HRM Report: Strategic HRM Analysis of No Name Aircraft

This report provides a comprehensive analysis of the human resource management (HRM) issues faced by "No Name" aircraft, an Australian-based company with global subsidiaries. The report examines critical aspects of HRM, including organizational culture, diversity management, training and development programs, and international performance management. The analysis identifies key challenges such as communication gaps, change resistance, lack of diversity in recruitment, inadequate training, and inconsistent performance appraisal processes. The report then offers specific recommendations and solutions to address these issues, including implementing diversity management policies, utilizing change management models, revising recruitment practices, providing cultural training for expatriates, developing management programs, adopting 360-degree performance appraisals, and establishing performance measures for subsidiaries. The report concludes that addressing these HRM challenges is crucial for improving the company's profitability and overall success.

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4/7/2019

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Contents
Introduction......................................................................................................................................2
Culture and Diversity management.................................................................................................3
Training and development...............................................................................................................4
International Performance Management..........................................................................................5
Recommendations / Solutions.........................................................................................................6
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

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Introduction
Human resource management includes various aspects to be considered in an
organization. For instance, the culture of an organization is responsible for organizational
behavior, and work environment. Moreover, HR manger of a company is also responsible for
various other activities in an organization, which will be included in the report further like
change management, diversity management, providing training to the employees and
international performance management (Akkermans, Brebbibkmeijer, & Blonk, 2015). For
critical evaluation of these human resource aspects, a case would be considered in the report.
“No Name” aircraft is an Australian based company that is conducting business overseas
as well and has recently been concerned about the decreasing profits of the company. It has been
identified that the company takeover is imminent. CEO of the company, “Adam O’Meara” is
aiming to enhance shareholder ROI and increase the share price of the company. “No Name”
aircraft has subsidiaries in Singapore, Vietnam, and China. However, the company is developing
and selling the aircraft in 50 nations across the globe (Asfaw, Argaw, & Bayissa, 2015).

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Culture and Diversity management
The first aspect that could be responsible for the success or decrease in profits of “No
Name” craft is the culture of the organization. It has been observed that there are various issues
when organizational culture is considered. For instance, the communication gap is one of the
major causes of non-coordination among the teams and across the team. Another issue is the
change resistance in the culture of “No Name.” People seem to resist change in the organization,
which the company must work for in order to improve organizational work and behavior.
Moreover, in the parts of Vietnam and China the quality issue has also been identified. These are
some of the major issues, which must be looked into by senior executives, and the HR manager
of no-name craft. The team has been distributed according to the area of expertise or department
and each team has more than eight or nine members, this could be another problem that has led
to integration issues among the teams and managing issues as well (Bailey, 2018).
The organizational culture of “No Name” can be analyzed through types of
organizational culture. There are four major types of culture like market culture, hierarchy
culture, adhocracy culture, clan culture. “No Name” aircraft do not have defined Organizational
cultural types. However, it seems to have a hierarchy culture, which is not management and
organized as it is required (Fang & Gerhart, 2014).
Diversity management includes having employees from various backgrounds to promote
higher inclusion of employees into an organization’s structure. Diversity could be from different
regions of the world, this is helpful to have better decision making and having different
viewpoints for a problem solution. Considering diversity management at “No Name” aircraft, the

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positive aspect would be equality in the organization related to age, race, gender, physical
abilities, and religious beliefs (Ford, 2017).
There were some negative aspects also identified as if people with the problem of
disabilities were not recruited in China. This has led to recruitment discrimination as the HR
manager ignored such applicants. Moreover, it was observed that there was a lack of clear
practices set for making employees understand one another. People were working with each
other on the basis of their perception and the value to diversity was neglected. It can be said that
in an organization, it is important to have a set of competencies from various culture and diverse
team members are needed, which seems to be a major problem with “No Name” aircraft
(Gibson, 2016).
Training and development
Training and development is the most crucial aspect in an organization to enhance the
productivity of an employee and have optimum use of employees of the company. This is also to
motivate the employees in an organization and make them believe that they are also growing and
developing in an organization. Considering training and development activities in “No Name”
aircraft the positive aspect related to the training program is that the company provide expatriate
training to the employees going China, which seems to be helpful as Australian and chain’s
culture, is completely different and makes the requirement of training more crucial (Kesen &
Kaya, 2014).
The organization is having some major issues concerning training and development, the
company is unable to provide adequate training to the employees. The major impact of this
problem on the company was time consumption for the employees to learn new aspects in the

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work profile. This could also reduce the productivity of the organization as a whole. The
company provided expatriate training but not for all, the company has an incidence of not
providing expatriate training to an employee transferring Singapore. Another issue or negative
aspect observed at “No Name” was that the company is unable to provide systematic
management development programs and workforce planning. The company needs to understand
the relevance of employees to develop and have career development plan so that the company
could also have an appropriate succession plan for key management roles in the organization
(Asfaw, Argaw, & Bayissa, 2015).
International Performance Management
Performance has to be managed in an organization and needs to be enhancing in various
ways and motivate employees to increases the performance. The only positive aspect at “No
Name” aircraft that can be identified as the performance review were conducted by HR manager
in Australia and the expectation from the employees are very high so that they can perform more
than their limit to perform in the organization (Sohal, 2008).
The negative aspects identified from this are there was no formal performance appraisal
process for expatriates. The employees leaving the home country and working for the company
in another nation need to have an appraisal and company must know the various problems that
the expatriate is facing in the host nation. Another negative aspect regarding the company’s
approach to performance management is the ad hoc approach and the company did not consider
the economic factors that have affected the business targets. The higher expectation from the
employees and high pressure over the employees has affected negatively. It was found that there
were no performance reviews taken at “No Name” aircraft’s subsidiaries. This could have

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affected the organizational performance to a greater extent. The financial motivation is the best
way to get the best performance out of employees in an organization, and the employees were
not motivated to perform or they would not have tried to improve their performance due to this
reason. Lack of performance policy has led the organization to no clear measures, which makes
managing performance and employees more challenging (Williamson, 2016).
Recommendations / Solutions
 Diversity management policy – In order to look over the issue of non-availability of
diverse employees, the company could have created a diverse management policy, which
would include recruiting of people from a diverse range of culture and region. This would
lead to building upon cross-cultural teams. This will be helpful for the company in
getting onto better ideas and get different ideas from a different viewpoint. Moreover, it
would be necessary to have local employees in the subsidiaries, this is to serve to the host
country customers better while understanding their culture closely (Brfidgman & Brown,
2016).
 Change management – one of the issues identified was the resistance to change among
the employees. The reason could be that the organization directly implement and applied
the change onto the employees. The company could have used the change management
models to implement any change. For example, the company could have used the Lewin
change model (Brown & Cummings, 2016).
As per this model, there are three stages to change that are unfreezing, change, and
freeze. This means that the company must communicate to the employees well before the
change occurs to make them get mentally prepare for change and make them understand

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the need for change. Then the actual change must be implemented while helping
employees to get used to the change and adjust in a new environment. Then the last stage
is freeze that is getting used to the new environment and process.
 Recruitment policies – another issue was the inequality found towards the disabled
people. The change in recruitment policy was the way out for this issue. This could
include the fair policy in the recruitment process by the HR. the selection criteria must
not be the physical appearance of an individual but should be the capability of
individuals. Avoiding disables persons for the applicant could lead “No Name” aircraft to
loose an opportunity to have a competent employee. This is important for “No Name”
aircraft to have better recruitment polity to ensure that the company has ethical practices
towards the stakeholders of the company and towards the society (Herd, Cumberland,
Herd, Alagaraja, & Kerr, 2016). This will act as guidance for the hiring manager, and
make the procedure more structured and reduce the chances of biases in the process. The
recruitment process could be as follows:

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Figure 1:(Source: (Bailey, 2018)
 Cultural training – the expatriates moving towards a new nation to work for the company,
kept the responsibility to train the employees in hands of the company. Culture plays a
vital role while working in a completely new environment. The expatriate needs to get
the training regarding the new culture it will be working. This could be initiated well
before the expatriate to move to a new place. This may include language learning,
understanding the values, belief and the managerial culture of the host nation say China
or Singapore in case of “No Name” aircraft. This will also help to diminish the
communication gap between the manager and the local employees in the host nation
(Loewenberger, 2016).
 Management development programs – there is a need for the company to develop its
employees. For this, ““No Name”” aircraft can have a set of action taken for developing

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their employees. This may include employees career development, job rotation,
mentoring, promotions and transfers, succession planning. The employee must have the
opportunity to grow within the organization and increase their set of skill. For instance,
job rotation will keep an employee learning various activities in an organization. This
would also be helpful for the company to understand the right person for the right job.
 360-degree performance appraisal - the performance appraisal need has been identified
for “No Name” aircraft in the previous section. The company to appraise and analyze the
personnel at the subsidiaries as well can use a 360-degree method. This method includes
getting an appraisal from their subordinates, co-workers, superiors, and self-appraisal or
various criteria to understand what are the positive and the negative aspect of the
employee and how he or she can be rewarded or improve the performance in the
organization (Shek, 2016).
 Performance measures for subsidiaries – the performance indicator is the must for “No
Name” aircraft. This will help the organization to measure the performance of their
employees in the home and subsidiaries countries. The key performance indicators for the
employees could be the productivity level, the timing the employees are providing to the
company. The KPI for the HR manager to understand the internal position of the
company would be employee turnover rate, absenteeism, the average time for
recruitment, number of accidents at the workplace, and average time to achieve the
objectives in the organization (Recker, 2013).

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Conclusion
From the report, it can be concluded that “No Name” aircraft is one of the companies,
which has been facing various human resource management’s related issue, which has led to
decrease in profitability for the firm. Considering four major aspects, that is the culture, diversity
management, training and management, and international performance management, a major
issue identified was the communication gap. This is one of the major causes for non-coordination
among the teams and across the teams. Another issue is the change resistance in the culture of
the organization. Recruitment discrimination as the HR manager ignored such applicants, the
company is unable to provide adequate training to the employees, and the company was unable
to provide systematic management development programs and workforce planning. The major
solutions to the problem for the “No Name” aircraft would be 360-degree performance appraisal,
performance measures for subsidiaries, management development programs, cultural training,
recruitment policies, change management, and diversity management policy.

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References
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employee performance and effectiveness: A case study of District Five Administration
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the role of sorting effects. Human Resource Management Review, 41.
Ford, J. (2017). Employee perceptions regarding an organizational change initiative in a state
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Gibson, L. (2016). Personality traits and career satisfaction in training and development
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Human Resource Management,, 52(6), 899-921.

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Shek, D. (2016). Resilience as a focus of a subject on leadership and intrapersonal development.
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