Human Resource Management in a Global Economy

This report discusses the role of international human resource management in a global economy, focusing on issues such as culture, diversity, international performance management, and training and development. Recommendations are provided to address these issues and improve HR practices.

Human resource management in a global economy
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Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................4
Culture and diversity issues.........................................................................................................4
International performance management......................................................................................5
Training and development...........................................................................................................7
Recommendations............................................................................................................................8
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

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Executive summary
The role of the International human resource management is immense for the multinational
companies who are performing their business in more than one country. The report is prepared
based on one of the case study with the name No Name Aircraft that talks about the issues that
are faced by the company related to the human resource management. The findings include the
issues related to the human resource management has been highlighted which include culture,
diversity management, training and development. In addition, it includes the solution and
recommendation to the issues faced by the HR of company so that they resolve the issues. This
helps the HR of the company to perform the operations in the effective manner.

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Introduction
International human resource management is defined as the set of activities that are targeting
HRM at the international level. The HR of the company performs the operations to accomplish
the objectives organisational and to meet the competitive advantage over the competitors at the
international as well as the national level (Kshetri, 2007). The aim of the report is to evaluate
different key issues that include culture, diversity management, training and development as well
as the international performance management witnessed in the case study. The case study on
which the report is prepared is No Name Aircraft that is an Australian company with operations
at different places. Further, it includes the ways through which the HRM of the company can
deal with the issues highlighted in the case. The dealing should be done in the way that this issue
does not repeat in the international environment. The planning for the organisation and the
recommendation to the No Name Aircraft is presented so that they can eliminate the issues.
Case overview
No Name Aircraft is one of the manufacturing companies who sell the products in Australia and
at other subsidiary locations. The CEO of the company said that they are dealing with the
internal issues that include the lack of communication among the team and this affects their
performance due to which the profit of the company is declining. In addition to this, the clients
are worried about the quality that leads to the challenge because this affects the shareholders of
the company. The hiring of the employees is another major issue that has been witnessed in the
case because company is ignoring the disable people with talent. The performance of the
employees of No Name Aircraft is not evaluated which is one of the major issue for their

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retention. The situations show that there is need of the improvement in the condition of the No
Name Aircraft.
Discussion
Being the International Human Resource Management Consultant, this section include the
identification of the issues which the ways of dealing with these issues in the international
market.
Culture and diversity issues
In the present era, the businesses are performing the operations across the world that is possible
with the emergence of the globalisation that allows free trade. This leads to the issue of the
maintaining the diversity within the organisation because every culture has their own
preferences. According to McGraw, 2004, diversity is considered as the complex and multi-
dimensional concept that include the attribute that differentiate one person from another. In
addition, the company always contribute effectively in managing the work culture because they
operate the business in different country with the diverse culture (Budhwar & Debrah, 2009).
In the case study, the human resource management deals with the issue related to the culture and
diversity management. IHRM finds the issues related to the communication at the workplace
among the teams and the management that affects the efficiency and productivity. The culture of
the company is affected because employees have negative impact on it. The negative attitude of
the employees influences the culture of the company (Fenton-O'Creevy, Gooderham &
Nordhaug, 2008). This is fact that the culture of the organisation is totally depended on the
employees and their engagement within the company. In case, the personnel are not able to
maintain the positive attitude due to which the culture is not impressive.

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No Name Aircraft company has tried to bring numerous changes within the organisation but
ultimately they faced the issue of resistance from their personnel. These cultural issues lead to
impact on quality at the subsidiaries that include China and Vietnam as they got the complaints
from different customers, government and many others. In the organisation, there is need of
change so that they can upgrade their workplace in terms of productivity.
Further, the diversity issues are emerging because of the policy that is very simple, due to which
the issues occurs in recruiting the employees in china with disability. The managers of the
company have ignored the application that was proposed by the disable people irrespective of the
fact that they have more talent comparing it with the other employees. The senior employees are
intolerant of the performing the work and they are not able to form the effective relationship with
their employees (Haak-Saheem, Festing & Darwish, 2017). This shows that HR of the company
needs to take the proper steps to deal with the issues.
In the international environment, HR needs to ensure that they are able to deal these issues
because this continues to affects the profitability of the company. HR is the one who ensures that
they bring new activities that contribute effectively in reducing the issues of the communication.
The line managers are motivated by the HR of company to take responsibility for bridging the
gap of communication among the team members that motivates them to take the right steps
(Hofstede Insight, 2019). This motivation is transfer to the employees due to which they
contribute in improving their performance and resolve the issues.
International performance management
The management of the performance of employees reflects the consistent changes in the
improvement in the personnel. In the international market every company evaluate the

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performance of the employees on the annual basis so that they can share the feedbacks with them
(Tarique, Briscoe & Schuler, 2015). The evaluation of the employee’s performance has been
done based on pre-set objectives, goals and targets. HR of the company undertakes the activity in
which they evaluate the performance of the employees. In the case, this is clear visible that “No
Name Aircraft” conduct the performance review of the employees at every area that include
Singapore, Vietnam, and China. The human resource management deals with the issue when
they evaluate the performance of the employees because the work of the employees remains
dependent. The main office of the No Name Aircraft is at Australia and other parts are
subsidiaries. The manufacturing is done by the employees in the offices of Vietnam and China
and then they send it to Australia and Singapore for the assembling it on effective manner. This
shows that the work of the employees within Australia and Singapore remains dependent on
other due to which the evaluation is not done in the right manner.
In addition to this, many employees of the company leave their home country and work in the
other country subsidiary. Thus, it has been found in the case that there is lack of the formal
performance appraisal course majorly for the expatriates. Moreover, the performance of the
employees and overall business gets affected due to external market forces (Noe, Hollenbeck,
Gerhart, & Wright, 2017). In the international business market, there are economic factors
influence the employee’s performances. Thus, this directly or indirectly affects the performance
appraisal but the HR of the company does not consider this influence by the environment.
The company working and the quality of the services always remain dependent on the
performance of the employees within the company. In the case, this is every clear that quality
complaints has been received by the company due to the loopholes in the performance. The lack
performance leads to improper appraisal of the employees (Cascio, 2015). In addition to this, it

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has been found that managers and company always has high expectation in terms of quality but it
remained unfulfilled and this is witnessed with the different quality issues faced by the company.
Considering all the issues, it has become the responsibility of the HR to ensure that in the
international market to deal with the issues. HR ensures that they restructure the policy for the
performance appraisal because this helps them in conducting the right review of performance. In
addition, they should clearly set the performance measures considering the fact that the work of
employees is dependent on each other (Brewster, Vernon, Sparrow, & Houldsworth, 2016).
Training and development
Training and development are essential HR practices that are performed by them not only in the
domestic business but also at the time of conducting the international business operations.
Training and development of the employees is essential within the company as this allows the
employees to perform their functions on daily basis (Bratton & Gold, 2017). It is said that this
practice helps the employees in meeting their needs towards the job roles that is performed by
them. In the case of No Name Aircraft, the international human resource management found the
different issues related to the training and development of employees in the international market.
The training and development programs that are conducted by the HR vary according to the need
of the employees. In the international market, every employee who is working with the company
works for any kind of requirement. The proper training contributes in achieving that requirement
because this enhances the skills of the employees (Budhwar, Tung, Varma, & Do, 2017). It has
been found that in the case of No Name aircraft, the employees who go for the job at different
subsidiaries do not get any kind of proper training related to the place, the culture at the place
and many others. This affects the working of the employees and demotivates them that create the

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impact on the productivity at the new place. In addition to this, there is lack of proper guidance
and feedback to the expatriate employees.
The development activities are conducted by the HR of the company in which they conduct such
activities and lectures through which they can effectively contribute in bringing the development
in their employees. This development helps the employees in their future actions and in
performing the existing job responsibility effectively (Rastgoo, 2016). However, the major issue
in this case is that the proper development program for the employees is not available.
HR of the company understands that there is need of the proper training and development for the
employees as the implementation of this motivates the employees to work in the effective
manner. In the international market, it has been found that the working place operations keep
fluctuation because of the change in market atmosphere. Thus, this shows that there is need of
training on different aspects that include cultural, developing skills, bringing changes and many
others. The proper development plan should be there that brings the development for employees
at their workplace that is needed to ensure by HR (Rodriguez, 2019). This development will
bring the new career opportunities for the employees in the international market. The
professional skills training is ensures by the HR of the company because this protect the interest
of the employees and the work.
Recommendations
Considering the entire system and issues by the international human resource management there
is need of numerous changes.

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Policies: - It is suggested to the HR of the company to form the proper policies related to the
cultural and diversity of the employees. This will include the polices which include that the
recruitment of the employees should include the disable people that are equipped with more
talent at the workplace. This will enhance the knowledge and skills of the existing employees
when they interact with the diverse employees.
Culture: - It is recommended to the HR in order to understand the culture of the employees as it
has been seen that they have negative attitude. Thus, the HR should conduct the counselling with
them so that they can convert that attitude. Further, the HR can implement the change model that
includes unfreezing the workplace culture, making the changes and then freezing the same
(Schultz & Van der Walt, 2015). This change will bring the improvement in the culture but HR
needs to ensure that there is no resistance from the employees and they are agreeing for all the
changes.
Performance management: - It has been found that there are loopholes in the performance
management system. Thus, it is suggested to the HR to improve the system by setting the new
standards of the performance in which the evaluation is done. This will reduce the issue at the
time of conducting the appraisal at any subsidiary.
Self-evaluation method: - It is recommended to the company to make use of the self-evaluation
method for the performance evaluating in which the employees evaluate their own performance
during the period. This helps the company to provide the feedbacks in order to bring the
improvement in the appraisal (Analoui, 2017). This improvement leads to rise in satisfaction and
motivation among the employees to perform the best.

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Training and development: - HR of the company is suggested to inculcate proper facilities of
the training to the employees of No Name aircraft. The major focus is done on the employees
who are expatriate because they are the one who deals with the major issues while shifting their
work from one place to another. The cultural and work related training should be conducted for
the employees (Collings, Wood, & Szamosi, 2018). In addition, there are no development plans
for the employees so it is suggested to bring the new development plan for the employees.
Communication: - It is suggested to the HR of the company to bring new tools for the
communication among the headquarters and subsidiaries. This communication tool can be social
media, e-mail, and many other internet tools. These communication tools remain effective in
resolving all the issues among the managers and the juniors.

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Conclusion
In the end, this has been concluded that the paper include the discussion related to the various
aspects of the HR in the No Name aircraft. These aspects majorly show the issues which is faced
by the employees. The major issues that are witnessed include diversity management and culture,
international performance management and training and development of the employees. It has
been found in the discussion that all these elements contribute effectively in HR functions due to
which the company consider it. The issues that have been witnessed are major because it creates
the direct impact on the quality and performance. The quality and performance of the product or
service is major element for the No Name Aircraft because it is linked with the profit that is
attained by them. The report shows how the HR of the company can ensure to deal with the
issues in international market so that it will not appear in the near future. Further, it includes the
recommendation for the HR of the company in the end so that they can implement the same to
eliminate the issues.

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References
Analoui, F. (2017). The changing patterns of human resource management. Routledge.
Bratton, J., & Gold, J. (2017). Human resource management: theory and practice. Palgrave.
Brewster, C., Vernon, G., Sparrow, P., & Houldsworth, E. (2016). International human resource
management. Kogan Page Publishers.
Budhwar, P., & Debrah, Y. A. (2009). Future research on human resource management systems
in Asia. Asia Pacific Journal of Management, 26(2), 197.
Budhwar, P., Tung, R. L., Varma, A., & Do, H. (2017). Developments in human resource
management in MNCs from BRICS nations: A review and future research
agenda. Journal of International Management, 23(2), 111-123.
Cascio, W. F. (2015). Managing human resources. McGraw-Hill.
Collings, D. G., Wood, G. T., & Szamosi, L. T. (2018). Human resource management: A critical
approach. In Human Resource Management (pp. 1-23). Routledge.
Fenton-O'Creevy, M., Gooderham, P., & Nordhaug, O. (2008). Human resource management in
US subsidiaries in Europe and Australia: centralisation or autonomy?. Journal of
International Business Studies, 39(1), 151-166.
Haak-Saheem, W., Festing, M., & Darwish, T. K. (2017). International human resource
management in the Arab Gulf States–an institutional perspective. The International
Journal of Human Resource Management, 28(18), 2684-2712.

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Hofstede Insight. (2019). Country Comparison. Retrieved from: https://www.hofstede-
insights.com/country-comparison/australia,singapore/
Kshetri, N. (2007). Institutional factors affecting offshore business process and information
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McGraw, P. (2004). Influences on HRM practices in MNCs: a qualitative study in the Australian
context. International Journal of Manpower, 25(6), 535-546.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill
Education.
Rastgoo, P. (2016). The role of human resources competency in improving the manager
performance. Acta Universitatis Agriculturae et Silviculturae Mendelianae
Brunensis, 64(1), 341-350.
Rodriguez, S. R. (2019). A Andragiotic Strategies to Implement the Culture of Safety in the
Sewerage Construction Workers of the Metropolitan Public Company of Drinking Water
and Sanitation of Ecuador. International Invention of Scientific Journal, 3(04), 520-528.
Schultz, C., & Van der Walt, H. (2015). Reinventing HR: Strategic and organisational relevance
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Tarique, I., Briscoe, D. R., & Schuler, R. S. (2015). International human resource management:
Policies and practices for multinational enterprises. Routledge.

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