HR Design Decisions Week 2 - Application

ORG/535 v1 Wk 2 - HR Design Decisions ORG/535 v1 Wk 2 – Apply: HR Design Decisions

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. Items to consider, but not limited to, in your analysis include: · The impact on company performance of the approach · Effectiveness of the approach · The impact on employee morale and engagement of the approach · Alignment with the strategy of the approach

Design Decisions:

• View of employees: Employees as expenses | Employees as assets
• Compensation: Below market | Competitive | Above market
• Training and Development: Spontaneous | Planned
• Job Descriptions: Specific | General
• Recruitment: External | Mixed | Internal
• Onboarding – Socialization of new employees: Limited | Extensive
• Bargaining: Collective | Individual

Paper For Above instruction

Introduction

Understanding the strategic approach to human resource (HR) design decisions is critical for aligning HR practices with organizational objectives and culture. Southwest Airlines, renowned for its unique corporate culture and operational strategies, provides an interesting case for analyzing various HR design choices. This paper evaluates seven HR design decisions—view of employees, compensation, training and development, job descriptions, recruitment, onboarding, and bargaining—by examining where Southwest likely falls and assessing the implications of these choices on organizational performance, employee engagement, and strategic alignment.

View of Employees

Southwest Airlines tends to view its employees as assets rather than expenses. This perspective is evident in its emphasis on employee engagement, empowerment, and fostering a positive work environment. The airline encourages a culture of teamwork and service excellence, which relies heavily on motivated and committed employees. Viewing employees as assets aligns with high-performance organizational models, enhancing motivation and organizational loyalty. This approach positively impacts company performance through higher service quality, improved customer satisfaction, and increased safety standards, which are paramount in the airline industry.

Compensation

Southwest Airlines generally maintains a competitive compensation strategy, offering wages and benefits that attract and retain skilled employees while controlling costs. Their compensation structure is designed to be equitable and motivate employees without exceeding industry norms. Competitive pay supports employee engagement and reduces turnover, fostering stability in operations—a crucial factor in the highly regulated and safety-sensitive airline industry. While they may not consistently offer above-market wages, their focus on fairness and benefits enhances organizational commitment and morale.

Training and Development

Southwest adopts a planned approach to training and development, emphasizing ongoing skill enhancement and leadership development. The airline invests in comprehensive onboarding, cross-training, and leadership programs to ensure employees are well-equipped to deliver exceptional service and adapt to operational changes. This structured approach to development improves effectiveness by creating a versatile and skilled workforce, which directly benefits customer experience and safety standards. Furthermore, it aligns with their strategy of employee empowerment and continuous improvement.

Job Descriptions

The airline prefers specific job descriptions that clearly delineate roles and responsibilities. Clear job roles help streamline operations, reduce ambiguity, and ensure compliance with safety and regulatory standards. Specific job descriptions also facilitate targeted training and performance management, reinforcing accountability. This precision supports operational efficiency and aligns with Southwest's strategic focus on reliability and customer service excellence.

Recruitment

Southwest combines external and internal recruitment strategies, emphasizing internal promotion and development to build loyalty and retain institutional knowledge. External recruitment is used to fill specialized or new roles, bringing fresh perspectives and skills. This mixed approach ensures access to a broad talent pool while fostering a positive employment culture rooted in internal growth opportunities. Internal recruitment particularly aligns with Southwest’s strategy of employee recognition and career development, enhancing morale and engagement.

Onboarding

The onboarding process at Southwest is extensive, focusing on socialization and cultural integration. New employees are immersed in the company’s values, mission, and service philosophy through thorough orientation programs. This extensive onboarding fosters a strong cultural fit, boosts morale, and promotes long-term retention. It ensures that employees understand their roles within the broader organizational culture, thereby enhancing engagement and alignment with strategic goals.

Bargaining

Southwest employs a collective bargaining approach through union agreements, which helps standardize employment terms, wages, and working conditions. While collective bargaining can sometimes limit flexibility, it provides a structured and predictable environment beneficial for both employees and management. This arrangement supports the company's strategic goals by promoting labor stability, reducing conflicts, and fostering collaborative employee relations, which contribute to operational reliability and customer satisfaction.

Conclusion

Southwest Airlines exemplifies a strategic HR approach that emphasizes viewing employees as assets, competitive compensation, planned training, specific job roles, a mix of recruitment strategies, extensive onboarding, and collective bargaining. These choices collectively underpin the airline's high-performance culture, operational efficiency, and exceptional customer service. The alignment of HR practices with strategic goals fosters high employee morale, engagement, and organizational resilience, securing Southwest's competitive advantage in a dynamic industry.

References

• Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.
• Dessler, G. (2020). Human resource management. Pearson Education.
• Kim, W. C., & Mauborgne, R. (2005). Blue ocean strategy: How to create uncontested market space and make the competition irrelevant. Harvard Business Review Press.
• Lado, A. A., & Wilson, M. C. (1994). Human resource systems and sustained competitive advantage: A talent‐based perspective. Academy of Management Review, 19(4), 699–727.
• Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2020). Fundamentals of human resource management. McGraw-Hill Education.
• Snape, E., & Redman, T. (2015). HRM in the airline industry: Strategic HRM in aviation organizations. Human Resource Management Journal, 25(2), 190–204.
• Ulrich, D., Brockbank, W., Johnson, D., Sandholtz, K., & Younger, J. (2012). S-HRM: Achieving competitive advantage through strategic human resource management. Society for Human Resource Management.
• Wright, P. M., & McMahan, G. C. (1992). Theoretical perspectives for strategic human resource management. Journal of Management, 18(2), 295–320.
• Youndt, M. A., Snell, S. A., Dean, J. W., & Lepak, D. P. (1996). Human resource management, manufacturing strategy, and firm performance. Academy of Management Journal, 39(4), 836–866.
• Zhao, H., & Azoulay, P. (2019). The impact of HR strategies on organizational performance: An empirical investigation. International Journal of Human Resource Management, 30(2), 255-275.