Executive Summary of the HR Strategy Project
Southwest Airlines consistently operates as a flat organization, characterized by formal yet linear
strategies. The company employs a straightforward hierarchy that promotes seamless communication between employees and management. Internal marketing initiatives have played a pivotal role in propelling the company's growth. Embracing a cost-leadership competitive strategy, Southwest Airlines prioritizes employee motivation, thus enabling increased profitability in the market (Airlines, 2019). The company employs three key HRM implications
—effective recruiting philosophy, a "hire for attitude" approach, and a fair hiring process. These implications function as a strategic framework, enabling the recruitment of top-tier employees and providing them with comprehensive training and support. To enhance its HR practices, Southwest should explore strategies ensuring continuous training for all employees throughout their tenure and empowering HR managers to build and lead their teams (Lee et al., 2019). Analysis of Strategy and Issues
Southwest Airlines is characterized as a flat organization, primarily due to its informal and streamlined structure that fosters cross-functional communication. The hierarchy is straightforward, enabling managers and employees to easily connect and share suggestions and opinions at any time (Lee et al., 2019). Leaders have the flexibility to engage in operational tasks, such as handling baggage at the loading bay. The implementation of effective internal marketing has significantly contributed to the company's growth. Southwest Airlines adopts a policy of treating employees as internal customers, creating a lively and enjoyable workplace. Additionally, the HR policy prioritizes hiring individuals based on their attitude rather than solely their skills, ensuring the recruitment of the most suitable and dedicated personnel.
Southwest Airlines’ Strategy
Southwest Airlines primarily adopts the cost leadership competitive strategy, leveraging low prices and corresponding reduced costs to gain a competitive edge. This strategic approach positions the company ahead of competitors by ensuring high accessibility and affordable fares. Strategically positioned among its industry counterparts, Southwest employs intensive growth strategies to address ongoing competition. In navigating the airline industry's challenges, the company focuses on mass-market service delivery, optimizing profit margins, minimizing operational costs, and sustaining low prices (Lee et al., 2019). This distinguishes Southwest from
competitors who often prioritize differentiation or focus strategies. While Southwest also incorporates a differentiation strategy to a lesser extent, it consistently upholds high customer satisfaction levels alongside cost-effectiveness, making it a preferred choice among customers for its amiable service and strong standing in the aviation sector.
Southwest Airlines HRM Implications
Southwest Airlines attributes a portion of its success to its recruitment practices, incorporating various human resource management principles (Airlines, 2018). It is evident that a significant number of Southwest Airlines employees express satisfaction, leading to accolades such as being
ranked the best workplace by publications like Forbes and Fortune. The core of Southwest's positive dynamics with its employees lies in its recruitment methods. The primary human resource management implications for Southwest Airlines revolve around its recruitment philosophy, the "hire for attitude" approach, and a fair hiring process (Lee et al., 2019).
