It could be said that American Airlines understood the importance of its employees while highlighting that they are the key asset for the company’s success (Macneil, 2016). Meanwhile, the managerial consultant organized Joint Leadership Meetings to enhance the employees’ participation by using Overland workforce while leading to the generation of creative decisions (Macneil, 2016). It remains apparent that the assurance of the sufficient flow of ideas and the increase in the personnel’s moral are the key components of the company’s strategic management.
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Speaking of best HRM practices in the airlines industry, vehement attention has to be paid to the compliance of the employee’s skills with the company’s competitive edge while establishing strategic ER. Meanwhile, the correlation between the productivity and the relationships with employees cannot be underestimated. In this case, the best practices for the airline industry are the prioritization of the social capital, core competences, and training (Barney, 1991).
According to Kochan, McKersie, & Cappelli (1984), the strategic decision and notions have to be aimed at the alterations of the role of the employer and his/her relationships with the different levels of subordination. This approach allows establishing trusting relationships while advancing the overall efficiency and flow of the information in the organization. As for the HR practices in American Airlines, the company encouraged the employees’ involvement in the decision-making processes to enhance firm’s profitability (Macneil, 2016). It could be said that the air carrier is moving in the right direction, but its actions require improvement due to the low level of morale among workers.
The company has experienced continuous enlargement while introducing new technological improvements to enhance relationships with customers, contribute to the easiness of the availability of the information, and improve the network within the organization. One of the examples is American Airline’s loyalty program, which implies offering miles for the dollar spent (Caray, 2016). This approach upsurges customer’s loyalty while allowing differentiating it from the competitors.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17, (1), 99–120.
Caray, S. (2016). American Airlines are to move to revenue-based frequent-flier program. The Wall Street Journal. Web.
Kochan, T., McKersie, R., & Cappelli, P. (1984). Strategic choice and industrial relations theory. Industrial Relations: A Journal of Economy and Society, 23, 16-39.
Macneil, J. (2016). American Airlines back from the brink. Case study.