As a group, we collaborated to prepare each chapter and utilized the cases to enhance our own skills in Human Resource. This paper illustrates how we, as a collective, connected the case studies to various aspects within the Human Resource field. Shanty’ Johnson Chapter 1: Managing Human Resources. To complete this task, read the two cases at the end of this book related to Lincoln Electric and Southwest Airlines. Then, referring to Exhibit 1.1, create an illustration that identifies the stakeholders of each company and showcases their relative significance to each respective company.
To fulfill this task, gather information from various sources, including this chapter, end-of-text assessments, as well as newspapers, magazines, the internet, and personal experience. If you cannot obtain relevant information, make assumptions based on your own judgment and indicate any significant assumptions made. Southwest Airlines: Now let’s provide more detailed information about each stakeholder. Starting with suppliers, which include Boeing Aircraft, airports, and fuel companies.
Boeing supplies Southwest with the Boeing 737 aircraft, airport gates generate income for the company, and the fuel company provides fuel. Southwest must manage its various suppliers to align with its objective of offering the best prices to customers. Competitors include all the airlines operating at the airport. Southwest must strategize to maintain profitability while also offering lower or comparable prices compared to other airlines.
Knowing the actions and offerings of the competition is crucial. Customers, as the individuals purchasing the product, are key stakeholders and without them, the business would not exist. Employees are valuable contributors who enhance the company. Serving as resources, they provide labor and assist in production. Lastly, the environment/community is also a stakeholder as Southwest has initiatives in place to preserve their resources and contribute to the community.
Southwest Airlines takes pride in its commitment to social responsibility through charitable programs, recycling initiatives, and environmental sustainability. They believe that a strong bond with the community and its support are vital for their success and becoming a well-known brand. Similarly, corporations like The Lincoln Electric Company heavily rely on customers. Failure to nurture customer relationships and provide exceptional service may hinder the company’s success in achieving its objectives.
LECH values its employees as the heart of the company, recognizing their central role in maintaining productivity and performance. The company is committed to ensuring employee satisfaction in order to continue achieving positive outcomes. Additionally, LECH regards the environment as a significant stakeholder, actively seeking practices that promote safety and cleanliness. Maintaining a healthy environment for the community is of utmost importance to LECH.
Southwest Airlines aims to support the communities in which they operate, as discussed in Chapter 3 titled “Ensuring Fair Treatment and Legal Compliance.” The chapter highlights how each company demonstrates fair treatment and adherence to the law for their employees. Southwest Airlines stands out by treating their employees fairly and following legal procedures during the hiring process. Like other companies, Southwest highly values its employees and recognizes their contributions to the organization. Notably, Southwest renamed its HR department as the People department.
Changing the name of the HER department indicates recognition of the importance of individuals and their relationships. The article also highlights Southwest’s commitment to thorough hiring and interviewing processes. This demonstrates their determination to employ the most qualified candidates. Even if it means conducting 100 interviews for one position, they are willing to invest the necessary resources. If I were to apply for a job and knew that Southwest seeks only the best and has measures in place to support and care for their employees, I would be eager to work for them.
Lincoln Electric highly values its employees as they recognize that they are the main reason for their success. They understand that money serves as a motivation for employees and believe that offering incentives can enhance productivity. Additionally, Lincoln Electric emphasizes the importance of an honest relationship between employees and managers, emphasizing mutual respect.
Lincoln Electric has several objectives related to its employees. Three out of four of these objectives include: maintaining and expanding the Lincoln Incentive Management Philosophy, recognizing people as the company’s most valuable asset, and promoting training, education, and placement to broaden employee skills” (Jackson, Schuler, Werner p. 563). It is not common for companies to have written objectives for their employees. The existence of these objectives provides reassurance that Lincoln Electric values its employees.
During my exploration of the company, I found out that they effectively retain their employees by ensuring engagement and focus. However, it is important to mention that leisure time or breaks are not given to the workers. This unfairness becomes apparent as breaks are necessary throughout the workday. Additionally, the limited chance for socialization may result in a workplace environment where individuals resemble robots who diligently clock in and out before heading home.
Are there any unfair company practices at Southwest Airlines or Lincoln Electric that you believe exist? If so, which ones and why? I have come to the conclusion that at Southwest Airlines, despite it being challenging to identify an unfair practice, it is unjust to require applicants to speak in front of a large group when being considered for a position. If the job primarily involves minimal interaction with people, I fail to understand why speaking in front of a large group should be included in the applicant process.
I find it odd that Southwest airlines will flag an applicant who arrives by plane. I understand the rationale behind observing their behavior and how they handle various situations, but it would be fair to inform them that they might be monitored. Moreover, it is unjust to evaluate an applicant before even meeting them. It is not always wise to rely solely on others’ opinions when making crucial decisions that can impact your company. While I value others’ perspectives and input, I do not endorse spying on applicants. – Lincoln
In interviews conducted by Lincoln Electric, the use of unfair and illegal questions was a concern. Asking about an individual’s previous year’s income, spending habits, or opinion on union membership is considered unprofessional. These inappropriate inquiries can lead to legal issues for employers as rejected candidates may file lawsuits. Additionally, it is unjust for management to have the power to reduce work hours without any prior notice.
Unexpectedly reducing an employee’s hours can have a negative impact on their livelihood and leave them unable to make alternative plans. Additionally, this situation can harm employee morale and negatively affect the company’s reputation. In Chapter 7 of “Selecting Employees to Fit the Job and the Organization,” Jessica Hammond explores the description, evaluation, and comparison of selection procedures used by two companies. It is important to consider the objectives of the selection process when examining this subject.
Every company has its own distinctive selection process for job candidates. While some companies may have a simple approach to filling vacancies without an elaborate selection process, Southwest Airlines and Lincoln Electric take a different approach. Southwest Airlines focuses on investing in recruitment and strives to choose applicants who fit their company culture instead of just filling a vacancy.
Southwest aims to ensure that they hire individuals who will contribute positively to the company, rather than rushing to hire someone who does not fit the criteria set by Southwest. In contrast, Lincoln Electric has a different approach to their selection process. The company only utilizes external recruitment for entry level positions, while all other vacancies are filled internally with current employees of the company.
Lincoln demonstrates its belief in and support for its employees by primarily promoting from within the company, fostering individual growth alongside company growth. In contrast, Southwest Airlines and Lincoln Electric have significantly different criteria for selecting new employees. Southwest Airlines places a strong emphasis on attitude during its selection process.
Southwest Airlines has established five key characteristics to evaluate whether a candidate’s mindset matches the company’s principles. These indicators consist of energy, humor, team spirit, and self-confidence. The objective is to recruit individuals who can smoothly assimilate into the organization’s culture, promoting a positive environment focused on teamwork. In contrast, Lincoln Electric primarily prioritizes internal hiring when selecting candidates for roles, with the exception of entry-level positions.
Notifying employees about open positions is advantageous as it maintains company culture and enables skills development. By teaching employees new skills, the company enhances their competencies, which makes them more valuable to the organization, beyond their initial job title. Consequently, these employees become multi-functional. This practice pertains to the evaluation methods applied to assess the competencies of job applicants.
Both Southwest Airlines and Lincoln Electric have distinctive approaches to evaluating the skills of prospective employees. Southwest utilizes three specific techniques to identify individuals who would best fit the company’s dynamic. The initial technique is a personality test that allows “The People Department” to comprehend the values and personality traits of job applicants. This test evaluates seven characteristics: cheerfulness, optimism, decision-making abilities, team spirit, communication skills, self-confidence, and self-starter skills.
In order to proceed to the next phase of the interview, candidates need a rating of three or higher on a scale from one to five. The next step involves conducting the actual interview. Southwest Airlines is looking for candidates with excellent interpersonal skills, relevant work experience, and a strong focus on teamwork. It would be futile for Southwest to hire individuals without these qualities since many positions within the company require collaborative efforts, maintaining positive customer interactions, and prior experience.
Southwest has a unique approach when it comes to hiring. They prioritize attitude, so managers take notes on anything remarkable about the applicant, both positive or negative. Additionally, they provide special tickets to applicants that allow employees to observe their behavior during flights. Furthermore, applicants are required to deliver presentations in front of audiences, where both the speaker and the audience are evaluated. Southwest aims to assess the attentiveness of the audience towards the speaker.
Southwest and Lincoln Electric both prioritize finding job applicants whose attitudes align with their current employees and established culture. Southwest’s selection techniques heavily emphasize assessing an applicant’s attitude and values. Meanwhile, Lincoln Electric maintains a consistent theme throughout their selection process, relying on current employees to fill open positions and gauging their capability through interviews for new roles. Rather than utilizing aptitude or psychological interviews, Lincoln Electric focuses on evaluating the personal aspects of employees.
The interview process at Lincoln Electric includes a committee comprising supervisors and vice presidents who evaluate job applicants for IEEE. The committee adopts an individualized approach to interviews, aiming to identify the perfect candidate for the role and someone who will integrate well into the new department. Ultimately, the supervisor overseeing the department with the vacant position has final authority in selecting a candidate. This approach has proven to be successful.
Southwest Airlines and the other company have both achieved highly effective selection processes. Friendly culture at Southwest Airlines has attracted nearly 90,000 applicants in recent years. While this number may seem overwhelming, the HR department is dedicated to hiring individuals who align with the company’s culture. Consequently, only 831 people were hired. The use of various employees from the HR department, managers, and existing employees in the selection process has resulted in a turnover rate of under five percent for Southwest.
The employees of the company enjoy their jobs and the culture that they are involved with on a daily basis, resulting in their long-term commitment to Southwest. The selection process at Lincoln Electric is equally effective, leading to their low employee turnover rate. On average, employees stay with the company for about 18 years. This satisfaction is attributed to the in-house hiring process, which allows employees to develop and advance in their careers.
Putting trust in current employees to contribute to the company’s growth, from lower levels to upper management, fosters mutual trust between employees and Lincoln. The roles and responsibilities of line managers, HR professionals, and other employees vary among companies. Each company has its own effective approach to selecting suitable job applicants to meet their specific needs. Jessica Hammond, along with HR professionals, line managers, and other employees, played a crucial role in ensuring a successful selection process for these companies.
Southwest Airlines incorporates all levels of employees in their selection process for new employees. The “People Department” or HER professionals, are responsible for arranging and coordinating interviews and determining the ideal qualities that align with the company culture. Line managers and employees also play a role in interacting and communicating with job applicants. This involvement of various levels of employees signifies the significance of company culture to Southwest Airlines.
Having the involvement of line managers and employees also enables them to participate in the selection of future employees with whom they will interact daily. Lincoln Electric engages HER professionals, line managers, and employees in the selection process. HER professionals post job vacancies on an internal job board and coordinate interviews to identify the suitable candidate. Line managers participate in the selection process by conducting interviews and ultimately hold the authority to decide who will be hired for their respective departments.
Employee involvement is crucial in the selection process as it is necessary to fill open job positions. Without their active participation in applying for these positions, Lincoln Electric would struggle to find suitable candidates. It is important for employees to be involved in filling job positions to maintain company efficiency and decrease turnover. In comparison, Lincoln Electric and Southwest Airlines differ in their emphasis on training and development. Chapter 8 – Training and Developing a Competitive Workforce A. identifies the company for which training and development hold greater importance.
Southwest and Lincoln Electric differ in their approach to employee training. Southwest takes a more involved approach, ensuring new employees are fully integrated into the training process. In contrast, Lincoln Electric provides on-the-job training for its employees in the production area within a short time frame, expecting them to perform their duties effectively. Sales employees at Lincoln Electric receive initial on-the-job training at a plant and then receive further training at a regional sales office while working. However, Lincoln Electric does not offer or finance external training unless there is a specific requirement for it.
While Lincoln Electric has minimal training, Southwest Airlines prioritizes training. Southwest emphasizes the importance of employees fitting into their work culture and provides comprehensive training in all areas the employees will be involved in. When new employees join the Southwest team, they are trained in seven different areas, including: Freedom LUVS-and You, Leadership 101, Leadership Southwest Style, Next Level Leadership, power Speak, Successful Performance Appraisals, and Every Customer Matters.
Unlike Lincoln, Southwest promotes and supports employees in utilizing external training opportunities. Not only does Southwest provide training in their specific fields, but they also offer training in the responsibilities of other employees they will collaborate with closely. This training helps employees establish understanding and foster strong relationships with their colleagues. Southwest dedicates significant resources to train new hires, as well as to develop and enhance the skills of existing employees.
Every year, all employees are obligated to participate in training programs that reinforce the company’s shared values. This training and development activity at Lincoln Electric is connected to other Human Resource activities within the company. Specifically, work assignments serve as the main human resource policy that aligns with the training and development of Lincoln Electric employees. The management teams have the authority to modify or transfer the work assignments of current employees.
The training process for keeping up with changing work assignments cannot be lengthy. Employees at Lincoln Electric receive on-the-job training, allowing them to quickly learn new responsibilities when work assignments change. This flexibility helps the company adapt to changing external factors. Southwest Airlines aligns their training and development activities with their hiring and selection process.
Southwest is dedicated to finding employees who have the appropriate attitude, can adapt to the company culture, and showcase important qualities. The company invests time in selecting the best employees and aims to properly train them to be a part of their team. Therefore, the training provided by Southwest to new employees is an extension of their selection process. Instead of hiring just to fill positions, Southwest is committed to investing in new hires in order to enhance their skills and attributes.
Southwest Airlines is committed to connecting the selection process with training and development for both new and existing employees. The company encourages existing employees to pursue external training opportunities to enhance their skills and knowledge. Additionally, Southwest requires all employees to participate in a yearly training session to ensure that everyone maintains a shared set of values throughout the organization. These values align with the ones that employees initially shared with Southwest Airlines during the selection process. (Chapter 9 – Conducting Performance Management A)
In terms of major purposes of performance measurement and feedback, Lincoln Electric and Southwest Airlines are compared. One organization shows more concern for traits, another for behavior, and results. Both companies utilize performance measurement to improve employee performance and identify areas for improvement.
Lincoln Electric uses a comprehensive performance measurement system to assess the effectiveness of employees and managers in their job roles and assigned tasks. The evaluation process occurs twice a year and involves specific performance principles for employees, such as quality, dependability, ideas and cooperation, and output. Managers, on the other hand, are evaluated based on six competencies: leadership/ownership, decision making and judgment, results orientation, teamwork/commitment, quality and customer focus, and creativity/innovation.
Lincoln Electric managers issue performance scores and provide recommendations to employees for feedback purposes. They also provide feedback once a year based on performance and assist in performance improvement and development.
Southwest Airlines prioritizes employee traits and behavior when it comes to feedback. Their focus on excellent customer service means that employee performance is measured by job performance and customer service skills.
The use of performance measures aims to promote team collaboration instead of fostering competition among different departments. Managers are required to provide documentation of events and employee performance when evaluating them, particularly in terms of customer service. It is not acceptable for managers to simply give exceptional scores without considering the actual occurrences. Southwest Airlines utilizes a concept called “loving feedback”, which involves celebrating successes, providing honest evaluations, and informing individuals about their performance (Jackson, Schuler, and Werner, 2012).
Southwest’s feedback system has two main goals: metrics and conversation. Jessica Hammond explains that both companies use performance measurements to assess employees and management. However, Lincoln Electric places more emphasis on the outcomes of employee evaluations. These performance measurements are also used by Lincoln Electric to determine the allocation of merit pay increases or reductions, as well as bonuses for employees.
The results of the performance measurement not only affect whether an employee receives merit pay or a bonus, but they also help the company address warranty claim issues. When a warranty claim arises, the manager can identify the specific employee error responsible. In these cases, the employee’s performance score may be decreased, or they may have to work without pay to cover the cost of servicing the warranty claim (Jackson, Schuler, and Werner, 2012). Southwest Airlines places great emphasis on using their performance measurement and feedback system to evaluate employee traits and behaviors.
Southwest Airlines values their employees and wants to provide them with meaningful feedback. Employees prefer to receive negative feedback and performance ratings rather than no feedback at all because it gives them an opportunity to strive for improvement. Lincoln Electric should assess how well their performance criteria align with the company’s strategic objectives. Potential deficiencies and contamination in the company’s performance measures should also be identified.
Lincoln Electric largely meets two of its four HER Objectives, which consist of maintaining and expanding the Lincoln Incentive Management Philosophy and maintaining an affirmative action program. They also aim to provide employees with equal opportunities for advancement based on abilities and performance, regardless of race, religion, national origin, sex, age, or disability (Jackson, Schuler, and Werner, 2012). However, I believe Lincoln Electric underutilizes two other objectives in their performance criteria.
The main goals set by Jessica Hammond are to acknowledge employees as the company’s most valuable resource and to encourage the enhancement of their skills through training, education, and development. Lincoln Electric solely provides on-the-job training and does not cover the cost or promote external training, unless it is absolutely necessary. Furthermore, apart from offering only on-the-job training, the employees receive coaching and performance improvement opportunities only once a year when the performance results are disclosed semi-annually.
Lincoln Electric should provide coaching and performance improvement immediately following each performance evaluation and feedback session to ensure they meet their objective of investing in employee training and education. Instead of punishing employees for poor performance, management should take the time to investigate potential misunderstandings or issues that may have occurred during the aging of an item.
Failure to address and understand the root causes of issues indicates that Lincoln does not consider people as the company’s most valuable asset. This is particularly evident when a mistake occurs, as it results in a decrease in their performance score and requires them to rectify the problem without compensation.
