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Human Resource Management (HRM) serves as the base in an organization. Without having proper management of human resources, company cannot have sustainability in its business. Firms perform this function to maximize the productivity of employees. This function focuses on policies and systems made by human resource manager to achieve the strategic objectives (Michael, Boella and Goss-Turner, 2013). In the present report, there will be discussion on the role and purpose of human resource management in a service industry. For this purpose, EasyJet has been chosen as the organization which is a British airline and deals in hospitality and travel and tourism sector with having its headquartering in England, UK (EasyJet, 2015). A human resource plan will be designed here that is based on demand and supply for the selected firm. Along with that, various employment laws that affect the management human resources will be highlighted with many other concepts related to HRM.
In the present scenario, HRM proves to be very helpful in making the hospitality and travel and tourism industry updated with new legal information, data, statistics and examples. Thus, in EasyJet also, human resource management is having important roles and purposes. Its major role in the firm is to make the current employees aware with current business and social environment. The UK hospitality industry has seen a considerable growth in recent years. One of the most important reasons behind its success is effectual human resource management done by companies (Bohlander and Scott, 2010). Through having proper HRM function in the firm, EasyJet is managing its existing staff in an effective way and also, it is planning for the future staffing needs. It is also one of the important roles of HRM which is commonly known as workforce planning. Another role that HRM plays is of filling the leaving gaps that have occurred because of retirement of a person from the organization. Thus, enterprise does it by promoting the existing member from inside the firm which reduces the cost of recruiting new member from outside (Bruce, 2006).
First and foremost purpose of HRM in the EasyJet is to hire, train and develop staff and where necessary, to make them disciplined or even to dismiss them from the firm. Human resource management in organization focuses on using new technology which requires new skills like global positioning equipment. For this purpose, employees need to be trained and developed in order to use advanced techniques. This will ultimately help the firm to have skilled workforce with having efficiency in its operations by using modern techniques which increases the productivity at low cost and efforts. In addition to this, EasyJet also offers a good salary to its employees as a part of function of human resource management so as to keep the workforce happy and satisfied (Callaway, 2007). It helps the firm to gain their willingness to perform the work with higher efficiency and thus, leads to increase the productivity. Through training, employees not only gain new skills and knowledge, but also, they get opportunities for their career development which is also one of the purposes of human resource management in EasyJet.
Human resource planning (HRP) refers to assessment of present and future requirement along with doing recruitment on a planned basis with continuous control and monitoring (David, 2009). Process of human resource planning of EasyJet can be done with the help of assessing supply and demand for labor which is like:
1.Business Strategic Plans– It is the first step for EasyJet to do HRP which includes defining future activity levels and making efforts for having new skills. As main strategy of EasyJet is to provide quality services to people in order to become the leading airline, so HRP must be according to that.
2. Resourcing Strategy– It involves plan which comprises of competitive advantage by the way of developing intellectual capital (Draft, 2010). Major purpose of EasyJet is to gain sustainable competitive advantage by decreasing the unnecessary staff cost and through improving its productivity.
3. Scenario Planning– This step involves the matching of changing trends with the existing industry requirements. Thus, human resource planning has to be done accordingly.
4. Demand/Supply Forecasting– It refers to make an estimation of required labor to implement the made strategy in the future. In this, the emphasis is given on both; the number of people, as well as the skills, required (Johnson, Whittington and Scholes, 2011).
5. Labor Turnover Analysis– Then, labor turnover ratio is analyzed to make the supply forecasting. It serves as one of the most important step in the process of human resource planning in EasyJet.
6. Work Environment Analysis– This step involves analyzing the environment in which people perform their tasks and make efforts to achieve the set targets. It is important to provide a healthy working environment to people as then only; they would be able to put their highest level of efficiency and can gain job satisfaction (Stride, Wall and Catley, 2007).
7. Resourcing– It says about developing and implementing the plans in order to recruit, attract and develop labor so that required number of workforce will be prepared for implementing the plan.
8. Retention– It is one of the major tasks for EasyJet which serves as a challenge for it as in this firm, there is labor turnover.
9. Productivity– This step says about preparing and executing the set plans for improving the performance of people and to use the skills and knowledge of people in the most effective manner (Thewlis, Miller and Neathey, 2004). Thus, through it, productivity will ultimately increase.
Employee relations play a significant role in the function of human resource management. It focuses on the relationship between an employer and employee. If it is strong, then proves to be very helpful in providing satisfactory productivity and in motivating people to work with enthusiasm and morale. In airline industry, employee relations are concerned with solving the issues that arises in organization and that affects the work situations (Brown, 2007). As EasyJet comes under the service industry, employee relations play a crucial role in it. Employment relations are directly related to areas like making the working people encourages, increasing the employee productivity and job satisfaction. All these areas are important to work in service industry. This is the reason; to maintain healthy and strong relations with employees are necessary for EasyJet (Davey and et.al., 2013).
In the present world, there is employee relation crisis; however, the current state of employee relations in the airline sector is satisfactory. At the time from which this industry has been established, it is fulfilling all the contractual and statutory rights. It can be said as all the airlines are well aware with all the employment rights and norms and thus, EasyJet also as it is also practicing the same. In this firm, the contract of employment is done as per the statutory requirements of airline industry and after that, it is monitored withy due consideration (Emmerik and et.al., 2009). This contract consists of conditions like working time of employees, overtime, maintaining the work discipline and termination of employment contract in case of any conflict which is against to the company’s policies and norms.
Therefore, it can be said that employment relation of EasyJet is same as of other airline firms in UK in terms of organizational point of view. However, main strategy of EasyJet is providing quality products to grab the market and gain their trust which is somewhat different from other airline organizations as some has low cost strategy and many more. The key success of EasyJet is to keep transparency in its functions and of the administration (Inkson, 2008). Apart from that, in organization, people should have the freedom in order to work as per the framework that is being offered by the contract. Thus, it can be evaluated that EasyJet is expecting to maintain healthy employee relations in their organization with their strategy of providing high quality products (Claes and Heymans, 2008).
Employment law consists of Employment Relations Act and Employment Rights Act which have been enforced by the government for the purpose of protecting both employee’s and the employer’s rights. These acts prove to be very helpful in maintaining good relationship in between employees and the employer. Employment Relations Act basically says about duties and obligations of employers and employees along with the termination of employment, collective bargaining, personal grievance and strikes and lockouts (Keating, 2007). On the other hand, Employment Rights Act discusses about the employment particulars like wages and payment, week offs, time off and suspension, unfair dismissal, insolvency of employer, betting, childcare and Sundays.
One of the corporate strategies of EasyJet is to gain competitive advantage with the help of its workforce, that is, human resources of the organization. It involves high level of employee satisfaction, low payroll cost and increased productivity. In accordance with the employment laws, no matter what the corporate strategy is, EasyJet cannot practice any kind of illegal or unethical practice with respect to human resource management (Christopher and et.al., 2003). In the human resource department of EasyJet, all the areas of employment relations act and employment rights acts are there in which major emphasis is given on the norms of employment relations act. In order to follow this, organization gas to clearly define all the norms of it to the employees and independent contractor. In airline industry, independent contractors are considered to be the common area and this is the reason; they are very important (Gannon, Doherty and Roper, 2012). EasyJet has permitted its employees to get engaged in union activities as well as per this act; they have accepted the individual freedom.
On the other hand, EasyJet also follows the employment rights act. In order to follow this, human resource management plays a significant role. It can be understood in a way that on Sundays also, employees of EasyJet have to work as per the industry requirement. In fact, they have to work on statutory holidays also and need to do overtime as well when required. Apart from that, firm has to employ female workers for working in the late hours because of requirement of service sector. For all these conditions, employment right act is having a major impact on HRM function of EasyJet (Gloet, 2006). In this act, there is one more norm which is very important to be considered. It is that of equal opportunity which says that every employee should equal opportunity in the organization. Thus, for this purpose, EasyJet has implemented equal opportunity policy for its employees. Under this, it implements a performance related pay strategy in which it has set some standards according to which it measures the performance of employees and then pays according to their performance. By this way, every employee gets the opportunity to grab the chance of gaining higher salary. Along with that, it also helps in controlling the compensation costs (Michael, Boella and Goss-Turner, 2013). With the help of this, workers of EasyJet can get an additional pay along with their salary depending on their performance. Thus, in this way, employment laws impact the employees of EasyJet.
Division– Customer Service
Job Title– Customer Service Agent
The main role of a customer service agent in airline services is to make the client sure that their travel plans are satisfactory. They need to make inquiry about reservations, lost luggage, flight information, etc. on an individual basis.
To sell the tickets or to book reservations at the terminal and checking the guests.
To locate the lost luggage and to check the baggage.
To do seat assignments and to handle the boarding passes and passenger assistance.
To help in doing announcements regarding boarding, delays and overbooking of flights.
Customer Service Agent – Manager (customer service)
Customer service agent must be of the age of 18 years or above.
Must have a high school diploma or GED is required.
Should have the previous experience in customer service department and must be willing to work with an flexible schedule
Must be able to perform the tasks in stressful conditions with maintaining a sense of professionalism.
Must pass a test called as background check and the medical test as well before providing the employment offer.
Where– Call center
How– By using computer, reservation system and telephone
With whom– Customer service staff and customers service executive
Process of selection differs from industry to industry and organization to organization as well as position to position for which it is being done. Thus it can be said that selection process of EasyJet which is an airline firm is different from a firm that belongs to hotel industry like Hilton Hotel (Bohlander and Scott, 2010). As EasyJet is an airline, employees working in it require specific skills, knowledge and attitude to work that is completely different from that of Hilton Hotel as in this, proficiencies that are required in the workforce are different. Thus, their selection process is also not same.
The selection process of EasyJet:
The selection process of Hilton Hotel:
Training and development activities play a vital role in making the operations of business effective. Through T&D, employees become more skilled, knowledgeable and gain abilities to work with higher potential. It results in making them motivated and encouraged which ultimately results into increased productivity and efficiency in wok. In EasyJet, as some specific skills are required in order to accomplish the goals of firm, employees are needed to be trained well so that they would become able to do their tasks in a manner, it is required (Christopher and et.al., 2003). Thus, organization gains a lot of advantages by training and developing the employees of it like productivity, personal development, health and safety at work, etc. Being in the airline industry, workforce of EasyJet faces lots of issues while handling the tasks. Thus, they are required to be trained in such a way that they would have all kinds of skills which are needed to perform a task. It includes the way to react in an emergency situation, managing routine procedure, etc. (Thewlis, Miller and Neathey, 2004). There is a huge contribution of training and development activities in the effective operations of EasyJet. It can be explained by the following points:
Profitability– Training and development proves to be very helpful in increasing the profitability of organization. It is because of the reason that through becoming well trained and developed, employees becomes motivated and encouraged which enhances their and organization’s productivity. This ultimately leads to increased profits as well as revenues.
Development of Employee’s Skills– Through training and development, skills and abilities of employees get improved. By learning new concepts and having knowledge about new aspects, proficiencies and abilities of an employee increases which proves to be helpful for company (Emmerik and et.al., 2009). Thus, by providing effective training and development sessions, employees of EasyJet would become highly skilled which will increase their efficiency in work.
Health and safety – Being in the airline industry, EasyJet has various operations in which health and safety of employees needs to be taken with care. For this purpose, proper training is required to be imparted to them. Therefore, by proper T&D programs, employee’s health and safety can be protected.
Healthy Work Environment– With the help of training and development activities, people will become more encouraged which will create a healthy work environment in which employees would work willingly.
Team Spirit– Training and development activities increase team spirit among employees. It helps them to work with coordination and collaboration and thus, helps in keeping them motivated (Claes and Heymans, 2008).
From the above report, it can be concluded that human resource management plays a crucial role in making a firm successful with having smooth operations and high profits. It can be evaluated from the report that without having proper management of human resources in the organization, it becomes difficulty for a firm to have effectual functioning and thus it adversely affects the productivity and so as its revenues. Apart from that, to follow all employment laws and to have proper training and development activities leads a firm to have advantage of motivated and loyal employees (David, 2009). Therefore, in order to survive in the long run with gaining higher profits and systematic functioning, function of human resource management should be taken with due consideration.
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