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

Electrical checks, Electrical Checks : Each piece of equipment that uses m...

Electrical Checks : Each piece of equipment that uses mains electricity should have its plug, cable, and fuse checked at least once a year, and you must keep a record of the check

Discuss the implications of individual freedom and o, Discuss the implicati...

Discuss the implications of individual freedom and organisational control to the future organisation

Introduction of a culture change programme, Mr John Batten was working as...

Mr John Batten was working as a change consultant in a department of an international organization (Costa Company Ltd) involved in the marketing of cruise package to tourists al

Describe the process to create an interactive dashboard, Describe the proce...

Describe the process required to create an interactive 'Dashboard of Information' application in an organization. At each major step discuss the issues to be resolved and criteria

What are your greatest strengths, What are your greatest strengths? Pic...

What are your greatest strengths? Pick a couple of the key personality traits employers’ desire – drive, reliability, determination, or problem-solving skills, for example.  Bu

Job analysis methods, Job analysis methods has been conducted in several wa...

Job analysis methods has been conducted in several ways and selection of specific method will be based on the purposes for which the information is to be used (job evaluation, pay

Professional values and Ethics, what are processes and functions of profess...

what are processes and functions of professional values and ethics in hrm?

Explain recruitment process, Q. Explain Recruitment process? Recruitmen...

Q. Explain Recruitment process? Recruitment: it is the process of searching for prospective employees and stimulating to apply for jobs in an organization. It deals with: a.

HR training and development, What in your view are the central human resour...

What in your view are the central human resource issues involved in this case

Promoting individual growth and development, Promoting individual growth an...

Promoting individual growth and development: the employee's confidence in the personnel practises must be respond. The policy should be not only be fair and just also to be perceiv

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