Evaluation of the Strategic approach to Performance Management and Recruitment and Selection in Flight Centre UK
Flight Centre is an Australian based travel agency which created a revolution in the travel industry through its model in which volume has got more importance than margin in gaining profitability. It is one among the world’s largest travel agency with more than 2000 stores around the globe. There are more than 90 stores for Flight Centre in UK (www.studentflight.co.uk). Each Flight Centre store operates independently with a team of specialist travel experts offering travel advices with unbeatable prices to its customers (www.flightcentre.co.uk). Flight Centre operates in a highly competitive market which has a high threat of new entrants, high supplier as well as consumer power and more over availability of substitutes- online ticketing. Flight Centre has overcome all these difficulties and has continued to increased profits and gain market shares. It has announced 200 million dollar pre-tax profit this year which is an increase of 40 million dollars from last year (www.brisbanetimes.com.au). Flight Centre restructured its business strategy to cop up with the changes in the external environment. It started selling travel insurance policies which are more profitable than selling tickets so as to keep the profit margin and revenue unchanged. It started offering ‘one-stop’ client package and guaranteed cheapest flights in the market. The incentive system of the company has been restructured so as to promote the sale of new and profitable products. It came up with a program called ‘One Best Way’ in order to achieve consistent level of service and high performance. Through this new program, every Flight Centre store will be working in a same method and each store is independent from other. This analysis analyses the strategic recruitment and selection process and performance management practices at Flight Centre and how these practices evolved as tools to achieve the business objectives of Flight Centre. Due to limitations in word count (4000) and constraints of submitting the work in limited period of time, the analysis is carried out in a concise manner covering only key areas of recruitment and selection and performance management. Strategic recruitment and selection
Recruitment and selection are processes done simultaneously and first one precedes other in action. Both processes are vital components as far as HR is concerned. Even though both of these processes are done simultaneously, each requires separate range of skills and expertise. Recruitment does the ground work in the selection process by screening the applications and providing a pool of perspective applicants for selectors to choose from that. Recruitment and selection aims to obtain the number of quality of employees to meet the human resource needs of the organisation at least cost.
According to Foot and Hook (2008), recruitment is:
All activities directed towards locating potential employees •
Attracting application from suitable candidates
From this, it can be ascertained that recruitment aims to obtain suitable candidates for the available job openings by using and demonstrating a fair process and also to ensure that all these activities contributes to the organisational goals in an efficient and effective manner. Armstrong (2007:409) has identified three stages for recruitment and selection. They are: 1.
Human resource plan of the organisation will be having the number of people required by the organisation. A basic draft can be prepared from this. This can be analysed by the help of seven-point plan developed by Rodger (1952) and the fivefold grading system by Munro Fraser (1954). Both of these systems provide a framework for the interview process. Competency based approach gives a better framework for interviews....
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