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Strategic Choice Compete with Low cost ai

Implications of the 7.5 Strategy

Layoffs & Outsourcing

Inexperienced and part-time Workers Number of Workers reduced substantially

Decrease in Operational Performance

Increase in customer complaints Customer Service reputation declined

Destroyed the Firms Core Competence

Family Atmosphere Dissolved

Employee morale was effected Senior Managers exiting

Major Priorities for HR:

 Rebuild Employee Morale  Rebuild Customer Relationships  Integration of HR with the company strategy

Employee Relations: Communication through various channels

Address by Senior employees

Bottom-up roach
Involve employees in strategy formulation

Re-build family environment

Training: Intensive training

Compensation & Benefits

Increase the flight attendant pay Introduce a variable component linked to performance Introduce benefits for family or special leave Employee Stock Severance Pay/Benefits long term

360 feedback

Offer employment to laid off employees for training Experienced employees

Change outsourcing vendor Quality check on outsourced activity Improve Customer experience?