Lufthansa Strategy. Essay

1234 words - 5 pages

INTERNALHuman Resource Management is one of crucial internal factors. If Lufthansa wants to perform in a global way successfully, they have, firstly, to alter their HR strategy along with different cultures or retain some of their own culture and history. In this case, HRM systems in Lufthansa will be illustrated in terms of Hagan's HRM theory, which embodied job design, staffing issues, training and development as well as rewards systems.I. Job design: The subsidiaries of Lufthansa have become more independent to design their own unique management strategies and can make their own decisions directly. Therefore, employees have more freedom to have their own opinion and they can directly communicate with the managers. In other words, this independent tendency can save more time and let decisions made more promptly.II. Staffing issues: Lufthansa intended to hire not only people from different cultures to bring more revenue, due to its globalisation inclination because regional staff can make customers feel more familiar and it can also reduce costs of hiring German staff, but also German staff in order to protect their own culture. However, a large number of non-German staffs may contribute to other potential threats with respect to the perspective of Lufthansa's management. For example, because of mixed-culture, Lufthansa will weaken their management cohesion and lose its own culture and style. In addition, is will also lose German employment owing to exporting jobs.III. Training and development: Nowadays, the staffs in Lufthansa are from not only German but also other countries; therefore, it is important for managers to have the experiences of working in other countries in order to adapt new circumstances efficiently because they recognize more about each staff's characteristic and behaviour before training them.IV. Rewards systems: Because Lufthansa intended to go globally, it must spend more investments regarding to employees than other local air companies in order to survive. Although Lufthansa has to pay much less wages for Indian staff than those for the German staff, the salaries are still higher compared to local salary levels. Moreover, owing to different cultures, people in Germany do not have the preference to do service jobs; therefore, it seems that Lufthansa has to give a nice salary to German staff so as to attract more German employment.Nevertheless, not only can the aforementioned Hagan's theory be used to explain what HRM strategies Lufthansa possesses, but also Hofstede's theory, particularly in the fields of individualism versus collectivism, power distance, can assist managers of Lufthansa to understand how cultural differences affect HR in their organizations and management.I. Individualism vs. Collectivism: In this case, regarding to Lufthansa, its subsidiaries work more individually than collectively and these subsidiaries can set their own business strategies. As a result, they can just focus on achieving their own...

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