Chapter 13: The role of HR management

Question 1

What is Human resource management?

Strategic role of HRM

Answer 1

The management of the total relationship between an employer and its employees in order to achieve the strategic goals of the business.

Strategic role of HRM

Question 2

What is the strategic role of HR?

Strategic role of HRM

Answer 2

To maximise business productivity by ensuring employees are efficient and effective, through long-term, proactive planning that aligns HR practices with the strategic goals and direction of the business.

Strategic role of HRM

Question 3

What is the objective of HR managers?

Strategic role of HRM

Answer 3

To create a workplace where employees are supported + likely to succeed, while also meeting business objectives.

Strategic role of HRM

Question 4

How can reducing labour costs help a business?

Strategic role of HRM

Answer 4

It can improve competitiveness and profitability but must be balanced to avoid lower output quality.

Strategic role of HRM

Question 5

Why should businesses view employees as assets, not costs?

Strategic role of HRM

Answer 5

Skilled, motivated staff give businesses a sustainable competitive advantage, especially with high competition for talent.

Strategic role of HRM

Question 6

How can HRM help manage workplace conflict?

Strategic role of HRM

Answer 6

By acknowledging employee-employer differences and using effective communication and negotiation stratgies .

Strategic role of HRM

Question 7

How does positive workplace culture support strategic HRM?

Strategic role of HRM

Answer 7

It encourages open communication and retraining, helping businesses adapt to change and remain competitive.

Strategic role of HRM

Question 8

What are key components of strategic HRM?

Strategic role of HRM

Answer 8

• Talent development
• Recognition and reward systems
• Diversity and inclusion
• Leading organisational change
• Remote work adaptaton
• Ethical HR practices.

Strategic role of HRM

Question 9

What are the benefits of strategic HRM?

Strategic role of HRM

Answer 9

• A skilled, productive workforce
• better conflict management
• adaptability to change
• workforce becomes a competitive advantage.

Strategic role of HRM

Question 10

How many people does Qantas employ and across how many job categories?

Strategic role of HRM

Answer 10

Over 27,000 employees across 200 separate job categories.

Strategic role of HRM

Question 11

What major HR reform did Qantas undertake during the 2010s?

Strategic role of HRM

Answer 11

Qantas reformed HR by outsourcing and building a more flexible workforce to minimise costs and increase productivity.

Strategic role of HRM

Question 12

What was a consequence of Qantas’ 2010s HR reforms?

Strategic role of HRM

Answer 12

Ongoing, industrial conflict, which Qantas now aims to manage through improved workplace relations.

Strategic role of HRM

Question 13

How did Qantas HR respond to the COVID-19 pandemic?

Strategic role of HRM

Answer 13

They made over 9,000 staff redundant to reduce costs

Strategic role of HRM

Question 14

How did Qantas’ HR strategy shift post-pandemic?

Strategic role of HRM

Answer 14

They shifted the focus to recruitment and training to support workforce growth to over 32,000 employees by 2033.

Strategic role of HRM

Question 15

How does HR contribute to Qantas’ strategic goals?

Strategic role of HRM

Answer 15

By helping manage change, improve working life, ensure legal compliance and support competitive advantage.

Strategic role of HRM

Question 16

What are the outcomes of Qantas’ strategic HR initiatives?

Strategic role of HRM

Answer 16

Cost minimisation, improved workforce productivity, better employee relations, and long-term business sustainability.

Strategic role of HRM

Question 17

How does HR have interdependence with Operations?

Interdependence with other key business functions

Answer 17

HR recruits and trains staff with the skills needed for production; monitors performance and ensures effective training to meet production goals.

Interdependence with other key business functions

Question 18

How does HR have interdependence with operations in Qantas?

Interdependence with other key business functions

Answer 18

HR supports ops by hiring skilled staff (e.g. pilots, engineers); responds to changes like downsizing or tech; helps improve service quality, cost-efficiency, and flexibility.

Interdependence with other key business functions

Question 19

How does HR have interdependence with Marketing?

Interdependence with other key business functions

Answer 19

HR provides skilled and motivated staff to develop and deliver products aligned with customer needs; marketing initiatives requried employees skills.

Interdependence with other key business functions

Question 20

How does HR have interdependce with Makreting at Qantas?

Interdependence with other key business functions

Answer 20

HR works with marketing to tailor job descriptions and training, rewarding successful marketing. Qantas’s marketing success relies on HR delivering skilled + creative staff.

Interdependence with other key business functions

Question 21

How does HR have interdependence with Finance?

Interdependence with other key business functions

Answer 21

HR decisions (e.g. recruitment, training) require financial resources; budgets allocate training funds; HR helps control labour costs and boost profitability.

Interdependence with other key business functions

Question 22

How does HR have interdependence with Finance at Qantas?

Interdependence with other key business functions

Answer 22

Qantas invests $275M+ annually in training for over 27K staff, financial decisions (e.g. outsourcing) affect HR (acquisition, separation)

HR helps boost productivity and service quality to drive revenue and control costs.

Question 23

What is outsourcing?

Outsourcing
– human resource functions
– Using contractors
– domestic, global

Answer 23

The use of a third-party specialist business to perform non-core activities, aiming to reduce labour costs and benefit from specialist skills.

Question 24

What is the most common reason for outsourcing?

Outsourcing
– human resource functions
– Using contractors
– domestic, global

Answer 24

To reduce costs, focus on core functions, and improve quality by using specialists.

Question 25

What are the three main goals of outsourcing? ## Footnote *Outsourcing – human resource functions – Using contractors – domestic, global*

Answer 25

1. Cost reduction 2. Focus on core business functions 3. Improved quality through specialist providers

Question 26

Why do small to medium businesses often outsource HR functions? ## Footnote *Outsourcing – human resource functions – Using contractors – domestic, global*

Answer 26

They have similar HR needs to large firms but lack the resources to support all specialist HR functions internally.

Question 27

Which HR functions are most commonly outsourced? ## Footnote *Outsourcing – human resource functions – Using contractors – domestic, global*

Answer 27

* Recruitment * induction, * training & development, * mediation * and payroll.

Question 28

What is a common use of outsourcing besides doing the HR work? ## Footnote *Outsourcing – human resource functions – Using contractors – domestic, global*

Answer 28

To review and improve existing HR practices and develop in-house strategies.

Question 29

What are some HR areas that independent consultants may review? ## Footnote *Outsourcing – human resource functions – Using contractors – domestic, global*

Answer 29

* Change management * Employee surveys * Compensation systems (wages & salaries) * HR policies and programs * Benchmarking

Question 30

What are the main benefits of outsourcing HR functions? ## Footnote *Outsourcing – human resource functions – Using contractors – domestic, global*

Answer 30

1. Focus on core activities 2. Cost reduction 3. Improved service quality

Question 31

What are the disadvantages of outsourcing HR functions? ## Footnote *Outsourcing – human resource functions – Using contractors – domestic, global*

Answer 31

It may not always deliver all plannted benefits. * Cost-savings may not be achieved * Employee unrest due to job insecurity * Lack of compatibility with external providers * Loss of control over HR decisions and policies

Question 32

What must a business do before outsourcing HR functions? ## Footnote *Outsourcing – human resource functions – Using contractors – domestic, global*

Answer 32

* Establish clear objectives and contracts * Identify which HR functions are core vs. non-core * Create a transition plan for smooth implementation

Question 33

What is a contractor? ## Footnote *Outsourcing – human resource functions – Using contractors – domestic, global*

Answer 33

an external provider of services hired for a specific task; not an employee. May be rehired for future jobs.

Question 34

Why do businesses use contractors? ## Footnote *Outsourcing – human resource functions – Using contractors – domestic, global*

Answer 34

To save costs and access skills or expertise not available within the business.

Question 35

Advantages of using contractors? ## Footnote *Outsourcing – human resource functions – Using contractors – domestic, global*

Answer 35

* Fill temporary positions * Fewer employment costs (e.g. no super, sick leave) * Employment ends with task completion

Question 36

Disadvantages of using contractors? ## Footnote *Outsourcing – human resource functions – Using contractors – domestic, global*

Answer 36

* Time lags in hiring * Lack of loyalty * Issues if work isn't completed as agreed

Question 37

What are domestic contractors? ## Footnote *Outsourcing – human resource functions – Using contractors – domestic, global*

Answer 37

Contractors within AUS who understand local business practices, laws and time zones, simplying communication.

Question 38

Whatare advantages of using domestic contractors? ## Footnote *Outsourcing – human resource functions – Using contractors – domestic, global*

Answer 38

They have developed expert knowledge of the HR function based on their knowledge of how Australian businesses operate. - fewer communication barriers - operate in same time zones

Question 39

What are global contractors? ## Footnote *Outsourcing – human resource functions – Using contractors – domestic, global*

Answer 39

Offshore contractors used to lower costs or gain local knowledge when expanding internationally.

Question 40

Advantages of using global contractors? ## Footnote *Outsourcing – human resource functions – Using contractors – domestic, global*

Answer 40

* Local cultural/language expertise * Cost savings from exchange rates and wage structures * Builds trust in host countries

Question 41

Disadvantages/risks of global contractors? ## Footnote *Outsourcing – human resource functions – Using contractors – domestic, global*

Answer 41

* Loss of quality control * Cultural/language issues * High turnover * Security risks (e.g. poaching clients) * Legal limitations in foreign systems

Question 42

What are the three international staffing policies? ## Footnote *Outsourcing – human resource functions – Using contractors – domestic, global*

Answer 42

**1.** **Ethnocentric**: Hire from parent country **2.** **Polycentric**: Hire locals in host country **3.** **Geocentric**: Hire best person regardless of nationality

Question 43

Why has Qantas increasingly turned to outsourcing? ## Footnote *Outsourcing – human resource functions – Using contractors – domestic, global*

Answer 43

To become more cost-effective + simply operations.

Question 44

How does Qantas domestically outsource HR? ## Footnote *Outsourcing – human resource functions – Using contractors – domestic, global*

Answer 44

* Jetstar: Call centres → Sales Force (melbourne) * Qantas: Voice/Data services → Telstra * IT operations → IBM * Ground services → Swissport (local staff, Aussie laws)

Question 45

Examples of Qantas global outsourcing: ## Footnote *Outsourcing – human resource functions – Using contractors – domestic, global*

Answer 45

* Aircraft maintenance → Singapore, NZ, USA * IT support/maintenance → India * Reservation system → Amadeus (Germany)