Organizational Concepts of Human Resource Management in a Global Economy

Running head: HRM
Human Resource Management
Name of the Student:
Name of the University:
Author Note:

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Introduction:
The essay aims at providing an insight into the organizational concepts of human
resource management in a global economy in context of a case study. The case study in this
particular essay revolves around the discussion of ‘No Name’ aircraft of Australia. The aircraft
also operates out of Australia and have subsidiaries in China, Vietnam and Singapore. Presently,
the CEO of the company Adam O’Meara has become concerned about the organizational profits
and worried over its imminent take over. At the same time he also realized that he needed to
maximize the return on the investment of the shareholders along with obtaining a higher share
price otherwise it would not only be the company but his own job that would be at risk. It has
been found that No Name sold and builds aircraft to close to 50 countries. Various parts of
aircraft get produced in Vietnam and China with the design engineers operating out of the
Singapore. The company however assembles its parts in Australia and Singapore.
The essay critically evaluates four key areas of human resource management. This
includes culture, development and training, diversity management and international performance
management. Culture of an organization comprises of the beliefs, values, behavior and the
attitudes that the employees use and share on a day to day basis at the workplace. In other words,
culture determines the ways in which the employees describe the place of their work, the way in
which they understand business and the way they see them as portion of the organization.
Development refers to the bringing of all the employees to the higher level so that they are able
to possess similar knowledge and skills while training helps in strengthening the skills that each
of the employees requires improvement. Thus, development and training helps in reducing any
weaker links with the company that relies on the others for the completion of the basic tasks
related to work. Diversity management on the other hand refers to the actions of the organization

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that aims at promoting the greater inclusion of the employees from the different background into
the structure of the organization. In order to efficiently manage diversity within the workplace,
leaders require an understanding of the background and how the beliefs and behavior affects the
process of decision making within diverse environment. Nevertheless, performance management
is considered as the process that allows the multinational enterprise or the international company
in evaluating and constantly improving the corporate and the individual performance in relation
to the pre-set targets and goals.
Discussion:
Diversity Management
According to Guillaume et al. (2017), workplace diversity refers to an inclusive
workforce with various differences between the individuals within an organization. Diversity not
only refers to how the individuals identify themselves but also the ways in which they perceive
themselves. Diversity within the workplace encompass gender, race, ethnic group, religion, age,
citizenship status, sexual orientation, physical and the mental conditions Organizations
committed towards the recruitment of the diverse workforce have huge applicants pool that leads
to finding qualified candidates and reduces the time taken for filling the vacant position. It has
been found that business that does not recruit from the diverse talent pool runs the risk of
missing on the qualified candidates and might face more difficulty in filling the key roles thereby
increasing the recruitment cost.
Kyalo and Gachunga (2015) states that diversity management is an aspect which is undertaken
by firms so that it not only becomes the best and is capable of undertaking competition.
According to Ghorashi & Sabelis (2013), there are various approaches to diversity management.

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Some of these approaches including the consultant practitioner approach and the mainstream
stream approaches.
As stated by Kulik (2014), the consultant/practitioner approach aims at focusing on
the positive aspect of making the workforce diverse for increasing the productivity. It has been
found that through this approach an organization is able to focus on the benefits that diversity
brings to the organization. On the other the mainstream approach is supported by social
identity and the self categorization theory. The social identity helped in describing the behavior
of the group and the membership within particular group while self categorization theory is
stereotyped by the people through the attribution of attitude, behavior and the other attributes.
According to Singh, Winkel & Selvarajan (2013), there are various theories of managing
diversity. These theories include the contingency theory, goals theory, learning theory and the
psychology organization theory. Contingency theory mentions that diversity management and
the organizational success depends on the attitude of the organization in varied areas that
includes organizational environment, culture strategies and individual employees. Goals theory
states that the conflict with the organizational goals and clarity results in lower organizational
performance (Van Knippenberg, van Ginkel & Homan, 2013). Therefore, there is a need for
clarifying the goals through efficient diversity management. Learning theory puts across that
programs of the diversity management acts as essential means of the rethinking process and
hence the sole task of an organization lies in elimination of needless task so that it contributes to
improving the performance within organization. Following these theories helps an organization
in improved understanding of workplace diversity and improvement of workplace employees.