People and Organization Development - Assignment Example

Institution : xxxxxxxxxxx Title : People and Organization Development Tutor : xxxxxxxxxxx Course : xxxxxxxxxxx @2011 Table of Contents Table of Contents 2 Executive summary 3 Introduction 4 Organization 4 Topic 5 Objectives 6 Literature Review 6 Findings 10 Discussion 12 Conclusion 16 This paper has outlined how the Emirates Group has developed its human resource management to be able to strategically position itself as a formidable competitor. It has also revealed that strategic human resource management should now be at the top of the agenda of the Emirates Group as the fundamental policies in human resource strategies. The Emirates Group seems to have intelligent contingency plans in overcoming severe external environmental factors, however the company could put more focus on it human resource management. Short term solutions to human resource management challenges are there to deal with minor problems but strategic human resource management should be the ideal way of dealing with chronic problems that are proving to be resilient in most circumstances. 16 Recommendations 16 Bibliography 18 Executive summary In the contemporary world many companies are trying their best to have a competitive advantage over the others. In this report we have looked at the human resource management development at the Emirates Airline and the specific efforts that are being done to make sure that the company remains ahead of the others in terms of productivity and profitability. I went ahead to explain the choice of the company and why I though it could be the best to explore as far as human resource management is concerned. The choice of human resource topic has also been explained as the integral part of the organizations that can be optimized to ensure maximum profitability. In studying human resource management at the Emirates Airline I obtained the information from the company’s website and other written journals about this Airline. In the findings I probed the whole issue of human resource management at the Emirates Airline while depicting the strategic developments that have been done in the discussion. Finally it was imperative that I give some of the practical recommendation that I believe will go a long way in keeping the Airline ahead of others as far as human resource management is concerned. Introduction Every individual organization will always gear itself towards optimizing the management of its resources to ensure that the best results are obtained. George & Deborah (2006) note that organizations are put up to advance specific objectives of the organization that include profitability, growth, expansion and individual career advancement. In meeting the objectives of the company the management goes out of its way to ensure that the human aspect that is very important to the organization is also attended to. The feeling of belonging is cultivated through the long-term practices that have been put in place by the department of human resource management. Great investments have to be done in order to ensure that the employees have an ideal environment for maximum production. The human resource aspect encompasses recruitment, training, placement and subsequent retirement from the organization active duty. Organization The organization that I have chosen is the Emirates and Group Company that include the emirates airline which is among the most competitive in the entire world. The Emirate Group that is based in Dubai is a very profitable enterprise amassing a turnover of close to US$11.2 billion and has an employee capacity of over forty thousands employees and in the next three years it will have reached fifty thousand. This formidable group comprises of Dnata, Airport service and Travel Industry division and Emirates, Which is the Group’s fast expanding and awarding winning international Airline. The Group has a well established career website which can be explored. Presently Emirates Airline commutes to over a hundred destinations allover the six continents. Emirates presently operates a modern day fleet of one twenty wide-bodied aircraft and it has ordered one hundred and seventy latest aircraft worth over US$58 billion which include eight 777 freighter. It has been from time to time recognized as a leader in teams of innovation. Emirates is constantly enhancing and developing its products and services to optimally serve its many customers from around the world. Topic The topic selected in this case is “Human resource management”. When we talk about people and organizational development we cannot to fail to mention the leaps that have been taken in terms of human resource management in order to realize the advancement in organizational development. Human resource management is the pillar when it comes to organization development. The human aspect is the one that holds other aspects together in order to realize any advancement as far as organizational advancement are concerned. Regardless of the size of the organization, human resource management is very crucial. It is a resource that put the other resources in order and tries to draw an optimal balance in the effort of realizing the objectives and goals of the organization. According to Nankervis et al (2006), every aspect of human resource management is important. Recruitment is just important as it is retention of employees. Human resource knits the other resources together and blends them it a synchronized working pattern that ensure profitability and maximum productivity. Objectives The objectives of this paper is to examine the applicability of some of common human resource theories and practices across organization and a specific study of the Emirate Airline and see how this company has developed its human resource sector to give it a competitive advantage over the rest of the companies. We will look at the shortcoming in the company policies and later have a conclusion and appropriate recommendations. Literature Review Research that has extensively done in the area of human resource management has contributed much to the organizational practice of human resource management. According to Legge, (2005), for the last two decades empirical work has laid particular attention on the link between organizational performance and the practice of human resource management as evidenced in enhanced workers dedication, reduced levels of turnover and absenteeism, improved level of skills and as a result improved productivity, efficiency and quality. This specific area of organization is referred to as strategic human resource management. Strategic human resource management will include such aspect as best fit, the resource best view and best practice. The aspect of best practice sometimes referred to as puts forward that the incorporation of certain best practices in the human resource management will eventual result into better performance of the organization (Pfeffer, 2003). Pfeffer (2003) argues that there are seven best practices that can be applied in ensuring that the organization has a competitive advantage over the others in the same realm. The main theme carried in this practice is earning profits by putting people first. These practices include: selective hiring, providing employment security, sharing information, extensive training, and the reduction of status differentials, high pay based on company performance, and self managed teams. There are many studies which provide evidence of best practices normally put in use in coherent bundles and it could be difficult to draw conclusion which is the best way. Storey (2002) argues that the contingency approach or best fit to human resource management articulates that human resource management enhances performance where there is close coherence between human resource policies and human resource people processes. There are many theories concerning the nature of the vertical integration. Human resource policies and practices may be mapped onto the stage of organizational development or the life cycle (Pawan & Yaw, 2004). Models with a competitive advantage take Michael Porter ideas concerning strategic choice and map a range of human resource practices onto organization selection of competitive strategy. Models of configuration avail an approach that is more sophisticated approach which advocates a close understanding of the strategy of the organization in order to ascertain the applicable human resource practices and policies. On the other hand this approach assumes that the organizational strategy can be identified –many of the organizations are there in a state of development and flux. The resource based view emphasizes on the internal resource of the organization and how then can be used to the competitive advantage of the organization (Lepak & Gowan , 2010). Aswathappa (2007) argues that the resources uniqueness is given preference over homogeneity and human resource has a pivotal role in the development human resources that are rare, valuable, and hard to substitute or copy and are effectively organized. Generally the theory of human resource management is to assist an organization to cater for strategic goals through attracting and retaining employees and besides to ensure effective management. The highlighted word is ‘fit’ and this means that human resource management approach goal is to make sure there is a fit between the management of the employees of the organization and the general strategic direction of the organization. The fundamental gist of the academic theory of human resource management cannot be treated like machines and consequently there should be interdisciplinary examination of people in the work place (Barker et al, 2010). Human resources are viewed by many people as the fundamental asset of the organization but contrary very few employers are able to utilize optimally the full potential from their employees. Human resource system is defined as a set of distinct but activities that are not related, functions, and processes that are pointed at attracting, maintaining and development of human resources of the organization or firm. More traditionally management of this system has gotten more attention from service organizations as compared manufacturing organizations. Innovative manufacturing practices and sophisticated technologies alone can do very little to encourage operational performance unless the needed human resource management practices are in place to form a consistent socio-technical system (Wood, 2009). Theoretical literature clearly demonstrates that human resource management practices can to a great extent influence the performance of employees through their control over skills of the employees and motivation by means of organizational structures that permit employees to improve how their jobs are performed. The human resource practices of a firm must be related to a minimum of two dimensions of its performance. According to Hendry (1995), human resource practices that are superior will automatically increase of contribution of employees to the organization; this could directly affect results that employees have direct influence over, for example productivity and turnover. It has been studied previously shown that interventions, realistic job previews and job enrichment were a moderate effect resulting in reduced turnover. Empirical research on the influence or effect of human resource management practices on the productivity of the organization is much extensive as compared to that of turnover. Correlations which are positive have been consistently made productivity and human resource management practices like incentive schemes. It has been established that labour management teams and quality circles resulted into increased productivity. Scholars determined a relationship between the adoption of productivity growth and training programs. Recruiting efforts that was extensive resulted into increased productivity. It has also been determined that turnover employee is directly related to productivity of the organization. Despite the relationship being conducted in the laboratory it has been noted that positive results in productivity and turnover will have a direct reflection or bearing on the bottom line of the firm. A positive correlation has been established between performance appraisal and appropriate compensation strategies with profitability of the firm (Price, 2004). Many of the managers view human resource management as an integral part of this, while on the other hand others have doubted its validity. Interest in this sector has been aroused in recent years as scholars have advocated that the employees of an organization can avail a formidable form of competitive advantage that is difficult to be imitated by other competitors. Human resource can provide a form of sustained competitive advantage. In order to make sure employees are not underutilized organizations make use of human resource management practices to motivate staff and encourage contribution and participation. Organizations may motivate employees by the use of performance appraisals with incentive compensation schemes and internal promotion system. Human resource practices like job rotation and quality circles may also influence firm performance by means of organizational structures that encourage participation among the employees and permit them to improve how their jobs are done (Silvio & Beatrice, 2008). Findings In the investigation into the development of the human resource management at Emirates Airline showed a great effort on the part of the company to establish a well sustained human resource sector that elaborately caters for the needs of the employee. The general data available about the company on its website and other journals depicts the at great length that the company is doing to try and attract highly qualified personnel and also maintain them by averting cases of high employee turnover. Just as like other well established companies Emirates Airline recognizes the importance of a happy and motivated workforce as a secret weapon for maximum productivity and profitability (Al-Abed et al 2004). Big payoff on the side of the employer is guaranteed in terms of productivity and contribution of the employee. It is the culture and tradition of Emirates Airlines to follow a systematic approach as far as training is concerned. Theoretically this refers to assessment, training activity and the evaluation process. In the evaluation process the outcome of the training activity is measured. Assessment is there to ascertain the need of the training activity particularly if the consumer satisfaction is not being met. Andrew (2009) notes that the management team at Emirates recognized the need for a better quality service as prompted by the frequent customer who used the airline. This propelled the objective as the Emirates airline did its best possible to provide the quality service to the valued customers in order to stay ahead of the competitors. Discussion Human resource management result into the satisfaction of the employees and they consequently work efficiently. The human resource management has the aim of assisting the organization inn meeting its objectives and strategic goals by effectively managing and maintaining employees. The emirates cabin crew is regarded as the best. The cabin crew consists of a variety of nationalities from every corner of the world. The crew comes from over 120 countries and speaks over 80 languages. Emirates spends between six and five percent of the revenue on training and development. Training and development have been taken seriously at Emirates airlines. Training puts more emphasis on the skills an employee will acquire and be used in his immediate job. The training facility at the Emirates Airline is specifically built for her employee training. Classroom education forms part of the training activity. At this stage trainers share their opinions and exchange ideas with each other through that they expand their individual knowledge. The method is used as a basic method and not as an exclusive primary training method as done by others. The method is collaborated by other methods of training. The owning of an on-board shopping store and Dubai Duty Free by the Emirates Airline provides the trainee with an opportunity to equip themselves fully with the information about the whole range of products available. Particular classrooms are designed for this objective. Simulation which is another expensive method is used as part of training activity. Emirates Airline employs machine simulation. Equipments which are exact replicas of the equipments in the work environment are provided to the employees. Emirates commissioned 13 such machines to be used by its employees and they cover all types of the aircrafts. The simulators are very crucial in reference to emergency and safety training of the employees. The machines consist of audio and visual displays, and smoke simulators including flight kitchens for demonstration with fully functioning equipment. On job experience is another method utilized by Emirates Airline to train its employees. During duty, the employees of Emirate Airlines are to employ purpose-built, arrival terminal and exclusive departure. The type of training removes the transfer of the learning situation to the job. Action learning is a type of learning that center on learning by experience. ‘Mock ups’ that enable the employees to get hands on training are also provided to the cabin crew of Emirates Airlines. Assignment related to problems and issues that are dealt with on the job are given and assessed as to how effectively they react to the issues. The assignment could either be group or individual assignment (Meyer & Allen, 2007). In ancient times job lasted forever. So long as one had a job he did not think about job shift. In modern times careers are without boundary. Boundary-less careers are not limited to a particular organization and they expand through project based competency among firms in the industry network. This is compelled through modernization, increase in competition and restructuring of organization. Employees with a prior experience in customer care field are preferred are the Emirates Airline. An employee working in an organization that offers customer care is eligible to work in the airline sector. Career and human resource planning is used by companies to ensure that the right candidate for the job is selected. It comprises of training, retention, and analysis of staff. Emirates airlines require employees that are extrovert and open to confront emerging challenges. Group work is geared towards strengthening an individual’s tolerance to coordination and team building. The management uses the method to assess individual’s weaknesses and strengths. Technology-wise Emirates Airlines uses Computer-Based and Audio-Visual training to equip the employees. Computer-Based training assists in enhancing the individual’s computer skills. Audio-Visual training helps individual comprehend real on-line situations and customer interactions. Intranet or internet browser is used to provide Web-Based training to the employees. This is accessible anywhere hence best suited to the cabin crew who are always on the move from destination to destination. After the training the evaluation step is used to measure the training activities and determine whether the set objectives have been attained. Numerous awards have been given for quality service by the Emirates Airlines. The cabin crew are famous for the experience they provide to the customers and are rated as one of the best Airlines in the world (Randhawa, 2007). According to Price (2004), the crew is also required to operate in groups which consist of colleagues from different cultural backgrounds. The requirements are covered in the Human resource planning process of the Emirates Airline. During work every employee has certain rights which come with responsibilities. Owing to boundary-less careers in existence it is the responsibility of every employee to keep himself abreast with the required skills. Candidates looking forward to working at the Emirates Airline must at least high school qualification. The crew should be well groomed while on job duty. At the career plateau stage is where the probability of improvement or enhancement of is minimal. Emirates Airlines employees commence their career at grade two and proceed to business and first class depending on their performance. Senior flight supervisor is the highest position that can be attained by an employee at Emirates Airlines. In order to avoid the career plateau stage the employee can adopt career transition. The employee can change his career by changing from one country to another or going up or down the occupational ladder. Career transition could be planned or unplanned. Unplanned situations could be occasioned by family issues, environmental factors or illness (Maclean, 2009). Conclusion This paper has outlined how the Emirates Group has developed its human resource management to be able to strategically position itself as a formidable competitor. It has also revealed that strategic human resource management should now be at the top of the agenda of the Emirates Group as the fundamental policies in human resource strategies. The Emirates Group seems to have intelligent contingency plans in overcoming severe external environmental factors, however the company could put more focus on it human resource management. Short term solutions to human resource management challenges are there to deal with minor problems but strategic human resource management should be the ideal way of dealing with chronic problems that are proving to be resilient in most circumstances. Recommendations For the Emirates Group, it is essential to modify its public relations approach so that it does not appear to the general public that it is only in existence for minting huge profits and more emphasis needs to be on the welfare of its employees and being more socially responsible. Having football academies linked to the Arsenal football club is a nice way of giving back to the community; however one could assume this is another public relations strategy to boost the image of the company. Moreover, the internal environmental factors should be addressed with more urgency and placed at higher priority to ensure that the employees maintain high morale, have high levels of communication and are motivated to deliver, especially during tougher economic times. Many companies have come under heavy criticism as far as the recruitment process is concerned. Emirates Airline being a cosmopolitan organization alone does not guarantee fairness in job recruitment and promotion. The recruitment process should be as open and fair as possible so as to attract qualified and skilled personnel who may shy off if they know the process has some external influence. Every worker or employee is motivated if he knows that his work is being appreciated. There is no better appreciation than having special way of doing this by promoting hardworking workers or giving them extra responsibility that is accompanied by plenty of incentives. Employees will also feel good if they are accorded a well outlined leave benefit so that they have time to re-unite with their family. As far as the company wants to get the best from the workers, it must also offer the best to the best to the workers. Working conditions should be favourable and able to induce the optimal performance from the workers. When it comes to employees appraisal, the process should be just and unbiased so that a strife is not precipitated. Owing to dynamism in the current job place, the company should put in place a swift feedback mechanism in order to learn from time to time the needs of its workforce. Any disparities and differences should be dealt with in an amicable and quiet manner so that no more brawls are sparked. Moreover the retirement benefit plan should give a good send off to the workers and attract other qualified personnel to work for the company. 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