According to authors of this study sustained improvement in service quality and financial performance, which are most important goals for every company, will require more fundamental improvements in the quality of labor relations. They conclude that wage and employment cuts or efforts to reduce union power or representation alone may produce short term gains for the firms, but if this is all the firm do, the short term gains may well come at the expense of the long term recovery. Actions and policies that help build better labor-management relationships would make significant contribution to the long run health, even if the short-term pressures make such actions and policies difficult. .
2.2. Human resources planning.
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Macaleer and Shannon (2003) note that human resources planning has become even more important in the highly competitive, global business environment of the 21st century. Corporations are developing more complex but nontraditional structures in order to be competitive, and attract and retain the key individuals upon which success depends. Yet there does not seem to be a rush or increased interest in human resources planning. Often misunderstood and relegated to a task-driven, bureaucratic role, human resources is not always able to be strategic business partner it needs to be.
According to Bague (2003) human resource planning is everything. Planning process is very important in the period before merger but it has to be performed very careful, protecting the confidentiality of key activities and each company's competitive information. This was very big problem in the Northwest Airlines acquisition of Republic Airlines, but as Dr. Ken said, for building successful organizational culture, it is better to use the term merger. In this pre merger period the companies didn't prepare human resources plans for successful merger because according to law companies are not allowed to exchange competitive information.
