Biographical Notes

Dr. Steven H. Appelbaum holds the Concordia University Research Chair in Organizational Development and Professor of Management, John Molson School of Business, Concordia University, 1455 de Maisonneuve Blvd. West, Bureau GM 503-9, Montreal, Quebec, Canada H3G 1M8. Brenda M. Fewster, MA, MBA, Webster Library, Concordia University, 1455 de Maisonneuve Blvd. West Montreal, Quebec, Canada H3G 1M8.

Global Aviation Human Resource Management: Contemporary Recruitment and Selection and Diversity and Equal Opportunity Practices
by Steven H. Appelbaum and Brenda M. Fewster Abstract The commercial airline is an extremely competitive, safety-sensitive, high technology service industry. People, employees and customers, not products and machines, must be the arena of an organisations core competence. The implications are vast and pervasive affecting no less than the organisations structure, strategy, culture, and numerous operational activities. Completed by 13 respondents (executives), this audit presents a series of select findings of a human resource management audit carried out in 2001-2 and contains extensive data on airlines from nine countries from around the globe. The conclusion drawn from these three bodies of work is that, with the exception of a handful of high performing airlines, the industry as a whole continues to function as per a traditional, top-down, highly divisionalised, industrial model of operations and governance. This model is manifestly inappropriate in such a highly knowledge-based service market as the airline industry. HRM expertise in general and recruitment and selection as well as diversity and equal opportunity in particular are required now, more than ever, to spearhead the strategic development of a customer-centric, learning-oriented workforce that is capable of adapting quickly to the strategic goals and change imperatives facing the airline industry. Introduction Strategy in the aviation and airline industries is premised upon two fundamental drivers that have been evolving since deregulation of the US airline industry in 1978: one, a growing global concern for safety; and two, an ever-increasing consumer expectation of broad service choice and service excellence. Research has long shown that accidents and poor service quality are primarily rooted in socio-technical human factors, not technology per se. Sub-optimisation, or poor quality in regards to management, decisionmaking, teamwork, employee motivation, or communication can translate into loss of customers, loss of market share, loss of organisation assets, and above all, loss of life.

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In such a safety-sensitive, customer service-centric environment, the traditional product-centred industrial model of corporate structures and industrial relations is inappropriate. Human resource management (HRM) expertise is required now, more than ever, to spearhead internal marketing strategies in order to gain customer lock-on. The primary area of focus of strategy is the manner in which the HR department in general aligns activities, policies and procedures with the recruitment and selection and diversity and equal opportunity imperatives of the organisation. This staffing and employee equity-maintenance function is the focus of this article. Methodology The original purpose of the review of the literature was to find other empirical studies of the airline industry regarding HRM practices from an applied perspective, with which to compare and contrast the results of the audit presented later in this article. None were found. This is consistent with the findings of other researchers. Thomas (1997) author of the book, A Portfolio Management Approach to Strategic Airline Planning, comments on the scarcity of research in the area of airline management. In reviewing the literature on international aviation, it is clear that researchers tend to analyse the industry at a macro-level. Although it has gained much attention recently . . . the topic of international commercial airline management suffers from a lack of theoretical and empirical work, and the scarcity of literature from a microeconomic perspective. Thomas studied present planning efforts in international commercial airlines by conducting semi-structured interviews and distributed mail questionnaires among carefully selected business executives. Thomas conclusions derive from his early report on a multiphase study on service organisations. To date, in-depth data from fifteen airlines have been connected and analysed (Thomas, p.147). The need for general management expertise in general, and human resource management expertise in particular, is the raison detre of this undertaking. According to Eaton (2001), author of the book, Globalization and Human Resource in the Airline Industry, research is particularly difficult because Airline managers are even more secretive and defensive about academic research than those in other industries (Eaton, 2001, p.ix). For the purpose of this article, Human Resources Management (HRM) refers to the management of people within the internal environment of organisations. It comprises the activities, policies, and practices involved in planning, obtaining developing, utilising, evaluating, maintaining, and retaining the appropriate numbers and skill mix of employees to achieve the organisations objectives (Appelbaum, Syllabus, 2001). The categories used to tie together the numerous functions involved in HR management are as follows: strategy, operational activities, and HR department management. The key activities involved in this category are recruiting and hiring the appropriate personnel as well as managing diversity and equal employment opportunity in steering the organisation in the desired direction.

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The objective of HRM in this instance is to align these operational activities throughout the organisation with the organisations mission, strategy and culture. These recruitment-retention and employee equity-maintenance function topics are essentially the flight deck of HRM functions incorporating/integrating the people resources (intellectual capital). Empirical studies of HRM practices in the airline industry were not evident and the review of literature became a study of popular themes and contemporary problems in the commercial airline industry. In order to keep the research current, only applied and empirical publications as of 1995 onward were considered. The research strategy was database driven drawing upon the business, management, journalistic, academic, and technological databases. A broad range of sources were consulted with a view to aggregating the fragmented material existing in an attempt to construct a snapshot image of key HRM themes found in, and regarding, the commercial airline industry. A series of select findings of an HRM audit carried out in 2001 is presented. This audit contains extensive data on 13 airlines from nine countries around the globe. The audit data was gathered by 13 students/aviation managers in the Global Aviation Masters of Business Administration (GAMBA) programme at the John Molson School of Business, Concordia University, Montreal, Quebec. HR Operational Activities: Recruitment and Selection The focus of applied aviation psychologists and human factors researchers is largely on pilots and cockpit crews. The selection of pilots historically had been based almost exclusively on flying skills. The aviation community is now placing greater emphasis on a pilots potential to work well in a crew situation (Hedge et.al., 2000). Research on the process used by British Airways to select pilots, suggests the task of the current generation of managers in the airline business, (Lowe, 1995) as beginning with the selection and continued grooming of professional commercial pilots. Interpersonal skills, and not just technical skills, are slowly becoming viewed as critical success factors for pilot performance and safety. In another study by Goeters (1995), it was found that nearly half of the problem cases in a study of 193 pilots were rooted in difficulties with interpersonal skills. In other words, measures of interpersonal skills/aptitudes were good predictors of whether or not a pilot became a problem case (Monfries and Moore, 1996). Carriers and the aviation community as a whole are becoming increasingly aware of the need for pilots to be competent in crew resource management skills and that successful completion of a flight or mission requires not only flying skills but the ability to work well in a crew situation (Hedge et.al., 2000). Recruitment and selection, obviously, are critical components of this issue. The airline industry is not only short of skilled pilots, but of quality frontline people as well. The problem is described and quantified in an article in Airline Business (1998), as follows:

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Like other service companies, airlines are finding it increasingly difficult to attract, retain, and afford quality frontline people. The supply of quality service sector people is decreasing as a result of the end of the baby boom, a lessening service ethic among young people, and a shrinking supply of pilots as countries downsize their air forces. At the same time demand is increasing as the service sector grows to an increasing percentage of the world economy (from 54% in 1970 to 60% in 1995) and more companies realise the potential higher returns from improved service (McKinsey & Co., 1998, p.16).

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Good (1999, p.46), citing a Fortune Magazine survey of the worlds most admired companies determined that the single most reliable predictor of overall excellence is the ability to attract and hold on to talented employees. Hiring right, suggests the American Society for Training and Development in their study of leading-edge companies, is one of the things their choice of Exemplary Practice Partners do in their organisations (Managing Training and Development, 2000, p.3). Case studies of outstanding aviation and airline organisations offer scattered but rich sources of anecdotal insights into the recruitment and hiring practices of successful airlines. One source offered very specific recruitment and selection guidelines. In a survey conducted by Business & Commercial Aviation, hiring experts were asked for their advice on how to hire the right technician. B & CAs summary (Benoff, 2001 p.65) includes helpful tips on such issues as how to target job announcement locations, what to look for in a resume, how to assess the applicants work experience and career path, how to prepare for the interview, and how to conduct the interview and reference checks (Benoff, 2001 p.65). Falter wrote an entire dissertation on her employer, Duncan Aviation a leader in aviation service and maintenance who has received No.1 rating for the last 25 years in Professional Pilot magazines annual survey for avionics and maintenance. Falter (2000, p.107) provided the following information regarding the recruitment and hiring of employees: within one week of hire, the president of the company meets with all new employees as part of their orientation and to learn about the new people. A large percentage of new hires originated from internal referralsas seen in 2000 when almost 50% of new hires were referrals from employees (Falter, 2000, p.117). A far better known example of recruiting and hiring policies is that of Southwest Airlines. According to Southwests V-P of the People Department, Libby Sartain, the key to recruitment and selection for frontline positions is to hire for attitude, not skills (Ellis, 2001, p.48), If we hire people who do not have the right attitude, disposition and behavioural characteristics to fit into our culture, we will start to change that culture. The recruiters primary role is to make sure it is a good cultural fit (Ellis, 2001, p.48). Each year, Southwests 90,000 applicants go through an application process that includes a personality test as well as interviews by a recruiter, the candidates potential supervisor and a peer employee (Ellis, 2001, p.48). Southwest

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hires for attitudes and trains people for specific skills because of the belief that skills can be taught but attitudes cannot be changed. Part of the interview process involves testing for a sense of humour, ability to work with others, and friendliness (Czaplewski et.al., 2001, p.15). This is done in interviews where applicants tell jokes and role-play a variety of situations to demonstrate teamwork and the capacity to act spontaneously (Czaplewski et.al., 2001, p.15). The lucky 4% who are hired receive their orientation at the University of People, Southwests in-house training centre (Ellis, p.48). Atlas Air Inc., a Boeing 747 cargo aircraft operator with headquarters in Golden, Colorado, understands the importance of hiring for flexibility as a key factor in its low-cost operating success. Atlas has achieved high growth rates without accidents and at lower incremental personnel costs than many established international airlines and cargo carriers largely because of the scheduling flexibility and high productivity of its flight crew workers (Good, 1999, pp.11, 17, 203). One reason for this flexibility may be found in what appears to be the companys practice of hiring young crewmembers motivated by the prospect of flying a Boeing 747 aircraftthe envy of many pilots. Although Atlas employees are paid less than half the industry standard in wages (compared to established union airlines), For many, Atlas Air is clearly the best opportunity even without a favourable change in compensation or work rules (Good, 1999, p.378). Part of Southwests mandate to hire for the right fit is its dedication to ensuring employee diversity. According to Sherry Phelps, director of employment, Southwest tries to mirror the population at large.... The U.S,. census statistics are provided to all the recruiters responsible for hiring in our cities and they make a concerted effort to make sure we have opportunities for everyone and reflect the outside population (Hendersen, 1995, p.41). In addition to the concern over hiring the right contact, or front line people, and good pilots with both technical and interpersonal skills, there is express concern regarding the availability of good management talent. OToole (2001) refers to talented management as a scarce commodity that is likely to become even scarcer unless the industry invests more in its human resources. The internal supply of airline executives will not, as it stands, be enough to meet demand. In Europe, recruitment activity at airports is booming (OToole, 2001 p.106). In another article, OToole (2000(b)) cites the observations of Michael Bell, who leads the global aviation practice at the executive search consultancy, Spencer Stuart. Bell believes that, Regional airline executives must craft and execute robust business strategies, establish and defend niches in competitive markets and handle myriad operational issues that arise in the larger carriers (OToole, 2000(b) p.82). Because of this, regional carriers offer management talent as good as that found in major carriers. Recruiting practices however, have become particularly focused concerning some airlines astute observation that diversity matters to customers

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and should be part of the organisations hiring policy. Examples of Continental Airlines hiring for diversity and multicultural marketing will be drawn out below in the section on Diversity and Equal Employment Opportunity to show how this organisation credits a big part of its recent turnaround to its aggressive attitude in hiring, training and retaining minority employees (Fitzgerald, 2001, p.s6). HR Operational Activities: Diversity and Equal Employment Opportunity A different spin on dealing with diversity can be seen at Continental Airlines where Airline executives imply one reason the company has posted several years of profits and double digit growth is its aggressive attitude in hiring, training and retaining minority employees. About 23% of its managers and 37% of its employees are minorities (Fitzgerald, 2001, p.s6). Headquartered in Houston, Texas, Continental is situated in a laboratory of diversity, where, in Harris County, 39% of people aged 18 to 30 years are Hispanic, 29% are white; 22% are African-American and 8% are Asian. In its move to embrace diversity, Continental became the first official airline of the U.S. Hispanic Chamber of Commerce and has formed alliances with the Organisation of Black Airline Pilots, the Black Flight Attendants of America, the National Black MBA Association, and the Hispanic MBA Association to recruit minorities at all levels of the company (Fitzgerald, 2001, p.26). Continentals hiring and organisations policies are paying off, leading to Continental having been ranked number 18, in 2001, on Fortunes list of 100 Best Companies to Work For (Fitzgerald, 2001, p.s6). Diversity is often discussed in lay and practitioner industry sources, not from the point of view of equal and fair treatment of employees, but as a marketing method particularly in discussions on recruitment. Hendersen outlines the growth of both women (International Society of Women Airline Pilots) and black airline pilots (Organisation of Black Airline Pilots, OBAP) associations challenging the old status quo. About 30 years ago, the U.S. airline industry was an almost 100% white male bastion (Hendersen, 1995, p.37). Little information can be found on the presence of women and minorities in the American transport industry, but airlines are learning how to successfully court and embrace diversity. At Southwest Airlines, a leg up is given to women and minorities by interviewing them ahead of other candidates (Hendersen, 1995). At Southwest and America West, where both organisations claimed more than 50% of their employees were female. Both companies also have clear equal employment directives. At America West, a corporate statement of commitment regarding equal employment opportunity and affirmative action is maintained and updated annually in addition to a separate non-discrimination in employment policy that specifically touches upon harassment, including race, colour, religion, national origin, age disability, veteran status, sex and in particular, sexual harassment (Hendersen, 1995). As mentioned earlier in the section on recruitment,

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Southwest seeks to mirror population statistics in its hiring practices. United has also taken a stand and has declared its commitment to providing opportunity for career advancement to women and minorities ... [setting] aggressive affirmative-action goals and strongly [promoting] equal opportunity for all employees in the areas of recruitment, hiring and promotion... (Hendersen, 1995). Delta Airlines has also taken a number of industry-leading initiatives to promote the development of women and black pilots in an industry where only 5% of all pilots are women and less than 1% is non-Caucasians (Black Enterprise, 2001). In June 2001, students began benefiting from Deltas commitment to spend $1.6 million in pilot training scholarships in a joint programme with Western Michigan University and the Organisation of Black Airline Pilots. Delta has also targeted selected high schools around the US where it provides financial assistance, internships, job shadowing, and facilities tours. Employees provide programme support by serving as mentors in the classrooms, sharing real-life experiences with the D-TCA [Delta Technical Career Academy] students. And, in another collaborative effort with OBAP, 30 boys and girls were brought to Ace Camp to gain first-hand knowledge of what it takes to be successful in the field of aviation (Black Enterprise, 2001). References throughout the literature were made to the lack of respect and outright sexual harassment experienced by women working in the airline industry. According to the International Society of Women Pilots, after carrying out a survey via 134 of its members, Despite the media attention usually concentrated on sexual harassment, the ISA participants reported total gender discrimination incidents as both more frequent and more significant. Of the significant incidents reported, 55 per cent (37 incidents) were categorised as gender discrimination and 45 per cent as sexually oriented harassment (Eaton, 2001, p.143). The Federal Aviation Association is also not immune to problems of sexual harassment. Three women at the agency claim the agency persistently ignored their complaints of sexual harassment. In the case of Carolyn Davis, Ms. Davis harassment worsened on 30 May, 2001, to the point that the scope she used to co-ordinate air traffic, had been tampered with (Federal Human Resources Week, 2002). It is interesting to note that according to the 2000 Employee Attitude Survey results, employees did not feel the FAA was fully committed to improving personnel relations, even though management at FAA believed its reforms were on track (Federal Human Resources Week, 2001). A lack of respect can also be communicated in an airlines attempt to create a certain image or marketing gimmick. In 1994, JAL made female flight attendants dress up as Minnie Mouse, with mouse ears, headbands with red polka dot bows and aprons decorated with Disney characters (Eaton, 2001 p.12). Male flight attendants were not required to dress up as Mickey Mouse. Some flight attendants believed that JAL, in its goals to reduce staff from

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22,000 to 17,000, was trying to make flight attendants look ridiculous and want to quit their jobs. Eaton (2001, p.13) asserts that for a woman to secure employment in the aviation industry, she must achieve and maintain a particular state of embodiment, prescribed primarily according to an instrumentally imposed concept of a feminine aesthetic and practice largely according to constraint, containment and concealment. Eaton cites the image of the Singapore Girl.
The selection procedure of SIA exemplifies the effect of such market-oriented strategies [i.e. glamorised cabin hostess connoting in-flight pleasure and a lyrical quality], as human resource management. The girls must be between 18 and 25 years of age, fluent in English, slim and attractive with a clear complexion, taller than 1.58 metres, with a pleasant personality and a smile. Although no one would admit it, the training was implicitly sexual: the Singapore Girls brief was to be irresistible to Western and Japanese (Eaton, 2001, p.132).

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Overview of Audit Findings: Recruitment and Selection There was an overwhelming consensus in the review of the literature that hiring the right people was one of the single most important issues in human resource management. Audit findings do not contradict this but a number of discrepancies on hiring practices appeared in the audit findings. According to respondents, 93.33% (See Table 1, question no. 6) of the airlines in the survey answered yes to the question of whether their organisations attempts to fill positions internally before going to outside sources (the remaining 6.67 answered not applicable). In spite of the unanimous policy of seeking internal candidates first, less than half of the respondents (46.67%, see Table 1, question no. 14) responded yes to there being a policy regarding promotions (40.00% answered no and the remaining 13.33% answered not applicable). Another surprising finding was that less than half (46.67%) of all those who interviewed candidates received training in the types of questions and actions that are legal (See Table 1, question no. 40), and even fewer (40%) received training in interviewing techniques (See Table 1, questions 40/41). On a more general note, the highest ranking sources cited for seeking external candidates (See Table 1, questions no. 21) was employee recommendations (73.33%), followed by the Internet (71.43%), and fairly close behind, newspaper ads (66.67%). Interestingly, even though employee recommendations was the single highest source of external candidates, less than half (40%) of the respondents responded yes to the question of there being an employee referral programme (See Table 1, question no. 22). Overview of Audit Findings: Diversity and Equal Employment Opportunity Contrary to the enthusiasm encountered in the review of the literature concerning the marketing opportunities promoting workforce diversity, the audit findings indicate a relatively low level of commitment to facing the challenges inherent to diversity. Only 60% of the audit respondents said their organisations had an equal employment opportunity policy (See Table 2,

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question no. 2). Of that 60%, only one-quarter (26.67%) have communicated that policy to all employees (question no. 4) or have trained all supervisors and managers in the proper implementation of the policy (question no. 5). On the issue of sexual harassment, while 73.33% (question no. 14) of respondents said their organisations had sexual harassment policies, only 46.67% have distributed that policy to all employees (question no. 16), and an even lower percentage of supervisors and managers (33.33%, question no. 17) have been trained in the proper implementation of the policy. As in the above categories, seeking employee opinions is given low priority. Seventy-three per cent of respondents said their organisations do not survey employees on the issue of equal employment opportunities and sexual harassment (question no. 32). Tables 1 and 2 are presented below depicting the actual questions responded to in the audit by the 13 graduate global aviation students/managers in this study: Summary and Conclusions The US airline industry appears to be in trouble on this front. In a study by the Better Business Bureau, data indicates that consumer complaints more than doubled between 1995 and 1999 (Lovelock and Wright, 2002, p.123). According to the American Customer Satisfaction Index (ACSI) that measures customers evaluations of the total purchase and consumption experience, both actual and anticipated, on an annual basis. Compared to four other industries (banks, stores, hotels, phone companies) between 1995 and 2000, airlines showed the sharpest deterioration in customer satisfaction (Lovelock and Wright, 2002, pp.123-124). A high correlation exists between customer satisfaction and satisfied employees. Furthermore, a high correlation exists between satisfied employees and world-class human resource practices as depicted in this article: employee and labour relations. A conceptual tool that can help an organisation to plan according to customer perceived value is to liken service delivery to a theatrical event. The customers experience of the service consists of a series of events that customers experience as a performance (Lovelock & Wright, 2002, p.64). This experience is most visibly affected by an organisations contact personnel (actors) but can be equally affected by back office staff (back stage) as well. In response to the need to optimise work performance by line and administrative staff, service organisations are slowly adopting the philosophy of internal marketing. Broadly speaking, internal marketing may be understood to mean two interrelated concepts: one, that even employees and departments not having direct contact with external customers are still suppliers of something which adds value for internal customers, and thus indirectly for external customers as well; and two, internal marketing can be viewed as the use of traditional marketing techniques as communications

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Table 1: Recruitment and Selection Question Number Out of a Total of 62 Questions Yes, No, N/A (or other as indicated in the question box) %

3 5 6

14 16 21

22 34 35 36 40 41 43 47 58

Does authorisation for hiring a new employee require a 86.67, 6.67, 6.67 position description? Does authorisation for hiring a new employee require a 86.67, 6.67, 6.67 statement of the positions specific requirements (competencies, education, experience, and skills, both technical and special)? Is an attempt made to fill positions from within the Or- 93.33, 0.00, 6.67 ganisation prior to obtaining candidates from outside the Organisation? Does your Organisation have a policy regarding promo- 46.67, 40.00, tions? 13.33 If your answer to the previous question was yes, has that 33.33, 0.00, 66.67 policy been communicated to all employees? 71.43, 46.67, What sources are used for external candidates? [Choices: internet, search firms, employment agencies, 53.33, 40.00, schools, consultants, newspaper ads, professional jour- 26.67, 66.67, nal ads, professional associations, employee recommen- 33.33, 26.67, 73.33, 33.33, dations, job fairs, outplacement firms, downsizing/relocating employers, organisation publica- 26.67, 13.33, 13.33, 0.00, 6.67 tions, organisation marquees and signs, other.] Does the organisation have an employee referral pro- 40.00, 53.33, 6.67 gramme? Are any measurement devices such as tests used? 40.00, 6.67, [Choices are yes, no, sometimes, n/a] 46.67, 6.67 73.33, 6.67, 13.33 If your answer to the previous question was yes or sometimes, are such devices based on an analysis of the job? If your answer to Question 34 was yes or sometimes, 53.33, have such measurement devices been professionally 26.67,20.00 validated? Have all people who interview candidates been trained 46.67, 46.67, 6.67 in the types of questions and actions that are legal? Have all people who interview candidates been trained 40.00, 53.33, 6.67 in interviewing techniques? Are all position requirements based on an analysis of 86.67, 6.67, 6.67 the job? Does your Organisation require drug testing? 33.33, 60.00, 6.67 Is there an individual within the human resources de- 86.67, 6.67, 6.67 partment accountable for the entire selection and recruitment programmes?

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Table 2: Diversity and Equal Employment Opportunity

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Question Number Out of a Total of 45 Questions

Yes, No, N/A (or other as indicated in the question box) %

1 2 4 5 6 8 14 16 17 26 27 28 32 39

Is there an individual within the human resources de- 73.33, 26.67 partment accountable for ensuring the Organisation fulfils all equal employment laws and regulations? Does the Organisation have an equal employment op- 60.00, 40.00 portunity policy? If your answer to Question 2 was yes, has that policy 26.67, 46.67, been distributed or communicated to all employees? 26.67 Have all supervisors and managers been trained in the 26.67, 60.00, proper implementation of the Organisations equal em- 13.33 ployment opportunity policy? Does the Organisation have a grievance procedure for 46.67, 40.00, employees to redress perceived violations of the Organi- 13.33 sations equal employment opportunity policy? If your answer to Question 6 was yes, has the equal em- 33.33, 20.00, ployment opportunity policy been communicated to all 46.67 employees? Does the Organisation have a sexual harassment policy? 73.33, 26.67 If your answer to Question 14 was yes, has that policy 46.67, 33.33, been distributed or communicated to all employees? 20.00 Have all supervisors and managers been trained in the 33.33, 46.67, proper implementation of the Organisations sexual har- 20.00 assment policy? Have supervisors and managers been trained in what 46.67, 46.67, 6.67 constitutes sexual harassment? Have non-management employees been trained in what 40.00, 53.33, 6.67 constitutes sexual harassment, the Organisations sexual harassment policy and the grievance procedure? Do all of the Organisations advertisements for employ- 46.67, 46.67, 6.67 ment identify the Organisation as an equal opportunity employer? Have employee opinions on equal employment opportu- 13.33, 13.33, nity and sexual harassment been survey separately or as 73.33, 13.33 a part of a general employee opinion survey? [Choices: yes, no. do not survey such information, n/a] Does the organisation accommodate disadvantaged 80.00, 20.00 and/or disabled people whenever possible?

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devices to involve and motivate employees and gain their commitment to the corporate purpose (Holloway, 1998, p.170). The most obvious conclusion to be drawn from the results of the audit is how poorly understood the concept of internal marketing is in the airline industry. Airlines cannot offer optimal service to external customers because they do not know their internal customers very well {employees recruited and selected driven by the foundation of diversity and EEO}. Airline administrators via the literature and audit findings, appear to show little awareness of, and interest in, their own internal customers opinions and insights. Management also tends not to communicate many types of important information (with the exception of rules and regulations) to their internal customers (both supervisors and line personnel) and often do not provide sufficient internal services that would contribute to optimising internal customer performance (e.g. training and development). The reason for this lies in the poor state of human resource management in the airline industry. Shareholders and managers should be aware of these deficiencies. In broad strokes, HRM weakness gleaned from audit results for one of the major categories is as follows: Recruitment and Selection. Overall scores in the categories were fairly good with the notable exception that in spite of the fact that employee recommendations were the single greatest source for external candidates, less than half of the organisations were indicated as having an employee referral programme in place. Diversity and Equal Opportunity. Managers and supervisors are not well trained either in regards to issues surrounding equal opportunity employment and sexual harassment or in the proper implementation of related policies. There was also a low level of interest in surveying employees for their opinions on these matters. Recommendations Unless airline administrators begin conducting internal HRM audits in their own organisations, they will remain crippled by external issues e.g., endless price wars and shortsighted cost cutting binges. Airline administrators must make the connection between what their external customers value and how and why employees provide that value and more. The bridge linking customer value to employee performance is human resource management in general and recruitment and selection as well as diversity and equal employment opportunity. To this end the following four recommendations are offered: First, that airline administrators conduct audits of their respective organisations in order to ascertain the gaps between what they thought their airlines were doing and what they actually were doing. In other words, an audit constitutes both a reality check and a baseline from which to plan for the future.

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A second and related recommendation is that national and international regulatory bodies in civil aviation should collaborate on formulating an airline-specific HRM audit that could be readily adapted and used by individual airlines. An opportunity exists here for researchers in the field of HRM to conduct additional audits in the airline industry. The third recommendation is that airlines appoint a person whose responsibility it is to conduct timely employee opinions surveys on the following subjects: organisation culture, organisation leadership, employee relations, equal opportunity employment and sexual harassment, and benefits preferences. The results of the surveys should also be communicated to all employees. The fourth recommendation also deals with information gathering. Information should be gathered in respect to such industry and organisation relevant items as recruitment, selection, benefits, compensation, costs and employee productivity. These results need to be communicated to employees.

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References 1. Appelbaum, S.H. (2001), Course Syllabus, Human Resource Management, Course designation number, AMBA624. Spring, John Molson School of Business, Concordia University,Montreal. 2. Benoff, B. (2001), Hiring the Right Technician, Business & Commercial Aviation, Vol. 89, No. 6, Lexis-Nexis, Reed Elsevier. 3. Czaplewski, A. J., Fersuon, J. M. & Milliman, J.F. (2001), Southwest Airlines: How Internal Marketing Pilots Success, MM, September/October, ProQuest, ProQuest Information and Learning Company, pp.14-17. 4. Eaton, J. (2001), Globalization and Human Resource in the Airline Industry, 2nd ed. Ashgate Publishing Ltd., Aldershot, UK. 5. Ellis, K. (2001), Vice President of People, Southwest Airlines, Training, January, Vol. 50, ProQuest, ProQuest Information and Learning Company, pp.46-48. 6. Falter, J. (2000), The Company as Family: Perceived Strengths of Duncan Aviation, PhD Dissertation, University of Nebraska, Lincoln Nebraska. 7. Female Workers, Attorney Claim FAA Workplace is Sexist, (2002), Federal Human Resources Week, Vol. 8, No. 3, February 4, Lexis-Nexis, Reed Elsevier. 8. Fitzgerald, K. (2001), Diversity Turns Airline Around: Continental Rebound has Roots in Programs to Hire, Keep Minorities, Advertising Age, February 19, p.s6. 9. Goeters, K. M. (ed.), (1995), Psychological Evaluation of Pilots: The Present Regulations and Arguments for Their Application, in Johnston, N., Fuller, R. and McDonalds, N. (eds.), Aviation Psychology: Training and Selection, Ashgate Publishing Ltd., Aldershot, UK, pp.149-156. 10. Good, W.A., (1999), Intellectual Capital and Wealth Creation: A Case Study of Total Quality Management at a Large Cargo Aircraft Operator, PhD dissertation, Colorado Technical University, Denver, Colorado. 11. Hedge, J.W., Bruskiewicz, K. T., Borman, W.C. & Hanson, M.A. (2000), Selecting Pilots with Crew Resource Management Skills, International Journal Aviation Psychology, Vol. 10, No. 4, pp.377-392. 12. Hendersen, Danna K. (1995), The Drive for Diversity, Air Transport World, Vol. 9, Lexis-Nexis, Reed Elsevier. 13. Holloway, S. (1998), Changing Planes: A Strategic Management Perspective on an Industry in Transition: Volume One: Situation Analysis. Aldershot: Ashgate Publishing Ltd. Global Aviation Human Resource Management

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