International Human Resource Management Report: No Name Aircraft

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This report examines the international human resource management (IHRM) challenges faced by 'No Name' Aircraft, a company with headquarters in Australia and subsidiaries in Vietnam, China, and Singapore. The report identifies issues related to culture, diversity management, international performance management, and training and development. Key problems include resistance to change, communication gaps, quality control issues, intolerance of diversity, inadequate performance appraisal systems, and insufficient training for expatriates. The report proposes solutions such as implementing an effective performance management system, fostering collaboration between headquarters and subsidiaries, providing comprehensive training for expatriates, and establishing a robust career management system. Recommendations include clear communication, 360-degree feedback, centralized supply chain management, and cultural training for expatriates. The report emphasizes the need for 'No Name' Aircraft to address these issues to improve profitability, manage a diverse workforce, and achieve its international business objectives. The report also provides an implementation plan with actionable steps to address the IHRM challenges.
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Running head: INTERNATIONAL HUMAN RESOUCE MANAGEMNET
International Human Resource Plan-‘No Name’ Aircraft
Name of the Student:
Name of the University:
Author’s Note:
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1INTERNATIONAL HUMAN RESOUCE MANAGEMNET
Executive Summary
This report introduces the case of ‘No Name’ aircraft which faces issues related to culture,
diversity management, training and development and international performance management.
The procedures which will ensure issues related to performance management and training and
development at ‘No Name’ Aircraft are not repeated are discussed. Also recommendation and
implementation plan is provided at the conclusion section.
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2INTERNATIONAL HUMAN RESOUCE MANAGEMNET
Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................4
Issues at ‘No Name’ Aircraft...........................................................................................................4
Problems with culture of the organization...................................................................................4
Problems with Diversity Management.........................................................................................5
International Performance Management......................................................................................5
Training and Development...........................................................................................................5
How HRM should ensure the issues with performance management and training and
development are not repeated taking into consideration the international environment.................6
Effective Performance Management System...............................................................................6
Collaboration in between headquarters and subsidiaries.............................................................7
Training and development...........................................................................................................8
Career Management.....................................................................................................................9
Coaching and mentorship by senior employees.........................................................................10
Recommendation and Implementation Plan..................................................................................11
Implementation Plan..................................................................................................................11
Reference Lists..............................................................................................................................13
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3INTERNATIONAL HUMAN RESOUCE MANAGEMNET
Introduction
In this case, of ‘No Name’ Aircraft there are number of problems that can be identified
like problems with culture, problems with diversity management and problems with international
performance management and problem with training and development.CEO of O’Mera is
worried that the organization might undergo a takeover and the profitability as well as the return
of the share on investment of the shareholders needs to increase. No Name aircraft has
headquarters in Australia and has subsidiaries in Vietnam, China and Singapore. Aircrafts are
built by the organization and sold to 50 countries across the globe. The design engineers of the
Company are based in Singapore and aircrafts are produced in China and Singapore and
assembled in Singapore and Australia (Anderson, 2013).
International Human Resource Management of ‘No Name ‘Aircraft should strive to
manage human resources of an organization at an international level. The strategies adopted by
international human resource management team of an organization enable an organization to
achieve competitive advantage at national and international level. In this era of globalization,
organizations expand globally and enter the foreign market for multiple reasons. Some of these
reasons are to gain global customer base, to increase profitability and to achieve cost advantage
by outsourcing some business function to countries where labor is available at cheaper rate. Thus
business organizations like ‘No Name’ aircraft has to manage subsidiaries and operational units
in foreign countries which would require managing a diverse workforce. While managing a
diverse workforce, it should be ensured that cultural tolerance is practices and there is no cultural
bias or discrimination towards race, gender and language. Stereotypes should be avoided and
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international human resource management team should focus on cultural inclusion, training
expatriates to adapt to the culture of foreign countries, employing high-skilled employees
irrespective of physical shortcomings like disabilities. International Human Resource
management should focus on global skills management and recruitment, selection, training and
development, performance appraisal and other human resource functions at an international level
(Armstrong & Taylor, 2014).
Discussion
Issues at ‘No Name’ Aircraft
Problems with culture of the organization
The staffs of the organization demonstrate resistance to change, there is no proper flow
of communication between the teams of the organization and the management and
communication gap is also visible in between integrated teams. The work culture is very
negative in subsidiaries and headquarters of ‘No Name’ Aircraft.
The aircrafts of ‘No Name’ Aircraft require modifications even after delivery to
customers, quality has been a major problem and the parts from China and Vietnam do not have
good quality. The government and non-government customers of the organizations are not
satisfied with the quality of the products delivered by the organization. The CEO of the
organization, O’Meara has received letters from various stakeholders that if quality is not
improved within an interval of six months, partial payment as well as complete payment will be
withheld. Silo effect is demonstrated among teams. . Silo effect should be reduced among
various departments of an organization and there should be proper flow of communication across
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various strategic business units (SBU) of an organization. The international human resource
management team should ensure that all the business units collaborate with each other and the
strategies developed internationally are in alignment with the long term vision and culture of the
organization (Shaw, Park & Kim, 2013).
Problems with Diversity Management
The headquarters of ‘No Name’ aircraft has demonstrated issues like intolerance of
working with people of different generations. There is strain in working relationship among co-
workers and senior staffs are reluctant of working with apprentices. People with disabilities are
not recruited in China even though they have skills, and this might initiate legal actions from the
rejected candidates with disabilities. The Human Resource policies of the organization are not
effective in managing a diverse workforce and cultural tolerance is not demonstrated (Sparrow,
Brewster & Chung, 2016).
International Performance Management
There are numerous performance management issues across ‘No Name.’ International
performance appraisals systems are not adequate in ‘No Name.’ Reviews of performance are
conducted by the human resource team in Australia but the subsidiaries in Australia lack
performance review. Appraisal of performance management system is not well conducted for
expatriates (Aswathappa, 2013).
The subsidiaries are affected by the ad-hoc decision making system of the headquarters
and performance outcomes are conflicting. The policies regarding the performance management
are not well-established and the supply management process across the headquarters and the
subsidiaries are not properly tracked and centralized (Marler & Fisher, 2013).
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Training and Development
Training and development is not adequate for expatriates who leave Australia to work in
China, Singapore and Vietnam. Feedback is not obtained from employees regarding the
effectiveness of the training of the expatriates. The expatriates are not introduced to the culture,
surrounding, history and language of the foreign countries where they are transferred for work
assignment (Jiang et al., 2012).
Also, at ‘No Name’ aircraft the employees are clueless about the prospects of their career.
Effective utilization of career development plans are not made and the senior managers do not
provide enough mentoring and training to the junior employees because they fear that their
position will be at stake. The consequence is hiring of eligible employees for promotion by rival
companies and workforce planning and management development programs of ‘No Name’ are
not adequately designed (Harzing & Pinnington, 2010).
How HRM should ensure the issues with performance management and training and
development are not repeated taking into consideration the international environment.
Effective Performance Management System
‘No Name’ Aircraft must ensure that there is effective Performance Management System
which aligns the long term vision and objectives of the organization with the goals, expected
performance and objectives of teams and individual employees. The organizational as well as
individual objectives should be specific, measurable, actionable, and realistic and time bound.
The performance management process can be administered quarterly instead of annually. The
acceptable level of job performance and individual and team goals to meet the overall
organizational objectives should be clearly communicated to the employees. Clear
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communication, self-assessment and constrictive feedback will reduce biases and will ensure a
fair performance management process (Alfes et al., 2013).
An international Performance Appraisal system should be designed effectively in the
subsidiaries and performance review of expatriates will ensure that the stay with the organization
for longer time after returning to the home country on completion of the foreign assignment. In
the performance Appraisal process, modern methods like 360 degree appraisal system should be
used where feedback should be taken from self, managers and peers.The modern use of
technology and software should be used to track the performance of employees. An effective
reward system should be designed which will be both tangible or financial rewards like bonuses,
incentives and pay hike as well as non-tangible reward system can be very effective, for instance,
senior employees and managers of ‘No Name’ aircraft can recognize junior employees by words
of praise on accomplishment of desired performance.
Collaboration in between headquarters and subsidiaries
There should be proper collaboration in between headquarters in Australia and
subsidiaries of ‘No Name’ Aircraft while making decisions. Ad hoc approaches should not be
adopted by headquarters and economic factors of countries should be considered. Modern
software should be used to integrate and centralize the Inventory Management System.
Conflicting performance outcomes can be avoided by this. In the case it was found out that an
order to produce certain quota of parts was issued by headquarters to subsidiary in Singapore and
then it was found out that there was surplus of the same parts in Australia. Centralizing the
Supply Chain Management and Inventory Management between headquarters and subsidiaries
will resolve this issue. The performance management system should also consider the culture of
Vietnam, China and Singapore. The international performance measures should be clear and
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policies for performance management should consider the local customs of these countries and
someone from International Human Resource Management Team should travel to these countries
to study local customs.
Training and development
Expatriates of ‘No Name’ Aircraft should be trained. The culture of Australia where the
organization has headquarters is very different from culture of Singapore, Vietnam and China.
The training of the expatriates should have the following steps
1) Pre-Program Assessment and Exploration- An assessment of the prior international
experience, interest levels and background of the family members of the expatriates should be
conducted. A family training session should be conducted and a tailor-made session for
expatriates should be conducted to make them familiar with the culture of the host country which
will be very different from that of the home country. There are tools like Culture Wise which are
cultural intelligence tools and these tools should be used in training of the expatriates.
Cultural training of the expatriates and family members should be conducted to make the
expatriates aware of the values, business culture, day-to-day living and society of the host
country so that cross-cultural experience is enhanced and the risk of misunderstandings regarding
culture is reduced when expatriates work in the host country.
Brief about the host manager and team in host country should be provided. The
difference in management style, business culture and communication style of the host manager
and the team abroad should be well introduced to the expatriates. Meetings via
videoconferencing or telephone should be conducted by the manager of the host country as soon
as the employee is assigned a project in the host country. The manager should introduce the
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assignee about the business processes like how milestones and goals are set, reporting strategies,
and cultural values of the team of the host country. This will enable the expatriates to be well
prepared to adjust to the team in host country (Vaiman, Scullion & Collings, 2012).
Coaching should be provided to the expatriates as soon as they reach the host country.
During the project duration, a coach should be allotted to the expatriates to monitor the hurdles
faced by the expatriates; these hurdles will include personal hurdles as well as hurdles of the
project assigned.
Case studies should be developed regarding the experience of the expatriates in the host
country. The hurdles faced by the expatriates should be noted and analyzed for developing
effective solution for future and to ensure that similar problematic cases do not occur in future.
There should be a proper knowledge management system to implement this in the organization.
Career Management
The ‘No Name’ Aircraft should adopt effective career management system. Career
development of managers and employees should be conducted to develop the knowledge and
skills of these managers. Strategies for succession planning should be developed, employees of
‘No Name’ Aircraft should not be confused about their career path in the organization and career
planning should be conducted for employees including expatriates (Cavusgil et al., 2014)
The process of career planning should adopt the following steps
1) Skills, aptitude, knowledge and abilities of individuals should be assessed
2) Career opportunities within and outside the organization should be analyzed
3) Specific jobs should be linked with career opportunities
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4) Realistic goals should be set which will be both short and long term.
5) Career strategies should be developed and action plan to achieve career goals should be
developed and implemented (Bratton & Gold, 2012).
Coaching and mentorship by senior employees
There should not be any rivalry between the senior employees and apprentices. A plan for
effective coaching and mentoring should be adopted by the organizations. Apprentices and junior
employees have academic knowledge but lack the skills required to successfully accomplish
business goals. The old employees of the organization should not perceive young employees as a
threat to their position and young employees should also respect and work in harmony with
senior employees in the same project. The mentoring and coaching activities effectively designed
by the Human Resource management team will transfer knowledge and skills from senior to
junior members , promote healthy work relationships among them, increase job satisfaction and
will increase retention rates of the young employees thus reducing turnover and overall
organizational productivity(Ariss, Cascio & Paauwe,2014).
There should be a planning meeting between the mentor and the mentee and the issues in
the work process as well as personal issues and training needs should be identified at this stage,
aims and objectives of the mentoring session should be clarified well during the exploration
stage and an agenda for the mentoring session should be developed (Storey, 2014).
The next stage will be to identify the strengths and weakness of the mentee, to analyze
the developmental needs, to establish priorities, give information and advice to the mentee. At
this stage the senior employees should coach the junior employees and constructive feedback
should be given to them (Brewster et al., 2016).
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The coaching provided by senior employees to the junior employees will address specific
and immediate goals related to work and mentorship will aim to provide a long term relationship
in between junior and senior employees (Stahl, Björkman & Morris, 2012).
The coaching and mentoring process will enable ‘No Name’ Aircraft to keep the
employees of the organization focused, build high performance teams and create a culture that
will foster productivity and also conflict in between the senior and juniors could be effectively
dealt with by the coaching and mentoring process (Buller & McEvoy, 2012).
Recommendation and Implementation Plan
Apart from the training and development and international performance Management ‘No
Name’ Aircraft also faces issues regarding the culture and diversity management. The evidence
of ‘silo effect’ can be reduced when clear communication policies are adopted in between team
members, across departments, subsidiaries and headquarters of ‘No Name’ Aircraft.
Implementation Plan
The culture of co-operation can be implemented when strategies and policies formulated
are in alignment with the core values of the organization. The employees of the organization
should be reminded about the core values and culture of ‘No Name’ Aircraft in meetings and
conferences conducted by human resource management team. Employees could be reminded of
organizational culture through story-telling and a suggestion box or software tools should be
given to employees where they can give feedback or present new ideas and suggestion about
organizational culture.
There is lack of quality and aircrafts delivered to customers require modification. Quality
can be improved when there is smooth flow of information between headquarters and
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