Human Resource Management in a Global Economy

This paper discusses the importance of human resource management in a global economy, including diversity management, international performance management, and training and development. It also explores the challenges faced by organisations in managing a diverse workforce and the benefits of effective performance management.

Running head: HUMAN RESOURCE MANAGEMENT IN A GLOBAL ECONOMY
HUMAN RESOURCE MANAGEMENT IN A GLOBAL ECONOMY
Name of the student
Name of the university
Author note

1HUMAN RESOURCE MANAGEMENT IN A GLOBAL ECONOMY
Introduction
The paper reflects the No Name Aircraft focuses on the issues where the company is
facing heavy loss. The need of maximising return on investment of shareholder and to
achieve high price to save the company from future risk. The Aircraft is an Australian airline
who operates in these three countries, they are China, Singapore and Vietnam. The problem
in exposing to foreign environment are discussed in this report. The report helps to
understand the required theories and the concept of Human Resource Management is related
to training and development, culture, diversity management and international performance
management. The organisational culture of the workplace checks for communication barriers
which are observed and negative work environment have been adopted. This also focuses on
communication between headquarters and subsidiaries. Management has also identified
critical problems in quality which needs to be redesigned for loss recovery. They are facing
resentment as each job is connected with each other, so the error occurred in one team can
impact other team. The communication both laterally and horizontally are compromised, it
needs to be smooth and build positive approach to maintain sustainable work environment. It
needs an internal experts who can guide them and advise them to establish good
communication between all the levels. The diversity management in this organisation have
simple policy to give equal importance with respect to age, physical abilities, gender, race,
ethnicity and religious beliefs. The company faces some issues where it embraces the work in
diverse environment. They have issues with different generations as the headquarters have
intolerance to deal with employees. Senior staffs have problem with apprentices and
maintaining healthy relationship. The organisation is not recruiting disabilities from China
even when they are more eligible and have the skills beyond other candidates. The
organisation is afraid of repercussions by legal actions due to recruitment discrimination. The

2HUMAN RESOURCE MANAGEMENT IN A GLOBAL ECONOMY
organisation does not have a proper HR practice which can help the employees to understand
each other. The interactions among staffs should be properly monitored to establish healthy
relationship and understand each other’s perception. Diversity management needs to address
the practices that encourage other cultures to enter into the organisation and opportunity to
know different people in work culture. The organisation needs to understand that diversity
management can create a platform for competitive advantage which can also help other
functional area of the organisation (Elnaga & Imran, 2013).
The international performance management have issues related to lack in performance
appraisals process of employees. Headquarters focuses on key approach but does not consider
economic factors which can impact the organisation. The performance appraisal process costs
high and performance management needs to be strengthen for higher growth. The training
and development process is the key approach to skill more employees and gain more
productivity. There is a lack in feedback for employees for the effectiveness of the expatriate
training. In that organisation there is a need of training and development, good workplace
planning and management development programs (Halim et al., 2014 ; Hauser, 2014).
Diversity Management and Culture
Diversity management is to manage diversity in terms of planning the actions to be
taken to achieve effective management in workplace. To promote greater rate of recruitment
of all efficient employees from various places. To enrich the effective management, the
diversity in workplace possess the managers for the need to understand the background and
study the behaviour and beliefs of employees that can affect in decision making process, with
better supply of products and services, increases productivity and establish better bottom line
in diverse environment. Organisation is adopting diversity management strategies for growth

3HUMAN RESOURCE MANAGEMENT IN A GLOBAL ECONOMY
of the diversity in workplace environment. International diversity management refers to
managing the workforce those who are from different countries (Lea & Nicoll, 2013).
The main challenge to diversity management in global economy is that the parent
company must be legislative and follows cultural laws in the host country. Diversity
management helps the organisation to pay equal respect to race, gender, physical abilities,
age, sexual orientation, religious beliefs. In an organisation the inequality between different
job roles should be vanished and should introduce a healthy environment where seniors give
equal priority to their apprentices or the employees working under them. The workplace
diversity have an impact on human resource management in developing interpersonal
relationships, how the supervisors and managers of the organisation should interact with
other staffs and employees. This management affects the human resource functions like
training the employees, recruiting efficient employees and fulfil the requirements of the HR
professionals. Diversity management is important for the organisation which provides the
ability to achieve goals and to compete with global market. The advantage of diversity
management is to increase the level of productivity. An effective and healthy communication
in workplace can positively strengthen the relationship with stakeholders and specific
customers by establishing effective communication in hierarchical and vertical structure
(Wrench, 2016).
The disadvantage of diversity management is that it has high cost by increasing job
satisfaction. The organisation undergoes a basic training program for managers, employees
and supervisors where they learn to interact effectively with employees and clients.
Employees are ready to resist change for the following reasons such as fear of failure, peer
pressure and mistrust. Employees should realize the impact of effective communication, they
should view diversity as work results in success of the organisation. The training program

4HUMAN RESOURCE MANAGEMENT IN A GLOBAL ECONOMY
requires a high participation cost (Barak, 2016 ; Deresky & Christopher 2015 ; Klarsfeld,
2014).
Organisational culture contains collective behaviours, beliefs, desires, values and
actions of employees working in an organisation. Culture is important to understand and
maintain in business as it has an impact on the strategic direction of international business.
The culture is the way people live and the attitude they show in organisational environment.
The cultural mentor’s role is to help older staffs and new recruits to understand the culture in
the new environment. The five components that an organisational culture involves are as
follows- value, people, place and vision. Workplace diversity with the role of managing it
effectively is now a unique strategy in an organisation. The workers and employees should
feel they belong to the company and should focus on cultural background. The loyalty which
company provides and hard work of the employees helps to increase the productivity and
profit of the organisation (Al-Bahussin & El-Garaihy, 2013 ; Ali Taha, Sirkova & Ferencova,
2016).
International Performance Management, Training and Development
Performance management contains a set of process which helps the organisation to
analyse, evaluate and then improve the working skills of individuals. In global terms
performance management are considered as the key human resource management activity
which influences to implement the business strategy in the company. The purpose of
performance appraisal is to identify individual ability, strength and weakness, evaluate the
need of training, develop future plan to get more competent, provides motivation by
rewarding and feedback for career growth. The diverse business strategy of an organisation in
the global economy creates the need for strategic human resource management. It is
important that the strategic management in the global environment helps to improve the

5HUMAN RESOURCE MANAGEMENT IN A GLOBAL ECONOMY
human resource of the organisation which aims to perform well. Performance appraisal can
also result in conflict between the subsidiary manager and headquarters as it depends upon
the performance level of employees which reflects the overall performance of company. In
performance management, difficulties can be observed for domestic managers than
expatriates. As expatriate’s performance depends on a variety of issues such as cultural
adjustments, compensation policy, the level of job or job roles, and the amount of support
from headquarter and host environment (Mone & London, 2018).
The performance management is practiced to manage the performance level of
expatriates as they feel difficulties in foreign environment. The job roles are mainly defined
and they have experience in host country so it may bring problem when they expose to
foreign environment. The host environment also faces problem and pose challenges due to
external factors like social, economic, technological, environmental and legal. It is important
to take everything into account so as to prevent from critical situation and to make the
performance variable up to sufficient level of support for all individuals (Bellé, 2013).
Training and development is a program which helps each employee to develop their
personal and organisational skills, improve knowledge and evaluate the capabilities of
individuals. Training is an effective process of refining individual skills and adapt them to be
perfect with the changing work environment. The training and development program needs to
be planned according to the employee and organisational requirement. The management
development programs of an organisation helps to identify the requirements and to train
every potential managers who can develop in terms of skills and knowledge by developing
career development plans. This also ensures a clear target for the company and builds
effective succession plan for the smooth functioning of all management roles. Employees
should be ensured about their career aspects by utilising the career development plan. Senior
management should develop junior employees so as to skill them to take their job roles in

6HUMAN RESOURCE MANAGEMENT IN A GLOBAL ECONOMY
future. The professional development in an organisation is important to establish
employement growth and allows employees for promotion. Career development is a process
which helps employees to improve and enrich in organisation’s human resource. The career
development plan have some process where at first it checks for the values, interest, strength
and weakness. Then secondly collects information about job options and vacancy. Thirdly
identify the job role suitable for that individual and select the career goals. At last establishes
action plan to achieve specific career goals. The need for career development is to avoid
failure to encourage more employees to fill the positions, to properly allocate the money for
each training process and to attract employees to be more committed. If the employees are
given good training and developing program with excellent career progress, then employees
are less inclined to leave that company. The training program helps to retain potential
employees and identifies the improvement area to boost the skills for that task (Stone &
Stone, 2013).
The theories of training and development describes the competitive advantage with
the ability of the organisation which does not possess from other organisation and leads to
achieve top position in the global market. The effective way where an organisation can attain
competitive advantage is by developing an effective human resource which is the training and
development program (Kulkarni, 2013).
There are several theories of training and development such as-
Theory of reinforcement
The theory of reinforcement describes the capability of learning of an individual and
helps to suggest the learner to practice it for positive outcome. The training and development
program must be aligned with the organisational objective. It focuses on techniques involved
in human resource practices which be added in training and development programs. The

7HUMAN RESOURCE MANAGEMENT IN A GLOBAL ECONOMY
bonus, promotion, salary raises, rewarding with certificates after the training program
generates a positive outcome among the individuals.
Theory of learning types
The theory of learning types involves intellectual skills. The type of learning contains
some external and internal conditions, these includes intellectual skills, positive attitude,
cognitive strategies, and verbal information.

8HUMAN RESOURCE MANAGEMENT IN A GLOBAL ECONOMY
Theory of Experiential Learning
Experiential learning is to address the needs and wants of learner. The experience
gives the person the analysis of his/her work performance and improvises the learning
capacity to gain more knowledge.
Theory of social learning
Social learning theory suggests that direct reinforcement cannot be addressed different
types of learning styles. By direct enforcement, the skills in training and development
program can be enhanced. It also suggests that the behaviour is not changed after learning
some skills. The social learning also focuses on reward system and benefits to the retain
employees in that organisation and to generate positive outcome.
Theories of performance management
The theory of performance management has aroused due to complexities in functions
of business. This lead to the emergence of concepts of human resource management where
identifying abilities, measuring individual performance, developing individual growth and
aligning performance with strategic goal. The theory of performance management can be
described as-
Goal setting theory- It focuses on performer’s participation to achieve specific goal.
Control theory- performers emphasize their own performance which helps them to obtain
the feedback timely when it is needed.
Social cognitive theory- individuals who find themselves as highly capable to perform can
embrace difficult goals. Self-efficacy results to higher level of goal challenge.

9HUMAN RESOURCE MANAGEMENT IN A GLOBAL ECONOMY
Conclusion
This essay concludes that the training and development program results in highly
skilled employees and management. The training period is maintained so as to build a
standard learning among the individuals. The function of human resource plays a key role in
enriching the global advantage through training and development, diversity management,
international performance management and cultural approach. The diversity management
manages to maintain the workplace where work is done in unity. It monitors the behaviour of
individuals. The problem faced by the organisation due to inability in managing diverse
world is solved by diversity management system. Diversity in an organisation views every
employee as different and to give equal value. It is a massive form of organisational response,
this is a part of progressive outcome. Managing diversity carries legacy of managing a huge
responsibility to avoid discrimination, maintains healthy relationship between each and every
individual working in an organisation. It focuses on leadership quality of managers, control
of senior managers to have a good communication with employees. It helps in controlling,
managing, and organising so as to solve hierarchical problems in diverse environment. It does
not avoid individual’s interest and needs. It relatively considers high or low awareness of
power relations between identity groups. The concept of diversity management focuses on
interpersonal or macro-level social structures. Training and development helps the
organisation to grow and result in increased productivity. It trains the employees to achieve
competence and update their skills. Staff is motivated and retain in the company if they are
valued more. This also results in lowering the costs of recruiting new employees across the
organisation. Organisational culture includes the value, belief, behaviour, norms and religious
believes towards the company, co-workers, customers, leaders and shareholders. The
behaviour of an individual is influenced by the other employees working in that organisation.

10HUMAN RESOURCE MANAGEMENT IN A GLOBAL ECONOMY
It is very challenging to change the perception of an individual if they are facing difficulties
in adopting the culture of the organisation. The performance of the employees is monitored
periodically so as to track their level of performance and provide training according to their
performance level. The ability of the individual and the effort given for the job is analysed.
The company can overcome from crisis situation only when there is an increase in
professionalism, reducing the company’s cost, motivation among staff is high.
Recommendation
In an organisation if the training and development process is practiced properly for
more hours, it can help the management to understand the problems and can enhance the key
skills of each individual in time.
The performance of an individual can be effective if this performance management
process includes qualitative and quantitative data. This data can help in analysing the
employees’ performance level to improve it by the manager. To recognize the accountability
which involves self-assessment of performance which lowers to blame others. To create real
life conversations helps the manager and business owners to establish healthy relationship. It
results in more effective management processes which impact the employees to deliver best
performance.
Organisational culture is improved if the quality of work is maintained, transparency
in workplace, teamwork is encouraged, recruiting efficient candidates, practicing informal
communication and learning process.
Diversity management can be improved when recruitment process is widen,
practicing offer language training which helps to improve diversity, analysing the benefits of
diversity management and make use of current staff.

11HUMAN RESOURCE MANAGEMENT IN A GLOBAL ECONOMY
References
Al-Bahussin, S. A., & El-Garaihy, W. H. (2013). The impact of human resource management
practices, organisational culture, organisational innovation and knowledge
management on organisational performance in large Saudi organisations: structural
equation modeling with conceptual framework. International Journal of Business and
management, 8(22), 1.
Ali Taha, V., Sirkova, M., & Ferencova, M. (2016). The impact of organizational culture on
creativity and innovation. Polish journal of management studies, 14.
Barak, M. E. M. (2016). Managing diversity: Toward a globally inclusive workplace. Sage
Publications.
Bellé, N. (2013). Experimental evidence on the relationship between public service
motivation and job performance. Public Administration Review, 73(1), 143-153.
Deresky, H., & Christopher, E. (2015). International management: Managing cultural
diversity. Pearson Higher Education AU.
D'Netto, B., Shen, J., Chelliah, J., & Monga, M. (2014). Human resource diversity
management practices in the Australian manufacturing sector. The International
Journal of Human Resource Management, 25(9), 1243-1266.
Elnaga, A., & Imran, A. (2013). The effect of training on employee performance. European
Journal of Business and Management, 5(4), 137-147.
Halim, H. A., Ahmad, N. H., Ramayah, T., & Hanifah, H. (2014). The growth of innovative
performance among SMEs: Leveraging on organisational culture and innovative

12HUMAN RESOURCE MANAGEMENT IN A GLOBAL ECONOMY
human capital. Journal of Small Business and Entrepreneurship Development, 2(1),
107-125.
Hauser, L. (2014). Work motivation in organizational behavior. Economics, Management
and Financial Markets, 9(4), 239.
Klarsfeld, A., Booysen, L. A., Ng, E., Roper, I., & Tatli, A. (Eds.). (2014). 9.78 E+ 12:
Country Perspectives on Diversity and Equal Treatment. Edward Elgar Publishing.
Kulkarni, P. P. (2013). A literature review on training & development and quality of work
life. Researchers World, 4(2), 136.
Lea, M. R., & Nicoll, K. (2013). Distributed learning: Social and cultural approaches to
practice. Routledge.
Mone, E. M., & London, M. (2018). Employee engagement through effective performance
management: A practical guide for managers. Routledge.
Stone, R. J., & Stone, R. J. (2013). Managing human resources. Wiley.
Wrench, J. (2016). Diversity management and discrimination: Immigrants and ethnic
minorities in the EU. Routledge.