Southwest Airlines -Apply: Signature Assignment: Strategies

You have been told that the HR Director is pleased with the work you have completed for the organization and would like to take your contribution to the next level. She would like you to review several strategic reports on the organization and provide feedback on how you think Southwest HR should move forward.

Review the recommended sources in addition to your own research.

Compile a strategy recommendation to the HR Director to be used for company-wide decisions. Include the following information in your report:

o An executive summary of the HR strategy project
o An analysis of current strategies and issues
o Identify the type of strategy Southwest Airlines is following.
o Identify 3 HRM implications for Southwest Airlines.
o Develop and justify business strategies for each of the 3 HRM implications.
o Determine an HR strategy.

Use at least 2 sources other than those provided. Review the following sources to assist with your recommendation:

o Southwest Airlines case study on pages 101-102 of the text.
o SWOT report in detail on Business Source Complete.

Format your citations according to APA guidelines.

Submit your assignment.

Human Resource Strategy: A Case of Southwest Airlines

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Human Resource Strategy: A Case of Southwest Airlines

Executive summary

The strategic reports of Southwest Airlines show that the company is in a good strategic position in general, considering mainly its operating performance, fleet network, fare structures and service strategy. An analysis of its current strategies and issues, as well as identification of its business strategy as being an innovative strategy, puts it at a favourable position in the long-term. This has implications on the human resources of the company, mainly revolving around career management, staffing practices and reward systems. It can further be identified that an innovative strategy, a quality strategy and a cost-reduction strategy are the business strategies that can be developed in light of these HRM implications. An HR strategy that makes use of staff talents, maintains competitive salaries and an attractive organizational culture is likely to retain the best staff while attracting the best in the labour market, to ensure that there is growth and success of the company (Bratton, 2012). This will see to it that Southwest Airlines has an HR strategy that fits well with its business strategy, promoting its competitive advantage in the market. The company will be less hit by threats such as increasing labour costs, pilot shortage, tight government regulations and intense competition. I have discussed these matters in detail below.

An analysis of current strategies and issues

Currently, Southwest Airlines uses an effective innovative strategy. It focuses on maintaining a culture where human resources are considered crucial for business success. This kind of strategy requires Southwest Airlines to make wise decisions in how it utilizes its resources to meet business objectives, have high-value outputs and have a competitive advantage over its competitors (Southwest Airlines, 2019). The value created is expected to be new and attractive to customers. The company is known to have been built on factors such as labour harmony and low costs. It highly values its workers as it has always stood up for them, despite the labour strife in the airline industry. The workers are determined to see the company succeed, and this says a lot about the culture in the company (Southwest Airlines, 2019). An example of this determination is the recently launched Travel Content Partnership by its employees out of their own volition to see the company differentiate its services and achieve its goals and objectives.

Despite the good strategies and great culture, Southwest Airlines is being faced by several issues. Among these issues is the opposition of some of the workers in the union towards the new leadership. One of the union representatives was quoted saying that the leadership of Herb Kelleher was better off than that of the current CEO, in that the culture was more family-like when Herb was still the CEO than it is now. Several competitors are rising up to challenge its competitive advantage. Mergers among various airlines have successfully been able to challenge their pricing structure, labour costs and target their customers. Southwest Airlines is also facing issues such as dependence on a single supplier for aircraft and engines; Boeing. In case the supplier is unable to meet their demand for aircraft and engines or is in wrong standing in the public limelight, this is likely to affect the business of Southwest Airlines (Southwest Airlines, 2019). Other issues include a shortage of pilots, limited presence in the air cargo market, increasing labour costs in the US and tight government regulations.

HRM implications

In light of these strategies and issues, the HR department will have to come up with ways to ensure that the workforce of Southwest Airlines is satisfied and motivated as they do their work to ensure maximum competitive advantage and success of the company. Something to note is that 83% of the workforce belongs to a union. When workers are united and have representatives, they can voice their opinions and this keeps the employer accountable in how they treat their employees to avoid a bad reputation in the eyes of the public. The directors and top-level management should consider the opinions of the workers when making major HRM decisions (Carlos et al., 2000). Some of the HRM implications at Southwest Airlines can be broadly listed as staffing practices, reward systems and career management.

Staffing practices

Staffing practices involve how the company attracts, chooses, conducts training and develops its employees to enable the good performance of the organization (Carlos et al., 2000). Southwest Airlines needs to recruit and orient their employees in a way that will enable them to work towards the success of the company. The employees selected should demonstrate their ability to be good performers to contribute to the growth of the organization. An important point to note is that Southwest Airlines desires to increase their revenue, and this is to be considered when deciding on the quality of employees to be recruited. Southwest Airlines’ innovative business strategy will be very well upheld by employees who are carefully and professionally selected. If HR makes the best correct decisions, then the contribution of employees to the production of innovative products and services at the quality will be maximized. This kind of business strategy requires employees to work differently (Krishnan & Singh, 2011). The newly recruited employees will, therefore, require the mindset and training to work differently from the norm.

 Career management

Career management considers that the roles of individuals should be more aligned to their needs. Workers are more proactive in deciding their career path and do not just rely on their employer to ensure career growth. Career paths and job descriptions are not rigid and traditional but based on flexibility in the modern labour market (Carlos et al., 2000). At Southwest Airlines, the employees feel that the culture is more corporate than family, and desire a change of this kind of culture. The HR department may need to conduct training on change management to ensure that workers can adapt to the new culture that comes with new leadership (Bratton, 2012). They may also need to adapt to the new employment requirements, as there may need to be employed on a part-time basis to ensure cost reduction and flexibility (Krishnan & Singh, 2011). In developing a business strategy, a quality strategy applies here. Employees are required to work smart in managing their own careers and ensuring growth in skills and level in the hierarchy. This ensures that the best quality of services is offered at Southwest Airlines.

 Reward system

The reward system has evolved. Employee compensation makes more sense when it is based on individual and group performance and acquisition of new skills. Effectiveness of an employee is more sensibly based on credibility and results, rather than job description, authority and title. The person, rather than the job, should be paid (Carlos et al., 2000). Southwest Airline’s HR department needs to adopt such a strategy in its reward system, as it seeks to make maximum use of its employees, while at the same time offering job satisfaction. A business strategy of cost-reduction most relevantly applies to this HRM implication. Once employees are paid for what they do, funds will be directed towards the appropriate expenses. No wastage will be encountered as they will be making maximum use of their time and available resources (Krishnan & Singh, 2011). A cost-reduction strategy requires that workers work harder, and it best applies in deciding on a reward system.

HR strategy

A suitable HR strategy should help the organization achieve its organizational goal. It should be resource-based, in that it makes the best use of its human resources to gain an advantage over its competitors. There should be a strategic fit between the business strategy and the HR strategy. Other factors to consider are the availability of high-performance, high-involvement and high-commitment management. The most appropriate HR strategy for Southwest Airlines is one that ensures that salaries are competitive enough to ensure that the most talented and productive employees are retained and not hijacked by the competitors. This will help to maintain the quality of services offered and the most innovative employees are retained in Southwest. The SWOT analysis performed showed that the cost of labour and hiring pilots is on the rise in the US (Southwest Airlines, 2019). Reasonable consideration should be taken to ensure that the most talented are employed, ensuring that costs are not unnecessarily high. The organizational culture should also be favourable to the employees as it will ensure optimum motivation for good results.

Conclusion

In developing a suitable business strategy and HR strategy, it is important to consider the company’s position and analyze its internal and external environment. The HR strategy should fit into the organizational strategy after highlighting possible HRM implications. Southwest Airlines’ strategies will do well in the long-term if it can fit its HR strategy into its organizational strategy and treat human resources as a vital part of business success.

References

Bratton, J. (2012). Strategic Human Resource Management, Strategic human resource      management is the process of linking the human resource function with the strategic    objectives of the organization to improve performance.‖(two-chapter). Human resource           management journal, 37-71.

Carlos, S. R., Whittington, R., & Quintanilla, J. (2000). Human resource management      implications of new forms of organizing (No. D/409). IESE Business School.

Krishnan, S. K., & Singh, M. (2011). Strategic human resource management: A three-stage          process model and its influencing factors. South Asian Journal of Management, 18(1),       60-82.

Southwest Airlines. (2019, August 6). Southwest Airlines And Matador Network Launch Travel             Content Partnership Inspired By Southwest Employees’ Hometown Heart.             https://www.swamedia.com/releases/release-866ca64159447a1304759faa330a68d6           -southwest-airlines-and-matador-network-launch-travel-content-partnership-inspired-   by-southwest-employees-hometown-heart?query=human+resource.