Straregic Human Resource Management - Mel Airways - Case Study Example

Mel Airways: Case Study Introduction: The Human Resources Management functions are inclusive of a large number of variables that are required in order to build and run a successful commercial venture. In fact it has been said by some that a business cannot find success in the absence of a carefully devised and implemented plan that assures a high quality where HR maintenance is concerned (Mitchell, 2001). HRM is made up of a large number of variables and the fields that are linked to the same are complex and overlapping with the management strategies that govern the over all venture-these include the staffing needs of the company, the recruitment and training of the best employees, ensuring they are high performances, value for money and low rates of attrition. The HRM functions also deal with performance issues, and ensuring that the personnel and management practices conform to various regulations (McNamara, 2001). Further an effective HR strategy consists of the management of the approach that is to be taken by the company for employee benefits and compensation, employee records and personnel policies. Usually small businesses (for-profit or nonprofit) have to carry out these activities themselves because they can't yet afford part- or full-time help. However, they should always ensure that employees have -- and are aware of -- personnel policies which conform to current regulations.   The following study aims to answer pertinent question about the application of strategic HRM to the running and strategic change management in a low cost carrier Mel Airways. The fundamental idea in this explanation will be to understand first, if the owner of Mel Airways has adopted a strategic approach to human resource management and second, assuming that a strategic approach has been adopted, what is its extent and level pf success. Finally, the analysis will recommend certain steps that could be taken by the management at Mel Airways in line with HR management theories that will enable Mel Airlines to retain, in the long run its positions as the No.1 no frills airline through a better management and streamlining of its HR management functions. The essay is in essence a study of HR management and it is in this context that the analysis that has been presented here needs to be understood and analyzed.  Part 1: Ideally, a strategic approach to the management of human resources would mean an integration of HR strategies and goals with the overall goals and results that the company hopes to achieve in the future (Schuller and Jackson, 2007). This would in turn help employees identify their purpose in the organization, help in the better understanding of individual roles and purposes that contribute to the overall health of the organization. The basic precepts of strategic human resource management have a natural affinity with the ‘resource based view’ of the competitive advantage in the strategy field (Barney, 1991). The idea is that sustained competitive advantage can arise from a firm’s resource base. This also means that decision making cannot be done in isolation but needs to be in line with the overall working culture of an organization. The system of feedback needs to be perfect. There should be an effort made on part o the organization to make decisions regarding organization and performances within the organization keeping mind global, national and local environments and related factors (Das and Waqar, 2007). A basic review of an idea human resource management system in a given organization would mean three basic things: 1. Use of in service training methods and tools with a healthy system of promotion that ensures employee job satisfaction and growth within the working environment. 2. The recruitment process needs to be carefully devised and should be based on merit and suitability to the post 3. Management and motivation of employees by using the basic principles of strategic human resource management. By this meter, if one was to observe the steps that have been taken by the Mel Air owner, they fall short of meeting strategic HRM strategy expectations. The goal of the organization is basically to maintain its position at the top of the heap as the number one low cost carrier airline. This is a policy choice that is evident in the slogan that has been adopted, ‘Mel Airways, the first choice for efficient affordable travel provided by helpful, friendly staff’. What this means is that at a strategic level at least, there is a clear indication of the integration of product and service provided with the staff that helps provide it. But most of this is theorization about what ought to happen, whether or not all of it has been applied by the owners and the management on a practical footing is an entirely different story. If one was to look in to the research about internal company dynamics that have been provided what becomes clear is the fact that there are complaints that exists about the staff being rude and surly, about dissatisfaction and high levels of attrition within the staff. What this means is that despite a real effort into strategizing and streamlining the HRM function, the practical aspects of the problem are yet to be worked out. Second, there is definitely an effort that has been made to ensure that employees feel like they are on board with projects; the steps being initiated even now are basically dictatorial. As is evident from the material that has been provided, the employees are basically now being informed about policy decisions that are being taken at the ownership and management levels. There is, even now no tangible effort to ensure employee participation in the overall decision making process (Wright and McMahan, 1992). This is in fact a basic need for a strategic policy to the management of human resources. There should be an effort to: 1. Link Human Resource activities with competency based performance measures 2. Create a link between the human resource related activities within the organization and how this transpires to profit Third, if one was to look closely at the findings of the survey that has been carried out by the owner of Mel Airways itself what becomes evident is the fact that there is no real sense of purpose or a strategic outline behind the manner in which human resources or the people working in the organization are managed. There is major discontent within the members of the organization and yet the carrier has been number 1 in its niche field for over a decade and a pioneer for others in more ways than one. What this shows is sharp business acumen on part of the owner but this does not 9in any way reflect on the competency of his man management skills. Managers are regarded as being high handed and autocratic. Training is obviously not provided to the staff regarding work specifications given the fact that there are complains from customers about the unfriendly and inefficient nature of the airline staff. There is zero recognition of the approach that needs to be adopted while dealing with customers. Finally there is general job dissatisfaction within the ranks of the staff. This is due to absence of learning and promotion opportunities. All of this basically goes to demonstrate the fact that the people management skills that have been displayed by the owner are far inferior to the astute business skills that have been demonstrated till date. The solution to these problems and the key to maintaining a competitive advantage in an increasingly hostile and competition oriented industry will be to utilize company resources to greater advantage. It is here that the application of better Strategic Human resource principles can be of help Mel Airways’ cause. Part 2: In this section of the paper there is an attempt to come up with changes and HRM related recommendations so that they can be wired in a more strategic manner so as to bring competitive advantage to the company. The idea behind a taking a strategic approach is actually simple. An organization’s human resources are of critical importance- i.e. the skills, behaviors, and interactions of employees have the potential to provide both the foundation for strategy formulation and the means for its implementation (Colbert, 2004). There is also a belief that a firm’s HRM practices are instrumental in the development of the strategic capability of its pool of human resources. It is in fact for this purpose that the company management has made the effort of issuing cards to each one of its employees bringing them within the ambit of the organizational goals, making them feel like a part of the team. In this context therefore the efforts that are now being made by the management for a strategic development of its Human Resource pool is evident.   The efforts that will be made in order to ensure a strategic management of human resources would have a complete and direct link to the issue of performance management. This is the key set of rules by which practices within the organization would need to be regulated (Gratton, Hailey and Stiles, 1999). This is usually conceptualized as being made up of three basic elements: objective setting; formal performance evaluation and linkages between performance evaluation and rewards. Mel Airways is in a position where the primary aim of doing business is to maintain its position as market leader in the low cost human carrier segment. When it was operating in isolation the problem was not a big concern but with the dawn of competition there is need for greater competitive edge. There are a number of factors where improvements can be made related mostly to the three broad outlines that have been drawn above related to HRM. First, there needs to be an objective work setting. This means in simple terms that there need to be correct people at the correct job. This implies that recruitments should be conducted on the basis of merit and aptitude, someone with zero PR skills for example should not be placed at a position dealing directly with customers. The organization needs to be made up of people that understand what it takes to be part of the aviation and hospitality industry. The idea is to hire people who know their job and take pleasure in doing it. At present the administrative system is highly inflexible and impervious to change that originates at the bottom rungs (Ostroff, 1999). The manner of change imitation and execution is top down oriented. This should be altered and made in to a bottoms-up approach giving the commonly the advantage of knowledge from the ones who deal with problems on an everyday basis first hand and second this would help in the filtration of an integrationist trend within the organization as a whole reducing levels of discontent and subsequently rates of attrition. Second, is the requirement for formal performance evaluation. This includes within itself a proposition for objective evaluation as well as the requirement for training and growth. Through an application of the goals setting theory what can be understood is that goals are effective tools in order to indicate a level of performance that is indicative, specific, attainable, demanding and desirable. An appraisal system should be institutionalized and regularized so as to audit employee performance and identify opportunities for training (Snell and Dean, 1992). There should be large say that the employee is given in his or her appraisal so as to make the process interactive an address the problem in a proper manner. Training and Development are key interventions that are made in order to address skill issues and add value to the human capital. There is thus a need for flexible and creative employees whose knowledge and skill levels can be increased and developed through training. Training is a big part of strategizing the HR process as would help in not just better employees but it would help in loyal employees with a clear vision of their jobs and the roles that are expected out of them. Finally, there need to be proper linkages between the process of evaluation and the process of rewards and promotion (Gee and Nystrom, 1992). The idea should be mostly to align employees with organizational strategy by providing incentives for employees to act in the interest of Mel Airways and perform well over time. There has to be in place a proper feedback mechanism that ensures that there is congruence between the two and there is no scope for the seeping in of dissatisfaction and related issues. Conclusion: In conclusion therefore it may be stated that there is a big change that is quite perceivable in the attitude that the ownership of Mel Airways has towards the manner in which to deal with the HRM function of the organization but there are still a number of steps that needs to be taken with regard to training and development, recruitment and promotion, reward and punishment and finally that of evaluation if there is a tangible alteration in the manner in which the HR functions contribute to the success of the Mel Airways in the overall environment. 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