Volkswagen places a strong emphasis on internal consistency and global integration whilst allowing for necessary local differentiation and adaptation between locations. Over the last five to ten years in particular, the company has pushed a human resource management strategy across all locations which focuses on success for all employees, using the same strategies and are measured across the same key performance indicators globally. Specifically, the highly integrated global human resource operations across Volkswagen has been built through policies and procedures which focus on hiring and maintaining competent, committed employees, encourage employee promotion and build an inclusive culture across all branches worldwide (Volkswagen AG, 2020). In June 2016, Volkswagen CEO Matthias Müller outlined the company’s vision for the next decade labelled Together 2025+; the strategy outlines the company’s focus for the following 10 years including goals, objectives and specific strategies to achieve them (Capistrano Volkswagen, 2016). Of particular interest is the focus on leadership excellence and employee commitment, labelled as “Excellent Employer”.
Specific actions which aim for employee and leader success include realigning the organisation to a flat hierarchy, restructuring of management development and qualifications, systematisation of planning for leader succession and increasing diversity of management teams (Volkswagen AG, 2020). Together 2025+ focuses on four dimensions, all of which encompass the entire Volkswagen corporate brand, all subsidiary brands, geographical locations and management teams; it is a clear indication of the company’s focus on global integration of operations and, importantly, human resource management. So far, the strategy has been highly successful in improving employee empowerment and retention; the company now boasts an impressive 99.5% retention rate (Sergio & Rylova, 2018).
Volkswagen is primarily committed to the German Corporate Governance Code, which further ensures operational integration (Volkswagen AG, 2020). This framework and its guidelines ensure consistency and success in the management of the automaker’s functions, allowing growth and consistency in company value, consumer trust and employee satisfaction (Jurgens, 2002). These two factors indicate that Volkswagen emulates a global strategy in its multinational operations.
Volkswagen Group also maintains some flexibility in differentiation and local adaptation where it is required for success and competitiveness. Evidently, the automobile company must follow regulations and legal requirements, adapting vehicle design for different markets. A clear example of this is the change of steering wheel and associated function locations on the basis of left or right-hand traffic flow. Furthermore, certain vehicle models are produced and sold solely in countries within which they meet the needs and demands of the market. For example, the Volkswagen Atlas is an SUV model sold only in the US as it appeals to the trends for larger vehicles within plenty of room. Specifically, the vehicle is one of the largest mid-size Volkswagen models, containing seven seats, a length of over five metres and width of almost two metres; it fits perfectly in the US market for large family vehicles (Jungklaus, E. 2016). Despite the strong focus on global integration, Volkswagen group also demonstrates a strong ability to adapt product range and specifications on the basis of market demands in certain locations.
Overall, this suggests that the company adopts a global approach, but shifts towards a transnational approach to adapt the product range according to local demands.
Volkswagen utilises a vast array of human resource management functions in order to support this strategy. Each function provides Volkswagen with particular aspects which support the company to each global integration of operations and human resource management.
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