8. Quality Analysis of HR Strategies: Southwest Airlines and Airport Express Train

Executive Summary

Leadership plays a main role in driving the organization towards success in this competitive world. Every organization, whether small or big, old or new, is concerned with human beings. Thus, they need effective people management. Over the past years, the recognition of line managers in an organization has been increasing dramatically.

It is because the HR policies that are made are being implemented in the form of people management activities, i.e., employee engagement, performance management, talent management, etc. (Tracy, 2014). In order to have effective people management, it is recommended to use micro-level meta-analysis, which helps bring out the highest performance outcome (HPW) for the organization. This report emphasizes evaluating the HR strategies of two companies belonging to the travel industry, namely Southwest Airlines (SA) and Airport Express Train (AET). Meanwhile, the depth comparison has been made to explore the similarities between the companies and differences too.

Introduction

Leading people in any organization was designed to provide a unique opportunity to take the leadership power and drive the organization forward. It enables the management to utilize the resources at the optimum level. During this process, it uses cutting-edge tools and practices from HR to meet the day-to-day challenges more effectively. In this process, the assignment will explore people management theories and concepts, and in-depth case analysis will be done to find out the practical implementation of them. This report emphasizes critically evaluating the HR practices of two different organizations and also explains the importance of the high performance work system (HPWS) as a special measure taken by the HR department in any organization (2012books.lardbucket.org, 2015).

Nowadays, high-performance work systems have become an interesting topic in human resource practices in most organizations. It has the ability to create a working environment where employees can demonstrate greater involvement and responsibility towards the organization. The overall HPWS involves putting all the HR practices together in order to determine the job that the company needs to do, identify and attract suitable employees, evaluate their performance, and compensate them to work for a long time.

Analysis

It is already stated that both organizations are following the High Performance Work System (HPW) as a special measure for the success of the company. As stated, SA has hired 831 new employees out of 90,043 employees. Similarly, AET hires 12 members out of 400 resumes. These facts show that both companies possess effective and enthusiastic staff. According to this concept, the success of HR practice depends on the attitude and behavior of the individual employee. To have an employee’s attitude match the organizational attitude and behavior, they have undergone many activities, i.e., strict selection, an effective training process, information sharing, performance management, etc. (Mindtools.com, 2015).

Moreover, according to Human Relation Theory in Hawthorne studies, it believes in enhancing attitudes, relationships, and leadership styles. It results in the performance of the organization by motivating employees as well as customers. These activities can be seen in both organizations, as both SE and AET are given priority for culture and behavior in training sessions, so it is evidence that theory has been implemented (Douglas, Douglas, & Douglas, 2011).

The major dissimilarities between SE and AET in HR issues are the job security provided by both companies. The company SE has made official promises to provide job security in every circumstance, but AET has no such official policy that promises to provide job security. There are some differences in political and legal factors between these two companies that are affected by PEST analysis. According to Norwegian law and policies, the management of the company gives preference to women employees, as followed by AET.

AET involves providing many other benefits that are different in the US political system. Besides that, there are some labor-friendly laws followed by AET, some of which are absent in the United States. The wage rate between the AET and SE has a significant difference in the case of the AET as per the Norwegian labor-friendly laws. The other dissimilarity is that SE follows the tradition approach and believes that secured information sharing is done based on effective relations and trust. But AET believes in modern technology for information sharing and easy and accurate work.

The HR practices of both companies contribute to success by enhancing employee relations and fostering productivity and organizational growth. Their motivation policies, including training, development, and rewards, help attract skilled employees whose attitudes align with organizational values. Effective culture, communication, and trust develop through training, supporting innovation and self-managed teams. Both SA and AET exemplify success, though caution is needed when applying lessons from their experiences.

Research supports the benefits of implementing HR practices characterized by high responsibility and engagement. A meta-analysis of 19,319 organizations shows strong connections between HR practices—such as training, compensation, and employee involvement—and positive outcomes, highlighting the importance of a cohesive HR framework. Additionally, key work results stem from employee empowerment, job security, fair treatment, and organizational support.

Internal consistency in HR practice is defined as the result of the multiple combinations of HR practices that bring positive growth for the company. Training plays a big role in performance management and skill development. Both companies follow training methods to improve skills and knowledge for the sake of performance management. Both companies use technology to make training sessions easier and cheaper, so we can say that internal consistency has been applied to make organizational performance richer (Executiveeducation.wharton.upenn.edu, 2015).

Meanwhile, customer service is one of the activities that can be identified in both companies to satisfy the customers by providing their products and services. Beyond that, there are many other activities, such as giving out compensation, grievance settling procedures, providing employee security in different ways, working hours fixed by company management, leadership style, and hiring process, which are the multiple practices made by the HR department as an act of internal consistency.

Conclusion

From the above discussion, it can be concluded that SE and AET have been applied as internal consistent practices, regardless of the similarities and differences among them. The final goal of the company is to motivate the employees by fulfilling their needs and achieving high-performance work at the workplace.

There are various ways in HR practice to motivate the employees, but building trust and relationships is a major HR practice implemented in the company to enhance performance and productivity too, for instance, collective compensation pay and AET by the way of adopting labor-friendly laws that have been applied. Thus, it can be stated that HR practices are a tool used by the company to enhance the performance of individuals and organizations.

Recommendations

Following are the recommendations for AET and SA for the betterment of work:

To enhance the effectiveness of Human Resource Management (HRM) practices at Airport Express Train (AET) and Southwest Airlines (SA), the following recommendations are proposed:

1. Promote Interest in HRM: Both AET and SA should actively promote the importance of HRM within their organizations. This includes educating management on how effective HR practices can alleviate many day-to-day challenges they face. By showcasing successful HRM initiatives, the organizations can foster a culture where HRM is viewed as a strategic partner rather than just an administrative function. For instance, training programs can be established to highlight how HRM contributes to organizational success, thereby encouraging managers to engage more with HR activities.
2. Cultivate HR Skills and Knowledge: AET and SA must invest in developing HR skills, knowledge, and practices among their management teams. Managers should be equipped with training in conflict resolution, effective communication, and team building, enabling them to address employee concerns proactively rather than reactively. This could involve workshops, seminars, and online courses focused on enhancing HR capabilities, ensuring that leaders are well-prepared to manage their teams effectively.
3. Integrate HRM into Leadership Training: HRM should be an integral part of leadership and management training programs. By embedding HR principles into leadership development curricula, both organizations can create leaders who understand the value of fostering a positive work environment. This integration will help ensure that leaders prioritize employee engagement, development, and satisfaction, ultimately improving overall organizational performance.
4. Foster Employee Development: AET and SA should prioritize individual development and learning opportunities for employees at all levels. This could include establishing mentorship programs, offering career advancement training, and encouraging employees to pursue further education. By investing in their employees’ growth, both organizations can cultivate a more skilled and motivated workforce, leading to higher retention rates and enhanced job satisfaction.
5. Enhance Communication Channels: Effective communication is vital for maintaining a healthy organizational culture. AET and SA should create clear and open lines of communication between management and staff. This could involve regular town hall meetings, feedback sessions, and employee surveys to gauge sentiment and gather input. Such initiatives will not only empower employees but also help management address concerns promptly, fostering a sense of community and engagement.
6. Implement Technology in HR Practices: Both organizations should leverage technology to enhance their HR processes. This includes adopting HR management systems that streamline recruitment, performance evaluations, and employee engagement initiatives. Using technology can simplify HR tasks, reduce administrative burdens, and provide valuable data insights to inform decision-making.
7. Encourage Feedback and Continuous Improvement: Establish a culture of continuous improvement by encouraging feedback from employees regarding HR policies and practices. AET and SA can implement regular review cycles to assess the effectiveness of HR initiatives, allowing for adjustments based on employee input. This approach demonstrates a commitment to employee satisfaction and fosters a culture of responsiveness.
8. Focus on Diversity and Inclusion: AET and SA should emphasize diversity and inclusion within their workforce. Implementing policies that promote a diverse hiring process and create an inclusive workplace can enhance creativity, innovation, and overall employee morale. This could involve training for hiring managers on unconscious bias and creating employee resource groups that support underrepresented staff.
9. Establish a Clear Performance Management System: A structured performance management system should be established to ensure that employees understand their roles, objectives, and opportunities for growth. Both organizations can benefit from regular performance reviews that provide constructive feedback and outline career development paths, reinforcing the alignment between individual and organizational goals.
10. Leverage Employee Recognition Programs: Recognizing and rewarding employees for their contributions is vital for motivation and engagement. AET and SA should implement employee recognition programs that celebrate achievements and milestones, fostering a culture of appreciation. This can include awards, bonuses, or public acknowledgment, reinforcing positive behaviors and encouraging continued excellence.

By implementing these recommendations, AET and SA can enhance their HR practices, leading to increased employee satisfaction, retention, and overall organizational success. As HRM becomes more integrated into the core functions of these organizations, they will be better positioned to navigate the challenges of the competitive travel industry while fostering a positive workplace culture.

References

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Executiveeducation.wharton.upenn.edu,. (2015). Leading People in Organizations — India — Wharton Executive Education. Retrieved 25 October 2015, from http://executiveeducation.wharton.upenn.edu/for-individuals/all-programs/leading-people-in-organizations-india

Halogen Software Talent Management Blog,. (2013). The Importance of Effective People Management to the Success of HR Strategy. Retrieved 25 October 2015, from http://www.halogensoftware.com/blog/the-importance-of-effective-people-management-to-the-success-of-hr-strategy THESE WEBSITES ARE UNRELIABLE, MUST TAKE FROM JOURNAL, OR TEXT BOOK

Laynetworks.com,. (2015). Theories of Motivation – Motivation Tutorial – management tutorials – laynetworks.com. Retrieved 25 October 2015, from http://www.laynetworks.com/Theories-of-Motivation.html

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Douglas, A., Douglas, A., & Douglas, A. (2011). Human Relations Management Theory Basics. Business.com. Retrieved 28 October 2015, from http://www.business.com/management-theory/human-relations-management-theory-basics/