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Case study: ‘No Name’ Aircraft

CEO Adam O’Meara of ‘No Name’ Aircraft has become increasingly concerned about organisational profits. He’s worried that a company takeover is imminent. O’Meara realises he needs to maximise shareholders’ return on investment and obtain a high share price or this international company may be at risk and, of course, this means his job could well be on the line. ‘No Name’ operates out of Australia and has subsidiaries in three countries – China, Singapore and Vietnam. ‘No Name’ build and sell aircraft to 50 countries around the world. Numerous parts of the aircraft are produced in China and Vietnam and most of the design engineers operate out of Singapore. Aircraft are assembled in Singapore and also Australia.

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Literature review and Application

Introduction

Organization Climate, culture and diversity are extremely important elements of Human Resource Management. In most cases, the success or failure of the organization is dependent on the employees (Larsen, 2017). This is especially true for companies where the use of manual labour is required, and where machines are not required on most levels. It is also essential to note that since this concerns human beings, there might also be many issues that can possibly arise with an increase in employees. The issues can be as simple as issues with seniority, or complex as well (Bortolotti, Boscari&Danese, 2015). In many cases, these issues would sometimes be against the law of the area, which is why it is essential that they be dealt with. In most countries, it is essential that any and all issues that are related to the Human Resources of the company, which would consist of all the employees, be handled by the Human Resources department.

For the company ‘No Name' Aircraft, there has been a significant rise in Human Resource issues that are related to diversity, culture, performance management and training. This has caused a significant decrease in the profits and sales, and has made the company a risky investment. It is up to the CEO of the company to ensure that they are able to provide a return of investment to the shareholders, and thus address and try to look for solutions into the issues. This would also go a significant way in ensuring that the CEO of the company, Adam O'Meara, is able to keep his job as CEO, even if there is a takeover from another company. It is also essential for the company to have a high share price, so that the company is able to find more cash and be able to build itself back again. However, there are significant problems in this when it comes to the employees, which is why it is essential that the problems be addressed and proposed solutions be created in order to ensure that the company is efficient.

The following is a Review of Literature that is based on the 4 main topics, which are culture, diversity management, international performance management and training and development. It also looks at some of the solutions that can be proposed in regards to the Review of Literature and ‘No Name' Aircraft and how they can help in ensuring that the problems that the company has can be rectified.

Literature Review

Culture

Culture is an essential part of almost every organization. According to Alas & Mousa, (2016), in the paper titled "Organizational culture and workplace spirituality", organizational culture is an affirming factor in the success of any organization. The paper states that in order to an organization to be successful, it is essential that they have a culture that helps in drawing and retaining employees. If the employees in the organization are happy in the organization, it would most probably be due to the organizational culture of the place. The paper describes organizational culture as consisting of communication, social norms, customs, organizational stereotypes etc (Alas & Mousa, 2016). The paper clearly specifies the importance of ensuring that the communication skills in the workplace are effective, and that employees are able to communicate with each other in a non-offensive manner so that they can effectively change the organizational culture of the place.

There is a significant role of communication in the organizational culture process. Knowledge sharing within the organization has been found to be of benefit to not just the employees, but also to all members of the organization. In many cases, it can be of benefit to the CEO of the company as well (Chang & Lin, 2015). Organizational culture also has an important part in the knowledge-sharing process, as can be seen in the paper, "The role of organizational culture in the knowledge management process".

Team Integration is also one of the most important elements of organizational culture. In a paper titled, "Re-examining the functional diversity-performance relationship: The roles of behavioural integration, team cohesion, and team learning", the authors talk about the importance of ensuring that there is passing of information and sharing of knowledge amongst the team members, and how it is essential that not just between members of teams, but between different teams, integration is vital to the completion of the job (Tekleab, Karaca, Quigley & Tsang, 2016). There have been significant advancements made in the research that is regarding the development and integration of various teams in the workplace, and according to, Tekleab, Karaca, Quigley & Tsang, (2016), there is a theoretical model that is based on cross-functioning teams, that can help in ensuring that they are able to help each other out, since eventually it would be for the benefit of the company.

Diversity Management

Diversity management is also an essential part of every organization. There are many challenges that organizations can face when it comes to managing a diverse population. In many organizations, such as in the case of ‘No Name' Aircraft, there is an issue with the senior staff and how they are behaving towards some of the junior staff. It can be seen that in many cases, because of the level of experience that they have, the senior staff would view themselves as better than the junior staff, and be unwilling to train them or team them anything. This is looked at in detail in the paper titled, "Workplace diversity management in Australia: What do managers think and what are organisations doing?". The authors talk about the importance of ensuring that the senior staff does not view themselves as unofficial managers, and how important it is to ensure that the staff is treated by the management the same, regardless of the age of the staff (Davis, Frolova& Callahan, 2016)

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It is also important for any organization to have clear Human resource management practices in order to be effective in the organization. It is the policies of the HR department that are able to ensure that any form of discrimination is discouraged, and that it is possible for the organization to have clear HR policies, so that discrimination within the organization is discouraged on most levels. This can be seen in the paper, titled, "Enhancing emotional performance and customer service through human resources practices: A systems perspective", talks about Human Resource practices, and the benefits of having these practices can help in improvement of customer service as well (Gabriel, Cheshin, Moran & van Kleef, 2016). It can be seen that this might be an issue for the company, and it is essential that the importance of having HR practices that can benefit the organization are explored in a manner that is beneficial for the organization.

One of the other major problems that can be seen in the company would be the discrimination against people with disabilities in China. There can be significant repercussions of having an employee with disabilities, and one of the many issues that can pop up due to this would be legal repercussions. It can be seen in the paper titled, "Participant Recruitment for Studies on Disability and Work: Challenges and Solutions", that one of the key challenges for having people with disability would be the fact that they might not be seen as equal, and that the employers or managers might not believe that they are capable of doing a good job (Lysaght, Kranenburg, Armstrong & Krupa, 2016). This would have a significant effect on the company, and it can be clearly seen that these challenges would need to be addressed in order to ensure that it is possible to have employees who have disabilities.

International Performance Management

Performance Management is an essential part of almost every organization. According to Carvalho &Rabechini, (2015), in a paper titled, "Impact of risk management on project performance: the importance of soft skills", it is not just the organization that is able to benefit from performance appraisals, but also the employees. The skills of the employees stand to increase after each performance appraisal, and performance management is an essential part of every organization. It is essential that ‘No Name' Aircraft be able to benefit from the same.
Performance Appraisals are an important part of the organization. It is essential, according to Su& Baird, (2017), in their paper titled, "The association between performance appraisal systems, work-related attitudes and academic performance" to have proper performance appraisal systems in the organization, and it would be advisable to have them immediately. There are many types of performance appraisal systems in the industry, and there should be considerable research that is done in order to look at an option that is most suitable for the organization, so that it can effectively change the performance management system. Performance appraisals can increase work related attitudes, decrease job stress and increase the performance of the employees. It can also ensure that the management is held responsible for any issues that can potentially arise, and can lead to better integration (Su& Baird, 2017). This would thus, have significant benefits to the organization, and can help in ensuring that the organization is able to succeed.

Another aspect that should be considered is consistency and having a proper performance management policy. In ‘No Name' Aircraft, the consistency of the company is questionable, since the decisions that are made in the headquarters, which can significantly affect most of the subsidiaries, are made without considering the subsidiaries. This would lead to a lot of waste for the company. In "Implementing high performance HR practices in Asia: HR practice consistency, employee roles, and performance", the authors, Chen, Uen& Chen, (2016), talk about how important it is to have policies in place that are able to ensure that there be consistency, which is backed by performance management policies. This will help in reducing waste for the company, and would also mean that they might not have to do the same task, or manufacture the same component, over and over. The paper looks at hoe consistency can help Human Resources, the employees and the shareholders in the company as well (Chen, Uen, & Chen, 2016)

Training and Development

One of the most important aspects of training and development would be the fact that the company refers all of the staff to online resources. According to Bell, Tannenbaum, Ford, Noe &Kraiger, (2017), in their paper titled, "100 years of training and development research: What we know and where we should go", every employee should have a different method of training, and one that is dependent on the work that they do. Thus, the training that every employee receives should be in line with what they are working with and their position in the company as well (Bell, Tannenbaum, Ford, Noe &Kraiger, 2017).

It is also essential to develop employee feedback, and to have forms that help employees in look at the importance of training, and provide their feedback (Cloutier, Felusiak, Hill, Pemberton-Jones, 2015). It helps in employee retention, so that the organization can have policies in place to ensure that employees are safe, and provided with training, which can also improve their performance.
It is also important to make sure that there are management development programs and career development programs so that employees are able to understand the importance of the programs (Gerasimov&Gerasimov, 2015). It would also help them in looking at future career prospects, which would increase performance and retention as well.

Recommendations and Conclusion

Thus, it can be seen that there are significant issues when it comes to dealing with the issues that the company has, there are many solutions. When looking at issues related to culture, where the main problem is that of communication, it is essential that the company be able to impress the importance of communication to the employees. This can be done through various activities, and team outings. Another important issue would be the lack of integration between the teams. This is also an issue that would need to be addressed properly. This can be done by reshuffling the teams according to the need, and ensuring that the teams are able to communicate effectively in the first place. It is advised that an external agent be brought in to conduct workshops on the importance of communication and teamwork. Employees who are not able to work effectively, or communicate effectively should be provided their notice or given warnings, so that the employees know that they are expected to take the workshops and activities seriously (Eisend, Evanschitzky& Gilliland, 2016). Inter-department or inter-team meetings and activities, such as picnics, can also be arranged in order to look at the positive effect that it could have on the organization.

When it comes to dealing with diversity, the main issue would be that of the seniority. It should thus, be impressed upon all employees that the age of the employees do not matter in the company, but the amount of dedication and effort that they are able to have is something that will be considered. There should be strict anti-discrimination policies, and any employee that has been found to be violating the policies should be removed from the company. While this might seem to be a drastic move, it might be the only solution to the problem of the senior employees refusing to work with the junior employees in the organization. The issue of employees with disabilities in the company would have to be addressed as well. This could have legal repercussions, and it should be made known to the manager that in case of any legal repercussions to the company, the manager would be personally responsible for the issue. It is also essential that the HR department be tasked with coming up with strict polices, so that the employees are able to understand the importance of having anti-discrimination polices in place, and are able to understand the serious repercussions to discriminatory practices in the organisation.

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It is also essential that the organization have performance appraisals in place. There are many types of performance appraisals, and many of them have been found to have significant benefits for the organization. This can significantly impact the way that employees view the company, and the way that the organization operates. It would also be advisable that all decisions be made in the headquarters after consulting the management at the subsidiaries, so that any issues are resolved as soon as possible.

In terms of training and development, it is essential that the company be able to provide feedback forms to all of the employees who work in the organization. This might help the employees in their training. It is also essential to provide training to new employees, so that they are able to effectively integrate into the workplace, so that the employees are able to adapt to the organization.

The findings have been significant in the improvement of the organization, and are essential for the success. There are some issues that are related to importance of management that are important to the organization, but are out of the scope of the essay.

 

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