Submitted by: Submitted by ruky
Views: 1058
Words: 680
Pages: 3
Category: Business and Industry
Date Submitted: 03/17/2011 10:20 PM
Continental Airlines HR policies and practices
The turnaround strategy of Continental Airlines can be given as a good example of how HR function can move beyond its traditional roles and become a strategic partner and a player. Continental Airlines has been transformed from a company facing bankruptcy to one that is consistently profitable. This has been achieved through a new corporate strategy formulated by CEO Gordon Bethune. Bethune realized that achieving the company’s strategic objectives would require several changes in the companies HR policies and practices to better align them with the needs of the business. Thus one of the key components of the company’s new strategy was their HR strategy which was called ‘Working Together’ (Jackson et al. 2008, p.91-92). This new HR strategy created a working environment of dignity and respect with the ultimate goal of all employees feeling valued and enjoying coming to work.
Performance-based compensation programs for employees-The airline’s HR management decided to implement an incentive program to encourage the employees to increase their productivity. Employees were given companywide goals and incentives were offered to reward them for achieving the goals. This includes a well-known monthly on-time bonus (originally $65 to every employee at the end of each month when the performance target was hit); a lottery for an SUV for employees with six months perfect-attendance; and a profit-sharing program (Nordenflycht, 2010).
Competitive Advantages through the Employees-This involves by hiring the best employees in the labor market. A competitive advantage only occurs when employee’s knowledge, skill and ability can add value to the organization. In order to target employees with the requisite knowledge, skills and ability, the job has to be carefully defined. The HR managers of continental airlines prepare effective job descriptions, job specification and job evolutions to attract the best possible employees....