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The commercial airline is an extremely competitive, safety‐sensitive, high technology service industry. People, employees and customers, not products and machines, must be the arena of an organisation’s core competence. The implications are vast and pervasive affecting no less than the organisation’s structure, strategy, culture, and numerous operational activities. Completed by 13 respondents (executives), this audit presents a series of select findings of a human resource management audit carried out in 2001‐2 and contains extensive data on airlines from nine countries from around the globe. The conclusion drawn from these three bodies of work is that, with the exception of a handful of high performing airlines, the industry as awhole continues to function as per a traditional, top‐down, highly divisionalised, industrial model of operations and governance. This model is manifestly inappropriate in such a highly knowledge‐based service market as the airline industry. HRM expertise in general and compensation and benefits in particular are required now,more than ever, to spearhead the strategic development of a customer‐centric, learning‐oriented workforce that is capable of adapting quickly to the strategic goals and change imperatives facing the airline industry.

The commercial airline is an extremely competitive, safety‐sensitive, high technology service industry. People, employees and customers, not products and machines, must be the arena of an organisation’s core competence. The implications are vast and pervasive affecting no less than the organisation’s structure, strategy, culture, and numerous operational activities. Completed by 13 respondents (executives), this audit presents a series of select findings of a human resource management audit carried out in 2001‐2 and contains extensive data on airlines from nine countries from around the globe. The conclusion drawn from these three bodies of work is that, with the exception of a handful of high performing airlines, the industry as awhole continues to function as per a traditional, top‐down, highly divisionalised, industrial model of operations and governance. This model is manifestly inappropriate in such a highly knowledge‐based service market as the airline industry. HRM expertise in general and recruitment and selection as well diversity and equal opportunity in particular are required now, more than ever, to spearhead the strategic development of a customer‐centric, learning‐oriented workforce that is capable of adapting quickly to the strategic goals and change imperatives facing the airline industry.

The commercial aviation industry is an extremely competitive, safetysensitive high technology service industry. Socio‐technical systems, employees and customers must be the arenas of an organization’s core competencies. The implications are vast and pervasive affecting no less than the organization’s structure, strategy, culture and numerous operational activities. In this article, select findings of a human resource management (HRM) audit are compared to the findings of a review of the literature on diversity, organization development (culture) and training and development. The audit, conducted by 13 executives from their respective organizations, contains extensive data on airlines from nine countries from around the globe. In this article we seek to extend the discussion of excellence in safety and customer service to applied systemic organizational HRM issues and critical success factors. Human resource management (HRM) expertise is required now, more than ever, to spearhead internal marketing strategies in order to gain employee commitment in order to foster excellence in safety and customer service.

The commercial airline is an extremely competitive, safety‐sensitive, high technology service industry. People, employees and customers, not products and machines, must be the arena of an organization’s core competence. The implications are vast and pervasive affecting no less than the organization’s structure, strategy, culture, and numerous operational activities. Completed by 13 respondents (executives), this audit presents a series of select findings of a human resource management audit carried out in 2001‐2 and contains extensive data on airlines from nine countries from around the globe. The conclusion drawn from these three bodies of work is that, with the exception of a handful of high performing airlines, the industry as a whole continues to function as per a traditional, top‐down, highly divisionalised, industrial model of operations and governance. This model is manifestly inappropriate in such a highly knowledge‐based service market as the airline industry. HRM expertise in general and employee and labour relations in particular are required now,more than ever, to spearhead the strategic development of a customer‐centric, learning‐oriented workforce that is capable of adapting quickly to the strategic goals and change imperatives facing the airline industry.