Human Resource Management in the Aviation Industry

Introduction

Human resources refer to the set of individuals who make up the workforce of an economy. Human capital is a related term, but in a narrower sense it refers to the knowledge and skills of a worker. Human resources represent people — labor, manpower, or talent. Companies view employees as assets whose actions and skills add value to the organization. Firms need to practice effective human resource planning processes. For effective management of human resources, consideration of employee demographics, worker availability, skill levels, and available funds for compensation is critical (Harzing & Pinnington, 2010).

According to Harzing and Pinnington (2010), one major concern about human resources in an organization is that employees are at times abused and, in some cases, treated as tradable commodities. Relating employees to commodities of production is a humiliating practice that goes on in firms without being reported. Human resources are social and creative, as opposed to commodities. Unfair trade practices have led to an upsurge of unions in support of employee rights. These unions represent employees within an organization, communicating on their behalf with employers or the government. Human resources in the aviation industry have unions, and the industry faces employee strikes that influence productivity. Union unrest occurs because of ineffective and unfair management practices. Clearly sequencing, defining, and communicating tasks is a good management practice. Pilots, managers, customer relations staff, and engineers all represent the aviation industry's human resource base. Human resources are mobile, and their ability to move from place to place allows them to gain experience and knowledge (Kanki, Helmreich & Anca, 2010).

Labor Resources in the Aviation Industry

A well-trained human resource department ensures a company maintains a high-quality labor force. The competitiveness of the aviation industry requires players to have well-managed systems for human resource management. Selecting the right employees is essential for any industry; well-trained employees perform tasks more effectively and efficiently. The employment process begins with identifying human resource needs, followed by a selection process, and finally recruitment and retention. Employees undergo a rigorous recruitment process that verifies academic qualifications, experience criteria, and whether candidates are team players. Human resource managers should communicate instructions effectively, plan activities, make sound organizational decisions, and coordinate activities (Jackson, Schuler & Werner, 2011).

The importance of human resources in the aviation industry is directly tied to organizational goals. Tasks performed by employees drive the overall productivity of the industry. To maintain operational efficiency, management should adequately resource departments, sequence job responsibilities, and conduct ongoing staff training. Managers in the human resource department should select well-trained and skilled workers from all backgrounds (Harzing & Pinnington, 2010). Human resource managers in the aviation industry must also comply with legislation relating to discrimination and compensation. Criminal background checks are a standard requirement in the recruitment process.

Human resource departments carry out recruitment procedures, advertise new positions, and induct employees into the organization. Managers provide training facilities, allocate tasks, and evaluate performance. A human resource manager appraises and promotes staff, handles disputes, and communicates instructions. The recruitment process starts with developing a job description, followed by shortlisting candidates, preparing interviews, making hiring decisions, and finally inducting the employee onto the payroll. The aviation industry must follow these procedures when hiring. Aviation industry players mainly consist of airlines, airports, and aircraft manufacturers. All of these players employ people, and the performance of their human resources is critical to their success (Dadpay, 2010).

Influence of Unions on the Aviation Industry

According to Bray and Underhill (2009), unions have a great influence on human resource management in organizations. Unions in America have been in decline due to changes in policy and the broader economy, though in the 1930s union membership was on the rise. Unions represent the needs of employees and advocate for them when they feel oppressed, including exercising the right to strike. Competition and economic complexity have greatly affected the profitability of aviation companies, making it more difficult for firms to fulfill their commitments to pay employees' salaries. This has led to many strikes, which hinders industry growth. Unionized employees in the airline industry represent over 70% of all workers. Employees come together in unions to collectively fight for their rights, including the right to a safe working environment and the right to fair compensation. Collective agreements between employees and employers have fostered better working relationships (Jackson, Schuler & Werner, 2011).

The aviation industry has experienced many labor relations challenges. Groups within the industry bargain separately but often come together as one through "pattern bargaining." In the 1980s, new union entrants characterized the aviation industry during a period of deregulation and recession, and industry employees benefited from labor concessions. During the economic recovery in the United States between 1985 and 1990, employees had an opportunity to renegotiate, resulting in restored wages and increased gains from collective agreements. However, a major United pilot strike overshadowed those achievements as recession resurfaced. Building through this period, growth in profits and traffic has created expectations of increased negotiation activity within the aviation industry. Growth in union membership also reflects an increase in the bargaining power of unions.

A collective bargaining agreement represents the tangible gains from a bargaining process. In the aviation industry, these agreements are broadly similar to those in other industries, yielding increases in leave days, salaries, or promotion opportunities. However, collective bargaining agreements cannot address every situation that arises, creating a need for external laws, unwritten customs, and norms. In aviation, collective bargaining agreements allow workers and employers to reach conclusive arrangements governed by the Labor Relations Act and related labor legislation. The majority of workers in a collective unit delegate their rights to a representative. Key provisions include: that an employer may not refuse to negotiate with a union on mandatory subjects; that mandatory subjects must be bargained in good faith; and that management should not make unilateral changes. In cases of dispute, agreements should be written in plain language, should clearly state the objectives of the aggrieved party, and should include clauses explaining how future changes may be made. Collective bargaining agreements are legally binding and succeed when conducted in good faith, free from external influence. Unions within the aviation industry recognize the authority of laws and statutes that govern these agreements (Thomas, 2011).

Conclusion

Unions assist in developing policies relating to the labor market. Deregulation of aviation industry practices encourages creativity and market competition. Unions assist governments and organizations in setting policies that govern human resources. In Australia, for example, deregulation of the airline industry helped lift restrictions on fares and fare discounting. These outcomes promote independence and the use of market forces in airline operations (Thomas, 2011). Market deregulation fosters fairer market prices, as institutions governing airline operations share some of their authority. Unions also promote sound management practices, as managers develop a clearer understanding of employee needs, enabling firms to meet profit targets while also satisfying their workforce.

However, unions can also contribute to unemployment. Constant union activity raises employee wages, which increases production costs and, as a result, reduces the number of job opportunities available. High labor costs also make industry players less efficient and slower to adapt to change. Union activities have at times been associated with corruption, with union representatives being bribed or management influencing members to ignore the collective interest (Jackson, Schuler & Werner, 2011). Unions can also negatively affect the economic performance of aviation firms. Persistent increases in labor costs can initiate cost-push inflation, prompting industry players to raise ticket prices, which in turn reduces their competitiveness. An increase in airline ticket prices ultimately risks losing potential customers.

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