Introduction of the company:

Etihad airways is the national airline of the United Arab Emirates. In very short time Etihad
Airways has established itself as one of the leading airline industries in the world.
It was set up by the Royal (Amiri) in July 2003. The airline started operations in November 2003
and since that it has come a long way to become one of the world’s leading airline companies.
Abu Dhabi which is the capital of United Arab Emirates is the center of the Etihad Airways. It
has received a large number of awards since its inception which is a symbol of their good
performance in the industry.
In Etihad airways a large number of employees are working day and night to improve the
productivity of the company. These employees are well trained according to the modern
techniques.
After the covid-19 the airline industry worldwide was badly affected and the same happened to
Etihad airlines, however responded very well and soon it got itself stable through different
campaigns. After covid-19 different restrictions were imposed on airlines and traveling so the
employees needed to be more educated on these issues and they were given more training on
health if the passengers.
The training and development of the employees make the overall organizational strategy and
policy of the organization. It helps the employees to improve their individual skills and to
further strengthen the collective organizational abilities of the company. The training initiatives
are aimed to build the capacity of the workforce.
In recent time many companies have started paring attention to the need to enhance their
potential workforce and to increase the capacity building of their employees. Nowadays it is
recognized as the main part of any successful human resource management. As we know that
Etihad airways is one of the most successful company in the United Arab Emirates in this
regard, its initiative to increase the capacity building of their employees and the future
employees of the company so they have already established their own academies for their
pilots, cabin crews and their engineers.
The training in an organization consists of two types, first one is the internal training which is
done inside the company and all the training is provided within the premises of the company
such as off job and on job trainings and the second one is external training is the training which
is arranged outside the company by the company to provide more exposure and experience to
the employee.
Training programs for pilots were designed. In 2013, Etihad airways established a college called
as Etihad Flight College. The purpose of this college was to produce the best pilots to support
the rapidly increasing fleet of the aviation sector in Abu Dhabi. A training program was
introduced by Etihad airways which is known as Multi-crew Pilot license (MPL), which was later
adopted by different companies around the world. The pilots were sent to different countries
for further advanced trainings and experience.
Training programs for the cabin crews were also developed. As the technicality for the cabin
crew is not that much important but it is a very important part for the successful operation of
the airline. As the cabin crew needs to deal with the passenger so they are trained to deal with
the passengers, and communication skills are developed.
Similarly, the engineers who work in Etihad airways are the most skilled peoples who maintain
the aircrafts. They are further trained by the Etihad airways by sending them abroad for further
trainings. The assessment and evaluation of engineers is done through different programs and
their skill level is increased day by day.
So, to improve the effectiveness of their employees’ training efforts, many companies establish
their own educational institutions and their employees’ facilitating institutions. By using these
methods, they have reduced the cost on educating of their employees and future employees
also they have ensured that their employees have already learned which they need to be
implemented in the future in the company. So, keeping these in mind curriculum for the pilots,
cabin crews and the engineers who are already working are needed to work in Etihad airways in
future were designed.

The pilots and the cabin crews are trained on advance technologies with the help of simulators
in which their skills were developed and also technical knowledge about the planes are
evaluated. Similarly, the engineers are also trained on the basis of modern technology and new
inventive techniques so that they are up to date with the modern technologies.

As there are employees working in Etihad airlines belonging to different countries and cultures
so there is cross-cultural environment in Etihad airways. This cross-cultural environment is very
good for the company as different mindset of people having expertise in different fields work
together under the umbrella of Etihad airways for the betterment of the company and for
achieving the organizational goal of Etihad airways. It teaches the employees empathy towards
each other and religious harmony. People belonging to different ethnicities working together in
a single company for a common goal of the company can prove to be very beneficial. They are
proving to be more innovative when different minds work together for a single purpose. Same
is happening in Etihad airline. Due to the efforts of the employees who are working for the
productivity of the Etihad airways, the company is doing great in the airline industry.
So, to manage the performance of these employees who belong to different ethnicities is quite
a difficult task, but Etihad airways does it perfectly which can be seen through their progress in
the aviation industry as one of the leading airway companies.
Some of the approaches to the international compensation are:
 1. Going rate approach:
This approach is also called localization or host country-based approach. This approach aims to
treat the employees of the company as the citizens of the host country. The salary structure of
the host country is taken into account.
The advantage of this approach is that a sense of equality is created in the company. The main
disadvantage is that there are possibilities of re-entry problems.
2. Balance sheet approach:
It provides compensation to the international employees which is equal to the cost difference
between the international assignment and the home country assignment of the individual. It is
based on assumptions and is designed to reduce the cost difference.
The advantage of this approach is equality between the employees of the host country and
international employees. The disadvantage is that it can create disparity between the local and
international assignees.
3. International citizen approach:
This approach involves giving the employee the predetermined salary and letting him/her to
decide how to spend it.
Currently the HR department of Etihad airways is using performance appraisal system enhance
performance management and the career support programs, which uses the modern
technology tools which are used to support HRM structure, mainly focusing on the skills
enhancement techniques of the employees, career progression and performance management.
The application of these techniques is used for the quality management to HRM practices to
meet the needs of the customers.
Some of the recommendations are that the HR managers, employees and the higher authority
should work together in more cohesive manner for the better growth of the company and the
productivity of the company. In addition, the employees must be empowered so that the
organization can grow. There should be continues investment on the training and development
of the employees to equipped with modern techniques. Better communication techniques
should be adopted to remove any ambiguities.
References:
Etihad Airways Training Programs - 1143 Words | Assessment Example. (2021, July 26). Free

Essays. https://ivypanda.com/essays/etihad-airways-training-programs/
Croswell, L. (2021, October 15). Do you know these 3 modern HR practices? Culture Amp.

https://www.cultureamp.com/blog/3-modern-hr-practices

Al-Khaled, A. A. (2014). The Effects of Human Resource Management Practices on Employees’

Motivation and Retention. SSRN Electronic Journal. Published.

https://doi.org/10.2139/ssrn.2407263

R. (2021, October 25). What Is A Performance Management System? Engagedly.

https://engagedly.com/what-is-a-performance-management-system/

Al Ali, H.A. and Ahmad, S.Z. (2014), "Etihad Airlines: growth through successful strategic

partnerships", Emerald Emerging Markets Case Studies, Vol. 4 No.

5.  https://doi.org/10.1108/EEMCS-09-2013-0184