Report: Human Resource Management in Global Economy, IBU5HRM

This report, prepared for an International Human Resource Management (HRM) consultancy, examines the organizational culture and HRM practices of an Australian aircraft manufacturer with subsidiaries in China, Vietnam, and Singapore. The report identifies key issues such as declining organizational culture, lack of quality in products, ineffective teamwork, inefficient management of diversity, and poor decision-making processes. It analyzes the impact of these issues on the company's performance and provides recommendations for improvement, including implementing reward systems, addressing employee resistance to change, improving communication, fostering diversity, and creating effective performance measurement plans. The report also provides an overview of how the HRM team can deal with the issues in the international environment. Finally, the report outlines a plan for presenting these findings and recommendations to the organization, aiming to enhance its global competitiveness and financial stability.

Running head: HUMAN RESOURCE MANAGEMENT IN GLOBAL ECONOMY
Human Resource Management in Global Economy
Name of the Student
Name of the University
Author Note

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Introduction:
The importance of human resource management in the modern business world is
observed to be pretty high. Considering the significant impact of the competition over the
business organizations, the urgency amongst the senior management of the organizations in
incorporating the scientific management inside the organizations is pretty visible. With a
precise focus on the dynamics of the modern business market, it is pretty evident that the
established organizations are facing the heat of the competition from the part of the new
entries of the market (Fu et al., 2015). The aviation industry is observed to be one of the most
populated sector in terms of the organizations operating in the industry and that is seen to be
crucial in increasing the intensity of the competition. Considering the global aviation
industry, it is pretty evident that the industry has experienced the entry of the considerable
number of new organizations and that is seen to increase the pressure of competition on the
established business organizations (Schneider, Spieth & Clauss, 2013). Under such a
situation, the main focus of the established business organizations is seen to be the effective
management of their business operations. The senior management of the organizations that
are operating for a more extended period of time in the aviation industry is seen to put a
strong emphasis on the consumption of the lowest possible resources for the achievement of
the more substantial profit (Sutherland & Wordley, 2017). However, the achievement of such
success becomes possible only when the employees of the organizations are motivated and in
order to make sure that the employees are motivated for the accomplishment of the desired
success, it is essential for the managers of the organizations to establish an efficient
organizational culture inside the organizations.
The paper is focused on the elaboration of the organizational culture of one of the
significant aircraft manufacturer of Australia named as No Name. The paper provides an
important analysis of the organizational culture that the company has with the subsidiaries

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and identifies the issues that are seen to affect the business operations of the mentioned
company. With a precise focus on the findings, the paper provides an important analysis of
the scope that the human resource management team of the mentioned organization has, in
providing effective solutions of the issues considering the international business environment.
Apart from that, the paper provides a crucial set of recommendations that has the potential to
improve the condition of the organization and place them perfectly for the achievement of the
desired success.
Issues:
With a precise focus on the business operations of the mentioned company, it is pretty
evident that the organization is suffering from the impact of the declining organizational
culture. As mentioned earlier, the effect of the efficient organizational culture is pretty
significant for the organizations in improving their business however, the organization is seen
to have an inappropriate organizational culture and that is pretty evident with the concern of
the CEO of the organization regarding the company's takeover. The company is facing the
need for increasing the return on the investment for the shareholders of the organization along
with the necessity of increasing the share prices of the company. The company has primarily
three subsidiaries in three different countries which are China, Vietnam and Singapore. The
manufacturing of the parts of the aircraft are conducted in China and Vietnam and the process
of assembling the parts of the aircraft is carried out in Singapore and Australia. The company
has the expertise of selling the aircrafts to 50 different countries across the globe. However,
the culture of the company, specifically the culture between the headquarter and the
subsidiaries was observed to be the main concern for the senior management of the
organizations.

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The employees of the mentioned organization were observed to be complacent even
before the achievement of the success which was a significant cause of vulnerability that was
associated with the organization. The self-satisfaction from the part of the employees before
the achievement of the desired success is observed to be one of the main reason of the decline
of the overall performances of the organization (Shan, Zhao & Hua, 2013). Apart from this,
the employees of the mentioned organization were seen to have an attempt of resisting every
change inside the organization and the absence of the much-required flexibility amongst the
employees of the organization were seen to pose considerable amount of challenge for the
senior management of the organizations in incorporating new measures for the improvement
of the performances of the company. Apart from that, one of the main issues with the aircrafts
of the mentioned organization was observed to be the lack of quality. Majority of the
customers of the organization that includes several governments and non-governmental
organizations have directly reported their grievances regarding the lack of quality in the
products of the organization. Majority of them even communicated the threat of withholding
the partial payments and some of them even informed the percentage of the payment that they
will withhold.
Hence the concern of the customers regarding the quality of the products is pretty
visible for the organization. With a precise focus on the increasing number of aircrafts of the
company that require the small to significant modifications, it is understandable that the
absence of quality in the products of the company has the potential to sideline the company in
the intense competition of the market (McEwan et al., 2017). Hence the threat that the
company faces with the lack of quality in their products has the potential to affect the
financial stability of the company as the lack of quality will affect the company in their
generation of profit in a negative manner.

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The declining organizational culture of the organization and the lack of coordination
amongst the members of the company were seen to be pretty evident with the comments of
Ben Brown where Ben claimed that the other teams of the organization make the job difficult
for their employees and along with that, Ben's feedback regarding the actions of other teams
affecting the smooth operations of their team is crucial in stating the gap in communication
amongst the teams of the company. Hence the collective teamwork of the organization is
significantly affected inside the organization which not only affects the overall performances
of the company in terms of the quality but also affects the profit of the organization (Salih &
Doll, 2013). With a precise focus on the excellent reputation that the company was able to
achieve, the inappropriate technique of the business operations of the teams was seen to be
main factor, reducing the effectiveness and quality of the business activities of the mentioned
company. Hence, the ineffective team performances inside the organization has the potential
of providing considerable amount of detrimental impact on the reputation of the mentioned
company.
The senior management of the mentioned organization was observed to be notably
inefficient in managing the diversity inside the organization and that was one of the prime
reason of the declining team performances inside the organization. Inside the headquarter of
the organization in Australia, the senior employees of the organization were observed to have
tremendous amount of apathy in working with the junior employees of the organization and
that was significant in stating the strained working relationships inside the organization.
Other than this the senior management of the organization were observed to be concerned
regarding the recruitment of people with disabilities in the Chinese workforce. The managers
of the Chinese workforce were observed to ignore the job applications of the candidates with
disabilities in the Chinese region and the most surprising fact was that the skills and the
competency level of those employees with disabilities were more in comparison to the

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existing employees. However, through rejecting those candidates, the managers of the
Chinese workforce was observed to discriminate the employees and that placed the
organization in a position where the local government has the possibility of forcing the
organization towards facing the legal actions for rejecting the candidates with disabilities
(Shahzadi et al., 2014). The spread of the news of discrimination had the potential of
affecting the reputation of the company in a negative manner. The human resource
management of the mentioned organization was observed to be incapable in formulating any
sort of activities that have the potential of provide the much required scope to the employees
of the organization in understanding each other. The bond between the employees of the
teams was observed to be poor and that reflected from the lack of effectiveness on the
business operations of the mentioned organization.
The decision making inside organization were observed to be one of the major
concern for the management of the mentioned organization. The decisions regarding the
business activities of the mentioned organization were observed to be framed from the part of
the senior management of the organization stationed at Australia without any sort of
communication with the management of the subsidiaries. This created such a scenario where
the decisions that were framed from the part of the management of the organization had no
consideration regarding the varying parameters of the cultures and the society of China,
Singapore and Vietnam (Hofmans, De Gieter & Pepermans, 2013). Hence the effectiveness
of the decisions for the employees of the subsidiaries of the mentioned organization was
observed to be notably restricted.
Apart from this, the human resources management of the organization was observed
to be inefficient in the formation of an appropriate performance measurement plan that has
the potential of enabling the organization in the effective evaluation of the performances of
the employees inside the organization. In addition to this, the incapability of the human

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resource management of the organization in meeting the developmental needs of the
employees is seen to be a major concern for the employees of the organization and that was
pretty evident with their incapability in meeting the organizational needs. The senior
employees of the organization were seen to be afraid of losing their positions and not getting
promotions if they successfully manages the developmental needs of the employees as the
developed employees will then have the capability of operating in an improved manner.
Hence the senior employees of the company were seen to consider it as a threat for their job
and the growth of their carer which forced them to be reluctant in taking the much required
initiatives in meeting the developmental needs of the employees.
Activities of Human Resource Management:
The human resource management of the company had the potential of improving the
condition of the organization in a notable manner with the some of the crucial restructuring in
their business activities. One of the prime issues that the company faced, was the
complacency of the employees of the organization. The human resource management of the
company was in need to introduce relevant rewards plan for the employees of the company as
that had the potential of increasing the competitiveness amongst the employees of the
organization (Hayes, 2018). The rewards plan of the organization needs to be sufficiently
attractive for the elimination of the sense of complacency amongst the employees of the
organization (Cameron & Green, 2015).
With a precise focus on the resistance of the employees of the organization towards
the changes, the human resource management team of the organization will face the same
need as the incorporation of a rewards plan with the introduction of the intrinsic and extrinsic
rewards will be crucial in influencing the employees of the organization in playing the role of
the change agents in a successful manner (Dhar, 2015). The success of the human resource

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management team of the organization in avoiding the resistances of change will be based on
the capability of them in motivating the employees for the achievement of improved
performances during the change (Kumar & Pansari, 2015).
Considering the topic of quality, the human resource management of the organization
has two major activities that will be crucial in improving the condition of the organization.
Firstly, the managers of the organization need to make sure that the employees receive the
scope of participating in the training and developmental activities as that will be crucial for
meeting the developmental needs of the employees (Noe et al., 2017). Along with that, the
introduction of the rewards for delivering the required quality in their operations will be
crucial for the management of the organization in improving the quality of the products of the
company. Apart from this, the human resource management of the organization needs to take
the initiative of improving the coordination between the employees of the different teams
with the implementation of the employee engagement activities (Rolková & Farkašová,
2015). Other than this, the managers of the Chinese workforce needs to make sure that they
provide the priority to the skills and competencies of the employees rather than the
disabilities of the employees as that will eventually provide notable amount of benefit to the
mentioned organization (Carbonell & Rodriguez-Escudero, 2013). From the case, it is pretty
evident that the senior employees of the organization requires some amount of
encouragement from the part of the managers of the human resource department of the
organization in the form of extrinsic and intrinsic rewards which will be able to motivate the
senior employees in undertaking the required initiatives for meeting the developmental needs
of the junior employees and in working with the employees of other generations (Hayes,
2018).

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Plan:
My plan for the improvement of the condition of the organization is as follows:
One of the top most priority in improving the condition of the organization will be to
form an attractive rewards plan which includes rewards on the basis of the quantity along
with the quality of the operations of the employees. The formation of the rewards on the basis
of the production will make sure that the employees of the organization are not complacent
with their operations and along with that, the rewards on the basis of the quality will be
crucial for the organization in eradicating the threats of withholding the partial payments
from the part of the customers of the organization.
In addition to this, it is recommended to the managers of the organization to make
sure that the implementation of the changes inside the organization is carried out with a
precise focus on the literature of the organizational change as that will enable the
organization to involve the employees in a more efficient manner. The increased involvement
of the employees of the organization along with the initiatives from the part of the senior
management in motivating the employees with appropriate rewards and recognition will be
crucial in implementing the changes inside the organization in a successful manner.
One of the important recommendation for improving the condition of the organization
will be the increment in the initiatives for improving the coordination between the employees
of the organization. With a precise focus on the declining team performances inside the
organization, the recommendation will be increased occurrences of the employee engagement
activities inside the organization. The senior managers of the organization will provide the
scope to the team leaders for team dining and for the other employee engagement activities
which will improve the coordination and bonding between the members of the different
teams. With a precise focus on the participative management style, the managers stationed at

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the headquarter are expected to provide the chance to the mangers of other subsidiaries in
taking part in the decision making process (Rolková & Farkašová, 2015).
It is important to motivate the employees for their improved operations and under
such situation, the training that effectively meets the developmental needs of the employees
regarding the new cultures become important for the expatriates. The application of the
motivator in the form of the appropriate training will be significant. Considering the Herzberg
theory of motivation, the appropriate training with a precise focus on the culture and the
society of the new country, for the expatriates will be much needed for the success of the
organization (Yusoff, Kian & Idris, 2013). Other than this, the effective formation of the
rewards and performance management is seen to be a major need for the company. Under
such situation, the formation of rewards plan with precise identification of the physiological
needs of the employees becomes the top most priority for the selected company. With a
precise focus on the Maslow's hierarchy of needs, the introduction of a relevant performance
management plan for the appropriate evaluation of the performances of the employees of the
organization is also a major need for the company to improve their condition (Taormina &
Gao, 2013). Other than this, the formation of the rewards in accordance to the physiological
needs of the employees will hold the key of the success for the company in mitigating the
quality concerns of the company.
Recommendations:
An important set of recommendations for effectively managing be condition of the
company is listed below:
 The company needs to form an appropriate rewarding policy with the inclusion of the
intrinsic and extrinsic rewards.

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 The company needs to engage the employees with the application of the effective
employee engagement activities to strengthen the team performances and the
collaboration amongst the senior and junior employees.
 The company needs to adapt a shared decision making style where the centre of
power for the decision making will be distributed amongst the subsidiaries and the
headquarter authorities.
Conclusions:
On a concluding note, it is pretty evident that No Name is suffering from a
significantly inefficient organizational culture. The behaviour and the approach of the
employees of the mentioned organization is seen to be major concern for the senior
management of the organization. Along with that, the ineffective team performances and the
inappropriate decision making inside the organization is seen to affect the business activities
and the quality in the products of the mentioned organization. The capability of the human
resource management team of the organization in forming the attractive reward plan for
motivating the employees of the organization is crucial for the organization in minimizing the
mentioned issues. Along with that, the imitative from the part of the human resource
management team of the organization in meeting the developmental needs of the employees
has the potential to minimize the detrimental impact of the lack of quality in the business
activities of the No Name.

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