Introduction
This assignment is not based on Ryanair Airlines, the low-cost airline without added advantages that created a different type of competition in the European airline industry. As for the requirement of the assignment, in the first task, the role and purpose of human resources management in the airline industry is analyzed. Further, the differences of Human Resource Management differ at low cost providers such as Ryanair are also discussed. As the second half of the first task, a human resource plan for Ryanair was devised and then justified based on projections of supply and demand for the labour.
The current state of employment relations in the airlines industry and then more specifically in Ryanair is discussed as the second task. Then it is explained how Employee Relations Act and Employments Rights Act could influence the management of Human Resources at Ryanair. Also, it is evaluated the extent to which Ryanair has evaluated the effective equal opportunities policies.
A job description and person specification for a job in airlines industry is developed in the third task and also evaluates the process involved in the production of these documents. The differences between the selecting techniques for recruiting pilots, flight engineers, and flight attendants at Ryanair was discussed next and also discussed how selection in the airline industry differs from other service industries. As the final task, the impact of training and development activities on the effectiveness of Ryanair’s operations is evaluated and compared to other airlines. Finally based on above discussions, recommendations and suggestions were provided.
Task 01
1.1 Role and purpose of HRM
In today’s organizations, human resource managers are playing many important roles. As a strategic partner, the HR person plays a part in the growth and the continuity of the business plan and goals in the airline industry. As an advocator, HR Manger is playing integral role in the airline industry for the organizational success. The role of advocacy includes how a healthy work environment is created in which people are motivated, contributing, and happy. Finally, HR Managers are playing a role as a change champions which is essential for the betterment of any service industry. In this context HR Manager, apply change strategies to the airline industry (Callaway, 2007, pp127).
Further, the purpose of human resources management in airline industry can be analyzed as motivation, job satisfaction, managing people in informal groups, managing conflicts, personality development, building teams, managing change, leadership, communication, human relations in the organization (Robbins, et al. 1998).
How does HRM differ at low cost?
Any organization’s purpose is to gain competitive advantage through its human resources (Robbins, et al.1998, pp89). The scenario of Ryanair is quite different since it is a low cost airline provider. Hence, the company’s aim is to maintain the payroll and related costs lower. To maintain a lower cost, company has to reduce training and development budget, employee engagement activities, welfare, compensation, rewards schemes and other employee development activities. The result is that Ryanair will fail to maintain a contended workforce and finally it will affect to the industrial peace of the company.
1.2 Human Resource Plan for Ryanair
According to Beardwell, et al. (2004), Human resources planning include assessment of present and future requirement, recruitment on a planned basis and continue control and monitoring. The process of human resource planning of Ryanair can be devised as follows based on the supply and demand for labour.
Business strategic plans
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Labour turnover analysis
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Demand/supply forecasting
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Work environment analysis
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Resourcing
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Retention
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Human resource plans
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Productivity
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Operational effectiveness analysis
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Flexibility
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Resourcing strategy
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Scenario planning
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Work environment
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Figure 1: Human Resource Plan of Ryanair
Source: Author’s Design
Business strategic plans
Business strategic plan is defining future activity levels and initiatives demanding new skills. The Ryanair’s main strategy is low cost airline service. Further, Ryanair will strategize mergers and acquisitions in future. The human resource plan of Ryanair should be according to these requirements.
Resourcing strategy – The resourcing strategy is comprised with planning to achieve competitive advantage by developing intellectual capital. The Ryanair’s purpose is to achieve sustainable competitive advantage by reducing staff cost and by improving staff productivity.
Scenario planning – scenario planning is included matching the environment changers according to the industry requirements. The Ryanair may have to face to the both worst case scenario and best case scenario according the rapid changing environment of airline industry. The human resource planning of Ryanair should be successfully faced to these scenarios.
Demand / Supply forecasting –Demand / supply forecasting includes estimating the future demand for people. Further, this includes both numbers and skills. In Ryanair both within and outside availability of people should be assessed. To achieve sustainable competitive advantage, this proper demand and supply forecasting is needed.
Labour turnover analysis – This includes analysing actual labour turnover figures and trends as an input to supply forecasts. Since, Ryanair has low cost strategy, it is essential to analyze actual labour turnover figures.
Work environment analysis – This includes analysing the environment in which people work in terms of the scope it provides for them to use and develop their skills and achieve job satisfaction.
Operational effectiveness analysis – Since, Ryanair has lower cost strategy it is vital to analyse productivity on regular basis.
Resourcing – The resourcing includes developing and implementing plans to attract, recruit and develop high quality staff in the numbers required and to become and employer of choice. Even with the low cost strategy Ryanair is regarded as the biggest player in the low-cost airline in the European market. Thus, attracting, recruit and develop high quality staff is vital.
Retention –Retention is a major challenge to Ryan Air mainly because of the lower compensation. Thus, retention strategies are vital of the human resource planning of Ryan Air.
Flexibility –The flexibility included multi-skilling, rapid redeployment, outsourcing, sub contracting and flexible working hours. Flexibility is essential for the airline industry since it is more volatile.
Productivity – This includes preparing and implementing plans to improve performance and utilization of people. The Ryanair’s strategy is to gain the competitive advantage through its human resource. Thus, improving productivity is essential.
Work environment – This includes developing a work environment which will increase commitment and job engagement. With the industry requirement it is essential increased commitment and job engagement.
(Robbins, et al.1998, pp98).
Task 02
2.1 Employment Relations in the Airline industry
Employee Relations is an important area under human resource management. Peculiarly it is involved the body of work concerned with maintaining employer-employee relationships that contribute to satisfactory productivity, motivation, and morale. Essentially, Employee Relations is concerned with preventing and resolving problems involving employees, which affect work situations (Armstrong, 2008).
After the review of employee relations, we can argue that the elements of ideal employee relationships as follow (Bruce, 2006, pp276);
1. Distinguishing contractual and statutory employment right
2. The contract of employment
3. Discrimination in employment
4. The regulation of working time
5. Termination of employment contract
6. Enforcement of contractual and statutory employment right
As per Bruce (2006), in the present world employee relation is a crisis for many organizations. Since the airline industry belongs to the service category, employee relations are playing a major role in it. Employee relations are directly related to the areas like motivation, employee productivity, job satisfaction, etc which is crucial in the service industry. Thus, maintaining good employee relations in the airline industry is essential.
Generally, current state of employee relations in the airline industry is satisfactory beside the common employee relation crisis in the present world (Bohlander and Scott 2010, pp188). Since the airline industry has been established, it has successfully distinguished the contractual and statutory employment rights. Almost all the airline organizations are well aware about the statutory employment right and they are practicing the same. The contract of employment is done according to the statutory requirements of the airline industry and further it is closely monitored. Further, all airlines are concerned about the working time, overtime, maintaining work discipline, and termination of employment contract (Storey, 1992, pp137).
The employee relations status of Ryanair is same as the other airline organizations in the organizational point of view. But Ryanair’s main strategy is low cost strategy, which is totally different from the corporate strategies of other airline organizations. According to the case given, economic, social and psychological contentment are expected by the employees. Further, transparency of the administration is also key. The employees should have the freedom to work within the framework offered by the contract. Thus, we can argue that Ryanair is expecting to maintain good employee relations in their organization beside their “low cost” strategy.
2.2 Impact of Employment Relations Act and Employments Rights Act
Both Employment Relations Act and Employment Rights Act have been enforced to protect the both employee and employer rights. Further, they help maintain good employee – employer relationship in organization. Basically, employment relations act is discussed employee Vs independent contractor, duties and obligations of employers and employees, termination of employment, personal grievance, collective bargaining, strikes and lockouts and unions. Also, employment right act is discussed employment particulars, wages and payment, disclosures and detriment, Sundays, betting, time off and suspension, childcare, dismissal notice and reasons, unfair dismissal, redundancy payments and employer insolvency (Cascio, 1986, pp234-235).
The Ryanair’s one of corporate strategies is to gain the competitive advantage through its human resource. This corporate strategy is included low payroll cost, high employee satisfaction and high productivity. Whatever the corporate strategy of Ryanair is, they cannot practice illegal or unethical practices in relation to human resources management. Thus, all areas of the employment relations act and employment right act are applicable to the human resources management of Ryanair. Especially employment relations act are concern, the Ryanair has to clearly define their employees and independent contractor. Independent contractors are common area to the airline industry and thus it is very important. Further, the Ryanair has allowed their employees freedom to engage in union activities. Also, they have accepted individual freedom. Also, employment right act are concern, Ryanair human resource management has a major role to play. Especially with the industry requirement Rayanair employees have to work on Sundays, statutory holiday and overtime. Also, they have to employ female employees for late hours since the requirements of service industry. For these requirements employment right act has a major impact on human resource management of Ryanair.
Finally, equal opportunity is a stipulation that all people should be treated similarly. The Rayanair has implemented effected equal opportunity policies. The organization executes a performance related pay strategy. It helps control employee compensation costs. Despite the lower labour costs, the employees have the possibility to earn additional pay depend on their performance. That is a good indication of equal opportunity. Further, with the industry requirement the company has requited multi-cultural employees to the firm.
Task 03
3.1 Job Description and person specification for Airline Customer Service Agent
Company - Rayanair
Division - Customer Service
Job Title - Customer Service Agent
Job Summary
The customer service agent in the airline services assists clients to ensure their travel plans are satisfactory. They handle inquiries individually about reservations, flight information, lost luggage,etc.
Key Responsibilities
- Checking guests and selling tickets or booking new reservations at the terminal.
- Checking in baggage or locating lost luggage is also included.
- Handling passenger assistance, seat assignments and boarding passes.
- assisting with announcements, boarding, delays or overbooking of flights.
Reporting Relationship
Manager - Customer Service
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Customer Service Agent
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Personal Profile (Job Specification)
· Customer service agents should be 18 or above.
· A high school diploma or GED is required.
· Previous customer service experience and willingness to work a flexible schedule will be an added advantage.
· Should be able to work under stressful conditions while maintaining a sense of professionalism
· Potential candidates must pass a background check and medical test before the employment offer
Dimensions / Context factors
Where - Tterminal, call center
How - Using telephone, computer and reservation system
With whom – with the customer service executive and other customer service staff
Approved by Agreed
The process involves in production of job descriptions
Job description is the document, which describes the job. The contents of job description are job identification, job summary, job duties, relation to other jobs, supervision, tools and materials and working conditions (Marchington & Wilkinson 2006, pp65)
The process involved production of job description person specification is as follows;
Collect background information
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Select representative positions
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Develop job specification
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Develop job description
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Collect job analysis data
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Figure 2: The process involves in production of job descriptions
(Source: Marchington & Wilkinson 2006)
3.2 Differences between selecting techniques of airlines industry and other service industries.
The main purpose of selection is to identify and employ (offer) the best qualified individuals for the suitable position. After the proper review of literature, we can summarize the various steps of the selection procedure as follows;
Interviews – All types
Presentations
Tests
Psychometric tests
Different types of positions require different kinds of selection techniques. The selection techniques chosen will depend on the particular competencies required for the position. At the Ryanair pilots and flight engineers need more competencies to perform their job. Thus, all above techniques may have to use for the selection of these two key positions. Flight attendance has a more PR job and do not need more competencies to perform their duties. Thus, they can select through a method of interview.
The procedure for the selection differs from organization to industry to industry. Further, even within the service industry it is different. For an example, selection is very deferent from airline industry to hotel industry. Employees need specific skills; knowledge and attitude to work in an airline company which is totally differ to other service organization. Employees like pilots, flight engineers, air traffic controller, and etc need specific competencies to perform their duties which differ from any other service industry.
Task 04
4.1 Impact of Training and Development on Ryanair
Training and development plays an important role in the effectiveness of organizations. It has implications for many aspects such as productivity, personal development, health and safety at work, etc.
As discussed in the previous tasks, airline staffs are faced hundreds of instructions on how to handle a task, managing routine procedure, how to react to an emergency, etc. The concern should be then, why does Ryanair need to train their staff or what is the importance of training and development for Ryanair.
Productivity - Increasing the productivity of the employees of Ryanair through training and development, helps further to achieve its long-term goal, i.e., gaining competitive advantage by offering low cost airline passenger facilities.
Development of employee skills - Training and Development helps in increasing the job knowledge and skills of employees at each level. This develops human intellect and an overall personality of the employees. It provides development opportunities to enrich the organization.
Profitability - Training and Development leads to improved profitability and more positive attitudes towards profit orientation. Especially, as Ryanair is looking forward for profitability through low costs, this is more important.
Organization Culture - Training and Development create, promote and foster an organizational environment that values development, diversity and growth opportunities for all employees. It helps in creating the learning culture within the organization.
Team spirit – this is most crucial when it comes to an industry like airlines. Training and development helps in building a sense of teamwork and team spirit. It creates a positive working environment.
Quality - The quality of work and work-life is important when it comes to gaining competitive advantage. Training and development makes sure that quality is maintained in Ryanair.
Health and safety and healthy work environment - In improving the health and safety of the organization training and development plays an important role, it helps in creating a healthy working environment at Ryanair.
Attitudes - Training and development gives hand in developing motivation, loyalty, leadership skills, positive attitudes, and other aspects that affect the success of Ryanair immensely.
In today’s context, the business world is becoming more and more complicated. Hence, training and development in organizations have also taken a new phase. Organizations should be able to distinguish themselves from other competitors. The concern should be, how does Ryanair can gain competitive advantage through training and development?
· By providing quality but cost-effective training designed to increase individual and Ryanair’s productivity and enrichment.
· By providing employees of Ryanair with training to respond effectively to customer needs as well as current and future demands for service.
· By offering employees continuous development opportunities that enhance knowledge, develop skills and enrich Ryanair in long run.
· By creating and promoting an organizational environment that values development, diversity and growth opportunities for all employees.
· By giving ongoing leadership and support to the employees.
· Providing resources and tools to improve and enhance efficiency and improve customer service.
Recommendations and suggestions
Ryanair’s business strategy is to gain competitive advantage through low cost and no added advantages. Hence, when recommendations are given, this should be kept in mind. Human resources management in airline industry comprises of motivation, job satisfaction, managing people in informal groups, managing conflicts, personality development, building teams, managing change, leadership, communication, human relations in the organization. In Ryanair, these should be carried out at minimum cost.
Business strategic plan is defining future activity levels and initiatives demanding new skills. Since Ryanair’s main strategy is low cost airline service, and also merge and acquire in the future, the human resource plan of Ryanair should be accordingly.
Employee relations are directly related to the areas like motivation, employee productivity, job satisfaction, etc which is crucial in the service industry (Luthans, 1995). Thus, maintaining good employee relations in the airline industry is essential. Both Employment Relations Act and Employment Rights Act have been enforced to protect the both employee and employer rights. Hence, when implementing low cost and no frill business strategy, Ryanair should try to adhere to these regulations. Training and development plays an important role in the effectiveness of organizations. It has implications for many aspects such as productivity, personal development, health and safety at work, etc. Hence, even when implementing the low cost strategy, Ryanair should keep this in mind.
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