MGT351 GMG

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ACKNOWLEDGEMENT

We did our project on Human Resource Management – ‘How better Could


We manage the Resource – Human’ on the company – GMG Airlines.

It was really a nice experience to do the project. While we’re passing through
all the steps that is, collecting, sorting, analyzing, organizing the relevant data and
trying to make valid and reliable inferences to figure out problems related to the
human resource management in the existing system of the company and to derive
the solution on the basis of the collected information, we found us to be grateful to
them who helped us a lot to make it happen.

So, first of all, our gratitude along with thanks goes to The Almighty Allah for
keeping everything on the right track. Then, we would like to thank our honorable
faculty Mr. Syed Kenan Ibrahim Bakht for his loyal support. We are also grateful to
the DGM of GMG Mr. Jilanee and all the respondents at GMG for their cooperation
and kindness to spend their precious time for us and of course, we’d thank all of our
fellow classmates and last of all, we should appreciate our team dedication and the
spirit for making us able to finish the project just by the time. At last, special thanks,
gratefully and lovingly offered to our parents, for their overall steadfast and loyal
support during the preparation of this project.

Finally, we want to talk about our limitations that we had to accept during the
completion of the Project. The major limitation was that we could not talk to each and
every employee of GMG, spending there the whole day, for the time inconvenience.
So, we had to completely rely on the information provided by the employees who
had been chosen by random sampling and so the information provided by them
might not be completely valid or reliable. Besides this, the employees we surveyed
might not be the representative-ones. So, there might be some error in the data that
we collected. However, we think, we put our best possible effort to make the solution
more reliable and valid.
Thank You

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EXECUTIVE SUMMARY

After studying the theoretical concepts of a topic, understanding its practical


implications and applications is the next step in the learning process. This
assignment on the human resource management of a business, which is fully in the
organizational context, is a part of that next step. In the process of writing this report,
we came to know about different aspects of management, especially the human
resource management techniques of the business as well as the company we have
explored with the light of our little knowledge.

We have chosen the company – GMG Airlines to complete our project on.
Because it was really easy for us to have access to all the required data of that
company and moreover, from our point of view, as it is operating airline industry, it is
totally service oriented and thus there would be more opportunity to deal with a
broad array of the human resource and of course, of various characteristics.
Anyway, In the report we are going to present, we tried our best to make relevant,
timely and accurate inferences about the real life situation of the company. Also, we
discussed the findings along with the theories, which might reveal the similarities and
the contrast, as well, between theories in the book and practices in the real life.
Though our main focus was on human resource management, other related topics
like, a brief overview on the different phases and the aspects of the company were
discussed in short to make the report lively. We also took help of some statistical
tools and techniques to analyze the data we have collected from the employee
survey.

Whatever we did regarding to this report, we did only to figure out the existing
situation of GMG Airlines in terms of human resource management and then from
the illustration, we tried to find out that whether the company is facing any type of
problem in the real situation that might make the obstacle in getting hold of better
developed employees to serve it. In fact, we found problems and thus, finally, we
made some inferences regarding the problems and searched for the solution with the
little knowledge we gained so far, to make a proposal to GMG Airlines with an honest

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objective of helping them out and we are somewhat confident that this report is going
to help GMG, at least to some extent.

On behalf of TSCG,

-------------------------------
(S M Shahed)
President,
TS Group of Industries

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Contents
Title Page No.

1.0 Project Introduction 1


1.1 Few Words 1
1.2 The Topic 3
1.3 The Company 5

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A FEW WORDS

Business is defined as the exchange of resources for profit. It is quite an


expanded network of activities. There are different tools for operating a business,
which are important for the pursuit of its various individual and organizational
objectives. The most important of these tools, is Management.

Management is the process of coordinating resources to meet an objective. It


has different levels and consists of several managerial roles. This process includes
the application of planning, organizing, staffing, directing, and controlling functions in
the most effective manner possible. Skillful utilization of these basic managerial
functions ensures the accomplishment of organizational objectives.

Business, in this uncertain world, today is run by the strength of management.


In an effective management, managers must coordinate the work activities to
achieve organizational goals and objectives. There are certain basic principles of
coordination that can be applied to virtually every type of organization, irrespective of
its size or purpose. Whenever people work together to achieve a goal, an individual
or a specific group make the decisions about who will do what, when they will do it
and what resources will be used. All of these are possible under a proper
management. Out of all the topics for our report, we found management most
interesting and thought provoking.

In management development, human resource management plays a vital role,


especially in service-oriented business. Whatever automation is done it always
seeks for some personnel who are highly skilled in their relative job and of course, in
interpersonal skills as well. But most of the organizations, even the top ones, have
found that always there are some problems regarding the management of this vital
resource – human. So, this report on the topic –

“how better could we MANAGE the RESOURCE; of course, the HUMAN”

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completely focuses on the human resource management, though some other
management and relevant analytical theories, methodology and practices have also
been both discussed and applied in the process for completeness and clarity.

When we came to choosing an organization, we chose GMG Airlines, the


leading & only Private Domestic Airline that has become a household name within 3
years of its operations in the country and there is sufficient reason behind this choice
that we will be discussing somewhere later.

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THE TOPIC

Looking at the topic –


“how better could we MANAGE the RESOURCE; of course, the HUMAN”
anyone having a bit knowledge of HRM, will say that how could it be possible to
make a report on such a ‘horrible’ topic within this short period of time – about 10 to
15 days. We say ‘horrible’, because it’s not a matter of joke to study all the functions
that HRM performs and find out problems along with solutions or even to make any
comment on that. However, we did it somehow, may be not that in depth.

Actually, we believe that all the functions of HRM are pretty much interrelated
and it won’t be wise to try to explain separately. Let’s illustrate this belief with an
example. Suppose, we chose only a single function of HRM such as, selection. As
usual, we will collect data and perform analysis on that to find out the existing
situation. If we find that there is any problem in selection process that is causing
some obstacles in achieving the overall objective of the organization as a whole.
Then we may propose a better selection process that will eliminate the existing
problem in selection process. But, is it enough? We don’t think that it should be ‘yes’.
We don’t think that it’s going to help the organization in any way, until the analysis is
performed on all the HRM functions and the better layout is coordinated among the
functions. Selection process might be excellent. But, without a proper job analysis,
recruitment process or even orientation & training, how can a company expect that
only a better-developed selection process will help the company achieve the
objective? No way!!! That’s why, we believe that human resource functions should
be considered altogether and that’s how, we may find some way to help the
company really out.

So, considering the above-discussed facts, we decided to make our project on


the topic –
“how better could we MANAGE the RESOURCE; of course, the HUMAN”
though it seemed to be a much hard-working job to do.
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The topic, first, emphasizes on the ‘Management’, as it is the entity in an
organization that lead it ahead. Then comes the ‘Resource’, which is synonymous to
the ‘capital’ in the organizational context and we all know that without capital, no
investment is possible, let alone the term ‘profit’. After that the topic specifies exactly
which resource we are going to deal with. Yes, it is ‘Human’, one of the most
important resource without which no economic activity can be performed. Everybody
will agree with this statement, if we use the synonym ‘labor’ for the ‘human’ and
according to the economist, it is one of the three factors that affect all the economic
activity. So, this discussion gives an impression that we are going to deal with
something very critical for any company and of course, for the whole economy as
well. In this regard, our topic is just the topic that it should have been.

Still, one lacking might be found in the topic that we did not mention the name
of the company that we are going to explore, though the company-name is not that
important to be stated there. Anyway, the company is GMG Airlines, which is the
premiere private airline in Bangladesh. A brief discussion about GMG is given in the
next section that will help us someway to have some knowledge about the overall
situation of the company.

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THE TOPIC

GMG Airlines Ltd. - a part of the well-established & reputed GMG Group, is
Bangladesh's leading & only Private Domestic Airline 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.

First, we collected enough information about the different aspects of GMG


Airlines Ltd. so that, we could clarify the knowledge about the overall situation of the
company. From the light of that information, a brief overview of GMG Airlines Ltd. is
given here:

AIRCRAFTS:
Equipped with 3 modern state of the art Dash 8 series aircrafts manufactured
by Bombardier of Canada, GMG connects daily Dhaka city - the capital of
Bangladesh to 6 other 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’s Bazar. GMG Airlines operates
32 flights everyday at an average of one landing / take off every half an hour.

VALUE ADDED SERVICE:


GMG offers Air Conditioned Coach Service for Khulna passengers bound to
Dhaka 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 - First Class All the Way.

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INTERLINE PARTNERS:
GMG Airlines is a member partner in Multilateral Interline Traffic Agreement. It
is also a member of IATA Clearing House facilitating a smooth Settlement of revenue
transactions. 55GMG Airline's interline agreement with reputed international airlines
has ensured prompt & convenient countrywide connections. GMG Airlines is in
interline agreement with many international airlines including British Airways,
Emirates, Gulf Air, Kuwait Airways and Singapore Airlines to mention a few, to
provide trouble free connecting fights to and from abroad.

FIRST CLASS ALL THE WAY:


A successful company is one that customers choose first. And customers
choose that company first which is committed to the four basic pillars - highest
priorities of safety, reliability, convenience and on time performance. Its goal is to be
the First Choice of customers on the strength of personal service and world-class
performance. The mission of GMG Airlines is dedication to the highest quality of
Customer Service delivered with a sense of warmth, friendliness, individual pride and
company spirit.
At GMG Airlines its mission statement has always governed the way it
conducts its business. It highlights the desire to serve its customers and gives
directions when it has to make service related decisions. Since inception GMG
Airlines is working steadily and slowly to evolve into a world-class international
airline. Taking a true service oriented approach right from the moment a customer
steps in for ticketing needs in any of its offices, till the time the journey is complete -
its striving to make a difference at all points. Exemplary service and innovative
thinking pervade all aspects of a flight with GMG Airlines. It is its sincerest effort to
seek growth through selfless service to all its customers at all the stages - First Class
All The Way.

FIRST CLASS COMFORT:

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Flying with GMG is a truly special experience. Its aircrafts are designed with
your comfort in mind. During the course of your journey you will enjoy the finest in
facilities together with the warm and impeccable hospitality for which GMG Airlines is
known the world over.

GMG Airlines has its own exclusive lounges at major Airports. The decor
reflects a combination of Bangladesh design and contemporary style. The entire
lounge is elegantly designed with carefully planned flow areas, interspersed with
comfortable seating arrangements and accessible very own complementary
hospitality zones ensuring you total comfort. No wonder a passenger once remarked
"These are an oasis of beauty & tranquility where passengers can unwind."

About GMG’s luxury it says, “From the moment you sink into the rich leather
seat, you know that it’s an extraordinary aircraft. Stretch out and relax throughout
your journey in its wide & spacious seats. Seats are placed two abreast similar to
first class in other airlines - every seat is an aisle or a window seat, all assuring you
superior comfort. You will have your own reading lamp, which will not disturb your
neighbor. The in-flight service is truly sumptuous. While the friendly, efficient and yet
always discreet cabin attendants take care of your needs, there is a choice of superb
delicious snacks for you.”

Services for special needs - for handicapped and infirm passengers are also
available. Wheelchairs & mobility aids are provided to special need customers and
extra special attentions ensured at each step of the journey including checking in,
boarding and deplaning, proceeding to public arrival areas & retrieving luggage - all
ensuring a journey with dignity and in comfort. It also takes care of unaccompanied
minors ensuring that your child arrives safely at his or her destination escorted and
supervised by GMG Airlines staff. At the destination, its airport staff will ask the
person meeting the child for proof of identification…ensuring your peace of mind -
First Class All The Way

FIRST CLASS RELIABLETY:

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GMG Airlines is building a business that reflects solidity rather than
flamboyance. Reliability is a key factor determining the future of an airline and
people at GMG Airlines have no false illusions about it. Not only are they setting new
quality standards in every aspect of the airlines operations and services, they are
doing so with a pragmatism that is a refreshing change from the 'throw money at the
problem' method to the old school method 'they want to progress slowly, strongly,
efficiently by building a solid business delivering quality without any compromises
whatsoever.'

GMG's fleet of aircrafts uses advanced technology including Doppler radar


which allows pilots to determine air currents within cloud formations and an active
noise reduction system which ensures a quieter, more peaceful ride ensuring high
level of dependability, comfort, reliability and versatility.
At GMG, it is considered a definite advantage to have advanced training facilities
available for all its crewmembers.

All the Pilots are trained at Flight Safety Academy in Toronto Canada and
SAS Academy in Stockholm, Sweden. In addition, all pilots frequently undergo
regular extensive training on advanced flight simulators at SAS Academy in
Stockholm. Most of the flight simulator training is of a level D category, enabling so-
called Zero Flight Time Training.

These flight simulators are equipped with full motion system, high quality
daylight visual system and CRMDS video (Crew Resource Management Debriefing
System) ensuring that training & checking in the simulators can be carried out at a
very high degree of realism. However, GMG Airlines also maintains the practice of
giving all pilots real aircraft training. All GMG's flight crew training and control is
carried out under the direction of GMG's Director of Flight Operations by Captains
who are rated to carry out check and training on all GMG's pilots - First Class All the
Way.

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FIRST CLASS SERVICE:
GMG does its utmost to schedule services to offer business people optimum
time at their destination, be it a regional center or the capital city. And, if your travel
is for pleasure, there is a further promise that it wants to keep. GMG continually
strive to provide a high level of service to our customers in keeping with its long
standing reputation and pioneering origins. In strengthening the company to keep
pace with changing environment it has found a harmonious mix with exciting new
technology and respected 'country tradition'.

Right from the time one makes a reservation and then at each step of the
journey including checking in, boarding and deplaning, proceeding to public arrival
areas & retrieving luggage - extra special attention is ensured at each step all
ensuring a journey with dignity and in comfort. Providing the best reservation, check-
in and transfer facilities, equipping our fleet with the best aircraft and fitting them out
with the best configuration and standards of comfort, offering best in-flight catering &
service and ensuring the best levels of punctuality and frequency on the routes we
fly and employing the best people in the industry are a few to name.

GMG believes that there is no relationship in business more important than


that between a company and its customers. Customers are its first priority. As a
result of its high standards, it has built long term relationships and an excellent
reputation for professional service, product knowledge and commitment to complete
customer satisfaction. It is GMG’s goal to continue to improve its services to you,
their valued customers. Its vision statement lays out the course for their development
over the next decade. Its visible manifestation will be a new look that will be unveiled
in the coming years. Some things will remain the same, some will change, however:
its commitment to excellence and superior service that has spurred our growth will
remain the same - First Class All The Way.

FIRST CLASS SAFETY:


GMG always assures excellence in engineering and operations. Apart from its
staff, an airline is only as good as its aircraft and its aircraft are only as good as the

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level of service and maintenance they receive. GMG's commitment in this area is
second to none. As a result, GMG has achieved 99.5% dispatch reliability with its
fleet - one of the highest in the world.

All maintenance checks & services are carried out by GMG's own engineering
staff consisting of more than 60 engineers including many expatriates. Their
collective wealth of experience in aviation maintenance coupled with advanced
diagnostic equipment with CRT readouts & printouts for precise checks has ensured
GMG Airlines position at the leading edge of technological development and a
source of standards in engineering excellence in the aviation industry.

GMG Airlines Engineering Department is committed to deliver products &


services with uncompromising safety and the highest quality, together with
sustainable environment friendly standards. Strict guidelines are adhered to ensure
that the products & services delivered meet all Aviation Authority requirements &
regulations and comply with relevant environment laws and at the same time fulfilling
the wishes & expectations of the customers.
At GMG’s Engineering Department, safety, quality and environmental care are
the most essential qualities of the activities, products & services that all personnel
staff shall consistently strive to maintain. It is the responsibility of all personnel to
take immediate action to eliminate any factors, which might compromise these
standards. GMG’s commitment extends from the management to all personnel.
Major component & airframe checks and overhauls are carried out by GMG
Engineers in consultation with aircraft manufacturers. GMG Airlines Engineering
Department is not only authorized for line checks but also for Heavy Maintenance 'C'
checks. The maintenance of hydro-mechanical, computer, electronic and avionics
components is one of the biggest in an airline and at GMG comprehensive facility of
international standards for attending to the above are available in-house

Refurbishment and a world's best practice approach to overhaul periods


means GMG has one of the youngest and best maintained aircraft fleets, as it
confirms – First Class All The Way.

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THE APPROACH

Basically, we analyzed the current situation of the company in terms of


proper management of the human resources and tried to find out whether there is
any real life problem regarding this resource. In fact, there were some major
problems regarding the management of human resource and thus we tried our level
best to find out the solutions with an objective of helping the company out.

To complete this job, we had to perform some analyses that required some
consulting activities like, to know about the overall mission, vision, strategy and
objectives of the company; to interview the employees of all the departments and
across the levels; consult previous records of employee attendance, service
duration, vacation, leave, turnover etc; collect other information about the
organizational structure, existence of the human resource planning, appropriation of
the job analysis, recruitment & selection procedure, appraisal system, compensation
package, orientation & training, motivation techniques, career planning, development
of HRM and the organization, health and safety care for employees.

To perform everything in a well manner, first, we arranged all the tasks


sequentially and then defined how to do those tasks. To know about the mission,
vision and objectives of the company, we tried to interview the managing director of
GMG. But we did not get in touch with him. So we interviewed the deputy-managing
director Mr. Gilanee and we found, that was enough to gather all the strategic and
other relevant information about GMG. It was a nice semi structured oral interview of
three sessions. Then our intention was to interview the employees. We understood
that it wouldn’t be wise to conduct an interview with the employees, as it would be so
much time consuming and there would be problem in standardizing and analyzing
the collected data. So, we went for a questionnaire containing 20 questions. While
we were conducting the survey, we kept a close we on the variability of the
respondent and we tried to cover the employees of all departments and definitely,
across the levels.

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Last of all, we summarized and analyzed the collected data with a deep
attention and we figured out the points that seemed to be important to us to make
valid and reliable inferences about those so that, we could easily find out the
problems or deviations from the standard. Then we tried to describe the existing
deviations in terms of the defined problems among the functions of HRM. And finally,
we put our all effort to figure out as better solution for the problems as those should
have been for a better management of human resource at GMG.

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DATA COLLECTION

Data collection is the stage that took a lot of time for us to pass it. Actually,
data collection is one of the most important steps in the analyses we have
performed. Because, all the inferences, implications and the decisions would be
totally based on the collected data. Anyway, we collected data in a bit more detail
and thus, while we were collecting data, we did it in several sessions. So, we had to
go to GMG six to seven times to finish the data collection.

First, we started collecting information about the company – GMG as a whole.


Because it was important for us to know, at which stage the business is staying at
the moment and where it may go in the future. To know about the company history
and its services, we went to the web page of GMG in the Internet. Then we talked
the Deputy General Manager of GMG. We collected information about the
company’s mission, vision, strategy and the objectives from him. We also got some
important information about the GMG’s functional departments, organizational
structure and number of employees at each level etc. Moreover, we prepared a
questionnaire for the management to know about the existing system of the
company exactly, the human resource functions inside GMG. In response to those
questions the DGM – Mr. Gilanee provided us with lots information that was vital for
the analyses.

Then we tried to find out what the employees across the level think of and
perceive about GMG because the success of the human resource functions mostly
depends on the perception of the employees. So, we decided to question them. But
it was difficult to talk to employees of each employee of each department, as it is a
much time consuming job. So, we prepared another questionnaire for the employees
and chose some random sample from each department of GMG. We surveyed
employees not only from their Dhaka operation, we also surveyed some employees
from other divisional operation of GMG. Mr. Gilanee helped us a lot in this regard.

We surveyed more than 25 employees of GMG. But the problem was that
some of them did not answer to all the questions. So, definitely, we had to exclude

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those unfilled questionnaires. At last, we took 10 questionnaires as the
representative ones from all the departments across the level of GMG. Still there
might be some problem, which is statically termed as validity and the reliability of the
data. It might happen that the respondents we have surveyed are not the
representative-ones or they might not have provided the right information.

However, we were always conscious about those probable problems and thus
we tried our best to collect the most accurate data and make valid and reliable
inferences about the data we have collected.

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SUMMARIZED INFORMATION

We stated earlier that we have collected data about GMG in terms of its
overall management and specifically the human resource management. We
interviewed the DGM of GMG and surveyed the employees with the help of a
questionnaire. We have already summarized some of the information that we have
gathered from the interview in the previous section. Now we are going to summarize
the information that we derived from the survey and try to make reliable and valid
inferences from that information.

Table # 1: What percent of the total employees at GMG, fall in which age range

Age Range* Percentage


20 – 25 30%
25 – 30 40%
30 – 35 30%
Total 100%
* lower limit inclusive

From the table we see that 70% of the total employees are in the
Establishment Stage and the rest 30% are in the Advanced Stage of their career.
So, none of the employees is in the Maintenance or Retirement Stage.

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Table# 2: summarized data about the thoughts and perception of the employees
about GMG in terms of some specific criteria.

Criteria Response Percentage


Job description is provided Yes 40%
No 60%
Job description is important Yes 80%
No 20%
Performance is evaluated periodically Yes 40%
No 60%
Performance evaluation is vital Yes 100%
No 0%
Compensation is revised periodically Yes 10%
No 90%
Compensation should be revised periodically Yes 90%
No 10%
Job-orientation was provided Yes 70%
No 30%
Proper training is provided Yes 30%
No 70%
Training is vital for the job Yes 100%
No 0%
Proper care for health and safety is taken Yes 10%
No 90%
Find any prospect in GMG Yes 20%
No 80%
Thinking of leaving GMG Yes 60%
No 40%
HRM department is required Yes 90%
No 10%

Inferences:
40% of the total employee said that job description is given where as, 60 % of
the employee said that proper job description was not provided. Moreover, most
of the employees [80%] think that job description is important.

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Performance evaluation is not properly practiced at GMG where as, all of the
employees consider performance evaluation as a vital system.

Compensation is not periodically revise at GMG, though most of the


employees think that it should be revised periodically.

70% if the employees said that the job orientation was provided and 30% said
that it was not. It means that to some extent, orientation is present at GMG. But
still it is not in a proper or formal way.

Only 30% of the total employees said that training is provided and the rest
70% said that it is not. So there is lack of proper in the company.

All the employees of GMG consider training is vital for their job.

As 90% of the employees said that GMG does not take proper care for health
and safety, we can easily conclude that GMG is giving priority to the health and
safety of the employees.

80% of the employees said that they don’t find any prospect at GMG that is,
they don’t think that they will be having any kind of progress in future in terms of
their job at GMG.

Though it was the most controversial question to ask that whether the
employee is thinking of leaving his or her job, in response to this question, 60% of
the employees said that they are thinking of leaving their job at GMG.

90% of the total employees think that it is important for GMG to have a human
resource department.

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Table # 3: If the employees had left GMG, what would be the most important
reasons behind that decision.

Possible Reasons Not A bit Moderately Extremely


Lack of Working Environment 20% 0% 0% 80%
Lack of Proper Knowledge about 10% 10% 40% 40%
GMG
Lack of clear objectives 30% 0% 40% 30%
Lack of proper orientation 20% 10% 30% 40%
Lack of training 20% 0% 10% 70%
Lack of opportunity 10% 20% 20% 50%
Lack of performance evaluation 10% 10% 30% 50%
Lack of EEO compliance 10% 40% 30% 20%
Lack of adequate compensation 0% 10% 10% 80%
Lack of career development 0% 20% 40% 40%
Lack of HR department 30% 10% 30% 30%
Lack of care for health & safety 30% 60% 0% 10%

We found that 60% of the total employees at GMG are thinking of leaving
GMG. Now we will try to find out what are the most important factors that make them
to think of or try to leave GMG.

Table # 4: The relationship between some particular factors and the intention of
the employees to leave GMG

Factors Not A bit Moderately Extremely


Lack of Working Environment 0% 0% 0% 100%
Lack of knowledge about GMG 0% 0% 66.67% 33.33%
Lack of clear objectives 0% 0% 66.67% 33.33%
Lack of proper orientation 0% 0% 33.33% 66.67%
Lack of training 0% 0% 0% 100%
Lack of opportunity 0% 0% 33.33% 66.67%

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Lack of performance evaluation 0% 0% 33.33% 66.67%
Lack of EEO compliance 0% 50% 33.33% 16.67%
Lack of adequate compensation 0% 0% 0% 100%
Lack of career development 0% 0% 50% 50%
Lack of HR department 33.33% 0% 50% 16.67%
Lack of care for health & safety 33.33% 0% 0% 67.67%

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CURRENT SITUATION

Until this section, we have studied the company – GMG in terms of its history;
its current market & demand; its mission, vision, strategy, objectives; its
management exactly, the human resource management; its employees of each
department across level and to some extent the problems it faces. We did all the
above discussion in the previous sections under the heading of several topics. Now
we are going to present what we did not cover in the previous sections and at the
same time summarize what we have found so far about the company’s existing
status, after this long and hectic study that is, we are going to discuss the current
situation of the company.

We think that for any management it is the most important task to know about
the company’s mission, vision, strategy and objectives. Because these are the
elements after which the management will be running to reach them or to achieve
them. Actually, these are set as the expected standards of the company and then the
all the functional departments try to coordinate in such a way so that, these
standards are achieved. So, first, we will talk about GMG’s mission, vision, strategy
and objectives. As we mentioned earlier, that we talked to the DGM of GMG to know
about these elements and in his own word of the DGM, these are as follows:

Vision: To be the premiere airline in the region of the South-East Asia


Mission: First Class All The Way
Strategy: To call each and everyone sir and never say no. (Yes, Sir)

And the objectives should have been set thereby breaking down of the
strategy. But, unfortunately, as we have told before GMG does not set objectives
even a monthly one. Anyway, we think we should describe the strategy a bit as the
DGM of GMG did it. He said that this strategy has got some deep meaning in it
because a hidden objective is already there for the company. ‘To call each and every
one sir and never say no’ or, in short, ‘yes sir’ means that never try to practice

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negative with the customer that is, whatever the customers want from GMG, it is
expecting to have that demand met through the service it provides. So the hidden
objective is to try to go beyond the customers’ expectation always in terms of the
service in the airline industry that is, to maintain the standard in every spheres of this
service.

According to the mission of GMG, the company is trying to achieve first class
all the way. So it is trying to design the whole organizational system in the way it
should have been to maintain the first class all the way. As we described in the
introduction about the company, that its most of the part of the service is maintained
as the top standard in the industry of airline in Bangladesh. GMG is trying to be the
most expensive in the industry at the same time wants to assure that it worth it. But
after studying the company, what we have found is that its concern about the
management of the organization is a bit unsatisfactory which resulted in a total
absence of the HRM department in such big company. Actually, it is a truth that
without a human resource department the GMG cannot achieve what it expects to
achieve – first class all the way.

Now we will present the organizational structure of GMG to make an estimate


of the levels of the employees and it will also help us to understand the existing
human resource planning of the company.

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Organizational Structure of GMG

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Now we are going to state the number of employees at each level and each
post:

Top-level Management:
Managing Director =1

Upper Top Level Management:


Director Operations =1
Director Engineering =1
General Manger Admin =1
General Manger Finance =1
General Manger Marketing & Sales =1
General Manager Ground Service =0
Total =5

Middle Management:
DFO =1
Operations Controller =1
DGM Cabin Service =1
Manager Quality Assurance =1
Manager Production =1
Manager Technical =1
DGM / AGM [Gen Admin] =0
DGM / AGM [Finance] =1
DGM [Marketing & Sales] =1
AGM [Marketing & Sales] =2
DGM [Ground Service] =1
AGM [Ground Service] =0
Total = 11

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Lower Level Management:

Chief Pilot =1
Operations Controller =1
Cabin Crew = 18
Maintenance Engineers =8
Manager G Admin =1
Manager Personnel Admin =0
Manager Revenue =1
Manager Finance =0
Manager Accounts =1
Manager Sales =0
Manager Reservation =1
Manager Corporate =0
Manager Interline =1
Manager Air-terminal =6
Asst. Manager Air-terminal =0
Total = 39

The total number of the employees is given below [department wise]:

Administration = 12
Sales = 70
Operations = 48
Finance & Accounts = 28
Engineers = 76
Ground Service = 89
Total = 330

Besides these, there is a board of directors including 4 members.

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Finally, we are going to summarize the lacking of the company in a broader
sense and of course, that are related to only the Human Resource Management, as
our primary concern is to figure out, how better could we manage the resource –
human. The problems are as follows:

1. Employee turnover is pretty high at the moment at GMG. We get this


implication from the information we have collected from the interview and the
survey as, 60% of the employees said that they are thinking of leaving their
job at GMG.

2. Currently, GMG does not perform job analysis in a proper way ad it does not
provide any job description to its employees where as, all its employees
expect to have job descriptions.

3. Most of the employees that are currently serving GMG are not properly skilled
and from the analysis of their qualifications, we found that they are not
adequately qualified to serve in an airline company. So there are problems in
the recruitment and selection process.

4. GMG does not have any formal appraisal system at all where as, 100% of the
existing employees support and expect formal performance evaluation
system. What they do is just observe and provide no proper feedback to the
employees. From here the problem in the performance evaluation system is
clear.

5. Compensation is not revised, periodically, at GMG that is pretty important for


a company to do.

6. Airline industry is highly technology based and involves a sophisticated


system in its business. Moreover, technology is not stagnant at all. It is
changing as fast as wind is. So, it is a must for the employees working at
GMG to have periodic training. But, in fact, it is lacking the training program
for its employees, which is totally unexpected.

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7. To some extent, orientation is present at GMG, but it is not enough in
comparison with what is actually required by the employees.

8. So far we have learnt about company, there is no motivation technique


applied by GMG to make its employees work better that is there is no concern
from the company side about the motivation level of the employees. In fact, it
is a fatal problem in the company.

9. Most of the employees that are thinking of leaving the company considered
‘lack of opportunity’ as the main reason for it. Actually it is directly related to
the career planning and the development problem. Most of the employees are
at their establishment stage of their career and it is the stage where both
career planning and career pathing are vital the most.

10. The management of GMG does not care about the health and safety needs of
the employees at work. This is also a drawback of the existing system of the
management.

11. Finally, the most important problem, which we can name ‘the father of the
problems’, is the lacking of the Human Resource Department. We call it father
because basically, this is the root of all the problems regarding the human
resource management at GMG.

However, problems could be whatever, it would not matter, if the company


were really concerned about the arising problems and had taken proper action as
soon as they arise. Anyway, there are some more minor problems that we have
interpreted from the data we have collected like, lack of equal employment
opportunity compliance. Though, it is important in the global business context, it is
not that important in the local context.

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STATISTICAL SNAPSHOTS

Now we will be having a look at the graphic representation of the data we


have collected from the survey as most of the problems underlie in the inferences
that the snapshots provide.

Figure # 1

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Figure # 2

Figure # 3

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Figure # 4

Figure # 5

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Figure # 6

Figure # 7

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Figure # 8

Figure # 9

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Figure # 10

Figure # 11

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Figure # 12

Figure # 13

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Figure # 14

Figure # 15

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Figure # 16

Figure # 17

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Figure # 18

Figure # 19

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RECOMMENDAION

If we look at the world today, we see that global competition and changes in
economic conditions are causing many organizations of all sizes to restructure.
These changes mean that the organizations today must be more aware than ever
before of how best to utilize the talents of the employees at all level of the company.
Capable peoples must come out and be available to fill the new, bigger, and
technologically more sophisticated jobs of the modern organizations. Keeping these
things in our mind we are gong to recommend GMG Airlines to help it out of the
problems it is facing now. We prefer the recommendations to be descriptive rather
than being numbered and so did we.

Actually, the first and the last recommendation that we are going to make for
GMG is –
“To develop a whole human resource department at GMG and thus ensure

the proper management of the resource – human.”

Now the question comes that how developing a human resource department
can solve all those problems regarding the management of human. In this regard, we
think, we should elaborate this recommendation further by giving the references of
the problems.

We see that the employee turnover is high for GMG. Still GMG have not taken
any proper action to reduce the turnover. As we know that this is an issue related the
human resource management and there is nothing like HRM at GMG, which gives
an implication that the turnover problem could not be eliminated for the lacking of the
related department – human resource department. If there was a HR department, it
would be concerned enough to take reasonable action about the problem.

Then we see that there is lack of proper job analysis, which in turn results in
problems in the recruitment and the process. This can be eliminated by conducting

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proper job analysis and by preparing proper job description for the employees. But
this is not an easy task to perform. In fact, it is a matter of at east one year for the
company like GMG to prepare job description for all of its employees. Moreover,
without any HR specialist like us, it cannot be performed. So, what it wants is a
human resource department from where the hr specialists will perform these job and
thus, remove the existing problems related to job analysis and recruitment &
selection.

Next we find that there are some major problems regarding to the human
resource planning, performance evaluation system, compensation package,
motivation techniques, employee orientation, training and development, career
planning, employee health and safety all of which are the human resource
management functions. All of the above stated functions are not properly performed
at GMG and the main reason for that is the lack of a human resource department.
We are telling again and again that developing a human resource department can
solve all these problems regarding the human resource.

However, developing a human resource department is not all. GMG should


seep a close eye on the development process of the HR department because the
department should be well developed to manage the human resource better.
Moreover, coordination among the departments of the GMG is vital for the optimum
performance of the organization as a whole, as all the departments are to some
extent, interrelated.

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LAST FEW WORDS

At the end of the report – “how better could we manage the resource; of
course, human” on the company GMG, we think that we need to say a few more
words. Suppose, GMG has developed the new human resource department as we
have recommended them to do it and it is working pretty good as well in terms of
eliminating the existing problems related to the human resource management. Then
naturally, one would tend to think – yes! the company is saved at last… all the
problem has gone! Now it will be living …

No, this is not the end; it won’t be living happily ever after. Because it is
nothing about the fairy tales, rather the real world that is getting more and more
dynamic and uncertain and where it is to believe that problems are there always but,
along with the solution. It is just the initiative that should be taken at that moment to
find the solution. And one more thing to believe that –

Whatever you do, always there is a better way of doing that…

THE END

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