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  • So we are all agreed’, said Kieran Mathieson, managing director of Oz International. ‘We need to change.’Stan Vines, marketing manager, leant forward. ‘Kieran, it is imperative. We are losing market share. The competition is killing us. We are seen as a safe but boring way to fly. Our in-flight service at best is average and our crew are seen as surly and not service-oriented. We are just not competitive.’‘I agree with Stan’, growled Bill Armstrong, operations manager. ‘Our present cabin crew are not with it — they’re too old. They don’t present a modern image. We need people who are young, attractive, cheerful and dynamic. It’s no wonder we can’t compete with Virgin and Singapore. Their crews are attractive, cheerful and service-oriented. As a passenger, you get greeted with a smile, not a snarl. If we are going to turn around this airline, we need to do something. Our recent customer service survey shows that surly cabin crew top the list of passenger complaints. One passenger, for example, says that our flight attendants are the most arrogant and unhelpful she has ever experienced. Let’s face it — service on our flights is almost non-existent.’‘It seems to me’, snapped Linda Church, HR manager, ‘that this sorry state of affairs is a reflection of our bad management. Our staff morale is at all all-time low and we will be treading into a legal minefield if we attempt to bias our recruitment toward younger workers. Surely, you are all aware of what happened to Virgin Blue — eight women aged over 35 years were successful in their claim for age discrimination, even though the Queensland Anti-Discrimination Tribunal accepted that the behavioural competencies used by the selection process were fair’. ‘What were they?’ asked Kieran. ‘Assertiveness, teamwork, communication and “Virgin flair”.’157‘For heaven’s sake, Linda. We’re trying to run a business, not a social welfare organisation. Surely there must be a way around such problems. Face reality, passengers prefer to be served by young, attractive cabin crew. Our competition realises it. Listen to this. This is what Malaysia Airlines corporate services senior general manager, Mohammadon Abdullah, was reported as saying in the press: “Customers prefer to be served by young, demure and pretty stewardesses, especially Asian ladies.”158 Who wants to be served by a grumpy bunch of ageing couch potatoes and old boilers?’Do you think age is a valid recruitment issue for flight attendants?‘I can’t believe you said that!’ snapped Linda. ‘What you are saying is so blatantly discriminatory that it is not funny.’It’s not just me, Linda. Look at this newspaper clipping. The writer makes it clear what passengers want.’‘What does it say?’ questioned Kieran.‘To quote’, smiled Bill, “a charming face with a captivating smile has a more positive impact than a wrinkled face with a forced smile”.‘Really, Bill, you are being ridiculous’, sighed Linda.Kieran interrupted them. ‘Please, let’s remain focused. We have a problem and we have to do something. We are losing market share and money. There is also the matter of cost. Our cabin crew are the most expensive in the industry. We can’t continue with the old ways or we will be out of business. Now, what do you suggest?’‘Hire all new cabin crew at lower pay rates’, enthused Stan.‘The union will not accept that’, snapped Linda.‘What do you mean!’ retorted Stan. ‘Qantas have done just that. Their long haul flight attendants have accepted guaranteed wages and conditions for existing staff. In return, the union has agreed to new staff being hired on lower pay.’159‘I’m prepared to explore the option, Stan, but it seems to me that Linda has raised some valid objections’, responded Kieran. ‘Linda?’ questioned Kieran.‘Alright, I’ll go along with the exercise. But first we need to clearly define the type of people we need.’‘If our aim is to be the fastest-growing, most profitable airline in the Asia–Pacific region, that means we need people who are motivated and have a strong service orientation. They must fit with our image as a young, dynamic, “with it” Australian airline that has an international outlook and is going places’, said Stan.‘So, we are the young, confident, progressive airline that proclaims its “Australianness” but at the same time communicates its cultural diversity’, said Kieran. ‘Mmm, sounds interesting. You three get together and articulate the specific qualities we should look for and identify where we are going to find such people.’Discussion questions1. As a class, critically review the points raised. Which manager(s) do you agree with and which do you disagree with? Why?2. Identify the various stakeholders involved and their likely stances.ExerciseForm into groups of four to six. Imagine you are Oz Internationals’ executive team.(a) Define the experience, qualifications, know-how, personal qualities and any special requirements for the new cabin crew to be recruited.(b) Outline the recruiting action you plan to take to attract a pool of suitably qualified applicants. Use the recruitment grid shown below to illustrate your action plan.(Stone, Raymond. Managing Human Resources, 3rd Edition. John Wiley & Sons Australia, pp. 227 - 229). <vbk:9781742164731#outline(>
  • Recruitment : This is used today to bring about strategic and cultural change. An organisation must attract qualified candidates if it is to survive and grow.
  • Before the Graph:Management must anticipate changes in the organisation environment to ensure that people who are recruited have the unique skills/abilities, the know—how and values required by the organisation’s strategic business objectives. Strategic Recruitment does this by linking recruiting activities to the organisation’s business objectives and culture.Successful recruiting means clearly outlining each job, which involves job analysis . Products of job analysis are the job description (which highlights duties and responsibilities, relationships, required knowledge, authority, accountability. The job or person specification which identifies the job’s human requirements in terms of experience, qualifications, skills, abilities, personal qualities and knowledge
  • Case study presentation

    1. 1. RECRUITMENT ISSUES AT OZ INTERNATIONAL Session 7 QUESTIONS Case Study - Presentation a) Which manager(s) do you agree with and which do you disagree with? Why? b) Identify the various stakeholders involved and their likely stances. G7 Navin Ashna Alvin Michael Saleshni Vasitia Sandeep
    2. 2. Agenda • Intro - Navin • Oz international Background - Sandeep • G7 perception of the case study - Saleshni – Issues at hand – HR concerns – The direction forward • Requirement Process – Ashna / Va • Training & Development - Mike • Summary / our response - Alvin • Reference • QuestionG7 2
    3. 3. Oz International Background • What is OZ International • Who is who - Kieran Mathesion (Managing Director) - Stan Vines (Marketing Manager) - Bill Armstrong (Operation Managers) - Linda Church (Human Resources Manager)G7 3
    4. 4. Important dialogs of the case study Kieran Mathieson – “We need to change” “We have a problem and we have to do something. We are losing market share and money. There is also a matter of cost” Stan Vines – he was worried about “we are losing market share. The competition is killing us” Bill Armstrong – He agreed with Stan and said “Our present cabin crew are not with-it, they are too old. They don’t present modern image. Its no wonder we cant compete with Virgin and Singapore” Linda Church – She disagree with Bill and Stan and argued “That this sorry state of affairs is a reflection of our bad management” She also argued about the union that Union will not accept to change cabin crew on the basis of Age DiscriminationG7 4
    5. 5. Our perception of case study • Issues at hand  Losing Market Share / competition is killing them  Safe but boring  Not service orientated / not competitive  Ageing staff / they don’t present a modern image  Customer Service Survey – cabin crew complaints top of the list  Low staff moral  Reflection of bad management  High salary costG7 5
    6. 6. Our perception of case study cont. • HR Concerns  Changing aging staff – age discrimination  Trade Union  Comparison of Singapore Airline icon – (Marketing concept – Singapore Girl, can be criticised as being Sexist  RecruitmentG7 6
    7. 7. Our perception of case study cont. • The direction forward  Recruitment  clear and concise recruitment process  To be Australianness – Young, Confident, Progressive  Communicate cultural diversity  Aim to be the fasted growing, most profitable airline in Asiapac region  Define the type of people they need  Need people who are motivatedG7 7
    8. 8. Recruitment Process • The process and it’s importance Strategic Recruitment: Linking recruiting activities to the organisation’s strategic business objectives and culture. Recruitment: The process of seeking and attracting a pool of qualified applicants from which candidates for job vacancies can be selected.G7 8
    9. 9. Strategic Recruitment Stone, 2010. pg: 196G7 9
    10. 10. Training & Development • It’s importance  Optimum Utilization of Human Resources  Development of Human Resources • The Training and development process – HRD can be a platform for organisational transformation and renewal:  Implementing a new policy  Implementing a strategy  Effecting organisational or cultural change  Changing an organisation’s culture  Meeting a major change in the external environment or solving particular problems. • It is essential to consider:  the scope of training programs  training beyond just the immediate job requirements  a systematic approach to training and development, includingG7 • assessment • activity 10 • evaluation.
    11. 11. Training & Development c0nt.G7 11
    12. 12. Training & Development • Some reasons for the absence of strategic human resource development  Organisations lack or have ill-defined strategic objectives.  Top management views training and development as a necessary evil.  Organisations neglect long-term considerations.  Organisations do not analyse training and development needs.  Evaluation of training is ignored.G7 12
    13. 13. SummaryG7 13
    14. 14. Summary  We agree that in line with the leading airlines of the world, the cabin crew need to be attractive, cheerful and dynamic. Customer service is of the utmost importance in any service industry.  Oz International firstly needs to improve and lift their service standards to a level higher than that offered by their competitors to attract their customers back to their airlines for eg. Singapore Airlines, Emirate Airlines, Quantas, American Airlines, etc.  The Age Discrimination Act 2004 Australia forbids discrimination of any kind based on age. In this regards, mutual discussion with the various stakeholders need to be initiated to bring about the necessary changes legally.  Oz International to develop their corporate image in conjunction with the relevant stakeholders, for eg. Singapore Airlines CI is the “Singapore Girl”.G7 14
    15. 15. Summary Singapore Airlines hospitality and cabin service has been recognized with awards from magazines, travel and tourism industries, including the Worlds Best Cabin Crew Service by the Business Traveller Asia- Pacific Awards for 17 consecutive years.G7 15
    16. 16. Summary cont.  Older cabin crew could, on the grounds of passenger safety, be redeployed (gradually) to other areas within the company and replaced with younger cabin crew. Presentation of the cabin crew to be spot on.  Air Pacific was taken to Court in 2005 by the Fiji Transport Workers Union over the Compulsory Retirement Age of 45 and staff been dismissed on being overweight. In a “mutual” agreement with the union, the compulsory retirement age of 45 was removed for staff at all levels from the collective agreements.  More detailed research techniques need to be employed to specifically iron out the root cause of their problems. Is it just customer service, communication issues or management techniques?G7 16
    17. 17. Other stakeholders  Employees (informal leaders)  Trade Union(s)  All Senior Managers (including Financial Controller and Manager Legal)  Recruitment Agency  Marketing Agency  Research Agency  Board of Oz International/ or owner(s)  PR AgencyG7 17
    18. 18. References  Textbook – Stone, R.J., Managing Human Resources , Third Edition  PPT Presentation – Stone, Chapter 6 Questions? Thank YouG7 18