Case study

Jet Red's new business strategies

1. Identify the key stakeholders involved. Explain what you believe their view will be and
how you would justify them (see figures 1.10 and 1.11).
Employees: Their main focus will be on job security, remuneration and benefits. They
will justify their views with the concepts of previous work history and loyalty.
Customers: They are likely to want the best possible service at the lowest cost, so are
likely to support the changes. However, they are also likely to be influenced by the media
coverage of any disputes, so may take the side of the employees and unions if the media
portray the company as not supporting their employees.
Trade Unions: Their focus will be on protecting the rights of their employees, and will
utilise Public Relations strategies via the media to influence public and possible
Government opinions. It should also be noted that the Union National Secretary also may
have a separate agenda regarding his future career.
Management: Their focus is on meeting the changing environmental demands that the
company is operating in, and balance these needs with the needs of the employees. This is
obviously very challenging given the facts outlined in the case study.
General Public: Their views are likely to be influenced by the media, unless they are
somehow directly involved in the situation. There is a strong correlation between the
general public and the customers in their views and how they respond to the situation.
Owners: Their primary focus is likely to be bottom line profits, but should also be
concerned with their employee needs and their public image.
Governments: Their focus will be balancing the support for the company, supporting
employees and also ensuring that they are viewed favourably by the general public, who
ultimately decide if they retain power.
2. What HR challenges and issues are involved in this case?
The major HR challenges and issues are outlined in the case as attempting to balance the
needs of the employees and satisfying the unions, with meeting strategic business
objectives set by management.
3. Identify and discuss the major environmental influences at play (see figure 1.19).
Economic influences are significant in the Case Study, as the pressure to reduce costs is
discussed regularly. Political influences are also mentioned, as the company has moved
from a government-owned company to competing in a competitive marketplace.
Industrial relations are also an influence, as there are major negotiations between the
management of the company and the unions over employee jobs and conditions. There is

Managing Human Resources, 4th edition

also the mention of technological influences in relation to advances in technology

meaning less maintenance work being required.
4. How would you describe Jet Red's existing corporate culture? How would Jet Red's new
business strategies change it?
Jet Reds existing culture would appear to be heavily influenced by the past history of
being a government-owned airline operating without major competition. The proposed
changes would impact on the company, with more competitive strategies required to
survive in the new marketplace. This may take time to develop a new culture as existing
and possibly new employees adjust to new policies and procedures.
5. As HR manager how would you go about increasing employee engagement at Jet Red?
Communication, education and participation are the keys to increasing employee
engagement at Jet Red. The HR manager appears to understand the importance of this,
but some of the other managers may not see the importance of this need.
6. What HR challenges does Jet Red face with its new business strategies focused on
(a) expansion into Asia?
(b) improving employee engagement?
(c) changing the corporate culture?
(d) improving productivity?
(e) reducing costs?
How would you as HR manager deal with them?
The starting point for all of these challenges is to ensure that all of the managers are in
agreement with the future direction that the company is taking. Once this is agreed upon,
the direction, policies and procedures need to be clearly stated and communicated to all
key stakeholders to ensure that there is buy in from all parties. Once this has been
achieved, issues such as job design, recruitment and selection, HRD and career
development, remuneration and managing diversity can all be considered in relation to
the short, medium and long-term future plans of the company. Again, communication
cannot be understated in this process to ensure all parties fully understand what is
required by them.

John Wiley & Sons Australia, Ltd 2013

Chapter 1 Strategic HRM 2