25

INTEGRATED BUSINESS

NGUYEN NGOC MAI

CLASS: FB2-A

DATE OF SUBMISSION: APRIL 4, 2011

FOREIGN TRADE UNIVERSITY

UNIVERSITY OF BEDFORDSHIRE

SCIENTIFIC AND HUMAN RELATIONS MANAGEMENT

IN THE 21ST CENTURY

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TABLES OF CONTENTS

ABSTRACT 3

1. INTRODUCTION 4

2. SCIENTIFIC MANAGEMENT 5

2.1 Definition...............................................................................................................5

2.2 Origination and Contributors.................................................................................5

2.3 Principles................................................................................................................5

2.4 Influences on organization.....................................................................................6

2.5 Applications...........................................................................................................6

2.6 Strengths and weaknesses......................................................................................6

3. THE HUMAN RELATIONS MOVEMENT 8

3.1 Definition...............................................................................................................8

3.2 Origination and Contributors.................................................................................8

3.3 Principles................................................................................................................8

3.4 Influences on organizations....................................................................................9

3.5 Applications...........................................................................................................9

3.6 Strengths and weaknesses....................................................................................10

4. MANAGEMENT IN THE 21ST CENTURY11

4.1 Features of 21st century management...................................................................11

4.2 Factors reshaping and redefining management....................................................12

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5. THE APPLICABILITY OF THE TWO APPROACHES IN THE MODERN

WORLD 13

6. CASE STUDY: EASYJET 16

6.1 Background information about EasyJet...............................................................16

6.2 EasyJet low-cost strategy and scientific management.........................................16

6.3 EasyJet human resources policy and the Human Relations Movement...............18

7. CONCLUSION 21

8. RECOMMENDATIONS 22

9. REFERENCES 23

10. APPENDIX 25

ABSTRACT

The essay revolves around the central question: Are the scientific and human relations

management still applicable to organizations in the 21st century? The key issues consist

of:

- The theory about scientific and human relations approaches

- Management in the 21st century

- The applicability of the two approaches in the new context

- Case study: EasyJet

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1. INTRODUCTION

Management, a process of getting things done, effectively and efficiently with and

through other people, has been practiced since a long time ago. Its long history can be

traced back to over 3000 years ago with the Egyptian pyramids as the proof that projects

of tremendous scope, employing tens of thousands of people were completed in ancient

times. From the 1780s to mid 1800s, the birth of corporation came and brought

significant influences on management, making it become a necessary component to

ensure the success of the business. However, only around the beginning of 20 th century,

the knowledge of management was actually unified, developed and taught in a variety of

settings. Those early proponents were called classical approaches. Since then, many other

approaches were proposed and a considerable number of contributions were made to

management theory. Among them there are two approaches: Scientific management and

human relations management. These represent two different schools of management: One

belongs to the classical theorists, focuses on efficiency and brings unquestionable

changes to task performance and structure of the organization while the other is a

contemporary approach that considers human factors as the center of organizations. In

this essay, I shall present my understanding of the two approaches, which I absorbed

from various readings, relate the theory to a real-life example and answer the research

question “Are scientific and human relations management still applicable to

organizations in the 21st century?”.

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2. SCIENTIFIC MANAGEMENT

2.1 Definition

Scientific management (SM) - a classical approach to management – is originated around

the beginning of the 20th century. It was based on an idea of systemization,

standardization and simplification of work process. In other words, it aims at increasing

the labor productivity. 1

2.2 Origination and Contributors

SM was developed by many management theorists such as Henry Gantt, Lillian Gilbert

and Frank Gilbert but the biggest contributor is Frederick W. Taylor, “The Father of

Scientific management”. As Taylor realized the “soldiering”2 phenomenon among the

workers, he attempted to systematically analyze them and proposed the use of time-and-

motion study as means of standardizing work activities. Therefore, sometimes SM is also

called Taylorism.

2.3 Principles

In his monograph The Principles of Scientific Management (1911), Taylor stated the four

basic principles of SM:

1. Planning scientific work methods.

2. Selection, training and development of each individual workers

3. Cooperation with the workers to ensure work methods being followed.

4. Equal division of work between employers and workers.

1 Definition of Scientific Management, Retrieved from http://www.wordiq.com/definition/Scientific_management on March 15, 2011.2 The phenomenon in which workers do well below their capacity on purpose. Taylor called this laziness the “soldiering” (Taylor, 1911: them page)

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2.4 Influences on organization

The impacts of SM on the 20th century were undeniably great. Peter Drucker saw Taylor

as the creator of Knowledge Management. His ideas are the basis or even the inspiration

for many later management philosophies, including Management by Objectives,

Operations Research, CSFs and KPls, Balanced Scorecard, Total Quality Management,

Six Sigma and Business Process Reengineering, etc.3 Many firms and companies

adopted Taylor’s ideas of autonomy, piece rates payments and great division of labor.

The results were dramatic with labor productivity increasing significantly. Thus, new

organizational functions such as personnel and quality control were created. Also, SM

introduced us to product line, the foundation of mass production techniques, which totally

dominated the management thinking in the first half of the 20 th century (John Middleton,

Organizational Behavior, 2010, p.14-15). Even our daily life is influenced by SM;

families began to perform their household tasks based on the time-and-motion studies

results.

2.5 Applications

In real-life, the applications of SM are widely applied but varied largely due to the

differences in business contexts of different firms. In fact, SM has no single applications

or results when applied by actual companies. There are cases that the firms only adopt

some aspects of SM or merge it with other business strategies. Some remarkable

applications of SM are Fordism, McDonaldism, Kaizen system, Just-in-time, Lean

Production and so on.

2.6 Strengths and weaknesses

Strengths:

Spender, J.C and Kijne (1996)4 listed some strengths of SM.

- One of the first formal divisions between employers and workers.

3 Usage of Scientific Management – Applications, Retrieved from http://www.12manage.com/methods_taylor_scientific_management.html on March 15, 20114 Spender, J.C. and Hijne, H. (Eds), 1996, Scientific Managemet: Fredrick Winslow Taylor’s Gift to the world?

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- Improve production methods, leading to a major global increase of living

standards.

- Focus on the individual task and worker level was focused, laying the ground for

Business Process Reengineering (process level) theory.

- Direct reward mechanism for workers rather than pointless end-of-year profit

sharing schemes.

- Suggest schemes for workers, who should be rewarded by cash premiums.

- The systemization is the early proponent of today quality standard theory.

- Emphasize on measuring. Measurement enables improvement.

Weaknesses

The authors also showed the limitations of SM.

- Taylorism can be easily abused to exploit human beings and create conflicts with

labor unions.

- Not useful to deal with groups or teams.

- Leave no room for individual preferences or initiative.

- Overemphasis on measuring and pay no attention to soft factors, led to deskilling

labor.

- The work is too repetitive and workers feel like being treated as machines.

Thus I think that in the current changing and knowledge working environment, a

management style that draws a fixed system and creates loss of skill level and autonomy

of worker level like SM is no longer suitable. Moreover, the service sector is the major

part of the economy now, so using SM, which was meant for industrial companies, is

really hard.

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3. THE HUMAN RELATIONS MOVEMENT

3.1 Definition

The human relations theory is the name of an approach to management as opposed to the

classical ones. It was developed in the 1930s when some management theorists shift their

attentions from efficiency in production to another major factor of the work process – the

workers. The objective of HR approach is to answer the question: How do you motivate

and lead employees in order to get high levels of performance?5

3.2 Origination and Contributors

The HR movement started with the experiments carried out by Elton Mayo at Hawthorne

(the Hawthorne studies). In fact, the HR movement is a unified theory embraced the

thinking and contributions of many individuals. For instances, Abraham Maslow is

famous for his description of a hierarchy of five needs; Douglas McGregor developed the

Theory X and Theory Y; Frederick Herzberg gave insights into the two kinds of factors

(intrinsic and extrinsic) involved the job satisfaction with his motivation-hygiene theory,

etc. Up to present day, experts and thinkers still continue contributing their works to HR

approach.

3.3 Principles

John Middleton (Organizational Behavior, 2010: 16) pointed out seven operating

principles of HR approach:

1. Organizations are social – not economic – systems.

2. People are motivated by many needs, not just financial rewards.

3. The informal work group is a major influence on the attitudes and performance of

individual workers.

4. Job roles are more complex than job descriptions and time-and-motion studies

would suggest.

5 Stephen P. Robbins, David A. Decenzo, Mary Coulter, Fundamentals of Management: Essential Concepts and Applications,

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5. There is no particular correlation between individual and organizational needs.

6. Job satisfaction will lead to higher job productivity and this is a more socially

beneficial approach than worker coercion.

7. Manager needs strong social skills, not just technical skills.

3.4 Influences on organizations

Having been ignored at first, the HR approach still gradually proved its value and began

to influence organizations. Human factors which are very important to the development

of organizations were given proper attention. Employers did not realized that workers’

needs affected the productivity before, but now under the influences of HR approach they

know that they should have a different treatment towards their employees. Treat people

with respects and bear their interests and needs in minds, they will typically make a better

contribution. To the contrary, give them no thought and see them only as a part of

production, they will not care a bit about the company and perform poorly. As

management no longer just focused on efficiency, new kinds of organization with

different view and look from the Taylor-obsessed ones were created. (John Middleton,

Organizational Behavior, 2010, pg 16-17).

3.5 Applications

In reality, we do not see any applications of HR approach with proper and clear names

but it is actually practiced frequently. The employers’ guarantee of working conditions,

safety precautions, workers’ rights, etc. are some familiar examples of HR practices.

Nowadays, workers unite together to form trade union (British English) or labor union

(American English). The trade union, through its leadership, bargains with employers on

behalf of union members and negotiates labor contracts with employers. Many

organizations now have a separated department of human resources.

3.6 Strengths and weaknesses

The followings are the advantages and disadvantages of HR approach I myself draw out

after researching a variety of materials.6

6 You can find the list of materials I used in the References part at the end of the report.

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Advantages

- Recognize human as the most valuable assets of organizations.

- Motivate employees and therefore bring forth job satisfaction, from that

point on, increase the individual contribution.

- Concentrate on the individuals within organizations.

- Create a more open, trusting and comfortable working environment.

- Create ability to retain highly skilled employees for organizations.

- Very suitable to long-term business strategies and organizational objectives.

Disadvantages

- Human relations are very complex so they are difficult to analyze and

control.

- Efficiency in production is hard to reach right away and needs some time.

- If motivation is not successful and done in the rights way, reserve negative

effects can happen.

- Be affected by many internal and external factors.

- Employee productivity is increased through an indirect and delicate way.

4. MANAGEMENT IN THE 21ST CENTURY

Rushing through many books, articles and talks about the 21st century management, the

conclusion I came up with just lied in one word: Complex. After a long and full of thorns

path of development, management becomes such a complicated matter that many people

try to dissect and analyze. There are thousands of management books written over the last

decade. All gives only one overall picture of current organizational management: A

complicated activity with “the complexities of technology, people, globalization and

uncertainties” (Tom Brown, 2008).

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4.1 Features of 21st century management

Here I shall borrow some ideas of 21st century management from Management2002 Team

but use my own words and evidences to demonstrate my understanding.

Those ideas are:

Management is for everyone.

The rise of educational levels and information technology has created opportunities for

everyone to learn and use management. Now management can be found everywhere and

every time, not only in organizations anymore. Farmers manage their crops, storage and

equipments; students apply management in their studies; housewives use management to

perform household tasks; etc. The distinction between “managers” and “workers” will

fade away and management knowledge will become everyone’s responsibilities.

(Management2002 Team, 2008).

Management is for learners.

Nirvikar Singh, an Idian management thinker, sees knowledge as the new focus of

management in the next century. The knowledge here also includes data, information and

skills. Now to do business one needs knowledge. Therefore, everyone will learn and

managers’ tasks will be promoting learning.

Management is based on communicating

The era in which production-oriented market existed is no longer here. Human is the

focus of organizations and customers is the center of business. As the means of

communication improve day by day, communicating effectively will be one of the keys

to success for organization.

Management is about change

Life is always changing day by day in every aspect. With a changeable environment like

this, managers need to adapt to change so that they can guide organizations.

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Management is broad-based.

The world and organizations now can be called boundless due to the rise of Internet,

globalization and advancements in technology. People can work everywhere even at

home or during a vacation through the use of mobile phone, computers and other means.

It also led to the creation of new types of company like MNC.

4.2 Factors reshaping and redefining management

Today, managers are dealing with changing workplaces, ethical and trust issues, global

economic uncertainties, and changing technology (Stephen P.Robbins, David A.

Decenzo, Mary Coulter, 2011, p.16). For example, although people still need to buy food

even during a recession, grocery stores are struggling to retain their customer base and

keep costs down. At Publix Super Market, the largest grocery chain in the southeastern

USA, everyone, including managers, is looking for ways to better serve customers. The

company’s president, Todd Jones, who started his company through these challenging

economic times by keeping everyone’s focus – from baggers to checkers or stockers – on

exceptional customer service. As the organization moves forward, other challenges are

remain. Managers everywhere are likely to have to manage in changing circumstances,

and the fact is that how managers manage is changing. The way it changes has great

impact on managerial functions (planning, organizing, leading and controlling).

5. THE APPLICABILITY OF THE TWO APPROACHES IN THE

MODERN WORLD

Many concepts and methods of management have become old-fashioned and no longer

applicable to the modern world, but scientific and HR approaches do not belong to these

cases. In the new context, both these approaches can still be applied to organizations.

Naturally, the appearances of the approaches cannot remain the same, whereas the world

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has been consistently changing. However, their core concepts have been and will be

rooted deeply in organizations in many new different forms and methods.

The theory presented by Taylor claims that there is one best way to perform every task.

The right job needs to be given to the right people with the right tool to achieve the

maximum efficiency. Many organizations still practice this theory to find the suitable

method and people for the jobs they are doing. The basic principle is the same but the

organizations are now diverting a little from the theory. As the theory claims that there is

one best way to perform the task. Companies determine that one best way of performing

a task but with new inventions and technologies being discovered efficiency is increasing

day by day and one cannot claim that a single way of performing a task is the only way.

The new innovations on daily basis make it difficult to determine a single best way. For

example: In past we had Floppies to transfer data from one computer system to another,

large data was transferred in packs. After that CD's came and they allowed people to

transfer data much more efficiently and now we have got USB's to transfer the data and

other latest technologies. This gives a clear idea that one single way for any task cannot

be determined and there is always room for improvement. It is possible to make the new

innovative method the best way to perform a task which takes less time and cost (Clara

Ross, Use of Scientific management).

Most of organizations think the concept of SM has become obsolete, but in fact they

knowingly or unknowingly try to implement SM into their organizations. They set the

organizational objectives or goals and then search for the most suitable methods to

accomplish them. SM is present even in the first steps of organizational operations.

However, the key to success of an organization nowadays is the people. Here is the point

when HR approach will prove that its strong influences on organizations are still present.

Organizations are developing an increasing orientation toward service to clients.

Relationships are becoming more important than physical products. Restaurants,

hospitals, banks, public utilities, colleges, airlines, and retail stores all must now gain and

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retain patronage. In any service firm, there are thousands of critical incidents in which

customers come into contact with the organization and form their impressions of its

quality and service. Employees must not only be able to get along with customers, they

must also project a favorable image of the organization they represent.

Most organizations recognize improved quality is the key to survival. The notion of

quality as a competitive tool has been around for many years, but in the 2000s, it is

receiving much more attention. In a period of fierce competition, a consumer may not

tolerate poor quality. Human beings are at the heart of the quality movement because

workers are given the power and responsibility to improve quality.

Companies are organizing their workers into teams in which each employee plays an

important role. If team members cannot work together, the goals of the organization will

suffer. In some cases, workers are cross-trained so they can do the work of others, if

necessary.

Employees must be flexible and adaptable in order to achieve success within a climate of

change while employers are trying their best to motivate employees to be as productive as

possible. It is important for everyone to practice interpersonal skills which help to

improve the relationships in the workplace (Highland, Patrick, Human Relations. 2007)

Today profit or non-profit organizations do not use SM and HR approaches separately. In

reality, they may only adopt some aspects of both approaches and merge them with other

strategies to find the most effective ways that meet their needs and objectives and help

them achieve the desired results.

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6. CASE STUDY: EASYJET

In the previous part, it is said that modern organization integrate SM and HR approaches

with its management styles for the sake of accomplishing its goals. I am going to analyze

the managerial model of a company to prove this fact. The company I chose is the

EasyJet Airlines Company

6.1 Background information about EasyJet

EasyJet Airlines Company is one of the most successful low-cost airlines in UK. It is

founded by Sir Stelios Haji-loannu, a graduate of London Business School, in 1995 with

$7.5 million borrowed from his father, a Greek shipping tycoon. EasyJet operates on over

540 routes, across 30 countries and having over 196 aircrafts by 2010. The headquarters

of EasyJet is located in Luton, UK. Easyjet stated that its missions are “Turning Europe

Orange”, “Building the best low fares airline in the world” and “Becoming the Europe’s

no.1 air transport network”.

6.2 EasyJet low-cost strategy and scientific management

At first glance, it seems there is no actual correlation between the low-cost strategy

EasyJet used and the theory developed by Taylor, but this strategy is actually an

innovative application of scientific management.

One of the four principles of SM is planning scientific work methods that suit the

organizational objectives. The founder, Sir Stelios, wanted to build an airline that offered

customers as cheap fares as possible. The low-cost strategy fits his idea the most among

alternatives.

SM focuses on the efficiency and so does the low-cost strategy. Low-cost comes from

two driving principles – “sweating” the assets and high operating efficiency. EasyJet

makes sure its planes are as full as possible and flying as much as possible. EasyJet flies

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its Boeing 737 for 11 hours per day, four hours longer than British Airways. Their pilots

fly over 900 hours per year, 50% more than British Airways pilots.

In terms of operating efficiency, EasyJet lets their aircrafts fly out of low cost airports.

These are normally not the major airport serving any destinations and can be some

distance from them. Also, the aircrafts are tightly scheduled. They are allowed only 25

minutes to off-load one set of passengers and load another, less than half the time of its

schedule full-fare rivals. They must leave and arrive on time (they will not wait for the

passengers), and if there are delays they can have knock-on consequences for the

timetable. Moreover, there is no “slack” in the system. EasyJet admits having “one and a

half planes’ worth” of space capacity compared with the dozen planes British Airways

has on standby at Gatwick and Heathrow. EasyJet has fewer cabin crews than full-fare

rivals. This cabin crew also carries out the cleaning duties on the aircraft. Moreover, the

ticketless policy (booking ticket online) helps EasyJet to eliminate as much waste as

possible.

It can be seen that these principles are very much similar to the time-and-motion study

about a series of working actions which aims to make workers complete tasks with the

fastest time. EasyJet studied the best methods which let they achieve the maximum

efficiency in operations with minimum energy and resources for the purpose of being low

cost. In 2009, there were 289 people living within 60 minutes drive from an airport

served by EasyJet and they always keep consistently high load (the load factor in 2009

was 85.5% and in 2010 was 87%).

With the distinctive operations, EasyJet also provides unique job descriptions and

specific training system for its staffs. In 2009, EasyJet became only the second UK airline

to be granted approval for managing their in-house pilot training. During this year, their

pilots undertook 15,000 hours of simulator training with the prime focus on practicing

realistic scenarios. Thanks to this the pilots are enable to become more familiar with new

airports, which are continually added to the network. EasyJet also has a training course

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for their cabin crew so that they could deliver excellent customer services. They are the

evidences of how much effort EasyJet put into creating an effective training system for

their works, a practice of job description introduced by Taylor.

6.3 EasyJet human resources policy and the Human Relations Movement

As a leading Europe’s airline with the workforce of over 3000, EasyJet also pays great

attentions and cares to its employees. Just as the case with scientific management, it

adopts the human relations approach to its management style. EasyJet is “committed to

ensuring high employee satisfaction and engagement levels across the business”.

Customers are now the center of the business. The firms and customers make contacts

with each other countless times. A big part of customers’ image about the company is

getting from its employees. In case of EasyJet, they built a unique “orange culture” which

gives customers bright and energetic impressions. This “orangeness” means they are “up

for it”, “passionate”, “sharp”, “mad about safety”, and “mad about cost”. This orange is

what makes EasyJet people different. It can be considered as a kind of food for thought,

connecting glue, a wonderful working field, a source of encouragement and a feeling

pride for each individual member. At that time, the feelings each employee has for his/her

company is not just the loyalty, but the love for something that has become their blood

and flesh.

A wide range of people works for EasyJet. EasyJet is committed to being an equal

opportunities employer, so that all staff can make the best use of their skills and

experience. Their policy is to ensure that no applicant or employee receives less

favourable treatment because of their age, colour, creed, disability, full or part time

status, gender, marital status, nationality or ethnic origin, race religion or sexual

orientation.

The management style of EasyJet is very open, straightforward and interesting. Easyjet's

reputation as a simple, economic operation resonates clearly through both its business

and employee benefits strategy. "Our philosophy on benefits is that we are a low-cost, no-

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frills airline and therefore do not want to introduce legacy-type benefits or things that

have a defined-benefit nature," says Lawrie – the human resources manager.

But this does not mean Easyjet shies away from benefits altogether, or simply looks for

the easiest options. In fact, the benefits they offer for their employees are very attractive.

Employees can access the benefit schemes – call Your Benefits – through a company

online portal.

EasyJet cabin crew staff pay comprises a basic payment plus sector pay (depends on crew

member's seniority), plus overnight allowance (where relevant), uniform allowance,

language payment (where relevant and depending on degree of proficiency), and a loyalty

bonus (payable after two years full employment). The company also offers discounted

staff travel and a company pension scheme.

Communicating with employees is seen as being important to easyJet - they aim to

generate awareness among staff of the company's performance and development. There

are regular communication meetings and management briefings and a regular newsletter

is sent to all staff. Most of the firm's corporate information is shared across the business

and employees can get information electronically.

Recognizing the importance of staff participation in EasyJet operations and

developments, the company issued either share options or share gifts to all staff employed

before the acquisition of Go Fly in 2002.

There is a director within the company who is responsible for people development and

cultural issues. This is in addition to a human resources director.

The company also listens to its employees’ views. EasyJet do precisely that on their Web

site - asking cabin crew staff to comment on aspects of their work: these staff make a few

adverse comments about the organisation, such as there being an insufficient difference

between pay levels of cabin crew and purser; the demands of working on flights with

rowdy, drunken customers on board; or the hostile response they can get from some

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pilots. If easyJet were not willing to have an open management style, one might think that

they would not broadcast these comments publicly.

The intensive attentions EasyJet gives to its employees have brought about impressive

results. It has become one of the 50 most attractive places to work in the world with high

employee satisfactions, high attendance and low staff turnovers.

Figure on staff turnovers, employee satisfaction and attendance

(Source: EasyJet 2010 Annual Report)

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7. CONCLUSION

The essay has demonstrated my research about two opposite approaches to management

to answer the questions: Are scientific and human relations management still applicable

to organizations in the 21st century? Firstly, I studied the theory to have an overall

understanding: Scientific management is the basis of the productivity while Human

relations approach can be considered as a breakthrough in management and a

reorganization of the values and importance of human factors in organizations. Secondly,

I examined the current organizations and how management is nowadays and realized

Complex is the most correct words to describe them. Finally, I analyzed two aspects of

EasyJet Airlines Company (the low-cost strategy and the human resources policies) to see

how deep the scientific and HR approach take roots in its management style.

I have gained many useful and valuable lessons from this research. To have a successful

career, beside the working abilities and capacities, I need to improve my interpersonal

skills which are greatly valued by employers. The flexibility is also necessary so that I

can adapt to the constant changes of the working environment.

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8. RECOMMENDATIONS

The two management styles mentioned in this essay sound complicated, difficult and

hard to practice, but in reality it is not like that at all. Even an ordinary person can

practice scientific and human relations management in his daily life.

In terms of scientific management, we can start by applying it to some simple everyday

activities such as cooking and household chores. For example, before starting cooking,

one should take a short amount of time to look at the ingredients, the equipments and the

place, imagine the cooking procedure to determine the best ways to cook.

In terms of human relations approach, trying to get along with your classmates and

friends is probably the best practices. The class is the miniature model of the society. Our

classmates’ personalities, values, points of views, abilities, etc are varied. We will study,

work and interact with them on a daily basis. The way we treat, talk and behave around

them will influence the relationships with them. Practicing how to deal with

circumstances, situations and people for the sake of good relationships with others will

produce meaningful and useful experiences for the future.

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9. REFERENCES

Highland, Patrick. "Human Relations." Encyclopedia of Business and Finance, 2nd ed..

2007. Retrieved March 17, 2011 from Encyclopedia.com:

http://www.encyclopedia.com/doc/1G2-1552100159.html

Accel Team, Employee motivations, Retrieved on March 17, 2011 from

http://www.accel-team.com/productivity/approaches_00.html

Definition of Scientific Management, Retrieved from

http://www.wordiq.com/definition/Scientific_management on March 15, 2011

EasyJet Case study homepage, Retrieved on March 31, 2011 from

http://www.bized.co.uk/compfact/easyjet/easyindex.htm

Tom Washington (2009), Employee Benefits, Retrieved on March 31, 2011 from

http://www.employeebenefits.co.uk/item/8565/23/305/3

Fritz J. Roethlisberger (1958), A New Vision – The Human Relations Movement,

Retrieved on March 31, 2011 from

http://www.library.hbs.edu/hc/hawthorne/anewvision.html

Stephen P. Robbins, David A. Decenzo, Mary Coulter, Fundamentals of Management:

Essential Concepts and Applications, Retrieved on March 15, 2011 from

http://www.12manage.com/methods_taylor_scientific_management.html

Management 2002 Team, 21st Century Management, Retrieved on March 22, 2011 from

http://www.manage2001.com/21m.htm

EasyJet 2010 and 2009 Annual Reports

John Middleton, 2010, Organizational Behavior, Capstone Publishing 2002

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Jorgen Legaard, Mille Binslev, Organizational Theory, Ventus Publishing ApS 2006

Spender, J.C. and Hijne, H. (Eds), 1996, Scientific Managemet: Fredrick Winslow

Taylor’s Gift to the world?

Clara Ross, Use of Scientific management For Business, Retrieved on April 3rd, 2011

from http://ezinearticles.com/?Use-of-Scientific-Management-For-Business&id=3768703

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10. APPENDIX

EasyJet’s BenefitsPension

Group personal pension (GPP) open to all staff, who receive employer pension contributions of between

5% and 7% depending on grade. Employees can make additional contributions through salary sacrifice,

and half of the employer's national insurance savings are invested back into the individual's pension pot.

Share Schemes

Sharesave and share incentive schemes offered to UK employees. Similar schemes are operated for staff

internationally.

Healthcare

Private medical insurance, income protection, optical benefits and dental cover all available through

voluntary benefits scheme.

Critical illness insurance

Easyjet pilots are entitled to "loss of licence" cover, akin to critical illness cover, through which the

employer will pay out a lump some of 120% of salary to help with rehabilitation should a pilot lose their

flying licence on grounds of ill health.

Holiday

All employees receive 23 days' holiday, rising to 25 after two years' service. A complicated roster system

means flight crews select their holidays on a points-based system, with more popular weeks costing more

points than others.

Incentive pay

Cabin crew receive incentives for flying and get commission for food and drinks sold on board. All staff

also receive an annual bonus based on company and individual performance, with the opportunity to

earn up to 40% of their annual salary. Pilots receive a loyalty bonus of 5% per annum after two years,

10% after five years and 15% after 10 years' service.