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Xiamen Case Study_15pgp053_Tadi Kiranmayi
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Xiamen Case Study_15pgp053_Tadi Kiranmayi
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Kumar Abhishek
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HRM CASE CASE ANAL ANALY YSIS – XIAMEN AIRLINES Tadi Tadi Kiranmayi | Section A | 15pp!5"
Introduction:
XiamenAir #$ormer%y Xiamen Air%ine&' i& t(e $ir&t pri)ate%y o*ned air%ine in t(e +eop%e,& Rep-.%ic o$ C(ina/ XiamenAir i& t(e on%y ma0or C(ine&e carrier *(ic( operate& an a%%2oein $%eet/ XiamenAir *a& (onored *it( t(e tit%e o$ 3 The Best Airline in Mainland con&ec-ti)e -arter& in t(e 3Air%ine& Ser)ice S-r)ey3 made .y CARN6C/com/
China3
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2y ear%y 7!189 Xiamen Air%ine& (a& 4 .ranc(e& in :-;(o-9 Nanc(an9 Han;(o-9 Tian0in9 C(an&(a9 and 2ei0in/ T(e air%ine operate& 71< dome&tic ro-te& a%on *it( 74 internationa% ro-te&/ It $%ie& o)er "4!! $%i(t& per *ee=/ XiamenAir ran=& >8 amon a%% C(ine&e carrier& .y dome&tic capacity and contri.-te& ?/7@ o$ t(e dome&tic capacity in C(ina/ Xiamen Air%ine& conc%-ded t(e year o$ 7!1" *it( a pa&&ener n-m.er o$ 15? Mi%%ion9 and a pro$it o$ 157! mi%%ion CNY #a.o-t 785 mi%%ion S do%%ar&'/ It i& t(e 7?t( con&ec-ti)e year o$ pro$it $or Xiamen Air%ine& &ince 1B< it( t(e %on con&ec-ti)e pro$it record and (i( pro$it rate9 t(e air%ine i& rearded a& one o$ t(e mo&t pro$ita.%e air%ine& in t(e *or%d/ Pay for performance benefits: • • • • •
M-t-a% re*ard& Increa&ed moti)ation Increa&ed company mora%e Increa&ed company %oya%ty Increa&ed prod-cti)ity
Emp%oyee& a%*ay& &ee a c%ear connection .et*een t(eir incenti)e payment& and 0o. per$ormance/ Emp%oyee& &tay in a $irm .eca-&e o$ t(e payDpay &tr-ct-re .ein o$$ered/ T(ey readi%y de)e%op t(e re-ired 0o. &=i%%& i$ t(ere i& a proper pay &tr-ct-re in p%ace/ T(e e$$ecti)ene&& o$ a pay mode% depend& -pon t(ree t(in& efficiency, equity and compliance/ 1. Efficiency: it in)o%)e& t*o enera% area& o$ concern/ (i) Strategy: oe& t(e pay$orper$ormance p%an &-pport corporate o.0ecti)e&F T(e re*ard &(o-%d not .e on t(e .a&i& o$ &tat-& -o/ :ina%%y9 manaement (a& to addre&& t(e mo&t di$$ic-%t -e&tion %i=e Ho* m-c( o$ an increa&e ma=e& a di$$erenceF Ho* doe& it ta=e to moti)ate an emp%oyeeF (ii) Structure: Str-ct-re o$ t(e orani;ation &(o-%d .e &-$$icient%y decentra%i;ed to a%%o* di$$erent operatin -nit& to create $%eGi.%e )ariation& on a enera% pay $or per$ormance p%an/ i$$erent operatin -nit& may (a)e di$$erent competence& and di$$erent competiti)e ad)antae&9 &o t(e orani;ation &(o-%d not (a)e a riid pay$orper$ormance &y&tem t(at detract& $rom t(e&e ad)antae&/ • • •
•
•
2. Equity !airness T(e &econd de&in o.0ecti)e i& to en&-re t(at t(e &y&tem i& $air to emp%oyee&/ A =ey e%ement in $airne&& i& comm-nication reardin *(at i& eGpected $rom emp%oyee&/ • •
". #ompliance: T(e pay $or per$ormance &y&tem &(o-%d comp%y *it( eGi&tin %a*& a& a ood re*ard &y&tem en(ance& t(e rep-tation o$ t(e $irm/ •
$utcomes of t%e reform
+i%ot $%yin (o-r& increa&ed to B!! (o-r& compared to ?!!D
salary break up in US Dollars (source: smile aviation) option option option option option option 1 2 3 4 5 6 Montly basic salary housing allowance overtime !early ticket allowance safety bonus !o" of #ai$ leaves me$ical insurance e$ucation allowance bonus "otal income
21889
20889
17389
16389
12056
9556
1100 1100 1100 1100 1100 1100 300/hou 280/hou 250/hou 250/hou 250/hou 250/hou r r r r r r 6000 2000 2 2000 8000/ch il$ u#to 10000 333868
6000 6000 6000 6000 6000 2000 18000 18000 10000 10000 96 $ays 132 156 180 180 o% $ays o% $ays o% $ays o% $ays o% 2000 8000/ch il$ u#to 10000 321868
2000 8000/chi l$ u#to 10000 273868
2000 8000/chi l$ u#to 10000 261868
2000 8000/chi l$ u#to 10000 201872
2000 8000/chi l$ u#to 10000 171872
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