How To Know More About The Airports Company Of South Africa

Transcription

1 FINAL EXAMINATION PROGRAMME: MASTER OF BUSINESS ADMINISTRATION (MBA): GENERAL AND TOURISM- YEAR ONE MODULE: HUMAN RESOURCE MANAGEMENT INTAKE: JANUARY 2012 DATE: 11 JUNE 2012 TIME: 09h00 12h00 DURATION: 3 Hours TOTAL MARKS: 100 EXAMINER: Mrs L Imandin MODERATOR: Mr O Seedat INSTRUCTIONS TO THE CANDIDATE: 1. Questions must be attempted in the answer book provided. 2. All queries should be directed to the invigilator; do not communicate or attempt to communicate with any other candidate. 3. You have THREE HOURS to complete this paper. You are not allowed to leave the examination room within the first hour and in the last 15 minutes of this examination. 4. This is a CLOSED BOOK examination. 5. Answer ALL questions from Section A and ANY TWO (2) questions from Section B.

2 1 SECTION A Read the following case study ans answer ALL questions that follow [60 MARKS] Airports Company South Africa's (ACSA's) mission is to create, develop and manage world -class airports to the benefit of all stakeholders. This is achieved within the context of the company's vision: to be a leading, world-class airports business. The company is well on its way to realising this vision, having won a number of prestigious local and international awards recognising not only its operational excellence, but also its customer service and the talent of its leadership ACSA's list of accolades points to an organisation that is performing well across all areas of operation. According to Skytrax, a global airports review, O.R. Tambo, Cape Town and King Shaka International Airports were named the first, second and third best in Africa, respectively, O.R. Tambo International Airport was also named the most improved airport in the world in ACSA has, furthermore, received stakeholder recognition awards - important, because the company strives to offer outstanding end-to-end customer service - while the establishment of King Shaka International Airport was recognised as the Best Risk Initiative in the Engineering and Construction Industry by the Institute of Risk Management in South Africa. ACSA plays in the commercial space too, with the InterContinental Hotel at 0. R. Tambo International Airport voted Best Airport Hotel in Africa by Skytrax. 'We are proud that we successfully developed all the infrastructure required for South Africa to host the 2010 FIFA World Cup. We received a number of awards recognising our management of the event's process,' re - veals HR Executive, Pieter du Plessis. He adds that the company has garnered positive international recognition, thanks to the development of capabilities in the 17 years since its establishment. In recent years, it beat competitors like Schipol to win a tender to manage Mumbai International Airport, a contract which is now in its fifth year. 'We have invested R17 billion in infrastructure development over the past three years,' du Plessis continues. Most significant in this regard is the development of King Shaka International Airport, a greenfield development, which has seen KwaZulu-Natal's sugarcane fields transformed into an international travel hub. Yet a further highlight is the fact that ACSA's Managing Director, Monhla HIahIa - the 2005 winner of Businesswoman of the Year - is president of the Airport Council International's African chapter, an important development in terms of ACSA's emerging strategy for African expansion, says du Plessis. A culture of looking forward Mari Odendaal, Group Manager - Resourcing and Organisational Development, points out that ACSA's impressive

3 2 complement of awards indicates the company's accent on innovation. An example of how this thinking mani fests itself is the establishment of an Airport Management Centre at O.R. Tambo and Cape Town International Airports. This system brings together all data and information related to passenger, aircraft and baggage facilitation to create a holistic view of the airport in real time. This single source of truth makes it possible to identify and address issues impacting the on-time performance of the flights, and through collaborative decision-making, all stakeholders are involved in making the airport more efficient. This is extremely valuable in an environment where so many different stakeholders affect the end-to-end value chain and where processes are extremely complicated. The company has also embraced technology as a tool for communicating with passengers, from online check-in to customer service interventions conducted via Facebook and Twitter. In fact, in 2008 the company won the Vodacom WASP Award. This prestigious annual award recognises Vodacom's Best Performing Business Partners. Moreover, in 2009 ACSA was awarded the Runner-up Accolade for Best Innovation. ACSA has recently implemented an integrated ERP system, which provides technological support across all operations. The organisation used technology to enhance its maintenance capabilities by implementing a computerised management maintenance system, which helps to contain costs and optimise processes. The company has sought to improve the customer experience by focusing on end-to-end processing, and seeking to improve all customer touch points according to specific targets. Odendaal notes that these projects have been implemented by employees. 'We actively reward employee contributions at an operational level,' she notes. While this approach is doubtlessly key to creating a culture where employees feel empowered and encouraged to share their views, the introduction of senior management focus groups also plays a role. Offering a career kaleidoscope 'The benefit of the ACSA environment is that, because the organisation's operations are so diverse, we offer a variety of career opportunities, from commercial activities such as property development and retail to compliance experts specialising in safety and security,' says du Plessis. He notes however that people need a particular character in order to thrive in this environment, as it tends to be more complex than other industries.

4 3 Talent management is a priority, as indicated by the existence of a Talent Board, which is chaired by MD Monhla HIahIa, with Regional Talent Committees in place. The Board oversees issues such as succession planning, retention and development. The Talent Board identifies critical positions within the organisation, based on the strategic objectives of the company. A gap analysis is conducted to match candidates to potential roles, where required. A development plan is then formulated to help the individual fill the new role, which is subsequently carefully managed and monitored. This above process is supported by a technologically advanced tool to support talent identification and mapping, including a full menu of behavioural competencies, technical knowledge, experience and skills needed to fill a specific role. These success profiles inform the recruitment and selection methodology used, from position definition to appointment. Thanks to the company's career lattice, there is enormous mobility throughout the organisation, and lateral moves, as well as secondments, are common. 'We have in place a structured career progression tool which helps people understand the demands of that current position, and any other positions within the company. This tool assists employees to articulate and structure their career development options within the array of opportunities within ACSA. The required development interventions are available online and therefore easily accessed,' explains Zogan Opperman, Group Specialist: Talent and Performance Management. The in-house Training Academy offers specialised training in Aviation Safety, Security and Fire & Rescue. The academy has been accredited locally by the Transport Education and Development Authority, and internationally by the International Civil Aviation Organisation. The academy also focuses on the provision of technical and functional skills, and skills development, an area which encompasses ACSA's internship, learnership and apprenticeship programmes. Through the latter initiatives, ACSA is actively working to increase female participation in the aviation industry. Added to this, ACSA also supports other national initiatives such as the TechnoGirl programme, while Group Manager: Training and Development, Tebello Mokhema, works closely with HIahIa to create opportunities for women through networking and empowerment. Training interventions range from individual coaching to a customised Management Development Programme delivered through GIBS, international training opportunities, as well as supervisory development. ACSA's management team agrees that a career at ACSA is an attractive proposition for many reasons. In striving to create a conducive work environment, ACSA offers tools to enhance work/life balance, such as remote on-line accessibility and 3G connectivity and wireless-enabled technology for relevant positions. Furthermore, short- and long-term incentives are applicable, all of which form part of the retention strategy. However, the company also takes a personalised approach in this regard, by inviting individuals to complete a questionnaire which helps to gauge motivation levels. Interventions are then structured to address any issues identified through this process.

5 4 Added to this is the glamour and excitement of being part of a company where, literally, anything can happen at any time of the day. Even our Trolley Assistants are exposed to exciting people on a daily basis,' muses Sylvia Bruckner, Human Resources Manager: HR, Cape Town International Airport. The ACSA remuneration policy aims to remunerate employees, on average, at the 50th percentile in the market. For scarce or high-demand skills, it pays above the 50th percentile, which du Plessis says 'allows us to attract quality candidates'. A short-term, performance-based incentive bonus scheme is in place and is linked to job level and content. ACSA is one of very few companies that offer incentives to all employees, including entry-level occupations. Executives participate in a performance-based, long-term incentive scheme, and plans have recently been approved to introduce an equity-linked scheme, available to all staff. Other benefits include retirement, death and disability cover, medical aid, a housing and accommodation assistance plan and leave benefits that exceed the legislated minimum. Employees who are unable to continue working may receive extended remunerated sick leave until they are able to receive disability benefit. An employee wellbeing programme offers access to counselling and wellness days. A unique culture 'We are a proudly South African company and, as South Africans, our people feel proud to be part of ACSA and all it does for the country,' says HIahIa. The company carefully guards its singular culture, and all potential candidates undergo rigorous scrutiny to ensure that future staff members share the company values, which are encapsulated in the acronym PRIDE: Passion, results, integrity, diversity and excellence. QUESTION Critically analyse how ACSA s many advances in sophisticated technology highlights the company s accent on innovation. 1.2 Discuss how the HR practices at ACSA are aligned to support the use of technology across the organisation. QUESTION 2 Analyse ACSA s talent management and development strategy highlighting how this strategy has contributed to the organisation being able to successfully manage in a global economy. QUESTION 3 Discuss how ACSA through their training interventions, can be considered as having a high -leverage training strategy related to business needs.

6 5 SECTION B Answer ANY TWO (2) questions [40 MARKS] QUESTION 4 One of the biggest challenges for any organisation is the recognition of the link between organisational strategy and HR strategy and HR practices. Discuss the concept of Strategic Human Resource Management (SHRM), including in your discussion how organisations can overcome this challenge through the involvement of HRM executives during the strategic formulation process. QUESTION Discuss the important challenges that organisations must face when developing pay levels to be able to offer market-related salaries. 5.2 Outline the nature of the unique benefits that organisations offer its employees as a means of differentiating themselves in the eyes of current or prospective employees. QUESTION 6 A recent trend in performance appraisals for management development is the use of upward feedback and the 360- degree feedback. Discuss this approach to performance management highlighting the benefits and limitations. END OF PAPER