Hong Kong International Airport Case Study On Macro & Micro Operations
Question
Task:
Case Study Questions:
- Identify the macro operation and some of the main micro operations to be found at the Hong Kong International Airport (HKIA). For each of them, describe the main inputs, transformation process and outputs.
- Summarize the internal and external problems faced by the Operations Manager in managing and developing the HKIA.
- What are the main changes you would recommend the operations manager to consider making to improve the competitiveness of the HKIA.
Source: https://www.hongkongairport.com/en/
Answer
Introduction
It is becoming essential for airports in understanding their operational capabilities. This can help them in assessing the way they are performing and the manner they are managing their employees and passengers. The Hong Kong International airport case study here will be discussing the different micro and macro operations of Hong Kong International Airport (HKIA) and the different inputs and outputs related to it. In addition, the study will further focus on assessing the different internal and external issues that the managers of HKIA faced while managing and developing this airport. Nevertheless, there will be recommendations based on the received information for preparing Hong Kong International airport case study, which will help in the betterment of the HKIA.
Discussion
The Hong Kong International Airport is a statutory body, which is solely owned by the government of Hong Kong SAR in the year 1995 (hongkongairport.com, 2020). However, the Airport Authority of Hong Kong is responsible for the maintenance and development of the airport. Just like the other airports, the HKIA is responsible for performing some macro operations, which includes landing of the flights in the runway. HKIA is one of the busiest airports around the globe (hongkongairport.com, 2020). However, the input that is concerned in this process involves the management of the ground staff and managers. The managers are responsible for using various components with the help of which they can manage their activities. Out of it, operations related to Flight Management Computers (FMC) are one of them. Management of aircraft navigation system is another activity that needs to be performed by the senior managers of the airport.
Moreover, the other macro activities of the HKIA involve taxi in. These are activities mentioned in the present Hong Kong International airport case study, which involve movement of the flights between the runway and the gate. The ground staffs of the airport maintain all these. This is with the motive to ensure that all the flights are safe and the passengers are secured. This includes the training of the employees. The other major activities include aid to the pilot to make them understand where to stop; to place the chocks by the wheels of the flight to ensure that the flight does not moves, to make the external inspection of the flight, to clean the flight for the next fly (Magalhães, 2014). However, to maintain and to perform all these activities, the most strategic input that is required is correct and trained manpower. Additionally, for receiving a better output and smooth operations, the transformation process must involve training of the employees for each of the departments, which are responsible for each of the tasks that are related to handling the macro activities. In order to perform all these tasks outlined in the context of Hong Kong International airport case study, the inputs that are required are the strong communication and work alignment so that the work should flow in the correct motion. This requires input in the form of strict management and leadership.
Moreover, the other macro activities includes removal of the chocks and to provide the power supply, to show the anti-collision light in order to ensure that the flight is ready to move, to push back the flight with a pushback vehicle, to make the aircraft move between the gate and the runway and to depart the flight (Magalhães, 2014). These are the other macro activities that the HKIA needs to perform. These involve the movement of human and machinery labour force within their workplace. However, the organization needs to ensure that all these activities are monitored so that they can enable the employees to deliver the best quality services to its customers. The organization must create performance assessment training for their managers, which will allow them in determining the potential employees within the organization. Moreover, the employees must be provided with the required training about the ways they must operate the machineries. This is because mechanical failure can limit the employees to perform well and can negatively affect the area of customer experience. However, providing the right training can help in overcoming this.
However, the micro activities of HKIA involve airline lounges, courier services, automated mover for people, baggage packing and wrapping services and more 46 types of services for their passengers (hongkongairport.com, 2020). These micro activities are performed with the motive to ensure that their customers are satisfied while availing services from the airport. Under these micro activities as illustrated in the Hong Kong International airport case study, the required inputs are strategic human resource management, which includes training and skill development of the employees, so that they can perform their activities in a well-defined manner, leading to better management of the passengers.
These activities involve training and management of their ground staff and the other employees of each of the departments that are there in the work premise. However, Sito (2019) has helped in explaining that the airport is facing issues related to their flight disruption. Also the operations are getting hampered due to economic recession. The study of Sito (2019) used to support the arguments raised on this Hong Kong International airport case study mentioned that the chairman of HKIA has planned for increasing their capacity from 74.7 million to 120 million by the year 2035 and also to increase their cargo capacity from 5 million tonnes to 10 million. This pushed in recommending that HKIA could have practised the strategy of merging, which could have helped the airport to increase its financial strength. This, on the other hand, can allow the firm to meet their set goals fruitfully.
More to this, the HKIA can make recruitment from those economies, which are weaker than them, which can allow the airport in minimizing their cost related to their employee management. This, on the other hand, can help the firm to uplift their level of revenue, which they can use for the development of those areas which are in need. Additionally, it has even been assessed that the financial issues depicted in the Hong Kong International airport case study that the business was facing for a long time has pushed the organization to welcome this 2020 by cutting down the employees with the motive to minimize their cost of operation (Beresnevicius, 2020). The firm by recruiting employees from a weaker economy could even have mitigated this issue.
Additionally, the Sustainability Report of AA Hong Kong for the year 2017-18 considered in the Hong Kong International airport case study has helped in acknowledging that the company also has some of its internal issues as well. This involves the management issues like safety and security, customer experience, management facilities, issues related to the compliance with the policies and laws that are developed by the government and 36 others (hongkongairport.com, 2018). Proper arrangement for staff safety is the input that would be required from the side of the management. In order to overcome this issue, the organization could have recruited well-trained security or could have asked for security support from the side of the government officials. This input could have transformed into the betterment of the security conditions, leading to a better experience for the customers. Additionally, to overcome the issue of customer experience, the firm could have recruited eligible stewards and stewardesses.
However, to overcome all of the issues identified in the Hong Kong International airport case study, it is becoming essential for the organization to make prioritization of their issues and to develop strategies for mitigating it accordingly. Additionally, it has been assessed that the AAHK is facing most of its issues related to their operations (hongkongairport.com, 2018). This again pushed in recommending that they must do an experiment in their managerial style and must find out which, one of the managerial styles is most appropriate for the firm, which can again aid the firm to overcome their present issues or the issues which are still bothering their process. The operational manager could have conducted a survey among the employees to make performance assessment, based on which the company should make selection and rejection of their employee base.
Conclusion
After the completion of the Hong Kong International airport case study it can be evaluated that it is becoming significant for the selected organization to develop a panel for performance measurement, which can aid the firm in assessing the training that is needed by their employees. However, to make better understanding of the safety needs of the customers and employees, the HKIA can even conduct surveys among them regarding it. Moreover, performance assessment training must be provided to their managers, to make them understand the valuable employees for the firm. Furthermore, it can be concluded from the information developed in the Hong Kong International airport case study that recruiting skilled labour force from the weaker economy can help the organization to overcome the issues of cost management and customer experiences at the same time. Additionally, the firm needs to make an assessment of the policies that are already developed by the government and to align their own policies with it.
Reference List
Beresnevicius, R. (2020). Hong Kong Airlines employees face job cuts as lawsuits amass. Retrieved 5 March 2020, from https://www.aerotime.aero/rytis.beresnevicius/24408-hka-job-cuts
hongkongairport.com (2020). Airport Facilities and Services, Passenger Guide - Hong Kong International Airport.Hong Kong International Airport. Retrieved 5 March 2020, from https://www.hongkongairport.com/en/passenger-guide/airport-facilities-services/
hongkongairport.com (2020). Overview, Air Cargo - Hong Kong International Airport.Hong Kong International Airport. Retrieved 5 March 2020, from https://www.hongkongairport.com/en/the-airport/air-cargo/
hongkongairport.com (2020). Vision and Mission, Airport Authority - Hong Kong International Airport.Hong Kong International Airport. Hong Kong International airport case study Retrieved 5 March 2020, from https://www.hongkongairport.com/en/airport-authority/vision-mission/
hongkongairport.com. (2018). AAHK Sustainability Report 2017/18. Retrieved 5 March 2020, from https://www.hongkongairport.com/iwov-resources/html/sustainability_report/eng/SR1718/wp-content/themes/aahk/assets/pdf/HKIA_SR201718_En.pdf
Magalhães, L. (2014). Depicting the Processes of an Airport–Definition of Processes.
Sito, P. (2019). Hong Kong airport CEO faces arduous task to keep aviation hub humming. Retrieved 5 March 2020, from https://www.scmp.com/business/article/3040789/hong-kong-airport-faces-decade-growth-pain-ceo-tackles-protests-recession
