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Performance Management Of Etihad Airline

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1. Define the company and provide a detailed background to your research report.

The second largest airways of UAE, the Etihad Airways has started its operations from November 2003. Headquarter of Etihad Airways is situated in Khalifa city, Abu Dhabi. After the Emirates airlines, Etihad airlines is the name of the popular airline's services in the UAE. Etihad Aviation Group is the parent company of the Etihad Airways. In this research paper, the background is the performance management procedure, employee management, reward management systems. These are very crucial factors f the Etihad Airways, but these are the issue creating also. So, these are discussed in the research paper to solve these performance management issues.

2. Discuss the performance management processes currently in place at the company.

In Etihad airways, the performance management system is rotating around the fixed targets. In the operation management group of the Etihad Airways, managerial authorities provide some goals and objectives in front of the employees. Here the performance management system is very integrated with proper utilization of MIS results, executions, and operations. Operation management, mainly the customer care management system is here very much technologically equipped also. Above all, the management performance system is playing a vital role in the Etihad Airways as presently there are thousands of employees who have to serve millions of customers daily. As the Etihad Airways are the second busiest airways in UAE with 24*7 hours facilities, so performance management system is a crucial part here.

3. Assess the design and utilization of the performance management system(s) used in the company.

In Etihad airways, there is a prudent designing of the entire performance management system to utilize the performance from the human resources in an optimum manner. The performance management system is here designed with the basis of discussion, evaluation, meeting, reward provision along with the proper motivation to the employees. In this aspect, managerial authorities also make meetings on the basis of customer feedbacks where positive feedbacks are appraised and negatives are discussed to overcome the problems.The performance management system in this airlines is an instance for others as there are team leaders, supervisors and other observative designation for each team. These are the basic secret of the tremendous activities and superb performances of the Etihad airlines.

4. Explain the methods used to reward team and individual performance at the company.

In Etihad airways, the performance management system can maintain its integrity with its power of rewarding the team members and motivating them to give their best in the workplace. In this aspect, in the Etihad Airways, there is the system of fortnight rewarding (Grimme, 2011). In every 15 days managers of the performance management department meet with all the employees. In these meetings, employees get a chance to meet with their seniors. Here senior managers tell about their next targets and allocate different tasks among the team members. Previous tasks and activities are also discussed here to evaluate the activities of individual team members. After this evaluation, all the members with 100% achievements are rewarded with financial certificates, medals or sometimes promotional appraisal letters. This reward provision helps the organization to improve their performance also.

5. Analyze the advantages and disadvantages of the reward systems at all hierarchy levels of the company.

There are several advantages and disadvantages of the reward system in the Etihad Airlines. In this system, all the hierarchy managers are also included. As a result, there is a great demand for the reward also. Advantages of this reward based system are that employees feel a motivation from the rewarded one. Sometimes, increments are also added with the employee incomes along with their fixed salaries. But enhancement of money is not the last one. In most of the cases, these rewards cause the jealousy and demotivate the other employees.

6. Identify and analyze the role of the performance management techniques (at least 4) and reward systems in employee engagement process.

In this system of performance management, importance is multidimensional. Performance management system provides the analysis power, helps the employees to boost up their decision-making powers and help them to increase their dedication towards their job. Performance management techniques have another aspect which is the detection of loopholes. In this system, individual workers or the team can come to know their deficits from the feedbacks or the evaluation procedure. It will help them to repair their gaps. Ultimately, this performance management system utilization in the Etihad helps the airline's organizations to be 98% error free.

7. Describe how pay decisions are linked to performance management at all levels of the company.

Payment decisions are very crucial for the employees in the Etihad airlines. In this aspect, where the payment amount is fixed for every member, whereas consequent failure to reach the target for consequent 3 months can make a danger for the employees. In this situation, the employees are ordered to be resigned. Other several target based jobs, here the contingency payment is not present. But, as the performance management system is here very effective so employees feel a little bit pressurized to reach the target (Nataraja & Al-Aali, 2011).

8. Identification of key issues relating to the causes of poor performance across all levels of the company, including organizational and employee factors, task and employment conditions.

Here the key issues are the customer care feedback issues as the performance of several employees are till now not an up to the mark. In this aspect, customer complaints, feedback issues, integrity management problems, language insufficiency problems are now assuming a horrible shape in the Etihad Airways (Surovitskikh & Lubbe, 2008). In this situation, several repairing is needed in the performance management department of the Etihad airlines. Employment conditions of target fulfilling and others are creating a severe problem. In this situation, performance management department has to take steps to retain their loopholes (Al Ali et al., 2014).

9. Implementation of your proposed strategic plan to overcome the performance management problems at the company.

In this situation, the strategic plan of the Etihad airlines should be planned. To make a severe change the proper training of the employees are highly needed. Sometimes the troubleshooting power enhancing training can change the entire scenario. Another thing is the motivational seminar arrangement for the employees. It will help them to increase the risk assessment power. In this time, troubleshooting knowledge along with enhanced decision-making power can change their viewpoint. After that, employees can take individual steps to improvise their performances during the customer transaction period. It will help them to get rewards on appraisals and help the organization to be more popular with improvised human resources power.

10. Discuss steps for effective performance review meetings.

HR Manager; How are you?

Employees: It’s fine.

Hr Manager: What is going on?

Employees: I am frustrated with customer care complaints. I don't know what to do.

HR Manager: I will arrange some special training courses for you.That will help you to take proper decisions and language problems.

Employee: What will be my employment condition?

HR Manager: After completion of your improvement training a post-training examination will help. If you want to continue your job then you have to be concentrated during your training periods.

Employees: Thanks a lot for the special training program. I will do my best.


Al Ali, H. A., & Ahmad, S. Z. (2014). Etihad Airlines: growth through successful strategic partnerships. Emerald Emerging Markets Case Studies, 4(5), 1-12.

Surovitskikh, S., & Lubbe, B. (2008). The positioning of selected Middle Eastern airlines in the South African business and leisure travel environment. Journal of Air Transport Management, 14(2), 75-81.

Grimme, W. (2011). The growth of Arabian airlines from a German perspective–A study of the impacts of new air services to Asia. Journal of Air Transport Management, 17(6), 333-338.

Nataraja, S., & Al-Aali, A. (2011). The exceptional performance strategies of Emirate Airlines. Competitiveness Review: An International Business Journal, 21(5), 471-486.

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