Impact of HRM on Employee Performance

The assignment discusses the importance of Human Resource Management (HRM) in providing protection to employees against discrimination laws, motivating them for work and performance, and directing impact on profit. It also covers training and development that helps increase skills and efficiency of employees, developing new ideas related to production, and increasing sales.

No
Aircraft company
case

Table of Contents
INTRODUCTION ..........................................................................................................................4
MAIN BODY ..................................................................................................................................4
Culture of “no name” aircraft......................................................................................................4
Diversity management ................................................................................................................5
International performance management .....................................................................................6
[Source : 360 Degree Appraisal, 2017]............................................................................................7
Training and development ..........................................................................................................7
Recommendation ........................................................................................................................8
Conclusion ......................................................................................................................................9
REFERENCES................................................................................................................................9
360 Degree Appraisal.2017 . [ONLINE] Available through :<https://studiousguy.com › Human
Resource (HR)>.............................................................................................................................10

INTRODUCTION
Managing human resource is important for organization and it plays vital role in
organization. Because this function and department is very useful and it helps in recruiting
skilled and efficient people in business unit. It also manages whole organization through make
different type of rule and regulation. HR of organization needs to follow different laws like
discrimination law, minimum wages law for protecting interest of employees that helps in
motivating people and it helps in increasing profit as well. If management of organization is not
operating in proper and systematic way, it creates problem and it put direct impact on all other
function's of organization. “No name” is a aircraft company in Australia that manufactures air
planes (Wright, 2018). Adam O'Meara is the CEO of this aircraft company. It subsidiaries also
available in three countries that China, Singapore and Vietnam. This company provides their
services and sell their aircraft in 50 countries of world so it covers global level market. Some part
of aircraft made by china and designs made by engineers of Singapore.
Through case study of “no name” aircraft that refers, it CEO O'Meara evaluate it
companies so it analyses that risk is increase very aggressively. So it making decision that
increase shareholders investment through provide high return on investment. So for increase
performance and profitability it takes decision for increase dividend on investment. Case study
shows that many types of problem present in this company and management is unable to resolve
that issues properly. Employees and management also work from their own based and no one
follow any type of rules and regulation so it directs effect their profit and it also reduces
profitability in this organization. Labour turnover is also major problem in no name aircraft
because it is cause through not follow rules and laws so employees suffer many kinds of
discriminations and it creates problem in organisation (Guest, 2017).
MAIN BODY
Culture of “no name” aircraft.
Case study of No name aircraft company shows that management condition is very poor
in organization. Employees of firm are not working efficiently and systematically.
Communication gap is major cause of poor management activities as management and
employees cannot closely interact with each other and all have to work from their own bases.
Lack of management if they want to work so they do otherwise they do not work.
Management through HR is very poor so it also creates communication gap between headquarter

and subsidiaries of organization. If it making decision about any changes related to work for
improve employees performance and change work process so employees not accept it decisions.
Because they think that “near enough is good enough so” it means that “no name” has fix target
and if they achieve some percentage of target so its enough according to employees thinking.
Quality is also major problem in “no name” aircraft because company has to analyze
quality of their product before delivery of product and right now this organization does not check
quality of its products. So many types of small and large modification requirement are remaining
that creates quality problem because customers complain about quality of aircraft so it also
impacts on sales and profit of firm. Customer of aircraft like government and non government.
Stakeholder of this organization also affect and create problem. Because quality is very poor of it
product so its stakeholder present all conditions in front of CEO. Through sent letter to CEO they
give warning that for improve and develop their quality of aircraft with in six months otherwise
they hold their payment and some stakeholder warn to company for improve quality and tell that
they hold 100% payment and some tell that 50 % payment.
Team management also a main problem in “no name” aircraft company because
different type of team presents in this organization and three team is very majorly work and
through these teams it manages 50 team. Like first team is work for sub design of aircraft and it
includes 9 people, second team is available for work of make wire harness and it includes 11
peoples and third team do work for fit wire harness and it includes 6 peoples. So all team work
separately in the organization but lack of interaction and integration create many problems.
Because every team has specific area of work and they have not any type of communication. all
employees are working for same objective and they work for achieve one objective so they have
to visit here and there in organization and Employees do complain that they not get proper and
systematic instruction so it creates problem. So managers are responsible for proper flow of
communication that helps in management of team proper.
Diversity management
Diversity management is very important for organization that focus on follow different
types of laws and rules that provide protection to employees from discrimination from age,
gender, race, color, disabilities and religious. Management of “no name” is very poor So in this
aircraft company headquarter management staff misbehave with employees and senior staff also

misbehave with apprentice and junior employees so it creates issue of labor turnover in
organization. Because senior employees not listen anything of juniors and they give order to
work them so it demotivate workers. In this company human resource management discriminate
with candidate during recruitment and it discriminates base on disability. So it does discriminate
with people of organization and also new candidate according to their color, race, religion,
disability, gender. Through this type of discrimination with their employees in aircraft company
create problem with their employees. it subsidiary in China that hire candidates according to
their age, gender, disability etc. it also rejects form of those type of candidate that if they disable.
Critical approaches :- this approach refers that rulers and regulation as well as laws is
systematically follows in organization for provide protection from discrimination. Because this
thing demotivate to employees. This company not follow this approach so it has not skilled and
efficient workers and it creates problem. So this approach is necessary for organization (Laudon
and Laudon, 2016).
International performance management
In “no name” aircraft organization not mange their performance. It does business at
global level so Australia only review their performance and other subsidiaries not manage their
performance. Appraisal is not only conduct in this organization. Performance evaluation is
necessary for this organization because it does business at global level and it has to follow
different rules and policies of different countries that create problem and it impacts performance
of company. Many types of factors present in external; environment that affect to organization
like economy, technological and political factors. So evaluation is necessary for prevent their
effect. Economic factor includes inflation, exchange rates and interest rates that direct affect to
company performance and demand and supply as well. “No name” not analyze this factors so all
these factors affect to their target and performance. It headquarters located in Australia and so
much pressure carry through it like cost pressure and higher expectation because in Australia
product for manufacturing of aircraft is very expensive so it consumes more cost and customer
has also high expectation. So it makes decision for Singapore and other subsidiaries that they
manufacture parts according to quota and it creates conflict.
Performance management is helpful for appraisals and it helps in motivate to employees
but in this company performance management is not operated and employees are not take

interest in work. That it effect on profit and manufacture of part of aircraft and quality issue also
increase through weakness of management in organization.
360 degree approach :- it is process of collect review for employees from available
people their surrounding like senior management, mentor and staff members and then collect all
reviews through management of organization so it helps in evaluate employees performance
(Das and Panda, 2017). In this approach four component includes like self appraisal and in this
appraisal employees evaluate own performance and strength and weakness as well. Second
component is subordinates and through this appraisal it helps in evaluation through judge and
superior and they give decision through employees' performance. This organization not follow
360 degree approach so its performance not manage but it has need of follow this approach that
helps in increase organization performance and also helps in evaluate performance (Trittin and
Schoeneborn, 2017).
Training and development
Training and development is function of human resource management that helps in
increase skills and efficiency of employees increase and it helps in increase productivity, sales
and profitability of organization.
In “no name” aircraft company not provide training to their employees. So it creates
problem and employees suffer while working. It does business at global level and sit send
Illustration 1: 360 degree approach
[Source : 360 Degree Appraisal, 2017]

workforce from one subsidiary to another without training. So employees has to face problem for
set up in new environment so expatriate training is very important for employees. Aircraft
company is very huge so it also has need of different field of workers as well as training also for
perform job properly and systematically. So through it performance it shows that training is a
very big concern and need for “no name” company.
In this company management and workforce plan is not present systematic so it has need
of hire skilled and efficient employees for increase performance for improve and development.
Because in this company risk is also very huge so employees have needs of safety training for
reduce injury from workplace and it also needs of training for use innovation and technology that
use in manufacturing.
Theory of reinforcement :- it suggests that learning on person behavior and it repeats
their behave. So this theory is proposed by Skinner (Gond, and et.al., 2016). It refers that
training and development is important for get outcome and expected result come related to
objectives of organization so “no name” aircraft company also has followed to this theory for get
output. Many types of human resource available in organization and if training provide to them
and give reward, bonus and salary raise so it helps in motivate to employees and gives a hundred
percent return and they also take interest in every training so it helps in increase profit and
productivity.
Recommendation
I recommend to “no name” aircraft company that it should apply different rules and
policies for employees that it helps in produce quality product and it is only can possible through
if it management process improve and employees easily accept changes. It must prevent
discrimination that helps in motivate to people because in organization senior level and
management discriminate with employee so it also creates conflicts and labor turnover. I
recommend that “no name” aircraft has to improve their communication between all members of
organization that helps in prevent conflicts and all employees work with each other and together
so it can easily achieve target. It also should make plan for human resource management that it
focus on skill and efficiency during hire candidates not focus on age, gender, religion. It should
manage performance properly because it performance management is very poor so it must
evaluate time to time performance of all member of organization include all subsidiaries and it
helps in complete target. It also helps in analyze that status of employees in organization and it is

also necessary for appraisal of employees that it helps in promote them and motivate them. “No
name” aircraft not follow this rule so it should follow and improve their work and productivity.
Training is also a important for this organization so I recommend to it that it should provide
training to all their employees because training helps in improve skill and efficiency of
employees. If training provide by this company to employees that helps in increase new ideas
and improve work rather than motivate to employees so it improves and develop performance.
Conclusion
From above study it has been summarized that management is important for organization.
Through management employees manage in well and systematic manner and it also improves
quality of product and performance. Organization also has to improve communication between
all members so it makes well team. Laws is important for every organization that follow for
provide protection to employees and discrimination laws is very important for employees
because it gets protection through discriminate like color, gender, religion etc so it also
motivates to employees for work and performance and it directs impact to profit. It also covered
training and development that helps in increase skills and efficiency of employees and it
develops new ideas in organization related to production that helps in increase sales.

REFERENCES
Books and Journals
Gond, J. P. & et.al., (2016). What do we mean by performativity in organizational and
management theory? The uses and abuses of performativity. International Journal of
Management Reviews. 18(4) 440-463.
Wright, P. (2018). Fundamentals of human resource management. Management. 5. 27.
Guest, D. E. (2017). Human resource management and employee well‐being: Towards a new
analytic framework. Human Resource Management Journal. 27(1). 22-38.
Trittin, H., & Schoeneborn, D. (2017). Diversity as polyphony: Reconceptualizing diversity
management from a communication-centered perspective. Journal of business ethics.
144(2). 305-322.
Das, U. K., & Panda, J. (2017). The Impact of 360 Degree Feedback on Employee Role in
Leadership Development. Asian Journal of Management. 8(4). 962-966.
Shapiro, D. L. & wet.al., (2016). How do leader departures affect subordinates’ organizational
attachment? A 360-degree relational perspective. Academy of Management Review.
41(3). 479-502.
Laudon, K. C., & Laudon, J. P. (2016). Management information system. Pearson Education
India.
Larson, E. W., & Gray, C. F. (2017). Project management: The managerial process. McGraw-
Hill Education.
Pollitt, C., & Bouckaert, G. (2017). Public management reform: A comparative analysis-into the
age of austerity. Oxford University Press.
Clarke, N., & Higgs, M. (2016). How strategic focus relates to the delivery of leadership training
and development. Human Resource Management. 55(4). 541-565.
Alasadi, R., & Al Sabbagh, H. (2015). The role of training in small business
performance. International Journal of Information, Business and Management. 7(1).
293.
Hopkin, P. (2018). Fundamentals of risk management: understanding, evaluating and
implementing effective risk management. Kogan Page Publishers.
Thompson, N. (2017). Promoting equality: Challenging discrimination and oppression.
Macmillan International Higher Education.

Online
360 Degree Appraisal.2017 . [ONLINE] Available through :<https://studiousguy.com › Human
Resource (HR)>