Qantas Airways is the largest airline in Australia by international destinations, fleet size, and international flights. The airline was initially owned by the government, and therefore, proponents of profits and efficiency were not given much priority (Truxal, 2013). Changes started to be experienced after it was privatized in 1995. The Human Resource department had to adopt varied management practices as from this time to help the company overcome the prevalent external and internal influences.  There was a need for reducing the prevailing labour costs with the objective of reducing overall costs, introduction of new structures and efficient ways of motivating the employees (Broadbridge, 2012). The HRM works from both an internal and external perspective in its performance management quest. Internal aspects include using the company’s strengths to enhance performance management while external aspects entail ensuring that employees are deriving the best services to ensure they are loyal to the airline. The company’s performance management practices include planning work and setting expectations, monitoring performance, employee development, rating performance and rewarding good performance.

Planning Work and Setting Expectations

Qantas’ management operates through a hierarchical structure whereby orders come from above and are implemented by the people below the hierarchy. The HRM department works in a similar manner. Planning of work and setting the relevant expectations is done at the top, but the supervisors are expected to execute since they are the ones in touch with the employees. Most managers have the tendency of assuming that the employees always understand that which needs to be done, and this makes them fail when it comes to communicating the expectations. This is something that Qantas HRM does not take lightly. The HRM provides a structure that defines the direction and sets clear boundaries. Every direction is clearly spoken to ensure that every employee involved with the company is sure of what is expected at all times (Broadbridge, 2012). Through the setting of directions, there is usually the aspect of outlining the scope of every work. When outlining the scope, the HRM makes it clear on behaviours that are regarded appropriate and those that are not. Every employee’s role for a given task is clearly outlined to avoid potential work conflicts.

Despite the efforts that the HRM has put on this area, there are varied shortcomings that are prevalent. Among them is that the HRM uses an autocratic approach. There are no discussions that are held with the employees to review the work plans and expectations. Employees receive more of directions on what they ought to be doing and what is expected to be the outcome. This aspect has resulted in complaints from some employees citing that they are usually assigned tasks that they are not well equipped to undertake. The complaints come in light of jobs that they would execute best being allocated to other individuals that are not very competent in these areas. There are also complaints now and then about supervisors allocating roles in a manner that shows they favour some employees compared to the others. The issue has brought about varied conflicts at the workplace in the past.

Monitoring Performance

The company uses three major ways of monitoring employee performance in addition to others. They include observation, customer opinions and performance appraisals. Observation is usually meant to monitor personal habits. This is because there are perpetual bad habits that are likely to affect employee performance (Paauwe, 2011). This includes disruptive behaviour, taking unauthorized breaks, and use of computers for personal reasons. It is good to ensure that every employee is behaving in a manner that is required to ensure that others do not adopt such behaviour. It becomes easy to observe one’s performance by checking on how they are executing their activities. Through observation, the HRM can assess the employees that are not doing their duties as required.

Seeking the opinion of customers is vital when assessing the performance of employees. The ultimate objective of enhancing that employees’ performance is to ensure that the consumers get desirable customer service in all areas that they encounter the company’s operations (Guest, 2011). As a result, their opinion on how different areas are operating are usually deemed vital in assessing the performance of the employees involved in those areas.

Performance appraisal, on the other hand, is done on an annual basis. The main objective is to examine the employees’ contributions to the organisation. The evaluation assesses the employees’ achievements, skills, and growth. These appraisals are used to give employees feedback on their work. They are usually used as the benchmark to justify whether employees will receive an increase in their salaries or bonuses (Stanton & Nankervis, 2012). However, there have been issues with the appraisals in the past. Most of the employees do not feel that these appraisals reflect the true state of how things are. The appraisals are usually conducted by the immediate manager or supervisor, and their credibility has always been contested by employees. There is the feeling that the people responsible for conducting the appraisals are bias in their undertakings. Managers use these appraisals to terminate employees that they are not in good terms with while promoting the ones that they favour. Employees also think that the appraisals contribute to a stressful environment at the workplace when they are around the corner. Employees always seem stressed since no one is sure what the outcome will be. No one wants to be on the bad side of the management, and this makes them very worried.

Employee Development

Development is aimed at ensuring that employees shape their future careers. The training involved during the development process is meant to equip employees with specific skills and knowledge to help improve their performance at the workplace (Paauwe, 2011). Employee development is usually expansive and tends to focus on growth and future performance as opposed to the immediate job role. At Qantas Airways, development aims at creating high-impact employee training. There is the identification of the business impact that the training is going to meet so that the training is designed in this manner. The skill gaps are also analysed at all times. Identifying the gaps helps in instilling employees with the appropriate skills and knowledge that are missing. The one thing that employees normally complain about these development programs is the attitude that the managers have. Most of the managers expect that employees should be improving their growth and performance immediately. This is usually misleading since employees are aware that the development programs are meant for improving future performance and not immediate roles.

Rating Performance

Rating performance at Qantas has always been a thing of debate. At some point, it was integrated into the appraisals, and not all HRM personnel were favouring this approach. There is the argument that performance ratings do not help employees improve in any way. Krausert (2009) asserts that giving an employee a top rating makes them susceptible to developing a superiority complex or becoming complacent. Employees that receive low ratings, on the other hand, become jealous, angry and disappointed among other negative emotions. This is why the rating has always been tricky in its usage at the company. There are those supervisors that like it while there are those that detest it.

Rewarding Good Performance

The company’s reward system addresses four areas that include benefits, compensation, appreciation and recognition. The rewards are awarded on the basis of performance and behaviour. Performance has usually been the easiest to address since it has a link between the set goals and the final result. Rewarding specific behaviours that made a difference in the company has always been a challenge since the managers are never sure of what to examine exactly. However, there is always a problem with this reward system. There are four areas that are supposed to be addressed, but the management tends to focus more on compensation. It is not a bad thing, but it diminishes the importance of recognition and appreciation, which are an integral element in a winning strategic reward system. Employees like to know whether they are doing bad, good or average. As a result, it is paramount to tell them.

The management’s act of cutting labour costs with the objective of increasing productivity has not been going well with the employees. Employees have gone on strikes at some point claiming that they are receiving meagre wages compared to the industry standard. Pilots have been complaining too, and union workers have been demonstrating over wage inequality compared with other areas (Truxal, 2013).

Recommendations

When it comes to planning work and setting expectations, the HRM should ensure that they uphold employee engagement at all times. The plans being made are going to be executed by the employees hence they ought to be part of the team making these plans. When the employees are involved in making the plans, they get a sense of belonging. They feel as part of the team, and will, therefore, work to ensure that these plans are fulfilled. Engaged employees also have a sense of satisfaction. When employees are experiencing job satisfaction, they have a high level of loyalty and commitment (Mizrahi, 2016). As a result, they will always support and promote the company’s strategy and mission. Engagement is also likely to result in increased productivity since employees are allocated duties that they are well suited to undertake. This will reduce the number of complaints coming from employees regarding the supervisors allocating them tasks that are not well matched with their skills. When employees are doing what they are good at the levels of performance in the organization are likely to rise.

Given that employees have been complaining about how performance appraisals are conducted, there is a need to make some changes to help make the employees feel contented with the process. There are complaints of bias from the employees by the individuals conducting the appraisals. The best way to solve this problem is to ensure that not one individual is tasked with the responsibility of conducting the appraisals. It has been established that some managers and supervisors take this opportunity to settle scores that they might have with employees (Liff, 2011). This ends in unfair assessment of these employees. It would be great if the appraisals would be conducted in pairs by two distinct independent individuals. This would result in the production of two reports. In case there are significant deviations in the reports, the individuals conducting the appraisals should have an explanation to make since the standards being used to appraise are similar. As a result, employees will be confident with the process. The stress that comes when the appraisals are around the corner will diminish paving the way for proper execution of duties. HRM should also take the initiative of assuring employees that this is not witch-hunt thing. There should be assurances that it is just aimed at ensuring that performance levels are at the required threshold.

To improve employee development, HRM should understand that this is a future-oriented initiative. The skill gaps that are being mended are expected to bear fruits over a period of time. It is not something that is likely to take effect there and then. For this reason, it is important for the HRM to set out clear expectations. This helps employees in understanding where they stand at a given time. For effectiveness, the process should also ensure that there is the creation of individual development plans. The process should not be one fits all kind if positive results are expected to be realised. Giving constructive feedback also goes a long way in enhancing employee development. However, this does not mean chiding, criticizing or disapproving employees. The feedback should include constructive recommendations that will help to further improvement and development.

The HRM also ought to take the issue of employees striking due to meagre wages serious. There is need to find an amicable solution to this issue without turning a blind eye to their outcry. It would be prudent for the HRM to ensure that employees are receiving wages that are standard within the industry. This is a big company hence expectations are high. Employees are not likely to settle for less than the industry’s standard or even high. Cutting cost does not likely to come with the reduction of employees’ wages. There are other operations that the company can set its eyes on to reduce the costs. Employees are an integral resource to the organization. When keeping an employee happy, there is a high probability that customers will remain happy too since the performance of employees will ensure that they receive a favourable experience.

Key HR Professional Capabilities

The HR should have certain capabilities to help in the implementation of these recommendations. They include, but not limited to:

Change Champion

An effective and efficient HR professional has the ability to develop an organization’s capacity to embrace change and then translate this capacity into an effective change process and structure (Liff, 2011). This capability will come in handy at Qantas while trying to change the status quo that has been in place. It will help in ensuring that HR has been able to change the way work is planned by integrating employee engagement.  The aspect will also go a long way in ensuring that HR has the ability to change the wage structure with encountering major problems to help reduce aspects that make employees revolt against the organisation. Being a change champion means that the HR knows exactly what needs to be done, when it needs to be done and by whom. Timing is very critical for change to prevail and gain acceptance without putting the organization in a disadvantaged position.

Capability Builder

Capability acts as a representation of what the company is good at and has recognition in that area. This capability outlasts the performance or behaviour in a manager, individual or system (Mizrahi, 2016). This is an aspect that will help in employees’ development. This is because the HR knows exactly the skills to impact on the employees to make them more valuable to the company.

Credible Activist

Results-based integrity acts as a foundation of trust that translates into professional credibility. The HR here has the ability to establish strong positions on issues that are rooted in thoughtful opinions and sound data. As a result, there will be the ability to conduct appraisals without elements of bias, and this will make employees contented with the process.

Conclusion

Just like other organisations, Qantas has its own HRM performance management issues. Among them is the lack of employee engagement in the planning of work and this works to diminish the incentive for employees. Another issue is the mistrust that employees have with the company’s appraisal system as most regard it as being bias. Employee development also has its issues given what the HR impacts and the immediate results that they expect. Remuneration prospects have also come out as a big challenge given that employees feel they are being awarded meager wages compared to the industry’s standard hence killing the incentive to work. Despite these issues, there are a variety of things that the HR can implement to solve the problems and create an endearing working environment.

References

Broadbridge, D. (2012). QANTAS: A Business Case Study, Volume 12 (12th ed.). Get Smart Education Pty. Limited.

Guest, D. (2011). Human resource management and performance: still searching for some answers. Human Resource Management Journal, 21(1), 3-13.

Krausert, A. (2009). Performance Management for Different Employee Groups (1st ed.). Dordrecht: Springer.

Liff, S. (2011). Improving the performance of government employees (1st ed.). New York: American Management Association.

Mizrahi, S. (2016). Public Policy and Performance Management in Democratic Systems: Theory and Practice (1st ed.). Springer.

Paauwe, J. (2011). HRM and Performance: Achievements, Methodological Issues and Prospects. Journal Of Management Studies, 46(1), 129-142.

Stanton, P., & Nankervis, A. (2012). Linking strategic HRM, performance management and organizational effectiveness: perceptions of managers in Singapore. Asia Pacific Business Review, 17(1), 67-84.

Truxal, S. (2013). Competition and Regulation in the Airline Industry: Puppets in Chaos (1st ed.). New York: Routledge.

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