Bombardier Aerospace

side 1Bombardier Aerospace Prepargond for AKM Mominul Haque Talukder Course Instructor Human Resource Management East West University Prepared By Group- 6 Name ID no(prenominal) Ismat Jahan Senjuti 2011-1-90-001 Bani Biswas 2011-1-90-002 Nusrat Jahan 2011-1-90-006 Jubaid Rashid 2011-2-90-008 Mukshuda Akhter 2011-3-90-002 Nazmus Shakib 2012-1-91-001 Khandoker Mehedi Hasan 2012-1-90-015 Sec 01 East West University East West University October 20, 2012 CONTENTS Case Summary Bombardier Aerospace1 Comptications 3 Question One4 Question Two5 Question Three6 Question Four7 Implication8 . 0 Case Summary Bombardier Aerospace Bombardier Aerospace is a division of Bombardier Inc. and is regarded as one of the third largest aircraft comp both in the world in terms of yearly delivery of commercial airplanes over in all, and the poop largest in terms of yearly delivery of regional jets. It is headquartered in Ville-Marie, Montreal, Quebec, Canada. Bombardier started its journey with the founder J. Armand Bombardier in 1942 to manufacture tracked vehicles for transportation on snow cover terrain and has earmarked itself as one of Canadas oldest, almost diversified and reputed companies.By 2002, the company has grown revenues to $21. 6 billion with a net income $390. 9 million from 5 operational units including Bombardier Transportation, Bombardier Aerospace, Bombardier Recreation Products, Bombardier Capital and Bombardier International. Bombardier Aerospace, a SBU of Bombardier Inc, had over 33, 000 employees and established itself as an internationally integrated physical composition with full design and production operations in Canada, linked States and UK. Such operations made Bombardier Aerospace as the third largest civil airframe manufacturer and a leader in region airliners, business jets and amphibious aircraft.Its high-performance aircraft and run set the standard of excellence in some(prenominal) markets, including Business Aircraft Commercial Airc raft Amphibious Aircraft Jet Travel Solutions Specialized Aircraft Solutions Aircraft Services And preparedness During 1999, afterward some(prenominal) months of negotiation and planning parade Bombardier Aerospace was able to build a unique relationship with the Canadian Government, who after the Cold War started at looking how war machine could operate under tighter fiscal restraints.In a joint initiative under NATO, Bombardier Aerospace agreed to service and own training aircraft and in turn leased these aircraft to the Canadian military for training purposes. This arrangement was named as NATO Flight Training in Canada (NFTC) which aimed at managing Ground Based Flight Training School and Simulator Training. In any given time , approximately 75 students from Canada and former(a) NATO countries were enrolled in the NFTC training program. Alex Lachance hails with 20 years of flying experience in the Canadian military and after an illustrious experience with Canadian mili tary has also occupied several other positions.During 2002, Alex joined Bombardier Aerospace as the manager of ground-based training operations for Nato Flight Training in Canada NFTC and almost at some point in time Ted baker who had triple-crownly completed Bombardiers interview process few months beforehand joined as an instructors in Nato Flight Training in Canada (NFTC). The hiring process at bombardier was quite a challenging once since achieving the two crucial objectives of determination an incumbent for the vacant position who is equally equipped in terms of the technical expertise required along with their fit of the candidate with the Bombardier culture of was non an easy task.Also, it was seen that whoever bargained during the interview process, on the whole achieved a better remuneration package with the per diem gross profit paid yet to those who negotiate for a moving allowance of this nature. When Ted, a in the altogether hire came to know about this, he wa s utterly dismayed and disappointed on the impartial and unfair compensation system of Bombardiers. Ted raised this issue to the newly appointed manager, Alex who was utterly surprised and after being communicated took the issue to the HR.Once he obtained a thorough idea and comprehended that the per diem allowance has been only paid to those who have bargained. He thought of raising the issue to the corporate head office. The dilemma over which Ted is now fixated is what will the after effect of implementing such a indemnity? Will it imply Bombardier changing its insurance insurance policy for all its operations? Will it mean that it will increase cost to the company? These were several questions which were pondering in Alexs mind. Also the fact being that he has just joined the company not even few months ago he was quite perplexed and confounded regarding what step to carry away. . 0 Complications Critical scraps which were witnessed in the case Bombardier Aerospace are de picted at a lower place * The interview process in the overall hiring procedure remained to be quite challenging since achieving the two crucial objectives of finding an incumbent for the vacant position who is equally equipped in terms of the technical expertise required along with their fit of the candidate with the Bombardier culture of entrepreneurial high achievement was not an easy billet. * Bombardiers current relocation policy did not seem to be fair and transparent to all.It meant candidates who better bargain in their interview process would benefit most as only if someone raises concerns on moving incidentals and meals only those were offered the per diem allowance. * Discrepancy which existed amongst new hires in terms of compensation was heard by some of the new appointed instructors and potency recruits expressed dismay and consternation which certainly affected employee morale to work for this company and loss resulted in lack of enthusiasm about their job. Anot her associated challenge was if these newly appointed instructors those who have not been provided with the benefit of the per diem allowance for moving incidentals and meals together lodge an objection and appeal to the Labor Relations Board, it will lay down not only monetary loss for Bombardier Aerospace via compensations but also image loss which would have trickle affect in potential future instructors as they will be reluctant to become part of Bombardier Aerospace which is unfair and unjust with their employees. 3. 0 QuestionQ 1. Evaluate Ted Bakers reaction to NFTCs relocation policy and his decision to approach Alex Lachance? Ted Baker had successfully completed Bombardiers interview process during summer of 2002 and was offer an appointment in Nato Flight Training in Canada (NFTC) to commence work few months later. During this same time nearly about other 20 instructors were also appointed. About few weeks after, Alex Lachance joined Bombardier Aerospace as the manager o f ground-based training operations for Nato Flight Training in Canada NFTC.After Alex joined, Ted approached him and communicated some of his major concerns about which he was extremely dismal. He had overheard the conversations of other newly employed instructors regarding their relocation benefits and compensation and most importantly the per diem allowance provided to cover their moving incidentals and meals. Ted was extremely disappointed to see the relocation policy of Bombardier which to him reflected an unfair and inequitable system as he felt that it was not fair for some employees to receive a per diem allowance and while others did not.Also, when Alex came to know about it, he was shocked and surprised to limit about such compensation policy and he too felt it was not an evenhanded and a just policy to handle recruits, however he did not mention anything to Ted upfront. Also, one important thing was Ted had negotiated compensation for moving allowances, a paid trip to Moo se Jaw and interim lodging and this additive compensation was tied up to the typical three- year loan agreement and similarly other new recruits who were paid all these what Ted received and in addendum also the per diem allowance also was tied up with the same experience.Hence, Ted had a very disapproving reaction about the NFTCs relocation policy. Q 2 In your position as Alex Lachance would you attempts to change the relocation policy? Please be specific? If I was given the position and responsibilities of Alex Lachance, I would have adopted an suddenly fair and impartial relocation policy. Hence, for this if required changing the policy, I would have certainly opted for that taking approval from all those concerned. The case presents the scenario of a recruit Ted Baker who felt his package was discriminated when compared to some of the recruits who were offered appointment during the same time.If I was in the position of Alex Lachance, then after hearing the rationale from t he human resource section which purely stated that these additional benefits were paid to those who displayed better bargaining power during the interview. Based on the potential incumbents request and negotiation skills during the hiring process they were entitled for that benefit. Hence, quite often new employees those who did not ask for the per diem allowance, they were not paid. Thus, overall it reflected an unfair and non-uniform relocation policyI would have taken the below specific steps to resolve this matter * Step 1 I would have taken this issue to the bodily Head office, Human Resource division in Montreal before circulating a new uniform hiring and compensation policy. This was to understand the implication of such policy at a group take as Bombardier had so many employees all over the world. * Step 2 Also, I would have given recommendation to the Corporate Head Office to take any of the two alternatives as the way forward I.To re-look at the entire human resource p olicy and most importantly the cost attached of having to be paid all the new employees who are re-locating the per diem allowance. If that was feasible in terms of cost to the company then we should have proceeded with that. II. Secondly, if it came to the situation that such uniform policy will tremendously increase the cost to the company, in such an instance my recommendation would have been not to provide per diem allowance to any of the employees as most importantly it was not fair.Also, if some employees chose to go and appeal to the Labor Relations Board for such unfair treatment, this might cause law suit charges to be paid and also loss of reputation and image as an employer and company. Q 3 How would you respond to Ted Baker? My response to Ted Baker would be a very candid, engineer and impartial one which I would have provided him after thoroughly understanding and evaluating the given situation. First of all, I would have thanked Ted Baker for being upfront and cop ulation me about the exact issue what he heard from other new instructors without creating rumor about the company.And would also point out that his behavior and attitude was a reflection of him already being part of the company. As a second step I will provide him re-assurance that after critical scrutiny it has been detect that there has been some discrepancy in the past about the offer of per diem allowance. Hence, with my proposed recommendation of bringing uniformity in the relocation policy it has been notified to the Corporate Head office, Human Resource department in Montreal.Either their decision is to continue with this benefit or not, what I will ensure Ted is the end outcome would be something which is fair, impartial and transparent to all the employees. This is how I would try to regain the confidence of Ted Baker on the company and try to bring his enthusiasm back for his job and Bombardier. Also this might reduce the dismay and consternation of Ted and allow him to recuperate his expectation and enthusiasm about working at Bombardier. Q 4 whats your discipline out of this case? HR Compensation and benefits policy affect the productivity and happiness of employees, as well as the ability of an organization to effectively sympathise its objectives. It is to an organizations advantage to ensure that the employees are creatively as well as equitably compensated and knowledgeable of their benefits. Key learnings which any organization and most importantly any head of the HR department can educe are illustrated below * Ensure equity and rectitude in the remuneration and compensation policy and system as globally it has been identified as a key component in creating a successful compensation system.The equity can be ensured in the following three unique ways * Provide workplace equity which implies giving perception that all employees in an organization are being treated fairly * Establish a culture of internal even out equity where all employe es in an organization can perceive that they are being rewarded fairly according to the relative value of their jobs within an organization * Offer pay by omparing external pay conditions to ensure external equity exists when employees in an organization perceive that they are being rewarded fairly in relation to those who perform similar jobs in other organizations * Perceived inequity or unfairness, either external or internal, can result in low morale and loss of organizational effectiveness. For example, if employees feel they are being compensated unfairly as was illustrated in the case of Ted Baker, it can have a negative and demoralizing impact.Employees may restrict their efforts or dedicate the organization, damaging the organizations overall performance and also cause loss of goodwill. The key learnings from this case can also be linked to one of Abraham Lincolns famous ingeminate which states It is true that you may bourgeon all the people some of the time, you can eve n fool some of the people all the time, but you cant fool all the people all the time. Also a related quote can be drawn to express the learnings from the case Its better to lose in a cause that will someday win, than win in a cause that will some-day lose 4. 0 Implications Every organization is powered by its people. Consequently, effective HR strategies are critical to ensure productivity and maximum success. HR professionals play an important role in terms of coming up with the right strategies to support organizational education but must have the ability to think beyond tactics to identify the high-level areas of focus that will drive success. * Consider Strategic visual sense HR leaders should review the companys current vision to determine ways in which HR activities can support that vision.In concert with other organizational leaders, HR staff must consider whether the vision is applicable based on external and internal factors and whether changes in the marketplace may be suggesting a new vision. * Consider Demographics HR leaders should examine the demographics of the workforce to determine where gaps may exist between current skills and the need for skills and experience that may emerge in the future, in alignment with the organizations vision and strategies.HR strategy should be focused on filling these gaps through strategic recruitment, retention and training efforts. * Transfer of Knowledge Ensuring ship of knowledge between department workers whether they are departing voluntarily or involuntarily, or due to retirement or other reasons is necessary to ensure continuity and stripped impact on productivity and effectiveness.