If we are sceptical about the feasibility of creating ‘high skills’ societies, what are the prospects for organisations adopting ‘high skills’ approaches to people development in at least some sectors. The Aerospace sector is trying to support individual companies and the sector as a whole in moving in that direction. The following is an extract from the conclusion of the first of those documents People Management in Aerospace (SBAC, 1998):

"In summary, the survey evidence suggests that higher performing aerospace establishments are more likely to be adopting and using innovative human resource management practices. On the basis of this evidence, should we be encouraging lower performing establishments to introduce the same range of innovative working practices and to the same extent as high-performing establishments?

There is clearly a risk in so doing. Not all establishments will be in a position to introduce such innovative working practices. A range of organisational issues (e.g. organisational design, management structures and systems, information systems) will need to be addressed before they can either introduce such approaches or benefit from them. Furthermore, introducing innovative working practices in the absence of a coherent business strategy is more often than not going to lead to greater organisational problems. Likewise the absence of a process for developing a people management strategy in the context of future business plans will also provide rocky ground on which to achieve better business performance. But where should establishments start?

There is clear evidence from the survey that ‘mainstreaming’ people management into the overall business strategy can pay bottom line dividends. Establishments that adopt a more strategic approach to people management through greater integration of policies and practices with the business, and also through having a HR specialist at main board level, tend to have better business performance. There are a number of tools and diagnostics available that can assist organisations to develop their thinking in this domain. For example, the Business Excellence Model marketed by the European Foundation for Quality Management (EQM) provides a framework for understanding the relative contribution of people management to business success. However, only 18 per cent of our respondents have undertaken an audit using this tool.

Organisations may also want to adopt Investors in People as an approach. Indeed, our research found that organisations that are recognised under IiP tend to have much better business performance. However, fewer than one in five of aerospace establishments have achieved the IiP standard. This baseline survey of people management has identified the development of a strategic approach to people management as the key challenge facing aerospace businesses. It has also shown that such approaches can deliver bottom line results. For those organisations seeking to act now to improve people management, the two initiatives outlined above (EQM and IiP) can help senior managers develop a more strategic approach.

However, we also need to understand more about how successful aerospace businesses have built and maintained effective people management strategies. A clear need within this context is the development of capabilities and competencies to deliver people management strategies in the business. The next phase of our research programme will be tackling this issue head-on, using a mix of case studies, industry wide forums and senior management development programmes to improve organisations’ approaches to people management in the sector as a whole" (SBAC, 1998, p.22).

Reference

• SBAC (1998) People Management in Aerospace, London: SBAC.