INTRODUCTION

Human Resource Management is concerned with people

dimension in management since every organisation is made
up of people acquiring their services developing their skills
motivating them to achieve a higher level of performance &
ensuring that they continue their commitment to
organisation & essential in achieving an organizational
objective. This is true regardless of the type of organisation,
Government, education, health, recreation or social action.
H.R.M is planning, organizing, Directing, Controlling,
development, compensation, integration, maintenance &
separation of HR to the end that individual & organisation &
social objectives are accomplished. Thus H.R.M refers to a set
program, function & activities designed & carried out in order
to maximize both employees as well as organizational
effectiveness

Definition
“H.R.M is a series of integrated decisions that form of
employment relation the quality contribute to the
organisation while employees to achieve their objectives.”
 Significance Of H.R.M

H.R.M plays a crucial role in employee satisfaction, improving

performance and productivity. This helps in organization’s
competitive advantage, and it contributes to the
organization’s success. Every organization starts with a vision
that their business, the first priority is to hire a competent
workforce means the right person in the right place and the
right time.

1. Human resource in nations well being

Lack of human efficient and adequate human resource is

largely responsible for the backwardness of the country.
Countries are underdeveloped because their the peoples are
uneducatedly resulting in underdevelopment of nation.
Hence the quality of people is a reason for economy
development

2. Man v/s Machine

Most of the problems in organisation are human rather than

physical or technical.No industry can be rendered
efficiently so long without human being because all the
machines with the latest technology are created by human
minds only.
3. H .R Management & General Management

Management is the process of getting things done through

people. Among all four being’ i.e Man, Machine, Material,&
Money the management of man is not only fundamental but
also dynamic and challenging.

4. Human Resource System is a central subsystem

H.R operates & control all the subsystem in organisation

overall organisation performance may be viewed by
individual performance .so it is viewed that the development
of an organisation is not only solely but heavily depends on
the quality workforce.

5. Human Resource Accounting

It is accounting for people in organisation resource. It is the

measurement of the cost & value of people required
for organisation.

6. Human Resource & market economy.

Knowledge plays a most vital role in the modern economy as

stated earlier there are three important areas of human
resource I,e skill, ability,& knowledge according to P.F
Drucker knowledge is the only meaningful resource today if
the employees of an organisation are knowledgeable about
the current market which helpful for organisation
development
7.Knowledge & Competitive advantage.

Modern business is been undergoing changes at a faster rate

due to changes in technology, liberalization etc. Knowledge is
a significant aspect of the business. the business should
have knowledgeable employees to have a competitive
advantage and to be successful in a competitive
environment.

8. Product & Human Resource.

Many companies are based on the strength of their products.

These companies have to use people as a source for winning
in the competitive era. Creative and innovative products can
be developed by human effort. A successful product is
developed by using knowledge as a core competency of the
company.
functions of human resource
management

1.Job analysis

Determining the skills and experience necessary to perform

a job well may make it easier to hire the right people,
determine appropriate compensation and create training
programs.

2.Workforce operations

Creating health and safety policies, responding to employee

grievances, working with labor unions, etc., can help support
regulatory compliance.

3.Performance measurement

Evaluating performance is important because it not only

fosters employee growth through constructive feedback, but
also serves as a guide for raises, promotions and dismissals.

4.Incentive programs

Recognizing achievements and rewarding high performers

with bonuses and other perks is a proven way of motivating
employees to take ownership of business objectives.

5.Professional development

From orientation to advanced educational programs,

employee training serves to improve productivity, reduce
turnover and minimize supervisory needs.
RESPONSIBILITIES OF H.R.M
1.Staffing

Staffing a business or an individual department requires a

number of key steps. Hiring managers must first determine
how many new employees the budget can support, then find
and interview qualified candidates, and finally, make
selections and negotiate compensation.

2.Developing workplace policies

If it’s determined that a new or revised policy is needed, HR

professionals typically consult with executives and other
managers, write the supporting documentation and
communicate it to employees. Policies may cover vacations,
dress codes, disciplinary actions and other types of
workplace protocol.

3.Administering pay and benefits

In order to attract and retain talent, compensation must meet

industry standards and be comparable to what other
employees in similar roles are being paid. Creating such a
fair pay system requires careful consideration of an
employee’s years of service with the business, experience
level, education and skills.

4.Retaining talent

Compensation isn’t the only thing that retains talented

employees. HR managers may need to proactively address
issues with workplace environments, organizational culture
and relationships between employees and supervisors.
5.Training employees

When employees develop new skills, they tend to be more

productive and satisfied with their job. Some of the training
programs typically run by HR departments include team-
building activities, policy and ethics education, and on-the-
job instruction and skills, e.g. how to run a machine or
computer program.

6.Complying with regulations

Laws that affect the workplace – whether they’re related to

discrimination, health care or wages and hours – are
constantly evolving. HR professionals are required to keep
up with these changes and notify the rest of the organization
in support of compliance.

7.Maintaining safety

Safety in the workplace means protecting not just the

physical health of employees, but also their private
information. To minimize claims and data breaches, HR
must implement security measures and ensure that all
federal, state and union standards are met.
 Importance of Human Resource
Management

1. Management of strategy

The crucial aspect is the importance of human resource

management in any organization. HR managers
manage strategies to ensure that the company meets
its objectives. It also helps to contribute to the
corporate decision-making process. It includes
employee evaluations and predictions based on
business needs.

2. Development and training

HR managers play an important role in strengthening

employer-employee relationships. They contribute
significantly to training and development programs.
This is necessary for the importance of human resource
management. It helps employees to develop within the
company. It also improves employee satisfaction and
productivity.

3. Interaction among employees

HR managers are in charge of organizing activities,

events, and celebrations in the company. It provides
opportunities for team building. Furthermore, it
increases employee interaction and fosters a sense of
trust and respect among peers.
4. Analyze the advantages

HR managers strive to cut costs wherever possible in

recruitment and retention. HR professionals are well-
versed in employee benefits. They are likely to attract
quality candidates and keep existing employees. They
also conduct efficient negotiations with potential and
existing employees.

5. Keeping Liability Problems to a Minimum

When it comes to claims of unfair labour practices, HR

employee relations specialists reduce their liability.
They comprehend, investigate, and resolve workplace
issues that, if not addressed. It could continuously
become worse by putting the company in violation of
federal. And state anti-discrimination and harassment
laws.

6. Salaries and wages

Human Resource benefit experts create realistic

payment structures. They conduct in-depth wage and
salary surveys. It makes company wages competitive
with those in the neighbourhood. It is also for the same
industry or competing for employees with similar skills.
People need to ensure the payment costs align with the
organization’s

7. Maintaining a positive work environment

A positive work environment is essential for bringing

out the best in employees. HRM plays a vital role in
establishing a healthy and friendly work environment.
It guides to enhanced employee productivity and also
needs the importance of Human Resource
Management.
8. Resolving conflicts

HR is the department to contact if there is a

professional conflict between employees. They ensure
that issues and disputes are resolved by approaching
the problem objectively. It also helps in encouraging
effective communication to arrive at a solution.
Additionally, they assist employees in comprehending
various methods for developing practical work. It
creates relationships and not allowing personal
judgment to influence their actions.

9. Compliance

HR professionals keep track of the hiring process and

applicant logs. In comparison, they are ensuring that
the company complies with employment laws. They
complete paperwork showing that the company’s
employees are legally permitted to work anywhere in
the world. They also keep track of applicant flow and
write affirmative action plans. It also conducts
dissimilar impact analyses to ensure that companies
receive federal. And also, state government contracts
follow the rules.
Human Resource Management Process

HRM process is a strategic approach which helps the business

or the organization to achieve the competitive advantage by
maximizing the performance of employees. It indirectly
contributes achieving the goals of organization.Whereas,
Human Resource Management process is the term which
implies selecting, recruiting, training, appraisals of employees,
providing orientation, benefits, compensation, security & safety
in compliance with labor laws of the particular country or
government.

HRM Process includes the Followings :

1.Recruitment:

Recruitment is one of the most signifant part of the HRM

process. Recruitment process of a company depends on
the human resource management which issues recruitment
notifications through websites, newspapers & articles. In other
words, it is a process of inviting eligible candidates to join the
organization through various modes.
Recruitments are of two types, internal & external. Internal
recruitment is when the organization recruits candidates within
its workforce. Whereas, external recruitment process refers when
the company or organization recruits eligible candidates outside
its workforce by issuing notification.
2.Selection: Selection is the second step of the HRM process in
which, an organization selects candidates based on eligibility
criteria which includes knowing particular work & having
particular skill, education, attitude. All the candidates invited for
recruitment may not get selected since the recruitment process
includes various stages where one might get rejected. Selection
process often includes two to three stages, such as preliminary
interview, screening of applicants, employment tests, selection
interview etc.

3.Training: Training comes after selection to boost the

knowledge & updating the skill of the selected candidates for
the requirement of particular job role. Optimizing cost & helping
to maximize the efficiency of selected candidates is one of
the prime roles of human resource management.The Human
Resource Management Process helps to identify the training
needs, preparing the training programme & implementing it &
also preparing the learners.
Job training are of two types, on the job & off the job training.
On the job training is the training which is provided at the
workplace & with the equipments which are at the office itself. It
includes job rotation, coaching, job instruction through step by
step or by assigning particular work.

4.Assessing performance: Assessing performance of an

employee is conducted through comparing the efficiency of the
present employee & the standard which has already been set
previously by the organization itself.
5.Motivating: Motive is something that cause a person to act, in
most cases, motivating comes under the clause when a person
completes the task he will get a reward of fulfilment. The efficient
Human Resource Management Proess motivates & encourages
employees to reach their maximum efficiency by giving their cent
percent at work.
HRM often motivates employees to do better by giving
them Rewards and Recognition & other benefits, such as
different allowances & perks other than mentioned in the
payslip.
The rewards are often given in a non-financial way by giving best
employees recognition for the work they have done for the
company. Such as, annual or montly awards.

6.Compensating: Before compensating the employees for their

work, the HRM needs to assess the work carefully so that it
doesn’t negatively impact the financial budget of the
organization. The HRM process is the one segment of company
which assess the gravity of compensation & manages
compensation effectively, the management must be aware of the
labour laws of the country in compliance with international
labour organization.

7.Maintaining Labour Relations:

Maintaining proper & healthy relationship with the employees is

also a task of the HRM. The management develops the policies
related to employee relations and ensures the application of
company policies and procedures.
8. Healthy welfare & safety of employees:

Human Resource Management Process has to ensure proper

safety & healthy environment to work for the employees under
law. Such as ensuring proper cleanliness, drinking water, latrines
& urinals, spittoons, ventilation & temperature, disposal of waste
& effluents, lighting, first aid appliances, washing, canteen,
shelter, lunch room etcetera.

9. Compliance to labor laws:

The labour laws such as mines act or minimum wages act etc.
should be in accordance with the compliance. The HRM process
incorporates not only the national labour laws, but also the
international labour laws according to the industry as well as
economic standards.
 Case Study: Human Resource
Management at BMW

BMW (Bayerische Motoren Werke in German, or Bavarian

Motor Works in English) is basically a German company with
vast experience in the field of cars and was introduced in 1916.
This company spends more money on its human inputs to add
value and also its complex contribution of human resources
creates its competitive advantage. BMW’s specialized staff which
are able to offer superior quality of product and services in the
market with the customer experience. Human resources plays
important role in the BMW even in the time of recession as they
have invest on the human inputs. But this depends on the
financial condition and capabilities of the market as they had
invested in training development and recruitment of the new
management teams in their organisation. Earlier BMW was not
giving importance to its customer services and its staff only
focusing on its products and places for its expansion but later on
they realize that human resources and their management is
important for success in the market and competition. In BMW
the goal of human resources is to change and improve their
markets by using the new methods of production and materials
and organise them into the excellent way of customer servicing.
As always in BMW the goal of human resource management is
to add more value and improve the ratio of cost in the added
value of its car products. The main goal of HRM in BMW is to
make people more productive and creative for the long term
standing with them and when the management staff will be more
productive then the jobs get more skilled. In recession also this
company had constantly invested in the human resources and its
development.The main goal of HRM in BMW is to make people
more productive and creative for the long term standing with
them and when the management staff will be more productive
then the jobs get more skilled. In recession also this company
had constantly invested in the human resources and its
development.
Human Resource Strategies in
BMW Group
BMW is company which carries out very well planned strategies
in its organisation. In this organisation the human resource
strategy is applying to the whole organisation and BMW is
improving its products and making a proper customer
satisfaction by applying this strategy. This strategy is plays a very
vital role in the BMW organisation and its employees. It helps
them to innovate and create new products and services to their
customers and making its products available and delivered in all
areas where they are expanding their activities. Earlier BMW was
making their products wrongly and not understanding the
capabilities and needs of its customers as they were not giving
importance to its human resources so after sometime they
realize the exact meaning and importance of its resources so now
they can focus more on markets and its customers. BMW is now
making its organisation and its employees flexible so that they
can change according to the technology and the needs of its
customers in the market. Human resource strategies help them
to take the proper care of people issue for the long term by
providing best quality products and services, making long term
commitments and needs for the future. The aim of BMW in this
strategy is not to give them low cost products. Their main aim is
to provide the high capable workforce and making its products
unique in the competitive market. BMW is concerned with its
managers and the staff to make them more innovative and
developing their skills so that they can achieve a high task goals
and objectives.
The following are the Human resource strategies of BMW:

1.Recruitment and Selection:

The selection of the candidates is the first task and strategy of

BMW. This is the most important element of the BMW’s human
resource management. In this they have to select the candidate
who can match up the requirements of the job role. This includes
the person who can identify the market conditions, attract
customers to sell their products. The first process in this process
is to analyse the role and then they develop the person’s
specification of that job satisfaction and then he going to identify
the market condition to attract customers and then screening of
applications. In screening of applications they short list the
selected candidate whether to select or reject. After this they
conduct interviews, assessments and tests of the candidate to
decide select or reject. When candidate pass this interview then
they check the references in the resume of the candidate and
after above all they offer the person to work in the organisation.
BMW is following a very good selection technique with their clear
specifications and procedures in a long term.

2.Checking References:

After testing the candidate then the manager or the interviewer

has to check the references of the educational qualifications,
eligibility, work experience, licences and the special check on the
criminal records and health problems. After checking the
references they give the offer letter whether it conditional or
unconditional.
 3.Screening: In this step of recruitment and selection of BMW
human resource management the candidate have to fill the
application form which shows the subjective quality of the
person for the role and also helps in improving the quality of the
process and increase the consistency. In application form the
person has to fill up his bio data and other questions which show
the difference of higher and low level of performers.

4.Interviewing: Interviewing person who had applied for the

role is very important otherwise they can’t judge the mental and
physical capabilities of the candidate. This process is conducted
by the line managers of the BMW. In this interview they have long
discussions, questions about the previous experience, favorites.
This is the most commonly used technique in every multinational
organisation which helps the interviewer to make a judgement
about the candidate specialization for the job. They can judge
whether the person can satisfy the job or not? The questions in
this interview are properly listed to get specific information
about a standard of judgement or criticism and the candidate
get a score against the answers he had provided in this interview.

5.Testing: Another process followed by the BMW human

resource department is testing the ability and personality of the
candidate. In the ability test they test or measure the aptitudes
like knowledge, vocabulary, typing speed, awareness about the
products and accuracy of the candidate. On the other hand are
the personality tests which show the personal characteristics,
attitude, behavior and values of the candidate. In this they also
test the individual beliefs and the capability that how they deal
with problems in selling the products or their convincing and
marketing power in the organisation. In this process of testing
the candidates in BMW the ability tests are more consistent and
free from errors than the personality tests.
Training and Development
Once candidate pass the above steps of recruitment and
selection then he has to undergo from the training of the role
offers to him. This training process is essential to improve the
performance of the job which helps to develop their personal
and professional characteristics of candidate. This training
involves coaching and development of the professional
skills which are more efficient and effective in learning and
development of the individuals. The different types of training
are informal training, on the job or off the job training, product
and skills training, behavioral development and technical
training. They give the training to their employees for how to
develop different styles of learning, materials, design of the
products, and also look after their personality types. In this
training also involves use of heavy and expensive equipment and
machines and provide stipend in between their training. This
training on machines and equipment improves their
performance of the job. BMW teach their employees the easy
and small steps first and cover their health and security issues
and make their employees proud to be a part of this
organisation. In this training the line managers face the major
challenges to develop the confidence, personality and skills to
solve and find the solutions to the problems in the organisation.
Managers want their trainees to be creative, innovative,
productive and sufficient to operate at tactical and strategic level
in the company. They trained them to seek the responsibilities of
the task given to them and never be step back in any problems.
After the trainee complete the process of his training and
development of the specific role given to him then the line
managers give them a pat on their back and recognise
Performance Management

In BMW the performance of the managers and staff is initially

important to achieve the goals and objectives of the
organisation. Performance management is the essential and
organised process that carries the success and helps in
developing the capabilities and performance of the individual or
work team. The strategy of human resource management is to
develop the managers or leaders in the organisation who can
help their employees or subordinates to make their performance
effective and efficient. The managers are the only ones who can
manage the performance of the workers by understanding and
knowing what the employees expect from them and engage
them in each and every activity and ask them for feedback which
can improve their quality of performance in the organisation. The
BWM human resource management is working more on this
performance by enhancing them to learn their goals and
objectives and they recognise that there is a greater need for the
management to apply these performance tools in the company
through which they can develop their reviews, skills and
framework. In this management the employees are sharing their
views and ideas with their leaders and managers so that they can
find better ways measuring and improving the performance.
Employee Relations
In modern times relation with employees is essentially
important and as a part of human resource strategy. Involvement
and participation of both employee and managers in the
organisation shows how strong is the relation between them and
the difficulty of maintaining this relation for long time. In BMW
the managers are constantly involving with their employees in
several practices which directly improve their relations and
performance in the organisation. The main task of managers is
to maintain the employee relations so they can generate more
commitments for their work and contribute to their operation
effectively. The manager of the BMW focuses mainly on the
engagements and commitments of their workers to maintain
their employee relations. There are many benefits which BMW
provides to its employees when they join the company like
medical insurances, annual bonuses, dental and vision insurance,
holiday pay, vacation pay, life term insurances which include
accidental and death insurance, medical expenses, disability
insurance according to long and short term which will be fully
paid, personal day pay, sick leave, free education training and
development. These all benefits which BMW provides to its
employees play a crucial role in maintaining the relation with
employees. These benefits also help the organisation to improve
the performance and contribution of employees in the
production of work. The chief executives of BMW are rising the
salary and bonuses of their staff twice to the workers working in
other companies. BMW is the only major and first company who
had make the bonuses of assembly workers same as of the top
managers in the organisation. BMW is showing a great
contribution to improve the relations with the employees .
Personal Management
Another important strategy of human resource management in
BMW is the personal management. BMW HRM staff is managing
the employees in achieving the goals and objectives. In this
personal management system the managers manages the
education, qualification, training and experience of the
employees. This is the process of directing the employees in
achieving the long term and short term goals make them flexible
enough to deal with any changes in the situation with
intelligence and open frame of mind. Personal management in
BMW includes the following;

• Team Building: Team building also an important task in

personal management system in the organisation. The
managers have to build the teams according to the
experience and qualification of the workforce.
• Effective Meetings: Effective meeting means that the
managers have to conduct the interview for the staff and
the committee in which they have to focuses on the agenda
of meetings, goals and objectives to achieve to be planned
and prepared.
• Time management: The time management is the most
essential point of the personal management. They have to
manage the time to prepare and plan to complete their
tasks and responsibilities to achieve the goals of the
organisations.
• Decision Making: Decision making in the
management helps to solve the problems to reach their
goals and objectives and provide them alternatives for
executing their plans. In this managers gives right to their
subordinates to participate in decision making process
CASE STUDY OF HRM ON
McDONALDS VIOLATION

-The McDonald’s Company is a successful international

company that has faced allegations in the media in
being unethical and at the same time great praise for
actions certain parties have deemed as ethical. This is a
discussion of both sides of the argument that will show
that the positive benefits of the company outweigh the
various allegations and lawsuits that the company has
had to deal with in the past.on-mcdonalds-ethical-
standards-violations
-The hamburgers that the company sells are a
combination of different meats from animals in
different countries. It becomes difficult to trace
contaminated sources of meat when the final product
is from multiple sources. Instead of the company using
locally grown potatoes it uses genetically modified
potatoes (Gibson, 2008). The company has been
accused of impacting foreign cultures where the
company has set up restaurants such as India and
China.
-The people especially the young people will no longer
appreciate their traditional food or be interested in
having a cultural experience. They will want to just eat
McDonald’s food. The people will soon start adopting
the American culture in celebrating birthdays and other
special days. There are those who have been offended
by the company.

-International companies increase competition in the

host market leading to a reduction of prices of goods in
the market, improves quality of products through
competition and there is a higher selection of products
for the customer to choose from (Farrell, Remes &
Schulz, 2004).Other companies are forced to be efficient
in production and cut costs to be able to still earn a
profit from the lower prices in the market.

-Despite the company’s increasing financial success

locally and internationally, it has been noted that the
factory workers are still being paid at the minimum
wage.
Despite all these observations, there are
scholars or experts who have defended the company
and highlighted that the company is one of the most
ethical companies in the world
MacDonald’s Achievement In The Human
Resource Planning

Just like other business organizations, McDonalds want the

assistance of the staff for their daily activities. McDonalds
ensures their key role in the operations must be fulfilled by the
staff.

Thus, HRM strategy planning of mcdonalds also ensure that

their planning must match the need of selecting potential
employees not the ones that goes the against the roles and
posts. This builds the suitability of the employees and prevents
the company from number of problems such as

• High levels of poor productivity

• Employee job dissatisfaction
• high levels of absenteeism
• complains of the customer
• employee replacement
• Unpleasant feeling among the staff member
MacDonald’s Human Resource
Planning
Human resource planning is an essential part of the
management to hire the right people by using perfect training
and development programs for them. Therefore, ultimately it
helps in the achieving the MacDonald’s goals and vision. In order
to meet the McDonalds aims and objectives successfully, it is
the responsibility of the human resource management team to
identify the effective way and problems that company while
recruiting the best candidates and getting the proper solution.

Now, lets the objectives of Human resource planning in

Mcdonalds in order to ensure that organization has right staffing
method at the right time and for the right skills.

McDonalds Objectives Of Human Resource

Planning

• utilizing the best use of human resources

• aim to look forward for the problems with surplus staff
• building an efficiently flexible and well trained workers
• eliminating organisation’s dependency on the outside
recruitment agencies
 Conclusion
In conclusion, due many challenges that are facing
human resource departments, there is need for
organisations to adopt correct and workable policies
that will not only ensure they alleviate these challenges,
but also develop mechanisms of dealing with such
challenges in case they occur in the future.
The organisations has tried to be ethical in its operations
and where there have been complaints; it has changed
its diet and even compensated customers financially for
their wrongdoing. It is an international company that
has encouraged entrepreneurship all over the world. It
is therefore true it can be said to be one of the ethical
companies in the world.

BIBLIOGRAPHIES

www.google.com
www.shopify.com
www.aihr.com
www.techfunnel.com
www.bacancytechnology.com
 PROJECT REPORT

ON

“CASE STUDY OF BMW AND

MCDONALD’S”
In the fulfillment of the degree of

Master of Commerce

SESSION 2022-2023

SUBMITTED TO: SUBMITTED BY:

Prof. Paramjit Singh Kawalpreet Kaur
M.com-2
Class Roll No. 10413

SCHOOL OF COMMERCE AND MANAGEMENT

GENERAL SHIVDEV SINGH DIWAN GURBACHAN SINGH

KHALSA COLLEGE, PATIALA

 Declaration

I hereby declare that the research project entitled is “ A

STUDY OF HRM AND CASE STUDY OF BMW AND MCDONALDS”
is submitted by me under the supervision and guidance of
Prof. Paramjit Singh for the completion of degree of
Master of Commerce.
I further declare that the project is my original piece of work
and I am solely responsible for any omission and
commission of error.

Countersigned By:

Prof. Paramjit Singh SIMRANJEET SINGH

{School of Commerce & M.com- 2
Management} 10415
 Preface

It is a great opportunity for me to have the MASTER OF

COMMERCE in GSSDGS KHALSA COLLEGE,
PATIALA. In this degree I am submitting a project report
on the “ A STUDY OF HRM AND CASE STUDY OF BMW AND
MCDONALDS”
In the preparation of this project, I have precisely
demarcated all the important points. I have made my best
possible efforts to remove all the errors.
It is a great pleasure for me to thank all those valuables
uggestions that have been given to me by Prof. Paramjit
Singh. I must thank the almighty for this inspiration and
guidance as well as my parents, teachers who directed
me to complete this project file. Sincere efforts are being
made to provide valuable and useful information as
required in the project that will enrich the knowledge and
will benefit to the readers.