Evaluating Performance through Motivation and Ethics: United Airlines - Case Study Example

Evaluating Performance through Motivation and Ethics – United Evaluating Performance through Motivation and Ethics – United Introduction United, in USA, is a leading organization in the global airlines industry. For 2012 the customers of the firm, along with those of the second member of the United Group, the United Express, were estimated to 140 million internationally (United Airlines, About United). The employees of the firm reach the 85,000 worldwide (United Airlines, About United). The organization has enhanced its growth by continuously expanding its routes, by securing advanced technology for its customers and by keeping its employees motivated; the last target is achieved through a series of appropriate HR practices and through the organization’s code of ethics (United Airlines, About United). It should be noted that in 2010 the merge of United with Continental was announced (2010 Annual Report, p.14). In this context, it is implied that the HR practices of Continental are also used in United. 2. Evaluating Motivational Principles in United Airlines 2a. Growth The evaluation of a firm’s performance in regard to its employees’ motivation can be based on the ‘AMO model, as developed by Appelbaum et al. in 2000’ (Saridakis & Cooper 2013, p.182). The initials of this model reflect specific factors on which a firm needs to emphasize for ensuring that its employees will be highly motivated: Ability, Motivation-enhancing and Opportunity (Saridakis & Cooper 2013). Employees’ growth belongs in the first factor of the above model: by supporting the development of its employees a firm is able to increase their Ability, i.e. their competitiveness. This target is achieved through different policies, such as recruiting/ selection and training (Saridakis & Cooper 2013). In United no specific reference is made to programs for securing employees’ growth. On the other hand, candidates have the chance to apply for the position they are interested in, since recruiting and selection is carefully designed so that candidates can select the organizational sector which is more aligned with their skills. The recruiting and selection process, as related to the availability of different paths for entering each department of the organization, seems to be the only strategic tool of the organization for promoting the growth of its employees. 2b. Achievement When referring to employees, achievement can be secured by using the Acquired Needs theory, as introduced by Murray (Lussier 2011). In the context of this theory it is noted that the motivation of employees is secured only by emphasizing on the following ‘employees’ needs: achievement, power and affiliation’ (Lussier 2011, p.408). As for achievement, as included in the above theory, this is considered as related to specific characteristics of employees, such as ‘esteem and self-actualization; (Lussier 2011, p.408). In the case of United, achievement, as part of employees’ needs, is not particularly addressed. It can be only assumed that by emphasizing on the fair compensation and rewarding of employees, as also analyzed in next section, managers in United can secure that employees’ esteem is kept at a high level, since employees are feel that the company recognizes their efforts (United, Careers). 2c. Equity/ Satisfaction The performance of an organization in regard to the satisfaction of its employees is usually evaluated using the Expectancy Theory, a theory which is based on the following idea: in each organization the motivation of employees to proceed to a particular action is depended on ‘their belief that this action will result to a specific outcome’ (Gitman & McDaniel 2008, p.243). In addition, it is necessary that the individual wants the specific outcome (Gitman & McDaniel 2008). United emphasizes on the satisfaction of its employees; a list of rewards and incentives, mostly monetary ones, is available to employees (United, Careers, Benefits and Incentives). Through these benefits United can ensure that its employees are satisfied, a fact that will lead them to perform high. The effectiveness of the firm’s motivational practices especially in regard to employees’ satisfaction can be characterized as significant, covering any potential gaps in regard to the firm’s performance in other motivational practices, meaning those related to the growth and the achievement of employees. 3. Evaluation of the organization’s ethics program 3a. Code of Ethics The organization has developed a Code of Ethics, named as ‘Ethics and Compliance Principles’; this Code aims to secure that the activities of the organization will be aligned with the principles of Corporate Social Responsibility so that the firm’s obligations towards all its stakeholders are met. The firm’s Code of Ethics introduces a series of principles that need to be respected by employees at all levels of the organizational hierarchy. Particular emphasis is given to integrity, to the development of ethical decision, to fair competition, to the report of any illegal practice that possibly appears in regard to one or more of the organizational activities and to reliability (United, Code of Ethics 2012). In regard to its content the Code of Ethics of United can be considered as complete, covering all ethical issues that can possibly appear in the organization. Furthermore, the effectiveness of this Code of Ethics in regard to specific sectors, such as employees’ training, monitoring and enforcement should be explored. 3b. Training The firm’s Code of Ethics does not refer to training program designed for helping employees to apply the firm’s Ethical Principles. However, there is the ‘Ethics and Compliance Helpline’ (Code of Ethics, p.7) which employees can use for asking information in regard to one or more issues related to the application of the firm’s Ethical Principles. According to the Code of Ethics, the above Helpline is confidential, meaning that the privacy of the person who asks for clarifications is secured (Code of Ethics, p.7). The firm’s managers should consider the option to add a training program related to the firm’s Ethical Principles; the Helpline cannot guarantee the awareness of the firm’s employees in regard to their obligations, as derived from the Ethical Principles of their organization. 3c. Monitoring The monitoring of the firm’s compliance with its Ethical Principles is highly depended on employees. In fact, in the Code of Ethics emphasis is given to the obligation of employees ‘to keep accurate records, to secure the privacy of employees and to protect the firm’s confidential data’ (Code of Ethics, p.19-20). 3d. Enforcement In each organization, the enforcement of ethics can be differentiated depending on organizational structure, the size of the firm and the resources available (Pride et al. 2010). In United, the enforcement of the firm’s Ethical Principles is developed at different levels. Primarily, a responsibility is assigned to employees to report any unethical behaviour related to the organizational activities to their supervisor or to the firm’s Helpline. Then, in case that a violation of the firm’s ethical principles occurs, a power is given to the organization to proceed to investigation, for exploring the causes of the violation and the persons who contributed in the particular outcome (Code of Ethics, p.21); the punishment for such violation can be of different types, reaching even the termination of the employment relationship or the breach of the contract involved (Code of Ethics, p.21). In regard to the specific part, the Code of Ethics of the firm can be characterized as effective, referring clearly to the consequences of the violation of its terms. 4. Conclusion In United, the increase of employees’ motivation and the promotion of the firm’s Ethical Principles are based on specific strategies. These strategies, as have been analyzed above, can be considered as effective but not complete; measures should be taken for the improvement of these strategies. The suggestions made above could help to achieve that target under the terms that the relevant processes would be continuously monitored as of the progress of each of their phases. References Gitman, L. & McDaniel, C. (2008) The Future of Business: The Essentials. Belmont: Cengage Learning Lussier, R. (2011) Management Fundamentals: Concepts, Applications, Skill Development, 5th ed. Belmont: Cengage Learning Pride, W., Hughes, R. & Kapoor, J. (2010) Foundations of Business, 2nd ed. Belmont: Cengage Learning Saridakis, G. & Cooper, C. (2013) How Can HR Drive Growth? Cheltenham: Edward Elgar Publishing United Airlines (2014) Careers. Retrieved from https://www.united.com/web/en-us/content/company/career/default.aspx United Airlines (2014) About United. Retrieved from http://www.unitedcontinentalholdings.com/ United Airlines (2014) Ethics and Compliance Principles. Retrieved from http://ir.unitedcontinentalholdings.com/phoenix.zhtml?c=83680&p=irol-govconduct United Continental Holdings (2014) 2010 Annual Report. Retrieved from http://ir.unitedcontinentalholdings.com/phoenix.zhtml?c=83680&p=irol-reportsannual Read More