Qantas Case
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QANTAS RETRENCH CASE
By Guillermo Pita
Companies as part of its HRP (Human resource planning) are using "downsizing" for strategic planning in a process to get their goals.
Downsizing is defined as the reducing employees on the operating payroll.
Business use several techniques in downsizing: incentives to take early retirement, transfer to subsidiaries companies, shifting from Full time to Part time; but the most common technique is to simply terminate the employment of a certain number of employees.
If HR does not identify and select the right downsizing, it can be derivate to dumbsizing (downsizing that failed to achieve the desired effect).
Companies use downsizing for different reasons: to fix its financial problems, to be more competitive with their competitors and organisational redesign. But there is a factor that will be analise in the Qantas case, that is the strong firms like Qantas looking to boost shareholder value to get a increase in the CEO and executives salaries. This new focus is as consecuence of nowadays many companies are paying the bulk of executives salaries in stock options and stock itself.
Executives viewed cutting labor as a necessary and relatively painless method to boost profit margins. Companies usually focus on cost cutting (cutting labor) rather than revenue growth.
On 9 April 2003, Qantas Chief Executive Officer Geoff Dixon said: " Qantas Airways would make 1,000 employees redundant between now and 30 June...