This lesson will consider three aspects of Southwest's competitive advantage that have led to its great success: a commitment to employees, tremendous flexibility, and low operating costs. These papers are intended to be used for research and reference December 5, 2022 An analysis of current strategies and issues / An executive summary of the HR strategy project / Compile a strategy recommendation to the HR Director to be used for company-wide decisions / Develop and justify business strategies for each of the 3 HRM implications. Strategic management for tourism, hospitality and events. Like, in case of Southwest Airlines the resources which it owns apart from other rival firms are its pro-active actions and strategies that the company makes before any other rival firm to capture the opportunity of the market. The company is making creative and innovative changes in improving the effectiveness for the highest quality of customer service delivered with very friendly and warmth manner. Develop and justify business strategies for each of the 3 HRM implications. The main factors behind the successful functioning of British Airways are that it has a strong U.K based network, it understand the customers more than its competitors, the brand popularity and above all the teamwork among its employees (Beiske, 2007) British Airways as an established and popular brand, need not make more changes continuously. Staying thoughtful and engaged regarding DEI topicsas well as listening to employeescan help employers meet goals and retain people. The VRIO characteristics of corporate strategic human capital at business level. The company is also engaged in providing its employees plenty of information that will help them to understand their company, mission, customers and its competition. An analysis of current strategies and issues; Identify the type of strategy Southwest Airlines is following. As the Workforce 100 indicated, broad cultural changes don't take root overnight. Get unlimited access to over 84,000 lessons. (2014). It is essential to recognize that this will influence the worker's growth, involvement, and enthusiasm. In this case, the corporation's leaders are in the midst of discussions designed to, ensure a salary freeze. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. Team learning enables the members of an organization in expanding their perspectives, fostering their knowledge, deepening their comprehension power and will make a better sense of self. If an organization is a learning organization it will reduce the staff turnover and it will become more attractive to potential employees. Identify 3 HRM implications for Southwest Airlines, Compile a strategy recommendation to the HR Director to be used for company-wide decisions. The airline's founder Herb Kelleher in 1973 introduced a profit-sharing policy that enables the company to share annual profits to its employees. Over the last week, Southwest halted more than 2,000 flights, with leadership pointing to weather, air traffic control issues and staffing problems. Identify 3 HRM implications for Southwest Airlines. Seems unlikely, right? content removal request. Even if these challenges are there in the learning organization it will not have a much deeper effect in those organizations because the learning organizations are ready to make changes and improvements. From the point of view of Harvard model, an organization will get long-term benefits through investment in people. To send you invoices, and other billing info, To provide you with information of offers and other benefits. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. Get top notch assistance from our best tutors ! Following the 9/11 attacks, the US airline industry has been through rough weather. Top HR concerns for 2019 have included talent acquisition challenges, the evolving role of artificial intelligence (AI) in HR, how to best utilize data-driven insights, and an increased emphasis on agility. If you need assistance with writing your essay, our professional essay writing service is here to help! They provide excellent service to the customers and there is no problem of competition and status among the employees. Firstly, when most companies are hiring, the human resource department goes through various resumes to determine who the potential employees are. Another important model, Michigan model focuses on the harder side of HRM or it is a less humanistic approach. The brand has the potential to expand internationally. My Assignment Help (2017) Human Resource Management: South-west Airlines [Online]. Culture relies on the "stuff" in an organization how people work, the actions workers and managers take and can't be treated as something vague,Jamie Notter, co-founder and consultant at Human Workplaces,noted during the Society for Human Resource Management's 2018 annual conference. Strategic Management in the 21st Century [3 Volumes]. The two HRM models developed by the Harvard and Michigan universities are explained in this report. recommend. Determine an HR strategy. This list also includes the top 3 out of 4 airlines namely, American Airlines, United & Delta Air Lines, however they were able to exit the bankruptcy . Simo, J., & Diaz, P. (2013). This was $49 for 436 miles in 1984. Pacific Railway Act of 1862 | What was the Pacific Railway Act? Explore how their focus on employee satisfaction, flexibility for customers, and low operating costs have made this possible. According to the model if the firm tries to use its resources for exploiting external environment then it become more feasible rather than trying to adopt new skills for different opportunity (Kehoe & Wright, 2013). Further, the company has made the employees as partner to the airlines by selling companys stock to them which make them feel the ownership for the firm. The company has nine separate employee unions, but never faced serious problem of labour strikes or any other labour problems (Mendenhall & Osland, 2012). Develop and justify business strategies for each of the 3 HRM implications. Topics covered: Employee learning, training, onboarding, mentoring, career development and more. This model gives equal importance to employees and all other resources of the organization. B. The Southwest Airlines management team includes Gary Kelly (Executive Chairman at Southwest Airlines), Tom Nealon (President at Southwest Airlines), and Angela Marano (Managing Director, Business Transformation) . It started its airline with only three Boeing 737 aircraft and served only 3 cities Houston, Dallas and San Antonio (Ray, Xue & Barney, 2013).The competition of the airline was with Braniff, Texas International and Continental.The airline. Business strategies for each of the Three HRM implications, The premise that air transportation has decreased while expenditures have. As HRM plays a vital role in the major functions of an organization, such as planning, organizing, directing and controlling, it should make continuous learning for the overall development of the organization. with . Course Hero is not sponsored or endorsed by any college or university. It gives importance to airports that are underutilized and those which are near metropolitan area like Hobby in Houston, Midway in Chicago, Love Field in Dallas, San Jose and Oakland in Bay Area. Discuss about the Human Resource Management for South-west Airlines. Use at least 2 sources other than those provided. Enter "Southwest" in the search bar for access to the company profile. Our academic experts are ready and waiting to assist with any writing project you may have. Another threat that the company may face is the threat of terrorist attack. only 1 In line with the functions carried out by the HR department, there are three key phases in human resources management. She'd like you to review several strategic reports on the organization and provide feedback on how you think Southwest HR should move forward. Identify 3 HRM implications for Southwest Airlines. The resource that does not meet these conditions cannot be called as valued resource. One of Southwest's competitive advantages is its focus on its employees. The company has given more importance to see that its employee work differently than its competitors firm. Southwest Airlines' long-term strategy is to tailor-make a unique set of short-term activities that will maintain its reputation to deliver low-cost, convenient service to its customers. Along similar lines, during a talk at Workhuman 2019, Marriott No. It was easy to understand and made 55% of its tickets were booked by travel agent. It started its airline with only three Boeing 737 aircraft and served only 3 cities Houston, Dallas and San Antonio (Ray, Xue & Barney, 2013).The competition of the airline was with Braniff, Texas . Let's dig a little bit deeper into each of these to better understand what makes Southwest different from its competitors. | 1 p.m. Lastly the organization need to value the resource and should be capable of exploiting the valuable, non-imitable and rare resources to achieve long-run sustainability. Achievement of Southwest Airlines based on Resource based view Model. Does VRIO help managers evaluate a firms resources?. From the given case study we can see that Southwest Airlines is a learning organization. To make the learning process very effective the outcomes should be evaluated frequently and make necessary changes and improvements wherever it require (Robbins, 2009). In ranking employers, Workforce editors and researchers from the publication's Human Capital Media Research and Advisory Group reviewed publicly available data on HR performance, as well as Glassdoor data on employee feedback. Human capital means the body of knowledge, skills and experience possessed by the people in an organization. Now! In the airline world, Southwest is like a yoga guru - it bends. It makes the main challenge to HRM in learning organizations. Human Resource Management Review, 22(2), 73-85. Southwest Airlines employs 32,744 employees. There are many factors such as external and internal factors which will influence the environment of an organization. These resources can be bought from the market and is available for everybody (Hendry, 2012). unique. Identify 3 HRM implications for Southwest Airlines. The main features of this model include its concentration on managing human assets to achieve strategic goals and it is mainly based on strategic control, organizational structure etc., the importance given for the components such as organization structure, mission and strategy, human resource selection, performance appraisal, rewards and development (Randhawa, 2007). The rising cost may compel the company to raise their flight prices which may further lead to lose the customer due to tough competition in the market. Southwest has gradually been climbing the list since the Workforce 100 began in 2014. Through research, a number of articles have been produced proposing certain HR activities that are much linked to strategies of businesses. An error occurred trying to load this video. Book Your Assignment at The Lowest Price Identify 3 HRM implications for Southwest Airlines. Management of human relations- the new young workforce is more intelligent and conscious than their predecessors. Southwest Airlines case study on pages 101-102 of the text. Determine an HR strategy. Kehoe, R. R., & Wright, P. M. (2013). Develop and justify business strategies for each of the 3 HRM implications. Human Resource Management: South-west Airlines. (2016). Nelson Education. The Low Cost CarrierA Worldwide Phenomenon?!. Furthermore, advantages such as sick time and paid time off. The companys operation policy was simplified and never added meal service in the flight as that would increase its fares, rather provided peanuts and beverages. It has maintained healthy relation with them. It had a unique way of responding to its rival hatred and competition by advertising a slogan Make love, Not War. It makes a feeling that all of its people are part of a one big family. But to make changes and improvements, the managers should have to make greater effort and have to improve themselves at various levels. Human Resource Management: South-west Airlines [Internet]. Nel, P. S., Werner, A., Botha, C., Du Plessies, A., Mey, M., Ngalo, O., & Van Hoek, L. (2014). Nelson Education. These HRM implications are inclusive of: Succession planning for Southwest Airlines Employee Career Development Coaching and Mentoring Enter "Southwest" in the search bar for access to the company profile. Knott, P. J. A learning organization is entirely different from a traditional organization as it has the capacity to make changes continuously. Review the Southwest Airlines Co. SWOT Analysis via the "Business Source Complete: SWOT Analyses" in the University Library. Its flexible approach to customers also makes it competitive and keeps customers loyal. Southwest embraces this philosophy whole-heartedly. Its like a teacher waved a magic wand and did the work for me. It also studies about HRM and its role and challenges in a learning organization. More than 15,000 of its . On the other hand, the intangible resources are those which have no physical presence but still are owned by the company, like market goodwill, brand value customer loyalty and other such assets that are earned over a long period sustainable growth and development and cannot be bought from the market. Q&A. It is the duty of HRM to develop a good culture in an organization empowered with good policies and practices by learning the external and internal changes (Price, 2000). If you've ever had a last-minute change of plans and needed to change your flight, your wallet is probably still stinging from hefty cancellation fees and nonrefundable tickets. Southwest Airlines case study on pages 101-102 of the text. Jiang, K., Lepak, D. P., Han, K., Hong, Y., Kim, A., & Winkler, A. L. (2012). That's our welcome gift for first time visitors. As technological changes are in a fast manner, it becomes more difficult to predict the future developments and plan for the future changes (Gilley, 2000). It captured the market by charging low price and providing frequent flights. Registered office: Creative Tower, Fujairah, PO Box 4422, UAE. o Develop and justify business strategies for each of the 3 HRM implications. In other words, the model basically says that companies should try to enhance the productivity of their existing resources rather than looking for new resources to meet new opportunities. If people feel support and encouragement from management, they will be motivated to do their jobs well. The VRIO framework states the question of value, rarity, imitability and organization. Recruitment and Selection Policies regarding recruitment and selection are the framework for making decisions in the hiring process. Routledge. An analysis of current strategies and issues; Identify the type of strategy Southwest Airlines is following. Choose two or three of the most critical risks and discuss their potential impacts on your selected alternative. Even though in todays fast changing world, the importance of learning organization increasing, there are criticisms also against the concepts of learning organization and continuous improvement. There are price-sensitive leisure travellers and time-oriented business travellers. o Determine an HR strategy. Wilkinson, T. J. Review the following sources to assist with your recommendation: . By 1992, the airline had become the most leading carrier in passenger and in 1994; it dominated most of the leading markets consisting of intra-Texas market as 70% and intra-California market as 50% (Pfeffer & Sutton, 2013). Other companies, including T-Mobile, Microsoft and Hilton have had similar trajectories, demonstrating that change efforts often take time to bear fruit, Workforce said. The southwest airline expanded its operation in California in 1989 when USAir started losing the market due to poor customer service. Only one step away from your solution of order no. Journal of management, 39(2), 366-391. It refers to resources like, intellectual property, brand equity, business processes and other similar types. Try refreshing the page, or contact customer support. to receive critical updates and urgent messages ! The only type of aircraft that it flies is 737s fuel efficient and has 200 of them (Yang & Xinde, 2014). Get the free daily newsletter read by industry experts. Learning has only very little to do with getting information, rather it is merely a process for enhancing capacity. The role of competitors is always a threat to the company especially in a system with online ticket reservation. Southwest Airlines Airline Tickets, Flights, and Airfares. al., 1984) emphasizes the soft side of human resource management by giving importance to motivating people and development of a good organizational culture based on trust and teamwork. 60+ airlines have filed for bankruptcy protection under Chapter 11. It generally has flight time of 65 minute and believes in giving non-stop fly to its customers. It is essential for a learning organization to make creative and better ways of learning and improving its performance. The airline became the passenger boarding leading airlines in 1993 and served 10 cities by 1995. Southwest Airlines case study on pages 101-102 of the text. Palgrave Macmillan. One major component to the dynamic human resource structure of Southwest Airlines emanated from the charismatic leadership spearheaded by the company's founding member Herb Kelleher. University of Phoenix. Furthermore, Southwest Airlines has a significant union representation, which will only worsen the, issue. Develop and justify business strategies for each of the 3 HRM implications. As Southwest Airlines consider its employees more important than any other resources it can be concluded that the HRM model used by the Southwest Airlines is the Harvard model. Discovering Your Personal Rhythm for Healthy Living.docx, You've been told that the HR Director is pleased with the work you've completed for the organization and would like to take your contribution to the next level. The airlines have always followed the strategy of low costs, low fares and frequent flights. The Human Resource department of the Southwest airlines was called as the Peoples Department which is different from other airlines. Managerial Accounting vs. Financial Accounting | Differences & Uses, Kotter's Change Model | Kotter's 8 Step Change Model: Examples, Competitive Advantage & Corporate Social Responsibility, Porter's Three Generic Strategies | Low Cost, Focus & Differentiated Strategies, Perceptual Errors in the Workplace: Factors that Distort Perception, Business Case Study: Unilever Corporate Culture & Values, Compensation Management: Theories & Challenges. 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