Analyzing HR Issues and Recommending Solutions for Flyhigh Plc

This report provides a comprehensive analysis of the human resource challenges faced by Flyhigh Plc, a UK-based budget airline. It identifies key issues such as a lack of manpower planning, poor employee retention due to a stern management style, low employee morale, ineffective communication, an inappropriate organizational structure, an ineffective wage structure, discrimination, a negative work culture, legal violations, an inappropriate staffing model, industrial disputes, and outsourcing issues. The report then offers detailed recommendations to address these problems, focusing on improvements in recruitment and selection processes, including the use of recruitment agencies, job websites, and ensuring fairness in the selection process. It also emphasizes the implementation of a formal performance appraisal system, adherence to legal policies, adequate manpower planning, and building strong interpersonal relationships. The report aims to provide Flyhigh Plc with practical strategies to improve its HR practices, enhance employee satisfaction, and ensure the long-term success of the airline.

MANAGING HUMAN
RESOURCES
1

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1. The major HR issues faced by Flyhigh. Plc............................................................................3
2. Recommendations regarding modification in recruitment and selection process...................5
3. Critical analysis of wider implication of employees in management of people......................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
Human resource management is a managerial function that is planned by management to
enhance the performance of employee so as to attain the overall objectives of business entity. In
addition to this aspect, managing human resources also regards to the administration of human
inventory that is further important for the organization to attain its vision and mission aligned
with the goals of company (Chadwick, 2008). Therefore, it further involves various processes
that are carried out in organization like, recruitment, selection of manpower, giving training and
development to employees etc. in order to enhance their skills. In this report, various aspects of
managing human resources in Flyhigh Plc will be explained. Flyhigh is a UK based company
functioning in aviation industry and provides budget airline services in various Asian and
European destinations. In this report, various HR issues faced by company will be highlighted.
Thereafter, changes will be recommended to retain the competent personnel with the business
enterprise.
TASK 1
1. The major HR issues faced by Flyhigh. Plc
Overview
From the provided case study, it is clear that Flyhigh is a budget airline which is known
for providing cost effective services as well as convenient availability of takeoff and landing
slots. However, the growth of company is restricted due to shortage of manpower like pilots, air
crew members etc. It is further resulting into the cancelation of flights along with causing
negative impact on the reputation of company. Thereafter, managing director of the company is
too much stern with its employees which is also causing to increase its employee turnover.
Therefore, in order to sustain in the long run, it is important for management of Flyhigh to ensure
proper manpower planning and retain its competent personnel. Therefore, description of major
HR issues faced by company is as follows:
HR Issues in Flyhigh plc
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 Lack of manpower planning: The major issue faced by company is regarding the lack
of manpower planning (Thomas, 2011). Due to heavy competition faced by organization
from giant rivals like, Easy jet, Ryanair etc who employ staff at attractive packages, there
is a shortage of manpower faced by Flyhigh within the aviation industry. Thereafter, due
to lack of manpower planning, company is sometimes forced to cancel its flight at short
notice which is further causing harmful impact on the reputation of company. However,
to ensure manpower planning, HR manager of Flyhigh can enhance efficiency of its
recruitment and selection process. Thereafter, prior planning can be done regarding the
required staff etc.
 Lack of employee retention: Employees are the lifeblood for organizations who assist in
enhancing the productivity and profitability of organization. Therefore, it is important for
business entity to retain its competent employees within the company. However, due to
stern behavior of managing director towards employees and lack of expertise in
managing human resources, company is facing high employee turnover (Beck, 2013).
Therefore, many of the experienced employees mostly from the senior management team
are leaving the job at Flyhigh.
 Low morale of employees: Major business decisions are taken by managing director
himself with the negligible participation of employees who are causing low morale
among them. Thereafter, there is no proper measure taken for motivation which further
causes dissatisfaction among employees. Therefore, employees work less than their
potential that is resulting to the low productivity of organization. However, to enhance
the morale of employees, Maslow hierarchy of need model can be used by HR manager
(Rynes and et. al., 2010). Therefore, unsatisfied needs of members should be satisfied to
stimulate them to work hard for the success of Flyhigh.
 Poor communication: Company is still using traditional method of communication like,
top to bottom down communication which is slow and ineffective as per the present
business needs. Therefore, there is a lack of direct communication between employees
and management due to which employees are unable to share their creative ideas,
problems and suggestions that leads to create dissatisfaction among them. Further, to
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overcome this issue, new methods like, email, telecommunication, meetings etc can be
used (Marrelli,2010).
 Inappropriate organization structure: There is flat structure that prevails in Flyhigh
where key decisions are taken by top executive. Major disadvantage of this structure is
that there is communication gap between management and employees. In addition to this
aspect, there is less involvement of employees in business decision making therefore,
there is lack of sense of belonging among members. Therefore, important changes should
be made in the organizational structure.
 Ineffective wage structure: It is one of the key issues faced by Flyhigh due to which
employees are leaving the organization. Therefore, there is a formal pattern of
performance appraisal used in company. In addition to this aspect, performance is
evaluated and appraised on the ad hoc basis. This further restricts the creative ability of
employees and causes low morale among them (Hennessey and Amabile). Therefore,
employees work less than their actual potential which further a loss for the organization.
Hence, it is important for HR manager to implement a uniform performance appraisal
method.
 Discrimination and Diversity: Management of Flyhigh is accused of doing
discrimination while employing staff for the top managerial position. In this respect,
management is mostly hiring relatives and friends of top executives. This further is
leading to favoritism of specific employees. In addition to this, top positions are secured
by the favorite of managing director of the company. Therefore, this factor further
restricts the career growth opportunities for rest of the employees that leads to create
dissatisfaction among them (Macey and Schneider, 2008).
 Negative work culture: The issue of partiality within the organization is not only
causing bad image of organization in market but also building negative work
environment. Therefore, employees other than favorite one are blamed for the poor work
performance therefore, separate culture (them and us) for respective employees causing
negative work environment.
 Legal actions for violating laws: Company is facing legal actions for violating
regulations laid down by EU and UK government. According to the UK government,
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company should not discriminate between its employees on the basis of caste, creed,
religion, gender, color and personal relation. Since, its inception that management is
biased among employees, Flyhigh is facing legal consequences like, penalty for violating
law etc. Therefore, image of company in the market is also damaged in the eyes of
government as well as society. Hence, various policies like, equality, discrimination etc
should be considered by the management while functioning.
 Inappropriate staffing model: Staffing process used by company is ineffective because
of which there is a shortage of manpower at the required time and need. Therefore, it is
important for HR manager to make viable changes in staffing model so as to ensure
availability of right person at right job at right time. This will further ensure overall
efficiency of employees and enhance the productivity of organization (Long, 2012).
 Industrial disputes: The air crew members and pilots of Flyhigh are associated and
controlled by different trade unions, UNITE and BALPA. However, these trade unions
have industrial dispute among each other which further impact the behavior of both air
crew members and pilots. Therefore, to ensure healthy interpersonal relationship among
various employees at different levels and departments, it is important for HR manager of
Flyhigh to assure healthy trade relationship between UNITE and BALPA.
 Outsourcing To meet the shortfall of manpower, organization is forced to recruit
employees from the recruitment agency. However, outsourced employees may not match
the standards set by organization (Bohlander and Snell, 2006). Further, they are not aware
of the organization objectives, mission and vision. Therefore, it may result in the
inefficiency of overall operations of the organization. However, with the help of proper
training and development, this issue can be overcome.
2. Recommendations regarding modification in recruitment and selection process
From the provided case study, it is clear that organization is facing serious issues in its
recruitment and selection process. Therefore, Flyhigh is facing threat of survival in future.
Therefore, reputation of company in the market is declining due to inappropriate manpower
planning. Hence, it is important for organization to modify its recruitment and selection process.
This will further help in retaining loyal and competent employees (Badawy, 2007). In addition to
this aspect, Flyhigh can maintain human inventory within business enterprise which will further
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help in attaining the overall objectives of organization. Therefore, recommendations in
recruitment and selection process are as follows:
 Assistance of recruitment agency: Since, organization is facing serious competition in
aviation industry regarding the employment of pilots and air crew members. Therefore, it
is important for it to outsource the recruitment function to reliable outsource agency
(Reilly, 2014). However, employees from outsourced company should meet the industry
standard and requirement. Therefore, HR manager should take a brief interview while
selecting outsourced employee. Thereafter, their aviation membership certificate must be
checked. Thereafter, they can be provided proper training and induction program so that
they are aware of the overall objectives of organization and their roles in attaining the
framed goals.
 Assistance of job websites and other portals: In order to attract competent personnel to
apply for job in company, HR manager of Flyhigh can take the help of job websites etc.
Therefore, company can give vacancy advertisement in reputed job sites. Thereafter,
fresh and talented employees from different country origin can be attracted to apply for
job in Flyhigh. This will help in overcoming the problem of intense competition of
aviation industry of UK impacting recruitment process.
 Ensuring fairness in selection process: HR manager should discourage the process of
hiring relatives and friends for the vacant position in company. Therefore, equal
opportunities should be provided to all the competent candidates. Further, performance
evaluation method used in company should be upgraded so that poor performing
employee can be detected. This will help in overcoming the problem of blame of non-
performance shifted on support staff (Byham-Gray, 2010). However, major risk that
could be faced by manager will be regarding the resistance by managing director who
wants to give employment opportunity to its family members or friends first.
 Implementation of appropriate performance appraisal system: It is a key factor that
requires change; therefore, HR manager of Flyhigh should implement a formal system of
performance appraisal (Avery and et. al., 2007). Therefore, it can use 360 degree
appraisal technique where feedback will be taken from superior, subordinates, coworkers
etc. and on the basis of which, performance will be appraised and evaluated. This will
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further help in overcoming the problem of biasness as review of different members will
be considered. The reward of implementing 360 degree appraisal can be seen in terms of
improved productivity of members as they will give their best performance.
 Consideration to legal policies: While employing the manpower for vacant job positions
in company, HR manager should consider various employment policies strictly like,
equality, discrimination etc. This will further help in safeguarding the interest of
prospective employees (Chadwick, 2008). Therefore, equal opportunities will be
provided to different candidates which will help in building positive image of company in
the market. Thereafter, legal actions by government against Flyhigh can be avoided
which will be the major reward for company.
 Ensuring adequate manpower planning: It is important for company to conduct proper
manpower planning. This will further help in meeting the present as well as future needs
of human resources (Long, 2012). In this respect, proper estimation can be done
regarding the future requirement of employees and with this proper source of recruiting,
the personnel’s should be ascertained. Therefore, the problem of cancellation of flight
due to shortage of employees can be overcome. Thereafter, by the proper manpower
planning, contingency can be implemented within staffing model so as to avail proper
human resources when required.
 Building interpersonal relationship: In order to overcome the problem of interpersonal
relationship among employees and top executive, communication system of Flyhigh
should be improved. Therefore, more meetings should be held where employees should
be stimulated to present their views, suggestions on business matters. In addition to this,
problems faced by employees should be ascertained (Heibutzki, 2014). Therefore,
greater involvement of management and employees will help in overcoming the problem
of dissatisfaction among members.
Furthermore, by implementing the aforementioned recommendations, major problem of
increasing employee turnover can be resolved. Thereafter, reputation of company in the market
can be improved. However, major risk faced in implementing recommendation will be regarding
the resistance from executives as it requires viable changes in organization system.
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3. Critical analysis of wider implication of employees in management of people
From the case study, it can be clearly observed that Flyhigh is undergoing through some
very serious issues that are pertaining to manage human resources (Avery and et.al, 2007). The
presence of numerous uncontrollable environmental forces also contributes to aggravating the
problem. Various suggestions for resolving this issue have been presented above. It is very
important to understand the impact of these suggestions on employees of the firm. One of the
major suggestions provided above is to outsource different tasks such as recruitment of human
resources. This will help in reducing excessive burden of hiring people in the company and
enable them to focus on other management related functions and duties (Thomas, 2011). Another
suggestion given to the aviation company was to provide training and development to its
employees. Since, there is a substantial shortage of man power in the industry while attrition rate
is soaring, training the employees can turn out to be a very effective source of not only
improving their working standards but also retain them in the company. Lack of motivation
among employees is a significant problem that company is facing at the moment (Long, 2012).
In this regard, organizing and conducting motivational sessions can prove to be very effective.
As discussed above, it would lead to the significant improvement in working standards and
retention rate in the company. Additionally, it would make the employees dedicated as well as
committed at workplace (Bakker and Schaufeli, 2008).
Management of Flyhigh could also focus on changing and improving the organizational
structure. Since, Muhammad Saleem, owner of the company follows autocratic leadership style,
which is hampering working of the firm; a change in organizational structure would help in
developing a positive image in the mind of employees (Reilly, 2014). In this way, they can be
sure that they would get a chance to grow and prosper in the company and thus give their
significant contributions to the organizational goals and objectives. But, one may argue that
changing the organizational structure could negatively influence the employees and their morale.
Though it is true, but its negative effects can be minimized in the long run as workforce would
adjust and cooperate with the new structure and remain loyal to company (Herzberg, Mausner
and Snyderman, 2011).
There is also a need to improve communication system followed in Flyhigh. Present
process of communication has proved to be not so very effective for the firm in wake of intense
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competition that it is facing in the aviation industry. An improvement in this aspect would
present a whole new kind of image in the mind of employees and enable them contribute to
firm’s objectives (Macey and Schneider, 2008). Moreover, improved communication would also
improve internal environment at workplace. significantly, ensuring that employees’ receive
proper and clear guidance to tasks they need to carry out. This would improve their performance
along with helping them to achieve their own goals and targets in the company along with
contributing to the firm’s objectives (Beck, 2013). Developing a fixed pay structure would also
help in removing ambiguity from the mind of employees and provide them with comprehensive
view of their future in the company. From this discussion, it can be said that following and
implementing all the above mentioned suggestions could help management at Flyhigh to tackle
problems related to managing human resources in an efficient and effective manner, thus it can
improve the image of company in the aviation market (Rynes and et.al, 2010).
CONCLUSION
From the above report, it can be concluded that managing human resources is very much
important to ensure long term survival in the competitive market. Major HR issue faced by
company is regarding the inappropriate internal polices like, organization structure, performance
evaluation method etc. In addition to this, discrimination among employees is also a serious issue
faced by Flyhigh Plc. However, by implementing recommendations, various issues can be
overcome and performance of company can be improved in the market.
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REFERENCES
Books and Journals
Avery, D.R., and et. al., 2007. Engaging the aging workforce: The relationship between
perceived age similarity, satisfaction, with coworkers, and engagement. Journal of Applied
Psychology. 92(6). pp.1542-1556.
Bakker, A.B. and Schaufeli, W.B., 2008. Positive organizational behavior: engaged employees in
flourishing organizations. Journal of Organizational Behavior. 29(2). pp.147-154.
Beck, R.C., 2013. Motivation: Theories And Principles. 4th ed. Pearson Education.
Bohlander, G. and Snell, S., 2006. Managing human resources. Cengage Learning.
Badawy, M.K., 2007. Managing human resources. Research-Technology Management. 50(4),
pp.56-74.
Chadwick, D., 2008. Improving Employee Engagement within the Energy Resources
Conservation Board. Canada: Royal Roads University.
Thomas, K.W., 2011. Intrinsic Motivation And How It Works. Journal of Training. 37(10).
p.130.
Rynes, S. L. and et. al., 2010. The importance of pay in employee motivation: discrepancies
between what people say and what they do. Human Resource Management. 43(4). pp. 381-
394.
Marrelli, A., 2010. Managing for Engagement -- Communication, Connection, and Courage.
DIANE Publishing
Macey, W.H. and Schneider, B., 2008. The Meaning of employee engagement. Industrial and
Organzational Psychology. 1(1). pp.3-30.
Hennessey, B.A. and Amabile, T.M., 2005. Extrinsic and intrinsic motivation. Blackwell
Encyclopedic Dictionary of Organizational Behavior.
Long, R., 2012. Motivation. Routledge
Herzberg, F., Mausner, B. and Snyderman, B. B., 2011. The Motivation to Work. Transaction
Publishers.
Online
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Reilly, R., 2014. Ways to Improve Employee Engagement Now. [Online]. Available through:
<http://businessjournal.gallup.com/content/166667/five-ways-improve-employee-
engagement.aspx>. [Accessed on 1st January 2016].
Heibutzki, R., 2014. What Are the Factors Affecting Motivation in an Organization? [Online].
Available through: <http://everydaylife.globalpost.com/factors-affecting-motivation-
organization-12897.html>. [Accessed on 2nd January 2016].
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