Human Resource Management plays a cardinal function in driving organisational productiveness and hence heightening profitableness. It is extremely likely that a better direction could hold a positive consequence on the employee relationship, and so it is the sound relationship that drives the inward communicating among the employees of an administration. The squad coordination is a much debated subject for most of the administrations driven by the resilient facets of human resource development viz. compensation and employee dealingss.
The cardinal aims are to understand and instill the coordination accomplishments in a squad and hence adhere to the jobs and benefits of compensation and employee dealingss externally every bit good as internally. In many instances hapless squad coordination has been a major cause in the lowered productiveness of an administration. There has to be greater cognition among the employee of an administration in relation to coordination and therefore switching from being a group into a squad. The members of a group work indiscriminately and are non coordinated and their personal involvements are prioritized than the group itself. However, unlike a group, a squad is coordinated and its members work for to profit their squad and themselves. To instil coordination among employees in an administration, the Human Resource direction formulates some schemes and policies to construct a squad and expression after the benefits of the staff of an administration.
Two of the facets that greatly add up in edifice coordination among employees are the compensation and employees dealingss which brings consistence and transparence to the system, important to derive trust of the employees. The compensation subdivision of HRM looks into the affairs of transfering work, sorting the employees on the footing of wage, engaging temporarily. It besides reflects upon the current market worlds to the administration and formulates fillips in relation to standard such as effectual public presentation. The employee dealingss subdivision is concerned chiefly with the working environment that an administration provides to its employees. Besides it is concerned with dealingss among the top direction and their subsidiaries. ( Human Resource Management )
The generalized thought of the compensation policies of an administration is the beginning to better employee dealingss and to keep that behavior and synchronism among the administration and its HR criterions, the sections of compensation and employee relation of HR in a company such as “ Air Arabia ” that plays a critical function. The company has been progressive, thanks to their newer attack that is taking them to net incomes and enlargement giving them strong human capital to implement better HR patterns. It is of import to understand the company and its concern before inspecting its HR policies and employee satisfaction. Therefore, it would be better to analyze “ Air Arabia ” and understand the strategic direction policies and basicss followed by the administration. Then, it would be followed by analyzing the compensation methods employed and their consequence on the employee dealingss.
Team Coordination and HRM
The US Coast Guard section conducts a plan called the “ Team Coordination Training ” which has shown that approximately 60 % of the mistakes in their operation affecting accidents and bad lucks have shaped because of human mistake and deficiency of coordination. The grounds chiefly included hapless opinion, uneffective supervising and inattention. The accomplishment to absorb team coordination among the employees of an administration is similar everyplace whether one trades with an administration or an establishment. Better employee dealingss and compensation policies could turn out ready to hand in bettering coordination among employees and therefore construct a group into a squad. ( Team Coordination Training )
The squad coordination, organizational construction and human resource direction patterns are linked to one another and therefore an administration ‘s success or growing is straight governed by the balance which is administered because of such coordinated attempts. The assorted undertaking coordination theoretical accounts which illustrate the market features are perpendicular control, horizontal coordination and intercrossed coordination. The human resource direction is responsible for hiring, compensations, benefits, employee dealingss etc. , and therefore formulates policies and strategizes to organize the employees of an administration to heighten productiveness and besides protect the employee ‘s involvements.
The greater the employee coordination in a squad, the more is opportunities that it would trust on the horizontal coordination i.e. , the employee dealingss and interaction between the top direction and sub-ordinates would be better. Besides the employees would play a critical function in determination devising procedure.
The lesser the employee coordination, the more likely is the perpendicular control which implies that the top direction would be involved in all determination doing procedure and their interaction with the sub-ordinates would be improbable.
Therefore, squad coordination plays a significant function in heightening productiveness and conveying up the market value of an administration. Hence, it is of import to see compensation and employee dealingss under HRM as an effectual constituent which could undertake the job of incompatibility and therefore, construction the work environment. ( T Kato, 2007 )
About Air Arabia
Air Arabia was incorporated on 3rd February 2003 and began working from 28th October 2003. It started out as a Limited Liability company ( LLC ) and later on, transmuted into a Public Joint Stock company ( PJSC ) . Since, so the administration has shown enormous growing in the countries of fleet, employee count, web and profitableness. It is in a joint venture with Sharjah Airport which has enhanced its character of on-board merchandises. Recently, a twelvemonth ago the company began its operations from Casablanca, Morocco, the 2nd hub for the air power industry and besides is interested in puting up a 3rd hub in Egypt.
It is regarded as the first of its sort ( Low Cost Carrier ) to be runing in Middle East and North Africa part. Currently it has a widespread web over 57 finishs which is a singular effort sing its start of 5. Aviation Week besides rewarded the administration as top Low Cost Airline of 2009 for its opposition to recession and relentless growing. The company besides has strong base on the Dubai Financial Market, thanks to its big base of local and international investors. ( Air Arabia Know us )
Vision and Mission of Company
The vision of the company is to be a prima budget air hose in the universe sphere. Its vision reveals the intent and the values of the organisation. The company aspires to increase its planetary laterality in footings of repute, net income border, operational excellence, invention and human capital. The company in the past six old ages has been pressing difficult onto achieve its vision. The yesteryear of the company is the narrative of its success. Its policy of amalgamations and acquisitions has greatly reflected on its growing programme. The mission of the organisation is to alter radically the air travel in its limited kingdom of discourse. It is acute on explicating a concern theoretical account and attack which caters to the demand of its premier audience. The slogan of the organisation is to offer first-class and efficient services to its leaders, society, riders and shareholders. The mission of the company greatly highlights its organizational intent i.e. , to be recognised as the best LCC in the universe.
The aspiration of the organisation is non random but extremely organized and directional which has shown a changeless addition in their net incomes and the quality of services offered by the company. The administration has kept the involvements of its employees in head. The company has more than 1000 employees working soon turning quickly adding to their abundant human capital. The company has been thriving and besides portions a acute involvement in the corporate societal duty. It has by far managed to supply low-cost air travel and besides get down the ‘Charity Cloud School ‘ which aims at supplying better installations in footings of instruction and wellness to the underprivileged people. Such an unfastened measure to the development of the society enables trust among its employees towards the administration. The success of the administration and immense net incomes even when hit by recession shows that the administration is good structured and a difficult working human capital. The uninterrupted increasing human capital or employee base is because of sheer success and trust that is being dwelled in the heads of the employees. ( airarabia.com Strategy )
Administration Practices
Air Arabia has been turning steadily and responsibly, thanks to its well-structured, controlled and administered policies and administration. The company supports and follows the international Corporate Administration Standards as guided by the declaration R/32 by Emirate securities and Commodities Authority.
The administration is nil but set of patterns a company employs. Air Arabia recognises these patterns essential to supply a structured, controlled and directed relationship among its stakeholders and the top direction and board of Directors. Such an attack has helped company prosecute its aims and implement policies determined to convey approximately advancement to its current province.
The company adheres to the undermentioned criterions:
The patterns pursued by the Board of Directors and the top direction must be standard and significant.
The aims and determinations undertaken to carry through the aims must be controlled in affairs of environment and procedures.
The understandings sing transparence and disclosure must be purely followed.
The protection of stakeholders is the key to future development.
Air Arabia follows certain policies formulated to back up the above criterions:
Code of Ethical motives
Corporate Social Responsibility
Related Party Transaction Policy
Whistle Blowing Policy
Shareholder Communication Policy
Share Covering Policy ( Annual Report – Air Arabia, 2009 )
Organizational Chart of Air Arabia
HRM in Air Arabia
The section of Human Resource in Air Arabia is headed by Rachel Abraham. She had earlier worked for Gulf News as an Assistant Personal and Administrative Manager. After fall ining Air Arabia in the twelvemonth 2003, she worked in the company looking into the affairs related to company policies, enlisting, public presentation direction, employee dealingss, compensations and benefits, preparation and other HR issues. She has an extended experience of over 10 old ages in relation with administrative services and human resource direction. Since, she is known to hold equal cognition of the UAE labor Torahs ; the individual of her stature is an plus to the administration. Some of the HRM patterns of import in relation to team coordination are given below. ( Management Team )
Compensations and Benefits
The compensation is related to wages/salary construction where the salary varies depending upon the appellation, committee, virtue and fillip availed by an employee. Air Arabia has a big figure of employees in assortment of appellations and some are besides paid fillip or committee depending upon the work they are involved in. Some of the many appellations an employee at Air Arabia can keep are Performance Engineer, A320 Captain, A320 First Officer, Pilots, Cabin Crew, Cabin Crew Manager, Receptionist, HR Officer, Internal Auditor, HR Manager, Application Developer, Manger – Undertaking Implementation and Production and many more.
Out of these many factors, allow us analyze the compensation on the footing of appellation which would farther cover the fillip and inducements availed by an employee. Therefore, the compensations and benefits availed by the employees are:
Benefits
Education Allowance – it is given for the instruction of kids analyzing in or outside UAE of a working employee. However, the allowances vary as the sum given for a kid analyzing in UAE is AED 100,000 and for one exterior is AED 75,000. The applicable age of a kid is from 4 to 18.
The officers can besides hold portions of the company deserving AED 250,000. However, this is optional.
The trueness is considered a appeal in the administration as every twelvemonth a fillip is paid to the employee which starts with AED 500 and continues to turn as the services are continued by the employee towards the administration.
Medial insurance is given to the household including three kids and married woman.
The employee is besides covered under insurance strategy worth AED 250,000.
Bonus is given to the employee depending upon the work pursued by the employee
An terminal of service policy followed in UAE grants the employee an excess amount as one ‘s services are terminated.
Annual leave of 45 yearss and one-year tickets by Air Arabia are given for travel, therefore offering good travel allowances.
Benefits
Education Allowance – it is given for the instruction of kids analyzing in or outside UAE of a working employee. However, the allowances vary as the sum given for a kid analyzing in UAE is AED 75,000 and for one exterior is AED 50,000. The applicable age of a kid is from 4 to 18.
The officers can besides hold portions of the company deserving AED 150,000. However, this is optional.
The trueness is considered a appeal in the administration as every twelvemonth a fillip is paid to the employee which starts with AED 350 and continues to turn as the services are continued by the employee towards the administration.
Medial insurance is given to the household including three kids and married woman.
The employee is besides covered under insurance strategy worth AED 250,000.
Bonus is given to the employee depending upon the work pursued by the employee
An terminal of service policy followed in UAE grants the employee an excess amount as one ‘s services are terminated.
Annual leave of 45 yearss and one-year tickets by Air Arabia are given for travel, therefore offering good travel allowances.
Cabin Crew
Compensation
Detailss of the Fixed Salary received by a Cabin Crew working for Air Arabia
The pay or wage besides varies depending upon the figure of responsibility hours
in the flights of twenty-four hours clip, 1 recognition block hr ‘s allowance would be paid per hr
in the flights of dark clip, 1.5 recognition block hr ‘s allowance would be paid per hr
Benefits
The Medical insurance is given which is merely for the employee.
Visa disbursals are covered by the company for the employee merely.
The one-year leave of 30 yearss and an one-year travel allowance is besides given in signifier of free tickets for the household dwelling of partner and two kids.
The fillip is given depending upon the public presentation of the employee.
The expiration of services screens certain benefits as has been made compulsory by the UAE authorities.
Therefore, compensations and benefits vary greatly as the appellation alterations. There was a noticeable difference in the compensation in footings of fillip and allowances of an employee designated higher to the 1 designated lower. This is based on the making of an employee and the work an employee is supposed to set about. The benefits besides are similar to the compensations with the higher direction acquiring greater benefits than their sub-ordinates. ( Careers in Air Arabia )
It is nevertheless of import to observe that even the lower degree employees avail benefits covering their medical and insurance claims and derive fillip on working difficult. Therefore, the compensation and benefits provided by Air Arabia are at par with the international criterions and administration policies formulated by UAE and the company. The compensation is given on the footing of occupation they do and even the minimum benefits cover the common benefits provided by any air power industry.
Employee Relationss
The Air Arabia follows an unfastened policy to enroll its employees and does non know apart among the appliers on any footing. Since, the industry is turning faster than of all time ; the enlisting procedure is rather flexible and besides attractive for the most gifted people of the air power industry. The rapid development has generated a demand for greater figure of employees and the success has been to their advantage offering its employees with the best possible resources and benefits. Innovation and endeavor development are the cardinal factors that drive the enlisting procedure as the company strives for enlargement in all parts of the universe. The unfastened communicating policy followed in the premises of this administration is brooding the air hose industry with the best people around the Earth who are originative and energetic every bit good. The choice policy does non know apart the applier on the footing of race, sex, faith, nationality, spoken linguistic communication etc. , therefore the administration enjoys a rich cultural and every bit diverse. This has helped the company to spread out to other countries in the universe and so extend the appeal of globalization.
Recently the company introduced an “ Online Recruitment System ” which helped appliers use for the occupations they considered themselves fit for, which is examined by the company functionaries subsequently. Peoples who meet the demand are hired. Therefore, the company is basking the assuring power of information engineering every bit good as doing the procedure of enlisting much faster and robust.
( Annual Report – Air Arabia, 2009 )
The figure above show the head count growths i.e. , addition in the figure of employees hired over the old ages. Here the twelvemonth 6 is 2009. Therefore, a company which had begun with few employees and subsequently went on to engage more than 1000 people shows that the growing has been steady and profound. Besides, the count of the employees by recruited by the HR section is ever up, even though the company faced the worst of the recessions in the twelvemonth 2008. This shows the religion, trust and the bond of equality that the employees portion with the administration. The company adheres earnestly to the jobs of its stakeholders and society ; this has helped it to set up itself efficaciously.
The internal environment of Air Arabia is rich and chiefly focal points on edifice strong human capital, guided by top direction squad and supplying sole benefits to its stockholders. The company is headed by Adel Ali who has been recognised as the ‘Airline CEO of the twelvemonth ‘ 2008 and 2009. This has helped the administration earn high degree of transparence in their attack and spread out their base. The stakeholders have earned rich dividends of over 10 % in the recent old ages. The employees are sound and offer the company with resilient spectrum of planetary success doing usage of cutting border engineerings. The Charity Cloud Project started by the administration was an effectual measure in their Corporate Social Responsibility programme. ( Annual Report – Air Arabia, 2009 )
Interview with Head of HRM
The interview with Rachel Abraham ( Head of Human Resource Management ) , Air Arabia is as follows:
Air Arabia has been executing good over the past 6 old ages and has been profitable in malice of the recession. How has the company managed to make it?
The company follows a dynamic concern theoretical account with a co-ordinated human capital which helps them to accommodate to altering endeavor environment.
The scheme of the company was a clear indicant of its strategic aims. ‘Pay less. Fly more ‘ was an first-class thought incorporated in the air power industry. The company since so saw a important addition in its net incomes and gross coevals. It is the first air power industry to be included in the Dubai Financial Market where it improved on its portion monetary value and besides provided its stakeholders with dividends of 10 % per annum. The company has expanded at a higher rate over the past old ages and was simply affected by recession, thanks to its lower monetary values.
It is indispensable to stay on toes all the clip because of the rapid alterations that are seen in Low Cost Carriers. The ability to accommodate to altering scenarios has helped the administration cope up with recession. Therefore, the company is good positioned to alter or switch cogwheels when required because of its well-structured and administered policies.
How would you exemplify the increasing competition in Middle East among the LCC ‘s?
We had taken the initial measure to present to the Arab universe with such an alternate dorsum in 2003. Such a compelling concern scheme is rather moneymaking and therefore many of the air hose companies have adopted the same but being the first has its advantage. We have had clip to spread out our range to the outside universe and therefore give ourselves a trade name name.
A better air hose demands to better its engineering to get by with the altering universe so that it could offer the best services at low-cost monetary values and it must hold the resources to implement the engineering and run it. The company is in understanding with Airbus to supply 44 A320 aircrafts which gives a clear image of their success narrative and spectrum of chances waiting to be unleashed. The Air Operators Certificate by Egyptian Civil Aviation Authority has opened a new door to their increasing planetary range doing Egypt as their new hub. Besides, it has proved their worth and highlighted upon the employees who are talented and originative enriching their human capita.
Air Arabia Maroc was launched in the recent times. So, how ‘s it traveling?
We had anticipated a market at that place for the LCC and besides served as a transition to link to the remainder of the universe. Hence, in footings of chances and achievements Air Arabia Maroc has been a smart concern enterprise for us.
The other major job which an administration faces when traveling outside one ‘s ain state is to happen employees and engage the right 1. This is because of the cultural differences that might predominate. However this affair was widely sought out in our instance as we had already begun to engage people from all over the universe. This gave us flexibleness and besides a rich civilization among our employees. The planetary enterprise taken by us was non wasted as we were prepared to cover with the other portion of the universe as we dealt with our ain people. No out of the box alteration was required in the policies as they were dynamic plenty to retroflex to the alteration.
How of import ‘team coordination ‘ is in your sentiment and how have you managed to convey about possible alterations in the company policies to reflect upon it?
Team coordination is of critical importance for non merely the company ‘s interest but besides for the overall development of an employee. We take this affair to utmost earnestness and hold laid out antiphonal administration patterns to reflect upon it. I am specialised in the HR policies, paysheets, compensation and employee dealingss etc. , therefore with a decennary old experience I have brought about better compensations and benefits to our employees. The basic benefits and allowance such as travel, medical, insurance screen, fillip etc. , are covered by our company which has helped maintain the immature and gifted heads about interested.
To construct an administration is to construct its human capital. So how do you convey about this doctrine into Air Arabia and enroll the right people for the occupation?
There are a figure of steps we undertake. Thankss to our newer online system of enlisting, the work gets easy and faster. Our employees undergo developing before they become portion of the company. This preparation procedure is more like an internship which helps them larn more about the company, its work and its policies. A individual found tantrum for the occupation is hired subsequently on as an employee.
To maintain the people ever interested we follow a policy of giving company portions to the employees. Therefore they being our stakeholders they are our greatest assets and we hope that their growing is mirrored to the advancement of the company and therefore we shall be met by the highest degree of operational excellence yet another twelvemonth.
Decision
The company Air Arabia is a mere 6 old ages old which is rather less still has shown possible in its field by accomplishing exceeding effort over the old ages. By going the top performing artist in LCC for the twelvemonth 2009, it is all set to gripe up its trade name name. The company has been exceptionally assuring in implementing its concern theoretical account in and out of UAE. The newer hub in Egypt is all set to link them to the western states chiefly Europe for the clip being.
The compensations and benefits provided by the company are at par with the western states. The rich cultural diverseness among its human capital is a ground to hearten for the administration as it has managed to interrupt the cultural barrier and travel further encouraging globalization and external contacts. The HR section is active and takes attention of the policies that govern the administration. The robust nature of the company and their dynamic attack which offers them greater flexibleness is a blessing for the employees working for them and is an attractive prospectus for the 1 ‘s looking for occupations in this country.
Therefore, Team coordination is of import to construct among the employees for a long and steady horizontal coordination. The HR policies such as compensation and employee dealingss have paved manner for the same. The employee of today is smart and to pull a gifted individual to work for one ‘s company requires alterations in footings of policies, work environment and flexibleness. The Compensation and benefits policy of HR is feasible as it measures the employee public presentation and gives fillip to the deserving campaigners. The more of import thing to observe is that the greater squad coordination is helpful in using sound opinion which is logical based on the available information. Therefore, the criterions set by an administration must reflect upon the aims of the company which must be good structured and governed. ( Compensation Strategy )
