Managing Global Operations: Issues And Recommendations – Franco Airlines Case Study

Background of Franco Airlines

Discuss about the Analysis of Case Study Based on HRM for Franco Airlines.

Franco Airlines is an organization that has its base in Australia and the operations of the company are present outside the country in areas like, Singapore, China and Vietnam. The company has manufactured aircrafts that are sold to 50 countries in the world. The company has subsidiaries in China, Vietnam and Singapore. The different parts of aircrafts that are used by Franco Airlines are manufactured in China, Vietnam and Singapore. The aircraft are totally assembled in Singapore. The communication levels between the home country of the company and the subsidiaries is important for the proper functioning of the airlines. This will ensure that the teams in all the area are working well and the company is able to produce efficient services to the customers (Brewster 2017).

The report is mainly based on the ways by which the company tries to manage the issues that are faced in the operations in different countries. The coordination between different teams is important for the proper operations of the company and high satisfaction levels of the customers. 

The CEO of the company Adam O’Meara is concerned about the different issues that are being faced by Franco Airlines in the countries where it has the operations. The company and the management is facing issues in the communication between the integrated teams. The negative culture that has been developed within the organizational premises is an important issue that is being currently faced by the company. The staff is also providing high levels of resistance to the changes that can be implemented within the organizational processes. The culture that is followed within the employees in the organization is negative in nature (Brewster, Mayrhofer and Morley 2016). This provides high amounts of resistance to the changes that are planned to be implemented in the organizational processes. The organizational culture is present in the headquarters and the subsidiaries of the company as well. The communication system between the different parts of the company is also highly affected by the negative culture. The other major issue that is faced by the company is faced by the company is based on the lack of quality in the services and the products that are provided by Franco Airlines. The relations of the employees present in different branches of the company is affected in a negative manner by the lack of communication. The organization requires many modifications in the policies that are formed as the customers are also providing negative reviews about the quality of services (Reiche et al. 2016). The stakeholders of the company have sent letters to the management regarding the issues that are being faced by them regarding quality. The stakeholders have threatened to withdraw their support if the quality of services are not improved immediately. The teams in the organization work according to the specifications and the responsibilities that are provided to them. The communication at all the levels is compromised as the staff members are provided with the appropriate instructions which can be followed by them. The line managers are also not effective in the ways by which they communicate with the members in the organization (Konrad, Yang and Maurer 2016).

Management challenges faced by Franco Airlines

Management of diversity is another major issue that is faced by the management of the company. The company has the same policy for people belonging to different groups and backgrounds. The employees in the headquarters are intolerant at working with people who belong to different age groups. The senior staff are also not supportive towards the new employees who join the organization. The people with disabilities are not recruited in China in a frequent manner. The managers ignore the applications for jobs that are placed by individuals belonging to different groups and diverse backgrounds. The human resource department of the company has not been able to set up particular practices that can help the different employees to understand each other in an effective manner (Brewster et al. 2016). The human resources department of the company does not take into consideration the importance of the perceptions that the employees have about each other. The organizational discrimination needs to be reduced so that the employees can work together in a peaceful manner. The company thereby needs to realise that the management of diversity is important for the successful operations of a global organization. The issues are also being faced regarding proper management of the performance of the employees. The international management of performance is related to the appraisals that are provided by the company on an international basis. The reviews of the performance are conducted by the Human resource managers. The company was facing pressure in its Australian operations due to the high costs and demands (Albrecht et al. 2015). The decisions that are made in the headquarters affect the subsidiaries of the company as well. The HR department however does not have any clear measures that can help in the management of performance. The training development based issues in the organization have also affected the ways by which the employees perform in the different job positions. All the aspects of the activities of the company are thereby based on the training that is provided to the employees. The training that is given to the expatriates is also not planned in a proper way. The feedback systems are also lacking in the organization which can help in the measurement of effectiveness of training (Purce 2014). The employees do not receive training which can help them in adapting to the surroundings which they were about to enter or had entered. The company does not have any systematic programs that are based on the management and the planning of workforce in the organization. the employees are therefore unable to plan their careers and the prospects that are available in the organizational environment. The lack of professional development of the employees is also a result of the lack of proper training. The development of the employees and the organization as a whole is affected in a negative manner (Jackson, Schuler and Jiang 2014). 

Role of HR management in Franco Airlines

The Human resource management department of the company is mainly responsible for solving the issues that are faced by the employees and Franco Airlines. The human resource management team needs to develop a positive culture in the organization which can be followed for the purpose of achieving the different goals. The communication between teams is important for interacting with each other in an effective manner. The high levels of communication can thereby lead to acceptance of positive culture by the employees in the headquarters and the subsidiaries of the company that are present in different countries. The HR department can operate effectively in the process of decreasing the resistance towards changes that can be implemented within organizational processes (Jiang et al. 2017). The communication levels can be improved by increasing the communication between the management and the stakeholders. The management will thereby be able to satisfy the stakeholders with the help of different measures that are taken based on communication. The diversity related issues of the company can also be managed in an effective manner with the help of the HR department. The HR manager can train the employees in such a manner which will reduce the resistance that is provided to the work process of the employees belonging to different backgrounds and groups. The number of supervisors that are provided to each of the teams can be increased which will be helpful in improving the process by which the instructions are provided to the employees for different work processes and functions within the organizations (Stone et al. 2015). The teams need to operate in such a manner which can help in increasing the communication between them. The members of different teams thereby need to work beyond the specifications and responsibilities that are provided to them. This will help in increasing the communication that the teams have within themselves on a regular basis. The HR department needs to design policies that can be helpful in providing ways to the employees by which they are able to understand each other in an effective manner. The interactions will increase among the diverse group of people which will lead to high coordination among the teams and the diverse employees as well. The management of international performance is another major duty that needs to be fulfilled by the HR department of the company. The HR managers need to design proper methods which can help them in the appraisal of performance and the management in all international operations of the company (Conway et al. 2016). The formation of feedback systems is also important for the employees so that they are able to provide their opinions regarding the decisions that are taken in the headquarters and the subsidiaries of the global organization. The HR department can formulate policies that can determine that can ensure that discrimination is not present at any levels of the organizational operations as a whole. The HR department thereby plays an important role in the management of various issues that are described in the case (Shen 2016). 

The actions that might be undertaken by Franco Airlines Company are dependent on the discrepancies that are faced by the organization while undertaking the progression of the business. This section of the report aims at recognizing the recommended activities that might be undertaken by the company to bring in relative improvements.

• Lack of proper communication mediums has affected the functioning of the workforce due to the lower integration among its internal and external units. It has affected the performance and the activities that are planned by the business. On the other hand, the lack of proper communication has resulted to the resistances that are created by the workforce while the organization plans to undertake changes. Therefore, the organization must take steps to develop proper communication mediums through which the management of the business and the workforce can remain in touch. On the other hand, the business must organize session that will aim at interacting with the employees and thereby make them aware of the changes that the organization in currently planning to undertake. The proposed activities will be helping the organization’s management to develop a positive culture through the involvement of the workforce in the processes by changes in the communication methods.
• Diversity management is again an important consideration that must be undertaken by the organization to undertake the smooth performance of the workforce in the markets. The headquarters of the organization are intolerant towards working with employees from different generations. Senior staffs are not permitted in this section of the organization, which has caused havoc productivity differences. Senior members are not likely to undertake steps to bring forth innovation in the headquarters as per the organization. However, the skills and the experience of the senior employees might be helping the organization to undertake steps to bring in changes in the systems and the activities that are planned by the business. Therefore, the concerned organization must take steps to involve the senior members in the processes and thereby formulate policies to respect the diversity in the workforce. The diversity in the workforce will be helping the organization to bring in improvements in the activities and thereby undertake innovations as well. On the other hand, the company has restricted the recruitment of the disabled candidates, which has greatly affected the performance of the organization on ethical standpoints. Therefore, the organization must take steps to promote the diversity in the workforce and thereby bring in improvements in the activities.
• Issues in the performance and quality management of the organization have affected the situation of the same while operating in the international markets. Therefore, the organization must take steps to monitor over the activities that are undertaken by the workforce, which is required to be aligned with the interests of the business. Undertaking regular sessions with the employees and thereby assessing the outcome of the activities will be helping the organization to calculate the returns at macro levels.
• The workforce of the organization faces issues while undertaking their respective job roles due to the lack of proper training and development programs. The organization is not focused on delivering proper training to the employees of the same. It has affected the smooth processing of the activities that are undertaken by the workforce as per the objectives of the business. The organization thereby must take steps to organize training programs for the expatriates and the other employees to empower and involve them in the processes of the changes that are planned by the management for the better performance of the business. 

References

Albrecht, S.L., Bakker, A.B., Gruman, J.A., Macey, W.H. and Saks, A.M., 2015. Employee engagement, human resource management practices and competitive advantage: An integrated approach. Journal of Organizational Effectiveness: People and Performance, 2(1), pp.7-35.

Brewster, C., 2017. The integration of human resource management and corporate strategy. In Policy and practice in European human resource management (pp. 22-35). Routledge.

Brewster, C., Houldsworth, E., Sparrow, P. and Vernon, G., 2016. International human resource management. Kogan Page Publishers.

Brewster, C., Mayrhofer, W. and Morley, M. eds., 2016. New challenges for European resource management. Springer.

Conway, E., Fu, N., Monks, K., Alfes, K. and Bailey, C., 2016. Demands or resources? The relationship between HR practices, employee engagement, and emotional exhaustion within a hybrid model of employment relations. Human Resource Management, 55(5), pp.901-917.

Jackson, S.E., Schuler, R.S. and Jiang, K., 2014. An aspirational framework for strategic human resource management. The Academy of Management Annals, 8(1), pp.1-56.

Jiang, K., Hu, J., Liu, S. and Lepak, D.P., 2017. Understanding employees’ perceptions of human resource practices: Effects of demographic dissimilarity to managers and coworkers. Human Resource Management, 56(1), pp.69-91.

Konrad, A.M., Yang, Y. and Maurer, C.C., 2016. Antecedents and outcomes of diversity and equality management systems: An integrated institutional agency and strategic human resource management approach. Human Resource Management, 55(1), pp.83-107.

Purce, J., 2014. The impact of corporate strategy on human resource management. New Perspectives on Human Resource Management (Routledge Revivals), 67.

Reiche, B.S., Stahl, G.K., Mendenhall, M.E. and Oddou, G.R. eds., 2016. Readings and cases in international human resource management. Taylor & Francis.

Shen, J., 2016. Principles and applications of multilevel modeling in human resource management research. Human Resource Management, 55(6), pp.951-965.

Stone, D.L., Deadrick, D.L., Lukaszewski, K.M. and Johnson, R., 2015. The influence of technology on the future of human resource management. Human Resource Management Review, 25(2), pp.216-231.

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