Southwest Case Essay

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Southwest Case: 2. How is Southwest’s Human Resource Management System linked to its strategy? Human Resource Management System is one of the most important parts of the strategy of the company as it has de responsibility to recruit, hire, select, promote and train personnel who will work in a fun-loving organizational culture. Southwest take their employees as they were part of a family to encourage them to take care of the customers. With this strategy they want that the employees get involved and act as if it was their own company by creating new ideas, serving customers, showing a fun work ambient and increasing profitability. The competitive advantage of Southwest is due to the combination of great service and low fares. In order to link the two main points of the competitive advantage said below Southwest reward their employees with sense of pride and recognitions for job well done. Moreover, the company gives to managers a below-mean salary and in case they have to reward them for a good job they give them an above-mean salary coupled with stock options so that they can share the profitability they create. The aim of all this is that the payment is not an incentive to excel whereas the profit-sharing does reward collective group while they reduce competition between employees. Hiring process is very important for Human Resource Management because it is responsible of deciding who best fits with the company culture. They craft de interview questions in order to identify the best personality. Southwest don’t allow hiring managers to be informal in selecting process whereas they can be creative. Human Resources managers are the ones who build an image that prospective employees are looking. Once hired, Human Resources managers must continuously evaluate their workers because in some occasions an employee can work better in another position. Another important

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