The paper "Human Resources Management of Jet Red Airline Company " is an outstanding example of a management case study. In the present competitive business industry, airline and tourism sectors remain the world’ s fastest-growing industries. As the change in the business platform, human resource managers are compelled to use different strategies to remain relevant and to sustain competition (Balogun 2006, p. 31). According to Sturdy & Grey (2003, p. 657), high cost of maintaining employees and others expenses has forced managers to cut the size of their workforce and look for other ways of reducing these expenditures further.
The process of downsizing and also reducing employee’ s salary and change, in general, has been met with resistance. This is what has also happened to Jet Red Airline Company, and it is from this perspective that the report is drawn. This report assesses the human resource challenges and issues that Jet Red Airline Company is facing, their corporate culture and how best these factors can be improved. 2.0 HR challenges and issues identified from the case study With globalization in the business arena, airline industry players like Jet Red Airline Company are facing various issues and challenges like such as high-cost base, bureaucratic public sector culture, uncompetitive labor practices, high wages and salaries in the industry, resistant trade unions and political factors (Stone 2013, p50).
According to the managing director James Miller, Jet Red is facing higher cost base compared to their competitors, bureaucratic public sector culture full of inefficiencies, irrational thinking and complex policies (Stone 2013, p. 50. Miller challenged the board that the company is highly unionized, restrictive labor practices and high salaries in the highly competitive industry yet their performance is declining. He cautioned them that if the situation is not contained, the company will be facing bankruptcy.
These issues were acknowledged by operations director Angela Wong and told the board that expand into the Asian market, cut the number of employees, do away with unprofitable practices, outsource maintenance and reduce company debt. Just as usual in any change process, various stakeholders were expected to resist because of job losses, poor work-life balance and lack of credibility. Human Resource Director Nalena Shuresh observed that trade unions are likely to lead on resistant to the argument that Jet Red Airline Company is paying less salary while forcing the joblessness (Stone 2013, p. 50).
Employee retention has normally been an issue which challenges human resource managers, that is retaining a talented workforce who are satisfied enough to remain with the organization. However, techniques that HR employs to keep its employees need going the extra mile in ensuring that the workforce is completely engaged, keen concerning their work and recognized for the inputs to the success of the organization(Stone 2005, p. 363). The engineering director Nick Campbell was also concerned with how the political situation may make the change process difficult to achieve (Stone 2013, p. 51).
He argued that the prime minister of Australia in his campaign promise to protect the right of trade unions and he’ s likely to stand with them on the matters of employees’ lay-offs. Wilkinson et al (2004, p. 303) argue that the political framework is one of the most difficult to assess, due to its powers to shape the platform of the employment relations and owing to its impacts on the other perspectives.
In this situation, the trade unions and employees were going to get the backing of the prime minister making the company not to enjoy the political context in Australia.