Human Resource Management Analysis and Recommendations for Air Malta

This report provides a comprehensive analysis of Air Malta's human resource management (HRM) practices. It begins with an overview of the HRM approaches employed by Air Malta, identifying both strategic and reactive elements, and explores the company's employee-oriented approach. The report then applies the Harvard HRM model to assess Air Malta's practices, highlighting the importance of aligning HRM strategies with business objectives and considering all stakeholder interests. A detailed analysis of Air Malta's recruitment and selection processes follows, examining the use of employer branding, internal recruitment, and job boards, while also pointing out limitations such as a restricted talent pool. The report then delves into Air Malta's approach to human resource development, and proposes a hybrid theory of motivation. Finally, it identifies key characteristics of effective leaders to enhance Air Malta's long-term viability, concluding with recommendations for improvement, such as outsourcing the entire training process. The report emphasizes the need for cost-effectiveness, strategic alignment, and a broader approach to recruitment to enhance the airline's competitiveness and profitability.

Running head: HUMAN RESOURCE MANAGEMENT
Human resource management
Name of the student
Name of the university
Author note

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Abstract
The report discussed about the approaches being followed by Air Malta towards the human
resource management. It is identified that they are following limited approach to the recruitment
and selection, which is further restricting the potential talent pool. In addition, this report also
discussed about the training and human resource development process of Air Malta and a few
limitations are identified. On the basis of these identified limitations, certain recommended steps
are suggested such as outsourcing of the entire training process. A hybrid theory of motivation is
also discussed and recommended in this report along with the characteristics of an effective
leader that can help Air Malta in the enhancing their long term business viability.

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Table of Contents
Introduction......................................................................................................................................3
Determination of HRM approaches.................................................................................................4
Harvard model.............................................................................................................................5
Analysis of the recruitment and selection of Air Malta...................................................................7
Approach of human resource development...................................................................................10
Recommended motivational strategy............................................................................................12
Characteristics of effective leaders................................................................................................14
Conclusion.....................................................................................................................................16
Reference.......................................................................................................................................17

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Introduction
Effectiveness of the human resource management is important in gaining competitive
advantages for the contemporary business organizations. This is due to the reason that
effectiveness of the employee management will determine the extent to which the internal
performance and productivity is meeting the desired outcome. However, on the other hand, it
should also be noted that employee management process should be restructured with time and
according to the change in the external situations. This will ensure the maximum utility of the
employee management strategy in coping up with the changes in the external factors. Different
companies are having different sets of human resource management strategies based on their
existing situations.
Air Malta is the leading and flag carrier of Malta and operating from the Malta
International Airport. Currently they are providing services to Europe, Middle Eastern regions
and North Africa. However, compared to other leading flag carriers in the world, Air Malta is
having small scale business operations with having the fleet size of 10 aircrafts. This is in
accordance to their limited operations (airmalta.com 2019). However, the major challenge for
them is managing the profits and for the first time, they have made profits in 2018 since their
inception. In this case, their internal process and practices should be restructured to reduce the
cost of operation and increase the effectiveness.
This report will discuss about the current human resource management processes of Air
Malta and how they can be improved. In addition, their approach of employee management will
also be analyzed on the basis of different models and theories. The recruitment and selection
process of Air Malta will also be analyzed and recommendations will be made. Based on the

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theories of motivation, the best and most effective solutions will be recommended for Air Malta
along with the characteristics of effective leaders that can also add value to their business.
Determination of HRM approaches
It is identified that Air Malta is following different approaches in managing their human
resources including strategic approach and reactive approach. According to the strategic
approach, employees are being considered as the competitive advantage and thus development
programs for them are being majorly focused. It is an effective approach for Air Malta due to
their small scale business and limited opportunities. With the help of the strategic approach of
the human resource management, development programs for the employees of Air Malta are
extensively being initiated and followed (airmalta.com 2019). It is evident in their branding
because Air Malta is known for their quality customer service and is the one of the few airliners
in the world with having minimal rate of missing luggage. This is denoting that the employee
skills are being given the maximum value by the management of Air Malta.
On the other hand, it is also identified that Air Malta is following reactive approach. This
is due to the reason that there are number of instances where it is identified that managers at Air
Malta are responding after the occurrence of the incidents. Even though Air Malta is ensuring
that issue once occurred will not get repeated, but this is not effective in the current business
scenario. This is due to the reason that the current business scenario is much competitive in
nature and any companies cannot afford to lose time and money in reacting after the occurrence
of the incident. Based on the identification of the human resource management approaches being
followed by Air Malta, it can be concluded that employee orientation is evident in their human
resource management (airmalta.com 2019). According to the concept of employee orientation

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approach, the needs and preferences of the employees are being given the maximum
considerations over the output. According to Melton and Hartline (2013), initiation of the
employee orientation approach is having both positive and negative impacts for the workplace.
The major advantage that is being gained from the employee orientation is the maximum utility
from the side of the employees. This is well evident in the service process of Air Malta in terms
of their customer service quality. However, on the other hand, initiation of the employee
orientation approaches can also cause incurrence of added cost in the operation, which might
affect the profit margin. In the case of Air Malta, they are the flag carrier of the country from
their initial stage and operating since 1973 but not being to earn profits till 2018. This shows that
even though their service quality is of desired level but still it is not fetching desired profitability.
Air Malta is investing huge in the developing their employees and enhancing the service quality
but that is not reflecting in the increase in business.
Harvard model
Harvard model of human resource management states that interests of all the involved
stakeholders should be considered in initiating the human resource management strategy. The
policies in relation to the human resource management should be in line with the current external
factors. In the case of Air Malta, interests of all the employees are not being considered.

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Figure: 1
Harvard model of HRM
Source: Created by the author
According to the above figure, there are different groups of stakeholders should be
considered in designing the human resource management policies. These include both the
internal and external stakeholder groups. However, in the case of Air Malta, interests of the
shareholders are not considered. This is due to the fact that initiation of the employee oriented
strategy cause loses for the shareholders including the Maltese government. Air Malta incurred
loss from the inception till 2018 and thus the shareholders of them are bearing the loss.
According to the Harvard model, this situation cannot have effective human resource
management policies. This is also evident in the case of Air Malta due to the reason that among

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all the desired HRM outcomes, cost effectiveness is not being gained by them. In the current
aviation sector, each of the airliners is focusing more on the cost effectiveness to increase their
profit margin. However, in the case of Air Malta, lack of cost of effectiveness and higher
investment in employee management without concerning about the business outcome is posing
challenges for them to gain profits. According to Katou, Budhwar and Patel (2014),
implementation of the employee oriented approach over lack of consideration for the business
outcome or the alignment between the two can cause long term negative impact for Air Malta.
This includes the organizational effectiveness. This should be noted the focusing only on the
employee effectiveness and development in the customer service will not meet the business
objectives considering the limited operation of Air Malta. They should gain competitiveness in
terms of cost effectiveness to gain the long term business viability.
According to Alfes et al. (2013), alignment between the business strategy and human
resource strategies is important for gaining the long term competitiveness. This is due to the
reason that the core objective of the human resource management is to meet the business
objectives in most effective manner. However, in the case of Air Malta, lack of alignment
between these elements is well evident. The human resource management being initiated by
them is without aligning them with the achievement of the business objectives. Hence, even
though Air Malta is achieving effective service standards from the employees, it is not getting
reflected in their business revenue.
Analysis of the recruitment and selection of Air Malta
It is identified that Air Malta is following employee branding, internal recruitment
process and own job boards as their key recruitment strategies and multistage selection strategy

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as part of the selection of the new employees. On the basis of the positive word of mouth and
market branding, Air Malta is leveraging in their brand name for attracting new employees. This
is due to the reason that in the current scenario, new candidates are getting more attracted
towards the ethical companies and Air Malta is leveraging on this trend. According to Leekha
Chhabra and Sharma (2014), leveraging on the employer branding is helping Air Malta in getting
the candidates who are already aware about the business processes. The candidates who are
getting attracted on the basis of the employer branding of Air Malta, are already having the basic
understanding about how the job is done there. Hence, it is beneficial for the managers of Air
Malta in selecting the potential candidates. Furthermore, internal recruitment process by means
of references from the existing employees is also being followed by Air Malta. This strategy is
also helping them in getting the potential employees who are already aware about the process
and practices of the organization. In the case of internal recruitment process, the existing
employees refer the most eligible one and the first round of screening gets done by this.
According to Ommeren and Russo (2014), the major advantage of internal recruitment
process is the less cost involved. There are no extra cost involved in searching for the potential
candidates and no need of job advertisements. Hence, cost effectiveness can be gained by
implementing this strategy. On the other hand, it is stated by Shammot (2014) that with the help
of the internal recruitment process, retention rate of the staffs gets increased. This is due to the
reason that involvement of the existing employees in the recruitment process will increase the
sense of importance among them. Thus, the employee engagement process will also get effective
with this. Air Malta is also having separate and dedicated section for career in their official
website. Potential candidates can apply to the suitable job profiles advertised in this section.

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Hence, it can be concluded that there are number of recruitment strategies or tools being used by
Air Malta.
However, apart from the advantages, there are number of shortcomings also being
identified from the existing recruitment strategies of Air Malta. One of the major limitations is
the lack of access to larger talent pools. According to Sharma (2014), in the recent time, majority
of the business entities are opting for online mediums for searching for potential candidates.
Online mediums such as social media and job portals are having millions of access of potential
candidates, which can be tapped. However, Air Malta is not opting for the online mediums as of
now and instead is following the traditional approaches. This is causing reduction in the potential
talent pool and more options for Air Malta to choose from. Employer branding strategy of them
will also not be effective enough due to the fact that compared to some of their competitors; Air
Malta is having low market presence and brand identity. Hence, low number of candidates is
being received by them.
It should also be noted that internal recruitment process is also a limited approach due to
the reason that depending only on the internal stakeholders for reference is attracting a few new
candidates. In addition, internal recruitment process is also not effective enough in attracting the
most effective and eligible talents. This is due to the reason that there are number of determining
factors playing role in encouraging the existing employees in referring a particular candidate. In
terms of the selection strategy, it is identified that they are following multistage selection
strategy, that denotes that different stages and steps are followed in the selecting the employees.
As per the gathered reports, Air Malta is having interview process, skills test and personality
tests for selecting the new candidates (airmalta.com 2019). One of the major advantages that are
being gained by them from this strategy is the determination of the multiple skills of the new

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candidates. In order to stay competitive in the current business scenario, the employees of Air
Malta are expected to have expertise in multiple skills and deal with the different and diverse
challenges. In this case, the multistage selection process is the most effective choice. Different
skill sets of the candidates are getting identified with the help of this strategy.
In terms of the selection, it is recommended that outsourcing process should be initiated
along with their existing one. This is due to the reason that with the help of the outsourcing
strategy, expertise and specialization of the external recruiting partners can be gained. In
addition, the involved responsibilities in selecting the new employees will also get lower along
with the involved cost. Thus, it will be a major cost effective choice for Air Malta in reducing the
cost of operation. The objective from the recommended recruitment and selection strategy of Air
Malta is to gain the larger talent pool and more options to choose from. In addition, gaining cost
effectiveness is another major objective.
Approach of human resource development
Initiating the human resource development process is important due to the reason that it
will ensure the long term productivity of the organization. Moreover, effective process of human
resource development will determine the extent to which the employees are engaged in the
workplace. Being an employee orientated organization; Air Malta is having number of diverse
development strategies in their operation. One of the major human resource development
approaches of them is training programs. Air Malta is having different training and development
programs for different employee levels. For instance, the upper level managers are getting
leadership training and lower level employees are getting skill development training. This is
helping Air Malta to have the employees with proper skill sets and expertise in place. According

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to Elnaga and Imran (2013), initiation of training program and activities will have majorly
positive impacts on the employee performance. This is due to the reason that training activities
will equip both the existing and new employees in dealing with the newer challenges and trends
(airmalta.com 2019). This should be noted that current aviation sector is the witnessing huge
changes and trend and market patterns are important for the employees to cope up with these
changes. This effectiveness can be gained with the help of the training activities. However, on
the other hand, it is identified that Air Malta is having the singular approach of employee
training process, which might not be effective in every case. This is due to the reason that
approach of the training process should be different in accordance to the changes in the external
factors.
It is stated by Anitha (2014) that approach and process of training should be aligned with
that of the company objectives in order to have the maximum utilization of the employee skills.
It is also being stated that if the approach of the training is not aligned with that of the
organizational objectives, then the employee engagement and development will not get increased
for Air Malta. It is also identified that human resource development process of Air Malta also
involves the evaluation program in terms of employee appraisal. The employee appraisal
program in Air Malta is being done through past performance evaluation. On the basis of this
process, the performance of the employees is being evaluated on the basis of their past one year
performance and appraised accordingly. According to Farndale and Kelliher (2013), effective
implementation of the performance appraisal of the employees can also act as the motivating
factor due to the reason that if their performances get valued properly, the probability of getting
more engaged will gets increased.

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However, there are few recommendations that can help Air Malta in improving their
human resource development process. It is suggested that flexible training process should be
initiated in order to change the approach according to the change in the business requirements.
The flexible training process can also be outsourced as well to the specialized partners. This will
help in cost saving and specialized services in terms of providing training to the employees. On
the other hand, it is also recommended that 360 degree feedback management system should be
initiated by Air Malta. This is due to the reason that 360 degree feedback will help the managers
in gathering the data from across the stakeholder group. Hence, the feedbacks will be more
holistic and complete and thus the appraisal system will also get more effective. According to
Martinez et al. (2013), 360 degree appraisal system will be effective only when the data being
gathered is true and reliable. There are number of factors that determine the quality of feedback
being given by the respondents. Hence, the risks associated with the 360 degree appraisal system
will be more.
Recommended motivational strategy
According to the classical approach, there are three major motivation theories being used
in the organizational management. One of the major theories is the Maslow’s hierarchy of needs.
According to this theory, there are few needs of the employees that should be fulfilled by the
managers or leaders in order to motivate them. According to Lester (2013), the most basic need
of the employees is the safety need, which refers to the basic needs of food, shelter and clothing.
These are the core needs for which the employees are working in the organization. Thus,
according to the author, offering the proper remuneration to the employees will meet their safety
needs. However, in this case, it is stated by Taormina and Gao (2013), measuring the needs of
the employees is not easy as shown the Maslow’s theory of needs. This is due to the reason that

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different employees will have different sets of needs and it will vary from one another. Thus, the
managers will face the difficulty in meeting the diverse needs of the employees. Hence,
according to authors, Maslow’s need theory is not effective enough in motivating the employees.
Furthermore, herzberg’s two factors theory is another classical theory of motivation.
According to this theory, motivators and hygiene factors should be maintained by the managers.
Alshmemri, Shahwan and Maude (2017) stated that motivators are the factors that help the
managers in increasing the satisfaction level of the employees but absence of it will not cause
dissatisfaction. Thus, the added values and elements such as rewards, recognition and
challenging working environment are considered as the motivators. On the other hand, hygiene
factors are the basic needs such as working environment and effective management roles.
However, in this case, Yusoff, Kian and Idris (2013) stated that different employees are having
different expectations in motivating themselves. Hence, the elements stated in the two factors
theory might not well aligned and effective in different business situations. Thus, it can be
concluded that Herzberg’s two factors theory is having both advantages and disadvantages from
the perspectives of implementing it in the real world situations.
According to theory X and Y of McGregor, there are majorly two types of employee
groups. The employee group of X is the employees who are having negative attitudes towards
work and opposite in the case of the employee group of theory Y. This theory also states that it is
important for the leaders to initiate their leadership style according to the group of employees.
Participative leadership style will be effective for the theory Y and autocratic leadership style
will be effective for the theory X. However, in the case of Air Malta, all these three theories will
not be effective enough if they are implemented as same rather they will require a hybrid theory
according to their business situations. It is recommended that situational style leadership should

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be initiated by Air Malta due to the reason that current aviation sector is turbulent in nature and
external factors are changing rapidly. In this case, initiation of the situational style of leadership
will help to have higher level of flexibility. The leadership style can be changed according to the
change in the business situation. The more will be the flexibility in the leadership roles, the more
will be the internal effectiveness of Air Malta in dealing with the challenging situations.
According to McCleskey (2014), initiation of the situational style of leadership will help to
manage the employees according to the organizational situations and thus the employees will be
more motivated. For instance, employees will expect direction at the time of challenging
situations.
The flexibility of the leadership should also be based on the types of employee group.
This is due to the reason that based on the employees from theory X should have different
leadership styles and the theory Y. Moreover, the leaders should also be more focused on
providing the motivator factors in order to increase the level of satisfaction among the
employees. Motivators should be more focused over the hygiene factors because basic factors
should be fulfilled without even having the effective leadership process. Thus, it can be
concluded that implementation of the motivators will ensure the better engagement rate of the
employees.
Characteristics of effective leaders
Effective leaders should be inspiring for others and their subordinates due to the reason
that others should get influenced by him. According to the theory of transformational leadership,
leaders should be effective enough in motivating the employees by means of positive inspiration.
Moreover, the transformational leaders should also be influential enough in controlling the entire

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business process. Thus, one of the major characteristics of an effective leader is the capability of
influencing. According to Braun et al. (2013), leaders in Air Malta should have the
transformational qualities and they should be able to guide the employees through the
organizational challenges. In addition, an effective leader should also lead by example, which is
also applicable for Air Malta. Influencing style of the leaders will be more effective for Air
Malta due to their limited operation in the market. The more will be the influencing nature of the
leaders, the more will be their control over the entire business process. Another major
characteristic of an effective leader is accurate forecasting. According to Breevaart et al. (2014),
forecasting ability should be there with the leaders due to the reason that based on their
forecasting ability, long term business planning can be designed. In the case of Air Malta,
effective forecasting ability of leaders will help them to design the planning process accordingly
including identification of the issues and challenges.
Another feature of an effective leader is empowering others. This refers to the fact that it
is the responsibility of the leaders to empower their subordinates. According to the theory of
participative leadership, the leadership roles should create larger participation of the employees
in the organizational affairs and in the decision making process. This will help in creation of
better consensus in the workplace. According to Lam, Huang and Chan (2015), empowering the
employees will have multiple advantages with one being the better productivity in the workplace.
This is due to the reason that the more will be the empowerment of the employees, the more will
be the sense of importance in the workplace along with high level of the engagement. Effective
team leader should also be an effective team manager. This is due to the fact that in the current
business organizations including Air Malta, team based working process is followed. In this case,
it is important for the leaders to have the skills of managing the different team members in the

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team and create consensus among them. This is also an example of participative style of
leadership where the participation of each of the team members is important for the
organizational effectiveness.
Conclusion
This can be concluded that Air Malta is having extensive approach of the human resource
management and development and they are also gaining advantages from these. However,
irrespective of the advantages they are gaining, there are number of limitations also being
identified in this report. In addition, the recruitment and selection process being followed by Air
Malta is also critically analyzed and it is identified that their existing process is having limited
exposure in the market. A few recommended strategies are identified that includes outsourcing of
the recruitment process. Cost effectiveness is the key objective identified for gaining competitive
advantages by Air Malta. As per the different classical theories of motivation, a hybrid approach
is recommended and is expected that this will increase the competitiveness for Air Malta in the
long term. It is recommended that situational style of leadership will be the most effective and
suitable for them.

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