In conducting a SWOT analysis and examining the business strategy of Qantas, it is obvious to see a number of HRM implications that are impacting the organization. Throughout the Qantas strategy for 2011, the focus has been on improving the ‘customer service and improving sales’ whereas the 2010 strategy was focused on delivering profits to shareholders.
Both the 2010 and 2011 business strategies for Qantas have implications on the HRM within the organization. These implications have been identified as:
- Cultural changes to achieve business objectives
- Reduction in the headcount to achieve profit targets
- Reducing overheads whilst still trying to deliver customer satisfaction
- Further job cuts due to economic uncertainty
- Job insecurity
- Jeopardizing a core business strength being safety by taking the maintenance of the aircraft’s offshore
- Bad publicity leading to poor public perception.
- Poor working relationships between management and the unions.
- Components of company structure not in line with skills and training i.e. Qantas can’t deliver a key strategy, which is “passionate people delivering an exceptional experience through customer service.
These implications can have various impacts on an organization and more importantly the employees within that organization. For example, as recently as May 1, 2012, the Sydney Morning Herald reported that Qantas was looking to ‘ax’ 1000 jobs, which was in line with their 2012 strategy. Announcements such as this can create a sense of uncertainty and can impact both motivation and productivity. Furthermore, Lucas (2012) supports this when he quotes the Australian Workers Union State Secretary saying ‘our members are extremely anxious about this announcement – they are not in a good space.’ (SMH 2012)
In addition, the lack of job security associated with announcements such as this can lead to issues connected with retaining and also recruiting skilled employees. It is imperative that Qantas support these staff during this transition phase and put together measures to reduce the impact on their employees, shareholders and all stakeholders
Expand on these 4 Rs in relation to Qantas. Recruitment Retention Retraining Rewards
Lucas C., (2012) ‘ Qantas staff face anxious wait’, Sydney Morning Herald, 1 May, p. 4.
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