SCIENTIFIC AND HUMAN RELATIONS MANAGEMENT IN THE 21ST CENTURY

INTEGRATED BUSINESS

NGUYEN NGOC MAI CLASS: FB2-A DATE OF SUBMISSION: APRIL 4, 2011

FOREIGN TRADE UNIVERSITY UNIVERSITY OF BEDFORDSHIRE

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TABLES OF CONTENTS

TABLES OF CONTENTS.....................................................................................................2 ABSTRACT...........................................................................................................................3 INTRODUCTION..................................................................................................................4 SCIENTIFIC MANAGEMENT ...........................................................................................5 Definition...........................................................................................................................5 Origination and Contributors..............................................................................................5 Principles............................................................................................................................5 Influences on organization.................................................................................................6 Applications.......................................................................................................................6 Strengths and weaknesses..................................................................................................6 THE HUMAN RELATIONS MOVEMENT.........................................................................8 Definition...........................................................................................................................8 Origination and Contributors.............................................................................................8 Principles............................................................................................................................8 Influences on organizations................................................................................................9 Applications.......................................................................................................................9 Strengths and weaknesses................................................................................................10 MANAGEMENT IN THE 21ST CENTURY .....................................................................11 Features of 21st century management..............................................................................11

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Factors reshaping and redefining management ...............................................................12 THE APPLICABILITY OF THE TWO APPROACHES IN THE MODERN WORLD....13 CASE STUDY: EASYJET..................................................................................................16 Background information about EasyJet ..........................................................................16 EasyJet low-cost strategy and scientific management......................................................16 EasyJet human resources policy and the Human Relations Movement...........................18 CONCLUSION....................................................................................................................21 RECOMMENDATIONS.....................................................................................................22 REFERENCES.....................................................................................................................23 APPENDIX .........................................................................................................................25

ABSTRACT
The essay revolves around the central question: Are the scientific and human relations management still applicable to organizations in the 21st century? The key issues consist of: The theory about scientific and human relations approaches Management in the 21st century The applicability of the two approaches in the new context Case study: EasyJet

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INTRODUCTION
Management, a process of getting things done, effectively and efficiently with and through other people, has been practiced since a long time ago. Its long history can be traced back to over 3000 years ago with the Egyptian pyramids as the proof that projects of tremendous scope, employing tens of thousands of people were completed in ancient times. From the 1780s to mid 1800s, the birth of corporation came and brought significant influences on management, making it become a necessary component to ensure the success of the business. However, only around the beginning of 20th century, the knowledge of management was actually unified, developed and taught in a variety of settings. Those early proponents were called classical approaches. Since then, many other approaches were proposed and a considerable number of contributions were made to management theory. Among them there are two approaches: Scientific management and human relations management. These represent two different schools of management: One belongs to the classical theorists, focuses on efficiency and brings unquestionable changes to task performance and structure of the organization while the other is a contemporary approach that considers human factors as the center of organizations. In this essay, I shall present my understanding of the two approaches, which I absorbed from various readings, relate the theory to a real-life example and answer the research question Are scientific and human relations management still applicable to organizations in the 21st century?.

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SCIENTIFIC MANAGEMENT
Definition Scientific management (SM) - a classical approach to management is originated around the beginning of the 20th century. It was based on an idea of systemization, standardization and simplification of work process. productivity. 1 Origination and Contributors SM was developed by many management theorists such as Henry Gantt, Lillian Gilbert and Frank Gilbert but the biggest contributor is Frederick W. Taylor, The Father of Scientific management. As Taylor realized the soldiering2 phenomenon among the workers, he attempted to systematically analyze them and proposed the use of time-and-motion study as means of standardizing work activities. Therefore, sometimes SM is also called Taylorism. Principles In his monograph The Principles of Scientific Management (1911), Taylor stated the four basic principles of SM: 1. Planning scientific work methods. 2. Selection, training and development of each individual workers 3. Cooperation with the workers to ensure work methods being followed. 4. Equal division of work between employers and workers. In other words, it aims at increasing the labor

Definition of Scientific Management, Retrieved from http://www.wordiq.com/definition/Scientific_management on March 15, 2011. 2 The phenomenon in which workers do well below their capacity on purpose. Taylor called this laziness the soldiering (Taylor, 1911: them page)

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Influences on organization The impacts of SM on the 20th century were undeniably great. Peter Drucker saw Taylor as the creator of Knowledge Management. His ideas are the basis or even the inspiration for many later management philosophies, including Management by Objectives, Operations Research, CSFs and KPls, Balanced Scorecard, Total Quality Management, Six Sigma and Business Process Reengineering, etc.3 Many firms and companies adopted Taylors ideas of autonomy, piece rates payments and great division of labor. The results were dramatic with labor productivity increasing significantly. Thus, new organizational functions such as personnel and quality control were created. Also, SM introduced us to product line, the foundation of mass production techniques, which totally dominated the management thinking in the first half of the 20th century (John Middleton, Organizational Behavior, 2010, p.14-15). Even our daily life is influenced by SM; families began to perform their household tasks based on the time-and-motion studies results. Applications In real-life, the applications of SM are widely applied but varied largely due to the differences in business contexts of different firms. In fact, SM has no single applications or results when applied by actual companies. There are cases that the firms only adopt some aspects of SM or merge it with other business strategies. Some remarkable applications of SM are Fordism, McDonaldism, Kaizen system, Just-in-time, Lean Production and so on. Strengths and weaknesses Strengths: Spender, J.C and Kijne (1996)4 listed some strengths of SM. 3

One of the first formal divisions between employers and workers. Improve production methods, leading to a major global increase of living standards.

Usage of Scientific Management Applications, Retrieved from http://www.12manage.com/methods_taylor_scientific_management.html on March 15, 2011 4 Spender, J.C. and Hijne, H. (Eds), 1996, Scientific Managemet: Fredrick Winslow Taylors Gift to the world?

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Focus on the individual task and worker level was focused, laying the ground for Business Process Reengineering (process level) theory.

Direct reward mechanism for workers rather than pointless end-of-year profit sharing schemes.

Suggest schemes for workers, who should be rewarded by cash premiums. The systemization is the early proponent of today quality standard theory. Emphasize on measuring. Measurement enables improvement.

Weaknesses The authors also showed the limitations of SM. Taylorism can be easily abused to exploit human beings and create conflicts with labor unions. Not useful to deal with groups or teams. Leave no room for individual preferences or initiative. Overemphasis on measuring and pay no attention to soft factors, led to deskilling labor. The work is too repetitive and workers feel like being treated as machines.

Thus I think that in the current changing and knowledge working environment, a management style that draws a fixed system and creates loss of skill level and autonomy of worker level like SM is no longer suitable. Moreover, the service sector is the major part of the economy now, so using SM, which was meant for industrial companies, is really hard.

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THE HUMAN RELATIONS MOVEMENT

Definition The human relations theory is the name of an approach to management as opposed to the classical ones. It was developed in the 1930s when some management theorists shift their attentions from efficiency in production to another major factor of the work process the workers. The objective of HR approach is to answer the question: How do you motivate and lead employees in order to get high levels of performance?5 Origination and Contributors The HR movement started with the experiments carried out by Elton Mayo at Hawthorne (the Hawthorne studies). In fact, the HR movement is a unified theory embraced the thinking and contributions of many individuals. For instances, Abraham Maslow is famous for his description of a hierarchy of five needs; Douglas McGregor developed the Theory X and Theory Y; Frederick Herzberg gave insights into the two kinds of factors (intrinsic and extrinsic) involved the job satisfaction with his motivation-hygiene theory, etc. Up to present day, experts and thinkers still continue contributing their works to HR approach. Principles John Middleton (Organizational Behavior, 2010: 16) pointed out seven operating principles of HR approach: 1. Organizations are social not economic systems. 2. People are motivated by many needs, not just financial rewards. 3. The informal work group is a major influence on the attitudes and performance of individual workers. 4. Job roles are more complex than job descriptions and time-and-motion studies would suggest.
5

Stephen P. Robbins, David A. Decenzo, Mary Coulter, Fundamentals of Management: Essential Concepts and Applications,

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5. There is no particular correlation between individual and organizational needs. 6. Job satisfaction will lead to higher job productivity and this is a more socially beneficial approach than worker coercion. 7. Manager needs strong social skills, not just technical skills. Influences on organizations Having been ignored at first, the HR approach still gradually proved its value and began to influence organizations. Human factors which are very important to the development of organizations were given proper attention. Employers did not realized that workers needs affected the productivity before, but now under the influences of HR approach they know that they should have a different treatment towards their employees. Treat people with respects and bear their interests and needs in minds, they will typically make a better contribution. To the contrary, give them no thought and see them only as a part of production, they will not care a bit about the company and perform poorly. As management no longer just focused on efficiency, new kinds of organization with different view and look from the Taylor-obsessed ones were created. (John Middleton, Organizational Behavior, 2010, pg 16-17). Applications In reality, we do not see any applications of HR approach with proper and clear names but it is actually practiced frequently. The employers guarantee of working conditions, safety precautions, workers rights, etc. are some familiar examples of HR practices. Nowadays, workers unite together to form trade union (British English) or labor union (American English). The trade union, through its leadership, bargains with employers on behalf of union members and negotiates labor contracts with employers. Many organizations now have a separated department of human resources.

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Strengths and weaknesses The followings are the advantages and disadvantages of HR approach I myself draw out after researching a variety of materials.6 Advantages Recognize human as the most valuable assets of organizations. Motivate employees and therefore bring forth job satisfaction, from that point on, increase the individual contribution. Concentrate on the individuals within organizations. Create a more open, trusting and comfortable working environment. Create ability to retain highly skilled employees for organizations. Very suitable to long-term business strategies and organizational objectives.

Disadvantages Human relations are very complex so they are difficult to analyze and control. Efficiency in production is hard to reach right away and needs some time. If motivation is not successful and done in the rights way, reserve negative effects can happen. Be affected by many internal and external factors. Employee productivity is increased through an indirect and delicate way.

You can find the list of materials I used in the References part at the end of the report.

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MANAGEMENT IN THE 21ST CENTURY

Rushing through many books, articles and talks about the 21st century management, the conclusion I came up with just lied in one word: Complex. After a long and full of thorns path of development, management becomes such a complicated matter that many people try to dissect and analyze. There are thousands of management books written over the last decade. All gives only one overall picture of current organizational management: A complicated activity with the complexities of technology, people, globalization and uncertainties (Tom Brown, 2008). Features of 21st century management Here I shall borrow some ideas of 21st century management from Management2002 Team but use my own words and evidences to demonstrate my understanding. Those ideas are: Management is for everyone. The rise of educational levels and information technology has created opportunities for everyone to learn and use management. Now management can be found everywhere and every time, not only in organizations anymore. Farmers manage their crops, storage and equipments; students apply management in their studies; housewives use management to perform household tasks; etc. The distinction between managers and workers will fade away and management knowledge will become everyones responsibilities. (Management2002 Team, 2008). Management is for learners. Nirvikar Singh, an Idian management thinker, sees knowledge as the new focus of management in the next century. The knowledge here also includes data, information and skills. Now to do business one needs knowledge. Therefore, everyone will learn and managers tasks will be promoting learning.

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 Management is based on communicating The era in which production-oriented market existed is no longer here. Human is the focus of organizations and customers is the center of business. As the means of communication improve day by day, communicating effectively will be one of the keys to success for organization. Management is about change Life is always changing day by day in every aspect. With a changeable environment like this, managers need to adapt to change so that they can guide organizations. Management is broad-based. The world and organizations now can be called boundless due to the rise of Internet, globalization and advancements in technology. People can work everywhere even at home or during a vacation through the use of mobile phone, computers and other means. It also led to the creation of new types of company like MNC. Factors reshaping and redefining management Today, managers are dealing with changing workplaces, ethical and trust issues, global economic uncertainties, and changing technology (Stephen P.Robbins, David A. Decenzo, Mary Coulter, 2011, p.16). For example, although people still need to buy food even during a recession, grocery stores are struggling to retain their customer base and keep costs down. At Publix Super Market, the largest grocery chain in the southeastern USA, everyone, including managers, is looking for ways to better serve customers. The companys president, Todd Jones, who started his company through these challenging economic times by keeping everyones focus from baggers to checkers or stockers on exceptional customer service. As the organization moves forward, other challenges are remain. Managers everywhere are likely to have to manage in changing circumstances, and the fact is that how managers manage is changing. The way it changes has great impact on managerial functions (planning, organizing, leading and controlling).

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THE APPLICABILITY OF THE TWO APPROACHES IN THE MODERN WORLD

Many concepts and methods of management have become old-fashioned and no longer applicable to the modern world, but scientific and HR approaches do not belong to these cases. In the new context, both these approaches can still be applied to organizations. Naturally, the appearances of the approaches cannot remain the same, whereas the world has been consistently changing. However, their core concepts have been and will be rooted deeply in organizations in many new different forms and methods. The theory presented by Taylor claims that there is one best way to perform every task. The right job needs to be given to the right people with the right tool to achieve the maximum efficiency. Many organizations still practice this theory to find the suitable method and people for the jobs they are doing. The basic principle is the same but the organizations are now diverting a little from the theory. As the theory claims that there is one best way to perform the task. Companies determine that one best way of performing a task but with new inventions and technologies being discovered efficiency is increasing day by day and one cannot claim that a single way of performing a task is the only way. The new innovations on daily basis make it difficult to determine a single best way. For example: In past we had Floppies to transfer data from one computer system to another, large data was transferred in packs. After that CD's came and they allowed people to transfer data much more efficiently and now we have got USB's to transfer the data and other latest technologies. This gives a clear idea that one single way for any task cannot be determined and there is always room for improvement. It is possible to make the new innovative method the best way to perform a task which takes less time and cost (Clara Ross, Use of Scientific management). Most of organizations think the concept of SM has become obsolete, but in fact they knowingly or unknowingly try to implement SM into their organizations. They set the

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organizational objectives or goals and then search for the most suitable methods to accomplish them. SM is present even in the first steps of organizational operations. However, the key to success of an organization nowadays is the people. Here is the point when HR approach will prove that its strong influences on organizations are still present. Organizations are developing an increasing orientation toward service to clients. Relationships are becoming more important than physical products. Restaurants, hospitals, banks, public utilities, colleges, airlines, and retail stores all must now gain and retain patronage. In any service firm, there are thousands of critical incidents in which customers come into contact with the organization and form their impressions of its quality and service. Employees must not only be able to get along with customers, they must also project a favorable image of the organization they represent. Most organizations recognize improved quality is the key to survival. The notion of quality as a competitive tool has been around for many years, but in the 2000s, it is receiving much more attention. In a period of fierce competition, a consumer may not tolerate poor quality. Human beings are at the heart of the quality movement because workers are given the power and responsibility to improve quality. Companies are organizing their workers into teams in which each employee plays an important role. If team members cannot work together, the goals of the organization will suffer. In some cases, workers are cross-trained so they can do the work of others, if necessary. Employees must be flexible and adaptable in order to achieve success within a climate of change while employers are trying their best to motivate employees to be as productive as possible. It is important for everyone to practice interpersonal skills which help to improve the relationships in the workplace (Highland, Patrick, Human Relations. 2007) Today profit or non-profit organizations do not use SM and HR approaches separately. In reality, they may only adopt some aspects of both approaches and merge them with other

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strategies to find the most effective ways that meet their needs and objectives and help them achieve the desired results.

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CASE STUDY: EASYJET

In the previous part, it is said that modern organization integrate SM and HR approaches with its management styles for the sake of accomplishing its goals. I am going to analyze the managerial model of a company to prove this fact. The company I chose is the EasyJet Airlines Company Background information about EasyJet EasyJet Airlines Company is one of the most successful low-cost airlines in UK. It is founded by Sir Stelios Haji-loannu, a graduate of London Business School, in 1995 with $7.5 million borrowed from his father, a Greek shipping tycoon. EasyJet operates on over 540 routes, across 30 countries and having over 196 aircrafts by 2010. The headquarters of EasyJet is located in Luton, UK. Easyjet stated that its missions are Turning Europe Orange, Building the best low fares airline in the world and Becoming the Europes no.1 air transport network. EasyJet low-cost strategy and scientific management At first glance, it seems there is no actual correlation between the low-cost strategy EasyJet used and the theory developed by Taylor, but this strategy is actually an innovative application of scientific management. One of the four principles of SM is planning scientific work methods that suit the organizational objectives. The founder, Sir Stelios, wanted to build an airline that offered customers as cheap fares as possible. The low-cost strategy fits his idea the most among alternatives. SM focuses on the efficiency and so does the low-cost strategy. Low-cost comes from two driving principles sweating the assets and high operating efficiency. EasyJet makes sure its planes are as full as possible and flying as much as possible. EasyJet flies its

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Boeing 737 for 11 hours per day, four hours longer than British Airways. Their pilots fly over 900 hours per year, 50% more than British Airways pilots. In terms of operating efficiency, EasyJet lets their aircrafts fly out of low cost airports. These are normally not the major airport serving any destinations and can be some distance from them. Also, the aircrafts are tightly scheduled. They are allowed only 25 minutes to off-load one set of passengers and load another, less than half the time of its schedule fullfare rivals. They must leave and arrive on time (they will not wait for the passengers), and if there are delays they can have knock-on consequences for the timetable. Moreover, there is no slack in the system. EasyJet admits having one and a half planes worth of space capacity compared with the dozen planes British Airways has on standby at Gatwick and Heathrow. EasyJet has fewer cabin crews than full-fare rivals. This cabin crew also carries out the cleaning duties on the aircraft. Moreover, the ticketless policy (booking ticket online) helps EasyJet to eliminate as much waste as possible. It can be seen that these principles are very much similar to the time-and-motion study about a series of working actions which aims to make workers complete tasks with the fastest time. EasyJet studied the best methods which let they achieve the maximum efficiency in operations with minimum energy and resources for the purpose of being low cost. In 2009, there were 289 people living within 60 minutes drive from an airport served by EasyJet and they always keep consistently high load (the load factor in 2009 was 85.5% and in 2010 was 87%). With the distinctive operations, EasyJet also provides unique job descriptions and specific training system for its staffs. In 2009, EasyJet became only the second UK airline to be granted approval for managing their in-house pilot training. During this year, their pilots undertook 15,000 hours of simulator training with the prime focus on practicing realistic scenarios. Thanks to this the pilots are enable to become more familiar with new airports, which are continually added to the network. EasyJet also has a training course for their cabin crew so that they could deliver excellent customer services. They are the evidences of

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how much effort EasyJet put into creating an effective training system for their works, a practice of job description introduced by Taylor. EasyJet human resources policy and the Human Relations Movement As a leading Europes airline with the workforce of over 3000, EasyJet also pays great attentions and cares to its employees. Just as the case with scientific management, it adopts the human relations approach to its management style. EasyJet is committed to ensuring high employee satisfaction and engagement levels across the business. Customers are now the center of the business. The firms and customers make contacts with each other countless times. A big part of customers image about the company is getting from its employees. In case of EasyJet, they built a unique orange culture which gives customers bright and energetic impressions. This orangeness means they are up for it, passionate, sharp, mad about safety, and mad about cost. This orange is what makes EasyJet people different. It can be considered as a kind of food for thought, connecting glue, a wonderful working field, a source of encouragement and a feeling pride for each individual member. At that time, the feelings each employee has for his/her company is not just the loyalty, but the love for something that has become their blood and flesh. A wide range of people works for EasyJet. EasyJet is committed to being an equal opportunities employer, so that all staff can make the best use of their skills and experience. Their policy is to ensure that no applicant or employee receives less favourable treatment because of their age, colour, creed, disability, full or part time status, gender, marital status, nationality or ethnic origin, race religion or sexual orientation. The management style of EasyJet is very open, straightforward and interesting. Easyjet's reputation as a simple, economic operation resonates clearly through both its business and employee benefits strategy. "Our philosophy on benefits is that we are a low-cost, no-frills

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airline and therefore do not want to introduce legacy-type benefits or things that have a defined-benefit nature," says Lawrie the human resources manager. But this does not mean Easyjet shies away from benefits altogether, or simply looks for the easiest options. In fact, the benefits they offer for their employees are very attractive. Employees can access the benefit schemes call Your Benefits through a company online portal. EasyJet cabin crew staff pay comprises a basic payment plus sector pay (depends on crew member's seniority), plus overnight allowance (where relevant), uniform allowance, language payment (where relevant and depending on degree of proficiency), and a loyalty bonus (payable after two years full employment). The company also offers discounted staff travel and a company pension scheme. Communicating with employees is seen as being important to easyJet - they aim to generate awareness among staff of the company's performance and development. There are regular communication meetings and management briefings and a regular newsletter is sent to all staff. Most of the firm's corporate information is shared across the business and employees can get information electronically. Recognizing the importance of staff participation in EasyJet operations and developments, the company issued either share options or share gifts to all staff employed before the acquisition of Go Fly in 2002. There is a director within the company who is responsible for people development and cultural issues. This is in addition to a human resources director. The company also listens to its employees views. EasyJet do precisely that on their Web site - asking cabin crew staff to comment on aspects of their work: these staff make a few adverse comments about the organisation, such as there being an insufficient difference between pay levels of cabin crew and purser; the demands of working on flights with rowdy, drunken customers on board; or the hostile response they can get from some pilots.

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If easyJet were not willing to have an open management style, one might think that they would not broadcast these comments publicly. The intensive attentions EasyJet gives to its employees have brought about impressive results. It has become one of the 50 most attractive places to work in the world with high employee satisfactions, high attendance and low staff turnovers.
Figure on staff turnovers, employee satisfaction and attendance
(Source: EasyJet 2010 Annual Report)

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CONCLUSION
The essay has demonstrated my research about two opposite approaches to management to answer the questions: Are scientific and human relations management still applicable to organizations in the 21st century? Firstly, I studied the theory to have an overall understanding: Scientific management is the basis of the productivity while Human relations approach can be considered as a breakthrough in management and a reorganization of the values and importance of human factors in organizations. Secondly, I examined the current organizations and how management is nowadays and realized Complex is the most correct words to describe them. Finally, I analyzed two aspects of EasyJet Airlines Company (the low-cost strategy and the human resources policies) to see how deep the scientific and HR approach take roots in its management style. I have gained many useful and valuable lessons from this research. To have a successful career, beside the working abilities and capacities, I need to improve my interpersonal skills which are greatly valued by employers. The flexibility is also necessary so that I can adapt to the constant changes of the working environment.

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RECOMMENDATIONS
The two management styles mentioned in this essay sound complicated, difficult and hard to practice, but in reality it is not like that at all. Even an ordinary person can practice scientific and human relations management in his daily life. In terms of scientific management, we can start by applying it to some simple everyday activities such as cooking and household chores. For example, before starting cooking, one should take a short amount of time to look at the ingredients, the equipments and the place, imagine the cooking procedure to determine the best ways to cook. In terms of human relations approach, trying to get along with your classmates and friends is probably the best practices. The class is the miniature model of the society. Our classmates personalities, values, points of views, abilities, etc are varied. We will study, work and interact with them on a daily basis. The way we treat, talk and behave around them will influence the relationships with them. Practicing how to deal with circumstances, situations and people for the sake of good relationships with others will produce meaningful and useful experiences for the future.

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REFERENCES
Highland, Patrick. "Human Relations." Encyclopedia of Business and Finance, 2nd ed.. 2007. Retrieved March 17, 2011 from Encyclopedia.com: http://www.encyclopedia.com/doc/1G2-1552100159.html Accel Team, Employee motivations, Retrieved on March 17, 2011 from http://www.accelteam.com/productivity/approaches_00.html Definition of Scientific Management, Retrieved from http://www.wordiq.com/definition/Scientific_management on March 15, 2011 EasyJet Case study homepage, Retrieved on March 31, 2011 from http://www.bized.co.uk/compfact/easyjet/easyindex.htm Tom Washington (2009), Employee Benefits, Retrieved on March 31, 2011 from http://www.employeebenefits.co.uk/item/8565/23/305/3 Fritz J. Roethlisberger (1958), A New Vision The Human Relations Movement, Retrieved on March 31, 2011 from http://www.library.hbs.edu/hc/hawthorne/anewvision.html Stephen P. Robbins, David A. Decenzo, Mary Coulter, Fundamentals of Management: Essential Concepts and Applications, Retrieved on March 15, 2011 from http://www.12manage.com/methods_taylor_scientific_management.html Management 2002 Team, 21st Century Management, Retrieved on March 22, 2011 from http://www.manage2001.com/21m.htm EasyJet 2010 and 2009 Annual Reports John Middleton, 2010, Organizational Behavior, Capstone Publishing 2002

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Jorgen Legaard, Mille Binslev, Organizational Theory, Ventus Publishing ApS 2006 Spender, J.C. and Hijne, H. (Eds), 1996, Scientific Managemet: Fredrick Winslow Taylors Gift to the world? Clara Ross, Use of Scientific management For Business, Retrieved on April 3rd, 2011 from http://ezinearticles.com/?Use-of-Scientific-Management-For-Business&id=3768703

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APPENDIX
EasyJets Benefits
Pension Group personal pension (GPP) open to all staff, who receive employer pension contributions of between 5% and 7% depending on grade. Employees can make additional contributions through salary sacrifice, and half of the employer's national insurance savings are invested back into the individual's pension pot. Share Schemes Sharesave and share incentive schemes offered to UK employees. Similar schemes are operated for staff internationally. Healthcare Private medical insurance, income protection, optical benefits and dental cover all available through voluntary benefits scheme. Critical illness insurance Easyjet pilots are entitled to "loss of licence" cover, akin to critical illness cover, through which the employer will pay out a lump some of 120% of salary to help with rehabilitation should a pilot lose their flying licence on grounds of ill health. Holiday All employees receive 23 days' holiday, rising to 25 after two years' service. A complicated roster system means flight crews select their holidays on a points-based system, with more popular weeks costing more points than others. Incentive pay Cabin crew receive incentives for flying and get commission for food and drinks sold on board. All staff also receive an annual bonus based on company and individual performance, with the opportunity to earn up to 40% of their annual salary. Pilots receive a loyalty bonus of 5% per annum after two years, 10% after five years and 15% after 10 years' service.

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