Human Resource Management

This article discusses the importance of human resource management in an organization and strategies for talent retention. It includes a case study of Qantas Airlines and its HR policies.

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Human Resource Management
Student’s Name
Institutional Affiliation

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Human Resource Management
Executive Summary
The human resource management of an organisation plays a very vital role in its growth
and success. There are many approaches that human resource managers should employ to
optimise the workforce as one of the organisation’s resources. Also, the culture of an
organisation is cultivated and determined the human resources managers’ and their interactions
with the employees. The HRM actively implements the organisation’s procedures and policies.
The key areas of an organisation that relate to the employees include benefits compensation, the
conduct of behaviour and hiring practices. About the case study, Qantas Airlines Company is one
of the best performing organisation in the air travel industry based in Australia. This company
has undergone some financial and performance challenges which have to force the human
resource to institute some policies which affect the employees and the company at large. Some of
these policies include the pay cut and replacement of the permanent employees with the
temporary ones. Due to this reason, it has been challenging to maintain and retain the employees
in the company. However, the Qantas company human resource management can employ o the
best practices in the organisation such as proper compensation and provision of opportunities for
growth of the employees in order t address the challenge of employee’s retention.
Introduction
Qantas Airways Limited gives traveller and cargo air transportation benefits in Australia
and globally. It is considered as the second most seasoned carrier everywhere throughout the
world. The name QANTAS formally originates from the Queensland And Northern Territory
Aerial Services Limited. The organisation additionally offers air load and express cargo services
and client loyalty reward programs. The organisation was established in 1920 and is
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headquartered in Mascot, Australia. Qantas is one of the world's best-known airline company,
extending 4 million travellers yearly and reliably positioning among the most secure bearers. Be
that as it may, as so regularly occurs, this worldwide predominance developed from little
beginnings. Queensland and Northern Territory Aerial Services Limited (QANTAS) was enlisted
in the Gresham Hotel in Brisbane, Australia, on sixteenth November 1920 (“The History Hit,”
2015). The new organisation was established by previous Australian Flying Corps officers W
Hudson Fysh and Paul McGinness, with money related support from Fergus McMaster, a
grazier. Arthur Baird, a talented architect who had presented with Fysh and McGinness,
additionally joined the organisation. They acquired two biplanes and set up an air taxi and
airmail administration among Charleville and Cloncurry in Queensland. Qantas became one of
the most significant coalitions as far as systems inclusion: has consensus with British Airlines,
American Airlines, Japan Airlines and Air Pacific. Also, a firm did some code-share plan with
different aircrafts company. These coalitions permit offering a consumed worldwide system,
expanding simplicity of exchange and improving the acknowledgement for long-standing
customers.
Also, from that point forward, Qantas has kept on developing regardless of battering from
the Asian money catastrophe and the worldwide downturn for avionics. It propelled low-cost
airline Jetstar, in the wake of persuading associations to consent to a different pay scale, and that
is demonstrated profitable outcomes (“Where It All Begin: The History of Qantas,” 2011)
Today, Qantas is broadly viewed as the world's driving long distance aircraft and one of
the most grounded brands in Australia (“The Qantas Story,” 2019). Qantas keeps on giving
exceptional support of its clients and is at the cutting edge of the universal common flight
industry. The future holds numerous difficulties for Qantas - keeping up safe tasks and world-
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class item norms while building a feasible and aggressive position long haul for the aircraft.
What’s more, Australia's Qantas has proceeded with its phenomenal wellbeing record of no
fatalities – or structure misfortunes – in the streaming period as it enters its 99th year (Smith,
2019).
Analysis of Literature
Human resource management is described as a coherent and strategic approach applied in
the management of organisations or company's most valuable assets. These assets are the people
working fo0r the organisation, and they contribute to its success. Human resource management is
also defined as the management of people’s skills and tasks towards the attainment of desired
ends or objectives. The primary purpose of human resource management is to make sure that the
business can be successful through people (Noe et al., 2017). Management of people’s skills and
talents as the organisation assets enables the organisations to gain a competitive advantage over
the competitors.
However, human resource managers are faced with challenges when managing their
workforce. One of the most challenging issues related to human resource management is the
talent or employees retention. In the present working places, employees are always looking for
many opportunities from their employment. Some of these opportunities include attractive
compensation [packages and benefits, growth opportunities, among others (Albrecht et al.,
2015). Therefore, employees may leave an organisation for many reasons, especially if they feel
that their employers do not recognize them. It has consequently become a primary source of
concern that human resource management has to look for a way and apply the right strategies
and approaches to retain their valuable talents.
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Human resource managers also face challenges emanating from economic factors. These
challenges may include the declining performance of an organisation and which might lower its
profitability. Due to such difficulties, some human resources managers may be forced to lay off
some employees or replace permanent employees with a cheap temporary workforce (Bratton &
Gold, 2017). Replacing the permanent workforce may present serious challenges to the
organisation as some of the original workers may possess important experience which might not
be posed by the new workforce. Also, there are some ethical issues associated with the
replacement of the workforce since the loss of their jobs would impact them negatively.
Chapter 11, Critical Issue 1 Negative Aspects of Workplace Conflict: Internal
Workers Strike
During Qantas was combating with the financial crisis, its employees were always there
to support the company even they had to get pay freezes as well as others cut during the crisis.
As Qantas is doing better than it was, many employees agree to ask for increasing salaries.
However, no response action to this request from the employers. With the business profiting and
Alan Joyce trading in for cold hard currency, it is a great opportunity to restore a portion of the
accomplishment to the general population who get it going (Sheldon, 2015). It is out of line to
request that workers live on $20 an hour, and all they are requesting is an expansion of one dollar
(Carroll & Wires, 2011).
Qantas has, in any case, looked to disappoint each move to verify our individuals'
employment and good pay and conditions. As a result, Qantas has assaulted the stoppages,
saying it could influence flights for 48 hours. Up to 3,800 Qantas stuff handlers, ground staff,
providing food, cargo and other transport workers would take to the streets for four hours
(Danwarne, 2011). As to the strike, misfortunes from not working for 48 hours can around cost
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the aircraft $68 million. This extraordinary measure of cash is a massive effect on the
organization, and the costs will keep on rising. As a consequence of this strike, it had created a
negative result as it increases negative emotions of employees; frustrating and anxiety. The
workers could not work fully effective with those negative emotions.
Key Finding:
As indicated by this issue, the human resource management team can utilize Common
Alternative Dispute Resolution(ADR) to take care of this issue by settled internal disputes with
the help of a third party go-between to conceptualizing and finding related strategies. A human
resource management team can utilize intervention and mediation forms under a legal procedure
with definite stage resort to a formal hearing by regulatory organizations.
What's more, a human resource management team can likewise apply Kurt Lewin's
traditional model for changes. There are predominantly three stages, which are unfreezing,
moving and refreezing. Unfreezing is the way toward disconnecting issues. A firm should utilize
viable correspondence through the third party to communicate with employees. Also, moving is
the procedure of acknowledgement of the prerequisite of changes to set up new qualities and
procedures. In the last step, refreezing is the support of changes with the goal that a new balance
can be resuscitated. For this situation, a human management team and workers can find the
perfect amount of increase in salary, which both parties would agree together at some point.
In the application of Kurt Lewin's three-step model for change, the company has to
consider that the employees are always resistant to change. These changes are, however,
important for the survival of an organisation. The first stage of the change model is unfreezing.
Unfreezing stage involves setting the process of change into action, such as conveying a clear
message to the employees about the change. The employees are also supposed to be engaged
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during this process since their feedback is necessary for change management. The initial
processes of the firm have to be reviewed, and the management6 should be able to motivate the
employees about the new change.
After clearly communicating to the employees about the future change of the human
resource programs, the next phase of transformation is moving. Moving or changing is a
transition process through which organisation have to move from the old processes to the new
processes. The moving process is marked by proper implementation of change that the company
or the organisation wants to have (Paillé, 2014). The changing process refers to when the change
itself becomes real to the organisation. The changing process is marked with anxiety and fear,
which are the hardest things to overcome during the change process. Due to this reason,
communication, time, support are critical and vital elements to be accorded to the employees so
that they can become familiar with the change.
Refreezing is the last step of the change process. This process is referred to as refreezing
because it symbolises the act of reinforcing, solidifying and stabilising the new form of change to
the organisation (Paillé, 2014). After the new change has been effected in the Qantas
organisation, refreezing is important so that the working environment and the processes can be
stabilised for the normal running of the organisation. Efforts have to be made to guarantee an
organisation that the change is not lost; instead, it should be cemented into the company’s
culture.
The human resource management group should remain mindful of the issues, even the
littlest clash emerging in the organization. Acknowledgement of contention is significant, and
after that lone legitimate goal at the contention should be possible (Paillé, 2014). Finding the
correct answer for the contention is essential for peacemaking. Taking input consistently from
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the representatives is additionally exceptionally crucial to evade any new clash in a not so distant
future.
Chapter 7, Critical Issue 2 Talent Retention (Reasonable Pay): Cutting Salary
A flood of residential and worldwide limit have to a great extent added to Qantas' basic
PBT loss of AUD252 million in the primary half, generally the more grounded period (CAPA
member, 2014). With 5,000 full-time occupations to be disposed of and 50 aircraft to be cut or
conceded, it is a bigger rebuild than past pivotal changes. Decreased flying and changes to
support tasks will create an overflow of positions that Qantas will cut, notwithstanding required
curtails office. The cuts will see Qantas trim its workforce from more than 32,000 to 27,000 – a
decrease of 15%. Qantas sketched out the wellsprings of employment cuts. Decrease of the board
and non-operational jobs by 1,500. Operational positions influenced by armada and system
changes. Rebuild of line upkeep activities. Rebuild of providing food offices, including the
conclusion of Adelaide cooking, as recently declared. What's more, wage solidifies for officials
and decreases board part expenses will proceed, and no compensation rises or rewards will not
be guaranteed.
Key Finding:
Employee’s retention is a process through which the employees of an organisation are
encouraged to continue working for the organisation, especially those who possess important
talents. An organisation which retain their workers until the completion of the projects have
benefits over those organisation which experience employee’s turnover after now and then.
Workforce retention is beneficial both to the employee and to the organisation. Today's
employees switch their jobs easily as soon as they feel that they are not satisfied with their
current jobs (Long & Perumal, 2014).
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For this reason, companies are not able to gain the most benefits out of their talented
workforce. Qantas Aircraft Company can also experience the same situation of the workers
turnover due to the lack of employee’s job satisfaction. One of the compelling reasons why
employees in the Qantas organisation could switch their jobs would be due to reasons such as
lack of enough compensation and growth opportunities.
Employers are supposed to be responsible for maintaining their employees who possess
special skills and talents so that the organisations can gain maximum benefits from such workers.
If an organisation do not compensate their employees sufficiently for the services that they
provide to the organisations, such workers would leave and their jobs. In such situations, the
companies are left without good or skilled employees. Retaining employees requires, energy,
resources and efforts, but the outcome is worth it. Organisations successively retain their
employees through proper compensation strategies (Long & Perumal, 2014). These would
involve giving the employees deserving compensation for the services that they provide to the
organisation. Employees always have a high expectation of attractive compensation from their
employers. Qantas employees would expect the employer or the organisation to compensate
them in a better way for the services that they provide. Though the compensation level changes
from one industry to another, giving the employees in the Qantas, better pay would help to retain
the talents in the organisation.
When employed the workers, one of the fundamental difficulties is the means of retaining
the workers. Rawes (2019) stated that employee retention is the demonstration of keeping
workers. The human resource office in any association assumes an urgent job in worker
maintenance. Employee retention endeavours may incorporate worker preparing, inward
advancement openings, issuing reward, and improving working environment strategies and
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techniques. The human resource office is in charge of leading, suggesting and executing
representative maintenance methodologies amid rebuilding. In the scenario of a pay cut, the
human resource team should do “pulse check” which is the check of how employees feel towards
the current situation involved with themselves and a company.
What's more, they have to check that after salary cut, does it affect the services to
customers or not. Then, the human resource department has to communicate with employees
about the ongoing financial crisis of the company. They should indicate the increasing incentive
when it comes to the profit of the company. On top of that, the retention bonus should be
implemented. To give an example, a retention bonus should be used with a crucial role or critical
positions such as pilots. The retention bonus should indicate that any pilots who keep working
for the company until a firm passes the crisis, shall be rewarded with two months bonus of salary
on top of the reasonable amount of income.
Furthermore, human resource team can also give employees equal reduction in time spent
in a job as they were asked of reduction in pay. To illustrate further, the human resource
department can give a 10 per cent reduction in time spent on the job as they reduced 10 per cent
of the salary of the workers. What’s more, proposing a decreased timetable, to demonstrate
further, a four-day work per week instead of a five-day work per week as it was.
Chapter 2, Critical Issue 3 Changing Workforce: Flexibility
Qantas is a significant change in characterising what a vocation in flying presently
resembles because it is the market head. In the course of the most recent four years, it has sacked
5,000 full-time employees and supplanted them with 9,000 part-time workers. Weller (2014)
mentioned that The 5,000 full-time employees might convert into a higher number of real
positions lost if part-time is focused on. These new representatives do not work for Qantas
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Airways. The organisation has expressed on various events that it will not enlist any new full-
time workers, and they have been consistent with their promise. Not one new full-time ground
labourer has been employed since 2011.
The Qantas changing in the workforce are going to influence a moderately little portion
of a vast workforce. Usually, the situation when redundancies are specific that a few people feel
they have been singled out unreasonably. This impact is unmistakably connected with more
unfortunate results, which underscores the requirement for cautious administration of the
procedure.
Key Finding:
Healey (2016) revealed that with regards to changing in the workforce, a couple of
critical things could set an organisation up for long haul achievement. One of these is dynamic
human resource development that guarantees activities and procedures are executed, starting
from the earliest stage. First of all, as a human resource team, in case of stop hiring employees, a
human resource department should provide compensation to employees. On top of that, a firm
should provide outplacement to teach employees that they are going to lay off, how to write a
resume, how to interview and give information about what company is looking for employees.
The employment termination or replacement of employees is one of the most debatable
issues today. When the employees are dismissed or replaced, the organisation always bears
negative consequences if it can not sufficiently replace such employees. Some of the employees
in a company may have worked in the organisation for a very long time that they possess the
experience and skills that may be necessary for the success of an organisation. If these
employees are replaced, they always lead to the failure of the business. However, economic
conditions can force an organisation to replace their permanent workers with part-time workers
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(Collings, Wood & Szamosi, 2018). This scenario occurs when an organisation is going through
financial difficulties, and it might want to cut the financial burden. In such a time, the company
is supposed to communicate the decision made by the executive. The workers should be given
enough information and reasons why they are replaced with cheaper [part time employees. Also,
the workforce is also supposed to give enough compensation so that their job loss can be
relieved.
The decision by the Qantas Company to replace their 5000 permanent employees with
part-time employees may weigh heavily to the employees as well as the organisation. The
employees may not be able to find employment elsewhere, which would hurt them financially as
well as socially (Collings, Wood & Szamosi, 2018). On the other hand, Qantas might not be able
to get similar services from the new workforce as they have been getting from the original
permanent workers. It might, therefore, be a challenge to the organisation as the standards of
their services might be lowered, leading to the loss of the clients to the rival air travel companies.
Conclusion
Effective human resource approaches and strategies are important in as far as workforce
management is concerned. The role of the human resource managers is to ensure that the
workforce and the resources available to an organisation are effectively and efficiently utilised
for the success of an organisation. However, there are some challenges which arise and face the
human resource management in their duties. These challenges include proper compensation of
the employees, replacement of the employees and employee’s retention. Similar to other
organisations, Qantas airlines face similar challenges as human resource management face the
dilemma of workforce management. Qantas organisation human resource managers have to
ensure that their decision of replacing their permanent workforce with a temporary workforce
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and pay cut for the employees is made in a successful manner such that it does not affect the
organisation performance. Some of these measures that Qantas airlines can take into
consideration include sufficient compensation of their employees among many others.
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