Human Resource Management in a Global Economy

Running head: HUMAN RESOURCE MANAGEMENT IN A GLOBAL ECONOMY
HUMAN RESOURCE MANAGEMENT IN A GLOBAL ECONOMY
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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

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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

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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