This research project evaluates the effectiveness of human resource management mechanisms used by Etihad Airlines and their significance in guaranteeing employees' motivation to ensure high levels of productivity and satisfaction at the company. Etihad Airlines Company belongs to the service industry. The airlines heavily rely on the services provided by their staff. The staff's services are crucial since they give the company profitability and productivity in the airline industry. The HRM department is tasked with ensuring that the employees are motivated. The department equally foresees and solves the upcoming issues in the company.This research aims to analyze the role of the human resource department in ensuring employees' motivation. Other aims of the study are to evaluate the company's HRM management techniques, determine job satisfaction levels among the staff, and evaluate factors that lead to employees' satisfaction to make a prosperous company. Like any other company, Etihad Airlines faces challenges in striking a balance between providing quality customer services and staff job motivation and satisfaction.
Research Objectives
• To identify the company's HRM techniques
• To measure levels of job satisfaction among the employees
• To determine factors that motivate the staff to make a better company
Statement of the ProblemThe primary research question is the analysis of techniques of Human Resource Management at Etihad Airlines and factors that led to the motivation of the employees at the company. Below are the sub-questions of the research paper:
- What are the factors that motivate the staff at employees?
- What practices do the HR at the company use to motivate the employees?
- What problems do the employees encounter while at their place of work?
The Company Survey
Demographic Company Survey
Survey questions to the 50 respondents
Q1. How old are you?
Analysis of the Interview Questions
- What motivations are provided by Etihad Airways?
The motivations provided at Etihad are good working conditions, recognition of employees, better payments, and job training. - What strategies do the HRM at Etihad use to motivate employees?
The HRM at the company uses the Performance Appraisal System, which guarantees career development and performance management. The HR equally uses new technology to improve its structure, promote skill development among the employees, and career development. - What are the impacts of incorporating the latest technology at Etihad's HRM?
The latest technology enables employees to be more productive. It also promotes career development. - How can you compare the company with your preceding employers?
Etihad is far much better than the other companies that I have worked in. The airline company gives high remuneration and offers opportunities for training and job development. - What issues could Etihad's employees be experiencing while at work?
Some of the issues are work overload, poor communication channels, and lack of recognition.
Data Collection and Description
Both primary data and secondary data were used in this research project. The primary data was collected by the online administration of a simple survey. The survey questions randomly sampled the motivators that caused job satisfaction at Etihad. Questionnaires were the quantitative method used to analyze the survey results. The raw data that was collected was measured. The results of the research were presented by drawing graphs and tables. The second source of data during the research included a collection of information regarding the company's records. Published previous research studies about the airways were also utilized as sources of secondary data during the research. Other sources of secondary data were books, journals, and online open information.
About the Etihad Airways
The Etihad airlines came into being after the establishment of the July 2003 Royal Decree. The airline is privately held and wholly owned by the Abu Dhabi government, which commands it to do its operations in a profitable, commercial, and safe manner (O’Connell and Bueno, 257). The strategic geographical location of the airways, at the heart of the Middle East, allows it to provide its customers with over 100 across the world. The airline flies to the continents of Asia, Africa, Australia, Europe, the Americas, and the Middle East (Bose 22). The company owns at least 120 aircraft which are operated by a group of young and friendly fleet officials. The vision of the company is to become the best airways that link the globe through Abu Dhabi.
The airlines are an integral part of the development of the world economy since it provides both passenger and freight services. According to the research study, Etihad Airways is among the fastest-growing airlines in the world (Izzo 48). According to the latest forecast, the airlines have one of the most promising growths regarding both the capacity of the new airline and passenger-kilometers. Projections indicate that the company is expected to develop the latest air traffic capacity. During the development of the new capacity, the number of seats is expected to increase by 10%. The continent of Asia, where Etihad is situated, is expected to record a 7.5% increase in their air capacity. (Sandybayev 24). This figure is far better compared to that of Europe and America; where the airline industry is projected to grow in low single digits. The growth in the airline industry has created competition among the airline companies whereby each company is struggling to attract the maximum number of customers. The UAE based airline company advances towards growth with promising improvements in their strategy of doing business. In a bid to expand both the network and fleet, Etihad has partnered with some of the largest airlines through code sharing and buying of stakes.
SWOT Analysis for the Etihad Airways
Strengths - Etihad has more than 4,000 flights every month.
- Its strategic geographical location in the Middle East grants it access to top destinations; Asia and Europe.
- The company has a unique branding that appeals to the customers.
- The airline has a large number of employees, at least 20,000.
- The airways are the preferred company that is endorsed by the government of Abu Dhabi.
- Etihad sponsors a variety of events and clubs; an example is the EPL's Manchester City FC.
- Etihad emphasizes the provision of quality services to its customers; provision of beautiful lounges and entertainment during flights.
- The company is always stable financially. In the year 2016, it recorded a 40% increase in profit from the preceding year.
- Etihad is a minority shareholder in other airlines.
- The airline has a code-sharing network that is very extensive.
Weaknesses - The company only flies to international destinations, and this leads to a high cost of doing business
- Cutthroat competition from other airlines limits Etihad's market share growth.
- Etihad has purchased stakes from other airways to increase its route network. Financial resources have been siphoned to buy stakes from Air Seychelles, Alitalia, and Air Serbia.
Opportunities - Partnership with airports to offer premium services to guests.
- Penetration into more international destinations to increase business.
- Provision of domestic flights to increase revenue.
- Investigation of legal options to create a subsidiary airline in Europe to solve the legal difficulties that Etihad experiences in the continent.
Threats - Etihad's acquisition of stakes in other companies can cause a threat if the European countries rule against the company's agreements on code-sharing agreements.
- The increase in cheap long-haul airways could reduce Etihad's market share.
- The company recently recorded a loss of $1.87 billion, and this predicts a difficult time in the future of the company (Hasan, Ananda and Alit 327).
The primary data was extracted by the preparation of questionnaires which were distributed to a random sample of 50 people. The primary data was also obtained by holding interviews with ten employees of Etihad Airways. The administration of the questionnaires was online-based. The link addresses to the questionnaires were sent to the airline's employees through online platforms like emails, WhatsApp, and Facebook. The move assisted in obtaining the employees' feedback on motivation and satisfaction at the company. Quantitative techniques were also used to validate the results from the online survey. The use of qualitative research techniques analyzed the outcomes of the interview of the company's employees.
Descriptive Statistical Analysis
Pie charts were used to indicate the percentage values of the demographic data of employees.
Pie Chart Showing Proportion of Age of employees
Pie Chart Showing Gender Proportion
Pie Chart Showing Nationality Proportions
Implementation of Regression Analysis
The various levels of job satisfaction among the employees at Etihad were rated on a scale of 10.
Plot Showing the Scatter Plot of Job Satisfaction
Implementation of Advanced Statistical Tool (Forecasting Technique)
The level of employees' satisfaction was measured on a scale of 10.
Level of satisfaction Current level of satisfaction % Forecast level of satisfaction %
0-2 10% 12%
3-4 10% 13%
5-6 20% 45%
7-8 34% 60%
9-10 41% 35%
MAD= ((10-12) + (10-13) + (20-45) + (34-60)/4
MAD=14
From the results, it is evident that the company is off an average of 14 units for every forecasted data.
Further Statistical Analysis on the Relationship between Gender, Age, Nationality and Employment Rate
The following statistical analysis was done using the language R in RStudio.
A Dataset obtained from the UAE open data portal containing data on employment rate, gender, age, nationality from 2016-2018 was analysed:
Correlation between Employment Rate and Gender
The correlation between gender and employment rate was as follows:
The Kruskal Wallis test was used for testing correlation since gender variable was a categorical variable:
The p-value is 0.4605 which is larger than 0.05 indicating the relationship between the employment rate and gender is not significant, thus employment rate is not affected gender.
Correlation between Employment Rate and Nationality
The correlation between nationality and employment rate was as follows:
The Kruskal Wallis test was used for testing correlation since nationality variable was a categorical variable:
The p-value is 0.7733 which is larger than 0.05 indicating the relationship between the employment rate and nationality is not significant, thus employment rate is not affected nationality.
Correlation between Employment Rate and Age-Groups
The correlation between nationality and age-group rate was as follows:
The Kruskal Wallis test was used for testing correlation since age-group variable was a categorical variable:
The p-value is less than 2.2e-16 which is smaller than 0.05 indicating the relationship between the employment rate and age-groups is significant, thus employment rate is affected by age.
A Multiple Linear Regression Model
The model indicates how age, gender and nationality affect the employment rate:
From the model we can see that the employment rate unaffected by age, gender or nationality is at 7.468e-03. The age group of above 65 years, the year 2018, the male gender and non-citizens show minimal or adverse effect on the employment rate. The rest of the variables show a positive effect on the employment rate.
The ANOVA Model
The ANOVA table of the multiple linear regression model indicates that the year and age variables have a significant relationship with the employment rate because of the p-values which are smaller than 0.05. The relationship between age and employment rate is stronger than the relationship year and employment rate because of the larger f-value.
Hypothesis Test: The Employment Rates Are Dependent Of Each Other.
A chi-square test was carried out:
The p-value is 1 which is larger than 0.05 indicating the test is insignificant. The values are not dependent of each other.
Prediction
From the multiple linear regression models, gender affects the employment rate by 0.09925 %, therefore, it is possible to predict that in the year 2019 the employment rate increased by 0.09925% in the genders.
Discussion of the Results
The results of the study showed that many employees were in strong agreement that the company should offer opportunities for career development to motivate the workers. Another result has demonstrated that the employees would like to have retirement plans, higher remuneration, healthcare benefits, and many other benefits to motivate themselves. According to the results, the HRM at the Etihad Airways applies the use of artificial intelligence in improving its structure which enhances a pleasant working environment for its employees. This move is significant to HRM structure since it enhances total management of quality to enhance the performance of the company. It also an emphasis on career development and skill promotion among the employees, and the Performance Appraisal Systems, which buffers career support, production, and management of the employees.
According to the results of the interview, the workers at Etihad Airways regard appreciation of employees, good working conditions, better remuneration, and ethical leadership as the motivational factors being provided by the airline. From the interview, it was also clear that Etihad Airways focuses on the management of employees' performance, career development among the workers, and employees' skill development. Despite these motivational factors, the employees encountered some issues at Etihad Airways (O’Connell and Bueno, 259). Some of these issues are overworking, poor communication in the job place, salary issues, less emphasis on recognition, and general job dissatisfaction.
Results from secondary data showed that the company has clear strategies on the career progression of the employees, development of employees' skills, and management of employees' performance. These strategies are parts of the company's development plan (Solanki, 26). The secondary data indicate that high performance and productivity of Etihad Airways is because of the quality management at the company. All the employees at Etihad Airways are likely to be focused on providing customer services to the fullest if the quality management strategy of the airline succeeds. The management strategies of the HRM can enable the organization to achieve its business plans. The results of the research study somehow agreed with the results of the initial studies. For example, according to Bose (22), he states that by improving employees’ performance through motivation, organizational behavior will also be improved. Additionally, improvement will also be experienced in the efficiency and productivity of the employees. The results from both studies indicates employees' motivational factors which include job recognition, good working conditions, job security, medical insurance, better renunciation, and ethical policies at the company.
From the survey results, the research study found that the majority of the people who took part in the survey believed that employees at Etihad Airways were mainly motivated by career development. The participants in the study strongly agreed that the HRM should regard the provision of benefits and better payments as motivating to the employees. There is strong agreement that the job training provided by the company is prompting to the employees. During the survey, there were appropriate levels of understanding that the HRM should consider high performance as a motivator. The survey results established that better working conditions are likely to motivate workers. Most employees gave high average levels of agreement that both retirement plans and healthcare schemes are motivating. Some of the participants agreed that the excellent relationship between the leaders and their juniors contributed to work satisfaction. The level of motivation at Etihad Airways is averagely high, and this means that communication between the supervisors and the employees is a motivator. Generally, the levels of HRM in ensuring that the employees are motivated at the workplace are averagely high.
The SWOT analysis enables the airline to ascertain its level of competitive advantage regarding other companies. The role of the HRM establishes effective online recruitment that allows interested applicants to make their applications easily (Jonas 215). The threat to the company's HRM is when it recruited several high skilled personnel. This is likely to stir up competition among the educated employees at the HRM.
Overall, employee motivation is an essential part of any company as it guarantees better performance and profitability. The HRM forms the basis of any airline industry. This means that Etihad Airways should consider investing more in its HRM to gain a competitive advantage in the world airline industry (O’Connell and Bueno, 260). Etihad should equally unveil their HRM practices that are in line with the company's goals and missions. This research paper recommends putting more emphasis on quality management at the airline's HRM. The practices supported by the research include but not limited to teamwork, frequent improvements, strategic techniques, customer focus, time consciousness, and high quality of work. The results of the primary and secondary data helped in finding answers to the statement of the problem provided by the proposal.
• What is Etihad Airways doing to motivate its employees?
From the interview and the survey, it was found that the HRM at Etihad is doing several things to motivate the employees. These strategies include a pleasant working environment, high salaries, recognition of the workers, and development of the employees.
• What strategies does the Etihad HRM use to motivate employees?
The HRM uses the latest technology to improve its structure. The department also uses systems of Performance Appraisal in career development. In a bid to deal with competition, the HRM applies quality management to enhance better services to the customers.
• What problems do employees at Etihad experience?
From the interview, the research established some of the issues Etihad employees experience while at work. Overworking, underpayment, unhappiness with the job, poor communication channels, low recognition, and slow development in career are some of the problems the employees face.
Conclusion and Recommendations
Recommendations
To achieve success and expansion of the company, it is recommended that the HRM team, leaders, and the employees should work as a team. The following are other recommendations that can help ensure imprisonment in performance.
• Continued investment in employees' training is recommended as it inspires them to work more, and this leads to better customer experience.
• Empowerment of employees is recommended as it motivates the workers. This leads to the growth and development of the company.
• It is recommended that the company should implement quality management practices in the HRM. The recommended quality management practices are teamwork, frequent improvement, and strategic techniques, focus on the provision of quality customer services, time consciousness, and quality work.
• The airline should consider both monetary and other nonmonetary means of compensating the employees. This makes employees work even harder. The financial compensation includes gifts, bonuses, incentives, and other physical benefits. Nonmonetary payment includes recognition of employees, appreciation of workers, flexible schedules at the workplace, employees' satisfaction, and better relationship between the employees and the supervisors
• Improve the channels of communication among various levels of the company. The employees should be free to share their views, suggestions, and ideas. This makes the employees feel like they belong to the company; hence they work better.
Conclusion
The primary and secondary data collected during this research study have helped the project to get better results in determining the significance of the Etihad's HRM in ensuring employees' satisfaction. Job satisfaction and high levels of employees' performances are a perfect indicator that the employees are motivated. The motivation of employees is an essential component of any company since it warrants high productivity and better employees' performance. Etihad Airways has developed a variety of motivational strategies for its workers; excellent and healthy work environment, reasonable payments, recognition of employees, training of workers, and better incentives. The HRM at Etihad has incorporated the Performance Appraisal System, which guarantees employees' motivation and satisfaction by ensuring career support, management of performance, and development of the employees. The system evaluates both the past and upcoming employees' performance. This research study established that modern technology is very crucial to the HRM at Etihad since it enables the employees to learn how to develop at the job place. Advanced technology is a motivator to employees since it eases their operations and allows them to effectively access the benefits offered to them by the airline company.