Background of No Name Aircraft
Using the information provided in the case study as an example, summarise the critical theories and concepts of Organisational HRM. You need to analysis and critically evaluate the literature.
Heavy changes have been shaped by the knowledge economy and digital age, in the corporate world. These changes are making organizations to face a tough competition in uncertainty, transforming and complex environment, and dynamics (Sanz-Valle & Jimenez-Jimenez 2008). In this competition, to achieve competitive advantage and sometimes even for the survival, organizations completely depend on their ability to respond and adapt the flexibility, environment, and capability of new innovative products and ideas (Harrington & Ottenbacher 2011). Flexibility of human resource management also impacts the behaviour of innovative work as these are targeted for employee skills, ability and opportunity enhancement, and motivation (Sheehan et al. 2016). An organization that follows an innovative and creative strategy should have employees who carry a kind of innovative and entrepreneurial behaviour (Javed et al. 2017).
Main motive of this paper is to discuss the literature view of different aspects of human resources based on the given case study of “No Name” Aircraft. This discussion also includes a thorough discussion of culture, diversity management, international performance management, and training and development activities of HRM. All these elements of the HRM are most effective for the enhancement of employee performance which ultimately helps the organization to achieve its goals.
“No Name” Aircraft is an Aircraft manufacturing company, basically operating out of Australia has its subsidiaries in three different countries: China, Vietnam, and Singapore. Company build and sell aircrafts to 50 countries around the world. Maximum designing engineers of the company operate out of Singapore. Company manufacture various parts in China and Vietnam. These parts then assembled in Singapore and Australia. “O’Meara” CEO of No Name Aircraft has concerned about company’s profit. He is worried that the company takeover is possible. He get dome warnings letters from the shareholder claiming for the better results otherwise they would withdraw their part of share or will overtake the company charge from the current CEO, O’Meara. Also company is struggling for the performance enhancement of the employees to get the best out of them to increase the productivity and efficiency.
Management of an organization is the key element of its success. O’Meara has observed that the management of his company is not working efficiently. His management employees are not taking their responsibilities seriously. O’Meara is concerned about the shareholder’s profit. He wants to give a high profit to the shareholders of his company. Hi wants to increase the value of each share of his company. He thinks, increasing the value of share is the only way to showcase the success of his company and takeover of the company can be prevented. In this manner O’Meara discussed different aspects of HRM which can be improved in order to make good profit for the organization.
Human Resource Management and Employee Performance
Organizational management is the key element of any organization in its success. This management make innovative strategies for the company. In this process the strategic planning analyses various risk factors of the workplace environment and provides the solution for these risks. In this way risks can be mitigates and can increase the probability of success for the organization (Fooladvand, Yarmohammadian & Shahtalebi 2015).
Workforce diversity is not a new phenomenon for the corporate world. In organizations employees are from different cultures, ethnicity, religion, race, age, gender, sexual orientation, physical abilities etc. (Chiiappetta Jabbour, Olieveira & Battistelle 2011) Historically, in the past monolithic organizations opposed the workforce diversity or diversity in management. These organizations are characterised by their leaders who force their culture, following in the organization, upon their workers psychologically (Edewor & Aluko 2007).
However, with the increasing need of organizations to develop their business and cooperation of their boundaries beyond the nations, and globalization, diversity management has become imperative to solicit a new more dynamic model for their management system. In diversity management, managers have to face two major challenges: integrating individuals into a whole and adapting the external environment effectively to survive in the competition.
Diversity management of No Name Aircraft is limited to a very simple policy of the managements which defines that everyone in organization must be respectful to the race, age, gender, ethnicity, physical abilities, sexual orientation, religious beliefs and other philosophies of individuals. In the company there are issues relate to embracing the values of working in diverse management. One of the incidents related to breach of values of diversity management is about the intolerance of working with employees of different generation. In this incident senior employees are intolerant of working with trainees or new employees. Another incident is about partiality with physically disabled applicants by the mangers. Managers are not recruiting or ignoring the applicants with physical disability in chine for the past few years. Managers are doing this even after knowing that these physically disabled candidates have skills beyond the other candidates. Management diversity is more of response policy for adapting the cultural and social diversity in organizations.
The combination of diversity management trends and increasing globalization of business has made the management of different culture to the priority list of corporate leaders’ agenda. Key advantage of diverse management and ignorance of its pitfalls is creating an organization which has members of different cultural backgrounds who contribute and achieve their efficient potential. To achieve this efficient potential, corporate leaders may face the challenges of balancing the goals of organization and retaining the different culture if individuals on the others (Edewor & Aluko 2007). In this way No Name Aircraft failed to maintain this balance and facing low profitability issues. This makes doubts on company’s future security as well as the profit of shareholders.
Culture at No Name Aircraft
Culture is the manifestation of accrued experiences of humans, how they interact with others and the environment (Jackson 2018). It is defined as the combination of intellectual, spiritual, emotional, technical, and organizational responses people make over a time period (Auwers & Schramme 2014). In No Name Aircraft this culture is not enough good. Home county teams (Australian) are not working efficient. These teams have a communication breakdown between across teams, integrated teams, and management of the company. They have adopted a very negative culture and main mantra of their culture is “near enough is good enough”. This thinking makes them to produce a poor efficiency. Moreover, management staff is giving an impression like they will resist any attempt for the change in its existing culture. This culture had been extended to the main communication channel between headquarter and the subsidiaries. In this order a number of stakeholders have sent a letter of warning to O’Meara stating that unless the quality is improved in the coming six months, they will withdraw their payments. Some of them are quoting different percentages- some saying they will withdraw 100% while others are quoting for 50%.
Organizational culture is the major variable which influences the performance of an organization. In service as well as manufacturing organizations computation of the performance of organization is much critical (Ahmed & Shafiq 2014). In order to measure the performance of an organization, Balance Scorecard is one of the methods used by the strategic management of the organization (Fooladvand, Yarmohammadian & Shahtalebi 2015).
Performance management is a process practiced by the organizations around the world in order to improve the performance of their employees. In other words performance management can be defined as a management used organizations to enhance the efficiency and effectiveness of their employees (Ratnawat & Jha 2013). It can be compared to the financial management which is a continuous process of managing the finance of organization. This international performance management of No Name Aircraft has many issues. In the home county units of No Name Aircraft these performance appraisals are conducted but in other subsidiaries, there is a lack of this performance appraisal. They don’t perform any formal performance appraisal. Case study states that one manager at No Name Aircraft Australia was heard to say that they are under pressure in Australia due to higher cost and high expectations. In this context as per the case study headquarter will issue a decision and will make an order for Singapore demanding to produce a certain quota of parts in order to find out the surplus of same parts in Australia. Implementation of this decision results in the conflicting performance outcomes. Since there are no fundamental policy which measures the performance management, O’Meara told the HR manger that it is the time we should measure the performance in order to manage it. You cannot manage what you don’t measure (Lavigna 2010).
Diversity Management
In this order O’Meara said that someone needs to go to China, Singapore, and Vietnam, just to make sure that company has the consistency in performance appraisal management of these subsidiaries. For this company needs to consider the culture and local practices followed in these units.
An effective management of performance appraisal should comprise of the planning process, coaching process for performance enhancement, review process, and performance appraisal process (Salojarvi & Saarenketo 2013). And effectiveness of the performance management must be ensured at the times of its designing, implementation and maintenance phases. It is emphasized that the key to get maximum efficiency of performance management is just to remain flexible and open to different possibilities which a performance management system can have in an organization (Crain 2009).
Employee efforts determine the survival and success of an organization. Training and development is one way that enhances the efficiency of employees and aligns their efforts with the ultimate goal or aim of the organization. Employee motivation and managed performance can improve or enhance the performance and productivity of employees (Nicholas & Malcolm 2016). In No Name Aircraft, training for the employees leaving Australia to work in Singapore, China or Vietnam is very limited in fact it is limited to only a half day. Also this training does not include any feedback from the employees. This lack of proper training was the reason one employee of the company, mechanical engineer Alice Morgan, ha commented that there is no training available for her to integrate into the new surrounding of Singapore. This made her to take a long time to get used to with the new surroundings and working environment over there. Both the training and development plans seek the required changes in the skills, knowledge and attitude of the employees (Pynes 2009). Training and development is among the most essential practices of human resource management. These programmes may be focused on the improvement of individual’s self-awareness level, motivation, and competency in order to perform their respective task in an effective way (Boadu et al. 2014).
Job satisfaction is very important for employees and this can come from the comfort feeling of the organizational environment, job proficiency, and sometimes from the knowledge employees get through these programmes. This job satisfaction can motivate employees to work hard and get promoted (Rowland, Hall & Altarawneh 2017). In the given case study, example of Alice Morgan is an example of such job dissatisfaction. This job dissatisfaction can lead employees to get frustrated and decreases the working efficiency of employees as in Alice’s case. On one hand training and development improve the profitability, job skills and knowledge at all levels of the organization. On the other hand these programmes benefit the individuals helping them in effective problem solving and making better decisions, assisting them in encouraging and achieving the self-confidence and self-development (Salah 2016).
International Performance Management
Case study suggests that there is a lack of systematic employee planning and management development programmes at No Name Aircraft. Therefore, there is a need of development management plan within the organization In order to internally identify and recruit manager having potential to manage these training and development programmes. But senior management has a fear of being sidelined for the promotion, by developing the junior employees. This fear of senior management is preventing such programmes to be developed in the organization.
However, the case study will help the HR management of the company to identify the challenging effects of the training and development on the organizational performance. This assessment of company management through such case studies will also help the management team in planning for the new and innovative development and implementation of these programmes which will increase the performance and productivity of the company (Salah 2016).
Case study of No Name Aircraft describes the management conditions of company. It states that the management of the company is lacking in the efficiency and effectiveness for the company management. Is also defines some of the problems, company and its CEO O’Meara are facing since a long time. Now company is at the danger point of taking over by other directors. Problem states that the shareholders are not happy with the management of company and they want some effective changes in the management of company. In this order it is highly recommended to the company that it is the time to change its management strategies for the future planning of the company. In this order company should focus on the management strategies. For this company should analyse the existing management system of the company thoroughly. This will help the company to identify the root causes of the mismanagement and would help them in planning some innovative or effective strategies for the future management of the company. Once management of the company will improved it will overcome most of the problems associated with the culture, international performance management, training and development, and management diversity. O’Meara, CEO of the company should think about the management at the top most priority. Other changes in strategic planning for the future of company can include the motivation and enhancement of effectiveness as well as the efficiency of the employee working for the company. Company should follow the same kind of management so that employees can feel comfortable while moving to the other units.
Training and Development
Conclusion
Given case study of No Name Aircraft reflects the need of an effective strategic management for the company. After analysing the case study of company with the supporting literature review is concluded that company is lacking behind in terms of effective management. Management system of eh company is very poor. This is poor management of the company is resulting in reducing the company growth in fact it is leading the company in losing its credibility from the market. This decrease in credibility of the company is leading the other shareholders of the company to withdraw their share. Other issues related to the management like lack of management diversity, culture, performance management, and training and development to the employees it is concluded that at this point of time company definitely need an effective and efficient strategic management system for the organization. Report states a mismatch of the co-ordination between the three subsidiaries of the company located in China, Singapore, and Vietnam. Only this strategy of implementing a new efficient management can take company to the heights in market and help it to get its credibility back. Literature review also supports the thinking of need for the effective management. All the incidents, took place in the organization, are the results of existing poor management of the company.
References
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