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Role and Importance of HR Management in an Organization

27149Downloads1 I Published: 07 May ,2018

Introduction to Human Resource Management

A good human resource of an organization helps in building an excellent team of working professionals. The major functions of Human Resource Management in a company are hiring employees, give them training, assess their performance, motivate them with right motivational strategies, improve relation between employee and employer, ensure workplace safety etc. The main aim of it meets the organizational objectives. For this, it mobilizes the existing resources by using productive activities. Human Resource Management is an important part of a firm because it links business strategies to its operational events. It focuses over the effective utilization of human resources by shaping the organizational structure. This also works for satisfaction of personnel so that their performance level improves over the time. The present study is based on Human Resource Management and to understand this, a case study of High Flyers is taking into the consideration. As per the given case scenario, in 1990, the Singapore Government had prepared Two Airline Policy for two airline organizations i.e. Singapore Airline which was government owned and another one was Silvertail Airline which was national competitor of government airline company. The purpose of following contract was to make sure about the comfortable arrangement of airline services at airline terminals for public well. In this context, Silvertail had emerged as an airline with a new image in the marketplace. But the issue was because of despite seemingly generous redundancy offers. Cabin crew and ground crew was declined to accept them. By considering the following case study, some objectives will be covered in current study. Implications for Silvertail in case of adopting the plan to deal with older workers, evaluation of downsizing tactics along with their implications and preparation of HR plan to address the future HR needs will be discussed in this research.

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Critical analysis of the current implications if Silvertail were to adopt the plan suggested by Sam and Bobbi

As per the given case study, it has been found that one of employees of Silvertail i.e. Bobbi was suggesting to change eligibility of the employees for promotions. Under this, every staff member should know a second language and a degree. The reason of doing this is most of the team members at cabin crew and ground crew were too old. To establish a good and new, young and innovative image in Airline Industry, it was become important to increase the number of younger personnel at the workplace. If Silvertail were adopt the plan suggested by Sam and Bobbi them, there were some implications rise in front of the company which are as follows

Technology challenges

Older professionals of Silvertail were not having the knowledge about the current trends and were not willing to learn new technologies. Along with this, they were not able to cope up with new chances in the organization. In the case of implementing suggested plan than it might be affected the daily work routine of existing cabin and ground crew members because they were needed time to learn new things and it might be created an additional expenses of cited organization. The implication of this thing was also on productivity of personnel which might be reduced over the time to learn new knowledge and skills.

Loss of expertise

If Silvertail was imposing proposed plan at the workplace than loss of expertise was an implication for the company. It is very well known that old personnel are having plenty of knowledge and experience. This thing can give advantage to employer and its employees to learn various things and attain the business objectives. So, if cited frim was execute prepared plan than most of the older employees could left the organization. Due to this, there were not experience staff members who could guide younger and newly join personnel in the right direction.

Increase retention ratio

If Silvertail were imposing developed plan within the organization than it might be possible that number of retention of workers increases. For example, if a younger employee guide existing and more experience person than it cannot be annoyed. Same thing could be happened in Silvertail because for getting the promotions, older and existing staff members were needed knowledge of second language and one more degree. This thing was de-motivated current workers but attract the new employees. The impact of this implication over the cited organization was the numbers of experience personal were increase and that was not too good for the growth for the company in complex situations.

Increase probability of discrimination on the basis of age and experience

Another implication of suggested plan of Silvertail was raise probability of discrimination on the basis of age and experience. As per the given case study, it has been clear that new plan for promotion was require a sufficient knowledge of second language and one degree. In the case of older cabin and ground crew member to learn a new language was impossible. Along with this, to complete a degree it might took five year to complete. But for newly recruit personnel, it was an opportunity to attain a enough growth in career. This situation might increase discrimination issue with the older employees in the terms of age, education and experience in oppose of new younger employees. It was put the negative impact on the productivity of the workforce and might lead to enhance the dissatisfaction level for the management.

Critical evaluation of downsizing tactics and their implications

Downsizing is a business strategy which aims to improve the financial position of the company by minimizing and changing workforce structure. It brings overall improvement in the business of organization. This is known with some other names such as compressing, de-hiring, restructuring, reduction in force, resizing, slimming etc. According to the given case study of Silvertail Airline, it has been determined that company was planning to promote the younger ones employees within the organization. For this, it was planning to make changes in qualifications for promotion where it was compulsory to knowledge of second language and one degree. It was easy for the new hires because the only ones who apply for jobs knew they had to be bilingual and have a degree. But for old ones, it was too much harder to getting both of them. If someone existing employee would like to learn language and pursue a degree than they have to pay for it and degree must be completed within five years. It would be pretty hard to complete a degree for cabin crew members and if they would not able to do it than they would have to left the job or shift to other departments. In this context, there were two downsizing tactics adopted by Silvertail which were old workforce reduction and workforce redesign. There evaluations and implications are as follows

Workforce reduction

It is one of the popular downsizing strategies that follow by many of the companies with the aim of fulfil critical positions at the workplace. The actions involve in this method are laying off, firing employees, mandating early retirement, transferring individuals etc. The aim of this technique is reduction in workforce which are working at unnecessary positions and this thing reduces overall head counts of firm. In the context of Silvertail Airline, the purpose of workforce reduction downsizing tactic was to bring the reduction in older employees who was currently working at cabin and ground crew and promote the younger ones. The reason of adopting this method was older ones cabin crew and ground crew was less comfortable with long haul flights and also having family concerns. But the younger hire employees would not mind to take long haul flights and they do not have family concerns.

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From evaluation of workforce reduction, it has been found that it was help cited company to gain immediate profits, reorganize cabin and ground crew and take competitive advantages in an effective manner. Along with this, it was bring the reduction in older manpower from important job positions because they were not much enthusiasm and initiative. The overall impact on workforce reduction downsizing strategy was it save job positions and maintains a positive reputation with creating a new, young and innovative image in airline industry. But the implication of this tactic over Silvertail Airline and its existing employees was they were feeling less motivated. Older personnel were starting left the company with the time and the result of this, firm had lost its expertises that could guide young hire and business with their huge experience. From this discussion, it can be said the workforce reduction strategy of Silvertail Airline were bring negative implication for the business and this could affect other operational activities of firm.

Workforce redesign

Apart from reduction of employees, company adopts workforce redesign downsizing strategy. This type of tactic helps the organization to restructure of personnel in terms of modify job description and job specifications. It assists in develop and maintain coordination between the existing and new staff members. It promotes young hires within the organization that leads to enhance overall productivity of business. In the context of Silvertail Airline, it has determined that company was planning to hire new, innovate and young staff members for cabin and ground crew because they would not mind to take long haul fights and would not too much concern family responsibilities. The reason of this the older ones were not comfortable with long haul flights.

From the evaluation of workforce redesign downsizing strategy, Silvertail were able to attract new and skilled employees towards the organization by redesigning job description and position description. But the implication of this was the older and well experience workforces were unable to complete internal competency requirements. Along with this, it was making the tasks challenging for forty or fifty year old employees. The result of this, most of them were not able to meet the standard and they could not work as cabin crew for too long time.

Providing suggestions on the various alternatives downsizing

As per the given case study, it has clear demonstrated that Silvertail Airline was planning to attract new and young employees for cabin and ground crew by replacing older and well experience personnel. For this, management was planning to change promotion method and it this, there would require a degree and knowledge of second language. This tactic might decrease the number of experience employees and could affect the overall productivity of the organization. To reduce the negative impacts of existing downsizing strategies, cited company should adopt some other alternatives which are as follows

Early retirement and buyouts

It means encouraging senior and experience to leave the organization early. Under this, employer gives additional amounts to staff members so that they will not penalize from economic side until their social security and pensions benefit are safe and enough for survival. With the help of the following alternative, Silvertail should organize some voluntary termination programs or buyouts so that experience old age cabin and ground crew members quit from company with financial incentives. It would be an effective way that will assist in hire new and young staff members without resorting to layoffs the existing ones. Along with this, buyouts will allow management of Silvertail Airline to reduce payroll costing at significant level with the time such as book three star hotels instead of five star hotels for staying cabin crew members at the time of long haul flights etc. The early retirement buyouts would reduce older age staffs rather than terminating them who were loyal and working from long for the company. Further, it would reduce the issue and probability of discrimination with the existing ones employees.

Systemic Approach

Although, it is a less popular downsizing strategy but effective. Under this, to bring the reduction in personnel number, management change culture and working environment of the workplace. The positive impact of this makes on reducing costing and expenses of the company that spends by a firm on educating the existing staff members for new positions. In the case of Silvertail, this strategy will helpful for the management to attract new and young employees for cabin and ground crew and replacing the older ones at other management job positions. It will increase productivity and business along with motivating the new personnel in the right direction to complete the assign job duties. The short term benefits of systemic approach of downsizing will not recognizable but long-term results will be positive. This will improve the flight service of Silvertail which will lead to meet the satisfaction level of the customers. Ultimately, it will raise the profit level of the firm without increase the probability of discrimination with older personnel during promotion and other job activities.

Work Redesign

By work redesign downsizing approach, an organization can eliminate unnecessary work at the workplace. It does not focus on reducing number of staffs rather than eliminating job positions. Due to this, vacant positions because of elimination can be easily redesigned. Within the context of Silvertail, management of the organization should adopt the following downsizing strategy. It will allow removing the unnecessary work from the jobs which will vacant the job positions. Along with this, job description and job specifications will be redesign so that new and young employees for vacant positions can be easily attracted. Further, this will transfer the older and experience personnel of cabin and ground crew to management and other job positions with other roles and responsibilities.

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Providing a HR plan to address the future HR needs including employer brand for Silvertail, training, career management etc of cabin crew etc

As per the given case study, it has been clear that in 1990, the Singapore Government had prepared Two Airline Policy for two airline organizations i.e. Singapore Airline which was government owned and another one was Silvertail Airline which was national competitor of government airline company. The purpose of following contract was to make sure about the comfortable arrangement of airline services at airline terminals for public well. In this context, Silvertail had emerged as an airline with a new image in the marketplace. But the issue was because of despite seemingly generous redundancy offers. Cabin crew and ground crew was declined to accept them. Further different kinds of downsizing strategies were adopting by the management to deal with the situation. It was bring the reduction in number of older staff member by promoting the younger ones at the workplace on cabin and ground crew. The following tactics were made negative implication over the working practices of the cited company along with affecting overall productivity. On the basis of negative impacts of downsizing strategies, there is a need of a HR plan that can significantly address the future HR needs including employer brand for Silvertail, training, career management etc of cabin crew. Here, five critical steps in preparing HR plan to meet cited company employer requirements are as follows:

Assessing current workforce

Under this, HR manager will determine the current skill, abilities and knowledge of existing employees of cabin crew. On the basis of getting information, strengths, education levels and additional training or certifications needs will evaluate. Along with this, at the time of assessment, the existing talents in the personnel will also consider during the evaluation process. By considering this, talents and skills of existing staff members will easily monitor. In addition to this, performance review will assist the HR manger of Silvertail to determine when workers are willing and able to take additional responsibilities than management can give them challenging work.

Creating employee development plans

To create a long term wining workforce for Silvertail, HR manager will require considering the needs of employer because it will provide a clear direction related to how to develop and modify skills and bring the advancement in their careers so that your business can move ahead. In order to develop employee development plans, HR manager of the cited company should consider some points such as consider business goals, communicating with the personnel, find out what skills current cabin crew employees needed etc. With the help of all of these points, HR manager will prepare an action plan.

Creating a succession plan

In order to bring a shift in the executive team or a reorganization of departments, Silvertail HR manager will require developing a succession plan. This will help in minimizing disturbances or issues by identifying critical roles of cabin crew members in the organization. Under this, personnel will directly involving at the time of creation of succession plan. The aim of this stage in HR plan is to establish a communication with all cabin crew employees to find out what their career goals are, what development they feel they need to attain those aims, where they see themselves in the future and what skills and capabilities they will require to reach in the future position.

Performing a gap analysis

To conduct the following process, HR manager of Silvertail will take a look of current job descriptions, Employee handbook information, Training programs, Health benefits offer by management to cabin crew members and present Business performance. All these points will assist in determine the performance gap of existing staffs so that a new and effective plan can be developed in the future.

Taking course of actions

On the basis of the above outcomes, HR Manager of Silvertail Airline will take sort of actions to meet the gaps. For this, company with either hire new employees or train the existing ones to manage the organizational expectations.


From the above research, it can be concluded that human resource management has an important functional department of organizations. In the case of High Flyers Case study, it has been found that management was planning to create a new and innovative image in public. For this, they were planning to change in job descriptions such as require a degree and additional knowledge of second language. This was attracting the new and young employees for cabin and ground crew positions by replacing old and existing ones. The following plan was made several implications on the business of cited organization. Along with this, different downsizing strategies were following by Silvertail Airline to attain major objective. Further, by adopting other suggested alterative tactics, the negative impacts of current downsizing strategies have reduced. In addition, by following a systematic HR Plan, the future HR needs including employer requirements have accomplished.


  • Arulrajah, A.A. and, 2015. Green Human Resource Management Practices: A Review. Sri Lankan Journal of Human Resource Management.
  • Cardona, P. and, 2013. Manager-subordinate trust in different cultures. Routledge.
  • Holland, J., Burnett, S. and Millington, P., 2015.Employment Law 2016. Oxford University Press.
  • Oke, L., 2016. Human Resources Management.International Journal of Humanities and Cultural Studies (IJHCS)​ ISSN 2356-5926.
  • Paauwe, J., 2004.HRM and performance: Achieving long-term viability. Oxford University Press.
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