Concept and Theories of Organizational HRM

Question: Discuss about the Concept and Theories of Organizational HRM. Answer: Introduction This essay is focused on developing an understanding of critical theories and concepts of HRM. The essay focuses on four main areas i.e. culture, diversity management, international performance management and training and development in an organization. This essay analyzes the case of an aircraft company which is concerned about organizational profits. For discussion, the company Fly High Aircraft has taken. The CEO of the company is very concerned about the profit of the company. He wants to increase shareholders return on investment. Along with this, the company also wants to gain high share prices in the international market. Fly High Aircraft is operating in Australia having subsidiaries in three more countries i.e. China, Singapore and Vietnam. The company builds and sells aircraft to 50 countries across the world. By the case study, it is observed that there are some issues in the four key areas of the company. This essay has focused on identifying those issues and provided the concepts of organizational HRM to address those issues. The organizational HRM theories and concepts has provided for the factors culture, diversity management, international performance management and training and development in the company (Zeynep, 2013). Diversity management and culture By the case, it can be observed that the teams in the company. It is observed that there is lack of communication between integrated teams and the management of the company. The culture of the company is negative. The staff in the company always resist while implementing any kind of changes in the company. The working relationship across the teams is suffering due to lack of communication. There is the need of modification in the aircraft as the customers are complaining about the lack of quality. Further, in the diversity management, although the company has policy that everyone needs to be respectful in terms of age, race, ethnicity, sexual orientation and physical abilities. But there are many issues in the aircraft related to the values of working with diverse people. Working relationships are not good in the company. Along with this, there is the lack of recruitment of disabilities in China. In other words, in the China branch, company is not following the policy of equality in the business. The HR in the company does not have the set of HRM practices to understand the employees and there is the need to understand the abilities of the employees (Yang Konrad, 2011). Culture and climate are the important part of every organization. Organizational culture can be described as the system of shared meanings having the employees that differentiates one organization to another. Basically, organizational culture provides clear understandings about the things done in the organization. As discussed above, there is the lack of communication in Fly High Aircraft so working relationships is suffering in the company. Staff members are not getting clear instruction and the effectiveness of the company is decreasing. So, there is the need of proper strategic planning for effective business operations. It is not easy to change the culture of the company. The management of the company has to implement the change by changing their own working process (Garg Lepak, 2013). In the organizational HRM theory of culture, there is the relationship between culture and effectiveness. There are four main cultural traits which should be present in the organization i.e. adapt ability, consistency, involvement and mission. In case of Fly High Aircraft, the company must focus on these four factors. Further, there is the need to set the beliefs and values and the managers must communicate with the employees by various methods to understand the behaviors and the perception of the employees. Simply speaking, culture is the soul of the company which decides the success or failure of the company in the market. Culture training is important for the company Fly High Aircraft as not understanding the culture can harm the success of the company. The cultural implications are important for the company otherwise employees of the company will start to quit from the job (Gatewood, Field Barrick, 2015). According to the organizational HRM, it is important to provide equal opportunities to every employee in the company. Diversity management in the company provides shape to the corporate identification to the employees in the organization which is called internal diversity effect. Along with this, it provides the shape to the corporate social responsibility outside of the organization which is called external diversity effect (Becker, Huselid Ulrich, 2001). There is the need of diversity management in the about described company as the policy related to the diversity management is not followed by the company. By the effective diversity management, the company can adopt the policy of corporate identity which will impact on the engagement and the motivation of the employees in the work (Wondrak, 2014). Along with this, this will also shape the brand of the company. By adopting CSR, company will be able to maintain the public relations to shape the brand in the operating market. These a ll the suggestions for the Fly High Aircraft in terms of diversity management will improve the organizational culture and its corporate values (Meyer, 2014). Diversity management can be the tangible asset for the company as by retaining most talented coworkers, company can engage those employees in work for the long time period. So, it is better to have dedicated and loyal employees who develop commitment for the company. Diversity management is important is crucial for the culture of the organization (Kaplan Norton, 2006). International Performance Management By the case, it is observed that the performance management of the company has many issues. Basically, international performance is directly connected to the performance appraisals internationally. But it can be seen that there is the lack of performance appraisals in Fly High Aircraft. There is no performance appraisal system in the company. Headquarter of the company does not consider the economic factors which affect the targets of the business. According to one manager of the company, there is much pressure in Australia due to high cost and higher expectations. There is no effective policy related to the international performance appraisal with no clear measures in the company. It can be seen by the case that the CEO of the company told HR manager that there is no need to measure for managing the business. Performance management is basically a concept in the human resource to identify measure and develop the performance of the employees for the strategic goals of the organization. From the above discussion, it is clear that there is the need of proper performance review to improve the performance of the employees in Fly High Aircraft. There is the cycle of five elements in the performance management which should be adopted by the Fly High Aircraft. Those elements include settings of the objectives, measuring the performance, providing feedback of performance result, reward system on the basis of performance outcome and modifications to activities and objectives (Oke, 2016). There are two main theories underlying the concept of performance management. Those theories are the goal setting theory and expectancy theory. The company Fly High Aircraft should adopt these theories to measure the performance of the employees. The goal setting theory says that company should set individual goals for each employee so that employees can give their best in the work. Further, in the expectancy theory, the performance of the employees depends upon their behavior. The employees should modify their behaviors in such a way that they could be able to achieve the organizational goals. For the employees of the Fly High Aircraft who resist for any kind of change, the expectancy theory will be very helpful. There are many studies which show that the HRM has the positive relationship on the performance of the employees. Under the performance management review, the company can adopt reward system for the employees. There are two types of reward system i.e. financial rewards and non-financial rewards. To achieve the high standard performance in the company, individual should focus on his or her performance. In the development of expatriate performance management, there is the need of standardized performance management in the Fly High Aircraft. For the effective performance management in the Fly High Aircraft, the success depends upon the understanding between the manager and the expatriate and the skillful implementation of performance appraisal in the company. For this manner, appropriate training should be provided to all the expatriates. Company needs to review the performance of the employees time to time. There is the need of lots of improvement in the company Fly High Aircraft becau se if the company wants to grow in the international market then the company should focus on its employees. It is very important for the company to retain the employees otherwise company will face loss in the market. Training and Development Now, in terms of training and development in Fly High Aircraft, it is observed that to do work in the Singapore, China and Vietnam, the company has sent some employees from Australia. HR manager in the company assumed that every employee in the company has same needs when they are going to do work in another country. Further, there is no feedback process for the employees so; they are not able to comment on the effectiveness of the expatriate training. For instance, if an employee is moving to Singapore then there is no training provided by the company to help that employee to adjust in the new surroundings. There are different people in the new country and without any training; it took a long time to adjust in new environment. Further, airlines do not have no systematic workplace planning and programs related to management development. In the company, employees are not aware about their career prospects without career development plans. Along with this, there is the lack of professi onal development in the company. Moving towards new country is not an easy task. It is very stressful so, it is important to provide training to that employee. Training and development session will be helpful for the employee to deal with some issues managing stress, homesickness, larger workload and culture shock. Some stress may be the cause of homesickness and insecurity. So it is important for the company Fly High Aircraft to note that much of stress can de-motivate the employee in the new environment. The expatriate may not adjust in the environment and may under perform in the work. Thus, the success of the expatriates depends upon their ability to adjust in the new country. It is clearly discussed that the employees of the Fly High Aircraft are facing issues related to training and development while going to do work in the new country. There are no training procedures in the company for those employees who are relocated in the branch offices on China, Singapore and Vietnam. There is the need of proper trainin g and development policy in the Fly High Aircraft (Purce, 2014). Company has to provide cross cultural training to the employees. According to the organizational HRM, the aim of training is to improve the relation of employees with the managerial system. When the expatriates are not familiar with the culture, custom and the work habit then training will be helpful for them to understand all these things. Further, effective training programs can improve the overall management system of the company. It is important for the company to train the employees for attaining future goals of the company (Hendry, 2012). There is the process of cross cultural training which must be adopted by the Fly High Aircraft. The process of the training and development is given below in the figure. There are two phases of expatriate training i.e. preparatory training for foreign assignments and re-entry training. Fly High Aircraft has to adopt some training strategy to bridge gap between the abilities of individual and the responsibilities of their job (Wilson Brown, 2012). The strategies which should be adopted by the company are described in figure: First of all, it is important to identify the objectives of the training. The reason of the Training can be new culture, environment and lots of challenges which might be faced by the Expatriate in the new country. After that company should identify the job role and responsibility which have to perform by the employee. The training needs must be determined by the HR in the cross cultural area. Further, the goals must be established for the Expatriate so that they can be motivated to achieve that goal. At last, the effective training and development program will be developed and delivered to the employee for his or her growth. The company should not only implement the training program but also it should evaluate the effectiveness of the program (Goodman, 2014). There is the need to train the expatriates so that they can adopt the new environment, culture and responsibilities easily. Expatriates need additional training to prepare them to achieve the goals and objectives of the career. So, all the training methods are effective in the training for Expatriates. During the relocation, Expatriates can face many issues and challenges. During that time, there can be the issues of communication. So, the use of internet is the best option for them which will be helpful in reducing the barriers and limited opportunities for them. The company should develop mentoring program for Expatriates and this should be done by the HR and training department (Voorde et al, 2010). After implementing the mentoring program, the Expatriates will be able to improve their skills in the new environment. From the above discussion, it is clear that there is the need of proper training for the Expatriates as the company is seeking for more profit in the market. So, it is necessary to retain the employees for the business operations (Barrett, 2014). Conclusion This easy is focused on the organizational concepts and theories in terms of four core areas i.e. culture, performance management, diversity management and training and development. From the above discussion it is observed that Fly High Aircraft is the famous airline working in the Australia. The company is seeking for more profit in the market but the problem is that the company is not following the organizational HRM concepts. All the policies and management are not effective and the system of the company is not working properly. If the company wants to grow in both national as well as international market, then the company has to do some effective changes in the business operations. The organizational theories and concepts provide the framework to the organizations to manage the business operations effectively in the operating market. In last, for effective management of the Fly High Aircraft, there are some recommendations for the company. The company should adopt those recommend ations for future business operations. For managing diversity in the company, managers should focus on the internal and external diversity management. Company should provide language training to the staff to improve diversity management. For managing cultural issues, company should adopt proper strategic planning for effective business operations. Managers should implement the change by changing their own working process (Wooton Horne, 2010). For performance management, managers should adopt the two theories i.e. goal setting theories and expectation theories. Company should set individual goals for each employee so that employees can give their best in the work. References Barrett, B. G., (2014), Training Global Managers to Prepare and Train Expatriates for More Efficiency and Effectiveness: Journal of Economics, Business and Management, 2(3) Becker, B.E., Huselid, M.A. Ulrich, D. (2001), The HR Scorecard: Linking People, Strategy, and Performance, MA: Harvard Business School Press Garg, S. Lepak, D.P., (2013), HR practice saliency: how does it drive employee outcomes: InAcademy of Management Proceedings, p. 16119, Academy of Management Gatewood, R., Feild, H.S. Barrick, M., (2015),Human resource selection, Nelson Education Goodman, N. 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