1. Identification of key issues in FABOplc
2. Recommended Recruitment and Selection Process
3. Risk and reward of recruitment process
4. Implication of employees related to management of people at FABO
FABO plc is a small low budget airline that operates from their headquarters in the UK. They serve several European and Asian destinations. The Managing director Mr. M. Salem is very successful in his field and he is inefficient in managing people of his company. The study introduces various human resource issues in FABO. A recommendation on the HR issues has also been discussed in this study related to the recruitment and selection process of the company. Some innovative recruitment and selection processes have also been discussed in the recommendations. An implication of the employees relating to the people management at FABO in the light of recommended recruitment and selection process is also discussed in the study.
1. Identification of key issues in FABO plc
FABO plc is a small cost budge airline in the UK, which operates from their headquarters in the UK. The company was selected for their low charges and easy availability regarding take off and landing. It has been observed from the case study that the company has been unsuccessful in employee management. The company faces a tough competition from the other airlines like Ryanair, Easyjet and Flybe. The company also faces huge shortage within the industry of pilots and aircrew. It restricted the growth plan of FABO. The company faces lots of human resource issues that have been discussed below:
1.1 High turnover
It has been seen from the case study that the turnover rate of FABO is very high. Management was unable to manage the employees in the right manner. According to the human resource development, there should be a performance appraisal program within the company. This performance appraisal program was missing in the management of the company. There was no improvement in the organizational structure of FABO. Prevention in the growth plan led the company to cancel some flights within a short notice due to illness in the management. There was no formalized wage structure and the reward and recognition program was on ad-hoc basis. This was very frustrating for the employees, leading to increase in the absenteeism rate of employees (Cho and Son 2012). Apart from this, FABO faces tough competitions from other airlines and employees tend to go to those companies to be recruited there. The company was either firing the employees or the employees themselves left the company. This increases the turnover rate of FABO (Mowday, Porter and Steers 2013).
1.2 Difficulties in staffing
As FABO started to cancel some flights within a short notice, due to illness in the operation of the management, this resulted in the damaged reputation of the company. No new pilots and aircrew were willing to be recruited in this company. According to an effective recruitment and selection process, the HR recruiter should provide formalized wage structure and a pleasant work environment that was missing from FABO (Bratton and Gold 2012). As there was absence of these factors, new candidates were not much interested when they were interviewed by the HR recruiter (Mashimo et al. 2013). A suitable HR program suggest that employees should not be fired haphazardly, but in case of this company, it has been seen that it was haphazardly firing the employees and trying to hire new employees (Barnett et al. 2012). When the new candidates become aware of this tendency of the company, the HR recruiters face lots of difficulties in the staffing process. On the other hand, in case of the internal recruitment process there was no scope for the existing employees, as several top positions of the company were held by the family member of the managing director M. Salem Poor workforce planning prevents the employees to hire new candidate in the right manner.
1.3 Low morale of the employees
FABO airline has a flat structure in the work environment of the company. In such a flat structure, most of the key decisions of the company are taken by the managing director himself. There was a huge communication gap between the employees and the top level management. The employees were unable to share their issues with the management so that they can be rectified (Upadhyay and Gupta 2012). Due to the discrimination in the employment term and condition, a hostile work environment had been created that made the job of the employees impossible. This dissatisfies the employees. Employees failed to receive a promotion due to discriminated work environment. There was a ‘them and us’ type of culture in the work environment of FABO. Top management takes their decisions on their own way without any concern for the employees. This lowered the morale of the employees (Paek et al. 2015).
2. Recommended Recruitment and Selection Process
It has been seen from the case study that FABO airline is facing lots of problem regarding their people management. However, for improving the growth plan, the company should improve the recruitment and selection process. The recommended recruitment and selection processes of the company have been described below:
2.1 Sourcing candidate
In this process FABO should try to find new talented candidates for their organization by using various methods. In this process the company should use internal as well as external method of sourcing candidates. In case of top level vacancy, the company should promote the existing suitable employees to the top position instead of a family member of the managing director. They should take references from the exiting employees for the vacant positions. Demotion of employees lowers the reputation of the company, so the company should not try this method in sourcing candidates (Townley 2014). In external sources, FABO should give advertisements of job vacancy in various job portals by clearly mentioning the job description, so that many job seekers can see these advertisements and become interested in the vacant position. The company can also undertake the process of direct recruiting; where the candidates can directly submit their application to the company and get interviewed. FABO should undertake the help of employment exchange programmes whereby the responsibility of sourcing candidate is upon a third party (Breaugh 2014). Employment exchange can source huge candidates from various places of UK and other countries.
2.2 Tracking applicants
In this process FABO should try to track the applicant by reviewing their resumes. Applicant tracking system (ATS) could be a useful system for the company while reviewing the application of the applicant. It is a technology that aids the management of the company in fulfilling the vacant position by checking the applications. Employment specialist should use this technology for reviewing the strength of the resume that has been submitted for the vacant position. After checking the strengths of the resume of applicants, employment specialists should decide which applicant they would like to interview (Kaminski et al. 2015). The status of the applicant can also be checked by this technology. By seeing the status of the applicant employment specialist can see the background of that applicant.
2.3 Preliminary phone interview
Conducting a preliminary phone interview would be helpful for FABO in getting the background, history and work experience of the applicant. The objective of the preliminary interview that is to be conducted by the employment specialist should be to determine, whether the applicant has all requisites and qualifications for the vacant position. The company should select candidates who have qualification in aviation courses. When the employment specialist would be ensured that the applicant has all the requisites then only he will call the applicant for the interview (Hollensen and Schimmelpfennig 2013). A swift initial review will expose applicants who will meet the minimum requirement of the vacant job position and they will be shortlisted. The employment specialist should take a brief of the candidate over the phone so that the applicants feel at ease when they come for the face to face interview.
2.4 Face to Face interview
In this step the employment specialist should send the name of the shortlisted candidates to the hiring manager. The hiring manager should weed out the unsuitable candidate and select the best candidates. Employees should be selected based on the technical knowledge needed for the vacant position. The hiring manager should only select these candidates who have pursued an aviation course. The hiring manager should be very much concerned about whether the candidate will be apt for the environment of the company (Wong et al. 2012). This will surely mitigate the issues of turn over problem in FABO. As the pilot and aircrew have to face a lot of high profile people, the hiring manger should arrange group discussion programs to check the behavior and commanding skill of the candidate. After selection by the hiring manager, final round interview should be done by the top management of the company, which narrows the field of candidate for selecting in the vacant position (Purce 2014).
2.5 Extending employment offer
After the candidates have been selected by the hiring manager, then he should take some pre-employment test for employing the candidate in the vacant position. In this step the hiring manager should ask the candidate for a reference checklist for obtaining the background information of the candidates. He should also take some medical tests for the candidate in this step. The candidate should be provided with a formalized wage structure. No discrimination should be revealed to the new candidate (Zerbini and Borghini 2015). The new candidate should also be provided with a pleasant work environment so that they become motivated in their work. A suitable induction program should also be arranged by the hiring manager to introduce the new candidate with the existing employees and top management.
3. Risk and reward of recruitment process
Using the job portal and making the website would be a hectic process for the company but it would be helpful in reaching the overseas candidate. Using ATS may be costly for the company but it would reduce the tediousness of the hiring manger in manipulating resumes manually. During a telephonic interview, a candidate may not be able to express all the qualities to the employment specialist but this process would be time saving and cost effective for the company (Krupnikov 2012). In group discussion processes, candidate may feel uneasy and uncomfortable but it would reveal the commanding power of the candidate. The induction process may be costly and time consuming for the company but it will help the new employees to be close to the existing employees (Buller and McEvoy 2012).
4. Implication of employees related to management of people at FABO
According to Vaiman, Scullion and Collings (2012), talent markets have completely changed because of the behaviors of the young generation. They do not actively search for job. The tendency of most of the new generation candidates is to connect with internet and social media and they also find their job through the internet. On the other hand, Dejoux and Thévenet (2012) opined that the talent market of western country is shrinking because of their shrinking population. By giving an advertisement on the job portal FABO will be able to reach the overseas job seekers. As the company will give a proper job description in the job portal about their job vacancy, the job seeker will be able to decide whether they would be suitable for the vacant position or not. Management would be able to taste the new talent of the new employees. Through the sourcing process the management can reach to the candidate who does not know about the bad reputation of the company.
According to Bagga and Khanna (2014), the Applicant tracking system helps the hiring managers of the company to push the best candidate for the vacant position. It gives the employer a basic idea about the applicant. On the other hand, according to Kehoe and Wright (2013) it reduces the time the hiring managers spend on manually handling the resumes of the applicants. When the hiring manager manually checks the application of the applicant it becomes tedious for him. ATS reduces the tediousness of the hiring mangers. The hiring manager can also be able to see the background of the applicant by this system and can decide who will be better for the organization. It will mitigate the difficulties of staffing in FABO. According to Onwuegbuzie and Hwang (2014), preliminary telephonic interview has a wider geographical access. The employment specialist can reach over to any applicant in any region without a geographical barrier. On the other hand, Chambers and Arnold (2015) stated that the preliminary telephonic interview is a very cost effective and time saving process of recruitment. Employment specialists can check whether the applicant would be suitable for the vacant position before calling him for the face to face interview (Dessler 2012). So this process lowers the burden of the hiring manger in manipulating lots of unnecessary resumes and it will also motivate the hiring manager to operate the selection process in a better way.
According to Chambers and Arnold (2015), Face to Face communication is a synchronous communication between the interviewer and interviewee. There is no communication barrier in this kind of an interview process. On the other hand, According to Håkonsson (2015) during face to face communication the hiring manager can observe the social cues like attitude, gesture and posture of the applicant. So it is clear that by this interview process the hiring manager would be able to decide which employees will be apt for the culture of their organization. This will ultimately reduce the turnover rate of the employees. A suitable induction process and formal wage structure will increase the morale of the employees in FABO.
While concluding the above study it can be said that FABO plc is facing several HR issues. The company is facing high turnover among the employees because there was a huge communication gap between the management and the employees. Most of the key decisions are taken by the managing director himself. There was low employee morale as the company does not provide any formal wage structure. This dissatisfied the employees of FABO. The company has a tough competition from other competitors who provide higher wages for the employees. This creates a problem in the staffing process of FABO. The recommended recruitment and selection processes, innovative sourcing and interview technique, will mitigate the HR issues of the company. It has been seen from the study that recommended recruitment and selection process will ultimately solve the HR issues of the company in terms of employee morale, staffing problem and turnover issues.
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