Qantas Airways HRM Case Study


Added on  2019-09-26

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QANTAS HRM-CASESTUDY[Document subtitle]NameSubmitted toDate[DATE][COMPANY NAME][Company address]

IntroductionQantas Airways is Australia’s largest airlines. The Qantas Airways Group has been seen to have an extensive commercial and ownership links having a high number of regional carriers. It has analliance arrangements and code-sharing along with international carriers via the One World Alliance. Qantas is the second largest among the all the five airline alliances which are the groupings of all the allied airlines underpinning the globalization of the airline industry.The airlines were found in November 1920 and began as international passenger flights in 1935. The name for the airlines comes from "QANTAS," an abbreviationfor its original name, "QueenslandandNorthern TerritoryAerial Services," and has been nicknamed as "The Flying Kangaroo." Qantas Airlines is also a founding member of theOneworldairline alliance(Qantas, 2016). A very strong international equity link is present between the British Airways and Qantas. Additionally, Fiji' Air Pacific has its 46.2 percent interest with Qantas. A nationwide, full-servicescheduled air services are only being provided by the Qantas Airways. Since the collapse of Ansett group, the domestic share of Qantas has reached approximately 70 percent of the travel market from a mere 55 percent. It has a human resource management operating in the four major areas of the company, namely, business segments, shared services, corporate, development, and learning. Despite the roles being entrusted on HRM by the organization, grave cases of accidentsas well as strikes from the ‘dissatisfied workers’ allegedly came for getting meager salaries. Issues similar to these present an HRM gap in the responsibilities that were being delivered.The reports present insights to the challenges being faced by the HR Planning at the Qantas discussing the HR functions that must be addressed so as to face these challenges. The volatility 1

of the company is being affected by a large number of variables which has been discussed in the study. The paper begins with a discussion of the challenges of job design and performance management in Qantas and then the step towards addressing the issues have been discussed in the paper.DiscussionThe airline industry offers to be a perfect example of sector where everything is dependent on thefossil fuels and its availability. It has been estimated that around 30 percent of the costs of this industry has been going towards the kerosene. Therefore, the fuel price is the biggest concern that the airline industry has been facing in the modern world. This high fuel cost imposes fuel surcharges on their customers. Another one of the most challenging factor is competitiveness. This has made alliances to be a major factor for the growth and development of the airlines be it with high-speed rail links or with another airlines. Additionally, the airlines have been suffering because of the issue of overcapacity as major airlines are struggling in order to get a grip and consequently find it difficult to adapt to the ever-changing economic environment. Other challenges include the labor unrest in this particular industry and emergence of the low carrier’s flights. The Qantas Airways has a solid history in the business years related with transportation of passengers and mails. With an expansion of operations in 65 domestic and 27 international destinations, it serves around 30,000 employees. It has a human resource management operating in the four major areas of the company, namely, business segments, shared services, corporate, development, and learning. The HRM in the corporate level is seen to be highly responsible for remuneration and benefits, the international and industrial relations of the airlines along with its competitors as well as management. The HR teams are also responsible for collaboration with 2

the various other business segments for ensuring successful delivering of the strategies helping the organization to gain competitive advantage (Emerging Issues in Human Resource Management). The major responsibility of the organization lies with the human resource. The major work areas and responsibility include supporting remuneration, managing the compensation of the employees, managing workers records, and recruitment processes along with coming up with the strategic plans regarding the staff traveling, schemes and schedules. Under the development and learning level, various training programs are given to the employees for helping them to deliver all their works effectively.Qantas Airways have been facing issues in their job analysis and performance management system which have been discussed below: The organization has an inefficient hiring team, and HRM has been making mistakes in choosing a right candidate. Although the organization has a heavy training and recruiting program and the company, have been investing in the job analysis as a well-designing process. In2008, the company was involved in the in-flight incident causing a serious injury to the 129 passengers owing to the spacious commands. Additionally, the training is not seen to be highly productive since 2006 recruitment. The pilot of the organization was seen not to be acknowledging towards the issues and decided to overshoot the particular destinations by a rangeof 150 miles. It has been alleged that the captains of the organization are not competent in nature and further lack knowledge regarding shall recovery and use of stick shaker which led to serious accidents. According to various researches, the organizations like Qantas Airways invest a great deal of money on training with the belief that this might be helpful in gaining competitive advantage in the local as well as global (Jackson, Schuler, and Werner, 2011). Although training is offered to the employees so as to motivate the employees and in 2009, it was seen that around 3

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