Unit 3: Human Resources Management Case Study

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Introduction

Human resources management (HRM) refers to the process that focuses on attracting, managing and retaining talented employees within the firm. It is an accountability of HR manager to draft competent strategic policy framework which ensures high employee motivation, productivity and profitability. In the context of business unit, HRM is crucial for every company in successfully attaining its objective. There are several factors which impact HRM such as changes in law, organizational structure, HR polices and culture. This report is based on Volkswagen which has been stared in 1937 by the government of German with motive of producing low cost people car. Company‘s headquarter lies at Wolfsburg in germane and has been successful working over year. Volkswagen is having the market share of 6.7 percent and has an annual turnover of £247.79 billion in 2023 (Market share of Volkswagen, 2023.). Report will shed light on the HRM strategies and issues that has been faced by Volkswagen in its operations. Further, report also entails company’s HR strategies and evaluation of such practices to determining its effectiveness. It will also depict on strategies and measures through which talent management strategies of company could be improved. This report will also discuss on various recruitment, performance and employees management issues that has been faced by firm.

PART 1

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Comparing different HRM areas and their contribution to organisational performance

HRM is concentrated towards reducing employee’s turnover rate within firm. There are various types of HRM areas that need to be effectively managed by Volkswagen. This assists in reducing turner rate within the firm. Comparison between HRM areas of organization and its impact on Volkswagen’s performances are as follows:

Recruitment and staffing: This area of HRM is concentrated towards identifying, influencing and selecting the best candidate for the job position. Vacancy in Volkswagen has been fulfilled by promoting existing employees of employment exchange program. Company believes that the vacancy should be filled form employees within company and then it prefers external recruitment (AlHamad et al, 2022). This process needs to be effectively carrying out in firm as if the right person is not allocated to the appropriate job then the tasks will not be completed with utmost efficiency. Firm performance is impacted by these areas as excessive staffing results in increase cost and understaffing leads to inadequate results.

Compensation benefits: This area needs to be efficiently managed by HR as it determines satisfaction level of employees within the firm. These areas should be managed that helps in increasing satisfaction of worker in compiling with cost for firm. Volkswagen provides various financial and non-financial benefit to employees that includes salary, annul bonus, life assurance, providing car scheme etc. Organizational performance is highly impacted by the working of these areas as effective compensation pattern helps in retaining employees within the firm that eventually result in reducing the cost of operations.

Training and development: Attraction and retention of employees is highly depends on overall growth opportunity present within firm. Volkswagen is initiating dual training program that aim at improving graduates performance and low skilled employees to acquire new skills.

Employee’s relation: This session is related to improving interpersonal role of employers and employees that aim at providing motivation to workers (Alshammari, 2020). In order to improve employees relation firm focuses on listening to opinion, criticism and ideas. This helps in improving the satisfaction level of employees and assist in improving overall performance of company.

Labour law and legal compliance: Volkswagen should focus on compiling labour law and the legal compliances that has been impacting working of firm. Volkswagen has been concentrated towards fulfilling all legal laws and focused on regular monitoring legislation. This helps in determining changes and effective actions which could be undertaken for the same. It helps company in increasing reputation and goodwill by fulfilling all legal requirements that eventually results in improving performances.

Safety and health: This area of human resources management focuses on managing safety and health regulation within firm. Volkswagen is placing more emphasis on Occupational Safety and Health Act on regular basis and concentrates towards compiling with legislation formed by the committee. This assists in determining the changes that needs to be brought within firm for marinating safety measures. Company has appointed supervisors that focused towards mitigating hazard that aims at effective working. This helps in improving reputation and goodwill of firm that result in attracting and retaining employees within organization.

Examining strategic HRM and its role in changing business environment

Strategic HRM refers to continuous and long term process that involves and effective planning regarding various operations of human resources. This includes strategic planning, forming and communicating HR polices to employees, personnel development and performance management. As the business environment is changing continuously so it is necessary for the company to focus on implementing strategic HRM policies within the firm. Strategies HRM helps company in carrying out planning process that focus on determining the crucial objective or gaols of firm. In the current times, Volkswagen is facing issues related to the changes in government policies in relation to reducing carbon emission. This requires company to bring innovative ideas through which this could be achieved. Company has identified technique by which government objective could be fulfilled. This creates obligation for the firm to hire employees who can effectively work with that techniques. Once the objective has been determined company concentrates towards forming strategies by which employees could be attracted and selected within the firm.

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This step involves decision regarding recruitment, on boarding of employees, compensation criteria and performance management (Bilan et al, 2020). Under these strategies HRM focuses on the development of employees skills & techniques that helps in fulfilling the role & duties of personnel within the firm. Volkswagen has initiated various training program that assist employees in becoming familiar with rules & regulation of the company. In the changing business environment it is necessary for firm to determine the changes that are being occurring and evaluating employee’s performances on that basis. For determining effectiveness of employee’s performances, firm focus on using various performances management tools. Volkswagen used strategies HRM in measuring the performance of employee’s that will help in taking and formulating strategies that assists in working in dynamic environment.

Analysis on the role of retaining and recruiting employees from the labour market

It is very crucial for employers to attract and retain talent employees within the firm. Volkswagen has provided various types of benefits and incentives to employees that assist in retaining workers within firm. Firms’ concentration has been shifted towards retaining employees as it helps business in reducing its cost and assist in improving company’s reputation. Chieng, Arokiasamy and Kassim (2019) described that it is very crucial for the company to carry out effective recruiting process that enable firm in attracting and selecting right employee for appreciate place. Recruitment process will help in evaluating all skills and capability of individual before selecting that leads to acquiring the best candidate from available labour market. However Devi et al, (2021) described that recruitment process may create sense of competitiveness among existing employees as new employees may have better skills and techniques. It will eventually impact on the cultural of workplace and existing employees will develop stagnate behaviours leading to resist to adapt changes.

Gaim, Clegg and Cunha (2021) described that Volkswagen is operating in automobile industry that requires continuous innovation in its operations based on changing business environment. Recruiting will help in determine employees with specializes knowledge and assists in faster hiring of employees. This process will leads to promoting innovation and growth within organization that will eventually results in improving position of firm. On the other hand GyurákBabe?ová et al, (2020) believes that it is difficult for companies to hire and acquires employees that are having skills and quality according to job requirement. This involve providing additional training that will eventually results in increasing cost for company and impact on profitability position of firm.

Knezovi?, Bušatli? and Ri?i? (2020) claims that it is very important for organization to focus on retention of exiting employees as it assist in improving performance of employees. It is believed that it requires huge time and cost to acquire and select new employees who can complete the work with same efficiency as of present employees. Rather than incurring cost for acquiring new employees, firm should focus on retaining employees by providing various incentives. This will help company in achieving its objective with optimum utilization of existing resources and assists in reducing cost for firm. On the contrary Malik, Pereira, and Budhwar (2021) described that retaining decision should be undertake after analysing and evaluating performance of employees. If the employee that is not having adequate skills is also retain by providing additional financial benefit then results from retention process will not be adequately carrying out. This will increases cost for firm and optimum benefits could not be gained firm this process.

According to Moonesirust and Brown (2021) retention of employees results in creating hasty working environment for its employees. This has been achieved as individual that are working in the same organization will create a healthy working culture. Company with less employee’s turnover rate will create positive image in the industry and assist in improving overall position of firm. Whereas Otoo (2019) identified that employees may demand for more incentives than their actual capabilities which will create negative cultural within firm. This may create groupism within the firm that eventually results into the creating pressure on management to incur cost that impact budgeting of company.

Analysing the strengths and weaknesses of Volkswagen’s HRM

Volkswagen is more focused towards formulating various strategies that will assist effectively and efficiently in carrying out HRM within its company. All the HRM strategies that has adopted by firm are not providing equal and efficient benefits. Various strengths and weaknesses of company are as follows:

Strengths:

Effective training and development program: It has been identified that training & development session is initiated by Volkswagen. Through this, company is placing more emphasis on enhancing and developing employee’s skills. Sessions are carrying out after determining the existing needs of employees and then session has been conducted so that employee’s personal and professional needs could be fulfil.

Prominent recruitment policies: Company is having adequate polices of attracting and selecting employees within firm. This helps in getting efficient worker that assist in enhancing performance of organization (Riana et al, 2020). It has been identified that Volkswagen follows policy that is related to internal recruitment which provided opportunity for existing employers to enhance their skills and changes their work position.

Provides employees engagement work culture: It has been identified that Volkswagen has focused on providing communication channel that helps in effectively listening to opinion and ideas of employees. This provides a sense of engagement for employee’s that assists in improving their motivation level.

Maintaining healthy employee’s relation: HR department of Volkswagen focuses more on maintaining a healthy relationship with employees of the firm. This will help in improving their satisfaction level and aim at enhancing overall performance of workers. Company is focusing on providing regular feedback to employees that assists them in improving efficiency and eventually results in development of workers.

Weaknesses:

Hire employees on contractual basis: The employees in Volkswagen are mainly hiring on contractual basis which will help in reducing the cost for firm. This creates feeling of discrimination among employees as contractual workers are not provided with training session as they will not contribute for organizational goals in long term.

Inadequate performance management: Volkswagen did not focus on implementing an adequate and efficient method for measuring the performance of employees. This has been identified that goals and objective which need to be achieved by employee has not been set effectively. This leads to inefficiency of manager in achieving such goals and objective that result in inappropriate results.

Issue in managing diversity: Company has appointed workers that are having diversity in their operations. Company has not focussing towards conducting events that assist in developing understanding of different cultural and beliefs. This creates challenges for company in maintaining effective employee’s relation and increases scope of conflict within firm.

Internal and external factors influencing HRM decision within Volkswagen

There are various types of internal and external factors that are impacting HRM decision within firm. Various internal and external factors impacting human resources management decision of Volkswagen are as follows:

Organisational structure: Volkswagen follows the top to bottom organizational structure which indicates that policies are formed by the top management and work need to follow it in same manner. HRM strategies should formulate in compilation with organisational structure as misfit among both results in ineffective management within firm.

HR policies: The policy that has been formed within firm that impact working of HRM and decision making within organization (Stahl et al, 2020). As Hr polices of Volkswagen is targeting towards providing flexibility to employees in their working hours which provide guideline for HR department to take decision accordingly.

 Culture: Decision of business entity is highly influenced and impacted by culture of the organization. As culture of Volkswagen is promoting inclusion and engagement of employees, decision will be taken that aiming at enhancing effective communication and imporving employees' relations.

External factors impacting HRM decision:

These are the macro environment factors that impact the decision making process of company in relation to managing human resources. Various external factors impacting HRM are as follows:

Economic factors: These factors involve determining inflation and recession’s rate in the country. As UK is having high inflation rate this imply that company is unable to pay high salaries and benefits to its workers. This requires company to indentify employees that are having skill and able to work in particular salaries range.

Legal factors: This includes various rules, regulation, laws and legislation that are formed by government of country. As Volkswagen operates in a dynamic environment, it is necessary for company to determine all the changes that are occurring so that Hr policies could be formulated accordingly. Minimum wages rate policy has been changed that includes increases in minimum wage rate to 11.44 pound (Minimum Wage rate in UK, 2023). HR department needs to address these changes in their operation for effectively working of firm.

Changes in technology: The decision in HR department is highly impacted by changes in technology as there is constant up gradation in technology through which car has been produced. This requires HR department to decide on training sessions that assists in developing new skills. It will also includes decision regarding hiring of new employees that can effectively work with new technology.

Impact of such factors on organizational development

Organization is highly impacted by internal and external factors that are impacting operations of firm. It has been identified that organizational structures helps in determining authority and role of human resources within firm. Adequately taking decision regarding employees and managing them according to organizational structures helps in improving efficiency of employees. HR polices and culture of organization helps in enhancing satisfaction level of employees within firm that assists in development of firm. Externals factors involve all factors that are not in control of firm but create huge impact on company’s operations. It has been determined that economic factors have a huge impact on overall budgeting of firm. HR department plays a crucial role in determining in managing salaries and cost of firm and helps in effectively adjusting to economic condition. Legal and technology environment provided information regarding changes that company need to inculcate in their operation. This will help firm in adapt to changing environment and assists in overall development of business entity.

PART 2

Job description for marketing manager

  • JOB DESCRIPTION
  • (Marketing Manager)

Brief description

The role of marketing managers includes determining appropriate marketing strategies that assist in attaining organizational objective. This position focused towards creating demand for company’s product and attracting large number of customer. It also focuses towards maximizing profits of firm by adopting marketing and pricing strategies that helps in lowering cost of operation and helps increasing satisfactions level for costumers.

Tasks

  • Conducting strategies planning that includes setting long term marketing objective and visor.
  • Carrying out market research that includes identification of trends and competitors.
  • Managing crisis’ in communication and reputation of brand.
  • Synchronize and planning regarding marketing activities, coordinating with manufacturer, production manager and advertiser for promoting services and product.
  • Managing and forecasting budget for marketing and allocating resources optimally.
  • Determine market characteristics and trend and evaluate marketing strategies to identify its effectiveness
  • Focusing on enhancing communication channel and providing attracting content to influence more customers.
  • Providing response to customer query and aim at enhancing satisfaction of consumers.

Person specification

Qualifications
  • A 4-year bachelor’s degree along with two years of relevant training or experience.
  • Ability to evaluate markets and identify trends and patterns.
  • Capable of influencing others to change their purchasing decisions.
  • Strong logical and reasoning skills, with experience in developing strategies or policies.
Competency & Capabilities
  • Influential communication skills
  • Effective leadership
  • Excellent verbal and written communication
  • Strong planning and organisational skills
  • Confidence and conviction
  • Creativity
  • Problem-solving abilities
  • Effective presentation skills

Recruitment process to be used by Volkswagen in upcoming years

Recruitment process

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In current time, Volkswagen is focus towards hiring employees through internal sources and after that preference is provided to external sources. This creates issue for acquiring more talented employees within firm and does not provide much scope for innovation within its operations. In the current situation, Volkswagen should focus on adopting recruitment strategies that helps in attracting effective and efficient employees. Under these strategies, hiring requirement should be determined after evaluating the role and position that are vacant and number of existing employees within firm. This will help in determining exact number of employees that company need to hire and how many existing worker could occupy that position. After identify type and number of job vacant in firm, managers should focus on preparing a job description that contains information regarding task and duties that an individual need to undertake. This also include minimum qualification that candidate should be acquired for been selected for job position.

After creating job description, Volkswagen should provide all information on the website of the company and other recruitment agency (Tej et al, 2021). This will help in creating awareness regarding vacancy and assist in attracting potential candidate. After this process, HR should evaluate resume and shortlist candidate that are attaining all qualification. Candidate should be invited for interview that helps in understanding intelligence level of individuals. Employees should be evaluated based on their performance and most suitable candidate should be provided with job offers. This contains information regarding job role, salary, incentives, leave pattern and joining date. Once the job offer has been provided, orientation and induction training will be conducted that aim at creating awareness regarding their position and duties.

Performance management and rewards system of Volkswagen

Performance management refer to monitoring and controlling performance of employee by its supervisor that assist in attaining objective of company. This includes providing accurate and timely feedback to employees which will help in enhancing performance of employees. This involves evaluating performance of employees and providing adequate incentive and benefits based on their performances (Performance management strategies of Volkswagen, 2020). Company use an effective communication channel that aim at the provided rule and regulation of company to its employees. This helps them in gaining awareness regarding company’s operation and task which they need to accomplish. Training and development session are regularly providing to employees that assist them in working in direction that help in achieving goals of company. Superior in company monitors and supervises performance of employees and provided regular feed back that assist in enhancing employees’ performances.

The remuneration and rewards system of Volkswagen is compromise of financial and non financial perks for motivating employees of the company. Financial benefits include basis salary that has been provided on monthly basis. This also includes the performances related rewards that emphasis on additional pay based on efficiency of employees. It has been identified that employees should be provided with other incentive and non financial benefits that helps in enhancing satisfaction level of employees. Company has provided various non financial benefits that include conducting events and program that aim at providing appreciation and rewards to employees which helps in improving satisfaction level of employees that eventually results in lowering employees’ turnover. It has been determined that company provided some additional benefits that include health insurance, transport facilities, flexible working hour’s option and education facilities (Turner et al, 2019). This support firm in improving motivation level of employee’s that results in enhancing performance of employees. It has been identified that 83% of the total employees in company are satisfied and recommended other to work the company. This indicates the efficiency and effectiveness of reward strategies of Volkswagen and its efficiency in rating employs within firm.

Review on Volkswagen policies of employees’ relation and engagement and recommendation to improve strategies

Each firm focuses on improving relation width its employees that assist in enhancing motivation level and eventually result in retention of workers within firm. Volkswagen follows the strategies that involve identifying needs and preference of costumer and provide benefits accordingly which will help in attaining their personal goals with organizational objectives. To maintaining healthy relation trainings and development session are conducted that involve session relating to identifying needs of each employees and provided training that help them in achieving their personal goals. Employers focus on providing feedback to employees that help company in employees in determining changes which they need to bring in their performances. This helps then in enhancing their performance and eventually results in gaining trust and confidence of employer. 77% of employees in Volkswagen has satisfied with polices of company regarding employees engagement (Zehir, Karabo?a and Ba?ar, 2020). It has been identified that democratic leadership style has been used in the company that aims at providing opportunity to employees to take decision at some extent which has been finally guided by superiors. This indicates company is working effectively towards involving employees in decision making process leading to improving satisfaction level of employees.

Unit 3: Human Resources Management Case Study
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Recommendation to improve employee’s engagement and relation

Company is providing various benefits and working efficiently towards improving engagement and relation with its employees. But there is various other measures that can be implementing by firm that help in improving interpersonal relation with employees. Some of the measures are as follows;

Company should focus towards providing support to mental and physical heath. This involve determine issue that has been faced by employees which is impacting his physical and metal health. This help company in establishing measures that will help in improving his health status that ventrally results in better performances.

Conducting various volunteer and outdoor activities. Firm should plan outdoor activities that help in improving managerial skills for individual. This will assist in developing an efficient and effective interpersonal relation between employer’s employees.

Survey should be carrying out on the regular basis within the firm. This will help firm in identified satisfaction level of employees that eventually results in determent measurers that can be useful in enacting motivation level of individual.

Manager should focus on providing appreciation and recognition to employees which will help in stimulating them for enhancing their performances.

An effective communication channel should be established within firm that will assists in sharing issue of employees easily. This will help company in identified ways by which issues can be resolves that eventually results in reducing scope of conflict within firm.

CONCLUSION

By summing up this report, it has been articulated that recruitment, retention and compensation strategies has huge impact on employee performance. Providing accurate wages and salaries helps increasing satisfaction of employees resulting in enhancing overall performance of workers. It can be summarized that that Volkswagen should conduct strategic HRM that assist in determining changes occurs in business environment and form strategies to reduces its impact. Further, it can be stated that appropriate recruitment process should be adopted that helps in selecting right individual for right job. It can be seen in the report that appropriate benefits and incentives should be provided that assist in lowering employee’s turnover rate. Effective training program, recruitment polices and promoting employee’s engagement is strength of Volkswagen HRM. Besides this, it can be inferred that Volkswagen has been hiring employees on contractual basis and are incapable of managing diversity that creates issue in effective HRM of company. Volkswagen is having adequate reward system that compromise of financial as well as non financial incentive. Mangers in Volkswagen are focused towards providing regular feedback to employees that assist in adequate performance management. It has been determined that outdoor activities and volunteer events should be conducted by firm that assist in enhancing employee’s engagement.

References

Books and Journals

  • AlHamad, A., Alshurideh, M., Alomari, K., Kurdi, B., Alzoubi, H., Hamouche, S. and Al-Hawary, S., 2022. The effect of electronic human resources management on organizational health of telecommuni-cations companies in Jordan. International Journal of Data and Network Science, 6(2), pp.429-438.
  • Alshammari, A.A., 2020. The impact of human resource management practices, organizational learning, organizational culture and knowledge management capabilities on organizational performance in Saudi organizations: a conceptual framework. Revista Argentina de ClínicaPsicológica, 29(4), p.714.
  • Bilan, Y., Mishchuk, H., Roshchyk, I. and Joshi, O., 2020. Hiring and retaining skilled employees in SMEs: problems in human resource practices and links with organizational success. Business: Theory and Practice, 21(2), pp.780-791.
  • Chieng, H.P., Arokiasamy, L. and Kassim, K.A.A., 2019. Human resource management practices and their impact on construction organizational performance. Global Business and Management Research, 11(1), pp.392-406.
  • Devi, R., Goodman, C., Dalkin, S., Bate, A., Wright, J., Jones, L. and Spilsbury, K., 2021. Attracting, recruiting and retaining nurses and care workers working in care homes: the need for a nuanced understanding informed by evidence and theory. Age and ageing, 50(1), pp.65-67.
  • Gaim, M., Clegg, S. and Cunha, M.P.E., 2021. Managing impressions rather than emissions: Volkswagen and the false mastery of paradox. Organization Studies, 42(6), pp.949-970.
  • GyurákBabe?ová, Z., Stare?ek, A., Koltnerová, K. and Cagá?ová, D., 2020. Perceived organizational performance in recruiting and retaining employees with respect to different generational groups of employees and sustainable human resource management. Sustainability, 12(2), p.574.
  • Knezovi?, E., Bušatli?, S. and Ri?i?, O., 2020. Strategic human resource management in small and medium enterprises. International Journal of Human Resources Development and Management, 20(2), pp.114-139.
  • Malik, A., Pereira, V. and Budhwar, P., 2021. HRM in the global information technology (IT) industry: Towards multivergent configurations in strategic business partnerships. Human Resource Management Review, 31(3), p.100743.
  • Moonesirust, E. and Brown, A.D., 2021. Company towns and the governmentality of desired identities. Human Relations, 74(4), pp.502-526.
  • Otoo, F.N.K., 2019. Human resource management (HRM) practices and organizational performance: The mediating role of employee competencies. Employee Relations: The International Journal, 41(5), pp.949-970.
  • Riana, I.G., Suparna, G., Suwandana, I.G.M., Kot, S. and Rajiani, I., 2020. Human resource management in promoting innovation and organizational performance. Problems and Perspectives in Management, 18(1), p.107.
  • Stahl, G.K., Brewster, C.J., Collings, D.G. and Hajro, A., 2020. Enhancing the role of human resource management in corporate sustainability and social responsibility: A multi-stakeholder, multidimensional approach to HRM. Human Resource Management Review, 30(3), p.100708.
  • Tej, J., Vagaš, M., Ali Taha, V., Škerháková, V. and Harni?árová, M., 2021. Examining HRM practices in relation to the retention and commitment of talented employees. Sustainability, 13(24), p.13923.
  • Turner, M.R., McIntosh, T., Reid, S.W. and Buckley, M.R., 2019. Corporate implementation of socially controversial CSR initiatives: Implications for human resource management. Human Resource Management Review, 29(1), pp.125-136.
  • Zehir, C., Karabo?a, T. and Ba?ar, D., 2020. The transformation of human resource management and its impact on overall business performance: big data analytics and AI technologies in strategic HRM. Digital Business Strategies in Blockchain Ecosystems: Transformational Design and Future of Global Business, pp.265-279.
  • Online
  • Market share of Volkswagen. 2023. Online Available through:<https://www.statista.com/topics/1574/volkswagen/#:~:text=The%20Volkswagen%20Group%20is%20one,only%20to%20Japan%2Dbased%20Toyota..>
  • Minimum Wage rate in UK. 2023. Online Available through:< https://www.acas.org.uk/national-minimum-wage-entitlement>
  • Performance management strategies of Volkswagen. 2020. Online Available through:< https://annualreport2020.volkswagenag.com/group-management-report/internal-management-system-and-kpis.html>
  • Recruitment process of Volkswagen. 2023. Online Available through:<https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.shrofile.com%2Fblog%2Frecruitment-process%2F&psig=AOvVaw3XmLBHycs37Xv1X9QtxTVp&ust=1705486504189000&source=images&cd=vfe&opi=89978449&ved=0CBMQjhxqFwoTCJCvzKLX4YMDFQAAAAAdAAAAABAD>

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