Human Resource Management in the Airline Industry: A Case Study

This report offers a comprehensive analysis of human resource management (HRM) within the airline industry, using International Airlines Group as a case study. It explores the crucial role and purpose of HRM, encompassing recruitment, selection, compensation, training, employee relations, and performance management. The report details the creation of an HR plan for British Airways, addressing business objectives, demand and supply forecasting, manpower gap estimation, action plan formulation, and monitoring. It also examines employee relations, the influence of employee laws, and includes an evaluation of job descriptions and person specifications for a specific role at British Airways, along with a comparison of selection processes between British Airways and Transport for London. Furthermore, the report assesses the contribution of training and development in enhancing the operational efficiency of International Airlines Group, culminating in a discussion of the current state of employee relations and the impacts of employment laws within the sector.

Human Resource
Management for Airlines
Industry
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Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Role and purpose of human resource management in Airline industry.................................3
1.2 Preparation of human resource plan based on analysis of supply and demand.....................5
2.1 Current state of employee relations in Airline industry.........................................................7
TASK 2............................................................................................................................................7
2.2 Influence of employee laws on human resource management in Airline industry................9
TASK 3..........................................................................................................................................10
3.1 Evaluation of job description and person specification for a particular staff role in British
Airways......................................................................................................................................10
3.2 Comparison between the processes of selection used by British Airways and Transport for
London.......................................................................................................................................12
TASK 4..........................................................................................................................................14
4.1 Contribution of training and development in improving the operational efficiency of
International Airlines Group......................................................................................................15
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................19
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INTRODUCTION
Human resource management can be defined as the approach of the management of any
organisation which aims at effective monitoring and controlling of the most important resource
of the organisation i.e. human resources. Human resource management aims to increase the
efficiency and productivity of the employees to help the organisation gain a competitive edge in
the market and achieve its targets and objectives (Aswathappa, 2013). In this project report, an
attempt has been made to understand the importance and relevance of human resource
management in service industry by the help of a case study of International Airlines Group.
International Airline Group is the parent company British Airways, Aer Lingus, Iberia, LEVEL
and Veuling. It is regarded as one of the largest group of airlines in the world with a total of
more than 550 aircrafts carrying more than 110 million people each to 268 different destinations.
The following reports aims to evaluate the role and purpose of human resource management in
the airline industry and aims to prepare a human resource plan for British Airways based on
demand and supply analysis. An attempt has been made to understand the impact of current
employee relations and employee laws in the management of human resource in the industry. In
the report, a comparison between the selection processes of different organisation in the service
industry is being done. At last, the report aims to evaluate the impact and importance of different
training and development programme in the improvement of overall operational efficiency of
International Airlines Group.
TASK 1
1.1 Role and purpose of human resource management in Airline industry
Human resource management is an important function of the managers of every
organisation in any industry. In the context of airline industry, human resource management is of
vital importance and relevance (Bratton and Gold, 2017). The practices of human resource
management helps in increasing the productivity and efficiency of staff which helps in
improving operational efficiency as well. International Airlines Group is the third largest group
of airlines in Europe and sixth largest group in the world. The company had more than 64,000
employees in the year 2019 which is a huge workforce. Thus, the importance and scope of
human resource management significantly increases in the organisational context of International
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Airlines Group. Some of the key role and functions of the human resource managers of
International Airlines Group are being discussed below:
Recruitment & Selection:
Recruitment and selection of the workforce according to the needs and requirements of
the company is the main function of the human resource managers of International Airlines
Group. The managers are responsible for bringing on board a team of highly qualified and skilled
employees who are best suited for carrying out the operational activities of the company. Hiring
the right set of individuals with right mix of skills and set helps in achievement of the
organisational goals and objectives with the help of increase employee productivity due to
matching skillset (Hampson, Junor and Gregson, 2012). Hiring the right set of people is also very
important for the human resource managers of International Airlines Group because a huge cost
is incurred in the process and the company is under no position to accommodate frequent
recruitment and hiring costs.
Compensation:
It is the role of the human resource managers of the International Airlines Group to
design a compensation and payment model which helps in ensuring employee motivation and
boosting the morale of employees so that the operational productivity can be improved. It is
considered that the staff and members, particularly in airline industry, are the face of any
organisation and this makes it imperative for the company to ensure that the employees are
motivated enough to perform to the level of their best capabilities.
Training & Development:
Training and development specialists of the human resource department of the
International Airlines Group are responsible for framing a programme for new employee
orientation and skill development which helps them to better understand the work situation and
environment. The effectiveness of the programme is the responsibility of the human resource
managers and during the implementation of these programmes, attempt is made by the
management to make employees familiar with the organisational culture as well to remove the
possibility of any cultural shocks.
Employee relations:
Employee relations refer to the relations that exists informally within an organisation and
influences the employee motivation and productivity. The human resource managers of the
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company makes effort to provide spaces in the organisation which helps in fostering of a positive
relationship between the employer and the employee. In service industry like Airline industry,
there is a direct influence of the employee-employer relationship on the quality of service which
is being rendered to the customers (Harvey, Williams and Probert, 2013). In the context of
International Airline Group, it is the most important role of human resource department to
inculcate these relationships in the organisation with an objective of achieving employee support
and engagement.
Performance Management:
Performance management, as the role of human resource managers of any organisation,
implies the monitoring, emulation and comparison of actual performance of any employee with
the standard performance. Human resource managers adopts practices and policies which helps
the company to monitor the employee performance with an objective of early identification of
weak areas and scope of improvement. The human resource managers of International Airline
Group helps the company to effectively manage the performance of its members and also takes
measures which increases the motivation of employee with an aim of improving the productivity
and efficiency.
1.2 Preparation of human resource plan based on analysis of supply and demand
Human resource planning can be defined as the process of evaluating the present and
future human resource needs of an organisation with an aim or objective of achieving
organisational goals. It is a continuous process and serves as a linkage between strategic
planning of an organisation and its human resource management (Ekwoaba, Ikeije and Ufoma,
2015). Creation of an human resource plan is a systematic process which involves five main
steps or stages. The following section consists of creation of an HR plan for British Airways for
catering to the business opportunity:
Step 1: Analysing objective
The first step in the process of creation of an HR plan is to analyse the business objective
or organisational requirement for additional human resource which may have raised due to a
business opportunity. The management of British Airways has successfully gained agreement for
a new flight route from Madeira to Heathrow. The duration of the flight is four hours and each
week seven flights from Heathrow and seven returning flights from Madeira will operate during
the peak season and four flights from Heathrow and four returning flights from Madeira will
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operate for the rest of the year. For the successful execution of this business growth plan,
managers of British Airways need to recruit the workforce required for carrying out the
operations.
Step 2: Forecasting Demand & Supply
Forecasting demand and supply refers to the estimation of additional manpower
requirement in terms of definite staff roles and numbers and forecasting supply refers to the
process of estimating the existing human resources of the organisation (Noe and Kodwani,
2018). Following requirements in terms of additional staff members and their definite roles have
been identified by the human resource management of British Airways for delivering the new
flight service from Heathrow to Madeira.
Cabin crew: Cabin crew members have the responsibility of ensuring the comfort and
safety of the passengers during the flight and providing an excellent customer service. Generally,
every flight includes 4-5 cabin crew members depending on the passenger capacity of the
aircraft. For delivering the new flight service to Madeira, 8 cabin crew members need to be
recruited and the working hours would be 45 hours per week.
Pilots: Every commercial plane has at least 2 pilots on board and for the purpose of
ensuring smooth delivery of the proposed new flight service, the management of British Airways
has estimated the requirement of 4 additional pilots with around 26 hours flying time per week
and additional 20-25 hours of time per week required to assess the weather conditions and
making necessary arrangements before flight takes off.
Ground staff and manager: A team of 4-5 people for ground staff and a ground staff
manager for delivering the new flight service is required by British Airways at the airport for
ensuring the safety of passengers, checking the baggage, cleaning the aircraft between flights,
providing refreshment in the plane, assisting the passengers in getting boarding pass and tickets
etcetera. Hours of work required would be 50 hours per week.
Step 3: Estimating manpower gaps
After an analysis and estimation of the additional manpower requirement and current
supply of human resources, the management of the British Airways has to estimate the gap
analysis by matching the demand and supply of manpower which results into determination of
recruitments which need to be made.
Step 4: Formulation of action plan
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This step involves evaluation of various source available and formulating an action plan
for meeting the human resource requirement of the organisation. British Airways usually
mentions the vacancies on the career section of the company website wherein interested
candidates can apply for their candidature and management of the company can choose among
the pool of candidates.
Step 5: Monitoring and Feedback
An evaluation and monitoring of the execution of the human resource plan helps the
management of British Airways to make an assessment regarding its effectiveness in meeting
organisational objectives. It provides the tool for managers to make any changes in the plan
which could increase the overall effectiveness of the recruitment and selection process.
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TASK 2
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Understanding the effect of employee relations and employment laws on Airline Industry
Employee relations and various employment laws have a great influence on the
management of human resources in any organisation or industry. The nature of employee
relations shape the decision-making process of the management (. The effect of employee
relations and employment laws on Airline industry can be understood in an effective manner
with the help of a brief discussion of two major subsets of the topic which are employee relations
and employment laws.
2.1 Current state of employee relations in Airline industry
Defining employee relations is not a simple process but it can be understood as a process
which involves development of a positive relationship between the employer and the employee
which helps in smooth operations of the business. Collective effort is essential for maintaining
healthy employee relations. In today’s era which is marked by globalisation and
internationalisation of activities, businesses and trade, Airline industry is arguably one of the
largest industry which provides employment to a large number of employees as well. The need
and importance of having positive employee relations can’t be overlooked by the management of
organisations in this industry. Employee service and behaviour is the face of any airline company
which plays a major role in determining the customer satisfaction and quality of service being
rendered. Having positive employee relations leads to a motivation of the workforce which has a
direct impact on the employees’ attitudes towards the customer and passengers in any plane.
Thousands of employees are recruited by British Airways all over the world and is one of the
largest company in the industry (Dožić and Kalić, 2014). The graph for employee relations
for any airline company is a combination of small curves and ups and downs. In particular,
the current state of employee relations for British Airways can be termed as anything but
positive. Disagreements between the management of the company and the employees and
constant strikes by workforce has pushed the company into the position that it is in right
now. The management of the company has decided to cut the jobs for cabin crew members
with an objective of coping up with the current global crisis and changes has been made in
the staff contracts which has led to a huge disappointed cabin crew staff. Company has faced
a high rate of employee turnover due to the ongoing war between the management and the
employees. The management of the company has decided to reduce the wages for the cabin
crew members serving on long-duration flights based on the argument that the current level
of wages is extremely high for long-duration flights in this period of global economic crisis.
The relation of the company with the pilots is not any better due to the policies of the
management which has forced any pilot to pay the cost for training and development
required to shift to a high-capacity aircraft (Guttag and Horning, 2012). All these factors
contributing to negative work environment and unhealthy employee relations has had a
major impact on the employee performance and productivity levels. Many customers and
passengers have reported an aggressive behaviour of the cabin crew members during the
flight. It is hard for an employee to be nice and polite after working for such long shifts if the
company where he works doesn’t make him feel valued. The image and the reputation of the
company has also been affected negatively as a repercussion of all the internal employee
issues going on. The management of the company has taken some steps to come to an
agreement with the demands of the employees and prevent any further damage. Though, any
successful negotiation between the management and the employees is yet to be achieved but
the company is optimistic in resolving all the issues related to employee relations.

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2.2 Influence of employee laws on human resource management in Airline industry
Employment law can be defined as the rules and regulations which are issued by the
government of any country which helps in governing employee-employer relationship and the
working conditions and terms for the employee. Various employment laws are established by the
monitoring authorities for protection of interests of the employees and to ensure that no
employee is facing exploitation of any kind at the workplace. International Airlines Group, one
of the biggest group of airline companies, employees more than 65,000 people and it makes it
mandatory for the management to comply with the provisions under law for deciding
employment terms and practices (Rohr, S.L., 2016). Management of human resource of the
company is largely influenced by the laws and regulations aimed at proper workforce
management. A few of the employment laws which are being considered by the management of
International Airlines Group are as follows:
Equality Act, 2010: Equality Act, 2010 aims to protect the employees against any kind of
discrimination based on religion, culture, sex, gender, background or any other personal aspect at
their workplace. It is the moral as well as statuary duty of the managers of International Airlines
Group to ensure equal treatment of the employees and provide equal opportunities of personal
growth to every employee without any bias. Any such act which aims to differentiate an
employee on the above basis shall be legally prosecuted.
Health and safety regulation: As per the provisions of Civil Aviation Working Time
Regulations Act 2004, it is the duty and responsibility of the management of International
Airlines Group to ensure that every crew member who has been employed by the company is
being provided with adequate protection and prevention facilities or services related to health
and safety of the member during the whole course of the employment period. Various other laws
such as health and safety at work govern and monitor the safety of other employees of the
airlines company such as ground workers or customer service providers. Thus, it is important for
the managers of International Airlines Group to ensure that health and safety of the employees is
the primary concern of the organisation as an aspect of human resource management.

TASK 3
3.1 Evaluation of job description and person specification for a particular staff role in British
Airways.
Job description is a document which provides vital information about the key tasks, roles
and responsibilities which is related to any particular position or job. Person specification refers
to the skills, qualifications, personal attributes and qualities which are required in an individual
for effectively carrying out or executing the task assigned to him (Epstein, 2012). Job description
and person specification has a very important role to play in increasing the effectiveness of
recruitment and selection process.
Job description and person specification for the position of Airport Operations Manager at
British Airways are being discussed below:
Job Title: Airport Operations Manager
Job Location: London, United Kingdom
Reporting: To the Head of Customer Airside Operations
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Working time regulation: The provision of Civil Aviation Working Time Regulations Act, 2004
also states that restrictions in working time should be made by the management of any airline
company. It requires the managers of International Airlines group to cover important issues such
as designing pattern of work for employees which ensures adequate breaks for rest, properly
conveying the information related to working patterns to the employees, fixation of maximum
working time annually and the total number of flying time and also a provision of rest days
(Mader-Clark, 2013). The management of human resource in the organisation is effectively
guided with the help of the provisions described under the act ensuring healthy working
conditions and employment terms.
On the basis of above mentioned points and discussion, it can be concluded that
employee relations and employment laws significantly affect the management of human resource
for airline industry as well as any other industry as a matter of fact (Jehanzeb and Bashir, 2013).
Development of healthy employee relations and compliance with employment laws can help the
managers to undertake effective human resource management and improve the productivity of
the employees as well as the organisation and offer better quality of service to the customers.

Job summary: Airport operations manager is the person who is responsible for supervising and
monitoring the coordination between various operations at the airport and making sure that the
operations are running smoothly. It is the duty of the operations manager to ensure safety and
security of the passengers and enforcing rules and regulations at the airport. Communication with
various stakeholders and ensuring safe and smooth transportation of customers from Terminal 5
is the key responsibility of Airport Operations Manager for British Airways at Heathrow.
Personal Specification:
Education: MBA in Operations
Language: Fluency in English is proffered
Experience: 0-2 years
Characteristics:
 Strong leadership skills
 Flexibility and agility
 Customer-focused
 Ability to show resilience and handle pressure
 Ability to motivate members for enhancing quality of service
 Collaborative and coordinative skills
 Good people management skills
 Operational excellence
 Solution-oriented and crisis management skills
Roles and Responsibilities:
 Ensuring the safety and security of the operations at the airport and delivering a high-
quality experience to the customer
 Team bonding and development to foster adaptability and flexibility
 Influencing individual and team behaviour to execute the management plan in an efficient
manner
 Playing an active role in the operational decision-making for enhancing the quality and
efficiency of operations
 Maintaining direct communication with all the important player in the operations
 Working in close stimulation with Network Operations Control Centre
 Reporting and communicating the findings to the Head of Customer Airside Operations
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