The paper "Performance Management System - Etihad Airways" is an outstanding example of a management research proposal. Modern-day organizations both in the public and private sectors usually find themselves operating in a volatile business environment (Zizlavsky 2014). They are particularly faced with sharp competition, the evolution of business processes, and the adoption of new technologies as a way of keeping up (Peng 2016). In this process, effective management of human and capital resources is a major issue in any effective organization, and this suggests the significance of performance management as just like any activity, management is only effective if well-measured, otherwise, it is impossible to know whether the firm is on track (Zizlavsky 2014). Etihad Airways is an airline fully owned by the government of Abu Dhabi, and its analysis, therefore, draws focus to the industry to which it belongs (Etihad Airways 2017b).
The airline industry is among the most challenging, considering the trends in globalization, with many challenges, ranging from environmentally conscious travelers who demand minimal carbon emissions to frequent fluctuations in prices of petroleum, economic downturns that impact on leisure travel, stiff pricing competition and the threat of terror (Belobaba et al.
2016). Meanwhile, the number of players in the industry is large, making competition even stiffer as everyone struggles to uphold service quality while minimizing cost (Kim 2013). Performance measurement is therefore a significant component of strategy in the airline industry, particularly in the United Arab Emirates. Aim of the Study Considering that performance management has to be based on what has been measured, this study analyzes the system used at Etihad Airways, pointing out its possible strengths, weaknesses, and appropriateness. At its end, it also offers recommendations on what needs to be done to ensure maximized effectiveness of the system. RESEARCH QUESTIONS How is performance measurement done at Etihad Airways? What is the basis of Etihad’ s approach to performance measurement? What are the strengths and weaknesses of the approach to performance measurement? What needs to be done to ensure the further success of the approach?
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