Qantas Airline | HR Strategy and Environment – Assignment Help

According to Hervas-Oliver (2013), the environment in which any organisation operates is changing rapidly and thereby becoming turbulent. Although the environment is complex, however, it has certain key elements including political, economic, socio-Cultural, and technological factors (Sammut-Bonnici and Galea, 2015). As a result, organisations need to work on strategies to develop sustainable competitive advantages. These strategies involve multiple elements that are interconnected and influence each other. One such element is the Human Resource strategy of an organisation that plays a crucial role in determining the organisation’s response to the changing environment (Hervas-Oliver, 2013). The impact on HR strategy of one such organisation (Qantas Airlines) due to the changing environment (as represented by four key elements) is analysed below. 

Political: Qantas being the flagship carrier of Australia is influenced by the political dynamics between Australia and other countries. Healey (2016) argued that the leadership team of the organisation has worked on establishing partnerships with other airlines and the HR team has developed strong communication culture so that partnerships with other organisations can be maintained (Healey, 2016).

Economic: The airline industry faces two key economic problems- the increase in the cost of fuel and the adverse movement in currency exchange. These economic problems result in significant losses for the company (Healey, 2016). The company had to respond by reducing the headcount significantly to reduce overall costs. Also, the organisation focussed on achieving the balance between strategy and cost in the short-term and strategy and people (and culture) in the long-term. The above balances were achieved by focusing on the efficiency in customer operations (Healey, 2016). 

Socio-cultural: Bruce (2016) identified that Qantas was facing severe losses in the early 2010s and therefore the management came up with a transformation plan. To deliver this transformation, the HR approach of the organisation was changed. As per the new approach, business partners (employees) were assigned to tasks that met their individual capability and aspirations and were also a priority for the business. The new approach ensured higher utilisation of people, accelerating their experience development that created an engaged and capable team, thereby making the organisation more flexible and agile (Bruce, 2016). 

Technological: Technology plays a key role in the airline industry as the aircraft performance can play a major role in influencing fuel cost and features and amenities offered to passenger influence the attractiveness from a consumer perspective. However, as Healey (2016) identified there is a need to integrate technology in daily operations so that employees can become more efficient. Therefore, Qantas provided iPads to all customer service managers and front-line duty managers (at airports as well as on aircraft). The organisation uses an app ‘Red App’ that connect employees to different aspects (sales channels, customer feedback channel, and performance monitoring channels). The rationale behind using this technology is to be in constant touch with the team working on the front-line, irrespective of the airport out of which the team is based out of (Healey, 2016).

Based on the above discussion it can be inferred that the HR strategy of Qantas has played a key role in organisational response to environmental changes.  

References

Bruce, V. (2016). The Story behind the award-winning Qantas HR team. HRD. [Online]. Available at: https://www.hcamag.com/au/news/general/the-story-behind-the-award-winning-qantas-hr-team/144887. [6th September 2020]. 

Healey, B. (2016). How did Qantas improve its Human Resources Management? HRM. [Online]. Available at: https://www.hrmonline.com.au/section/strategic-hr/qantas-improve-human-resources-management/. [6th September 2020]. 

Hervas-Oliver, J. L. (2013). The Changing Environment: Implications for Human Resource Management. International Journal of Manpower. 34(8): 1-10.

Sammut-Bonnici, T. & Galea, D. (2015). PEST Analysis. Wiley Encyclopaedia of Management. London: John Wiley & Sons, Ltd