Qantas Case Study: Environmental Factors Affecting Qantas Hr Managers
Which environmental factors will have the greatest impact on HR planning in the next five years for Qantas?
QANTAS 5 year plan-
Introduction – the 5 Year Plan
In a press release regarding Qantas’s future in August 2011, CEO Alan Joyce stated that Q’s 5-year plan began firstly by “returning Qantas to profitability”, and the hope that revenue will “exceed the cost of capital on a sustainable basis”.[1] Joyce’s plan is premised on four pillars: Opening gateways around the world, growth in Asia, being best for global travelers, and creating shareholder value.[2] As an industry in which personnel separates one company from its competitors,[3] and one with an ever-changing internal and external environment, human resource (HR) managers must administer the employment needs of the company in light of the current economic, demographic, technological and social trends in which they operate.[4] HR planning[5] becomes crucial in such a volatile industry to ensure that Qantas can adequately cope with the changing global landscape, and still maintain high quality for its customers. Given that staff expenditure is the most expensive outlay in Qantas’s operation,[6] and Joyce has emphasized the need for profitability and quality service, HR is increasingly seen as a strategic partner in attaining company goals. As such, managers must forecast the environmental trends external to the business, and plan pursuant to achieving company objectives.
The economy and opportunities for expansion
Qantas’s ability to fulfill its targets of shareholder value and profitability will be largely shaped by Qantas’s forecast of the economic climate, and HR planning in response to these predictions.[7] The forecast of further economic downturn, rising fuel costs and wage increases in Australia will all influence HR’s strategic planning in order to ensure the achievement of company goals.
As Asia emerges as the global economic powerhouse, Qantas has foreseen opportunities for
QANTAS 5 year plan-
Introduction – the 5 Year Plan
In a press release regarding Qantas’s future in August 2011, CEO Alan Joyce stated that Q’s 5-year plan began firstly by “returning Qantas to profitability”, and the hope that revenue will “exceed the cost of capital on a sustainable basis”.[1] Joyce’s plan is premised on four pillars: Opening gateways around the world, growth in Asia, being best for global travelers, and creating shareholder value.[2] As an industry in which personnel separates one company from its competitors,[3] and one with an ever-changing internal and external environment, human resource (HR) managers must administer the employment needs of the company in light of the current economic, demographic, technological and social trends in which they operate.[4] HR planning[5] becomes crucial in such a volatile industry to ensure that Qantas can adequately cope with the changing global landscape, and still maintain high quality for its customers. Given that staff expenditure is the most expensive outlay in Qantas’s operation,[6] and Joyce has emphasized the need for profitability and quality service, HR is increasingly seen as a strategic partner in attaining company goals. As such, managers must forecast the environmental trends external to the business, and plan pursuant to achieving company objectives.
The economy and opportunities for expansion
Qantas’s ability to fulfill its targets of shareholder value and profitability will be largely shaped by Qantas’s forecast of the economic climate, and HR planning in response to these predictions.[7] The forecast of further economic downturn, rising fuel costs and wage increases in Australia will all influence HR’s strategic planning in order to ensure the achievement of company goals.
As Asia emerges as the global economic powerhouse, Qantas has foreseen opportunities for
Bibliography: Books: Stone, ‘Managing Human Resources 7th edition’ (2010), J.Wiley & Sons. John Brahman “Human Resource Planning” Olive Lundy and Alan Cowling, ‘Strategic Human Resource Management’ (1996), Routledge S Holloway, ‘Changing Planes: A Strategic Management Perspective on an Industry in Transition: Volume One: Situation Analysis’ (1998), Ashgate Publishing Ltd Journal Articles: R Taylor, ‘Evaluating an Instrument Designed to Assess Job Satisfaction of Airline Passenger Service Staff’ (2004), Research and Practice in Human Resource Management, 12(1), 172-183. P Reilly ‘Human Resource Planning: an Introduction’ (1996) Report 312, Institute for Employment Studies Monica Belcourt, ‘Outsourcing – the benefits and risk’ (June 2006), 16 human resource management review 269-279 Brian S. Klaas et al, ‘HR outsourcing and its impact: The role of transaction costs’ (1999), 52 Personnel Psychology 113-136 JB Quinn, Strategic outsourcing: leveraging knowledge capabilities (1999), Sloan Management Review Media: Alan Joyce, “Building a stronger QANTAS – new international strategy” (16 August 2011), accessed 18/03/2012 at http://www.qantas.com.au/travel/airlines/media-releases/aug-2011/5157/global/en [10] Monica Belcourt, ‘Outsourcing – the benefits and risk’ (June 2006), 16 human resource management review 269-279 [11] JB Quinn, Strategic outsourcing: leveraging knowledge capabilities (1999), Sloan Management Review [12] James Quinn et al, ‘Strategic Outsourcing’ [13] Matt Sullivan “QANTAS looked at farming out jobs” (2011), Sydney Morning Herald 24/10/2011 [20] Katherine Jiminez, ‘Dallas hub opens new horizons for Qantas’, The Australian 24/03/2011 [21] S Barrientos, ‘Globalization and ethical trade: assessing the implications for development’ (July 2000), Journal of International Development 559-570 [26] P Reilly ‘Human Resource Planning: an Introduction’ (1996) Report 312, Institute for Employment Studies