Demonstrate the ability to analyse complex case studies by applying the most appropriate theories for adequate critical analysis, and recommend improvement?
Southwest Airlines and Airport Express Train are two organizations under consideration in the relevant case study. The different aspects of HR are taken into consideration in reference to the two companies. The researcher aims at studying the similarities and differences between the two companies in relation to the HR practices. There can be a relatively similar set of HR practices. There must be shown internal consistency in HR. If consistency in HR is to be shown in the operations, it must be applied in real life situations. Internal consistency goes a long way to develop a company (Coleman, 2012). Recruitment and training and development are the two most important functions of HRM. HPW is such a hot topic in HR since it helps to form the intricacies in a delightful manner. The way in which human resource functions in a company is crucial since it determines to a great extent the operations in a company. AET does not have a collective pay for performance plan. As far as pay package is concerned, AET is better. It owes on the company to compensate its employees with good pay otherwise it would be impossible to retrain good employees. The two companies need to work according to strategies. If jobs are not executed according to plans, they would mean disaster. Most of the employees in the world need recognition. If the deserving employees are not recognized, demotivation would take place (Collinson, 2012). Motivation levels must be high in a company in order to foster growth.
Similarities between SA and AET:
SA follows selective hiring to the extent that the right people must be there at the right time.AET also follows selective hiring based on attitudes. Attitudes become the most important factor in a company. It must be ensured that employees act as ambassadors of the company. If the attitude of an employee is proper, it would lead to success in the company. Selective hiring is useful since it helps in the filtering process of candidates.
Self managed teams:
The teams in SA are self managed. A company is composed of various teams. The teams in AET are self managed. Self managed teams yield better productivity. If the teams are not well managed by self, it would lead to chaos (Jones, 2014). Self management needs to inculcate certain levels of discipline among the employees. When there is a disciplined group of employees, it always leads to big results.
Consistent and fair treatment are meted out to people in SA.AET does not have a collective pay for performance plan. As far as pay package is concerned, AET is better. It owes on the company to compensate its employees with good pay otherwise it would be impossible to retrain good employees.
In SA, there is heavy investment in training.25000 employees are trained each year. There is emphasis on content such as doing things faster, better, cheaper and customer service. Training always allows for better skilled manpower (Kaplan, 2012). The levels of skills of the employees need to be sharpened. The presence of skilful trainers is required so that world class training is imparted to the trainees.
There is widespread information on such things as financial performance, strategy and operational metrics ensure that employees have information.AET executes around the time and many steps have to be taken to assure information sharing along the company.
The management of SA provides job security to employees in order to render stability to the organization. At AET, there is no official policy which promised job security. Job security is a concept which has got lot of importance (Kvalnes, 2014). When we talk about the importance of job security, it needs to take a broader perspective. Most of the employees in the world need job security. If job security is needed at the most, employees need to be on their toes. Without job security, employees are never satisfied.
Decentralization is followed in both companies. Decentralization leads to better accountability. Authority and responsibility are better delegated in decentralized structure. Decentralization also helps in specialization and better jobs. When the structure of a company is decentralized, it needs no compulsion to introduce centralization into it. Centralization leads to concentration of power in the hands of few while decentralization allows for distribution of power (Lawler and Ashman, 2012). Whenever the size of a company becomes large, it needs decentralized approach otherwise it would be difficult to manage.
Formal communication is mostly followed in SA. It is this grapevine form of communication that helps to build bonds within the company. Development of long term bonds help in relation building. The relations go a long way in determining the progress of the company. Consistency needs to be maintained at all levels of working, whether inside or outside.
The organizational hierarchy is much formal in SA while it is informal in AET. This is one of the striking dissimilarities which create lots of differences (Raelin, 2014). If the hierarchy is not maintained within companies, it would amount to utter chaos and confusion. An employee must be clear to whom to report.
Similar set of HR practices:
The human resources is a function which encompasses various strategic activities of the company. The different practices of HR include matters related to recruitment, training and development, compensation, strategies, etc.SA is a company which operates airlines.AET is a company which operates trains. There must be similar kind of HR practices which must be applicable in all places. Compensation is a very important HR practice. It is only through compensation that the employees in the company are satisfied. Satisfaction of employees is extremely crucial which goes on to increase productivity in the company. Since both the companies employ transport, similar HR practices may be applicable to them (Redekop, 2014). The companies must be able to read the employees. If the companies do not read the employees well, it would lead to mismanagement. It often happens that similar set of HR practices are not applicable in both the companies. Whenever this happens, it owes on the management of the companies to adopt the right approach so that the companies do not suffer. The employees must not suffer at any cost. Employees are the greatest assets of a company. If the employees are dissatisfied, it would amount to pitfalls within the company. Thus the relative pay differences between jobs will reflect each job’s unique value to the employing organization (Reed, 2012). When we consider macro level, the structures of pay hierarchies reflect societal norms and values. Internal equitable systems are likely to facilitate a willingness to undertake training and seek higher level positions within the hierarchy. Presences of job evaluation methods go a long way in establishing equity among the various members of the company. Development of long term bonds help in relation building. The relations go a long way in determining the progress of the company. Consistency needs to be maintained at all levels of working, whether inside or outside.
Internal consistency in HR:
Internal consistency is one of the many concepts of organizing used to define the structure and form of a traditional pay based system. It is the degree to which an organization positions are ordered hierarchically such that there is congruence with business objectives. Thus the relative pay differences between jobs will show each task’s special value to the employing organization. When we consider macro level, the structures of pay hierarchies reflect societal norms and values (Denning, 2012). Internal equitable systems are expected to bring a willingness to undertake training and seek higher level positions within the hierarchy. The main means of establishing internal equity is by job evaluation methods. The essential attributes of the job are rated with respect to the perceived value. Consistency is a mark of honor for a candidate.
The mode of communication followed in the companies is informal type. This informal type of communication helps in sharing of much close related information. The informal type of communication is known as grapevine. It is this grapevine form of communication that helps to build bonds within the company. Development of long term bonds help in relation building. The relations go a long way in determining the progress of the company (Ghislieri and Gatti, 2012). Consistency needs to be maintained at all levels of working, whether inside or outside.
The two companies, SA and AET chosen belong to transport, rail and air. The above report tries to find out the various loopholes within a company. If all things are taken into consideration, HR practices form a big effect on the various facets of a company. There are similarities as well as dissimilarities between two companies, SA and AET. Both the companies have been critically analyzed and are seen closely (Schriesheim, 2012). When there are two companies plying for a good position, it occurs amidst all disturbances. Companies have to keep up to the good work. Companies need to adhere to their norms in order to get the jobs done properly. IF SA and AET work in unison, it would be reflected in the execution of work. A detailed analysis assists in the teambuilding efforts of a company.
The human resource management of the two companies must follow certain common lines of action. If certain lines of action are not pre decided, it would amount to confusion. The companies must lay stress on long term strategies, not on short term aspects. Long term aspects are very important since it guides the company to bigger fruits (Stead, 2012).
It is very important that the department of HR binds the entire company into fine threads so that coordination is maintained at the highest level. If coordination is maintained supremely, it would result in big jobs executed smoothly. Coordination must be there at the highest level.
It is the utmost responsibility of the human resource department to maintain a high level of employee morale. More the level of employee morale, more is the productivity. More the productivity of a company, more is the progress. Productivity always leads to betterment of companies.
When the structure of a company is decentralized, it needs no compulsion to introduce centralization into it (Temple, 2012). Centralization results in concentration of power in the hands of few while decentralization allows for distribution of power. Whenever the size of a company becomes large, it needs decentralized approach otherwise it would not be possible to manage. Decentralization helps in the attainment of big things within the organization. People can enjoy specialization in decentralized approach. The specializations are always welcome from the company viewpoint since it enables better quality of work.
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