Apr 22, 2021 in HRM Papers Sample

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Organizational Development and Change

Organizations in the aviation industry, which are dominated by control, obedience, and hierarchy, are expected to give way to organizations focused on ideas, information, and interaction. At present, people are the main players in the business. As the survival of a company depends on attracting people with proper qualifications, in recent years, competent people have become an even bigger deficit than capital. Obviously, each of the parties pursues its own goals: the employee sells their time, qualifications, professional knowledge, and skills to get a significant reward for their work; the management of the company, in turn, expects feedback from the personnel at the workplace, which would allow the company to reach its strategic and tactical goals. Therefore, the lack of motivation and turnover rates are interconnected in the Flydubai Company as motivation determines the process of turnover; hence, Flydubai should develop a system of motivation to reduce the turnover rates.

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Identifying the Organization

To estimate the yield strength for Flydubai in general and its individual departments in particular, the coefficient of staff turnover should be used. It is calculated for the reporting period as a ratio of the number of workers dismissed for violations of labor discipline and other misconduct, as well as those who quit at will compared to the average number of employees. It is quite difficult to specify the range of permissible turnover of frames. It depends on the specifics of the enterprise, the stage of its development, the adopted strategy, and the personnel policy, as well as many other factors (Adil & Awais, 2016). In a working enterprise, the level of staff turnover will remain acceptable until this process starts having a significant impact on its economic and financial outcomes. Those who leave at their will in most cases are dissatisfied with the nature or conditions of work, or their payment, as they do not see the prospects for growth, and so on (Adil & Awais, 2016). In addition to financial losses, dismissals at one's own will are also associated with such a threat for the enterprise as the deterioration of its business reputation in the labor market. The reasons for dismissal based on the initiative of the administration is disciplinary offenses (delays, lack of discipline), reduction in the number of personnel (expiration of the contract, deteriorating market conditions, curtailment of the production program, etc.), and professional inadequacy (inefficiency at work, incompatibility with other members of the staff).

The Organizations Situation which Needs Solution(s)

The history of the company can be traced back to 2008 when the company developed its first flight. Flydubai was initially organized by the Emirates government. During their first three months of performance in the market, the company had sold approximately 100000 tickets. It is also possible to state that the first year of the company's existence was extremely successful as they managed to open about 10 new routes and, by doing so, accumulated new sources of financial income. The current operations comprise the provision of flight services and they succeed in performing this function. The headquarters of the company are located mainly in Dubai. The company's wide-scale strategy implies using all possible means to provide the best services. To achieve this goal, the company conducts team building and training activities. The strengths identified by the company comprise the moderate costs of the services (which are their advantage in the market), client-oriented approach, and high-quality airplanes. The weaknesses of the company, in turn, include the lack of motivation and high rates of turnover within the organization. These two issues should be researched in detail to identify a possible solution to the problems.

Lack of Working Motivation in Flydubai

In recent times, many scientific research studies have been devoted to the problems of stimulating the labor force and evaluating its effectiveness, because scientists and practice leaders see this as the key to achieving the competitiveness of the enterprise, which is especially important in the event of current difficulties in the adaptation to the market. The Flydubai aircraft personnel is one of the most complex management objects in the organization, because, unlike the material factors of work, the staff has the ability to make decisions and critically assess the demands imposed on them. Thus, personnel motivation is one of the most complex areas of managerial activity in the Flydubai Company. The ability to motivate subordinates is great art.

Regardless of the large number of studies in this area, not all aspects of motivation are accessible and understandable. To understand the motivation of employees in Flydubai, the manager must understand human nature as a whole. This is the problem, which requires an urgent solution. The human character can be both very simple, and at the same time very complex. Understanding the importance of this peculiarity is a prerequisite for the effective motivation of a person at the work necessary to ensure effective management in Flydubai. A motivation system is an effective tool for managing personnel only if it is well-developed and correctly used in practice. The complex methodology allows the development of an effective motivation system based on the analysis of the company's motivational sphere and the individual needs of the organization's employees.

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Turnover Rates in Flydubai

The term turnover of personnel means the movement of labor due to the dissatisfaction of a particular employee with their workplace or with the organization in general. In Flydubai, there are two main types of turnover in the aviation industry. The first is the physical (or external) turnover of staff. The second one is the hidden (or psychological) turnover of the staff. Each of these varieties should be considered in greater detail. Physical (or external) turnover is the transfer of personnel between enterprises and industries when employees are dismissed and leave the organization for various reasons. In Flydubai, the natural turnover of personnel rate is within 3-5% per year from the overall number of personnel, which stands for the increased turnover of staff. The natural turnover of staff contributes to the renewal of the staff and does not require any special measures from the management of the enterprise. Excessive turnover rates in Flydubai cause significant economic losses and create personnel, organizational, technological, and psychological problems. At the same time, the complete lack of staff turnover in the Flydubai

Enterprise would lead to personnel stagnation, with all the ensuing negative consequences. Therefore, the company is currently facing the following problems:

  1. Lack of Working Motivation in Flydubai;
  2. High Turnover Rates in Flydubai.

Diagnosis

The completion of the diagnosis regarding the given company will take at least 14 days. This period would be necessary for understanding the issues in full depth and find out whether any particularities of the Flydubai Company will be of some importance as well. It means that data collection, which is necessary for the diagnosis, would take approximately this number of days. Also, to complete the diagnosis it is paramount to interview at least 30 employees from various departments including the management department, payment department, and HR department. Cooperation with the employees from the various departments would ensure the truthfulness of the data obtained and would make them credible and valid. Thus, the two diagnoses of the lack of motivation and high turnover rates are necessary to be conducted as these two aspects determine how beneficial Flydubai is from the financial point of view and how competitive the company is in the market of the aircraft services. The key phases of the diagnosis are represented by the collection of opinions and information using an interview; a collection of the opinions and information via the Internet; and analysis of the dynamics of the company's development within a year to understand whether these dynamics are positive or negative under the conditions of the two issues diagnosed. To formulate the diagnosis, it is necessary to plan an interview, which would help better understand the situation in the company.

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Number

(a) Questions / Answers

(b) OB / OD/ Theoretical linkages /Implications/Indications

1.

Q.: Who is the essence of the client's satisfaction with proper work?

A.: The personnel department plays an important role in the personnel policy of Flydubai and should be aimed at satisfying the client's needs.

Client-oriented approach

2.

Q.: What should the Flydubais personnel do to provide the best services to their clients?

A.: It should take part in determining the strategic objectives of the enterprise, carry out an audit of personnel work, and not only conduct the formalization of labor relations but also develop a program for the development of personnel, as well as formulate a system of motivation for employees.

Strategic decision making

3.

Q.: If you were an applicant for any position in the Flydubai Company, how would you ensure the provision of proper services to the client?

A.: The development of an effective motivation system in Flydubai should start directly with monitoring the labor market and studying the expectations of applicants.

The aspect of motivation

4.

Q.: What would you like to be paid for in addition to your usual payment as a hypothetical employee of the company and how this payment should be formed?

A.: Premiums include individual and collective bonuses for the high-quality and timely performance of work, for over fulfillment of the plan, for the individual contribution of the employee to the overall outcome of the activity, for saving energy, materials, bonuses during the year, for innovation in the form of authors remuneration, etc.

Motivational means

5.

Q.: What is the main drawback of the client services in Flydubai?

A.: The attitude of workers is frequently not that respectable. It could have been much better if the employees were more stimulated.

Client support

6.

Q.: Do services need to be improved?

A.: The service quality is good, but due to the lack of personnel engagement, these services do not seem to be attractive.

Services improvement through reduction of turnover and improving the motivational system

7.

Q.: What is the essential advantage of Flydubai for the client?

A.: The cost of services.

Cost

8.

Q.: What additional services would you like to receive from the company?

A.: The company provides the standard set of services, which seems to be sufficient.

Services and supply chain change

9.

Q.: What feedback have you obtained from the other company's clients?

A.: The feedback is not always positive or negative. In most cases, my friends are satisfied with the services, but certainly, they would like a better attitude of the employees.

Employees satisfaction and performance.

Findings from the Analysis

I (your name)................ had an initial meeting with the representative of Flydubai on (........- add date). Subsequently, my team and I also gathered a considerable amount of data through the structured interview process with different members of staff. We then analyzed these data in detail, examined the same in light of relevant OD theory, and have arrived at the following conclusions:

a) The following are the areas that the company is strong in/is doing well in, and must continue to keep doing or try to do even better: the moderate costs of the services (which is their advantage in the market), client-oriented approach, and high-quality airplanes.

b) The following are the areas that require improvement to maintain the company's current market position.

Lack of Working Motivation in Flydubai;

High Turnover Rates in Flydubai

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Action Planning and Decision on OD Intervention

image1.pngArea identified for improvement

image2.png

Proposed OD Intervention; and Target/level

image3.pngTheoretical basis with justification

image4.png

System of Motivation

It is likely that in some areas it is possible to use increased motivation, but this does not mean that other employees do not need it (Cheung-Judge & Holbeche, 2015). Also, regular changes in the personnel motivation system are mandatory because the company's work activity is dynamic being constantly developed (Teo, Pick, Xerri, & Newton, 2016). Also, one should not forget about the impact of changes on the situation in the country, market relations, etc., which also have an impact on peoples needs.

The list of bonus indicators is developed at a specific enterprise, depending on what the incentive criteria are (Ibrahim & Perez, 2014). A variety of bonus payments are represented by profit-sharing systems, which are based on the sharing of profits between employees and the company (Cheung-Judge & Holbeche, 2015). The main components of incentive payments in Flydubai should be bonuses that allow taking into consideration the individual qualities of employees, as well as quantitative and qualitative parameters of individual and collective labor results that are to be introduced into the wage system (Teo, Pick, Xerri, & Newton, 2016). Thus, incentive payments are subjective (Ibrahim & Perez, 2014). Differences between premiums consist in the fact that allowances are paid in the same amount for a certain period of time (month, quarter, half a year, and a year), and these allowances are irregular and relative (that is, the size of the premium varies significantly depending on the individual or collective results) (Ibrahim & Perez, 2014). However, it also affects human psychology, which is often irrational and unpredictable, and therefore its use requires a high degree of social competence of the leader (communication, empathy, justice, kindness, tact, etc.), which is either given to a person by nature or is developed through psychological training (Ibrahim & Perez, 2014).

The process of selecting the right system of personnel motivation is a complex and time-consuming task, requiring special knowledge and in-depth study of the needs of employees and their working conditions (Adil & Awais, 2016). At the same time, a multifaceted analysis from various perspectives is important: conversations with employees in the company, conducting job interviews, studying websites of competing companies, conducting customized studies, etc. (Adil & Awais, 2016). When comparing the analysis of the labor market with theoretical data on the motivation of personnel in Flydubai, it is necessary to develop an appropriate personnel policy of the enterprise. It is also important to pay attention to the fact that the system of motivation of the Flydubais personnel should be extended to all employees without exception. Also, regular changes in the personnel motivation system are mandatory, as the company's work activity is dynamic, being constantly developed (Teo, Pick, Xerri, & Newton, 2016). Also, do not forget about the impact of changes on the situation in the country, the market relations, etc., which also has an impact on people's needs.

 

Turnover

Flydubai should pay attention to the program aimed at creating a favorable psychological climate in the team to reduce the turnover rate. Such a program should include a set of the following activities. Firstly, this refers to the identification of individual psychological features of the members of the staff and their application in the management process (Suliman & Al-Hosani, 2014). Secondly, there should be the establishment of a favorable socio-psychological climate in the team (good relations and mutual understanding among all members of the team). Thirdly, there should be the development of business activity and initiative of workers (Cheung-Judge & Holbeche, 2015). Fourthly, Flydubai has to be engaged in the formation, preservation, and development of factory customs and traditions (Suliman & Al-Hosani, 2014). Fifthly, Flydubai should use different forms of moral encouragement. Moreover, the company has to establish the correct style of the leadership team and carry out planning of the social development of the personnel. Most of these actions overlap or coincide with the elements of programs of material and moral incentives, as well as programs to improve career growth. Thus, the comprehensive implementation of these proposals would reduce the cost of their implementation.

To analyze the turnover of personnel in Flydubai, a special questionnaire would be of much help. The procedure of dismissal at the enterprise must provide for the mandatory filling out of such questionnaire by the employees. The exception is permissible where dismissal is conducted at the initiative of the administration of the enterprise. One of the ways to solve the problem of the personnel turnover in the healthcare sphere can be the creation of an effective system of social management of human resources in Flydubai (Hazarika & Boukareva, 2016). Herein, it is necessary to take into account the specifics of the worker's professionalism paying attention to such qualities as diligence, awareness of the high level of responsibility, and professional competence (Hazarika & Boukareva, 2016).

Evaluation of the consequences of staff turnover is usually based on the existence of a certain level of fluidity, which can be called a norm or a natural level by analogy with the natural level of unemployment in macroeconomics (Suliman & Al-Hosani, 2014). The natural level of staff turnover does not have a significant impact on the activities of the enterprise. However, the situation changes when the turnover starts increasing significantly and exceeds the performance of other organizations in this sphere of activity or relation to this category of employees (Suliman & Al-Hosani, 2014). High fluidity is harmful: the company constantly incurs additional costs for finding and recruiting staff, along with adapting and training beginners. It is also necessary to solve the problem of the safety of commercial secrets (Meyer, Strong, & Geerts, 2014).

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Conclusion

Recommendations for improving the management of staff motivation in Flydubai include numerous aspects. These aspects are supposed to motivate the person and reduce the turnover rates. These measures include a thorough systematization of the process of personnel records management; organization of work with personnel reserve absent at the enterprises; introduction of corporate ethics, based on mutual assistance, creativity, and self-actualization of each employee. Also, the program should focus on regular application of training and training seminars, which will allow maintaining and improving the qualifications of employees at the proper level. Thus, it is possible to distinguish the following features of the organization of the motivation system in Flydubai: the orientation on achieving success, the predominance of material incentive factors, the desire of the staff to take a more active position in the management system of the organization. Therefore, it can be concluded that employee turnover is part of the natural process of personnel movement reflecting the flexibility of the labor market. In this respect, an important task of the manager is to determine the natural value of fluidity for the enterprise, beyond which it will be necessary to find ways to solve the problem of fluidity. This problem is exacerbated by the fact that in modern conditions the speed of labor mobility tends to increase under the influence of several factors, and therefore the determination of the natural rate of personnel turnover becomes an increasingly complex problem.

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