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MP1009N. INTRODUCTION TO HUMAN RESOURCE MANAGEMENT AIR NATIONAL CASE STUDY INTRODUCTION During the civil aviation in the early 1980's, the market was highly competitive and was managed closely by the relationships between the airlines companies, their competitors and the governments. Market shares were determined by the skill of their governments in negotiating bilateral 'air service' agreements that establish the volume and distribution of the air traffic. In 1998, Air National turns as a newly privatised company that face the future with enthusiasm, confident that they can compete in a deregulated industry. After, in April 2000, the tone changed because they had a pre tax loss of $93 million. Then, the newly appointed CEO announced a major change in the company business strategy that would influence to a transformation of business operations and human resources practices in the company. 1. FACTORS THAT ENABLE SENIOR MANAGEMENT TO TAKE A STRATEGIC APPROACH TO ITS BUSINESS AND TO ADOPT AN EMPOWERING-DEVELOPMENTAL APPROACH TO HRM. In the middle of 1980s AN's external environment was privatised by Britain's conservative government. This exposed the company to competitive forces. They have to prepare for privatisation that required a painful restructuring because they needed to make the company attractive to initially sceptical investors. This gave the senior management the degree of stability to implement a new and HRM strategies. ...read more.


Successful implementation of any new HR policies and more especially the more radical forms of HRM require strong and sustained commitment from the top. Many chief executives pay no more then lip-service to HRM, immediately reducing its potential impact. In practice this means that any changes will need to be long term, step by step and evolutionary. Once realistic HRM goals have been set, they need to be sold to the whole workforce and especially to those managers who have to work at day-to-day implementation. A further factor in the implementation of change is the part played by the chief executive and the HR specialists. Both should practice what Peters and Waterman (1982) labelled 'simultaneous loose-tight properties'. They must display consistent and strong commitment to the HRM goals and strategy, but empower others to implement it. For HR specialists this can be a particularly difficult since it appears that they must give power away by encouraging others to take over part of their role. All the evidence suggests this ultimately makes them more highly valued partly because they learn to become facilitators and change agents rather than controllers and administrators. The notion of 'fit' between an external competitive strategy and the internal HRM strategy is a central tenet of the HRM model advanced by Beer et al. ...read more.


This strategic choice has a nature problematic, 'added-value strategies do not preclude or prevent the use of managerial control over employees (1995, p.29). Running parallel to these developments was the company's concurrent objective of cost reduction. Job cuts were managed entirely through voluntary severance and redeployment. The requirement to sustain and improve performance in the face of such loses produced, however, a preoccupation with productivity levels, and attempts to alter shifts patterns sometimes provoked conflicts. Disputes were resolved quickly, usually by the company reminding the employees of AN's commitment to job security, training and development, and through senior management throwing money to the problem. 3. WHAT PROBLEMS, IF ANY, WITH AN'S HR STRATEGY AND GOJET'S HR STRATEGY. Senior managers are pragmatic and work organizations can adopt 'hard' version of HRM for one category of workers or, in a multidivisional company, like AN and Goject, for one business while simultaneously pursuing a 'soft' version of HRM for another group of workers to provide a coherent understanding of HRM policies and practices and why they vary. Whether senior managers adopt the 'matching' or the 'resource based' model of SHRM will be contingent upon first the corporate and business strategies, as well upon varying degrees of pressure and constraints from environmental forces. ...read more.

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