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The turnaround strategy of Continental Airlines can be given as a good example of how HR
function can move beyond its traditional roles and become a strategic partner and a player.
Continental Airlines has been transformed from a company facing bankruptcy to one that is
consistently profitable. This has been achieved through a new corporate strategy formulated by
CEO Gordon Bethune. Bethune realized that achieving the company¶s strategic objectives would
require several changes in the companies HR policies and practices to better align them with the
needs of the business. Thus one of the key components of the company¶s new strategy was their
HR strategy which was called 


 ½ ackson et al. 2008, p.91-92). This new HR
strategy created a working environment of dignity and respect with the ultimate goal of all
employees feeling valued and enjoying coming to work.

£  

   


  
     
-The airline¶s HR management
decided to implement an incentive program to encourage the employees to increase their
productivity. Employees were given companywide goals and incentives were offered to reward
them for achieving the goals. This includes a well-known monthly on-time bonus ½originally $65
to every employee at the end of each month when the performance target was hit); a lottery for
an SUV for employees with six months perfect-attendance; and a profit-sharing program
½
ordenflycht, 2010).

c  

   
This involves by hiring the best employees
in the labor market. A competitive advantage only occurs when employee¶s knowledge, skill and
ability can add value to the organization. In order to target employees with the requisite
knowledge, skills and ability, the job has to be carefully defined. The HR managers of
continental airlines prepare effective job descriptions, job specification and job evolutions to
attract the best possible employees.

   
 In 2006, the sales and reservations department at Continental Airlines
decided to offer its employees the option of working from home. 25 percent of the staff gets an
extra day off per week, on a rotating basis. Moreover studies have shown that a majority of
flextime workers have improved productivity and greater commitment to the job.

   

Continental Airlines uses a WebEx online training program to enhance the
employees work performance ½Continental Airlines, 2010). Supervisors conduct team meetings
and information briefings with four or five employees at a time, keeping them informed of
activities at corporate headquarters and of any policy and process changes that occur. One-on-
one online coaching sessions ensure that employees can use all of the software applications to do
their jobs effectively.


  
  Continental has mobilized cabin crews and pilots with wireless
PDA to help them share flight information more effectively. All employees have access to
operational data, passengers and flight plans. Moreover it has implemented mobile applications
in other key operational areas beyond baggage handling, including aircraft maintenance and on-
board navigation. Mobile devices are now issued to baggage handlers and runners, ramp
supervisors, mechanics and pilots. Today, any Continental employee who needs remote access
uses Fiberlink. Continental Airlines¶ outsourcing engagement to Fiberlink not only produced
better remote access, but lowered those monthly costs by up to half of what was at least$200,000
per-month expenditure ½Economist Intelligence, 2007).?

References

`? Bethune, G. & Huler, S. ½1998). Î






 
   


 

  
.
ew York: ohn Wiley & Sons.
`? Continental Airlines ½2010) ³Continental Airlines goes green by optimizing remote
workforce with WebEx´, viewed 3rd October,
<http://www.webex.com/pdf/cs_Continental.pdf>
`? Economist Intelligence Unit ½2007), ³Business in motion: Managing the mobile
workforce´, viewed 3rd October 2010,
<http://graphics.eiu.com/ebf/PDFs/Business_in_motion_April%202007_FI
AL.pdf>
`? ackson.S., Schuler,R. & Werner,S. ½2008).  
  ½10th ed.), South Western
College Learning:
elson education Ltd.
`?
ordenflycht., A. ½2010). ³From command to involvement: the transformation of
authority at Continental Airlines´, viewed 3rd October,
<http://www.sfubusiness.ca/homes/vonetc/papers/Continental-LERA-Mar05-28pp.pdf>