Critical Theories & Concepts of Organizational HRM - The AeroSafe Case Study

Running Head: CRITICAL THEORIES & CONCEPTS OF ORGANIZATIONAL HRM i
Critical Theories & Concepts of Organisational HRM – The AeroSafe Case Study
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CRITICAL THEORIES & CONCEPTS OF ORGANIZATIONAL HRM ii
Table of Contents
Introduction............................................................................................................................................................1
Diversity Management...........................................................................................................................................2
Organizational Culture..........................................................................................................................................3
International Performance Management.............................................................................................................4
Training and Development....................................................................................................................................5
Conclusion.............................................................................................................................................................. 6
Recommendations..................................................................................................................................................7
References............................................................................................................................................................... 8

CRITICAL THEORIES & CONCEPTS OF ORGANIZATIONAL HRM 1
Introduction
Numerous challenges faced by modern organizations influence their prospective to attain their
objectives. The most significant challenges for organizations today are issues related to Human
Resource Management (HRM) and its four key areas, namely Diversity Management and
Culture, International Performance Management, and Training and Development, especially
when organizations functions in different countries of the world. Therefore, HRM is one of the
essential purposeful areas of management studies that deals with people, regulate and maintained
people’s actions, focused on development of people and strive for future .Since last two decades,
human resource management is being taken as a vital function amongst all other administrative
measures. Therefore, the study of HRM is acknowledged as an essential component of
organization by many academicians and scholars because HRM increase competitive gain for an
organization. (Hassan Danial Aslam et al, 2013). Therefore HR specialists, leadership and team
like any other professional groups within an organization, take on a central role in organizational
sustainability and productivity. (Harold Schroeder, 2012). Here organizations face limitations as
each country of the world has its procedures and practices of HRM. Multi-National Companies
(MNCs) are thus facing challenges to create harmony and coordination in their HRM policies
while operating in diverse business environments and nationalities. Therefore it is essential to
analyze in depth the structural necessities for the exploitation of human resource management
towards amplified organizational outcome, and to provide a theoretical outline for the critical
examination and evaluation of human resource management in organizations. (Patricia &
Miltiadis, 2008). In the present context of globalization, HRM offer assistances to create bond
and links between employees' performance and the organization's deliberate aims. Thus, the
success of an organization is subject to deployment of the staff. Therefore, it’s vital for
organizations to hire employees who strictly adhere to their job responsibilities.
AeroSafe, an aircraft company, is based in Australia and operates in three other countries:
China, Singapore, and Vietnam. AeroSafe has potential buyers worldwide; however, the
company is facing problems in the quality of its products, although the four countries' workforce,
managerial and engineering staff are working to ensure aircraft quality. This essay aims to
evaluate the strength and weaknesses of AeroSafe's organizational performance with particular

CRITICAL THEORIES & CONCEPTS OF ORGANIZATIONAL HRM 2
reference to its HRM. The critical areas of HRM associated with the issues faced by AeroSafe
will be evaluated, and recommendations will be given for future improvement.
Diversity Management
With the increase globalization there is demographical diversity of the workforce,
handling diversity in companies is an essential administrative function (Olsen & Martins, 2012).
The variety of a force is a identifiable source of originality and improvement that can provide a
competitive advantage. Still, on the other hand, it also causes misinterpretation, doubt, and give
rise to conflicts in the workplace that can result in malingering, low quality, low motivation, and
loss of effectiveness. This is why management of diversity in organizations is measured as one of
the critical challenges for HRM in modern-day organizations.
Many theories are addressing the matter of how to manage the diverse workforce while
maximizing employees’ responses and performance. The cognitive diversity hypothesis
proposes that numerous insights stemming from the cultural variances between group or
organizational members result in creative problem solving and innovation (Chow, 2018).
According to this theory, creating heterogeneous teams looks to be an effective strategy, but, in
reality, the heterogeneous teams face some unique and different challenges. They sometimes
may result in lower performance levels (Mansoor, Ali, Ali & Ali, 2013). Likewise, the
similarity- attraction model and social identity theory provide that employees’ inclinations
for cooperating with others like themselves could result in variety, thus compromise on group
and organizational results. There is a proportion of diversity that arises from an organization. As
per empirical studies of diversity management by Magoshi and Chang (2009), diversity is visible
in matters connecting to each individual like nationality, society background, gender, age, or
physical and psychological potentials. While Lestari (2015), with almost the same language,
stated some features of organizational diversity. These characteristics will include age, ethnicity,
gender, ability, race. Topography, efforts, experience, salary, religion, language, coordination
and social connections, and qualification are some more areas that are associated with diversity
management (Bakhri, Udin, Daryono, & Suharnomo, 2018). This diversity requires substantial
complex management, mainly when diversity issues deal with human resource management
issues such as reward, raise, training, management control, and other matters within the