IBU5HRM Report: A Strategic HRM Plan for 'No Name' Aircraft Company

This report identifies and addresses critical issues at 'No Name' Aircraft Company, focusing on poor communication, lack of effective performance techniques, and the absence of well-defined policies. The report highlights the detrimental effects of these issues on teamwork, product quality, and overall company performance. It proposes a comprehensive plan for the Human Resource Department to implement, including the use of big data for market analysis, the establishment of clear rules and regulations, the promotion of a culture of respect and tolerance, and the adherence to international labor laws. The plan also emphasizes the importance of performance appraisals, comprehensive training programs, and strategies for improving employee engagement and organizational effectiveness. The ultimate goal is to enhance the company's competitiveness, improve its share price, and prevent potential takeovers.

Running head: Human Resource Management 1
Human Resource Management
Student’s Name
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Human Resource Management
‘No Name’ Aircraft has various issues that have caused the company profits to decline,
and this has led to a high probability for a takeover of the firm. The company’s CEO, O’Meara is
therefore aware that he needs to maximize the shareholders’ returns by increasing the company’s
share price to reduce the company’s risk of a takeover. According to Ferrari (2014) and Whetten
(2007), a company’s share price depicts the value of the company at any given time. The CEO
thus needs to bring in real growth to the company for the share prices to increase. Real growth is
shown by increased revenues and profits (Podsakoff & Dalton, 2007). For the company to grow,
it is therefore paramount for the issues to be identified and addressed and the recommended
changes implemented over specific timelines. Over time, the results need to be assessed to
determine if the company is heading towards the achievement of its goals. If not, more changes
need to be implemented until it is determined that the company is experiencing real and
continual growth.
This study contains a description of all the issues facing the company, as well as
measures that should be used to deal with these issues and improve the firm’s effectiveness. The
main problem is poor communication among different employees which inhibits teamwork. The
firm also lacks the necessary performance techniques necessary to achieve its set goals. Finally,
the paper contains a plan that the firm should implement in a bid to increase its effectiveness and
improve productivity.
Issues Identified at ‘No Name’ Aircraft Company
The first issue identified in ‘No Name’ Aircraft is the lack of effective communication.
According to Weinzimmer, Nystrom, & Freeman (2008), proper communication is necessary for
every organization regardless of its size or shape. Anna (2014) states that communication may
seem to be very simple, but people can misunderstand each other leading to frustration and
conflicts in both professional and personal relationships. The teams at ‘No Name’ Aircraft are
not working effectively or collaboratively, and the management is not properly communicating
with them. For any organization to work effectively, it is vital for teams to properly perform their
task work and teamwork (Akaso, 2011). Task work has been defined by Fleck (2009); Obure
(2016) and Muogbo (2013) as the specific tasks that are allocated to individual team members.
Conversely, teamwork focuses on the shared cognitions, attitudes, and behaviors that are critical
for teams to complete their tasks (Sophia & Owuor, 2014); (Song & Chen, 2014). The lack of

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teamwork in the different teams means that the team members do not collaborate with each in
getting work done. This had therefore led to low-quality products being made and the employees
have even developed a mantra that ‘near enough is good enough.’
The teams are also not working together with other groups. ‘No Name’ Aircraft needs its
different departments to work in coordination because the products from the various departments
are then used together in the creation of the final products. To ensure proper coordination, the top
management is needed to coordinate all the company operations. However, it is evident that even
the administration is not being effective in its duties and this is one factor that has caused the
company to fail. One employee, Ben Brown, states that the other teams are even trying to
sabotage the operations of other groups which has led to the build-up of resentment across the
different groups. The lateral and horizontal communications in the company have therefore been
compromised which has brought massive inefficiencies in the firm.
The company employees also lack sufficient instructions on how to do their jobs.
Employees are working individually even within their teams. Each employee is merely working
in his or her area. The working relationships across and within the units are hence poor.
According to Accion (2013), even though task work is crucial for the teams as they aim to
achieve their goals, teamwork is what ensures that the employees perform their tasks effectively.
This is crucial because, with cooperation, employees can trust each other, coordinate behaviors,
and share knowledge with each other. According to ILO (2014), even the most qualified and
well-skilled employees will still fail if they have poor teamwork. For teams to work effectively,
they need to communicate effectively amongst themselves and with their superiors, yet at ‘No
Name’ Aircraft, line managers in Australia are not performing their duties because the CEO
continually receives emails from Vietnam, Singapore, and China seeking clarification on
different areas. The line managers are hence not fulfilling their roles and responsibilities.
The employees also have very poor perceptions of the company, and they do not have the
will to better the quality of the products. They, therefore, produce products that are of such low
quality that they require constant modifications after they have been sent to customers. The
customers are consequently complaining about the lack of quality of the products. Once
customers find that the products are of low quality, it is likely that they will switch to a different
supplier and ‘No Name’ Aircraft will lose its customers. Additionally, the constant complaints
from customers have damaged the company’s reputation, and it is very likely that other people

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will not want to purchase products from the company. The products that have been identified as
having the lowest quality are from both China and Vietnam.
Change is crucial for every company especially in this day and age of technology and
information (Baker, 1999). The fact that employees are not willing to change is a significant
cause of failure for the company because it has rendered it uncompetitive in the international and
local markets.
Another major issue identified at ‘No Name’ Aircraft company is the lack of well-stated
policies in regards to the expected code of conduct. The company just states that all employees
should be respectful of the age, race, ethnicity, gender, physical abilities, religious beliefs, and
other philosophies. The company, however, does not expound on how employees need to respect
all these elements, and it also does not state the consequences for employees who do not abide by
the company’s policies. The rules are hence ambiguous and are this has caused employees not to
comply with them.
It is clear that the firm does not support diversity. This is depicted in that the senior
employees in the firm do not want to work with apprentices and this has caused their
relationships to become strained. Consequently, this has created a hostile work environment
which has reduced productivity. Additionally, the China offices do not hire people with
disabilities even when they are highly qualified than other people without disabilities. This
shows that the company does not promote diversity which could lead to legal action being taken
against the company by the rejected candidates both in the local and international markets. The
company is hence not aware of the importance of diversity which is vital since it will give the
company a competitive edge (Richmond, McCroskey, & McCroskey, 2005).
For employees to interact appropriately with each other, there is a need for a clear set of
practices (Mcewan at al., 2017). However, ‘No Name’ Aircraft does not have a clear set of
practices to ensure that the employees understand each other. This had caused conflicts among
the employees which has adversely affected the company’s operations.
Performance appraisals are one of the main factors that enable a company to grow as its
employees strive to achieve company goals by having targets that must be achieved within a
given timeline (Tarricone & Luca, 2002). ‘No Name’ Aircraft does not perform performance
appraisals for its expatriates and its subsidiaries. This means that the company does not track its

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employees’ performance to ensure that they achieve specific set targets. This has caused the
employees to work without a sense of direction, and this has thus reduced their morale.
Moreover, the firm does not take the market and economic factors into consideration to
find out how they will impact business operations. Market and economic factors are critical to
business operations, and they must be considered to identify any trends and hence make the right
decisions. The fact that the company does not recognize them means that it is operating blindly
and this has affected its revenues adversely. Factors of demand and supply of money and goods
must be used in the firm’s decisions. The use of these factors will help the firm plan its
operations in all the countries and hence optimize production.
Finally, it is clear that ‘No Name’ Aircraft employs inferior training techniques for its
employees. One employee, Alice Morgan stated that it took her a long time to adjust to her work
environment after moving to Singapore due to a lack of induction training. Additionally, the firm
lacks avenues through which employees can send feedback on their training. The company trains
its employees by referring them to their online platforms to get information. This is not the right
method of training especially in a company like this that requires integration between and among
the teams. Once the employees have studied the information, they need to have avenues where
they can ask follow-up questions on different issues. This lack of proper training has therefore
caused the employees to be ineffective and produce low-quality products.
Ways in Which the Human Resource Department Can Deal with The Issues
“No Name’ company needs to deal with its different issues in the most effective manner
by taking into account the fact that the firm operates internationally. The company’s problems
can be grouped into three main categories. These are socio-economic influences, institutional
influences, and the normative (socio-cultural) influences.
‘No Name’ Aircraft does not take into consideration market and economic forces that
affect the demand and supply of its products during its operations. To deal with this, the
company should make use of big data to analyze the existing trends in the industry and the
overall economy. By so doing, the company will determine the quantity of products that should
be produced at any given time. By conducting data analysis, the firm will also become aware of
the techniques that its competitors are using and how they have been able to increase their profits
and their market share. Additionally, the company will identify the preferences of its potential
customers and thus produce commodities that correspond with the market needs (Husain, 2013).

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By analyzing data from each country, the company will be able to maximize its revenue by
increasing production in countries where demand is highest.
Institutional influences also require being reviewed to address the company’s issues. The
company needs to set rules and regulations that all employees are supposed to respect at all times
in all its countries of operation. It should provide a code of conduct which all employees must
strictly adhere to. The firm should also promote a culture of respect and tolerance. There should
also be severe consequences faced by the employees who fail to comply with the company’s
rules and regulations. The consequences that should be provided include suspension, demotion,
transfer, reduced salaries, evaluation of adverse performance, and warnings which can either be
written or verbal (Song & Chen, 2014). The firm also needs to accurately state its mission,
vision, and, goals and ensure that its employees work according to them. The firm also needs to
fire employees who do not work by its set rules and regulations and ensure that its leaders model
the company’s values in all their activities.
‘No Name’ Aircraft also needs to follow different international labor laws such as the
international labor organization standards which require firms to eliminate discrimination, allow
collective bargaining of employees, abolish child labor, and eliminate forced labor (ILO, 2014).
Therefore, the firm should respect its employees and their occupation and also communicate
their rights with them to ensure that they do not feel threatened or unprotected. The firm also
needs to abide by international laws that require them to promote organizational diversity.
Therefore, they should provide equal opportunities for all its employees without discrimination.
The firm also needs to provide proper training to its employees to ensure that they can
work in harmony with each other and perform their roles effectively. To ensure that employees
work effectively, there should be performance appraisals carried out regularly. The firm needs to
create key performance indicators (KPIs) that will be used to measure the effectiveness of its
employees. To ensure that employees work hard to achieve the set targets, there should be
rewards given to the best performing employees. The awards, either monetary or non-monetary,
will motivate the employees and ensure that they are as effective as possible. On the other hand,
those employees who do not add value to the company should be trained further, and if they still
do not improve, they should be fired.
Finally, the company should consider socio-cultural influences. In this regard, the firm
should first study the cultures of Australia, Vietnam, China, and Singapore. By adequately

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understanding these factors, it will then impact this knowledge on its employees to ensure that
they do not act in breach of either the social or cultural practices in the country where they work.
Proper communication of organizational and international policies will aid in improving
employee morale, team building, as well as enhancing corporate diversity. International transfers
will also become much more productive for the company since the employees will be able to
adjust to new environments quickly. To ensure that the issues identified at ‘No Name’ Aircraft
are not repeated, the company will need to enforce its sanctions in case employees fail to abide
by the company policies. The use of rewards will also motivate employees to produce high-
quality products and increase efficiency in their work.
Plan for ‘No Name’ Aircraft
Evidently, ‘No Name’ Aircraft’s major problem is the poor communication that occurs
between the team members, across the various teams, and between the management and its
employees. The other major issue is the lack of proper rules and regulations governing how each
employee is supposed to behave. The lack of performance appraisals also adversely affects the
firm and reduces the employees’ morale. Additionally, the company does not promote the culture
of diversity, and this has created an environment of intolerance among employees.
The firm hence needs to deal with all these issues at the individual, group, and
organizational levels. First, the firm should train all its employees on their duties and precisely
state what their role is in the firm both in the headquarters and the subsidiaries. It should offer
global leadership programs to its top employees to enable them to gain skills on how to become
effective leaders in any part of the firm.
Second, the firm should create key performance indicators that will be used to determine
the employees’ levels of effectiveness. The KPIs should be specific, measurable, achievable,
relevant to the firm, and time-bound. This will increase the employees’ accountability and ensure
that they work to achieve the set targets. There should also be rewards for the employees if they
attain specific objectives or go beyond them.
The firm also needs to create company policies to describe what is expected of the
employees. The employee manual should include the expected code of conduct, the dress code,
organizational diversity management, among others to ensure that employees accurately
comprehend what the company expects of them and the sanctions brought about by non-
compliance. The firm also needs to make use of data analytics in its decision making processes

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to identify trends and determine opportunities. To do so, it needs to purchase different data
analytics devices and software. Finally, the company should promote a culture of efficiency,
tolerance, teamwork, and open communication.
‘No Name’ Aircraft should implement the plan shown below.
Action (for both the headquarters and
subsidiaries)
Timeline
1. Employee training For one month.
2. Global leadership programs Bi-annually
3. Creation and communication of
company policies
In a months’ time
4. Creation of key performance
indicators and performance
appraisals
In a months’ time and
monthly reviews
5. Creation of strategies to improve
teamwork
In a months’ time.
Figure 1
By following this plan, the company will be able to start being effective and it will increase its
revenue and overall profits over time.

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