Strategic Hrm: Case Study of Luxury Cars

2417 Words Mar 20th, 2008 10 Pages
“Strategic HRM is the process of linking the HR function with the strategic objectives of the organization in order to improve performance.”(Bratton & Gold 2007)
Strategic Human Resource (SHRM) management is human resource management with a strategic edge, linking both business strategy with human resource (HR) strategy of an organization. Human resource management has become an integral part of almost all the companies all over the world. Human resource management concerns not only how peoples are managed but also how managing people could maximize the competitive advantage in that market sector (Tyson, 1991 p2). Business strategies are defined as a strategy of a particular business unit (Tyson 2000, p66). Human resource(HR) strategy is a
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For aligning group strategies and company objectives with daily team work the employees are involved in decision making process.

Compensation strategy: Volvo Group provides highly competitive salaries and pay-for-performance incentives for its employees. Employees who are highly qualified, Shows responsible attitudes and produces Extra effort in work are highly valued by Volvo Group. (http://www.volvo.com)

Case2: DAIMLERCHRYSLER GROUP DaimlerChrysler was founded in1998 when Mercedes-Benz manufacturer Daimler-Benz of Stuttgart, Germany bought the US-Based Crysler Corporation. It has gone on to become the world’s thirteenth largest car manufacturer. The Daimler Chrysler group is involve in manufacturing, distributing, and selling of wide range of automotive products, mainly passenger cars, vans, buses and trucks. The company’s primary operations are in US and Germany
Key Business Strategies:
DaimlerChrysler group follows innovation strategy. The base of innovation strategies is the most unique producer. DaimlerChrysler group stands out of competition by its superior innovation and technological leadership in the market. DaimlerChrysler group concentrates on innovations that are always customer centric. For this the Group encourage its employees to be creative, cooperative with each other, work in challenging environment, to be able to take risks and to be

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