Epareview: The Case Study Sage Business Cases Longhorn Airli

Eparereview The Case Studysage Business Cases Longhorn Airlines Fl

Epareview the case study, Sage Business Cases - Longhorn Airlines: Flying Through Turbulent Times. Respond using the case study from the discussion preparation, respond to the following: Discuss how an organization can utilize incentive pay to achieve organizational goals and propose the best option for Longhorn Airlines. What challenges might the top management team encounter in implementing the changes you are recommending? Special emphasis should be given to how a large organization coordinates activities across functional areas such as HR, information systems, and operations management. Be sure to respond to at least one of your classm

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Incentive pay is a vital strategic tool that organizations can leverage to align employee performance with organizational goals. This approach involves providing employees with financial rewards based on their performance, productivity, or achievement of specific targets. When effectively designed, incentive pay motivates employees to contribute more effectively towards organizational objectives, enhances productivity, and fosters a culture of performance and accountability.

In the context of Longhorn Airlines, implementing an incentive pay system could involve several options, including performance-based bonuses, profit sharing, commission structures, or stock options. The most suitable option for Longhorn Airlines, given its turbulent times and need for a strategic boost, might be a performance-linked incentive system that emphasizes customer satisfaction, operational efficiency, and safety benchmarks. For instance, flight crews and ground staff could be rewarded for maintaining high safety standards and punctuality, which directly impact customer experience and operational efficiency.

The primary challenge in implementing such incentive pay systems is ensuring fairness and transparency across the organization. Employees might feel demotivated if they perceive the reward structure as biased or unattainable. Furthermore, aligning incentives with long-term organizational goals rather than short-term gains is crucial but often difficult to execute. In large organizations like Longhorn Airlines, coordinating across multiple functional areas adds complexity to implementing incentive programs. Human Resources must develop equitable policies, Information Systems need to track performance metrics accurately, and Operations Management must ensure that performance targets are realistic and attainable.

Top management may also face resistance from employees who are skeptical about new incentive schemes or fear potential job insecurity if performance targets are not met. Additionally, establishing a culture that genuinely values performance and reward fairness requires consistent communication, training, and leadership commitment. Overcoming these challenges necessitates creating a shared understanding of the incentive program’s objectives and involving employees in the design process to foster buy-in and trust.

To effectively coordinate activities across functional areas, Longhorn Airlines needs to adopt an integrated approach. HR must collaborate with Information Systems to develop robust performance measurement tools, such as real-time dashboards and performance management software. Meanwhile, Operations Management should ensure that operational workflows support achievable performance goals and facilitate continuous improvement initiatives. Regular cross-departmental meetings and communication channels can help synchronize efforts and reinforce the alignment of incentives and organizational objectives.

In conclusion, while incentive pay can significantly contribute to achieving organizational goals at Longhorn Airlines, its success depends on thoughtful design, transparent communication, and effective coordination across departments. Addressing potential challenges proactively and fostering a culture of performance will enable Longhorn Airlines to navigate turbulent times and emerge stronger and more competitive.

References

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