Description
1) 4-5 pages, 1.5 line space.
Reference book: Organizational Behavior - A Practical, Problem-solving Approach. by Kinicki Fugate, Mc Graw Hill Education
2) Analyze the main issues of this case using the course concepts we have already covered. Please write a report with your analysis and recommendations.
3) Here is a brief guideline about writing a case study analysis, however there are a lot of online guides you can use beyond this one. Please explore other guides as well. https://awc.ashford.edu/tocw-guidelines-for-writing-a-case-study.html
4) Here are several questions about this case to get you started, but you don't need to keep your analysis limited to answering these questions:
- What were the major changes made to the design of the pilot compensation package at Xiamen Airlines? How did these changes help to improve employee motivation?
- Besides salaries and bonuses, what were some of the other HR/leadership practices that Xiamen Airlines used to retain experienced pilots and increase their engagement?
- If you were the HR director at Xiamen Airlines, what would be your concerns about the new compensation system, and how would you plan to address them?
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Explanation & Answer
Attached.
Running head: XIAMEN CASE STUDY
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Xiamen Case Study
Institution Affiliation
Date
XIAMEN CASE STUDY
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Executive Summary
Xiamen airlines are the first privately owned airline in the People Republic of China which
operates 218 domestic routes along with 26 other international routes. It is ranked as the 4th airline
in China by domestic capacity flying over 3600 flights per week. As by 2014 the company recorded
the 27th year of continuous profit with a profit of £245 million. The organization has a high
potential for growth based on its competitive strategies especially in regard to continuous
improvement of employees performance. By 2013 the company aimed at attaining a target of 20
million passengers attaining 18.57 passengers. Though the company never attained its objective it
had a remarkable improvement from the 2008, 9.6 million passengers. On June 6, 2014, Xiamen
co.ltd was recognized in a national forum as an outstanding company in safety performance in
aviation. Through the deputy manager, the company shared its best performance practices that had
placed at high among others crew stability and. It was also reported that a great improvement in
its employee relationship through companies pilot compensation system which aimed at creating
a strong linkage between pay rise and performance. The initial outcome had been positive resulting
improved productivity and job satisfaction. The flight hours notably increased from 700 to 900
hours with a decrease in labor turnover, decreased labor cost and better training given to other new
pilots.
The case study considers that the organization has not been able to sustain the benefits of
loyalty of employees and increased profit. This is because the motivation of employees at higher
levels of skill focuses more on the career life beside monetary value. The use of performance to
determine to determine employees' salaries usually works better for semi-skilled and unskilled
employees who are mostly motivated by better salaries and can be willing to work more hours to
achieve this. The case study defines the drawbacks of this model and possible solutions to the
problem. In this research, it is noted that the greatest concern of the HR director is to determine
whether it will be effective and if not what the possible solutions are. For instance, the reason for
the decline in employee's loyalty could probably be as a result of employees fatigue and being used
to the program. The employees may also feel that the organization is working to achieve shortterm goals after which it may regard the employee's effort since they have the understanding of
the different motivational programs. The case study brings to the attention of the HR the value of
employees type evaluation in determining the type of motivation model to use and the time
duration. The analysis works to develop alternatives to the model for improved and sustainable
performance of Xiamen in regard to their strategic plan of becoming a significant ...