Qantas Airline: Human Resource Management and Entrepreneurship Essay

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Qantas popularity and success can be judged from the fact that it was declared the third-best airline in the world in 2008 by Skytrax, a research consultancy firm. The airline has always had ambitious programs for having an edge over its competitors in the aviation industry and it is for this reason that despite some controversies surrounding its operations it continues to be one of the best airlines in the world. The main terminal and hubs of Qantas are at Sydney and Melbourne airports and operates several international flights to the main commercial cities of the world. Since it was privatized in 1993, Qantas has been one of the most profitable airlines. It is constantly expanding its fleet of aircraft and gradually phasing out the old ones, unlike other airlines that keep depending on obsolete and aged aircraft that often leads to security and safety issues. Indeed it is a robust and disciplined company and continues to retain and enhance its status as Australia’s global airline, and primarily draws its strength, reputation and identity from its global reputation for safety, excellent customer service, engineering excellence and reliability. The Qantas management continues to invest proactively and believes in cost efficiencies and economies of scale, which have been the main reasons for its success in times of intense competition amongst airlines. Additionally, the business strategy encompasses to maintain by all means the confidence that customers have in the airline, which is indeed a national asset for Australia. Qantas enjoys credibility with the Australian government and hence is privileged to have all that it requires from the government. The unique geographical positioning of Australia has constantly added to the success of Qantas, and as the country progresses, the airline industry offers greater opportunities to Qantas to expand its business and profitability (Qantas Strengthens Domestic Strategy as market Intensifies). It envisages the replacement of all its old aircraft that are over 20 years of age and have already placed orders for the Airbus 380. One of these aircraft has already been delivered and international flights were commenced with great fanfare as a popularity measure.

An entrepreneurial audit refers to a comprehensive examination of a company’s innovation and entrepreneurial characteristics. It concerns with evaluating the abilities of the company in responding to opportunities and in maintaining an environment that is conducive to optimum utilization of available resources and in bringing about maximum profitability. This results in improved financial performance (Robert M Peterson). In its efforts to combat the negativities surrounding the airline industry, especially after the September 11 attacks in New York, Qantas has demonstrated immense tolerance and patience in sticking to its excellent customer service that it is well known for, and several surveys carried out by research agencies have conclusively proved that customers continue to impose the trust in Qantas’ reliability in meeting to their expectations. Its entrepreneurial instincts have proved that Qantas is a pioneer in bringing new products for the air traveler. It has started offering in flight internet services on its new fleet of Airbus 380s and has always been involved with pioneering promotional activities such as running advertisement campaigns that feature renditions of children issues set in the footage of Australian landscapes. The entrepreneurial skills of Qantas management is evident from the fact that it is continuously discarding old aircraft and obtaining new ones to make it’s fleet one of the most modern in the world (Qantas Annual Report, 2007).

Qantas remains one of the largest employers in Australia and follows innovative HR policies that are aimed at uplifting its employees. Corporate objectives of Qantas include improving industrial relations, management, organizational development and organizational effectiveness, which are achieved by designating teams for each of these functions. These teams are responsible for framing HR strategies and initiatives to achieve corporate goals. There are also teams that participate with each business segment to help achieve segment strategies by way of day-to-day HR practices. There is a central support team that performs back-office functions in answering HR queries, facilitating remuneration management, workmen’s compensation and staff travel schemes. The company has a constant flow of training programs directed at improving employee competency levels so that each one has the opportunity to enhance his skills and grow within the organization. The company believes in developing a community with access to all the tools to add to one’s talents so as to enable employees to emerge as leaders and senior executives. The Qantas group is diverse in nature and the size of the HR functions ensures that there are virtually unlimited options to prove one’s expertise and dedication to the goals of the organization.

Just as any other major organization of the world, Qantas too has its own share of criticisms on various issues. It has been in the news for having caused injuries to passengers while on an international flight due to turbulence in mid-air and made to have a forced landing at a remote Australian airport. In 2005 allegations were made against the airline for adopting discriminatory policies on the basis of sex whereby adult male passengers were not allotted to sit next to unaccompanied children thereby indicating that it considered all adult males to be potential paedophiles. The airline has also been accused of adopting unfair practices by way of introducing a cut price strategy on some of its routes that involves charging customers lesser than the cost of a ticket to the airline, much to the detriment of other airlines (Qantas expands cut-price strategy). There have also been instances when the airline has announced a cut in its employee strength as it did during the Iraq war due to signs of impending decline in business, which is not considered a healthy sign at the instance of an industry leader(Qantas in War Strategy).

Bibliography

Qantas, 2008. Web.

Qantas Annual Report, 2007. Web.

Qantas expands cut-price strategy, Australasian Business Intelligence, 2005.

Qantas in War Strategy, Australasian Business Intelligence, 2003.

Qantas Strengthens Domestic Strategy as market Intensifies, World Airline News, 2007.

Robert M Peterson, The Entrepreneurial Audit: Innovation Efficiency in the 21st Century, University of Portland, 2008. Web.

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