Discuss about the International HRM Practices in Automotive Industry.
In the scenario of globalization, every company is facing a greater challenge in developing its human resources for the future globalized society. The changing factors of globalization are influencing almost all aspects of human’s life all over the world, and framing the nature of upcoming future as “global workforce”. In the present competitive environment, the companies working on global level needs to prepare their workforce to deal with the upcoming changes. If a company fails to do the same, then it may have to face critical situation related to its human resource management as well as on its operational management (Budhwar & Debrah, 2009). This report describes the problems faced by Adam O Meara, who is an International Human resource management consultant. Meara has been given a contract to identify the issues related to human resource management of the company ‘No Name’ Aircraft. He analyses the issues prevailing in the environment as the performance of the company is getting very low day by day. Meara identifies some issues and suggests some steps that should be taken into consideration by HR department of ‘No Name’ Aircraft to eliminate these issues. He also recommends some key changes to the implementation plan that can be useful to manage human resources in an effective manner to improve the performance of the organization (Butt & Katuse, 2017). This report describes the issue, suggestions, and recommendations for the plan as suggested by Adam O Meara.
After analyzing the environment of the company and going through its management policies, Meara identifies some major issues related to the human resource management of the company. The issues can be summarized as follows:
The first issue that come in front of Meara is related to the poor quality of products. The stakeholders are not happy with the quality of output provided by us. It is the result of lack of determination of quality standards in the organization. There are no guidelines related to the efforts of employees in the situation of poor quality. It is making the financial condition of the company is weak and the goodwill of the firm is also being affected by the stakeholder’s opinion (Cascio & Boudreau, 2016).
At ‘No Name’ Aircraft, the main issue related to managing human resources is maintaining and understanding cultural diversity. The senior staff in the head office does work and behave in the same manner with the newly appointed staff. The members of senior staff do not tolerate any minor mistake from the trainees’ side and it often results in generating conflicts (Taylor, 2006). There is no any set of guidelines is provided by human resource department that may help in communicating employees with each other. It is also noticeable that the recruitment team of China is ignoring the applicants with disabilities. Meara personally went through some job applications and found that the capability of disabled persons was more than the persons appointed. This is resulting in the bad productivity form China plant (Eroglu, 2014).
Meara believes that training and development practices are required to be followed by all the organization working on the international level. It improves the capacity of working and flourish the skills of employees. In ‘No Name’ Aircraft, he found that there is no any type of training and development practices to provide information about any new technology and business activities. In case of transfer of employees from one country to another, the company does not provide any assistance and training about the culture, working environment, employee’s behavior (Tarique et al., 2015). The lack of training causes in facing a lot of challenges by the employees. Training programmes related to the professional development are the major factor that helps in identification and recruitment of potential professionals. There is lack of professional development programmes for employees working in the organization to assist them in identifying their flourishing professional skills (Fenton-O’Creevy et al., 2008).
Miera also noticed that for the measurement of performance, there are no proper guidelines and frameworks provided by HRM that can be used to measure the performance of employees. Also, the employees of the branch of Australia are appraised and promoted. The employees working in China and Singapore are not even considered for the purpose of promotion. This created a sense of negligence among the employees of other two countries. They may think that their current organization does not recognize their capability. It also may also result in leaving the jobs by the employees in China and Singapore because every professional wants to grow in his carrier either in his current working organization or in another one if there are sufficient opportunities (Furusawa & Brewster, 2016).
The relations of the employees depends on their communications skills. A healthy environment having good communication among its employees can result in increased productivity and achieve organizational goals in an easy manner. As per my observation, the communication gap among the employees is very vast due to improper policies of human resource department. The employees of the company are not comfortable to share their work related problems with one another. It creates an unhealthy environment and does not support the effective human resource management practices in the company (Haak-Saheem et al., 2017).
In order to overcome all these issues, the human resource management of the company is required to take following improvement measures:
The HR department of the company should encourage the appointment of diversified force in all three branches of the company. There should be no discrimination on the basis of sex, religion, race, value, and beliefs of the employees. Also there the problem of intolerance by senior employees in the presence of junior employees is required to eliminate by the HR department as this results in developing equality among the employees (Vance & Paik, 2014). The recruitment and selection processes of all three branches should be performed on the basis of equality and the candidates with disabilities should be given equal opportunity to work with the company. It will result in increasing the productivity of the organization, which may result in increasing the quality of the products (Harzing & Pinnington, 2010).
The HRM policy and operations management policy is required to introduces some standards and measurements to ensure the improvement in the quality of the products. Their standards should be communicated to employees during training and development programmes.
Minimizing cost and maximizing profits is the core objective of all businesses. So, ‘No Name’ Aircraft should ensure the productivity level of its employees and try to make it as higher as possible. For this purpose, the HRM is required to introduce training programmes to the existing employees to update them about the trending business practices. Similarly, training programmes should also be run by the management to train new employees about the culture of the organization and the working conditions within the organization. This training includes off-site as well as on-site job training for the employees of the organization. Providing support and training to employees not only benefits the organization but also helps the employees in improving their professional skills. This makes feel the employees as they are most important and vital part of the organization (Jackson & Deeg, 2008).
The communication gap among employees can be decreased by introducing effective interpersonal communication environment in the organization. For this purpose, short games and activities can be carried out at the workplace during small breaks and intervals. It is the responsibility of HR department to ensure that whether all the employees are able to talk to each other without any hesitation or not (Sheehan & Sparrow, 2010).
On the basis of above issue, there are some recommendations for implementation plans that can be followed by the management to eliminate above-mentioned Issues:
Hiring to talented employees may result in increases in product quality and therefore, stakeholders would also like to keep their investment with ‘No Name’ Aircraft. The hiring of talented employees is not sufficient unless training programme is no arranged for them to make them understand the work procedure and culture of the company (Mwema & Gachunga, 2014). The below-mentioned plan can be implemented to apply this recommendation in an effective manner:
Hiring and Training process for the development of employees can be developed by implementing the process. In the flowchart, it has been clearly shown that how one activity is connected to another and thus frames a complete and effective process for hiring and training of employees.
An effective process for evaluation of employee’s performance may result in creating a win-win situation for the employee and the company. All employees and staff members of ‘No Name’ Aircraft should receive feedback on the basis of their performance whether it is constructive feedback or positive feedback (McGraw, 2004). The performance evaluation process can be implemented by considering below-mentioned process:
Above flowchart shows the plan in which process evaluation process can be implemented in the environment of ‘No Name’ Aircraft. It starts with the self-evaluation of by employees which further may help the supervisors in collecting data and evaluating performance while considering different measurements of performance evaluation.
Internal communication (vertical and horizontal, downward and upward) is a requirement for civilizing the working environment, encourage engagement of employees, provide coordination and leadership among all the employees in the organization irrespective of their designations. Internal communication should not be considered lightly and must plan, implement and verify in such a manner that can ensure that form whom, who, How, and when to contact (Lazarova et al., 2014).
Above flowchart shows the methods and processes that can be implemented for effective communication among employees of ‘No Name’ Aircraft. According to the flowchart, employees should be updated about the strategies of the company. The opportunities should also be provided to them to communicate with each other on different matters. Employee’s incentives and earnings should be disclosed time to time to encourage them. Groups should be framed of the members having different qualities so that they can assist each other and communicate each other in a desired manner (Kshetri, 2017).
Conclusion:
On the basis of above study, it can be concluded that effective management of human resource management is an essential tool for the development of the organization as well as for its employees. HRM includes a line of steps and policies that should be considered by human resource department in order to implement effective human resource management. The issue highlighted in the case study of ‘No Name’ aircraft can be solved on the basis of suggested actions that should be taken into consideration by the company. The recommendations provided at the end of the report does not only include the elimination and prevention of issue but these would also facilitate the organization to work with fast-changing global environment and strategies. The conclusion can be drawn that HRM management is base of all type of processes in an organization and if an organization is weak in managing its human resources than it will have a negative impact on its productivity, profitability, employee satisfaction, stakeholder’s satisfaction and last but not the least communication among employees. In order to get success in the long run with minimum conflicts and high employee satisfaction, an organization should focus on the management of its human resources on the priority basis.
References:
Budhwar, P., & Debrah, Y. A. (2009). Future research on human resource management systems in Asia. Asia Pacific Journal of Management, 26(2), 197.
Butt, M. A., & Katuse, P. (2017). International Human Resource Management Practices in Automotive Industry in Pakistan: Implications for Economic Growth. International Journal of Business and Management, 12(2), 136.
Cascio, W. F., & Boudreau, J. W. (2016). The search for global competence: From international HR to talent management. Journal of World Business, 51(1), 103-114.
Eroglu, O. (2014). International Human Resource Management and National Cultural Challenges. Pamukkale University Journal of Social Sciences Institute/Pamukkale Universitesi Sosyal Bilimler Enstitusu Dergisi, (19), 91-102.
Fenton-O’Creevy, M., Gooderham, P., & Nordhaug, O. (2008). Human resource management in US subsidiaries in Europe and Australia: centralisation or autonomy?. Journal of International Business Studies, 39(1), 151-166.
Furusawa, M., & Brewster, C. (2016). IHRM and expatriation in Japanese MNCs: HRM practices and their impact on adjustment and job performance. Asia Pacific Journal of Human Resources, 54(4), 396-420.
Haak-Saheem, W., Festing, M., & Darwish, T. K. (2017). International human resource management in the Arab Gulf States–an institutional perspective. The International Journal of Human Resource Management, 28(18), 2684-2712.
Harzing, A. W., & Pennington, A. (Eds.). (2010). International human resource management. California: Sage.
Jackson, G., & Deeg, R. (2008). Comparing capitalisms: Understanding institutional diversity and its implications for international business. Journal of International Business Studies, 39(4), 540-561.
Kshetri, N. (2007). Institutional factors affecting offshore business process and information technology outsourcing. Journal of International Management, 13(1), 38-56.
Lazarova, M. B., Morley, M. J., & Tyson, S. (Eds.). (2014). International Human Resource Management: Policy and Practice. New York City: Routledge.
McGraw, P. (2004). Influences on HRM practices in MNCs: a qualitative study in the Australian context. International Journal of Manpower, 25(6), 535-546.
Mwema, N. W., & Gachunga, H. G. (2014). Evolution of global human resources management. International Academic Journals, 1(2), 21-33.
Sheehan, M., & Sparrow, P. (2012). Introduction: Global human resource management and economic change: a multiple level of analysis research agenda. The International Journal of Human Resource Management, 23(12), 2393-2403.
Tarique, I., Briscoe, D. R., & Schuler, R. S. (2015). International human resource management: Policies and practices for multinational enterprises. New York City: Routledge.
Taylor, S. (2006). Emerging motivations for global HRM integration. In Multinationals, institutions and the construction of transnational practices. London: Palgrave Macmillan.
Vance, C. M., & Paik, Y. (2014). Managing a global workforce: challenges and opportunities in international human resource management. New York City: Routledge.
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