Southwest airlines strategy and human resource management

This process involves recruitment, selection, training and remuneration. HRM is important in a company. Singapore Airline is an example for having good HRM.

Southwest airlines strategy and human resource management

Social Good and Business: What airline is even close to being able to say that? With the unemployment rate at an all-time low, high turnover is both costly and a competitive disadvantage. And Wall Street is catching on. Any turnover of your founding employees? Some, like Southwest, define their core competencies for success and then hire for fit.

Nielsen and Sears, Roebuck and Co. Getting HR to track anything more than the most basic measures — its budget, the number of people hired, or the number trained — has often been a struggle.

The discipline is hampered by its legacy as a service provider. Gubman, a global practice leader at Hewitt Associates, HR sometimes hides behind the excuse that the measurement would be inexact and therefore not worth the effort.

Recent research, however, indicates that it is indeed worth the effort. A study by Watson Wyatt Worldwide, for example, surveyed companies on the quality of their human capital practices, creating a human capital index of 1 to Companies reporting best practices in such areas as communications integrity and creation of a collegial, flexible workplace saw a 28 percent shareholder return in the first six months ofversus a 12 percent return for companies in the two middle quartiles.

Another example is Microsoft Corp. To foster these results, Microsoft and other highfliers, like Dell Computer Corp. Of course, retaining employees once they are hired is equally important. And the evidence shows that retention is a complicated animal, driven by a host of factors, not simply compensation.

Which measures work best, however, is a factor of industry, size, and strategy. Satisfaction Guaranteed One metric that can be affected is employee satisfaction.

It was clear to Chrenc, after spending 28 years at Arthur Andersen LLP, with its orientation toward cultivating employees, that Nielsen had to shore up its human capital. To document just how low morale had sunk, the company began exploring employee attitudes through a question survey.

Southwest Airlines: Human Resources and Mission Statement

Only 42 percent of employees were satisfied with their jobs and the way the company was being run. In response, Nielsen did something radical: Employee satisfaction has improved, hitting 63 percent in When you hire good people, train them well, and recognize them, that translates clearly to the clients.

A Talent Inventory In terms of shareholder value, just pleasing employees is not enough: Companies must nurture the best. A common method for identifying the most talented employees within a company is competency measurement.

The technique is not new.

Southwest airlines strategy and human resource management

A recent Corporate Leadership Council study indicated that 77 percent of the Fortune use some kind of competency-based system to evaluate employees. Competency measurement is a key building block for human capital management, says White of Human Capital Technology. The idea is embraced at Nielsen, which tracks its high- potential employees, some people out of a pool of 21, Telecom giant GTE, in Irving, Texas, is assessing the skills and leadership potential of all itsemployees.

GTE uses a ratio to compare how the placement of its best people into new assignments compares with that for the general employee population, explains Garrett Walker, human resources director.

This ratio is just 1 of metrics GTE uses to measure human capital management. Others include employee attitudes; perceptions of HR service; cycle time to fill positions; cycle time to start; various training measures; HR cost measures, including head count of HR staff; turnover by unit; and churn.

The result is a quarterly balanced scorecard that measures human capital management effectiveness and ties it to business results.

Human Resource Management of Southwest Airlines | Management Paradise

Too much of a good thing? On the contrary, says Walker: They would like to have even more information. For example, says Walker, the system allows GTE to monitor churn in its customer-service call center.

We want to get our return on investment.May 25,  · Leadership Style at Southwest Airlines: Southwest Airlines Co.

(NYSE: LUV) is an American airline based in Dallas, Texas. Southwest is the largest airline in the United States, based on domestic passengers carried, as of June 30, [2]. Also, from the text Human Resource Management an organization’s strategy is the way they are going to compete successfully and thereby survive and grow (Mathis & Jackson, ).

I felt it would be great to start out with an example of how effective HR management takes part in a successful business. Strategy Robert H. Hayes Southwest Airlines and Wal-Mart Such apparently irrational behavior is not confined to manufacturing customer service, gate operations, and human resource management had made it so efficient, and its reputation and drawing power were so established, that it.

University for People. In , Southwest Airlines University for People (U4P) celebrated its 25th Anniversary. For the last 25 years the goal of the U4P has been the same—to provide all Southwest Airlines Employees the opportunity for personal growth and the ability to reach their full potential.

Having fully engaged workforce and strong corporate culture is the key secret to the Southwest Airlines success story. The Dallas, Texas-based airline (aka the world’s largest low-cost carrier) is proof that happy employees mean a successful company.

As an airline with one of the most highly. Recruiting, Retention, and Returns. Everyone believes good HR policies affect the bottom line. Southwest Airlines, GTE, and A.C. Nielsen can quantify it.

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