Xiamen Case Study_15pgp004_Abhishek Srivastava

HRM CASE ANALYSIS – XIAMEN AIRLINES: PAY FOR PERFORMANCE

Submitted by

Abhishek Srivstv !"P#P$$% Se&ti'( A

Abstract:

 )h'u*h  d'ub+e di*it *r',th i( the re&e(t times hs mrket  dy(mi& *r',th i( the Aviti'( i(dustry i( Chi(-  *+'b+ best- it +s' s, i(&rese i( .sse(*er by !/0 1 )' &ter t' this dem(d !$$ (e, .sse(*er 2ets ,ere i(tr'du&ed e&h yer1  )his s, i(3u4 '5 (e, .rivte &hi( &rriers +'(*side e4.(si'( '5 the er+ier e4isti(* .+yers1 M'st '5 the .rivte &hi(s 5i+ed yet the dem(d *re, re++y 5st1 F+i*ht de+ys ,ere 5re6ue(t (d thret '5 +ter(te tr(s.'rtti'( te&h('+'*y ,s ( issue1 R.id deve+'.me(t '5 tri(s (d hi*h,ys +s' .'sed threts t' this mrket (d he(&e the stbi+ity ,s ( issue1 Xime(Air 75'rmer+y Xime( Air+i(es8 is the 9rst .rivte+y ',(ed ir+i(e i( the Pe'.+es Re.ub+i& '5 Chi(1 Xime(Air is the '(+y m2'r Chi(ese &rrier ,hi&h '.ertes ( ++;<'ei(* 3eet1 Key Issue(s) faced by XiamenAir and the Aviation industry in China: •

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Re&ruitme(t (d reti(i(* e4.erie(&ed .i+'ts due t' sh'rt*e i( b'th d'mesti& (d *+'b+ +b'r mrkets1 A**ressive re&ruiti(* +ed t' u(eve( .y s&+e bet,ee( +'&+ (d 5'rei*( .i+'ts1 A+s' m're dy;'=s (d esier r'utes ,ere .r'vided t' them1 Privte ir+i(es '=ered better .y th( stte ',(ed1 CAAC i(ititive t' issue (ti'(+ 3yi(* +i&e(se b''sted this 2'b h'..i(* behvi'r1 7risk t' '.erti'(+ s5ety8

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Strikes (d .r'tests +edi(* t' si&k ir+i(es1

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Pr'5essi'(+ ethi&s '5 .i+'ts 6uesti'(ed1

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Issue 5'r FO> 7F+i*ht '.erti'( de.rtme(t8 t' desi*( (d s&hedu+e hu(dred s '5 3i*hts (d &''rdi(te th'us(ds '5 .i+'ts 7s&hedu+i(* et&18

Pay for performance benets: 8 b8 &8 d8

Mutu+ re,rds I(&resed m'tivti'( I(&resed &'m.(y m'r+e I(&resed &'m.(y +'y+ty

e8 I(&resed .r'du&tivity Em.+'yees +,ys see  &+er &'((e&ti'( bet,ee( their i(&e(tive .yme(ts (d 2'b .er5'rm(&e1 Em.+'yees sty i(  9rm be&use '5 the .y?.y stru&ture bei(* '=ered1 )hey redi+y deve+'. the re6uired 2'b ski++s i5 there is  .r'.er .y stru&ture i( .+&e1  )he e=e&tive(ess '5  .y m'de+ de.e(ds u.'( three thi(*s; Eciency Euity Comp!iance1 • • •

"# Eciency: it i(v'+ves t,' *e(er+ res '5 &'(&er(1 (i) $trate%y: >'es the .y;5'r;.er5'rm(&e .+( su..'rt &'r.'rte 'b2e&tives@  )he re,rd sh'u+d ('t be '( the bsis '5 sttus 6u'1 Fi(++y- m(*eme(t hs t' ddress the m'st di&u+t 6uesti'( +ike; H', mu&h '5 ( i(&rese mkes  di=ere(&e@ H', d'es it tke t' m'tivte ( em.+'yee@ (ii) $tructure: Stru&ture '5 the 'r*(iBti'( sh'u+d be su&ie(t+y de&e(tr+iBed t' ++', di=ere(t '.erti(* u(its t' &rete 3e4ib+e vriti'(s '(  *e(er+ .y 5'r .er5'rm(&e .+(1 >i=ere(t '.erti(* u(its my hve di=ere(t &'m.ete(&es (d di=ere(t &'m.etitive dv(t*es- s' the 'r*(iBti'( sh'u+d ('t hve  ri*id .y;5'r;.er5'rm(&e system tht detr&ts 5r'm these dv(t*es1 • • •

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&# Euity ' airness  )he se&'(d desi*( 'b2e&tive is t' e(sure tht the system is 5ir t' em.+'yees1 A key e+eme(t i( 5ir(ess is &'mmu(i&ti'( re*rdi(* ,ht is e4.e&ted 5r'm em.+'yees1 •

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# Comp!iance:  )he .y 5'r .er5'rm(&e system sh'u+d &'m.+y ,ith e4isti(* +,s s  *''d re,rd system e(h(&es the re.utti'( '5 the 9rm1 •

*utcomes of the reform    

Pi+'t 3yi(* h'urs i(&resed t' $$ h'urs &'m.red t' D$$?$$ h'urs i( 'ther ir+i(es1 Sved hiri(* &'st s  resu+t '5 the b've .'i(t1  )he e4.erie(&ed .i+'ts ,ere m're th( ,i++i(* t' tri( the y'u(*er .i+'ts1  )he y'u(*er .i+'ts ,ere +s' i(s.ired t' *et the tit+e '5 h'('ured 3i*ht &.ti(1

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As  resu+t- there ,s  stee. *r',th '5 %/0 i( &'m.(y .r'9ts 5r'm /$$;!$ (d +s' ttriti'( rte ,s redu&ed t'  mi(imum1