Essay about Hrm Case Analysis

1046 Words Feb 27th, 2016 5 Pages
XIAMEN AIRLINES: PAY FOR PERFORMANCE

Company Overview:

Xiamen Airlines was established in July, 1984 jointly by CAAC and the Fujian Provincial government. By December 2013, its shareholders were china Southern Airlines Co. Ltd., Xiamen C&D corp. Ltd. And Jizhong energy Resources Co. Ltd with 51%, 34% and 15% of shares respectively. They are the only Chinese Airlines featuring all Boeing fleet, operating 102 fleet with 16,650 seats on 218 domestic routes and 26 International and regional routes. They are known for its excellent customer service and extraordinary safety performance. In 2014, Xiamen Airlines employees 11,000+ employees including 1000+ pilots.

Airlines Industry in China:

Strengths | Weakness | *
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The others are market practice, current market rate for the job, attraction / retention issues faced, employees’ current positioning on the pay range etc.

Pay for Performance System: * The company adopted performance payment compensation system to its pilots based on flying hours * Only 10 to 20% of the pay was based on the qualification rather than 50% previously * However, to avoid over earning flying hour cap was set by the company. Also in case of pilots flying to special geographic features separate compensation system was designed to accommodate delays * Middle positions were created to avoid long promotions * Structured world class training program was designed for the pilots * Other work benefits like life insurance, health insurance, retirement plans, unemployment insurance, annual paid vacation, housing allowance assistance for relocating a pilot’s spouse, flight ticket discounts, etc., were provided

Results:

* Drastic reduction in the attrition rate almost nil due to compensation benefit reasons * Decrease in the operating expense of the company * 492% increase in company profits from 2009 to 2010 compared to 25% in 2008 * Increased productivity of the pilots

GLobal communications was a US based Fortune 500 company providing an array of communication solutons to customers, both residential and business, around the world. The firm offered

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