Anthony Smith AP304 Student ID 20930067

Through this essay I aim to discuss management within the airline

industry and the airport operators, in particular the role of human resource
management and it’s importance, and identify and explain the relevance of
ICAO and the CAA regarding safety and security measures at UK airports
given the environment within which managers in the airline business must
operate.

“It is the responsibility of managers to manage and achieve results

through the efforts of other people. This involves effective utilisation of human
resources. The way in which managers exercise their responsibilities and
duties is important. Consideration must be given to the management of
people. Managers are only likely to be effective if they adopt an appropriate
style of behaviour” (Mullins, 1996).

Identify and evaluate the functions of management and explain how they
relate to various activities undertaken by airline or airport managers
at all levels of the organization

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Human Resource Management

Much has been written on the changes of the Human Resource (HR) function
within a company. Over recent years HR has completed the transformation
from administrative ‘doer’ to strategic facilitator and therefore must be party to
the strategic planning of any successful business including the airline
industry.

Hr’s role can be defined as the process of getting things done, effectively and
efficiently, through and with other people to achieve specific goals and
purposes and to be able to do this management need to stimulate
experiments and encourage innovation). (Maister 1997: 65 - Kotter, 2002)

The function of management concerns the manager's role in taking necessary

actions to ensure that the work-related activities are consistent with and
contributing toward the accomplishment of organizational and departmental
objectives (Agnilar, 1967).

Planning rotas, organising security staff, directing those providing assistance

and information to passengers and supporting the retail and property
business by controlling delivery are all management functions undertaken by
airline and airport management to ensure standards are met and customers
have positive experiences.

“…being technically brilliant may count for nothing in the clients eyes, if your
manner or method of delivery puts them off” (Mayson 1997: 274).
 Pedler, Burgoyne and Boydell (1994 cited in Mullins, 2002) propose 11
qualities that make a successful manager: those relating to basic knowledge
include command of basic facts, relevant professional understanding, and
continuing sensitivity to events; skills and attributes including analytical,
problem solving and decision making skills, social skills, emotional resilience
and pro-activity, and finally, meta-qualities including creativity, mental agility,
balancing learning habits and skills, and finally self knowledge. Ultimately,
much of management involves ‘getting work done through the efforts of other
people’ (Mullins, 2002).

To carry out management processes and execution of work, all managers

need to be technically competent, have social and human skills and
conceptual ability, greater emphasis on the latter as they rise through
organisations (Mullins 2002).

Airline captains have to demonstrate these skills to a high degree, such as

social and human skills through dynamic management of their flight team,
and a conceptual understanding of the complexities of the airline they fly
(Prospects, 2010) though with less emphasis placed on their conceptual
ability than that of a chief operating officer. Willie Walsh, CEO of British
Airways since 2005, made the successful transition from a pilot with Aer
Lingus to CEO, clearly demonstrates these skills (Flightmapping, 2005). At
the level of the board of directors and chief operating officer, the most
important management function is setting of the objectives, strategy and
formulation of policy for the whole organisation. Boards set the objectives but
it is the CEO and other executive directors who implement and ensure their
execution.

The HR manager has responsibility for all of the functions that deal with the
needs and activities of the people within the organization, including;
( Koontz & O’Donnell, 1955):
• Recruiting
• Hiring
• Training
• Organisational development
• Communication
• Performance Management
• Coaching
• Policy Recommendation
• Salary and Benefits
• Team Building
• Employee Relations
 • Leadership

For human resource (HR) managers the primary role revolves around
people. Sutherland and Canwell (2004 cited in Furley, 2010) suggest the
main focuses for human resource management (HRM) include:-

• an organization’s labour force size;

• costs and needs for training to achieve its objectives;
• relations with employee organizations and trade unions,
• costs and benefits of personnel policy.

A manager needs to continuously assess the number and types of different

skills it requires from it employees if it is to meet its goals and objectives
(Handy 2002: 24).

HRM is strategic, concerned with overall HR needs. Mullins (2002) indicates

that HRM is about maximising performance from employees, aligned to an
organization’s strategic objectives and its business needs.

“Every aspect of a firm’s activities is determined by the

competence, motivation and general effectiveness of its human
organisation. Of all the tasks of management, managing the
human component is the central and most important task,
because all else depends on how well it is done”. (Likert 1967:
140)

Staffing
Performance, change management and administration underpin all HR
activities.

• Staffing ensures the business is appropriately staffed;

• Performance includes employing practices and policies to ensure

motivation and commitment;

• Change management involves managing structural and cultural

change and administration, all are important for smooth running of
organisations. (Torrington 2005).

Effective HR strategies stem from the top and HRM is subsequently

influenced by top management style (Mullins, 2002).

Torrington et al. (2005 cited in Furley, 2010) suggests that in employee

relations there are five common styles.

1. Traditional styles can be authoritarian, a more confrontational

approach
 2. A paternalistic style, encouraging employees to identify with business
objectives.

3. Consultative approaches, with an emphasis on two-way

communication.

4. Constitutional approaches with a focus on formal agreements usually

more suited to union based employee relations.

5. Opportunistic style, changing strategy according to needs but all the

while promoting profitability.

Labour costs are a significant part of European and US airlines total operating
costs, and under direct management control (Harvey & Turnbull, 2002).

Doganis (2001) suggests cost cutting is more and more becoming a long term
strategy to achieve financial success especially important within the airlines
as they must rely less on general economic growth and more on their own
competitive strategies (Harvey & Turnbull, 2002).

HRM policies therefore play an important part in the competitive performance

of air transport operators (Mullins, 2002; Harvey &Turnbull, 2002) and so
management style and culture, employee attitudes and labour costs are
important influence to the airline performance and service quality.

In successful airlines in HRM takes on a more consultative approach, best

shown by Southwest Airlines (Applebaum & Fewster, 2002).

Southwest record of 30 years consecutive profits are down to its people and
HR policies (Pate & Beaumont, 2006). Southwest has only had 1 strike in its
history. Its recruitment process is rigorous, based on attitudes, the core being
positive customer service and workplace culture.

Skills are addressed through training and teamwork and the staff are a part of
a profit-sharing scheme. Southwest as a result benefit from a low staff
turnover rate. Harvey & Turnbull’s (2006) study into flight crew attitudes to
management style in low cost subsidiaries of full service carriers, in particular
Go, confirm this.

Go’s CEO Barbara Cassani’ approach was co-operative, its management

style consultative. Its pilots, recruited on their compatiblity with Go’s
management style and not just suitable training. By Contrast, the approach
taken at bmibaby through unilateral imposition of new pay structures
eventually led to poor relationships with pilots and flight crew and strike action
ballots in 2004/5 (Harvey & Turnbull, 2006).

Events such as the terrorist attack of 11th September 2001 required strategic
HR responses to the fall of consumer confidence in the industry, by the
reductions in jobs and costs, recruitment freezes, early retirement,
redundancy, part-time working, pay cuts and benefit changes (Harvey &
Turnbull, 2002). These changes and re-structuring have increased tensions,
requiring some delicate HR management.

Because the industry is rapidly changing, job security is a regular question of

an employee at any level. As the human resources manager in this volatile
industry, it is imperative that they prepare for the worse (Mintzberg, 1973).

Recent pressures including the recession, have fuelled the current BA strike
as Willie Walsh seeks to cut BA’s operating costs, BA needs to save £60
million annually from its crew budget by withdrawing 1 cabin crew member
from all flights, failure could be disastrous for the airline (Pank, 2010;
Swinford, 2010).
“…the things and the way in which got you where you are, are seldom the
things that keep you there…” (Handy 2002:49-64)