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 ETHICS, WHY WE NEED LEARN HR ETHICS, THE IMPORTANT OF HR ETHICS, THE REL...

WHY WE NEED LEARN HR ETHICS, THE IMPORTANT OF HR ETHICS, THE RELATIONSHIP ABOUT HRM AND ETHICS WHAT IS CSR.

Grievance handling procedure, Explain grievance handling procedure in your ...

Explain grievance handling procedure in your organisation

Discuss De-cruitment in the context of the Break-Even model, Discuss De-cru...

Discuss De-cruitment in the context of the Break-Even model

Explain downward, Explain Downward, Upward and Horizontal Flow of Communica...

Explain Downward, Upward and Horizontal Flow of Communication? i) Downward flow - flows from executives to employees, sharing executive decisions and providing information that

What are the roles of a manager in an organisation, What are the roles of a...

What are the roles of a manager in an organisation? Roles of a manager in an organisation: A manager controls, directs and organizes different activities of the enterprise

What are the characteristics of a learning organisation, Question 1: Wh...

Question 1: What are the different reward systems that can be used to enhance performance in an organisation? Question 2: The concept of industrial relations has evolve

Principal of the human resource development, Principal of the Human resourc...

Principal of the Human resource development: The major principal of the Human resource development are: Principal of development of organization capability: Human resource deve

Human resource policies, Human Resource Policies Critically evaluate t...

Human Resource Policies Critically evaluate the influence of local national environments on the effectiveness of human resource policies in tourism, hospitality and leisure MN

Comment on the characteristics of a good leader, QUESTION (a) Summarise...

QUESTION (a) Summarise the main sources of duration estimating data used by organisations when assembling project schedules (b) Project Planning is essential for a project's

Describe the steps in the selection process, Question: Mail.com Co. Ltd...

Question: Mail.com Co. Ltd is a company engaged in the BPO activities in Mauritius since 2003. The company is planning to open a new call centre in the north of the country and

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