Discuss about the Human Resource Management In Global Economy.
The report is based on the case study of the No Name Airline. It shows the issues and problems faced by the company. Being an international Human Resource Management consultant, the report shows the resolution how the human resource management deals with the issues so that the issues will not occur in the airline company again. Being an international Human Resource Management consultant, an implementation plan is suggested to the company. The recommendation in context to the situation of the company is discussed in the report which needs to be considered by the company to bring the improvement in the situation that company is facing. The name that I have given to the airline is ‘HIMALAYAN AIR’.
The company is manufacturer and seller of the aircraft in approximately 50 countries. The CEO Adam O’Meara said that they are willing to enhance the profit of the company. The company decided to maximize the shareholder’s return on investment. The company is operating the subsidiaries in China, Singapore, and Vietnam. The headquarters of the company is situated in Australia. The parts of the aircraft are produced in China and Vietnam along with this aircraft assembling process will take place in Singapore and Australia.
Each and every company in the 21st century is willing to expand the business globally but nowadays company is facing issues related to the management which need to resolve by the Himalayan Air to work efficiently (Brewster, and Hegewisch, 2017).
Lack of Communication- The breakdown of the communication is among the integrated teams and the management is the most crucial issue which is faced by the company. Communication among the teams is just to avoid the failure of the work. The communication problem is a combination of the laterally and horizontally, the staff members said that they don’t receive any adequate instructions (Shockley-Zalabak, 2014). The manager present at the headquarters is responsible for the communication between the headquarters and its subsidiaries.
Culture- The culture of the company is very negative this is the workers adopted the slogan “near enough is good enough”. The culture shows that the employees will resist to the changes taking place in the company. This culture increases the gap between the subsidiaries and the headquarters of the company.
Poor quality- The quality is one of the major and crucial problems faced by the Himalayan Air. The aircraft require some of the changes even after the delivery, the customers, governmental and the non- government are complaining in regards to the quality delivered by the company (Goetsch, and Davis, 2014). The shareholders of the company have given the warning to bring the improvement in the quality of aircraft in next six months.
Lack of Team coordination- Lack of team coordination is the reason behind the difficult that the company is facing in terms of quality. There is a different team who are responsible for different work while assembling the aircraft the lack of coordination among these teams enhances the difficulty level (Cardon, and Marshall, 2014). Each team is specialized in the work they are doing, lack of working relationship makes the team suffer.
Diversity- Each and every company in the today’s world follow diversity management. In Australia, the company did entertain the employees from the diverse generations. In China subsidiary, the company avoided recruiting the people with disabilities. The managers were ignoring the applicants of the employees with the disabilities doesn’t matter they were having more required skills as compared to the others (Banks, 2015). CEO of the company found the consequence of legal action by rejecting the candidate with a disability.
Lack of HR practice- The Company faced issue related to the HR practice because there were no clear set of practices conducted by the human resources team of the Himalayan Air. The staff members of the company are getting influenced by the perception of each other (Armstrong, and Taylor, 2014). Over here, the HR has to show their role by making them understand the importance of the perception.
Lack of Performance management at subsidiary- The Himalayan Air Company only performs the international performance management at headquarters. The HR of remaining subsidiary does not conduct any performance review at other subsidiaries. The evaluation of the performance of the employees is must at the subsidiary, considering the performance the employees the company should give appraisal to the employees (Kawai, and Strange, 2014). Though, at Himalayan Air, there is no appraisal given to the employees for their work.
Lack of decision making- The decision of the company took place in Australia because they have to face the high cost and high expectations. Australian company does not consider the factors that affect the working of the company. These decisions create an impact on the subsidiaries working and they feel overburden this is the reason they are not able to bring the improvement in the work they are delivering.
Lack of training- The employees working in the company faced lack of training facility which is becoming a huddle to achieve the goals and meet the expectations of the company. The company should facilitate the expatriate training to the employees leaving Australia to work in China, Vietnam or Singapore. The HR of the company refer to take the online training if they want, there is no feedback given to the employees. For instance, a mechanical engineer Alice Morgan, told about the shifting of the place to Singapore, she was expecting training form the company side but no training was provided to her about the surroundings. It took a long time to her to get familiar with the place where she has to work.
Lack of management development programs– Management development plans work to identify and to recruit the potential managers and to develop their skills and knowledge which helps in achieving the goals of the company. This lack of management development programs has meant that the employees reserved by a company for the promotion have been poached by the other companies.
The Human resource management plays a vital role in working for the company. The issues discussed in the case study shows that the HR need to make strategies and need to deal with the issues to improve the working of the company. The CEO of the company has to understand the issues that the company is facing and then they have to make the HR team who can actually take care of the issues and follow the strategies that help in resolving the issues of the company (Morden, 2016). The implementation of the strategies will help the Human resource management team to deal with the issues.
HR rules and regulation: – The HR of the company should follow the proper rules and regulation so that they can treat employees equally. The employees of the company are influencing the other employees for making the negative perception. This will help the HR to take the right step to overcome the issues faced by the company (Gabriel, Cheshin, Moran, and van Kleef, 2016).
Schedule of Communication meeting and session: – The HR of the company should schedule the meeting and session which help the employees to perform the act of communication. The need for the effective communication is laterally and horizontally. The lack of communication is not from the employees but also from the management side. The HR of the Headquarters has to enhance the communication between the headquarters and its subsidiaries. The HR should use the digital communication such as e-mail, video conferencing, and Skype; this helps the company in enhancing the communication among the teams. The meetings and sessions with the manager on the scheduled time will resolve the problem of the lack of communication with the managers (Garvey, 2014). This communication will lead to the staff engagement which is helpful or the coordination among the team. The understanding among the team members will lead to the better coordination. Effective communication can easily resolve most of the problems faced by the company.
Cultural diversity: – The HR of the Himalayan Air need to understand the changes required in the culture of the company. Considering the international environment the HR need to maintain the diversity culture. The subsidiaries of the company are at different places so a company can get to know about the cultures of the different places (Hays, 2016). The HR of the company needs to improve the culture of the company and have to bring diversity into the culture.
Training and development: – The case study clearly shows that there is lack of training and development of the employees. The training programs need to be conducted by the HR of the company which helps the employees in developing the skills and capabilities to bring the improvement in the work. The absence of the training and development sessions will create the problems of the employees as they will not be able to perform the task effectively and efficiently this how they will not be able to achieve the goals of the company. The customers of the company are facing the problem related to the quality. Once the employees will be trained they will be able to enhance the quality in their work (Ford, 2014). The improved quality will facilitate the customer satisfaction which will reduce the complaints regarding the quality. The HR should facilitate the training to the employees who are shifting to the different branch so that they can easily settle at a new place.
Compliance with International Laws: – Company is expanding the business internationally so this is the duty of the HR to make sure each legal law is fulfilled. The company is avoiding the application of the disable people which should not be done by the company. The HR plays an important role in hiring the employees having skills they should not consider the disability of any person (Paust, 2017). This issue will lead to the emergence of the legal issues that can create an impact on the company.
Evaluation of the Performance management at subsidiary: – The subsidiaries of the company are facing the issue related to the performance management. The HR of the company should make sure that they conduct the performance management review as it is important for the employees as well as for the company. Evaluation will help the company to identify the amount for the appraisals (Chen, and Fong, 2015). The employees of the company will get to know about the skills they are lacking to achieve the promotion, through management development programs employees will be able to develop the skills.
Effective decision makings: – The managers of the company have to take the proper decision considering the environment creating an impact on the business. The HR of the company should make the manager understand whatever decisions they will make at the headquarters will affect the subsidiaries working as well (Pettigrew, 2014).
These HRM should ensure that with the implementation of these strategies will reduce the problems in the organization. The action of the HRM shows that with the implementation of the strategies the problems are not going to be repeated in the organization. The main focus of the HR is on Communication which resolves most of the issues faced by the company.
The implementation plan is shown below which helps the company in eliminating the issues. The implementation plan plays a vital role, it guides being a consultant how issues can be resolved.
The implementation plan starts with the identification of the root causes that create an impact on the working of the company. Once the issues will be identified by the company then the company need to evaluate the major issues. After the evaluation of the major issues, a company makes the planning for the strategies that the company should implement to resolve the issues faced by the company. The strategies discussed which show how the HR deals with the issues are those strategies which can be implemented by the consultant to resolve the issues faced by the Himalayan Air. Once the planning of the strategies and the selection of the strategies will be completed then there is need to implement the strategies (Woodrow, and Guest, 2014). After the implementation of the strategies, the consultant checks that the strategies are effective for resolving the problems or not. The manager should identify the loopholes in the strategies if they are not able to see the effectiveness of the strategies, removal of the loopholes will help in resolving the problems. The company should take the feedback from the employees in regards to the changes in the organization and the removal of the issues from the organization (Pettigrew, 2014). The company can implement the changes suggested by the employees of the company.
It is recommended to the company to seriously follow the plan which helps the company in eliminating the issues from the company. Being a consultant, it is recommended to the company to implement the plan not only in headquarters but also in subsidiaries of the company. The involvement of the HR and the employees of the company is a must while implementing the plan. It is suggested to check the benefits of implementing the plan in the organization. Before implementing the plan the company should form an effective communication in the organization. The lack of communication in the organization might create a problem for the Consultant in analyzing the situation of the company.
Conclusion
The report throws light on the issues highlighted in the case study of the No Name Airline. The company is having subsidiaries internationally. The company is dealing with many problems not only in headquarters but also in subsidiaries. Considering the international environment the human resource management implemented few strategies to deal with the issues faced by the company. Being a consultant it is suggested to the airline company to implement the plan to resolve or to eliminate the issues faced by the company. The implementation plan needs the involvement of the HR so that the company will be able to satisfy the employees and will be able to retain them in the organization.
References
Armstrong, M. and Taylor, S., 2014. Armstrong’s handbook of human resource management practice. Kogan Page Publishers.
Banks, J.A., 2015. Cultural diversity and education. Routledge.
Brewster, C. and Hegewisch, A. eds., 2017. Policy and Practice in European Human Resource Management: The Price Waterhouse Cranfield Survey. Taylor & Francis.
Cardon, P.W. and Marshall, B., 2014. The Impacts of Team Listening and Unscheduled Meetings on Team Coordination. Studies in Media and Communication, 2(2), pp.107-117.
Chen, L. and Fong, P.S., 2015. Evaluation of knowledge management performance: An organic approach. Information & Management, 52(4), pp.431-453.
Ford, J.K., 2014. Improving training effectiveness in work organizations. Psychology Press.
Gabriel, A.S., Cheshin, A., Moran, C.M. and van Kleef, G.A., 2016. Enhancing emotional performance and customer service through human resources practices: A systems perspective. Human Resource Management Review, 26(1), pp.14-24.
Garvey, W.D., 2014. Communication: the essence of science: facilitating information exchange among librarians, scientists, engineers and students. Elsevier.
Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence. Upper Saddle River, NJ: pearson.
Hays, P.A., 2016. Addressing cultural complexities in practice: Assessment, diagnosis, and therapy.
Kawai, N. and Strange, R., 2014. Subsidiary autonomy and performance in Japanese multinationals in Europe. International Business Review, 23(3), pp.504-515.
Morden, T., 2016. Principles of strategic management. Routledge.
Paust, J.J., 2017. Actual Commitment to Compliance with International Law and Subsequent Supreme Court Opinions: A Reply to Professor Moore. Hous. J. Int’l L., 39, p.57.
Pettigrew, A.M., 2014. The politics of organizational decision-making. Routledge.
Pettigrew, A.M., 2014. The politics of organizational decision-making. Routledge.
Shockley-Zalabak, P., 2014. Fundamentals of organizational communication. Pearson.
Woodrow, C. and Guest, D.E., 2014. When good HR gets bad results: Exploring the challenge of HR implementation in the case of workplace bullying. Human Resource Management Journal, 24(1), pp.38-56.
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