L&D Needs Analysis - Assessment 1 (Airbus) PDF

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MGB331 Developing PeopleLEARNING ANDDEVELOPMENTNEEDS ANAYLSIS1 IntroductionRecent news regarding Airbus and the end to the production of their ‘superjumbo’aircraft A380 has necessitated that a Learning and Development process be conducted toanalyse the current and future needs of the organisation du...

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MGB331 Developing People

LEARNING AND DEVELOPMENT NEEDS ANAYLSIS

1 Introduction Recent news regarding Airbus and the end to the production of their ‘superjumbo’ aircraft A380 has necessitated that a Learning and Development process be conducted to analyse the current and future needs of the organisation due to these changes. This analysis will be conducted using the McKinsey 7S framework.

2 Gap Analysis 2.1 Relevance of the L&D process In an everchanging economy where technology is constantly advancing, organisations must remain competitive by adapting to changes as they arise. Due to this, L&D plays a significant role in a company’s human resource department, ensuring employees develop the knowledge, skills and abilities to effectively meet the organisation’s business objectives. Formal L&D strategy allows the company as a whole to have a clear vision of their objectives and can include strategies geared toward employee satisfaction, different positions of the workforce, and must be flexible to constant change and open to continuous improvement (Lynham et al., 2004). Earlier this year, Airbus announced that the company will cease production on the world’s biggest airline, the Airbus A380 by 2021. The news comes as the substantial cost of operation and maintenance of the plane become too much, combined with the introduction of smaller, more modern and high-performance aircraft to the market with a significantly reduced environmental footprint (Goldstein, 2019). Further, the end of production for this jumbo model potentially place many jobs at risk. It is therefore critical that Airbus take immediate action to tackle this issue, along with others, that may arise following these changes.

2.2 McKinsey’s 7S Framework One particular organisational analysis tool which can be used to identify L&D gaps in terms of the current state and future state of Airbus is McKinsey’s 7S framework. It looks at the seven key elements that make an organisation successful: strategy, structure, systems, shared values, style, staff and skills (Singh, 2013).

1

L&D Diagnosis

Current state

Future state

Gap

L&D Need Priority

Strategy

Structure

Systems

2

Airbus currently utilises the Differentiation strategy, as their A380 is distinguished as the world’s largest and most spacious aircraft (Airbus, 2019b) Innovation is a driving force at Airbus, which promotes cuttingedge technologies (Airbus, 2019b). Airbus utilises a Divisional structure, divided into three distinct divisions: The Airbus, the Airbus Defense & Space, and the Airbus Helicopters (Hierarchy Structure, 2018). It can also be categorised as a Functional structure, managed by a Board of Directors and Executive Committee (Airbus, 2019b). Diverse Production Line including everything from passenger jetliners to freighters and private jets which they manufacture and sell worldwide. They have a focus on innovation and cutting-edge

Adopting a more Overall Cost Leadership strategy in order to reduce costs. Transitioning to manufacturing smaller aircraft which are more efficient and have reduced environmental impacts (Goldstein, 2019).

Move from creating a differentiating product to focusing on reducing costs whilst increasing efficiency.

Understanding the market; changing from ‘superjumbo’ aircraft to a smaller aircraft that will be utilised more.

Continue to adopt a Divisional and Functional structure.

No changes required.

No L&D required.

Greater focus on systems manufacturing smaller aircraft instead of large aircraft.

Product and market development for smaller aircraft. Focus on innovation for smaller aircraft.

Continue to adopt a diverse Production Line for smaller aircraft.

1

N/A

2

Staffing

products (Airbus, 2019c). The company employs around 129,000 people (Statista, 2018), of which around 14,000 are employed to work on the A380 (Jolly, 2019). Employs mainly white-collar, and also blue-collar employees.

Top-down and hierarchical style.

Style

Engineering, software and IT design, fluid mechanics, customer service support, finance, human resource (Airbus, 2019e).

Skills

Shared Values

Customer focus, integrity, respect, creativity, reliability, and teamwork (Airbus, 2019f).

3 Recommendations

3

Move a majority of employee working on A380 to the production of other more popular models. Prepare and address the potential for major job loss. Management and HR must address employment issues directly to employees.

Blue- and whitecollar employees. Minimising major job losses.

More white-collar employees needed to focus on innovation for smaller aircraft that will be utilised more. Ability to provide jobs to those working on A380 after ceasing production.

Maintain transparency to allow trust and retention of skilled staff.

Accommodate for employees who may be worried about unemployment.

Engineering, software and IT design, fluid mechanics, customer service support, finance, human resource.

No major change. No L&D Focus on marketing required. of other aircraft.

Customer focus, integrity, respect, creativity, reliability, innovative culture, people and culture focus (in regard to employees).

No major change needed. Focus more on employment relations between management and employees to ensure positive and trusting relationships.

Management aims to increase communication with employees. Utilise and prioritise HR team at all sites.

1

3

N/A

4

Following the analysis of Airbus’s situation, the following recommendations are given. They have been addressed in a prioritised fashion from most crucial to least crucial:

1. Strategy and Staffing Airbus currently utilises a differentiation strategy, evident through their production of the world’s largest aircraft, the A380, however a cease in production of this model means the company must transition into an overall cost leadership strategy involving smaller aircraft in order to reduce costs. Further, Airbus management must effectively address the biggest issue facing the organisation: major loss of jobs. It is recommended that management prepares and addresses employees directly in regard to the potential loss of jobs, whilst aiming to move as many workers as possible to the production of more popular aircraft models.

2. Systems The systems currently utilised by Airbus involves a diverse production line, with everything from passenger jetliners to freighters. The L&D gap identified is the need for the company to focus on the systems manufacturing smaller aircraft, as there is an insufficient market for their A380. Production sites for A380 may slowly transition into sites for the production of their smaller, more popular aircraft.

3. Style It is recommended here that the hierarchical and top-down style remains, however an increased focus on remaining transparent is required. Management must accommodate for employees worried about unemployment and address any issues with full transparency. Even if unemployment will not be a major issue, it should still be addressed to negate any doubts. This will aim to maintain trust between management and employees in the long-term.

4. Shared Values In addition to the existing company values, a ‘people and culture’ value should be emphasised. This is feasible through prioritising and utilising the HR department. 4 References 4

Airbus. (2019a). A380. Airbus. Retrieved from https://www.airbus.com/aircraft/passenger-aircraft/a380.html

Airbus. (2019b). We are Airbus. Airbus. Retrieved from https://www.airbus.com/company/we-are-airbus.html

Airbus. (2019c). Commercial Aircraft. Airbus. Retrieved from https://www.airbus.com/aircraft.html

Airbus. (2019d). Corporate Governance. Airbus. Retrieved from https://www.airbus.com/company/corporate-governance/executive-and-operationalcommittees.html

Airbus. (2019e). Faces of Airbus. Airbus. Retrieved from https://www.airbus.com/careers/working-for-airbus/faces-of-airbus.html

Airbus. (2019f). Our Values. Airbus. Retrieved from https://www.airbus.com/company/we-are-airbus/our-values.html

Goldstein. (2019, August 05). Air France Latest Airline to Bid Airbus A380 Adieu. Forbes. Retrieved from https://www.forbes.com/sites/michaelgoldstein/2019/08/05/airfrance-latest-airline-to-bid-airbus-a380-adieu/#1be8b0c24a53

Hierarchy Structure. (2018). Airbus Management Hierarchy. Hierarchy Structure. Retrieved from https://www.hierarchystructure.com/airbus-management-hierarchy/

Jolly. (2019, February 14). A380: Airbus to stop making superjumbo as orders dry up. The Guardian. Retrieved from https://www.theguardian.com/business/2019/feb/14/a380airbus-to-end-production-of-superjumbo

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Lynham, S. A., Chermack, T. J., Noggle, M. A. (2004). Selecting organisation development theory from an HRD perspective. Human Resource Development Review, 3(2), pp. 151-173. Retrieved from https://search-proquestcom.ezp01.library.qut.edu.au/docview/221815955/D8E550FE3C32486BPQ/2? accountid=13380

Singh, A. (2013). A study of role of Mckinsey’s 7S framework in achieving organisational excellence. Organisation Development Journal, 31(3), pp. 39-50. Retrieved from https://search-proquestcom.ezp01.library.qut.edu.au/docview/1467437673/529C7002DB084D2FPQ/10? accountid=13380

Statista. (2018). Airbus Group – Global Workforce 2006-2018. Statista. Retrieved from https://www.statista.com/statistics/264361/eads-worldwide-number-of-employeessince-2006/

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