Human Resource Management In Global Economy Report

Running head: HUMAN RESOURCE MANAGEMENT IN THE GLOBAL ECONOMY
Human resource management in a global economy
Report
Student Name
[Pick the date]

HUMAN RESOURCE MANAGEMENT IN THE GLOBAL ECONOMY
1
Introduction
This report is focused on Good Luck’ Aircraft case in which CEO is suffering from profit issue.
Report also includes human resource management issues faced by this company in their home
country Australia as well as their subsidiary in other companies China, Singapore and Vietnam.
This report is focused on issues related to diversity management and culture. In addition, this
report also explores important of performance management and role of training and development
which is essential for progress of any organization, especially which is operating on international
level. It also includes possible suggestions which can improve the present situation of Good
Luck Aircraft.
Diversity Management and Culture
Diversity management is considered important for the growth of every organization in this
competitive business market. Diversity is mainly linked with non -discrimination policy of
organization related to caste, religion, background, gender, physical appearance and so on.
Diversity is not just adding numbers it is actual formation of connection across the world (Trittin
and Schoeneborn, 2017). But in this case, it has been found that there is serious issue related to
diversity management not only in the home country but also in their subsidiary plants which are
located in China, Singapore and Vietnam. It has been explored that there is no bonding between
team as well as in team members which has directly impact the quality of the product and
brought Good Luck Aircraft on serious note. Employees at senior positions are not interested in
working with fresher and there is also discrimination in the team on the base of race (Holck
Muhr and Villeseche, 2016). Some employees believe that their race is superior to others. Every
person is working for their personal growth and is not offering any kind of help to other team
members even if they are working in a team. As a result of this, team is suffering from
ineffective communication between them which often results in poor quality and delaying of
projects (Cho, Kim and Mor Barak, 2017). Effective communication is known as life line of any
business operation and success of every operation is totally dependent on communication
patterns. Culture is actually a representation of organization positivity in the market. If an
organization is having a positive culture it becomes very easy for the team to achieve its goal
with effectiveness and efficiency. Positive culture always keeps employee motivated which often
results in developing a supportive work environment in the organization. But in this case, things
were completely different in terms of culture. Culture of organization was so negative that it has
made employees resistant to any change. Even they were not interested in meet organization
goals and always keep their personal goal in top priority. This culture has seriously affected
quality and performance of the team members because every employee is taking their task as a
job and not as their responsibility (Ramdhani, Ramdhani and Ainissyifa, 2017). As a result of
this, there is no coordination between teams as well as teams members. In fact, instead of
supporting each other, they are just putting their leg in work of other teams intentionally. This

HUMAN RESOURCE MANAGEMENT IN THE GLOBAL ECONOMY
2
case clearly states that there is serious issue related to discrimination in case of hiring disable
candidates even if they are much capable than others in terms of knowledge as well as
experience in China plant. Disable candidates are clearly deprived of their rights given by the
government. These subsidiaries plant has completely ignored importance of knowledge and skill
and has only focused on physical appearance. It seems that they have adopted policy that has
completely overlooked the human rights of disabled people which are in need of employment in
order to earn their bread and butter. This issue also belongs to one of the biggest unethical
practices on the global platform within business market (Harwiki, 2016). It seems that this
organization only displays diversity culture but actually they are not living this culture. This
culture has created gaps in every stage of the right from top to bottom level which has actually
impact flow of information and their importance in the organization.
International Performance Management
International performance management is known as process that permits organizations to operate
on the international level to explore and enhance performance of their employees as well as
approaches. In human resource management performance management plays a very significant
role in the organization (Bititci, Cocca and Ates, 2016). Organization mainly uses performance
management to explore strength and weakness of their employees so that they can plan their
training section accordingly. It provides a clear direction to the organization and its employees
towards their future goals. Performance management process includes two key steps, one is
observation and other is judgment on the base of performance evaluation (Vij and Bedi, 2016). It
continuously works on their strategic process in order to enhance their global operation with the
help of their employee by presetting goals. It also acts as assistant who will help in exploring
present and previous performance of the team as well as employees in the organization.
Performance management has direct relation with appraisal system which is essential from
employee growth (Smith and Bititci, 2017). But in this case, international performance
management was very poor that has directly impacted overall performance of the organization in
terms of quality and efficiency. It was seen that except home plant in Australia none of the three
subsidiary plants has adopted any effective performance management system. As a result of this,
employee does not have a clear direction and therefore they have limited themselves to their
personal goals. In addition, due to lack of effective performance system employees working in
plant of China, Singapore are facing issues that they are not being appreciated for their work and
this has created negative thoughts in the minds of employee (Wu and Voss, 2015). It seems that
employee has believed that employee is not getting any benefit by putting their efforts in support
of organizational goal. Without having effective performance it becomes very difficult to
understand skill gap in employee on which training and development program is based.
Headquarter of Good luck company is not paying attention to the economic factors which have a
direct impact on the business market. Even manager in this company is facing much pressure
related to expense and expectation (Sutheewasinnon, Hoque and Nyamori, 2016). In addition, it
has been found that subsidiaries are not allowed to take their own decision related to any policy
and every decision is being decided by home country. As a result of this, conflict performance