Free «Case Study Analysis: Lincoln Company» Essay Sample

Recruitment and Selection

Recruitment and selection methods are closely related. Yet, they possess certain characteristics that make different from one another. Recruitment generally comes before selection motivating employees to upgrade to new positions. Respectively, the selection process follows the recruitment and may demotivate some employees as those who do not qualify for the position. Lincoln Company has been successful in the sphere of human resources management which is due to the hiring of the advisory board that offers advice regarding personnel management (Jackson, Schuler & Werner, 2011). The management of the organization believes that in order to satisfy the customers it is essential to employ workers of good quality. Hence, the organization should consider using a recruitment method that would motivate employees. Internal recruitment encourages the promotion of existing human resources; with this respect, the organization can use such method in its recruiting processes.

Internal recruitment process involves posting of the vacancy on company’s notice board and sharing the post with the employee via emails. Thus, the company benefits from the lower costs involved in the screening of the new employee as it possesses all information regarding the employee unlike the case when an employee comes from an external source. In contradistinction to the Lincoln Company that has been rather successful in retaining their employees, the Southwest Airlines focuses on recruiting exceptionally highly qualified professionals. Yet, regardless the method of recruiting applied, both the Lincoln Company and the Southwest Airlines value their employees, and in return, the workers offer the best services to the customers. As the culture of the companies is employees’ friendly, the numbers of employees attracted to the company are always substantial. For instance, in 2009 the Southwest Airlines hired 831 employees, but in fact it had received 90,000 applications (Jackson et al., 2011). The culture of Lincoln Company is to offer a competitive pay to attract more employees to the company and, evidently, it proves successful. Southwest Airlines’ policy is by no means less beneficial as it suggests investing a lot in the hiring process, and its HRM management believes that the high cost of recruitment and selection is worthwhile because it provides the opportunity to attract people of a good fit. What is more, the selection process in Southwest Airlines is conducted by a combined panel of line managers and representatives from Human Resource Department. From the above mentioned it can be inferred that the choice of the recruitment technique itself is rather insignificant as long as the technique chosen is applied properly and the resources available are used to the fullest.

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Performance Management

The Lincoln Company considers employees’ performance as an important factor for a continuous improvement in the matter of customer satisfaction. As a result, in 1915 the company reduced the working hours of its employees, as well as provided such motivational elements as life insurance policies (Jackson et al., 2011). Apart from it, the Lincoln Company increases the employees’ performance by means of satisfactory remunerations. All the above mentioned appears to lead to positive outcomes. Likewise, Southwest Company maintains the performance through motivation of the employees by recognizing highly performing employees. What is more, there is a tradition of the company to give cards to their employees on occasions like Christmas, birthdays, company anniversary etc. Unlike the Lincoln Company that offers high remuneration, Southwest Airlines pays their employees an amount that is below the market base pay.

The employees feel protected and secure when the employer allows them to form unions. It is a good point that both companies provide their employees with such possibility. Eighty-three percent of employees in the Southwest Airlines are unionized. The Lincoln Company initially criticized the unionization, but despite this fact, the company granted its employees a chance to form unions. Other useful performance motivation practices applied by the Lincoln Electric Company are training and education, employee participation, and employee empowerment. Similarly, the Southwest Airlines improves the performance of their employees through training.

Southwest Airlines seeks to improve the performance of its employee’s performance evaluation. However, the evaluation procedure is slightly too general and the case has not provided the performance measurement metrics. Also, the drawback is the lack of information regarding performance evaluation at Lincolns Company. Performance evaluation is important for both companies since it motivates employees as well as recognizes worker's areas of weakness, so, it should offer a way out for optimum performance. Therefore, it would be beneficial for the two companies to use an appraisal system that clearly states the measurement metrics and has a time element to specify progress that a company expects from the employee within a particular period. With this respect, despite applying proper methods for improving employees’ performance, both companies should reconsiders the techniques used for its evaluation.

Training and Development

Training and development provide employees with the necessary skill required to perform a task. There are different types of training, including training a newly employed workers regarding the company’s requirements from him as according to the job description, and training employees in case there are new procedure and practices introduced by the firm (Jackson et al., 2011). Both Lincoln and Southwest Airlines consider training and development as an important element for their success which is a good point. The Southwest airline has established a university where its employee gets training on good customer service on every stage of employees’ development. The training activities include one-day orientation of new hires, leadership courses for employees to explore their interests in leadership, and management training. Additionally, the firm encourages its employees to obtain more training from external sources and proceed specializing in their fields further.

In the same way, the Lincoln Company has established a school the offers training to its workers and non-workers. Furthermore, it provides on-job training taking full responsibility for sponsoring the training. However, it does not pay for any off-site training. Unlike Lincolns Company, Southwest Airlines managers regularly meet, usually once in a month, so that to improve the training programs. The strong point is that everyone at Southwest is accountable for self-improvement and development.


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