HR Plan For Silvertail Airline

Evaluation of Downsizing strategy

Silvertail Airline was once considered as the only national competitor of Australia Air with Singapore Airline.  The management of in both airlines was working significantly well. However, due to a change in the airlines industry Silvertail Airline rapidly experienced a turn down in their share prices because of the low cost carriers in the domestic and international market. Due to excessive competitiveness in the airline industry, the board of directors was substituted with professionals to promote inventiveness and open-minded attitude at work. Top and middle management structures were removed; upholding was outsourced and regional branches were stopped up. Silvertail in order to gain a competitive advantage in the industry took action by endorsing itself as new, young and innovative airliner. Due to the current scenario they decided to reduce the workforce redesigning the overall structure.

The purpose of this proposal is to guide practical help in developing a Human resource management plan. The proposal provides the process that need to be followed in order to manage the Human resource issues. Human resources plan provides an effective way to build an HR department duties and functions.  It provides the organization to access the strengths and weakness by Involving both HR and leadership in a valuable way. The plan assists in addressing the future needs and provides with suggestions. In addition to making an HR plan, this allows the organization to make sure about the progress (Hendry, 2012).  Further it allows in meeting the specific objectives and goals. Human Resource Management is a deliberate and organized approach to manage people, technique that help in maximizing inspiration and involvement towards congregation of the organizational objectives. A HRM Plan sets out the entire requisite following certain practices n the department. The objective of this HRM Plan to assist the department to accomplish mission and purpose through a methodical plan and accomplishment of HRM programmes (Armstrong and Taylor, 2014).

There are numerous contemplation that needs to be come across in order to remove the barriers by employing efficient HRM plan and managing the ethical issues and implications, type of downsizing tactic and its necessity in decision making in this case.

In the current situation it is clear that the organization is been facing excessive competition from the local and domestic airlines due to their exuberant HRM policies involving only young blood. There is a need to develop the HR policies in order to stimulate effective results in the organization. There are certain apprehensions in the organization in regard to removal of old crew members and to replace them with new. This is to enhance the overall capacity of the airlines. There are proposal regarding the downsizing the number of crew members as a strategy to cause a tough competition for the old crew members. The recent turn down in the profits of the company has contributed in making efforts in order to develop relationships. Downsizing is a process through which an organization reduces the size of workforce by terminating of the employees. This activity is commonly referred as layoff. A lot of companies use downsizing tactic to layoff low performing employees to maintain a well-organized work force (Storey, 2007). In the case of Silvertail the problem occurred due to excessive competition from the low cost carriers that have created a competition in the duopoly market. This has led to implementation of the downsizing tactics, making obligatory efforts by restructuring and making  drastic changes to make sure it recuperate its place as one of the top Singaporean airline industry.  In order to gain a significant position in the market it has become important to manage the downsizing tactic to carefully implement by means of an obvious consideration of the organization’s strategy and the capability of the employees (Boxall and Purcell, 2011).

Personnel reduction

In the given scenario it is visible that the company is facing tough competition due to competition. For implying the downsizing strategy it is important to ensure that it does not affect the brand image.

This tactic is used to trim down the number of workers in the organization. It is stated in the case study that the reason behind layoff old cabin crews is because of lack of enthusiasm. They are no longer considered fit for developing the organization’s new image. This new strategy will have fundamental and nearly direct results towards the manpower cost. At present the organization is able to decrease the cost acquired for its workforce. This will gradually decreases its expenditures allowing for more profit & gains. In order to get better share price and achieving back its market standing Silvertail has decided to reduce the personnel (Noe, Hollenbeck, Gerhart and Wright, 2007). This is considered as one of the useful and common method followed in which employees are laid off by introducing early retirement and thus moving individuals to vital positions. The overall purpose here is to decrease needless place and in that way diminishing the head count. Silvertail though have to be professional in managing the situation which can be prepared by meeting with the team members. Before that it is essential to go on board on this downsizing strategy (Dowling, 2008). In this situation Silvertail need to re-organize the company to be acquainted with downsizing. Some of the examples of Downsizing are freezing of hiring process, early retirement packages, retrenchments, natural attrition, and layoffs.

It is very well visible that Silvertail has redesigned the organization by replacing the board of directors with a completely different board of professionals and experts. The purpose is to introduce innovation and open-minded attitude. All These changes help in serving a positive attitude in the organization. The overall purpose is to introduce a high level of innovation, creativity and organizational competency. The process of re-designing will allow in eliminating duties that are transferred to another occupation during overall process.  The top-heavy management structure sand middle management removed and the regional branches were closed.  Business function like   maintenance was outsourced in order to reduce the cost. Some of the examples are abolition of functions, job redesigning, reducing work hours, de-layering, and amalgamation of units.

This is a long-term accomplishment whereby it gives one and all to completely comprehend the organization’s strategy and the changes.  In the given situation it is important to introduce the process in a systematic way so that the old cabin crew does not suffer in a drastic way. They should be given ample of time to access and recognize the proceedings completed for the welfare and awareness of the business (Daley, 2012). This strategy will put forward a positive image in front of the employees and the world.

Organization re- designing

In order to understand the effects of Downsizing it is important to manage the organization in an effective way by understanding their short and long term impact.

The organization need to focus on hiring staff based on skills. This will help in meeting the vision and goals. The company during job interviews should questions particularly connected to skills. This will allow in meeting present as well as future requirements. This strategy helps in assuring that the organization is recruiting and hiring people as per the future challenges (Sitlington and Marshall, 2011).

It is the utmost priority that the organization should mix skills as per the present requirements while linking it to the predictable skills desirable in the future. The organization in this way let individual employees to decide what they want to do to remain gainful. It also provides the learning and development experience by mandating specific skills training.  They require making regular training and development essential for the staff. In order to compete for the Future needs business need to identify their core competencies and build plans that are based on fundamental building blocks. All this allow in building foundation for the organization and employees. This structure put forward a positive image of the organization.  The career development process will match up with the organizational needs (Levitt, Wilson and Gilligan, 2008).

The organization should identify the types of management and technical skills required. The HR department should work in coordination with the managers to recognize probable applicants so that they can start organizing them for particular place once it become vacant. The succession planning put forward an effective example in front of people. One can feel connected with the organization. They will surely get a relevant position in the organization as per the internal vacancy.

Redeployment is linked with ‘alternative placement’. This activity is used within the organization providing with an appropriate employment. Successful redeployment necessitates a dense career management process that helps managers and employees to be aware about the positions. This also requires career estimation and expansion activities that let people to get prepared for positions. When company links an individual career preparation to corporate objectives it could see their plans fitting in overall course.  This helps every individual to stay inside the company. This allow in developing a good career development and placement decisions (Coucke, Pennings and Sleuwaegen, 2007).

Systemic

The process is known to be an ‘employee buyout’ inside the organization.  In this process the group of employees creates a new business or line of service. By collaborating with the well-known names will allow the brand to develop a strategic name in the market. This allow in developing a successful brand name in the market as the organization does not require making changes outside the organization. One can implement the changes as per the growing needs in the organization.

An employer brand conveys the personality, principles, and standing of the organization. A strong employer brand is paying attention on conversing Silvertail’s culture to people that in case will allow in adding character by supervising the favored insight. This also helps in attracting desired job candidates. This allow in developing potential from recruitment to retirement in order to put forward a strong example of employer brand traits (Gandolfi, 2008).

This is important for an organization to manage in order to gain effective result. This will be helpful in meeting the current as well as future requirements. In order to gain a competitive advantage training and career management is important for the organization in achieving sustainable objectives. The purpose of aligning the objectives is to meet the current and future needs. Training and development is helpful for the organization in case of Silvetail to make them aware about the cultural values. This is important in dealing with the problems that the employee comes across in meeting the purpose (Morem, 2009).

• Assigning an owner
• Plan the employer brand to the corporate brand
• Share content

In the given situation a future search conference allows the group of people to expand a sequence of alternatives for the future and to agree on an action plan. This will help the participants in making decision and allow in implementation of plan in an effective way. A future search conference helps in developing a practicable plan that helps in incorporating the needs and wishes. These plans allow in meeting the preferred future vision of the company (Chipunza and Berry, 2010).

The question related to the organization that draws attention of the employees. The organization is known for its efficient services seeking attention of people. This will help in meeting the requisite goals.  The corporate strategy in the organization will allow in meeting with the sustainable objectives.

A systematic corporate structure will allow in giving employees with promising career opportunities. This is important for the organization in balancing various aspects. There is a necessity to provide employees with a work life balance. It is the dream of every employee to work in an organization that has an appropriate work culture (Vosburgh, 2007).

Implication of the downsizing strategy

The organization design needs to be appropriate keeping in mind the needs of the people. It should encourage employees to participate in the organization while delivering appropriate services. Staff engagement is important for the organization in meeting the necessary goals.

The changes proposed in the organization required to deliver appropriate goals. The employees need to be encouraged so that they deliver effective results. It is necessary for the organization in meeting the needs and requirements and to deliver the results as per the purpose.

Conclusion

To conclude, the report focuses upon the downsizing strategy of Silvertail Airline Company.  Due to excessive competitiveness in the airline industry, the board of directors was substituted with professionals to promote inventiveness and open-minded attitude at work. It focuses over different downsizing strategy and provides recommendations that are important to be undertaken in order to gain competitive advantage. All These changes help in serving a positive attitude in the organization. The overall purpose is to introduce a high level of innovation, creativity and organizational competency. In order to remain competitive it is important to focus on appropriate strategies this will allow the brand to make a distinguished place in the market.

References

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