Human Capital and Leadership Management in Air Malta

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HRM Models

As illustrated by Wilton (2016) human Resource model helps in understanding the different roles of HR and what value it adds in an organization. Human resource models serves various human resource needs and a detailed description of three most important models are carried out.

The Harvard Model: This model consists of six components of HRM. It starts with stakeholders interest, which includes, employees, management, government, shareholders etc. Next is situational factors that influences the stakeholders interest such as management philosophy, labour market, unions, workforce characteristics, laws ans societal values etc. Both stakeholders interest and situational factors affects and influence HRM policies which includes the core HRM functions that is, recruiting, selection, training etc. When HRM policies are successfully implemented, it leads to the positive result or outcome which can be in the form of retention, commitment, cost-effectiveness and congruence. All these positive outcomes are beneficial for long term, in the performance of individuals, organizational effectiveness and societal well-being.

Value Chain Model: This is the best known model and it was proposed by Paauwe and Richardson in 1997. As per this model, every thing done in HR are bifurcated into two parts, which are, HRM activities and outcomes. HRM activities are the daily activities carried out, including recruitment, selection, training, compensation, organizational design etc. These are measured using HR metrics known as efficiency metrics. HRM outcomes are the results and objectives that organization tries to achieve with HRM activities. All the activities carried out by HR is with a purpose to achieve the given goals. These outcomes can be employee retention, better performance, increasing competency, trust, employee engagement etc. According to Armstrong and Taylor (2020), when HRM activities and HRM outcomes hit the marks, it helps in achieving organizational objectives such as profitability, increase in market share and market value, enhancing quality, customer satisfaction, increasing turnover, productivity etc. Along with that it also helps in bringing transparency, fairness and moral value. So, overall performance of the organization is increased.

The 8-Box Model: As per the Barak (2016),this model is different from other models and it is proposed by Paul Boselie. This model sates about internal and external factors that influences the HR practices. The first is external general market context, external population market context, external general institutional context and external population institutional context. These factors influence the work of HR. For example, if there is shortage of any skill then these factors will influence the ways HR will source, recruit and hire. The core process starts with the configuration. The company history, culture and technology are the factors that influence the communication in HR. HR strategy consists of five parts. First is intended HR practices, it refers to intention of HR while recruiting, selecting, training and other HR practices. But this is the starting point in this model. Second is actual HR practices, the execution of HR practices is based on the cooperation between HR and manager. Manager may decides to do things differently with good intention but the actual practices can be different. Third is perceived HR practices, it related to the employee's perception towards HR practices in the organization. If employees perceived it in different way, not as intended by HR and manager then actual HR practices will not be mirrored. Fourth is HR outcomes, the perceived HR practices leads to certain outcomes which can be increase in productivity, quality, innovation, higher profits, better return on investments etc. Fifth is critical HR goals, all the HR outcomes will lead to critical HR goals such as cost-effectiveness, flexibility, legitimacy etc. and all these goals helps in building and achieving ultimate business goals like profitability, market share, visibility and competitive advantage.

As per the view of Bhopal (2016), the organization Air Malta is currently using 8-box model for managing its human resources. It has taken into consideration macro economic factors, labour market, competition, technology, norms and values, trade unions, stakeholders and so on. These factors can impact the HR practices significantly which in turn affect the overall organizational functioning. Air Malta has aligned company's culture, history with the organizations objectives and has made sure that it won't affect or influence the way employee communicate in the HR. It follows that same HR strategy practices.

In first, it clearly states the intention in forming HR practices related to recruitment, selection, training, compensation and other related practices. After this, Air Malta works in coordination and cooperation with manager for execution of practices as there can be situation where manager decides to implement practices with different intention which is much better but the actual practices can be different. In third step, organization has made its practices clear to its employees so that employees can understand it in the same way as intended by the HR. With successful execution of HR practices, Air Malta in its comes to the fourth and fifth step, has achieved its goals. All the practices have resulted in a positive outcome which has turned out to be an achievement of the ultimate business objectives. Air Malta has increased its productivity, turnover, market value, profitability which has helped in taking competitive advantage. This model has helped in keeping organizations employees satisfied and engaged, improved employees performance, in bringing integrity and transparency in the organization by promoting best practices for managing its human resource.

HR Functions

There are many functions of the HR (Human Resource Department) in the Air Malta. As per the view of Soni (2016) the company operate it's all operations at the large scale. In this case the company needs many employees in their business environment which help in run all operations perfectly. In which there are mentioned some major functions of the HR below;

Recruitment & Selection: Recruitment and selection is the main function of the HR department at the Air Malta. In this function the HR department work for hire humans or employees for the company. The company needs many employees in their business environment which cover all necessary activities for high profit gain in the airline industry. In this case the top-level management order to the HR manager for hire some skilful employees for the company. Then the HR manager responsible for follow that order and need to start their recruitment and selection process. According to the Ingham and Ulrich (2016) in the recruitment process the HR department firstly need to post some advertisements on the various platforms, like, newspaper, templates, posters, radio etc., for aware people about vacant posts in the company. It also responsible to mention eligibility and qualification needs of the company for those posts. Then the next step in the recruitment process is to send call letters to the candidates which eligible for vacant posts. The main purpose of this step is to invite candidates for personal interview or written exam. Then after the HR need to select those candidates in the company which passed the personal interview or exam round. In the selection process the HR basically hire those candidates in the company which fulfil the all eligibilities of the vacant posts.

HRD (Human Resource Development): The another major function of the HR is the development of human resource. In which the HR department of the company take some actions towards improve and develop the current behaviour of the human resource or employees within the company. The development is very necessary, because with the help of developed and improved human resource the Air Malta can easily achieve its business goals in the airline industry of the Malta. There are huge competition in the airline industry today. So, this is the major responsibility of the HR department for develop human resource aspect of the company. The HR manager always knows the value of human resource, because with this the company able to gain high competitive advantage in the market. As illustrated by Héder, Szabó and Dajnoki (2018) for perfect development of the human resource of the company the HR manger need to use some basic development strategies at their workplace. These strategies include provide motivational seminars, conferences, and training sessions etc. to the employees. With these strategies employees able to develop their work efficiency.

Motivation: Motivation is big part in the company's business environment, because with the help of this the company able to take effective work form their employees. In this case the HR department of the Air Malta needs to provide high motivation to the employees which improve their workability at workplace. For always make motivated to the employees the HR need to create a healthy and happy work culture in the company's business environment where all employees able to work happily. This type of work cultures also help in improve employees' skills. The HR department need to invite some motivational speaker in the company which motivate all employees with their energetic and effective word delivery. It also needs to run some fun activities at the workplace which always make motivated to the employees for work hard.

Performance: As per the view of Mathis (2018) performance of the employees give great contribution the overall growth of the company. So, here is another function of the HR is to maintain the performance of the all employees. It always needs to put their performance on the progressive mode by avoiding such things at the workplace which decrease performance. The HR manager is responsible for implement such measurement tools in the work environment which measure the employees' performance. On the basis this measurement tools the HR manager able to analyse what type of improvements are needed in the current performance. Then it needs to take some necessary attempts in the company which improve the performance of the employees. Employees are always needed to give their best of the best performance at workplace for gain positive results from their activities.

Training: Highly trained employees always give the best input in the business operations in the comparison of untrained employees. So, here is the training is also important part in the Air Malta. Other side the company is also the part of airline industry, in this case it highly needed the fully trained employees in the company for avoid many of the issues related to the airline industry. According to the Mooney (2019) each company always need to provide some training sessions to their employees in the specific time periods in a year. The main role of training is to make up to date employees with the latest and modern ways of workability. In these training sessions many of the successful companies in the world team their employees the formula called “work smart, not hard”. In the case of Air Malta, the HR department also need to provide some training sessions to the all employees for systematically maintain their performance at workplace. It needs to contact some business trainers for invite them in the company. These trainers share their useful knowledge with the employees which improve their work efficiency in the

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