Challenges that May Affect Emirates Airline in Future and the CHRM Strategies - Case Study Example

Human resource management: CHRM Name Institution Date Introduction Most companies in the world today face serious challenges that threaten to put them out of business. The problems may be quite difficult to solve due to lack of preparedness or strategies of solving them. This is mainly attributed to the fact that the human resource department did not carry out investigations and surveys to determine the occurrence of such problems in future. With this in mind, the human resource management has carried out a survey using CHRM and has identified likely problems the organization may face in future. The concept of CHRM is also important in providing a room for assessment of the problems and proposing solutions (Fujimoto, 2007). The environment of the organizations was also assesed to establish potential future challenges. Several problems have been identified and are mainly attributed to the changing nature of the work place and economic changes as a whole. Workforce diversity is also a contributing factor to the problems predicted. The paper will thus discuss the major challenges that may affect Emirates Airline in future and the CHRM strategies that may solve these problems. Major challenges likely to be faced by the organization in future Change management Most of the employees in the company have been working for the company since its establishment in 1985. During the period very minimal changes has been taking place in some areas of the company’s operations. This is mainly because the company had a good support from the start and as a result it became the leading company with minimal competition (Business traveler, 2008). The company enjoys the support of the government considering that it is a stakeholder in the company. The government was able put in place measures that facilitated the establishment of the company. However over the years new concepts have been developing and the company has to embrace to the changes. This is in order to effectively satisfy its clients, to gain certification, to win awards and to beat its competitors and to remain the best airline in the world. The new concepts in the airline industry are the methods currently used to book flights and also the payment methods. Initially the clients had to visit the company so as to book for flights; however with the advent of e-commerce flights can be booked online. Developing a website that supports e-commerce is an important aspect for the company since this will improve sales and also advertisements can be made online. This is comparing to the earlier times when advertisements were mainly made through the print media and television. Most of the rival companies have already adapted to some of the practices posing a serious competition to the organization. Some of the new concepts that have emerged and are a requirement for recognition and certification include quality management, performance management and appraisals and employee empowerment (Dodge, 1994). The company is thus preparing a framework of how these practices will be implemented in the near future (Emirates Airline, 2012). This is set to bring about a lot of changes as the practices are quite involving and have new concepts. Since most of the employees are new to these practices, it is likely to bring about a lot of challenges to the organization due to the change that will be required in the organizational culture and behavior. The old practices were mainly manual as the use of information technology concepts had not been fully embraced. The clients were attended to manually and data recorded manually. Some employees may adapt at a slower rate, others may resist the changes while others may opt to resign. This will present serious challenges to the organization in terms of managing the changes. This may end up taking a lot of time in training the employees to adapt to the changes which will end up slowing the operations at the organization. The training of employees in the company is usually conducted internally although external training is sometimes carried out incase the training will take a long period of time. Staff recruitment and succession plan Since the company was established back in 1985, some employees recruited at the time are still working for the company. Some of the senior staff members have also been working for the company for a long period of time. This means that some of them will have to retire in the near future. It will be a must for the company to replace them with the right people whether from the company or from outside the company. The challenge that lies ahead for the company is the succession plan. This is considering that some of the employees have achieved great success and have formulated great strategies for the company. A succession plan is thus important for any organization (James, 2007). They operations of the company may be affected if the right people are not recruited to replace those who will retire. However the main challenge is the mode of recruitment of the staff that is likely to present more challenges to the organization. The organization has been using the older method of face to face interviews. This alone is no longer recommended as it may end up with candidates who are not qualified enough. Some of the staff members will end up retiring at the same time since they are from the same age group. As a result of this the new employees will not find it easy to cope as there will be no one to guide them through the processes in the organization. It is therefore important that the organization recruit competent staff that will not require many guidelines to start the job. With the mode of staff recruitment in the company it will be difficult to employ competent staff. This challenge may end up affecting the operations of the company. Health and welfare costs When the organization was formed, it had a few number of employees. However over the years the organization has been expanding its workforce ranging from permanent to contract employees. Currently the company is developing an expansion plan to increase its market share and met the customer’s demands. This plan will see thousands of new employees being recruited into the company. Due to global economic changes the employee’s welfare has been increasing in terms of costs (Dess, 2003). The insurance companies have been increasing their rates and as a result the insurance cover for the employees has become quite costly. Considering that the company is expanding and more employees will be recruited, the cost of insurance cover is set to be much higher. Insurance cover for employees is a government regulation and it is required that any employee should be covered by an insurance scheme. The company is already spending billions in payment for this scheme. The welfare benefits for the employees are also increasing every year due to the harsh economic situation. As a result of this the company has been forced to pay huge amounts every year. With these increments and expansion, the company is set to pay even more in future. This will greatly affect the profit margins of the company. If proper measure are not taken to solve this issue then the company risks making loses due to high internal expenditure. Most of the employees are also demanding for better insurance schemes to cover them together with their families. This will result to an increase in expenses if their plans are considered. At the same time the company cannot risk the healthy of the employees by under covering them. This is mainly because no employee will perform well if he or she is not adequately carted for. This issue is thus a recipe for a major challenge to the company in future (Melanie, 2012) Assessment of the situation using CHRM decision making frame work According to the problems discussed, the assessment shows that there are two major types of challenges that will face the organization in future. Financial shortcoming is one of the greatest problems. The organization has a potential since it is one of the most successful organizations in the world. The issue of the employs is quite challenging and it is considered a big challenge to the future of the organization. This is because it will end up delaying operations at the organization. It is therefore important to devise a succession plan that will deal adequately with the issue of the employees adapting to changes and recruitment. The employees should be informed of these changes in advance (Alvin, 2010). They should be taken through the process step by step. This will also be reinforced by training of the employees. During the training process, the employees should be made to feel that they are still part of the company and the training is aimed at making their skills better. All the employees should be taken through those processes as it will be important to them all. The management will benefit by the training as they will get to know to handle the recruitment process as well as change while the other employees will be equipped with the knowledge of change management (Marcia, 2012). If these strategies are implemented, then the challenges will easily be dealt with in future or even avoided. According to the assessment on health and welfare benefits, the problem is likely to affect the financial situation of the company. However, the company being among the most profitable airline company in the world, it has the potential of making profits al year round. This is attributed to the high number of bookings all year long. Although the company has been able to sustain the healthcare financing for its employees this problem is real and it may end up escalating to a full financial crisis. To deal with the future occurrence of this problem, the company should consider some strategies. Due to completion in among the various insurance companies, there are various companies that offer the same services at a lower cost. Since the company has been with the same insurance company al along, it should reconsider the insurance service provider. The company should opt to contact a different insurance service provider. This will avert the problem from becoming full scale. Although this decision may face resistance initially, it is for the best interest of the organization. Conclusion In conclusion, it is worth noting that CHRM has been used to assess the Emirates Airline. The concept has identified several future challenges likely to affect the company. It is evident from the paper that the organization may end up facing serious financial problems and also challenges in the staff. The paper attributes these challenges from the fact tat the company has not been making changes for long. The company is also planning to expand and as a result employ more staff for its operations. However through the assessment using the CHRM concepts, the solutions to the challenges have been proposed. If they are adapted, then the organization is likely to divert these problems in future and avoid conflicts and major loses. The paper also emphasizes the importance of CHRM in operations of the organization and its usefulness in terms of identifying potential challenges and identifying strategies to solve them. According to the paper, if these strategies are adopted, then the organization will greatly benefit and the potential challenges will be solved. References Dess G, et al (2003). Strategic management: Creating competitive advantages. Boston: McGraw-Hill Irwin. Huang X, et al (1999). An analysis and classification of problems in small business. International Small Business Journal, 18(1), 73–84 Marcia M, (2012) Challenges for Human Resource Managers. Retrieved on March 09, 2012 from Read More