Nov 20, 2020 in Case Studies

Human Resource And Industrial Relations Strategy
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Introduction

Can the company exist without human resource management? In my opinion, it is impossible. Deprived of it, complex enterprises tend to become chaotic in ways that threaten their very existence, because management is responsible for cooperation and coordination of the employees work and development of companys strategies for the present time and future. It is clear from the example of Virgin Blue Airline. It has gained growing popularity among Australian citizens because the company follows the strategy of human resource management, the main goal of which is to provide cheap, affordable air travel for everyone.

 

Analysis of Virgin Blue Case

Human resource management deals with organizing and staffing. It means that the main tasks of it are to create an organizational structure and set of jobs for accomplishing plan requirements, staff the company with qualified individuals, communicate the plan to those people, delegate responsibility for carrying out the plan, and devise systems to monitor implementation. In addition, human resource management is required to cope with complexity, changes and difficulties within the company. Boxall and Purcell defined human resource managements as management of work and people in order to meet a desired end (Boxall, & Purcell 2011). In other words, it is a systematic approach that consists of processes that are basically in all organizations, for example, selection, appraisal, rewards and development (Matiza 2013). Although it seems that managing human resources is an easy task, in fact, it is a complex and rather difficult one. Analyzing the article A Revolution in Travel Retailing, we will find the main keys to the successful functioning of human resource management.

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Firstly, in order to analyze concrete steps of which human resource management strategy consists, it is necessary to define the general conception of the company. In case of Virgin Blue airline, Australian CEO has pointed out that this conception is based on the principle to provide cheap, affordable air travel for everyone. He has stated, Virgins approach offers customers just cheap, fast flights, serviced by air and ground crew with outstanding levels of professionalism. We are confident we will have the most dynamic, friendly customer service focused team in the sky (Dessler, Griffiths, & Walker 2013). It means that the special attention is paid to human resources. This opinion in the business world is shared by many other peoples. For example, Jack Eaton (2001) has stated that the emphasis in the airline industry should be put first of all on human resources because safety and comfort of the passengers are depended on them.

To achieve this goal, CEO developed and implemented a set of concrete steps. Firstly, the emphasis was put on the recruitment of the new staff. The first task for HR was to recruit senior staff and a core group of administrators. Commitment, excitements and strong motivation were the main traits of character, which he concentrated on. The second one was to find people who could perfectly accomplish duties of pilots, administrative staff, cabin crew, technical and engineering staff, and front desk staff. To evaluate their qualifications, different methods such as merit exercises and job interview were used. They examined such personal qualities as commitment and enthusiasm, attitude to the people and the job, the ability to remain stress resistant in case of emergency. In term of human resource management, these tasks were completed in a correct order as, at first, it is always necessary to recruit administrative staff in order to create the conditions for it to manage the workers of other levels. Moreover, workers should undergo different tests to reveal their cognitive ability, personal traits and professional skills (Collings, & Wood 2009).

 
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Secondly, in the external environment, the Virgin Blue airline follows the principle of concentration only on one thing. It is revealed through the collaboration of the company only with one partner. It gives the opportunity to send money only in one direction and in such a way build a strong partnership. However, opposite principle is following in the system of internal relations within the company. According to it, staff is encouraged to perform different duties within the limit of their skills and qualifications. It means that the telecentre staff can also undertake booking, baggage and so on. Such a strategy gives the opportunity to save human resources. Moreover, it contributes to increase of productivity, teamwork, morale and efficiency among workers and a larger sense of participation (Singh, & Waddell 2004).

However, to achieve the previous goal of multi skilled staff, it is necessary to organise special training for employees. Virgin Blue provides the staff with quite extensive induction courses, which gives the opportunity to learn other jobs and rotate between them. Moreover, it helps employees to reveal their skills and occupy better position. Such a practice has been followed by many other companies. For example, some large companies such as the Disney, McDonalds, and Sears have their own universities to train employees (Harigopal 2006).

Finally, performance of the employees in Virgin Blue is always under control. The main method, which helps to do it, is a combination of reports from management information systems. Thus, employees always feel the constant need to improve. However, it is necessary to remember that, in many cases, employees are afraid of it. The main reasons are over control, inappropriate focus, rewards for inefficiency and accountability. That is why Virgin Blue human resource managers should try to create effective control, encourage participation and provide checks and balances (Mukherjee 2005).

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Conclusion

To sum up, Virgin Blue is characterised by strong human resource management. Its main goal is to provide cheap, affordable air travel for everyone, serviced by air and ground crew with outstanding levels of professionalism. The concrete stages of it are to recruit staff with high professional and personal characteristics, cooperate with one partner in the external environment, encourage multi skilled employees, and provide trainings to reveal their talents and keep them under constant control. All these altogether contributes to companys business success. Companys CEO indicates that he hopes to achieve a turnaround in the first year of actual flying.

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