Essay on Hrm Case Analysis

1066 Words May 23rd, 2016 5 Pages
XIAMEN AIRLINES: PAY FOR PERFORMANCE

Company Overview:

Xiamen Airlines was established in July, 1984 jointly by CAAC and the Fujian Provincial government. By December 2013, its shareholders were china Southern Airlines Co. Ltd., Xiamen C&D corp. Ltd. And Jizhong energy Resources Co. Ltd with 51%, 34% and 15% of shares respectively. They are the only Chinese Airlines featuring all Boeing fleet, operating 102 fleet with 16,650 seats on 218 domestic routes and 26 International and regional routes. They are known for its excellent customer service and extraordinary safety performance. In 2014, Xiamen Airlines employees 11,000+ employees including 1000+ pilots.

Airlines Industry in China:

Strengths | Weakness | * Highest
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The approach
Combination of objectives split between: * Hard targets (theoretically 50 per cent and specify ‘what’ needs to be achieved). * Behavioral measures (theoretically 50 per cent and specify ‘how’ to achieve). * Behavioral indicators are based on applicable capabilities depending on the employee’s role. * Guidelines and explanation is provided for each behavior category of ‘role model’, ‘middling’ and ‘falling short’. * Assessment of behavioral measures and hard targets are combined and, with the use of judgement managers, reach an overall score that aligns to the performance rating.

How it works

— The performance management process is an annual cycle, with objectives being set or amended in formal half-yearly review sessions.
— Half-yearly reviews allow employees to update objectives so they can build on their performance for the first six months.
— Historically, the airline had a four-point performance scale: ‘Not achieving’,
‘Met objectives’, ‘Well met’ and ‘Exceeded’. The airline is currently reviewing this to reduce it to a three-point scale.
— The organization has made a big investment in training managers on performance management, coaching effectiveness and people management.
The training is refreshed periodically and is online and classroom based.
— Performance bonus is separate from base pay increases and is…

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