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International Human Resource Management

Case study: ‘No Name' Aircraft

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Introduction: Focus of this study is to provide effective international human resource management solutions for NO Name Aircraft and set a harmony of performance management through the different subsidiaries including China, Singapore and Vietnam. Understanding the case study reflects several internal and external management issues within the home county teams and branch of this company that impacts on the performance and profitability management in subsidiaries such as China and Singapore. These issues are important as they relate to the organization status, operations, quality management, relationship with stakeholders, shareholders and in a nutshell with the existence of the company in different companies. The case study analysis has distinguished lack of management insight in various levels of the company in n their headquarters. There is no proper communication between different departments within the company. Certainly, management could be identified as the responsible entity for problems. As an international HR consultant, it is significant to understand the problems from a global outlook. By contrasting the home country issues and its effects on the different subsidiaries policies and strategies need to be developed or modified. A systematic policy for managing internal conflicts as per the external demands and changes would help to overcome difficulties and retain the organizational profitability.

Question 1: As an International Human Resource Management Consultant what are the issues? In this question you need to explain what the issues are in the case study.

Answer: There are a lot of issues associated with the No Name Company. Some of these issues are very major and may lead to the termination of company. The company is operating on a multinational basis therefore its offices, factories and assembling plants are based outside of Australia as well. The company has its presence in countries such as Singapore, China and Vietnam. Since it's an aircraft manufacturing company, its parts are built in places such as China and Vietnam mostly because of its low-costlabour. In most cases, the aircrafts are assembled in Australia and Singapore to get better tax benefits. This company sells its product to both government entities and non-governments entities. However, there is a big communication gap between these factories and assembling lines. As a result, there is no group work among the employees of these factories. Even though this issue can be removed with, better communication channel and improved human resource management. The top-level management of the company is not giving much importance to it.

The lack of communication is the major issues for the company. With improved communication, most of its issues can go away in matter of days. However, the lack of communication is not taking place between the workers working within a company but it is taking place with the subsidiaries it holds. The workers working outside of the country or more particularly in the production facilities have little to no connection with the assembling facilities. As a result, the quality of product is being hampered. The condition is so bad that some of the stakeholder's have personally sent letters to the CEO of the company to address the situation. They have also provided an ultimatum to the CEO of the company warning about the quality and the duration of ultimatum is six months.

The poor quality is hampering the company's image in the international market. The primary reason for having such poor quality in the behaviour and culture of the company. The company's attitude of "good enough" is the primary reason why the quality of its product are being hampered. Sometimes right after the delivery of product the end party comes up with complaints relating to the quality issues.

There is not enough policy made upon the cultural diversity of the company. As a result, the company is facing serious internal issues. The company need to implement some new policies to address the internal issues of the company. Perhaps the major issue that is coming forward in the subsidiary country is the issue in induction of disabled workers who has more than the average qualification. The managers and the Human resource management of China based factory is not letting any disabled person to work within the company.

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The company need to integrate new IPM system into its production as well as assembling facilities. It will help the company to deal with the cultural as well as social issues of the company. The company do not maintain a good feedback system as a result the transformation and distribution sector of the company is getting hampered. The IPM system is not at all flexible in the company therefore the subsidiary of the company is not being able to make independent decision based on the situation.

The staff training and development program is not up to the mark as a result, the workers are getting frustrated and showing less and less interest in development. The communication and the upper management play a very important role when it comes to the current situation of the company. The CEO of the company did not pay much attention towards the betterment of the situation. As a result, the company is facing serious issues internally. The communication can play a very important role in handling the issues in hand. Its negative culture is playing a major role in its bad performance and need desperate attempt from the CEO's end to fix the issues.

The main issues that are coming to the organization are from consumers, staff and the members of the company. As stated by Cascio & Boudreau (2016), in their article, which showed the search for global competence through a 50-year content analysis and review of published research in the field of international human resource management. The international human resource research has different prospective than the national and work in a multi-dimensional manner. The article shows the experimentation of human resource management from 1965 to the present-day scenarios.

The unemployment rate has gained up to 5.2%. Even though the number may seem healthy to some economist, the number of unemployed goes over 7003,900. The condition of the labour market looks favourable for the company. They may choose to induct new employees and make serious changes into the working environment of the company. The overall working environment of the company is in desperate need of some desperate changes and need to be carried out immediately. The issues in the company needs a ground level approach because of the negative culture creation.  

Question 2: How should Human Resource Management deal with the issues in the case? You need to explain how HRM should ensure the issues are not repeated, taking into consideration the international environment.

Answer: After reading and analysing the issues in the company and in its subsidiaries, issues could be dealt as per the three main levels. Descriptions of them are given below;

Socio-economic influence: As per the case study analysis, No Name Aircraft is dealing with issues in their diversity management, training and development and international performance management standards. Prevalent policies in home country branch (Australia) is not development as per the standards in China, Vietnam and Singapore. There are different trends and socio-economic changes have been seen in these countries. These changes can be categorized as labour market conditions and economic conditions for business. 

As per the previous reports presented on Australian labour market status, steady unemployment rate, chances of slow wages growth population driven by the foreign migration are the main issues (Bishop & Cassidy, 2017).

International Human Resource Management.jpg

Figure 1: The recent state of play

These issues have direct connection with the diversity management and international performance standards for the case study organization and the training needs of employees. Compared to the labour market status in Australia, China is suffering form lower unemployment rates, which indicating to contradict fears of developing lay-offs is the decrease in the size of the labour force. Whereas, the migrant workers have been increasing in Australia, chain is losing grief on its migrant workers specifically in manufacturing and construction industry (Ahn& Duval, 2017). Therefore, NO Name Aircraft should be careful for the diversity policy and engineers working form them who are mostly from Singapore. On the other hand, it could be seen that Singapore labour market is seemed to be developed with total number of domestic workers (Mok, 2017).

International Human Resource Management 1.jpg

Figure 2: Yearly employment change

Vietnam is facing problems of low level of labour productivity in the manufacturing sector. Other important challenge in this country is the lack of skilled workforce and labour reforms (Duc & Van, 2016). Therefore, it could be said that NO Name Aircraft should be careful about their labour market distribution strategy. The expatriate training and development programmes could be impacted mostly as many of the subsidiaries' countries are currently struggling problems with migrant workers specifically in manufacturing and construction industry.
There is concern for NO Name Aircraft for its profitability issues that relate to the internal environment management and external operations of the business. it has been seen that the quality management of products is failing and the overall profitability of the business. Demands of the Aircrafts and quality are not going together. This company will face problems with withhold of partial payments if the conditions are not improved.

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Normative (socio-cultural) influence: The socio-cultural problem analysis has outlined issues that are connected with the internal workforce management, attitudes of management and employees, performance management of the company in its home country as well as in the subsidiaries. It has been seen that no communication process has been implemented properly among the departments and employees in this company. For instance, the ad hoc approach towards international performance management is not considering changing economic factors in different countries. 

The economic changes in Singapore, China and Vietnam is not similar with the economic changes in Australia. Therefore, the performance appraisal strategies should be modified. On the other hand, performance management and expatriate training are not following the social and cultural norms of different subsidiaries (McNulty & Selmer, 2017). China needs improved pre-departure training and expatiate skill training programmes (Kang & Shen, 2017). Singapore has been developed in their expatriate performance management practices and several industries have been following that (Kang & Shen, 2017). However, No Name Aircraft needs to change their approach as per the development so that workflow and workforce management in this subsidiary could be aligned. An assigned team should be sent to Vietnam to understand their expatriate training failures and costs in training and development, and send feedback on the conditions before changing the policies (Polón, 2017).

Institutional influence: The institutional impacts on No Name will be evaluated through legal rules, formal or informal rules set by the employees and departments in the company, which is impacting their internal business operations. It has been seen that main problems relate to the communication issues between employees and departments, the integration issues within the teams, diversity management lack of clear set of practices performance review and others. These problems, specifically, operations of different subsidiaries are getting affected. As a result, the profitability, producibility and quality management are decreasing. It has been seen that inflow and development of Chinese workforces need including the main functions of training, performance review, compensation frameworks (Brewster et al., 2016). 

These requirements are contradicting the values and rules of No Name Aircraft. For example, decision-making and making orders for subsidiaries to manufacture a specific quota of parts only to search out there is a surplus of the same things in Australia. This type of rules in decision-making process is contradicting performance management and expectations in Singapore (Singh, Sethuraman& Lam, 2017). It has been seen that due to this type of decision-making process, the imitation processes, workforce capability, economic health of the subsidiary is affecting. Additionally, Vietnam is striving for innovative-based model and modern management ways as a part of the HRM (Zhu &Verstraeten, 2013). Therefore, No Name Aircraft needs to change their decision-making processes as part of the international human resource management process. They should follow the current practices, needs and culture of different subsidiaries.

Ensuring no repetition of issues: From the above case study analysis, it has been understood that for effective international transfer, the management in No Name Aircraft should consider changing communication methods by frequent contact throughout a project, planning for reintegration and the decision-making processes (Gesell et al., 2017). The expatriate training needs and performance monitor on a regular basis should also be implemented. 

Developing workplace operations beyond regulatory compliance could product higher morale and professional satisfaction, and nurture innovative practices. This company should concentrate on parenting with employees and uphold freedom of associations and the right to collective bargaining (Beer & Lester, 2015). International labour standards, such as implementation of ILO will contribute to the legal system by evaluating and promoting global labour standards targeted at ensuring financial development that go with the making of decent work (Picciotto, 2017).

Question 3: What is your plan to present to the organisation? You need to make a solid recommendation to the company and present them with an implementation plan to eliminate the issues.

Answer: The implementation plan is listed below;

Purpose of the plan: Purpose of the implementation plan is to ensure effective management around the subsidiaries and home country operations along with management of productivity and retaining profitability of the company.

First recommendation

Where the recommendation would be applied

Why

Needed resources

Metric of success

Evaluate success rate

work-life balance policies and interpersonal communication processes

This recommendation or change would be implemented in headquarter.

The home country management and communication process need to be change initially so that effective decision-making processes could be catered to the subsidiaries.

New human resources

Feedbacks, company annual reports and surveys of employees will be done.

Monthly

Table 1: Implementation plan for first recommendation

Second recommendation

Where the recommendation would be applied

Why

Needed resources

Metric of success

Improving the operational challenge and performance monitoring tools to ensure better quality and integration among different departments and management

This change would be applied both in the headquarter and subsidiaries

Both the operational process and performance management processes in subsidiaries and home country should be aligned.

New human resources

Feedbacks, company annual reports and surveys of employees will be done.

Table 2: Implementation plan for second recommendation

Third recommendation

Where the recommendation would be applied

Why

Needed resources

Metric of success

Evaluate success rate

This organization needs application of workforce planning and management development policies

This change would be applied both in the headquarter and subsidiaries

For effective decision-making process that are as per the needs and urgencies in both headquarter and subsidiaries

New Human resources

Feedbacks, company annual reports and surveys of employees will be done.

Annual

Table 3: Implementation plan for third recommendation

Conclusion: The above discussion is based on a company called "No Name". Its primary discussion is based on the quality issues of its product and the reasons behind such quality issues. The company has its bases on China, Singapore, Vietnam and Australia. The communication is creating a big gap in the work force as a result the quality of the product is being hampered. The negative culture of the company is acting as a fuel to the issues. The negative culture and poor-quality product of the company is hampering the goodwill of the company along with its internal environment and share value. The CEO of the company is facing serious problems while dealing with these issues. The stakeholders of the company along with its consumers are showing serious concerns and demanding for changes.

Recommendations: The recommendations would be divided into three separate levels that are individual level, group level and organizational level.

No Name Aircraft should change employee work-life balance policies and interpersonal communication processes in the headquarters. The group level recommendation would be improving the operational challenge and performance monitoring tools to ensure better quality and integration among different departments and management. This organization needs application of workforce planning and management development policies.

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