UNIVERSITY OF MANAGEMENT AND TECHNOLOGY

INSTITUTE OF AVIATION STUDIES

Course Title: Human Resource Management Module Code: AM-322

in Aviation
Resource Person: Amna Hafeez Individual Assignment
Name: SRN: Year Code:

Marks Awarded: Marks Awarded after Lateness Penalty

Applied:

Penalties for Late Submissions

 Late submission of any item of coursework will be capped at a minimum pass mark if
received up to one week late. Any submission received more than one week late will be
awarded a mark of zero.
 Late submission of referred coursework will automatically be awarded a mark of zero.

Date Work handed out:
25th Oct, 2020
Date Work to be handed in:
2nd Nov, 2020
Target Date for the return of
the marked assignment:
Within two weeks of
Submission

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 Question One

What is Human Resource Management in Aviation? From a practical point of view, why is
it important for all managers and future managers to have a good command of human
resource management concepts and techniques?

Requirements:

Minimum 2 to 2.5 page limit.

Times New Roman-Font 12
Spacing 1.15
19% plagiarism allowed
Minimum 5 in-text-citation and References
APA Style format
Plagiarized assignments will not be marked and cancelled.

Employees play an indispensible role towards the unprecedented growth and success of an
organization. The increasing importance of employees has rendered human resource management
as one of the crucial functions of the organization (Peng, 2010, p.500). It performs various duties,
starting from recruitment, training and development to sort out issues of the employees. Here the
discussion would be on the human factor in the aviation industry. The major resource in the
aviation industry is the human resource. Though human resource is the most important resource in
every industry, but in aviation the services are delivered by the humans to the humans. So the
different roles that the human resource plays in the aviation industry would be evaluated, along
with an overview of the global airline industry. The global airline industry played an essential role in
the development of the global economy. The Airline industry itself is a strong economic force
because it affects the other industries like aircraft, tourism, etc. too. The airline industry grew at a
pace of 12 percent globally and has reached to $503.4 billion. It has been forecasted that the value
would be reaching to $717.4 billion by 2015, which can be regarded as a hike of 42.5 percent from
2010. The domestic category is considered to be the largest segment in the airline industry which
account for 64 percent of the total revenue that the aviation industry generates. If we study the
geographical segmentation, then America accounts for about 44.2 percent of the total airline
industry’s revenue generation. The market rivalry in airline industry is strong due to the size of the
competitors and difficult exit mode of the industry (Marketline, 2012, p. 2). HUMAN RESOURCE
MANAGEMENT IN AVIATION 5 The human factor in the aviation industry are the pilots, crew
members, operational personnel, air traffic management, and other professionals related to similar
duties. Even the employees present for the ground duties are also the human resource of the
aviation sector
If anybody asks whether human resources management is important, we believe no
one will reply "no" because machines definitely will not be able to function without
people.
But if anybody asks how important it is to the business, there are various answers, as each business has its own
economic factors such as capital, technology, machines and knowhow. 
However, for the airline industry, players can be compared easily regarding human
resources management because of the similarity of machines in Boeing and Airbus,
the same  international aviation rules and regulations and some similar operating
standards, for example. 

“Therefore, in this dynamic competitive business, we are able to demonstrate the

importance of HR easily,” Ariya Furkfon, managing consultant at Hay Group, said last
week. Citing data from IATA, she said an effective airline is one that can develop
effectiveness in three key productivity drivers – fuel, aircraft and labour. 
In the past 40 years, due to the limitation of improvement in engineering, fuel and
aircraft productivity have had less of an impact than improvement of labour
productivity, making a difference between good and bad performers. As a result of
fierce competition, the airline industry’s earnings before interest and taxes around the
globe did not even reach 1 per cent of revenue on average from 2000-09. 
However, there were some airlines that showed a significantly better operating profit
margin –more than 8 per cent on average during that period. There are also two
airlines on this list – Southwest and Singapore – that are in the top 20 of the World’s
Most Admired Companies (WMAC) for 2014, a study that Hay Group conducts in
partnership with Fortune magazine. 
WMACs are companies that are great in managing their own company effectively in
nine categories – innovation, people management, use of corporate assets, social
responsibility, quality of management, financial soundness, long-term investment,
quality of products/services, and global competitiveness. 
The companies are well regarded by their employees and other companies around the
world. Their revenue is also admirable due to their great management. 
 
In the second article, Ariya will share the details of how airlines compete. We will
understand how full-service airlines and low-cost airlines differ in their work systems
and people management, resulting in differences in profit making.
Hay Group is a global consulting firm that works with leaders to transform strategy into
reality. This is the first in a two-part series.
Human resources is important to organizations in myriad areas, ranging from strategic
planning to company image. HR practitioners in a small business who have well-rounded
expertise provide a number of services to employees. The areas in which HR maintains
control can enhance an employees’ experience throughout the workforce while
strengthening business operations.

1. Strategic Management

HR improves the company's bottom line with its knowledge of how human capital affects
organizational success. Leaders with expertise in HR strategic management participate
in corporate decision-making that underlies current staffing assessments and projections
for future workforce needs based on business demand.

2. Wages and Salaries

HR compensation specialists develop realistic compensation structures that set company

wages competitive with other businesses in the area, in the same industry or companies
competing for employees with similar skills. They conduct extensive wage and salary
surveys to maintain compensation costs in line with the organization's current financial
status and projected revenue.

3. Analyzing Benefits

Benefits specialists can reduce the company’s costs associated with turnover, attrition
and hiring replacement workers. They are important to the organization because they
have the skills and expertise necessary to negotiate group benefit packages for
employees, within the organization's budget and consistent with economic conditions.
They also are familiar with employee benefits most likely to attract and retain workers.
This can reduce the company’s costs associated with turnover, attrition and hiring
replacement workers.

4. Safety and Risk Management

Employers have an obligation to provide safe working conditions. Workplace safety and
risk management specialists from the HR area manage compliance with U.S.
Occupational Safety and Health Administration regulations through maintaining accurate
work logs and records, and developing programs that reduce the number of workplace
injuries and fatalities. Workplace safety specialists also engage employees in promoting
awareness and safe handling of dangerous equipment and hazardous chemicals.

5. Minimizing Liability Issues

HR employee relations specialists minimize the organization's exposure and liability

related to allegations of unfair employment practices. They identify, investigate and
resolve workplace issues that, left unattended, could spiral out of control and embroil the
organization in legal matters pertaining to federal and state anti-discrimination and
harassment laws.

6. Training and Development

HR training and development specialists coordinate new employee orientation, an

essential step in forging a strong employer-employee relationship. The training and
development area of HR also provides training that supports the company's fair
employment practices and employee development to prepare aspiring leaders for
supervisory and management roles.

7. Employee Satisfaction

Employee relations specialists in HR help the organization achieve high performance,

morale and satisfaction levels throughout the workforce, by creating ways to strengthen
the employer-employee relationship. They administer employee opinion surveys, conduct
focus groups and seek employee input regarding job satisfaction and ways the employer
can sustain good working relationships.

8. Recruitment and Onboarding

HR recruiters manage the employment process from screening resumes to scheduling

interviews to processing new employees. Typically, they determine the most effective
methods for recruiting applicants, including assessing which applicant tracking systems
are best suited for the organization's needs.

9. Hiring Processes

HR professionals work closely with hiring managers to effect good hiring decisions,
according to the organization's workforce needs. They provide guidance to managers
who aren't familiar with HR or standard hiring processes to ensure that the company
extends offers to suitable candidates.

10. Maintaining Compliance

HR workers ensure that the organization complies with federal state employment laws.
They complete paperwork necessary for documenting that the company's employees are
eligible to work in the U.S. They also monitor compliance with applicable laws for
organizations that receive federal or state government contracts, through maintaining
applicant flow logs, written affirmative action plans and disparate impact analyses.

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