Human Resource Management in a Global Economy

This essay discusses the human resource management issues in the global environment and provides strategies to overcome them. It focuses on culture, diversity, effective communication, and international performance management.

Running head: HUMAN RESOURCE MANAGEMENT IN A GLOBAL ECONOMY
Human resource management in a global economy

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Introduction
The key purpose of this essay is to increase the profitability of ‘No name’ aircraft. This essay has
a wider scope in terms of managing the culture, providing training and development to
expatriates, diversity management and using the effective international performance management
techniques. From the case study, it is addressed that CEO of ‘No name’ aircraft Adam O’Meara
is concerned due to declining profitability. ‘No name’ aircraft deals in Australia and it's
subsidiary in China, Singapore, and Vietnam. It is assessed that there is a lack of communication
between integrated and across team and management.
Along with this, employees are resisting to change in the workplace. Moreover, in ‘No name’
aircraft, there is a lack of effective communication between subsidiaries and headquarters. Due
to this, quality issues are faced by the company and stakeholders has given the warning to return
partial or full amount. The key cause of the quality issue is a lack of support among teams. In
addition, the Assembly team observes that there is a lack of team cooperation. It is also
addressed that the behavior of senior management is not effective in terms of recruiting the
people.
Moreover, there is lack of recruitment of individual with a disability in China. In addition to this,
there is discrimination in recruitment. Along with this, there is no clear set of practices that aid
the workforces to understand each other. It is also stated that there is no performance review and
formal procedure for motivating the expatriates.
The company also use Ad hoc approach for motivating the people but it is not effective. There is
a lack of decision such as surplus parts are ordered from Singapore so that it creates conflicting
performance outcomes. It is also identified that training is provided only for half a day for
workforces leaving the Australia in Subsidiaries. Moreover, there are no feedback avenues

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available to integrate the new environment. ‘No name’ aircraft does not provide training to
employees who move to Singapore.
Thesis statement
This essay will discuss the human resource management issues in the global environment. It
would also describe different factors that create a challenge for ‘No name’ aircraft to increase its
profitability. These challenges are ineffective organizational culture, lack of international
performance management policies, diversity issues and inadequate training and development
program for expatriates. Thus, Adam O’Meara should use effective international human resource
management policies to overcome these issues.
Strategy to overcome the issue of ‘No name’ aircraft
Culture
According to Correll Suzuki and Martens (2017), ‘No name’ aircraft should use the effective
organizational structure as it facilitates the freedom to an individual with respect to the
cooperative team that is performing with respect to shared goals. Along with this, healthy
competition can be beneficial in Australian based ‘No name’ aircraft and its subsidiary.
However, when an employee will be unable to attain the shared vision then it may turn
backbiting as well as mutual disbelief. The structure should focus on teamwork as well as
cooperation support the workforces to learn each other and to perform good work. Along with
this, rewarding the employees collectively by bonuses and increased advantageously by sending
the clear message that when each workforce work together, they can get benefits.
In contrast to this, Hitt Li and Xu (2016) stated that ‘No name’ aircraft can address the
significance of communication between all departments and the level of a company. Competent

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managers could be proactive in building the structure that leads and enables communication in
order to make freely discussion between team members.
In support of this, Cuervo-Cazurra (2016) stated that regular meeting should be conducted
between competitors; ideas should be taken from employees to make enhancement as well
periodic one-on-one communication can support to keep open as well as productive
communications. When workforces feel that their input is considered seriously and acted upon,
then they would be more approaching regarding productive feedback.
Bromiley and Rau (2016) argued that good intention is not enough hence ‘No name’ aircraft
should consider effective communication as a fundamental element of a company. HR manager
should lead the workforces for sharing their competency and understanding using social media
practices like blogs, forums, and wikis. Moreover, offering expressive connections to an
individual who cannot work in the same place, and considering online communication
documents understanding like the troubleshooting process as well as solutions.
In support of this, Bromiley and Rau (2016) illustrated that ‘No name’ aircraft can obtain the
feedback through the team in order to assess the sources of conflict. For example, problems
involve one team member is unresponsive, inability to attain deadline as well as conflict over
how effectively complete the project with personality clashes.
In contrast to this, Rao and Tilt (2016) stated that group can be tempted to let concern sort
themselves out over time like technique cannot be optimal. It is effective to identify the concerns
related to the moment they arise. Moreover, the HR manager should motivate to discuss the
concerns in the group rather than letting the issues annoying and grow bigger.
Diversity

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According to Durand Grant and Madsen (2017), ‘No name’ aircraft should develop the diversity-
friendly regulation. For instance, offering the flexible working hours as well as on-site children
can make the business a more appealing place for young women as well as mothers to perform.
In addition, permitting the workforces to take time off for the different religious holiday can help
‘No name’ aircraft for attracting the more religiously diverse individual.
In support of this, Knight and Liesch (2016) stated that the company can make the office usable
by an individual with a range of disabilities can support to attract more skilled individual. These
policies could support the company for finding new consumers. For instance, managers may
consider employment policies that are deemed friendly to working with a disabled person.
In opposed to this, Boone et al. (2019) evaluated that ‘No name’ aircraft can incorporate the
diversity into promotion and hiring policies of the corporation. It can set the standard for
promotion and hiring that are relied on merit and not allocations. It should also make those
policies are visible; hence all workforces and potential workforces should understand that
promotion relies on merit and ability. The organization could promote the diversity at the time of
hiring and developing policies, which require equal behavior for each individual and needed all
new and existing workforces to agree with such policies. It can also be effective in advertising
and encouraging the diversity.
Communicate Effectively
Lopes and Ferraz (2016) viewed that effective communication is an imperative part of the
promoting the diversity. Management could be accountable for communicating hence
organization should use clear language to identify the goals and diversity programs for obtaining
a reliable conclusion. The top management of the firm should also use clear guidelines in
controlling those individuals who are engaging in act of bullying and testing at the working place

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as it would also create the diversity issues at the working place. It is also stated that executives
should be willing to listen to the employees who feel that their dealing was influenced by
ethnicity, age, disability, and gender. It could also help to promptly address the concern of
employees.
In contrast to this, Marano et al. (2016) opined that the human resources executives comprehend
the actual skills of the employees and try to improve it easily. The small business could require
addressing the methods to complete with their major supports, which have a more imperative
resource in the recruitment of the workforces. The owner of the small business could use a
recruitment process for recruiting the specified candidates for the vacant seat. It could also
require the educational background and non-traditional educational background of other
countries. In addition, it is also examined that the talent could be imperative in managing the
talent and get a higher outcome.
In support of this, Kolk (2016) viewed that if the workforces are happy and effectively dealing
with the conflict then they would be capable of more efficient and productive. The business
leader of the organization could be capable of managing the diversity issues and build the team
accordingly. It is not solving the diversity issues but also supporting each member of the team to
comprehend the value of team member. It is also addressed that the mutual respect and
understanding could create a transparent and strong relationship among the employee, which
could lead to getting a positive outcome.
International performance management
Hoang Abeysekera and Ma (2018) confirmed that the performance appraisal method could be
effective to determine the performance of employees and make the decision accordingly. There
are certain methods that are considered by ‘No name’ aircraft to evaluate different methods and

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reach a reliable conclusion. These methods are a home-based approach and host-based approach
that can be used by ‘No name’ aircraft to make a decision accordingly.
In support of this, Cavusgil and Knight (2015) illustrated that in ‘No name’ aircraft, each
subsidiary uses different rules and regulation for evaluating the performance of employees.
There is also one appraisal system that is used to make a decision in performance management.
Hence, the effective appraisal method should be implemented in both Australia and its
subsidiaries nation, which could directly impact on the organizational performance.
On the other hand, Brannen et al. (2017) argued that expatriate evaluations should be applied by
using the locally based methodology, while the host framework should be utilized for assessing
third-country nationals (TCN) and HCN (host country nationals). An integrative methodology
can likewise be utilized by consolidating both home and host evaluation strategies as it would be
beneficial for gaining profitability. In addition, the 360-degree input should be considered by the
‘No name’ aircraft. This can aid to decline the issue of biasness by reducing the criticism;
including friends who work inside closeness of the expatriate.
In support of this, Certo et al. (2017) confirmed that ethnocentric approach should be used by
‘No name’ aircraft as it offers chances of worldwide introduction to representatives who work in
the parent organization. It also helps to understand the social comparability with ‘No name’
aircraft and ensures different exchange of business and the executive's practices. Through this
strategy, licenses could be more tightly control. It facilitates closer coordination in international
subsidiaries for headquarter of ‘No name’ aircraft. Through this approach, ‘No name’ aircraft
can develop the association among team members of ‘No name’ aircraft.
In contrast to this, Bergh et al. (2016) addressed that the key limitation of using the ethnocentric
strategy is subsidiaries may create the issues of flexibility in existing culture. There is also a need

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for high exchange expenses and costs as well as, sending administrators to backups may result in
close to home and family concern. It can also create a high disappointment rate and has a
disincentive impact on board assurance of ‘No name’ aircraft.
Training
Wolf and Floyd (2017) evaluated that the cross culture training is defined as the training given to
workforces about host countries. To focus on this strategy can help the ‘No name’ aircraft for the
smooth running of the business around the world. The diverse strategy is fundamental for
working together in the present situation by involving several countries. Culturally diverse
training can be extensively separated into two parts such as General awareness training that
supports to deals with the foreign clients, expanding the knowledge about foreign workforces of
subsidiaries like China, Singapore, and Vietnam, encouraging negotiations across the nations,
managing staff belonging to diverse cultures.
In contrast to this, Head and Alford (2015) stated that another type of training could be particular
training with respect to the specific culture of subsidiaries. This is helpful for the general
population who has a higher time to visit and interface with that country. The training should be
associated with general opinions, values, customs, morals, and conventions of China, Vietnam
and Singapore. Along with this, ‘No name’ aircraft can use the hofstead model during training to
comprehend the diversity issues of the specified country. It is discussed as below:
(Sources: Nason and Wiklund, 2018).

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In support of this, Nason and Wiklund (2018) evaluated that hofstead model is beneficial to
understand the culture of subsidiaries nation by using the different factors such as power
distance, individualism, masculinity, Uncertainty avoidance, long term orientation, and
indulgence.
Conclusion
With respect to the above conclusion, it can be summarized that ‘No name’ aircraft faces issues
of declining profits because of ineffective culture, inadequate diversity policies, inappropriate
international performance management and lack of training and development policies related to
expatriates. Hence, it can be summarised that ‘No name’ aircraft should consider effective
organizational structure in order to make a positive culture of the company. This culture would
be beneficial to integrate the teams and across teams. It can also focus on change management
policies to influence the employees who resist change.
HR manager can focus on the effective communication between subsidiaries as well as
headquarters. It would be beneficial for improving the quality of products produced in China and
Vietnam in 6 months. The company should focus on reward strategy for employees such as
compensation to employees for supporting others as it would be beneficial to increase the
support of team members and increases team cooperation. It can be also concluded that ‘No
name’ aircraft should emphasize an effective recruitment strategy in recruiting the people in
China as it would encourage the HR manager to recruit the people with disability. It should also
eliminate the discrimination from the recruitment strategy.
The company can also emphasize the set of objectives that support the workforces to understand
each other. It can be also summarised that diversity policies are beneficial for encouraging the
people to work with a diverse background of people. It can be also concluded that the company

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should use performance review strategy and formal appraisal procedure for expatriates. It can be
also summarised that the HR manager can focus on the ethnocentric approach in terms of
performance appraisal for expatriates. The company can emphasize on the feasible decision-
making process for producing the parts of Singapore. It can also focus on obtaining an effective
performance outcome. It can also set the parameter for performance measurements.
It can be concluded that the company should use appropriate training and development as it
would be effective for employees who left the Australia to work in the subsidiaries. It can be also
summarised that the company should use the feedback avenues for employees in order to give
comments on enhancing the expatriates training. It can be also concluded that ‘No name’ aircraft
should provide the training to employees who move to Singapore. It should also provide the
training related to local culture and practices to workforces who move to Singapore, Vietnam,
and China.
It should also develop the management development program and use effective workforce
planning as it would be beneficial for obtaining the favorable outcomes. It can be illustrated that
there is a certain limitation to consider the strategies related to culture, training and development,
international performance management and diversity. These limitations are time-consuming,
complexity in implementation requires skillful planning and complex procedure.
There are certain factors that help to understand the IHRM policies and it directly influence the
‘No name’ aircraft to increase its profitability. In further research, the company can focus on a
competitor’s strategy to get competitive advantageous. The recommended strategies of this essay
would have a wider scope for an academician to understand the diversity management, develop a
positive culture, offers training and development at a global level and international performance
management.

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