This introduction is discussing about the challenges that faced by Qantas in the year of 2011 and to appraise the strategic choices made by the company that related to HR planning and also how the strategic choice affect human resources planning. Besides, the report also describe about the recommendation that how to give advice to Alan Joyce to maintain the commitment of employees and how Alan Joyce implement HR planning. Qantas stands for ‘’Queensland and Northern Territory Aerial Service’’ and Qantas also known as ‘‘The Flying Kangaroo’’.
In Qantas, the operators all the way through Australia with major numbers of flights in Sydney, Perth, Brisbane and Melbourne. Nowadays, Qantas has become the Australia’s largest domestic and international airlines with much development and Qantas is the oldest airline in the world. In the year 2011, Qantas Airways has faced the greatest financial pressures during the global financial crisis. Its affect the international business losing lots of profits. Chief executive of Qantas Mr. Alan Joyce was reform irks engineers and he had described and that pilots are ‘‘stumbling-block’’ because of Qantas has surplus of pilots during global financial crisis. There are few of problem that makes him to restructure his employees.
For a view of theoretical perspective, this is to determine the allocation will be on the company structure, processes and human resources to meet and exceed the company’s strategic objectives. Besides, human resources of Qantas are the operations of making the most productive use of a company’s most valuable asset. Qantas refer that their goal is to make the best match between the employees and the number of jobs required by the need to balance the labor supply and demand. There are also including internal environmental and external environmental. Internal environmental factors will be influence to their activities, selection of these conditions, entities and events within an organization while the external environmental factors are those that will influence their activities out of the organization.
1. Strategic Choice
1.1 Reducing the aircraft maintenance.
Qantas chief executive Alan Joyce had stated that airline maintenance and repair cost has already over their cost, it will become the least efficient and most expensive in the world. Besides that, Mr. Joyce said that new maintenance regulations was released by the Civil Aviation Safety Authority to bring Australia into line with Europe recognised the tremendous advance in aviation technologies. Some of the maintenance costs are totally wastes, the cost of its heavy maintenance was more than 30 per cent higher than Qantas’ competitors, if the maintenance of the aircraft just once a week, but the engineering keep repairing two to three days a week, it will increase the company cost. For instance, Qantas will reduce 500 engineering jobs in Sydney to draw up the plans to reduce its bases for heavy aircraft maintenance in Australia from two to one.
About 200 of the latest job cuts will be to line-maintenance roles at Qantas jet base at Sydney Airport and the remainder mostly from heavy maintenance at Avalon Airport. In order to reduce this excessive maintenance, Alan Joyce has makes some strategic choice such as he will try to lead the engineering to repair the aircraft with an appropriate way. For example, when Mr. Alan Joyce leads the engineering, the engineering have to obey Mr. Joyce and they have to change their maintenance periods. Qantas chief executive Alan Joyce told the Senate investigating that every Qantas plane had maintenance to carry out on it and it was not only confirmed by local adjustor but Australia’s Civil Aviation Safety Authority. He said that every mistake was mended when it is found, and the level of mistake that take place at offshore maintenance bases was no greater than those made here.
1.2 Maintaining the company’s profit before and after tax. Underlying profit before tax for the year 2011 from $500 million increasing to $550 million, compared with $377 million of the year 2009 and 2010. To reduce the profit tax, Qantas Airways have to remove employee’s welfare or bonus during the global financial crisis. In 2011, Qantas Airways was amid losing money in high operating costs and intense competition from overseas operators. In order to figure out this problem, Qantas has to upgrade the aircraft from the smaller aircraft to the biggest aircraft, and shift the smaller aircraft passengers to the biggest aircraft, so that the profit tax will be improved. They have to improve their working capabilities therefore their can increase their turnover and profit tax will be reduce.
Besides, when the Australian dollar drop and the oil price also drop simultaneously, this is the best way to decrease the profit tax of Qantas Airways during the global financial crisis. Furthermore, Qantas put the loss before interest and tax for its international operations at about $200 million and the chief executive Mr. Alan Joyce said that he will expected ‘‘weaker result’’ was expected in the year 2011 and 2012. Alan Joyce said that we are progress a long-term strategy aimed at recovering competitiveness and profitability. The outcome of the review of its international operations was due at the end of the year 2011. Lastly, Qantas can try to co-operate with other airlines, when other airlines have face some problem and have less passenger during that period, they will shift their passengers to Qantas Airways therefore to decrease Qantas profit tax.
2. Human Resource Planning
2.1 Restructure the employees of Qantas Airways.
Chief executive Alan Joyce told that the company of Qantas have to retrench come workers because of they had excess of pilots and they still left a lots of annual leave, so that they have to clear the leave for the pilot and retrench those excess pilot. This is the best way to reduce their cost and reduce the extra payment of salary for the excess pilot. If the workplaces or that period needs staffs or pilots again, the company will hire back the old workers. During the global financial crisis, the company of Airways have to force the pilots to take unpaid leave and seek time out to work for other airlines.Besides, cut the pilots allowance also can help the company to reduce cost and also take this opportunity to early retire some senior pilot. . The influential pilots union has described the Qantas announcement as a “demolition job” which had failed to “follow through with a strategy for how it will grow the business”. For instance, the jobs to be cut in Sydney are mostly engineers who have been reconfiguring nine of Qantas 18-strong fleet of Boeing 747 to 400 aircraft. The revamp to the last jumbo will be completed by the end of year 2012. 2.2 How Alan Joyce reforms his irks engineers.
The chief executive Alan Joyce said that there was no need for licensed engineers to do transit checks on modern aircraft, for example, when pilot could not do this work. The Qantas dispute involves three separate unions, and CEO Alan Joyce is warning that more strikes will force him to sack workers and that striking baggage handlers and ground crew are putting the jobs of cabin crew and pilots at risk. Mr. Joyce will have to lead his staff in the efficiently way. He has to make sure his staffs are listening to his order. In order to solve this problem, Alan Joyce has the right to retrench some working inefficiently engineers. Besides that, Alan Joyce can decide the engineers to the right position in their workplace. He should caring for his employees, even that his employees are bad attitudes and inefficient during working. This is a best way for the top level manager to communicate to their employees in professional communication skills and they will easily to find out what problem of their employees faced.
If I were in a position to advice Alan Joyce, I would recommend him to support aging workforce to join together to create a new employment environment and give them Job opportunity. He should give his employees the best advice in the workplace and also try to find out their problems or what the trouble are they facing now and help them to solve their problem. Besides that, another point of recommendation is when the employees are not satisfied of their working environment, as the chief executive of Qantas Airways, Alan Joyce should encourage his employees to actively look for their favourite new working environment. During the end of the year, CEO should provide employees incentives, so that the efficiency of the employees during workplace would increase. In addition, chief executive Alan Joyce has to keep his promises in his workplace. If he did not honour the requests of employees, employees will doubt whether the chief executive can trust or not.
For implement HR planning, Alan Joyce has to think for some implement of human resources planning issues, such as what is the goal of his business, the status of human resources in Qantas Airways, whether the company has enough employees. Chief executive Alan Joyce should order the human resources manager to establish a resources table, the structure of the company’s employees have detailed records and analysis. Besides, CEO of Qantas Airways should also consider how to train employees in the right position and also taking into account the distribution of wages. During the global financial crisis, Alan Joyce should implement earlier retirement for senior employees. In addition, Alan Joyce should encourage his employees to clear their annual leave, if the employees did not clear their leave, it will increasing the cost rate. As the chief executive of Qantas Airways, he should sponsor his employees for some course, so that his employees can learn more knowledge and the employees will be more efficiently during their work time.
As the conclusion of HR planning, this report has been commissioned to discuss the challenges faced by Qantas in 2011 and to evaluate the strategic choices made by the company from a theoretical and practical perspective in relation to HR Planning. Qantas Airways also faced on the global financial crisis, so that they have to look for the better choice for their company and how these few choice affect the human resources planning. In main body, there will introduce and list down as strategic choices and implement human resources planning for Qantas Airways. For strategic choices, Qantas has two main points for sustain this strategic. It is reducing the aircraft maintenance and maintained the company’s profit before and after tax.
Reducing the aircraft maintenance of Qantas is to reduce their costs while maintain the company’s profit before and after tax is to help the Qantas company to maintain and reduce profit tax. For human resources planning, Qantas has two main points, it is restructure of Qantas Airways and Alan Joyce reform warning irks engineers. Restructure of Qantas Airways is to retrench come workers because of they had a surplus of pilots and they still left a big annual leave, so that to maintain the cost of Qantas Airways. Alan Joyce reform irks engineers is to make sure the employees can become more efficiency in their workplace. Therefore, recommendation is to give advice to Alan Joyce to treat his employees at workplace with a good attitude.
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