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2 Summative Assessment: Strategies David Leonard University of Phoenix ORG/535 Dennis Cashman 24 October, 2021 Summative Assessment: Strategies An Executive Summary of the HR Strategy Project Southwest Airlines Corporation is a leading aviation company in America. The aviation company has a paramount reputation in providing frequent, short-distance and relatively low-priced airline services to its potential clients. Southwest Airlines has a splendid mission of delivering high-quality services to its clients worldwide, including a sense of warmth and friendliness. The aviation corporation is a famous firm known for its superb human resource (HR) management and policy management (Chishty-Mujahid, 2017).
Notably, the corporate culture ensures consistency within the workforce to better the organizational goals. Its distinctive culture and values enable it to stand firm among the global competitors. The human resource policy of recruitment chooses the optimal and competent candidates with innovativeness and suitable for the business industry. Strategically, the company employs talented candidates based on their unique attitudes and values for the aviation industry. Thus, these key aspects increased its sustainability and ensured a low worker turnover.
Current Strategies and Issues Currently, Southwest Airlines is exceptionally known for its employee-driven policies. The organizational culture is sturdily instilled in the entire recruitment process. The workers are evaluated and scrutinized based on their attitude and merit. The company has been treating workers as a priority to make their potential clients happy and satisfied (Crane, & Hartwell, 2018). The aviation corporation strives to provide high-quality services to its customers, gaining a high competitive advantage.
Operating at low costs is another strategy that Southern Airlines has applied in its management system. The aviation firm has consistently recorded history of low-cost operations despite the global pandemic. Indeed, it has concisely controlled the aviation market through such cost policies since many clients prefer high-quality and exceptional services. The COVID-19 pandemic is one of the current issues affecting the company. For instance, the corporation has adhered to the health guidelines limiting the number of passengers on board.
Strategy Type for The Southwest Airlines The aviation company operates under various strategies. Typically, most of the strategies include employee-driven models and low-operational costs. According to Mr. Kelleher, the corporation co-founder, the firm's paramount group incorporated the individuals who served it (Cote, 2018). Markedly, the corporation has an exceptional mission of placing its employees at their peak, accords them a priority, and recognizing them accordingly.
In actuality, treating the workforce well has created a happy and conducive working environment for everyone attracting many clients and boosting the company's financial success. Such a strategy has contributed to tremendous and optimal outcomes such as continual years of operations and profit-making. Again, the employee-driven approach has enabled the corporation to continue leading in having minimal customer complaints. The company has not recorded layoffs recently, and almost all employees treasure its operations (Dewan, 2015). By controlling its costs, the company continues operating under low-cost strategies enabling it to remain competitive in the global marketplace.
HRM Implications for The Southwest Airlines One of the primary elements contributing to the efficacy of Southwest Airlines incorporates its efficient human resource management approach. According to the company's Porter's model, its generic system for competitive advantage warrants the attractiveness of its quality services towards its growth. Human resource management is based on low-costs, innovative strategies and high-quality operations. This makes the workforce pleased and satisfied (Asahi, & Murakami, 2017). The HRM implications encompass a happy staff, satisfied clients, and increased firm's ranks by prioritizing their services.
This makes the company famous for its HRM style, followed by T-Mobile and Goldman Sachs. Splendid treatment on employees has increased their happiness and comfortability in serving customers leading to minimal complaints. Such a good treatment contributes to exceptional service delivery, attracting more clients and increasing the total revenue (Chishty-Mujahid, 2017). Hence, the three HRM implications are sturdily correlated, making the company sustainable and globally renowned as the leading corporation in managing and treating employees and clients outstandingly. Business Strategies for the HRM Implications To foster a pleased staff, the corporate strategy involves integrating the team into its values and culture.
Such a strong correlation aids the corporation in finding it easy and cost-effective when managing employees. To foster customer satisfaction, the firm utilizes an input-output model by treating its workers superbly better for them to treat the clients likewise. A pleased and grateful team will apparently offer the best services to the potential clients, increasing their satisfaction scores (Thomas, 2015). There is a need to understand that a happy and satisfied client is the cornerstone for every company's success and sustainability. The other business approach linked to the rise in position or rank entails controlling the whole aviation marketplace.
Notably, Southwest Airlines gladly enjoys the entire market process primarily through this approach. This makes it famous and attracts numerous customers globally, increasing its customer base. Determining a Human Resource Strategy The human resource approach is the company's optimal strategy in managing people, which helps create a concrete alignment with its operation and services. It is imperative to note that the HR strategy incorporates central fields such as hiring, employee compensation, performance appraisal, and employee training programs. Thus, Southwest Airlines' human resource approach is typically an employee-driven and aligned model (Dewan, 2015).
Some of the vital activities within the organization encompass the employment of competent workers with the right attitudes and values. Such a role has numerous subsections such as employee training, employee compensation and career development. The company's ranking and emphasis on the workers aid it guaranteeing a good client relationship, customer satisfaction and a conducive workplace contributing to happy services, sustainability and profitability. References Asahi, R., & Murakami, H. (2017). Effects of Southwest Airlines' entry and airport dominance.
Journal of Air Transport Management , 64 , 86-90. Chishty-Mujahid, N. (2017). Southwest airlines’ successful economistic, cost-leadership strategy examined in light of Paul Lawrence’s renewed Darwinian theory: an analysis. Journal of Global Business Insights , 2 (2), . Cote, R. (2018).
Leadership Analysis: Southwest Airlines-Herb Kelleher, CEO. Journal of Leadership, Accountability & Ethics , 15 (1). Crane, B., & Hartwell, C. J. (2018). Developing employees’ mental complexity: Transformational leadership as a catalyst in employee development.
Human Resource Development Review , 17 (3), . Dewan, N. (2015). A review of the literature Success story and leadership sort of Southwest Airlines. Global Journal of Research in Business & Management , 2 (1), 92-95. Thomas, M. (2015).
Strategic principles at Southwest Airlines. Strategic Direction . International HR Principles David Leonard University of Phoenix ORG/ September 2021 Introduction Human resource management refers to the management or administration of the employees within an organization, and it is influenced by institutional affiliations and cultural norms. A human resource management practice differs based on the national culture of a country, and the practice functions differently around the world. Each country's philosophy of human resource management differs from its practice in the rest of the world.
Human resource management in the international context refers to employing and developing people in an international organization (Schwab, 2010, September). Global human resource management refers to managing people around the world.. Managing human resources across cultures and across countries is a core function of the management of international companies. The different countries apply several human resources management principles to their value chain activities of their country organizations in order to increase their human resources management business practices (Schwab, 2010, September). Canada's human resources management principles are good in that they fit into the organization that is being controlled and managed by my group.
In order to improve on the human resource management principle between the two parties, payment systems should be more efficient and effective with the other countries globally. Human resource management involves the employees in an organization or the management of the workers. The human resource management depends on the institutional affiliation and the cultural framework. The international human resource management therefore means the process of employing and developing people in the international organization. There are several principles that are used of the human resources management that are used by the different countries to increase their human resource management business practice in their value chain activities of the country organizations.
2 Recruitment process In a non-union workplace within Canada, there are several types of legislation governing the recruitment process. Legislations that are related to employment equity include laws governing the Constitution, labor laws, human rights laws, etc. Human rights commissions in Canada support the creation of programs and policies that relate to employment equity. Permission is required from the legislation in order to provide consulting and education services. (Schwab & Sala-i-Martin, 2011) say that employment equity promotes the recruitment of excellent employees that may otherwise be avoided. A diverse workforce is more able to offer employers skills, talents, and innovation (Schwab & Sala-i-Martin, 2011, September).
Despite the small impact the law has on recruitment practices, it plays a significant role in selection processes by affecting what employers may be looking for. As a result of the selection of the right candidates, the human resource management is able to help new recruits become more productive members of the organization. There are major types of the legislation that affects the recruitment process in a non – unionized workplace within Canada. The employment equity helps the recruitment process to attract and keep the excellent employees who may be avoided. The employment equity provides the employers with talents, skills and the innovation that workforce that is more diverse can offer.
The law implemented on the recruitment practice they have the little impact but they take part in the selection practices through the practice of affecting what the employer may be looking for. 3 Payment system Canada uses a wide variety of payment instruments to fund its purchases of goods and services, its financial investments, as well as the process of transferring money between individuals. In addition to using cash, credit and debit cards, and e-money, the human resource management uses a variety of other payment instruments. As part of the payment system, there are the instruments, procedures, technical arrangements, and rules used for transferring funds. Payments are processed in two steps, which include clearing and settlement (Schwab & Sala-i-Martin, 2011).
In the clearing process, payment orders that have not yet been settled are transmitted, confirmed, and reconciled. Settlement represents the process of releasing payment obligations between two or more parties by transferring funds between them (Schwab & Sala-i-Martin, 2011, September). Besides the large value transfer system, the province of Canada also utilizes an automated settlement system. In addition to the outside payments between the two parties in that country, the international payment includes payments into and out of that country as well as payments from outside that country in that currency. Canada uses various payment instruments for the purpose of purchasing goods and services in making the financial investments and in the process of transferring from one person to the another.
The payment system refers to the set of instruments, procedure, technical arrangements and the rules used in the transferring of these funds. The process of settlement involves on the release of the payment obligations between the two or more parties by transferring on the funds between them. The two payment systems used in the Canada includes the large value transfer system and the automated clearing settlement system. 4 Labor relations A comparison of human resource management principles between Canada and the US focuses on high performance work systems as the basis for comparison. Culture and nationality contribute to the experiences of human resource management.
The justifications for divergence and convergence presuppose that the human resource management system must stay divergent. The technique disregards the possibility that some aspects of the human resource system are merging in other sectors (Schwab, 2018, November). The variety of different local and national solutions to human resource challenges that are experienced in an organization should be considered while analyzing international human resource management principles on labor relations. The cost of human resources is a major issue in international human resource management. Most multinational organizations devote the majority of their resources to ensuring that employees understand why they may be the most cost-effective in an organization (Schwab, 2018, November).
Global networking is the most essential feature in international human resource management, and it is becoming increasingly crucial as a result of specified organizational changes (Schwab, 2018, November). The global network should be suggested for use in the organization's labor relations; it should decrease bureaucratic effects and serve as the most significant decision-making group. The view of the human resource management principles for the organization in Canada emphasizes on the high performance work systems as the basis of the comparisons between the two countries. The cultural and the national difference which influence the experienced reality of the human resource management. The divergence and the convergence arguments assumes that the human resource management system has to remain divergent.
Many international organizations they are making the substantial investments in getting things right. The physical and the cultural difference presents barriers in labor relation to the successful knowledge transfer among the human resource professionals. The global network should be recommended to be used in the labor relation of the organization and it should reduce the impacts of the bureaucracy and to act as the most important in the decision making groups. 5 Training and support Selection, recruiting, and retention methods vary greatly from nation to country and culture to culture. In cultures with a high performance focus, selection and recruiting are centered on job technical abilities and associated knowledge.
They favor the use of internal labor markets to encourage loyalty in collectivist civilizations. Training and assistance are necessary since newly hired employees find it challenging to integrate into the organization's strong social networks (Schwab, 2018, November). Cultures with a high level of uncertainty avoidance employ more selection tests and perform more interviews. This demonstrates a strong willingness to gather objective facts in order to make a selection decision prior to training on international human resource management concepts analysis. Compensation and benefit plans are tailored to the many cultural contexts in which a business operates.
Low avoidance cultures rely on individual performance based compensation, whereas avoidance cultures prefer skills based incentive schemes. Cultural differences have a significant impact on training and assistance (Schwab, 2018, November). The fatalistic culture ignores the value of personal growth and training. To achieve a high degree of confidence and credibility, high power distance cultures use top management as teachers rather than external trainers. In the portfolio of management activities, human resource management is more essential.
Globalization has aided the development of multinational human resource management. Selection, recruitment and retention practices differs from one country to another across the different culture. The selection and the recruitment in cultures of the high performance orientation they are based on the job technical skills and the related knowledge. The collectivist cultures they prefer the use of the internal labor markets to promote on the loyalty. The fatalistic culture it does not recognize on the importance of the development and training.
The high power distance cultures employ the senior managers instead of the external trainers as the instructors to ensure on the high level of trust and credibility. 6 References Schwab, K. (2018, November). The global competitiveness report 2018. In World Economic Forum (Vol. 671).
Schwab, K., & Sala-i-Martin, X. (Eds.). (2011, September). The global competitiveness report . Geneva: World Economic Forum. Schwab, K. (2010, September). The global competitiveness report . Geneva: World Economic Forum.
Paper for above instructions
Executive Summary
Southwest Airlines Corporation, a trailblazer in the aviation industry, is renowned for its commitment to low-cost, high-frequency airline services. The company emphasizes a customer-first mentality, supported by innovative human resource (HR) strategies that prioritize employee satisfaction. This paper explores the efficacy of Southwest Airlines' HR strategy, which emphasizes employee-driven recruitment, training, and retention policies—all fundamental components in maintaining its competitive edge in the global aviation market, particularly in times of crisis like the COVID-19 pandemic.
Current Strategies and Issues
Southwest Airlines has cultivated an exceptional employee-driven policy, which forms the backbone of its customer service approach. The company recruits employees not only based on technical skills but on cultural fit and attitudes conducive to creating a positive work environment (Chishty-Mujahid, 2017). This focus on culture enhances employee engagement, which, in turn, translates into better customer service (Crane & Hartwell, 2018).
The pandemic has posed significant challenges, limiting operational capacity and altering customer behavior (Dewan, 2015). Despite these challenges, Southwest Airlines has maintained its reputation as a low-cost provider through efficient operations and strategic cost management (Cote, 2018). The company continues to adapt its strategies to not only survive but thrive in a volatile market landscape.
Strategy Type for Southwest Airlines
Southwest Airlines employs a robust two-pronged strategy: an employee-driven model and a low-cost operational approach. As co-founder Herb Kelleher articulated, the company’s philosophy revolves around treating employees well so that they can provide exceptional service to customers (Cote, 2018). This relationship has proven to reduce turnover rates, enhance customer satisfaction, and ultimately lead to increased profitability.
By adhering to a low-cost operating model while investing in employee satisfaction, Southwest Airlines has established a competitive advantage unmatched in the industry. Research indicates that companies prioritizing employee welfare report lower levels of complaints and higher levels of financial success (Thomas, 2015).
HRM Implications for Southwest Airlines
The strategic implications for HRM at Southwest Airlines focus on aligning employee and organizational goals. Through effective management of human resources, the company creates a positive feedback loop where happy employees lead to satisfied customers, hence driving growth (Asahi & Murakami, 2017).
Southwest Airlines is also recognized for its collective culture and participatory decision-making processes, which further enhance employee engagement and satisfaction levels (Chishty-Mujahid, 2017). Higher employee morale directly correlates to enhanced service quality, customer retention, and company prestige, which further solidifies its standing in the aviation sector.
Business Strategies Linked to HRM Implications
To continually foster satisfied employees, Southwest Airlines implements cultural alignment strategies that integrate organizational values into employee training and onboarding practices. This model enables the firm to have fewer misunderstandings regarding organizational goals and employee expectations. Importantly, investment in employee training translates directly into enhanced customer satisfaction (Dewan, 2015).
Additionally, the organization employs an input-output model to create reciprocal value exchanges between employees and customers. For instance, satisfied employees are more inclined to go above and beyond for customers, consequently increasing customer loyalty and business success (Thomas, 2015).
Determining a Human Resource Strategy
Southwest Airlines’ HR strategy emphasizes employee-centric practices focused on hiring, training, and compensation. The company is meticulous in its recruitment process, emphasizing the need for candidates who align with its culture of providing friendly, high-quality service. Employee training is tailored to keep all staff updated on procedural, operational, and cultural expectations, ensuring a unified, high-standard service delivery method (Dewan, 2015).
The strategy also includes competitive compensation packages that motivate employees to perform at their best, thereby enhancing overall productivity and customer satisfaction levels. Such practices create a positive workplace atmosphere contributing to lower employee turnover and higher productivity (Crane & Hartwell, 2018).
Conclusion
Southwest Airlines exemplifies how effective HRM can foster a robust competitive advantage through employee-oriented practices. The company's commitment to maintaining a positive workplace culture, coupled with innovative HR strategies, has proven effective, even amidst economic uncertainties like those brought on by the COVID-19 pandemic. By integrating employee satisfaction into its core operational philosophy, Southwest Airlines continues to redefine success in the aviation sector while creating a model for others to follow.
References
1. Asahi, R., & Murakami, H. (2017). Effects of Southwest Airlines' entry and airport dominance. Journal of Air Transport Management, 64, 86-90.
2. Chishty-Mujahid, N. (2017). Southwest airlines’ successful economistic, cost-leadership strategy examined in light of Paul Lawrence’s renewed Darwinian theory: an analysis. Journal of Global Business Insights, 2(2).
3. Cote, R. (2018). Leadership Analysis: Southwest Airlines-Herb Kelleher, CEO. Journal of Leadership, Accountability & Ethics, 15(1).
4. Crane, B., & Hartwell, C. J. (2018). Developing employees’ mental complexity: Transformational leadership as a catalyst in employee development. Human Resource Development Review, 17(3).
5. Dewan, N. (2015). A review of the literature Success story and leadership sort of Southwest Airlines. Global Journal of Research in Business & Management, 2(1), 92-95.
6. Thomas, M. (2015). Strategic principles at Southwest Airlines. Strategic Direction.
7. Schwab, K. (2010). The Global Competitiveness Report. Geneva: World Economic Forum.
8. Schwab, K. & Sala-i-Martin, X. (2011). The Global Competitiveness Report. Geneva: World Economic Forum.
9. Schwab, K. (2018). The Global Competitiveness Report 2018. World Economic Forum.
10. Cote, R. (2018). Leadership Analysis: Southwest Airlines-Herb Kelleher. Journal of Leadership, Accountability & Ethics, 15(1).
Through these various strategic measures and HRM practices, Southwest Airlines continues to set a benchmark for excellence in operational effectiveness and customer service within the aviation industry.