Assessment of Strategic HRM in Air Arabia: A Case Study Approach

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STRATEGIC HUMAN RESOURCE MANAGEMENT
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Table of Contents
Introduction......................................................................................................................................4
Assessment Task 1...........................................................................................................................5
AC: 1.1 Explanation based on the importance of strategic management of human resource in
organizations....................................................................................................................................5
A.C 1.2. Assess the purpose of strategic management activities in an organization.......................6
A.C 1.3 Evaluate the contribution of strategic human resources management to achieve the
organization’s objectives.................................................................................................................8
Assessment Task 2.........................................................................................................................10
A.C 2.1 Analyse the business factors that underpin the human resource planning in an
organization...................................................................................................................................10
A.C 2.2 Assess the human resource requirement in the given situation........................................12
A.C 2.3 Develop a human resource plan for an organization........................................................13
A.C 2.4 Critically evaluate how a human resource plan can contribute to meeting an
organizational objectives...............................................................................................................14
Human resource always aims to fulfil the goals and objectives set for the company’s growth
altogether (Xu et al, 2018). They maintain a proper plan and thus make the company prosper in
shorter goals. The objectives of the human resource are as follows :...........................................14
A.C 3.1Explain the purpose of human resources management policies in organizations.............15
A.C 3.2 Analyze the impact of regulatory requirements on human resource policies in an
organization...................................................................................................................................17
A.C 4.2 Analyze the impact of an organizational culture on the management of human resources
.......................................................................................................................................................18
A.C 4.4 Make justified recommendations to improve the effectiveness of human resources
management in an organization.....................................................................................................20
Assessment Task 3.........................................................................................................................21
A.C 4.1 Analyze the impact of an organizational structure on the management of human
resources........................................................................................................................................21
A.C 4.3 Examine how the effectiveness of human resources management is monitored in an
organization...................................................................................................................................22
Conclusion.....................................................................................................................................24
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References......................................................................................................................................25
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Introduction
Planning of human resource management is known to be a process which is a part of strategic
plan. This strategic planning includes addressing the particular needs within an organization
associated with the strategic direction of the respective company. Hence, there are certain steps
for the planning of human resource which involves the future and current needs of human
resource. Apart from this, there is a vast difference between strategic human resource
management and only human resource management. When the conventional human resource
management is contrasted with strategic management of human resource, it is known to be easier
for understanding. Therefore, strategic human resource management is generally considered as
the aligning process for business strategy related to a company’s practices of human resource
management for the purpose of attaining the strategic goals within an organization. The human
resource strategies are also referred to as the strategic management of human resource
department. Hence, in the present study, it is focussed about the importance of strategic human
resource management along with its purpose and contribution and similar others. Human
resource policies as well as requirements along with the plans within an organizational culture
are also addressed in the present study.
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Assessment Task 1
AC: 1.1 Explanation based on the importance of strategic management of human resource
in organizations
There is a strategic role based on the respective human resource management within the
organizations. The role of strategic management of human resource deals with the training of the
employees as well as development which is known to help the workforce for preparing for the
future position in the organizations (Collings et al., 2018). The strategic role of human resource
managers includes succession planning, evaluation of the performances and also promotion
within the policies of the organizations. Hence, strategic management of human resource is
referred to as the process through which the managers are known to design mechanisms for the
system of human resource management which is considered to be reliable within one another
along with the goals and plans of the organizations as well as other essentials within the
organizational architecture. Human resource management is known to play a strategic role for
managing people along with the culture of the workplace as well as the environment (Brueller et
al., 2018). An effective management of human resource is also considered to contribute for the
overall direction of the company along with the accomplishment of objectives and goals within
the organizations. Hence, each and every organization is known to seek the services of
outsourcing for the companies of HR recruitment.
The main concern of managers in the recent days is considered as the strategic human resource
management for the expansion based on their businesses across the globe. Hence, the strategic
human resource management is known to be important of every organization as it is known to
deal in a strategic manner with the overall functions and resources of the organizations. Apart
from these, it is also considered to provide avenues which are new regarding promotion of
learning team within an organization (Boon et al., 2018). The strategic management of human
resource also plays a significant role in tam learning as; it helps in nurturing the behaviour of
team learning within diverse workforce based on the organizations of global businesses for
developing the learning organizations as well as sustenance of workers who consists of
emotional knowledge of intelligence. Besides these, it is considered as the practice based on
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rewarding, attracting, developing as well as retaining the employees associated with the benefit
of individuals and employees within an organization (Meyer and Xin, 2018).
The departments of human resource management who are known to practice the strategic
management of human resource are considered not to work in a silo in an independent manner
rather their role is to interact with the other departments of the organization for getting their
individual goals which helps in creating the strategies for aligning with the respective objectives
along with the organizational objectives. Hence, the departmental goals of the human resource
management eventually support and reflect the goals based upon the organizational culture
(Banfield et al., 2018). Therefore, the strategic management of human resource seems to be a
partner for the success of an organization and is also opposed for the necessity regarding
compensation or rather legal compliance. Strategic human resource management is therefore
known to utilize the opportunity and talent in the departments of human resource management
for the purpose of making the other departments more effective as well as stronger.
The development of strategic human resource departments along with its processes of
recruitment, plans, compensations, training and similar others associated with the goals within
the organizations are known to assure greater probability based on the success of the
organizations (Bailey et al., 2018). Hence strategic management in the respective department is
known to help the organization to grow and sustain in the long run effectively.
A.C 1.2 Assess the purpose of strategic management activities in an organization
Air Arabia is the largest Middle east largest Low Cost Carrier. Founded in 2003 it has its hubs in
Sharjah International Airport, Ras al khaimah international airport. Again it has three
subsidiaries – Air Arabia Egypt, Air Arabia Maroc, Air Arabia Jordan. As of 2014 financial year
the company earned AED 3.7 billion.
The objective of the company is comfort, reliable and value for money air travel across the
network of GCC and North Africa. As per the human resource the company focuses on providing
the best airline service in the middle east area and the north Africa region. The foremost goal is
to provide the best qualities of comfort and reliability to the passengers. It foresees itself being
the top quality airline giving best services towards the passengers and broaden its services to
other countries as well. The network has to be improved, at the same time the relations with the
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other countries will prosper. At the same time the airbuses needs to provide the best services
with quality as well. The services have to be improved and the people management for the
company has to be uplifted (Odor, 2018).
Strategic planning is the organizational management activity to achieve the most in the market.
Setting goals, priorities, strengthening the operational activities, ensure the goal is achieved and
the planning towards achieving the goal are all part of strategic management. The purpose of
Strategic management is simple (Formisano et al, 2018). The long terms goal are detected for the
company and the long term goals are segregated into smaller goals. By doing that the vision and
missions is created for the company. Then the processes are set and the various resources are
employed to achieve the goal (Hammond and Churchill, 2018).
The activities pertaining to Strategic human resources management are Recruitment, retention,
and human resource capital management. The primary objective of strategic management is to
retain the best, key and quality staffs in the organization. The motto of the company is to build
best services in the aviation industry of North Africa and GCC. Thus the human resource will
plan to sustain the company’s loyal and key employees. The people who are experienced in the
industry and has an intension to serve the passengers are the best people to sustain in the
company (Kumar and Awasthi, 2018). Air Arabia is the company which focuses on supplying
the quality service to passengers at an affordable price.
Recruitment for air Arabia : The staff to be recruited should either have the capability of serving
people or the intension to serve. The smile and the presentation quality is again another factor as
the aviation industry focuses on picking up employees who are well groomed to maintain the
glad environment.
Retention : Air Arabia is the company which has an aim to be the most popular airline service in
the whole of North Africa and GCC along with extending its services to other countries as well.
Therefore the motto of the company should be retaining the old employees who knows the
company operations and the best ways to support the passengers at the time of emergencies and
challenges. Again, the key employees who are an asset to the organization are always a priority.
Management of the daily activities and the performance of the staff : This is the most crucial
duty of the human resources department as it entails a lot of jobs at the same time. These involve
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activities such as – maintain a book with daily records for attendance and the various activities
that the company employees are subjected to and the assessment of the same on the basis of the
same. Air Arabia should maintain the record consisting the various activities pertaining to each
employee as this will serve as the criteria for the assessment of the best employee according to
the aviation company and the best will be rewarded. The reward system is a way of motivating
the employees directly or indirectly which helps the company meet the goals and the business
goals subsequently (Pruchno, 2018).
A.C 1.3 Evaluate the contribution of strategic human resources management to achieve
the organization’s objectives
The motto of the company is to become the most liked airway service to serve in different
countries at a low cost. Often it happens that the companies who plan to be the most affordable
company ends up being the worst as it subdues the service factors. Air Arabia has to keep this in
mind before setting the goals for the company. The company aims to be the most affordable in
the industry. Thus, the company has to deliver best services at a low cost which is tough in the
GCC countries due to the cost rise lately (Harris, 2018).
The contribution of the human resources is the effective use of employees to achieve the most for
the company and the goal achievement of the personnel. The process in doing so entail –
recruitment selection, development, compensation and the utilization of the employees is
achieving the best for the company (Lagman et al, 2018). The development of the individual
will ultimately increase the growth for the company as well. The planning and development of
the human resources is to help the employees boost their skills and knowledge to mitigate the
challenges for the company and enhancing the growth of the employees and the organization.
Strategic recruitment and selection and their development : For the company Air Arabia would
be to provide with the best skills in the industry, enhance the performance of the company, and
grow the financial graph. At this point the Human resource for the aviation company will seek in
recruiting limited but quality people who are experienced in this sector or the persons who have
the intension to learn the basic activities of the company and carry the passion to serve
passengers. Aviation is a service industry, thus the main motto of the company is to understand
the passion of the employees to serve. Thus the company should focus on picking up employees
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who are intentional in achieving the company goals and the better training and development
should be provided in order to gain the best name in the market (Bailey et al, 2018).
Strategic performance management : This is the most important role of the human resource as
this helps the company to understand the key employees and the most valuable employees of the
concern.
For a low cost aviation company the first and foremost thing is to understand the ways in which
the company can manage the operations at a low cost. Thus, the employees who are able to build
plans and strategies on effective operational functions at a low cost are the key employees for the
organization. Thus, the company can retain and reward those who understand the functions of the
Aviation company (Tweedie, et al, 2018). Again the people with best services and those who
stick to the company for a prolonged period should also be taken care of. The people who serve
the passengers best are to be kept for sure as they attract a lot of passengers at the end of the
year. Again, the best skills in piloting and air-hosting skills are to be retained by the company as
they serve the company in maintaining the best services.
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Assessment Task 2
A.C 2.1 Analyse the business factors that underpin the human resource planning in an
organization
The factors that underpin the human resources activities are mainly of two types. They are –
External Factors and Internal factors.
External factors : For any organization the factors like Political, Economic, Social,
Technological, Legal, Environmental (PESTLE).
The political factors can prove to be a hindrance for the aviation industry altogether. Arab Spring
had and yet is a big issue in the middle east countries which are reason for the headache of the
company. The various countries take decisions regarding the same thus the borders are blocked
and the change of policies every now and then can hamper the company as a whole. Other than
this the political issues with other countries due to the various contradiction in ideologies and
culture a big reason to lose for the company. They have to foresee on this part before employing
any policies for the company.
Economic factors wont be an issue for the organization as the organization is a low cost carrier
company and focuses on serving at a limited cost. Thus, the middle class and the upper class can
afford flights which a positive sign for the company.
Social factors for the company are a factor that cannot be mitigated. The social factors engage
the cultural and the social thinking of the people. For the company it is ideal for them to boost
the factors that entail the lot of people management. The human resource should hire the people
who are from the locality or maintain the same social and cultural aspects as of the native
environment. That would be a positive factor for the company.
Technological factors are always the factor to be considered in the context of every organization.
In the aviation industry the airbus needs to be safe for the journey and the passengers should get
proper knowledge of the travel. This would engage a proper technology in the said field. Thus
the factor is equally important as the other factors as well (Machado, 2018).
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Legal factors are another negative for the company in the aviation industry. The company has to
abide by the rules and regulations of the government. Thus, the factors imbibing the legal affairs
are a thing to worry for the company. The changes in the laws and the regulations of the
government can hamper the activities and the future of the company.
Environmental factors can entail the different environmental issues that can hamper the
company’s various activities. The storms, extreme environmental conditions can hamper the
aviation activity which may affect the human resource management also (Kidwell et al, 2018).
Internal factors : Organizational structure, budget planning, skills level, workplace productivity,
compliance and regulation are the set of internal factors that help the organization to grow.
To understand the organizational structure is the basic activity of the human resource as they
employ the assets of the organization and look up to the growth of the company in a broader
prospect. To fill up the positions, to create positions and to enhance the key role activities for the
particular position is a utmost need. Air Arabia is a company which is a service related business
and aims to be the low cost carrier (Gutierrez-Gutierrez et al, 2018). Thus the company has to
employ people who are efficient in the sector and has the knowledge who understand the various
positions of the organization.
Budget planning for human resource entail the processes where there is a set of plans and the
decision making for the particular post remuneration. The various post have different set of
responsibilities in the sector. Thus the company understand the importance of that and set
different prices for each post. This is an important part for planning as this can enhance the
activity of the company altogether (Banfield et al, 2018).
Skill level and workplace productivity : the skill level are the various types of skills which are a
requirement for the particular company. Since this is a company which deals with service for
passengers thus this has to be kept in mind that personnel skill is of a huge demand in the sector.
The trainers should also employ enough training to understand the productivity in the
company..The workplace environment are the primary factor which affects the productivity of
the individual which in the end improves the productivity of the company (Aguenza and Som,.,
2018).
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Compliance and regulations is another internal and the most required factor to be assessed for
any company as this can motivate the employees for a better productivity. Insurance and the
security factors are the most required in the sector for the company.
A.C 2.2 Assess the human resource requirement in the given situation
Recession : During the recession period the human resource should focus on smart hiring .
People who are qualified in the said sector, the people who are quick learners are the best
requirement for the company at that time (Koronis and Ponis, 2018). Fast turnover is the cause
for which the company has to recruit and rehire again which gulps a lot of the cost for the
company. This has to be mitigated during this situations. Again it is highly required that all the
employees are working at their optimum levels so that the company can be sure of cutting the
costs (De Marco, 2018).
Expansion : At the time of expansion the company should think about breaking all the local and
national barriers or the company can never expand to its heights. Other than this the human
resources should focus on boarding some efficient managers and leaders and executives who
have the experience in the sector and are great communicators. Again, a global database should
be build to understand the pro and cons of the company. To understand the hierarchical
personnel are movable or not this can also take it into an account for the company. The company
can expand if all these factors are in line with the company.
Diversification : Diversity management is another thing to be looked at. Colour blind recruitment
is the best way to recruit at these conditions. Bias free and candidates who do not have mental
barriers are the people to be boarded on for the company. Again the strategies for retaining the
company personnel is an utter need for the company.
Divestment : This is a situation where the company is facing financial issues. Therefore, the
company has to cut off some extra costs and manage the accounts of the company. Make use of
the already present resources of the company.
Downsizing And Layoff : Downsizing and layoff are an important part of the human resource
management as this builds the efficiency of the company. The human resources has to plan the
down size and the layoff of the company officials at the time of need though it is the hardest
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