Human Resource Strategies – Southwest Airlines

Human Resource Strategies – Southwest Airlines

Current strategies and issues

Southwest Airlines’ current human resource strategies have contributed to a positive reputation. The employee branding process is a complex strategy that the airline uses to motivate its employees.  A model that prioritizes the company’s missions and operating values guides this strategy. Once employees understand the company’s desired image, a psychological contract is established, leading to trust and commitment if the company upholds the same (Miles & Mangold, 2005). The second strategy that the company employs is prioritizing the employees over its clients. Employees come first, meaning that they are treated warmly and respectfully. This treatment is extended to the clients through employees, leading to customer satisfaction.

The airline’s main issue is the increasing labor costs. While this problem currently faces multiple American airlines, Southwest Airlines’ cost structure may be disrupted as the non-fuel costs increase. The airline concluded talks with its mechanics while negotiations with its flight attendants were ongoing (Levine-Weinberg, 2016). The pay increments cannot be entirely denied due to the company’s remarkable profits.

Human resource implications

First, industrial actions can emanate from disagreements between the airline and the employees. This can lead to loss of revenue, clients and high turnover as employees lose trust in the airline. Second, the negotiations are expected to increase the company’s operational costs as the payroll consumes more financial resources. This increase will affect the low-cost model that the airline uses for operations (Levine-Weinberg, 2016). Third, the airline’s employees will display more loyalty and commitment if the agreements turn out favorably. Southwest will record higher job satisfaction levels, making it an attractive employer to other job seekers. It is in Southwest’s best interests to increase the likelihood of the positive implications by choosing appropriate strategies.

Human resource strategies

Firstly, the Human Resource Department should ensure that a communication framework that allows employees to be heard exists. This applies to both union and independent employees. Communication is critical in ensuring that current negotiations do not escalate into disputes. Both parties will air their opinions and agree on the most favorable course of action. Secondly, the airline should stick to its psychological agreement and offer the employees a favorable deal in terms of better pay. Thirdly, the possibility of high costs is inevitable if the airline should pursue the positive implications. The organization may have to change its business model from a low structure to accommodate the new costs. To reduce the cost implications of the pay raises, the airline will have to cut back on recruitment and training costs (Noe, Hollenbeck, Gerhart, & Wright, 2019). Thus, the human resource department should adopt a new hiring strategy that requires the candidates to possess the necessary technical skills (Wright, 2008). This is achievable as the company becomes a desirable and attractive employer.

References

Levine-Weinberg, A. (2016). Southwest Airlines: New Labor Contracts Will Drive Unit Cost Growth. The Motley Fool. Retrieved from https://www.fool.com/investing/2016/09/19/southwest-airlines-new-labor-contracts-will-drive.aspx

Miles, S. J., & Mangold, W. G. (2005). Positioning Southwest Airlines through employee branding. Busines Horizons, 48, 535-545.

Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2019). Human Resource Management: Gaining a Competitive Advantage (11 ed.). New York: McGraw-Hill Education.

Wright, P. M. (2008). Human Resource Strategy: Adapting to the Age of Globalization. Alexandria: SHRM Foundation. Retrieved from https://www.shrm.org/hr-today/trends-and-forecasting/special-reports-and-expert-views/Documents/HR-Strategy-Globalization.pdf

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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. She’d like you to review several strategic reports on the organization and provide feedback on how you think Southwest HR should move forward.

Human Resource Strategies – Southwest Airlines

Review the recommended sources in addition to your own research.

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

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

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

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

Format your citations according to APA guidelines.