Assignment

Case Study

HRM 390
Section 2
Spring 2021

Safina Tuz Zohora Mishka

1821128
Identify differences in HR practices between Southwest Airline and Muffler
Magic.

Human Resource practices of Southwest Airlines that collectively show the company’s focus on its
employees.
• Employees Come First, Customers Come Second
• Hire Attitude, Train Skill
• University for People
• Career Advancement
• Highest Employee Compensation Levels in The Industry
• Harmonious with Union
• Job Security
• Management by Walking Around and Open-Door Policy

Muffler Magic examines some of the challenges of a growing company that has multiple locations.
As a company expands, the human resource management (HR) practices need to adapt to the
changing work environment. Growth for Muffler Magic has resulted in challenges such as poorer
quality and lower productivity. As a result, the case provides an illustrative example on the
relationship between HR practices and business profitability. In this case, expansion includes opening
new locations and thus the process to ensure consistency in hiring and training practices becomes
even more important.
Explain how strategic human resource management assures better
employee performance and employee engagement than traditional human
resource management.

Traditional HR Management
In a traditional HR management role, the HR professional is reactively working. They do not educate
workers about responsibilities or how their work will be done; they assume their managers will go over
their work and that the employee will pick up the training while on the job.
In general, they are working to solve employee problems, manage labor relations, and keep their
employees happy.
Examples of traditional HR management tasks:
• Placing ads for jobs when a department requests a role to be filled
• Responding to questions employees have on benefits and payroll
• Terminating employees
Because this role is reactive, the tasks may sometimes need to be rushed or fragmented.

Strategic HR Management
In contrast, strategic human resource management (SHRM) has a broader approach. A strategic HR
manager is focused on forming a long-term strategy. For example, when they are looking to hire for
a position, they are considering future growth projections and goals of the company.
While traditional HR managers work reactively, strategic HR managers work proactively.
Examples of strategic HR management tasks:
• Recruiting employees based on long-term goals
• Training employees
• Creating the employee handbook
• Developing ways to help employees reach the company’s goals

Benefits of strategic human resource management:

• It can help employees become more competitive.
• It helps the company solidify its goals for the future, as well as develop a business strategy.
• It will help retain employees.
• It guides the HR department to gather information that can be beneficial to the company’s
planning process.
• It helps the strategic human resource management department better recruit new employees.
• It aids the strategic human resource management department to determine what threats
may impact or change the company.
• It ensures that the company will be productive and efficient.
 • It helps the company determine its strengths and weaknesses.
• It ensures that customers will be satisfied with the company.
• It addresses issues with the development of employees.
There are many other benefits of strategic human resource management, making this an ideal
process for any organization to adapt, no matter what their size or industry is.
Based on the given circumstances and different nature of the industry do
you think ‘Muffler Magic’ can practice strategic human resource
management activities like ‘Southwest Airline’? How? Narrate.

Best HR Practices:
1. Providing security to employees
2. Selective hiring: Hiring the right people
3. Self-managed and effective teams
4. Fair and performance-based compensation
5. Training in relevant skills
6. Creating a flat and egalitarian organization
7. Making information easily accessible to those who need it
What are the main barriers that prevent an organization from taking a more
strategic approach to HR? Why do they exist, and how can they be
overcome?

Barriers to the strategic approach to HR are:

1. Lack of support
2. Incompatibility of information
3. Approach confliction
The barriers exist because of the following reasons:
1. Lack of support of top management
2. Resistance from employees
3. Expensive and time-consuming
The barriers can be overcome by:
1. Organized system
2. Support from top management
3. Proper information system

Step-by-step explanation
Barriers for the strategic approach to HR are:
1. Lack of support: Support of top management is very necessary while formulating strategic
plans and approaches to HR. If the top management does not support the team, it would be
difficult to allocate the resources. Hence, the lack of support from the top management acts
as a barrier in the formulation of the strategic approach to HR.
2. Incompatibility of information: Sometimes the human resource information does not match
with the requirement of strategic information which can create a barrier in the formulation of
the strategic approach to HR.
3. Approach confliction: It is very necessary to define how many employees and what resources
are needed for the efficient strategic approach formulation to HR. It is necessary to choose
the appropriate approach among other alternatives available otherwise approach confliction
can act as a barrier in the formulation of the strategic approach to HR.

The barriers exist because of the following reasons:

1. Lack of support of top management: Support of top management is very necessary while
formulating strategic plans and approaches to HR. If the top management does not support
the team, it would be difficult to allocate the resources.
2. Resistance from employees: Trade unions and the employees oppose any kind of change that
can happen in the current organizational structure due to a strategic approach to HR. They
resist the change and thus create a hindrance in the way of the strategic approach to HR.
 3. Expensive and time-consuming: A strategic approach to HR comes with planning and
allocation of several resources. That is why this process is expensive and consumes a lot of
time for the human resource manager.
The barriers can be overcome by:
1. Organized system: A strategic approach to HR needs to be organized and effective for better
outcomes in the future. A separate section should be made in the human resource department
that focuses only on the strategic approaches to HR.
2. Support from top management: Before making any plans for strategic HR, the support of top
management is very essential. The budget and procedure should be finalized by the top
authorities.
3. Proper information system: A proper and systematic information system should be made in
the organization for effective strategic human resource planning and implementation.
In both organizations we don’t see that much training and performance
management initiatives, do you consider training and performance
management important for strategy attainment? Why? Suggest how these
organizations should incorporate training and performance management
initiatives for better development and competitive advantage.

Training allows employees to acquire new skills, sharpen existing ones, perform better, increase
productivity and be better leaders. Since a company is the sum total of what employees achieve
individually, organizations should do everything in their power to ensure that employees perform at
their peak.

Effective performance management is essential to businesses. Through both formal and informal
processes, it helps them align their employees, resources, and systems to meet
their strategic objectives. Organizations that get performance management right become formidable
competitive machines.

These organizations should incorporate training and performance management initiatives by:
• Learning management system
• Industry conferences
• Professional organizations
• Mentorship program
• Lunchtime learning sessions
• Blogs and industry publications
• Engaging training design
• Blended learning
• Coaching
• Define and Communicate Company Goals and Performance Objectives
• Utilize Performance Management Software
• Offer Frequent Performance Feedback
• Use Peer Reviews
• Preemptive Management and Recognition
• Set Regular Meetings to Discuss Outcomes and Results
• Feedback