TABLE OF CONTENTS
1.1. Objective of Report
1.3. Definition of Key Report Terms
2. Main Report
2.1. Strategic Choices for HR Planning at Qantas
2.2. Maintaining Employee Commitment
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. The report also makes recommendations on how to maintain the commitment of employees while implementing HR Planning. 1.2 Background
In 2011, Australian based airline Qantas faced significant financial pressures following the global financial crisis. Its international business was making a loss and, according to the group CEO Alan Joyce, the airlines maintenance and repair costs were among the least efficient and most expensive in the world. Tough reforms and restructuring were therefore proposed. These issues presented significant challenges for Qantas in terms of HR Planning, which this report will discuss. 1.3 Definition of Key Report Terms
From a theoretical perspective, Human Resource (HR) Planning is the process of making the most efficient use of a company’s most valuable asset, its people. Allocation decisions are made in regards to company structures, processes and human resource to meet the company’s strategic goals. The objective is to make the best fit between the number of employees and jobs required, by balancing the company labour supply and demand needs (Aswathappa, 2005). The internal environmental factors are those conditions, entities and events within an organisation that influence its activities and choices. The external environmental factors are those outside the organisation that influence its activities and choices (Business Dictionary, 2011).
2. MAIN REPORT
2.1 Strategic Choices for HR Planning at Qantas
This section details how Qantas implemented strategic contingencies to facilitate the company’s strategic goals (from both a theoretical and practical perspective) and how these affected HR Planning. From a theoretical perspective, HR Planning in an organisation is affected by a number of factors (Durai, 2010): * Company future strategy – the strategy the company adopts in response to changes in the external environment. * Culture of the company – the beliefs and values of the company and its employees. * Competitive and financial environment – changes to economic, technological, competitive and labour markets. * Current organisational structure – the current situation in terms of management levels, capabilities and adaptability. * Quantity and skill level of human resource – the nature of job roles and skills within the organisation, ensuring the right people are in the right place, with the right skills, at the right time. The HR Planning process manages changes to the factors detailed above, by reviewing the current human resource situation within the organisation, then creating a future human resource structure to meet these changing needs. The steps within the HR Planning process are: 1) Review organisational strategy; 2) Assessment of the environment; 3) Completion of in-house review of human resource skill and inventory; 4) Forecast future needs; 5) Develop and implement plans (Durai, 2010). This will then either highlight an excess demand for labour, or an excess supply of labour. An excess demand can be managed through recruitment, or other options such as increased contract working hours, overtime or broadening of job scopes. An excess supply of labour can be managed through options such as a reduction in working hours and overtime, job sharing, forced annual leave, early retirement or redundancies. From a practical perspective, all of these theoertical elements would have come into...
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