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

Describe about effective training plan, Problem 1: (a) What is Traini...

Problem 1: (a) What is Training? (b) Describe the steps involved towards an effective training plan? Problem 2: (a) What do you understand by a career plan?

Human resource procurement, Recruitment is a "linking function" joining tog...

Recruitment is a "linking function" joining together those with jobs fill and those seeking jobs. Recruitment makes it possible to acquire the number and types of people necessary

Legal advice on polls, Based on the polls, both before reading the course m...

Based on the polls, both before reading the course materials and after, there is one noticeable change. This change is on the second question asking if what the employers will do i

Code of the discipline, Code of the discipline: The Code of the discip...

Code of the discipline: The Code of the discipline defines duties and responsibilities of employees and workers. The objectives of the code are: 1. To ensure that employers

Concept of management by objectives, Question 1: (i) Clearly describe t...

Question 1: (i) Clearly describe the following uses of Performance Management in an organisation (a) as a diagnosis (b) for managing continuous improvement (c) for monit

Recruiment, advantages and disadvantages of internal and external recruitme...

advantages and disadvantages of internal and external recruitment

HRM, . Discuss that technological breakthrough has brought a radical change...

. Discuss that technological breakthrough has brought a radical changes in HRM.

Human resources development, How would you describe learning? With the aid ...

How would you describe learning? With the aid of the texts from a published author, analyse at least three learning theories. What are learning styles? Differentiate between th

Management Values, Describe and indicate the management values and intern...

Describe and indicate the management values and international staffing policies and practices applied by the multinationals.

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