1. INTRODUCTION GMG Airlines is a largest private airline of Bangladesh with its head office in the AAA Tower in Nikunjo-2 Dhaka, Bangladesh. It is Bangladesh’s largest and oldest private airlinecitation needed operating domestic, regional, and international services, upholding the image of Bangladesh to the world. Its main bases are Shahjalal International Airport, Dhaka, and Shah Amanat International Airport, Chittagong. On 17 June 2009, Beximco Group bought a stake in GMG Airlines and has injected cash in the airline. * Sources of THE REPORT
This is an assigned project of the course “Human Resource Management” on “PRACTICES OF HUMAN RESOURCE MANAGEMENT IN GMG Airlines Ltd. : RECRUITMENT AND SELECTION, TRAINING AND DEVELOPMENT” the aim of which is to enable us to learn about an HR activity, in practice and to use our HR knowledge to offer some evaluation of this activity. This study provides us with valuable practical knowledge about HR practices about GMG Airlines Ltd in respect to Bangladesh scenario. * Major objectives This report is prepared with the purpose of getting an overview of some major sectors of the Human Resource Management practices of GMG AIRLINES Ltd. ur major objectives are: * To know how a company manages its recruitment & selection process. * To know how a company manages its training & development process. * To get an idea about the company’s current trends about HR practices. * Scope As we have chosen an Airlines Company, therefore, the focus of the report is mainly on specified HR functions undertaken by the organization i. e. recruitment and selection, training and development. We tried to focus on knowledge about the present & practical HRM scenario of GMG Airlines Ltd. * Limitation
As part of our report preparation we discussed about the various HR practices with personnel department of GMG AIRLINES LTD. Some confidential information such as sample of written test questions pays structure, safety & healthy was not disclosed to us. * Historical Background and Significance GMG has started its operation since 1998 and are trying to provide their services with care . The purpose of this study about HR practices of GMG AIRLINES LTD. to get a clear picture about how a local organization performs different human resource management activities.
For a long while, HR has been neglected in most of the organization of this country. But now-a- days, organizations are getting concerned about the human aspect of the organization as they are the only means that can give them competitive advantage. * Sources and Methods of Collecting Information Interviewing the Personnel Manager of GMG AIRLINES LTD we collected primary information. The questions that we asked to the higher-level authority were open ended. We have collected other information mostly from the secondary sources, like the brochure they provide and from their website. Report Preview We have continued our discussion starting with a brief introduction about the company background and history. Then subsequently recruitment and selection process, training and development activities of GMG AIRLINES LTD. Will be discussed gradually. A topic on disciplinary measures is also covered and then the whole report proper is summarized. 2. COMPANY BACKGROUND GMG Airlines Ltd. – a part of the well-established & reputed GMG Group. It is also one of the leading Private Domestic Airlines in Bangladesh and has become a household name within 3 years of its operations.
On 6th of April 1998 GMG Airlines first took to the skies and has provided committed service ever since. 3. MISSION STATE MENT OF GMG AIRLINES GMG Airlines has committed itself with the philosophy of “first class all the way” to achieve its goal, objectives and strategies. Where it is a small decision for issuance of a ticket or a major decision like selection of an aircraft, efforts are made for ultimate excellence in every area. Over the years the company has marked new areas of focus to ensure uncompromising standards of safety, comfort, reliability and service to its valued customers and partners. 4. Air craft
GMG Airlines Company is equipped with 3 modern state of the art Dash 8 series aircrafts manufactured by Bombardier of Canada. GMG daily connects Dhaka city with the other 6 cities within Bangladesh with frequent and conveniently timed flights at regular intervals. The destinations where GMG presently flies to are Chittagong, Sylhet, Jessore, Rajshahi, Barisal & Cox Bazar. GMG’s current fleet consists of two 37 seater dash 8-100 aircraft and one 50 seater dash 8-300 aircraft. Plans are underway for adding more aircraft to the existing fleet. Canadian dash 8 aircraft are among the finest turbo propelled planes in the world.
GMG Airlines operates 32 flights everyday at an average of one landing / take off every half an hour. 5. Value added services For Khulna passengers bound to Dhaka GMG also offers Air Conditioned Coach Service at convenient times from Khulna city to Jessore Airport and vice versa to connect them to GMG flights. In addition to having its offices at all Airports of the cities being connected, GMG Airlines also has opened its very own offices at various prominent locations in all the major cities to facilitate easier access to the travelers for their reservation requirement and other travel needs.
Today GMG Airlines is known for its prompt and efficient service, convenient flight timings, punctuality, high standards of safety and service with a smile providing a perfect justification to its corporate mission. Its corporate mission is – First Class All the Way 6. Goals and Objectives Short term objective: * Two years 1) Increase market share by 5% 2) Increase aircraft utilization by 3% 3) Add one new city to each rout system in any given year 4) Work on improving one time performance by 5% within one year * Three years 1) Continue to be the most admire in Bangladesh 2) Improve technological know- how by 5% ) Introduce new innovative products or service by 5% 4) Increase at least 2 cities in any given routs * Five years 1) Continue to increase product quality by 5% 2) Continue to develop product line by 5% 3) Keep improving internet capabilities and e-commerce by 5% 4) Continue to rank #1for the next five years in customers satisfaction Long-Term Strategic Objectives (5-10 Years) 1) Reduce employee turnover 2) Increase Southwest’s 65% share of passenger traffic in its biggest 100 cities by 10% 3) Improve their design-to-market time by 5% 4) Increase product quality by 10% ) Decrease operating costs by 5% 6) Decrease f light times by 3% 7) To still be the most admired airline in America in 2010 8) Decrease the number of customer complaints per 100,000 passengers by 2% 9) Increase number of aircraft in fleet by 5% 10) Continue to effectively hedge fuel prices 7. SWOT ANALYSIS OF GMG AIRLINE * STRENGTHS * Large fleet compare to rival. * Experienced staff. * Connectivity with the reservation centers and agents is good. * Adequate infrastructure * People are loyal towards the company Backed by biggest corporation of Bangladesh * It has modern in house training capacity. * WEAKNESSES * High overheads and huge workforce resulting in lower output. * Ageing fleet. * Political/Bureaucratic interference. * On the spot decision making flexibility not there. * Lack of trained workforce (cabin crew). * Job security too high. * OPPORTUNITIES * Tourism industry is gaining momentum. * Introduction of new aircrafts on lease. * Response to some of the promotional fares (schemes) is encouraging. * Corporate are showing interest in Indian Airlines. Economic scenario is showing booming * THREATS * Emergence of new competitors. * Recent world events hitting the tourism industry badly. * Increase in the capacity of various airlines. * Falling market share of GMG Airlines to UNITED Airways. 8. Strategy and Implementation Summary GMG airline’s market presence will be achieved by heavily relying on the strategy of identifying and serving a specialized niche market well. Media executions will utilize local media, which is highly targeted and cost effective on a cost-per-impression basis. Air operations will be centralized and cost effective.
Reservations will be centralized and cost effective. Marketing will be media generated to the leisure market and combined media/direct sales generated to corporate accounts. * Marketing Strategy Marketing is targeted locally. The advantage of a local and highly identifiable market is that media selections can be limited in scope. The most effective media is expected to be outdoor billboards. Other media will be TV on highly visible programs such as news and sports. GMG will use radio, Newspapers and other print media. The product that GMG airline sell is ‘SPACE’ it may be its seats or cargo space.
This product is highly perishable and costly. Airlines earn revenue by selling this space. This means that higher the seats sold more is the revenue generated. * Promotion Strategy Promotion will be primarily outdoor advertising, radio and TV targeted at the business and leisure traveler. In addition the company will employ a public relations firm for both consumer and financial purposes. The combined amount budgeted for advertising, public relations, and reservations will get more and more importance. Because air line industry severely beleaguered by recent world wide economic meltdown.
So those to get the past momentum back we need to go all out promotional activities. Past experience with Private Jet has demonstrated that this expenditure is sufficient to launch airline service in a single hub. * Sales Strategy In order to attract the domestic and foreign traveler without the use of frequent flyer miles, the company will make direct sales contacts with the traveler through establishing many sales centers across the country. It is expected that our cost structure will be attractive to these passengers. There is special offer for mid and senior officials from many big local and multinational corporate houses.
There is probability of sinning of special MOU with these corporate houses. There are special packages for business travelers. The sales personnel and salaries required to execute the direct sales strategy are included in these projections. * HRD Initiatives As the first step free and frank discussions with a cross section of the employees were held. Top management undertook widespread tours to all stations to communicate with employees of those respective stations about the details and vision behind all major policy initiatives and to get their response to them.
Focus on training of personnel was enhanced to increase effectiveness and efficiency. A greater transparency was built into recruitment and transfer policies with a view to boosting their trust and confidence. In interactions with unions and Associations a firm but fair attitude was taken. 9. Why HR Department is important for GMG Airlines? The fast expanding GMG Airlines certainly needs a planned HR Department for managing their vast number of employees and to recruit the appropriate employee for the right job.
Their HR Department serves other purposes such as : eliminating high turnover by assuring employee satisfaction, determining the people whether they meet the performance standards or not, determining whether the training program is necessary or not and then constructing the appropriate training program, designing an attractive compensation plan, assuring equal opportunity, health and safety for all employees. * HR department of GMG: * Recruitment and selection * Training and development * Compensation But, we are emphasizing on Recruitment and selection and Training and development segment. 10. RECRUITMENT and selection ecruiting is the process by which organizations locate and attract individuals to fill job vacancies. Most organizations have a continuing need to recruit new employees to replace those who leave or are promoted, and to permit organizational growth. 11. Recruitment Objectives of GMG AIRLINES LTD. GMG AIRLINES LTD. wants to build capabilities in the core business areas to fulfill its business needs. Recruit high quality people with great adaptation skills to cope up with broad job scope over the ever-challenging environment of the business that will ensure feedback and desire for continuous improvements to achieve core values. 2. Recruitment Policy of GMG AIRLINES LTD. GMG AIRLINES LTD. sees recruitment as part of its business strategy, ensuring that the company is equipped with managers of the highest skill who can build the future of the company. It is a long-term strategic exercise towards continually improving the quality of management, with a consistent focus of future requirement. Year after year GMG AIRLINES LTD. selects trains and develops some of the brightest and most talented graduates. Their unique management development program-The Challenge Initiative – has been designed to train the very best people to a certain standard.
Graduates are therefore not recruited to fill a vacant slot but as Management Trainees are recruited over and above the company’s current manpower requirements. The company also invites talents to submit their applications for positions other than Management Trainees or entry level. 13. Recruitment and Selection Process of GMG AIRLINES LTD. The general purpose of recruitment and selection process of this company is providing a pool of potentially qualified job candidates who can make the company as successful as possible. GMG AIRLINES LTD. oes not discriminate or use irrelevant criteria such as race, gender, religion etc. It believes in equal right for everyone in every stage of the organization. It follows a well-structured and systematic selection procedure to get most suitable candidates. GMG AIRLINES LTD. encourages all persons meeting certain minimum requirements to apply for positions, which becomes available. Whenever a vacancy is created or additional manpower is required, company publishes advertisement in reputed English and Bengali daily newspapers highlighting the job description and job specification.
In addition to that, if situation demands, company goes for headhunting or more effective and time saving method. 14. IMPORTANCE OF VALIDATY OF THE TEST: Validity often refers to evidence that the test is job related in other words that performance of the test is a valid predictor of subsequent performance on the job. Since, GMG is a service related company. They have to select those people who have those skills those are required for performing the job. So, This company has to organize the recruitment test such a way that they can find the right person for this service related job.
If the test is not appropriately organized, then GMG may recruit those people who don’t have that skill or qualities that are required for this job. A selection test must above all be valid since without prove of it’s validity. There is no logical or legally permissible reason to continue using it to screen job applicant. So, validity test is a very important and necessary stage for GMG’s HR department. THE RECRUITMENT PROCESS FLOW CHART Organization Applicant Receive education and choose occupation
Vacant or new position occur Acquire employment experience Perform job analysis and plan recruiting effort Search for job opening Generate applicant pool via internal or external recruiting Method Apply for job Evaluate applicants via Selection process Impress company during selection process Impress Applicant Evaluate job and company Accept or reject job offer Make offer * Steps of Recruitment and Selection Process The following steps are followed in recruiting and selecting processes of GMG AIRLINES LTD. : 1. Screening of job application 2. Background Test . Preliminary interview 4. Written test 5. Skill test 6. Final interview 7. Medical and physical test 8. References verifications 9. Final job offer * Screening of Job Application Personnel department ranks and screens the application received in response to the advertisements against the criteria established in the job specifications and produces a shortlist of candidates. * Background Test The selected candidate will provide copies of educational and professional certificates and the company will make its own arrangements for verifying these records.
If all the records that candidates provide fulfill company’s requirements, then they are asked to attend the preliminary interview and HR department of GMG cancel those candidates’ from this recruitment process who don’t have required qualification. * Preliminary Interview Personnel Manager arranges the interview program; establish recruitment panels comprising both personnel and line representatives, and the supporting administrative arrangements. The main objective of the structured interview is to explore three main dimensions of a candidate – * Capacity, * Achievements Relationship. The usual structure is introduction, life (achievements & relationship) questions, and change question, abstraction question on topics two or more and questions from the other side of the table. This is done to ensure that all the candidates are assessed on the same scale. * Written Test A written test is taken to measure the candidate’s cognitive ability that cover general intelligence, numerical ability and verbal ability and abstract reasoning. GMG usually takes job related written test to check whether this candidate has enough knowledge and qualification. * Skill Test
GMG takes skill test for both Manager level & non-managerial level (Air hostess & Pilot). They have different test procedure for managerial and non-managerial level. Skill test is also administered for the floor level worker who needs to have necessary skills required for the production process. * Final Interview The decision to select the successful candidate is by consensus, taken at meeting of all the members of the recruitment panel and convened soon after the interviews have been conducted. If everything goes according to the company’s policy, they send those candidates to the next level of ecruitment process. * Pre-placement Medical Examination Generally the new comers who are designated as management trainees must pass a pre-employment medical examination, which will be conducted by the company doctor. All expenses incurred in this respect will be borne by the company. Any unusual health condition, which could interfere with the employee’s ability to fully perform the requirements of the position, could prevent employment. In that case a candidate may be recommended for further medical examinations at a separate clinic for verification and confirmation of his/her health status.
The cost of such examination will be on the candidate’s account and he/she will have the option to either undertake the examination or reject it. If the result of the second examination confirm that the candidate is not physically fit, which is in contrary to the requirements for employment, we discard the employment offer. * Reference Checks The selected candidate will provide contact details of at least two references. One should be a person with whom the candidate has had previous working relationship. Blood connected referees are discouraged. They also check the arrest records, bad habits and record etc. Final Job Offer Upon being declared medically fit and on receipt of satisfactory reference cheeks, a formal offer as a letter of employment will be made to the prospective candidate. Return of a signed duplicate copy at the earliest will confirm acceptance of the offer of employment. However prior to joining the company, the candidate will be required to let the company have a copy of his / her resignation acceptance letter in support of termination of his / her employment with previous employer. For the fresh ones it is not required. RECRUTING YEILD PYRAMID Accept job offer 40 Receive job offer 0 Attend second Interview 80 Invited to second Interview 250 Invited to screen Interview 400 Initial contacts 1600 * Personnel Files Immediately upon employment an employee personnel file will be opened. It will contain pre-employment correspondence, a copy of the resume submitted at the time of employment, exams paper, medical papers, assessments by the interview board and the companies signed copy of the offer letter specifying by the terms and conditions of incumbents employment.
The personnel department will maintain all personnel files. The files will be kept confidential and may be viewed only by employee’s supervisors or his / her departmental head. * Probation & Training Upon joining the company as management trainee the incumbent will be on probation or training for at least one year. For the staffs this period is at least 6 months and for workers the period is at least 3 months and maximum of 6 months. During this period employees job performance will be monitored and evaluated after every two months through progress reports.
Employees whose job performance is inadequate to meet the requirements of the position, Inspection / training period can be extended. The company reserves the right to exempt the probationary period or shortens the duration. During the probationary period the company or the employee may terminate employment, at any time without giving any prior notice. * Job Duties /Responsibilities Supervisor provides the employee a list of job duties and responsibilities. GMG AIRLINES LTD. uses a form called job profile. It is developed by a series of job questionnaire analysis of particular personnel.
Job profile is likely to change based on several factors such as changes in the organization, activities, goals and targets, economic condition, ability of the employee etc. Employee may be required to perform duties outside the job profile depending on the management requirement. The job profile is not a contract as such. Rather it is an important guideline to perform the job. Depending on the circumstances, the company reserves the right to rotate employees within the organization, assign employees to different job and transfer to any place in Bangladesh. * Training & Development
To increase productivity, efficiency, and commitment and to implement the company strategy, the following types of training is frequently conducted by GMG AIRLINES LTD. : 15. On –The- Job Training and Development On- the- job training and development consist of the following programs: * Orientation of the Employees * Apprenticeship Scheme * Internship * Supervisory Assistance * Job Rotation * Orientation of the Employees This is an orientation program with the company that helps in the socialization process of the employee. For non-managerial positions it takes three days. But for managers it is a fifteen days long program.
The concerned department conducts the departmental orientation and rest is by the personnel department. * Apprenticeship Scheme This is basically an on-the-job working experience with a skilled worker. This scheme is used in GMG AIRLINES LTD. mostly for the floor workers. * Internship GMG AIRLINES LTD. provides internship programs for fresh university graduates and later they offer jobs to some of them on the basis of performance. * Supervisory Assistance Experienced managers or supervisors are assigned to groom less experienced managers to perform their job related activities.
Most mentor-protege relationships occur spontaneously. But in GMG AIRLINES LTD. they take extra care to assign mentors to new managers. * Job Rotation Job rotation means, moving from one job assignment to another within the same organization. GMG AIRLINES LTD. effectively applies this method to increase the overall understanding of inexperienced managers. Also, this aims to reduce the monotony of the employee’s boringness to the job. Usually this job rotation happens on a very regular basis. 16. Off- the- Job Training and development Off –the- job training and development consist of the following programs: 1.
Formal Course 2. Training Center 3. Management Development Firms4. Skill Training School TRAINING SYSTEM MODEL Flow chart Assessment phase Asses Training needs organizational analysis Task analysis Individual analysis Training Phase Select Training Methods and Apply Learning Principles Identify Training objectives Conduct Training Develop Criteria Evaluating Phase Measure and Compare Training outcomes Against Criteria FEEDBACK Formal Course The purpose of this process is to make the employees more expert in their job, so that they can give their best performance.
This is basically a classroom lecture courses organized by the different training institutions or business body like FBCCI or MCCI or MMCG. For the fresh incumbents there will be some compulsory courses they have to undergo and for others this will be decided by individual needs. Training Center Some courses are organized by the company’s own training center. These are conducted by the senior managers and sometimes by the HR experts hired by the company. Floor workers are sent to skill training schools to learn different trades as the new machineries are regularly pouring in.
Depending on the participants of the training program the training will be conducted by HR staffs, co-worker such as a lead worker, supervisor, local management development firms and skill training schools. Management Development Firms These are organization’s exclusively devoted to the purpose of management development. Only the managers will be sent to take part in these programs. Disciplinary Measures GMG AIRLINES LTD. has specified certain behaviors by its employees as misconduct. Misconduct is a transgression of some established and definite practice and rules of action, where no discretion is left except what necessity may demand.
In case of any misconduct company can take any lawful action against its employees. The following omissions be treated as misconduct: * Willful insubordination or disobedience, whether alone or in combination with others’ to any lawful or reasonable order of a superior * Theft, fraud or dishonesty in connection with the employer’s business or property * Taking or giving bribes or any illegal gratification in connection with his or any other worker’s employment under the employer * Habitual absence without leave or absence without leave for more than then days * Habitual late attendance Habitual breach of any law or regulation applicable to the shop of commercial or industrial establishment * Riotous or disorderly behavior in the shop or commercial or industrial establishment, or any act subversive of discipline * Habitual negligence of neglect of work * Frequent repetition of any act or omission for which a fine may be imposed * Resorting to illegal strike of ‘go-slow’ or inciting others to resort to illegal strike or ‘go-slow’ * Falsifying, tampering with, damaging or causing loss of employer’s official records 7. summary GMG AIRLINES LTD. started its journey to become one of the leading domestic airlines in the 1984 by setting up a company headquarter in banani. Currently GMG AIRLINES LTD. Service range covers the all-domestic air travelers. Besides they want to lunch their business in the international phenomena. GMG AIRLINES LTD. practices standardized human resource management techniques in its endeavors to become the best. It follows the standard procedures of recruitment and selection process.
Steps of screening of job application, preliminary oral discussion, written test, skill test, final job interview, medical and physical test, references verifications and final job offer are practiced in GMG AIRLINES LTD.. To increase productivity, efficiency, commitment and implementation of the company strategy, GMG AIRLINES LTD. employs various on-the-job and off-the-job training and development programs. Different on-the-job training and development programs adopted by GMG AIRLINES LTD. re apprenticeship scheme, internship, supervisory assistance, and induction program and job rotation. Different off-the-job training and development programs adopted by GMG AIRLINES LTD. are formal course, training center, management development firms and skill training school. GMG AIRLINES LTD. is a name of success. Being a local organization with having a very structured human resource practices GMG AIRLINES LTD. has become a prominent organization having been awarded the best domestic airlines..
As we saw their HR practice, it can be surely deduced that a well-defined and structured HR can lead to a success, as they want to be. 18. RECOMMENDATIONS: Developing effective compensation program: * Special achievement: This is basically a special offer that should be provided by GMG Airlines to its employees who has performed his/her job better than others and has committed a nice performance to achieve the company a profit. * Insurance Facility * Medical Facilities: The health and safety is a very sensitive issue related to the employee’s working environment as well as to the top managers.
Although there may be a very nominal possibility that an accident may occur, but the top management should have the option in their mind to take care of the employees as well their safety. So, GMG Airlines should provide medical facilities to the employees and special financial help if the situation is very serious. * Retirement Remuneration: It is a special package that should be given by GMG Airlines to its employees who are going to retire or will retire.
The company should have specified prolific amount to be handed over to the retired person on his/her farewell ceremony. Other facilities: * Special offer for executive customers: GMG Airlines can provide special offer to executive and high-rank employee of well-known companies of Bangladesh. Since, Executive and high-rank employees have to visit different branches of their company situated in different district, they have to travel a lot within small spare of time. Then it will be a good idea if GMG provide them 30% discount in each flight they travel.
It will help GMG to familiarize itself as a friendly Airline company. * Development programs: GMG should provide its employees career path information and always encourage them to improve their performance level. The company should also provide effective performance feedback to its employees so that the employees can evaluate their current position and can set their career development plan. Not only that, GMG should come up with new techniques to encourage its employees to work at level that meets the company’s performance standard.
Not only that, the supervisors or higher-level officials of the company should always motivate the subordinates by giving them information on career path and also by telling them how to improve their performance to be eligible for their next promotion. References 1. Fisher, Cynthia D. , Lyle F. Schoenfeldt and James B. Shaw. Human Resource Management. 3rd ed. Boston: Houghton Mifflin Company, 1996. 2. Dessler , Gary. Human resource management. 7th ed. 3. www. gmgairlines. com 4. Brocure of GMG Airline