of content of this 18-month trainee programme is rounded off by a
number of supplementary seminars and networking opportunities.

The Student Talent Bank

The Student Talent Database is Volkswagen's development programme for people who are still at
university. Here, students who have already produced exceptional results in an internship in the
Volkswagen Group are encouraged in their particular discipline and on an individual basis. The
students chosen not only receive further training; their long-term loyalty to Volkswagen is also
secured. In addition, the Student Talent Database assists the individual departments in filling their
vacancies with highly qualified graduates who are familiar with the Group.

By providing these attractive offerings for university graduates, the Volkswagen Group is increasingly
focusing its attention on aiding employees in developing their talents at an early stage and honing their
skills with the goal of safeguarding Volkswagen’s technical expertise.

Development in workforce
Employees at September 30, 2010

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Workforce at Production Companies by Country at December 31, 2009

Workforce by Employment Category 2009

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Market Shares

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Conclusion

VolkswagenAktiengesellschaft (AG) is one the world’s largest car manufacturing company. And this is
only because of the policies followed by the Volkswagen group.
Volkswagen group choose, hire and promote its employees by the qualification and ability. Each and
every employee of the groups are highly qualified

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