Managing Human Capital - Air Malta

LITERATURE REVIEW

Relevant models, approach of company to the management of its human resources

According to Birasnav, Rangnekar and Dalpati, (2011) human resources are treated as one of the imperative part for every business organisation ; the term deals with issues related with people, i.e. compensation & benefits, performance management, recruitment and selection, training and developing organisational cultural. Multinational business associations are tend to manage their human resources for this they applied several models and theories. The present assignment is based upon Air Malta, its a airline service provider company by having 8 fleet size. The organisation serve its services on three prime destinations, i.e. Middle East, Europe and North Africa. Air Malta had since opened a number of new routes, including Tunis, Manchester, Malaga, Comiso, Kiev, Lisbon, Casablanca, Southend, Cagliari and Frankfurt. In order to accomplish all these activities in the best possible manner, HR professionals are required to manage entire workforce in an effective manner.

Relevant models of HRM which is best suited to organisation:-

Strategic management – With the viewpoint of Bounfour and Edvinsson, (2012) making improvements in bottom line of the company with knowledge of how human resources reflects company' success is the main role of HR. In this process, leaders with great experience of strategic management can participate and improves corporate decision making process of the company. It also lays down existing staff requirements and make projections for future requirements of workforce that is based upon demand of the company.

Safety and Risk management - It is main responsibility of HR manager is to render safe working conditions to employees as they can work freely. Workplace safety and risk management specialists in business associations tries to manage appropriate work logs and data as well as formulate strategies in order to reduce the number of various fatalities and injuries that can occurs at workplace. Along with this, they also engage staff members to promote awareness regarding safely handling of dicey machineries and hazardous chemicals.

HRM policies decisions - Any HRM strategy will be successful when entire HR department is concentrate towards developing effective strategies and policies which can ensure future future market growth of the company. In Air Malta, HR mangers develop policies and strategies by considering mission statement to become one of the popular airline service provider company over the world (Bratton and Gold, 2012). At this, recruitment and selection also should be done in an appropriate manner. Behind this, the prime goal is to implement an actual environment that is based upon strategic policies and plans.

Organisational outcomes – This aspects is linked with the outcome which comes from value of the firm which gives to staff members. The HR manager of Air Malta states that people are values for the company and wants to gain deliver in return; this situation can be applied in organisation in which policies are being made by keeping in mind individuals needs and wants and improving their knowledge at the time of working.

Another Model of HRM

Approaches of human resource management: -

Recruitment and selection – It is one of the imperative part of human capital management which helps in fulfilling the requirement of employees for a specific job role. Boxall and Purcell, (2011) stated that recruitment is defined as searching and obtaining a large pool of candidates who have desired knowledge and experience; it allows management to select the best one to carry through appropriate people. Although, acquiring best people at workplace, helps Air Malta to sustain competitive edge whereas inefficient recruitment and selection leads enormous disruption and eradicated productivity, interruptions in operations etc.

Training and development – It is another major approach of human resource management which tend towards boom up individuals skill and knowledge level by organising various learning sessions. Training and development is is a subsystem of an association and centre function of HRM. It guarantees to make consistent aptitude improvement of representatives who are working in an association and habituates procedure of learning for creating information to work. Along with this, learning activities are conducted in order to better bettering execution of people and gatherings in authoritative settings. It has been known by a few names, including worker improvement, human asset advancement, and learning and advancement.

Compensation and benefits – Usually, companies acquire economic and non-economic policies so as to inspire and encourage their employees as they can do all tasks in the best possible manner. According to Buller and McEvoy, (2012) by giving higher compensation or remunerations, staff members feel more appreciated or rewarded. In Air Malta, HR manager of the firm decides compensation policy as it is based upon employee contribution over the year. Now, the prime focus of managers is to recognise the impact of wages on labour costs and develop the linkage between performance and pays.

Recruitment and selection in relation to strategic human resource initiatives and provide necessary recommendations on the same

In this competitive aura, hiring effective workforce is become one of the major goal of every business as it helps it in gaining high cutting edge. Thus, firms are tend towards acquiring approaches of recruitment and selection. In which, recruitment is the process of determining largest pool of applicants by providing greatest opportunities to people who selected for fulfilling vacant roles within organisation. With the view point of Coff and Kryscynski, (2011) before recruiting and selecting people for new or current position, it is essential for HR managers to put some time in collecting information towards the nature of job roles and organise an analysis for the same. It helps in hiring suitable for the position.

Apart from this, in selection candidates are being identified through hiring procedure, then the most suitable or befitted individual has been selected by interviewing, reference checking and testing. The prime motive of selection is to make sure that the hired person have capabilities to perform all roles and responsibilities which are assigned to him or her in the most effective and fair manner. Although, the recruitment and selection strategy of Air Malta focuses that supply meet demand requirements in order to increases effectiveness or potentials of the company in a certain time period.

Following is defined recruitment and selection process of Air Malta: -

The mentioned firm, Air Malta is hiring employees through internal and external sources. In UK, there is wide range of airline companies by this the HR manager of the company enlisted staff members who are linked with different job portals. In addition, sourcing can be done by online advertisings and further career sites. The next stage is to track applicants and assessing their skills via reviewing resumes (Guest, 2011). Due to technological advancement, Air Malta has acquired Applicant tracking system so as to review applicants. Employer or employment specialist of the company have rights to use these sites and find out well skilled or qualified employees. Due to strong brand image, name and fame there will be several future references. Human resource management always motivate people who comes into a group. In airlines industry, several posts are vacant, i.e. floor manager, ticket executives, ticketing executives and ground handling manager etc. In order to fill these profiles, management should evaluate applications of local people as they have better knowledge about customers' taste and preferences.

As a multinational firm, Air Malta uses online recruiting channels where it provides information about vacant position in different areas or regions of Malta. According to Gutiérrez, Hilborn and Defeo, (2011) the organisation also has several subsidiaries by having strategic alliances and joint ventures in different areas. Individuals send their CV to the firm and the best one will be selected among all other alternatives.

Therefore, the airline company is following fair and equal approach of recruitment and selection as this will provide better opportunities to people who have applied for the vacant position. In addition to this, the firm should also provide information or data about vacant via online websites and social media channels. Through this, people will easily applied for the profile; it saves their time and costs. It boom up efficiency of overall management in respect of selecting people over the nation.

Training and development – Jiang and et. al., (2012) signifies that after selecting employees, firm provides training and development activities to people as they can perform in well being manner. Due to lack of proper learning, employees unable to perform any specific task and it also has an adverse impact on recruitment process. In this relation, Air Malta has organised three month training programme in order to improve skills of people in specific areas. It supports them to create effective plans and strategies for future concern.

Recommendations – Following are the main suggestions which has been provided to company so as to make improvements in its recruitment and selection process: -

• It is essential for Air Malta to promote and transferring employees at upper level on the basis of their performance level. Promotion supports to motivate employees as they can inspire and work with more enthusiasm. Apart from this, the firm also shifts employee from one to another job as well as in different departments. It supports to reduce scrutiny costs and time as they can expand the area of other activities which are linked with recruiting staff members.
• Another way of recruiting employees can be acquired by company is Forming employees. Actually, former employees are those individuals who have left their job and can be hired on the basis of their past performance. As by the opinion of Leitch, McMullan and Harrison, (2013) hiring such employees help in gaining high competitive edge to the firm as it reduces need of induction programmes because employees are already aware about products and services of the company.
• Company can also hire college going students because youngsters have great potentials to work any task in the best possible manner. This motivates students to learn new things while studying which improves their practical knowledge as well.

Discuss approaches used by Air Malta and how this could be improved

In business organisations, there is need of personnel management because now firms are tend to expand their firms. Hence, it increases demand of workforce at workplace and helps to run businesses at large context. Air Malta has opened its new outlets in different regions of Malta, thus there is required to shift old employees to such places in order to manage working activities systematically. The business organisation wants to deliver quality services by considering employees interest as well. It has overviewed satisfaction level of staff members as they can perform will more potencies (Lengnick-Hall, Beck and Lengnick-Hall, 2011). In this respect, different approaches of human resource developed can be adopted by the HR manager, like – Strategic HR framework, integrative framework and human capital appraisal approach.

According to Mahsud, Yukl and Prussia, (2011) the strategic HR framework approach consider business strategy, HRD practises and organisational capabilities; its main objective to leverage practices of human resources and improve organisational capabilities that enables to firm to attain its goals and objectives in an effective manner. In addition to this, strategic framework also offers certain specific tools or pathways in order to determine effective HRM practices. Apart from this, integrative approach is based on overall development human resource system by taken into account by synergies employees of the between all practices of human resource development.

Therefore, these approaches of HRM supports to obtain higher satisfaction level of employees, it results firm can attain its goals and objectives in a certain time period. Air Malta spend one third of its profits on employee development and learning activities. If firm has gained more profits than proportionately there is also raised employee welfare programmes.

Without establishing any business, recruitment is one of the significant task that has to be done in proper manner. But before, there should be also analysed the need of requirements; Air Malta needs to invest in such activities and implement several training events so as to gain fruitful benefits (Mendenhall and et. al., 2017).

Air Malta also has to train its workforce regrading effective competition of new jobs and responsibilities. It can provide training through several methods, i.e.

• Promotion – This kind of training approach will give career growth to employees as they are ready to retain for long run within organisation. Promotion activities are done when an individual is good in his or her work and capable to all tasks in an effective manner. In this, employees salary and job duties also get elated. But such kind of decisions are quite sensitive for the management because sometimes wrong people get promoted which is harmful for entire business organisation. Air Malta is tend towards managing long term relations with target and potential customers in order to sustain high cutting edge.
• Job rotation – With the viewpoint of Ployhart and Moliterno, (2011) it means an individual is shifted with another one for a certain time period; this can be done for same level of jobs. Organisations can get several benefits to do so, firstly people get knowledge from several areas of the firm by working with them. It is assistive for them to keep view about overall working styles of the organisation. It is also advantageous when an individual is leaving then the company does not need to suffer because others also have knowledge to do all tasks.
• Understudy – Air Malta deals in airline sector as here people can learn many thing by watching and observing other like – how to talk with passengers and how to treat them. Under this method, senior manager describes subordinates how to accomplish a task or activity. The person also tells them various issues or hurdles which might be occurred while performing certain specific tasks or activities.
• Mentoring – It is one of the most imperative method of doing or making things done in the best possible manner. Under mentoring, there is well experienced person who provide guidance to new joiners as they can finish working activities. There is a regular communication between trainer and trainee; the person also defines their mistakes and tell employees how to reduce or avoid them. It will improve practical knowledge of staff members at the time of working.

Only training, recruitment, selection is not the task of the HR department of Air Malta

Evaluation of task perform – Not only training is important, even afterwards trainer is required to evaluate performance level of employees so as to recognise that whether these training programmes are beneficial for the company or not. In this manner, assessment of all tasks helps in adding value in products and services of the company in terms of drawing more and more customers. After providing training, management is required to give feedback to employees as they can make necessary changes in their working styles. Air Malta is focused on how to satisfy customers' needs thus HR managers or training specialists are focused on monitoring all tasks so as to reduce errors.

Scope of improvement – In order to improve individual's skills and capabilities, Air Malta tend towards improving skills and capabilities of its workforce. In this sense, it produces several policies and strategies which leads higher production and profitability. The firm is focusing on these aspects, i.e. unity, pride, bravery, sense of household and passion while improving individual's skills; it results enhancement in market image and goodwill of the firm.

Classical theories of motivation

When an organisation creates modifications in business structure and organisational system then it will create a much impact on performance of employees. As working on new system is not an easy task for them, so it develops negativity in their mind and they will less motivated. It will generate high labour turnover which affects business of a company in a large manner. So, managers of Air Malta needs to motivate and encourage them in a proper way. There are various theories available for identifying the ways through which workers can be motivated. Some theories of motivation are explained below:-

• Theory X and Theory Y: This theory was propounded by Douglas McGregor, who give two theories of motivation i.e. one part relates to assign work as per skills of workers and second one entails to provide healthy working environment to them. So, using these theories of X and Y, managers can give higher satisfaction to employees and motivates them to work well.
• Hierarchy of Needs: It entails with five levels of motivation by classifying behaviour of employees as per their need. It was given by Maslow who gives physiological needs of people like food, shelter, clothes and others part of livelihood. So, it is responsibility of employers to provide good salary to employees so that basic needs of them can be fulfilled in a proper manner.
• Equity Theory: This theory was given by John Stacey, according to him employees are treated to be equal in workplace. Companies should not mistreated them as per different characteristics. So, getting equal treatment motivate employees to work hard in proper way.

Proposing Hybrid Theory for Air Malta: -

Since there are various theories of motivation are available which can applied into workplace for motivating employees. So, using one among them is difficult task for managers. Therefore, Hybrid theory gives beneficial for them to overcome from this problem. This theory used to combines all above theories in a single form through which employers can motivate its employees in better way. In context with Air Malta, this firm wants to give its services in unique way through which customers get high satisfaction. So, to accomplish this objective it provides various benefits to employees and motivate them to give good customer services. This will help in gaining attention of loyal customers too and retain them for longer period of time.

Traits and characteristics of effective leaders

According to Wright and McMahan, (2011) leaders are known as the individuals who play a big role in success and growth of entity as these direct and encourage staff members so they can perform their roles and responsibilities in an effective manner.

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