Redundancy in New Zealand: Procedural Fairness and Remedies

verbosity in spick-and-span Zealand Procedural F diffuseness and RemediesArJun Sree Raman statute title of the studyRedundancy in new Zealand Procedural F transferness, Substantive Grounds, and Remedies. introductionRedundancy has become a normal part of organizational life, look forers be predicting that both the rate and the limit of job losses done tautology are likely to continue salubrious into the twenty first ascorbic acid (e.g. Appelbaum and Donia, cc1a Cascio, 2002 Dawkins et al., 1999). Generally redundancies within an organisation reach when there is a compensate in comp all tax revenue and/or work available or the comp each is looking to restructure and streamline the organisation (Wooden, 1988). In these luck the employee may find that their position is surplus to the comp some(prenominal)s requirements or needs. Therefore, the organisation or employer leave behind announce to the employee or employees affected that their contracts are going to be termi nated as their positions will no longer exist.Redundancy in New Zealand In the New Zealand Employment Law Guide (Rudman, 2014) the parturiency Relations Act 1987 defines circumlocution as a power where a workers consumption is terminated by the employer, the termination being attributable, wholly or mainly, to the fact that the position fil guide by that worker is, or will become, superfluous to the needs of the employer. Thus, it is the position itself that is make redundant and the decision to shoot a position redundant should score nonhing to do with the busy employee who is filling that position. Redundancies be possessed of to be for genuine commercial apprehensions and not for any some other underlining reasons such(prenominal) as capability or implementation issues.Redundancy is acknowledged within New Zealands purpose relations system, as it is in some(prenominal) countries. However, in contrast to the majority of foreign jurisdictions, successive g overnment s in New Zealand pass water decided not to codify the law relating to verbosity and provide definitive protection for employees who face a redundancy situation (Hughes, 2011). Venn (2009) provides a comparison with other Organization for Economic Cooperation and Development (OECD) countries, highlighted New Zealands minimal protection for employees in situations involving redundancy. In particular, Venn emphasized New Zealands miserable cover in mass redundancy situations. The fol littleing figure understandably depicts the limited protection in correlation to the other OECD countries.Figure 1 Strictness of Employment Protection OECD Countries (Venn, 2009)Effects of Redundancy From an organizational perspective, the frugal outcomes of redundancy are open to debate (Cascio, 1993 Ryan and Macky, 1998) but it is widely accept that for the unmarried, redundancy rump lead to a wide range of detrimental outcomes. Redundancy is a great deal associated with diminished mental well being, while long-term unemployment lot lead to physiological deterioration (Leana and Ivancevich, 1987). As Wooden (1988) comments The concern unaired to redundancy stems from the perception that job loss involves true economic and psychological salute for the adversely aected worker and his or her family. The worker make redundant must(prenominal) immediately deal with the shock of job loss. For example, redundancy has been found to impact on employees in terms of loss of morale, displace organizational commitment, withdrawal behaviours such as absenteeism and increased turnover, loss of motivation, mistrust, uncertainness and insecurity (e.g. Brockner, 1988 Brockner, Grover and DeWitt, 1992 Dolan and Belout, 2000 Kos starting timeski et al., 1993 Latack, 1990 ONeill and Lenn, 1995 Worrall, Campbell and Cooper, 2000).Waters (2007) study on voluntary and in-voluntary redundancy tests the divergent attitudes and thoughts employees are feeling when it comes to redundancy. R edundancy john look at serious implications for those it has happened to and can be an extremely difficult time during the entire process. Employees fear for the here by and by and responsibilities they have outside of their working life. Employers should let the last outing employees express their provoke or frustration and inform them that it is perfectly normal to express their feelings. remove (2008) investigates the effects of redundancy during a stiff economy and low unemployment rates. hit says that the compute of people experiencing redundancy is surprisingly high. This can come as a shock and be difficult for employees who have been with an employer for a substantial upshot of years as they are suddenly back in the job securities industry. Looking for a job after so many years of working and competing with thousands of others who have as well as lost their jobs can be very traumatic. According to Burke, Being made redundant can have similar emotional effects to b ereavement. People still see a stigma attached to being made redundant and would feel humbled or humiliated about being in the situation.Redundancy also results in a range of negative economic outcomes, including interruption to employment and career paths, loss of income, and potentially nancial hardship (particularly where it is followed by an extended occlusion of unemployment). Ewart and Harcourt (2000) assessed the effects of a mass redundancy at a New Zealand skyway on a group of 139 ground stewards in August, 1991. Findings show that the ground stewards post-layoff bread have declined nearly 40% by 1996, from $50-55,000 to $30-35,000. This was a severe decline than that documented in most studies, in which earnings losses of 10 to 20% were to a greater extent common and 5 to 10% were not unusual. Ewart and Harcourt identified the primary cause to be the non-transferrable highly particularised training and work experiences to the air outline industry. Furthermore, ground stewards also expressed darksome feelings of bitterness post-redundancy as 94% of the respondents thought that the company had handled the dismissals very inappropriately.Those who remain after a period of redundancy are known as the survivors and are often described as suering from survivor sickness (Noer, 1993) or survivor syndrome (Appelbaum and Donia, 2001a, 2001b Brockner, 1988). Noer (1993) denes survivor sickness as a term that describes the attitudes, feelings, and perceptions that occur in employees who remain after involuntary sta reductions. Survivors may exhibit a range of emotions including fear, insecurity, uncertainty, frustration, resentment, anger, sadness, depression, guilt, unfairness, betrayal and distrust (Noer, 1996). Redundancy impacts further on the individual by dint of changes to the psychological contract. Rousseau (1995) notes that, redundancy and restructuring have imposed on workers employment arrangements they did not choose. She suggests that the psychological contract, which the employee originally accepted, changes as organizations restructure and nds new ship canal of doing things. In the process of change, jobs are altered but employees do not feel thaw to renegotiate the contract.Research QuestionsThe research questions proposed below are the fundamental core of this redundancy study. It focuses on factors within the redundancy such as adjective fairness, substantive grounds, and remedy. The research questions are as followsTo what extent do employers follow procedural fairness?To what extent do employers have substantive grounds for redundancy?In situations where employers fail to follow procedural fairness and substantive grounds, what are the remedies produceed to the employee? humbled budget respiratory tracts digestLow budget airlines AnalysisRyan Air Europes First low budgeted airline. Ryan air was founded in 1985 by the Ryan family header by Tony Ryan. To provide scheduled passenger airline service between Ireland and the UK. Ryan Air Europe first Low-Fares, No-Frills carrier, offer a point to point service to customer that was the first European low- comprise airline task in Airline Industry.Ryan Air was a adequate service conventional airline, with two classes of seating, leasing three opposite types of Air forge. Ryan air Airlines is found on the feign of southwest airlines. A new management team, led by Michael OLeary. In 1997 company was floated in an IPO on the capital of Ireland Stock Exchange and on NASDAQ. (Gerry Johnson, et al, 2008)Mission statement of Ryan AirRyan air will become Europes most m superstary-making airlines through and through its motto Low- court- carrier, no- frills operate in all market which Ryan air operates.Ryan air ObjectivesTo establish Ryan air as Europes leading Low- woo airline through continued improvement and whirl of low cost budget price.Ryanair Business ModelRyanair billet model is based on south-west Airlines, the highly successful Texas based street girl. However, Ryanair was force by the financial difficulties in 1990 which required a complete restructure and new business model is formed. In 1991, CEO Michael OLeary visited US Southwest Airline and extracted their new strategy and business model from Southwests Low Cost leading model. Ryanairs Low Cost leaders model encompasses a single passenger class, a single type of airplane, a simple fuck scheme, unreserved seating, take flighting to secondary airdromes, fast turnaround times, no isolated amenities, minimum footgage allowance, employees working in multiple roles, and generation of ancillary revenue( Baker, 2006).Analysis strengthen and weakness of RyanairStrengthStrategy of Ryan air is Marketing- strong branding and reputation of crossroad. Ryanairs aggressive pricing strategy makes them different from other Airline companies in Europe. Low costing of tickets due to airport operator deals. A biggest advantage of Ryanair is Reputation as First Biggest Budget Airline in Europes. Main strength given to Ryanair by media through free footage to people from various Controversial issues created in flight and due to the risky decision made by chief executive Michael OLeary. Ryanair collects enormous addition from Ancillary revenues from on-board and online gambling, an in-flight mobile ph superstar service, including non-flight scheduled run and also from Ryanairs website. On time delivery which help customer to reach at their target. In future Ryanair planning to purchase new aircraft with huge faculty for sit which will generates lots of income as well as new highroads for attain destination much quicker. Ryanair control the provoke and noise emission by purchasing new Environmentally-favorable aircraft. (Sascha Mayer, 2007). If any delays due to climatic condition or technical quandary, then Ryan air Customer Service Desk (CSD) prompt reward is provided to customer.WeaknessEmployee relations Ryan airs relationship w ith employee is Fraught. Extra work ladle for Pilots. Also provide worthless working condition for staff. For example censor from charging of mobile phones at work place. Ryan air has been involved in number of labour union disputes.Lack of scales The Company is small in sizes compared to its competitors. Its competitors, such as British Airways, Lufthansa, Virgin Airlines all these Airlines are large in size and enjoy competitive advantages in financial, technical better benignant resources. As it was low fare Airlines in-flight Entertainment facilities were not available to passengers. habituated to bad press Relationship with media is always dreadful for Ryan air. make up it may be the incident of staff sleeping in the air craft or forcing pilots to sign new deal in order to fly new air craft. Every time Ryan air is on head line of media.Blocking Finance In increasing their passenger Ryan air has block lots of money in purchasing new Boeing in next six year.Long Routes Inste ad of main airports choosing Secondary and regional airports destinations for before long haul which much more far-off from passengers destination. For examples, Ryanair uses capital of Kentucky Hahn, 123 kilometres from Frankfurt Torp, 100Kilometres from Oslo and Charleroi, 60 kilometres from Brussels.Customer service Services provide to customer by Ryan air cabin crew were not satisfactory. Even breathing spaces for leg were narrow down.STRATEGICS CAPABILITY OF RYANAIREvery company must have adequacy and suitability of the resources and competences for survive and prosper in the market. henceforward Resources and competences are essential for any organisation. Initially Ryan air started their operations with a team of 25 and a single 15-seat Bandeirante Turbo-prop, flying between Waterford and capital of the United Kingdom (Box.T, et al 2007). In 1986, Ryan air current permission from the Regulatory government to begin flying four flights a day on the Dublin-London route with two 46-seat BAE748 turbo-props, by the end of 1989 Ryan air had six BAC-111 jets and three ATR 42 turbos (Box.T, et al 2007). Now Ryan air is giant player in Budgeted Airlines in Europe with 100 new Boeing 737-800 which flew out 18European base. According to Ryan Air head Executive Officer Michael OLeary organisation as place the order of 200 newest Boeing by end of 2009 and required the aircraft delivery by 2012(Robert 2009). Boeing 737 planes used commonly which were replaced with new aircraft, more environsally- friendly aircraft. Its rock-bottom the average age of surpass by 2.4years. Newer aircraft does not require more crew member.Before 2006 capacity of staff were around 700, in fiscal 2006, employee tally rise by further 700 to 3500 people from different nationalities. Cabin crew were given military commission from on board sales i.e. Euro49, 612 which is higher figure than any other leading airlines. Due to a low-cost HR strategy, which includes low costs via wage mi nimization, union avoidance and employee control, had contributed to making the company highly profitable. In addition, both strategies are similar in that they also include achieving low total costs by increasing operational productivity (Zagelmeyer.S, 2009). load Competence A corporate strategies are made with lots of research and development of product and services in todays world. Ryan air have made strategic decisions based on increasing their competitive edge, the main one reason involved in attracting customers at both ends of their routes (Haberberg and Rieple 2001). In Ryan air case company focal point is on providing low cost, efficient, frequent connections and subsequently offering no other frills or supporting services on their flights, due to this outcome, Ryan air has no need for the numerous subsidiaries that Aer Lingus own(Peter Kangis, M. Dolores OReilly, 2003). The performance reliability of Ryan air is high for the reason that customer product grapheme and the a irports served, airline product is not delayed because of point to point services due to this check-in is much quicker and less complex than an interline one as well as boarding is quicker because seat plectrum is greater for earlier passengers at the departure gate for the reason that it operates from lesser-used non-hub airports the airline encounters less airport congestion than airlines serving major hubs (Barrett S. D. 2004).Ryanair Financial AnalysisDuring the period of 2004 through present, Ryanair has experienced significant growth in sales revenues and crystalize income. Since 2004, sales revenue has grown at a p.a. average of 32%, highlighted by a 41% growth from 2006 2007. lettuce income has experienced a yearly average growth rate of 25%, highlighted by a 51% growth from 2006 2007. While sales revenue continued to increase from 2007 2008, with 33% growth, net income was down from $563M to $559M. This decrease in profits was largely due to the 50% increase in prov ide prices during the year. The growth experienced by Ryanair in sales revenue and net income during the period of 2004 2008 (AOL Finance 2008)Portfolio Analysis by BCG MatrixPortfolio of any business is important in order to analyse its market carry ons and where the business is standing. It can achieve through the BCG Matrix. In Ryanair case, as per the above diagram of BCG (Boston Consulting Group) hyaloplasm Ryanair comes under the currency cow. Cash cow is that section of BCG matrix where market share of any business is high and their growing maturity is low in market. Ryanair being a low-fare airlines in European market have captures the entire market in budgeted airlines. Ryanair have outstanding market share and generate a lot of revenue for the company as well as for investor, but they cannot expand their business. Ryanair is domestic flight within the European territory and accumulate high revenue but cannot expand their airline business from European market due to low cost strategies and short haul. They extract profit from the market and investing as little cash as possible.Critical success factors of RyanairSuccess of any organisation suppose upon various factors such asBrand Brand of Ryanair has been cultivated through constantly providing the same product services to customer. Ryanair brand has been built through their strategies i.e. low budgeted airline in Europe with no frills and sell product on board.Most important part in creating the Ryanair brand is compete by the CEO Michael OLeary and international media. Michael hard-hitting decision, autocratic behaviour against employee and competitors and debatable statement- if you want a quiet flight, use another airline. Ryanair is noisy integral and always try to sell something ob board. Media always providing free footage to perspectiveer about the incident in flight for example Ryanair aircraft unhygienic and poor staff morale and cabin crew sleeping on the job. any these incidents have helped the Ryanair to build it brand image in the world market. localization principle Ryanair being a low-cost airline, airport used by the Ryanair for get aircraft were secondary and regional airport destination. For example, Ryanair uses Frankfurt Hahn, 123 kilometres from Frankfurt. During second half of fiscal 2007 Ryanair faces various challenges related to extra capacity and new routes and location.Speed Ryanair started with few flights with the low cost airlines strategies and through these strategies they started capturing the market at a greater pep pill. Become the world most profitable airline in social unit Europe. During March 2006 other airlines started charging for check-in bags due to this passenger were carrying fewer bag probably zero check-in bags which debased the cost and enhance the speed of aircraft.Technology Ryanair incorporated its own travel website, www.ryanair.com, for direct sales of tickets over the Internet to avoid fees and commissions a ssociated with travel agents and reservation systems. Ryanair has steadily achieved the most Environmentally- friendly and sustainable by investing in the latest aircraft and technology which reduced 50 per cent less emissions, 45 per cent less fuel burn and 45 per cent lower noise emissions. Ryanairs grown-up Boeing 737-800 aircraft has been replaced with new aircraft which more environmentally-friendly reducing the average age of fleet to 2.5 years.Fuel Emissionsexternal airlines have been responsible for emitting 2.5%- 3% anthropogenic carbon dioxide (CO2), International Civil line made regulation to reduce the CO2(Scheelhaase J.D, Grimme W.G, 2007). Due to new technology aircraft of Ryanair has reduce fuel emission by 50%.Noise Ryanair minimised noise pollution through modern technology aircraft and new modified winglet.Waste wholly International Airlines generates significant amount of waste mater material through food, packaging, and newspaper distribution. in all these it em are available free in international airline. Ryanair a low-cost airline with no-frills due to these reason Ryanair is free of from waste.Management theatrical role Ryanair management qualities from the success point of visualize were efficient to carry out the productivity in the organisation, due to the leadership Quality of Michael OLeary. From employees view management were autocratic. Management behaviour towards staff was not acceptable.Thus critical factors such as Brand, Technology and Management Quality play important role in performance of business activity, if any of these factors fail, success fails.Benchmarking Approach of RyanairA placed of information has been developed by separate indices of benchmarking for different business model. In Ryanair case, Profitability of Ryanair signifies the overall feat of the business, collection of ancillary revenue from flight is much more than the any other international flight by selling various goods and services on flight. Distribution strategies of Ryanair The proportion of sale made by Ryanair is through online reservation system and even they promote the Ryanair through web page. Ryanair has set up the four benchmarks which its competitor cannot match their strategies with Ryanair strategies- firstly airport cost per passenger is calculated, secondly they land on secondary and regional airport which offer lower landing fees, thirdly the weighted average number of full service carriers at the airports served and lastly Ryanair has created the monopoly in budgeted airline (Mason k.J, Morrison W.G, 2009). All this factors make the Ryanair airlines are best- in- class benchmarking in Europes airlines.Leadership of RyanairIn todays Airlines business leadership and culture is essential in achieving strong business operation. In Ryanair case, Ryanair was struggling to survive in early 1990 but then after new CEO Michael OLeary. OLeary changed the design of Ryanair in the model of southwest airlines i.e. a low cost airline this strategy worked for Ryanair. Being transformation leadership his clear vision and empowerment are often observed as important element that has changed the view point of Ryanair. In 2006 Ryanair airline received WORLD MOST FAVOURITE AIRLINE. Michael OLeary has served Ryanair for 20 year and makes Ryanair most profitable airline in 2006. In 2005 he was 18th among the Worlds Most reckon Business Leader in financial times. Ryanair comprising over 25 different nationalities this shows culture of Ryanair is diversifying.CONCULSIONOn the intact Ryanair seem to be following a strategy which works for them. They are obviously aware of their business environment and understand the importance of monitoring it as they took advantage of the opening in the market when they restyled themselves over a decade ago. However they need to be aware that this environment is constantly shifting and evolving and therefore maintaining a close eye on it and being ready to adapt to any changes should be a fundamental part of their strategy.References1. Gerry Johnson, Kevan Scholes, Richard Whittington, (2008). Exploring Corporate Strategy, 8th Ed., Pearson Education, England, accessed via textbook.2. Sascha Mayer, 2008. Rayanair and its low cost flight in Europe Marketing Plan. GRIN VERLAG http//books.google.co.uk/books?id=2zGFUC9bWX4Cdq=swot+ synopsis+of+ryanairlr=source=gbs_navlinks_s3. Box.T, Byus.K, Chris.C, (2007), Ryan air (2005) Successful low cost Leadership. journal of the International Academy of case studies. , 13(3) pp 65-70.4. Robert.W, (2009). Ryan Air to order 200aircraft, Air finance ledger (323) 7-7.5. 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