It is important that human resources within the airline devise strategies to minimize the possible negative effects that union relations may have on the workforce.
There are several issues that have impacted the airline industry as a whole, and present implications for the human resources challenges discussed thus far. The first of these issues is a drastically changing workforce demographic within the airline industry. In particular the workforce is aging. Establishments in the air transportation industry have a significantly higher proportion of employees in the 45 to 54 and 55 to 64-year-old age ranges than other industries (Wallace & Gonzalez, 2005). Specifically, employees in the 45 to 54-year-old age group comprise approximately 35% of the whole workforce (Wallace & Gonzalez, 2005). On the contrary, workers in the 14 to 24-year-old category comprise only 4% of the workforce (Wallace & Gonzalez, 2005).
This issue presents human resources challenges with regards to employee retention, since an older workforce means that many are close to retirement, which would also challenge HR with the recruitment of new, qualified employees. Employee satisfaction may also be a related HR issue, since an older workforce may more noticeably demand benefits such as health insurance and retirement plans. These demands further implicate the cost effectiveness of operations within human resources.
Another key issue faced by the airline industry is the use of contingent workforces. This is an issue that is not unique to the airline industry, but instead is on the forefront of all service industries. Contingent employees include "independent contractors, leased employees, freelancers, temporary workers and seasonal employees (Pratt, 2002)," which are willing to work in positions within the airline industry for monetary compensation only, without any benefits. The utilization of the contingent workforce may especially be desirable to the low cost / no frills airlines since it generally results in the maintenance of a flexible staff while still acquiring the personnel and expertise required (Pratt, 2002). The human resource challenges most involved in this issue are the recruitment and retention of qualified employees. The fact that contingent employees do not receive benefits beyond monetary compensation may make these positions less desirable than positions where these individuals perform the same job for the same pay, but also receive benefits.
Another prevalent issue within the airline industry is the use of outsourcing. Outsourcing has increasingly been used by establishments...
Management Organizational Behavior and Teamwork CASE ASSIGNMENT Southwest Airlines, Inc. has become an example of notable success. One reason for its significant achievement is its application of Reinforcement Theory to its employees. These applications have resulted in a highly motivated workforce, which is intimately tied to Southwest's success among business leaders. Even so, not even Southwest can satisfy its employees' needs according to Maslow's Hierarchy; rather, Southwest can only give some raw materials
2.0 Strategic Situation Analysis In order to understand the nature of aircraft manufacture at Boeing, it is important to have a clear vision of how outsourcing plays into the manufacture of aircraft. Let us use the example of Boeing's Dreamliner. The following illustration explains how outsourcing plays a key role in Boeing's business strategy. These represent TIER 1 suppliers. Figure 1. Source http://seekingalpha.com/article/17727-boeing-s-outsourcing-for-the-787-dreamliner From here, the parts go to the plant in Everett and
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