Managing Human Capital and Leadership of Air Malta Airlines

The present coursework is based upon Air Malta, its a growing airline service provider company for this management needs to put a control on overall employees so as to gain high cutting edge. ABSTARCT 2 INTRODUCTION 1 LITERATURE REVIEW1 Relevant models, approach of company to the management of its human resources1 Recruitment and selection in relation tostrategichumanresource initiatives and provide necessary recommendations on the same 3 Discuss approaches used by Air Malta and how this could be improved 6 Classical theories of motivation 8 Traits

Managing human
capital and leadership

ABSTARCT
Human resources are one of the crucial factor in organisational perspective; its helps
administration to manage whole workforce in the best possible manner. The report is based on
how to manage employees by resolving their issues and problems which are being occurred
while doing job roles. The present coursework is based upon Air Malta, its a growing airline
service provider company for this management needs to put a control on overall employees so as
to gain high cutting edge.

Table of Contents
ABSTARCT.....................................................................................................................................2
INTRODUCTION...........................................................................................................................1
LITERATURE REVIEW................................................................................................................1
Relevant models, approach of company to the management of its human resources...........1
Recruitment and selection in relation to strategic human resource initiatives and provide
necessary recommendations on the same...............................................................................3
Discuss approaches used by Air Malta and how this could be improved .............................6
Classical theories of motivation.............................................................................................8
Traits and characteristics of effective leaders........................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
In this global economy there is a huge competition among business organisations. The
customer satisfaction is the key aspect which helps in improving organisational performance. Its
all depend on employees' attitude, there cannot be satisfied customers when they are served by
unhappy workforce. In this respect, management is required to manage entire human capital in
more efficient and systematic way so as to gain high competitive edge. Significance of human
resource management is driven up output level from human resources; now it has become
strategic part of management. It can gradually increases the human capital and organizational
performance by managing them effectively (Birasnav, 2014). Along with this, the core concept
of HRM is to attract well skilled and trained people and providing them necessary guidelines
through training in order to boost up their efficiency. HR professionals also acquires various
leadership styles so as to influence people towards doing a specific task or activity. Although,
leadership styles plays a crucial role in order to manage workforce in the best possible manner.
Apart from this, the present assignment is based upon Air Malta; its a flag airline company
which headquarters is in Luqa and having a hub at Malta international airport. The report is
going is be described requirement of managing human resources and critically discussion upon
recruitment and selection in relation to strategic human resource initiatives.
LITERATURE REVIEW
Relevant models, approach of company to the management of its human resources
According to Birasnav, Rangnekar and Dalpati, (2011) human resources are treated as
one of the imperative part for every business organisation ; the term deals with issues related
with people, i.e. compensation & benefits, performance management, recruitment and selection,
training and developing organisational cultural. Multinational business associations are tend to
manage their human resources for this they applied several models and theories. The present
assignment is based upon Air Malta, its a airline service provider company by having 8 fleet size.
The organisation serve its services on three prime destinations, i.e. Middle East, Europe and
North Africa. Air Malta had since opened a number of new routes, including Tunis, Manchester,
Malaga, Comiso, Kiev, Lisbon, Casablanca, Southend, Cagliari and Frankfurt. In order to
accomplish all these activities in the best possible manner, HR professionals are required to
manage entire workforce in an effective manner.
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Relevant models of HRM which is best suited to organisation:-
Strategic management – With the viewpoint of Bounfour and Edvinsson, (2012) making
improvements in bottom line of the company with knowledge of how human resources reflects
company' success is the main role of HR. In this process, leaders with great experience of
strategic management can participate and improves corporate decision making process of the
company. It also lays down existing staff requirements and make projections for future
requirements of workforce that is based upon demand of the company.
Safety and Risk management - It is main responsibility of HR manager is to render safe
working conditions to employees as they can work freely. Workplace safety and risk
management specialists in business associations tries to manage appropriate work logs and data
as well as formulate strategies in order to reduce the number of various fatalities and injuries that
can occurs at workplace. Along with this, they also engage staff members to promote awareness
regarding safely handling of dicey machineries and hazardous chemicals.
HRM policies decisions - Any HRM strategy will be successful when entire HR
department is concentrate towards developing effective strategies and policies which can ensure
future future market growth of the company. In Air Malta, HR mangers develop policies and
strategies by considering mission statement to become one of the popular airline service provider
company over the world (Bratton and Gold, 2012). At this, recruitment and selection also should
be done in an appropriate manner. Behind this, the prime goal is to implement an actual
environment that is based upon strategic policies and plans.
Organisational outcomes – This aspects is linked with the outcome which comes from
value of the firm which gives to staff members. The HR manager of Air Malta states that people
are values for the company and wants to gain deliver in return; this situation can be applied in
organisation in which policies are being made by keeping in mind individuals needs and wants
and improving their knowledge at the time of working.
Another Model of HRM
Hard model (Control) Soft model (Commitment)
Traditional view of management Modern view of management
Commitment is not seen Self guided employees
Employees are treated as workers Associated with human relations
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Employee empowerment and involvement are
hardly available
Cultural management is practiced.
Attaining organisational objectives is only aim Achieving employees as well as organisational
objectives is the aim.
Approaches of human resource management: -
Recruitment and selection – It is one of the imperative part of human capital management
which helps in fulfilling the requirement of employees for a specific job role. Boxall and Purcell,
(2011) stated that recruitment is defined as searching and obtaining a large pool of candidates
who have desired knowledge and experience; it allows management to select the best one to
carry through appropriate people. Although, acquiring best people at workplace, helps Air Malta
to sustain competitive edge whereas inefficient recruitment and selection leads enormous
disruption and eradicated productivity, interruptions in operations etc.
Training and development – It is another major approach of human resource management
which tend towards boom up individuals skill and knowledge level by organising various
learning sessions. Training and development is is a subsystem of an association and centre
function of HRM. It guarantees to make consistent aptitude improvement of representatives who
are working in an association and habituates procedure of learning for creating information to
work. Along with this, learning activities are conducted in order to better bettering execution of
people and gatherings in authoritative settings. It has been known by a few names, including
worker improvement, human asset advancement, and learning and advancement.
Compensation and benefits – Usually, companies acquire economic and non-economic
policies so as to inspire and encourage their employees as they can do all tasks in the best
possible manner. According to Buller and McEvoy, (2012) by giving higher compensation or
remunerations, staff members feel more appreciated or rewarded. In Air Malta, HR manager of
the firm decides compensation policy as it is based upon employee contribution over the year.
Now, the prime focus of managers is to recognise the impact of wages on labour costs and
develop the linkage between performance and pays.
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Recruitment and selection in relation to strategic human resource initiatives and provide
necessary recommendations on the same
In this competitive aura, hiring effective workforce is become one of the major goal of
every business as it helps it in gaining high cutting edge. Thus, firms are tend towards acquiring
approaches of recruitment and selection. In which, recruitment is the process of determining
largest pool of applicants by providing greatest opportunities to people who selected for fulfilling
vacant roles within organisation. With the view point of Coff and Kryscynski, (2011) before
recruiting and selecting people for new or current position, it is essential for HR managers to put
some time in collecting information towards the nature of job roles and organise an analysis for
the same. It helps in hiring suitable for the position.
Apart from this, in selection candidates are being identified through hiring procedure,
then the most suitable or befitted individual has been selected by interviewing, reference
checking and testing. The prime motive of selection is to make sure that the hired person have
capabilities to perform all roles and responsibilities which are assigned to him or her in the most
effective and fair manner. Although, the recruitment and selection strategy of Air Malta focuses
that supply meet demand requirements in order to increases effectiveness or potentials of the
company in a certain time period.
Following is defined recruitment and selection process of Air Malta: -
The mentioned firm, Air Malta is hiring employees through internal and external sources.
In UK, there is wide range of airline companies by this the HR manager of the company enlisted
staff members who are linked with different job portals. In addition, sourcing can be done by
online advertisings and further career sites. The next stage is to track applicants and assessing
their skills via reviewing resumes (Guest, 2011). Due to technological advancement, Air Malta
has acquired Applicant tracking system so as to review applicants. Employer or employment
specialist of the company have rights to use these sites and find out well skilled or qualified
employees. Due to strong brand image, name and fame there will be several future references.
Human resource management always motivate people who comes into a group. In airlines
industry, several posts are vacant, i.e. floor manager, ticket executives, ticketing executives and
ground handling manager etc. In order to fill these profiles, management should evaluate
applications of local people as they have better knowledge about customers' taste and
preferences.
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As a multinational firm, Air Malta uses online recruiting channels where it provides
information about vacant position in different areas or regions of Malta. According to Gutiérrez,
Hilborn and Defeo, (2011) the organisation also has several subsidiaries by having strategic
alliances and joint ventures in different areas. Individuals send their CV to the firm and the best
one will be selected among all other alternatives.
Therefore, the airline company is following fair and equal approach of recruitment and
selection as this will provide better opportunities to people who have applied for the vacant
position. In addition to this, the firm should also provide information or data about vacant via
online websites and social media channels. Through this, people will easily applied for the
profile; it saves their time and costs. It boom up efficiency of overall management in respect of
selecting people over the nation.
Training and development – Jiang and et. al., (2012) signifies that after selecting
employees, firm provides training and development activities to people as they can perform in
well being manner. Due to lack of proper learning, employees unable to perform any specific
task and it also has an adverse impact on recruitment process. In this relation, Air Malta has
organised three month training programme in order to improve skills of people in specific areas.
It supports them to create effective plans and strategies for future concern.
Recommendations – Following are the main suggestions which has been provided to
company so as to make improvements in its recruitment and selection process: -
 It is essential for Air Malta to promote and transferring employees at upper level on the
basis of their performance level. Promotion supports to motivate employees as they can
inspire and work with more enthusiasm. Apart from this, the firm also shifts employee
from one to another job as well as in different departments. It supports to reduce scrutiny
costs and time as they can expand the area of other activities which are linked with
recruiting staff members.
 Another way of recruiting employees can be acquired by company is Forming
employees. Actually, former employees are those individuals who have left their job and
can be hired on the basis of their past performance. As by the opinion of Leitch,
McMullan and Harrison, (2013) hiring such employees help in gaining high competitive
edge to the firm as it reduces need of induction programmes because employees are
already aware about products and services of the company.
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 Company can also hire college going students because youngsters have great potentials to
work any task in the best possible manner. This motivates students to learn new things
while studying which improves their practical knowledge as well.
Discuss approaches used by Air Malta and how this could be improved
In business organisations, there is need of personnel management because now firms are
tend to expand their firms. Hence, it increases demand of workforce at workplace and helps to
run businesses at large context. Air Malta has opened its new outlets in different regions of
Malta, thus there is required to shift old employees to such places in order to manage working
activities systematically. The business organisation wants to deliver quality services by
considering employees interest as well. It has overviewed satisfaction level of staff members as
they can perform will more potencies (Lengnick-Hall, Beck and Lengnick-Hall, 2011). In this
respect, different approaches of human resource developed can be adopted by the HR manager,
like – Strategic HR framework, integrative framework and human capital appraisal approach.
According to Mahsud, Yukl and Prussia, (2011) the strategic HR framework approach
consider business strategy, HRD practises and organisational capabilities; its main objective to
leverage practices of human resources and improve organisational capabilities that enables to
firm to attain its goals and objectives in an effective manner. In addition to this, strategic
framework also offers certain specific tools or pathways in order to determine effective HRM
practices. Apart from this, integrative approach is based on overall development human resource
system by taken into account by synergies employees of the between all practices of human
resource development.
Therefore, these approaches of HRM supports to obtain higher satisfaction level of
employees, it results firm can attain its goals and objectives in a certain time period. Air Malta
spend one third of its profits on employee development and learning activities. If firm has gained
more profits than proportionately there is also raised employee welfare programmes.
Without establishing any business, recruitment is one of the significant task that has to be
done in proper manner. But before, there should be also analysed the need of requirements; Air
Malta needs to invest in such activities and implement several training events so as to gain
fruitful benefits (Mendenhall and et. al., 2017).
Air Malta also has to train its workforce regrading effective competition of new jobs and
responsibilities. It can provide training through several methods, i.e.
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 Promotion – This kind of training approach will give career growth to employees as they
are ready to retain for long run within organisation. Promotion activities are done when
an individual is good in his or her work and capable to all tasks in an effective manner. In
this, employees salary and job duties also get elated. But such kind of decisions are quite
sensitive for the management because sometimes wrong people get promoted which is
harmful for entire business organisation. Air Malta is tend towards managing long term
relations with target and potential customers in order to sustain high cutting edge.
 Job rotation – With the viewpoint of Ployhart and Moliterno, (2011) it means an
individual is shifted with another one for a certain time period; this can be done for same
level of jobs. Organisations can get several benefits to do so, firstly people get knowledge
from several areas of the firm by working with them. It is assistive for them to keep view
about overall working styles of the organisation. It is also advantageous when an
individual is leaving then the company does not need to suffer because others also have
knowledge to do all tasks.
 Understudy – Air Malta deals in airline sector as here people can learn many thing by
watching and observing other like – how to talk with passengers and how to treat them.
Under this method, senior manager describes subordinates how to accomplish a task or
activity. The person also tells them various issues or hurdles which might be occurred
while performing certain specific tasks or activities.
 Mentoring – It is one of the most imperative method of doing or making things done in
the best possible manner. Under mentoring, there is well experienced person who provide
guidance to new joiners as they can finish working activities. There is a regular
communication between trainer and trainee; the person also defines their mistakes and
tell employees how to reduce or avoid them. It will improve practical knowledge of staff
members at the time of working.
Only training, recruitment, selection is not the task of the HR department of Air Malta
Evaluation of task perform – Not only training is important, even afterwards trainer is
required to evaluate performance level of employees so as to recognise that whether these
training programmes are beneficial for the company or not. In this manner, assessment of all
tasks helps in adding value in products and services of the company in terms of drawing more
and more customers. After providing training, management is required to give feedback to
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employees as they can make necessary changes in their working styles. Air Malta is focused on
how to satisfy customers' needs thus HR managers or training specialists are focused on
monitoring all tasks so as to reduce errors.
Scope of improvement – In order to improve individual's skills and capabilities, Air
Malta tend towards improving skills and capabilities of its workforce. In this sense, it produces
several policies and strategies which leads higher production and profitability. The firm is
focusing on these aspects, i.e. unity, pride, bravery, sense of household and passion while
improving individual's skills; it results enhancement in market image and goodwill of the firm.
Classical theories of motivation
When an organisation creates modifications in business structure and organisational
system then it will create a much impact on performance of employees. As working on new
system is not an easy task for them, so it develops negativity in their mind and they will less
motivated. It will generate high labour turnover which affects business of a company in a large
manner. So, managers of Air Malta needs to motivate and encourage them in a proper way.
There are various theories available for identifying the ways through which workers can be
motivated. Some theories of motivation are explained below:- Theory X and Theory Y: This theory was propounded by Douglas McGregor, who give
two theories of motivation i.e. one part relates to assign work as per skills of workers and
second one entails to provide healthy working environment to them. So, using these
theories of X and Y, managers can give higher satisfaction to employees and motivates
them to work well. Hierarchy of Needs: It entails with five levels of motivation by classifying behaviour of
employees as per their need. It was given by Maslow who gives physiological needs of
people like food, shelter, clothes and others part of livelihood. So, it is responsibility of
employers to provide good salary to employees so that basic needs of them can be
fulfilled in a proper manner. Equity Theory: This theory was given by John Stacey, according to him employees are
treated to be equal in workplace. Companies should not mistreated them as per different
characteristics. So, getting equal treatment motivate employees to work hard in proper
way.
Proposing Hybrid Theory for Air Malta: -
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Since there are various theories of motivation are available which can applied into
workplace for motivating employees. So, using one among them is difficult task for managers.
Therefore, Hybrid theory gives beneficial for them to overcome from this problem. This theory
used to combines all above theories in a single form through which employers can motivate its
employees in better way. In context with Air Malta, this firm wants to give its services in unique
way through which customers get high satisfaction. So, to accomplish this objective it provides
various benefits to employees and motivate them to give good customer services. This will help
in gaining attention of loyal customers too and retain them for longer period of time.
Traits and characteristics of effective leaders
According to Wright and McMahan, (2011) leaders are known as the individuals who
play a big role in success and growth of entity as these direct and encourage staff members so
they can perform their roles and responsibilities in an effective manner. There are some specific
characteristics which should be there in an individual for perform the role of leader in an
effective manner: Personable: It is very essential for an individual to have quality to talk with team
members in effective manner. All this help in communicate better with all team members
and at the same time help in listen the problems of workers they face at workplace. When
leader better understand team members then it encourage them to work well at
workplace. Visionary: For become a successful leader, it is very essential for a leader to know the
ways through which entity can achieve its set goals and objectives. All this help in utilise
all business resources and funds in an effective manner (Varma, 2013). Motivational: Leader is mainly known to encourage team workers to perform their job
roles and responsibilities in effective manner. With use of right tools and method, leader
can enhance the contribution of employees in success of entity. For motivate employees
to work well various financial and non financial tools are there which can be use by
leader of Air Malta.
 Become an effective leader: various individuals are there who have special qualities to
become a successful leader but are unaware about how to use those skills and knowledge.
Experience and past mistakes help an individual to learn how to apply skills so given task
can be completed in effective manner.
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Model of Leadership: Leading self: With the view point of Coff and Kryscynski, (2011) there are different
factors which lies within the leader. For example communication and leadership skills.
To become effective leader many areas and points are to be improved so that they can
perform better. Leading others: Leaders can guide and supervise others so that all employees can be
motivated. They use legal and fair style of leadership so that they can perform better and
all workers can give good results. For example giving training to staff members .
Through this they can easily accomplish their objectives. Leading with convection: In this leader have to improve the performance. Thus as a
result they have to take suggestions from employees and make changes in their styles as
per changes in environment and through taking advices from workers. Through this they
can easily survi8ve in the market.
 Leading your organization: In this leader can lead the firm by creating a vision and
mission for the firm. So hence they can guide and motivate all employees so that they can
give good results. Thus they can easily earn more revenues . Through this they can easily
beat the competitors and can maintain good reputation in minds of all people and in
market.
CONCLUSION
From the above mentioned report, it get concluded that managing human resources is one
of the most important task for every business entity as it helps to improve productivity and
performance level of the company in the best possible manner. Along with this, firms are
required to attain and retain employees for long term period by providing them higher rewards
and appreciations. The report has stated different models of HRM, such as – strategic
management, safety and risk management, organisational outcomes etc. Beside this, recruitment
and selection, training and development, compensations and benefits. There are several theories
of motivation can be acquired by business organisations, such as – Maslow's hierarchical need
theory, theory x and y etc. It is fundamental for leaders to be visionary and goal oriented so as to
achieve company's goals and objectives.
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