HR Design Decisions

Design Decisions

Choices				Analysis of how well each choice works
View of employees				The culture within Southwest Airlines has been one that other firms have attempted to adopt and implement within their companies. The promotion of employee well-being is demonstrated by employee-centered appreciation, recognition, and celebration (Brown, 2019). By valuing the employees and treating them as assets, the company is investing in its future.
Employees as expenses		Employees as assets
Compensation				As one of the major airlines, Southwest offers an array of benefits to its employees, including those considered to be noncontract employees. Health, Financial, Well-being, Community outreach, Employee engagement, and travel are just a few of the compensation perks offered by Southwest Airlines (Review, 2021). In 2018, Southwest Airlines employees earned $544 million in Profit Sharing. Coupled with a training and leadership development program, this makes Southwest a very attractive employer to applicants (2019).
Below market	Competitive		Above market
Training and Development				Southwest provides Leadership Development for Leaders at all levels. The Emerging Leadership Development program is a rotational program designed to develop well-rounded emerging Leaders. The Manager-in-Training
Spontaneous		Planned

				Programs offer intensive Leadership development to prepare Leaders for the next level. This in and of itself is a motivational tool for employees.
Job Descriptions				Along with the above-average compensation, Southwest Airlines HR strives to manage labor and design jobs so their employees are utilized most effectively while fulfilling the needs of the company. This airline actually spends more to recruit and train employees than any other airline (Brown, 2019)
Specific		General
Recruitment				Southwest’s HR team has a direct impact on the company’s overall culture, along with a commitment to diversity within its organization. Along with its hiring practices, this airline abides by policies that support employing persons with disabilities and our country’s military veterans.
External	Mixed		Internal
Onboarding – Socialization of new employees				Many companies’ onboarding process is limited to completing new hire paperwork, whereas Southwest Airlines embodies helping its new hires envision the difference they can affect within the company (Blogger, 2020). Not only do they inspire their new employees, but they also have what’s called the “Sponsor a New Hire” program, so each one is accounted for, as well as having someone invested in their success.
Limited		Extensive
Bargaining				Southwest Airlines maintains a Collective Bargaining agreement that supports not only its vision for the future of the company but also takes care of its employees and shareholders (2021). Roughly 83% of its employees are represented by a union.
Collective		Individual

References

Benefits: Southwest careers. Southwest. (2021). https://careers.southwestair.com/benefits. Blogger, G. (2020). Companies that really get onboarding. BambooHR. https://www.bamboohr.com/blog/companies-really-get-onboarding/.

Brown, L. (2019). Southwest Airlines CO.’S organizational culture & its characteristics: An analysis. Panmore Institute. http://panmore.com/southwest-airlines-co-organizational- culture-characteristics-analysis.

Labor contracts. Southwest Airlines Newsroom. (2021). https://www.swamedia.com/pages/contracts#:~:text=Roughly%2083%20percent%20of%20Southwest,flown%2C%20and%20most%20profitable%20airline.

Review, A. (2021). Southwest Airlines Compensation employee reviews. Comparably. https://www.comparably.com/companies/southwest-airlines/reviews/compensation.

Southwest Airlines employees Earned $544 million in 2018 profit sharing. – Southwest Airlines. (2019). https://www.southwestairlinesinvestorrelations.com/news-and-events/news- releases/2019/02-13-2019-195947063#:~:text=Southwest%20Airlines%20Employees%20Earn%20%24544%20Million%20In%202018%20ProfitSharing,-Southwest%20Airlines%20Employees&text=%22Our%20People%20are%20our%20greatest,Executive%20Officer%20of%20Southwest%20Airlines.

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Question

For each of these 7 HR design decisions, check the box for the choice that most matches where you think Southwest Human Resources falls. While the organization likely does not fall cleanly into one or the other extreme, pick the one that it more clearly resembles. Then, in the right-hand column, evaluate how well that choice works.