Detailed Notes on Human Resources w/ Case Study – Qantas

Resource Description

HUMAN RESOURCES

role of human resource management

•   strategic role of human resources
•     Qantas is one of Australia’s largest employers, employing over 28000 people (92% based in Australia) across 200 separate job categories – $980m full year profit – one flight taking off every 34 seconds – 14.9% of all passengers travelling in/out aus – 65% domestic share – 3rd oldest airline in the world – QANTAS AIRLINES LIMITED – Jetstar (subsidiary)
•   interdependence with other key business functions
•     Operations – Staff need to be trained when new operations technology is adopted (e.g. new aircraft and security systems). Operational changes such as cutting flights during the GFC changes size and type of workforce. This could include redundancies across staff as customers fly less or moving staff to the budget carrier Jetstar as customers change their preference for air travel due to less disposable income.
•     Marketing – The right staff must be employed and trained to create the service that satisfies Qantas’ consumers. People are an important part of marketing at Qantas.
•     Finance – Recent financial decisions at Qantas like outsourcing, cutting flights to some destinations, launching new airlines in Asia have affected staff levels and the levels of industrial disputes (e.g. industrial shut down in 2011). Staffing is Qantas’ biggest expense.
•   outsourcing

–     human resource functions

–     using contractors – domestic, global

•   Human resource functions

o   Qantas has increased looked to outsourcing to become more cost effective and to simplify its business.

•   Using contractors -domestic, global

Qantas uses subcontractors to create cost savings, access greater expertise and improve its competitiveness.

Domestic

o   Jetstar has outsourced its entire call centre operations to Melbourne Operator Sales Force – projected $400m saving due to cost cutting in relation to outsourcing, technology, and innovation – initially work undermined dropped 9th to 11th best airline in the world – now increased to 8th best (Skytrax world airline awards)

o   Outsources domestic voice, data and domestic services to Telstra

o   Outsources data centres, its mainframe and mid-range computing operations and project management to IBM

o   Onshore outsourcing larger planes from Alliance Airlines – due to frequent cancellations and delays on domestic routes and issues with aircraft and crew availability – QantasLink Chief Operating Officer Jenny Chamberlain admitted service is ‘disappointing’ – successful and resulted in Qantas buying 19.9%of alliance avation services – ultimately seeking

Global

o   Contracts some maintenance jobs overseas to Singapore and New Zealand

o   Established a base in London for about 400 of its international flight attendants saving them about $18 million through rostering efficiencies and reduced accommodation and allowance costs

o   Outsources its IT applications support and maintenance to 2 companies in India

o   Outsources entire reservation system to a Munich based company called Amadeus, includes the moving of its inventory of fares, seats, departure control and boarding passes.

o   Offshore Boeing 717s for heavy maintenance checks after Canberra unsustainable – current workers are domestic contractors – no redundancy no consultation – culture is problematic – Singapore