Theorizing the Diffusion of International Human Resource Practices - Case Study Example

? Human Resource Management Human Resource Management Executive Summary The current economic crisis has created the need for Human Resource (HR) to reduce operational cost without cutting staff members. Organizations must ensure that their investment increases value both in the long and short-term period. An organization should work hard to minimize its operating costs and increase a flexible model that enhances growth and productivity. It is crucial for HR to utilize its expertise to increase growth and manage employees’ related issues. This report discusses various ways that Qantas can implement to reduce employee related costs. The report highlights some of the potential approaches that this organization can use to reduce operating cost. These include, understanding HR functions, using different tools such as technology to minimize operating cost, and understanding the core HR skills. Quintessentially, the organization should make valuable decisions to protect critical workforces such as procurement team and customer representatives and embrace ways to boost staff morale and shareholder confidence. The company should also find creative approaches that minimize employee related benefits and costs such as technology, which deliver considerable savings. Lastly, the organization should utilize existing talents to increase the company’s growth. Instead of hiring a new team, the company should motivate and retain potential and competent employee to increase productivity and growth. Introduction Background Founded in 1920, Qantas Airlines is the largest international and domestic airline in Australia and the second oldest airline that satisfies customers’ needs. The airline is located in Sydney, Botany bar, and New South Wales. Qantas is a term abbreviated from Queensland and Northern Territory Aerial Services Limited. Since its establishment, the company has been the world’s leading airline and the strongest brand. The company’s vision is to be the leading airline in the world. Quanta’s mission is to be the best airline that meets clients’ needs in a non-discriminatory manner while ensuring safety. In the modern society, this airline continues to provide best services to its clients and it is at the front of emerging the best over other competitors (Mayhew 2013, p1). Over the years, the company has had a strong workforce that provides excellence and quality services. It has also complied with all applicable regulations and laws governing airline industry in the highest level of integrity and ethics. Qantas aims to provide quality standards of safety, citizenship, services, and principles that promote a healthy and safe environment. Its vision is to be the best airline that attract a large number of clients and provide the best travel experience that is hassle free, comfortable, and enjoyable. The organization has also had a strong management team that focuses on improving productivity and growth in sales and revenues. However, just like other organizations, Human resource leaders encounter a wide number of daily challenges while running their department functions. The emerging issues such as workforce management, globalization, and legal compliances challenge the HR departments of Qantas Airlines. Fundamentally, meeting or solving the emerging issues requires deep acumen of HR best practices. It is also crucial for the organization to align its HR functions with the organization’s goals and objectives to reduce operating cost (Adeleye 2011, p255). Literature Review The company has had a superb reputation of maintaining its potential and frequent clients. Qantas airline provides quality services that attract clients across the globe. For the past years, the company has provided excellent services in operation, safety, reliability, and customer services. It has also created job opportunities having in mind, it employs over 40, 000 people with 90% of them located in Australia (DelCampo 2011, p14). The focus of Qantas’s HRM has been to develop skills in both operational and corporate environment that boost growth and productivity. The management team has a strong zeal to promote a healthy environment and workforce that work hard to achieve the set goals and objectives. The HRM ensures that employees are skilled, supported, and motivated to perform efficiently. The company have embraced opportunities that ensure employees are adequately rewarded and remunerated for their quality performance. Rewarding employees increases employees’ zeal and morale to work hard and attain the set reward. In so doing, this creates a strong pace for quality performance and retains the best and competent employees. The human resource management recognises the contribution of competent and skilled workforce in providing excellent services and reducing operational cost. Instead of hiring and recruiting more employees, the company work hard to retain and motivate competent and best employees. The HRM has a strong approach to create a favourable environment that motivates and support people to do their best. Basically, the company has an ongoing approach of managing performance individually on a tem level. The HRM has been on the lead to support and encourage professional development and productivity in the workplace through identifying competent employees and approving education and training courses that foster growth. The HRM builds and foster a strong organizational culture, which is free from bullying, harassment, and discrimination. The management team provides equal recruitment and employment opportunities without considering irrelevant characteristics such as disability, race, and gender. The HRM team foster a strong workforce that respect and tolerate human rights and cultural differences. The team treats its people, customers, and wider community with respect and dignity. The management team values constructive leadership, which promotes equality in the workplace. Managers are empowered to conduct their duties and responsibilities effectively. The strong management team impacts the company to achieve its goals and objectives. The management team has worked hard to promote the wellbeing of employees and customers. For instance, the company ensures that employees are working in a good and safe environment. There is adequate security in the business environment, which attracts many clients. The company has maintained high standards in promoting employees and customers’ health. Qantas operate in an environment that is adaptable and free from security threats. The company relies on improvised monitoring devices that promote security and safety. For instance, the company utilize surveillance cameras, screening equipment, X-ray screening, and metal detectors to alert the company when to take actions. Additionally, the management has strict measures that detect hijackers and terrorists. It set clear guidelines and principles that detect criminal, terrorists, and hijackers. Passenger profiling is a core method used to add security measures. The company believes that the greatest threats to the environment are explosive devices mostly placed in luggage. In today’s society, there has been a need for airline companies to invest in security. Insecurity has become a major concern in the airline industry in that most terrorists hijack and kill passengers. With the high rate of insecurity in the world, Qantas has utilized technology to detect and prevent threats of terrorism and hijacking (Gilmore & Williams 2009, p5). Qantas airline attracts many clients globally. It has tremendously converted new clients to potential clients. The company deliver quality customer services. The company has created a strong ground where clients can air out their comments and offer suggestions on how to improve growth. The company’s priority is to understand and meet customers’ needs, with a strong aim of retaining potential and frequent customers. The company has embraced different strategies to attract and win clients. For example, clients have opportunities to air their compliments and complaints. Employees are encouraged to deliver quality customer services that help the company to emerge the best over other competitors. In the era where technology is advancing at a high rate, the company has recognized the importance of strengthening its communication channels. Social media is a valuable tool used by the company to improve customer care. This company has also made a significant contribution to the community, tourism industry, and sport field. Since its establishment, this airline has been strengthening and building the community. For instance, it has enable tourists from one locality to another regardless of geographical barriers (Klikauer 2012, p20). The company has a strong workforce with adequate skills to operate different tasks. In recruitment process, the human resource department select competent and qualified applicants to perform different tasks. The company ensures that employees have adequate skills to complete different task. The main focus has been to prepare a strong trend on performance and productivity. As the organisation competitors continue to expand, the company has established the need to have competent and skilled workforce that increases productivity and performance. There are a number of competitors both domestically and internationally. Domestically, the company is challenged by Tiger and Virgin airlines. The two airlines dominate the market offering prices that are affordable to clients. Despite the company facing stiff competition domestically, Qantas has been the most profitable airline in Australia, which attracts a wide number of clients with affordable, quality, and friendly services. However, there are fewer competitors internationally due to the fact that most governments regulate where and when an airline can fly. Some of international competitors include British and Virgin airlines (DeNisi & Griffin 2005, p13). Basically, Qantas operates within restrictive legal constraints. According to DelCampo (2011, p55), the airline industry has tremendously changed over the past years. In Australia, many reforms have influenced the industry on its operational services. Basically, there are two policies governing Qantas. The first framework is commonwealth that ensures that only Australia-based airlines have the opportunity to carry domestic passengers. Secondly, the Australian government has the responsible to oversee and enforce competition. With these policies in mind, Qantas airline ensures that its services are affordable and friendly to attract many clients. The legal constraints create the need for Qantas to embrace every opportunity to attract and retain frequent and potential clients (Domsch & Lidokhover 2006, p12). Issues Raised in the HRM department After a deep investigation of Qantas airline, this report compiled the following results. Primarily, as technology continues to peak, the HRM department encounters a number of challenges related to sourcing and recruiting visionary team with the cultural fluency that increases productivity and growth. There has been a high concern of how many organizations are flourishing globally. At this point, the HRM department has embraced every opportunity provided by technology to assist the organization achieves its goals and objectives and emerge the best over other chief competitors. The HRM team ensures that it has a strong visionary team that understand the company’s goals and objectives and work hard to achieve those goals. Secondly, complex legislation has also been a major challenge affecting the HRM department. Compliance with the state and federal employment laws poses a major challenge to the HR. It has been complex to constantly monitor evolving laws about medical privacy, sexual harassment, and discrimination. To fully comply with the set rules and regulations, the HR has continually maintained its knowledge and expertise of the issues related to legal compliance. Thirdly, multigenerational diversity is a major challenge facing the HRM department. This is based on the fact that, the organization consists of different workers from different backgrounds. In this context, a research conducted by Domsch & Lidokhover (2006, p65) reveals that, any given workforce is comprised of four different generations. The silent generation that are born 1945 and earlier, baby boomers, born between 1946 and 1964, generation X, born between 1965 and 1980, and Millennials or Generation Y, born after 1980. The management for workers could vary because every group has its way of understanding things. Communication may also vary depending on age. For instance, in most cases silent generation may prefer face-to-face interaction from the Human Resource Management. However, Generation Y may prefer electronic communication to face-to-face interaction. With this in mind, the emerging issues for HRM is training leaders to adapt the best management styles that suit employees’ motivational needs depending on their distinct generation. Fourthly, employee retention has been a major concern that challenges human resource leaders. As airline industry becomes competitive, there has been a need for Qantas to keep talented employees content enough to stay in the company. The methods that Human resource uses to retain competent and talented employees require hardwork and commitment to ensure that workers are fully enthusiastic and engaged to fulfil the company’s success. Typically, it takes more money and resources to motivate talented employees through compensation and benefits. It is complex for the HRM to allocate adequate funding to show appreciation for employees’ input and talents. Findings and analysis This research required gathering appropriate data from compiling literature review to analyze and arrive at a complete understanding of human resource practices in Qantas airline. This report hoped to shed light on the fact that, the HR can bring in skills and tools that help the organisation attain its cost reduction goal.The research utilized quantitative data collections. The expected goal of the project was to provide facts on the most preferable methods to solve the emerging issues in the HRM department. In this case, the report prepared a set of questionnaire to the HR executives. The data collection tools included interviews together with practical observation or analysis of website operations of the companies in relation to e-commerce and e-business. At this point, it ought to be understood that interviews were only conducted to top managers who were at a better position to understand human resource practices in that industry. The main questions posed to the executive managers included how the HRM of the Qantas airline industry can do to eliminate the emerging issues in Human resource, how the organization can reduce its operational cost, and how to improve productivity. The goal of the study was to establish the principles, development and implementation of HRM strategies that can be used by the organizations to augment growth (Domsch & Lidokhover 2006, p12). The other objective was to offer a platform under which entities can take full advantage of e-commerce and e-business to benefit in terms of customer base, sales, efficiency in payment systems, communication and competitive edge among other advantages. After the evaluation, the top executives of the organization agreed that every company is unique on the way it manages and distributes its resources. Those in strong position have the advantage to become more strategic and reduce operational cost. The HRM department must help the company to make critical decision that reduces operational cost. First, the HRM department should protect and identify the organization’s workforce. HR should help the business lessen salaries and employee cost. It is crucial for the HR management to identify critical workforce segments for the company and eliminates those that do not add value. The company should work hard to retain competent and potential employees who add value and augment growth. The HR department should identify where to reduce cost and put in place value (Gilmore & Williams 2009, p12). The management team agreed that the organization can reduce its employee cost by rewarding competent employees who add value and increase work performance. In so doing, the company would eliminate the need to recruit a new team or workforce. HR activities can meet the CEO’s assumed directive measure to reduce employee associated cost without cutting staff numbers. For instance, HR should consider reducing benefit packages such as staff canteens and gyms and increase bonus schemes and rewards. The company can make substantial savings without cutting or discouraging employees. In such a case, employees would accept bonus and reward schemes and many would work hard to attain them. The HR can use existing talents to retain competent employees. This would be a good opportunity to improve potential employees who have skills and experience without looking for new employees in the marketplace (Domsch & Lidokhover 2006, p60). For a successful observation, this study utilized a number of technological tools to evaluate, investigate, and monitor the human resource practices in Qantas airline. The technological tools included mobile technology, electronic health records, surveillance cameras, and computers. In the first step, the research utilized mobile technology to investigate how human resource managers communicate in the clinical setting. This technology helped to gather facts and information about the duties and responsibilities of Human resource managers in relation to communication. Other technological tools used were surveillance cameras, which helped this report to gather and observe the human resource trends and practices for the past years. From the findings and observation made, it is evident that HRM department plays a crucial role in improving the company’s growth as shown in the appendix 1. Therefore, it is crucial for the HR leaders to be fully equipped with the skills and knowledge required to run the organization successfully. This is beneficial because it lays a strong ground for the HRM team to respond to every challenge that emerges in the airline industry. It is crucial to note that, successful airlines companies have integrated loyalty schemes to address and boost customer relationship and interactions. This strategy has enabled Qantas to develop marketing and promotion campaigns that augment growth and profitability (Riley 2012, p55). The HRM department have utilized loyalty schemes to boost customer-retention levels. As the business world become competitive, HR leaders have recognized the need to reward the most valued customers. As a result, this has enhanced profitability and converted new clients to potential and frequent clients. The industry has implemented various programs such as discount, rebate, and points program. Often, consumers receive instant discounts when shopping, and in turn, this increases their spending habits. Discount programs have created a platform where consumers enjoy favourable prices and impact the industry’s growth. Rebate programs have played a significant role in increasing consumers’ spending. Basically, consumers accrue benefits from their purchases and receive their profit after a given span of time. This increases consumers’ spending in that, many accumulate financial benefits from the company’s programs. Points programs have augmented growth in the industry. Often, consumers obtain points from buying goods and services and thereafter they obtain discounted or free goods and services. In so doing, this increases sales and revenues and retain potential and frequent clients (Domsch & Lidokhover 2006, p77). Through CSR programs, the organization has been in a better position to fulfil the desires and needs of the society. Specifically, this organization has worked hard to ensure that it is working in accordance with laws and regulations set by the government. The organization’s overriding goal has been to maximize profits, to maximize investor returns, and ultimately benefit the company as whole. Typically, legal responsibilities ensure that corporations comply with laws and regulations set by the government to control competition in the marketplace. The CSR programs have allowed the organization to conduct its business practices in accordance with moral and ethical standards acceptable in the society. Although the standards may vary according to time, the overall base remains the same. Social responsibility of the CSR has protected and improved the welfare of both business and society by complying with moral, legal, and ethical actions (DeNisi & Griffin 2005, p55). Recommendations To fully achieve the organization’s goals and objectives, the HRM team should work hand in hand with employees to increase productivity. Typically, HR leaders should work hard to create a strong workforce that understands the company’s goals and objectives. The HR can achieve this by motivating and retaining competent employees who add value to the organization. Instead of increasing employee costs, the HR can choose to reward best employees in the company. This scheme would motivate employees to work hard and in turn, the company would accomplish its set goals and objectives (DelCampo 2011, p10). Secondly, the HR could optimise technology, which could increase efficiency and minimize operating costs. The use of technological tools could increase work performance without considering the high cost related to that department. Thirdly, the HR could utilize a flexible model that allows the organization to do what is essential without borrowing or buying HR skills. Fourthly, the company could consolidate finance, HR, and IT department into a multi-functional department, which in turn could offer great economic scales (Collings & Wood 2009, p55). HR can help the organization identify the critical workforce that requires to be rewarded. The company may utilize the strategy of rewarding the best department annually. Instead of giving benefits to all employees, the HR may increase good communication channel. Communication is an intangible attribute that makes a company to succeed. Open communication increases a sense of belonging, satisfactory, and motivation. It makes employees understand the company’s missions, values, and goals and all work together to accomplish the intended goals. The HR may inform employees on why the company may have chosen to reduce some employee benefits. Effective communication would help employees understand how to complete their assigned duties effectively (Cascio & Boudreau 2012, p33). Fifthly, the HR can reduce activities with high cost without cutting staff members. The management team may use different approaches to build employees’ experiences and skills. Training employees could help the company achieve its goals and objectives. It can create a strong team that embraces every opportunity to make the organization better. Training is the most applicable tool that HR can utilize to educate its employees. The HR could invest more on training and development for motivational reasons. This would make the organization not to cut its staff members. It is important to understand what make, satisfies or dissatisfies employees. Additionally, the company should carefully analyze and plan its training needs to have a tremendous influence and impact on the employee’s performance. Thus, this report concludes that HR could reduce employee related benefits and cost without cutting staff members. The company should embrace every opportunity to empower employees and minimize cost that would affect the company’s growth (Weller 2007, p138). Conclusion The success of a strategy depends on the success of its implementation. The implementation of recommendations is not a one-step process as it involves a number of steps that need to be effectively followed. In addition, all the organizational members need to be involved from the top management to the employees since they are all part of the organization’s operations. The first step should be the communication of recommendations to all members. After this is done, meetings should be held to debate on the recommendations. If a majority of people support it, then the decision on the resources required both financial and non-financial resources are identified. Monitoring and evaluation should be done to establish whether the implementation is successful (Cascio & Boudreau 2012, p22). Lack of commitment and cooperation are some of the factors that might hinder the successful implementation of recommendations. Appendices The following appendix portrays the management team discussing the major issues affecting the organization Retrieved from http://smallbusiness.chron.com/emerging-issues-hr-58709.html Appendix 2 The following appendix portrays how the organization is committed to providing best services in Australia. Retrieved from www.govconwire.com Bibliography Adeleye, I. 2011, "Theorizing the Diffusion of International Human Resource Practices: Towards an Integrated Conceptual Approach", International Journal of Business and Management, vol. 6, no. 12, pp. 254-269. Cascio, W. F., & Boudreau, J. W 2012, Short introduction to strategic human resource management, London, Routledge. Collings, D. G., & Wood, G 2009, Human resource management: A critical approach, London, Routledge. DelCampo, R. G 2011, Human resource management demystified. New York, McGraw-Hill. DeNisi, A. S., & Griffin, R. W 2005, Human resource management. Boston, MA, Houghton Mifflin. Domsch, M., & Lidokhover, T 2006, Human resource management in Russia, Aldershot, Hants, England, Ashgate Pub. Gilmore, S., & Williams, S 2009, Human resource management, Oxford, Oxford University Press. Klikauer, T. 2012, "The Ethics of Employment Relations and Human Resource Management: Kohlberg's Seven Levels of Morality", New Zealand Journal of Employment Relations (Online), vol. 37, no. 2, pp. 1-20. Mayhew, R 2013, Emerging Issues in HR, Retrieved from http://smallbusiness.chron.com/emerging-issues-hr-58709.html Riley, J. 2012, "Bargaining Fair Work Style: Fault-lines in the Australian Model", New Zealand Journal of Employment Relations (Online), vol. 37, no. 1, pp. 22-29. Weller, S. 2007, "Strategy and the Contested Politics of Scale: Air Transportation in Australia", Economic Geography, vol. 83, no. 2, pp. 137-158. Read More