Human Resource Management at Good Luck Aircraft: A Case Study Report

This report provides a comprehensive analysis of the human resource management (HRM) practices at Good Luck Aircraft, an international company facing profitability issues. The report examines critical areas, including diversity management and organizational culture, highlighting issues of discrimination, ineffective communication, and negative work environments across the company's home country (Australia) and its subsidiaries in China, Singapore, and Vietnam. It assesses the effectiveness of international performance management systems, revealing shortcomings in employee appreciation, performance measurement, and alignment between headquarters and subsidiaries. The report also scrutinizes training and development practices, identifying deficiencies in employee training, feedback mechanisms, and management development programs. The report concludes with recommendations, emphasizing the implementation of a robust diversity policy, improved communication, and comprehensive training programs to address the identified HRM challenges and enhance overall organizational performance. The report is based on a case study of the company and includes an analysis of relevant academic literature.

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

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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

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results can be seen in subsidiaries with no measuring approach. This case, also shows that there
is no clear policy related to performance management. Even HR department is aware of that they
are in need of immediate change so that they can improve their performance but still
management of this organization is showing no interest (Deligianni et al., 2016). Due to lack of
measuring system management is not able to identify the gap in the performance of the
organization which has finally resulted in poor performance of the organization. Management
has completely failed in connecting headquarter with its subsidiaries in terms of performance as
well as procedure implementation.
Training and Development
Employees are considered as one of the biggest assets and in order to attain growth,
organizations usually invest in their employees. Every organization is having a lengthy
recruitment process in order to have highly skilled employees (Seidle, Fernandez and Perry,
2016). According to researches, organization which invests more on their employee development
is surely going to progress in this competitive world. Training and development are considered
as a key function of every organization with respect to human resource department. Training is
always linked with step-wise instruction for employees in order to teach them all technical
aspects which are important from jobs point of view (Torraco, 2016). It helps employees to gain
various skills that are beyond importance of knowledge which are environment adaptation,
behaviour, culture understands and so on. Training is important for enhancing performance of
the employees. But in this case, it has been found that an organization is not paying any attention
to training and development of the employees. One such incident is also described in which one
employee send on an international project without offering any kind of training in the
organization. It cost around six months for that employee to adjust in the foreign environment.
Employee was not offered any kind of training before working on this international project and
outcome was employees faced lot of issues while adjusting on foreign land such as extreme
pressure, efforts, time and money. Usually, training program is of two types, one is on the job
training and other is off job training (Detsimas et al., 2016). But in this particular case, employee
was not trained in both of these aspects. In this case, HR department has perceived that every
employee has a common need and therefore there is no need to provide training on an individual
base. In addition to this, organization has not formed any kind of policy related to feedback and
comments which is essential in order to understand requirement of employees. It actually offers a
voice to employees related to their needs. Feedback is considered as two-way communication
mode between employees and employers which helps them to resolve issues (Jong, 2016).
Organization is not having facility of management development program for managers and
therefore mangers of this organization are actually struggling in every managerial aspect.
Therefore managers are not able to develop a clear path for their employees in order to connect
them with career growth (Rowland, Hall and Altarawneh, 2017). Many senior managers
intentionally do not develop any training program because they are afraid that their junior can
become capable of overtaking their position in the organization. Employees believe that they

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must not take training because it may be associated with some kind of new change that can
impact their daily routine. Employees are continuously struggling with their career growth and
therefore they are not motivated enough to carry of high-quality jobs. In fact, it seems that
employees working in China are not at all interested in putting their hard efforts just to meet
because they are not able to see a clear direction towards their personal growth. Even if training
is offered to an employee who is leaving Australia to other location are offered only half-day
training section which is not enough for employee adjustment (Messina et al., 2018). It is not
possible to learn all important aspects related to work on an international level in just half day
training because it consists of various key factors like culture difference, values, climate,
language and way of living.
Recommendation
In this situation, one of the best options for this organization is to implement a diversity policy in
all its subsidiaries as per the land of law. In this, policy, management will mainly focus on
developing a diverse team in which people from all religion, background, culture work together.
In addition to this, employee must be introduced with each other in order to understand strength
and weakness of each other (Mun and Brinton, 2015). Organization must make senior employees
understand their experience is valuable to most of junior and will benefit for growth and
development of the organization. In addition, this policy must strictly adopt rules that it is
important to offer job to disable people because they are also part of our community.
Management of the organization must understand that these people have a limited scope of
earning. In this situation, if these people are deprived of their employment right they do not have
any other income source. In addition, it is also against the law which ensures that person must
not be discriminated on the base of their disability. Organization must develop a team which will
focus on disable candidates and ensure that they are not being discriminated on the base of their
physical appearance.
Organization is truly in need of improving their culture by introducing a new approach by which
they can offer a positive and safe work environment for employee. In addition, management
must allow employee to put their issue in front of management so that manager can understand
their struggle journey. Management must offer support environment to employees but
encouraging them to take initiatives for decision making (Wressell, Rasmussen and Driscoll,
2018). This will make employees feel that they are part of this family and are valuable to this
organization. Management must introduce program which will focus on activities that can
motivate employees for their task and will believe that organization goals are more important
than a person goal.
Organization must introduce performance management system which will ensure performance of
employee on a regular base. Every subsidiary must have its own performance management so

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that they can understand gap between current and previous performance of employee in order to
improve. These performance management programs must be interlinked so that performance can
be measured for both teams as well as individuals (Gerrish, 2016). It will offer management to
prepare an action plan related to gap which has been identified in the performance management
system. Promotion and application and other benefits must be based on performance measures in
order to ensure that other members also get motivated. This will generate a positive attitude in
employees related to their work and it will automatically increase their efficiency. Having
performance management system will remove some of pressure on managers related to the
promotion of an employee. In addition, it will act as a fair platform on which every employee
will get chance to show their capability.
Another best option for this organization is to introduce a training and development program in
which identified gap in current and previous performance of employee will be fulfilled as per
need. Every employee will be analyzed on the base of their skills and ability and will be offered
training accordingly. In addition, managers will be offer training on managerial development in
order to increase their managerial skills so that they can develop a direction of goal for every
employee in the organization (Abadijoo, Moghadam and Beheshtifar, 2015). Management must
ensure that it is important to provide training to those employees who are being transferred to
other countries. This training program will include activities like language and behaviour
learning, climate adjustment and lifestyle adaptation. This training must be at least carried for
almost 15 days in order to make person comfortable for their new work environment. This
training will include both practical as well as theoretical knowledge in order to build a strong
foundation for employees going for international projects. Training and development programs
will include dividing long term goal into short-term goals so that employees can enjoy every
successful that will increase their confidence level. Management is truly in need of investing in
training and development programs in order to achieve growth in this business market.
Conclusion
Diversity and culture form the backbone of every organization. In fact, it represents the
organization in the business market and ensures its success. Every person is having same right
from their childhood and therefore it is not advisable for any organization to discriminate against
them on the basis of race, believe, gender and so on. It is also important to provide equal
opportunity to disable people for employee in order to make society better. Performance
management system ensures that employees must get what they are working for and best way is
to measure their performance. This will help in developing training program which will support
to enhance employees performance. Every country has different culture, environment, work style
and it becomes very difficult for a person living in Australia to move to country like China.

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