Oman HRM
Oman HRM
Oman HRM
Question 1: .................................................................................................................................................... 3 A.1.1. Introduction: ....................................................................................................................................... 3 A.1.2. Human Resource Management Competencies:.................................................................................. 3 Business Knowledge.................................................................................................................................. 3 Knowledge of best practices ..................................................................................................................... 4 Change management skills ....................................................................................................................... 4 Credibility .................................................................................................................................................. 4 A.1.3. HR Competency Model: .................................................................................................................... 4 Strategic Contribution ............................................................................................................................... 5 HR technology ........................................................................................................................................... 5 A.1.4. Issues and trends in the organizations internal and external labor market :...................................... 6 Question 2: .................................................................................................................................................... 8 A.1.1. Human Resource Management: ......................................................................................................... 8 A.1.2.HRM Practices: ................................................................................................................................... 9 Recruitment and Selection........................................................................................................................ 9 Training and development: ..................................................................................................................... 11 Life support skills and first aid ................................................................................................................... 13 Load control ................................................................................................................................................ 13 Ramp handling dangerous goods ................................................................................................................ 13 Cargo management courses ........................................................................................................................ 13 International certificate in purchasing and supply ...................................................................................... 13 Training facilities ........................................................................................................................................ 13 Benefits and Compensations: ................................................................................................................. 13 Benefits: .................................................................................................................................................. 13 Performance Management: .................................................................................................................... 14 Communication and sharing of required information: ........................................................................... 15 Power distance reduction: ...................................................................................................................... 16 Self managed teams:............................................................................................................................... 17
Question 3: .................................................................................................................................................. 18 Critically evaluate your organizations approach to strategic HRM. How strategic is it? .......................... 18 1.1 Strategic Human Resource Management: ............................................................................................. 18 1.2. The Resource based view of Oman Air Company: .............................................................................. 18 1.3. The Contingency perspective: .............................................................................................................. 19 1.3.1. Vertical fit:..................................................................................................................................... 19 1.3.2. Horizontal fit: ................................................................................................................................ 20 Question 4: .................................................................................................................................................. 21 A.1.1 Conclusion: ....................................................................................................................................... 21 A.1.2 Recommendations: ............................................................................................................................ 21 References:.................................................................................................................................................. 23
Question 1: Summarize the key competences that your organization needs. Identify the main issues and trends in the organizations internal and external labor markets and explain how they are affecting the organization. A.1.1. Introduction:
Oman Air is the national carrier of the sultanate of Oman which provides air transport and cargo services along with other related aviation services. It has various domestic and international destination points for both businesses and the leisure travelers. The airline has recognition for its professional attitude, hospitality, safety and quality services (Oman Air,2013). Like many other organizations the Oman air line has certain competencies which give them advantage over other airlines. Many Researchers from the past highlight the fact that core competencies are comprised of skills, knowledge and abilities of a person that contributes to the overall success of an organization and ultimately provides competitive advantage to the organization. For this purpose the relevancy between competencies and overall organizational objectives and strategies are deemed as significant. (Joan.k and Beth.M, 1999).
Business Knowledge
In Oman air HR professional must have clear understanding about the operations of the business. This includes having thorough understanding about organizational strategy, the financial position, innovation , technological and other organizational capabilities. The know how about each departments in Oman Air including (Marketing, Operations, Finance, Customer services and general management) enables HR expert to build linkage
among these and with the organization strategies to create and and further maximize the value.
Credibility
In order to earn trust the HR professionals in Oman air must require to exhibit behavior that shows their credibility and accountability. Beside these the previous quality and performance records also helps to establish credibility
This HR competency model has similarities with Ulrich model, the only difference is the replacement of management skills with the broader competency category named Strategic Contribution and one additional competency named HR Technology.
Strategic Contribution
In Oman air Strategic Contribution involves strategic decision making, change management (facilitating change among employees)and culture management (learning culture) .
HR technology
HR technology exerts the importance of usage of technology in Oman air workplace for HR practices. It would increase performance of employees in Oman air.
A.1.4. Issues and trends in the organizations internal and external labor market :
In order to formulate HRM strategies one must be equiped with the knowledge of Labour market trends in that country . Any organization cannot formulate compensation , reward and any other HR strategies with out having knowlede of issues in Labor market. The labor market is a place for exchanging labor services , the buyers and sellers of human labor negotiates and decides the job placements, wages and other condition necessary for employment. Labor market is a mean through which labor demand can be matched by supply of labor. (mass, 2013). According to Lazeara and Oyer (2003) internal labor market refers to supply of labor to fill job at any level usually comes from within the organization. The organization itself supplies the human stock. Wages of employees are usually determined internally without any pressure from external market. Internal labor market plays an important role in forming HR strategies like what trainings should be given, how to develop human resource and how to retain them while external labor market of any organization shows how much external supply of human resource exist. The worker can move between firms and there is a certain process of determining wages in which organization discretion is low. Transformation of Oman air into national carrier poses so many challenges .A big transformation makes internal labor of Oman air to resist. They need to accept new work structure, new policies, new salary rates, technological interventions and different trainings requirement on various skill set to accept and positively react with the change. The employee turnover was also the concern because Oman air line went through abrupt transformation chances were that people would leave. The job roles and job description changed which posed as a difficulty for internal labor to cope and perform the task. The Omanization policy in Oman airline bring changes in internal and external labor market. According to Richard (1999) Omanization is the policy and the program endorsed by the government of Oman to replace expatriate with the local people who are skilled and trained into different position across different sectors.
According to al lamki (2005) the successful examples of Omanization is found in the Oman airline and in banking sector where locals irrespective of gender and age were given the chance of employment.In Oman people show preference towards public sector rather private which can seen in Oman national population census data , and due to nationalization of Oman more people from private sector rushed towards Oman airline. Moreover Before the Omanization Oman air line has been employing expatriates who were more skilled and cheaper than the locals. After becoming national carrier Oman airline played an important in absorbing many Omanis
Public Sector
Private Sector
Nationality
Persons Employed
Percent Distribution
Persons Employed
Percent Distribution
Table 1: Source: Oman Ministry of National Economy, 2005d; and authors calculations
Oman Air has been pursuing Omanization plan as a part of the organizational strategy. It has 65% Omanization ratio. According to media release on directions of His Majesty Sultan Qaboos the Oman air continues to make investment in human capital by arranging various training programs to make them capable and to increase the proportion in the country. (Oman Air, 2013) That is the reason external labor forces are given trainings to level up their skills so they can get accommodated at different levels in Oman airline.
Question 2: Critically evaluate your organizations HRM practices with particular reference to the management of high potential and high performing people. (You may choose to focus on one particular HR practice here, but you must justify your choice) A.1.1. Human Resource Management:
The human resource management practices deal with how people are utilized, managed and employed in an organization in order to accomplish the organizational objective. The spectrum cover activities ranging from strategic HRM to resourcing, career development, performance management, employee relations and other activities related to human resources.
According to Armstrong (2006), HRM is an approach which is integrated, strategic and consistent in nature and directed at betterment and development of the people who are working there. The business world is evolving due to competition and technology advancements, due to the this deregulation and globalization a concern regarding the need to engage in strategic planning arises which actually follows a process in which organization align its various components according to anticipated changes in environment to achieve organizational effectiveness in order to excel the organization the need of having potential and skilled resources increases so the HRM plays an active role in effective management of organization. The growth and success of organization depends on its high performing human capital. The organizational performance is dependent on employees performance so there is a need to integrate the HRM with the strategic needs of organization. Oman Air , provides quality services to their customers due to the trained work force .It advocates strategic approach when it comes to managing human capital. By bringing alignment between hr practices and the organizational strategy Oman air is stepping towards success.
A.1.2.HRM Practices:
These are some HRM practices followed in Oman airline.
Also it helps the candidates apply for the position to get their queries solved (Oman air press release, 2006)
Selection: The HR team will review the resume and assess the job- person match and respond to candidate only if they have any intention of assessing them in future .The shortlisted candidates are required to go through different assessment test and interviews and after that company will give feedback to them. Referee details will be taken from candidates for further verification. Though it has different test like psychological testing and mental simulations for assessing candidates but there is a room for improvement. More test can be employed which can check on particular skill set of candidate. In Context of high performing workers: In order to get effectiveness at organizational level it is necessary that right people with right skill set and personality should be selected for the right job in Oman air. In order to get the job fit organization should keep following things in mind. 1- The organization must be capable of attracting relevant and large pool of applicant so that they would get the best out of them. 2- Organization must know what skills they are looking for in the applicant so they could come up with the tests and interviews according to crosscheck if person has that skill set or not. 3- Organization should seek the skill set that are difficult to copy or difficult to change even if they are given trainings.
The first step of training process is need analysis. It is the process in which training needs are identified and articulated The assessment process starts with organizational analysis. This type of analysis requires a whole system view of the organization and what it is trying to accomplish. After that task analysis comes in which data is being collected about any particular job so that one can identify what should be taught to improve performance of employees. Then comes person analysis in which organization decides the person who should be trained. Then comes the design phase in which objectives are being defined, lesson development, acquirement of material, trainer selection, training technique and schedule preparation takes place.
After that the the whole designed training plan will be implemented and in the end training will be evaluated to see if the organization get the desired output or not. Training Vision and Mission: The Oman airline provides training and career development opportunities to not only their employees but the general public as well. By following omanization policy the airline achieved 65% omanization ratio by not compromising on its quality and services. The vision of the training department of Oman is to be the global leader in trainings related to Aviation and to uphold business excellence locally. The Oman Training centre also won awards in past. The mission of conducting trainings in Oman air are
To equip the internal and the external clients with quality training. To incorporate and follow global standards in training education. Plan and act strategically to meet current and future needs. To provide quality training for both our external (commercial) and internal clients. Implement global standards in education. Commit ourselves to our strategic plan for future need and development. Effective utilization of human and physical resources to make them capable of serving the customer needs and satisfaction.
The airline provides internal and external career development programs directed at people across different department to strengthen their skill base. The airline being big in size have different training modules to their pilots, engineers, ground staff, customer services and people at other levels and departments. A part from that it also gives training to Management Trainees who recently graduates in order to absorb them at several positions in the company. Oman airline has the policy to give training to general public including its customers in order to boost up the quality and safety standards in civil aviation field.
The customer services trainings also play an important role in keeping the customers loyal and satisfied and to maximize their value. In organization like airline where it has many touch points with customers e.g. reservation, check in, departure process, cargo and baggage handling all of these things need attention. Employees should be trained enough to deal with customers smoothly and effectively. Courses According to Oman air (2012) the organization offer following courses Life support skills and first aid Customer services Load control Ramp handling dangerous goods Cargo management courses International certificate in purchasing and supply
Training facilities Oman airline conducts trainings throughout the year and it also take aid of new technologies and methods to deliver training. The facility centre is located near to the airport so that it would be convenient for the workforce to reach there. This centre also impart technical training to the the crew other than Oman airline
Benefits:
In order to retain the healthy workforce Oman airline offers other benefits and rewards to their existing employees and their family members too.
Health benefits Oman airline offers numerous medical plans , life plans, disability and some other optional plans like legal aid, reimbursement accounts and long term care.
Savings and retirement In order to make the future of employees secure and to give them financial security after retirement Oman airline has various financial benefits, profit sharing schemes and it also believes in giving incentives to keep employees motivated.
Travel The employees and their families have the facility to travel anywhere in the world through the airline. When they visit abroad they also get discounted rates on hotels care rentals and other services and if they choose to fly on other airlines still Oman will facilitate their employees with discounted rates.
Career development Oman support employees to pursue any education or training which helps them to grow in a more professional manner . They provide resources and support for any accomplishments related to career. For high performing workers Oman air usually held award ceremonies and give them recognition for their loyalty and give extra benefits.
Performance Management:
Performance management is usually future oriented where one can plan the performance and devise the actions to accomplish it. The performance objectives for each job is separate and usually communicates to the employees at the beginning of the job so they get the clear idea of what are they expect to achieve in this organization. In performance management the appraisal are being conducted in which the past performance of employees are reviewed to see whether they are achieving the benchmarks or not. The appraisal process is following
Figure 3: Process of performance appraisal Source: http://www.hrutilities.com/2011/05/performance-appraisal/ The performance appraisal aims at discussing the progress of the employee towards achievement of any task or responsibilities. The appraisal is usually based on reviewing and assessing on how effectively any job is completed .It is not based on employees personality traits. It measures the skills and competencies of an individual which provides a mean to identify loopholes that can be covered in future or it also helps in identification of areas where individual can do more better and excel. The whole appraisal process should be based on two way communication. The employee should be receptive to the positive suggestion or criticisms in order to mutually achieve the goals. According to Analoui (2007) only personal behavior never demonstrate the individual performance but the performance outcome is also dependent on the overall outcome achieved by respective department. The intrinsic and extrinsic motivation inherited by the employees tells the effectiveness level and through the desired behavior achieved through training. In high performing work system employees show more willingness to perform better.
In this regard Vishwak solution offered their services to develop a collaboration portal for Oman air by using Microsoft share power point server. The Oman airline has its headquarters in more than 20 countries so for this purpose the portal act as a bridge or collective platform apart from that different activities like flight operations, operation control and navigation all can be facilitate through this portal. It also facilitate to work together in a more efficient way to maintain tasks, to keep records and publish reports, communicate relevant information via blogging and other sort of discussions and work related updates.( Vishak, 2010)
Reducing power distance in Oman air is considered as a important practice when it comes to high performing work system. People can learn from each other. They acknowledge the recognition if they are provided equality, sense of intrinsic motivation also rises when they feel valued. Therefore there is a need to reduce power distance which can be done in many ways like Physical setting or arrangement in organization through language or dressing. The separate parking slot for top management should be avoided if someone is in favor of equality.
They have control on what they do. They are not under the authority of people from other management levels which develop sense of responsibility in them. They can control each other behaviors and sense of mutual goals and mutual accomplishment is always there. It decentralizes the management of organization and allow teams to work freely and it breaks the status difference.
Self managed teams are source of intrinsic motivation for employees they are more satisfied when they work in form of groups rather than works as an individual.
Question 3: Critically evaluate your organizations approach to strategic HRM. How strategic is it? 1.1 Strategic Human Resource Management:
It focuses on issue of linking human resource of the organization with the overall strategy of the business. Designing the performance system in away to add value through the people working in the organization in order to achieve the competitive edge (Delery and Doty, 1996) The conceptual basis of strategic human resource is analyzing where the business is going and develop and manage activates in order to maintain the strategic thrust of the organization (Boxall, 1996)
techniques and equipment is part of the processes at this company. The company recruits the best people time to time and the existing employees who are highly skilled are
promoted to the top positions in order to boost their morale and also to increase the productivity. The company has a vision of boosting the national economy thats why company has retained the best employees, gives them time to time trainings that will have a positive impact on the economy (Oman air press release, 2006)
The company is providing the trainings to over 2500 employees and due to their trainings the result is the employees have been placed at managerial levels in the company
Question 4: From the above analyses, give conclusions and recommendations to improve performance in your workplace A.1.1 Conclusion:
One cannot deny the strategic importance of human resource management in any organization. A fit is required between business and human Resource strategy. Effective management and utilization of human resource is key to success. The Human Resource Management policies are usually designed to enhance the work quality, to improve the organizational integration and to level up the commitment of an employee. The Oman air has implementing Human Resource Management practices in their organization and human capital are utilized in an effective manner to achieve the organanizational goals. The human resource strategies are aligned with the organizational strategy .The airline has good resourcing practices, good benefits, extensive training programs, culture of team work but still in order to strengthen the high performing work system the loopholes in human resource practices should be resolved.
A.1.2 Recommendations:
In past Oman airline faced criticisms from employees on their wage rates. Protest was held by employees from different departments in favor of increasing their pay rates. Employees cannot perform well if they do not have good pay scale and increments in spite of showing good financial results by company. Therefore Oman airline should increase their pay as equitable to workers in other airlines. It is unfair if people in same with same position in other organization get more salary package than Oman employees. It creates dissatisfaction and may increase turnover rate (shabainay,2011).
Good work condition plays an important role in overall organizational and employee performance. Safe and good work environment should be provided to employees that make them comfortable and easy to do work. Otherwise employees will prefer organization which gives same salary package but more favorable work condition.
Though Oman airline are providing extensive training to their workers and general public but the number should be increased. Apart from that the training facility is located near airport though it is convenient but it is more like having IN HOUSE training. Employees should be given chances to go out of city and country so they can learn something different from routine trainings. The highly trained trainers from different countries should be invited to the training place who can train people in bit different method.
Incentives or rewards should be given to employees who show high commitment to the organization. Though Oman air has been arranging ceremonies to acknowledge them and it proved as a source of intrinsic motivation but in order to increase the retentively and to decrease turnover incentives should be given to high achievers.
Technology should be upgraded with time to time in order to increase the performance of an organization.
Though omanization is good for national economy but Oman air has many destination points and it has many headquarter and offices in several countries so training on cultural diversity should also be included in the module.
Good and fair performance management techniques should be maintained in the organization.
References:
Al Lamki, S. (2005), The Role of the Private Sector in Omanization: The Case of the Banking Industry in the Sultanate of Oman, International Journal of Management, 22(2), P.176-198. Analoui, F. (2007), Strategic Human Resource Management, Thomson Learning, London. Armstrong, M. (2006), human resource management practice (10th edition), London, Kogan page
Barney, J.B (1991) firm Resources and sustained competitive advantage, Journal of Management Studies, 17(1), p. 99-120 Barney, J.B (1995) Looking inside for competitive advantage. Academy of Management Executive, 9(4), p. 49-61 Boxall, p.F |(1996) The strategic HRM debate and the resource based view of the firm, Human Resource management Journal, 6(3), p. 59-75 Delery, J.E and Doty, H.D 91996) Modes of theorizing in strategic human resource management: tests of universality, contingency and configurational performance predictions, Academy of management Journal, 39(4), pp 802-35 Dave, U (1997), human resource Champions :the next agenda for adding value and delivering results, boston: Harvard business school. Economy watch(2010),economic statistics[online] Availabale at http://www.economywatch.com/economic-statistics/country/Oman/ [Accessed at 1 March 2013]
Joan.k and Beth.M (1999), Core Competencies and the Learning Organization,13(3), p.158-166 Lazear, E. and Oyer,p. (20030), Internal and external labor markets: A personnel economics approach, NBER working paper series, Cambridge, National Bureau Of Economic Research. Mass gov (2013), LAabor market information, [online] Available from, http://www.mass.gov/lwd/economic-data/eolwd-data-and-stats/lmi/other/labor-marketterms-and-definitions.html [Accessed 1st March 2013]
Omanair (2012), About us, [online] Available from http://www.omanair.com/aboutus/corporate-information, [Accessed 27th Februrary 2013] Oman Air (2012), About us, [online] Available from, http://careers.omanair.com/aboutus/careers/application-guide [Accessed 1st March 2013] Oman Air (2012), About us, [online] Available from, http://www.omanair.com/aboutus/training/courses [Accessed 1st March 2013] Omanair (2012), About us [online] Available from http://www.omanair.com/aboutus/corporate-information, [Accessed 27th February 2013] Omanair (2013), Press Release 2006 [online] Available at Omanairhttp://www.omanair.com/aboutus/media/press-releases/oman-air-continuesomanization-plan-part-its-primary-strategy [Accessed at 28 February 2013] Richard, H. C (1999), Integrating Women Part and Parcel of Omanization Of Nations Work Force, Washington Report on Middle East Affairs. Sultanate of Oman (1991), The Fourth Five Year Development Plan (1991-1995), Development Council, General Secretariat, Oman. Shaibany, S. (2011), Oman Air employees strike for higher wages, THE NATIONAL, 7 March
Typepad (2013). Strategic Human Resource Perspective [online] Available at http://ivythesis.typepad.com/term_paper_topics/2010/05/strategic-human-resourcemanagement-.html [accessed at 28 Februray 2013]
Vishwak (2010), Newsroom,[online] Available from, http://blogs.vishwak.com/newsroom/2010/07/23/collaboration-portal-for-oman-air/ [Accessed 1st March 2013]