This action might not be possible to undo. Are you sure you want to continue?
that regulators determined what firms could and could not do. In the 1970s, a time of runaway inflation, and rising unemployment, many agreed that something had to change. In 1978 Congress passed the Airline Deregulation Act, which facilitated the entry of new firms and freed them to charge whatever fares they wanted and fly whatever routes they liked.3 Many new entrants materialized, including new low fare airlines like Southwest, and cutthroat competition has been the rule since. A decade after deregulation a wave of consolidation occurred. In the 1990s, a global economic recession and surging energy prices attendant the Gulf War severely crippled airline results. In the two years ended 1992, the U.S. airline industry lost approximately $6 billion. Many carriers were d filed for Chapter 11 bankruptcy protection. Consolidation continued throughout the decade so that by the late 1990s the top six U.S. airlines accounted for three quarters of all domestic air traffic.4 TWA has since been absorbed by American Airlines, further concentrating the dominance of major carriers. The industry today is a loose oligopoly. Post 9/11 Compounding the problems described above, the airline industry has operated under extraordinary strain since the terrorist attacks. Demand and fares plummeted, and massive layoffs ensued, as the industry suffered its worst year ever. UAL (United parent), US Airways, and AMR (American parent) reported losses for 2001 of $2.1 billion, $2 billion, and $1.7 billion, respectively5. In addition to significant declines in demand and diminished traffic and yields, airlines must contend with increased insurance and security costs going forward. Recent figure sindicate traffic is still down from last year. For example, American and...is solved. Venerable names such as Pan Am and Eastern disappeared, and
http://drypen.in/ Prior to launch, KFA signed a “non-poaching alliance” with Air Deccan under which both the airlines agreed not to hire each other’s employee. KFA’s flight attendants called “Flying models” were selected through a national level model contest. KFA also stressed the fact that its employees had to be capable enough to meet the airlines’ high service standards. Among one of the biggest HR move for KFA was addition of Nigel Harwood as Chief Operating Officer with effect from August 1, 2005, to strengthen its management team. Mr. Mallya said “Kingfisher Airlines Limited has a first class management team not just at top most level but also in the second line. This is part of the UB group’s commitment to human resources”. http://www.expressindia.com Airtel most innovative in HR
Airtel decided to go in for a very young team. executive director of the firm. and so develops an individual set of human resource policies. The average age is just 26years. whichAirtel initiated in 1996. ``We did the job quietly. performance management. the most important part Airtel general manager(HR) Arun Kumar Padhi had to play was to actually check if ``people enjoyedtheir roles''. employee relations and resourceplanning. to support administrative personnel functions. Purposes HR policies allow an organization to be clear with employees on: The nature of the organization What they should expect from the organization What the organization expects of them How policies and procedures work What is acceptable and unacceptable behavior . Human resource policies From Wikipedia.the `Company with theMost Innovative HR Practices in the Asia Pacific Region' at the Asia PacificHRD conclave held in Mumbai.'' says Nayar. it emerges that we had undertaken strongteam-building activities.says the award is the culmination of concentrated efforts in HRD. Nayyar believes this has helped the HR department to mould the youngentrants to the company. we checked if ourteam had the right attitude to realise the vision statement of thecompany.'' says Padhi. established by an organization.  Developing the HR Policies HR policies provide an organization with a mechanism to manage risk by staying up to date with current trends in employment standards and legislation. During the learning phase.. Each company has a different set of circumstances. Anil Nayar.. we did not want to curb their. The policies must be framed in a manner that the companies vision & the human resource helping the company to achieve it or work towards it are at all levels benefited and at the same time not deviated from their main objective. ``But having decided to take in relatively lessexperienced professionals. And at every moment of truth.Now when we look back. ``We didn't want anyone to treat his position as a mere job. the free encyclopedia Human resource policies are systems of codified decisions.
The establishment of an HR Policy which sets out obligations. By doing so. They are normally considered separate from salary but may be monetary in nature or otherwise have a cost to the company. small businesses have also begun employing them as a tool to lure top employees in a competitive job market as well as to increase employee performance. it will normally be necessary to meet provisions within employment contracts and collective bargaining agreements. Normally. Employee reward systems refer to programs set up by a company to reward performance and motivate employees on individual and/or group levels. a manager can avoid a sense of entitlement on the part of the employee and ensure that the reward emphasizes excellence or achievement rather than basic competency. then. Merit pay increases. ethics and training as well as its commitments in relation to regulation and corporate governance. they are an increase. compensation policies might support this by offering a 48/52 pay option where employees can take an extra four weeks holidays per year and receive less pay across the year. While previously considered the domain of large companies. especially those given on a regular basis such as bonuses. For example.. in order to dismiss an employee in accordance with employment law requirements. DIFFERENTIATING REWARDS FROM MERIT PAY AND THE PERFORMANCE APPRAISAL In designing a reward program. reward and recognition systems should be considered separately. Although many elements of designing and maintaining reward and recognition systems are the same. gainsharing. .. Financial rewards. especially for small business owners interested in motivating staffs while keeping costs low. As noted. amongst other considerations. etc. should be tied to an employee's or a group's accomplishments and should be considered "pay at risk" in order to distance them from salary. is now the standard approach to meeting these obligations. standards of behavior and document displinary procedures. The consequences of unacceptable behavior The establishment of policies can help an organization demonstrate. a small business owner needs to separate the salary or merit pay system from the reward system. HR policies can also be very effective at supporting and building the desired organizational culture. that it meets requirements for diversity. Recognition programs are generally not monetary in nature though they may have a cost to the company. Sue Glasscock and Kimberly Gram in Productivity Today differentiate the terms by noting that recognition elicits a psychological benefit whereas reward GET BETTER GRADES indicates a financial or physical benefit. although employee recognition programs are often combined with reward programs they retain a different purpose altogether. RECOGNITION Although these terms are often used interchangeably. Reward System Reward System REWARD VS. it is useful to keep this difference in mind. For example recruitment and retention policies might outline the way the organization values a flexible workforce. both internally and externally.. are not part of an employee reward system.
but had to settle for handing over their demand letter to the airline’s executive vice-president Hitesh Patel.” the employees said in their letter. Kingfisher spokesman Prakash Mirpuri declined to comment for this story. However. and pilots and engineers will get their salaries the following day—didn’t carry much weight with the employees. “We are not currently in a mental state to undertake any duties and doing so would jeopardize the safety of our aircraft and more so of our valuable guests.Kingfisher Airlines staff issue ultimatum on salary dues Staff threaten strike if Dec. In fact. negotiations were still on.” the employees said in the letter.000 employees of the debt-laden Kingfisher Airlines Ltd have threatened to go on strike if the management does not clear their December and January dues by Tuesday night.” Mint has reviewed both Mallya’s email to the employees and the letter handed to Patel. At the time of going to firstname.lastname@example.org a month will be paid their dues before Easter. “In the past. want Feb. It was not signed by any individual but merely said “all employees”. Jan dues not paid by Tuesday night. Many employees waited to meet Mallya at his corporate headquarters in Mumbai. Sanjai. which falls on 8 April. . pr. The salary payments being overdue for four months has left employees feeling cheated and deceived.R. we have received similar emails assuring us that salary would be paid on a certain date. none of the assurances have been met.com Share on facebookShare on twitter More than 7. resulting in not believing your latest mail. Mar remuneration by 20 April P. employees representing the airline staff have also demanded that their February and March salaries be cleared by 20 April. Kingfisher Airlines chairman and managing director Vijay Mallya’s assurances by email on Monday— that junior staff drawing less than Rs. “Employees have come to a point where operations have become unsafe due to stress caused by our financial constraints.
10 a piece on BSE Ltd on Monday. I have taken a week’s leave to save fuel so that I can pay tuition fees of my children. Shares of Kingfisher Airlines fell to an all-time low of Rs.15 points. Kingfisher Airlines has begun its 2012 summer schedule with about 120 daily flights operating from 20 aircraft. averted a strike on 2 April following the management’s assurance to its pilots who were agitated over delayed salaries. for instance. too. A section of Kingfisher Airlines employees has threatened to disrupt the Indian Premier League that begins on 4 April. “Mallya has promised us and assured regulator DGCA (Directorate General of Civil Aviation) about clearing our dues.” Another Kingfisher pilot.15. Under a temporary holding plan. Jet Airways (India) Ltd. how will your employees (be expected) to take those steps. The aviation sector is facing several issues including mounting debt. Some Kingfisher Airlines employees reasoned that if Mallya had the money to spend on cricket. which has not made a profit since its inception in 2005. has been cancelling flights since 17 February because of a severe cash crunch.478. faced threats from its pilots over delayed payments.“I have many colleagues who are facing threat from banks attaching their flats following non-payment of installments. Compensation and Employee Motivation Compensation Management Compensation Management Compensation and Employee Motivation . The cricket league includes Mallya’s Royal Challengers Bangalore team. The country’s largest carrier by passengers carried. Kingfisher Airlines. Open display of opulence is going to impact” staff morale. which have snowballed into employees not being paid salaries and consequent threats of strikes. A human resource consultant.500 crore.42% to close at 17. The airline has been forced to curtail flights from the 374a-day that it operated in September with a fleet of at least 60 planes because of the heavy debt and the accumulated losses. But no such luck. he said. said the airline’s employees are not unionized yet but they convened separate meetings at their department levels before arriving at the decision to strike work unless their salaries are paid. which will take on the Delhi Daredevils on 7 April. requesting anonymity.” said an engineer who attended the meeting with the airline’s senior management on Monday. down 8.7. “How he can fork out money to his cricketers when his employees are not paid? When you yourself are not taking austerity measures. also requesting anonymity. he should clear their dues. It has an accumulated debt of Rs. Flag carrier Air India Ltd. a cash crunch and rising fuel prices. said Mallya’s lavish lifestyle is putting off the airline’s employees.76% on a day the Sensex rose 0. who did not want to be identified.
Throughout the . We note that pay is not equally important in all situations or to all individuals. automobiles. or any number of "extra benefits" like. In fact. at least for their basic needs. We review evidence showing the discrepancies between what people say and do with respect to pay. profit sharing. most are motivated by money. as well as a variety of reasons why managers might underestimate its importance. Employee motivation through compensation can come in the form of raises. We then discuss why pay is likely to be such an important general motivator. However. Some employees are motivated by money. performance bonuses. They have a sophisticated system for rewarding employees based on customer feedback. Direct Employee Compensation Indirect Employee Compensation Variable pay Plans Compensation for Individual Performance o o o o o Piecework Rates Standard Hour Plan Merit Pay Performance Bonus Sales Commission Pay For Team Performance o o Gainsharing Team Awards and Bonus Pay for Organizational Performance o o o Profit Sharing Employee Share Option Plan (ESOP) Stock Option Skill Based Pay Executive Compensation Factors Influencing Employee Compensation Determining Employee Compensation Compensation for Loss Suffered Physical or Mentally Compensation Vs Remuneration A majority of human resources professionals appear to believe that employees are likely to overreport the importance of pay in employee surveys. I noticed an interesting program in a hotel where I recently stayed. research suggests the opposite is actually true. or other tangible items purchased and used as rewards. vacations. and identify circumstances under which pay is likely to be more (or less) important to employees. commissions.
would you relate the payment to the demands of the job or to the relative performance of individuals doing the job? Kingfisher gets tough on non-performing employees . 84% of those who understood their organization's reward/performance link believe they can help make a difference. 91% say they are motivated to help the company succeed (source: Workplace Index) In a study of 663 companies with performance reward compensation plans covering 1. gifts. a system of payment with the objective that those being paid should regard the system as being fair. profit sharing.S. individual incentives. If they also believe that the company will share its success when the strategy is achieved. the employee accumulates points that can be used to purchase rewards like trips. What the Research Shows Behavioral scientists. Performance.3 million employees and a broad section of the workforce of each company (not just managers and salespeople) by the American Compensation Association. small group incentives.What Employees Value") In a national survey of 2500 employees. they found that at the median. employees across many different types and sizes of companies 54% of employees rated direct financial compensation as "very important" or "extremely important" to motivation. When stratified by age group there was statistically insignificant difference by age group. organizations earned $2. Gen X and Gen Y were no different than Baby Boomers in this respect (source: "The Rewards of Work . In a national survey of 1200 randomly selected U.hotel. When customers comment on the performance of a hotel employee. and lump sum bonuses (source: "People. and my client experiences show compensation can be a strong driver of employee behavior under the right circumstances when properly designed. In a survey of over 1500 compensation and productivity professionals by the American Compensation Association and the American Productivity Center various types of compensation or rewards systems that they utilized were rated as having a "Positive" or "Very Positive" impact on performance in 66% to 89% of the companies where the companies used specific techniques such as gain sharing. they have placed customer feedback forms and boxes for depositing the forms. thus a close approximation of the net return on plan investment is 134% (source: "Organizational Performance and Rewards"). and other incentives.34 for every dollar they spent on payouts. and Pay"). employee and management surveys. Employee Reward EMPLOYEE REWARD If you are managing.
"Too much is being read into the normal attrition rate. procedures and job descriptions and you can easily do this if you download oursample job descriptions and hr policies. 07. Besides. especially if you inconsistently apply your human resouces policies and your pay structure/system. grievances and lawsuits. According to industry sources.PTI Oct 5. Kingfisher currently has a debt of Rs 6. a lady maintenance engineer in Delhi was also given the pink slip today. Sources also said Kingfisher has lost quite a significant number of its pilots to low-cost carrier Indigo. but the exact number could not be ascertained. the airline had sacked about five maintenance engineers on the ground of performance four weeks ago." the spokesperson said without disclosing the number of pilots who have left the airline in the recent past." he said without specifying further details. When contacted. even as a large number of its pilots are leaving the airline to join low-cost carrier Indigo and other rivals. Failing to implement policies and job descriptions leaves your company open to legal challenges. 2009.000 crore and is planning to raise about USD 175 million before March next year. clear and consise HR policies and job descriptions are imporant for a number of reasons. employees from all functions undergo routine performance appraisal exercise. a Kingfisher Airlines spokesperson said as part of an ongoing performance review process. Indigo officials could not be reached for comments. Sources added the carrier has grounded at least 10 aircraft for repair and maintenance. Why Companies Need HR Policies & Job Descriptions Straight-forward. . Grievances and lawsuits lead to: Increased costs that affect your profits Increased turnover Negative morale Your company will avoid these problems if you implement hr policies.53pm IST NEW DELHI: Vijay Mallya-promoted Kingfisher Airlines is understood to have come down heavily on nonperforming employees. "Those who consistently fail to meet minimum acceptable performance standards of the company are offered three months window to look for alternate career options.
Your company needs human resources policies and procedures and current job descriptions so that your staff are treated equally across a variety of employment issues. Our products and services are ideally suited for: Small Business Owners Managers HR Professionals HR Consultants Lawyers Small businesses often scramble for resources when compiling staffing information. procedures and job descriptions that no longer reflect the reality of today's business world. In addition. Companies looking for fresh ideas and a fresh start to can find what they are looking for with our sample hr policies and sample job descriptions. It also outlines the nature of the employees' work and guarantees motivation and reward for good work done. contracts. eHow Contributor Security concerns have made the airline industry adopt stringent employment policies. Other People Are Reading . many large companys have dated policies. human resouce polices help if legal situations arise. The airline industry requires employees to handle their customers with care and proven moral standards to help their respective airline achieve its goals. developing HR policies and procedures and writing job descriptions. In addition. Human resource policies ensure the recruitment of employees follows established protocol. Airlines HR Policy By JOHN S.
The policy enables an airline to select the appropriate employees for each job.ehow.com/facts_7668385_airlines-hrpolicy. Policies may include recruitment policies. performance policies.html#ixzz1syIV7xiY . goals and objectives. staff relations policies and antiinequity policies. Types of HR Policies o There are several types of airline human resource policies. Policy Development o The developments of human resource policy by an airline review current industry trends. The policies are constantly refined to suit the airline's vision and guarantee employee loyalty and hard work. Read more: Airlines HR Policy | eHow. these vary by airline.com http://www. o Importance of Policies o The airline human resource policy ensures the company's activities are on the right track and in accordance with its business plans. Southwestern Airlines Travel Rules & Regulations Airlines & Bereavement Policies Print this article 1.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.