You are on page 1of 12

INTERNATIONAL HUMAN

RESOURCE MANAGEMENT

ASSESSMENT 1 STUDY OF
ELITE AIRCRAFT CASE

STUDENT ID: 18803490

IBU5HRM 18803490 - Aadit Chetan Khona


Introduction (Overview of the case):

Elite Aircraft is company that builds and sells aircrafts to 50 countries around the world. All of
these countries are very demanding countries and hence they believe in getting the best quality of
products from this aircraft company. As said in the case the aircraft is assembled in Singapore
and in Australia as well. However apart from Australia there are three subsidiaries countries
namely, China, Vietnam, and Singapore. As a consultant, studies found that there is huge
problem with the Human Resource System in this Organisation and hence because of this there
are many complaints arising about the quality and delivery of the product which the companys
CEO is looking into and trying to solve all the problems as quickly as possible. Majorly the
complaint is regarding following fields of HR segments.

1. Culture of the Organisation


2. Diversity Management of the Organisation
3. International Performance Management
4. Training and Development.

Purpose: To investigate problems with Elite Aircraft HR system and to solve all the problems
and provide necessary recommendations based on certain assumptions and theories.

Scope: The scope of this case study is restricted to the field of HR and activities carried out in
Elite Aircraft company.

Limitations: The limitation of this case is that it is only based on the HR system and whereas
there can be other problems with marketing and finance management of the company. So, it
would not be possible to study in detail things about Elite Aircraft problems.

Organisational HRM (General Overview):

The human resource management field is one that is at the center of any business. Its
significance is not about the HR office; it's about optimizing individuals' commitments in any

IBU5HRM 18803490 - Aadit Chetan Khona


association. HRM aptitude ought to be educated to all directors, as well as to individual
representatives on the grounds that, at last, the individual worker is in charge of his/her own
particular vocation, ability improvement, work relations, and nonwork encounters

Human Resource Management (HRM) is an imperative component in accomplishing an


association's prosperity and it is a method for accomplishing a focused edge. It is accepted by
numerous donors around there that actualizing a fruitful technique is reliant on to what degree
representatives add to the future accomplishment of an association.

Associations are taking progressively dissimilar structures. The key measurements of size and
structure compel the general population work. HRM is directed in an assortment of courses,
because of these requirements and furthermore due to vital choices taken to meet hierarchical
objectives. Organizations can change their structures and their kin administration frameworks for
various reasons.

Human resource management in an organisation is all about managing the main resource of the
organisation and that is employees. If employees are not in state of working properly then whole
organisation will suffer as there will be no proper outcome from this. With respect to Elite
Aircraft industry, it can be seen that HRM of this organisation has failed to satisfy their
employees and as a result of this company is suffering from losses and reputation downfall. In
order to manage this Humana Resource Personnel should try and motivate employees to work
better and motivation can be in the form of incentives, bonuses and promotions. Proper training
should be provided to those who need to improve in their field. Proper and timely review of
performance is also important as it keeps the company updated as where the employees need to
improve and what best skills are there with the employee. Further as the essay progresses it will
be seen that what are the aspects where Elite Aircraft is facing difficulties and how an HR
Personnel can solve those problems and regain its reputation in the market again.

IBU5HRM 18803490 - Aadit Chetan Khona


Culture:

It is those hidden qualities and frameworks that are hard to oversee, to change and indeed, even
be acknowledged totally.".

The aggregate current impressions, desires and sentiments of the individuals from nearby work
units. It influences the interpersonal connections inside the working environment. It is the human
condition inside which association's worker do their work.

Hierarchical culture, comprehended as the arrangement of standards of direct, work states of


mind, and the qualities and suspicions about connections that oversee conduct at the association
(Nobleman and Kreps 1999), can advance preparing achievement. It might be declared that a
solid authoritative culture is an effective device to impact representative conduct and move
forward execution (Cave Hartog and Verburg 2004).

In this sense, Kontoghiorghes (2004, p. 213) brought up that with regards to preparing the more
the workplace is helpful for superior, the more the student will trust that his or her learning
endeavors will bring about a feasible and attractive result'. Those authoritative societies that
advance representative development and improvement, cultivate steady change and support
representative activity will positively affect preparing achievement (Elangovan and Karakowsky
1999). That is, preparing exchange will be emphatically affected by the presence of a hierarchical
culture described by imagination, development, chance taking and quality (Awoniyi et al. 2002;
Kontoghiorghes 2004).

As a consultant, studies found out that at Elite aircraft company there is communication problem
between top level management and employees as a result of which they are unable to express
their interest directly to company. In other subsidiaries like China and Vietnam from where parts
are procured there and direct line communication with Australian team and they feel it is not
required to tell them what are the changes or what alteration would be further needed be the

IBU5HRM 18803490 - Aadit Chetan Khona


aircraft part that they have made. Team members of Elite aircraft are saying that there is cross
connection between different divisions such has wiring department is coming in between sub-
design team as a result of which the quality of the aircraft suffers and because of this low quality
that Elite Aircraft Company is providing, stakeholders of the company have issued a letter to the
management of the company saying that all the payments of the company would be stopped until
the quality of the aircrafts are not improved. Communication also involves problems with
language and understanding in Elite Aircrafts as people from China and Vietnam cannot
understand instructions given in English and employees and Australia cannot understand Chinese
language.

So, this is why here is huge problem going on with the Organisational culture of the Elite
Aircraft there is no proper internal and subsidiaries communication lined up within the
organisation due to which transmition of messages is not possible and each department work is
clashing with other departments work. This can be only solved if HR Personnel try and bring in
the proper aligned communication process with the organisation.

Diversity Management:

Diversity management upgrades the comprehensiveness of the authoritative culture. The impact
of diversity management on the comprehensiveness of the authoritative culture is equivalent for
both non-local Dutch and local Dutch workers.

Social trade alludes to the bond that is built up between the worker and the association (Aryee et
al., 2002; Eisenberger et al., 1990). This passionate bond can be required to end up plainly
unmistakable in the full of feeling responsibility of the worker to the association and in
hierarchical citizenship conduct (OCB). An atmosphere for diversity differing qualities
administration has likewise been related with emotional responsibility.

IBU5HRM 18803490 - Aadit Chetan Khona


Diversity qualities are additionally anticipated that would impact whether assorted qualities
incite positive or negative procedures and results.

By definition, an association holding assorted qualities as an instrumental esteem perceives


workforce diversity as an asset to be utilized toward the accomplishment of business targets.
Such a concentration is likely truant or optional in an association seeing assorted qualities just as
a terminal esteem. It is not necessarily the case that an association holding a terminal incentive
for differing qualities does not likewise esteem execution. HRM plays an important role in
diversity administration. Dagher etal. (1998) are among the first to utilize, and more specifically
define, the 'HR differing qualities administration' build. A few reviews consequently (e.g. Shenet
al.2009; Shen, D'Netto and Tang2010) additionally built up this idea. Building on these
contentions in the writing, Shen et al. (2009) conceptualized HR assorted qualities management
along two measurements: (i) to accomplish balance through agreeing to equivalent open door
related laws; and (ii) to esteem and make utilization of differing qualities through expanding
differences and representativeness of traditionally under-spoke to employees, such as racial
minorities and women, and enabling them.

As a consultant, it has been seen that Elite Aircraft has been facing diversity issues as well in
which people with disabilities are not getting through the interview process even though they
have that talent. Diversity management at Elite Aircraft already states that there should be no
difference between caste, age, sex, religion, origin and physical abilities. It is seen that at head
office seniors are not giving that scope for the sub-ordinates to excel in their career because they
fear that their promotions will be on hold if someone else is doing the right and good job as a
result of this the company as whole is suffering. HR has not set through practice where
employees can meet and talk to each other so that there will be better understanding between
them and work will be done more efficiently as there will be clear communication between the
employees

International Performance Management:

IBU5HRM 18803490 - Aadit Chetan Khona


Performance management alludes to a scope of exercises occupied with by associations to
enhance the performance of people and units, with a definitive motivation behind improving
organisational viability (DeNisi 2000). The general objective of performance management is, in
this way, to ensure that the association and the greater part of its subsystems (procedures, units
and representatives) are working together in an ideal form to accomplish the outcomes coveted
by the organisation (Castka, Bamber and Sharp 2003).

Advancement, with regards to performance management, is the collection and use of new
information and abilities after some time, including the ability to see the world through a more-
educated comprehensive point of view. Along these lines, advancement relies on upon the
capacity to realize which can be affected by various components, including representatives'
learning styles and attributes

With regards to worker engagement, exhibit that when chiefs give adequate chances to preparing
and support in regards to vocation improvement endeavors, they help cultivate representative
advancement and drive representative engagement report that representatives require more than
learning openings alonethey require motivational support and the assets to achieve their
improvement objectives.

Visual management methods utilized for operational purposes seem, by all accounts, to be more
intelligent when contrasted with their vital partners. Visual ways to deal with system show up to
some degree static as they are fundamentally utilized for top-down correspondence as opposed to
drawing in and including everybody in the vital discussion and giving technique and activities a
chance to rise up out of that discussion.

Performance appraisal should be conducted at every organisation to know about their employees
performance. As a consultant, studies show that at Elite Aircraft company HR personnel was
weak at conducting Performance appraisal. If the organisation is working in other countries as
well then it should conduct performance appraisal at those countries so that every employee get

IBU5HRM 18803490 - Aadit Chetan Khona


to know where they are lacking and accordingly training should be provided to them.
Performance of the team should be equal however in Australia one of the employee said that
there is too much of pressure on managers of head office as there is no work division to
subordinate. To gain maximum from the subsidiaries CEO of the company will have to send HR
Personnel to China, Singapore and Vietnam and work on the performance management and see if
all the employees there are performing well an equally.

Training and Development:

The status of the training and development framework incorporated the components from the
first outline that utilized for the past preparing. The key objectives and mission of the association
are to consistently enhance the training and development framework. The key part of the
preparation and advancement framework included top supervisors' noticeable responsibility to
bolster the framework. The status of the training and development relies on upon the esteem
which got by them in the past preparing program. The association needs to check the past
reaction from the representatives and set the training as indicated by it. It might be made out of
different needs of the workers which help them in the development of the association. The
training must be in exclusive expectations which help them to achieve an abnormal state.

Employer provided training and development practices encompass training exercises arranged by
an association to encourage the learning of aptitudes, learning, and mentalities that enhance the
execution of its workers (Smith 1998). Training is the consistent and the methodical
advancement among all levels of workers, information, aptitudes and mentalities which add to
their welfare and that of the organization (Planty, M.C. Rope and Efferson, 2007). Training gives
association, the workers with a gauge of expanding the association's efficiency and profitability.

Numerous specialists demonstrated the apparent connection between training and performance.
In the cutting-edge time, it is apparent by the demonstrated practices that workers' preparation
not just improves the exhibitions in one part of business, be that as it may, likewise gives the

IBU5HRM 18803490 - Aadit Chetan Khona


noticeable positive changes as engaged by Waterman et al. (1994). Preparing is further ordered
into two sections for HRD in regard to general and particular. The general training prompts the
entry level position offer to the workers, while particular preparing is held for the expanded
efficiency at the work station level. Delaney and Huselid (1996) expressed that remuneration
framework depends on fabulousness in results that outcome to worker performance.

As a consultant, studies show that training at Elite Aircraft company is not provided up to the
mark as a result of which company is facing severe issues with production and employees are
finding it difficult to adjust to new work environment. One of the employee from Australia was
sent to China to work there however no training was provided to that employee and this resulted
into slow adjustment into things. Training not only develops the employees skills for working
with the organisation but also allows employee to adjust quickly with organisation and give
positive results for the organisation. However, HR Personnel must deeply look into training
programs provided in Australia and at other subsidiaries as well. Because training should be the
main issue at manufacturing unit without proper training to the employee the organisation cannot
survive in the market.

Conclusion & Recommendations:

After studying the whole case of Elite Aircrafts, the following conclusion comes out that is the
Elite Aircraft is lagging in HR policies. The CEO of the company must take the hold and appoint
new HR manager so that he can frame certain HR policies for Head Office and few for
subsidiaries. It also means that there should be proper stream line to way communication across
the whole organisation and candidates must be selected on the merit basis and should not be
rejected on the grounds of caste, age, sex or religion. There is also a need of proper performance
check for every employee in the organisation, if any of the employee is lacking certain skills then
proper training must be provided to that employee. This will help the organisation to attain their
goals and once again gain their reputation in the market.

IBU5HRM 18803490 - Aadit Chetan Khona


Study also plough out few recommendations for Elite Aircraft which are as follows:

1. Elite Aircraft should focus on developing employer-employee relationship, so every


person working with the organisation feels secured and can openly speak about
difficulties if any.
2. Elite Aircraft must also focus on providing training to new employees as well as to the
existing employees as training is a continuous process. Even if some employee is
transferred to a new office proper training must be provided to him to understand the new
office working culture.
3. HR managers of Elite Aircraft must hire employees on the basis of their talent and not on
the basis of age, religion or country of origin
4. HR manager and general managers or seniors must motivate subordinates to work more
efficiently and allow them to become part of decision making committee as this will
bring great ideas to the organisation.
5. Proper performance reviews at all level of management and at all subsidiaries is must to
promote good talent and if any employee lacks any skills so this would also be traced in
this.

Research and Referencing:

1. Welbourne, Theresa M. (2012). HRM: The field of dreams. (Editor-in-Chief's Note)


(human resource management) (Editorial). Human Resource Management, 51(3), 309-
311.
2. Aoki, K., Delbridge, R., & Endo, T. (2014). 'Japanese human resource management' in
post-bubble Japan. The International Journal of Human Resource Management, 25(18),
2551

IBU5HRM 18803490 - Aadit Chetan Khona


3. Schaaper, J., Amann, B., Jaussaud, J., Nakamura, H., & Mizoguchi, S. (2013). Human
resource management in Asian subsidiaries: Comparison of French and Japanese
MNCs. The International Journal of Human Resource Management, 24(7), 1454-1470.
4. Kyriakidou, N. (2010). The Handbook of Human Resource Management Practice - By
Michael Armstrong. International Journal of Training & Development, 14(1), 77-79.
5. Mishra, S. (2012). Role of Thinking Style, Emotional Intelligence and Organizational
culture in Human Resource Management Practices. Social Science International, 28(2),
345-350
6. Ballesteros-Rodrguez, J. L., De Sa-Prez, P., & Domnguez-Falcn, C. (2012). The role
of organizational culture and HRM on training success: evidence from the Canarian
restaurant industry. International Journal Of Human Resource Management, 23(15),
3225-3242. doi:10.1080/09585192.2011.637071
7. Ashikali, T., & Groeneveld, S. (2015). Diversity management for all? An empirical
analysis of diversity management outcomes across groups. Personnel Review, 44(5), 757-
780.
8. Olsen, J., & Martins, L. (2012). Understanding organizational diversity management
programs: A theoretical framework and directions for future research. Journal of
Organizational Behavior, 33(8), 1168
9. Shen, J., Tang, N., & D'Netto, B. (2013). A multilevel analysis of the effects of HR
diversity management on employee knowledge sharing: The case of Chinese
employees. The International Journal of Human Resource Management, 1-19.
10. Biron, M., Farndale, E., & Paauwe, J. (2011). Performance management effectiveness:
Lessons from world-leading firms. The International Journal of Human Resource
Management, 22(6), 1294-1311.
11. Mone, E., Eisinger, C., Guggenheim, K., Price, B., & Stine, C. (2011). Performance
Management at the Wheel: Driving Employee Engagement in Organizations. Journal of
Business and Psychology, 26(2), 205-212
12. Bititci, U., Cocca, P., & Ates, A. (2015). Impact of visual performance management
systems on the performance management practices of organisations. International Journal
of Production Research, 1-23.
13. Falola, H., Osibanjo, A., & Ojo, S. (2014). EFFECTIVENESS OF TRAINING AND
DEVELOPMENT ON EMPLOYEES' PERFORMANCE AND ORGANISATION
COMPETITIVENESS IN THE NIGERIAN BANKING INDUSTRY. Bulletin of the
Transilvania University of Brasov. Economic Sciences. Series V, 7(1), 161-170

IBU5HRM 18803490 - Aadit Chetan Khona


14. Kennett, Geraldine. (2013). The impact of training practices on individual, organisation,
and industry skill development. (Contributed Article). Australian Bulletin of
Labour, 39(1), 112.
15. Anitha, R., & Kumar, M. (2016). A STUDY ON THE IMPACT OF TRAINING ON
EMPLOYEE PERFORMANCE IN PRIVATE INSURANCE SECTOR, COIMBATORE
DISTRICT. International Journal of Management Research and Reviews, 6(8), 1079-
1089.
16. Anis, A., Nasir, A., & Safwan, N. (2011). Employee retention relationship to training and
development: A compensation perspective. African Journal of Business
Management, 5(7), 2679-2685

IBU5HRM 18803490 - Aadit Chetan Khona