Human Resource Planning and Performance at Qantas - Case Study Example

Human Resource Planning and Performance Name: University: Date: Table of Contents Human Resource Planning and Performance 1 Table of Contents 2 Executive Summary 3 Contents 4 1.0 Introduction 5 2.1 QANTAS’ History of Downsizing and Outsourcing 5 3.0 Findings 7 3.1 HR Policy for Qantas 8 4.0 Conclusion 10 4.1 Recommendations 10 5.0 References 12 Appendices 14 Human Resource Planning and Performance Executive Summary Overall organizational design and organizational structures play an important part in enhancing and defining Organisational performance. Downsizing in large scale, outsourcing, vertical disaggregation, in addition to the eradication of levels of management have been prevalent in the 21st century. Downsizing and outsourcing are perceived as a tool that can assist companies to manage new business environment effectively and in isolation they are turning out to be one of the contemporary trends and basic issues of organizational design. Scholars have exhibited that when organizations undertake downsizing as well as outsourcing activities, they will realize higher performance levels in the end. Employees’ motivation is without a doubt the key factor of success for the challenging and innovative organization. With no motivation, workers can effortlessly false their motivation, but, in the long run, the organization gets no more by means of a transparent goal setting process and unbiased feedback offered by managers. The report analyses Qantas’ history of downsizing as well as outsourcing, taking into account the HRM impacts on motivation and performance management in addition to employee relations. Further, the report develops a suitable HRM policy for Qantas for the next twelve months. Contents Human Resource Planning and Performance 1 Table of Contents 2 Executive Summary 3 Contents 4 1.0 Introduction 5 2.1 QANTAS’ History of Downsizing and Outsourcing 5 3.0 Findings 7 3.1 HR Policy for Qantas 8 4.0 Conclusion 10 4.1 Recommendations 10 5.0 References 12 Appendices 14 1.0 Introduction As mentioned by Chipunza and Berry (2010), a workforce that is qualified and motivated is vital for increasing the productivity so as to contribute to the realization of the organisational targets. However, managers experience challenges with regard to how to motivate the workers, with research indicating that motivation is perceived differently by managers and their employees. Besides that, there is a gap in knowledge concerning motivational factors which are crucial for employees in settings that are poor resources. For years, success has been defined by the ability to maintain tight-fisted control over every process, activity, and function in an organization. This way of thinking was attributed to internal operations, especially by means of centralized management that offered a greatest level of management control over productivity as well as efficiency (Dieleman, Toonen, Touré, & Martineau, 2006). Nevertheless, fresh competitive pressures in addition to a distressed world financial system has coerced numerous organizations to re- strategize in developing internal organizations. Currently, managers have to analyze business processes as well as functions rooted in efficiency and productivity contributions, and crucially, reflect on their Organisational strategic value. Downsizing and outsourcing have turned out to be a vital element that assists companies develop as well as sustain competitive ability. In this report, downsizing and outsourcing will be analyzed by mainly focusing on Qantas. 2.1 QANTAS’ History of Downsizing and Outsourcing In 2011, QANTAS announced its plan to cut flights and jobs so as to combat the ever increasing costs of fuel as well as the fiscal effect of natural catastrophes. Qantas plan was to combine three heavy engineering bases; two at Victoria (at Avalon that had 700 employees, and at Tullamarine that has 400 employees; together with contractors), and at Brisbane airport that has 400. Besides that the number of flights to popular destinations like New Zealand and Japan were reduced so as to allow for the downsizing of the aircrafts (Schneider, 2011). Besides that, in 2013, Qantas Airways made public its intention to eliminate an additional 1,000 jobs from its workforce based in Australia, and this was after the company’s global operations registered almost $300 million in losses (Cogan, 2013). In 2014, Qantas moved to realize its objective of downsizing 1200 jobs before the end of June in 2014 as well as a job cut of 5000 before the end of 2017 (Creedy, 2014). The economic woe enclosing Qantas has led to its major downsizing within the company, and this has involved retiring planes and dropping routes as its restructuring strategy intended for cutting cost. In 2006, Qantas finalized a seven-year life contractual agreement with two Indian companies, Tata Consulting Services as well as Satyam Computer Services Limited to move its IT applications maintenance and support. In this outsourcing plan, Qantas spent a $191 million that resulted in loss of 300, in what was regarded as the biggest offshore IT deal in the history of Australia. In this outsourcing plan, Tata Consultancy Services gained $120 million while Satyam Computer Service received $71 million (Deare, 2006). In 2008, Qantas outsourced work for eleven aircraft to John Holland, a local contractor; thus, terminating its overseas maintenance work. The outsourced maintenance checks were before then carried out by Qantas' own certified engineers at Tullamarine. In 2014, Qantas outsourced its heavy maintenance base which was based in Avalon Airport, in victoria that resulted in the closure of the base. The outsourcing plan saw heavy maintenance on both the Airbus A380 and the 747, Qantas’ biggest planes done overseas 3.0 Findings In the recent years, Qantas has experienced an enormous Organisational change, which has been characterized by an undeviating advancement and variations between conventional structures of the organization concentrated on HR functions as well as industrial relations. As mentioned by Galetic, Aleksic, and Maja Klindzic (2011), benefits and reasons result in the organizations’ downsizing and outsourcing activities, mainly for the reason that outsourcing may result in costs reductions. Beside the far-reaching improvement in performance level, outsourcing reduces time to market, improves innovation, industry knowledge as well as resources, result in improved core capabilities, and fortifies competitive positioning (see Appendix one). Still, the shortcomings include the risk of over-relying on leakage of supplier information, inability to properly estimate a hidden cost in addition to the decrease in competitive ability. As indicated by Elmuti, Grunewald, and Abebe (2010), successful outsourcing comprises of examining numerous crucial dimensions, which includes the outsourcing process relative capability, outsourcing contribution to competitive advantage as well as the possibility of resourcefulness from this process. However, a number of organizations as stated by Elmuti, Grunewald, and Abebe (2010) fail to make the most of the opportunities presented by outsourcing. As in Qantas case, the decision to outsource activities is mainly rooted in cost reductions rather than the outsourcing decision effects on the organizational long term capabilities. In a number of cases, organizational processes and activities that are vital to the organization’s competitive advantage are outsourced and with time it results in relinquishing of crucial knowledge sets as well as capabilities. Galetic, Aleksic, and Maja Klindzic (2011) suggest that organizations must be careful when outsourcing given that several initiatives fail to deliver and exhibit the anticipated benefits and cost reduction. Most downsizing plans according to Galetic, Aleksic, and Maja Klindzic (2011) result in strikes and low morale amongst survivors (remaining workers) while outsourcing may fail because of unsuitable strategy as well as poor implementation (see Appendix two). Downsizing often takes place after the organization outsources its main activities and processes. Downsizing as mentioned by Elmuti, Grunewald, and Abebe (2010) is critical for the organization in its quest to reduce operation costs and improve performance. Whereas such changes will eventually result in significant gains for the companies, downsizing corporate experiences’ analysis exhibits that employee motivation is often impacted negatively, and may result in poor performance. Downsizing shortcoming arises from the fact that the organization loses experience, knowledge, skills, expertise, and beneficial relationships, every time an employee loses job because of downsizing and outsourcing. 3.1 HR Policy for Qantas Equal Opportunity Qantas is an equal opportunity employer and so it does not tolerate both indirect and direct discrimination against an on thy worker based on ethnicity, race, sexual orientation, sex, religion, disability, age, or marital status. Managing Diversity Recognize individual and cultural differences in the place of work, so stress the need to eradicate unfairness in areas like promotion, recruiting and selection, performance appraisal, learning opportunities, and pay. Employee Development Committed to the incessant development of the abilities as well as skills of workers so as to capitalize on their contribution in addition to offer them the chance to improve their skills, advance their careers, achieve their potential as well as boost their employability both outside and within the organization. Health and Safety: Prepared to handle emergencies such as explosions and fires; health hazards caused by the utilization of equipment in the engineering department; risks attributed to operating machines; ready to maintain faulty machines and maintain buildings. Reward Offering a pay system that is equitable where there is equal pay for equal value work and where contribution, skill, competencies and performance are rewarded. Moreover, the guidelines to employee benefits provision, the significance attached to the non-monetary rewards attribute to accomplishment and recognition .has been highlighted Shared Responsibility All workers have a different responsibility in handling people, regardless of whether it is a team’s leader or a peer. 4.0 Conclusion In conclusion, it has been argued that outsourcing and downsizing strategies may be utilized as an effective channel for competitive positioning when companies human resources are considered as business resources. Still, outsourcing and downsizing are not collective solutions to problems within the organization and they are not easy or simple to support their implementation. Implementing these strategies is a multifaceted task that needs commitment and time; still, the payoffs may be very big. Performance, motivation, productivity, customer satisfaction, and quality can be realized when downsizing and outsourcing programs are tied to effective strategies for human resources. 4.1 Recommendations Before downsizing and outsourcing, Qantas management must be knowledgeable of the context through which these processes are happening. This knowledge makes them efficient in deciding the procedures, processes and criteria to be espoused during downsizing and outsourcing. Importantly, employees’ treatment during and after downsizing must at all times be differential, and this can result in the consolidation of commitment towards the new Organisational structure. Besides that, Qantas managers should carefully navigate through the process of downsizing and maintain a balance between the victims (people losing their jobs) and survivors (those who remaining). That is to say, the downsizing elements must be with handled with sensitivity so as to make certain that the survivors’ psychological outcomes are positive and also to ensure the organization performance is positively impacted. Qantas should provide its workers with clear attainable goals and ensure there are quantifiable standards ready to assess their performance. Besides that, the management should always offer continuous feedback since this helps the employees understand the actions and decisions taken by the company (see Appendix three). Besides that, alternatives to downsizing such as voluntary severance programs as well as early retirement packages can be implemented so as to improve motivation and performance of the workers. Still, Qantas can improve its competitiveness, productivity, and efficiency through quality programs like Six Sigma, where workers are empowered through progressive HR strategies, which promote worker stability and loyalty. Since outsourcing results in downsizing, when Qantas is outsourcing its processes and activities it should consider; the view of the customers on outsourcing, physical assets and capabilities needed to carry out the outsourcing function, world class abilities, technological requirements, and importantly its effects on employee motivation and performance. 5.0 References Chipunza, C., & Berry, D. M. (2010). The relationship among survivor qualities – attitude, commitment and motivation – after downsizing. African Journal of Business Management, 4(5), 604-613. Cogan, J. (2013, December 6). Qantas Airways announces another 1,000 job cuts. Retrieved from World Socialist Web Site: http://www.wsws.org/en/articles/2013/12/06/qant-d06.html Creedy, S. (2014, February 27). Qantas to slash 5000 jobs as it posts $252m first half loss. Retrieved from The Australian: http://www.theaustralian.com.au/business/aviation/qantas-to-slash-5000-jobs-as-it-posts-252m-first-half-loss/story-e6frg95x-1226839160203 Deare, S. (2006, November 9). Qantas hands Indians AU$191m in contracts. Retrieved from ZDNet: http://www.zdnet.com/article/qantas-hands-indians-au191m-in-contracts/ Dieleman, M., Toonen, J., Touré, H., & Martineau, T. (2006). The match between motivation and performance management of health sector workers in Mali. Human Resources for Health, 4(2), 1-7. Elmuti, D., Grunewald, J., & Abebe, D. (2010). Consequences of Outsourcing Strategies on Employee Quality of Work Life, Attitudes, and Performance. Journal of Business Strategies, 27(2), 177-203. Galetic, D. L., Aleksic, A., & Maja Klindzic. (2011). Outsourcing and Downsizing As Modern Organizational Trends in Croatian Companies. The Business Review, 17(1), 220-227. Schneider, K. (2011, March 30). Qantas to cut flights, staff due to rising fuel costs. Retrieved from News Limited : http://www.news.com.au/travel/travel-updates/qantas-to-cut-flights-staff-on-rising-fuel-costs/story-e6frfq80-1226030599725 Appendices Appendix One: Conceptual Model of Strategic Performance Measures Appendix Two: The relationship between presence of outsourcing & downsizing presence and strategy-structure alignment, % of companies Appendix Three: Involving employees in outsourcing plan: Read More