IBU5HRM Case Study: Strategic HRM Solutions for No Name Aircraft

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This case study analyzes the human resource management challenges faced by "No Name" Aircraft, an organization with headquarters in Australia and subsidiaries in China, Singapore, and Vietnam. The company struggles with issues such as negative culture, poor product quality, lack of workforce planning and team coordination, diversity management, and a deficient performance management system. The analysis considers socio-economic, institutional, and normative influences affecting the organization. Recommendations are provided at the organizational, individual, and team levels, focusing on global leadership development, performance management implementation, and cultural awareness programs to ensure a smooth international transfer process and adherence to labor and equal opportunity laws. The goal is to improve organizational effectiveness and address the identified issues to prevent their recurrence, ensuring the company's competitiveness and preventing a potential takeover.
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Running Head: Human Resource Management
No Name
Human Resource Management
Case Study
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Human Resource Management P a g e | 1
Table of Content
Introduction....................................................................................................................................................... 2
Issues Faced By the Organization.............................................................................................................. 3
Issue Handling at No Name.......................................................................................................................... 4
Socio-Economic Influences...................................................................................................................... 5
Institutional Influences............................................................................................................................. 5
Normative Influences................................................................................................................................. 5
Steps taken to ensure the issues do not repeat in Future...............................................................6
Ensure a smooth International Transfer............................................................................................ 6
Labour and Equal Opportunity Law.................................................................................................... 6
Recommendation to tackle the issues..................................................................................................... 7
Organizational Level................................................................................................................................... 7
Individual Level............................................................................................................................................ 8
Team Level..................................................................................................................................................... 8
Implementation of the Plan......................................................................................................................... 8
References........................................................................................................................................................ 10
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Human Resource Management P a g e | 2
Introduction
“No Name” Aircraft is headed by Adam O’Meara who is the CEO of the business
organization which has its headquarters in Australia and has subsidies in three
countries- China, Singapore and Vietnam. The company manufactures and sells its high
quality Aircraft across 50 nations, plethora of parts of the Aircraft are produced in parts
of China and Vietnam, while most of the design engineers work out of Singapore. CEO
Adam O’Meara is under tremendous pressure due to the numerous problems related to
integration and management of the workforce which has led to miscommunication
amongst the team leading to reduced productivity. The company is under scrutiny and if
things don’t change quickly, it will very soon be taken over by its competitor.
CEO has hired an external HR consultancy to fix the problem and help the
organization to stay competitive by overcoming the challenges of its Human resources.
The underlying purpose of the assignment here is to understand the issues depicted in
the case and how the issues can be handle to achieve harmony in the workplace.
Additionally how HRM can help in tackling the issues and to ensure that they don’t
repeat in the future will be studied. Towards the end, an implementation plan along
with the recommendation will be suggested to the CEO of “No Name” to ensure
organizational effectiveness.
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Issues Faced By the Organization
No Name organization is clouded with numerous issues pertaining to its
workforce which have made it increasing difficult for the company to stay competitive.
Some of the major issues at hand for the company are:
Growth of negative Culture at the Home turf-The culture at No name is the
biggest reason of the fallout of the company. People in the organization are not working
well and there is no proper communication between the integrated teams, leading to
zero or less coordination amongst them. Moreover the staffs are resilient and have
decided to show great resistance if the organization imposes any change in the
organization. The same thing is extended between the headquarters and subsidiaries.
Poor Quality of Products-Poor quality of products can be seen as the direct
reflection of the communication and cultural challenges at the organization. The
company has been received strong flak from all its government and non-governmental
customers on the poor quality of its products. Customers have issued warning letter and
informed the company, if the quality does not get better they would hold the payments.
Lack of Workforce planning and Team coordination- It can be seen from the
case that there are more than 50 teams which are working across the various aspect of
aircraft manufacturing, such as designing, assembly, wire harnessing and so on. The
ineffective workforce planning and illogical distribution of workforce along with
resilient workforce are creating troubles for the company.
Lack of Team Work-The biggest issue with No Name is the inability of the
employees to come together and work towards fulfilment of the common objectives and
goals. The concept of team work has become extinct from the company which then leads
to a stockpile of problem for the company.
Diversity Management- Even though the company has a policy which states
that people should work side by side with people from different religion, ethnicities,
race, culture, caste, creed and other philosophies. The same value is not translated as
culture in the organization which leads to discrimination at the workplace and a
possibility of legal case due to non-hiring of disabled people in China.
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Lack of a comprehensive performance management system- Although the
company charter says that it practices and ensures the international practices of human
resource management, but it is hardly practiced in the organization. Appraisals are done
only in Australia, rest of the places no such thing even exists which breaks the
motivation of the employees.
Lack of Proper planning in terms of work distribution- All the decision for No
Name are taken at the headquarter in Australia and passed over to other subsidiaries.
This creates challenges as the managers do not take into consideration the work
distribution according to the cost and other parameters.
Lack of Performance Metrics- The entire organization is in a clumsy state and
no KPI’s are defined for the employees working in different parts of the world. This
leaves the employees without any direction to proceed towards their career
development goals.
Lack of Training- The Company is doing poorly when it comes to provide
training to the employees and also to the expatriate leaving the country. There is no
formal assessment process of identifying the training need and gap analysis of the skill
sets.
Lack of Feedback Process- The organization has completely ignored the
importance of feedback, thus has no control over the needs of the employees when it
comes to understanding their training requirement and assessment of the training
effectiveness.
Lack of Communication- Communication is the fundamental pillar of any
organization’s success; this very aspect is missing in the organization. Communication
has taken a major setback at all fronts, all departments and even among teams. There is
no proper communication between the different countries in which No Name is
operating.
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Issue Handling at No Name
In order to overcome the issues at the organization, they have to be combined
and discussed under the three heads which play a major influencing role. The major
influences are:
Socio-Economic Influences-Socio economic influences are concerned with the
general economic condition of the states and the labour market condition (Jones,
Fuertas & Lomas, 2015). It is seen that the company has failed to understand the socio-
economic condition of the subsidiaries unit set up in China, Singapore and Vietnam.
China has a very large labour market and the labour is cheap and readily available,
therefore the company has to push its mass production activities to China. Singapore is
a fast paced moving Asian economy with strong working ethics in people. The company
should source the work which requires high technical expertise. In Vietnamese culture
face has a very important role to play, organization has to ensure that they hire and
recruit a senior member in Vietnam so that people by the virtue of their obedience and
respect can work towards achieving the goals of the organization.
Institutional Influences-These influences include the legal rules, formal and
informal rules set up by the employees and the Union (Boyd & Fietze, 2017). China has a
strong affinity towards union, thus a minimum wage rate has to be ensured for the
Chinese working population along with ensuring the safety of its people. Australia has
to take steps to create a WHS policy for its people working in all the outside countries to
ensure the safety of them. It is very necessary to have the HR policies consistent across
all the nations. However, certain changes are necessary to better suit the requirement of
the other countries. This will also help in creation of a 360 degree performance
management system in the organization. It will help in dealing with the issues of
workforce planning, setting up of performance metrics and work distribution.
Normative Influences-These are related to the social and cultural tradition of
the people with strong relevancy to their nations (Filieri, 2015). For example Chinese
people are hardworking; they are disciplined and follow rules. Chinese are very
productive; this is one of the reasons for its fast economic development. No Name has
to ensure that the keep the Chinese working population engaged with quality work and
help them in staying productive which would yield beneficial results for the
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organization. Singapore on the other hand is another fast paced Asian economy which
has strong values towards work. They need clarity of instructions and set of guidelines
along with a clear plan of career development in their career. The company has to
ensure that they fulfil the need of the people in Singapore as well. As mentioned earlier
in the report that Vietnamese are hardworking and work best under the guidance of a
senior member in the team. Recruiting the right candidate will help in getting desired
results for “No Name”.
All these influences will ensure that the issues are resolved after careful
evaluation of the strategies to succeed in the HRM.
Steps taken to ensure the issues do not repeat in Future
The company has to ensure that they take proactive measures and precautionary
steps to ensure that the issued discussed above do not occur in the future, ever again.
Ensure a smooth International Transfer- No Name has to create a smooth
transition policy for the transfer of an employee from one country to another. It is very
necessary that they are given good amount of training hours on culture, impact of
cultural diversity in the workplace and a good amount of understanding on the work
done in the subsidiary unit. It is also essential that the transferred person knows his
clear cut job responsibilities along with his line of reporting. It is very much advisable
that the person is given info on the issues pertaining to the location he is being assigned
to so that he can formulate a strategy to tackle the challenges beforehand. All this will
ensure that the problem does not repeat in the future due to the systematic process
ensured by the HR department at Australia. It is extremely important that the HR create
policies related to employee transfer, employee cultural training, number of hours
required and a complete assessment of the present condition and future state. Once the
policies are set in place, the company can ensure that the same challenges do not appear
in the future (Kerzner & Kerzner, 2017)
Labour and Equal Opportunity Law-One of the major reasons why No Name
Company has failed seriously to manage its workforce and most of the aspect of Human
resource management is its ability to create the laws pertaining to equal opportunities
for all the employees. In case, when there is diversity in the workforce, there are people
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from different background side by side. It is the duty of the organization that it sets up
policies to ensure that every person in any part of the country has the equal opportunity
of learning and growth, development and progress in his future. Discrimination is one of
the biggest crimes in the world, and No Name has been doing that in its subsidiaries
across Vietnam, China and Singapore, the company has to create stringent laws and
policies to ensure that people do not discriminate on the basis of difference in the
background or any other disability (Gallagher, Giles, Park & Wang, 2015).
Conclusion
To conclude, No Name organization has been facing high turmoil due to
ineffectiveness in the workplace and inability of the HR team to carry and conduct the
organization to the best of its potential. The company has to understand and create
strategies in setting up a performance management system, career development goals,
training programs, smooth international transition training and so on to ensure the
effective delivery of the objectives of the organization.
Recommendation
Analysing the issues and how these issues have socio-economic, normative and
institutional influences, a set of recommendation are suggested for No Name which have
to be implemented at the individual, group and organizational level.
Organizational Level
Creating a global leadership development program-Creating a leadership
development program will not only help in succession planning but would also ensure
that the employees are motivated to excel at their jobs. It will also help the organization
to ensure that the employees are engaged with the employees (Canals, 2014).
Newer form of International assignments-It is very essential that the
employees working in different parts of the world get opportunity to visit the
headquarters at Australia and see the business conduct. Similarly expat from Australia
should visit other units to identify the challenges and work on reducing the resistance
or friction of the employees (Gupta, 2017).
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Human Resource Management P a g e | 8
Performance management system- A centralized PMS will ensure that
employees are aware of their KPI and know their job objectives. This will also help in
work distribution and workforce planning. At the same time, 360 balanced feedbacks is
a continual process of assessment which will ensure the employees are productive
throughout the year (Buckingham & Goodall, 2015).
Training Programs- Company has to create a training calendar for its
employees in its entire business unit. Creation of training program is mandate for
organization to help the employees to make significant progress in their career. It will
also help the employees in understanding the value and time the organization is putting
in them. The training can also be ensured through the usage of social media, blogs,
Wikipedia and other technological tools which can be used to train a larger chunk of the
employees (Dhar, 2015).
Individual Level
Work Life Harmony approach- Individual have to ensure that they deploy
work life harmony approach to ensure positive environment at the workplace and in
their personal lives. It will help in keeping the energy, productivity and morale of the
employees high (Zink, 2014).
Respect the culture of every person-No Name has employees from different
nationalities working together; it is the duty of the employees to treat every person in
the similar manner irrespective of the caste colour and creed to give emphasis to the
culture of workforce diversity (Goswami & Goswami, 2018).
Team Level
Ensuring good flow of Communication-It is the duty of department to lay the
emphasis of team work and co-ordination among the different department of the
organization for increased productivity of the entire organization. In organization
numerous departments are working in close integration with each other, thus it
requires better co-ordination and communication to ensure the higher efficiency and
effectiveness of the teams and entire organization (CHaudhri, 2016)
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Human Resource Management P a g e | 9
Implementation of the Plan
Creation of leadership development plan at the Headquarter level will help in
defining the career development goals and help in succession planning for the
organization. The plan does not require hiring of additional resources and can be
implemented by the existing team at No Name. Training assessment through feedback,
face to face interview will help in understanding the effectiveness of the program which
is conduct annually (Rasche & Scherer, 2016).
Creating a training program for the employees and for the expat will help in the
problem of tackling cultural challenges. The additional resource required for this will be
video and text tutorial and training manager who would ensure the creation of training
calendar and circulation in the organization. The same can be measured through
surveys conducted online and the training program will be used throughout the year.
Creation of the training calendar to be done at the headquarter and implementation at
all the units (Sisson, 2017).
A carefully designed PMS will ensure that the employees are aware of their goals
and objectives and know the path which has to be followed. 360 degree evaluation of
the employees implies they will bring discipline in their behaviour and ensure they
follow the organizational rules and protocols. The same will be ensured by the HR
manager in sync with the line manager and has to be created at headquarter and
implementation at the subsidiary level (Famrer, 2017).
Communication has to be ensured at every department and every unit of the
business organization irrespective of the size and work specialization. Communication
has to be both ways, up to down and bottom to up to ensure the smooth functioning of
the entire system. This will ensure no grapevine in the business organization. The same
has to be implemented at all the business units of the organization and can be ensured
by employee satisfaction index questionnaire.
Creation of Work life harmony will help the employees in understanding the
importance of work life balance on their productivity. It is round the year work which
one has to do himself to increase his own productivity and deliver more to the
organization.
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References
Boyd, B., & Fietze, S. (2017). Institutional Influences on Succession Intentions: A Welfare
Model Analysis. In 7th Leuphana Conference on Entrepreneurship.
Buckingham, M., & Goodall, A. (2015). Reinventing performance management. Harvard
Business Review, 93(4), 40-50.
Canals, J. (2014). Global leadership development, strategic alignment and CEOs
commitment. Journal of Management Development, 33(5), 487-502.
Chaudhri, V. (2016). Corporate social responsibility and the communication imperative:
Perspectives from CSR managers. International Journal of Business
Communication, 53(4), 419-442.
Dhar, R. L. (2015). Service quality and the training of employees: The mediating role of
organizational commitment. Tourism Management, 46, 419-430.
Farmer, N. (2017). The invisible organization: How informal networks can lead
organizational change. Routledge.
Filieri, R. (2015). What makes online reviews helpful? A diagnosticity-adoption
framework to explain informational and normative influences in e-WOM. Journal
of Business Research, 68(6), 1261-1270.
Gallagher, M., Giles, J., Park, A., & Wang, M. (2015). China’s 2008 Labor Contract Law:
Implementation and implications for China’s workers. Human Relations, 68(2),
197-235.
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Human Resource Management P a g e | 11
Goswami, S., & Goswami, B. K. (2018). Exploring the Relationship between Workforce
Diversity, Inclusion and Employee Engagement. Drishtikon: A Management
Journal, 9(1).
Gupta, P. (2017). Need and Importance of Human Resources Development in an
Organization. Journal of HR, Organizational Behaviour & Entrepreneurship
Development, 1(2), 16-24.
Jones, R. V., Fuertes, A., & Lomas, K. J. (2015). The socio-economic, dwelling and
appliance related factors affecting electricity consumption in domestic
buildings. Renewable and Sustainable Energy Reviews, 43, 901-917.
Kerzner, H., & Kerzner, H. R. (2017). Project management: a systems approach to
planning, scheduling, and controlling. John Wiley & Sons.
Rasche, A., & Scherer, A. G. (2016). Organization as Communication and Habermasian
Philosophy. In Organization as Communication (pp. 25-48). Routledge.
Sisson, D. C. (2017). Inauthentic communication, organization-public relationships, and
trust: A content analysis of online astroturfing news coverage. Public Relations
Review, 43(4), 788-795.
Zink, K. J. (2014). Designing sustainable work systems: The need for a systems
approach. Applied ergonomics, 45(1), 126-132.
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