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7/24/2019 Group 4 VRIO LowCostAirlines
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Strategic HRM
Group 4
Anshu (H005/14)Kaustubh (H019/14)
Megha (H02/14)
!ra"ash (H02/14)
Ra#hi"a K (H04/14)
$an%a (H09/14)
VRIO Framework Airline Industry
Low cost airlines &et 'ue Southest Airines
Airasia
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$R*+ ,ra-eor"
Value
Rareness. Ho rare or i-ite# is theresource
Imitability. Ho #icut is it to i-itate
the resource Organization respectie% arrange-ent
. *s the resource supporte# b% an%e3isting arrange-ents an# can theorganisation use it proper%
he $R*+ Ana%sis is an ana%tica
techniue hich 6or each t%pe o6resource consi#ers the 6ooing
uestions (eauation #i-ension) 6oran organi7ation as e as 6or itsco-petitors8 VRIOis an acron%-
6ro- the rst etters o6 the na-es o6
the #i-ensions:
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(1) &et 'ue
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;o.erentiating on high.uait% custo-er serice
Mission "bring humanity back
to air travel"
Strateg% an# $aue at &et'ue
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Recruit-ent at &et 'ue
*nterna
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Ann Rhoades, "To me, hiring is the most
important thing you can do if you know"
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raining
cooconenien
t cost.e>ectieserice to
thecusto-erAnn Rhodes
s-aco-pan%6eeing
Dave erger
3!degree method
of training
Rear#s
#$et%lue &ncreasesRecognition
'atisfaction by ((
he !eer co-ponent o6 the i6t progra- is criticahe !eer co-ponent o6 the i6t progra- is critica
+nine appication e-po%ees an#-anagers can sen# an# receiecongratuations than".%ou an# gi6t
car#s 6or outstan#ing per6or-ance
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$R*+ 6ra-eor"
!ractices $auabe Rare=icut to
i-itate
Supporte#b% the
+rganisati
on
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(2) Southest airines
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!outhwest Airlines
Southest is a -aCor D8S8 airinean# the or#Es argest o.costcarrier hea#uartere# in =aase3as
stabishe# in 19F an# has
near% 4F000 e-po%ees an#operates -ore than 400 ightsper #a%8
*n &une 2011 it as reporte# tocarr% the -ost nu-ber o6#o-estic passengers in D8S henco-pare# to other airines8
About "he #om$any
%ission
Southest Airines is #e#icate# tothe highest uait% o6
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&ork$lace #ulture !& #ommitment to its'm$loyeesStabe or" eniron-entua +pportunit% 6or earning
an# groth8
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Recruitment at!outhwest Airlines
A candidate who thinks he can snow a recruiter during theinterview may have already eliminated himself because hes proven
to other employees that he isnt a t for the system.
.iring hose ho i contribute to the oera operationL o6
the airineeitistsL nee# not app%Recruitment o/$ilots ormechanics
Recruit-ent the best ho are tea- pa%ers an# abe toreate e ith other 6unctiona groups
0ew
hires/romotherairlines
he% then train ne% hire# . -ost o6 ho- co-e 6ro-other -ore 6unctiona% #ii#e# airines8
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@e sta> earn about theoera or" process an#un#erstan# here the% t inan# ho their Cob reates toan# supports Cobs o6coor"ers
"raining at !outhwestAirlines
Hire 6or Attitu#e an# rain 6orAptitu#eLechnica rainings;ea#ership trainings8Managers in raining (M*)progra--e8
SN Airines beiees thatleadership at frontline can playa critical roles in organizationalsuccess.
*t has more su$ervisors $er/rontline e-po%ee than an%other airine in the in#ustr%des$itethe 6act that -an%thin" the organization is 1atand team2based
New leaders at outhwest are told! "ont try to learn your#ob. $our rst priority is to get to know your people%
Leadershi$ at!outhwest Airlines
,unctiona
3pertise
Reationa
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3er/ormance %anagement at !outhwestAirlines
#rossFunctional3er/ormance is%easured
ncourage e-po%ees to 6ocus onearning Rather than on ba-ing hen things go
rong
3er/ormance"rans$arency
Roles andRes$onsibil
ities
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#om$ensation and ene7t at !outhwestAirlines
ase $ay is 8/reezed9 oera -uti.%ear contract inreturn 6or additionalvariable $ay incentivesSource.
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$R*+ 6ra-eor"
!ractices $auabe Rare=icut to
i-itate
Supporte#b% the
+rganisation
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() Airasia
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Airasia Airlines
Maa%sian low
cost airlineestabishe# in1994hea#uartere#near Kuaa;u-pur
+perates ith
the or#Esoest unitcost an##escribe# as theairine as aO$ioneer: o/
low2cost travelin Asia
Ran"e# as the
world;s bestlow2cost airinein 2012 Nor#Airine Aar#s atthe ,ranboroughAirsho
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&ork$lace #ulture Airasia
Approachabe op -anage-ent
!ustainability