Scribd Logo
Upload

Welcome to Scribd!

  • 905 views

    Xiamen Case Study - 15pgp053 - Tadi Kiranmayi

    Uploaded by

    Kumar Abhishek
    Xiamen Airlines is a privately owned Chinese airline and the only major Chinese carrier operating an all-Boeing fleet. It has been profitable every year since 1988. The document discusses Xiamen Airlines' pay for performance benefits program, which ties incentive payments to job performance to increase motivation, morale, loyalty, and productivity. It also outlines factors that determine the effectiveness of a pay for performance model, including efficiency, equity, and compliance. The reform led to increased pilot flying hours and profits as well as reduced attrition.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Xiamen Case Study - 15pgp053 - Tadi Kiranmayi

    Uploaded by

    Kumar Abhishek
    905 views3 pages
    Xiamen Airlines is a privately owned Chinese airline and the only major Chinese carrier operating an all-Boeing fleet. It has been profitable every year since 1988. The document discusses Xiamen Airlines' pay for performance benefits program, which ties incentive payments to job performance to increase motivation, morale, loyalty, and productivity. It also outlines factors that determine the effectiveness of a pay for performance model, including efficiency, equity, and compliance. The reform led to increased pilot flying hours and profits as well as reduced attrition.

    Original Description:

    NA

    Original Title

    Xiamen Case Study_15pgp053_Tadi Kiranmayi

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Xiamen Airlines is a privately owned Chinese airline and the only major Chinese carrier operating an all-Boeing fleet. It has been profitable every year since 1988. The document discusses Xiamen Airlines' pay for performance benefits program, which ties incentive payments to job performance to increase motivation, morale, loyalty, and productivity. It also outlines factors that determine the effectiveness of a pay for performance model, including efficiency, equity, and compliance. The reform led to increased pilot flying hours and profits as well as reduced attrition.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    905 views3 pages

    Xiamen Case Study - 15pgp053 - Tadi Kiranmayi

    Uploaded by

    Kumar Abhishek
    Xiamen Airlines is a privately owned Chinese airline and the only major Chinese carrier operating an all-Boeing fleet. It has been profitable every year since 1988. The document discusses Xiamen Airlines' pay for performance benefits program, which ties incentive payments to job performance to increase motivation, morale, loyalty, and productivity. It also outlines factors that determine the effectiveness of a pay for performance model, including efficiency, equity, and compliance. The reform led to increased pilot flying hours and profits as well as reduced attrition.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    HRM CASE ANALYSIS

    XIAMEN AIRLINES
    Tadi Kiranmayi | Section A | 15pgp053

    Introduction:
    XiamenAir (formerly Xiamen Airlines) is the first privately owned airline in the People's
    Republic of China. XiamenAir is the only major Chinese carrier which operates an all-Boeing
    fleet.
    XiamenAir was honored with the title of "The Best Airline in Mainland China" for 6
    consecutive quarters in the "Airlines Service Survey" made by CARNOC.com.
    By early 2014, Xiamen Airlines has 6 branches in Fuzhou, Nanchang, Hangzhou, Tianjin,
    Changsha, and Beijing. The airline operates 218 domestic routes along with 26 international
    routes. It flies over 3600 flights per week. XiamenAir ranks #4 among all Chinese carriers by
    domestic capacity and contributes 7.2% of the domestic capacity in China.
    Xiamen Airlines concluded the year of 2013 with a passenger number of 18.57 Million, and a
    profit of 1520 million CNY (about 245 million US dollars). It is the 27th consecutive year of
    profit for Xiamen Airlines since 1988. With the long consecutive profit record and high profit
    rate, the airline is regarded as one of the most profitable airlines in the world.
    Pay for performance benefits:

    Mutual rewards
    Increased motivation
    Increased company morale
    Increased company loyalty
    Increased productivity

    Employees always see a clear connection between their incentive payments and job
    performance. Employees stay in a firm because of the pay/pay structure being offered. They
    readily develop the required job skills if there is a proper pay structure in place.
    The effectiveness of a pay model depends upon three things- efficiency, equity and
    compliance.
    1. Efficiency: it involves two general areas of concern.
    (i) Strategy:
    Does the pay-for-performance plan support corporate objectives?
    The reward should not be on the basis of status quo.
    Finally, management has to address the most difficult question like- How much of an
    increase makes a difference? How does it take to motivate an employee?
    (ii) Structure:
    Structure of the organization should be sufficiently decentralized to allow different
    operating units to create flexible variations on a general pay for performance plan.
    Different operating units may have different competences and different competitive
    advantages, so the organization should not have a rigid pay-for-performance system
    that detracts from these advantages.

    2. Equity / Fairness
    The second design objective is to ensure that the system is fair to employees.
    A key element in fairness is communication regarding what is expected from
    employees.
    3. Compliance:
    The pay for performance system should comply with existing laws as a good reward
    system enhances the reputation of the firm.
    Outcomes of the reform

    Pilot flying hours increased to 900 hours compared to 700/800 hours in other airlines.
    Saved hiring cost as a result of the above point.
    The experienced pilots were more than willing to train the younger pilots.
    The younger pilots were also inspired to get the title of honoured flight captain.
    As a result, there was a steep growth of 492% in company profits from 2009-10 and
    also attrition rate was reduced to a minimum.

    salary break up in US Dollars (source: smile aviation)


    option
    option
    option
    option
    option
    option
    1
    2
    3
    4
    5
    6
    Monthly
    basic salary
    housing
    allowance
    overtime
    Yearly
    ticket allowance
    safety bonus
    No. of paid
    leaves
    medical
    insurance
    education
    allowance
    bonus
    Total income

    21889

    20889

    17389

    16389

    12056

    9556

    1100
    1100
    1100
    1100
    1100
    1100
    300/hou 280/hou 250/hou 250/hou 250/hou 250/hou
    r
    r
    r
    r
    r
    r
    6000
    24000

    6000
    6000
    6000
    6000
    6000
    24000
    18000
    18000
    10000
    10000
    96 days 132
    156
    180
    180
    42 of
    days of days of days of days of

    2000
    8000/ch
    ild
    upto
    10000
    333868

    2000
    8000/ch
    ild
    upto
    10000
    321868

    2000
    8000/chi
    ld
    upto
    10000
    273868

    2000
    8000/chi
    ld
    upto
    10000
    261868

    2000
    8000/chi
    ld
    upto
    10000
    201872

    2000
    8000/chi
    ld
    upto
    10000
    171872

    You might also like