In the recent era, performance management activities have become one of the crucial success factors to enhance organizational effectiveness, as it helps to synchronize varied departmental activities with predefined key performance indicators. Considering the fact, the present reports aims to provide a clear view of how Emirates Airlines has developed the performance management activity to regulate and enhance the overall employee motivation and organizational effectiveness.
Emirates Airline was started in 1985 with its operation of just two aircraft. It is a Dubai based organization and renowned as the largest airline company in the Middle East. The company has established itself as the world’s fourth-largest airline organization in terms of scheduled revenue passenger-kilometers flown. The overall employee strength is 64,768 as of FY 2017. The vision of the company is “To deliver a safe, sustainable and leading civil aviation throughout the globe. The mission statement is “To deliver the world’s best in-flight experience to the customers” (Centreforaviation.com, 2018).
The basic functionality of the HR department is:
- Designing job roles
- Managing diversified compensation and benefits
Professional compliances with the standardized policies have adhered with the HRM practices which ensure an effective employee relation. In addition, Cook, H., MacKenzie, R., & Forde, C. (2016) mentioned that high caliber of the workforce across global locations are attracted and retained through effective remuneration and planning of the HRM resources.
Key Roles of HR Department in Emirates:
- Employee services
- Remuneration and planning
Key impacts of HRM in the overall effectiveness:
- Business support
- Change management
- Employee diversity management
- Organizational development
- Talent management through learning and development
- Leadership effectiveness and support activities
Performance management and strategic planning:
The HM department of Emirates Airlines has designed a key performance indicator which is linked with the overall strategic plan. In the view of O.Oparanma & Wechie (2014) strategic plans related to the overall business sustainability are being developed at unit level performance objectives. The job descriptions are aligned with the performance goals which help to improve the overall team performance. In addition, the support activities are also found effective enough to help the brand meeting individual and overall business goals.
Budgeting and performance management:
- Balanced Score Card approach (BSC):
As a tool to analyze gap in the performance, Emirates Airlines employed BSC approach across all hierarchical levels.
- Budgeting on reward system:
A predefined budget is maintained by the performance management team to balance the performance motivators among all employees. The budget for the reward system has been increased by 15% in the FY 2017, to motivate and retain highly skilled workers (Emiratesgroup.com, 2018).
- Investment on learning and development:
The Company has enhanced expenditure of L&D by 32% as compared to the FY 2014 (Emiratesgroup.com, 2018). The speculated budgeting has helped the company framing goal-centric KPIs to enhance the overall commitment for the global workforce. Eventually, overall performance has been increased.
Employee development and performance management:
At Emirates, the Talent Review Program and Individual Develop Plan (IDP) are designed not only to increase the performance of the employees but also motivating the employees towards opportunities and challenges so that the organizational goal could be attained positively. According to Mandhanya (2015), as the employees learn and develop new skills both the performance and productivity of the firm would get a steady business growth. As per the annual report, the employee performance of the firm has improved significantly and the firm also increased its revenue margin by 6% to AED 44.5 billion in the half-yearly performance for 2017-18 (https://cdn.ek.aero, 2018). Moreover, in order to up keep a less official learning process, the On-the-Job Learning Module used by the firm has increased the competency level of its 70% employees.
Employee compensation and performance management:
The employee remuneration policy of Emirates Airline does not only focus on offering financial benefits to the employees but also ensure the organizational performance growth to preserve its competitive position within the market. Considering the view of Staines, A., Thor, J., & Robert, G. (2015), the management of Emirates generally offers a staff standard benefits such as life assurance, private medical assurance and childcare vouchers to encourage the workers. Both for the flying and non-flying staff, the leading airline firm offers free car service, home computing plans and other share schemes to motivate the performance graph. As a result, Mandhanya (2015) mentioned that the employees of firm has become more dependent on the job role and extended the length of service with the firm. Additionally, the human resource support of the firm with an attractive salary package helps to retain the high caliber workforce around the globe (ElKelish & Rickards, 2018).The reward management policy like Pilot and flight crew benefits programs has helped the firm to attract more qualified and dedicated professionals. By maintaining the payroll regulations of UAE, Emirates also provides an End of service benefits to the retired staff so that the lifetime contribution in the firm can be admired positively. Although the talent attraction rate in Emirates is increasing steadily, the employee turnover rate of the firm is increasing to 2%-3% yearly.
Quality improvement program and performance management:
It is an evident fact that Emirates are the pioneer in leveraging some traits of the digital transformation to provide a better customer service. The Inflight Connectivity, IOT Baggage Management etc. has enhanced the operational and customer service aspects of the firm (https://cdn.ek.aero, 2018). A flexible cloud infrastructure has provided an unfailing consumer experience in terms of managing booking price and seating allocation issues. All these adopted policies of the firm are entirely mapped to its employee Key Performance Indicator (KPI) through the Six Sigma approach (Staines et al., 2015).However, a quality improvement culture needs to be included to collect the employee feedback about any services. The TQM commitment plan fails to increase service level accountability of an employee. Hence, the business performance of the chosen firm is dropping in a substantial way.
Conclusion and recommendations:
Although the autocratic culture followed in Emirates helps the company to get more effective results in terms of organizational growth and profitability, but sometimes it becomes frantic while an utmost support of employee participation is needed in the decision making process.
In order to maintain the chain of continuous improvement, Emirates requires introducing more diversified program in the strategic management plan. Rather than focusing on internal audit a third party audit management system would be helpful for the firm to identify the performance gap (ElKelish& Rickards, 2018). An extensive performance auditing system on a frequent basis would help the management of Emirates to keep control over the employees so that the service quality and overall organizational growth could be enhanced gradually.
CAPA. (2018). Emirates Airline Airline Profile | CAPA. Retrieved from https://centreforaviation.com/data/profiles/airlines/emirates-airline-ek
Cdn.ek.aero. (2018). Retrieved from https://cdn.ek.aero/downloads/ek/pdfs/report/annual_report_2018.pdf
Cook, H., MacKenzie, R., & Forde, C. (2016). HRM and performance: the vulnerability of soft HRM practices during recession and retrenchment. Human Resource Management Journal, 26(4), 557-571. doi: 10.1111/1748-8583.12122
ElKelish, W., & Rickards, R. (2018). Organisational culture's impact on management accounting and control practices in the United Arab Emirates. International Journal Of Accounting, Auditing And Performance Evaluation, 14(1), 24. doi: 10.1504/ijaape.2018.089408
Emiratesgroup.com. (2018). UAE Nationals | Emirates Group Home. Retrieved from https://www.emiratesgroup.com/uae-nationals/
Mandhanya, Y. (2015). Training and Development Strategies: Motivational Tool for Increasing Employee Retention. Training & Development Journal, 6(1), 15. doi: 10.5958/2231-069x.2015.00002.5
O.Oparanma, D., & Wechie, I. (2014). Crisis Management Processes To Ensure Effective and Continuous Performance. IOSR Journal Of Business And Management, 16(8), 01-04. doi: 10.9790/487x-16830104
Staines, A., Thor, J., & Robert, G. (2015). Sustaining Improvement? The 20-Year Jönköping Quality Improvement Program Revisited. Quality Management in Health Care, 24(1), 21-37. doi: 10.1097/qmh.0000000000000048