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IBU5HRM Human Resource Management In A Global Economy

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  • Course Code: IBU5HRM
  • University: La Trobe University
  • Country: Australia



You are an International Human Resource Management (HRM) Consultant. You have been given a contract to go into the organisation and it will be your responsibility to respond to the following three questions:

As an International Human Resource Management Consultant what are the issues? In this question you need to explain what the issues are in the case study.

How should Human Resource Management deal with the issues in the case? You need to explain how HRM should ensure the issues are not repeated, taking into consideration the international environment.

What is your plan to present to the organisation? You need to make a solid recommendation to the company and present them with an implementation plan to eliminate the issues.

Case Study: No Name’ Aircraft 

CEO Adam O’Meara of ‘No Name’ Aircraft has become increasingly concerned about organisational profits. He’s worried that a company takeover is imminent. O’Meara realises he needs to maximise shareholders’ return on investment and obtain a high share price or this international company may be at risk and, of course, this means his job could well be on the line. ‘No Name’ operates out of Australia and has subsidiaries in three countries – China, Singapore and Vietnam. ‘No Name’ build and sell aircraft to 50 countries around the world. Numerous parts of the aircraft are produced in China and Vietnam and most of the design engineers operate out of Singapore. Aircraft are assembled in Singapore and also Australia.


‘No Name’ home country (Australian) teams are not working well and there is a communication breakdown between integrated teams and across teams and management. The culture at ‘No Name’ has developed into one that is very negative and workers have adopted the mantra ‘near enough is good enough’. Staff give the impression they would resist any attempt to make change. This kind of culture extends to communications between Headquarters and the subsidiaries.

One of the home country management teams has identified quality as one of the major problems at ‘No Name’ and this is directly related to parts from China and Vietnam. Aircraft require small to large modifications even after they have been delivered to customers. Customers, both government and non-government, are complaining about the lack of quality, once very important to ‘No Name’. A number of stakeholders have sent O’Meara letters warning that unless quality is improved within six months, they will withhold partial payments and some are quoting percentages – certain customers say they will withhold 100 per cent and others are quoting 50 per cent.

One supervisor at ‘No Name’ is responsible for a sub-design team of 9 people, another is responsible for 11 people who are the wire harness assembly team, and another team of 6 sets the harnesses in place in the aircraft. These are just three of over 50 teams that make up the assembly of an aircraft. There is no integration across the teams. Ben Brown, a member of the wire harness assembly team, notes ‘…..the other teams make it really difficult for us to complete our job. We all get in each other’s way. There’s a lot of resentment’.

The teams work to specifications for their area only, and working relationships within and across teams are suffering. The communications both laterally and horizontally are compromised and staff members are complaining about not receiving adequate instructions. Adam O’Meara is worried so he has called upon an internal group of executives to advise him.

Line managers in Australia are responsible for communications between Headquarters and the subsidiaries. However, O’Meara is constantly receiving emails from China, Singapore and Vietnam seeking clarification on numerous points.

Diversity management

Diversity management at ‘No Name’ is confined to a simple policy that says everyone in the organisation needs to be respectful of race, age, ethnicity, gender, sexual orientation, physical abilities, religious beliefs and other philosophies.

There are issues at ‘No Name’ related to embracing the rich value of working with diverse people. Firstly, at headquarters there is an intolerance towards working with employees from different generations. Senior staff are intolerant of working with apprentices and working relationships are strained. Secondly, there is a lack of recruitment of people with disabilities in China. Managers are actively ignoring job applications of people with disabilities, even when their skills are above and beyond other candidates. O’Meara fears repercussions of this recruitment discrimination in the form of legal action from rejected candidates with a disability.

Human Resources (HR) does not have a clear set of practices to help employees understand each other. Clearly, the interactions amongst staff are influenced by the perceptions of each other but HR does not appear to have considered the importance of how people perceive each other. At ‘No Name’, employees need to better understand each other, to have effective communication and to value the diversity that exists throughout the company.

Diversity needs to provide practices that involve an appreciation of other cultures and ways of knowing more about people within headquarters, each subsidiary and across the subsidiaries. Practices have to ensure there is no organisational discrimination so that people can work together in harmony. ‘No Name’ needs to realise that managing diversity can create a competitive advantage and be of benefit to a number of different areas of the organisation.

International performance management

There are numerous performance management issues across ‘No Name’. International performance is closely connected to international performance appraisals but these are lacking at ‘No Name’. Performance reviews are conducted by HR in Australia but there are no performance reviews conducted at any of the subsidiaries. There is no formal performance appraisal process for expatriates.

Headquarters takes a very ad hoc approach and does not take into consideration the economic factors that impact on business targets. One manager, Frank Collins was heard to say ‘we are under so much pressure in Australia because of high costs and even higher expectations’.

At headquarters decisions are made that affect each of the subsidiaries. For instance, headquarters will issue a decision and make an order for Singapore to produce a certain quota of parts only to find out there is a surplus of the same parts in Australia. Clearly, the implementation of decisions for the subsidiaries result in conflicting performance outcomes.

Fundamentally, there is no policy that underpins performance management at ‘No Name’. There are no clear measures. O’Meara told the HR Manager ‘It’s time we had better performance measures…..we need to measure to manage. Someone will need to travel to China, Singapore and Vietnam and make sure we have consistency…..of course, we need to take into consideration culture and local practices’.

Training and development

As a function of HR, training and development should be concerned with every aspect of the organisation’s activities. Expatriate training for those leaving Australia to work in China, Singapore or Vietnam is limited to half a day. HR refers staff to their online resources and assumes that every person has the same needs when they agree to work in another country.

There are no feedback avenues for employees to comment on the effectiveness of the expatriate training.

One employee, a mechanical engineer Alice Morgan, previously commented about her move to Singapore ‘there is no training available to help you integrate into your new surroundings once you arrive. People do things differently here and it took me a long time to get used to with no training’

The level of performance at ‘No Name’ indicates there’s a very strong rationale for focusing more on training and development across the organisation.

There is no systematic workforce planning and management development programs at ‘No Name’. Management development programs within an organisation work to internally identify and recruit potential managers, and develop their knowledge and skills through career development plans to meet organisational needs. This ensures a clear and effective succession plan for all key management roles. Employees are unaware of their career prospects with the company as career development plans are not utilised. Senior management do not develop junior employees to take over their role for fear of being sidelined for promotion. This lack of professional development has meant that a number of key employees earmarked for promotion have been poached by other companies.`



One of the core resources in an organization is unquestionably human resources. It is regarded as the management structure which improves decisions related to the management of people engaged to the organization starting from employee remuneration, performance management, job analysis, team development, communication and maintaining workplace diversity. According to Armstrong and Taylor (2014), in the current competitive business setting, modern organizations must develop as knowledge-based and workforce must attain integration among teams, cultural diversity, enhance level of performance management, and identify strategic functions to increase employee engagement to increase the performance of the organization. Jackson, Schuler and Jiang (2014) have stated that rapid expansion in technology, communication network along with multiplying skills have transformed communication and diversity within and among the organisational settings. Meanwhile, Brewster, Chung and Sparrow (2016)have observed that companies which operate at global level tend to encounter issues with cultural diversity along with a significant lack of communication among teams along with headquarters and its subsidiaries. The following paper will focus on the case of ‘No Name’ Aircraft with headquarter in Australia has subsidiaries in China, Singapore and Vietnam and sell aircraft to 50 other countries across the world. Additionally, the report will evaluate areas where “No Name’ has been facing challenges and provide relevant strategies to enable the company improve performance management and gain competitive advantages in the market.

Discussion: ‘No Name’ Aircraft facing Communication Issues among teams 

Communication has been regarded as the lifeblood of any organization and without it desired goals and objectives cannot be accomplished. However, Paillé et al. (2014) have stated that organizations and employees exhibit lack of capability to learn, implement good communication practices. It has been known that organizational ‘grapevine’ has been regarded as one of the universal and highly reliable forms of communication observed at work (Armstrong  & Taylor, 2014). ‘No Name’ Aircraft currently has been facing certain issues with integration of teams as employees have adopted the strategy ‘near enough is good enough’. Such a breakdown between integrated teams and across teams and management has been consequential for employees to exhibit certain resistance towards any form of change within the organization. Mathieu et al. (2014) at this juncture have stated that bad communication practices tend to cause significant amount of work challenges. Furthermore, ‘No Name’ Aircraft’s lack of support to coordinated efforts, innovation and development have led the company to experience instability between employees working in headquarter and subsidiaries. These issues have undoubtedly raised the concerns of No Name’s CEO Adam O’Meara about organizational revenues and profits.


‘No Name’ Aircraft facing issues with Cultural Diversity

Organizations across the world have been considering cultural diversity within organization not as a negative aspect but highly essential to facilitate organizational track for credit. However, in the view of Brewster, Chung and Sparrow (2016), maintaining proper cultural diversity within the company has several challenges specifically to manage employees with diverse cultural backgrounds. Similar to the issues of Cultural Diversity, ‘No Name’ Aircraft has been facing immense challenges to retain the diverse workforce. Though the company’s policy relies on to be considerate towards race, age, ethnicity, gender, sexual orientation, physical abilities, religious beliefs and other philosophy, CEO has got bothered in embracing rich value of working with diverse people. At this stage, empirical evidence has proposed that many employees and managers view diversity management as being equal in comprising equal opportunity for any individual to enter the organization. However, according to Vangen and Winchester (2014), regardless of the increasing rate of financial support along with simplifying legal provisions related to recruiting people with disabilities, opportunities to heighten employment of individuals with certain form of disabilities must be determined with utmost significance. On the other hand, reports of Greene and Kirton (2015) have stated that companies and managers who do not support recruitment of disabled individuals has been persuaded by significant lack of avenues  of employing such people and unproductive problems connected with hiring them. Similarly, few HR managers of ‘No Name’ aircraft have been continuously disregarding application of people with disabilities, even when their skills and expertise align with the job role. Such an unethical approach of HR managers have raised the concerns of O’Meara as such conviction prevent them from contributing to the information flow and in trainings further resulting to reduced efficiency and performance in the market.

‘No Name’ Aircraft facing challenges with Performance Management 

 Implementing a successful and objective performance management process essentially enables employers to communicate demands and results to employees. Bednall, Sanders and Runhaar (2014) have stated that such effective performance management system tends to drive higher level of performance from them and aid them in mitigating challenges in improving a performance management process. However in the case of ‘No Name’, the company has been facing serious issues in conducting successful performance appraisals. Though O’Meara has noticed performance reviews being conducted by HR in Australia but there cannot be  found any type of performance reviews conducted at any of the subsidiaries of ‘No Name ‘with no formal performance appraisal process in favour of emigrants. Bias and favouritism have been considered to be highly critical in the performance review process of the company. Mathieu et al. (2014) have mentioned that any form of employee favouritism tend to manipulate the objectivity of appraisal thus has been highly crucial to ensure that HR managers must disregard such forms of biasness in order to avoid inconsistencies among diverse employees that is the key element for acquiring most efficiencies from appraisal. Thus weakened performance management has been rapidly eroding employee engagement as majority of employees have been showing uncertainty regarding level of efforts and contribution they are giving to the company. Furthermore, Amin et al. (2014) have stated that as lack or unfair performance management policies tend to pose challenges for workers to develop high level of uncertainty related to the future of the company thus resulting to lower motivation and high employee attrition.


Human Resource Strategies in eliminating aforementioned issues faced by ‘No Name’ Aircraft

Workplace diversity

Workplace diversity supports the reality that people differ in diverse ways, observable or non observable, disability, sexual orientation and cultural background. Works of Vangen and Winchester (2014) have revealed that cross-cultural and multicultural workforce has been identified as a universal thread not only in workplaces functioning in western financial systems but further in organizations at a global level. However, there can be witnessed several companies like No-Name Aircraft who have been showing reluctance in promoting disabled employees and ethnic minorities. However, studies of authors have found an extensive recognition of the value of workforce diversity. Furthermore, empirical evidence has explored that effective diversity management tend to profit through bottom line returns. However, as per Greene and Kirton (2015), despite several decades of equality legislation along with confirmed commitment towards equal opportunities, there can be seen systematic discrimination in the staffing and selection process. Thus organizations which have been lacking in proper implementation of employment policies and practices must ensuring efficient developmental chances, reduction of work-family conflict as well as employing and mentoring disadvantaged groups. Alvesson and Sveningsson (2015) have found that industries which have been highly accessible to disabled employees involve education and health services whereas the aviation sector has been recorded to employ an insignificant rate of working disabled individuals. Thus, to eliminate the perceived obstacles of participation and further raise the level of visibility of employment prospects for life success and employment within the aviation sector for disabled individuals No-Name Aircraft must partner with non-profit organizations to successfully represent disabled individuals to the aviation sector of Australia. Such exposures however can be accomplished by providing the prospects for participants to earn private navigator correspondent as well as airframe and power plant.

One of the key functions in disability management in line with more inclusive diversity management ought to be acquired by auditing that is an evaluation of company and its behaviour that has been identified as an effective diagnostic tool. Such a tool according to Dietz et al. (2014), facilitate the establishment of enterprise competence with its inadequacies and strategize directions of future development. In recent times, the most prominent audits executed at companies tend to deal with employee satisfaction, organizational culture, and quality excellence as well as performance management. The growing concern of O’Meara regarding No-Name’s HR managers’ unethical behaviour clearly has highlighted his inability of progressing about the evaluation of the organization and actions as well as strategies which would suitably fit the company’s strategy, demands and expectations of stakeholders as well as legal requisites. Drawing application from the case of No-Name Ceschi, Dorofeeva and Sartori (2014) have stated that HR managers in most of cross-cultural companies exhibit high level of incompetence in acknowledging skills and knowledge of disabled individuals. Thus, analysis of the knowledge of HR personnel regarding the statutory functioning time of individuals with disabilities revealed that substantial proportion of them have developed awareness of special rights and authorities which disabled employees have in the workplace regardless of the fact that their employer does not employ the disabled (Liu et al., 2015). Thus No-Name Aircraft by implementing designed tool would act as a source of inspiration to other nations struggling with economic performance of people with disabilities on one hand and considerable reluctance of employers to recruit them.


Team Integration in ‘No Name’ Aircraft

Shaout and Yousif (2014) have stated that one of the issues which several companies have been encountering is the implementation of team work vis-à-vis organizational performance without considering the structural characteristics of teams and the level of collaboration they have amongst them. Furthermore, it has been regarded as suitable to categorize teams in a highly self-regulating matrix whereby at one matrix would be positioned group of workers known as teams. However as per studies of Pro (2019), self-leading teams must be positioned whose members comprise of large range of responsibilities along with elevated level of interdependence and identify with team targets. Furthermore, it has been observed that substantial amount of researches fail to seek ways in which lack of integration, communication and collaboration tends to change team performance over time. Such immense deficit of group effort and cooperation rapidly reduces performance of the company. Evaluating the case of ‘No-Name’ it can has been identified that critical collapse of communication among teams as well as company’s headquarter office and subsidiaries has condensed its performance level and increased level of output. For instance, No-Name Aircraft necessitate small to large adaptations even after the delivery of their products to customers. However, several customers from government and non-government have been posing allegations regarding the lack of quality of the company. Thus, establishment of successful team performance link must be considered as a vital indicator of team maturity which can be highly indispensible. In addition, Ceschi, Dorofeeva and Sartori (2014) have mentioned that effective communication within team must not be considered in segregation but as a single team in an organizational system which if suitably configured can cultivate wide range of advantages by the means of communicative and collectively strengthening effects. According to Dietz et al. (2014), such mechanism primarily incorporate employee involvement policies, knowledge development programmes along with forms of sharing. Accordingly, interaction between teamwork and proper collaboration must further be evaluated in order to give companies enhanced consideration of the way collaborated and unified team performance add to enhanced organizational performance.

Meanwhile, studies of Swanepoel, Botha and Mangonyane (2014) have emphasized on need for a contingency approach which consider that organizations and industry primarily comprise of teams with highly underpinned operations. Management tactics, competitiveness along with extensive economic situations in justifying the way teams can constructively influence organizational efficiency resulting internal contingencies to be highly taken into consideration. Meanwhile, Khanna and Sharma (2014) have claimed that management-employment association (HR policy) or the structure of the division of labour (work system) in segregation which leverage the interaction between the two.  


Improving Performance Management System of ‘No-Name’ Aircraft 

The evaluation of the case of ‘No-Name’ Aircraft has exposed that the company’s management majorly relied on the increase of performance at work to successfully attain as well as exceed organizational targets and further to ascertain maximum productivity to its customers. However, according to Amin et al. (2014), organizations operating in the competitive market comprise of performance appraisals with the supervisor providing comments on employee’s performance. In addition to this, several leading companies operating in the aviation industry of Australia have been adopting highly advanced strategy to performance management by strategically implementing a 360 degree approach or Management by Objectives (MBO). Shaout and Yousif (2014) further claimed that as performance appraisal system facilitates an employee to realize areas of strengths and weaknesses, it would successfully help employees in critical decision making processes related to career preferences.

However, as per the case study of ‘No-Name’ Aircraft, the company has been encountering several performance management challenges. Even though international performance has been integrated to a company’s global performance appraisals, No-Name has been showing immense deficit in that particular area. The case has exposed that although the corporate branch of No-Name strategically conducts performance appraisals, there cannot be identified any such action in its other branches with no formal performance appraisal process for emigrants. At this juncture, Liu et al. (2015) have stated that accomplishment or failure of performance appraisal programmes depends majorly on the viewpoint fundamental to it, its correlation with company goal along with the characteristics and skills of employees accountable for its supervision. Thus, in the view of Ceschi, Dorofeeva and Sartori (2014), performance appraisal implies to the successful evaluation of employees' existing and past performance comparative to his or her level of performance. Meanwhile, Shaout and Yousif (2014) hold the view that performance appraisal is the systematic observation, evaluation and description of work-related behaviour whereby an employee has been critically evaluated for a specific period by crucially assessing his or her candidature.

However, as performance review systems primarily offer organizations with highly crucial information, No-Name Aircraft through successful implementation of the system in its other subsidiaries will be able to raise performance level along with overall efficiency of the company if its progresses towards sincerely recognizing and managing employees areas of shortcomings. Additionally, No-Name to increase employee engagement and motivation in its other subsidiaries must use performance management software known as IceHRM which will efficiently offers customary reviews along with 360s and enable for rapid and actionable coverage by successfully developing employee development (Pro, 2019). Thus, these factors have led authors to state that feature that can be found on most performance management software programs. Peer reviews are useful because they allow coworkers to praise other coworkers and highlight positive aspects of their performance, as well as point out where improvements can be made.


Therefore, from the above discussion it can be concluded that Human Resource Management personnel should focus on improving performance management system on the basis of employee equality and impartiality. Such successful performance management system reinforces the inference of procedural as well as distributive righteousness in order to develop higher level of satisfaction with successful performance evaluation system. Additionally employee engagement with high job satisfaction has been growing strength in the practitioner community. Thus successful performance management system primarily aids HRD experts in the future by collecting new and advanced insights into the theoretical constructs regarding employee commitment as well as establishing HR strategies on a diverse and increasing organizational involvement. Additionally as every organization comprising its own culture, organizational culture has been regarded as a vital component of business firms. Thus culture specifically in cross-cultural organizations tends to reflect the past and further modify its prospect.



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