Management in Air Transport - Coursework Example

Topic: Management in Air transport Introduction The aviation industry provides service to virtually every corner of the world and has played a major role in the creation of a global economy. It is an integral economic force not only with regard to its own operations but also on its unquestionable impact on other industries such as tourism, international trade, ground handling, aircraft manufacturing, to name but a few. Today, the international airline consists of over 23,000 aircraft operated by an outstanding 2000 airlines. Growth of air travel over the past thirty years is estimated at averagely 5% per annum. This thus makes the global aviation industry an integral sectorand key player in global economics. Functions of a management There are several kinds of activities that all managers pursue in fulfilling their responsibilities. Managements have a number of functions ranging from administrative to supervisory duties. These functions include but are not limited to: - planning, organizing, controlling, directing, and staffing. Management functions are not limited to managers and supervisors. Every member in the organization has some management and reporting functions as part of their job (Griffin, 2012, p 6). Management generally has a wide scope and encompasses its different factors of managerial skills, procedures and activities. These skills, procedures of management and other techniques assist in solving problems. An example is that managers of an airline organization in most cases implement their skills to recruit, advertise wisely, and make purchases for the organization among other tasks (Kandula, 2006, p 37). Organizing Organization is the function of management that involves developing an organizational structure and allocating human resources to ensure the accomplishment of the organization’s objectives. The structure of the organization is the framework within which the effort is coordinated Louis Allen (1958) defines organizing as the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling to work most effectively together in accomplishing objectives. In the aviation industry, organizing is a very important function of the management. It ensures that structures are well defined and that the in-flow of information and detail is clear. It also ensures coordinated effort, as everyone knows their designation, counterparts and responsibilities. Organizing at the level of the organization involves deciding how best to departmentalize, or cluster jobs into departments to effectively coordinate effort. There are many different ways to departmentalize, including organizing by function, purpose, objectives, levels of operation, etc. Many larger organizations utilize multiple methods of departmentalization. Organizing at the level of job involves how best to design individual jobs to most effectively use human resources. Staffing and crewing These refer to the same thing. Staffing refers to “the selection and training of individuals for specific job functions, and charging them with associated responsibilities” (Business dictionary, 2014). Staffing or crewing involves interviewing, recruiting and retention of employees. The managing firm has the duty of contracting efficient and qualified staff to operate and run the airplanes put under their management. It is their duty to ensure they offer comprehensive and satisfactory benefits to their crew. This ensures that staff is well motivated which will simultaneously be reflected in their output and general success of their operations. Planning This is another key function of a management. They are responsible for scheduling and planning for charter and owner trips. Planning is a “basic management function involving formulation of one or more detailed plans to achieve optimum balance of needs or demands with the available resources. The planning process identifies goals or objectives to be achieved and formulates strategies” (Business dictionary, 2014). Managers must establish objectives, which are statements of what needs to be achieved and when. They must also identify alternative courses of action for achieving the objectives that have been set. After evaluating the various alternatives, during planning, the managers must make decisions about the best courses of action for achieving objectives. They must then formulate necessary steps and ensure effective implementation of plans. Finally, planning also involves evaluation. Managers must constantly evaluate the success of their plans and take corrective action when necessary. Planning in the aviation industry ranges from strategic planning, through tactical planning to operational planning which basically assumes the existence of set objectives and specifies way through which they can be achieved. Directing The Business Dictionary defines directing as a basic management function that includes building an effective work climate and creating opportunity for motivation, supervising, scheduling, and disciplining. Directing is the act of guiding, overseeing and leading people. Motivation, leadership and decision making are key components of this managerial function. It largely consists of assigning responsibilities on a day-to-day basis, letting employee know what has to be done and how and by when it is to be done. It is the making of all the little but important decisions so necessary in the operation of the department. It is in fact, the process of steering the department. In directing, communication is a tool that should not be undermined. In order for decision makers to arrive at the best possible decisions from a set of alternatives, accurate information is necessary (Sussman & Krivonos, 1976, p.1). Communication is a management tool that helps maintain attention to ask and monitoring. Managers should also ensure that communication is ongoing and inclusive. HRM are expected to come up with suggestions to improve communications and to bring the management closer to employees and the organisation’s customers. For a successful organisation it’s vital that HRM shape the culture of the company through their hiring practices, orientation programs for their new employees, and paying attention to their staff on their opinions. Controlling Controlling is another managerial function. It entails the process of monitoring performance and taking action to ensure desired results. When done well, it ensures that the overall directions of individuals and groups are consistent with short and long range plans. Controlling helps the management to ensure that objectives and accomplishments are consistent with one another throughout an organization. Effective controlling also helps to maintain compliance with essential organizational rules and policies. This managerial function involves ensuring that performance does not in any way deviate from the set standards and objectives.Controlling as a management function consists of three steps, which include establishing of performance standards, comparing the actual performance of personnel against standards, and lastly taking corrective action when necessary. In the aviation industry, controlling is important to keep up with initial budgetary projections of airlines. It helps to critically monitor the general performance of the airline, which helps provide visual and real time intelligence and information needed to make critical and crucial decisions for the airline. Human resource management Human resources management (HRM) is sometimes referred to as personnel management. HRM is the personnel function which is concerned with procuring, developing, compensation, integration and maintenance of the personnel of an organization for the purposes of contributing towards the accomplishments of the organization’s objectives. Personnel management is therefore the planning, organizing, directing and controlling of the performance of those operative functions (Edward Philippo). Although there are many ways by which organizations can gain a competitive advantage, as MacMillan (1983) has suggested, one way often overlooked is through their human resource management practices. HRM practices enable organizations to gain a competitive advantage in two major ways: One is by helping themselves and the other is by helping others. So there appears to be a significant benefit from having HRM considerations represented in the strategy formulation stage rather than only in the implementation stage. The commercial airline is an extremely competitive, safety-sensitive, hightechnology service industry. People, employees and customers, not products and machines, must be the center of an organization’s core competence.The implications are vast and pervasive affecting no less than the organization’s structure, strategy, culture, and numerous operational activities. HRM comes into perspective in this way to shape the mechanics of the industry with regard to efficient human resource management. As a result of an acutely competitive airline industry, data captured from International Air Transport Association (IATA) points to the fact that effective airlines are those that have developed effectiveness in three key productivity drivers; aircraft productivity, fuel productivity and lastly labor productivity: as is seen below in fig. 1. It is shown that in the past forty years, due to the limitation of improvement in innovation and engineering, aircraft and fuel productivity have a relatively less impact than improvement in labor productivity, and this marks the difference between good and poor performers . Fig. 1 Productivity Drivers Role of Human resource management Hiring and Recruitment The human resource department has a critical role in hiring and recruiting individuals. Recruitment is the process of announcing job vacancies with a view to attracting a pool of qualified applicants to fill up vacancies in an organization. It is regarded as a positive process. Taylor (2008, p.214) posits that “recruitment involves actively soliciting applications from potential employees which is considered a positive activity that requires employers to sell themselves in the relevant labor markets so as to maximize the pool of well-qualified candidates from which future employees can be chosen.” For instance, in Singapore Airlines (SIA), HR strategy begins with recruitment, where SIA adopts a highly rigorous and strict selection process. SIA looks for cabin crew who can empathize with passengers and who are cheerful, friendly, and humble. Cabin crew applicants are required to meet a multitude of criteria starting with an initial screening looking at age ranges, academic qualifications, and physical attributes. After these baseline requirements, they undertake several rounds of interviews, uniform checks, a water confidence test, a psychometric test, and even attend a tea party. (Case 14, SIA) Training and promoting Training involves the exposure of employees to knowledge that is crucial to their development and the general development of the organization. This includes attending conferences, workshops, seminars and other instructor forums that are related to the objectives of the organization. Training should be precise, specific and goal oriented. The following are some unethical training and development practices: training for training’s sake without a demonstrated need, improper evaluation of training and development, paying lip service to training and development, negative training and development philosophy, training program viewed by trainees as a form of holiday from work as well as training based on discrimination on the grounds of sex, age, ethnicity or closeness to employers. Promotion is also another key factor that HRM has a hand in. This should be subject to performance appraisal. It is the systematic assessments of an individual with respect to his or her performance on the job and hisor her potential for development in that job. The aim of performance appraisals should be focused on the employee’s ability to meet customer needs (Cook, 2007). Talent retention The keystone of HR responsibility is talent retention, keeping great performers from going somewhere else. Many organizations are looking to fill the vacuum of star performers (Chambers, 1998). The war for talent, and talent retention, must become a burning corporate priority. HR managers must identify talent in the individual, not just by comparing a person to a job description. Rodriguez (2007) points out that employees flow through an organization as they flow through their career. The company spends a great deal of money training employees. HR is tasked with retaining the best talent in the company. This is accomplished through compensation, recognition, new assignments, and promotions. Talent management HR is also responsible for identifying those who will be great performers. Just as the employee is interested in the best company, the company needs employees that are best for the company. This is talent management (Rodriguez, 2007). It involves a critical evaluation of the employees in the organization, identifying the outstanding ones and what each has to offer above the rest. T Once hired, HR must continuously evaluate their workers, as some workers may be determined to perform better in a position other than the one they were hired for. They should be encouraged and appreciated and supported by the organization. This ensures that the firm retains the best, most efficient and motivated employees. Compensation and benefits This is another key obligation of the HRM. It should ensure at all times that the employees are fairly remunerated, and are compensated for their input. Benefits and other allowances are necessary to enhance motivation and grow a sense of belonging among the employees of the organization. HRM expertise in compensation and benefits is required now more than ever to spearhead the strategic development of a customer oriented workforce that is capable and ready to work and adapt quickly to the objectives and change imperatives faced by the aviation industry.Enhanced benefit packages for employees has been seen to improve the quality of input rendered by the employees and in turn the organizations’ success. “…we proudly provide our employees and their dependants with a very generous and comprehensive benefits package. Our company believes the investment we can make in our employees has a direct correlation to our safety and success” Chantilly Air, Washington DC. Sentiments like this show the positive trust organizations have in offering comprehensive schemes for their employees and consumers. Safety and security Airports are vital national resources. They serve a key role in transportation of people and goods and in regional, national, and international commerce. They are where the nation’s aviation system connects with other modes of transportation and where federal responsibility for managing and regulating air traffic operations intersects with the role of state and local governments that own and operate most airports. Research is necessary to solve common operating problems, to adapt appropriate new technologies from other industries, and to introduce innovations into the airport industry. The figure below captures domestic air traffic between January 1996 to September 2007, showing the effects of insecurity and deficiency of safety. The Hatfield Railway accident coincided with the rise of domestic air travel. Shortly after, the impact of September 1st attacks leads to a significant drop in air travel for a good while. (SOURCE CAA) Maintaining a safe and secure general aviation system is thegoal of everyone involved in general aviation. Airport safety and security are two important, but operationally different functions. Depending on the individual’s point of view, safetyand security can have different connotations. The pilot viewssafety as the successful completion of a flight. Those whofuel aircraft view safety as a refueling operation completedwithout incident. The airport operations staff may view safety as a runway and taxiway system free and clear of all danger. Security has a narrower focus, but is equally important—the prevention of unauthorized access to aircraft and different areas of the airport. It is dependent on every person at the airport, whether they are an employee, tenant, or transient user, to maintain a safe and secure aviation facility. Some safety practices overlap with security and vice versa; however, the intent and purpose and therefore the development and implementation of those practices are divergent. One example is airport fencing. When used to prevent wildlife from entering the airport it performs a safety function. When installed to prevent unauthorized access to aircraft by individuals it serves a security function. The United States, in 1997 released a report of the White House commission on Aviation Safety and Security. The commission gave over 50 recommendations that covered broadly safety, security, air traffic control, and disaster response. The commission made 14 recommendations in the general area of aviation safety. Foremost among these was establishing a national goal to reduce the fatal accident rate by 80% within 10 years. Other recommendations included expansion of FAA’s inspection program to cover aging aircraft, electrical wiring, fuel lines and pumps, review of the modernization of the Air Traffic Control (ATC) system and commitment of greater resources to improving aviation security among others. It is therefore apparent that Aviation safety and security is not an exclusive oversight and the need for a seamless collaboration beyond national and regional is integral. In April 1947, there was established the International Civil Aviation Organization (ICAO), a specialized agency of the United Nations.ICAO establishes International standards, recommendation practices and Procedures regarding the technical areas of aviation. It was mandated with the responsibilities of codifying principles and methodologies of international air navigation and its improvement. It is more of a standards organization responsible for standardizing some functions for use in the aviation industry, setting standards for Aeronautical Information Publication, defining ICAO Standard Atmosphere, management of infrastructure, and standardizing machine-readable identification passports. The ICAO also promotes regional and international agreements aimed at liberalizing aviation markets by establishing legal standards to ensure that the growth of the air industry does not compromise the safety and security of both the operators and users.These and many other functions facilitated by the ICAO help to maintain a flawless, secure and safe international air traffic management system. In the UK, a statutory corporation under the Transport department known as the Civil Aviation Authority (CAA) is mandated with oversight authority and is responsible for regulating procedures and processes in the UK aviation sector. It doubles both as the main regulator and implementation agency regulating over 50,000 pilots, 200 airlines, 19000 aircraft, 950 aircraft production and maintenance organizations, aircraft engineers, controllers and ATOL holders(Source CAA UK, 2014). Established in 1972, pursuant to the then Civil Aviation Act 1971, the CAA has played a major role in enhancement of security and safety in the country’s aviation industry. Among its mandates are, identifying key risks facing consumers and the wider public and helping to minimise this risk, regulation of charges, protecting both external and internal passengers, improving environmental performance, and enhancement of aviation safety performance by acting on intelligence, improving the systems, culture and capacities. The CAA is strategically structured to effectively service its mandate. Its components include, the Safety Regulation Group, Economic Regulation Group, the Directorate of Airspace Policy, the Consumer Protection Group and the General Aviation Unit created on 1st April 2014.All these units work co-independently to facilitate overall objectives of the organization. In July 2011, the UK government consulted on proposals to modernize the regulatory regime for aviation security. This was in a bid to promote innovation and efficiency and ensure the best possible passenger experience while maintaining and improving security standards. The consultation paper sired from the efforts proposed an outcome focused risk-based approach (OFRB) which would be managed through the progressive introduction of a Security Management System (SeMS), developed and run by each responsible organization, building on international risk management best practice, particularly in aviation safety regulation. A key part of the SeMS is a change from inspection-led activity by the regulator to security audit-let activity. There was almost unanimous agreement that the system based on the model of the existing aviation Safety Management System (SMS) was appropriate for aviation security. This approach will maintain the UK’s existing high security standards while providing a regulatory environment that will enable further enhancement of security. So far, the CAA has, in collaboration with DfT, published two SeMS documentations; a guideline for Accountable Managers and a SeMS Framework. All these are efforts put forward to create a safer local and international airline Industry. Conclusion The issues discussed above are not limited to the United Kingdom or airlines in our country alone. The global aviation industry is encountering the same growing piece of liberalization and as a direct consequence is faced with rigid competitive pressures, both from restructured carriers and low-cost airlines. The spontaneous growth and expansion of the international airline and the unending threat of attacks by terrorists make security and safety concerns airlines critical to every airline. The need for improved and enhanced aviation infrastructure is also of key importance to entrant global economies like Africa, India and China, where there is an anticipated growth in both passenger and cargo transport. HRM must also raise its levels to successfully factor in the ever developing world of human resource. More incentives should be given to Employees to ensure an efficient and a much more motivated workforce in the aviation industry. Entrant economies should also embrace the existent legislation and policies regulating the global aviation affair to effectively work towards a common safe and secure international airline Industry. References Primary Source Interview excerpt of the HR Manager at Chantilly Air, Washington DC. Secondary Sources Aswathapa. K, Human Resource Management, TMH, 2007, p.695 Business dictionary (March 2015)" Meaning of Planning" Available at: http://www.businessdictionary.com/definition/planning.html“Accessed: 25 March 2015 Business dictionary (March 2015)" Definition of Staffing" Available at: http://www.businessdictionary.com/definition/staffing.html“Accessed: 25 March 2015 Chambers, E. G., Foulton, M., Handfield-Jones, H., Hankin, S. M., & Michaels III, E. G. (1998). The war for talent. McKinsey Quarterly, 3. Retrieved online, March 25, 2015, from Business Source Premier Database. Cook, S., & Macaulay, S. (2007). How an integrated approach to performance appraisal and the reward and recognition of employees can improve your service levels. [Online], March, 25, 2015, from: http://www.ecustomerserviceworld.com/earticlestore_articles.asp?type=article&id=110. Griffin R. (2012). Management. New York. Cengage Learning. Kandula, S. R. (2006). Performance Management: Strategies, Interventions, Drivers. PHI Learning Pvt. Ltd Rodriguez, (2007). Talent flow. Retrieved online from Capella University, March 25, 2015. International Air Transport Association (IATA), Fact Sheet: World Industry Statistics, www.iata.org Sussma, L & Klivonos, P. D. (1976). Reducing the distortion in upward distortion data. Paper presented at the meeting of the Western Speech Communication Association, San Francisco, CA, November, 1976. Aircraft Crewing, 2015. Aircraft Management Services We Provide. [Online] Available at: www.chantillyair.com/aircraft-management/services/ [Accessed 25 March 2015]. Taylor, S. (2008). People Resourcing. (4th Ed).UK: Chartered Institute of Personnel and Development Read More