Exploratory Case Study of Lufthansa Airlines Employee Retention Pract

Question: Discuss about the Exploratory Case Study of Lufthansa Airlines for Employee Retention Practice. Answer: Introduction The proposed research revolves around the need for the employee retention practice. Employee retention is referred to the techniques applied by the management to help the employees in sticking to the organization for a long time. There have been many cases where the employees leave the organization due to some particular reasons. Some of the employees may find different jobs or some of the employees leave the company due to low pay scale, heavy work load. Thus, to deal with these issues, it is necessary for the organization to implement the required employee retention strategies (Frey, Bayn and Totzek 2013). In order to understand the employee retention practices, the current operation of the organization Lufthansa German Airline has been considered. The organization is considered as one largest airline organization in Europe and it has been running the operation over a long period. However, the organization is currently facing some issues related employee turnover. Aims, objectives and Questions The aim of the proposed research is to investigate the employee retention strategies that contribute to attract the employees to stick to the organization through focused recruitment. In addition, the research also aims to find out the factors that cause employee turnover in the organization (Ganesan and Badrinath 2012). The research proposes to implement the necessary employee retention strategies that could help to keep the potential employees in the organization. It is evident that the employees always look for better opportunity such as career growth, increased salary, healthy work environment and other opportunities. It is also evident that the skills retention could depend on the human resource activities within the organization. As mentioned Ahammad et al. (2016), the issues of recruitment may not be the major reasons of high employee turnover in the organization. In this context, Bode, Singh and Rogan (2015) added that apart from providing the required facilities to employees , it is also necessary for the leaders to keep the employees motivated. In addition, there have been multiple factors associated with the employee turnover in the organization. The proposed research investigates the factors to provide the suitable solutions against the issues. Many studies have been performed on employee retention that suggests that employee retention could start at the job description, recruitment, selection as well as the orientation stage (Grissom 2012). The authors have arguments that these four aspects mentioned above could help to establish the foundation of the retention strategies that an organization could adopt. This study will focus on the general aspects such as employee satisfaction and reason behind job change. In order to identify those factors, this study will further investigate the way Lufthansa treat their employees (Haar and White 2013). Financial interest is one of the major reasons, which influence employees for taking a job change decision. However, there are several factors rather than financial interest, because it is highly important to motivate the employees with other motivational tools. This research will investigate how the managers motivate the employees of Lufthansa Airlines. The research objectives are as follows: To investigate the importance of employee retention in airlines industry To critically evaluate the employee retention strategy of Lufthansa Airlines To identify the potential issues employee retention strategies of Lufthansa Airlines To provide suitable recommendations to the Lufthansa for improving their employee retention strategies The research questions are as follows: What is the importance of employee retention in airlines industry? What are the employee retention strategies adopted by Lufthansa Airlines? What are the issues faced by Lufthansa Airlines while implementing employee retention strategies? What should managers of Lufthansa Airlines do in order to improve employee retention? Methodology This study is based on primary data collection process and therefore, quantitative and qualitative data collection technique will be applied. In order to derive accurate research result, appropriate research tools and strategies has been selected. The relevant information regarding the study has been gathered by conducting interview and survey session with the employees and managers of Lufthansa Airlines. Following are the chosen research methods for this study along with the justifications. Research Philosophy Research philosophy helps to gather relevant information regarding the study. Several philosophies support different type of study topic. For example, the selection of philosophy depends on whether the research is based on primary or secondary (Mackey and Gass 2015). Positivism, realism and Interpretivism are three types of research philosophies. The positivism philosophy helps to gather factual data regarding the research topic. Interpretivism philosophy of research helps to identify the social cause behind the research topic (Smith 2015). On the other hand, realism philosophy is the mixed approach of the above-mentioned philosophies. Justification of research philosophy (Positivism) In this study, positivism research philosophy will be selected. This philosophy will assist the researcher to gather relevant information regarding the topic (Flick 2015). In this study, it is important to understand the satisfaction level of the employees and therefore, employees viewpoint regarding retention strategy of Lufthansa Airlines is the most important data for this study (Hartas 2015). Therefore, it can be said that selection of this philosophy will be most effective for this research. Research Approach Approach of the researcher helps to evaluate the research variables with the help of appropriate models and theories (Katz 2015). There are two kinds of approaches such as inductive and deductive. The inductive approach helps the researcher to frame new models and theories for evaluating the variables. On the other hand, deductive approach helps to evaluate the existing theories and models for understanding the research variables (Clement et al. 2015). Overall, research approach is a tool, which helps to gain knowledge regarding the study topic in an efficient manner. Justification of chosen research approach (Deductive) In this study, deductive research approach will be selected in order to evaluate employee retention procedures of Lufthansa Airlines (McNabb 2015). Moreover, this approach will also help the researcher to implement motivation theory for understand how employees of Lufthansa Airlines are motivated by the managers. Research Purpose The purpose of the research should be clear and specific to the researcher. Therefore, the researcher needs to understand the research topic before initiating the study. There are three kinds of research purposes, which have different utilities (McCusker and Gunaydin 2015). The selection of research purpose depends of the type of research. Explanatory, exploratory and descriptive are the major research purposes in which explanatory purpose helps to build relationship within the research questions and the topic (Hussein 2015). The exploratory purpose helps to understand the background of the study and therefore, it became possible to identify the potential issues associated with the study topic. Apart from that, descriptive purpose helps to explain the study topic in an efficient manner. Justification of research purpose (Descriptive) In this study, it is highly important to evaluate the variables of the study topic. Therefore, the researcher will select descriptive research purpose in order to understand the defined variables (Keutmann et al. 2015). It will further help the researcher to set appropriate research milestones and questions. Thus, it can be said that selecting descriptive purpose will help the researcher to derive accurate research result. Research Strategy Research strategy helps to gather relevant data regarding the research. There are different process of data collection such as case study, survey, interview and focus group. These strategies have different use and therefore, the researcher needs to select the strategy after understanding the research topic accurately (Dumay and Cai 2015). If the research topic is based on primary study, then interview and survey will be the most appropriate process. On the other hand, case study and focus group strategy will be the appropriate strategies for secondary research. Justification of research strategy This study is based on primary data collection and therefore, the researcher will choose survey and interview as the research strategy. In this process, the researcher will be able to conduct survey session with the employees of Lufthansa Airlines and interview process with the managers (Mackey and Gass 2015). Adopting this strategy would be easy for the researcher to understand the reasons behind employee dissatisfaction. Therefore, it can be said that the selected research strategy is appropriate for this research (Hartas 2015). Sample selection In this study, the researcher will select 50 employees of Lufthansa Airlines in order to conduct the quantitative process. On the other hand, 3 managers of Lufthansa Airlines will be selected for the qualitative technique. Literature Review Employee retention is one of the major concepts in business management. Employees are indispensable asset of a company and thus key attention is required to be thrust on policies and methodologies of retaining them. The importance and the need of the employee retention is carefully studied in the light if the operations and functioning in Lufthansa German Airline. Concept of Employee Retention The concept of employee retention revolves around the fact of retaining employees in the organization. It has to be seen that employee turnover is one of the common phenomenon in an organization. The concept of employee retention outlines and highlights the importance of retaining the employees within the organization and enabling them to remain in the company. It stresses on the tactics and strategies employed to hold back and stop the employees from leaving the company (Hong et al. 2012). Employers make necessary efforts to retain certain employees from leaving the company and consequently strengthen the workforce of the company. It can be said that employee retention is a strategy that is needed to be adopted to address the impending issues and threats to the company. For understanding employee retention, one has to understand the concept of employee turnover and the factors circulating it. Employee turnover stresses on the number of employees joining and leaving the a company. Labor turnover is one of the common problems that is existing in an organization. It arises out of dissatisfaction of the employees mainly on the grounds of remuneration, fair treatment and future scope. Employee turnover usually brings about major issues and hindrances for the company. It also increases the unnecessary expenses of the company and indirectly affects the profitability of the company. Employee retention is the strategy to employee turnover (Hong et al. 2012). High employee turnover has a significant bearing on the image and the management of a company. Therefore, the two terms employee retention and employee turnover are key concepts for management of a company. Employee Motivation Employee motivation is a very key and vital concept to be studied in employee retention and turnover. It has to be seen that employee turnover arises due to certain dissatisfaction factors on the behalf of the employees mainly on the grounds of lack of pay scale, unfriendly work atmosphere, excessive workload, lack of future growth of the employee followed by lack of incentives(Grissom 2012). The morale and the motivation of the employee need to be specially attended by the employers since it has a direct bearing on the motivation and morale level of the employee. The higher the morale, the lower is the turnover quotient. Understanding motivation and morale of an employee is a tricky aspect and is a subjective topic (Haar and White 2013). Maslows Theory of Needs Abraham Maslow proposed and propounded a theory on human needs based on human psychology. This theory was based on careful observation made on human psychology and the different hierarchy of human needs. The hierarchy is depicted in the form of pyramid and the basic needs at the bottom (Frey, Bayn and Totzek 2013). It is important to understand the hierarchy of human needs. There are five levels of human needs that are based on the psychology of human nature. These five levels begin with psychological needs that is the basic need and the physical need of an individual (Patel and Conklin 2012). Safety needs is the need of economic and physical need required by an individual. Love belonging need is the next level, where an individual desires for love and belonging from family and friends. It highlights the need of social acceptance and belonging among humans as this is a very strong concept for humans. Love and belonging play an important role in the psychological and motivation level of a human being. Social esteem need is another important need of humans as humans have a major social need of having social prestige and reputation. It is the self-esteem and self respect of an individual that is very important. It is critical to see that recognition and respect from society is an indicator of contribution and value. Finally, one can study the need of self-actualization for an individual (Patel and Conklin 2012). It is important for an individual to recognize the self-actualization need, whether need and requirement of an individual meets his own standards. It is important for companies to look after motivation and morale of the employees because it the satisfaction of human needs is directly proportional to the motivation of the employee. In Lufthansa, since 2007, there has unrest and tension among employee due to management crisis and incidents of strikes and workplace tension has been evident. This has been due to the lack of motivation among employees and the s tringent workplace atmosphere in Lufthansa. On comparing it with Ryanair and International Airlines Group, it can be seen that employee turnover has higher, where the turnover in the last five years has increased by 23% (Terera and Ngirande 2014) Factors that affect employee retention and employee turnover Pay scale Pay scale is said to be the biggest determining factor in a company. The employee motivation is heavily dependent on the pay scale of the employee (Ganesan and Badrinath 2012.) It has to be seen that a better pay scale increases the chances of employee retention and reduces the chances of employee turnover. In Lufthansa there have been cases of dissatisfaction among employees regarding hike in pay and the existing pay scale. Since 2007, there has been a rising trend in employee turnover due to low pay scale (Ganesan and Badrinath 2012.) Management Management holds a vital place in employee retention and turnover. It can be seen that the decision taken by management has a direct impact on the company. In Lufthansa, the role of management in retaining employees has been poor with strikes and lockout being a conspicuous element. Poor industrial relations made the relations between the employer and the employee weak since 2007 (Frey et al. 2013). Safety reasons and fair treatment Safety and fair treatment forms the spine of employee retention and employee turnover main reason. The work atmosphere and the element of safety is a major deciding factor of employee retention. In Lufthansa, the recent cases of hijacks and accidents have been the negative factors in causing employee turnover (Bode et al. 2015). Primary and secondary data In this study, both primary and secondary data will be collected from different resources. In case of the primary data collection process, the researcher will communicate with the employees and managers of Lufthansa Airlines. The researcher will select survey and interview tools for gaining access to the primary information. The researcher will conduct online survey process in order to gather maximum number of responses. The interview session will help the researcher to understand the employee retention strategies of Lufthansa Airlines in an effective manner. On the other hand, the researcher will gather secondary information from authentic resources such as journals, news articles and previous researches on similar topic. This process will help the researcher to gain knowledge regarding the research topic in an efficient manner. Following is the process that will be undertaken for conducting primary and secondary data collection. Primary data collection In this data collection process, the researcher will conduct survey and interview session with the employees and managers of Lufthansa Airlines. The data collection techniques adopted in this study is quantitative and qualitative technique. Following is the discussion about how the researcher will conduct survey session with the employees. In this process, the researcher will conduct online survey session in which the respondents need to provide their viewpoints regarding the research topic. Secondary data collection In this process, the researcher will gather relevant information from authentic sources such as journals and websites. Secondary data will help the researcher to increase knowledge regarding the research topic. In this section, the researcher will utilize the academic sources in order to review previous researches on this topic. Project Schedule Steps Description Due date 1 Preparation Stage Week -1-2: Area of interest identified 15th Aug Weeks 3-4: Topic selected/form submitted 29th Aug Weeks 4-5: Topic refined to develop dissertation proposal 7th Sept Weeks 5-8: Proposal written and submitted 15th Sept 2 Chapters 1-3 completed Chapter 1 Draft Introduction completed 20th Sept Chapter 2 Draft Literature Review completed 25th Oct Chapter 3 Draft Research Methodology completed 7th Nov 3 Collection of data and information Data analysis and Interpretation of data 25th Nov Chap 4 Draft Results, Analysis and Discussion completed 7th Dec Chapter 5 Draft Conclusions, Implications recommendations 15th Dec 4 Final Writing up 1th Jan Structure, presentation and proof reading 5th Jan 5 Final Stage 10th Jan Final proof reading, printing and binding 15th Jan 6 Submission of Project (WOLF and hard copy submission) 20th Jan Table 1: Time Table The research will be completed through the above-mentioned steps. In this study, the researcher will complete all the activities within the due date mentioned. There are several steps has been mentioned in this section and the researcher will perform the activities with the help of appropriate tools and techniques. The researcher has provided the deadline for each activity. In order to complete the dissertation, it is highly important to complete each activity within the defined deadline. In this manner, the researcher will be able to derive accurate research result in an effective manner. Moreover, the time defined by the researcher is appropriate and realistic as well. Following is the discussion regarding how the researcher will perform each step mentioned in the action plan. Preparation Stage In this stage, the researcher will identify the area of interest, which is the primary and most important part of the research. Identifying the area of interest helps the researcher to select employee retention and motivation as the study purpose. The selected topic for this study is need for employee retention practice of Lufthansa Airlines. This study topic will help the researcher to identify the employee retention strategy of the company along with the probable issues. Therefore, the researcher would be able to evaluate models and theories based on employee retention and motivation. After selecting the study topic, the researcher will develop the research proposal in which the researcher will provide the outline of the research including research methods and literature review. The reason behind developing the proposal is to propose the chosen research outline and to give a brief description of the study variables. The purpose of developing the proposal is to present the importance of the identified research topic. The chosen research topic is to evaluate employee retention strategy of Lufthansa Airlines, which will help the company to retain their new and existing employees within their organization. Moreover, this study will help the managers of Lufthansa Airlines to understand viewpoint of the employees regarding their satisfaction level. Therefore, it can be said that this study will help the company to identify their strategic issues, which affects employee retention negatively. The recommendations of this study will help the organization to improve their retention practices in an effective manner. Chapter 1 to 3 In this section, the researcher will provide introduction of the study topic. In this section, the research aim, objectives and questions will be defined. Moreover, a brief background of the study topic will be provided in this section. The researcher will provide the rationale of the study, which provides the reasons behind selecting the study topic. After that, the researcher will conduct a brief literature review based on the research topic. In this section, the researcher will gather relevant information from authentic journals and articles. Moreover, the researcher will evaluate different models and theories in order to evaluate the research variables. In this activity, the researcher will also provide the chosen research methods and techniques. For example, the researcher has selected primary data collection process in this step and has selected qualitative and quantitative technique. Selection of appropriate research method will help the researcher to reduce error percentage o f the outcome. This process is time consuming and need depth understanding on business research. Therefore, the researcher will gather knowledge regarding different research methods from business journals. Apart from that, the researcher will define the appropriate sample in this section. The sample selection will take a minimum time. However, communicating with the respondents will take long time because in this section the researcher will influence the respondents to share their responses. The literature review is the most time consuming activity in which the researcher will gather information from authentic resources. The researcher will conduct secondary data collection process in this section. Moreover, the researcher will provide viewpoints of different researchers along with valid examples. Collection of Data and information In this section, the data collection and evaluation will be done. In order to initiate this section, the researcher will select appropriate data analytical tools such as statistical tools. The researcher will conduct survey and interview session respectively with the employees and managers of Lufthansa Airlines. After that, the discussion of the analysis will be dome in this section. The researcher will derive the mean, median, mode and standard deviation in order to analyze the gathered data. Moreover, the researcher will summarize the entire research and provide a constructive conclusion of the study. The researcher will also provide suitable recommendations after identifying the probable issues faced by Lufthansa Airlines. In order to analyze the secondary data, the researcher will review the gathered data carefully and then will provide the conclusion from the understanding. Apart from that, the researcher will provide suitable recommendations at the end of this research paper. Final Writing up In this section, the researcher will write the final dissertation by following the appropriate structure. There will be so many mistakes and therefore, the researcher will conduct proofreading in order to rectify the issues. Crosschecking for rectifying all the existing issues will be dome in this section. In this section, the researcher will print the entire study and submit the assignment before the proposed deadline. Before submitting the study, the researcher will correct all the identified errors in data collection and evaluation section in order to improve the research outcome. Apart from that, the researcher will farther conduct a proofreading in order to ensure that the paper does not have any error and ready to submit. Self-Reflection Employee retention indicates the important aspects of the business that facilitates organizations to uphold an enhanced workforce management in the business. As per my point of view, employee retention provides competitive benefits enhancing the business opportunities in an efficient manner. There are several resources for creating employee retention strategies. Most of the time, the small and medium size enterprises face difficulties for retaining their existing employees in the business. It depends on different resources of business including new hire orientation, corporate culture, employee communication, and teamwork. Through the engagement of the employee retention process, the organization can maximize the profit in a systematic manner. In this particular dissertation, the researcher has provided the brief discussion on the topic of employee retention. Through the engagement of the detailed analysis of the rationale of the research topic, the researcher has identified current issues on the research topic. I think the research rationale allow the researcher to identify the key research areas. The researcher has provided the research rationale along with the aims and objectives of the research topic. The aims and objectives of the research facilitate the researcher in conducting the research in an efficient manner. The researcher has set different objectives of the research topic including challenges and impacts of employees retention of the business. In this context, the researcher has developed the research rationale, aims, and objectives of the research based on the employee retention issues at Lufthansa German Airline. In recent years, the particular organization has been trying to implement new and enhanced stra tegies for diminishing the employee retention issues from the business. In the second chapter, the researcher has provided a brief literature review on the research topic. As per my point of view, literature review facilitates the researcher to identify the key issues of the topic. In the literature review section, the researcher can utilize different viewpoints of authors in highlighting the challenges of employee retention in the business. With the involvement of analyzing different viewpoints, the researcher could enhance the quality of the research in an effective manner. In this particular context, the researcher has provided the concept of employee retention. I think different theoretical aspects of the employee retention have provided adequate understanding on the research topic. The researcher has discussed the Maslows Theory of Needs for highlighting the human psychology in an appropriate manner. Through the engagement of analyzing Maslows theory of needs, the researcher highlights different steps of human needs including psychological, safety, love or belonging, esteem, self-actualization. As per my point of view, Maslows hierarchy of needs has beneficial aspects including perspective insight into the human nature. Hence, it can be assessed that the particular theory facilitates the researcher in evaluating the distinct needs of human. Moreover, the researcher has provided the different factors affecting employee retention and staff turnover in an efficient manner. I think different factors of employee retention such as pay scale, management, safety reasons and fair treatment have enlightened the challenges for retaining employees in the business. Hence, it can be addressed that the literature review plays an important role to enlighten the research topic in an effective manner. As per my point of view, different tools and techniques employed in the third chapter facilitate the researcher in executing the research. Research methodology is one of the indispensable parts of the research, as it contributes in collecting data and information for analyzing the research topic of employee retention. In this context, the researcher has engaged the deductive approach for investigating a topic in an effective manner. The deductive approach consists of four primary steps including theory, hypothesis, observations and confirmation or rejection. In the primary research method, a deductive approach is the most authentic process to analyze the theory and hypothesis in a detailed manner. As per my point of view, the deductive approach explores known theory on the employee retention. On the other hand, the researcher has employed primary data collection. In this context, the researcher has included both qualitative and quantitative analysis for investigating the research topic in an efficient manner. I think qualitative analysis provides a detailed discussion on the research topic, as the particular analysis depends on the feedbacks of the participants. In this context, the researcher has engaged three key professionals for conducting the qualitative analysis. On the other hand, the researcher has also engaged the quantitative analysis depending on the feedbacks accumulated from the respondents. In this context, the researcher has involved the 50 employees of the organization called Lufthansa German Airline to accumulate feedbacks based on the current market statistics. I think the qualitative analysis provide the viable data on the research topic that facilitates in enhancing the quality of the research in an appropriate manner. The researcher has included both survey and interview for accumulating the information on the research topic. As per my point of view, probability sampling technique indicates the most authenticate method for selecting participants or respondents as it reduces bias from the research execution process. However, the researcher has involved both probability and non-probability sampling technique in this research. Probability sampling technique has been employed for selecting respondents, whereas the researcher utilizes non-probability sampling technique for identifying the key professionals of the business. Hence, I can assess that both qualitative and quantitative analysis facilitate the researcher in engaging statistical analysis on the research topic. The particular research topic highlights the issues of employee retention at Lufthansa German Airline. Through the engagement of different theoretical approaches, the researcher could able to investigate the research topic in an effective manner. As per my point of view, different tools and techniques allow the researcher to accumulate adequate data on the research topic of employee retention. Hence, it can be assessed that the particular dissertation provides adequate opportunity to the researcher in investigating the future research project in an appropriate manner. On the other hand, the rationale of the research allows the researcher to identify the key issues on employee retention at Lufthansa German Airline. After going through the previous researches, I came to know that employee retention is the prime concern for the airlines industry. Airlines industry is service based industry, where employees are responsible for satisfying the consumers. Therefore, it is highly important t o motivate the workforce for improving their performance quality. As per my understanding, Lufthansa Airlines is one of the leading airline companies of German market in terms of profitability and brand image. Therefore, the managers of the company need to pay close attention to the employee retention and motivation. After conducting the literature review, I came to know that there are different strategies that have been adopted by Lufthansa Airlines. The purpose of adopting these strategies is to satisfy the employees needs and demands. In case of airlines industry, the organizations are paying close attention to the employee satisfaction level. However, literature review in this topic shows that the company should focus on the financial strategies. For example, the company needs to provide salary hike to the employees in order to improve retention. Apart from that, different motivational tools should be implemented in order to attract new employees. In this manner, the company will be able to reduce employee turnover in an effective manner. 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