Human Resource Management in a Global Economy

Running head: HUMAN RESOURCE MANAGEMENT IN A GLOBAL ECONOMY 1
HUMAN RESOURCE MANAGEMENT IN A GLOBAL ECONOMY
Name
Institution

HUMAN RESOURCE MANAGEMENT IN A GLOBAL ECONOMY 2
HUMAN RESOURCE MANAGEMENT IN A GLOBAL ECONOMY
Introduction
Human Resource (HR) is regarded as the backbone of an organization and is relevant to
the company’s performance and productivity. Managing employees as well as staff practices
along with policies enables a company to function successfully. Effective human resource
management is crucial if an organization is to entice and hold potential employees. Reflecting on
the case study of ‘No Name’ Aircraft, the CEO, Adam Omeara, is increasingly becoming
worried regarding the company’s profits. The CEO is worried about an imminent company
takeover. As such, he realizes that there is a need for maximizing the shareholders’ ROI as well
as acquire a higher share price. If this is not achieved, ‘No Name’ Aircraft could be at risk, and
this means that the CEO’s job could as well be on the line. The company conducts its business in
Australia and has got subsidiaries in China, Vietnam, and Singapore. Most of the company’s
aircraft parts are manufactured in China and Vietnam. In addition, most of the company’s design
engineers operate in Singapore. However, to maximize the shareholder’s ROI on investment,
Adam has to deal with cross-cultural issues because the organization operates in different
countries with varying cultures. Also, it is important to manage diversity among employees,
manage international performance, including training and developing the employees. As an
International HRM Consultant, I will identify issues in the case study and offer suggestions on
how the HRM can best deal with these issues. Nonetheless, a recommendation and an
implementation that ‘No Name’ Aircraft can use to eliminate the issues will be developed.
However, since the research is based on a case study, there are several limitations such as the
inability to replicate and there are also concerns regarding reliability, generalizability, and
validity of the results.

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Issues Identified in the Case
Lack of Training and Development
The human resource function of training and development involves developing the
employees’ knowledge, skills, and abilities to meet the needs of the organization. The reason for
the training and development is to create a motivated, competent, and high performing workforce
that will future demands of the organization. However, in the “No Name” airline, training and
development has proved to be an issue. One of the employees who is a chemical engineer was
moved to Singapore (Briody, Meerwarth Pester & Trotter, 2012). The employee was not offered
any type of training that will be useful in integrating into the new working environment. The
people at Singapore were doing things differently and the employee was not used to that. This
took the employee quite a long time to adjust to the task. The No Name airline does not offer
systematic management and planning programs to employees (Hogan & Coote, 2014). This
makes employees uninformed of their career anticipation within the organization as career
development plans are not utilized. Many organization encounter training and development
challenges such as identifying the training need to be delivered. Another training and
development issue faced by the most organization is global workforce and cultural differences.
Considering the diversity and breadth of the workforce, it becomes a challenge for managers to
offer training to employees (Acker, 2012). This is due to cultural and language issues which
should be put into consideration.
Diversity Management Issue
Diversity refers to respecting every person in the organization. This includes respecting
the race, gender, ethnicity, age, physical disabilities, sexual orientation, and religious beliefs of

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the workforce. The diversity issue in the No Name airline is embracing the rich value of working
with diverse persons (Brown, 2015). The organization does not tolerate working with people
from different generations. The working relationship in the organization is strained. In China, the
airline does not recruit people with disability. The managers do not consider disabled people
even if their skills are beyond and above their candidates. Another issue in the airline is that the
HR department does not have precise practices to assist employees to understand each other
(Shore, et al., 2012). Moreover, HR does not put into consideration the perception of employees
on each other. The interaction of employees is basically based on the perception they with each
other.
Across the globe, both profit and non-profit organization which has not embraced
diversity are affected by diversity issues. The first diversity issue that affects an organization that
has embraced diversity is gender issues (Stahl, Maznevski, Voigt & Jonsen, 2012). Such an
organization experience ‘women and men’ issues. The issue that they face is related to equal pay
and opportunities. Women are denied opportunities due to their or some are viewed as incapable
of handling some tasks. Some organization employs people depending on their age. Some prefer
teenagers since they view them as people who still more efforts to handle tasks and rea more
innovative (Nielsen & Nielsen, 2013). Lack of diversity in the workplace discourages teamwork,
respect, and acceptance among the workforce.
Culture
Organizational culture is important since it defines a company’s internal and external
identity. A positive culture in an organization may transform employees into advocates.
However, this is not the case with No Name airline. The company’s culture has developed into a