The aim of this thesis is to explore Human Resource Management (HRM) in the passenger business of the airline industry, and in particular, the potential for standardisation of HRM in airline alliances, by using the example of Star Alliance . A first analysis immediately highlights that the area of HRM continues to be individually managed by Star Alliance’s member airlines. EATON (2004, p. L) makes the assumption, “I doubt very much if Star Alliance is sufficiently cohesive to lead to significant changes, let alone convergence, in HRM practices”. This belief is to be explored. This thesis will have four main objectives. The first objective is to identify potential benefits and costs to the alliance that could be associated with a standardised HRM-policy . These advantages and disadvantages will be grouped according to the six L’s (learning, leaning, leveraging, linking, leaping, and locking out), as defined by PREECE (1995) (see 3.1). Secondly, the author would like to use a theoretical model, the integration-responsiveness grid of PRAHALAD/DOZ (1986; 1987), to capture the pressures, which make the strategies of standardisation or individualisation critical. This model will be applied to the airline industry, and to an organisational (Star Alliance), and functional (HRM) context (see 3.2). The third objective is to analyse the extent to which the members of Star Alliance apply standardised, as apposed to individualised HRM instruments in reality, and to consider whether Star Alliance airlines are increasingly or decreasingly standardising the HRM-field (see 3.3). Finally, the author would like to discus the reasons to explain the findings of section 3.3 (see 3.4).
Table of Contents
1. Thesis Outline
1.1 Objectives
1.2 Topic Relevance
2. Definitions and Background
2.1 Airline Industry and Alliances
2.1.1 Airline Industry
2.1.2 Airline Alliances
2.1.3 Star Alliance
2.1.4 Standardisation at Star Alliance
2.2 Human Resource Management
2.2.1 Human Resource Management
2.2.2 Standardisation of HRM
2.2.3 Individualisation of HRM
2.3 Theoretical Background
3. Analysis: Standardisation vs. Individualisation
3.1 Objective One: Benefits and Risks
3.1.1 The Six L’s
3.1.2 Summary and Résumé
3.2 Objective Two: Analysis of Pressures
3.2.1 Pressures towards Standardisation
3.2.2 Pressures towards Individualisation
3.2.3 Summary and Résumé
3.3 Objective Three: Standardised HRM at Star Alliance?
3.3.1 Analysis Approach
3.3.2 Aspects of HRM in Star Alliance
3.3.3 Summary, Tendency and Résumé
3.4 Objective Four: Reasons
3.4.1 Five Reasons for Star Alliance’s HRM Policy
3.4.2 Summary and Résumé
4. Concluding Section
4.1 Summarising Comments and Résumé
4.2 Suggestions for Future Studies
Research Objectives and Thematic Focus
This thesis aims to explore Human Resource Management (HRM) within the passenger airline industry, specifically focusing on the potential for standardising HRM practices within airline alliances, using Star Alliance as a primary case study. The research investigates whether such an alliance is cohesive enough to warrant converged HRM policies or if member airlines must maintain individualised approaches due to structural and legal differences.
- Benefits and risks of standardised HRM policies in strategic alliances.
- Analysis of external and internal pressures driving standardisation versus individualisation.
- Empirical assessment of HRM practices within Star Alliance member airlines.
- Reasons behind the persistence of individualised HRM strategies in global airline networks.
Excerpt from the Book
3.1.1 The Six L’s
Firstly, learning advantages of standardised HRM arise from the inexpensive and efficient acquisition of knowledge and know-how (cp. Preece 1995, p. 545). Knowledge can be defined as, “the whole of rules (know-how, know-what, know-where and know-when) and insights (know-why) that can be extracted from, and help make sense of information” (de Wit/Meyer 2000, p. 337). A closer co-operation on HR-related issues would lead to gains through the partner’s knowledge (Wang 2004, p. 462), and an increased knowledge transfer between airlines (cp. Oum et al. 2000, p. 844). This intra-organisational knowledge transfer would mean the development of knowledge in one airline which is then integrated and made use of in other airlines (cp. Schlegelmilch/Chini 2003, p. 218, 226).
One may argue, that there would be a tendency of airlines to increasingly compare, or benchmark their HR-related issues, and share best-practice methods with their partners. However, a standardised HRM policy is not necessarily required to facilitate interchange or benchmarking, as the development of global airline alliances, as well as the membership of employees in internationally organised labour groups sufficiently achieves this. Employees also build social networks, which enable the sharing of knowledge to prevent its under utilisation (cp. Bartlett/Ghoshal 2002, p. 38). In addition, knowledge transfer is not always successful, as it depends on several factors, such as sender and receiver characteristics and absorptive capacity. Futhermore, learning disadvantages arise from partner opportunism or organisational challenges, which endanger the stability of a standardised HRM. There exists the risks of unwanted knowledge diffusion, and of partners deciding to terminate the co-operation once they have achieved their objectives. Increased information exchange could also create an additional conflict situation between airlines and unions. Airlines would possibly aim to reduce wages and employment conditions to the lowest alliance standard, whereas unions would more likely aim to increase wages and employment conditions of their members to the highest alliance standard. Common standards would logically mean improvements for some and worsening for others employees.
Summary of Chapters
1. Thesis Outline: Provides an introduction to the research objectives, the relevance of the topic, and the structured approach taken by the author.
2. Definitions and Background: Defines core terminology related to the airline industry, airline alliances, and the concepts of standardisation versus individualisation in Human Resource Management.
3. Analysis: Standardisation vs. Individualisation: Offers a deep-dive analysis of benefits, risks, pressures, and current empirical findings regarding HRM practices in Star Alliance, supported by industry examples.
4. Concluding Section: Synthesises the findings, addresses the limitations of the study, and proposes directions for future academic research in this field.
Keywords
Human Resource Management, HRM, Star Alliance, Airline Industry, Standardisation, Individualisation, Strategic Alliances, Globalisation, Labour Relations, Corporate Strategy, Training and Development, Competitive Advantage, Organisational Culture, Labour Costs, Recruitment
Frequently Asked Questions
What is the primary goal of this thesis?
The primary goal is to examine the feasibility and potential of standardising Human Resource Management (HRM) practices within the context of the Star Alliance airline network.
What are the central thematic fields covered?
The work covers aviation economics, strategic alliance theory, standardisation versus individualisation in HRM, and labour relations in the global airline sector.
Which scientific methods are employed?
The author uses a qualitative approach, applying theoretical models like the six L’s (Preece) and the Integration-Responsiveness Grid (Prahalad/Doz) to analyse primary data gathered via interviews and correspondence.
What does the main part of the document address?
The main part analyzes the benefits and risks of standardised HRM, assesses the pressures for standardisation or individualisation in the industry, and examines current real-world HRM practices at Star Alliance members.
Which specific HRM aspects are examined?
The study examines HR planning, recruitment, training and development, management development, remuneration, union representation, and redundancy procedures.
How is the term "Standardisation" defined in this study?
It refers to the central management of resource commitments across national boundaries in the pursuit of a unified strategy, normally overseen by the alliance headquarters.
Why does the author conclude that Star Alliance lacks HRM convergence?
The study concludes that members remain legally autonomous with diverse labour laws, union environments, and national cultures that make a single, standardised HRM policy currently implausible.
What role do "cabin crew" and "pilots" play in this research?
These two groups serve as vital case studies to illustrate how different HR training and recruitment needs are managed, highlighting the difficulty of creating one-size-fits-all policies across diverse international airlines.
- Quote paper
- Sarah Wilson (Author), 2005, Human Resource Management in the Airline Industry - The Example of Star Alliance, Munich, GRIN Verlag, https://www.grin.com/document/41155
