In today’s competitive world of business, its very crucial and necessary to maintain the employees within the organisation and make sure that they are committed to work. This is very important because retaining employees within organisations has become frightening for many organisations.
This report has focused on 2 different companies namely Southwest Airlines (SA) and Airport Express Train (AET) where both the companies are operating in the travel sector. SA is an airline company based in USA whereas AET is an express train operating between Airport and Oslo, Norway. Both the companies were very different with regards to the size, age, ownership, competitive strategy, national context and labour laws. But eventually both the company achieved their competitive strategy and succeed through the application of High Performance Work System (HPWS).
The report was concluded where a critical analysis of the companies was carried out in relation to theories. SA and AET both were successful in their businesses throughout their past, but there needs to be some recommendation made in order for them to grow themselves and improve on flaws. Finally, recommendation on how to achieve the competitive advantage through employees were suggested to continue their success in the future.
Table of Contents
Executive Summary
Introduction
Analysis
Comparison of similarities and dissimilarities between SA and AET with respect to HR issues
Internal Consistency in HR between SA and AET
Conclusion
Recommendation
References
Objectives and Topics
This report evaluates how two distinct companies in the travel sector, Southwest Airlines (SA) and Airport Express Train (AET), utilize High Performance Work Systems (HPWS) to maintain competitive advantages. The study analyzes the alignment between human resource practices and organizational strategy, examining how diverse operational contexts, such as size, national labor laws, and ownership structures, influence HR consistency and employee management.
- Application of High Performance Work Systems (HPWS) in the travel industry.
- Comparative analysis of HR strategies between an American airline and a Norwegian railway service.
- The impact of internal HR consistency on organizational performance.
- Strategic alignment between business objectives and human resource practices.
- Achieving competitive advantage through employee commitment and engagement.
Excerpt from the Book
Comparison of similarities and dissimilarities between SA and AET with respect to HR issues
Kuvaas and Dysvik (2012) explained in the case study that the main similarity between the both companies SA and AET is that they operate in the same travel industry. They have applied the HPWS theory into practice on HR functions within the organisation to be successful in the market.
Both the companies are different from each other with respect to the size, age, ownership, competitive strategy, national context and labour laws. It is proved that they have achieved their competitive advantage using HPWS into their HR practices (Kuvaas and Dysvik, 2012).
Moreover, both the companies were different from each other. SA was an airline based company in the USA whereas AET was an Airport railway service in the Norway. SA was a bigger company compared to AET with regards to the size of the organisation. The competitive strategy of SA was to provide better services to their customers with low cost whereas the competitive strategy of AET was to provide high quality service with high cost. But at the end of the day, both have achieved their competitive advantage by practicing HPWS (Kuvaas and Dysvik, 2012).
Another major difference between both the companies SA and AET as highlighted by Pfeffer (1998) is that SA provides job security to its employees where the SA management thinks that they don’t want to put their best assets at risk and lose people in their organisation which is considered to be backbone of their company. Whereas, according to Lazear (1990), the national labour law of Norway itself provides the job security to all the employees working in the country.
Chapter Summaries
Executive Summary: Provides an overview of the report's focus on Southwest Airlines and Airport Express Train, highlighting their success through HPWS despite significant operational differences.
Introduction: Outlines the purpose of examining the Kuvaas and Dysvik (2012) case study and establishes the theoretical framework of HPWS and its link to organizational performance.
Analysis: Compares the two companies regarding their similarities and differences in HR issues and investigates how they maintain internal consistency in their human resource management.
Conclusion: Synthesizes the findings, confirming that regardless of industry or company size, effective HRM practices and HPWS are key to managing employees as a core asset.
Recommendation: Proposes that organizations must align their business and HRM strategies, focusing on employee commitment, behavior, and engagement to sustain long-term competitive advantage.
References: Lists the academic sources used to support the theoretical and comparative analysis.
Keywords
High Performance Work System, HPWS, Human Resource Management, HRM, Southwest Airlines, Airport Express Train, Competitive Advantage, Internal Consistency, Employee Engagement, Strategic Alignment, Job Security, Organizational Performance, Travel Industry, Resource Based View, Human Capital.
Frequently Asked Questions
What is the primary focus of this report?
The report focuses on comparing the human resource management strategies of Southwest Airlines (SA) and Airport Express Train (AET) to understand how both successfully utilize HPWS.
What are the central themes of the study?
The central themes include HPWS application, the importance of internal HR consistency, and the alignment of HR practices with specific business and national contexts.
What is the core research goal?
The goal is to critically evaluate how two companies with different backgrounds achieve competitive advantage through their management of human resources.
Which methodology is employed in this report?
The report employs a comparative case study methodology based on secondary analysis of the work by Kuvaas and Dysvik (2012) and various HR management theories.
What is covered in the main analysis section?
The main section analyzes similarities and differences in HR issues, such as job security and recruitment, and explores the internal consistency of HR practices in both organizations.
Which keywords characterize this analysis?
Key terms include HPWS, competitive advantage, internal consistency, HRM strategies, and employee engagement.
How do national labor laws affect the HR practices of these companies?
The report notes that while SA provides job security as a strategic choice to protect assets, AET relies on Norwegian national labor law to provide job security to its employees.
What role does the Resource Based View (RBV) play in this study?
The RBV model is used to explain how firms manage strategic human resources to achieve a sustainable competitive advantage through value, rarity, inimitability, and non-substitutability.
What specific recommendation does the author make for organizations?
The author recommends that organizations should prioritize the alignment of business and HRM strategies to foster employee commitment and engagement, which are essential for superior quality service.
- Quote paper
- Waseem Rauf (Author), 2016, Comparing internally consistent Human Resources (HRM) at Airport Express Train (AET), Oslo, Norway and Southwest Airlines (SA), Dallas, TX, USA, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/335112
