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.
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Human resource management in a global economy 6 / 6 / 2 0 1 9
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HRM1 Contents Introduction......................................................................................................................................3 Discussion........................................................................................................................................4 Culture and diversity issues.........................................................................................................4 International performance management......................................................................................5 Training and development...........................................................................................................7 Recommendations............................................................................................................................8 Conclusion.....................................................................................................................................11 References......................................................................................................................................12
HRM2 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.
HRM3 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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HRM4 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.
HRM5 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
HRM6 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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HRM7 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
HRM8 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.
HRM9 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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HRM10 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.
HRM11 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.
HRM12 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. InHuman 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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HRM13 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 technology outsourcing.Journal of International Management,13(1), 38-56. 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 of the human resources function. Knowres Publishing. Tarique, I., Briscoe, D. R., & Schuler, R. S. (2015).International human resource management: Policies and practices for multinational enterprises. Routledge.