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Hr Practice
Global Aviation Human Resource
Management: Contemporary
Compensation and Benefits Practices by Steven H. Appelbaum and Brenda M. Fewster
Abstract
The commercial airline is an extremely competitive, safety-sensitive, high technology service industry. People, employees and customers, not products and machines, must be the arena of an organisation’s core competence.
The implications are vast and pervasive affecting no less than the organisation’s structure, strategy, culture, and numerous operational activities.
Completed by 13 respondents (executives), this audit presents a series of select findings of a human resource management audit carried out in 2001-2 and contains extensive data on airlines from nine countries from around the globe. The conclusion drawn from these three bodies of work is that, with the exception of a handful of high performing airlines, the industry as a whole continues to function as per a traditional, top-down, highly divisionalised, industrial model of operations and governance. This model is manifestly inappropriate in such a highly knowledge-based service market as the airline industry. HRM expertise in general and compensation and benefits in particular are required now, more than ever, to spearhead the strategic development of a customer-centric, learning-oriented workforce that is capable of adapting quickly to the strategic goals and change imperatives facing the airline industry.

Biographical Notes
Dr. Steven H. Appelbaum

holds the Concordia
University Research
Chair in Organizational
Development and
Professor of
Management, John
Molson School of
Business, Concordia
University, 1455 de
Maisonneuve Blvd. West,
Bureau GM 503-9,
Montreal, Quebec,
Canada H3G 1M8.
Brenda M. Fewster, MA,
MBA, Webster Library,
Concordia University,
1455 de Maisonneuve
Blvd. West Montreal,
Quebec, Canada H3G
1M8.

Introduction
Strategy in the aviation and airline industries is premised upon two fundamental drivers



References: Management “American Airlines Sharing Wealth with Employees”, (1997),Journal of “American Airlines Joins Trend by Offering Computers to Workers”, (2000), Dallas Morning News, March 2, Business and Industry, Responsive Appelbaum, S.H.(2001), Course Syllabus, “Human Resource Management”, Course designation number, AMBA624. Spring, John Molson School of Business, Concordia University, Montreal. Cook, J. (2000), “My Soul, It’s the New Company Store: More than Coffee Perks in Tight Job Market”, Seattle Post-Intelligencer, March 8, LexisNexis, Reed Elsevier. “Compensation & Benefits News”, (2000), HR Focus, May, Lexis-Nexis, Reed Elsevier Czaplewski, A. J., Fersuon, J. M. & Milliman, J. F. (2001), “Southwest Airlines: How Internal Marketing Pilots Success”, MM, September/October, pp.14-17 Eaton, J. (2001), Globalization and Human Resource in the Airline Industry, 2nd ed. Ashgate Publishing Ltd., Aldershot, UK. “Employeesavings.com to Outfit the Spiegel Group’s Employees with Web-based Work/Life Solutions”, (2000), Business Wire, June 20, Falter, J. (2000), The Company as Family: Perceived Strengths of Duncan Aviation, PhD Dissertation, University of Nebraska, Lincoln Nebraska. Flaum, D. (2002), “Memphis Companies Limit Sale of Stock, Too: But Employees Get Choices if Not Shares”, The Commercial Appeal, January 27, C1, Lexis-Nexis, Reed Elsevier. Good, W. A., (1999), Intellectual Capital and Wealth Creation: A Case Study of Total Quality Management at a Large Cargo Aircraft Operator, Holloway, S. (1998), Changing Planes: A Strategic Management Perspective on an Industry in Transition: Volume One: Situation Analysis. Aldershot: Ashgate Publishing Ltd. Johnson, A.H. (2001), “Workbrain Automates Employee Management: Its Software Tracks Time and Attendance and Automates Human Resources Activity”, Computerworld, August 6, Lexis-Nexis, Reed Elsevier. “Management Needs to Focus on Effective Employee Rewards”, (2001), Commuter/Regional Airline News, June 11, pp McKinney, K. (2001), “Same-Sex Insurance Offered”, The Pantagraph, August 31, p.A1. (1996), Gazette Telegraph, 29 May, Industry and Business, Responsive Database Services Inc. Olson, S. (2001), “Cinergy Employees Embrace PC Benefit: 80 Percent Take Perk, Receive Free Computers”, August 20, p.28A, Lexis-Nexis, Reed O’Toole, K. (1999), “The King of Low-Cost”, Airline Business, LexisNexis, Reed Elsevier. “PeoplePC Selected by Cinergy Corp. to Offer Employees Affordable Home Computer and Internet Access”, (2001), Business Wire, March 27, Lexis-Nexis, Reed Elsevier. Pinkham, R. (2001), “Bringing Delta Home”, Airline Business, March, Lexis-Nexis, Reed Elsevier. Seal, J. & Kleiner, B. H. (1999), “Managing Human Behavior in the Airline Industry”, Management Research News, vol “Tenet Names Anthony L. Austin to New Position of Senior Vice President, Human Resources Operations”, (2001), Business Wire, September 26, Thomas, M. L. (1997), A Portfolio Management Approach to Strategic Airline Planning: An Exploratory Investigative Study on Services Management, European University Studies, Series V-Economics and Management, Peter Lang AG, Berne. “US Airway to Give Benefits to Domestic Partners”, (1999), Pittsburgh Post-Gazette, August 10, Business and Industry

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