Case Study Report

Assessment 3: Case Study Report

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TOC o “1-3” h z u Case Study Report PAGEREF _Toc64284821 h 3Introduction and Background of the Case PAGEREF _Toc64284822 h 3HRM Issues in the Case Study PAGEREF _Toc64284823 h 3Performance management challenges as a result of globalization PAGEREF _Toc64284824 h 4Challenge of professional training and development PAGEREF _Toc64284825 h 4Challenge to embrace culture and integration PAGEREF _Toc64284826 h 5Challenge of diversity management PAGEREF _Toc64284827 h 6The HRM Response to Prevent these Issues from Reoccurring PAGEREF _Toc64284828 h 7Recommendations and Proposed Implementations to Eliminate the Issues PAGEREF _Toc64284829 h 10Conclusion PAGEREF _Toc64284830 h 11References PAGEREF _Toc64284831 h 12

Case Study ReportIntroduction and Background of the Case

Globalization has been evolving continuously over the past years. This has enabled corporations to reach consumers and investors worldwide in a faster, deeper, and cheaper way than ever before. The ever-increasing interconnection and incorporation of people, culture, and companies imply that global corporations face constant challenges for competitive excellence (Cascio & Boudreau, 2016). In this case study, the emphasis is on identification of issues relevant to international human resource management, looking at how to address the said issues in a HRM environment, and presenting a plan to the organization as a way forward of ensuring these issues are fully eliminated for purposes of future business cooperation. No Name is a company that operates in the aircraft industry. The company is faced with the challenge of inadequate performance management, lack of professional training g and development, integration of culture among employees, and lack of diversity respect. The challenges are threatening the company’s profits. The possibility to maximize investors’ return and increase share price is at risk; thus, the CEO has genuine concerns regarding the possibility of a firm takeover if the current position of the company is not improved with urgency.

HRM Issues in the Case StudyLike every other major corporation, No Name is battling issues that ultimately touch on the human resource management segment of the business. The direct effect is that the company is facing one of its lowest performance ever recorded. In line with this, this section will identify the issues, explain them, and contextualize ways of addressing each one to help No Name recover from its current position.

Performance management challenges as a result of globalizationEmployees are hired for performance, and they are expected to excel in their work. Performance is affected by contextual and task performance factors. Task factors include the core activities of a corporation, for instance, automobile manufacturing, airplane manufacturing, and software development. On the other hand, contextual factors represent the environment of working (Haak, Festing, & Darwish 2017). Performance management is the evaluation and continuous improvement of employee’s performance. With proper execution of performance management, it creates an explicit link between employee performance and the firm’s strategic goals. The management of host country nationals makes performance management challenges. There are no reviews conducted at the subsidiary by the respective human resource managers. The performance reviews are only conducted in Australia at the headquarters of No Name, thus ignoring all of the international branches in China, Singapore, and Vietnam where the company has employees. It is important to note that a majority of the company’s employees operate out of Singapore and a lot of assembling of aircrafts is also done there. Performance management is also challenging due to the fact that no formal appraisal processes are conducted for expatriates. Furthermore, at the headquarters, they do not consider the economic factors of the subsidiary, and they are under pressure to perform due to the high cost and expectations from Australia. The company lacks proper management performance, resulting in inflicting performance outcomes between subsidiaries and the headquarters.

Challenge of professional training and developmentNo Name is battling a serious challenge in terms of training and professionally developing their employee to international standards. Human resource departments have the responsibility to transform how businesses are done through training and developing their employees. With rapid globalization, the human resource department should exploit the opportunities through training their workforce to implement the changes rapidly. The new global world has enlarged the talent pool for the excellent and marginal workforce; hence when organizations source workforce globally, they have a competitive advantage. The global workforce affects employee performance, profitability, and customer satisfaction levels. The human resource department can use data analytics and technology in building a global human resource information system.

No Name corporation has a diverse workforce from Australia, China, and Singapore. The human resource department offers the same training to the workforce without considering employee background environment since it assumes they have equal needs, which is contrary given human beings are unique. Also, employees are not provided with avenues to give feedback on the impact of expatriate training. Some of the employees complain about the lack of training to allow integration with others despite coming from different backgrounds and cultures. The company lacks systematic workforce planning and administration development programs. The purpose of the administration programs is to identify and enroll potential administrators and develop their knowledge and skills to meet firms’ goals.Moreover, employees are unaware of their career outlook given that there is no utilization of career development plans. Also, the senior management does not train the junior employees to avoid being overtaken in promotion by them, resulting in key employees being poached by other companies. The company lacks proper training and development programs.

Challenge to embrace culture and integrationThe culture of organizations includes both formal and informal systems. The formal is the official communication from the management, the internal policies and code of conducts, workers recruiting process, training programs, and performance and goal setting (David, Valas, & Raghunathan, 2018). Workers should consider belief and work according to firms’ cultural systems. The informal culture includes standards of daily behavior, practices that help employees understand strong identity and values, myths about the firm, daily language behavior used by employees. These two elements are a challenge to the organization culture and integration at No Name because the company has not emphasized on one positive culture but has rather allowed several negative cultures to run concurrently.

The culture developed at No Name corporation headquarters is negative given that there is a communication breakdown between junior employees and management. This kind of communication has been replicated between headquarters and subsidiaries. The major challenge facing the firm is quality. The firm has established a negative reputation regarding quality, especially in China and Vietnam. Given that aircraft require modification after selling to customers, they complain about the quality of No Name products. The quality issue has resulted in customers sending a warning to the company to withhold payments unless the quality is improved within the next six months.

Furthermore, the supervisors are given a different number of teams to lead rather than giving equal roles to ensure equity. This inequality has barred integration across the teams. Teams are complaining about other teams making their working environment severe. Teams work in their area of specifications only; thus, working relationships across the team are suffering. Employees are complaining about receiving minimal instructions since the communication is compromised both laterally and horizontally. The company lacks programs to develop culture and integration.

Challenge of diversity management

Diversity management is related to the degree of diversity within the workforce (Koellen, 2019). A corporation that is not diverse is largely based on the sex of employees and skin color. A diverse workforce does not segregate based on race and gender; rather, it is open to any category of people. Human resource department the responsibility of establishing a diverse workforce through developing programs that encourage diversity during recruitment and running of the business.

Despite No Name outlying in their policy that all employees should respect race, age, ethnicity, and gender, there are diversity issues among the workforce. At the headquarters, employees are segregated based on their age. The senior staff has a bad relationship working the young employees. The firm also does not recruit people with disabilities in China. People with disability applications are ignored even when their qualifications surpass that of other candidates. Furthermore, the human resource department does not have clear customs to enable employees to understand each other. It does not consider the interactions of employees and their perception towards one another despite being a major determinant of diversity among the workforce. A diverse corporation should appreciate a different culture and ensure there is no discrimination for employees to work in harmony. No Name faces a challenge in managing diversity and should take appropriate actions since it can create a competitive advantage and impact other departments positively in the organization.

The HRM Response to Prevent these Issues from ReoccurringHuman beings are complex, and managing them is a challenging task. Global corporations make it more complex for human resources to manage the international workforce. The human resource has the responsibility of identifying these challenges and overcome to allow the firm to work towards its goals (Wilkinson & Wood, 2017). Human resource should consider these factors o ensure it succeed in overcoming the challenges. First, the attraction of top employees and talent is important. Employing the top talents increases the performance of the workforce. Given the added advantage that it can source workforce from different countries where the subsidiary is located, the firm should source quality employees. Hired employees should demonstrate they enjoy learning new things, ready to change, and ready to take challenges (Tregaskis & Almond, 2019). With culture keeping changing, quality employees will easily adapt to changes making it easier for the human resource department to focus on the firm’s performance. Quality employees should also be retained to cultivate organizational culture to new employees. The workforce will easily integrate and enable the company to achieve its development objectives.

Secondly, No Name should work towards incorporating change. Change influences firms working environment, customers, and competitors (Kirrane, 2017). The unknown gives rise to feelings of anxiety and uncertainty, whether is structural or technological. The human resource department should embrace acceptance of change among employees, and the workforce should not hinder changes like hiring a diverse workforce. Human resource embraces change among employees through constantly upskilling to meet the changing need of the firm. Changes should be communicated frequently and transparently to equip workers with skills they will need to deal with change. Global firms should have a common communication department to ensure subsidiary firms receive information about the change on time. This prevents the problem of subsidiary firms receiving inadequate information. With the human resource department embracing the workforce find it easier to adapt to changes such as new culture and new diverse workforce.

The human resource department should foster a culture of continuous learning. In modern days workers leave employment due to a lack of development opportunities. Through training, the workforce remains stimulated and loyal to the company (Gutierrez, Barrales & Kaynak, 2018). To overcome globalization challenges, a firm should engage employees in continuous training on content to the job, diversity, and inclusivity. The human resource can conduct training through eLearning courses given that a company is global. eLearning will enable workers to be trained from different locations and at convenient times. Through continuous learning, the problem of inadequate professional training and development is solved.

The human resource department should manage diversity while putting consideration to the locals. Globalization affects a firm’s way of learning the business through increasing customer base, workers’ ideas, perspectives, and experiences. Human resources should adhere to local policies and procedures while establishing a comfortable workplace. Orders should not come from the headquarters without considering the culture of a host country. For instance, No Name should have views cultural practices of china, and Vietnam where their subsidiaries are located when developing its culture. This enables integration among employees to be easier given that they understand the culture of their colleagues, which they must respect.

The HRM sector at No Name should look after the health and safety of employees in accordance with the international standards of operations. The health and safety standards they pose a great challenge to human resource. Health at the workplace is more than employee hygiene and safety. The psychological health of employees worsens due to the high demand for results from the management. High levels of stress and pressure cannot be sustained by the workforce. The human resource department should delegate an equal level of tasks to supervisors and not burden o. There should be an open policy to raise issues concerning anxiety, unfair anticipation, and working hours. Employees who are stressed will be reluctant to integrate, low performance, reluctant to training, and discriminate against their colleagues at work. A healthy working environment workforce will easily integrate, perform well, and work with diverse employees (Barrena, López, & Romero, 2017).

The HRM department should create a quality environment and experience for the worker. Employees have a quality experience when they are satisfied with their job, colleagues, and working environment (Plaskoff, 2017). The human resource should create a working environment that is above competitors to avoid poaching of their workforce by the opponents. Employees with good working experience will easily integrate with their colleagues and avoid discrimination of the minority workforce. An international firm should ensure workers at subsidiaries have the quality experience to ensure they deliver quality outcomes to their customers. When a single firm delivers inequality, the firm is affected globally; thus, multinational firms must consider employees’ experience more broadly.

Recommendations and Proposed Implementations to Eliminate the IssuesGlobalizations provide firms with the opportunity to grow given that there are new markets, the pool of new quality employees, and the opportunity to invest. With globalization, firms should have better management to succeed since many challenges are associated when operating globally. No Name aircraft is a global company, and various limitations of operating internationally are putting the firm profit at risk. To maximize shareholders’ return and increase the share price, he should implement the following recommendations.

It is important that No Name introduces a policy on conducting regular performance appraisals. They should be provided to the parent company and all subsidiaries. They should not be discriminated against but filled by both expatriate and junior employees. The appraisal will ensure workers perform better since they will be keen on the assigned roles. Challenges such as overproduction, miscommunication, and discrimination will be limited. The performance appraisal should contain disciplinary actions against employees poorly performing their work.

As a point of reinforcement, the company should provide training to employees and promote workers doing commendable jobs. The training should educate workers on the firms’ culture and goals and visions of the firm. The training should be at a convenient location and time. To ensure all employees access the training, it should be provided online. The department should be provided with training which they deserve, and overall training should be discouraged. For instance, marketing should be equipped with marketing skills rather than production skills.

The firm should also perform a quality audit on the employees. Employees’ education qualifications should be tested and experiences. This audit gives information on unqualified workforce working in the company, for instance, those services of low quality in china. The firm should invest production of parts where they have a competitive advantage over rivals. This will lower production costs, which will increase the profit and increase share CEOs’ goal. The company should dismiss unqualified employees. They include employees discriminating against employees’ others and workers offering poor services. This will allow the firm to work with a workforce that is inclusive and diverse. With such a workforce, the CEO will achieve his goal, and the company overcomes challenges resulting from globalization.

ConclusionNo Name is faced with the challenge of inadequate performance management, lack of professional training and development, integration of culture among employees, and lack of diversity respect, which are threatening the company’s profits. The above suggestions are meant to remedy the situation through the HRM department. It is expected that these suggestions will help steer the company in a positive direction as it fosters a new culture of acceptable international HRM practices.

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