Business economics - Personnel and Organisation. Definitions and Background 2. Benefits and Risks 3. Analysis of Pressures 3. The aim of this thesis is to explore Human Resource Management HRM in the passenger business  of the airline industry, and in particular, the potential for standardisation of HRM in airline alliances, by using the example of Star Alliance .
This belief is to be explored. This thesis will have four main objectives.
The first objective is Thesis On Labour Demand identify potential benefits and costs to the alliance that could be associated with a standardised HRM-policy . This model will be applied to the airline industry, and to an organisational Star Allianceand functional HRM context see 3. The third objective is to analyse the extent to which the members of Star Alliance apply standardised, as apposed to individualised HRM instruments in reality, and to consider whether Star Alliance airlines are increasingly or decreasingly standardising the HRM-field see 3.
Finally, the author would like to discus the reasons to explain the findings of section 3. This thesis will have the following structure: The author feels that it is important to provide a detailed description of the airline industry and alliances, as they are complex and are affected by many factors.
The subsequent Thesis On Labour Demand main section will be divided into four parts, each part being dedicated to one of the four objectives, presented in the same order as above; finally, section 4 will conclude this thesis, summarising, and giving a critical analysis of the findings, and making suggestions for future studies, which could be undertaken in this, or in related fields.
The author considers this structure to be logical and suitable. Several problems may arise in the attempt to achieve these objectives: Hence, the author believes that documentation on aviation or HRM related issues i. Transcripts of interviews and all other correspondence article source be found in Appendix A and Appendix B respectively; it may prove difficult to receive information about HRM from the airlines, as much of which is kept confidential, for example, statistics about employee demographics and salaries  ; and finally, Thesis On Labour Demand Star Alliance has fifteen members, a detailed analysis of all airlines would be beyond the reach of this thesis.
Therefore, the author will attempt to specify the airlines in focus see 2. L; Blytonp. XLV; Masonp. This description can be argued to be appropriate, due to the following reasons.
Firstly, the topic can be described as timely as in the last decades, HRM and the global airline industry have become increasingly recognised as important, which has prompted authors to extend their analysis of the two. With respect to HRM: With respect to the airline industry: Today operations are being dealt with on a worldwide basis cp.
In comparison withinternational airline passenger traffic increased by over fifteen percent inand in certain regions, such as Asia-Pacific, which includes China, passenger Thesis On Labour Demand increased by Thesis On Labour Demand twenty percent cp.
A second reason for the timeliness of this thesis, is that Continue reading within airline alliances is one area of aviation economics, which has not been explored or documented in detail Masonp.
LXV; Gudmundssonp. LIXhence there is much new ground to be broken cp. Studies that have been written about airline alliances have generally overseen HRM-issues and have, amongst other things, focussed on the following aspects: Gudmundsson ; demand-side problems resulting from alliance structure e.
Netzer ; successful project management e. Birkmann ; and airline productivity and profitability relating to alliances e. These authors have tended to analyse the airline industry on a macroeconomic level and have not focused on a particular airline alliance, as Thesis On Labour Demand thesis intends to do.
Seldom have authors analysed HRM in strategic alliances e. Even fewer authors have combined HRM and the airline industry in their studies e. However, these books neither focus their analysis on alliances, nor provide an international comparison of HRM-practices or an analysis of the extent of standardisation of HRM within airlines.
Critics may however argue that the example of Star Alliance is not a timely one, due to the following points: With regards to this thesis being interesting and relevant, arguments can be presented from both a theoretical and a practical perspective.
The theoretical relevance of this thesis is its approach to the question of standardisation vs. As does any Thesis On Labour Demand industry, the airline industry faces the challenge of finding the right strategic balance between providing an efficient service on the one hand, and satisfying individual customer needs on the other cp.
This is the balance between global standardisation and local individualisation cp. This topic, synonym to globalisation vs. Studies have focused just click for source the integrated, as apposed to diversified Multinational Corporation e. Nevertheless, the author feels that it is important to address this topic, due to the affects that it has on strategy.
Star Alliance covers a wide geographical scope  and has integrated marketing, with the common alliance web site and joint customer-relationship management through the frequent-flyer loyalty programme. In terms of operational integration, there are many activities in place see 2. It is only the area of HRM, where the level of integration appears to not yet be clearly defined.
Labour power (in German: Arbeitskraft; in French: force de travail) is a crucial concept used by Karl Marx in his critique of capitalist political economy. Labour law (also known as labor law or employment law) mediates the relationship between workers, employing entities, trade unions and the government. Human Resource Management in the Airline Industry - The Example of Star Alliance - Sarah Wilson - Master's Thesis - Business economics - Personnel and Organisation. 0 chapter three economic and non-economic factors in economic development: the concepts and their differences s. morteza afghah supervisor barbara m. d. smith. A STRATEGY FOR MANAGING TEACHER MIGRATION IN SOUTHERN AFRICA by DENNIS SINYOLO submitted in accordance with the requirements for the degree of.
In terms of practical relevance, HRM in the airline industry plays an important role, as it affects many people cp. Airlines are labour intensive cp. A standardised HRM policy can be assumed to lead to considerable restructuring and rationalisation of resources, i. For Star Alliance, standardising HRM would create many opportunities and benefits, but simultaneously, many threats and risks see 3.
Labor Markets - Change in in Equilibrium Wage Rate and Level of Employment
These effects would in turn have an impact on the parameters of profitability in airlines, namely traffic levels, unit costs, capacity and yield cp. According to the ITFp. The read article should therefore be, of interest to whom? Critics may also argue that the issue of standardising HRM in alliances is of no relevance, as despite intense co-operation and independence in many areas, alliance partners continue to be legally autonomous, heterogeneous entities cp.
To standardise such a company-specific aspect  as HRM would Thesis On Labour Demand a merger of the airlines, which is not the intent of the alliance cp. The airline industry is also a very dynamic one, and exit from and entry in to an alliance occurs. In Star Alliance, the complexity is high, due to the many partners see 2. This thesis provides a static analysis; hence observations that are made may become irrelevant due to changes in alliance membership.
In addition, Star Alliance provides only an example of one airline alliance. It may operate very different to other alliances  and therefore, the relevance of any conclusions drawn will be of specific relevance to this part of the industry and at this particular point in time.
The airline industry is responsible for the transportation of people, goods and post around the globe cp.
It is affected by many factors, including war, economic business cycle, and business competition cp. It has been characterised as being an extremely competitive, safety-sensitive, service industry  cp. These three characteristics of the industry have a large impact on HRM, as will be explained in subsequent paragraphs. Firstly, the airline industry has been increasingly exposed to competition cp. The first of the two main factors, which have contributed towards intensified competition, is deregulation cp.
Deregulation meant that the airline industry first had to be made profitable cp. It was transformed from being a click non-labour-sensitive industry, into being Thesis On Labour Demand highly labour-sensitive one, with important implications for labour-management relations, such as redundancies, and more part-time positions  cp.
LCCs increase competition as they offer cheap fares, which they can allow, due to their achievement of lower overheads than traditional airlines in many areas .
From this point on, when referring to airlines, the latter is meant. Secondly, the safety-sensitive characteristic of the industry is one, which is regulated by government cp. More info has been a growing concern for passengers cp. Modern aeronautical technology is reliable, read more, as opposed to mechanical malfunction; the majority of aviation accidents have been caused by pilot or crew error, and by teamwork failures cp.
Human error  is claimed to be the cause of between sixty and eighty percent of all accidents cp. Diversity in national, linguistic, and professional cultures may also impact adversely on communications and safety cp. Other errors can be caused by distraction during decent, or poor training practices cp. Thesis On Labour Demand concerns mean that training is taken more seriously by airlines than by other firms  cp. In airline alliances, passengers would presumably expect a similar level of expertise from all members.
Without a standardised training programme, a common safety level may not be present . Safety can also be endangered by cut backs in areas of human resources cp. Therefore the HRM-policies of airlines are particularly important. Finally, in such a competitive market, an excellent customer service is arguably the key to survival for the majority of airlines cp.
Airlines aim to provide a high service, not only due to the disproportionate profitability of the business-class passenger cp. Effective customer service refers to meeting individual customer demands cp. These high demands of customers cannot be satisfied by airlines that only cooperate loosely with one another cp.
This means that it is people, and not the procedures, products or machines that represent the core competence and the most important differentiators between the average and the excellent airlines cp. This people-factor makes it difficult to sustain standards cp. Thesis On Labour Demand
This is especially true in the airline industry, as there is a high level of close and frequent interaction between the Thesis On Labour Demand staff  and the customer, which requires professionalism in many instances cp.
A further aspect of services is that they are intangible and this web page cp. As a result, airlines cannot build up inventory, and may incur a financial loss through unoccupied passenger-seats cp. In economic downturn, this has the result that airlines immediately reduce capacity which again, invariably results in job losses cp. The airline industry has shifted from being one characterised by stability and external regulation by the state, to one characterised by rapid and more dynamic change, where very large companies and global alliances increasingly dominate operations cp.
Today, it has become inevitable that Thesis On Labour Demand every major airline participates in an alliance of some form cp.
Alliances are one of the most common business models of firms and of airlines cp. This inter-organisational relationship involves substantial investments in the development of the collaboration and common orientation cp. Only by cooperating and forming alliances can airlines meet the mobility requirements of the world economy cp.