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Evaluate the response of HRM to legal and economic influences - Coggle…
Evaluate the response of HRM to legal and economic influences
ECONOMIC DOWN
The economic influence is the changing of demands for labours resulted from the changes in demands for good and services. When the economy is having a recession it is chategoirsed as a prolonged period of economic downturn in the eocnomy, thus for businesses their demands are less causing an increase of reunencies and separation of staff to coutner to reduced eoncomy. It is through a the managers leadership styel in which will influence the businesses ability to survive and adapt to these changes.
During this time of contractiong Joyce was also made decision in order to save the busines which resulted in many fueloughs and redunencies. AS profits plunged by 91% in FY20 through Joyce's quick actions and decisiove nature of being autorcratic he was able to see Qantas through this difficult time
Leadership style is the way manages communicates with their employees to inspire and motiviate their staff. There are two disticncitve styles of leadership; autocratic and democratic. Autocratic is one defined as being a styel where the manager retains a lot of control, making decsision from themselves and there is less collaboration. in comparison a democratic appraoch is one tt is more consultive that engaes staff collaboration to makes decision for the business.
Since privitisation in `95 qnatas has been more democratic which has worked for them
emplpoyees through surveys to evaulte the bsuiness cultura and apprachs values the democratic approach taken
Alan Joyce when first promoted into the possision in 2009 has been one to promote and encoruage staff - which has seen major increases to profits
However due to the gloabl encomic impact of COVID Joyce had to shift his leadership style to a more acutcratic apprac
though this autocratic apprach in this tumultuous time Joyce needed to be decisie in order to make strategic decision in order to keep Watnas afloat. Through this apprach of being autocratic and making tose diffuclt decision and him taking control fast he was able to save around $1 billion dollars for Qantas.
Post covis Joyce has transitioned to a more democratic approach as collaboration is able to become easier with no longer working via zoom. Even though JOyce has announced his retirement in 2023 and Vanessa Hudson takes over she is also caletorgiesed to be one that is 'encouraging and motivating for staff"
Hence through leadership styule is a fluid apprach and adapts and changes for watnas egarding the eocnomic outlook of society. In this way Joyce was able to navigt e through COVID and pbring about a 1.3billion profits this quater. Hence leadership style is crucial to the csurvival and repsonse for HR to hold due to economic influence of a contraction in the eocnomy.
ECONOMIC - UP
An economic boom or expansion is the opposite to that above, it is when the demoands for albaour, good and services increase thus businesses see profits and higher demand. This results in rewards as well as new training and devleopment for a business in order ot meet the demands. The Post Covid boom in travel saw the travel industry demand increase expendentially. Even thorugh comong out of the contraction of COVID profits were not high it was still a dramatic increase, as seen through Qantas
These rpfits can be seen with a half yearly profit saor to 1.3 billion dollars. This profit is the first profit for the last couple years for the business.
Qatnas has amade the decision for a profit share plan and bonuses for staff of up to 11 500 in cash or shares due to record profits.
thesse bonuses come as an incentive to stay in the business due to the salmost 3 years of wage freezes and furloughs. in addition due to the increse in profits there are other reward for the staff that were hevaily restricted during COIVD.
IN addition trainign and developemnt which aims to develop skills and abiltities that lead to superior wokr performance nad capabilities.
For wantas this is seen with their reintroduced and greater trainign through their Centre of Service Excellence. With 2200 pilots needing to have a retaining in additon to their 48 000 annual training stimulation flight. Thus Centre costed $20 million before the pandemic which now has bee epanded to cater for over 500 piltos. IN addiont in Nov 2021 Qantas held their annual safety conference in which was crucial for the business to adapt and cater for the changing society.
Looking into the future Qantas is looking into brining in 500 new aircarft into their systme within the nextdecade as well as the training and devleopment of all the staff through a new engineering school plans as well as continued trianing.
Thus as the economy grows, so to does Qantas' profits the business emphasisies traingina nd devleopment in order to maintain and develop suerior work performace. Qantas decleopment and trainign program are highlight tailed to the aitution and the icrease of trinaing due to profits highlight their effective response to their profits to be reinvested into their staff.
LEGAL - WHS
LEGAL - ANTI DISCRIMINATION, EEO