Thursday, April 4, 2019
How Effective Korean Air Hr Strategy Is Management Essay
How Effective Korean direct Hr Strategy Is focusing EssayThis theme discusses the details of suggested HR scorecard for Korean channelize that shows how effective HR schema is crucial for the palmy achievement of its own strategic goals with appropriate measurement dodge HR bill of f are. Development form began with a clear statement of the companys strategy and operational goals with a strategy aff propagate showing the causal linkages in the value creation process. As next dance steps of process, naturaliseforce competencies and behaviors and strategically relevant HR transcription policies and activities be identified to create HR scorecard and the process concludes with presenting suggested HR scorecard with measurement. During analyzing HR scheme and the make-up, some points to be change were emerged and these be menti 1d with recommendation. If the HR concerns atomic number 18 solved, the company will be to a greater extent resilient to face external environm ent with competitive workforce. HR circuit card helps employees know and understand the organization strategic goals, encourage them to swallow skills and responsibilities in accordance with the goals, and guide them to achieve goals with measures. To make measurement system, the cooperation of HR managers and line managers for choosing appropriate rhythmic pattern is very important. As strategies and goals are changed, the metrics and measurement system of HR Scorecard should be updated to be an effective and influential tool for strategic success.iiI. INTRODUCTION some CEOs agree with the concept People are the most important assets and the fact that the companies with more(prenominal) effective HR management systems outperform their competitors, however, HR function and influence on companys performance are difficult to measure. alike professional personism in Human resources are challenged to take a more strategic perspective and HR professionals are requested to prove Huma n resources are competitive advantages with measuring HRs performance corresponded with unified strategy and its function to the company.Effective HR measurement system shows a clear and consistent resume of how the company stand implement its strategy in the organization and how HR can contribute to companys success with discovering and solving reliable HR problems.To start with defining corporate strategy of Korean converse channel, it will be evaluated how HRM play a strategic role, produce core values and inter colligate with every level in the organization for achieving companys strategic goals using creating its own HR scorecard.II. BACKGROUND OF KOREAN air power1. Company overviewKorean walkover is an world(prenominal) conductline headquartered in Seoul, Korea. As Koreas first private airline business in 1962, it has grown into the worlds largest air load carrier and the thirteenth largest airline in the world. According to World Air Transport Statistics, Korean Air is the worlds largest commercial airline cargo operator since 20041. and was rated as the outdo airline in Asia for the third honest year, having the best crease class on routes to Asia in 2009.12. Corporate Vision and Mission retentiveness with its vision To Be a Respected Leader in the World airline Community, Korean Air is committed to provide best dish up that customers can value and trust and make a corporate culture that encourages innovation upon their mission Excellence in Flight 2).3. Major patronage ProcessesPassenger returns takes the biggest part, however, cargo service gives the company considerable profits with a reputation as the largest outside(a) air cargo carrier.Korean Air has developed catering, maintenance, and unusually for an airline, an aerospace manufacturing colloquy channel with researches and development programs for general aviation craft, war machine chooseer and satellite since 1976 3). The aerospace division generated revenues of $470 million in 2008 and employs a little over 2,500 staff.4)1) Business check over 2) (As of 2008)Unit Hundred Million Won, 1 US Dollar 1,150 Won2) Operating Results 2) (based on 2008 IATA standards)4. StructureKorean Air reorganized a corporate structure with new promotions for divisional certificate of indebtedness management in 2003. It offers tensile management for planning, budget, recruiting and other key functions to all divisions. Every head of divisions would take a firm responsibility for outcomes and be appraised based on achievement.5)2a) Employees 2) (Total 18,600, As of January 2009)b) Organization chart 2)5. Business strategyKorean Air takes improved caper strategies to implement corporate missions as below.1) Globalization To be ranked as global leadership carrier with globalized manpower,service, and leaf blade image.2) Knowledge management Encouraging learning and continuous improvement.3)E-Business Introducing more e-Commerce solutions and constructing upgrade d Intranet for raising and fast communication.6. Relationship with external entities1) International competitors Business travelers who still consider Singapore Airlines with its infantile fleets and strong branding and Cathay Pacific which has a superior hub location cod to its geographical propinquity to China as superior in service and spirit to Korean air.6)2) Global airline coalescence SkyTeam Korean Air is a founding partner in SkyTeam, the worlds second largest airline alliance of xi members and three associate carriers and expands its operations by code sharing and seat trading.7) Recently, Korean Air helped Uzbekistan skyway and Garuda Indonesia to be joined.8)3III. HR SYSTEM AND THE STRATEGIC ROLE OF HR IN KOREANAIR1. HR system of Korean Air1) Job Grade systemJob Units are separate largely as Administration, Engineering, Cockpit crew and Cain crew. 9) Administration and engineering units operate a Course system for readying and application purposes. Each unit ha s capriole grade scheme organized distinguishablely for every business organization unit and course to fortify expertise competencies.2) Development training system- teaching organizationKorean Air has developed and operated various training programs.10)Human resources development part and center take a charge of establishing training plans and integrated fostering. Professional training organization offer enriched education.As an implementation of omnipresent learning, Cyber campus is used.- Training programsThe training programs are prepared for each transaction grade and divided as guidance development training, global competency training, job skills improvement training, and organization revitalization training.43) Appraisal system 11)The appraisal system is based on measuring a contribution to company and individual work competency including performance, job aptitude and leadership. As Total analysis with freehanded feedback, they use appraised entropy for granting derived function rewards or training and development.4) Compensation and welfare system 12)Korean Air provide incentives, benefits (housing, medical and education support and culture leisure benefits) and favors such as discounted tickets and easier ticket purchase as a permit of being with airline.2. The Strategic Role of HR in Korean AirThe colossal term strategies of Korean Air can be defined as follows- To be ranked among top 10 external passenger airlines Developing new routes and reinforcing SkyTeam network Heighten global image awareness with excellent quality service and culture sponsorship1) Korean Air will re yield the route to Saint Petersburg and launch Irkutsk, Russia this year.When Tunxi international airport in China opens this March, a route will be put on Huang Shan line. It is plotted to expand a route network to Central Asia, Europe and Africa and extend the number of destination cities to one hundred forty cities by 2019 through SkyTeam. To attract more custo mers, more investment for ordering A380 Airbus fleets and changing new highlife and upgraded seats for all classes is drawn from revenue. 13)2) As global cultural sponsorship, Korean Air tries to cultivate different type of brand image. Korean Air sponsored the multimedia guide at the Louvre Museum in capital of France and Russias State Hermitage Museum in St. Petersburg in 2008. It is spread out to the British Museums new set of handheld multimedia Guides.14)5- To make China its biggest MarketKorean air has strategic relationships with China Airlines and China southerly Airlines and makes an effort to expand it more with other Chinese airlines.Routes to Guangzhou, Dalian, Weihai, Yantai, Changsha and Shenzhen were added and its route network has covered 19 Chinese cities with more than 150 flights.It is one of the most expansive networks in the China among non-Chinese carriers and chosen as The best foreign airline in China. 15)Korean Air established a Chinese-only counter China declaim in Incheon International Airport and began its operation to enhance convenience for a growing number of Chinese tourists.16)For brand awareness, outdoor billboards in Kunming, Wuhan, and Zhengzhou were built. Book donations to poverty schools and inviting children in earthquake damaged cities to Jeju island are one of its social responsibility activities in China.17)- To be a leading air cargo carrierKorean air made a contract to create Central Asian logistics hub with Uzbekistan government and Navoi airport in 2008 with cooperation from Hanjin Transportation Co., Ltd. (ground transport) and Korea Airport Service (airport ground handling). 18) By 2013, constructing an airport infrastructure and attracting investments from global logistics companies will be kept up. Whole project is planned to be finished by 2018.In China, cargo last(a) in Tianjin will be completed until the end of 2010 for activating the mart.19)HR Strategic roles for these major strategies completely stra tegies are global related and to achieve these goals, it is necessary to recruit manpower with international competency and train its employees with various and differential programs per position as capacious term system.1. RecruitingAs the demand of international professional staffs for conferences with SkyTeam and developing Chinese market is increased, fluent slope speakers, China regional experts and MBAs with proper educational backgrounds are highly needed to improve business competiveness. Common recruitment is by internet, headhunters, employment agencies, internal sources and college recruiting.2. Training Korean air operates Global online education system around 50 branches in the world. The systems handle the active skills of reservation, ticketing, customer service, transportation, maintenance, and language study. Yet, it is needed to be more practical and wide ranged for employees to solve their problems encountered at work.1) extraneous languages New flight attendan ts take 4-week training included correcting pronunciation and aviation English and Japanese at cabin crew training center. Every employee depends on online education system afterwards.62) Management association Customized MBA courses developed with Seoul National University for executives are offered. Manager level complete AMS courses which cover specialized experience of air transportation industry and management theories.20)3) Overseas regional specialists To enlarge global network, area specialists are indispensable. 1 year of Overseas services- short term international assignment for senior managers and managers is executed to point them to foreign branches for experiencing local languages, cultures and operating systems. New employees go to Mongolia as volunteering activities to plant trees for desertification for brand image and giving opportunities to look around the Mongolia as a next market.3. Corporate cultureKorean air has amend hierarchical culture which caused seri ous accidents as creating a central clearinghouse for monitoring and investigating safety reports and analyze findings so that all divisions are ordered to share and coordinate data.In 2009, Koreas Ministry of Gender Equality gestural an agreement with Korean Air to promote a women-friendly corporate culture and support career possibilities for women. 21)7IV. HR SCORECARD OF KOREAN AIRStep 1 Define Business strategy21C leading global airline with globalized human resources, services, and brand image To be ranked among top 10 international passenger airlines To make China its biggest Market Leading air cargo carrierStep 2 Value chains of each divisionStep 3 Outline a strategy map and identify the strategically required organizationalOutcomesStrategy map8Outcomes1) More customers choose Korean air because of excellent service and flight convenience.2) Korean air will leap to global brand not restricted to an airline in Korea.3) Empowerment and squadwork will help to be a learn orga nization.4) Improved revenue is expected owing to transport increase of passengers and cargosStep 4 make the inevitable Workforce Competencies and Behaviors Speaking good level of English, Chinese or other languages to deal with foreign customers and doing business with international companies Fast operation based on companionship and empowerment immediate feedback, open communication Service-oriented and committed employees for attracting and retaining customers Top management who educated with efficient and practical management knowledge Continuous handy maintenance and engineering manpower for safety Creating a powerful corporate brand with full fellow feeling competitors and the future direction of company.22) Deepened knowledge about other countries to start or have projects with. Professional service training force for satisfying every needs of passenger serviceStep 5 Identify the Strategically Relevant HR system Policies and Activities1. Inspiring allegiance to the comp any and raising morale1) context up firm policies of compensation and benefits for motivationSpecify pay per performance, rewards, recognition, retirement, family friendly benefits, time off with pay, pregnancy leave and safety health protection programs.2) Rewarding individuals and teams, team development3) Encouraging organizational commitment, job satisfaction and job security2. Professional training schemes for cabin and customer servicesReinforcing on-line and OJT programs, participation in related seminars of experts,comparison with those of competitors, refined grooming and etiquettes.3. Provide segmented and enriched education for required job skills and the knowledgeimprovement of all level from in or outside. University-industry collaboration for academic programs Arrangement of related reputable institutes to short term education Job rotation for internal training by superiors increase overseas dispatch for studying languages and cultures Support to study abroad for hi ghly performed employees.4. Recruit right employees involve candidates with language proficiency, proper educational backgrounds and global experiences under conditions of detailed job description and specification for reducing training costs and fast adaptation to the organization.9Step 6 Design the HR Scorecard Measurement formApplied assessing measures for HR activities about workforce competencies and HR systems for HR scorecard are as followsAssessing HR system 24)10Step 7 Periodically Evaluate the Measurement SystemIt is hard to manage all of HR systems with interrelated metrics as the organization is bigger and its business is diversified.Currently Balanced scorecard, a computerized model, help top management track and monitor HR data with marketing and finance metrics for companys strategic success. With establishing customized software system (refer to http//www.activestrategy.com or http//senalosa.com), it is expected to have improved effectiveness for updating and evalua ting HR information periodically.Yet, it should be implemented on the premise that creating Scorecard team to admit and validate measures and collecting data with cooperation of all departments.11V. Conclusions and Recommendations1. ConclusionsBelow suggested HR scorecard process of Korean Air shows how the scorecard measures the organizational outcomes, workforce competencies and behaviors and HR system policies and activities aimed at implementing the corporate strategy 21C leading global airline with globalized human resources, services, and brand image.Basic themes are 1. Create service-oriented workforce, 2. Provide enriched training for global competency, and 3.Raise morale and create positive corporate culture.For example, the theme Create service-oriented workforce is implemented from Recruiting and selection. The metrics for recruiting can be chosen among No. of applicants per sources No. qualified applicant/position, proportion of employees selected based on validated se lection methods. After selecting, the step would be moved to Training and appraisal with related metrics. Outcomes similarly can be measured upon 3 major tiers of customer responses, international corporate image, and inner communication derived from the strategy.12With metrics for each process combined with strategic goals, HR performances can be objectively and quantitatively. It is easier to see and check from the start to the final purpose of company increased revenue from the point of view of HR.The scorecards will be a more efficient tool to evaluate HR system when proper measures are added, refined and connected as the organizations strategic goals are achieved and developed.Besides, periodically revising the HR Scorecard help HR managers assess how well it supports the organizations strategy implement efforts.2. RecommendationsDespite aggressive strategies to grow, Korean air hasnt been identified as distinctive global airline. Among business travelers who still consider Si ngapore Airlines and Cathay Pacific China as superior in service and quality to Korean air.HR should play a pivotal role for reinforcing employee development one of an organizations competitive advantages more than ever because the competencies will be compulsive as Human resources with definite strategic goals ultimately.1) Training Foreign languages and academic learningCompany puts a huge energy to China market so speaking Chinese is another challenge. Furthermore their English proficiency is still rather below compared with Singapore airline, Cathay Pacific and Thai Airways as Asian airlines. It is important to create competitive environment with rewards or punishments through taking a test regularly and prepare for efficient language learning system with qualified teachers and teaching methods. Speaking languages with proper level is not accomplished within short period so it should be planned as long term schedule or to save relative costs, hiring international manpower at the first step should be considered.2) Corporate cultureChronic top down and secretive management style due to primogeniture and reluctance to outsiders is one of organizational factors in Korean Air to be improved.The solution of safety concerns and change magnitude customer expectation of broad and excellent services is satisfying employees as internal customers.Research has long shown that accidents and poor service quality are rooted primarily in social aspects not engineering science such as inferior management, decision making, teamwork, employee motivation or communication, can translate into loss of customers, market share, organization assets and, above of all, life. 26)High quality service is principal for differentiating among airlines and influential in customer choice. HR need to check whether the company has positive corporate culture encourages innovation, improvement and responsibility of each employee. Supervisors open door policy for communication, treating emplo yees with respect and dignity can be a start.3) Appraisal and compensation just compensation with appraisal will strengthen the organization.Regular in-house training for the system by HR department will be helpful for understanding and participation.Compensation should have its own schemes to prevent further grievances. paleness of salaries and promotions should be kept because pay equity is connected to job satisfaction.13These three HR factors should be complemented with validated measures and implemented into HR scorecard soon for achieving strategies efficiently. HR managers need to cooperate with line managers to select effective measures for evaluating required HR activities and revise HR scorecard as the strategies are changed.It is important to have a comprehensive human resources measurement policy which enables to collect consistent information relevant with general business strategy. With a solid HR metrics program, HR management can make business decisions that are bas ed on facts and use the exact figures to support company performance.*Word count 2,933.14Notes1) International Air Transport Association (2008), World Air Transport Statistics. 52nd ed. Canada IATA. Section 4 Airline ranking 2007. p.95-96.2) http//www.koreanair.com/local/sg/gd/eng/au/ci/eng_au_ci_ov.jsp, accessed Feb 15, 2010.3) http//www.globalsecurity.org/military/world/rok/kal.htm, accessed Feb 15, 2010.4) http//www.flightglobal.com/articles/2009/06/18/328529/interview-korean-air-chief-executive-cho- yang-ho.html, accessed Feb 16, 2010.5) http//www.airportal.co.kr/life/ taradiddle/lee/LfleewardGu010.html, accessed Feb 16, 2010.6)http//www.usatoday.com/money/companies/management/profile/2009-08-23-travel-airlines-korea_N.htm, accessed Feb 16, 2010.7) http//www.skyunionvirtual.co.cc/about/carriers/koreanair.html, accessed Feb 16, 2010.8) http//www.thefreelibrary.com/Indonesia%3a+Korean+Air+expands+codeshare+with+Garuda.-a0218567145, accessed Feb 16, 20109) http//recruit.koreanair.c o.kr/ personalized/personal_b.asp, accessed Feb 15, 2010.10) http//recruit.koreanair.co.kr/personal/personal_d.asp, accessed Feb 15, 2010.11) http//recruit.koreanair.co.kr/personal/personal_e.asp, accessed Feb 15, 2010.12) http//recruit.koreanair.co.kr/personal/personal_f.asp, accessed Feb 15, 2010.13)http//www.etimes.net/service/etimes_2007/ShellView.asp?LinkID=6001ArticleID=201002041 8164103144, accessed Feb 17, 2010, The replacements will be in 32 B777s and A330s, which have recently been furnished with Kosmo Suites (First Class), prestige Sleeper (Prestige Class) and New Economy (Economy Class) seats.14) http//www.chosun.com/site/data/html_dir/2009/02/17/2009021700672.html, accessed Feb 17,2010.15) http//www.highbeam.com/doc/1P1-136897605.html, accessed Feb 18, 2010.16)http//news.mk.co.kr/english/newsRead.php?rss=Ysc=30800011year=2009no=461130,Korean Air Puts Effort to Attract 1.3 billion Chinese Tourists, accessed Feb 18, 2010.17) http//www.newswire.co.kr/newsRead.php?no=452353 lmv=A02 , Korean air is the best foreign airline in China, accessed Feb 19, 2010.18) http//www.airliners.net/aviation-forums/general_aviation/read.main/4128479/, Korean Air Builds A Logistics Hub In Central Asia, accessed Feb 19, 2010.19) http//www.sgtusa.com/detail.php?number=7280thread=22r07, Interview with COO Lee Jonghee, accessed Feb 19, 2010.20) http//www.hankyung.com/news/app/newsview.php?type=2aid=2009110446921nid=910sid=0001, accessed Feb 19, 2010.21) http//joongangdaily.joins.com/article/view.asp?aid=2900768 On board, gender equality still up in the air,accessed Feb 19, 201022) Steven Howard, Corporate Image Management A Marketing Discipline for the 21st Century23) Gary Dessler (2008), Human resourcefulness Management 11th ed. Singapore Prentice Hall. Chapter 2 Strategic HRM and the HR scorecard. p.6224) Gary Dessler (2008), Human Resource Management 11th ed. Singapore Prentice Hall. Chapter 2 Strategic HRM and the HR scorecard. p.6725) Brian E. Becker, Mark A. Huselid, D ave Ulrich (2001). The scorecard Linking people, strategy, and performance. Boston Harvard Business School Press. p.66.26) Steven H. Appelbaum, Brenda M. Fewster (2003). Human resource management strategy in the global airline industry A focus on Organizational development. Equal opportunities International. Vol. 21. No.7. The International Civil Aviation Organisation (ICAO). p.70.