Instead, by using such technology as the IBM program, the airline is able to become "more flexible and adaptive while focusing on their core business."
This idea of outsourcing is not unique to the airline industry and often times does not necessarily mean outsourcing to a computer program. Many of the airline industry's traditional jobs are now being outsourced to private companies. For example, such services as food services, maintenance and even ticketing are being outsourced to private companies that specialize in these services by contractual agreement. This trend clearly effects the airline human resources manager's role in that instead of working to recruit, train and supervise multiple departments internally, they now have the role of receiving bids from private independent contractors, working with the legal team to develop a contractual agreement, and then ensuring that the private contracted company is meeting the general need of the airline by working closely with the private service provider's human resources manager. In other words, the airline human resource manager's position has evolved into an executive position where they administer the human resource management needs of other companies indirectly as opposed to playing a hands on role in evaluating needs, recruiting, training and administering employee benefits and other needs.
Of course one of the effects of this downsizing of employees at the hands of independent contractors is the issue of employee dissatisfaction. This can happen at...
First, actual airline employees may become dissatisfied with both the terms of their current employment and the future implications of their position. This could lead to such devastating actions as a department strike. The human resources manager must have a plan in place to handle this worst-case-scenario that will allow for a quick resolution of the issues with minimal harm to the company's operations. On the other hand, these same feelings and activities can now occur in the independently contracted areas of services. Thus, the human resource manager must work with these independent companies to coordinate a joint plan that will be able to efficiently and effectively resolve any potential conflicts.
Bibliography
Behune, Gordon. (1999): From Worst to First: Behind the Scenes of Continental's Remarkable Comeback. New York: Wiley, John & Sons, Inc.
Flouris, Triant G., Oswald, Sharon. (2006): Designing and Executing Strategy in Aviation Management. Ashgate Publishing, Ltd.
Freiberg, Kevin, Freiberg, Jackie. (1998). Nuts!: Southwest Airlines' Crazy Recipe for Business and Personal Success. New York: Bantam Doubleday Dell Publishing Group.
"IBM and American Airlines Sign Human Resources Services Agreement." Red Orbit Breaking News. 2 March 2007.
Shaw, Stephen. (2004): Airline Marketing and Management. Ashgate Publishing, Ltd.
Wensveen, John G. (2003): Air Transportation: A Management Perspective. Minneapolis: Thomson Brooks.
