IBU5HRM Human Resource Management
Operating a business in the international market is very challenging. There are many issues related to human resource management (HRM) that can hinder the growth of the company. These might be related to culture, diversity, recruitment and selection, training & development, and much more. In the following report, an assessment of the case of ‘No Name’ Aircraft is done. It manufactures and sell aircrafts to government and non-government agencies of more than 50 countries. Here, a small discussion on HRM issues faced by the company, such as cultural issues, diversity management issues, training & development issues, and risks in the international governance of the company. One of the prominent issues is poor communication strategy and plan. All such issues are important to be taken care of as the organisation’s reputation is at stake and its performance is declining day by day. Therefore, as an HR Consultant, it is important to plan a strategy so that these issues are completely eliminated from current system of ‘No Name’ Aircrafts. For that purpose, an implementation plan is developed and presented in this report.
IHRM Issues in the Current System of ‘No Name’ Aircraft
In the following case study of ‘No Name’ Aircraft has numerous issues and some of which are very critical for the company. These are illustrated below:-
Cultural Issues:The cultural issues are very common in organisation dealing in different countries. No Name Aircraft is also one such organisation. It was determined that communication between in-house and overseas teams faces breakdown. Due to this miscommunication might take place affecting the current as well as future projects of the company. This leads to poor teamwork in the host country branch and its subsidiaries. In addition to this, staff members are reluctant to changes in the current working environment of the company.This hinders the growth of the company and its quality.Amaram (2007) highlighted the same issue of employee’s behaviour towards change. Reluctance and stubbornness may ruin the organisational culture and its growth as it stagnates the employee’s overall development. The major concern of the company is related to the quality of products. No Name’s quality is degrading day by day and due to which both government and non-government agencies are facing issues. They have warned the company about the degraded quality and some of them have deducted an amount in the final payment.
Diversity Management Issues:No doubt that the current system of the No Name Aircraft has a policy that emphasises on respecting race, gender, ethnicity, physical disabilities, religious beliefs, and other philosophies but still there are many issues figured out. The first and foremost is related to the intolerance shown by senior employees towards working with new comers, apprentices, and inexperienced employee (Cletus, et.al, 2018). This is resulting in communication gap and poor strategic planning. Also, this is degrading the working relationship within the organisation. Furthermore, in the Chinese subsidiary, it was noticed that the HR managers are reluctant to hire people with some physical disabilities. This is one of the prime legal issue that might jeopardise the firm and its senior management. Also, the HR manager have not established any procedures and policies to assist the employee to interact among themselves and improve their working relationships and understandings. Employees hold different perception of each other. According to Khan, et.al (2016), these issues can lead to poor diversity management within a workplace. In addition to other researchers have also mentioned that workplace culture is not very employee oriented as the senior management expects them to give positive results only. This creates unnecessary pressure on the employees and they may get demotivated with time. This also develops a sense of competitiveness among them that would affect their working relationship (Mandal, 2014). Hence, the organisation needs to be
International Performance Management Issues:In addition to the diversity and cultural issues, operating in the international environment has its own issues.The first and foremost is related to the performance appraisal by the HR manager. No doubt some sort of practices are followed in the Australian branch but none of its subsidiaries are making of any performance review practice or measurable parameter. Also, the promotions are not based on the performance review system as there is no formal system of doing it. Headquarter is using an ad hoc method for measuring and reviewing the performance of the employees and discard any modern factor that might impact the organisation’s economic accounts. It was also noticed that the company lacks any policy focusing on performance management. This is questioning the transparency of the company. This is demotivating the employees in many ways and stopping them from giving their best as they might think that their efforts would not be counted. The organisation needs to think about a transparent and legit system of performance appraisal and bring each and every employee in confidence that their efforts would be respected.
Training & Development Issues: As some part of work is carried out in China, Singapore, and Vietnam, the company sends some of the experts to work at those locations. The company provides expatriate training to them but there are no feedback system to get information and comments on the effectiveness of the training. In addition to this, there are no efforts and initiatives from the HR department to integrate people from overseas destinations to new surroundings and the team.This is enough to impact the performance of the employees. Moreover, there was lack of efforts from the senior management and executives for workforce planning and development. Only the managerial candidates are provided with some assistance in developing their skills and knowledge under career development plans. The lower level subordinates are not very much aware of their career growth and prospects while being a part of the firm. The company lacks the capability to develop the junior employees to carry out their roles effectively. This has been the major factor behind the poor performance of the ‘No Name’.
Impact of Effective HRM on Current Issues of No Name Aircraft
In the case, it was noticed that IHRM issues are related to both Host Country (Australia) and the subsidiaries branch (China, Vietnam, and Singapore). O’Reilly, et.al, (2014) supported the fact that an effective HRM approach can deal with issues related to human resource. These can be socio-economic influence, normative influence, and institutional approach. These are explained below in context of the case of No Name Aircraft.
Socio-Economic Influences:These factors comprise labour market conditions and economic conditions.Mockaitis, et.al, (2018) mentioned that employees’ attitude and reluctance towards change and workplace policies are dependent on labour market conditions. The labour market has certain influence on the human resource planning as it is dependent on workforce demand and supply. The current practices of hiring is partially based on level of education, training, and knowledge and partially dependent on physical capabilities. Due to this, the company’s China-based subsidiary is not hiring the physically challenged candidates no matter if they are more capable. This practice is required to be discarded immediately to avoid any criticism or legal action (Slavić, et.al, 2014). Apart from this, the performance related issues can be improved by offering some sort of economic benefits to employees. This might act as a motivating factor for them and they would see it as a support from the company and they will try to give their best efforts. Organisation is required to give some thought to socio-economic influences to improve and resolve the current issues.
Normative Influences:These comprise the socio-cultural norms that are considered as the powerful forces for an organisation (Patrick& Kumar, 2012). These normative influences can minimise the negative externalities in organisational environment. The social norms can help in creating a high performance environment and motivate employees to focus on quality, develop healthy working relationship by reducing negative attitude and behaviour. In addition to this, the diversity related issues can be resolved by developing social norms in the company that emphasise on development of healthy relationship and better perception of other members (Von Holdt, 2010). The IHRM practices should focus on employing and developing practices that value human resource, career development and management, remuneration strategies, and performance appraisal, and developing healthy working relationships within teams. These social norms can help in resolving such challenges faced by the organisation.
Institutional Influences:The factors comprise the legal, informal or formal rules set by unions and employees. These rules might be related to the performance review system, working conditions, incentives and pay, health and safety related laws, and other significant factors associated with the employee’s interest and benefits. All such factors come under legal environment. Rehg, et.al, (2012) mentioned that company usually is unable to manage the human resource alone. It is required to work under certain legal obligations and guidelines. These are necessary for No Name Aircraft to maintain certain level of transparency in its current process of performance review and appraisal. In addition to this, it is required to form policy to respect the interest of physically challenged candidates. Furthermore, the policies are required to be formed related to human resource management.
Ensuring the Issues do not Repeat in Future
For avoiding these issues to reoccur in near future, there are certain ways that may work well for No Name Aircraft. The first and foremost is developing certain criteria for ensuring a efficaciousinternational transfer. For that purpose, the final decision should be made by the senior management only. The first criterion can be adaptability to change in working environment and culture. The candidate should be able to change with the condition as soon as possible. The next criterion is emotional and physical stability. The candidate is required to be physically, psychologically, and emotionally strong to withstand the change. The experience and performance should also be viable criteria for the selection, and most important criterion which is the most sought-after condition is leadership ability (Stahl, et.al,2012). The person should be mature enough, should have top-notch communication and problem-solving skills. Such candidates are suitable for overseas locations.
Apart from these, the second consideration for avoiding reoccurrence of the issues is establishment of a legal framework and policies related to equality and labour related issues. The company should establish and abide by the laws given in Anti-Discrimination Laws in order to respect and value its diverse workforce and working culture. Also, for protecting labour from any unethical practice, it is required to follow the guidelines stated in the Employment & Labour Law 2019.
Implementation Plan to Resolve the Current Issue
Summary of the Issues
In the following case, numerous issues related to the global human resource management have been identified. These have been divided into cultural, diversity management, training & development, and issues related to managing the workforce in the international market. It was analysed that currently the company suffers from lack of quality issue, resistance from employees toward change, poor workplace relationship and lack of understanding among the team members, lack of training & development initiatives from the employees, and absence of any formal performance appraisal process. All these are affecting not only the company but also the motivation of the employees. Hence, they are required to be managed at the earliest.
Global Leadership Program:These programs are beneficial in understanding the global perspective and approach to tackle diversity in the organisation. These programs help the managers and senior executives to develop a high degree of judgement based on the various factors associated with the company (Geppert& Williams, 2006). These programs are beneficial for the organisation as they develop the leader’s decision-making and problem-solving abilities. These also train them to build a high-performing team and a culture.
Training and Mentoring:For reducing the issues identified with the training and development efforts of the company, it is prescribed that post appearance and preliminary training for the expatriates must be given by No Name Aircraft to viably meeting the distinctive preparing needs of the various workers in the association. Alongside this, it is additionally prescribed that human asset supervisors must give powerful direction preparing and improvement to the representatives who are moving starting with one nation then onto the next nation for hierarchical reason (Mandal, 2014)
Performance Management Approach:For viably reducing the issues identified with the performance of executives, it is prescribed that human resource supervisors of the firm must comprehend the culturally sound and socially acceptable practices of various overseas location where the organization works which would be powerful for planning a successful and productive execution management approaches for dealing with the diverse representatives who belong to different regions (Shaban, 2016).
Rewards Policy: Having a transparent performance appraisal and reward system is important for the company. These would be crucial for the company in maintaining its current workforce and motivating them to carry out their work effectively. These would also help in retaining the current employees and reduce the hiring needs (Shen, 2005). The reward can be both monetary and non-monetary (employee recognition, promotion, vacations, etc.). No Name Aircraft should emphasise on developing an effective system of performance review and appraisal in order to ensure the employees are giving their best efforts. This would improve the quality of work for the company.
The Implementation plan for the aforementioned recommendations is presented below:-
Purpose of the Plan: The following HRM implementation plan would assist the management of No Name Aircraft in dealing with the issues it faces, allocating the resources required for managing the issues, setting up the criteria for success of the plan, and evaluating the final outcome.
Application of Recommendations: From the case study, it is understood that subsidiaries in China, Singapore, and Vietnam are facing almost all the aforementioned issues. On the other hand, headquarter has a fewer issues related to culture and training & development. Therefore, the all the recommendations are to be applied on all the subsidiaries of No Name Aircraft, whereas Global Leadership Programme and training & mentoring are required to be applied on headquarter.
Resources Required: In order to implement the recommendations, certain resources are required. Training sessions are required to be arranged wherein external experts may come and train the employees. In addition to this, new software and technology is required to be implemented in order to improve the quality and reduce the errors. Hence, funds are also required. Enterprise Resource Planning System (ERP) can also be implemented for better human resource management.
Metrics for Success: The data for the success rate of the recommended suggestions would be gathered by making use of interviews and surveys from the employees. The rating would be collected from the employees. A rating below 5 would be considered poor, whereas a rating above 8 would be considered good.
Evaluation of Success: In the beginning, the evaluation would be done on monthly basis. So if there is any discrepancy found, then it would be removed. After three months, the evaluation would be done after every three months.
In this report, the IHRM issues related to No Name Aircraft were determined and resolved. For that purpose, certain recommendations were provided and an HRM implementation plan was developed.
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