Essays on Recent Conflict that Occurred between the Tiger Airline and the Australian Civil Aviation Safety Authority Case Study

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The paper 'Recent Conflict that Occurred between the Tiger Airline and the Australian Civil Aviation Safety Authority" is a good example of a management case study. World over for many years the issue of conflicts at the workplace has attracted a lot of attention more especially from the researchers who are out to find out what is the major cause of these conflicts. According to Lafer (2005), conflicts are normally a case between the senior management and part of the whole of the employee team. This is because of the diverging expectations between the employer and the employees.

In an ideal workplace environment, strategic management is expected to ensure a good balance between the needs of the employees and the business’ objectives and goals (Kochan, 2004). In other words, to avoid some of the common conflicts, no single part needs to be exploited at the expense of the other. But as a matter of fact, it’ s the employees who in many occasions complained of being handled unfairly and unjustly by the employer. This scenario raises the relevance of ethics at workplace.

Work ethics at the workplace and especially in managing the human resource are very critical in handling those issues that may lead to conflicts (Huselid and Brian 2001). Many world governments have also enacted different policies that are geared towards ensuring the creation of a fair workplace by employers. For instance, the Australian Fair Work Act of 2009 was enacted to assist in address issues addressed by the country’ s workplace relation systems. As my objective, this paper seeks to address the recent conflict that occurred between the Tiger Airline and the Australian Civil Aviation Safety Authority (CASA).

The specific situation which I plan to address is with regard to the proficiency of the company’ s pilots and the fatigue management processes. Tiger Airways To properly understand the nature of the conflict between the parties, it is important to understand that the report by BBC of 4th April 2011 revealed that the Tiger Airways had been grounded on its operations following safety allegations. The airline has its origin in Singapore. The company is the cheapest in the country and therefore its grounding implied that competition in the industry will not be intense in terms of price.

The Tiger Airline operates 10 Airbus A320s locally and they make over 60 flights daily facilitating the movement of over 9,000 passengers. The grounding of the company’ s travel services was a result of the complaints that were raised by CASA on the company’ s safety management practice. Even though failure to address the issues of employees’ safety would have helped the company save more and have good returns to the investors, it could not last for long.

For instance, the BBC report went to indicate that immediately after the grounding; the company’ s shares’ price went down by 20% while those of the competing companies like Virgin Atlantic and Qantas increased by 10.5 and 6.5% respectively. This clearly demonstrates the long-term challenges employers after failing to address the plights of employees for short-term shareholders’ gains as presented in the BBC Report (2011). Ethical and Professional HRM One of the most important aspects of ethical and professional HRM is to promote acceptable behavior at the workplace by placing a lot of emphasis on the need to protect employees from any form of mistreatment, harassment, exploitation or bullying by the employer (Antonio, 2003).

The proponents of this theory are of the view that those employers or companies that tend to put more focus on long-term issues with regard to stakeholder’ s interests stand a better chance of prospering as opposed to those that are only interested in meeting the shareholders’ interests. This could be the case of the Tiger Airline in failing to address the issue of safety at the workplace in order to save on the operational costs and consequently benefit the shareholder at the expense of the employee.

Ethical and Professional HRM supporters agree that companies under all circumstances need to lend an ear to the employee’ s concerns and at the same time try to respond appropriately both to the values and needs of all the company stakeholders (Hoffer-Gittell 2002). In the case of the Tiger Airline, all stakeholders were not treated as equal partners but instead, the company sought to concentrate on the shareholders’ issues and thereby failing to work on ways of improving the employees’ proficiency and long working hours.

In any case, if the company fails to address the employee wellbeing, then the collapse of the business is almost certain. This argument is also being supported by even the conservatives who are pro to the business, who say that any business which does not balance the needs of all the stakeholders, will always find it very difficult to sustain the business (Kochan, 2004). They continue to assert that in the free market economy, proper management of staff, supplier and other financial partners are all very critical to the business rather than unethical ways which are unjust and unfair to the workforce.

According to Sillanpaa and Jackson (2000), both long-term benefits and proper management of employees overlap at a certain point. In other words, good employee management practices are directly related to long-term maximization of the company profits.

References

Antonio, A. (2003). Fostering values in Organizations. Journal of Business Ethics, 45(1/2), pp. 15-28.

Arkin, A. (1996). `Open business is good for business’. People Management, 24(7), pp. 123-145.

BBC Report (2011). Tiger Airways in talks with regulators over grounding, Retrieved 9th April 2012,

http://www.bbc.co.uk/news/business-14009434

Boxall, P. and Purcell, J. (2003). Strategy and Human Resource Management. London: Palgrave

Macmillan.

Deeks, E. (2000). “Self-service is hard work”. People Management. 26(23), pp. 9-10.

Hoffer-Gittell, J. (2002). The Southwest Airlines way. New York: McGraw-Hill.

Huselid, M. and Brian B. (2001). The HR scorecard. Boston: Harvard Business School

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Kochan, T. (2004). Restoring trust in the human resource management profession. Asia Pacific Journal of Human Resources, 42(2), pp. 130-146. Cambridge, MA: MIT.

Lafer, G. (2005). The critical failure of workplace ethics, in Budd, J and Scoville, J (eds), The Ethics of Human Resources and Industrial Relations, Illinois: Labor and Employment Relations Association, pp. 273-297.

Legge, K. (1998). ‘Is HRM Ethical? Can HRM Be Ethical?’. In Parker, M. (ed.) Ethics and

Organizations. London: Sage, pp. 150–72.

McDonald, G. (2000). 'Business Ethics: Practical Proposals for Organisations,’ Journal of Business Ethics, 19(2), 143-159.

Sillanpaa, M and Jackson, C (2000). Conducting a Social Audit: Lessons from the Body Shop Experience, in Winstanley, D and Woodall, J (eds) Ethical Issues in Contemporary Human Resource Management, New York: Palgrave Macmillan, pp. 227-49

Sternberg, E. (2000). Just Business: Business Ethics in Action, 2nd edition, New York: Oxford University Press.

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