Air Transport Management and Operations - Coursework Example

Topic: Management in Air transport Contents Management in Air transport 2 Introduction 2 Functions of Management 3 Organizing 3 Staffing and Crewing 4 Planning 4 Directing 5 Controlling 6 Human Resource Management 6 Role of Human Resource Management 8 Hiring and Recruitment 8 Training and Promoting 9 Talent Retention and Management 9 Compensation and Benefits 10 Safety and Security 11 15 References 15 Saks, A. M. & Haccoun, R. R. (2012). Managing Performance Through Training and Development. New York: Nelson Education Limited. 17 Management in Air transport Introduction The aviation industry is a significant entity in the world’s transport system and has played a great role in the advancement of global economy. It is an integral economic force not only with regard to its own operations but also on its unquestionable impact on other industries such as tourism, international trade, ground handling, aircraft manufacturing, to name but a few. For instance, Europe’s market share accounts for almost 55% of international tourist arrivals worldwide (World Tourism Organization, 2006). Aviation has led to the creation of a global village thus creating a massive connection among places and people (Kruger, 2003). Today, the international airline consists of over 23,000 aircraft operated by an outstanding 2000 airlines. Growth of air travel over the past thirty years is estimated at averagely 5% per annum. This thus makes the global aviation industry an integral sector and key player in global economics. Functions of Management Managers tend to pursue a mass of responsibilities in the verge of fulfilling responsibilities. Managements have a number of functions ranging from administrative to supervisory duties. There are five major managerial functions which are: - organizing, planning, controlling, directing, and staffing. Organizing Organizing is an essential entity in management that involves organizational as well as developing structure and allocating human resources to ensure the accomplishment of the organization’s objectives. The structure of the organization refers to concept within which an organization’s effort is coordinated. Louis Allen (1958) defines organizing as a structure that entails the grouping of duties, delegating as well as establishing authority and responsibility. The basic aim of the organization is to promote teamwork and enhance the accomplishment of objectives. In the aviation industry, organizing is a very important function of the management. It ensures that structures are well defined and that the in-flow of information and detail is clear. It also ensures coordinated effort, as everyone knows their designation, counterparts and responsibilities. Organizing focuses on departmentization thus allocation of duties to foster coordination effort. Departmentization is achieved through the use of function, purpose, objectives and level of operation. Organization at departmental level involves the allocation of duties on individuals. In this case, large organizations use a multiple of departmentization structures to enhance growth and development. Staffing and Crewing These refer to the same thing. Staffing is the process of training people and allocating them with duties and responsibilities (Saks and Haccoun, 2013). Staffing or crewing involves interviewing, recruiting and retention of employees. The managing firm has the duty of contracting efficient and qualified staff to operate and run the airplanes put under their management. Turkish Airlines for instance, has four major staffing positions. The positions include cabin crew, cockpit crew, overseas office employees and administrative and technical department employees (Turkish Airlines). It is the duty of managers to ensure they offer comprehensive and satisfactory benefits to their crew. This ensures that staff is well motivated which will simultaneously be reflected in their output and general success of their operations. Planning This is another key function of a management. Managers are responsible for planning the activities and strategies the organization will employ to achieve its objectives. Planning is the process of using basic management skills to balance demand and the available resources. It focuses on development goals and objectives as well as formulation of strategies (Saks and Haccoun, 2013). Establishment of objectives is the titled as the first step in a management process as it entails the designing of attainable goals. They must also identify alternative courses of action for achieving the objectives that have been set. A manager ought to make decisions on the best course of action after evaluating achievable objectives. They must then formulate necessary steps and ensure effective implementation of plans. Finally, planning also involves evaluation. Managers must constantly assess the achievements of their plans and take counteractive action where necessary. Planning in the aviation industry ranges from strategic planning, through tactical to operational planning which basically assumes the subsistence of set objectives and specifies way through which they can be achieved. Directing Directing is described as a basic management function that involves the building of an effective working environment and opportunities that enhance motivation, scheduling and work discipline. It entails leadership and overseeing of working practices in an organization. Directing consists of assignment of responsibilities on a daily basis. Directing focuses on service delivery and operation practices in an organization. For instance, the cabin crew in aviation management department falls under the directing channel as it mainly deals with customer services. In directing, communication is a tool that should not be undermined. In order for decision makers to arrive at the best possible decisions from a set of alternatives, accurate information is necessary (Sussman & Krivonos, 1976). Communication is a management tool that helps maintain attention to task and monitoring. Managers should always ensure that communication is ongoing and inclusive. A successful organization entails the practice of efficient communication network. The human resource management department plays the role of ensuring sufficient communication within the organization. In this case, directing entails the building of an organization culture that falls in line with its objective and goals. Cubin crew members of Arab airlines where Arabic hats to promotes originality and identity of the air travel company. Controlling Controlling is another managerial function that entails monitoring of performance action and promoting desired results. It categorizes performance into long-term and short-term action plan. Long-term action -plan enhance positive performance while short-term plans standardized or low performance. Controlling helps the management to ensure that purposes and achievements are consistent with one another throughout an organization. Effective controlling also helps to maintain conformity with essential organizational rules and policies. This managerial function involves ensuring that performance does not in any way deviate from the set standards and objectives. Controlling as a management function is composed of three steps. These are establishment of performance standards, comparison of standards and the actual performance and taking necessary action when necessary. In the aviation industry, controlling is important to keep up with initial budgetary projections of airlines. It helps to critically monitor the general performance of the airline, which helps provide visual and real time intelligence and information needed to make critical and crucial decisions for the airline. Human Resource Management Human Resources Management (HRM) also referred to as personnel supervision is a personnel function concerned with procuring, developing, compensation, incorporation and maintenance of workforce of a firm. This contributes towards the accomplishments of the organizational objectives. Human Resource Management controls the operative functions of management; planning, organizing, directing and controlling Human resource management helps an organization gain a competitive advantage (MacMillan, 1983). This is achieved HRM in two major ways: One is by helping themselves and the other is by helping others. HRM considerations are vital in the presentations of an organization’s strategy formulation. The commercial aviation industry is a competitive, safety-sensitive, and high technology service industry. Employers, employees and other stakeholders are the center of an organization’s core competence. The implications are vast and perverse affecting no less than the organizational structure, stratagem, organizational culture, and other operational activities. HRM comes into perspective in this way to shape the mechanics of the industry with regard to efficient human resource management. As a result of an acutely competitive airline industry, data captured from International Air Transport Association (IATA) points to the fact that effective airlines are those that have developed effectiveness in three key productivity drivers; aircraft productivity, fuel productivity and lastly labor productivity: as is seen below in fig. 1. It is shown that in the past forty years, due to the limitation of improvement in innovation and engineering, aircraft and fuel productivity have a relatively less impact than improvement in labor productivity, and this marks the difference between good and poor performers . Fig. 1 Role of Human Resource Management Hiring and Recruitment This is the most critical role of human resource management. It involves hiring and recruiting individuals as employees. HR managers recruit employees right from the process of job announcement to interviewing. The targeted applicants are distinguished from the eligibility parameters required by the hiring organization. Taylor (2008, p. 214) posits that recruitment actively involves soliciting applications from potential employees. By so doing, employers sell themselves in the relevant labor and markets niches so as to maximize their workforce. For instance, in Singapore Airlines (SIA), recruitment forms the first HR strategy. SIA adheres to a highly rigorous and strict selection process. The criterion for cabin crew recruitment requires individuals empathetic to passengers, cheerful, friendly, and humble. Other cabin crew guidelines are age ranges, academic qualifications, and physical attributes. Following these checks, the HR requires the applicants to certain tests such as the undertake interviews, a psychometric check among others (Case 14, SIA). Training and Promoting Training involves the exposure of employees to knowledge that is crucial to their development and the general development of the organization. This includes attending conferences, workshops, seminars and other instructor forums that are related to the objectives of the organization. Training should be precise, specific and goal oriented. The following are some unethical training HR practices: i. Training without an evidenced will ii. Improper assessment of training and development iii. Literal meaning to training and development iv. Negative training and development philosophy v. Viewership of training program as a form of holiday from work vi. Training based on discrimination on the grounds of sex, age, ethnicity or closeness to employers. Promotion is also another key factor that HRM has a hand in. This should be subject to performance appraisal. It is a systematic assessment of an employee in accordance to the performance and potential for job development. The aim of performance appraisals is directed towards an employee’s capacity to meet consumer needs (Cook, 2007, p. 12). Talent Retention and Management Talent retention is another role of the HR where great performers are kept from going into other competing organizations. Star performers are considered as the apex of an organization’s success hence the dire need of HR to fill in such performers (Chambers, 1998). Each employee has his or her own talent and this requisites HR managers to identify talent among employees outside the limits of their job description. The company invests money and time into training programs and as a result a HR is tasked with retaining the best talent into the company’s structure. Techniques of recognizing unique talent in an organization includes employee compensation, recognition and new assignments. Keeping the best talents in the company requires proper talent management. The mutual interests of performing employee to the best company form the framework of talent management (Rodriguez, 2007). It involves a critical evaluation of the employees in the organization, identifying the outstanding ones and what each has to offer above the rest. Upon hiring, the HR conducts employee evaluation to ensure performance appraisals. Performance appraisals encourage other employees to perform to their hired capacities and beyond. They should be encouraged and appreciated and supported by the organization. This ensures that the firm retains the best, most efficient and motivated employees. Compensation and Benefits This is another key obligation of the HRM. It should ensure at all times that the employees are fairly remunerated, and are compensated for their input. Benefits and other allowances are necessary to enhance motivation and grow a sense of belonging among the employees of the organization. HRM expertise in compensation and benefits is currently necessitated as a forefront of strategic development towards a capacitated consumer-oriented workforce, ready to work and adapt quickly to the objectives and change imperatives faced by the aviation industry. Enhanced benefit packages for employees have been seen to improve the quality of input rendered by the employees and in turn the organizations’ success. In their website, Chantilly Air, an aircraft management firm based in the United States notes that they proudly provide their employees and their dependants with a very generous and comprehensive benefits package. This they say is because their company believes that the investment they make in their employees has a direct correlation to their safety and success” Chantilly Air, Washington DC. Sentiments like this show the positive trust organizations have in offering comprehensive schemes for their employees and consumers. Safety and Security With the reliance of global airlines as resources of transport and bilateral relationships and international trade among nations, the aviation industry ought to act as a safe operation environment for passengers. Air transport also plays an important role in cargo transfer from one nation to another. As a result, governments have the responsibility to manage and regulate air traffic operations with state and local roles of owning and operating most airports (Kruggel, 2003). Whereas the industry faces both operational and management problems, in-depth analysis is incorporated and new technologies adapted to introduce innovations that make the airport safe and secure. The figure below captures UK domestic air traffic between January 1996 to September 2007, showing the effects of insecurity and deficiency of safety. The Hatfield Railway accident coincided with the rise of domestic air travel. Shortly after, the impact of September 1st attacks leads to a significant drop in air travel for a good while. (SOURCE CAA) Every stakeholder in the aviation industry views air transport safety on different connotations. The management’s perspective relies on the capability of airplane crew and ground personnel n coordination with other security agencies, while to the pilots; it depends on the ability to manage safe travel from one location to another. Ground personnel are concerned with air refueling, mechanical assessments while runway operators are concerned with the clearance of runway and taxiways. Security is a collaborative focus between the airline stakeholders and other security agencies. Measures involved include prevention of unauthorized access into aircrafts and airports. In certain incidences, safety and security practices are divergent, for example the practice of airport fencing. Most airports do this to prevent wildlife from entering the airport as a safety precaution and for unauthorized individual access as a security precaution. The 1997 White House Commission report in the US on Aviation Safety and Security provided 50 recommendations on safety, security, air traffic control, and disaster management. 14 recommendations were generic proposals on aviation safety. The report’s aim was to establish a national goal of reducing aircraft accidents’ rate by 80% in a time frame of 10 years. Other recommendations included FAA’s inspection program expansion to insure old aircrafts, electrical wiring, fuel lines and pumps, reconstruction of the Air Traffic Control (ATC) system to modern standards and commitment of greater resources to improving aviation security among others. It is therefore apparent that Aviation safety and security is not an exclusive oversight and the need for a seamless collaboration beyond national and regional is integral. In April 1947, the International Civil Aviation Organization (ICAO) was formed as a special agency to the UN to establish International standards, recommendation practices and procedural processes of aviation. It was mandated with the responsibilities of codifying principles and methodologies of international air navigation and its improvement. It is more of a standards organization responsible for standardizing some functions for use in the aviation industry, setting standards for Aeronautical Information Publication, defining ICAO Standard Atmosphere, management of infrastructure, and standardizing machine-readable identification passports. The body helps airlines and their operating nations to promote liberal aviation markets through regional and international agreements. These agreements are bound by legal standards that ensure competitive growth of the air industry void of compromises from the safety and security operators and users.These and many other functions facilitated by the ICAO help to maintain a flawless, secure and safe international air traffic management system. In the UK, a statutory corporation under the Transport department known as the Civil Aviation Authority (CAA) is mandated with oversight authority and is responsible for regulating procedures and processes in the UK aviation sector. It doubles both as the main regulator and implementation agency regulating over 50,000 pilots, 200 airlines, 19000 aircraft, 950 aircraft production and maintenance organizations, aircraft engineers, controllers and ATOL holders (CAA UK, 2014). Established in 1972, pursuant to the then Civil Aviation Act 1971, the CAA has and is still a major stakeholder of security and safety in the country’s aviation industry. Among its mandates are, identifying key risks facing consumers and the wider public and helping to minimise this risk, regulation of charges, protecting both external and internal passengers, improving environmental performance, and enhancement of aviation safety performance by acting on intelligence, improving the systems, culture and capacities. The CAA is strategically structured to effectively service its mandate. CAA components that assert this are the Safety Regulation Group, Economic Regulation Group, the Directorate of Airspace Policy, the Consumer Protection Group and the General Aviation Unit created on 1st April 2014. All these units work co-independently to facilitate overall objectives of the organization. In July 2011, the UK government consulted on proposals to modernize the regulatory regime for aviation security. The regulations would thereby prop up innovation and effectiveness while ensuring the best passenger experience while maintaining and improving security standards. The proposals endorsed the use of an outcome-focused risk-based approach (OFRB), monitored via a a Security Management System (SeMS). The latter was to be developed and operated by organizations whose responsibility was inclined to international disaster management in the aviation safety regulation. A key part of the SeMS is a change from inspection-led activity by the regulator to security audit-let activity. There was almost unanimous agreement that the system based on the model of the existing aviation Safety Management System (SMS) was appropriate for aviation security. This approach will maintain the UK’s existing high security standards while providing a regulatory environment that will enable further enhancement of security. So far, the CAA has, in collaboration with DfT, published two SeMS documentations; a guideline for Accountable Managers and a SeMS Framework. All these are efforts put forward to create a safer local and international airline Industry. Conclusion While using the UK as a case reference, the global aviation industry is encountering the same growing piece of liberalization and as a direct consequence is faced with rigid competition from restructured carriers and low-cost airlines. The spontaneous growth and expansion of an international airline and terrorism make security and safety concerns airlines critical to every airline. The need to improve and enhance aviation infrastructure is also of key importance to entrant global economies like Africa, India and China, where there is an anticipated growth in both passenger and cargo transport. HRM must also raise its levels to successfully factor in the ever developing world of human resource. More incentives should be given to Employees to ensure an efficient and a much more motivated workforce in the aviation industry. Entrant economies should also embrace existing legislation and policies regulating the global aviation affair to effectively work towards a common safe and secure international airline Industry. References Primary Source Aircraft Crewing, 2015. Aircraft Management Services We Provide. [Online] Available at www.chantillyair.com/aircraft-management/services/ Accessed 25 March 2015. Secondary Sources Allen, L.A. 1958. Management and organization, New York: McGraw-Hill Aswathapa. K, 2005. Human Resource and personnel Management, Tata McGraw-Hill, p.695 [online] Available at: http://scholar.google.com/scholar?q=%E2%80%A2%09Aswathappa.+K,+Human+Resource+Management Accessed 25 March 2015. Chambers, E. G., Foulton, M., Handfield-Jones, H., Hankin, S. M., & Michaels III, E. G. 1998. The war for talent. McKinsey Quarterly, 3. [Online] Available at: http://www.executivesondemand.net/managementsourcing/images/stories/artigos_pdf/gestao/The_war_for_talent.pdf Accessed March 25, 2015, Cook, S., & Macaulay, S. 2007. How an integrated approach to performance appraisal and the reward and recognition of employees can improve your service levels. [Online], Available at: http://www.arichall.com/academic/papers/om5210-hrm.pdf March, 25, 2015 International Air Transport Association (IATA), Fact Sheet: World Industry Statistics, www.iata.org Jochen W. & Loizos H. 2008, Singapore Airlines. Managing Human Resources for Cost-effective Service Excellence, Case 14 Managing Service Quality 18. [Online] Available at: http://bschool.nus.edu.sg/Marketing/Jochen%20papers/ESM2_Case%2014_Singapore%20Airlines.pdf Accessed on 25/3/15. Kruggel, James C. (2003). Social history: Air travel: Its impact on the way we live and the way we see ourselves. [Online]. Available at: https://superflanker1.wordpress.com/2010/10/23/social-history-air-travel-its-impact on-the-way-we-live-and-the-way-see-ourselves/ Accessed on March 25, 2015 Rodriguez, (2007). Talent Flow. Retrieved [online] from Capella University, 25/3/2015. Saks, A. M. & Haccoun, R. R. (2012). Managing Performance Through Training and Development. New York: Nelson Education Limited. Sussma, L & Klivonos, P.D. 1976. Reducing the distortion in upward distortion data. Paper presented at the meeting of the Western Speech Communication Association, San Francisco, CA. Taylor, S. (2008). People Resourcing. (4th edition).UK: Chartered Institute of Personnel and Development. Turkish Airlines, Recruitment process. [Online] Available at http://www.turkishairlines.com/en-int/career/recruitment-processes Accessed on 25/3/2015 Read More