Topic: human resources management in media Categories: Management

Topic: human resources management in media

Introduction Quantas Airline is launching a new airline Jetstar Hong Kong which is a joint venture with a local Chinese airline China Eastern Airline. Both the companies have fifty percent stake in the new venture. The reason for this joint venture is to tap the emerging market of Asia by providing them low cost services. It is been planned that Jetstar Hong Kong will take short-haul trips within China and for South Korea, Japan and South East Asia. The airline will commence its business with three Airbuses and increase them up to eighteen Airbuses within two years time. The management is confident that this venture will surely create value and earn profits. The company is focusing on the Three hundred Million passengers of China which is forecasted to increase in the future. Within which Hong Kong alone is holding Forty Million travelers annually. The fare rates of Jetstar Hong Kong are half of the prices of other full services airlines. The governments in Asia are encouraging those airlines that charge less which benefits in generating traffic on towards tourism in those areas. The company will enjoy the first mover advantage in these areas having a low cost strategy.

Communications in the Workplace Since the workforce of majority of the companies has become global, belonging from diverse cultures and subcultures the employees have new challenges in having effective communication with each. Lauring (2011) highlighted that due to increase in global competition the management of diverse employees tends to become a real threat making it difficult to daily routine in most firms. Effective communication between the group of people working together is quite essential in daily routine work. A number of studies have highlighted the affect of communication in the workplace, and its impact on the effectiveness and effciency of the work which leads to the overall performance of the firm. In general, Mulkeen (2008) described the diversity in the workplace, such as differences in age, sex, education, sexual orientation, culture, religion, background and life styles. Mulkeen (2008) further noted that a workforce in today's environment is not isolated from the market, but is part of the international trading environment that requires an effective communication within the organization as well as from the rest of the world to have a growth pattern. Ober (2006) emphasized that effective communication within the organization and outside the organization is quite important if you wish have a growth pattern in the competitive global environment of today's business. Global trade and improve competitiveness will not be achieved if they lack in effective communication at work place. Workforce Diversity The studies show that the increase in the workforce diversity is due to the increasing globalization throughout the world. Due to which people have increasingly moved across and between the countries due to interdependence of firms. Globalization brings a challenge for communicating of

employees among those having different cultures and belonging from different ethnic groups. Judith K.Pringle. (2009) suggests that a number of people have to communicate with different individuals belonging from various ethnic, racial, national groups owithin the firm. Ebrahim Soltania (2010)said that the office is a major place where people of different cultures meet and cooperate and gives meaning to the presence of the organization. Gupta (2008) argues that the population of various countries is becoming diverse with the passage of time and the effective communication with in the firm has became the main priorities facing various work environments, where diversity in culture can be beneficial. Other researchers like Okoro & Washington (2012) have argued about the effeciency and effectiveness of employees in the global market depends majorly on the means of effective communications between companies, including staff capacity to gather inforamtion and process it for further analyses. Further more in his study, Ren et. al (2009) have highlighted the importance of communication between people, between cultures and sensitivity, and differences in business practices and nonverbal communication skills that are essential for effective communication with in the organization. the authur further emphasized that to have an effective performance of employee his communication within the workplace setting should not be hindered and he should be able to understand the shared meanings and messages and personal settings and modifications. It is obvious that a culturally diverse workforce won't not be working effectively if they fail to have effective communication or other human interaction (Kreitz, 2008). With the international effect of globalization and diversity of the workplace including the educational institues the globalization has become a a fact which is sure to continue for a longer period. The changing demographics of the workforce throughout the world indicates that management of the work will be on high preference of many entrepreneurs in the future. The

ability to organize a multicultural workforce can become an opportunity to gain competitive advantage by negotiating a better decision making and cultures. The researchers found that ignorance of the effects of diversity in the workplace can affect the productivity and performance, and undermine the objective of the overall performance of the company. In fact, as the global economy continues to grow and attract number of competitors, academics, professionals and businessmen have launched large-scale study of intercultural communication and organization and its implications for all academic disciplines Ren et. al (2009). In according to that, Ebrahim Soltania (2010) contends that the multinational companies are becoming a hub of immigrants coming from various areas and that this trend will further continue, and therefore the companies has to put greater emphasis on human communication and culture. New immigrants represent more than half of the workforce in the Multinational companies as a whole. Moreover, in the opinion of many scientists working population multi-cultural, is a natural result of the globalization of business, which keeps people and their way of different backgrounds in contexts in organization and learn to communicate in writing, and verbally and nonverbally. Therefore, organizations increase their diversity initiatives today, and quantifies the benefits of various multi-culturalemployees. Current trends in the workplace and the world of reference refers to the need for efficiency between cultures, and research findings strongly suggest the requirement for organizations to develop human capital of the world economy, which succeeded to a large extent determined by the company's ability to effectivly communicate across various cultures. Diverse Cultures in Multinationals Regardless of the differences, there underlines a number of reasons why global diversity became more important in multinational firms. The first reason comes from the importance placed on the

rights of every individual working at a place where people comes from diverse cultures. the companies should review such policies that are not discriminatary against a group of people. The second reason why the multinational companies are encouraged to be more representative of diverse society so that they could maintain their legitimacy with key stakeholders in society in general. In various companies, it is the duty of the HR, which is wholly responsible of the employees coming from different class, race, ethnic background, religion and sex (Pisani, 2009). The Hr controls the actions of individuals at work. The international companies make sure that they protect the individual employees from the racial discrimination and gender inequality and seeks to create a their work force a professional, effective, efficient and broadly representative. The third reason is the important role that employees play in conflict prevention and conflict resolution and peacekeeping. The fourth reason why some multinational companies face diversity issues is because of their regulations not set on the basis of protecting employees having various ethnic or ideological construction. All this adds a new dimension to managing diversity and the ideology that have a strong impact on employee relations. This means successfully managing diversity of employees in work settings has become greater than just accomodating various groups to deal with people of diverse cultures and ideologies working together for the same cause. A comparison between Culture homogeneity and Diversity It is been defined as a "the different representation of people in terms of their affiliations from various cultures with in a social system" The subject is studied in laboratory as well as in the field. The results from the laboratory studies showed its support in light of the significance of diversity, that diversity within

Working groups has increased the effectiveness of the group. In addition, Field studies, have shown the results which are congruent to social identity theories and their classifications, which suggests that negative performance is observed due to diversity at workplace. Groups within a homogeneous culture, and their members tends to interact with more frequent and the in various ways, may be because they share the visions of the world and have a unified culture from within group attachments and having common perceptions. The theory of identity homogeneity of management, social and cultural groups can have increased level of satisfaction among them and can cooperate with each other which leads to the reduction of emotional conflicts. As the groups that are are homogeneous do not have a significant cultural barriers in social life so they have positive social interactions that are preferred communication for social groups. Such formulations that are identified would be harmful to social identity and processes of selfcategorization does not prevent organization with a coherent set of cultural management. When the diversity in culture increasing, regardless of social comparisons along with classification process may occur and biases within groups and among different groups may occur, and create barriers to social relations (Mazur, 2010). Therefore, when heterogeneity in the groups reaches the moderate levels, and psychological operations that are related to identity of social theory may have more chances of emerging. All of them generate individual behavior and solidarity with other ethnic group or gender, according to the rules of their group, and discrimination against outgroups. While

Multiple sub-cultures exist in heterogeneous groups to some extent there is more chances of a conflict arising in those groups and may give more chances of cutting of the contact with each other. Researchers have forund that heterogeneous groups provide contradictory relationship, communication problems, less identifications of memenbers of that group. The identification of individuals with a global task. In the management of Groups, have issues associated with normal spread of heterogeneity lead to negative consequences for the organization. Despite the moderate levels can not create cultural homogeneity barriers that are active against social relations have high level of heterogeneity in effect may weaken these barriers. As the members will be distributed to group on an equal footing among different cultural groups and different identities it may result in the reduction of in-group/outgroup identity barriers (Geyskens et.al, 2009). Groups that have high levels of homogeneity in culture within them and face social relations daily effective communications can take place among members belonging to different gender / racial groups. Furthermore, the pressure group which prevents social interaction with other groups they should be diluted out of the group. In groups discrimination in homogeneity may reduce in the group and may not even exist. Furthermore, some common ground for the formation of identity and social sub-group is likely that exist in the management groups have quite higher levels of diversity (Geyskens et.al, 2009). Moreover, the processes that are linked with the paradigm of value in diversity are well aware of the model within the management group is very different, Which improves the performance of the organization. those organizations that possesses increased level of hetrogenity in culture may nit be effected by processes of social identity as the members of

the firm may possesses a number of contacts from otuside the group that may be benefeicial rather than having a variety of resources.

Issues in Joint Venture The Management The top and foremost important factor is joint venture is to decide:

Who is to be reported by whom, what and when? The role of the management in sharing the knowledge with board members (Beamish and Lupton, 2009). Leadership Style

The results after the launch of most of the joint ventures in between organizations the companies tends to lead to the application of an autocratic leadership to a certain extent. As the changes that would be shared by this newly born workforce , not surprisingly in the beginning, the power along with the authority to make decisions is been maintained by the new management (Samovar, 2009). Management has a tendency to consult their employees rarely, especially in the critical times. To be on a safe side, it would be prefered by the management that managers of perfect skills take the decisions and the system is effecient in carrying out the work. Often characterized by the motivation of the environment by organizing a newer regulations of being rewrded or punished.

Although, with the passage of time in the employee workforce and the administration have to work with each of them. Along with this change of leadership style for the type of authoritarian democracy. Thus, the participation of every stakeholders, particularly workers to be given more confident. Incase they feel that something is good or bad, or if you want to say something important to management, they can do so without having any constraints. Moreover, the approch of democratic leadership allows management to obtain feedback on the policies implemented and the regulations. You need to know immediately if there was some tension pertaining between two or more stakeholders. Therefore, immediate actions should be planned and therefore implemented by management to keep things from getting worse. Role of HR It is quite normal that on starting of a new business the management tends to implement much tighter rights and privileges for the employees of the company. There can be a possibility that a strong relationship are replaced between management and labor through a partnership or may be through a joint venture are restored by hatred and frustration (Turovski, 2005). Can differences in the culture of the staff involved may also have some contribution regarding this friction. When this happens, you will not doubt that the performance of the new workforce will be severely affected and will show reduced efficiency. This is due to focus on the work, which will now be more concerned with falling profits and perhaps what they will receive. These fears and anxiety in paving the way for them to reduce frustration and anger at their bosses and the new administration as a whole, and the feeling that they are taken for granted. It is known that human resources play the major role of differentiation and a strong source of competitiveness for any organization or company. Therefore, any organization must be careful to

constantly invest in human resource development, especially during these periods to accommodate the new administration and the environment. However, determining the extent to which an organization is ready to invest in the development of its human resources which further depends on the ability of the company or financial institution. It should be the rights and privileges of workers studied carefully in the context of change management of the company, should also be Jive with the basic policies for companys HR strategy. Joint Venture Conditions Capital Requirement Capital requirement and financial stability is the most important variable in terms of new or joint ventures. Further more for being highly competitive it is essential to be engaged in the latest development within the industry or across industries. Product The product is a result of thorough research and development which requires massive funding. The better performance of the products in the respective market can be a reason of well thought out plan of being cost-effective. Although, the company should keep a track of the products positioning in the view of process so to have a positive margins and remaining a highly competitive product in the industry. Marketing Distribution

For the product to be successful it is important that the product gets relevant exposure and the consumers is been made aware of the product. This requires the marketing department to promote the product heavily which should be backed by the strong distribution channel of the firm. The Benefits of Joint Ventures On having joint ventures the companies enjoy competitive advantages of each other which can further be transcript as Targeting the economies of scale and the scope: It focuses on achieving the economies of scale through research and development of the product. Strong emphasis on research To be successful in the market every marketer tries to invest in R&D of the product so that the product remains highly competitive. Differentiation in Products By the production of a differentiated product coming out from the research Department, the joint ventures try to build its own industry advantages. The continual of R&D investment helps them to remain a differentiated product and make it hard for the competition to copy the product. As these companies are investing more on the differentiation of the product so, they enjoy being

internationally sold in worldwide which in return gives profit which further can be invested on those products R&D. So the Quatas which is having a Joint Venture of China international Airline may face a number of issues when starting of this venture. Some the issues which may arise are highlighted in the literature. The major issue faced by Quatas will be of Human Resource Management in Joint Ventures (Blustein, 2011). As both the companies are having equal share in the new venture so they have to decide on the management of the new venture, who will be reporting to whom, what functions are to be done. And the most important issue that needs to be addressed that what strategy will this company follow. As the two ventures have their own different strategy so aligning their own strategy with the ventures strategy may lead to a collision of ideas between the two owners. Furthermore on starting of this venture the company also must decide the mission and vision necessary to run the business (Baughn et. al, 2011). The financials that it should be maintaining, whether they would opt for extensive marketing of the new product or not what are the means of marketing and promotion of the products (Geyskens et.al, 2009). The company also has to decide that whether they should be aggressive in their Research and Development or they will follow a singular stream. These decisions are needed before the start of the venture and as the two companies are from diverse background so they may have to take decisions which may be against their nature of doing business. Another problem that the company may face because of diverse background is the allocation of Human Resource. As the individuals will be from different cultures the issue pertaining to the workforce diversity arises (Sullivan, 2003). The company will have people from two different

continents that may possess different qualities (Mazur, 2010). The workforce will be quite diverse and the company needs to set some rules and regulations for and strict laws for the diverse workforce so that no issue arises because of the diverse workforce (Beamish & Lupton, 2009). Conclusion The workplace in this century is being diluted because of the globalization variable. To cater the diverse workforce researchers have noted that the company must make strict rules for such kind of situation. Researchers also highlighted that there may be a chance of low effectiveness of a group if the diverse workforce is unable to work coherently with each other. The effectiveness level decreases and the company may face heavy losses just because of lack of communication due to diversification of workforce. So to keep the workforce effective and efficient the management should make sure there stays no point of less communication because of diverse workforce. In case of two companies having different origin countries starts a new venture the companies may face a problem of starting of the new business. As the joint venture is of mutual sponsorship so both the companies may try to implement their own regulation which they think are the best for the company. The issue here is not that the parent companies wont thinking for the betterment of the company but the issue here is that what do these companies think of for the new venture may different from each other.

Recommendation

The following are the recommendations for the two companies: Both the companies should first decide that to which market they will target their products and what will be the means of marketing of those products. Whether they will be investing high amount on Research and Development or not. The companies should make sure that no such issue arises of people lacking communication because of diverse workforce. Prior regulations must be set. The company should try to focus on other Asian markets like India, Srilanka Pakistan where there always exists a need of low cost airlines. The company should also expand its business and try to capture other developing markets of the world that need low cost airline.

References

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