HRM at American Airlines - 1470 Words

Case Introduction This case examines the Human Resource Management system at American Airlines and its role in the airlines past and continued success. The case takes us through a time line from 1980 to 1992 of the company; of how the growth of the company was followed by changes in the strategy, changes in the HR policies at different time and finally their effect and impact on the employees and the company as whole. Events 1. 1978: Deregulations of the airline industry. 2. 1980: AAs growth plans called for ore planes, new routes, increased membership in its AAdvantage frequent flier program, and an enlarged installed base of its SABRE reservation system. 3. 1981:The Presidents Conferences began. 4. 1983: Two Tier compensation†¦show more content†¦Developmental perspective only in leadership area. 4. Pay plans were seniority based and individual based although employees were all salaried. Difference in earning levels for even employees doing similar work was HUGE. 5. Developing leaders from within, managers were to be seen as coaches and facilitators 6. Information and Communication technology was developed: new reservation system and baggage tracking system were one of the best and most expensive of their times Horizontal fit Its not really a perfect horizontal fit because where as the work processes and tasks have been kept repetitive, promotions are seniority based and training is specific (all of which mesh well on one end of the spectrum), leadership skills are being focused, information sharing IS and empowerment is being emphasized, compensation plans are being directed at long-term through lower base pays and profit sharing plus bonuses and above market benefits (which integrate well together but not with the former set of action plans) also, the compensation plan is being tried to implement in isolation but its the ripple effects on the system that are causing problems Vertical fit The vertical fit is again missing. Whereas the HRM practices of recruiting, promoting, developing for leadership and compensation (of low base pays) and most importantly the newly inculcated CULTURE of information sharing and focusing on emergent strategies favor differentiation strategy, the specific trainingShow MoreRelatedGlobal Expansion Of Southwest Airlines And Airtrans Airlines1683 Words   |  7 Pagesstrengths, weaknesses, opportunities and threats which can transpire during a business merger with global expansion of Southwest Airlines and AirTran’s Airlines. Strengths During a merger many great advances can come from the transition. First reason for such a transition should be for economic growth or funding. With such fusion of Southwest Airlines and AirTran’s Airlines, the HR department will conduct a listing of all staff and their pay allowances organization. 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