HR Design Decisions

ChoicesAnalysis of how well each choice works
View of employeesIf employees are treated as an expense, they will challenge the economic value of a company. In contrast, employees feel like part of the company and increase its economic value when treated as assets. Southwest can thus invest in its employees, and they will feel like part of the company to foster organizational success.
Employees as expensesEmployees as assets
CompensationCompetitive compensation is ideal for maintaining good talents and attracting others into the organization. Below that market risks losing the talents, while above the market might be an additional cost with little or no additional return on investment. Such a model may be obtained through a strategic plan, selection and optimization of talent, and analysis of the current labor market  (Moghimi et al., 2019).
Below marketCompetitiveAbove market
Training and DevelopmentFrom an economic perspective, Southwest Human Resources should conduct planned training and development. Spontaneous training risks making bad financial mistakes while planned training enables managers to strategically plan the training. For instance, the Southwest Human Resources will decide when to conduct the training and how much to spend on the training based on the company financial position.
Job DescriptionsA specific job description best suits southwest Human Resources. That makes it possible to monitor their performance, appraisal, and allocate performance bonuses. It also gives employees an opportunity for professional growth, which is good for the overall organizational performance.
RecruitmentBecause of employee diversity, the best recruitment process is a mix of both internal and external. Recruiting from external brings in new talents while recruiting from internal appraises the current talent. New talents can potentially help improve processes, products, and services, while internal talents become more loyal after promotion. Therefore, the mixed model would give Southwest maximum benefits.
Onboarding – Socialization of new employeesAn extensive onboarding is the best option for Southwest. Usually, it takes some time for new employees to switch into the company culture. Also, new recruits experience friction with other employees due to differences in ideologies. Therefore, it is best for Southwest to plan an extensive onboarding to fit in all aspects of the company culture. It will also help Southwest Human Resources understand employees’ specific needs, which increases morale and overall performance.
BargainingIn addition to extensive onboarding, Southwest should adopt collusive bargaining. This helps to avoid discrimination in workplaces and strengthens the company culture. According to Roche et al. (2014) helps mitigate organizational conflicts, which is another reason collective bargaining suits Southwest.
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Moghimi, D., Scheibe, S., & Freund, A. (2019). The Model of Selection, Optimization, Compensation. Work Across The Lifespan, 81-110.

Roche, W., Teague, P., Colvin, A., & Estlund, C. (2014). Employment Rights and Workplace Conflict. The Oxford Handbook Of Conflict Management In Organizations.