Describe the human resource planning process, HR Management

Assignment Help:

In the summer of 2001, the airline industry was facing severe problems due to slumping business travel and vacationer demand. In fact, Northwest Airlines announced draconian cuts in both schedules and service; Midway Airlines declared bankruptcy in August of that year, citing a "calamitous" decline in air traffic. However, as bad as things were, they soon got worse.

The September11, 2001 terrorist attacks on New York and Washington DC devastated the whole nation, but few segments of the economy felt the impact as dramatically as the already struggling airline industry. Even after reducing scheduled flights by more than 20 percent, most planes were taking off with fewer than half their seats filled, and airline shares lost a third of their value on the stock exchange. Most airlines needed to cut costs drastically in order to make ends meet, and over 100,000 employees were eventually laid off from American Airlines, United Airlines, Continental Airlines, and America West.

Southwest Airlines bucked this trend however. Indeed, despite the regular ups and downs of the airline industry, in its 30 years of operation, Southwest had never laid off employees; remarkably, it was able to maintain this record even during the difficult Fall 2001 period. Southwest's no-layoff policy is one of the core values that underlie its human resource strategy, and insiders stress that it is one of the main reasons why Southwest workforce is so fiercely loyal, productive and flexible.

The high productivity of these workers keeps labour costs low, and these savings are passed on to consumers in the form of lower prices that are sometimes half those offered by competitors. High levels of job security also promote a willingness on the part of Southwest employees to be innovative on the job without fearing that they will be punished for any mistakes. Southwest also finds that satisfied employees help create satisfied customers and can even help in recruiting new employees when economic conditions are conducive to growth.

In order to keep this perfect no-layoff record in 2001, Southwest executives assembled into an emergency command and control centre in Dallas and brainstormed methods other than layoffs that could reduce costs. Decisions were made to delay the planned purchase of new planes, as well as to scrap ongoing plans to renovate the company's headquarters. The company which had no debt and over a billion dollars in cash, also leaned heavily on this "rainy-day" fund to help get through tough times. It was a difficult and painful process, but as CEO Jim Parker noted, "We are willing to suffer some damage, even to our stock price, to protect the jobs of our people."

Required:

(a) Describe the Human Resource Planning process. Support your answer by using examples from the case.

(b) "Southwest's no-layoff policy is one of the core values that underline its human resource strategy". Based on information provided in the case, discuss Southwest's decision not to utilise the downsizing stragegy.


Related Discussions:- Describe the human resource planning process

HR., Ask Steve Jobs leaving Apple Inc. in 2011. Yahoo! Inc. between the yea...

Ask Steve Jobs leaving Apple Inc. in 2011. Yahoo! Inc. between the years 2007 and 2012. During this period, the firm had over six individuals in the chief executive officer (CEO) p

Explain principle of graphic design to make effective slide, Explain Princi...

Explain Principle of Graphic Design to make Effective Slide? Readable content   i) One slide, one idea ii) Less than 40 words or not more than 6 lines i

Explain listening in communication process, Explain Listening in Communicat...

Explain Listening in Communication Process? This is a skill. Careful concentration is needed to be understood. To get the attention of listeners, depend on our choice of words,

Sectoral level of training needs, Q. Sectoral level of training needs? ...

Q. Sectoral level of training needs? Sectoral level: the definition of sect oral needs may be quite meaningful if a sect oral development policy or plan is being considered or

Describe performance appraisal, Question 1: Performance management is t...

Question 1: Performance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. Discuss.

Acquisition, acquisition function of bti bd

acquisition function of bti bd

Suspension, Suspension means prohibiting an employee form attending work, p...

Suspension means prohibiting an employee form attending work, prevention him form discharging the duties assigned to him and with holding the wages payable to him. Suspension does

Describe performance appraisal, Question 1: (a) Describe Performance Ap...

Question 1: (a) Describe Performance Appraisal and what are its objectives from an Organisation's viewpoint? (b) What are the factors that are considered in developing a pe

What is the u.s. department of labor?, The U.S. Department of Labor (DOL) i...

The U.S. Department of Labor (DOL) is the federal organization charged with promoting the best interests of job searchers, wage earners, and retirees. The DOL does this by: enhanci

Fundamental principles of performance management, You have successfully rec...

You have successfully recruited a call centre manager who fulfils are the criteria established in the job evaluation process. You are required to induct this call centre person. Yo

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd