HRM Report: Challenges and Solutions for No Name Aircraft Case Study

This report, prepared by a student for Desklib, examines the Human Resource Management (HRM) challenges faced by 'No Name' Aircraft, an international company with operations in Australia, China, Singapore, and Vietnam. The report analyzes issues related to training and development, diversity management, organizational culture, and international performance management. The analysis stems from a case study where the CEO is concerned about profitability and a potential takeover. The report identifies a lack of effective training programs, diversity issues including discrimination against disabled individuals, a negative organizational culture hindering communication and teamwork, and shortcomings in international performance management. To address these problems, the report suggests implementing communication tools for training, conducting intranet surveys to identify skill gaps, providing diversity training and activities, promoting teamwork and effective communication, training managers to provide timely feedback, and designing stakeholder reviews. The report emphasizes the importance of HRM in achieving organizational goals and offers actionable recommendations for improving the company's performance.

Running head: HUMAN RESOURCE MANAGEMENT IN A GLOBAL ECONOMY 1
HUMAN RESOURCE MANAGEMENT IN A GLOBAL ECONOMY
Name
Institution

HUMAN RESOURCE MANAGEMENT IN A GLOBAL ECONOMY 2
HUMAN RESOURCE MANAGEMENT IN A GLOBAL ECONOMY
Introduction
Human Resource (HR) is regarded as the backbone of an organization and is relevant to
the company’s performance and productivity. Managing employees as well as staff practices
along with policies enables a company to function successfully. Effective human resource
management is crucial if an organization is to entice and hold potential employees. Reflecting on
the case study of ‘No Name’ Aircraft, the CEO, Adam Omeara, is increasingly becoming
worried regarding the company’s profits. The CEO is worried about an imminent company
takeover. As such, he realizes that there is a need for maximizing the shareholders’ ROI as well
as acquire a higher share price. If this is not achieved, ‘No Name’ Aircraft could be at risk, and
this means that the CEO’s job could as well be on the line. The company conducts its business in
Australia and has got subsidiaries in China, Vietnam, and Singapore. Most of the company’s
aircraft parts are manufactured in China and Vietnam. In addition, most of the company’s design
engineers operate in Singapore. However, to maximize the shareholder’s ROI on investment,
Adam has to deal with cross-cultural issues because the organization operates in different
countries with varying cultures. Also, it is important to manage diversity among employees,
manage international performance, including training and developing the employees. As an
International HRM Consultant, I will identify issues in the case study and offer suggestions on
how the HRM can best deal with these issues. Nonetheless, a recommendation and an
implementation that ‘No Name’ Aircraft can use to eliminate the issues will be developed.
However, since the research is based on a case study, there are several limitations such as the
inability to replicate and there are also concerns regarding reliability, generalizability, and
validity of the results.

HUMAN RESOURCE MANAGEMENT IN A GLOBAL ECONOMY 3
Issues Identified in the Case
Lack of Training and Development
The human resource function of training and development involves developing the
employees’ knowledge, skills, and abilities to meet the needs of the organization. The reason for
the training and development is to create a motivated, competent, and high performing workforce
that will future demands of the organization. However, in the “No Name” airline, training and
development has proved to be an issue. One of the employees who is a chemical engineer was
moved to Singapore (Briody, Meerwarth Pester & Trotter, 2012). The employee was not offered
any type of training that will be useful in integrating into the new working environment. The
people at Singapore were doing things differently and the employee was not used to that. This
took the employee quite a long time to adjust to the task. The No Name airline does not offer
systematic management and planning programs to employees (Hogan & Coote, 2014). This
makes employees uninformed of their career anticipation within the organization as career
development plans are not utilized. Many organization encounter training and development
challenges such as identifying the training need to be delivered. Another training and
development issue faced by the most organization is global workforce and cultural differences.
Considering the diversity and breadth of the workforce, it becomes a challenge for managers to
offer training to employees (Acker, 2012). This is due to cultural and language issues which
should be put into consideration.
Diversity Management Issue
Diversity refers to respecting every person in the organization. This includes respecting
the race, gender, ethnicity, age, physical disabilities, sexual orientation, and religious beliefs of

HUMAN RESOURCE MANAGEMENT IN A GLOBAL ECONOMY 4
the workforce. The diversity issue in the No Name airline is embracing the rich value of working
with diverse persons (Brown, 2015). The organization does not tolerate working with people
from different generations. The working relationship in the organization is strained. In China, the
airline does not recruit people with disability. The managers do not consider disabled people
even if their skills are beyond and above their candidates. Another issue in the airline is that the
HR department does not have precise practices to assist employees to understand each other
(Shore, et al., 2012). Moreover, HR does not put into consideration the perception of employees
on each other. The interaction of employees is basically based on the perception they with each
other.
Across the globe, both profit and non-profit organization which has not embraced
diversity are affected by diversity issues. The first diversity issue that affects an organization that
has embraced diversity is gender issues (Stahl, Maznevski, Voigt & Jonsen, 2012). Such an
organization experience ‘women and men’ issues. The issue that they face is related to equal pay
and opportunities. Women are denied opportunities due to their or some are viewed as incapable
of handling some tasks. Some organization employs people depending on their age. Some prefer
teenagers since they view them as people who still more efforts to handle tasks and rea more
innovative (Nielsen & Nielsen, 2013). Lack of diversity in the workplace discourages teamwork,
respect, and acceptance among the workforce.
Culture
Organizational culture is important since it defines a company’s internal and external
identity. A positive culture in an organization may transform employees into advocates.
However, this is not the case with No Name airline. The company’s culture has developed into a

HUMAN RESOURCE MANAGEMENT IN A GLOBAL ECONOMY 5
negative one. The employees reveal the impression of resisting many attempts to make a change.
The company’s cultural issue has led to ineffective communication between the company and its
satellites. This has resulted in quality issues. Example, the aircraft require modifications which
range from small to large even after they have delivered to the customers. Both customers and
the government are complaining about the quality of No Name aircraft. This has led to some of
the stakeholders to withhold their payments until the airline improves the quality of its aircraft.
The airline also lacks integration mapping in its teams. The teamwork without specifications and
the working association across the team are wanting. The Australian line managers are the ones
who are responsible for communications between the subsidiaries and the headquarters.
However, O’Meara often receives emails from Vietnam, China, and Singapore seeking
clarification many points instead of contacting the Australian line managers. This shows that the
company lacks effective communication and integration between its teams.
There are many challenges that affect the organization. Cultural effects may result in
conflicts among employees. This because the employees come from different cultures which
makes it hard for an organization which impacts its decision making, leadership, and group
dynamics.
International Performance Management
Another issue affecting No Name is performance management. The performance
management issues of the company should be handled by the HR department in Australia. The
airline does not have any performance appraisal process for expatriates. On the other, the
company’s headquarters does not consider economic elements that affect its targets (Mir &
Pinnington, 2014). The managers in Australia are under stress due to higher expectations and

HUMAN RESOURCE MANAGEMENT IN A GLOBAL ECONOMY 6
higher costs. The decision is made at the headquarters which impact on each subsidiary without
consulting them (Vukšić, Bach & Popovič, 2013). Furthermore, there is no procedure that
underpins performance management.
Organization across the globe encounter several international performance management
challenges such as lack of leadership support. The management and leadership team do not
support and motivate performance management by providing support and recognition to
employees. Another challenge of international performance management is the lack of
recognition and rewards (Paillé, Chen, Boiral & Jin, 2014). Some organization does not
recognize the efforts of the employees and managers by rewarding them. The employees are not
motivated and this lowers the morale to continue being engaged in order to achieve the
organization’s goals.
Solutions to the Presented Problems.
Training and Development
Training and development is an important issue that organizations should put into
consideration. To ensure that the issues rea not repeated, the airline should initiate
communication tools for teaching opportunities (Alfes, Shantz, Truss & Soane, 2013). The
company should come up with communication channels such a video conferencing or activity
steam conversations that may be utilized to enhance the training experience for expatriates in
whatever locations. No Name airline managers should also detect the training needs of
employees. The company can achieve by carrying an intranet survey. This assists the company to
find the gaps in employee skills (Jiang, Lepak, Hu & Baer, 2012). The company should also
develop, maintain and enhance its knowledge base. It should place training materials such as

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demonstrations and recorded coaching sessions in a specific place that can be accessed by all the
employees.
International Performance Management.
As per the international performance facing the Arline, it should put in place the
following measures to curb the issues. The first one is training the managers to provide
meaningful and timely feedback when positive behavior occurs. When an organization waits too
long to provide feedback it affects the company’s employee engagement, morale, and the general
performance of the business (Haak-Saheem, Festing & Darwish, 2017). The company should
also design a stakeholder review that involves its major stakeholders. Carrying a proper
consultation with the stakeholders will assist the company to address all the needs of the
business. In addition, the company should come up with appropriate rewards and recognition to
promote top performance. This will make the employees stay motivated and inspired about their
future with the organization (Cascio & Boudreau, 2016). However, the reward and recognition
plan that the organization will come up with should have precise criteria and expectations
concerning the types of actions and behaviors that are rewarded to drive the company forward.
Diversity Management Issue
For the company to effectively address the issue of diversity, it should provide employee
diversity training related to diversity issues facing the organization. The company should include
all the workers including the senior officers of the company, integrate the diversity programs into
other initiatives (Fenton-O'Creevy, Gooderham & Nordhaug, 2008). Instead of the company
carrying out a diversity training course, it can integrate the diversity training into other initiatives
of the organization. The company should also use diversity activities in group meetings. Some of

HUMAN RESOURCE MANAGEMENT IN A GLOBAL ECONOMY 8
the activities that should be used be used in small group sessions include stereotype activities,
perspective- taking activities and giving chances to groups such as disabled people to take
positions in the organization (Furusawa & Brewster, 2016). The company should make diversity
as one its mission statement will assist it to instill the diversity cultural within all the branches of
the organization.
Cultural Issue
The company should educate the employees on the importance of the team. On the other,
it gives more assignments that involve teamwork. According to the case, the airline faces
communication challenges (McGraw, 2004). The company should educate the Australian
manager about their roles and ensure effective downward and upward communication flow in the
organization. Effective communication in the organization will improve teamwork.
Conclusion
Human resources are essential factors in determining the success of an organization. ‘No
Name’ Aircraft has issues to do with culture. The organization’s teams are not functioning well
and communication between the management and integrated teams is ineffective. Working
relationship within as well as across teams is not effective. Nonetheless, both horizontal and
vertical communication is compromised and the teams are receiving inadequate information
from their supervisors (Jackson & Deeg, 2008). The HRM is responsible for ensuring that teams
are motivated towards the achievement of a common goal and communication, either vertical or
horizontal is not compromised. Nonetheless, the organization faces the issue relating to the
importance of working with diverse individuals. For instance, in China, people with disabilities
are discriminated during the recruitment process irrespective of them having better skills

HUMAN RESOURCE MANAGEMENT IN A GLOBAL ECONOMY 9
compared to those of other potential candidates (Budhwar & Debrah, 2009). The company’s
HRM does not seem to have initiatives to assist its staff to understand each other and it does not
seem to put into consideration the essentiality of how individuals perceive each other.
International performances appraisals are also lacking in the organization. Performance reviews
are only carried out in Australia but none in the subsidiaries. Also, the company does not have a
systematic workforce planning or a management development program (Sung & Choi, 2014).
Hence, ‘No Name’ Aircraft has got a room for improving its HR to address these issues. The
recommendations and the implementation plan for these recommendations are as follows.
Recommendations
1. HR should focus on strengthening teamwork. Outlining the responsibilities of every
team member in an organization helps boost teamwork abilities. The HRM should identify the
skills and abilities of every member and delineate duties based on each member’s ability.
2. The HR feedback managers should meet with every employee from the headquarters
and the subsidiaries once in three months to provide performance feedback on every staff and
proposing training and development programs to improve each employee’s skills.
3. The company’s HR should also aim at increasing lifestyle as well as racial
awareness, along with tolerance and integration. The HRM should device means of integrating
diversity training into the company’s daily tasks.
4. Nonetheless, HR should develop an effective training and development program. The
program creates an enhanced understanding of the company’s goals and philosophy, policies, job
functions, and results in increased morale, productivity, motivation, and increased profits for the
company.

HUMAN RESOURCE MANAGEMENT IN A GLOBAL ECONOMY 10
Implementation Plan
The implementation plan is based on the recommendations provided above.
Recommendatio
n
Action (s) Responsibilit
y
Timeline Resources Monitoring
1 The HR management should identify
behaviors that are likely to result in
improved team performance if the
employees changed the manner in
which they do conduct their activities.
Nonetheless, lines of communication
should be identified to determine if the
employees are keeping each other in
the loop. Nonetheless, leaders should
be evaluated to determine how they
exercise authority. A gap between the
employees are doing and what should
be done to enhance teamwork is
identified. A common course of action
to be followed by all members is
decided.
HR Manager 6 months to
improve
teamwork
and the
process
should be
continuous
Funds Use of self-
monitoring
tools
2 The company should carry out a
company-wide training aimed at
reviewing both acceptable and
unacceptable behaviors. Nonetheless,
the HRM should develop and adhere
to strict hiring guidelines. In this case,
gender, disability race, or even
lifestyle should not determine if a
person is to be hired. Rather, a key
Evaluator Performance
appraisals
should be
conducted
after every 3
months
Existing
data and
funding
Developing
Key
Performance
Indicators
(KPIs)

HUMAN RESOURCE MANAGEMENT IN A GLOBAL ECONOMY 11
consideration should be on education,
experience, as well as qualifications.
3 The company should enhance its
recruitment process with the objective
of maximizing employment
opportunities for individuals with
disabilities as well as Indigenous
people. Also, the HRM should monitor
the company’s staffing profile
annually to ensure there is gender
balance. Also, the Human Resource
Management should consider options
for the disabled in the manner in
which they deliver their work. For
instance, this can be through job
sharing including requesting input
from disability support services. The
management should as well
incorporate behaviors that support the
principle of diversity into ‘No Name’
Aircraft’s performance management.
The managers should be encouraged to
become of issues related to employees
with disabilities when assigning duties
and relocating.
Manager The process
should be
ongoing
Funds Use of
diversity
monitoring
questionnaires
4 To improve the skills and the abilities
of its employees, the company’s
Human Resource Management should
identify areas of career development
as well as development opportunities
for all employees, including the
Line
Managers
Ongoing Funds and
training
experts
Monitoring
the Return on
Investment

HUMAN RESOURCE MANAGEMENT IN A GLOBAL ECONOMY 12
Indigenous staff as well as other
diverse groups in all its subsidiaries.
Effective training and development
programs should then be formulated
basing them on the company’s overall
strategy and objectives. The training
and development program should be
planned by paying attention to the
organization’s strengths and
weaknesses, the industry as well as
societal trends, including the
customers and the competitors.

HUMAN RESOURCE MANAGEMENT IN A GLOBAL ECONOMY 13
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