Managing in Changing and Difficult Times: The Case of World Airlines

Question One

On the basis of what were told, what is the purpose of the proposed approach, what needs to be implemented and what needs to be negotiated?

Purpose of Proposed Approach

According to the figures given and mentioned

specifically at the case, World Airlines at present have a huge cost base. To cut cost, considering its existing huge cost base against the recessive global economy.

Suggested Implementations
To approach staffs for voluntary redundancy against

negotiated rewards, instead of enforced job cuts that would possibly affect the companys strong standing at stock market. To emphasize redundancy proposals on management wing than operational wing. To negotiate with existing staff, emphasizing on operational wing, for working extra hours to curtail requirement of hiring more staff. To align cost cutting measures with process of business development.

Suggested Negotiation
To negotiate with staffs, emphasizing on management

wing, for voluntary redundancy. To negotiate with staffs, emphasizing on operational wing, for working for extra hours. To negotiate with trade unions so that redundancies and proposals of extra works can be implemented within an agreement that eventually would not hurt the companys image at stock market

Question Two

What are the advantages, disadvantages and pressures that have to be addressed of these proposals?

Advantages of Proposals
The recommendation of going for cost cutting now

instead of two years later would allow the company to put itself ahead for a long term plan to face challenging situations. Immediate cost cutting plans, which are recommended to be aligned with business developments, would allow the company to simultaneously realize its cost cutting and longer term business development plans.

Disadvantages of Proposals
Imposed redundancies would expose the company to

the stock market with the message that it is in trouble and would possibly trigger slumps in share prices. Sudden redundancy of 7,000 staffs would damage the companys reputation that would obstruct the process of attracting future investments. The proposals does not include recommendation to reconsider highly modern and expensive offices in major cities, where there might be areas to cut cost.

Question Three

What else needs to happen in order to design a strategic approach to HR in order to get WA through its period of difficulties?

Recommendations for New Strategic Approach

To do thorough research over relevant market and

competitors to settle the reward standard of staff. To revise necessities of highly demanding regional offices and to optimize performances by making necessary adds and drops. To revise or keep check on number of staffs and spread of the management wing in order to optimize performances and cut costs. To prioritize the companys stock market standing and reputation in the market while making drastic decisions or moves regarding the human resources.

THE END