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 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).
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 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).
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).
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).
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).
‘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 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.
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 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.
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 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.
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
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).
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).
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).
Apart from the training and development and international performance Management ‘No Name’ Aircraft also faces issues egarding 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.
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 subsidiaries. The suggestion is to use software like Customer Relationship Management System (CRM), Enterprise Resource Planning System (ERP), Inventory Management System to centralize business processes among subsidiaries and headquarters. ‘No Name’ aircraft should obtain feedback from customers regarding quality and should negotiate with suppliers to provide best quality parts of aircraft.
A clear communication system should be developed among all teams of the organization so that teams not only focus on achieving individual team targets but these targets should be linked with overall organizational objectives. A matrix team can be developed where members from different teams with special skills will be appointed to complete a specific project and then the team will be dissolved. Communication gap between headquarters and subsidiaries should be reduced.
Diversity should be managed to gain competitive advantage. Cultural tolerance of race, age, gender, ethnicity, sexual orientation, religious beliefs and physical abilities and other philosophies should be practiced. The international human resource management team should organize cultural activities where team members can perform activities like dance, singing, story-telling, stage plays to demonstrate their culture. In China, strict procedure should be adopted to recruit people with disabilities who have skills required for the job. Biases should be avoided in ‘No Name’ aircraft.
Reference Lists
Al Ariss, A., Cascio, W. F., & Paauwe, J. (2014). Talent management: Current theories and future research directions. Journal of World Business, 49(2), 173-179.
Alfes, K., Shantz, A. D., Truss, C., & Soane, E. C. (2013). The link between perceived human resource management practices, engagement and employee behaviour: a moderated mediation model. The international journal of human resource management, 24(2), 330-351.
Anderson, V. (2013). Research methods in human resource management: investigating a business issue. Kogan Page Publishers.
Armstrong, M., & Taylor, S. (2014). Armstrong’s handbook of human resource management practice. Kogan Page Publishers.
Aswathappa, K. (2013). Human resource management: Text and cases. Tata McGraw-Hill Education.
Bratton, J., & Gold, J. (2012). Human resource management: theory and practice. Palgrave Macmillan.
Brewster, C., Houldsworth, E., Sparrow, P., & Vernon, G. (2016). International human resource management. Kogan Page Publishers.
Buller, P. F., & McEvoy, G. M. (2012). Strategy, human resource management and performance: Sharpening line of sight. Human resource management review, 22(1), 43-56.
Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L. (2014). International business. Pearson Australia.
Harzing, A. W., & Pinnington, A. (Eds.). (2010). International human resource management. Sage.
Jiang, K., Lepak, D. P., Hu, J., & Baer, J. C. (2012). How does human resource management influence organizational outcomes? A meta-analytic investigation of mediating mechanisms. Academy of management Journal, 55(6), 1264-1294.
Marler, J. H., & Fisher, S. L. (2013). An evidence-based review of e-HRM and strategic human resource management. Human Resource Management Review, 23(1), 18-36.
Shaw, J. D., Park, T. Y., & Kim, E. (2013). A resource?based perspective on human capital losses, HRM investments, and organizational performance. Strategic management journal, 34(5), 572-589.
Sparrow, P., Brewster, C., & Chung, C. (2016). Globalizing human resource management. Routledge.
Stahl, G. K., Björkman, I., & Morris, S. (Eds.). (2012). Handbook of research in international human resource management. Edward Elgar Publishing.
Storey, J. (2014). New Perspectives on Human Resource Management (Routledge Revivals). Routledge.
Vaiman, V., Scullion, H., & Collings, D. (2012). Talent management decision making. Management Decision, 50(5), 925-941.
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