The Role of Management Team

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  • Topic: Airline, Management, International Civil Aviation Organization
  • Pages : 13 (4149 words )
  • Download(s) : 33
  • Published : December 29, 2012
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Table of Contents

(Cartoon by Carol Simpson)

Contents Page

Introduction…………………………………………………………………………………………………………. 3 Principles of Management……………………………………………………………………………………. 3 Human Resource Management……………………………………………………………………………. 6 Safety and Security……………………………………………………………………….……………………... 9 Conclusion……………………………………………………………………………………………………..…… 12 References………………………………………………………………………………………………………….. 14 Appendix…………………………………………………………………………………………………………..… 16

Introduction

The role of a management team in any business or organization is fundamentally to establish goals and objectives, to create a business model and to ensure the company objectives are carried out according to that current business model. The culture of a company will be based on management – either current or previous. Many companies have a “them and us” culture between front line staff and management, however they still spend millions on bridging the gap through open forums and “share your thoughts” involvement days where staff give opinions on the workings of the company and how they believe the company should be run.

Principles of Management

According to Tripathi and Reddy, there are six functions to a management structure, Planning, Organising, Directing, Controlling, Staffing and Communicating.

In order for a company to be successful it must develop a business model or mission statement as a rooting, to establish a focal point for smooth running and consistency. Business models are developed using the acronym SMART, which considers the following, Specific, Measurable, Achievable, Realistic and Timed. Most airlines have a mission statement, an example bring British Airways, “’One Destination' the destination being to become the world's most responsible airline in order to protect our bottom line, enhance our reputation and allow us to grow. It also helps us save precious natural resources and support communities around the world.” (British Airways 2012) This example shows that BA’s objectives are to excel above competitors in areas such as commitment to the environment, operating a community investment program, employing a diverse workforce with different backgrounds and cultures in order to understand today’s customers and a duty of care for the people who make the airline – the customers – onboard health – investing in the workforce with training and equipment to ensure the best service is available. The key to making a mission statement is not only in the development, but also in the execution.

Management is often divided into levels dependant on the size of company or the structure they wish to form in order to adhere to the business model, these levels can be huge, many airlines are cutting costs by merging management roles and making what is known as a flat management hierarchy. Management is usually structured with Senior, Middle and Line managers. Figure 2 illustrates the tasks of each section.

For companies to remain competitive in today’s airline markets, they need to plan and anticipate cultural change, social trends and economic markets. Planning is considered to be the fundamental task of management and making mistakes or misjudging the market can be so critical it could bankrupt the company. An example of this is where companies hedge fuel when the cost of Oil is low and reap the benefits of low fuel prices where the competitors may be paying higher per barrel. In 2008 Ryanair hedged fuel at $124 a barrel as the price of oil was increasing – however within that time scale, prices dropped to $33 a barrel, costing the company a reported $102 million. (Robert Lea 2009) Some argue that had Ryanair hedged consistently or not at all, they wouldn’t have lost out, the problem here was they noticed the current trend and acted without judging that oil had already reached its peak and was on its way down.

Subsequent functions of management are Organizing. Organizing a company is only correctly accomplished by...
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