American University in the Emirates

Students Name & ID:

Kesia Mary Kurian 211210102

Ahmad Mousa 211220056

Alssa Mohammad 191210036

Ahmad Saeed 181230031

Course Name & ID: Human Resource Management HRM 300

Title: Final Project- Prime Limousine HRM practices

 Contents

1. Company Introduction

2. Functions and Practices of HRM in Prime Limousine

3. Job Analysis and Personal planning: Issues Being Faced by the Organization

Affecting the Performance

4. Training and Development

5. Compensation: Rewards and Benefits

6. Performance Appraisal: Evaluation Methods

7. Conclusion

8. References

9. Appendix
 Company Introduction

Prime limousine is a UAE based operations, established in 1993 is a subsidiary

company of Liberty Investment Company LLC. The firm specializes in mass transportation,

with an emphasis on luxury chauffeur-driven buses. The firm, which has its headquarters in

Dubai Investment Park 2 and an extra location in Abu Dhabi, serves a wide range of

industries, including hotels, schools, universities, hospitality, and event management, as well

as any business that requires transportation. It has a well-maintained bus fleet and provides

mass transportation services to businesses, travel operators, and hotels. Passengers enjoy a

pleasant and beautiful travel experience because to the company's broad fleet of luxury

coaches, which includes 15, 35, and 50-seaters. In addition to its exceptional transportation

services, Prime Limousine places great emphasis on delivering class-leading customer

service to its diverse clientele. The company's strong presence in key business hubs such as

Dubai and Abu Dhabi enable it to strategically meet the transportation needs of various

sectors effectively.

This research aims to analyze the Human Resource Management (HRM) practices

integrated by Prime Limousine. Recognizing HRM as the backbone of any organization, this

research will delve into HRM theories, functions, and contemporary issues that impact both

employee and organizational performance. By analysing the specific HRM practices and

functions adopted by Prime Limousine, we aim to gain valuable insights into their approach

and examine their effectiveness in ensuring the company's overall success.

Functions and Practices of HRM in Prime Limousine

HRM is a vital organizational function aimed at optimizing employee performance to

achieve the strategic goals of the company (Johnson & Szamosi, 2018). It revolves around the

effective management of people within the organization, focusing on establishing policies

and systems (Collings et al, 2018). HR plays a crucial role in maintaining good industrial

relations by ensuring compliance with collective bargaining agreements and legal regulations

(Rihan, 1998). According to Ahammad (2017), HRM involves a series of essential activities,

including recruiting and selecting employees, conducting orientation and induction programs,

offering appropriate training and development opportunities, evaluating employee

performance through appraisals, providing fair compensation & benefits, fostering

motivation, and ensuring employees' safety, health and welfare in compliance with relevant

labour laws of the state or country.

An organization's HRM function primarily focuses on managing its workforce and

involves various practices to effectively handle employees throughout the employment cycle,

encompassing pre-hire, staffing, and post-hire phases. In the pre-hire phase, the company

engages in planning activities to identify the types of job positions that will be available and

the necessary qualifications for those roles. The hire phase involves the selection of

employees, which includes recruitment of applicants, evaluating their qualifications, and

ultimately choosing the most suitable candidates for the positions

(Whatishumanresource.com, n.d).

According to Kamoche & Mueller (1998), the effective enhancement of knowledge-

related outcomes through human resource management involves the retention of personnel,

the incorporation of their knowledge through learning mechanisms into organizational

activities, and the establishment of systems to appropriately disseminate the advantages

derived from the application of said expertise. According to Mahapatro (2022), found out that

the goal is to identify “What knowledge-driven HRM approaches are available to businesses

to improve knowledge-related outcomes?”. He mentioned the functions of HR which is:

 1. Human resource planning involves forming well-balanced innovation teams through

careful recruitment and voluntary assignments. This strategy ensures effective

personnel allocation to meet innovation goals.

2. Performance appraisal assesses employees' innovation and performance,

encouraging risk-taking, peer evaluation, and frequent evaluations. The goal is to link

individual innovativeness to company profitability.

3. Reward systems motivate employees by offering freedom to research, form teams,

and run businesses, while maintaining a balance between pay, recognition, and team-

individual rewards.

4. Career management empowers employees by harmonizing their enduring

aspirations with the organizational objectives, achieved through ongoing education

and training initiatives. Moreover, HRM practices play a crucial role in influencing

the performance of innovation within the organization.

5. Training and development programs equip managerial personnel with the skills

needed to adapt to technological advancements and socioeconomic changes,

ultimately enhancing productivity and job performance.

During the investigation of Prime Limousine, it was discovered that the company's HR

department, overseen by an HR & Admin officer who efficiently manages the staff. This HR

department is responsible for overseeing various subsidiary companies under the Liberty

Investment group. They are actively involved in the functions mentioned earlier.

Job Analysis and Personal planning: Issues Being Faced by the Organization Affecting

the Performance

Despite having a good reputation in the market and successful operations, the

organization has to deal with a number of issues that are affecting its performance. These
issues, which vary from low morale and staff retention to communication gaps and market

competitiveness, warranting attention to maintain and enhance organizational performance.

The following are some of the issues faced by the organization and how it affected

the performance:

Staffing: The business has a solid reputation for hiring excellent chauffeurs who stand out in

terms of looks, communication abilities, grasp of traffic laws, and attitude. The organization

has clearly established disciplinary processes, and both employees and chauffeurs follow

appropriate uniform standards. Emphasis is placed on recruiting individuals with a proven

track record of professionalism. Job description can be seen in Appendix (Figure 1).

Employee Development: The company prioritizes the growth and development of its

employees by organizing in-house training sessions, especially focusing on road safety and

defensive driving for chauffeurs.

Diversity and Inclusion: The company takes pride in its diverse workforce, with employees

hailing from various Asian countries, including India, Pakistan, Philippines, Bangladesh, and

Sri Lanka. This diverse composition enables the company to deliver high-quality services to

its clients.

Employee Retention: The company faces challenges in employee retention, particularly

among chauffeurs. While the chauffeurs receive comprehensive professional training, the

company struggles to keep them due to more attractive salary packages offered elsewhere.

Employee morale and satisfaction have not received enough attention, with limited employee

engagement activities beyond year-end gatherings.

Workplace Safety: The company ensures adequate workplace safety measures by equipping

its vehicles with essential tools, such as first aid kits and fire extinguishers, to support

chauffeurs during their operations.

Organizational Culture: Feedback from several chauffeurs revealed discontent within the

organization. There seems to be a communication gap between the operations team and front-

line chauffeurs, leading to feelings of being unheard and unsupported. The HR department

also faced criticism for not addressing issues promptly.

Company Performance Management: The business has previously had difficulties that

resulted in the closure of its Sedan Service in the UAE for a number of reasons, including

problems with HR policy, market competitiveness, and evolving market dynamics. The

emergence of ride-hailing services like UBER and Careem added to the competition, and the

departure of skilled staff and chauffeurs further impacted the company. However, with

renewed management efforts and the adoption of mass transportation services, the company

now operates profitably with a positive market reputation.

After a thorough analysis of the organization's HR operations led to the conclusion

that Prime Limousine surpasses its rivals in the mass transportation sector and preserves a

positive market reputation mostly because of its outstanding chauffeurs. These chauffeurs

undergo rigorous road safety training and possess extensive knowledge of locations and

prominent landmarks. While a few complaints were noted and certain areas could benefit

from improvement, the overall performance of the HR department was deemed satisfactory.

Training and Development

In today's business landscape, companies pose significant focus on implementing

training and development programs for their personnel as a crucial HR practice that fosters

strong commitment to their organization (Kadiresan et al, 2015). In modern-day corporate

settings, employees are regarded as valuable resources for organizations, underscoring the

significance of investing in endeavours such as training and development to boost their

capabilities and overall efficacy. Its initiatives encompass a sequence of structured programs
intended to enhance and refresh employees' knowledge, competencies, skills and experiences

(Obeidat et al., 2014). In the highly competitive environment of today, it is significant to

recruit employees adhered to the requirements, skills needed, and competent. This will help

to enhance productivity, competitiveness, and improve overall performance of the

organization. Another study by Ahmad and Bakar (2003), mentioned training is a well-

planned & systematic effort to enhance personnel performance in various activities. In

contrast, Noe et al (2004), he pointed out that development focuses on training employees for

roles in the future within the company and improve their adaptability skills to settle up in any

unfamiliar or new job requirements and responsibilities.

Both training and development are essential components of Human Resource

Management (HRM) aimed at enhancing an organization's capacity to achieve desired

outcomes. Training focuses on improving employees' abilities, skills, and their way of

thinking, interacting, and communicating with customers (Burhan et al., 2021). In his article

he also categorized training methods into two types: on-the-job training, which is held by

managers and supervisors. While off-the-job training, which involves training employees in

specific skills outside the regular office environment.

Company Scenario: The company primarily relies on on-the-job training methods to train

and develop its office staff. Line supervisors and managers play a significant role in training

office staff members, such as operations coordinators, during their initial months. Through

this process, employees acquire the necessary skills to work independently in the future, and

once they become proficient, they are assigned to independent shifts.

In contrast, the company allocates substantial resources to train and develop its

chauffeurs. Chauffeurs receive road safety training from external partners (one of the

companies is Shell corporation), which recently provided such training due to their
association with Shell employees. Additionally, the local Government mandates chauffeurs to

undergo annual training and examinations to renew their official license cards (special

vehicle license for limousine, light & heavy vehicle licence for cars and buses), particularly

the RTA cards.

Compensation: Rewards and Benefits

Compensation is a methodical strategy aimed at offering financial rewards to

employees in recognition of their work and contributions (Badre, 2021). Its objectives

encompass enhancing recruitment efforts, encouraging improved job performance, and

fostering higher levels of job satisfaction. A well-designed compensation management system

has the potential to greatly enhance employee performance and cultivate a highly motivated

workforce that demonstrates a strong commitment to the organization, going beyond the call

of duty (Patnaik, 2012). The term "compensation" refers to salaries, incentives,

accommodation, bonuses, allowances, and health benefits. Additionally indirect

compensation includes all accident, health and life insurance, gratuity and pension, as well as

reimbursement for time off for illness or vacation, are often known as perks.

Furthermore, the two basic categories of incentives are monetary and non-monetary.

Financial compensations including basic salary, performance pay, commissions, and bonuses

are considered monetary benefits. While non-monetary rewards include empowerment,

competency development, and employee recognition. According to Mustafa & Ali (2019),

found that the implementation of a well-designed reward system plays a crucial role in

increasing retention rate and motivating employees.

Company Scenario: Prime Limousine company offers a comprehensive compensation

package to its employees, which includes various benefits. Employees receive a monthly pay

that comprises basic salary, housing allowance, and overtime charges if applicable. They have
the option to avail the company's housing facility, but in such cases, the housing allowance is

deducted from their salary. The company provides transportation services for pick-up and

drop-off to and from the office. Additionally, all employees are covered by medical and

accidental insurance, which allows them to use insurance cards for discounted OPD

treatments and medicines. Furthermore, employees are granted life insurance coverage. Paid

leaves are part of the package, allowing employees to accumulate 2.5 days of paid leave each

month and receive 30 days of leave after completing one year of service. At the end of one

year, employees receive one full basic pay along with the 30 days of accumulated leave.

As an additional perk, employees are entitled to return flight ticket once in a year in

economy class. Overtime payment is provided, with overtime on regular weekdays paid at 1.5

times the hourly wage, and 2 times the hourly wage for overtime on weekends or public

holidays. It's worth noting that there was no formal promotion or recognition policy in place

for drivers at the time, although a staff promotion policy was reportedly under development.

Performance Appraisal: Evaluation Methods

Performance appraisal has been referred to by various names, including performance

review, performance evaluation, performance assessment, and service rating (Aggarwal &

Thakur, 2013). According to Kohli and Deb (2008), mentioned the development of

performance appraisal can be categorized into four distinctive phases, as outlined by the

TEAM approach (Technical, Extended, Appraisal, and Maintenance). Essentially,

performance appraisal encompasses the process of assessing past performance,

acknowledging accomplishments, establishing future objectives, and fostering employee

development (Sapra, 2012). An indicator of HRM quality in a company is their appraisal

system for employees. Besides forming the foundation for effective performance
management, the implementation and design of employee appraisal process also it helps to

have valuable inputs for other HR functions (Blštáková, 2010).

The significance of performance appraisal lies in its contributions to different aspects,

including offering performance feedback, assisting in training personnel and their decision-

making processing, validating selection processes, compensation, supporting Human

Resource Planning (HRP) and fostering career development

There are following methods to performance appraisal in an organization (Aggarwal &

Thakur, 2013); -

a) Ranking Method: It involves assessing employees based on specific traits and

arranging them in order from best to worst. This approach helps identify the top-

performing employees as well as those needing improvement (Gary. 2011).

b) Graphic Rating Scales: It is a method that rates employees on various traits using a

scale with defined performance ranges. It provides a consistent and practical way to

evaluate employee performance over time (Gary. 2011).

c) Critical Incident Method: It involves recording exceptional instances of an

employee's work behaviour, both positive and negative, and reviewing them at

scheduled intervals. This technique outlines the key incidents that impact performance

(Gary. 2011).

d) Narrative Essays: Entails having evaluators put their explanations of a worker's

strengths, flaws, prior performance, and ideas for development in writing. The

assessment is concentrated on the behavioural aspects. (Jafari et al, 2009).

e) Management by Objectives (MBO): Introduced by Peter F. Drucker, emphasizes

setting and achieving specific objectives. It consists of three components: the setting

of objectives, implementation, and performance evaluation (Adekunle & Wu, 2005).

 f) Behaviourally Anchored Rating Scale (BARS): it was developed to improve the

validity and reliability of performance ratings. It uses behavioural anchor scales that

provide detailed examples of various performance levels for each trait (Freinn-von

Elverfeldt, 2005).

g) Human Resource Accounting: This method considers people as valuable resources

for organizations, aiming to assess their value for decision-making purposes. It

involves estimating the financial utility of personnel selection (Johanson et al, 1998).

h) 360 Degree Feedback: This popular technique gathers evaluations from various

sources, including superiors, colleagues, subordinates, customers, suppliers, and

spouses (Jafari et al, 2009). It provides individuals with a comprehensive view of their

impact on others in the workplace (Freinn-von Elverfeldt, 2005).

i) 720 Degree Feedback: Developed as an enhancement to 360-degree reviews, the

720-degree approach involves incorporating the perspective of customers or investors

when evaluating upper-level managers, providing a more holistic assessment (Mondy

& Noe, 2005).

Company Scenario: In the Prime Limousine company, they employ a performance appraisal

approach for their drivers that closely resembles the critical incident method. The supervisors

and managers keep track of these significant episodes throughout the year, which may

include exceptional customer service, careful driving or any other notable behaviour. The

same goes for any instances of carelessness, client complaints, or safety concerns. This

approach depends on actual cases rather than generic evaluations, allowing Prime Limousine

to evaluate the performance of its drivers in a more objective and realistic manner. Through a

more precise identification of drivers' strengths and areas for development, the organization is

better able to provide focused training and assistance to increase overall performance and

customer satisfaction. Rating scales are used as the main performance review approach for
the office personnel. This approach offers a systematic and reliable technique to evaluate

employee performance and monitor their development over time. Critical Incident evaluation

can be seen in Appendix (Figure 2).

Conclusion

The research on Prime Limousine's HRM practices revealed that the company emphasizes

several key functions, including HRP, performance appraisal, employee development through

training, and compensation package. The company's dedication to recruiting and retaining

highly skilled and professional chauffeurs has been a significant factor in maintaining its

positive market reputation. Upon careful analysis Prime Limousine, it can be concluded that

the HRM department of this company possesses nearly all the essential elements necessary to

establish a highly effective HR department. However, the research also identified several

challenges faced by the organization, such as employee retention, communication gaps, and

market competitiveness. The HR department must pay attention to these problems in order to

address and successfully fix them since they may have an influence on employee morale and

overall organizational performance. The business has the chance to improve its benefits

package to stay competitive in the market. Employee turnover resulted from greater pay

packages being given by competitors, according to online evaluations from both employees

and drivers. The uncertainty around working hours was another issue that was brought up and

had an impact on general employee happiness. The HR department performed satisfactorily

overall despite these difficulties.

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 Appendix

Figure 1 Job description

Figure 2 Critical Incident Evaluation Method
Slide 10

From analysing the few evaluation methods mentioned by my

colleague Ahmed, we found that Prime Limousine uses the critical
incident method for their drivers. In which their supervisors and
managers pay close attention to specific moments that stand out like
really good customer service, safe driving, or any exceptional actions.
They also take note of any instances where things didn't go well, like
customer complaints or safety issues. Instead of using general ratings,
they base their evaluations on real situations, making it a more
accurate way to measure performance. This way, they can clearly see
what each driver is good at and where they might need improvement.
And it's not just about pointing out mistakes; it's about understanding
strengths too. For office staff, they use rating scales to evaluate
performance over time. This helps the company keep track of how
employees are doing and how they're growing.

Slide 11

To conclude our study, Prime Limousine's HRM practices focus on

important areas like planning for future staffing needs, evaluating
employee performance, providing training for growth, and offering
competitive compensation. But our study also found that there are
some challenges related in retaining their employees for the long
term, their low to moderate compensation package and uncertain
working timings. For the challenge of compensation package, they
could compare it with the industry packages in order to make their job
offer more attractive to the employees. But overall, the company’s
HR department has performed well.