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Human Resource Management In The Global Civil Aviation Industry: A Survey And Analysis Of Recruitment And Selection, Organization Development, And Education, Training And Development Practices
Dr. Steven H. Appelbaum, Concordia University, Canada Brenda M. Fewster, Concordia University, Canada

Abstract The civil aviation is an extremely competitive, safety-sensitive, high technology service industry. People, employees and customers, not products and machines per se, must be the arena of an organizations core competence. The implications are vast and pervasive affecting no less than the organizations structure, strategy, culture, and numerous operational activities. Human resource management (HRM), the management of people within the internal environment of organizations, comprises the activities, policies, and practices involved in planning, obtaining, developing, utilizing, evaluating, maintaining, and retaining the appropriate numbers and skill mix of employees to achieve the organizations objectives. (Appelbaum, 2001). While an extensive review of literature on HRM in the aviation industry revealed a substantial amount of material on aviation psychology and human factors research, empirical research on HRM practices in the global civil aviation industry appears to be virtually non-existent. In a pioneering human resource management audit conducted in 2001-2, 13 respondents from nine countriesexecutives from their respective airline companiesparticipated in a lengthy audit of their organizations HRM practices. The extensive body of data collected from this audit was then compared and contrasted with a review of the literature on all 16 HRM categories covered in the audit. In the article below, the results of three of the audit categories are presented. The three audit categories, recruitment and selection, education, training and development, and organization development were selected as they constitute a particularly coherent cluster of HRM critical success factors. The conclusion drawn from the review of the literature and the audit data is that, with the exception of a handful of high performing airlines, the civil aviation industry as a whole continues to function as per a traditional, top-down, highly divisionalised, industrial model of operations and governance. This model is manifestly inappropriate in such a highly knowledge-based service market as the airline industry. Numerous studies now show that, in knowledge-based service industries, a high correlation exists between customer satisfaction and satisfied employees. Furthermore, a high correlation exists between satisfied employees and world class human resource practices as depicted in this article.

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These key HRM activities are required now, more than ever, to spearhead the strategic development of a customer-centric, learning-oriented workforce that is capable of adapting quickly to the strategic goals and change imperatives facing the airline industry.

Introduction Strategy in the civil aviation industry is premised upon two fundamental drivers that have been evolving since deregulation of the US airline industry in 1978: one, a growing global concern for safety; and two, everincreasing consumer expectations of broad service choice and service excellence. It is now well-documented that accidents and poor service quality are primarily rooted in socio-technical human factors, not technology per se. Sub-optimization, or poor quality in regards to management, decision-making, teamwork, employee motivation, or communication can translate into loss of customers, loss of market share, loss of organization assets, and above all, loss of life. In such a safety-sensitive, customer service-centric environment, the traditional product-centered industrial model of corporate structures and industrial relations is inappropriate. Human resource management (HRM) expertise is required now, more than ever, to spearhead internal marketing strategies in order to gain customer lock-on. The primary focus of HRM strategy is the manner in which the HR department aligns general activities, policies and procedures with the opportunity imperatives of the organization. Such relevant HRM expertise constitutes nothing less than a powerful strategic opportunity. Methodology The original purpose of the audits companion review of the literature was to find other empirical studies of the airline industry regarding HRM practices, from an applied perspective, with which to compare and contrast the results of the audit presented later in this article. None were found. This is consistent with the findings of other researchers. M. L. Thomas (1997), author of the book, A Portfolio Management Approach to Strategic Airline Planning, comments on the scarcity of research in the area of airline management. In reviewing the literature on international aviation, it is clear that researchers tend to analyze the industry at a macro-level. Although it has gained much attention recently . . . the topic of international commercial airline management suffers from a lack of theoretical and empirical work, and the scarcity of literature from a microeconomic perspective. According to J. Eaton (2001), author of the book, Globalization and Human Resource in the Airline Industry, research is particularly difficult because Airline managers are even more secretive and defensive about academic research than those in other industries (Eaton, 2001, p. ix). For the purpose of this article, Human Resources Management (HRM) refers to the management of people within the internal environment of organizations. It comprises the activities, policies, and practices involved in planning, obtaining, developing, utilizing, evaluating, maintaining, and retaining the appropriate numbers and skill mix of employees to achieve the organizations objectives. (Appelbaum, Syllabus, 2001). Empirical studies of HRM practices in the airline industry were not evident. As a result, the review of literature became a study of popular themes and contemporary problems in the commercial aviation industry. The research strategy was database driven drawing upon business, management, journalistic, academic, and technological sources dating from 1995 onward. A broad range of sources were consulted with a view to aggregating the fragmented material existing in an attempt to construct a snapshot image of key HRM themes found in, and regarding, the commercial airline industry. This review is followed by a series of select findings concerning the three HRM audit categories that constitute the focus of this essay: recruitment and selection; organization development; and, education, training and development. The audit results contain extensive data on 13 airlines from nine countries from around the globe. The audit was conducted by 13 students/aviation managers in the Global Aviation Masters of Business Administration (GAMBA) program at the John Molson School of Business, Concordia University, and Montreal, Quebec, Canada. In the article below, a review of the literature is presented followed by a select review of the audit findings. The discussion terminates with an analysis of the findings, a discussion linking customer satisfaction to HRM practices, and a series 2

International Applied Business Research Conference of recommendations. I. Review Of The HRM Literature: HR Operational Activities: Recruitment And Selection

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The focus of applied aviation psychologists and human factors researchers is largely on pilots and cockpit crews. The selection of pilots historically had been based almost exclusively on flying skills. The aviation community is now placing increasingly greater emphasis on a pilots potential to work well in a crew situation (Hedge et al, 2000). Research on the process used by British Airways to select pilots, suggests the task of the current generation of managers in the airline business, (Lowe, 1995) as beginning with the selection and continued grooming of professional commercial pilots. Interpersonal skills, and not just technical skills, are slowly becoming viewed as critical success factors for pilot performance and safety. In another study by Goeters (1995), it was found that nearly half of the problem cases in a study of 193 pilots were rooted in difficulties with interpersonal skills. In other words, measures of interpersonal skills/aptitudes were good predictors of whether or not a pilot became a problem case (Monfries and Moore, 1996). Carriers and the aviation community as a whole are becoming increasingly aware of the need for pilots to be competent in crew resource management skills and that successful completion of a flight or mission requires not only flying skills but the ability to work well in a crew situation. (Hedge et al, 2000).Recruitment and selection, obviously, are critical components of this issue. The airline industry is not only short of skilled pilots, but of quality frontline people as well. The problem is described and quantified in an article in Airline Business (1998), as follows: Like other service companies, airlines are finding it increasingly difficult to attract, retain, and afford quality frontline people. The supply of quality service sector people is decreasing as a result of the end of the baby boom, a lessening service ethic among young people, and a shrinking supply of pilots as countries downsize their air forces. At the same time demand is increasing as the service sector grows to an increasing percentage of the world economy (from 54% in 1970 to 60% in 1995) and more companies realize the potential higher returns from improved service (McKinsey & Co.,1998, p. 16). Good (1999,p. 46), citing a Fortune Magazine survey of the worlds most admired companies determined that the single most reliable predictor of overall excellence is the ability to attract and hold on to talented employees. Hiring right, suggests the American Society for Training & Development in their study of leading-edge companies, is one of the things their choice of Exemplary Practice Partners do in their organizations (Managing Training and Development, 2000, p.3). Case studies of outstanding aviation and airline organizations offer scattered but rich sources of anecdotal insights into the recruitment and hiring practices of successful airlines. One source offered very specific recruitment and selection guidelines. In a survey conducted by Business & Commercial Aviation, hiring experts were asked for their advice on how to hire the right technician. B & CAs summary (Benoff, 2001p. 65) includes helpful tips on such issues as how to target job announcement locations, what to look for in a resume, how to assess the applicants work experience and career path, how to prepare for the interview, and how to conduct the interview and reference checks (Benoff,2001 p. 65). Falter wrote an entire dissertation on her employer, Duncan Aviation a leader in aviation service and maintenance who has received #1 rating for the last 25 years in Professional Pilot magazines annual survey for avionics and maintenance. Falter(2000,p.107) provided the following information regarding the recruitment and hiring of employees: within one week of hire, the president of the company meets with all new employees as part of their orientation and to learn about the new people. A large percentage of new hires originated from internal referralsas seen in 2000 when almost 50% of new hires were referrals from employees (Falter, 2000, p.117). A far better known example of recruiting and hiring policies is that of Southwest Airlines. According to Southwests V-P of the People Department, Libby Sartain, the key to recruitment and selection for frontline positions is to hire for attitude, not skills (Ellis, 2001, p. 48), If we hire people who dont have the right attitude, dispo3

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sition and behavioral characteristics to fit into our culture, we will start to change that culture. The recruiters primary role is to make sure its a good cultural fit (Ellis, 2001, p.48). Each year, Southwests 90,000 applicants go through an application process that includes a personality test as well as interviews by a recruiter, the candidates potential supervisor and a peer employee (Ellis,2001, p. 48). Southwest hires for attitudes and trains people for specific skills because of the belief that skills can be taught but attitudes cannot be changed. Part of the interview process involves testing for a sense of humor, ability to work with others, and friendliness (Czaplewski et al, 2001, p. 15). This in done in interviews where applicants tell jokes and role-play a variety of situations to demonstrate teamwork and the capacity to act spontaneously. (Czaplewski et al, 2001, p. 15) The lucky 4% who are hired receive their orientation at the University of People, Southwests in-house training center (Ellis, p. 48). Atlas Air Inc., a Boeing 747 cargo aircraft operator with headquarters in Golden, Colorado, understands the importance of hiring for flexibility as a key factor in its low-cost operating success. Atlas has achieved high growth rates without accidents and at lower incremental personnel costs than many established international airlines and cargo carriers largely because of the scheduling flexibility and high productivity of its flight crew workers (Good, 1999, pp. 11, 17, 203). One reason for this flexibility may be found in what appears to be the companys practice of hiring young crewmembers motivated by the prospect of flying a Boeing 747 aircraftthe envy of many pilots. Although Atlas employees are paid less than half the industry standard in wages (compared to established union airlines), For many, Atlas Air is clearly the best opportunity even without a favorable change in compensation or work rules. (Good, 1999, p. 378) Part of Southwests mandate to hire for the right fit is its dedication to ensuring employee diversity. According to Sherry Phelps, director of employment, Southwest tries to mirror the population at large. The U.S. census statistics are provided to all the recruiters responsible for hiring in our cities and they make a concerted effort to make sure we have opportunities for everyone and reflect the outside population (Hendersen, 1995, p. 41). In addition to the concern over hiring the right contact, or front line people, and good pilots with both technical and interpersonal skills, there is express concern regarding the availability of good management talent. OToole (2001) refers to talented management as a scarce commodity that is likely to become even scarcer unless the industry invests more in its human resources. The internal supply of airline executives will not, as it stands, be enough to meet demand. In Europe, recruitment activity at airports is booming. (OToole, 2001 p.106) In another article, OToole (2000{b}) cites the observations of Michael Bell, who leads the global aviation practice at the executive search consultancy, Spencer Stuart. Bell believes that, Regional airline executives must craft and execute robust business strategies, establish and defend niches in competitive markets and handle myriad operational issues that arise in the larger carriers. (OToole, 2000 {b} p. 82) Because of this, regional carriers offer management talent as good as that found in major carriers. Recruiting practices however, have become particularly focused concerning some airlines astute observation that diversity matters to customers and should be part of the organizations hiring policy. Diversity is often discussed in lay and practitioner industry sources, not from the point of view of equal and fair treatment of employees, but as a marketing method particularly in discussions on recruitment. Hendersen outlines the growth of both women (International Society of Women Airline Pilots) and black airline pilots (Organization of Black Airline Pilots, OBAP) associations challenging the old status quo. About 30 years ago, the U.S. airline industry was an almost 100% white male bastion (Hendersen, 1995, p. 37). Little information can be found on the presence of women and minorities in the American transport industry, but airlines are learning how to successfully court and embrace diversity. At Southwest Airlines, a leg up is given to women and minorities by interviewing them ahead of other candidates (Hendersen, 1995). At Southwest and America West, where both organizations claimed more than 50% of their employees were female. Both companies also have clear equal employment directives. At America West, a corporate statement of commitment regarding equal employment opportunity and affirmative action is maintained and updated annually in addition to a separate nondiscrimination in employment policy that specifically touches upon harassment, including race, color, religion, national origin, age disability, veteran status, sex and in particular, sexual harassment (Hendersen,1995). As mentioned earlier in the section on recruitment, Southwest seeks to mirror population statistics in its hiring practices. United has also taken a stand and has declared its commitment to providing opportunity for career advancement to women and minorities [setting] aggressive affirmative-action goals and strongly [promoting] equal opportunity for all employees in the areas of recruitment, hiring and promo4

International Applied Business Research Conference tion (Hendersen, 1995).

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Delta Airlines has also taken a number of industry-leading initiatives to promote the development of women and black pilots in an industry where only 5% of all pilots are women and less than 1% is non-Caucasians (Black Enterprise, 2001). In June 2001, students began benefiting from Deltas commitment to spend $1.6 million in pilot training scholarships in a joint program with Western Michigan University and the Organization of Black Airline Pilots. Delta has also targeted selected high schools around the US where it provides financial assistance, internships, job shadowing, and facilities tours. Employees provide program support by serving as mentors in the classrooms, sharing real-life experiences with the D-TCA [Delta Technical Career Academy] students. And, in another collaborative effort with OBAP, 30 boys and girls were brought to Ace Camp to gain first-hand knowledge of what it takes to be successful in the field of aviation (Black Enterprise, 2001).

Strategy and Operational Activities: Organizational Development

In an intensely competitive marketplace where service innovations are so easily replicated, a key strategic variable that nobody can copy is an airlines culture. (Holloway, 1998, p. 272) HRM functions as a set of processes, whichthrough the recruitment, training, motivation, appraisal, reward, and development of individuals, and through the effective handling of industrial relationstranslates strategy into action, (Holloway, 1998,p. 269). Such a definition welds the notion of how an organization selects, interacts with, evaluates, enriches, and compensates employees with the culture that is created and how employees, in turn, provide service to the organizations customers. Or, to paraphrase Seal and Kleiner (1999), it is the management style of the CEO, good communications, good labor-management relations, respectful treatment of employees, incentive programs, and hiring right that are the keys to a healthy organization. The airline industry, unfortunately, is not in good health. Operational and administrative functions, particularly in customer service organizations, are built upon three essential critical success factors: management commitment, customer focus, and employee involvement (Laszlo, 1999). These are not the norm in the airline industry that is beset by communication problems. Holloway (1998,p. 269) suggests, Communications need to encapsulate what an airline is doing in its markets, what value it is adding, and why it would be missed were it not in business. There is little empirical evidence that this sort of communication is yet widespread in the industry. Organization communications are largely a product of an organizations structure. Old hierarchical command and control structures must give way to delayered organizations that improve communications and bring management closer to employees and customers. Jan Carlzon of Scandinavian Airline Systems (SAS), points out that hierarchies create environments where those higher up legitimate their roles only by issuing instructions, setting controls and carefully monitoring behavior (Eaton, 2001, p. 130). This style of leadership discourages initiative among employees and ultimately translates into sub-optimal performance and lower customer satisfaction. The movement towards the flattening of organizations is indicative of a shift in human resource management from seeking control over employees to gaining commitment from employees. Herein lies the foundation of organizational development upon which high performing organizations are based. The latter is what occurs in high performing organizations. Successful well-run organizations are often cited in the literature for actively shaping their culture through their hiring practices, orientation programs for new employees, treatment of employees as internal customers, and for paying ongoing attention to the opinions of line staff. When performed sincerely and professionally, such efforts can define an organizations culture and translate into lower costs of labor, improved productivity, and an increased sense of empowerment on the part of employees. The case of Duncan Aviation offers an excellent example. Duncan Aviation is a leader in US aviation service and maintenance and has received #1 rating for the last 25 years in Professional Pilot magazines annual survey for avionics and maintenance (Falter, 2000, p.117). At Duncan, management took employee opinions seriously when the results of a survey given to Duncans employees provided important and revealing feedback to the human resource specialist who conducted the research. The survey clearly indicated low morale and low job satisfaction across 5

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the company. Employees noted lack of communication, lack of respect, pay discrepancies, and distrust of management as areas of concern. (Falter, 2000, p. 95) The results of the study were successfully used by Duncan management to launch three HR initiatives as part of the companys reorganization efforts. One, the company created a viable company-wide pay schedule based on accurate job descriptions (after having the employees complete a job analysis questionnaire). Two, the vice-president in charge of implementing the structural changes was asked to resign when he failed to create strong teamwork at the senior management level (individuals were found to be scared and mistrustful of the vice-president). And three, formalized on-going employee-training programs were implemented that improved skill levels and communication across the organization and ameliorated the employees sense of empowerment (Falter, 2000, p.96). Southwest Airlines also closely monitors the perceptions of its employees and those of the unions. The attitude at Southwest, according to Libby Sartain, V-P of the People Department, is if were not getting feedback, we wont know whats going on (Ellis, 2001). SWA constantly surveys its employees and unions to identify their perceptions and solicit ideas about how to run the company (Milliman, 1999). As part of SWAs internal marketing strategy, employee focus groups are used to generate new ideas and unions are encouraged to research problems and present solutions to SWA management (Czaplewski et al, 2001, p. 17). Southwest is also particularly noted for the spiritual/family-like, employee-centered values espoused and practiced by management teams. According to Milliman (1999), Southwests strong set of values is a manifestation of spirituality. These spiritual values include the following: one, a strong emphasis on community, teamwork, and serving others; two, employees feel like they are part of a cause (i.e. an airline that offers low airfares, frequent flights, and personable service); and three, employees feel they are empowered and can really make a change in their customers lives and at work (Milliman, 1999). Treating employees well and empowering them, is derived straight from the airlines mission and mission statement. Above all, employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest customer. In simple terms, the underlying belief is the better employees are treated, the better they will treat customers (Czaplewski et al, 2001, p. 15). Management at Duncan Aviation also shares the belief that the way an employee is treated will dictate the quality of customer service: if our employees arent happy, our customers wont be either. We keep our employees happy through strong, caring and consistent leadership; developing, communicating, and staying true to our solid mission; a forward-focused vision which keeps our company strong and competitive; and high values that we live by on a daily basis. (Falter, 2000, p.5) Attention to detail, collective decision-making, and open-mindedness to new ideas are typical hallmarks of successful airlines (Shifrin, 2001, p. 74). Image is another dimension of an organizations culture that can unify a workforce. At Virgin Atlantic Airline, innovative in-flight services and young and enthusiastic customer contact staff help to communicate the entertainment-oriented and light-hearted corporate image. Cultural rifts within airlines are inherent to the global and multi-faceted nature of the industry. Different groups in an organization may act as different tribes and result in intertribal conflict. When the beliefs or behaviors of one group are not congruent with the thoughts or actions of a different group intergroup hostility, rather than teamwork is usually the outcome. (Karlins et al, 1997, p. 324) Singapore Airlines countered this problem with its OASIS (Operational Areas Seminar in Synergy) programmed. In a three-day long seminar, Singapore brought pilots, cabin crew supervisors, ground engineers and station managers/traffic personnel together to reduce inter-group conflict and enhance inter-group cooperation and effectiveness between operational areas. (Karlins et al, 1997, p. 324). This is what organizational development is intended to accomplish. The impact of an airlines management culture on that organizations safety subculture is critical to airlines. Statistics show that seventy percent of accidents and incidents are caused by crew errors. This number rises to above 90% if human error at the organization level is included (Amalberti et al., 1998 p. 36). In reviewing the literature, a great deal of information was available on safety and error management in regards to incidents and accidents occurring in flight. Management often takes a hit in these reports for being a significant contributing factor to accidents arising from a chain of human error activities. Just as the success of high performing organizations is usually attributed to the style and competence of senior management (particularly the CEO), so too are the safety culture and environmental conditions. In addition to managements deficiencies, the literature focuses on organization structure as well as the failure of communication that occurs between the different cultures and subcultures within 6

International Applied Business Research Conference the aviation and airline industry.

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The decision processes that led to the Space Shuttle Challenger disaster most dramatically exemplifies one particular dimension of the dual issues of managerial control and failed communications. In his article titled, Why Does the Pilot Sit at the Front? author David Weir (1996) warns against rigid barriers which inhibit communication in complex socio-technical systems. Most managerial systems operate in a degraded mode so that minor failures are in fact quite frequent within complex systems It is now well understood that socio-technical systems with especially rigid barriers which inhibit communication are inherently vulnerable to certain types of failure. The Challenger explosion, the sequence of events leading up to it and the existence of failures of comprehension between the engineers and managers responsible for making the final decisions about whether to fly or not to fly is an example of this (Weir, p. 5). And finally, mergers and acquisitions, which are an ever-present theme in the airline industry, rarely take place with prior due diligence being given to HR factors. The result is that few mergers in global aviation actually work. In fact, two thirds of mergers and acquisitions either destroy, or fail to create, shareholder value. The most oft cited reason is the failure of the merging organizations to pay enough attention to people factors in their due diligence and the subsequent failure to integrate organization cultures, says consultant, Michael Bell (OToole, 2000, p.106). Examples of failed consolidations are legion. Deltas absorption of Pan Ams Atlantic Division, US Airs difficulties with Piedmont, and Northwests problems with Republic are striking as they represent takeovers of airlines within the same country (Holloway, 1998, p. 272). Other examples include Canadian Airlines takeover by Air Can (having failed for a decade after having absorbed CPAir and numerous regional airlines) and American Airlines takeover of Reno Air. KLM and Alitalia were clearly incompatible. Likewise, Boeing 737 operatorsPiedmont and Cans Pacific Western had both operated as profitable companies until consolidatingafter which they struggled to survive (OToole, 2001,p.106). Successful organizations such as Duncan Aviation, Southwest Airlines, and Delta Airlines pay a great deal of attention to organization culture. These organizations plan and continuously develop a safety and customer-centric culture by creating a learning oriented and nimble workforce, with a sense of community, and the ability to respond to customer needs and change. As members of a service industry, such organizations employ an employee-centered (employees should be participative, empowered, committed and motivated) strategy in order to be far more customer-centric (aware of customer perceived value and customer perceived risk). In this context, a strong emphasis is placed on recruitment, selection, employee empowerment, succession planning, a hands-on management style and the organizational development function to address culture. The next closely related topic is education, training and development. Strategy and Operational Activities: Education, Training and Development One of the most striking features in the literature is the contrast between the unreserved importance allotted to education, training and development and the impoverished reality of the provision of training and development in the airline industry. Eaton (2001, p. 136), suggests, The stance taken by management on training and development is a useful yardstick for judging the quality of human resource management in a company. The airline industry annually spends tens of billions of dollars to acquire technology and training professionals to use that technology. And yet, the industry spends all too little on training staff how to compete and how to both generate and retain a loyal base of satisfied consumers. (Holloway, 1998, p.307). In the following discussion, the review of the literature will pivot around the lamentable state of the aviation industrys commitment to training and development and how various star airlines (Singapore Airlines, Southwest Airlines, and Duncan Aviation) use training to create a competitive edge. The reasons training and development, when properly executed, provide star airlines with a competitive advantage relate to issues of socialization and empowerment and how treating employees well translates into employees treating customers well. Another dimension of training, as a competitive edge, has to do with creating a learning environment and how this translates into employee and organization adaptability to change, growth and profitability. According to one Applied Human Factors working group (60 people), Company Resource Management requires systematic training that: (1) ensures that 7

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management at all levels is thoroughly trained in human factor; (2) promotes an organization culture that emphasizes indoctrination training; (3) invests in the tools and skills necessary to sustain an effective curriculum of operationally relevant human factors materials; (4) utilizes material that facilitates domain specific applications; and, (5) establishes the metrics needed to ascertain the effectiveness of training and subsequent change (Johnston and Marino,1996). According to the American Society for Training and Development (ASTD), seven out of the 2,500 organizations in its database stand out for their commitment to training. Southwest Airlines is one of these seven. The other six are Dow Chemical Company, Edward Jones, Great Plains, Lens Crafters Inc., Sears, Roebuck &Co., and South African Breweries. The training policies that make the seven companies so outstanding are that: one, train more employees and provide more hours of training; two, spend less per employee, but more as a percentage of payroll on training; three, rely more heavily on learning technologies and less on classroom training; four, spend a higher percent of their training budgets on technology; five, use more outside training providers; six, spend less on outside training providers; and seven, engage more often in human performance practices, such as compensation, work training, and human performance management practices. (Managing Training & Development, 2000) Socialization into Southwests culture begins with the new employees training at the University of PeopleSouthwests in-house training centerwhere 25,000 people a year receive training (Bunz and Maes, 1998). In addition to new employees receiving training, managers and executives undergo a two-day training session in Dallas in the Frontline Leadership program. First-time supervisors attend The Leading with Integrity Program; flight attendants attend the Customer-Care Training Program; and, pilots and other employees are kept trained in the most current performance standards (Bunz and Maes, 1998). Southwest also combines learning and customer care in an extremely effective way. Southwest maintains some 45 employees, in two departments, to respond to the 1,000 letters received weekly from customers. Some 1,500 hours per week are spent personalizing answers to each customers letter (Bunz and Maes, 1998). Such a policy provides an effective management awareness, employee monitoring, and customer feedback mechanism all in one. With such a learning mechanism in place, Southwest can correct problems, adapt to change, and develop new services rapidly. In a competitive industry this provides a definite advantage. Singapore Airlines, renowned in the industry for its customer service, also invests heavily in training. Fifteen percent of payroll goes to employee training compared to only 1.5 percent spent by U.S. airlines. Flight attendants at Singapore Airlines are trained for four months whereas the American industry standard is four weeks (Mycek, 2000, p. 17). When the manager of training at Singapore was asked how Singapore adjusted employee training during downturns in the economy, the manager replied that, The only thing that distinguishes us is our culture, our people. Why would we possibly cut that out just because we have a temporary economic downturn? (Mycek, 2000, p. 17) Duncan Aviation is another company that invests in employee training. In 2000, Duncan employees averaged 40 hours of training at a total cost of approximately $2 million. Training and funding included the following: the Karen Duncan Scholarships (up to 10 awarded annuallyworth $8,000 eachfor continuing education); a tuition assistance program for all employees; some tuition programs paid in full; on-going technical and skill training for all employees; and, reimbursement of flight training for all, even though flight training is not required for most jobs. In the next major section of this article, select audit findings, with corresponding tables and statistics in the respective appendices, are presented. II. Overview Of HRM Audit Findings An outstanding 100% of respondents answered yes, when asked in the organization development category of the audit, if their organizations believed in providing quality customer service to both internal and external customers. It would seem from such a response that internal marketing was an understood and fully embraced principle in all the airlines surveyed. Further scrutiny of other indicators of internal marketingrecruitment and selection, organization development, and education, training and developmentindicates the contrary. Instead, the findings of the audit indicate that the airlines surveyed showed more concern and expertise in calculating costs and 8

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communicating rules and regulations, than they did in learning about, and from employees (line, administrative, and management). Communicating information about the organizations mission and strategy and providing the necessary education and development to build a stronger workforce were also not strongly evidenced in the audit.

Select Audit Findings: Recruitment and Selection

Recruitment and SelectionObtaining and evaluating qualified candidates from internal and external sources for positions throughout the Organization. (McConnell)

There was an overwhelming consensus in the review of the literature that hiring the right people was one of the single most important issues in human resource management. Audit findings (see Appendix 1) do not contradict this but a number of discrepancies on hiring practices appeared in the findings. According to respondents, virtually all of the airlines in the survey answered yes to the question of whether their organizations attempts to fill positions internally before going to outside sources (Q.6). In spite of the unanimous policy of seeking internal candidates first, less than half of the respondents (Q.14) responded yes to there being a policy regarding promotions (40.00% answered no and the remaining13.33% answered not applicable). Another surprising finding was that less than half of all those who interviewed candidates received training in the types of questions and actions that are legal (Q.40), and even fewer (40%) received training in interviewing techniques (Q.41). On a more general note, the highest ranking sources cited for seeking external candidates (Q. 21) were employee recommendations (73.33%), followed by the Internet (71.43%), and fairly close behind, newspaper ads (66.67%). Interestingly, even though employee recommendations were the single highest source of external candidates, less than half (40%) of the respondents responded yes to the question of there being an employee referral program (Q. 22). Select Audit Findings: Organization Development

Organization DevelopmentImproving communication and understanding within the Organization in order to produce effective, functional management and employee teams; establishing or changing to a desired culture; responding to changing conditions; and analyzing and influencing Organization personnel, systems, structures, policies, and rewards to ensure synergy and maximize internal consistency. (McConnell)

The overwhelming consensus in the literature was that more than any other organization characteristic, an organizations culture was the key to a competitive advantage. However, consistent with other findings indicating low scores in the areas of communication, gathering of information, training and development, and employee input, the responses in the organization development section of the audit clearly signals problems in this area of organization life. While three-quarters (Q. 3) of respondents said their organizations had identified a desired culture, only half (Q. 2) had a person in HR continually monitoring trends and techniques of organization development. Not surprisingly, less than half (40%) of the respondents said there was a consistent culture throughout their organizations, and a shockingly low 20% said that their organizations had attained the desired culture! Opportunities to improve organization development appear to by bypassed by most organizations. Only 60% of the organizations in the audit appear to provide training for the improvement of team performance (Q. 40) and a mere 33.33% of respondents said training on change management was offered (Q.47). Not surprisingly, only one-third (Q. 20) of respondents said their organizations carried out surveys or analyses of organization culture and effectiveness. What is surprising is 9

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that in spite of all the above low scores, 100% of respondents said they believed their organizations provided quality customer service to both internal and external customers (Q.37). The enormous variance between this stated belief and the numerous indicators showing otherwise, illustrates an alarming disconnect between perception and practice in human resource management in these airlines surveyed.

Select Audit Findings: Education, Training and Development Education, Training, and DevelopmentProviding performance skills training and career development to employees, utilizing both internal and external resources, including providing expertise to assess education, training, and development needs and to identify high-potential employees. (McConnell)

In sharp contrast to the importance given to training and development in the literature, this is another area that appears under valued in real world application (Appendix 3). The efficacy of training and development programs does not appear to be well monitored. Less than half of the audits respondents said that training programs have clearly established and specific behavioral objectives (Q.7), and less than half also said that the results of training programs are continually monitored or evaluated (Q.9). More specifically, when asked how frequently the subject matter of training programs was reviewed for relevancy, respondents indicated none of the airlines reviewed their programs at least once a year, and a mere 7 percent appear to review their programs every one to three years. An alarming 60% said they reviewed such material only every three to five years or when requested by management (Q.12). On a more positive note, the respondents indicated that three-quarters of employees, and 100 percent of supervisors, identify specific training needs of employees. However, fewer than half of the respondents said employees were made aware of training programs (Q. 16) and only one quarter said that their organizations published a catalog of available organization training programs (Q.31). Even worse, of the one-quarter of airline companies who do publish a catalog, only 20% said the catalog was distributed throughout the organization (Q.32).

Summary and Discussion The most obvious conclusion to be drawn from the results of the audit is how poorly understood the concept of internal marketing is in the airline industry. Airlines cannot offer optimal service to external customers because they dont know their internal customers very well. According to the audit findings and the review of the literature, airline administrators via the literature and audit findings, appear to show little awareness of, and interest in, their own internal customers opinions and insights. Management also tends not to communicate many types of important information (with the exception of rules and regulations) to their internal customers (both supervisors and line personnel) and often do not provide sufficient internal services that would contribute to optimizing internal customer performance (e.g. training and development). The reason for this lies in the poor state of human resource management in the airline industry. Shareholders and managers should be aware of these deficiencies. In broad strokes, HRM weakness gleaned from the three categories of audit results are as follows. Overall scores in the recruitment and selection category were fairly good with the notable exception that in spite of the fact that employee recommendations were the single greatest source for external candidates, less than half of the organizations indicated having an employee referral program in place. There was also a low level of interest in surveying employees for their opinions and expectations. Organization development (culture) appears to be in the sorriest shape of all. Scores relating to consistency of organization culture throughout the organization, and level of attainment of desired culture, received surprisingly low scores. Generally low scores were found in the education, training and development category--particularly in regards to training in preparation for another position or the provision of information regarding available training programs. 10

International Applied Business Research Conference Customer Satisfaction and the Role of HRM

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While testing products and collecting data is relatively straightforward for companies involved in manufacturing packaged goods the opposite is true in a service business in which people buy an experience. (Lovelock & Wright, 2002 p.64) In this context, customer satisfaction, customer information and customer perceived value becomes critical. The US airline industry appears to be in trouble on this front. In a study by the Better Business Bureau, data indicates that consumer complaints more than doubled between 1995 and 1999.(Lovelock and Wright, 2002, p.123). According to the American Customer Satisfaction Index (ACSI), compared to four other industries (banks, stores, hotels, phone companies) between 1995 and 2000, airlines showed the sharpest deterioration in customer satisfaction. (Lovelock & Wright, pp. 123-124). In an article titled, Why Satisfied Customers Defect, researchers examined data from a 1994 survey conducted by J. D. Power. In their large-scale survey, Power gathered data from some 20,000 passengers who used the eight largest domestic American airlines and flew on 72 routes (Jones & Sasser, 1995, p. 92). Jones and Sasser examined the satisfaction-loyalty link by comparing the degree of competitiveness in 30 individual companies spread over five markets (local telephone, airlines, hospitals, personal computers, and automobiles). The data collected indicates that of the five markets, airline customers ranked second highest in loyalty. In spite of the relatively high degree of customer loyalty in the airline market, carriers on monopoly routes should take heed since even frequent flyer points will not stop dissatisfied customers from switching over to new lower-priced entrants (Jones and Sasser, 1995, p. 95). The sources of a customers dissatisfaction can be myriad. Numerous interactions between a customer and a service provider or machine are involved in producing an experience in which a customer will feel highly satisfied (i.e. delighted). In addition to interactions with humans and machines, the customers experience is also subject to variables beyond an airlines control. The best way to manage such service challenges, says Sir Colin Marshall, the Chairman of British Airways, is by creating an organization that excels in listening to its most valuable customers. In several key places in our organization, we have created customer advocates: in our brand-management organization, in our marketplace performance unit, and in our customer relations department. On the lattermost point, says Marshall, customer relations have been transformed from a defensive complaint department into a department of customer champions whose mission is to retain customers (Prokesch, 1995, p. 106). A conceptual tool that can help an organization to plan according to customer perceived value is to liken service delivery to a theatrical event. The customers experience of the service consists of a series of events that customers experience as a performance (Lovelock & Wright, 2002, p. 64). This experience is most visibly affected by an organizations contact personnel (actors) but can be equally affected by back office staff (back stage) as well. In response to the need to optimize work performance by line and administrative staff, service organizations are slowly adopting the philosophy of internal marketing. Broadly speaking, internal marketing may be understood to mean two interrelated concepts: one, that even employees and departments not having direct contact with external customers are still suppliers of something which adds value for internal customers, and thus indirectly for external customers as well; and two, internal marketing can be viewed as the use of traditional marketing techniques as communications devices to involve and motivate employees and gain their commitment to the corporate purpose (Holloway,1998, p. 170). The link between internal and external marketing is intimate. The link is the inextricable combination of motivation, productivity, professionalism and the ethics of employees. The themes now appearing on service organizations internal discussions are that of the role of the customer, new internal role models, new dimensions of quality and new quality standards (Normann, 2000, p.159). Improved service delivery, not price wars, may be the ticket out of the airline industrys competitive quagmire. The airline industrys competitive crisis in the US is rooted in the turbulence arising largely from deregulation in 1978. Airline managements were not adequately equipped with planning concepts, philosophies, and human resource processes to cope effectively with the fundamental changes that have taken place and that will continue to take place in the marketplace (Thomas, 1997, p.34). As the above review of the literature indicates, high performing airlines and aviation organizations are those that have implemented internal marketing and servant leadership strategies as leaders in effective HRM strategies.

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International Applied Business Research Conference Recommendations

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Airline administrators must make the connection between what their external customers value and how and why employees provide that value and more. The bridge linking customer value to employee performance is human resource management. High performing organizations invest heavily and deliberately on recruitment and selection, organization development, and education, training and development. The following recommendations are offered in the attempt to manage the overall aviation management problem in general and the ten human resource issues in particular: First, that airline administrators conduct audits of their respective organizations in order to ascertain the gaps between what they thought their airlines were doing and what they actually were doing. In other words, an audit constitutes both a reality check and a baseline from which to plan for the future. A second and related recommendation is that national and international regulatory bodies in civil aviation collaborate on formulating an airline-specific HRM audit that could be readily adapted and used by individual airlines. An opportunity exists here for researchers in the field of HRM to conduct additional audits on the airline industry. The third recommendation is that airlines appoint a person whose responsibility it is to conduct timely employee opinion surveys on the following functions presented within this article: recruitment, selection, diversity, equal employment opportunity, employee relations, labour relations, compensation / benefits, organizational development, education, training and development. The results of the surveys should also be communicated to employees. The fourth recommendation also deals with information gathering. Information should be gathered in respect to such industry and organization relevant items as those listed in the previous recommendation plus costs and employee productivity. These results should also be communicated to employees. The fifth recommendation is that the emphasis placed on communicating rules and regulations, and performance improvement and disciplinary procedures, be equaled or surpassed by the clear and ongoing communication to all employees of such things as the organizations mission, strategy, and desired culture. The sixth and final recommendation is that HR management training for managers and supervisors and organizational development be greatly expanded upon. In general, however, greater education and training are required in such areas as teamwork, change management, compensation/benefits, interviewing techniques, cultural diversity, communication skills and socialization into the organizations culture. HRM appears to be the optimum Rx.

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International Applied Business Research Conference References 1.

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2. 3. 4. 5. 6. 7. 8. 9.

10. 11. 12. 13. 14. 15. 16. 17.

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Amalberti, R., Paries, J., Valot, C. and Wibaux, F. 1998, Human Factors in Aviation: An Introductory Course, in Goeters, K. M. (ed.), Aviation Psychology: A Science and a Profession. Aldershot, UK: Ashgate Publishing Ltd., 19-41. American Airlines Sharing Wealth with Employees, (1997), Journal of Commerce, March 14, Industry and Business, Responsive Databases Services Inc. American Airlines Joins Trend by Offering Computers to Workers, (2000), Dallas Morning News, March 2, Business and Industry, Responsive Database Services Inc. Appelbaum, S.H. (2001), Course Syllabus, Human Resource Management. Course designation number, AMBA624. Spring, John Molson School of Business, Concordia University, Montreal. Benoff, B. (2001), Hiring the Right Technician, Business & Commercial Aviation, Vol. 89, No. 6, LexisNexis, Reed Elsevier. Bunz, U. K. & Maes, J. D. (1998), Learning Excellence: Southwest Airlines Approach, Managing Service Quality, Vol. 8, No.3, pp. 163-169, Emerald, MCB UP Ltd. .Cook, J. (2000), My Soul, Its the New Company Store: More than Coffee Perks in Tight Job Market, Seattle Post-Intelligencer, March 8, Lexis-Nexis, Reed Elsevier. Compensation & Benefits News, (2000), HR Focus, May, Lexis-Nexis, Reed Elsevier Czaplewski, A. J., Fersuon, J. M. & Milliman, J. F. (2001), Southwest Airlines: How Internal Marketing Pilots Success, MM, September/October, ProQuest, ProQuest Information and Learning Company. Pp.1417 Eaton, J. (2001), Globalization and Human Resource in the Airline Industry, 2nd ed. Ashgate Publishing Ltd., Aldershot, UK. Ellis, K. (2001), Vice President of People, Southwest Airlines, Training, January, Vol.50, ProQuest, ProQuest Information and Learning Company. pp. 46-48. Employeesavings.com to Outfit the Spiegel Groups Employees with Web-based Work/Life Solutions, (2000), Business Wire, June 20, Lexis-Nexis, Reed Elsevier. Falter, J. (2000), The Company as Family: Perceived Strengths of Duncan Aviation, PhD Dissertation, University of Nebraska, Lincoln Nebraska. Female Workers, Attorney Claim FAA Workplace is Sexist,(2002), Federal Human Resources Week, Vol. 8, No. 3, February 4, Lexis-Nexis, Reed Elsevier. Fitzgerald, K. (2001), Diversity Turns Airline Around: Continental Rebound has Roots in Programs to Hire, Keep Minorities, Advertising Age, February 19, p. s6. Flaum, D. (2002), Memphis Companies Limit Sale of Stock, Too: But Employees Get Choices if Not Shares, The Commercial Appeal, January 27, C1, Lexis-Nexis, Reed Elsevier. Goeters, K. M. (ed.), (1995), Psychological Evaluation of Pilots: The Present Regulations and Arguments for Their Application, in Johnston, N., Fuller, R. and McDonalds, N. (eds.), Aviation Psychology: Training and Selection, Ashgate Publishing Ltd., Aldershot, UK, pp. 149-156. Good, W. A., (1999), Intellectual Capital and Wealth Creation: A Case Study of Total Quality Management at a Large Cargo Aircraft Operator, PhD dissertation, Colorado Technical University, Denver, Colorado. Hedge, J. W., Bruskiewicz, K. T., Borman, W. C., & Hanson, M. A. (2000), Selecting Pilots with Crew Resource Management Skills, International Journal Aviation Psychology, Vol. 10, No. 4, pp. 377-392. Hendersen, Danna K. (1995), The Drive for Diversity, Air Transport World, Vol. 9, Lexis-Nexis, Reed Elsevier. Holloway, S. (1998), Changing Planes: A Strategic Management Perspective on an Industry in Transition: Volume One: Situation Analysis. Aldershot: Ashgate Publishing Ltd. Johnson, A. H. (2001), Workbrain Automates Employee Management: Its Software Tracks Time and Attendance and Automates Human Resources Activity, Computerworld, August 6, Lexis-Nexis, Reed Elsevier. Johnston, N. and Marino, D. E., (1996), Applied Human Factors Training Workshop Report, in Hayward, Brent J. and Lowe, Andrew R. (eds.), Applied Aviation Psychology: Achievement, Change and Challenge: Proceedings of the Third Australian Aviation Psychology Symposium, Australian Aviation Psychology Association, Ashgate Publishing Ltd., Aldershot, UK. 13

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23. Jones, T. O. and Sasser, W. E. Jr. (1995), Why Satisfied Customers Defect, Harvard Business Review, November-December (Reprint 95606), pp. 88-99. Karlins, M., K., F., McCully, L., & Chan, C. T. (1997), Expanding Teamwork Beyond the Cockpit Door: An Integrative Program (OASIS) for Pilots, Cabin Crew, Station Managers/Traffic and Ground Engineers, in Telfer, R. A. and Moore, Phillip J. (eds.), Aviation Training: Learners, Instruction and Organization, Avebury Aviation, Aldershot, UK. Laszlo, G. P. (1999), Southwest Airlines Living Total Quality in a Service Organization, Managing Service Quality, Vol. 9, No.2, pp. 1-5, Emerald, MCB UP Ltd. Lowe, J. (1995), High Adventure to Safe Sectors Developing the Professional Commercial Pilot, in Commercial Pilot Selection and Training The Next Ten Years: Proceedings of the Conference, 10 October 1995, London Aeronautical Society, London UK (A96-19827 04-53), pp. 9.1-9.9. Lovelock, C. and Wright L. (2002), The Dramaturgy of Service Delivery, in Principles of Service Delivery, 2nd ed., Prentice-Hall, Upper Saddle River, New Jersey, pp. 64-69. Management Needs to Focus on Effective Employee Rewards, (2001), Commuter/Regional Airline News, June 11, pp. 19, 23, Lexis-Nexis, Reed Elsevier. Mechanics at Western Pacific Airlines Vote to Join Teamsters Union, (1996), Gazette Telegraph, 29 May, Industry and Business, Responsive Database Services Inc. Managing a Multicultural Workforce, (2001), Black Enterprise, July, Lexis-Nexis Milliman, J., Ferguson, J., Tricket, D & Condemi, B. (2000),Spirit and Community at Southwest Airlines: An Investigation of a Spiritual Values-Based Model, Journal of Organization Change Management, Vol. 12, No. 3, pp. 221-233, Emerald, MCB UP Ltd. .Monfries, M. and M. & Moore, P. J. (1996), Human Resource Management: An Interpersonal Skills Approach, in Hayward, B. J. & Lowe, A. R. (eds.), Applied Aviation Psychology: Achievement, Change and Challenge: Proceedings of the Third Australian Aviation Psychology Symposium, Australian Aviation Psychology Association, Ashgate Publishing, Aldershot, UK. McKinney, K. (2001), Same-Sex Insurance Offered, The Pantagraph, August 31, p. A1. McKinsey & Co., (1998), The Labor Lever, Airline Business, vol.16 (January), pp. 16-20. Mycek, S. (2000), Rolling Out the Red Carpet for Employees: Investing in Health Cares Greatest Asset, Trustee, Vol.17 (February), pp. 16-18, 20, 22, ProQuest, ProQuest Information and Learning Company. Normann, R. 2000, Image, in Service Management: Strategy and Leadership in Service Business, 3rd ed., John Wiley and Sons, pp. 149-160. Olson, S. (2001), Cinergy Employees Embrace PC Benefit: 80 Percent Take Perk, Receive Free Computers, August 20, p. 28A, Lexis-Nexis, Reed Elsevier OToole, K. (1999), The King of Low-Cost, Airline Business, Lexis-Nexis, Reed Elsevier. OToole, K, (2001), Time to Invest in Human Assets, Airline Business, April, Lexis-Nexis Reed Elsevier. OToole, K, (2000b), Aboard the Management Express, Airline Business, April. Lexis-Nexis Reed Elsevier. OToole, K., (2000), Buyer Beware of the Human Element, Airline Business, July, Lexis-Nexis, Reed Elsevier. PeoplePC Selected by Cinergy Corp. to Offer Employees Affordable Home Computer and Internet Access, (2001), Business Wire, March 27, Lexis-Nexis, Reed Elsevier. Pinkham, R. (2001), Bringing Delta Home, Airline Business, March, Lexis-Nexis, Reed Elsevier. Prokesch, S. E. (1995), Competing on Customer Service: An Interview with British Airways Sir Colin Marshall, Harvard Business Review, November-December (Reprint 95607), pp. 100-112. Seal, J. & Kleiner, B. H. (1999), Managing Human Behavior in the Airline Industry, Management Research News, vol. 22, no. 2/3, Lexis-Nexis, Reed Elsevier. Shifrin, C. (2001), Still Delivering, Airline Business, Vol.74 (April), Lexis-Nexis, Reed Elsevier Tenet Names Anthony L. Austin to New Position of Senior Vice President, Human Resources Operations, (2001), Business Wire, September 26, Lexis-Nexis, Reed Elsevier. Thomas, M. L. (1997), A Portfolio Management Approach to Strategic Airline Planning: An Exploratory Investigative Study on Services Management, European University Studies, Series V-Economics and Management, Peter Lang AG, Berne. Your Training Depts Critical Role in the War for Talent (2000), Managing Training and Development, 3 (October), Lexis-Nexis, Reed Elsevier. 14

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51. US Airway to Give Benefits to Domestic Partners, (1999), Pittsburgh Post-Gazette, August 10, Business and Industry. Responsive Database Services Inc. 52. Weir, D. T. H. 1996 Why Does the Pilot Sit at the Front? Or: What You See Isnt What You Get, Necessarily?, Disaster Prevention and Management, vol. 5, no. 3, pp. 24-31, Emerald, MCB UP Ltd.

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International Applied Business Research Conference Appendix 1 Recruitment And Selection Number Question Out of a Total of 62 Questions.
3 5 Does authorization for hiring a new employee require a position description? Does authorization for hiring a new employee require a statement of the positions specific requirements (competencies, education, experience, and skills, both technical and special)? Is an attempt made to fill positions from within the Organization prior to obtaining candidates from outside the Organization? Does your Organization have a policy regarding promotions? If your answer to the previous question was yes, has that policy been communicated to all employees? What sources are used for external candidates? [Choices: internet, search firms, employment agencies, schools, consultants, newspaper ads, professional journal ads, professional associations, employee recommendations, job fairs, outplacement firms, downsizing/relocating employers, organization publications, organization marquees and signs, other.] Does the organization have an employee referral program? Are any measurement devices such as tests used? [Choices are yes, no, sometimes, n/a] If your answer to the previous question was yes or sometimes, are such devices based on an analysis of the job? If your answer to Question 34 was yes or sometimes, have such measurement devices been professionally validated? Have all people who interview candidates been trained in the types of questions and actions that are legal? Have all people who interview candidates been trained in interviewing techniques? Are all position requirements based on an analysis of the job? Does your Organization require drug testing? Is there an individual within the human resources department accountable for the entire selection and recruitment programs?

Acapulco, Mexico 2003 Yes, No, N/A (or other as indicated in the question box) %
86.67, 6.67, 6.67 86.67, 6.67, 6.67

6 14 16 21

93.33, 0.00, 6.67 46.67, 40.00, 13.33 33.33, 0.00, 66.67 71.43, 46.67, 53.33, 40.00, 26.67, 66.67, 33.33, 26.67, 73.33, 33.33, 26.67, 13.33, 13.33, 0.00, 6.67

22 34 35 36 40 41 43 47 58

40.00, 53.33, 6.67 40.00, 6.67, 46.67, 6.67 73.33, 6.67, 13.33 53.33, 26.67, 20.00 46.67, 46.67, 6.67 40.00, 53.33, 6.67 86.67, 6.67, 6.67 33.33, 60.00, 6.67 86.67, 6.67, 6.67

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International Applied Business Research Conference

Number Out of a Total of 51 Questions. 1 Question

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Yes, No, N/A (or other as indicated in the question box) % 60.00, 26.67, 13.33

Appendix 2 Select Audit Findings: Education, Training And Development

4 5 7 9

12

13

14

15 16 23 29 31 32 44

45

Is there an individual within the human resources department accountable for the Organizations entire education, training, and development activities? Who initiates requests for employee training? [Choices: employee, employees supervisor, manager of employees supervisor, senior manager in the employees department, senior human resources manager, human resources manager accountable for training, an external consultant, other.] Is training available for employees desiring to prepare for other positions within the Organization? Is management or supervisory training available? Do all training programs have clearly established and specific behavioral objectives? Whether there are training program behavioral objectives or not, are the results of training programs continually monitored and evaluated? How often is the subject matter of training programs reviewed to determine relevancy and currentness? [at least once a year; every one to three years; every three to five years; when requested by management; when there appears to have been a change in the subject matter; when results of the training are not as planned; never] Who identifies the specific training needs of an employee? Choice of up to three. [Employee, employees supervisor, manager of employees supervisor, senior manager in the employees department, senior human resources manager, human resources manager accountable for training, an external consultant, other] How are training needs identified? [Choices: performance to job standards, performance reviews, changes in job content, assessment program, promotion, individual employee development objectives, other] Are the Organizations managers made aware of available training programs? Are employees made aware of available training programs? Are the people who deliver training required to have training skills? Are the costs of training charged back to the departments of employees who have been trained? [Choices: yes, no, sometimes, n/a] Is a catalog of available Organization training programs published? If your answer to the previous question was yes, is the catalog distributed throughout the Organization? Is there an individual with the human resources department who is available to assist employees in preparing and implementing their development plans? Does the Organization offer a tuition reimbursement program?

73.33, 93.33, 53.33, 80.00, 33.33, 46.67, 0.00, 0.00

73.33, 33.33, 13.33 73.33, 13.33, 13.33 40.00, 46.67, 13.33 46.67, 40.00, 20.00

0.00, 6.67, 60.00, 60.00, 20.00, 6.67,0.00

73.33, 100.00, 46.67, 26.67,33.33, 26.67, 0.00, 0.00

80.00, 53.33, 80.00, 33.33, 33.33, 53,33, 6.67

80.00, 6.67, 13.33 46.67, 40.00, 13.33 73.33, 6.67, 20.00 46.67, 13.33, 26.67, 13.33 26.67, 60.00, 13.33 20.00, 20.00, 60.00 66.67, 20.00, 13.33

53.33, 26.67, 20.00

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International Applied Business Research Conference Appendix 3 Select Audit Findings: Organization Development
Number Out of a Total of 52 Questions. Question

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Yes, No, N/A (or other as indicated in the question box) %

1 2 3 5 6 7 12 15 16 20 22 36 37 38 47 49

Is there an individual within the human resources department accountable for coordinating the Organization development activities of the Organization? Does an individual within the human resources department continually review current trends and techniques of Organization development? Has the Organization identified a desired culture? If your answer to Question 3 was yes, has it been communicated to the Organizations managers? Is there a consistent culture throughout the Organization? Has the Organization attained its desired culture? Is there a consistent Organization structure throughout the Organization? Is Organization development considerations a part of the Organizations strategic planning process? Is Organization development considerations a part of the Organizations tactical planning process? Are surveys and analyses of the Organizations culture and its effectiveness conducted? Is training provided for managers and supervisors in Organization effectiveness? Have departments been encouraged to identify their internal and external customers? Does the Organization believe in providing quality customer service to both internal and external customers? Have employees been provided training in improving the quality of customer service? Is training offered to employees in how to deal positively with change? Is training provided for the improvement of team performance?

60.00, 40.00 53.33, 46.67 73.33, 26.67 60.00, 6.67, 33.33 40.00, 60.00 20.00, 80.00 53.33, 40.00, 6.67 53.33, 40.00, 6.67 66.67, 33.33 33.33, 66.67 66.67, 33.33 93.33, 6.67 100, 0.00 86.67, 13.33 33.33, 66.67 60.00, 40.00

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