IBU5HRM: Improving HRM Practices in International Aircraft Firm

This report addresses critical Human Resource Management (HRM) issues within an international organization, focusing on a case study of 'No Name' Aircraft. The analysis identifies problems such as a lack of effective communication, insufficient cultural diversity practices, inadequate employee training and development, and flawed performance management systems. Recommendations are provided to encourage cultural diversity through inclusive hiring practices, introduce quality standards to improve product delivery, reduce communication gaps by fostering interpersonal relations, and implement timely performance appraisals across all locations. The report also emphasizes compliance with international laws, such as Australia's 'The Fair Work Act, 2009', to ensure fair employee management. Overall, the report suggests actionable steps to improve HRM practices, enhance employee satisfaction, and align organizational goals with global standards. Desklib provides students access to a wealth of solved assignments and past papers to aid their academic journey.

Running head: HUMAN RESOURCE MANAGEMENT
Human Resource Management

HUMAN RESOURCE MANAGEMENT 1
Executive Summary:
In the present environment, business environment and working conditions tend to
change rapidly and continuously. To deal and survive in such changing environment, an
organization should have its prior focus on the management of its human resources. Human
resource management is considered as the invaluable assets for the organization and valuing
these assets can lead to an organization to the path of completion of its objectives. This report
summarises the issues that can be generated in an organization working on the international
level. Further, it also includes the suggestions and recommendations on the basis of a given
case study. At the end of this report, a conclusion has been drawn to summarize the essence
of the entire study.

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Table of Contents
Introduction:...............................................................................................................................3
Issues:.........................................................................................................................................3
Absence of sound communication:........................................................................................3
Lack of cultural diversity practices:.......................................................................................3
Issues related to training and development of employees:.....................................................4
Issues related to performance management:...........................................................................4
Steps can be taken to deal with identified issues:......................................................................5
Encourage cultural diversity:..................................................................................................5
Introduction of quality standards:...........................................................................................5
Reducing communication gap:...............................................................................................5
Measurement and appraisal of employee’s performance:......................................................6
Recommendations on their implementation processes:.............................................................6
Introduction of Cultural diversity practices:...........................................................................6
Compliance with international Laws:.....................................................................................7
Compensation and Benefits:...................................................................................................8
Training and Development:....................................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11

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Introduction:
Human resource management includes all management practices and decisions that
directly and indirectly affect the people working in the organization. Hence, human resource
management is a coherent and strategic approach to managing employees of the organization
that are known as most valuable assets of the organization. In easy words, HRM means
providing employment opportunities to people, assist them in developing capacities,
maintaining, utilizing and compensating their services according to the requirement of the
organization. HRM practices are carried out by all national and international level firms
(Hashim & Hameed, 2012). International Human Resource Management includes allocating,
procuring and effectively utilizing human resources in a corporation working on the global
level while balancing the differentiation and integration of human resource practices in
foreign locations. This report focuses on the issues that can be occurred in the environment of
an international organization. Adam O Meara, an international human resource management
consultant, has been given a contract to identify the issues and then to provide suggestions
and recommendations that can help the company in managing its human resource in an
effective manner.
Issues:
Meara identifies the issue that is prevailing in the environment of ‘No Name' Aircraft.
Some main issues out of those can be summarized as follows:
Absence of sound communication:
Meara analyzed that the major issues that are the root cause of all other issues in lack
of communication among the employees of the organization. The employees of senior
employees of the organization are not much interested in work with new employees. They
always maintain the communication gap with new employees and with their juniors. The
impact of this lacking of communication is being resulted in the quality of produced products.
The products are being delivered to customers without the final modification because the
employees in the various department do not communicate with each other regarding the
products and their specifications. It is also affecting the goodwill of the organization and the
faith both, the Customers as well as the stakeholder’s (Guest, 2011).
Lack of cultural diversity practices:

HUMAN RESOURCE MANAGEMENT 4
Meara identifies that there is lack of encouragement to the diversified workforce in
the environment of ‘No Name' Aircraft. The hiring of employees in China is discriminated on
the basis of disabilities of employees. China's recruitment and selection department do not
hire the employees if they are suffering from any kind of disability irrespective of their skills,
qualifications, and experience. This adversely affects the productivity of the organization.
The image of the organization in the sense of valuing people also gets down by given
preference to physical appearance to the employees. HR department does not have set
guidelines which may govern the employees to work and to behave with the employees from
the different religion, beliefs, community, region, and country. The managerial level, as well
as operations level employees, are directed to communicate neither professionally not
personally. Thus the important information regarding the production of aircraft does not
reach to the operations team timely and it is resulting in decreasing the quality of aircraft
(Genc, 2014).
Issues related to training and development of employees:
As ‘No Name' Aircraft is an organization working on the international level, the
employees need to train about the policies and procedures related to the company as well as
related to the global industry. HR department is not concerned about this perspective as the
training and development programs are not organized to inform and educate the employees
about the working procedures of the organization. Training programs should be in the form of
seminars, meetings, and conferences (Bakanauskiene & Brasaite, 2015). The company is also
not concerned about the training of those employees who are going to take transfer in the
subsidiary office of the company in near future. Such employees are facing problems related
to languages, working culture, and communication system of the new office. The guidelines
for the training of new employees are also not clearly specified by HRM department. Thus
new employees are also facing problems because they are directly sent for the working
purpose without any training programs. On job training programs running the company are
not as much help as complete training programs are considered (Bird & Mendenhall, 2016).
Issues related to performance management:
International performance appraisals are not taken into account to measure and
appraise the performance of employees of ‘No Name' Aircraft. The employees are not
promoted and even their performance is not reviewed on regular basis. The performance

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review is done only for the employees working in Head Office (Australia) and therefore the
same are promoted. There is no any performance review and appraisal process is defined by
the HR department to measure the performance of its subsidiaries. This generated a sense of
being neglected by the employees by the management in comparison to others. It also affects
their productivity and their dedication towards the organizational work and objectives
(Bratton & Gold, 2017).
Steps can be taken to deal with identified issues:
Adam believes that above-mentioned issues can be sorted and controlled by following
some below mentioned corrective actions:
Encourage cultural diversity:
The organization must encourage the hiring of the diversified workforce from
different countries and religions. For this purpose, recruitment and selection process of the
organization must be altered and new policies should be included in the same. Similar job
opportunities should be provided by the organization to all the applicants having desired
requirements for the job profile. Recruitment of the employees should not be affected on the
basis of sex, religion, race, beliefs and social values (Mellahi & Collings, 2010). This will
result in increasing the volume of competent professional having their own and new ideas for
performing the same task. The HR department must have to introduce set of guideline to
manage the conflicts among employees because there are more chances of arising conflicts in
the organization providing diversified employment to the society (Deresky, 2017).
Introduction of quality standards:
The HR department must introduce a set of quality standards for the final product.
This will help in reducing delivery of incomplete product will also enable the management to
evaluate the performance of its employees up to some extent. If the aircrafts are being
prepared after considering the quality standards, there may be less chances of mistakes and
dissatisfaction of customers and stakeholders. The news well as old employees of the
organization must be informed about such standards and they should be highly instructed to
work accordingly (Al Ariss & Sidani, 2016)
Reducing communication gap:

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According to Meara. Human resource department of the company must take actions to
reduce the communication gap among employees. Better communication will facilitate the
use of knowledge and experience of each other. If employees are able to talk to each other
without any hesitation and fear, then they will able to work together with the help of each
other and thus quality of work will be increased automatically. The management and HR
department should organise indoor as well as outdoor activities so that employees may get
familiarise with each other and can build interpersonal relations with each other (Brewster et
al, 2016). These activities may include playing games during interval times or going for
picnic on week offs etc. The management of the organization should divide the
comprehensive tasks in various teams. Each team must include the employees who faces
difficulty in communication each other. During the activities of task, they will tend to
communicate with each other and this will result in reducing communication gap between
them (Dubravska & Solankova, 2015)
Measurement and appraisal of employee’s performance:
The organization should ensure that there should be guidelines for timely and accurate
measurement of the performance of the employees. The performance measurement should be
conducted for all the employees of the company either they are working in head office or
subsidiary offices. For this purpose, employees must be well informed about the criteria of
their performance so that they can work accordingly. Performance appraisal and
measurement programmes encourage the employees to work in their best possible way.
Appraisal and recognition at the workplace helps in creating a sense of being valued by the
organization (Farndale et al, 2010).
Recommendations on their implementation processes:
Introduction of Cultural diversity practices:
Meara identifies that a silent issue in managing human resources in the globalized
environment is maintaining and understanding cultural diversity. There is lack of support of
employees to each other. The mismanagement also exists in the ratio of team leaders to the
team members. The human resource department of ‘No Name' Aircraft should hire
employees from different cultures and different on the basis of their knowledge and potential
(Nasir, 2017). For example, if an employee is being hired form England, he might have

HUMAN RESOURCE MANAGEMENT 7
diversified ideas for doing the same work that may either be time-saving or not. An
organization should always be open to adopting cultural differences and new styles of
working to maintain a hallmark of cultural diversity in human resources. The company
should hire a person with disabilities if they have potential and knowledge similar or more
than the normal persons. The HR department should also introduce a clear set of practices
that may help the employees in understanding the organizational goals and therefore their
personal attributes towards the organization (Nkomo & Hoobler, 2014).
Compliance with international Laws:
Adam recommends that in order to expand the business in the global marketplace and
for hiring employees from diversified cultural and geographical backgrounds, the company
may have to adopt international laws for governing its workforce. Doing business in
Australia, for example, the company must have to follow ‘The Fair Work Act, 2009’ to
ensure the equality in managing the performance of the employees (Meyer et al., 2011).
Adoption and compliance with international laws can also be an issue for under-qualified HR
managers and business owners, because these laws may be complex to understand and
difficult to implement. Compliance with international laws also increases stakeholder's
believe that all the functions and activities are carried out according to the process. Adam has
an opinion that the HR department of ‘No Name' Aircraft should be well informed about the
legal requirements related to the operations of the business that can help the managers in
understating the complexity of laws (Paille & Boiral, 2014). The implementation plan that
can be adopted by the organization for such purpose can be defined as follows:
Embracing Diversity
Equal Employment
Opportunities
Affirmative Action
Equity in the Workplace

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Compensation and Benefits:
Sound compensation and benefits are considered as the backbone of any HR policy.
In case of global human resource management, compensation and benefits are more
important to ensure the work-life balance of the employees. ‘No Name’ Aircraft should
consider sound and attractive benefits and compensation plans and policies to encourage
employees (Mura, 2012). The compensation and benefits plans are not related only to
financial benefits, it may also include the availability of flexible shift timings, extended
holidays, maternity leaves, and on-site care for the children of female employees or single
parents. The idea of work-life balance includes the initiatives and programs that may improve
their professional and personal lives. It may result in increasing enthusiasm in the employees,
providing opportunities for communicating each other and ultimately results in increasing the
productivity of the organization (Shuck & Wollard, 2010).
Individual Job
Compensation
Executive CompensationSales Compensation
Compensation
Plan Design
Total Rewards
Analysis
Annual Salary Review
and Adjustment Variable Pay
Introduction of international laws applicable to the
organization
Monitor and document the use and applicability the laws
Continue Promotion, operationalization and use of laws.
Conduct activities that support the compliance of laws.
Establish a plan for enforcement of laws.

HUMAN RESOURCE MANAGEMENT 9
Training and Development:
Adam also recommends that along with compensation and benefits, HR department
must have recognized the need for training and development programs. Training programs
should be organized by the company for the new employees to make them understand the
cultural environment, working strategies, working scenarios of the organization. Same should
also be organized for the existing employees to update them on the changes in the policies
and environment of the organization (Tarique & Schuler, 2010). Training programs include
meeting and in-house seminars to provide knowledge about the on job skills that are required
to work in ‘No Name' Aircraft. Human resource department should also arrange language
classes, especially for the employees who are either going or have come, to the work in any
other subsidiaries of the company. It would help the transferees in understanding the people
and work in the new country. The employees may also be able to communicate with other
new colleagues if they are known to the language of that country. Professional training and
development programs help the employees to improve their skills in finance trends, business
development and global marketing (Wrench, 2016). Below diagram shows the process of
hiring and training the employees. Implementation plan for the purpose of training and
development of employees can be defined as follows:
ASSESSMENT DESIGN IMPLEMENTATION EVALUATION
Define Objectives
Develop Plan
Acquire Material
Select Trainer
Schedule the
Program
Need Assessment
Components of
TNA
Deliver the
Program Training Outcome

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Conclusion:
On the basis of above discussion, it can be concluded that international market is
changing rapidly. Being the part of the organization, human resource management, and its
managers must be ready to deal with the impacts the environmental changes. In order to
ensure a positive response to such changes, the management needs to introduce some
programs and techniques that may enforce the workers to flourish their skills and capabilities.
The main goal of this report was to evaluate the issues in human resource management in the
global environment and thus to provide some suggestions and recommendations on the basis
of given case study. This information provided in this paper is based on detailed study of
various theoretical and practical examples. The information contains the relation between the
issues and appropriate recommendations based on the theories of various authors in different
journal articles. According to the result of above study, for managing and achieving
profitability in business along with the satisfaction of customers, in the long run, stakeholders
and employees, human resource department must have sound and effective strategies and
policies. As ‘No name’ Aircraft is facing dissatisfaction form stakeholders, customers and
also from its employees, the main reason behind this is the ineffectiveness of HRM
department. The study concludes that ‘No name' aircraft and other companies working on the
international level should introduce its HR policies to deal with current issues as well as to
ensure that such issue may not appear again the future.

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