Research Report: NovoAir
Course: BUS 601.2
Submitted to:
Dr. Nazmul Amin Majumder
Professor, School of Business & Economics
North South University
Group Members:
Name
Tashkin Mahmud
ID
1825285660
Nafisa Zaman
1825286060
Ahnaf Mosaddek
1825384060
Abdullah Musa Talukder
1835226660
Contents
Executive Summary.....................................................................................................................................3
Introduction:................................................................................................................................................4
1
Objective - 1.........................................................................................................................................4
1.1
Hiring Managers..........................................................................................................................7
1.2
Preparation Plans.........................................................................................................................7
1.3
Beyond Company Borders...........................................................................................................8
1.4
Environmental Initiatives.............................................................................................................8
2
Objective 2:..........................................................................................................................................9
3
Objective 3.........................................................................................................................................19
Conclusion.................................................................................................................................................20
Recommendations.....................................................................................................................................21
Implementation:........................................................................................................................................22
References.................................................................................................................................................22
Executive Summary
As we all know that there had been a recent fatal air crash of a Bangladeshi airline carrier
US Bangla and of which later reports suggested was due to the severe depression and
unwillingness to fly of the pilot, and after that followed a close scrutiny on every detail of
the airline industry of Bangladesh. Any issue small or big caught the attention of the media
and the airline companies as a result faced severe pressure to perform perfectly as anything
not near perfection would catch the eye of the media. Recently another issue sparked which
was that some high officials of Bangladesh Biman were suspended due to gross misconduct.
While this resulted in a public relations nightmare for those organizations, it may likely
point to a deeper, underlying HR issue. What is going on in companies where employees go
to extreme measures such as putting the passengers’ lives at risk by flying in a depressed
state of mind or expropriating wealth as in the case of Biman? There could be due to several
reasons and, no doubt, there’s always the outliers, from the otherwise good employee who
just has a one-off, really bad day, to one with a possible mental health issue or simply a
random employee who decides this will be their ultimate form of resignation. But more
often, poor behavior can be indicative of a dysfunctional culture within the organization. If
anybody asks whether human resources management is important, we believe no one will
reply "no" because machines definitely will not be able to function without people.The
airline industry is perhaps one of the most volatile industries in the world. It is an industry whose
way of doing business is constantly changing due largely in part to those outside forces. Not only
are they subject to regular bankruptcies, mergers and acquisitions, they are subject to such
uncontrollable factors as the political and economic situation of society and its customer base.
Thus, the human resources manager in an airline industry has the challenge of staffing for this
ever-changing need. Because the airline’s needs are in a constant state of flux, the first step the
human resources manager must take is to establish a system that allows for a regular evaluation
of the need and then recruit based on the evaluated need.
Within Novo Air there are numerous different levels of positions, from executives to pilots, from
stewardesses to maintenance personnel. The human resources manager will only be able to
successfully recruit and thus staff each of these diverse needs if they create a line of
communications with each department in order to access their specific needs and then base the
recruiting plan on this gathered information.So far, there is no record of accident or any kind of
mishap by NovoAir. Besides they are good at maintaining strict and regular flight schedules.
Except few cases of unavoidable and weather issues, NovoAir has so far handled their flights
quite regularly. Additionally, the company have also appointed an efficient team of qualified
flight attendants to serve their passengers. They are always under training on regular basis to
tackle any crisis. They have always maintained a fair ticket price right from the very beginning.
They have provided enough options for different type of passengers. To meet their customer
demands, they maintain a number of packages. The packages include Special Promo, Promo,
Special, Discount, Saver & Flexible. Among them the Special Promo is the cheapest & Flexible
is for the ones who seek luxury. They provide modest & healthy snacks of good quality to their
passengers. The management always maintains the quality of the food under strict observation.
Introduction:
NovoAir commenced their operation on January 9, 2013. They are the fourth scheduled operator
in the domestic airline market of Bangladesh. First domestic jet service providing premium
service to the customers. Their fleet contains aircrafts manufactured by Embraer. Major
destination of NovoAir is Dhaka, Chattogram, Sylhet, Jashore and Cox’s Bazar. NOVOAIR
aspires to reach the highest level of customer’s satisfaction through an uncompromising
commitment to safety, reliability, efficiency and stringent adherence to regulatory compliance.
Their goal is to earn customer’s preference and employee trust through leadership, commitment
and service. Their mission is to provide safe, reliable and friendly air services in partnership with
their customers, suppliers and the communities they serve. NovoAir is committed to uphold OnTime Performance, Superior Services, Safety and Comfort. NovoAir, country’s “Best Domestic
Airline” adjudged by “Monitor Airline of the Year”, becomes passenger’s first choice for air
travel.[ CITATION Nov \l 1033 ]
1 Objective - 1
What are the HRM problems & Issues facing Novo Air? This includes a brief introduction
to the case analysis.
As we all know that there had been a recent fatal air crash of a Bangladeshi airline carrier
US Bangla and of which later reports suggested was due to the severe depression and
unwillingness to fly of the pilot, and after that followed a close scrutiny on every detail of
the airline industry of Bangladesh. Any issue small or big caught the attention of the media
and the airline companies as a result faced severe pressure to perform perfectly as anything
not near perfection would catch the eye of the media. Recently another issue sparked which
was that some high officials of Bangladesh Biman were suspended due to gross misconduct.
While this resulted in a public relations nightmare for those organizations, it may likely
point to a deeper, underlying HR issue. What is going on in companies where employees go
to extreme measures such as putting the passengers’ lives at risk by flying in a depressed
state of mind or expropriating wealth as in the case of Biman?
There could be due to several reasons and, no doubt, there’s always the outliers, from the
otherwise good employee who just has a one-off, really bad day, to one with a possible
mental health issue or simply a random employee who decides this will be their ultimate
form of resignation. But more often, poor behavior can be indicative of a dysfunctional
culture within the organization. If anybody asks whether human resources management is
important, we believe no one will reply "no" because machines definitely will not be able to
function without people.
We deal with Novo Air in this case, a notable company in the Bangladesh airline industry.
NOVOAIR was established in 2007 with a vision of “Excellence in Aviation’’ and motto “ART
of Aviation’’, which emanates from the conviction that NOVOAIR shall endeavor to provide the
best of service to valued clients. We are committed to uphold On-Time Performance, Safety,
Services and Comfort to our passengers. Over the time NOVOAIR has become the number one
choice of air traveler in the country.
NOVOAIR launched commercial operation on 9 Jan 2013 with Embraer 145 jet aircraft. Later
the Embraer fleet was replaced with ATR 72-500 turboprop aircraft. The airline currently
operates to all domestic destination of the country with lone International destination to Kolkata.
NOVOAIR aspires to reach the highest level of customer’s satisfaction through an
uncompromising commitment to safety, reliability, efficiency and stringent adherence to
regulatory compliance. We have earned customer’s preference and employee trust through
leadership, commitment and service. We invest our profits in people & services to grow. Our
mission is to provide safe, reliable and friendly air services in partnership with our customers,
suppliers and the communities we serve. One of our goals is to set ourselves the pinnacle of
standards and we deliver on our promises.
NOVOAIR is committed to uphold On-Time Performance, Superior Services, Safety and
Comfort. NOVOAIR, country’s “Best Domestic Airline” adjudged by “Monitor Airline of the
Year”, becomes passenger’s first choice for air travel.
Corporate culture is usually established at the top, and the responsibility lies with senior
leaders to ensure that any problems are quickly addressed and resolved. But often CEOs
may be so removed from the day-to-day environment, and they may not have the particular
skill set personally – or on the board – to anticipate or identify HR issues, let alone how to
solve them. Blame is often placed elsewhere and trickles down, which only reinforces a
systemic culture problem. Too many policies, procedures or useless evaluations, a lack of
candid communication and transparency, or not listening to employee feedback are only
some things that can create toxic environments.
When it comes to understanding whether Novo Air may have HR issues that need to be
addressed, they must consider the following:
Classic conditioning. We repeat the behaviors for which we are rewarded. Whether implicit
or explicit, if the corporate culture prizes rules and adherence to them, and those employees
who enforce the rules are generally rewarded, then they will more readily apply this to
others as well. Rigid rules result in a lack of autonomy and ability to think flexibly. On the
other hand, if the culture promotes an inclusive and shared vision of success where
employees are valued, they will be more motivated to go the extra mile to ensure happy
customers.
Doing unto others. Conversely, if employees are routinely treated harshly or feel that
supervisors don’t care about them, most often their resentment may cause them to treat
coworkers or customers in the same manner. A focus on rules, process and efficiency that is
prioritized above employee and customer wellbeing can result a toxic corporate culture.
Managers who focus on supervising rather than coaching or mentoring, and leave little or no
room for feedback and discussion, will not foster positive relationships with their staff. Nor
do they set a good example for the employee.
Don’t pay lip service. Especially in hospitality, good customer service needs to be seen as a
clear priority by the executive team, not just something that’s paid lip service. If you want to
ensure your employees provide good customer service, involve them in defining what those
service standards are. They are the ones closest to the front line and in the best position to
know what matters to your customers and what their pain points are. Through their direct
experience, the may know how to best address your customers concerns. Invite them to
share their learnings with others on the team.
Prioritize training. Don’t just set an expectation of excellence without supporting it.
Ongoing training and support of employees on how to appropriately handle frustrated
customers and diffuse charged situations is important. As with anything, practice makes
perfect. Establish a regular training program with role-playing, brainstorming, and case
studies, so that these skills are constantly honed and updated. A company-wide email
reminding employees of the customer service standards doesn’t cut it. Set a standard
internally for how mistakes are handled by providing supportive, calm assistance. Berating
or throwing an employee under the bus to please a customer will not likely yield a positive
result – or display problem solving best practice.
Pay attention. To how your employees are behaving. We live in a world of increased
demand, stress and expectation, with an inverse proportion of time, patience and reward.
This paradigm is perhaps felt most by those in customer-facing roles, who may deal with
hundreds or even thousands of different people, and personalities, each day. Check in with
them regularly and when they start showing signs of stress, pull them off the front line and
let them diffuse their stress with non-customer facing tasks.
As with anything, you can’t get to the heart of a problem and fix it without talking about it
and addressing it truthfully. Culture problems can usually be resolved when management
has the courage to face issues openly and provide the right tools, and environment that will
foster real and positive change.
I’ve discussed how HR management is constantly changing and, with that being said, the airline
industry is perhaps one of the most volatile industries in the world. It is an industry whose way
of doing business is constantly changing due largely in part to those outside forces. Not only are
they subject to regular bankruptcies, mergers and acquisitions, they are subject to such
uncontrollable factors as the political and economic situation of society and its customer base.
Thus, the human resources manager in an airline industry has the challenge of staffing for this
ever-changing need.
Because the airline’s needs are in a constant state of flux, the first step the human resources
manager must take is to establish a system that allows for a regular evaluation of the need and
then recruit based on the evaluated need.
Within Novo Air there are numerous different levels of positions, from executives to pilots, from
stewardesses to maintenance personnel. The human resources manager will only be able to
successfully recruit and thus staff each of these diverse needs if they create a line of
communications with each department in order to access their specific needs and then base the
recruiting plan on this gathered information.
The rapid pace of change in the aviation industry requires human resources professionals to be
ready to change with the circumstances. Mergers, acquisitions, environmental issues, increased
regulation and international engagement each bring their own set of challenges to HR training
programs and how they influence employee retention.
1.1 Hiring Managers
Recruiting, hiring and training managers are costly endeavors for airlines. HR policies targeting
potential management candidates from the current roster of employees can help reduce expenses
while maintaining the company's cultural integrity. Management training for current managers
can task them with finding replacements within their ranks to take their places when they move
up. Doing so would follow the current trend in aviation training to improve succession planning
from within rather than relying on outside recruitment efforts.
1.2
Preparation Plans
Pilots, flight and ground crews and air traffic controllers cannot train for every possible scenario.
Instead of training only for known emergency situations, the current concept involves crosstraining employees to ensure the optimal safety of passengers and crews. Sound critical thinking
skills may be the best defense against the unknown. While employees in aviation must learn
specific tasks to successfully fulfill their obligations, this multidimensional approach to training
allows staff to respond quickly to changes and challenges as they occur.
1.3
Beyond Company Borders
Current staff can also learn the practices of companies that offer customers seamless travel to
provide a more positive consumer experience, the International Air Transport Association says.
As regulators smooth over international laws that often make cooperation difficult, aviation
training will likely include more instruction on how to move passengers by creating alliances and
air travel partnerships.
1.4
Environmental Initiatives
The aviation industry has made significant strides in overcoming environmental damage through
technical and mechanical innovation. Training trends along these lines will continue to develop
as the industry incorporates improvements in environmental protection. Education of engineering
and maintenance crews will include programs aimed at reducing the industry’s carbon footprint.
This may include learning more about using alternative fuel supplies and promoting sustainable
practices within their fields of expertise.
However, for the airline industry, players can be compared easily regarding human resources
management because of the similarity of machines in Boeing and Airbus, the same international
aviation rules and regulations and some similar operating standards, for example.
“Therefore, in this dynamic competitive business, we are able to demonstrate the importance of
HR easily,” Ariya Furkfon, managing consultant at Hay Group, said last week. Citing data from
IATA, she said an effective airline is one that can develop effectiveness in three key productivity
drivers – fuel, aircraft and labor.
Finally we can see that Novo Air can adapt these cultural changes to improve their overall HR
condition.
Just Culture - A Just Culture is described as a culture in which employees are not punished for
actions, omissions or decisions taken by employees that are commensurate with their experience
and training; however, gross negligence, willful violations and destructive acts are not tolerated.
The entire concern over taking responsibility for one’s action became interwoven into the Just
Culture philosophy. It stress finding a middle-ground between a blame-free culture, which
attributes all errors to system failure and says no individual is held accountable, and an overly
punitive culture, where individuals are blamed for all mistakes. Creating an organizational
culture where people embrace their accountability toward one another and toward the
organization produces greater transparency and openness (Marx, 2009).Just culture is associated
with incident-prone professional activities (e.g., pilots and doctors) where consequences of
mistakes are potentially grave. The ultimate goal is safety (Stastny and Garin, 2004).
Self-Reporting by Employees - The system relies on pilots self-declaring. Therefore, unless a
pilot is honest about an alcohol problem or psychiatric disorder, there is no guarantee a problem
will be spotted. Even though commercial airline pilots undergo psychological testing, aviation
experts acknowledge those who are depressed or suicidal may be difficult to detect (Kaiser,
2015). It is recognized that there may be barriers affecting a frank discussion of mental health
issues between an aeromedical examiner and a pilot. A highly independent culture exists where
pilots are in control and they fear losing their medical certificate. The problem is that pilots who
report symptoms run the risk of having their commercial pilot license suspended or revoked. So
they stay quiet. Pilots are not likely to disclose any potential mental health problems, because
that could get them grounded (Kaiser, 2015; Scarpa, 2014). Airlines must do a better job of
monitoring mental illness among pilots. Existing rules rely on self-reporting; but most pilots are
not willing to self-report (Wharton, 2015). Pilots, like others with high stress jobs, tend to be
good at compartmentalizing, warding off difficult or emotional experiences so they don’t
interfere with their ability to function day-to-day (Kaiser, 2015). Pilots fear and loath being
grounded. Pilots are exposed to constant stress when flying, including adapting to changing
altitudes and time zones. When you couple that with being away from home and the increasing
volatility in the airline industry, you’d expect to have a lot of anxiety and emotional issues. Novo
Air must learn to deal with these issues and give constant emotional and psychological support
and counseling to the pilots on a regular basis and in the process regularly monitor their mental
health issues.
2 Objective 2:
What sort of HRM approaches need to be taken to ensure ongoing strategic competitive
advantage?
Human Resource Management
Human resource is the most important department of an organization for any type of
organization. Human resource is the soul of any an organization. Without proper qualification of
an employee no organization can develop. That’s why we need HRM to evaluate performance of
the employees. More than 400 employees work for the airline. HR department of NovoAir is
supervised by DGM (HR). DGM has some sub branches which are interrelated with HR from the
beginning to retirement. There are two main area of HR:

Organization & Method Section

Employment Section
Functions of O & M Section:
1. Preparing organizational set up of all divisions/departments/sections/stations of NovoAir.
2. Assessing man power requirements of all divisions/departments/sections/stations of NovoAir
and reviewing the same from time to time on the basis of operational and actual requirement.
3. Carrying out spot survey on manpower
divisions/departments/sections/stations of NovoAir.
demand
received
from
various
4. Preparing qualification and experience required for all categories of posts in calculation with
concerned department head and reviewing the same time to time.
5. Advising the management on organizational problems and suggesting solution.
6. Suggest simplified procedures and improved work methods.
7. Suggest improved method of development pattern and shift pattern for effective utilization of
man power and in order to avoid unnecessary overtime in various department/section/station.
8. Assess overtime requirement of all divisions/departments/sections/stations of the airline in
accordance with the workload and existing manpower strength.
9. Supply data and other information to the civil aviation authority.
10. Brief on organizational matter to various group of trainees from different institutes,
organizations and other airlines.
11. Evaluate font design, control & advise printing & publication section.
Functions of Employment Section
1. Receive demand from various department/sections for recruitment of employees.
2. Obtain vacancy position from O&M department for recruitment purpose.
3. Process cases of all recruitment for management’s approval.
4. Prepare draft advertisement for management’s approval & arrange publishing the same in the
newspaper through public relation department.
5. Prepare papers for internal advertisement.
6. Receive applications from candidates & scrutinize all applications in accordance with the
advertisement.
7. Issue call letters & arrange written examination/interview of the candidates as per laid down
procedure.
8. Tabulate the marks obtained by each candidate in the written examination/interview.
9. Issue offer letter & arrange medical checkup of the selected candidates.
10. Check up original certificates of the candidates & ensure all appointments are made without
any discrepancy and all papers & certificates are available.
11. Issue appointment letter.
Objective of HRD:
1. Ensure quality recruitment of personnel.
2. Bring clarity & consistency in the selection & recruitment process.
3. Ensure equal opportunity form employment.
4. Encourage all candidates to demonstrate their stability for a post through the establishment
of clear, welcoming & positive process.
Human Resource Planning:
To anticipate future HR demand, NovoAir has to think of few factors. At first they do find out
at which sector they need employees. Whether it is official, manual or IT based job. They
consider the required people in qualitative & quantitative perspective. For example, they must
have more pilots in order to operate the new aircrafts coming within few months. Before that,
the airline trains some internship cadets at its own training center & who successfully pass the
training session, they recruit them directly. Because of retirements, firing for less revenue, they
will cut their labor force down in few departments. But it will again compensate its workforce
by rotating duties. To fill the vacant positions they internally promote employees. The
employment section only recruits & selects candidates. During the labor demand, they think of
the budget. NovoAir has to consider the possible sources where it can find the necessary
candidates. They also post the job vacancy advertisements in online like BDJOBS.COM,
A1JOBS.COM, PROTHOMALOJOBS.COM & their own website. But considering the whole
scenario of our country NovoAir has to post the job vacancies in every available media.
HRM Approaches to follow:
Effectively management of people can produce substantially enhanced economic
performance. A plethora of terms have been used to describe such management practices:
high commitment, high performance, high involvement, and so forth. Jeffrey Pfeffer uses
these terms interchangeably, as they all tap similar ideas about how to obtain profits through
people. He extracted from the various studious, related literature and personal observation and
experiences a set of seven dimensions that seems to characterize most if not all of the systems
producing profits through people.
1. Employment security.
2. Selective hiring
3. Self managed teams and decentralization of decision making as the basic principles of
organizational design.
4. Comparative high compensation contingent on organizational performance.
5. Extensive training.
6. Reduce status differences
7. Sharing information.
1) Employment security.
The importance of job security has become more significant during the economic downturn, with
layoffs, pink slips and hiring freezes becoming everyday news. Job security is an abstract as well
as tangible variable that everyone seeks during employment with a company. Job stability and
medium to long-term job security ensures you are motivated enough to be committed to
organizational objectives and goals and reap the commensurate rewards and benefits.
Stability in Career
Job security is all about seeking a sense of stability in personal development, career progression
and overall career development during the course of employment at a particular organization.
Performing Best
When striving for job security, an individual offers his dedication and commitment to his tasks in
an organization and focuses his skills and capabilities on being a consistent performer.
Peace of Mind
A secure and stable job with the right challenges gives peace of mind to an individual and
enables her to devote nonofficial hours to community service, hobbies and other activities.
Family Commitments
One of the most important reasons every worker aims for job security is to be able to provide for
his family, be it a growing one or elderly parents.
Financial Security
A stable job with an adequate compensation package, financial incentives and other benefits
should ideally provide medium- to long-term financial security.
In NovoAir, employment security varies from job to job. Most of the jobs which are higher level
are fully secured. Mid level jobs are also secured but entry level jobs are mostly not secured. The
airline prefers to recruit casual employees in that level.
2) Selective Hiring.
In today's knowledge-based workforce, organizations are increasingly trying to fill specialized
positions that require unique skill sets. Recruitment no longer consists of collecting resumes at a
job fair and calling everyone who appears to meet the basic job requirements. For this reason,
human resources departments are becoming more proactive through the use of selective
recruitment.
Where to Start
Selective, or targeted, recruitment involves developing recruitment strategies that are more
proactive in their approach to attract well-qualified candidates with specific skill sets. Recruiting
selectively requires more work to be done up front before meeting with any potential candidates.
Organizations should start by conducting a thorough job analysis of the positions they are trying
to fill. The recruiter should always involve the hiring manager in this process to fully understand
the job and any specific knowledge, skills or abilities that are required. Once the major tasks of
the position are identified, the type of candidates need will become clear. An organization should
not underestimate the power of its current staff. Employee referrals, trainings and conferences,
and networks of former employees can be useful tools to incorporate into the selective
recruitment strategy.
Look at the Data
Labor force data is publicly available and is useful when developing a selective recruitment
strategy. For example, it is easy to determine what percentage of residents in a certain ZIP code
hold advanced degrees. Based on the results of your job analysis, you will be able to target
recruit accordingly, using the vast amounts of data available online. Doing your research will
also prove beneficial when working on a marketing plan or tracking success of past recruitment
initiatives. Research the competition to determine how their benefits stack up to those offered by
your organization. Keep in mind that employees value health benefits, a work-life balance and
competitive pay greatly, especially in tough economic times. Perks and employee benefits should
be included as part of the overall recruitment strategy.
Benchmark Best Practices
Researching the selective recruitment strategies of other organizations will be useful when
developing your strategy. For example, many budget-friendly states target candidates from
areas with high costs of living.
Outcome
Done correctly, selective recruitment will produce candidates that are well-qualified and suited
for the position with the least amount of effort. Both the candidate and the organization will
benefit from these efforts. Although developing a selective recruitment strategy will initially be
labor-intensive, the results will be useful for filling future positions, as well as for developing a
pipeline of candidates. By linking recruitment strategies to specific positions, organizations will
get the most bang from their often limited budgets.
Benefits to an Organization
Organizations that utilize selective recruitment will see a significant cost savings over time.
Less time and money will be wasted recruiting and interviewing candidates who ultimately are
not the right fit for the position. Turnover will decrease as well, since so much time and money
was spent up front to ensure the perfect match. Selective recruitment should be seen as a winwin for the organization and candidates. NovoAir also feels the importance of selective hiring.
They have different recruitment policies for hiring different types of employees for the
organization.
3) Self-managed teams and decentralization of decision making as the basic principles of
organizational design:
According to HR Bible, one of the most popular myths about teamwork is that the skills of
team members are more important than their energy, interest and drive for the tasks. Another
popular myth is that members are not individually responsible for the successes or failures of
their teams. The truth is that individuals are the smallest units within their teams and that their
personal abilities affect various outcomes in their teams. Teams often arise when employees
come together to accomplish a common goal. Teamwork within the workplace not only benefits
the workers but also significantly affects the business.
Work Efficiency
Teamwork enables you to accomplish tasks faster and more efficiently than tackling
projects individually. Cooperating together on various tasks reduces workloads for all
employees by enabling them to share responsibilities or ideas. Teamwork also reduces the
work pressure on every worker, which allows him to be thorough in the completion of the
assigned roles. In sharing ideas or responsibilities, every employee should have a role that
suits his specialization. You should also consider employees' levels of interest in the project
at hand, which positively influences the efficiency or speed of their output in accomplishing
the task.
Improved Employee Relations
Teamwork is important in an organization because it provides employees with an
opportunity to bond with one another, which improves relations among them. Workers who
constitute a team working on a project often feel valued upon the successful completion of
such tasks. A situation in which all of them find a chance to contribute towards the tasks
improves relations within the team and enhances their respect for each other. Improved
employee relations also result from the fact that teamwork enhances cohesion among
members, thanks to increased trust among them.
Increased Accountability
Teamwork increases the accountability of every member of the team, especially when
working under people who command a lot of respect within the business. Team members do
not want to let each other down and hence do their best to contribute to the successes of
their teams. In contrast to working solo on a project, peer pressure is usually high within
teams such that cases of low morale are less likely to impact individuals. As a business
owner, you would benefit from increased productivity through efficient team projects,
which may be completed well ahead of the deadline.
Learning Opportunities
Cooperating on a project is an opportunity for new workers to learn from more experienced
employees. Teams often consist of members who differ from one another in terms of skills
or talents. Working together is a great opportunity to acquire skills that an employee never
had beforehand. Unlike working alone on a project, teamwork affords people the
opportunity to challenge the ideas of each other and come up with a compromise solution
that contributes to the successful completion of the task. Unfortunately this concept is
totally new to NovoAir. Reason they are practicing very traditional corporate policy to run
their administration. But there are few committees that are required to follow team work
strategy. Very few departments also follow the same. But if we consider the whole scenario,
in that case NovoAir doesn’t follow this strategy. In this structure there is not any scope to
establish this practice. But whole world is well concerned about the importance of team
work. So I hope NovoAir should also realize this importance & establish team work
strategy to face global challenges.
4) Comparative high compensation contingent on organizational performance.
Compensation can include monetary and non-monetary components. Compensation often
includes an employee’s base salary and additional benefits, such as health insurance, retirement
plans and performance bonuses. The compensation packages a business offers to employees
affects the company’s recruitment rate, retention rate and employee satisfaction. Several federal
laws affect the compensation that businesses offer. A business owner should understand the
importance of compensation and the prevailing laws to remain competitive in the market.
Recruitment
The compensation packages that businesses offer to employees play an important role in the
company’s ability to attract top talent as job candidates. Top-performing employees greatly
impact the competitiveness and productivity of a small business. The specific components of an
attractive compensation package vary per employee. A high base salary may attract a top job
candidate that is 20-something and single, while a job candidate with a family may consider a
flexible work schedule extremely important. According to John Rossheim ofMonster.com,
recruiters should research a job candidate's current or prior salary and benefits to get an idea of
what is important to the candidate.
Motivation
Compensation often impacts an employee’s motivation and job satisfaction, although it is not
the only factor. According to an article written by Mae Lon Ding of Personnel Systems
Associates, compensation systems positively impact a large percentage of workers'
performances. Many employees feel motivated to help their companies succeed if the employer
shares its profits with employees, such as with bonuses or profit-sharing plans. The greatest
impact of money on productivity and performance is in jobs where performance is directly
related to compensation. For example, the knowledge of receiving a bonus after achieving a
certain sales quota will likely motivate a salesperson to increase productivity.
Retention
Retaining productive employees is critical to running a successful business. Retaining
employees saves companies money in training costs and helps maintain an efficient and
knowledgeable workforce. Health insurance and retirement packages are benefits that many
employees desire from their employers. Companies that offer these benefits have a much better
chance of retaining workers than businesses that fail to offer benefit packages. Other ways to
retain employees is through regular promotions, which not only provide an employee with a
higher base salary, but also the ability to take on more responsibility in the workplace.
Compensation Laws
Certain laws regulate the compensation and wages small businesses must offer employees. The
Fair Labor Standards Act regulates the federal minimum wage, child labor, overtime wages and
equal pay. The Equal Pay Act prohibits employers from basing compensation on an employee’s
gender. Under the Equal Pay Act, a company may still base compensation on seniority or merit.
Managers of small businesses must keep their companies in compliance with all laws. Failing
to comply with compensation laws can result in a company facing penalties. Though the pay
scale of any organization is very confidential, still I managed to know only one group’s pay
scale with which we will be easily understand that employees of NovoAir are underpaid than
other Airlines companies.
5) Extensive training.
Thinking about the role of professional training, it is meant to help to succeed in the job.
Extensive job training ensures that one can experience more success, especially because more
training opportunities give to the person added resources to use
when they encounter challenges at work. As an employee, a person must be proactive in asking
for what you need so you can increase your performance over time.
Technical Skills and Abilities
You can only succeed if you do your job well. It helps if you receive the resources to improve
your technical skills and abilities. Ask for these resources by communicating effectively with
your supervisor and human resources department. If the training opportunities you receive at
the beginning are limited, ask for retraining and new training opportunities as they become
available. Increase your ability to perform tasks, focusing on both quality and efficiency.
Growth
With extensive job training, you can improve as a technical employee. Over time, you become
more adept at performing job tasks and you add new job tasks to your repertoire every year.
This process is important and necessary for your organization to grow. Without training, you
and your coworkers cannot develop professionally and the organization cannot realize its
operational potential. If you want your organization to succeed, you should try to gain the most
from every training program.
Value for Employers
Your employer makes a front-end investment in you in terms of training. By finding the most
appropriate training resources, you are equipped with the technical knowledge you need to
perform your job at the basic level. Through extensive training, you are given extra tools to
perform your job. For example, through cross-training and management development
programs, your organization prepares you to assume roles in the organization beyond what you
presently do. Your intellectual capital, including your job knowledge, is valuable to your
employer.
Empowerment
One of the things that extensive job training gives is self-empowerment. As you get better at
what you do, you should get rewarded with increased flexibility in work assignments and
autonomy. For instance, your boss should trust you to choose methods for completing job tasks.
If you are developing for higher roles in the organization, this type of independence is
important. You get more satisfaction from your job. You also know that you will have to help
others feel empowered when you become a manager of people and/or resources. NovoAir is
very strict about training. They spend large amount of their budget in training & employees
development. Due to confidential issues I couldn’t know the actual amount of the budget they
spend for training. But most of the new employees have to go through BATC training for first
three months. They also invest a huge amount of money in cadet pilots training. So we can say
the airline follows this extensive training policy very seriously.
6) Reduce status differences
NovoAir maintains status differences in so many ways.
 Cafeteria: There are two cafeterias in the airport. One for the officers and other for staffs.
Price of food is also different
 Prayer Room: Prayer room is also different for these two groups of employees.
 Transportation: Officers use microbuses for transportation facility & stuffs get the buses.
 Uniforms: Different pay group officers wear different ribbon in their shoulder. Admin
officers don’t have any ribbon. They have to wear white shirts which are provided by
NovoAir.
Unfortunately employees are happy to practice all of this. This is also their organization’s
policy. So it’s not that easy to change it by a night as they are practicing this for long 30
years.
7) Sharing information
In NovoAir most of the employees don’t share any information at work. Some of them do that
but only in department. That’s also true the airline maintain confidentiality regarding sharing
information. So there is no scope of establishing this practice.
Competitive Advantage:
NovoAir is the first airline company of Bangladesh to start using Embraer aircraft. This ensures
maximum comfort and safe flight. For domestic route, Dhaka to Chattogram or other major
cities of Bangladesh, other airlines fare is in between 2500BDT to 5000BDT, whereas NovoAir
charges from 2300BDT to 4000BDT depending on the distance. Also they are the first
company to introduce paperless ticketing. Moreover they provide “loyalty reward card” for
frequent fliers named “Smile”.
3
Objective 3
What HRM challenges will NovoAir and the aviation industry face in the 21st century?
Critically discuss.
The airline industry is perhaps one of the most volatile industries in the world. It is an industry
whose way of doing business is constantly changing due largely in part to outside forces. Not
only are they subject to regular bankruptcies, mergers and acquisitions, they are subject to such
uncontrollable factors as the political and economic situation of society and its customer base.
Thus, the human resources manager in an airline industry has the challenge of staffing for this
ever-changing need. [ CITATION Lin17 \l 1033 ]
The airline industry needs are in a constant state of flux. The first step the human resources
manager must take is to establish a system that allows for a regular evaluation of the particular
needs and then make recruitments based on those evaluated needs. Within the industry there are
numerous different levels of positions, from executives to pilots, from stewardesses to
maintenance personnel. The human resources manager will only be able to successfully recruit
and thus staff each of these diverse needs if they create a line of communications with each
department in order to access their specific needs and then base the recruiting plan on this
gathered information. [ CITATION Wen03 \l 1033 ]
The airline human resources manager's job is complicated by the challenge of the ever-changing
need of the airline industry. Because the industry is rapidly changing, job security is a regular
question of an employee at any level. For this reason, the airline human resources manager must
recruit for the future, a place where they can offer some amount of a guarantee for job stability.
The three main issues that a human resources manager will face in the aviation industry is the
increase in the amount of outsourced jobs, recruiting personnel who are qualified to handle the
increased level of technology involved in the industry, and to be able to successfully handle
employee disgruntlements and possible strikes or other union-based actions. The airline industry
has suffered a spate of negative issues lately, notably the mismanagement and faulty mechanics
of Biman Airlines and the Us-Bangla Airlines followed by a seemingly sharp increase of
customer complaints against other airlines for similarly poor experiences. While this resulted in a
public relations nightmare for those organizations, it may likely point to a deeper, underlying HR
issue. [ CITATION Raj18 \l 1033 ]
Availability of applicants with the right skill levels and qualifications, along with the salary
demands of new applicants make recruitment the biggest challenge for HR. Job applicants
prioritize training and career development opportunities as most important. Only 28 percent of
HR professionals say that current training is very effective highlighting the fact that the aviation
industry is inadequately meeting this demand, the quality of training programs in particular.
Digital and IT skills take second place in the aviation sector. HR professionals say that safety and
customer service skills are priorities for training and development compared to IT and digital
skills.
Deep diving further into the aspects which help in attracting and retaining talent, the HR
professionals identified career progression opportunities (49 percent) and development and
training (33 percent) as high priorities in job satisfaction and retention, besides salary packages
(70 percent), which is clearly the top priority for talent.
With recruitment being a major challenge, retention of current employees becomes even more
critical. If the challenge wasn’t already great enough, over three-quarters of respondents (77
percent) believe it is becoming even more difficult to retain talent. This is even more challenging
as millennials tend to work at twice as many companies within their first five years of
employment than was the case twenty years ago. A high-quality training and development
program are fundamental to attracting and retaining staff. After basic salary, the most important
factors for new applicants to the aviation industry are career progression and development &
training opportunities. [ CITATION Cri11 \l 1033 ]
Conclusion
So far, there is no record of accident or any kind of mishap by NovoAir. Besides they are good at
maintaining strict and regular flight schedules. Except few cases of unavoidable and weather
issues, NovoAir has so far handled their flights quite regularly.
Additionally, the company have also appointed an efficient team of qualified flight attendants to
serve their passengers. They are always under training on regular basis to tackle any crisis. They
have always maintained a fair ticket price right from the very beginning. They have provided
enough options for different type of passengers. To meet their customer demands, they maintain
a number of packages. The packages include Special Promo, Promo, Special, Discount, Saver &
Flexible. Among them the Special Promo is the cheapest & Flexible is for the ones who seek
luxury. They provide modest & healthy snacks of good quality to their passengers. The
management always maintains the quality of the food under strict observation.
NovoAir started their aviation business with a nice tagline ‘Truly Yours’. And they mean it in
every aspect. In every step from booking the ticket to landing the destination, they always try to
make you feel at home. NovoAir never compromises with the safety standards of their
honourable passengers. Besides, there have always been different type of challenges. But still
they have maintained an excellent service record. And recently they successfully passed their
first 6 years of service. Their vision is to take it even further.
Imbalances in the fuel price, physical infrastructure problems and insufficient market analysis are
being blamed for the failure of private airlines to make a significant impression on the aviation
industry of Bangladesh.
Industry insiders say commercial aviation is considered a “regal” business and a great
opportunity. But of the 10 airlines to have operated services since 1994, six private airlines have
already been shut down and another one is temporarily suspended. [ CITATION She16 \l 1033 ]
Recommendations
I.
II.
III.
IV.
V.
Classic conditioning: We repeat the behaviours for which we are rewarded. Whether
implicit or explicit, if the corporate culture prizes rules and adherence to them, and those
employees who enforce the rules are generally rewarded, then they will more readily
apply this to others as well. Rigid rules result in a lack of autonomy and ability to think
flexibly. On the other hand, if the culture promotes an inclusive and shared vision of
success where employees are valued, they will be more motivated to go the extra mile to
ensure happy customers.
Doing unto others: Conversely, if employees are routinely treated harshly or feel that
supervisors don’t care about them, most often their resentment may cause them to treat
co-workers or customers in the same manner. A focus on rules, process and efficiency
that is prioritized above employee and customer wellbeing can result a toxic corporate
culture. Managers who focus on supervising rather than coaching or mentoring, and leave
little or no room for feedback and discussion, will not foster positive relationships with
their staff. Nor do they set a good example for the employee.
Don’t pay lip service: Especially in hospitality, good customer service needs to be seen
as a clear priority by the executive team, not just something that’s paid lip service. If you
want to ensure your employees provide good customer service, involve them in defining
what those service standards are. They are the ones closest to the front line and in the best
position to know what matters to your customers and what their pain points are. Through
their direct experience, the may know how to best address the customer’s concerns. Invite
them to share their learnings with others on the team.
Prioritize training: Don’t just set an expectation of excellence without supporting it.
Ongoing training and support of employees on how to appropriately handle frustrated
customers and diffuse charged situations is important. As with anything, practice makes
perfect. Establish a regular training program with role-playing, brainstorming, and case
studies, so that these skills are constantly honed and updated. A company-wide email
reminding employee of the customer service standards doesn’t cut it. Set a standard
internally for how mistakes are handled by providing supportive, calm assistance.
Berating or throwing an employee under the bus to please a customer will not likely yield
a positive result – or display problem solving best practice.
Pay attention: To how employees are behaving. We live in a world of increased demand,
stress and expectation, with an inverse proportion of time, patience and reward. This
paradigm is perhaps felt most by those in customer-facing roles, who may deal with
hundreds or even thousands of different people, and personalities, each day. Check in
with them regularly and when they start showing signs of stress, pull them off the front
line and let them diffuse their stress with non-customer facing tasks.
As with anything, we can’t get to the heart of a problem and fix it without talking about it and
addressing it truthfully. Culture problems can usually be resolved when management has the
courage to face issues openly and provide the right tools, and environment that will foster real
and positive change. [ CITATION Wor17 \l 1033 ]
Implementation:
References
Hale, S. (2016, August 21). HR Challenges in the Airline Industry. Retrieved from Hale HR:
http://halehr.com/hr-challenges-in-the-airline-industry/
Ray, L. (2017, November 21). Human Resource Trends in Aviation Training. Retrieved from
smallbusinesschron: https://smallbusiness.chron.com/human-resource-trends-aviation-training81148.html
Tandon, R. (2018, August 21). Jobs To Grow But Hiring Biggest Challenge In Aviation Industry. Retrieved
from BW Business World: http://www.businessworld.in/article/Jobs-To-Grow-But-Hiring-BiggestChallenge-In-Aviation-Industry/21-08-2018-158242/
Wahl, C. (2011, November 30). HR in the Aviation Industry: Time to Develop a New Generation of
Leaders. Retrieved from EgonZehnder: https://www.egonzehnder.com/functions/humanresources/insights/hr-in-the-aviation-industry-time-to-develop-a-new-generation-of-leaders
Wensveen. (2003). Aviation Industry. Aviation industry challenges, 20-22.
Workplace Today: Troubled skies: Airlines may have important HR issues to resolve. (2017, July 4).
Retrieved from Candido Consulting Group:
https://www.candidoconsultinggroup.com/insights/troubled-skies-airlines-may-have-importanthr-issues-to-resolve