Strategic Management in the Airline Industry


The professionals from HR background are placed in a unique way for helping the present leadership trends that produces the gen next leaders. This can be done by the establishment of branded leadership, analyzing the gaps between the current leadership and the established brand, and finally the investment for the leaders in future. "Source: Ulrich, D., & Brockbank, W. (2005). The HR value proposition. Boston: Harvard Business School Press.

A leadership that is capable of any work and that acts proactively are enough for the establishment of strategic functions of HR. For aligning the roles, priorities and the objectives of the HR professionals in all levels, they should understand the requirements of the business in proper manner. According to the performed research, three roles are played by the professionals. They are:

Strategic partner/change agent

Administrative expert

Employee champion.

The Strategic HR planning tool clearly states that, if the alignment between the HR and the business is close enough then the response at the company and the ability for adapting to the needs of the client gets much better. Thus, maintaining the advantages competitively. Business strategies can be successfully promoted by conducting an elaborated exam of the workforce culture, competencies and the behaviour. HR roles are

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Develop a plan to achieve and promote the behaviour

Maintain the culture and the competencies to reach the goals.

Competitive Advantage

Now-a-days HRM is playing a strategic role in the business market by aspiring at helping the achievement of assuring organization's competitive advantage and organization's mission, instead of being supportive. This goal is to convert strategies into actions and designing practices in order to adjust with business strategy. In order to accomplish its strategies and to execute it substantially HR professionals have increased the capacity of the business, by carrying out this role. This role not only helps organizations in executing strategies well, but it also focuses on elucidating their priorities, goals and objectives and missions. (Thompkins, 2002, p. 97).Managers role should be very much clear. He should associate strategic objectives and should lay organization's human resources to execute the declared mission.The approach of excercising performance management helps organization to idenitify each aspect within the process and act upon, stated by Thompkins. (2002, p. 98). Day-to-day tracking statistics of each employee is an example of this, which turns in at month end at some departments or companies. This helps organizations to have a look on the production of the employees and to check if they are really working for accomplishing the wanted results. Thompskins also says that the employees "tend to move away from choice of performance measures, goal statements and the performance to those targets that are very easy to achieve, but they really improve the company's performance" (2002, p. 100). Therefore, supervising the performances of the employees regularly, activities and the results are synchronised to the strategies will be a good move for management.

Equal Opportunities and Diversity

Larger an organisation more will be the opportunities at hand; both for the workforce (in terms of growth) and the management in terms of expansion. Now comes the question of diversity. Encouraging diverse work force enhances the organisational capabilities to tap potential resources (this is due available mutli talented employees). The available diverse workforce can in turn cash on the ample opportunities available at the organisation thereby blending their individual goals with that of the organisation. This is also one of the goals of strategic management and it reads out as enhancing the performance of the business, and craft a culture that revolves innovation, diversity flexibility and reliability.

Business Ethics and SHRM

In this modern society where abstractions have adopted the way to equivocalness and tolerance, standards, morals, ethics and values have become more and more composite. This will affect managers in HR, where decisions are going to affect future employment and people's jobs. In spite of these moral perceptiveness of human resource management (HRM), in business there is a well-built practice that states that the businesses must not be apprehensive with the morals. Every organization's primary concern is in seeking the best possible returns on any investments. Any deviations in this direction will extend to corruption of finely balanced system. In Short-term goals in may be noted that these goals can be attained through hook or crook, whereas a Long term business will last good if the standards are asserted. Businesses which possess ethical values brings a promising realm of growth as well as eradicate buyer/seller conspiracies, indisciplinaries states, poverty, which directly impacts the business growth within the community at the long run.

Impact of National Cultural Difference on Business Performance

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In this drastically changing world of people, technology and culture, it has become a great deal for the organizations to rethink on their existing HR policy placed and sync it with the current trend.

The idea is to develop a realm of team work which includes people from diverse areas and communities i.e. multicultural to contribute for a process and be appreciated within the same society. The term "Multicultural" as defined by Oxford Dictionary as the mixture of people from diverse areas who vary in their behaviour, knowledge, language, skill, culture etc... (Oxford Dictionary, 7th Edition, 2005). The diversity can be elaborated as in terms of their understanding, nature, inner ability, religion, spiritual statures, class etc.....)Kelli A. Green, 2002). Working in a multicultural environment imply exchanging ideas and work among the people who are variant in terms of their religion, status, ethnicity, gender and the concept of managing such multicultural practices require focus on bringing ideas together and identify changing mindsets between them; on the whole ensuring organizational culture and ethics.

It works based on a strategy which contributes to the vision and goals of the organization to bring productivity, profit and ethics. The essentials of performing such multicultural help fostering qualities which enhance people to get into more awareness, intuit, learning curve, recognition among people within the team (Karunakaran, 2009). Culture and ethics play an impactful role in the global economy, as it make a lots of difference in people to overcome obstacles with respect to diversities in people but in turn, upbringing qualitative things out from the people (Black Enterprise, 2001). Rosen and Digh strongly opposing discretions in society says that literacy towards Cultural aspects is an important factor that should be known to everyone, importantly, people who drive business.

To handle teams, markets and multicultural situations leadership should absorb cultural literacy according to them. It adverts to a right understanding and blending of cultural differences. Business leader has to consider its shortcomings along with the strengths while evaluating one's own cultural heritage. And she/he should be an 'inquisitor', someone who can look outside of his own culture for business resources and opportunities. 'Respectful modernizer' who hold better of one's culture whilst using the resources and wisdom of others in order to modernize for future.

Strategic Management and the Airline Industry

The Airline industry is not in proper condition currently. The three important factors for operational and administrative functions specifically for the organizations like customer service are:

Commitment from the management

Focus on the customers

Involvement of the employees

A workforce can be unified by the image of the organizations culture. In Virgin Atlantic Airline, the innovation of the in-flight services, young enthusiastic customer contacts, helps in communicating the entertainment and the light-hearted corporate image. The airline cultural rifts among the airlines are intrinsic to the global and multi faced industry. Various groups within an organization might act as various tribes that result to a conflict within. "If the beliefs/behaviours of one group are not matching with the thought process of another group, the outcome generally will be aggression between the groups internally instead of a healthy teamwork."

Airbus is familiar that is the people who propose the models, manufactures, trades and supports the airplanes. At the heart of Airbus there lies a core of human idea; talent and the effort that always place the industry in the front position. Airbus makes sure of hiring minimum 20percent of women graduates.

Family Ties

Airbus planning is dependent on some factors that supports in enhancing and improving the performance, the employees show commitment to their work, produce good quality in order to preserve the position of the industry. Talent plays a vital role and also acts as an important factor. Airbus recruits all the people throughout the world who carries good talent. Airbus spends lot of money and time in coaching the people recruited. In order to handle the recede and flow a company should have compliance.

Listening to Employees

To achieve the aims and objectives; and to be at the top position Airbus needs a very well-built management system. The company always supports liability and dependability in terms of responsibility. One of the important aims of Airbus is to provide safety and security to its customers and to implement environment friendly aircrafts. Airbus communicates in between the employees and the companies as it plays main role in achieving the success. At the European level public discussion occurs in the European Committee Airbus that consists of employees and their legislative bodies.

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Airbus has launched a special field as the Awards for Excellence which is to motivate the employees, to appreciate their effort in growing as a team and moving ahead to attain success. Airbus has also introduced many incentive pay proposal depending on the performance of each individual. Airbus employees have zeal towards their work and pride in manufacturing the aircraft that ultimately lead to success of an industry.

Macro Environment - The Airbus meets the unseen challenges head on

In such a fast growing competitive market, time and quality are the highest paid values for the industry. The major reasons of organizations loosing revenues are due to improper scrutinyzing these factors. In this scenario, customers are not ready to pay, infact, penalise in situations where deliveries are not done on time or any inconvenience casued serving the needs. Hence, airbus has to look into these factors by improving their technical and monitoring aspects round the clock.

Innovative Services

The Airbus blends its global expertise in Oder to operate at an optimum efficiency level. It uses the latest and high end technologies to implement e - solutions .This is an added advantage to its customers. One of them is AirN@v.This tool is in the nature of a consultation tool for Airbus. It has all the important manuals regarding technical issues and this the customer can distribute without any hassles internally

Ongoing Support

At Airbus certain maintenance programs offer excellent solution for minimising the cost of maintenance.

Additionally apart from in house training, it has also signed an agreement with CAE.The details of this agreement include a certified Airbus training program which can be availed by other airlines to train their own aspiring pilots. Ratings from suppliers are taken very seriously and worked upon to increase the quality of service. (Airbus)

The Boeing

Boeing has a strong customer base in 145 countries and an exceptionally talented workforce operation from about 60 countries. Their current sales reports highlight the following

80% Europe

90% Asia

50% Domestic.

It also offers planes to the defence system. But this constitutes a very small number.

Employees: the lifeblood of Boeing

Boeing lays very strong emphasis on maintaining a strong work force. It also believes that an organisation should have a very strong code of ethics. The CEO of Boeing Frank Shrontz" says "To ensure our continued success, we support our most critical resource: the people of Boeing" It rests on the principles of recognising the potntial and talent of its people, ensuring job security on the basis of performance and builds on the concepts of encouragingteam spirit. The organisation is in continual strive for perfection and quality.This it believes comes from its strong work force base.

How it strives to implement a healthy work environment

The Boeing has introduced and implemented a new training program. This lays stress on ethical aspects of an organisation keeping in mind the employees. This training program mainly highlighted the on answerability and taking responsibility. The Boeing Rudman report released in 2003 gave 16 recommendations on how to improve and enhance the ethical environment at the workplace and primarily focussed on recruitment training a staffing

The Boeing has a strong value system and says that a challenging completive environment does hot have to be hurdle ones growth prospects. The Boeing's corporate social responsibility highlights the volunteering activity undertaken by it to expand its employees skill set and perspective .For example The Boeing encourages its employees to practice and learn leadership activities even though its current job does not require it. Eliza Thompson, a semi-finalist for this year's Boeing Exceptional Volunteer Service Award says. "It's taught me a lot about inspiring and enabling people," she said of her experience leading more than 900 Boeing employees in the annual Rebuilding Together-St. Louis home renovation event. Another employee says :"One Boeing': When employees focus on the needs of their communities, the lines between business units, legacy programs, projects and sites begin to blur and we actually demonstrate 'One Boeing.' And that is good for our communities, our employees and our company"

In the context of Macro environment the Boeing has done well by meeting the challenges in the aviation industry. Bearing mind its long terms goals in terms of enhancement and productivity the Boeing is well equipped with a multiyear strategy for technology. This has been done to increase its R&D capabilities to keep ahead of competition and at the same time not letting its investments drain out.

Though the Boeing values an ethical code of conduct at the work place, it has failed to strategically allign its business goals along with its employee's potentiality or personal code of conduct. This has resulted in certain malpractices on the shop floor and has tarnished its image one such instance is

A Case of fraud by the Boeing employees were brought to light in the year 1984.It was regarding a 5.9$ million contract with National park. It was regarding inappropriate use of classified documents.

In the second case an employee was convicted. It was related to processing the legal documents of Pentagon. In terms of a macro environment situation Boeing's status is as follows:

Boeing was actually on the verge of getting the deals. It was expanding in order to contend in different market segments. In order to take a break between twelve to twenty years, the 777 project was proposed. If the 777 model would have failed, Boeing certainly would have faced confrontations in acquiring money or profits in future as 777 costs were already dashed out. This could have become the problem for the future development programmes for the aircrafts. Another situation is

Boeing was forced to decrease the costs of its aircraft's from a predicted value of $130 million in the year1995 as the result of huge competition. Airline travel was also falling down as a result of a huge war between the gulf countries like Iraq and Kuwait. So the future predictions of the airline travel were deteriorating.

The above throws light on the ineffectiveness of Boeing to be able to adapt success fully to the changing Macro environment.