HRM for the Service Industries

HRM for the Service Industries Interview The researcher succeeded to carry out an interview that involved two employees who work at Delta Air Lines, Inc. The two individuals gave different views regarding motivation and leadership approaches practiced by the management of Delta Air Line. The two respondents were referred to as person X and person Y in this research, for purposes of anonymity, which was necessary to gather unbiased information from the two individuals.Advertising We will write a custom report sample on HRM for the Service Industries specifically for you for only $16.05 $11/page Learn More In relation to motivation, person X pointed out that Delta Airline was a good company to work with since it recognizes the performance of employees. Specifically, he mentioned the Chairman Club, which was established with an aim of giving recognition to best performing employees. However, person Y was not happy about the role Delta Air Lines. She argued that Delta Airline benefitted much from recognition in relation to employees. Person Y emphasized that recognition benefited the company through low cost of operations while employees continued to suffer since they were given paltry salaries (Creswell 1998, p. 12). The two respondents showed similar reactions in relation to leadership approaches. Both person X and Y said that operating manuals provided by the management team enabled Delta Air Lines to attain excellent performance. They claimed that operating manuals issued to every department enabled the company to achieve its predetermined objectives. This is because operating manuals ensured that each department worked hard to achieve the set operating standards. Person Y accentuated that Passengers Service Manual, which is used by Customer Service department to track services delivered to clients, enabled Delta Air Lines to attain admirable performance. Introduction Hospitality industry is classified in the contemporary world as the highest earning industry. A num ber of scholars and businesspersons refer to it as a billionaire industry. Considering that manufacturing era is gone, it is no doubt that we are living in an era characterized by the service industry. The service industry is broad and mainly encompasses food, service delivery and accommodation related sectors of the economy. Lodging, transportation, tourism, entertainment and restaurants among other segments fall within hospitality industry.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Hospitality industry chiefly depends on leisure time and disposable income. Although hospitality industry involves several groups that deal with maintenance of company facilities, operations as well as management, it is confirmed beyond reasonable doubt that managing employees remains a key aspect towards improving the level of performance for a range of companies in the hospitality industry. T his has compelled several managements in the service industry to come up with effective leadership approaches that aim at improving performance of employees, with diverse expertise and abilities. Different techniques of motivating employees are devised on daily basis hoping that the level of performance would significantly improve at workplace. Delta Airlines considers a number of management styles including giving handsome package to its employees, with an intention of improving its airline services as well as revenue. Furthermore, Delta Airlines endeavors to improve the level of returns for its major and minor investors. In addition, Delta Airlines Company ensures that customers choosing the services of the company experience the most appealing flights that would attract them the second time they would be traveling. Such aspects include best entertainment, executive seats and offering flights at affordable prices (Bratton Gold 2007, p. 67). Delta Air Lines, Inc. Delta Air Lines i s amongst the competitive airline companies in the U.S. With its headquarters in Atlanta, Georgia, Delta operates at domestic and international markets. Due to its aggressive strategies, the company has grown rapidly and today, it claims 11% of the market share. Delta Air Lines is popularly known worldwide for its busiest hub. Delta Air Lines hub, which is based at the Hart-Jackson Atlanta International Airport, serves an average of 88 million passengers every year. Currently, this airline company has about 716 aircrafts, which operate at local markets as well as international markets. This makes Delta Air Lines the largest airline company based on the size of its fleet. In total, Delta Air Lines operates in about 247 destinations, which are located in both the U.S. and elsewhere in other foreign countries. Delta Air Lines closed the financial year 2010 with revenue of 31.8 billion. Its assets stood at 43.2 billion at the end of the fiscal year 2010.Advertising We will write a custom report sample on HRM for the Service Industries specifically for you for only $16.05 $11/page Learn More This indicated a strong performance for Delta Air Lines as compared to its counterparts at local and foreign markets. Perhaps, its financial strength over and above quality services would be attributed to its effective management team. Delta Air Lines Management Team and Strategies Richard Anderson leads delta Air Lines as its Chief Executive Officer. Edward Bastian acts as its president while Michael Campbell is the Executive Vice President and chiefly deals with the Human Resources and Labor Relations. Other top personalities include Stephen Gorman who is the chief operating officer; Glen Hauestein the network planning and revenue management, Hank Halter the financial officer, Holden Shannon the corporate strategy and real estate leader, John Walker the corporate communications director, and Theresa Wise the chief information officer. Richard Anderso n ensures that Delta Air Lines maintains its competitive edge in the airline industry by embracing aggressive strategies such as those related to reducing fares, commonly referred to as cost leadership strategy. In addition, the management ensures that effectual measures are set, which merely ensures that investors get high returns for their investments. Employees are as well motivated with diverse incentives such as high salaries and long lasting employment contracts. Strategies are also put in place to ensure that its services are expanded to other emerging markets. Delta Air Line traditional approach of expansion focused on acquisition of other companies at the market. For instance, in 1972, Delta successfully acquired Northeast Airlines. Later on in 1986, Delta acquired Western Airlines. However, in 1994, Delta realized that airline industry had become increasingly competitive and needed contemporary approaches to maintain its competitive edge in the turbulent market environment . Consequently, Delta Air Lines sought to restructuring and streamlining its operations. The new package involved reducing the costs of operations as well as reducing the flight-fare price. Leadership Leadership is defined by a good number of scholars as ability to influence employees in an organization towards attaining predetermined goals and objectives. It is also defined as the ability of an organization to align individuals within the organization in order to achieve set targets.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More It also aims at empowering employees with necessary skills and tools to undertake required actions that would meet the common goals set by the management. Although there are arguments concerning whether leaders are made or born, it has been discovered that managers and leaders depict different characteristics. Leaders are said to be innovate, original, people oriented, inspiring, developing and setting long-range perspectives. Leaders frequently challenge the status quo as well as doing right things always among other characteristics. This helps them to convene short term and long-term objectives of the organization. On the other hand, managers rely much on the regulations and rules of the organization to administer policies that encourage employees to focus on achieving the set targets (Storey 2007, p. 102). Managers are perceived as people who are fond of copying, maintaining, focusing on structures and systems, relying much on control and regulations, and more importantly meeting the objectives of an organization. Their characteristics also include, but not limited to short-range view, eyeing the bottom line, imitating previous approaches of management, accepting status quo and doing things right. What fascinates scholars and perhaps what exactly distinguish managers from leaders relates to ‘how’ and ‘when’ questions. Leaders frequently ask themselves ‘what’ and ‘whys’ sort of questions. These are common aspects that distinguish the originality displayed by leadership and imitation aspects characterized by managers. A number of theories have been put forward to explain characteristics of different leaders. Trait Theory Trait theory explains that individuals are born either with leadership characteristics or without. Trait theory focuses on several factors that distinguish leaders from non-leaders. The factors include individual personality, socialization process, physical characteristics and intelligence. Behavioral theory The behavioral theory relates to the ability to initiate a particular system and coming up with some considerations over an event. This would refer to the orientation of the leader regarding the aims and responsibilities of employees. Mangers may perhaps be workers oriented, which could mean that they are concerned more about employees. Task orientation could mean that a firm is more concerned about production levels. Fielder contingency model Fielder contingency model states that an effective team relies on an effectual match between the approach of a leader interacting with employees and the extent to which the environment gives a leader the authority to control and influence his or her subordinates. According to Fielder, the environment or situation refers to the relationship between leaders and staff members. Logically, it refers to the confidence and respect built between a leader and his or her followers. The situation refers to the task structure and the pow er position. Power position refers to the level of authority that is mostly derived from the position of the leader within the organizational system (Winstanley Woodall 2000, p. 112). Fielder affirms that good relations between staff members and their leaders characterize a favorable situation, affective structure of tasks and a powerful position of a manager in an organization. Path Goal Theory This theory relates environmental and subordinate contingency aspects to leadership traits. Path goal theory argues that performance or outcomes depend on traits associated with leadership behavior such as directives, supportive and perceptive features in relation to subordinate and environmental contingency aspects. Subordinate contingency features include locus of control, individual experiences and ones perceived ability and competence. On the other hand, situational contingency features include structures of job assignments, formality of systems and policies, as well as team members. Ch arismatic leaders Charismatic leaders portray features that have considerable influence on performance of subordinates. This type of leaders are said to portray different characteristics from those of other leaders. To begin with, charismatic leaders depict self-confidence. Self-confidence is displayed by their total confidence in their policies and competence. A vision is also another significant feature, which brings about confidence that would lead to a better future rather than relying on an organization’s status quo. A leader should ensure that there is a broad margin between the current status quo and the set goals or objectives. Charismatic leaders are also recognized for their outstanding abilities in articulating vision. They are able to explain and describe vision in a way that employees understand without difficulties. This assists in avoiding issues related to confusions and doubts. However, to articulate vision, a visionary leader should understand his or her emp loyees adequately. Charismatic leader should have high levels of commitment and high personal risk that help organizations in achieving pragmatic goals within a predetermined period. Charming leaders frequently depict behavior that is different from conventional or normal traits of ordinary managers and employees. Although these behaviors appear different from those of common leaders, followers are easily lured to follow such behaviors, especially in the event that a leader becomes successful with his or her unique style of management (Legge1998, p. 56). Other major characteristics displayed by appealing leaders include realistic evaluation of business environments in relation to constraints and resources and coming up with pragmatic strategies. Generally, charismatic leaders are perceived as aspects of radical change as opposed to maintaining organization’s status quo. Relationship between transactional and transformational leaders Several reputable scholars in the field of management have identified distinguishing factors between transactional and transformational leaders. It is believed that old management style was characterized by transactional kind of leadership. However, because of dynamic and competitive business environment, contemporary type of management associates itself with transformational leadership. Transactional leaders Transformational leaders recognize achievements that ensure employees are rewarded in accordance to their level of performance. The management should always identify the disparity existing between performance and predetermined policies. This would help in initiating corrective actions and responses. A more contradicting feature as regards to transactional leadership is its passive system. Passive approach refers to intervening situations when standards tend to fall below or deviate from the track. Transactional leader would assign already laid down tasks and responsibilities to different departments. However, they attem pt to avoid making major and minor decisions regarding the operations of the organization. Transformation leaders Scholars and managements term transformational leadership as contemporary approach (Beardwell Claydon 2007, p. 83). Transformational leaders are charismatic and would occasionally provide followers with realistic vision and mission, which eventually earns them respect and trust. They are too inspiring since they communicate high expectations to their subordinates, use symbols to express directions and targets of organizations. Their level of intelligence is proved by their high level of rationality, as well as extra-ordinary logics mostly expressed in their analytical abilities, especially during problem solving. Transformational leaders differ from their transactional leaders for the reason that they are able to give personal attention to their employees apart from coaching and advising employees personally. What it takes to be an effectual and successful leader What i t takes to be an effective leader remains a contentious issue in the contemporary world of business. However, a number of observable studies have distinguished effective leaders from ineffective leaders. Effective leaders are seen communicating routinely. Their communication is associated with exchanging information and frequent handling of paperwork. Effective managers as well practice traditional management, which is merely known for its controlling, decision-making and planning facets. More importantly, effective management is characterized by networking where leaders are seen often interacting with outsiders in addition to sharing social, economical and political issues with several groups. Regarding the human resource management, successful leaders are seen motivating and rewarding their subordinates on a continuous basis. Furthermore, training and developing careers ensures that employees meet standards set by the firm. Nevertheless, transformational leaders manage conflicts a rising successfully. Motivation Motivation is a process that intends to elicit, control, manage or sustain an individual’s behavior. Motivation is categorized as either intrinsic or extrinsic. Extrinsic motivation is associated with external factors. For instance, a student who is interested in acquiring certain knowledge in a given field for not only getting good grades but also gaining mastery is most likely motivated by intrinsic factors. On the other hand, it would be an extrinsic motivation if an employee were encouraged to perform well at work place by increasing salary or providing other incentives. It is therefore true that employee performance depends heavily on motivation. Nevertheless, to realize good performance through motivation, employees should be equipped with necessary skills, equipments, supplies, time and ability (Goleman1998, p. 72). A motivating agent is principally determined by the needs of an employee. Although money is generally regarded as the main motivator, it is not the only employee motivator. Money would act as a motivator if it were able to meet individual’s needs and desires. In addition, an employee should believe that he or she is in a position to achieve monetary rewards offered by the organization. Generally, financial incentives offered by a range of organizations include production bonus systems, commission, gain sharing, group incentive plans, profit sharing, piecework systems among others. Because financial incentives can be limiting to any business that intends to motivate its employees, other approaches satisfy employees such as good contact with consumers’ brand, job enlargement and rotations. In many cases, organizations motivate employees by giving rewards that have value, providing rewards based on individual performance, treating individual staff members personally, encouraging staff participation and providing immediate feedback regarding employees’ performance. Since motivation conc erns itself with giving incentives to employees with an aim of enforcing compliance, most supervisors frequently use incentives to ensure that employees meet the objectives and goals set by management. With this regard, it would be beneficial if supervisors would have necessary skills regarding employees’ motivation. Managers influence the behavior of employees using various methods. However, the commonly used incentives include flextime and job sharing. Flextime is a strategy used in organizations, which allow individuals to choose when to work for 8 hours assigned in a day or 40 hours in a week. Conversely, job sharing refers to an arrangement in which two individuals working part-time choose to share tasks of a full-time job. Theories of motivation Maslow’s Hierarchy of needs Maslow states that a number of unmet needs motivate individuals. In accordance to Maslow’s theory, needs which motivates people fall into five categories. They include physiological need s, security, social needs such as love, needs relating to esteem and self-actualization needs. Physiological needs are basic needs, which an individual requires for survival. Security needs refer to protection and safety. Social needs are those associated with the need for companionship, as well as love. Individuals in the society desire to be respected by their colleagues. This is popularly termed esteem needs. Self-actualization refers to a situation where an individual peruses the full measure of happiness. McClelland’s Achievement-Power-Affiliation Theory This theory states that people develop diverse needs via life experiences. The three needs classified by McClelland include the need for achievement, need for power and the need for affiliation. Need for achievement is one’s aspiration to do better. Need for power is associated to ambition to manage, control and influence people. Need for affiliation is concerned about aspiration to sustain sociable relations. Alt hough people have all the above needs to some degree, strength of various needs depicts what motivates an employee or a worker (Mintzberg, Simons Basu 2002, p. 88). Hertzberg’s Two-Factor Theory Hertzberg claims that both dissatisfaction and satisfaction are associated with dissimilar sources. In his argument, dissatisfaction is seen to result from lack of hygiene factors such as companionship and handsome salary package. Satisfaction, on the other hand, results from existence of motivating dynamics such as fortunate prospects. Vroom’s Expectancy-Valence Theory Vroom proved that individuals do whatever they do in life with an aim of satisfying their needs. His argument was based on explaining the degree of an individuals’ level of motivation. According to Vroom’s theory, motivation depends on both valence and expectancy. Valence refers to the importance that someone places on result of a specified behavior whereas expectancy is the perception that a cert ain behavior would lead to a given result. In many circumstances, people are predominantly motivated to seek out outcomes that they value. They also believe that such outcomes are achievable. Individual members have different perception as regards to rewards, as well as whether they are in a position to attain the set up rewards. As a result, every employee determines personally the value of rewards and the capability of attaining the results. Since individuals in an organization cannot be generalized, it would be prudent for supervisors to study the needs and abilities of employees within an organization. Skinner’s Reinforcement Theory According to Skinner, people tend to do a particular thing hoping that it would lead to a desirable consequence. The same people would avoid things that may lead to undesirable consequences. For instance, people desire doing things that may give them praises from either fellow colleagues or the management team at work place. The management may influence the behavior of individuals by responding to traits technically. Skinner says that consequences can be classified as either reinforcement or punishment. Reinforcement is a positive behavioral consequence. In other words, reinforcement refers to favorable consequences or preferred behavior. Conversely, punishment is also referred to as negative consequence. Most supervisors tend to stop unfavorable behavior using various approaches, such as demotion and firing employees. Modifying Employees’ Behavior Various organizations use either punishment or reinforcement in modifying the behavior of employees. However, ineffectiveness of punishment, many organizations choose reinforcement. Reinforcement tends to result to positive and favorable behavior, which is desired by a firm whereas frequent use of punishment tends to instill a belief of inability among staff members (Nohria, Groysberg Eling 2008, p. 93). Since motivating factors are different among employees, the manag ement should learn individual motivating factors at personal level and design rewards as per their demands. In addition, the management should consider policies, regulations and labor contracts guiding the process of rewarding in an organization. Financial Incentives The Management assumes that money motivates employees to deliver a quality service. According to theories of motivation, finance is perceived as a motivator if it meets the demands and needs of employees. In particular, an individual earning paltry salary will highly be motivated by its increment. However, an employee who is comfortable with his or her salary may be motivated by other factors, such as achieving a sense of respect and personal esteem. As for finances, employees would be given financial incentives to make them meet or exceed certain set standards. Delta Air Lines: Leadership and Motivation Management’s Systems and Procedures Delta Air Lines has various departments with diverse systems. Delta Air Li nes management offers operating manuals that give standards to every department. The operating manual helps departments to monitor the performance of employees, as well as customers on a regular basis (Storey 2001, p. 57). The most important manual is the Passengers Service Manual, which is used by Customer Service department to track services delivered to clients. This has enabled employees to provide excellent services to their customers. Operating manual, on the other hand, enables the management to access updated performance, as well as easy references that would help in making major decisions concerning the performance of the company. The most important information provided by Passengers Service Manual includes passengers’ acceptance, refusal of passenger, ticketing and luggage acceptance. Delta Air Lines decided to post passengers’ information online where each employee can access it in a 24 hours clock to increase its efficiency. Moreover, the management has mad e sure that employees stand a chance to access information at home provided one is connected to Delta’s intranet. Management performance measures A website that is solely designed by Delta for measuring and controlling performance would help in monitoring and improving services offered by Delta Air Lines. The website categorically provides a section, which indicates standards expected by the management. The website also provides essential applications for monitoring performance of various departments. In addition, the website provides a section through which the management is able to monitor procedures for giving rewards to subordinates. The key performance indicators used by Delta include measure of flights take off, lost baggage for every 1000 passengers, airplanes damages and injuries sustained by employees while at work place or during official working hours. This information is to be collected from various airports, combined and analyzed on a yearly basis to estimate the overall performance of the management team. Performance leaders Performance leaders are concerned about assigning tasks to different employees and ensuring that operations are covered in entirety. Generally, they normally guide employees on various work processes and allocate diverse resources as per the requirement of the job. Performance leaders frequently ensure that workers arrive on time at the work place, apart from ensuring that team members complete assigned responsibilities within predetermined time and as per the set standards. In many cases, performance leaders are seen to handle customers’ conflict either internally or externally. Training and employees performance improvement Delta Air Lines provides sufficient training to its employees with an aim of improving its services. The management emphasizes on continuous training with an objective of improving its service delivery. Delta Air Lines has some school training centers for pilots. A stringent policy relating to training pilots is aimed at improving the standards of its flights. In fact, customer department statement aims at empowering employees with adequate experience and skills in order to provide excellent service. Delta Air Lines offers a reimbursement of $2000 for tuition fee. In addition, the company provides an e-learning technology, which helps to improve employees’ performance for those present at workplace. Employees Rewarding The management concluded that individual recognition is the most effective way of motivating employees. Delta Air Lines recognize that the most important aspect in an individual is his or her attitude. According to Delta Air Lines’ management, for employees to be instilled with positive attitude, his or her morale should be improved. During difficult financial times, recognition of employees has helped to reduce operation costs associated with employees’ rewarding. The management developed Delta Gaining Altitude program, which enabl es employees to be recognized and rewarded for their services. Delta Gaining Attitude program helps to instill a positive approach to its employees. This is aimed at motivating employees by influencing their behavior positively. As a strategy, Delta Air Lines management has empowered employees to recognize and comment on the performance of their colleagues. Currently, Delta Air Lines provides cumulative points for purchasing products, which has been entirely welcomed by all staff members. Delta Air Lines recognizes employee anniversaries where it begins with the first year and then performed at an interval of 5 years. On completing ten years, an employee would receive a recognition letter from the CEO. Chairman Club was established with an aim of giving recognition to best performing employees. On average, the Chairman Club initiates 102 staff members who have contributed enormously to the success of Delta Air Lines. Such employees are to be chosen by their workmates and confirmed b y the management. However, an individual should be registered at a site provided by Chairman Club in order to receive recommendation for good performance. Stiff competition at the Airline Industry Delta Air Lines faces tough competition in the airline industry both at local and international markets. Stiff competition in the market is due to the presence of major airlines that offer excellent services. Recently, a number of airline companies have come up with cost-leadership strategies, which have forced Delta to respond equally by lowering its initial fare prices. The major foreign rivals of Delta Air Lines include Singapore Airline, Cathay Pacific and Air New Zealand. However, Delta is responding to the competition through increasingly improving its services. Recommendation Although policies and structures of an organization are important in determining the performance of an entity, it has been recognized by a number of scholars that human aspect is crucial in determining the effe ctiveness and efficiency of a firm (Woods West 2010, p. 75). Human beings control machines and other physical facilities including computers and therefore, a slight change in human behavior might highly affect results of a particular process or activity. Any organization should ensure that it has effectual management team, as well as competent employees in ensure that quality services are provided as per the set standards. Since Delta faces stiff competition in the airline industry, it would be prudent to come up with specific measures that would ensure excellent services are offered to its esteem clients. Such activities would require well laid strategies, which would particularly generate an effective leader. Services improvement, such as fitting aircrafts with executive seats, would help Delta attract a number of customers. Generally, customers require comfort, such as good entertainment and provision of quality and affordable meals and drinks both inside the aircraft and at the airport waiting lounge. Although cost-leadership strategy has been a major strategy used by airline companies, it would be advisable not to lower prices beyond certain levels. This would lead to losses. To ensure that excellence is maintained at Delta Air Lines, the management should provide more appealing rewards that would enhance productivity of employees. For instance, employees should be provided with salary increment, though it has to be realistic to avoid exorbitant operational expenses. Delta is embracing recognition as opposed to other rewards approaches. Although this has an effect of reducing costs associated with rewards, such rewards would have less impact on employee’s level of performance. Delta should in fact consider other non-financial rewarding techniques such as promotions, job rotation and employee empowerment. Such approaches are likely to facilitate high levels of performance amongst staff members. Conclusion This paper has covered a number of issues r egarding leadership and motivation. It has solely discussed issues pertaining to leadership and motivation practices at Delta Air Lines. To understand fully the implication of effective leadership and motivating approaches that would finally help in improving the level of performance at Delta Air Lines, this paper has discussed various types of leaderships, as well as theories that were put forward by different scholars. It has also given more details concerning motivation and related theories. From various reading materials and various managerial perspectives in different institutions including Delta Air Lines, it is confirmed that effective leadership is one that has routine and effectual communication processes. Leaders should communicate complex aspects in a more simple way. They should understand the proficiency and qualifications of individual employees in order to assign jobs accurately. Competent leaders ensure that they give pragmatic directions and vision, which assists in attaining the set objectives and standards. Although traditional modes of management are not popular in the contemporary world of business, it is evident that planning, controlling and monitoring remain key factors in improving employees’ level of performance. In addition, motivation factors, such as offering financial incentives, are mostly used by a range of entities to increase the level of productivity among its employees. However, it is concluded that non-financial incentives to a large extend help in reducing the cost of operations among various organizations such as Delta Air Line. Delta Air Lines has a number of rewarding approaches. However, it considerably embraces recognition technique as opposed to rewarding systems. Recognition is initiated by allowing employees to give comments online. Chairman Club helps to identify some individuals who are rewarded after recognizing their great contribution towards the overall performance of the company. Moreover, Delta Air L ine continues to show competent leadership through the websites that are chiefly designed for monitoring performance of various departments. For instance, customer service department is provided with operation manuals where it records all data concerning customers. This helps in keeping track and controlling operations at Delta Air Lines. 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