Human Resource Management in Global Economy | Assignment

Running head: HUMAN RESOURCE MANAGEMENT IN GLOBAL ECONOMY
Human Resource Management in Global Economy
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1HUMAN RESOURCE MANAGEMENT IN GLOBAL ECONOMY
Introduction
Human resource management (HRM) in global economy deals with anticipating the
future human resource needs, hiring human resources, nurturing the talents, retaining the talents,
allocating overseas assignments and others. This study will analyze critical theories and concepts
of organizational HRM in respect to four areas like culture, diversity management, international
performance management and training and development. Moreover, the study will analyze these
four areas with accordance with the case study of No Name Aircraft. The organization operates
beyond Australia and it has subsidiaries in China, Singapore and Vietnam. The study will align
the theories and concepts of organizational HRM with the four aspects (culture, diversity
management, international performance management and training and development) of this
organization.
Organizational HRM, Diversity Management and Culture
Organizational HRM and Culture
Organizational culture is the system of shared value, assumption and belief, which govern
the behaviour of the employees in an organizational setting. Every organization has different and
unique organizational culture, which acts as the boundaries and guidelines for the behaviour of
the organizational members. According to Hogan and Coote (2014), organizational culture
incorporates the experience, expectation, value and philosophy, which holds the organization
together and is reflected on its self-image, inner working, future expectations and interaction
with outside world. Furthermore, O’Reilly III et al. (2014) opined that organization culture
defines the way an organization treats its employees, customers and other stakeholders. A shared

2HUMAN RESOURCE MANAGEMENT IN GLOBAL ECONOMY
organizational culture facilitates in fostering unity within the employees from different
backgrounds.
As per Büschgens, Bausch and Balkin (2013), effective communication pattern in the
organization culture is extremely important for the success of an organization. Moreover, there
should be free flow of communication both horizontally and vertically among the organizational
culture. Such shared communication pattern makes clear understanding of the organizational
goals and objectives. Therefore, the employees of the organization can better concentrate on the
success of the organizational goals and objectives towards getting high level of organizational
success. However, while looking at the organizational culture of No Name Aircraft, it has been
found that there is a communication breakdown among the integrated team, and across teams and
management. It can actually hinder the success of the organization.
According to Nica (2013), healthy organizational culture always look for opportunities to
grow and always embrace changes for getting high level of success through innovation.
Moreover, organizations can better gain competitive advantage over the competitor organizations
through adapting unique features in their products. Therefore, adoption of changes and
embracing innovation leads to high level of organizational success. However, while assessing the
organizational culture of No Name Aircraft, it has been found that the staffs of the organization
resist any attempt to make changes. Moreover, the Headquarter of the organization has failed to
make a sense of urgency regarding the organizational changes among the employees of
subsidiaries. In this way, the organizational culture can seem to be a hindrance for the
organizational success and improve product quality.

3HUMAN RESOURCE MANAGEMENT IN GLOBAL ECONOMY
Denison, Nieminen and Kotrba (2014) pointed out that healthy organizational culture
develops team and foster teamwork, which collaborates towards achieving organizational goals.
In case of international business, there should be high level of collaboration across the teams for
getting organizational success. In such team oriented organizational culture, employees and
managers rapidly offer their assistance for each other in solving complex organizational
problems. Therefore, collaboration across the teams develops efficient organizational success.
However, in case of No Name Aircraft, there is a lack of integration across the teams. Moreover,
the teams are more likely to work to the specifications for their areas only. In this way, the
working relationships across the teams are suffering. The employees and managers from one
team are not cooperating with the members of other teams. Therefore, there is a lack of shared
knowledge across the teams, which is lowering the quality of the aircrafts.
Apart from that, Lukas, Whitwell and Heide (2013) stated that supportive organizational
culture develops prompt success of an organization. The employees can get adequate support
from the manager towards better understanding the organizational goals and performing complex
organizational task. However, the employees of No Name Aircraft are complaining that they are
not getting adequate support from the managers towards getting organizational success.
Therefore, it can be very difficult for the organization towards enhancing the quality of their
products.
Organizational HRM and Diversity Management
Diversity management defines the strategies of utilizing best practice with proven results
towards finding and creating diverse and inclusive workplace within organization. According to
Olsen and Martins (2016), diversity management is the practice of supporting and addressing