Global Human Resource Management in the Aviation Industry - Research Paper Example

HRM IN AVIATION INDUSTRY: Human Resource Management (HRM) in the aviation industry is critical for the success of any airliner in the industry. The airline industry is highly competitive and a technology intensive industry. It is highly safety sensitive since safety mishaps such as air crushes or any minor accidents have deleterious effects on any airline company. Employees and customers should therefore be the core of companies’ planning strategies and policies. The aviation industry remains one of the most dynamic economic sectors with constant shifting in industry landscape. Airline leaders and managers must align their management practices especially HRM with the rapidly changing business environment. With most accidents in the aviation industry occurring due to human error, special training programs that reduce human error and increase the effectiveness of employees in the industry such as flight crew attendants, aviation engineers and pilots. HRM should focus on crew management programs that improve operational performance, situational awareness and decision-making. HRM policies are necessary in designing training programs to enhance the performance and efficiency of employees in the aviation sector. Most airliners operate in a global environment across different continents. In this regard, managers must adopt global human resource practices in line with the cultures and practices in the respective countries of operations. This research examines the HRM strategies and practices in the aviation industry. It examines the efficient HRM practices necessary to operate in the highly competitive and globalized aviation industry. It investigates the training design programs necessary to avert human errors and improve efficiency among employees in the aviation industry. Introduction HRM deals with the management of people within the workplace and creating a favorable employer-employee relationship. Particularly, HRM is concerned with improving the performance of the employees in order to achieve organizational objectives. HRM is also important in improving the satisfaction of both the employees and the clients. HRM is very important in the success of any business such as the aviation industry. In the aviation industry, HRM improves customer satisfaction and minimizes the risk of human errors that could be fatal and cause accidents. Durai (2010) elaborates that HRM is wide and contains many factions such as job design and description, employee selection and training. Other divisions of HRM include project appraisal and reward systems. HRM has a substantial influence in the aviation industry. Although the aviation industry is highly technology intensive, human resources play a vital role in the sector. Aviation industry particularly, airline travel and cargo freight depend wholesomely on human resources. The human resources involved include flight attendants, pilots, engineers, security personnel and other cabin crewmembers. These personnel are important in ensuring the safety of the flights as well as enhancing customer satisfaction. Flight safety and customer satisfaction are very important in ensuring the success of an airline company. According to Wilson (2005), managing human resources to ensure the flight safety as well as enhancing customer satisfaction is therefore, critical to gain a competitive edge in the airline and freight cargo industry. Harvey (2007) states that the highly competitive airline and cargo industry has necessitated companies to efficiently manage their human resources and improve effectiveness. Airline companies must look for the most cost-effective methods of managing their employees to reduce their operational costs. Adopting human-resource models that minimize costs are necessary. In addition, airline and cargo freight companies must also adopt a globalized strategy of HRM. Most airliners operate in different continents across the world and serve customers with different cultures. The human personnel required must understand the cultures of the customers such as eating habits and language. Airline companies must adopt a cross-cultural approach in HRM in terms of employee recruitment and training. In the current global business world, airline companies must be both global in their operations and outlook. The aim of this research paper aims to provide the best HRM practices necessary to survive the competitive and global commercial airline and cargo freight industries. The paper examines the current HRM practices in the airline industry and reviews their application and implementation. It analyzes the effectiveness of the HRM practices by evaluating the performance of the airline companies that use these practices. In addition, this paper identifies the values, costs and benefits of efficient HRM policies. Finally, this research paper recommends the necessary policies required to survive the highly competitive commercial airline and cargo freight industry. Literature review Current airline commercial and cargo industry require a new brand of leadership even though leadership continuity has proved to be useful for most airline companies. Research points out that there is a significant shift in the leadership competencies in the industry given the competitiveness and dynamism of the industry (Wilson, 2005). Leadership gaps are evident in areas such as innovation. Current literature supports the use of a combination of talent management systems to prepare the current employees for top managerial positions and recruiting top performers from other airline and related industries to add fresh thinking into the industry. However, research studies conducted on talent management system in the airline industry show that the industry is full of silo functional careers that limit experience gaining through transferring to other sectors. In addition, most airline companies are skeptical and hesitant to hire senior managers from companies outside aviation industry. It is difficult to hire employees for senior management positions because the aviation industry offers uncompetitive wages compared to other sectors. Even though the global environment that characterizes the airline industry warrants a diverse pool of employees, most airline and cargo freight industries do not manage their diverse employees efficiently. Airline companies must embrace diversity and manage their international, cultural and demographic diversity systematically and in a business-oriented manner. Current literature supports the use HRM to develop new leaders for the airline industry. HRM should involve strategic planning and support for cultural change. Developing new leaders should be by aligning business objectives with future human resource requirements through in terms of the skills, experience and personal qualities. Although HRM should play a critical role in developing new leadership thinking, most HR leaders in the airline industry lack the capacity to be the advocators of change. HRM must play a leading role in developing talent strategies and heralding a new business culture necessary to keep abreast with the highly dynamic industry. The airline industry must seriously consider external recruitment of personnel from other industries to compliment the employees in the sector. Recruitment procedures to integrate leaders from diverse sector would be vital in this case. Belobaba, Odoni, & Barnhart (2009) shows that the airline industry has among the stringent recruitment process. Some of the jobs are highly skill intensive and requires rigorous training. Airline companies often look for both technical and non-technical skills while recruiting new employees. For instance, airline companies look for not only academic credentials but also physical attributes while recruiting cabin crew staffs. Most airline companies subject the applicants to a series of tests aimed at testing their skills, language proficiency and confidence. The stringent selection process is necessary to ensure that the hired employees are among the best. Highly qualified employees provide the best services thereby, enhancing customer satisfaction. Customer satisfaction helps companies to not only retain the existing customers, but also attract new customers. Operating multi-national organizations like airline companies require integrating HRM with the company’s organizational strategy. Alternatively, airline companies may also adopt a universalistic management approach that emphasizes on a complimentary relationship between HRM and organizational strategy. SIHRM models are vital in help organizations to integrate their strategies with HRM. In other words, SIHRM models help organizations to manage their employees in an efficient way in the present global world. Research shows that SIHRM models are most effective in companies with stable strategies and well-established organizational culture and hierarchical structures (Perkins et al, 2006). The SIHRM models enable companies to compete in defined geographical areas and industry boundaries. The SIHRM model helps companies gain a competitive advantage by aligning their human resources and other competencies with their core activities. However, some research studies argue against using the SIHRM model in a globalized environment that airline companies operate in. According to these research studies, the SIHRM models do not show the effectiveness of HRM within a global network. These research studies advocate for the use of SGHRM models instead of SIMRM models (Perkins et al, 2006). Nonetheless, global perspectives for HRM is mandatory for multi-national organizations such as airline and cargo freight companies. Research methods This paper is a qualitative research that does not involve statistical or numerical computations. In addition, it is also a descriptive research since it describes verbally the HRM practices in the aviation industry. This paper reviews the current trends and practices in HRM in the aviation industry. It examines best and worst practices in HRM with the view of finding the most efficient and cost-effective policies and strategies that airline and cargo freight companies should adopt. This research uses secondary data sources. Data collection method used in this paper is survey method. Survey collection method entails examining the HRM practices in the commercial airline industry. Results I. Extensive Employee Training Extensive employee training is one of the main functions of HRM. Extensive investment in employees’ training is important for any airline company. The two types of training in the airline industry includes functional training and management training (Harvey, 2007). Employee training can occur for newly acquired applicants. For instance, some airline companies such as Singapore Airline and Emirates conduct a four-month training course for their new recruits. Training for cabin crew should entail conversation techniques and art, wine appreciation, beauty care and safety and functional concepts. Continuous training helps to equip airline staffs with skills to deliver services to maximize the customers’ pleasurable experience. General management training is vital for employees who want to take senior positions. Management training prepares employees for managerial positions. Employee training is important because it helps to build team spirit among employees as well as promoting company’s culture. The training programs are not solely for senior members but also provides a chance for senior members to encourage and guide the junior members. II. Encouraging teamwork through effective service delivery teams Effective teams are necessary for excellent service delivery. Creating effective teams is a HRM practice that is effective in improving service delivery (Wilson, 2005). For example, dividing crew members into teams and planning duty rosters such that the respective teams fly together will help improve the understanding and the camaraderie among the crew members. Dividing the employees into teams makes it easy for monitoring the staffs and for performance evaluation. The managers can identify the weak areas that require improvement. In addition, encouraging teamwork creates a sense of belonging among the employees, which encourages them to enhance their performance. Organizing unrelated activities such as gala dinner, performance art circle fosters unity, teamwork and appreciation. III. Employee motivation through rewards Recognizing employees’ efforts and issuing rewards is one of the ways of encouraging good behaviors among employees. Rewards encourage positive attributes among the employees. Airline companies have various reward systems that they provide to their employees. The reward offered may include a favorable and interesting job description and content, provision of share options that are performance-based. Another reward system that airline companies can offer is to provide a variable pay system where employees receive payments based on the performance of the company. Communicating with the staffs by updating them on new company developments inculcates a sense of pride and belonging among the employees. IV. Employee empowerment Employee empowerment is necessary to enable them to make discretionary effort. It is important to allow employees make decisions on they own on how to handle customers as frontline staffs. Employee empowerment is necessary to eliminate the problem of how to monitor constantly employees’ actions. Employee empowerment entails clearly elaborating the authority boundary of every employee. Airline management must explain the empowerment limits of every employee. Empowering the employees enables the company to hold accountable the employees in case of any wrong action. Specifically, empowering front office employees is beneficial since it helps to speed up service delivery and to serve customers with special needs. Employee empowerment also motivates employees by creating a sense of belonging and responsibility among the employees. (Durai, 2010). Discussion Extensive employee training is mandatory for any employee in the airline and aviation industry by extension. Durai (2010) explains that the airline industry is skill intensive and requires a thorough and rigorous training exercise. In addition, airline industry is highly technology intensive and involves sophisticated machines. These machines operate through humans. Functional and training skills such as piloting and flight engineers and operations may require many years for someone to learn. Employees who are willing to work in the airline industry must averse themselves with the required skills. Besides the skills, experience is equally necessary especially for long distance flights. HRM is pertinent in designing efficient training programs for employees in the airline industry. The training programs should test various aspects of the employees’ skills such as decision-making, intellectual ability, communication and crisis management. Since the aviation industry is highly sensitive to accidents, the testing methods must be thorough to ensure high qualification standards of the employees. The training methods must be the most advanced that will enable the flight attendants, engineers and pilots tackle the challenges that occur in the 21st century aviation and airline industry. The training exercise should occur periodically after a specific time to improve the performance of the employees. Training and skill development, as a component of HRM, is very vital in the airline industry. Airline and cargo freight companies must invest in skill development and use the most advanced methods to minimize any human errors that may lead to fatal accidents Encouraging teamwork is another HRM principle that is vital in improving the performance and efficiency of the employees. Dividing the employees into team groups makes it easier to monitor and manage the employees especially if the employees are numerous. Teamwork fosters unity and improves performance since they is a better understanding of the employees’ strengths and weaknesses. Teamwork in airline industry is easy to assign and roster. Flight attendants, operators, engineers and pilots working in a particular plane flight should be in the same team. The employees working together in a team would form a deeper understanding and camaraderie with one another that will enable them to form formidable work partnerships based on each employee’s strengths. Besides, teamwork will enable human resource executives to identify areas of possible weaknesses for improvement. Motivating the employees through rewards is a HRM principle vital in encouraging employees in various sectors not only in the aviation sector. Reward and recognition creates a sense of belonging among the employees as they feel that they share in the success of the organization (Harvey, 2007). Employee motivation differs with the organization. In commercial airlines, employee motivation is very important because of their interaction with customers especially the cabin crewmembers. The demeanor and interaction of cabin crewmembers with the customers is crucial in ensuring customers’ satisfaction. Less motivated employees would interact poorly with the travelers, which would consequently lead to low customer satisfaction and subsequently lay-off of some of the employees due to poor revenues. Motivating employees must not necessarily by financially. Singapore Airline offers various rewards such as a bonus payment that depends on the airline’s financial performance, share option to buy the companies’ shares based on a performance criterion. Employee motivation is mandatory for companies that would like to meet their objectives. Given the competitiveness of the airline sector, motivation may help to retain and attract new personnel necessary to move the team forward. Conclusion Belobaba, Odoni & Barnhart (2009) state that the aviation industry is one of the most dynamic and competitive industries in the world. The competition is cutthroat forcing airline companies to become innovative to stay in the market. Since, most airline companies are operating in different continents, a global perspective is necessary to operate smoothly in the global environment. HRM is important in the success of any company. Likewise, HRM plays a critical role in the aviation sector. Companies must embrace diversity in their operations and personnel. Diversity in HRM my enable a company to have a global look, which is necessary to operate in the global environment. HRM is important in developing new leadership style and talents. The aviation industry requires new leadership style that encourages innovation and is dynamic. With HRM in most airline industries unable to foster new strong leaders, HRM should design procedural methods of hiring leaders from other industries. Nonetheless, HRM policies such as extensive training, teamwork, employee empowerment and motivation are important in the aviation industry. Employees particularly cabin crew, flight operators, pilots and engineers all ensure that both passenger and cargo airlines operate smoothly. Efficiently managing human resources in the aviation industry will help cut costs and maintain a competitive edge. References Belobaba, P. et al. (2009). The Global Airline Industry. Chichester: John Wiley & Sons. Durai, P. (2010). Human resource management. Chennai: Pearson. Harvey, G. (2007). Management in the Airline Industry. New York, NY: Routledge. Perkins, S. J. et al (2006). Strategic international human resource management: Choices and consequences in multinational people management. London: Kogan Page. Wilson, S. (2005). Human Resource Management in the Airline Industry-The Example of Star Alliance. New York, NY GRIN Verlag Read More