This is the Case Study on ‘No Name Aircraft’. Click this link (Case Study to Assess Tasks – see above), to view the Case Study.
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No Name Aircraft: Case Study
No Name Aircraft CEO Adam O’Meara has been more concerned about the organisation’s profits.
O’Meara is worried about a possible takeover.
O’Meara knows he must maximize shareholders’ return on investment and get a high share price. This could put his job at risk.
No Name is based in Australia with subsidiaries in Vietnam, Singapore, and China.
No Name builds and sells aircraft to 50 countries.
Many parts of the aircraft are manufactured in China and Vietnam, and many of the designers work out of Singapore.
The assembly of aircraft is done in Singapore and Australia.
The No Name Australian home country teams are not functioning well. There is also a breakdown in communication between the integrated teams, across teams, and between management.
No Name’s culture has become very negative. Workers have taken the motto “near enough is enough” to heart.
Staff have the impression that they will resist any effort to change.
This culture extends to communication between Headquarters and subsidiaries.
Quality is a major problem at No Name, according to one of the management teams from the home country. This is directly linked to parts from China or Vietnam.
Even after aircraft are delivered, they require minor to major modifications.
Both government and non-government customers are complaining about the low quality of aircraft.
O’Meara has received letters from various stakeholders warning them that they will withhold certain payments unless quality improves within six months. Some are quoting percentages customers claim they will withhold 100%, while others are quoting 50%.
No Name has a supervisor who oversees a sub-design team consisting of nine people. Another supervises 11 people who make the wire harness assembly teams. A third team of six sets up the harnesses inside the aircraft.
These are only three of the over 50 teams involved in the assembly of an airplane.
There is no integration between the teams.
Ben Brown, a member the wire harness assembly team, comments.
It is very difficult for us complete our task because of the other teams.
Everyone gets in the way of each other.
There is a lot of resentment.
Teams work according to the specific requirements of their respective areas, which is causing problems for working relationships between and within teams.
Staff members complain about not being given adequate instructions and the communication between them is compromised.
Adam O’Meara is concerned so he called on an internal group to provide advice.
The communication between Headquarters in Australia and its subsidiaries is the responsibility of line managers in Australia.
O’Meara receives emails constantly from China, Singapore, and Vietnam asking for clarification on many points.
No Name’s diversity management policy is simple. It states that everyone within the organization must be respectful of race and age as well as gender, ethnicity, gender or sexual orientation.
No Name is not embracing the richness of working with people from different backgrounds. There are some issues.
First, there is a hostility at headquarters towards employees of different generations.
Senior staff have a hard time accepting apprentices, and their working relationships can be strained.
In China, there is not enough recruitment for people with disabilities.
Managers actively ignore job applications from people with disabilities, even though their skills are superior to other candidates.
O’Meara is concerned about the possible legal consequences of this discrimination in recruitment, as rejected candidates with disabilities may file legal action.
Human Resources (HR), however, does not appear to have any clear practices for helping employees get along.
While it is obvious that staff interactions are affected by each other’s perceptions, HR doesn’t seem to have taken into consideration the importance of understanding how others perceive one another.
No Name employees must learn to understand one another, communicate effectively and appreciate the diversity within the company.
Diversity must include practices that encourage appreciation for other cultures and ways to learn more about others within the headquarters, each subsidiary, and across the subsidiaries.
To ensure that people work in harmony, it is important to have practices that prevent discrimination within the organisation.
No Name should forget that diversity management can be a competitive advantage. It can also benefit a variety of areas within the organization.
No Name has many performance management problems.
No Name does not have international performance appraisals. However, international performance is closely linked to international performance.
HR in Australia conducts performance reviews, but no performance reviews are done at any of the subsidiaries.
Expats do not have to go through a formal performance appraisal process.
Headquarters adopts a very reactive approach and doesn’t consider the economic factors that can impact business targets.
Frank Collins, a manager, said that we are under tremendous pressure in Australia due to high costs and higher expectations.
Each subsidiary is affected by decisions made at headquarters.
One example is when headquarters issues a decision directing Singapore to produce a certain number of parts, only to discover that Australia has a surplus.
Implementing decisions for subsidiaries can have contradicting results.
There is no policy at No Name that supports performance management.
There are not clear measures.
O’Meara stated to the HR Manager that it was time for better performance measures.
We need to measure how we manage.
One person will need to travel to China and Singapore to ensure consistency.
Of course, culture and local customs must be taken into account.
Training and Development
Training expatriates who leave Australia to work in China or Singapore is only half an hour.
When employees agree to work abroad, HR refers them to their online resources.
Employees are not allowed to provide feedback on the effectiveness and efficiency of expatriate training.
Alice Morgan, a mechanical engineer, commented on her recent move to Singapore that there was no training to help her integrate into the new environment once she arrived.
I was surprised at how different people are here. It took me a while to adjust to this new environment with no training.
No Name’s performance shows that there is a strong reason to focus more on training and developing the entire organisation.
No Name does not have a system for workforce planning or management development programs.
An organisation’s management development programs are designed to identify and recruit potential managers and to develop their skills through career development plans that meet the organisation’s needs.
This helps ensure a clear succession plan for all management positions.
As career development plans are not used, employees are not aware of their career opportunities.
Fear of losing their job, senior management does not encourage junior employees to assume their roles.
This has led to a lot of senior employees being poached by other companies.