Etihad Airways Performance Appraisal Reprisal - Essay Example

Etihad airways performance appraisal and employees training Name Institution Performance appraisal refers to a periodic and systematic practice that evaluates a specific employee’s job productivity and performance relative to certain pre-set goals and organizational objectives. According to Walsh (2009), training and development is the process of developing expertise for the purpose of improving performance. This term paper will discuss how Etihad Airways has invested massively on performance appraisal and training of its more than 19000 employees across the world. It will look at the methods used, their advantages and disadvantages. It will also look at the fruits of this investment in the airlines’ human resource department in terms of the impact it has brought through revenue increase, customer satisfaction and the general growth of the airline. At the end, the paper will provide recommendations that are likely to work better than the current method in use. Etihad Airways is a national airline of United Arab Emirates (UAE). Its commercial operations started in 2003 in Abu Dhabi (the capital city of UAE). Its main formation objective was to create an airline that would put up with the UAE flag and expand true Arabian hospitality to visitors. Proper performance appraisal system has seen the airline grow at an extraordinary rapidity such that by June 2007 it had already reached 42 destinations. According to Oxford Business Group (2009), the airline has continued to record an impressive growth in passenger figures such that in year 2008, when the airline passenger figure were suffering globally, Abu Dhabi witnessed a 12% year on year increase followed by 10% in 2009. By the year 2020 Etihad aims to fly 25 million passengers globally. The current appraisal system in Etihad airways has a vertical chain of dialogue. Most common form of communication in the company follows up and down vertical pattern. The prime responsibility for failure lies with supervisors and managers at all levels in the organization. There also exists a system that provides tools for employees, supervisors, human resources professionals and senior leaders to plan, monitor, and evaluate career development opportunities for all employees at and above the director level. The system includes metrics and quarterly reviews of employee ratings, promotions and developmental opportunities; this has helped in achieving a diverse workforce. There are numerous advantages of vertical communication. One of the advantages is that the system allows for the smooth flow of information and decision making. This is because it consists of orders, mandates, directions and instructions that move down the chain of command. This method also has its disadvantage since information is filtered or diluted as it moves up and down the chain of command. The filtering of information causes the message or information to change; some middle level managers may decide their workers do not need the information hence halting the progress. Channels used to send information up and down the chain of command also affect the way it is acted upon. For example, when passed on verbally, the message is tainted by the body language and also the personality of the informant. Written communication on the other hand when passed on unchanged, may effectively send a consistent message through an organization structure. Electronic media can be subject to manipulation but organization may utilize a wide range of applications to get and receive pertinent information (Walsh, 2009, pg.72). In 2014 at the Mena Human Resource Excellence Awards, Etihad Airway received two prestigious awards for its employees’ development and training initiative. Mena HR Excellence Awards is now in its 6th year and it recognizes the excellence of human resource within North Africa and Middle East and. Its panel of six judges was impressed by the level of focus Etihad. Etihad Airways capitalizes in developing the nationals of UAE into future aviation leaders through a highly effective two to three year management program (Cole, 2013). This programme is supported by integrates classroom education and internationally accredited qualifications with on-the-job training. This has helped the UAE national to be number one national group within the manager’s level. It has also helped the company gain a spot in the world map. Organizations today are aware of the fact that an investment in their employees is an investment in the whole organization because for the survival in today’s first changing business climate, individuals and organization must be continuous and lifelong learners. The competitive world of today demands for employee performance instead of loyalty, and earned rewards instead of entitlements. The Etihad human resource department has put this knowledge to their advantage because the role of a well-trained employee certainly contributes to organization success. Training is concerned with organizational efforts to foster learning among employees. According to Walsh (2009), training cycle consists of three phases; that is need assessment phase, training phase and lastly evaluation phase. As long as these phases are followed to the latter training always has the maximum impact on the trainees. In Etihad airways, Pilots training is one of the measures that follow the three phase training circle to ensure that professionals maintain quality in terms of services. Their cadet pilot Programme structure adheres to the three phases as shown in the table below: Phase 1 Phase 2 Phase 3 18 months pilot training Graduation 4 months placement The trainee learns how to fly at horizon international flight academy in Al Ain Once the trainee successfully completes phase 1 he/she obtains a commercial pilot’s license After graduation the trainee will do a type rating conversion course on a specific aircraft The trainee masters the technical skills necessary to obtain a commercial license The trainee is now qualified to join Etihad airways as second officer. This is to mean he still has another phase to pass through Then the trainee completes his/her line training as second officer then 12 months later becomes a first officer The trainee performance is to be monitored and assessed via assignment, exams, attendance, punctuality and instructor feedback At Etihad Airways, the decision to train its employees is influenced by the dynamic kind of environment it operates in and the need to keep its employees on the know side. This is because the most important factor in building a successful organization is the management of change. The catalyst for change can come from social reasons, economic reasons or technological reasons. Many changes are fuelled by the need to stay ahead of the competitors. The airline industry is one of the most competitive industries. In order for Etihad Airways to win its customer loyalty, it regularly trains its employees in the areas of their expertise so as to improve on service delivery. The multi-source feedback (360), also referred to as the degree 360 feedback, is a type of appraisal system ideal for businesses that value the input of employees, more so the effectiveness of supervisors and managers (Brett & Atwater, 2010). It solicits the input of employees of all ranks who interact with the employee being evaluated such that everyone from the executive to frontline employees receives anonymous and carefully considered feedback from co-workers. It is a method that asks for training on how to evaluate others. It may also lead to additional cost in terms of training because individuals who do not know how to write appraisal statement may need additional training. This method is very effective in getting an understanding of the kind of management talent in an organization. This is because it gathers comments from individuals who frequently interact with the managers on a daily basis at a personal level. This method of evaluation can play a very crucial role in improving the management standards. In the US, an estimated 90% of the Fortune 1000 firms have introduced some form of multisource assessment (Atwater, Waldman & Brett, 2012). These methods are primarily utilized to facilitate the development of managers and leaders. Although sometimes effective, many factors affect the utility of multisource feedback. For example, if managers exhibit elevated levels of anxiety and neuroticism, they seldom get motivated to adjust their behavior in the aftermath of this process. In conclusion, the multi-source feedback is recommended for Etihad Airways because under ideal circumstances, 360 degree feedback is used as an assessment for personal development rather than evaluation. It is important for the management to know the level of personal development the organization’s staff has so as to improve on employee performance. In preparation for future growth, the 360 degree feedback can act as a tool for making the company more strong in terms of service delivery. References Atwater, L. E., Waldman, D. A., & Brett, J. F. (2012). Understanding and Optimizing Multisource Feedback. Human Resource Management. 41(2), 193-208. Retrieved from proquest.com. Brett, J. F., & Atwater, L. E. (2010). 360 Degrees Feedback: Accuracy, reactions, and perceptions of usefulness. Journal of Applied Psychology, 86(5), 930-942. Retrieved from Proquest.com Cole, A. (2013). Analysis of the Etihad Airways. Munich: GRIN Verlag. Oxford Business Group (2009). The Report: Abu Dhabi 2009. London: Oxford Business Book. Walsh, D. (2009). Employment Law for Human Resource Practice. Boston: Cengage Learning. Read More