SOUTHWEST AIRLINES: THE ROLE OF HUMAN RESOURCES IN IMPLEMENTING BUSINESS STRATEGY AND HIRING PRACTICES 
SOUTHWEST AIRLINES:
THE ROLE OF HUMAN RESOURCES
IN IMPLEMENTING BUSINESS STRATEGY AND HIRING PRACTICES
By: Aric Hall
Completed in Partial Fulfillment of the Requirements of
OM 5210 – Human Resource Management
Capella University
Winter, 2007
Address:
City, State, Zip:
Phone:
E-Mail:
Instructor:
P. O. Box 952
Bullard, TX 75757
(903) 894-8780 arichall@yahoo.com Phillip Randall, PhD
Abstract
This short paper is an overview of Southwest Airlines, its strategy, and what role Human
Resources plays in the implementation of that strategy. Particular attention is paid to the hiring and promotion practices, and how Southwest Airlines selects individuals based upon their fit with the organizational culture. A portion of the paper is devoted to assessing and measuring the effectiveness of HR’s efforts and what metrics and analyses might be added to improve the assessment. Hall, p. i
Table of Contents
Table of Contents
i
Introduction
1
Company Overview
1
Analysis of Strategy
3
SWOT Analysis
Rewards System
Role of Human Resource Management
Hiring and Promotion Practices
Metrics – Assessing the Effectiveness of HR
5
6
8
11
12
Conclusion
14
Bibliography
15
Hall, p. 1
Introduction
Southwest Airlines is known for two key things. One, it has a fun-loving corporate culture. Second, it is the only airline to have consistent profitability for over 30 years.
Southwest’s strategy is unique to itself. However, it is important to understand what role toplevel and functional-level managers play in implementing strategy. Human Resources has a key role in recruiting, hiring, selecting, promoting, and training personnel who will be a good fit with the strategy and with the fun-loving organizational culture.
Company Overview
The mission of Southwest Airlines is a dedication to the highest quality of service delivered with warmth, friendliness, individual pride, and company spirit (Mission…, 2007).
The company also strives to provide opportunities for learning and personal
THE ROLE OF HUMAN RESOURCES
IN IMPLEMENTING BUSINESS STRATEGY AND HIRING PRACTICES
By: Aric Hall
Completed in Partial Fulfillment of the Requirements of
OM 5210 – Human Resource Management
Capella University
Winter, 2007
Address:
City, State, Zip:
Phone:
E-Mail:
Instructor:
P. O. Box 952
Bullard, TX 75757
(903) 894-8780 arichall@yahoo.com Phillip Randall, PhD
Abstract
This short paper is an overview of Southwest Airlines, its strategy, and what role Human
Resources plays in the implementation of that strategy. Particular attention is paid to the hiring and promotion practices, and how Southwest Airlines selects individuals based upon their fit with the organizational culture. A portion of the paper is devoted to assessing and measuring the effectiveness of HR’s efforts and what metrics and analyses might be added to improve the assessment. Hall, p. i
Table of Contents
Table of Contents
i
Introduction
1
Company Overview
1
Analysis of Strategy
3
SWOT Analysis
Rewards System
Role of Human Resource Management
Hiring and Promotion Practices
Metrics – Assessing the Effectiveness of HR
5
6
8
11
12
Conclusion
14
Bibliography
15
Hall, p. 1
Introduction
Southwest Airlines is known for two key things. One, it has a fun-loving corporate culture. Second, it is the only airline to have consistent profitability for over 30 years.
Southwest’s strategy is unique to itself. However, it is important to understand what role toplevel and functional-level managers play in implementing strategy. Human Resources has a key role in recruiting, hiring, selecting, promoting, and training personnel who will be a good fit with the strategy and with the fun-loving organizational culture.
Company Overview
The mission of Southwest Airlines is a dedication to the highest quality of service delivered with warmth, friendliness, individual pride, and company spirit (Mission…, 2007).
The company also strives to provide opportunities for learning and personal
Bibliography: Chambers, E. G., Foulton, M., Handfield-Jones, H., Hankin, S. M., & Michaels III, E. G. (1998). The war for talent. McKinsey Quarterly, 3. Retrieved online, February 1, 2007, from Business Source Premier database. Company Profile (Nov. 2004). Southwest Airlines. New York: Datamonitor. Available in Business Source Premier database. Cook, S., & Macaulay, S. (2007). How an integrated approach to performance appraisal and the reward and recognition of employees can improve your service levels February, 9, 2007, from: http://www.ecustomerserviceworld.com/earticlestore_articles.asp?type=article&id=110. Employee Benefits Summary, Southwest Airlines (2007). Retrieved online, February 23, 2007, from: http://www.southwest.com/careers/benefits.html. Fitz-enz, J., & Davison, B. (2002). How to Measure Human Resources Management (3rd ed.). Freiberg, K., & Freiberg, J. (1996). Nuts! Southwest Airlines’ Crazy Recipe for Business and Personal Success Gittell, J. H. (2003). The Southwest Airlines Way: Using the Power of Relationships to Achieve High Performance Gomez-Mejia, L. R., Balkin, D. B., & Cardy, R. L. (2007). Managing Human Resources (5th ed.) Lawler III, E. E. (2000). Pay strategy: New thinking for the new millennium. Compensation and Benefits Review, 32(1) Mathis, R. L., & Jackson, J. H. (2000). Human Resource Management (9th ed.). Cincinnati, OH: South-Western College Publishing. Mission of Southwest Airlines (2007). Retrieved online, February 25, 2007, from: http://www.southwest.com/about_swa/mission.html. Porter, M. E. (1996). What is strategy? Harvard Business Review 74(6). Rodriguez, (2007). Talent flow. Retrieved online from Capella University, February 1, 2007. Williams, V. L., & Grimaldi, S. E. (1999). A quick breakdown of strategic pay. Workforce, 78(12)