Euroflite: a HR strategy report
Managing human resources within organizations is among the greatest challenge of every HR Manager. From the basic HR functions, the role of the manager to formulate and implement the most effective HR strategy is crucial as it is practically the same as having the best people to fit the needed job position. It is recognized that having an effective HR strategy leads to organizational effectiveness (Conway and Monks 2008). Entrekin (2005) recognizes HRM as a fundamental element in an organization’s life cycle. There is a need to manage people as organizational resources because they are considered as fuels of production and resource-based assets. While Western management theories indicate people as identical, replaceable, and disposable things (Elkin and Sharma, 2007), more and more contemporary organizations believe otherwise. This means that the formulation and implementation of the most appropriate HR strategy from recruitment and selection, pay and remuneration scheme, training and development, performance evaluation, and conflict and labor management is required.
This paper presents an HR strategy for Euroflite – among the leading low-cost, no frills airlines set up in the UK in recent years. In particular, it presents a strategy for the recruitment, selection and training of the additional staff required for the planned expansion while making appropriate distinction for different categories of jobs, supplementing the reward package to make it attractive to staff while offsetting the lower than industry average pay levels, and dealing with the union recognition claim at Manchester.
Recruitment, Selection and Training
As part of the initial yet possibly the most crucial HR function, recruitment and selection is part of the general management function of staffing and plays a major role in ensuring the implementation of strategies (David 2003). According to Sims (2002), recruitment is the process of discovering, developing, seeking and attracting individuals to fill actual and/or anticipated job vacancies and has three general purposes: to fulfill job vacancies, to acquire new skills, and to allow organizational growth. Sims (2002) identifies some factors that affect the recruiting efforts including organizational reputation, attractiveness of the job, cost of recruiting, recruiting goals, and recruiting philosophy. These factors are deemed essential in hiring the best individuals for the job. Selection, on the other hand, is the partner of recruitment and directed to the attainment and accomplishment of goals (Boxall and Purcell 2000). An effective selection process decreases the possibility of wasting financial resources in various HR activities such as repetitive training and documentation. The current conditions of the labor market necessitate organizations to undergo changes and utilize various job recruitment and selection methodologies (Butcher and Clarke 2003). Each organization has a distinctive recruitment and selection system, wherein the applicants are subjected to both the basic criteria of an employee and the specific criteria for the job description.
On the case of Euroflite, it is recommended that the existing recruitment and selection strategy is retained and added with additional features particularly on job analysis and pay systems. Euroflite’s plan for expansion is synonymous to having additional human resources. From the existing 1,000 employees working on principal airports of Stansted, Edinburgh and Manchester to around 2,000, the management must be able to undergo effective recruitment and selection process in order to save up staff costs or reduce its current staff costs. This is to be done by a careful job analysis. Job analysis is purposive because it is considered as framework for human resource decision making and strategic planning. In the recruitment and selection process, it is the stage of acquiring a competent and competitive workforce through identifying specific attributes suited for a particular position based on two identified levels: behavioral requirements or tasks and the knowledge, skills, abilities (KSAs) and other person attributes needed to perform the given tasks. The HR Department will be able to come up with a job posting characterized by specific information that provides descriptions and qualifications for a particular vacancy. In airline industry especially on the case of low-cost carriers, competition is intense and coping up with this means getting the highly competent and competitive people to work for the achievement of organizational goals. More so, job analysis is a distinct yet complementing mechanism that directs management on who to hire from the array of applicants to occupy that specified job position. The main steps in job analysis occur before and during or even after the initial HR functions. These steps, according to Chang and Kleiner (2002), include: identifying and isolating of component tasks in a job; examining how tasks are performed; identifying the main areas of responsibility; noting the prevailing working conditions in respect of the physical, social and financial aspects of the job; and identifying the personal demands which job makes on an individual incumbent. Applying the steps in job analysis in the most effective way possible is tantamount to stronger and more competent and competitive workforce. If the HRD is able to define the needed job position, it is ensured that the best applicants will be retained. Meanwhile, job analysis will also facilitate the identification of specific categories of jobs. To summarize the importance of job analysis to recruitment and selection process, it emphasizes on the principle that every work needs to be done (i.e. tasks and duties) requires specific kind of people possessing the key qualifications (KSAs or core competencies) to accomplish the work. On the aspect of pay systems, the HRD should provide competitive remuneration package for specific job categories. Job analysis is also used in this HR activity. It is considered that people work in their maximum level of effectiveness if they are motivated. Aside from the compensation, the HRD should present additional indirect compensations like insurance benefits, employee recognition programs, flexible work hours, and vacation benefits.
In terms of training, every organization is required to improve the KSAs and core competencies of their human resources. This is to arm them with the needed characteristics in response to unprecedented changes and needs of the industry. Hornsby and Kuratko (2005) assert that training and development activities can assist organizations to get a person with the right combination of skills and motivations who will work for the achievement of organizational goals. They further explained that this process includes three different types of activities namely: orienting the new employees; helping employees acquire new skills and helping the employees strengthen existing skills (Hornsby and Kuratko 2005, 152). Fraser and colleagues (2006) assumed that training consists of a mix of transferable and non-transferable skills. They noted the veracity of the frequent argument of experts that “training is a form of human capital investment” resulting to “a rate of return in the form of a higher marginal product of trained labor” (125). According to Sims (2002), the systematic process of training involves and not limited to a variety of planned programs designed to advance level of competence and performance among individuals, groups, and/or organization as whole. The scope of training initiatives vary and include operation, technical, sales, customer service, and various levels of leadership training (Sims 2002). On this case, Euroflite’s HRD should invest on coming up with training and development mechanisms that is focus on the needs of the organization like the ones mentioned above. Training and developing existing employees in Euroflite’s principal airports is also an option. They should be trained to be multi-taskers, thus, saving staff costs.
Recruitment, selection and training are crucial. Euroflite’s current HR strategy is adopted provided that it will pay particular attention to the provisions of job analysis and pay systems. On training and development, there is a need to create inclusive training programmes that will cater directly to the need of the whole business. It is also recommended that employees from principal airports of Stansted, Edinburgh and Manchester may be relocated to the planned locations. It is assumed that there are no significant differences in their job responsibilities. However, the management must be able to allocate sufficient financial resources for this strategic HR option.
Offering an Attracted Reward Package
It previously acknowledged that employees are motivated to work at their best if they are rewarded. According to the expectation theory, employees work if they are rewarded according to the work that they do and will help them to develop their capability, help them to work up to a higher level so that they can be better rewarded. Employees expect organizations to have compensation systems that they perceive as being fair and commensurate with their skills and expectations (Sims 2002). Euroflite’s current pay levels and grades are determined by management and the pay scales are common to staff across all of the company’s sites. On this case, the HRD must be able to analyze jobs using the principles of job analysis. As previously recommended, the HRD should provide competitive remuneration package for specific job categories. Aside from the usual compensation, the HRD should present additional indirect compensations like insurance benefits, employee recognition programs, flexible work hours, and vacation benefits to offset the lower than industry average pay levels. According to Holtbrügge and group (2006, 311), “airlines have to apply very different employment laws and taxation rules, industrial relation systems, labor market conditions, and employment contract designs.” For this reason, the standardization of pay systems and rewards package is mainly attributed to the role of the HR Manager with absolute approval from senior management considering the above factors. The process of determining supplemental reward package is based on the KSAs or core competencies such as innovation potential, flexibility, adaptability, openness to change, and trainability for future job skills as well as the job responsibilities of employees per category. Thus, performance management as among the key HR functions is also needed. The information that will be collected in the performance evaluation will be used as reliable and valid source or criteria on whether or not an employee is eligible to receive a reward package. However, it is argued that the HR Manager should pay particular attention on the different job categories existing within the organization as well as the pay systems in the whole industry.
Union Recognition Claim in Manchester
Labor relation in airline industry is becoming an object for restructuring over the past decades (Whitelegg 2003). On this particular aspect, Euroflite is subject to consultation and communication with the union and its members. The HR Manager is required to directly establish contact with the union and its members so as to know their concerns. If the management is unable to address the concerns of the union and its members, it may lead to conflict. Any organization is at risk when there is a conflict within its immediate environment. Conflict is a risk because employees have differing values and experience differing situations (Darling and Walker 2001) that will significantly affect the performance of organizational functions and the achievement of deliberate goals. It is not enough to attract and develop qualified workers but it is also important that the management must successfully nurture and manage long-term relationships with them. The practice of management relations is required.
A general meeting is suggested involving the relevant senior management authorities and union leaders. There is a clear agenda that focuses on the case of Manchester. The HRD should prepare a compelling and believable explanation on the rationale of the changes encountered by the ground staff at the airport. Explicating the new shift patterns is essential as the union and its members need to know the situations that affect them. It is expected that the union and its members will ask about the reduction of their earning from their shift allowances and might demand for supplemental reward package provided the changes that occurred in the operations. Euroflite failed to inform their employees about the changes that are currently implemented in its operations. Thus, this resulted to confusion among the employees. In this regard, the management particularly the HRD must design an effective communication and feedback mechanism between them and the union and its members.
Granted that all changes are deliberate, however, the union and its members who are mainly employees of the organization are entitle to be enlightened with what is happening inside and even outside the organization. it is assumed that the management will not openly share information to union and its members as some are classified and might endanger the welfare of the business and its overall operations. As an HR Manager, it is my role to communicate with the best of my given ability and the scope of my authority. I will encourage the union and its member to submit their formal documentations with regards to their claim for recognition. I will accept their documentations and study it before consulting the opinions of senior management. A general strategy to be recommended on labor unions is based on the traditional function of two-way communication and feedback mechanisms.
References
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