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HR Presentation - Jet Airline

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alvin phua

on 18 March 2014

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Transcript of HR Presentation - Jet Airline

JET Airline Case Study
Background
1st UK ‘No-frills’ airline or Low Cost Carrier (LCC)
Created in 1996 by Ben Mahon
Operating short-haul routes and regional European cities

Factor Analysis
Impact Identification
Recommendation
Continued to its profitability despite many airlines are force to downsize or diversify in the dynamic and complex environment


Business Environment
Business Strategy
Cost leadership and competitive advantage (1st Mover)
Sensible Flight schedules
Facing increase competition from new airlines/FSC
Increase in bad publicity, complains and employee turn-over
Need to review Jet airline business strategy & HR management
Customer service quality improvement
Further differentiate its services other than price

Furthermore...
Organisation Strategy
Organisation Structure
Institutional Factor
Diversity
National Culture
Technology of
Production
Cost-reduction Strategy relative to FSC
Quantity vs Quality
Competitive and First Mover Advantage
Cost Leadership
First to Offer Budget Flights
Niche market of travellers
Sensible Flight schedule

Likely Prospector HR approaches in most LCC

Limited Career path
Short term planning with low investment in T&D
HR plays more admin and support roles
Typical model for new business start up and risky environment
Terrorism, Pandemic, Natural Disaster
Higher Fuel Cost and Competition
Multiple Agencies
Flatter relative to established Airlines
Smaller board, Fewer Committees
Fewer top executives
Enable Quicker respond to Price
Allows Risky Decision

Organistic Structure
Flexible/Adaptable
Informal
CEO sharing the same working space with other managers
Eg: TigerAir / easyJet

Organisation Chart of esayJet and Malaysia Airline
Legal Framework
Liberlisation of airways between countries esp in UK (Post 1980s)
Encourages more LCC to be set up in UK after 1995
Removing high tariff/lower landing fees between countries
Reducing government interference (IATA Regulation)
Relative Lower barrier of entry

Social Norm - Travel Attitude
Air Travel becoming common and essential due to globalisation
Working across borders
Overseas Studies
Affluence to travel – Tourism industry
Summer Holiday/Christmas/Reading Week!
Perception of Personal Safety
SARS
9/11 & 7/7/05
Natural Disasters
Aviation Safety
Employee
Aircrew/Ground Crew/Customer Service
Different Back Ground/Job nature
R&S
eg: meeting Language requirement
Full-time and part-time
Cost saving - Pension only for FT
T&D

Travellers
Hofstede's 5D Analysis
Low Uncertainty Avoidance
The following have a large influence on the case, in order of the sphere of influence
Organisational Strategy
Institutional Factor
Organisational Structure
Diversity


Strategy made possible with the changes in institutional factor.
Classical approach initially allows an effective structure to be developed and implemented to suit the situation then. HR policy is only a prosecutor role with only a fit strategy in a time of business start up in a risky environment.
Diversity of employee and market segment becomes important when the market turns highly competitive with entrance of other LCC.
With no room for cost cutting in operations, human resources becomes the new sustainable competitive advantage for survival. Strategy takes on the Evolutionary Approach. Higher retention and product differentiation is required with assistance of good HR planning. In this case the HR approach is considered to be a holistic approach.

Reasons
Key Issues
Staff Commitment and Morale
Training & Development
Profit maximising avenues
HR Policies
Airline Ancillaries Revenue
Coordinating hotel, car, insurance service
Package Travel
Customer Retention Scheme
Mileage accumulation incentive
Free meal for loyal customers

Conclusion
Bibliography:
Thank You and we wish you had a pleasant learning flight with Jet Airline!

In a dynamic and complex environment, HR is a new competitive advantage for Jet Airlines after analysing the various factors and impact
Need partner and focus on SHRM as recommended to help maintain its market lead

Source: Office for National Statistic
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