Etihad Airways: Training and Development - Assignment Example

Etihad Airways: Training and Development Name Course Tutor Date of Submission Table of Contents Table of Contents 2 Task 3 Introduction 3 The need for Training 3 The Objectives of Training 5 The Need Assessment Process 5 Training and Development 6 What does training involve? 7 Budgeting for trainings 8 Evaluation of the training success 8 The successes thus far 9 The challenges faced 9 Conclusion 10 REFERENCES 11 Task The task is to interview a person at Etihad Airways with a view of coming up with a report on the training and development activities at the company. The resource person interviewed was John Hopkins, staff in the human resource department at the Head Office. Introduction Training and development involve a group of activities meant to impart skills in the workforces that will enable them to handle what their job requires of them now but also in the years to come (Ruth & Demand, 2013). The leadership of United Arab Emirates seeks to make their capital-Abu Dhabi, the link between the East and West and their national carrier-Emirates Airways, is integral to that end. The company was started by a decree and a lot of investment put into it; by six months after the royal decree the company was already operational. That explains why Emirates Airways have received awards such as the ‘leading airline in the world’ despite the fact that it was only established in 2003. The company has a staff of more than 8,000 people from over 100 nations. Despite boasting a rich Arabian culture, their C.E.O James Hogan is Australian. Apart from the airline industry, the parent company has interests in hospitality and tourism as well (Etihad Airways 2013). The need for Training The complexity with training and development efforts in airlines has a lot to do with the many categories of workers to receive the training- pilots, airport staff, cargo handlers and cabin crew to name a few (IATA 2013). The company targets growth rates 8.5% growth every year and by 2015 hopes to handle over 8 million passengers annually (Etihad Airways 2013). The different languages worldwide, different regulations, hospitality practices calls for extensive training for the whole team. Human resource works hand in hand with other factors of production and the utility derived from them is a directly proportional to the level of guidance accorded. As the company continues to grow, employees are required to shoulder greater responsibility. Technology, including things such as reservation systems keeps on evolving. Workers' attitudes, skills and temperament need to be kept in check in an industry as big as the airline industry (Ruth & Demand, 2013). All these create a need to continually re-energize the set of skills they possess under the Training and Development programme (T&D). The people targeted for training may either be new or those staff who have been in the organization for some time (Ruth & Demand, 2013). For new staff induction training is quite important so that they grasp the organizational culture at Etihad. For instance, all persons who work for any subsidiary of Etihad must undergo an environmental friendliness course because the company markets itself as a crusader for environmentally friendly business. Inductions are carried out under the office of a corporate inductions executive who is charged with coming up with activities to enhance smoother integration of new staff into the organization (Etihad Airways 2013). The role of budget making for the induction activities also falls directly in their scope of duties. Etihad Airways has a corporate buddy integration system where new employees are assigned volunteer managers who help them get through their first few weeks at the company. This helps new employees not to feel out of place since their questions can be easily answered as well as their needs addresses. Apart from the formal corporate buddies, workers take it upon themselves to have social buddies to help new staff fit in. It is all part of efforts to increase job satisfaction and increasing the contentment drawn from the job. As it will be shown, the benefits of these deliberate moves are enormous (Etihad Airways 2013). The Objectives of Training By providing proper training and development, Etihad Airways aims at having a staff that can be described as ‘world leaders’ in their various fields. Needless to say, the overall productivity of the employees is thoroughly improved. Additionally, the company wants to breed a breed of loyal employees, especially at the middle and top management level, who will be able to see the company bring to life its immediate and future plans. These efforts are geared towards job satisfaction which has a negative correlation to employee turnover (Ruth & Demand, 2013). The intrinsic benefits to employees though not tangible are extremely important to employees with career prospects. For adult learners, the thumb rule is enabling them to handle what the present job asks of them. Their training is not as intensive and normally involves on the job learning with in-house guidance. Though a few seminars may be organised, the company may not be too willing to invest much in them since they may not fit into the long term plans of the company. However, keeping this group at the company is seen as quite strategic in training and integration of new staff (Ruth & Demand, 2013). The Need Assessment Process Just like in any establishment, Etihad Airways conduct their training based on areas strategically identified. A needs analysis precedes change in an organisation and in this case training is what follows. Normally, an internal consultant is in contracted to survey and conduct the process in conjunction with the human resource department (Etihad Airways 2013). The consultant is normally supposed to be in touch with global trends and practices in all matters to do with the aviation industry. The needs analysis normally starts with performance evaluation of all employees to identify areas that need improvement. Normally, the managers and supervisors are best suited to carry this out. Secondly, the employees themselves are given a chance to point out through questionnaires and random interviews areas they feel they need to receive adequate training to improve their productivity. Lastly, global trends into new innovations are examined in the context of Etihad Airways to see how best to incorporate them in the training. Finally, after compiling a list of training needs, the consultant now focuses their energies in generating possible ways of attaining those goals outlined in the training needs. In consultation with those at the top echelons of management, the financial implications of each method are matched against expected gains (Etihad Airways 2013). The most feasible method is chosen while also taking into account the logistical repercussions for each method if selected. The method selected has to incorporate the overall strategic plan of the company, what the human resource department deems fit and finally the individual needs identified by the staff themselves. Training and Development After extensive needs assessment, a timetable is drawn up for the implementation of the training and development. The company experiences periods that are busier than others. Most training is conducted during the less busy seasons for obvious reasons; cause least disruptions as well as prepare employees for peak periods. The company also aligns its trainings with other peer companies to allow for joint trainings for purposes of cost savings. Employees are grouped according to their needs. Trainings are carried out in batches (Etihad Airways 2013). For middle and top level managers, their training programmes involve lots of trips to seminars and conventions. They are afforded leaves and are left to choose for themselves those self development programs they would like to take part in (Ruth & Demand, 2013). The company then endeavours to sponsor them to such events. In fact, some of Etihad Airways staff is involved in training programmes for trainees of other airlines and they see it fit to let them take part in such programmes. The Etihad Airways Training Centre is a perfect example of a centre that brings together trainees from various airlines to Abu Dhabi (Air Berlin, 2013). What does training involve? Etihad Airways is in a strategic partnership with IATA where the latter provides human capital development services to members of staff. The International Air Transport Authority being a global visible body provides reliable and world class training in airport security personnel, sales, environmental awareness, human resource management and other fields in aviation. Each of those courses is tailored differently for new trainees, those already in the fields and finally managers who seek to further their knowledge in preparation for bigger responsibilities (IATA 2013). Further, the company runs the Etihad Airways Training Centre which provides training to its members of staff as well as from other companies in the sector. Being a national carrier, the company not only seeks to grow itself but to generally improve the aviation sector in its region (Air Berlin, 2013). For Etihad Airways, the needs assessment process is a continuous thing but happens at least twice a year in line with international standards. The training intensity differs with the job title. For people at operational level, seminars and short courses may be sufficient to renew skills needed for routine duties. Mostly for these, on the job training works best (Air Berlin, 2013). But by sending its middle level managers to work in different locations worldwide, the company is able to groom them for bigger managerial roles. Its workers are allowed to pursue further training with tuition reimbursements offered to encourage self development. Budgeting for trainings As earlier indicated, the various leaders of departments, for instance induction, present their budgets to top executives who then use the estimates to make a full training and development budget estimate. The main objective at this stage is to ensure the various estimates are within reach and the various training activities are in line with the long term plans of the airline. The company is constantly forming partnerships with other airlines with a view of adding sales revenue as well as reducing costs such as training. The latest example is the partnership with Berlin Airways where the companies can now hold common training programs, buy parts together and share infrastructure. In terms of sales, each company is taking over 300,000 people in the other’s country thus mutual economic gains are realized (Air Berlin, 2013). Evaluation of the training success At Etihad Airways, the training and development is designed in such a way that the system is self checking. Normally, the resultant staff performance is checked against the expected results and the gaps identified. The gaps are bridged by improving the training and development methods. Supervisors at every level are handy when it comes to the performance evaluation but more importantly, the International Air Transport Authority (IATA) is normally contracted to check the standards against the current trends in the world (IATA 2013). Feedback is welcome throughout the training process. The employees are also afforded a chance to comment on the training and its effectiveness (Ruth & Demand, 2013). As indicated from earlier explanation, the training follows a systematic model from identification of training needs, to the design and finally implementation and evaluation of results. The successes thus far The training and development of staff so far has seen Etihad Airways become a global leader in the airline sector within such a short time- less than a decade. Despite the heavy investments in technology and aircrafts, the gains would not have been realised without parallel trainings to the human resource. Many companies are now willing to partner with Etihad Airways to conduct joint training programmes (Air Berlin 2013). Again, the training and development does make the staff feel more appreciated and their career prospects brighter (Ruth & Demand, 2013). Further self- development means higher salaries, bigger job titles and recognition. When these are achieved, worries about employee turnover are mitigated. The company realizes that in so doing, it is actually investing in itself. The challenges faced The utmost hurdle to training and development at Etihad Airways has to do with the logistical challenges it causes. When these activities have to be done away from the office, it may mean disruption of day to day activities of the company. As a result the company is seeking ways to have trainings happen within the organisation especially where a good number of the members of staff need to receive the training (Ruth & Demand, 2013). The other problem is a catch-22 on whether to put money into training and development or to invest in people who already have the training and job experience. The second option would mean higher wages for them but this may be justified by their experience (Air Berlin, 2013). Another great risk would be to invest in training but later lose such personnel to another company which offers better salaries or bigger job titles. It is expensive to train pilots, even for governments. Etihad recognizes this but does it anyway at the Etihad Airways Training Centre. In return, a formula is drawn up where the trainee commits to render some years of duty to Etihad. This arrangement is mutually beneficial and virtually eliminates the previous problem of fear of loss of talent to turn over. Conclusion As globalization continues to make the world a more interactive place, the complexities of the market also grow. Training and development cannot be ignored if a company seeks to remain globally competitive. The long term gained far outweigh the current training and development costs. In addition, proper research should be carried out prior to rolling out these programmes to Ensure all parties involved are heard. That way, the courses identified are the most relevant and beneficial to the company. In so doing, the company not only adds value to its employees but to itself and the wider society which in the case of Etihad Airways means the world at large (Ruth & Demand, 2013). REFERENCES Airberlin IR – Investor Relations 2013, airberlin IR – Etihad Airways and airberlin - One year strategic partnership anniversary, viewed 4th May 2013 from http://ir.airberlin.com/en/ir/Etihad-AB/Etihad-Airways-and-airberlin---One-year- strategic-partnership-anniversary Etihad Airways 2013, National Airline of United Arab Emirates Corporate profile, viewed 4th May 2013 from http://www.etihad.com/en-ke/about-us/corporate-profile/ IATA 2013, IATA Training and Development Institute (ITDI)-Aviation Training, Viewed 4th May 2013 from http://www.iata.org/training/Pages/index.aspx Ruth, M & Demand, M 2013, Importnace of Training and Development Department in HR, viewed 4th May 2013 from http://yourbusiness.azcentral.com/importance- training- development-department-hr-1622.html York, K 2010, Applied human resource management: strategic issues and experiential exercises. Los Angeles, Sage Read More