The Business of a Multinational Aviation Company - Term Paper Example

Case study of No Name Aircraft Course Name Professor’s Name Institutional Affiliation City and State Where Institution is Located Date 1 Contents 1 Contents 2 Introduction 3 1.1 Culture 3 1.2 Diversity management 4 1.3 International performance management 6 1.4 Training and Development 7 2.1 Effective communication channels 8 2.2 Introduction of Company Intranet Site 8 2.3 Banking on Teamwork 9 2.4 Introduction of reforms 9 3.1 Conclusion 10 4.1 Implementation plan 11 13 References 14 Introduction No name is a multinational aviation company that serves a market of 50 countries. It deals in the building of aircraft parts, assembly and sale of these aircrafts. The headquarters of the company is in Australia and the subsidiaries being in China, Singapore and Vietnam. The parts are mainly produced in China and Vietnam, most of the designers are from Singapore and assembly is done in Singapore and Australia. The firm is currently having troubles which are shown in the reduction of profits. Adam O’Meara, the CEO seeks to improve productivity and quality of the firm by solving the firm human resource affiliated problems. 1.1 Culture The company is experiencing issues related to the organizational culture. In an organization like such, the presence of various subsidiaries requires a keen flow of communication and information. Corporate structure helps in proper administration and utilization of the resource (Schmitz, 2016). However, the organization chart at no name is ailing; there is a communication breakdown. This failure has happened between the various the employees in different departments. Due to this menace, the communication network is unreliable and inefficient. The failure of communication also causes lack of coordination among the various agencies and the subsidiaries (Blizard, 2012). This lack of coordination undermines the quality of output and the relationship between different teams. Lack of teamwork is also an issue caused by lack of effective communication (Mallikarjunan, 2007). The fact that different parts of production are carried out in different subsidiary necessitates the need for a credible and harmonious system of communication that operates efficiently and efficient. This system will ensure that the firm functions as a single unit rather than four different units. Apparently, that is not the case with No name as the subsidiaries operate on a single basis and tend to blame failures on the other branch. The negative energy within the organization is also high. Lack of proper understanding and relations between co workers undermines the quality of the output (Radha, 2007). In the headquarters for instance, there is poor integration between the various teams in the firm. The negative energy can be interpreted as the lack of motivation structures that build the confidence of the employee. This energy is reflected in the business as there is a lot of resentment among the workers and the relationship between the teams is deteriorating hence the lateral and horizontal communication channels are compromised. The lack of a proper communication network is clearly noticed when the CEO is consulted in matters that are supposed to be handled by managers. Consequently, staff members end up receiving poor instructions that limit the quality of the product and cost the organization additional charges for modification after they have been delivered. 1.2 Diversity management As a multinational company, no name has employees of different backgrounds. This diversity if utilized effectively should create a competitive advantage for the firm’s products, create a platform of appreciation of other cultures, ensure effective people management and build a credible corporate reputation (Patrick and Vincent, 2012). However, the company has failed to offer equal opportunity and substantiated diversity management. The workplace in China fails to employ the disabled thus exposing the company to negative criticism and legal actions. The no name work space has intolerance towards employees from a different generation. Generational discriminations limit the career development of individual’s within the firm as it discourages mentorship within the firm. Apparently, these limitations restrict the development of an individual to attain his/her maximum potential. The structure of the organization is alienated the junior employees. This alienation results from a strained relationship between the senior and junior employees. In combination with generational discrimination, this poor working relationship ties down the productivity of the firm (Patrick, 2010). Thus, when the customer complains on the quality of the product, the results of a strained working relationship can be taken into account. In such an organization, the HR department should play the role of ensuring all employees despite their different backgrounds can engage and understand each other correctly. This role can be best fulfilled through practices such as a cross train which enables the employees to understand how the different pieces of the company should relate and contribute to the ultimate goal (Sharbara and Dewpha, 2008). The creation of a rapport that allows the employees to speak up and take the initiative to identify the problems the firm has, brainstorm on solutions and collect data to formulate recommendations (Ozbilgin and Tatli, 2008). This practice will also encourage creativity and innovations in design thus drive no name forward. Lack of these practices has created a working environment where interrelation is based on each other’s perception on the other. This perception is fuelled by the lack of interest by the HR in enhancing the workplace environment. For the firm to become fluid and productive, the employees need to have a better understanding of each other, have effective communication and values the diversity that exist within the company (Patrick, 2011). The HR should notice that the company is composed of employees from different cultures. The diversity of these cultures necessitates the need to handling them in a unique and appropriate ways thus maintain equal opportunity (Marie-Élène and Rolf, 2010). The difference in cultures affects how people interpret and experience behaviours and events, the values they consider fundamental and the extent of influences by different segments in the decision making (Patricia, 2008). Therefore, the HR should take into account all these factors while trying to ensure diversity is managed within the organization. 1.3 International performance management In a global company like no name, performance affects all sectors either directly or indirectly. Thus by encouraging good performance, the firm can be able to increase the scope of all its sectors. In no name, there are no structural frameworks to appraise general performance. The firm carries the assessments within Australia but alienates its subsidiaries. International performance management can enable the firm to streamline the issues they are experiencing. This can be done by goal-setting, encouraging of feedback and creation of guidelines for the evaluation process. Even though the firm uses a direct approach due to high production costs and high expectation, the strategy is already failing. This failure is shown by the implementation of decisions that result in conflicting performance outcomes. An analysis should be formulated to encourage, motivate and evaluate employees with the aim of having goal oriented employees with a good work ethic. An in-depth analysis realizes that there are no policies that ensure performance management and even feedback from the employees. The lack of policies lies on the HR team in conjunction with other managerial heads that should coordinate, formulate and administer these policies. They should also set performance standards and create reliable measuring system isolates discrimination and embraces diversity in all the subsidiaries of the company. 1.4 Training and Development Being a multinational company, more often employees are assigned in different countries. In such cases, expatriate training is needed to enable the employee to be ready and adapt faster (Jennifer, Christine, Angela, William and Eduardo, 2014). This training boosts the productivity of the employees. In no name, human resource department fails to administer information or training to personnel in such situations. Instead, they refer the employee to their online guide with the assumption that each employee has the same needs. The department lacks a cross-cultural training framework that may help the workers overcome difficulties that weaken effectiveness while in another culture, develop positive working relationships in the host nation, accomplish work-related tasks in the another culture and cope with away from home pressure (Asmita, 2009). The firm also lacks a framework that supports training and developments of individual employees. Also, there is no systematic workforce planning and management of development programs. These programs are set so as to identify and recruit managers, develop their skill sets through career development plans thus ensuring a clear and effective succession management plan. As a result, many employees are unaware of their career prospects; the senior management does not the mentor, partner of offer accomplice to their juniors. Hence there is a lack of professional development within the firm, and eventually, key employees are poached by competing companies. 2 2.1 Effective communication channels The organization needs an effective communication channel. Clearly a restructure in required to induce the new communication network along with positive energy. The human resource management unit should request feedback from all employees of the company. This feedback should be based on how the firm can restructure its communication set up to improve the flow of information. Once feedback is obtained, the HRM sets up a committee to analyse all data and formulate a rejuvenated lateral and horizontal communication framework with clear guidelines on protocol. This system will also outline the responsibility of all managers and give job descriptions. This is a tool that will enhance direct communication within the company. Therefore, each employee will know who or where to communicate in case of a particular problem. This protocol grid will be made available to all employees thus reaffirming the role of each employee in the communication network. Through this, the future of the firm will be free of communication breakdowns. 2.2 Introduction of Company Intranet Site The HRM should set up a company intranet site. In the intranet site, the senior management will have a platform to outline strategies, monthly and team specific goals, announce promotions, warn challenges to expect and discharge day to day information (Robinson, Segal, and Smith, 2016). This form of indirect communication will increase the availability of information. It can also be used to recognize prolific teams thus boost the confidence within the organization. Through the site, social activities can be planned and communicated to all employees. It also bridges the diversity barrier that affects employees in the other country as all information will be available for everyone. It is a safe means of not only ensuring fluidity of communication but also motivating and coordinating teams. 2.3 Banking on Teamwork By enhancing collaboration, the HRM will strengthen the productivity of the firm. The firm is already operating through teams; therefore the only effort to input is team building. This can be done by the implementation of recognition programs. In the program, an evaluation criterion is formulated to recognize teams that are efficient and effective in their activities. These teams will be graded based on how they can coordinate, communicate and relate to themselves and with other groups. The criteria should include emphasis, not on the production rates but the quality and level of coordination with other teams. Team leaders will also be enlightened on how to create harmony within the group. This harmony can be achieved by setting clear outlines and expectations for team members and the team. This framework can also be created through the feedback methodology. This method boosts the employee’s level of energy as they have an input in it (Root, 2015). This energy is founded on the fact that the set up is not imposed on them but rather formulated by them. Team leaders should be given the training to ensure they can integrate with fellow leaders. The best way is to have regular team leader meetings in which they discuss the challenges they face, give status reports, interact with each other freely and plan on future objectives. This bonding will enable them to operate as a single unit despite the diversity. Integrating this bond to be an organizational culture will ensure that the existing troubles do not recur in the future. 2.4 Introduction of reforms Policies and reforms should also be introduced for short and long term purposes. These reforms should centre on diversity management, expatriate training, mentorship, career development programs and hiring programs. The HM should have a policy that ensures each team has at least a member of the four countries. By introducing diversity at the team level, the workers can interact with others on a daily basis. This enhances the way of understanding of other cultures thus their ability to work while overlooking the cultural barrier. Through this policy, the company will be able to track diversity from and individual level to the subsidiary level. Thus, they can address the problems arising from the menace and so maximize productivity. The HRM should work to improve their expatriate training. An individual should receive part-time training on a daily basis for at least 14 working days. The first seven days will be before the transfer, and the remaining will be after the transfer while in the new location. This will enable the employee to have hands on information on the host culture, work ethic, and resident’s preferences. The training is crucial as it prepares the employee physically, emotionally and mentally to work in a new environment away from home. Presently, the firm lacks career development programs and mentorship programs. A human orientation policy can be formulated to give space for management development programs and mentorship. Through this program, an employee is identified and assigned to a specific senior official to which the worker reports to on a weekly basis. This program will have a long-term effect on the productivity and culture of the organization. It helps the company nature its leaders thus ensure a high score future orientation. This will ensure that current problems do not reappear in the future. 3 3.1 Conclusion The current situation of the firm can be treated. To solve an organizational structure failure, all sectors of the firm need to be involved. The employees have the role of identifying the problem through the feedback, and team leaders need to formulate team building skills. Senior management of the firm needs to make policies and reforms to help the long-term well-being of the firm. A firm’s effectiveness is tied down to its communication structures (Nielsen, 2014). Thus, emphasis should be placed on the network, teambuilding, managing diversity though policies and reforms and preparing the employees to embrace change. Diversity if managed well by the HR will not only improve the productivity of the firm but also influence the investment of shareholders back to the firm. 4 4.1 Implementation plan The plan shall be implemented in two phases. Phase A or the rejuvenation phase is a short term plan of action to realign the communication network. It involves identifying the breakages by the employees, the fixing of these problems by a panel of Human Resource experts and introduction of a protocol grid. The grid will be availed in the mails of each employee. In this phase, the company intranet site will be set up; each employee will be able to log in and access information on the monthly objectives of the company, planned meetings and any communication from senior management. The site will also be used to convene team leader meetings, announce the best performing teams and pass motivation and inspiration information to the employees. Phase B will be a long term strategy that will give the firm a long life line. It will involve policies and reforms that will take a maximum of three years to implement. The first reform will major on diversity management in all sectors of the company. The HR department will ensure be on the front foot during the hiring process to ensure all candidates hired represent the four countries. In addition the policy will eventually ensure that in each team, members of two other countries must be present. For instance for a design team based in Singapore, the composition must have at least a representatives from a combination of two other countries. The team should not have members from Singapore and Australia or china or Vietnam only. This will ensure team members interact and learn to put aside cultural differences and work. This will eventually fuel productivity and coordination success. The second policy will be on Career Development Plans. A panel of senior officials will be tasked of identifying promising young employees and nurturing them to suit managerial duties. The CDP should ensure fairness in every point. The employees for the program will be chosen based on merit and not country or gender. Since the company relies on designing planes, the program will also allow design experts to visit universities in the four countries during design competitions and identify potential employees. This will ensure that before an employee’s achieves top management, he has grown through ranks of mentorship which cultures the individual to full potential. References Blizard L. J. 2012. Importance of Effective Communication, Aorn, vol 95 (3) 319-320 https://www.aornjournal.org/article/s0001-2092-(12)00008-7/ [Accessed on 19/05/2017] Patrick A. H. & Vincent R. J. 2012. Managing Workplace Diversity, Sage, vol 2 (2) 12-15 https://www.journals.sagehub/doi/abs/10.1177/2158244012444615 [Accessed on 19/05/2017] Patrick A. H, 2010. Organizational Culture and Its impact on Diversity https://www.journals.sagehub/doi/abs/11.1178/2158244012444617 [Accessed on 19/05/2017 Ozbilgin M. & Tatli A, 2008. Global diversity management: An evidence-based approach. London, England: Palgrave. Patrick H. A. 2011. Organization culture and its impact on diversity openness in the information technology organizational context, Dimensions, 1(1), 67-72. 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