Strategic Human Resource Management in World Airline Industry

2946 Words Mar 14th, 2008 12 Pages
For over 15 years, there has been an ongoing research on HR strategies and competencies differentiating the business performance. Besides this, HR practitioners have focussed their attention on other important questions as well. Bratton and Gold (2007), for example, tries to question what policies and practices make up HR strategies. Is it possible to identify cluster of bundle of HR practices with different strategic competitive models? What is relationship between different clusters of HR practices and organizational performance? For companies looking for ways to gain a competitive advantage, the implication of HR strategic choices for company’s performance is certainly the key factor. Recently business strategy researchers turned their …show more content…
British Airways weaknesses still lays in unfunded employee post retirement benefits and as a result, its profitability is declining.

On the other hand, Air France, which is Europe’s largest airline and the third largest in the world, is facing broader problems. The company is facing stronger competition in two major areas of operation, namely Europe and North American routes. The strategic responses to this challenge include operation of new routes in its already existing extensive route network. In addition to this, Air France has increased frequency of certain flights. There are few criticisms against Air France in terms of its service quality and HR strategies, but there is hardly any relevance in the group’s customer orientation that differentiates it from competitors (Botten and McManus, 1999). Air France has recently declared about their future strategy of investing heavily into customer service. This indicates company’s intention of implementing HR practices for such enhancements in future. Market conditions; however often enable firms to achieve considerable success by giving limited attention to employee performance issues. By contrast, the emphasis on the internal work force, higher base pay, internal pay equity, and better job security that firms practicing the facilitation and accumulation strategies provide, help organizations to attract and retain a greater number of outstanding employees.

Human capital issues are

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