Answer with explaination

Case study

Korean Airlines

Korean Air CEO Cho Yang-Ho had a challenging change situation facing him. He wanted to transform his airlines image of an accident-prone airline from a developing country to that of a strong international competitor. He is deciding to transform the company into safety and quality culture oriented.

The number of accidents has increased significantly, putting shades over the company ability to provide safe and secure services for its customers. His main focus was on improving safety above all else, which meant making significant changes to the organizations culture and motivating all employees to cope with it. What made his task even more challenging was Koreas hierarchical culture that teaches Koreans to be deferential toward their elders and superiors, which results in great hesitation from juniors to comment whenever elders violate safety and security instructions, especially that elders whom are responsible to decide what type and amount of rewards that will be assigned to juniors. From the other hand it is very obvious the high degree of favoritism towards the elders from covering their regular mistakes to the amount of financial and non-financial rewards they receive for achievements they are not part from it, this favoritism is the main reason behind the juniors perception of injustice. The HR team is considering a part of the crime as it supports this violation, protect the seniors and blocking the juniors complains to reach the top management regarding the injustice rewarding practices.

The ratio of the employees over 40 years almost 60% the reason behind this the low turnover rate of the company and the aviation industry requires relatively long years of experience to be able to perform according to the international standards. Cho says, It (the hierarchical culture) exists in all Oriental culture. His approach to changing his companys culture involved implementing a systems approach aimed at minimizing the personality-driven, top-down culture that is a legacy of Korean business managers who place emphasis on intuition and responding to orders.. Korean Air is now one of the worlds largest commercial cargo carriers, and it has earned a four-star rating (out of Five possible stars) from a London aviation firm that rates airlines on quality by applying their old culture.

The fact that an organizations culture is made up of relatively stable and permanent characteristics tends to make it very resistant to change. A culture takes a long time to form, and once established it tends to become entrenched. Strong cultures are particularly resistant to change because employees have become so committed to them, although those young employees were trained intensively in the most elite aviation institute but still has no space to criticize, or suggest or even to express any solutions, because the level of empowerment is very limited.

The company develop a new vision (To be the world leader in safety and profitability), followed by new strategic objectives and strategies such as:

1. Reduce the safety violation incidents by 90% in the next 3 years
2. Increase sales volume by 60 % in the next 3 years
3. Increase the customer satisfaction by 50% in the next 2 years
4. Expand its operation in more 5 destinations in the middle east
5. Transform the culture of the organization into a more safety and quality culture oriented.in the next year.

Question

Identify the real problem that limiting the change plan and the causes of this problem? briefly suggesting five HRM solutions to solve the problem?

Question

Design a strategic fit between the overall new strategic plan and human resources strategic plan, suggesting at least five rewarding decisions need to be done in order to achieve the strategic objectives from HR perspective?