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Turnaround and human resource strategies during the COVID-19 crisis

Author: Rivera Prieto, Juan Carlos,Santana, Monica,López Cabrales, Álvaro
Publisher: London: Sage Publishing
Year: 2025
DOI: 10.1177/23409444221120053
Source: https://www.econstor.eu/bitstream/10419/327056/1/1923070460.pdf
Ri e a P ie o, Juan Ca los; San ana, Monica; López Cab ales, Ál a o
A icle
Tu na ound and human esou ce s a egies du ing he
COVID-19 c isis
BRQ Business Resea ch Qua e ly
P o ided in Coope a ion wi h:
Asociación Cien í ica de Economía y Di ección de Emp esas (ACEDE), Mad id
Sugges ed Ci a ion: Ri e a P ie o, Juan Ca los; San ana, Monica; López Cab ales, Ál a o (2025) :
Tu na ound and human esou ce s a egies du ing he COVID-19 c isis, BRQ Business Resea ch
Qua e ly, ISSN 2340-9444, Sage Publishing, London, Vol. 28, Iss. 1, pp. 37-58,
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In oduc ion
Ai lines ha e been de as a ed by he COVID-19 pan-
demic. Indus y e enues in 2020 amoun ed o 40% o ha
o p e ious inancial yea s and 2019 le els a e no expec ed
o eco e be o e 2024 (Bouwe e al., 2021). In his con-
ex , companies ha e been o ced o adop d as ic co po-
a e and human esou ce measu es. Mos impo an ly,
companies need o implemen he u na ound s a egies
equi ed o o e come he si ua ion in a imely manne . To
adop he mos app op ia e human esou ce decisions o
manage he c isis, i is necessa y o conside he li e a u e
on o ganiza ional decline and on u na ound s a egy.
Nume ous s udies ha e ocused on human esou ce
p ac ices in imes o c isis (Cascio, 2002; Cascio e al.,
2021; Chu & Siu, 2001; Collings e al., 2021; Hi e al.,
1994). Ye human esou ce s a egies and p ac ices ha e
sca cely been conside ed in he li e a u e on u na ound
(San ana e al., 2017). As s a ed by Ca ne ale and Ha ak
(2020), looking ac oss di e en disciplines o solu ions o
his COVID-19 pandemic is an oppo uni y o schola s. In
addi ion, Fa ndale e al. (2019) encou age au ho s o s udy
how human esou ce managemen (HRM) can espond o
challenging en i onmen al p essu es by adding alue o
he i m in con ex s o c isis. In his sense, his s udy com-
bines he li e a u e on u na ound s a egies and he li e a-
u e on HRM, paying special a en ion o he an eceden s
o p oblems/causes and hei impac on he company, pa -
icula ly he in luence o he COVID-19 pandemic.
In addi ion, employees ha e been a ec ed by wo k-
place and employmen changes due o he global c isis. I
is hus he igh momen o explo e and cla i y exis ing
knowledge abou he na u e and ex en o manage ial com-
munica ions and s akeholde esponses. I is impo an o
emphasize ha du ing he global COVID-19 pandemic,
ai lines ha e had he c i ical ask o communica ing hei
company’s s a egic ision o s akeholde s o educe
Tu na ound and human esou ce
s a egies du ing he COVID-19 c isis
Juan Ca los Ri e a-P ie o, Monica San ana
and Ál a o López-Cab ales
Abs ac
In he highly complex wo ld o human esou ce managemen (HRM), o ganiza ions need o main ain bo h an inwa d
and an ou wa d app oach in imes o c isis. To adequa ely manage human esou ces, i is necessa y o conside he
en i onmen and he li e a u e on u na ound s a egy. This s udy combines he li e a u e on bo h u na ound and
HRM o ocus on p oblem an eceden s/causes and hei impac on companies. A case s udy o an ai line was conduc ed,
en iched wi h a he o ical signal analysis o manage ial communica ions and s akeholde esponses. The objec i e was
o explo e he company’s u na ound s a egies, human esou ce s a egies, and ins i u ional p essu es du ing he
COVID-19 pandemic. I was ound ha o o e come he c isis, i is necessa y o ecognize an eceden s o decline,
u na ound s a egies, human esou ce (HR) s a egies and p ac ices, ins i u ional p essu es on HRM, he emo ional
one and empo al ocus o manage ial communica ions as well as s akeholde esponses.
JEL CLASSIFICATION: M50
Keywo ds
Tu na ound s a egy, human esou ce managemen , co id, case s udy quali a i e o ien a ion
Uni e si y o Pablo de Ola ide, Se ille, Spain
Co esponding au ho :
Monica San ana, Uni e si y o Pablo de Ola ide, Ca e e a de U e a,
Km1, 41013 Se ille, Spain.
Email: [email p o ec ed]
1120053B RQ0010.1177/23409444221120053Business Resea ch Qua e lyRi e a-P ie o e al.
esea ch-a icle2022
Regula Pape
38 Business Resea ch Qua e ly 28(1)
conce ns abou he company’s p ospec s in an unce ain
pos -pandemic en i onmen . In ligh o his, he success o
he measu es aken o eme ge s onge om his c isis is
la gely de e mined by how s akeholde s assess he signals
e lec ing he quali y o he company du ing he pandemic.
In he absence o conc e e me ics o company achie e-
men s in o e coming such d ama ic e en s be o ehand,
s akeholde s ely on obse able signals, such as he u na-
ound esponses, HR s a egies and p ac ices, and he
employmen ela ionships (San ana e al., 2019b).
Howe e , he way companies signal hei d as ic co po-
a e and human esou ce measu es is ine i ably augh
wi h inhe en biases ela ed o cogni ion (Nylund & Raelin,
2015; Zacha akis & Shephe d, 2001). In pa icula , he-
o ical signals— ha is, ele an language-based in o ma-
ion used by business manage s o a ac he a en ion o
di e en audiences (Gio gi & Webe , 2015) and con ey
ele an messages (Ga ud e al., 2014)—ha e ecen ly
been ound o complemen how obse able signals impac
audiences (S eigenbe ge & Wilhelm, 2018). The e o e,
s akeholde s’ pe cep ions o such signals can no ably
in luence he momen um buil up by he i m in he ma ke
and in he compe i i e a ena. Ul ima ely, hey ha e an
impac on he e ec i eness o u na ound esponses, he
HR s a egies and p ac ices as well as he employmen
ela ionships designed o eme ge s onge om he c isis.
Consequen ly, his s udy sugges s ha emo ional one
namely he unde lying a ec i e a ibu es o communica-
ion (Williams e al., 2012)—which ga he s bo h he posi-
i e and nega i e emo ion dimensions in o a single
summa y a iable—(see Fisch & Block, 2021; Knigh
e al., 2018) plays an impo an ole. Indeed, emo ions can
signal he need o ac ion, ocus he a en ion on p oblems
o be add essed o a oided, and guide hinking and s a e-
gic beha io s du ing he COVID-19 c isis. In addi ion, his
wo k also sugges s ha empo al ocus—which cap u es
he deg ee o a en ion de o ed o he pas , p esen , and
u u e—(see Bluedo n, 2002; Nadka ni & Chen, 2014;
Shipp e al., 2009) se es as a empo al il e ha shapes
expec a ions and e alua ions in decision-making si ua-
ions and o ms he basis o s a egic beha io s (C ossan
e al., 2005; Das, 2004). Howe e , despi e he epe cus-
sions o such a c isis, a undamen al ques ion is how man-
age s should add ess he wide ange o communica ion
challenges c ea ed by he COVID-19 global heal h pan-
demic wi h di e en s akeholde s. Such a ques ion has in
ac been li le explo ed (Knowles e al., 2020; Sande s
e al., 2020).
In his line, a case s udy o an ai line, Ibe ia, was con-
duc ed. I was en iched wi h a he o ical signal analysis—
emo ional one and empo al ocus—o he managemen ,
employees, and s akeholde esponses. The aim was o
explo e he u na ound s a egies, human esou ce s a e-
gies, and ins i u ional p essu es ha a ec ed his p ocess
du ing he COVID-19 pandemic. The ques ions add essed
in his a icle we e as ollow: (1) Wha a e he an eceden s
o he decline? (2) Wha u na ound s a egies ha e been
ollowed? (3) Wha HR s a egies and p ac ices ha e been
adop ed? (4) Wha ins i u ional p essu es a ec HRM? and
(5) Wha emo ional one and empo al ocus a e ound in
he manage ial communica ions and s akeholde esponses
du ing he c isis? All hese ques ions applied o he Ibe ia
ai lines company. Indeed, as ea ly as Ap il 2020, mo e
han 95% o ope a ions we e canceled. The impac on
ligh p og ams was huge, wi h all g ound and ligh c ews
as well as a ele s demanding changes, ouche s, and
e unds (Ibe ia, 2020). Fo his eason, an analysis o how
his ai line company eac ed o hese challenges can help
o build an unde s anding o u na ound and HR s a egies
du ing his COVID-19 pandemic.
Thus, wo impo an aspec s we e in oduced in he anal-
ysis o hese an eceden s- u na ound-HR-ins i u ional p es-
su es on HRM ela ionship: he in luence o he COVID-19
pandemic (as an an eceden o decline) and a he o ical sig-
nal analysis (as a complemen o he case s udy me hodol-
ogy). These aspec s will help o u he comp ehend his
complex an eceden s- u na ound-HR-ins i u ional p essu es
ela ionship, in line wi h San ana e al.’s (2017) ecommen-
da ions. Indeed, iden i ying he emo ional one and empo-
al ocus o managemen , employees, and s akeholde s in
he company u na ound and HR s a egies and p ac ices
will inc ease he chances o success ully o e coming he
c isis (Lopez-Cab ales & DeNisi, 2021). Social suppo
plays an impo an ole, especially du ing he cu en pan-
demic (Bhumika, 2020; Made o Gómez e al., 2020).
Emo ions and ensions a he wo kplace ha e in ensi ied
du ing he COVID-19 c isis, as indi iduals seek o concili-
a e hei wo k and pe sonal issues, such as illness o he
dea h o lo ed ones (Williams, 2020). This leads o acknowl-
edging ha he emo ional one o company s akeholde s—
especially employees—is a key u na ound ac o . The
e ec o he cu en pandemic c isis on HRM was analyzed
h ough he lens o he co-e olu iona y s a egic human
esou ce managemen (SHRM) model o pe iods o c isis
p oposed by (San ana e al., 2019b).
The expec ed con ibu ions o his a icle no ably
included he ac ha in he con ex o a empo a y ex e nal
decline such as ha o igina ed by COVID-19, he ollow-
ing ac o s will con ibu e o a company u na ound: a
combina ion o e enchmen and eco e y s a egies; an
ini ial main enance-o ien ed human esou ce s a egy ol-
lowed by an e iciency-o ien ed human esou ce s a egy;
and an ine i able o cing s a egy o employmen ela-
ions ollowed by a os e ing s a egy o employmen ela-
ions. In addi ion, unde his empo a y ex e nal decline,
based on indus y con ac ion due o he global COVID-
19 heal h pandemic, managemen mus pay a en ion o
possible emo ional one de ia ions wi h s akeholde s—
especially employees— o achie e a success ul u na-
ound. I is also impo an o emphasize ha managemen
Ri e a-P ie o e al. 39
mus pay a en ion o possible empo al ocus de ia ions
wi h s akeholde s and adop he p esen and u u e empo-
al ocus o achie e a success ul u na ound.
The ollowing sec ions p esen an analysis o he li e a-
u e on he an eceden s (o causes) o decline, u na ound
esponses, HRM in imes o c isis and ins i u ional p es-
su es on HRM, manage ial communica ion, and s ake-
holde esponses. The me hod sec ion desc ibes he case
s udy and he he o ic analysis s udy. The esul s and he
discussion sec ion he ollows, ending wi h some conclu-
sions as well as he heo e ical and p ac ical implica ions
o he s udy.
Theo e ical amewo k
The e has been a ising in e es in HRM in imes o c isis,
jus i ied by mul iple c i ical pe iods (e.g., inancial c ises,
heal h c ises, echnological i up ions, e c.) (Cascio, 2002;
Chu & Siu, 2001; Hi e al., 1994; Hu man e al., 2022;
Luan e al., 2013; San ana e al., 2017, 2019b; Tsai & Yen,
2008). The academic li e a u e on he e ec s o c ises on
HRM, howe e , needs o be u he de eloped (Kwong
e al., 2021; San ana e al., 2017).
The s udy o HRM in imes o c isis implies analyzing
he co-e olu ion o he causes o decline, an o ganiza ion’s
u na ound esponses, HR s a egies, p ac ices and in e nal
employmen ela ionships (San ana e al., 2019b). These
la e au ho s p oposed a co-e olu iona y model o he
an eceden s o decline, u na ound and HR esponses, and
employmen ela ions s a egies. The model implies ha
c isis esponses mus cons an ly e ol e and ha SHRM
decisions a e dynamic a he han s a ic, especially in pe i-
ods o c isis. This a icle ocuses on he dynamic co-e olu-
ion o di e se a iables and hei mu ual impac , and how
he in e ac ions be ween he i m and i s en i onmen
in luence he iming and inclusion o HR p ac ices (Paauwe
& Boselie, 2009). Fo ins ance, labo policies will in lu-
ence a company’s abili y o hi e. They will hus ha e an
impac on HR choices. Mo eo e , high a es o i m hi ing
will a o he labo ma ke , b inging down unemploymen
a es. To apply his co-e olu iona y SHRM model o
imes o c isis o he cu en pandemic si ua ion, we
desc ibe in his sec ion he concep s o an eceden s (o
causes) o decline, u na ound esponses, HRM in imes o
c isis, ins i u ional p essu es on HRM, manage ial com-
munica ion, and s akeholde esponses.
An eceden s o decline
Di e en e ms a e used in he s udy o o ganiza ional c i-
ses, such as o ganiza ional decline, business ailu e, mo -
ali y, o bank up cy (Mellahi & Wilkinson, 2004).
Howe e , as he p esen wo k cen e s on how o ganiza-
ions manage he c isis, o ganiza ional decline is consid-
e ed as a ocal e m. Indeed, decline canno be di ec ly
associa ed wi h company dea h, while he o he concep s
(i.e., business ailu es, mo ali y, o bank up cy) e e o a
company’s exi , dea h, o mo ali y (Mellahi & Wilkinson,
2004). O ganiza ional decline hus e e s o he de e io a-
ion o he company esou ces and pe o mance o e a pa -
icula pe iod o ime (Came on e al., 1987; D’a eni,
1989; F ancis & Desai, 2005; Ribei o Se a e al., 2017;
Teixei a e al., 2019). Two main an eceden s o decline
ha e been dis inguished, namely in e nal causes and ex e -
nal causes (Wei zel & Jonsson, 1989). In his sense, o gan-
iza ions need o p edic and iden i y he oo o a p oblem
and whe he in e nal o ex e nal p oblems—o bo h—p e-
domina e (Ba ke , 2005), as hese an eceden s will de e -
mine he o ganiza ional esponse o he c isis (Fo d, 1985).
Managemen needs o iden i y bo h he oo and iming o
he decline in e ms o awa eness o he decline (San ana
e al., 2017). Ex e nal an eceden s o indus y con ac ion–
based decline a e g ounded in he company’s exogenous
in e ac ions (A ogyaswamy e al., 1995; Bodolica &
Sp aggon, 2020; Whe en, 1987) and a e ela ed o echno-
logical, compe i i e, economic, poli ical, cul u al, legal o
indus y changes, and, mos ecen ly, he COVID-19 pan-
demic (Bodolica & Sp aggon, 2020; B own & Kline,
2020; Da a e al., 2010; Mellahi & Wilkinson, 2004;
Sche e , 2003; T ahms e al., 2013). A ogyaswamy e al.
(1995) di ided he ex e nal o indus y con ac ion–based
decline in o cyclical o long- e m decline. Fo he pu pose
o his esea ch, we will e e o his ype o cyclical indus-
y con ac ion–based decline as a empo a y ex e nal
decline. The COVID-19 pandemic ep esen s undoub edly
an ex e nal dis up ion ha has impac ed o ganiza ions
ab up ly (B own & Kline, 2020) wi hin a sho pe iod o
ime. And his uphea al will de e mine he u u e e olu-
ion (Amankwah-Amoah e al., 2020) o many indus ies
(e.g.: ai lines and hospi ali y).
Whe he he COVID-19 c isis should be conside ed as
a “black swan” is cu en ly unde deba e (B own & Kline,
2020; Gudmundsson e al., 2021). “Black swans” a e
e en s ha a e almos impossible o p edic as hey occu
e y a ely (B own & Kline, 2020). Acco ding o B own
and Kline (2020), he COVID-19 c isis canno be consid-
e ed as a “black swan,” since pandemic e en s occu egu-
la ly: despi e he ac ha manage s had some p e ious
heal h c isis expe ience (e.g., se e e acu e espi a o y syn-
d ome [SARS], Swine Flu), hey p e e ed o ocus p io -
i y s a egic plans on o he less-se ious p oblems. This
caused ai lines o be unp epa ed o such a challenge and
highligh s he impo ance o unde s anding and being
awa e o o ganiza ional decline indica o s. Con e sely,
in e nal sou ces o i m-based causes a e hose ha manag-
e s can con ol (e.g.: employees, esou ces, and ac i i ies),
such as inancial o ope a ional p oblems, lack o inno a-
ion, employee a ibu es, go e nance, and leade ship dys-
unc ionali ies (A ogyaswamy e al., 1995; Bodolica &
Sp aggon, 2020; Sche e , 2003; T ahms e al., 2013).
40 Business Resea ch Qua e ly 28(1)
Tu na ound s a egy
To espond o he decline si ua ion, o ganiza ions need o
implemen u na ound esponses, usually in a con ex o
lack o esou ces and in ense s akeholde p essu es
(T ahms e al., 2013). The e m u na ound s a egy seems
o be inconclusi e (Kumalo & Scheepe s, 2018) bu i e
u na ound s ages a e ypically conside ed: analysis o he
si ua ion, u na ound plan, u na ound implemen a ion,
s abiliza ion, and e u n o g ow h (Sche e , 2003). Fo
hei pa , Balgobin and Pandi (2001) as well as P e o ius
(2008) de ine u na ound as he eco e y o an o ganiza-
ion’s pe o mance a e ha sh de e io a ion. This accep a-
ion implies su i ing he h ea , hough o he de ini ions
also conside he possibili y o ailu e ollowing u na-
ound esponses (Kumalo & Scheepe s, 2018). In his
sense, a u na ound s a egy e e s o a dynamic and
sequen ial p ocess ha leads o ganiza ions o success ul o
unsuccess ul pe o mance (Boyne & Meie , 2009; Schmi
& Raisch, 2013). O ganiza ional ailu e o su i al has
always been a he cen e o o ganiza ional esea ch (Jose y
e al., 2017). Two main u na ound esponses ha e adi-
ionally been ecognized: e enchmen and eco e y
(Pea ce & Robbins, 1993). Fo his pa , Boyne (2004) con-
side s h ee main u na ound s a egies: eo ganiza ion,
eposi ioning, and e enchmen while Albe s and
Rundshagen (2020) highligh ed he ollowing e ench-
men s a egies: pe se e ing, inno a ing, and exi . This
s udy adop ed he e enchmen and eco e y classi ica-
ion. Re enchmen o ope a ing esponses aim o educe
cos s and asse s (Pea ce & Robbins, 1993), while eco e y
esponses a e based on adjus ing he o ganiza ion’s a eas
o compe i ion (Ndo o e al., 2013). Fo some au ho s,
u na ound s a egies should be consis en wi h he an e-
ceden s o decline (A ogyaswamy e al., 1995; Ho e ,
1980; Ndo o e al., 2013; San ana e al., 2017), while o h-
e s conside ha he e enchmen s a egies a e uni e sal,
o e looking he unde lying an eceden s (Pea ce &
Robbins, 1993). Acco ding o Ndo o e al. (2013), i he
decline was caused by a debili a ed s a egic posi ion, hen
e enchmen will no sol e he si ua ion. We ag ee wi h
Schmi and Raisch (2013) acco ding o whom a combina-
ion o e enchmen and eco e y esponses helps i ms o
consolida e u na ound pe o mance. Fi ms should adop
ocused s a egic esponses, e en in he e enchmen
phase (Ba be o e al., 2017). In conclusion, iden i ying he
an eceden s o he decline, iming, and p edic ion a e c u-
cial ac o s in he u na ound p ocess (Ba be o e al., 2017,
2020; Ba ke , 2005; San ana e al., 2017, 2019b). We will
now explo e he ole o HRM in his con ex .
HRM in imes o c isis
Gi en he impac o COVID-19 c isis, a numbe o semi-
nal wo ks—some o which a e ecen —ha e appea ed on
SHMR in imes o c isis. We will b ie ly e iew hem he e.
Schule (1988) iden i ied he employee cha ac e is ics
equi ed and HR choices in a u na ound s a egy bu wi h-
ou conside ing he an eceden s o he decline. The au ho
insis ed on he need o lexible, ask-o ien ed, and long-
e m ision employees o adap o changes in unce ain
imes. A ogyaswamy e al. (1995) emphasized he impo -
ance o acknowledging human esou ces as a sou ce o
s a egic ad an age when adop ing esponses o decline.
Te ms such as igh sizing, downsizing, and esponsible
es uc u ing (Cascio, 2002; Chu & Siu, 2001; Hi e al.,
1994; Luan e al., 2013; Muñoz-Bullón & Sánchez-Bueno,
2011) hen eme ged as ecu en concep s o e e o HRM
in imes o c isis. Acco ding o Chu and Siu (2001), igh -
sizing is a downsizing choice and en ails he ob en ion o
adequa e o ganiza ional size, a he han de ining he
scale o educ ion. Downsizing is de ined as manage ial
esponses o adap o en i onmen al issues, esol e o gan-
iza ional complica ions, and eco e e iciency o pu sue
p oduc i i y and compe i i eness (Tsai & Yen, 2008). The
con ibu ion o Cascio (2002), o i s pa , is highly ele-
an , as i in okes he esponsible es uc u ing concep ,
which is highly de e minan in he case o HRM in imes
o c isis. In esponsible es uc u ing, people a e ega ded
as esou ces o be de eloped a he han me e cos s o be
educed (Cascio, 2002). The au ho insis s ha e en head-
coun s should be conduc ed esponsibly. Examples o
esponsible es uc u ing in non-co e a eas include:
employees’ ea ly e i emen packages; o e ing ou place-
men se ices and layo no ices in ad ance; anspa en
layo c i e ia; and selec i e olun a y esigna ion plans
wi h se e ance packages (Cascio, 2002; Za zick e al.,
2009). Responsible HR p ac ices a e needed, especially
conside ing ha high pay can lead o high employee p o-
duc i i y (Lopez-Cab ales & DeNisi, 2021; Rahmandad &
Ton, 2020).
Recen ly, Cascio e al. (2021) e iewed he an eceden s
and consequences o employee downsizing, he eby
ex ending and e ining ins i u ional heo y, which is o pa -
icula in e es o he p esen wo k. Also ele an is he
p oposal o San ana e al. (2017), linking an eceden s o
decline, u na ound s a egies, and he SHRM discipline.
The au ho s se ou ou HR s a egy con igu a ions o
companies in imes o c isis, namely: lexibili y-o ien ed
HRS, e iciency-o ien ed HRS, niche-o ien ed HRS and
main enance-o ien ed HRS, wi h hei espec i e se s o
HR p ac ices. The au ho s add essed HR p ac ices in he
mos d ama ic si ua ions, adop ing a esponsible es uc-
u ing app oach h oughou . The new ex e nal challenge
b ough abou by he COVID-19 pandemic jus i ies an
explo a ion o how he c isis-pe iod SHRM model
(San ana e al., 2019b) unc ions in he con ex o his new
an eceden o challenge.
In addi ion, Collings e al. (2021) acknowledge ha as
a consequence o he pandemic, esh li e a u e on HRM in

Ri e a-P ie o e al. 41
imes o c isis is eme ging and ha a balance needs o be
eached among mul iple s akeholde equi emen s. In his
line, Ca ne ale and Ha ak (2020) highligh ed ha o gani-
za ions ace a huge challenge ega ding employee adjus -
men and well-being: companies need o suppo hei
wo k o ce o adjus o new wo king condi ions, such as
shi ing o emo e wo king, new HR planning, and less
physical human in e ac ion. Mo eo e , one o he mos
ecu en HR esponses in imes o c isis is he cu back
decision (Hu man e al., 2022; San ana e al., 2017). In
his sense, Hu man e al. (2022) ocused on u lough deci-
sions, such as unpaid lea e o e ce ain pe iods, o exam-
ple, days o weeks, o empo a y educ ions in wo king
hou s. Hu man e al. (2022) ound ha con olling ( educ-
ing) u lough du a ions and implemen ing and communi-
ca ing ai and anspa en u lough policies could
s eng hen o e all HR managemen in imes o unce ain y.
Despi e he in e es in c isis HRM, u he esea ch is
needed due o he complexi y o he si ua ion o manage s
and he wo k o ce.
Ins i u ional p essu es on HRM, manage ial
communica ion, and s akeholde esponses
Ins i u ional p essu es on HRM. Johns one e al. (2019)
highligh ed he c ucial ole o na ional ins i u ions in
designing policy ac ions a he coun y le el, especially
du ing c isis pe iods. They also emphasized he o ganiza-
ional impac o ex e nal challenges and in e nal ac o s,
such as ade unions, manage s, and wo ke s. Indeed, in
di icul imes, na ional ins i u ions, egula ions, and ade
unions exe cise signi ican p essu es ha shape he HR
measu es adop ed by o ganiza ions (San ana e al., 2019a;
Sa ina & W igh , 2015; Wilkinson e al., 2014) acco ding
o di e en na ional con ex s.
Howe e , acco ding o Ma ínez Lucio and S ua
(2011), he ole o s a es in HRM is s ill unde - esea ched.
I s ole will become e en mo e c ucial as na ion s a es
push o boos hei pos -COVID-19 economies (Cooke
e al., 2020). Fo ins ance, he Chinese Go e nmen has
issued measu es and policies o egula e employmen , such
as social insu ance and employmen p o ec ion (Zhang,
2020). Fu he mo e, a numbe o na ional ins i u ions a e
s eng hening he ole o wo ke ep esen a i es, and his
may hus a ec he esponses o i ms (Lange e al., 2015).
Ne e heless, employe s can choose how o al e hei
employmen ela ion esponses in unce ain imes. In his
sense, Wal on e al. (1994) p esen ed a seminal wo k,
desc ibing h ee nego ia ion s a egies ha can be applied
o HR s a egies, namely: o cing, os e ing, o escape. The
o cing s a egy consis s o pe suading wo ke s o ag ee o
undesi ed and signi ican e ms while educing, in pa allel,
he in luence o ade unions in he wo kplace. This s a -
egy can p esen se ious disad an ages, such as in e g oup
dis us , o example, when o cing employees o accep
labo educ ion plans in imes o c isis. The os e ing
esponse aims o build esponses o common obs acles and
o build s akeholde us , al hough incon eniences o
complex p oblems may be pos poned so as o a oid o c-
ing ela ionships. Fo ins ance, enhancing bi-di ec ional
communica ion, he managemen in o ms unions abou
c ucial company da a, while employees communica e
ideas o imp o e daily ope a ions. Bo h pa ies hus ob ain
mu ual gains. The escape s a egy co esponds o he end
o he ba gaining ela ion h ough he physical displace-
men o ac i i ies o a di e en loca ion. I ep esen s a
loss–loss si ua ion. An illus a ion is when a company
abandons ope a ions in an in ensely labo - egula ed coun-
y wi h high dismissal cos s.
In line wi h hese s a egies, Boon e al. (2009) de ined
h ee HRM s a egies o eac o ins i u ional p essu es:
de ian (ac i e esis ance, such as challenging p ede e -
mined ules), con o mis (neu al esponse, such as he
accep ance o ins i u ional p essu es), and inno a i e ( he
pu sui o new beha io s in esponse o ins i u ional p es-
su es). I is wo h no ing ha he o ganiza ional wo k o ce
s uc u e will also de e mine he manage ial choice o
employmen ela ion s a egy, dis inguishing commi men ,
low-in es men , o hyb id pe spec i es (Sa ina & W igh ,
2015): a commi men pe spec i e is mo e app op ia e o
co e employees, and a low-in es men pe spec i e is mo e
sui able o “ancilla y-knowledge” employees.
Manage ial communica ion and s akeholde esponses. The
c isis-managemen li e a u e conside s ha a key ac o
when na iga ing a public heal h c isis is he adop ion o
app op ia e co po a e esponse s a egies (Male & Ko b-
i z, 2015; Page e al., 2006; Volo, 2007). In his sense, co -
po a e esponsi eness is de ined as he abili y o eac o
eme ging isks by econ igu ing esou ces and implemen -
ing app op ia e communica ion s a egies in he ace o
such si ua ions (Ri chie, 2008).
Ou analysis o manage ial communica ions and s ake-
holde esponses is based on signaling heo y (Connelly
e al., 2011), as i cen e s on building communica ion ela-
ionships and educing in o ma ion asymme ies be ween
wo pa ies (a sende and a ecei e ). Indeed, in he c isis-
managemen li e a u e, signaling heo y has been widely
used o s udy app oaches o ela ionship eco e y (Kha ou
e al., 2020) and o explain he e ec i eness o co po a e
announcemen s (Ni e al., 2016).
Fo hei pa , Knowles e al. (2020) ha e wa ned o he
need o e iew and upda e exis ing models, s a egies, and
heo ies o public heal h c isis communica ion o cope
wi h he uniqueness, complexi y, and unp edic abili y o
his global COVID-19 pandemic. The li e a u e sugges s
ha du ing a c isis, s akeholde s a e likely o pay close
a en ion o co po a e esponse s a egies, especially
ac ions ha educe he nega i e impac o he c isis on
s akeholde s (Tse e al., 2016).
42 Business Resea ch Qua e ly 28(1)
Howe e , he way in which co po a ions signal hei
d as ic co po a e and human esou ce measu es is ine i a-
bly augh wi h inhe en biases ela ed o cogni ion
(Nylund & Raelin, 2015; Zacha akis & Shephe d, 2001).
Rhe o ical signals, in pa icula , a e a o m o language-
based ele an in o ma ion used by co po a e manage s o
a ac he a en ion o di e en audiences (Gio gi &
Webe , 2015) and con ey ele an messages (Ga ud e al.,
2014).
In he con ex o c isis managemen , he use o emo-
ional aming can be an e ec i e addi ion o a de ensi e
c isis esponse s a egy, as s akeholde s end o ha e a be -
e unde s anding o he company’s si ua ion (Coombs,
2007). P e ious s udies ha e examined he e ec s o lan-
guage aming by explo ing he in luence o emo ional
co po a e esponses on s akeholde beha io (Sela e al.,
2012). In his ega d, he esul s o he s udy conduc ed by
Wang e al. (2021) sugges ha co po a ions should p o-
duce c isis esponses ha ex ensi ely u ilize an emo ional
s a egy o enhance s akeholde esponses du ing public
heal h c ises. Emo ional esponses appeal o he use o
subjec i e and alua ional p ope ies in communica ion
messages o pe suade s akeholde s (Claeys & Caube ghe,
2014; O h e al., 2007). In addi ion, p e ious esea ch has
also shown ha high le els o posi i e emo ional esponses
a e associa ed wi h mo e a o able s akeholde pe cep-
ions o a co po a ion (F ank e al., 2014; Schoe e &
Diaman opoulos, 2009).
Fu he mo e, he eme ging li e a u e on subjec i e
iewpoin s, in he s a egy domain, sugges s ha he
in e p e a ion o ime se es as a empo al il e ha
shapes expec a ions and e alua ions in decision-making
si ua ions and o ms he basis o s a egic beha io s
(C ossan e al., 2005; Das, 2004). The e o e, knowing
how business manage s hink and eel abou ime can
ha e a g ea in luence on hei i ms’ s a egies (Chen &
Nadka ni, 2017) and s akeholde esponses. In his
ega d, manage s wi h a s ong ocus on he pas se e as
men al a chi is s o he successes and ailu es hey ha e
had h oughou hei li es (Gibson e al., 2007;
Mohammed & Ha ison, 2013). Acco ding o Bluedo n
(2002), a s ong ocus on he pas can lead o a gene ali-
za ion bias because business manage s may see si ua-
ional simila i ies bu ail o see he di e ences be ween
di e en e en s. Manage s wi h a s ong ocus on he p e-
sen may ha e up- o-da e iews o he en i onmen and
p o ide be e in o ma ion abou a company’s di e en
oppo uni ies and isks (Chen & Nadka ni, 2017). By
emphasizing he p esen momen o ind solu ions, man-
age s wi h a s ong ocus on he p esen can use eal- ime
in o ma ion o alida e new oppo uni ies and swi ly
a oid isks, wi h he goal o con inuously adjus ing
de elopmen (Nadka ni & Chen, 2014). Manage s wi h a
s ong ocus on he u u e end o imagine wha is o
come, bo h o de ec new oppo uni ies and o an icipa e
u u e isks; hey a e pa icula ly able o iden i y and
mee he demands o dynamic en i onmen s (Gibson
e al., 2007). Mo eo e , a o wa d-looking pe spec i e
can d i e cen al s a egic changes (Ocasio, 2011).
Me hodology
Tu na ound managemen and ela ed esponses o he
COVID-19 c isis ha e o ace unce ain ci cums ances.
We chose o conduc a case s udy o build an in-dep h
unde s anding o how o ganiza ions eac o such unp e-
dic able condi ions. Acco ding o Eisenha d and G aebne
(2007), case s udies a e an op imal choice o me hodology
o build heo y induc i ely. Ou aim was o be e comp e-
hend pa e ns o ela ionships among cons uc s, ha is,
u na ound esponses, human esou ce s a egies and p ac-
ices, as well as ins i u ional p essu es on HRM. Case s ud-
ies ha e been ound o be sui able o iden i y hese
ela ionships as hey allow s udying he analyzed phenom-
ena in he eal-wo ld con ex , connec ing case da a,
de ec ed heo y and ex an heo e ical li e a u e (Eisenha d
and G aebne , 2007).
Case s udy selec ion and desc ip ion
The ai line indus y has a g ea impac on an economy as i
c ea es jobs, acili a es geog aphical connec ions (e.g., ci y
pai s, e c.) and enables he lows o ade, ou ism, and
in es men (IATA Economics, 2019). Howe e , due o he
COVID-19 pandemic, he ai line indus y ne losses a e
o ecas o amoun o some $118 billion in 2020, and o
dec ease o $38 billion in 2021 (IATA Economics, 2020).
Acco ding o B ian Pie ce, IATA chie economis , he ai -
line indus y has expe ienced he bigges blow since he
Second Wo ld Wa , wi h a ca as ophic d op in demand,
much g ea e han in p e ious c ises, such as he 2008
inancial c isis, o he one caused by he e o is a acks o
Sep embe 11, 2001, in New Yo k. (Muñoz, 2021).
The Spanish ai line ma ke is highly ele an o he
Spanish economy (IATA, 2018, 2021) and i o e s impo -
an domes ic and in e na ional connec ions and ou ism
olume. Spanish ou ism accoun s o 12% o he coun-
y’s GDP and 82% o ou is s a i e by ai . Wi hin his
ma ke , Ibe ia is Spain’s majo ai line (Ibe ia, 2020) and
an Ibe ia case s udy is highly pe inen om he pe spec-
i e o u na ound and HR s a egies. Indeed, by Ap il
2020, mo e han 95% o ope a ions had al eady been
canceled. This had a emendous impac on ligh p o-
g ams, wi h all g ound and ligh c ews and clien s
demanding changes, ouche s, and e unds (Ibe ia, 2020).
The e o e, obse ing how his ai line company eac s o
hese challenges will help o unde s and u na ound and
HR s a egies du ing his COVID-19 pandemic.
Ri e a-P ie o e al. 43
Ibe ia was ounded in 1927 and ini ially linked ci ies in
he Spanish mainland, he Cana y Islands, and No h
A ica. Ibe ia is Spain’s la ges ai line and has h ee main
businesses: passenge and eigh anspo , ai c a main-
enance, and ai po handling se ices. Wi h i s 16,000
employees, 146 ai c a s, and ligh s o 116 des ina ions in
Eu ope, Ame ica, A ica, Middle Eas , and Asia, Ibe ia is
he leade o he Eu opean and La in Ame ican ma ke s,
o e ing 290 addi ional ai po ligh connec ions wi h
pa ne ai lines. The company’s business miles ones
include: i s ma ke lis ing in 2001; i s me ging wi h B i ish
Ai ways unde he In e na ional Ai lines G oup (IAG) in
2011; and he c ea ion o he low-cos ca ie Ibe ia
Exp ess. Indeed, in 2011, Ibe ia joined he IAG along wi h
o he companies such as B i ish Ai ways, Ae Lingus, and
Vueling. In 2020, acco ding o he IAG annual epo , IAG
p esen ed an ope a ing loss o 7.426 billion eu os, while
Ibe ia’s ope a ing losses eached 1.411 billion eu os. The
es ic ions a ising om he pandemic ha e c ea ed an
excep ional si ua ion in which Ibe ia’s lexibili y has been
c ucial o adap o such an unce ain con ex .
Da a collec ion
Da a o his case s udy we e ga he ed om mul iple
sou ces, combining p ima y and seconda y da a wi h in e -
nal and ex e nal in o ma ion. A chi al da a we e collec ed
om company s a emen s, inancial epo s, newspape s,
specialized web pages, and ele ision. In addi ion, in e -
iews we e conduc ed wi h managemen , employees, and
indus y s akeholde s. I should be no ed, howe e , ha
mos in e iews wi h managemen we e ob ained mainly
om ideos in specialized p ess and ele ision in e iews.
The ha shness o he si ua ion is gene a ing much unce -
ain y wi hin he manage ial eam ega ding he communi-
ca ion o he decisions o be adop ed. Ne e heless,
h oughou summe 2021, he e was g ea e op imism
abou u u e decision-making and s a egies.
In e iews
To iangula e in o ma ion, he case s udy was en iched
wi h insigh s ia mul iple company sou ces and le els
(Smi h, 2014). Fi s , we d ew upon 18 in e iews wi h
pilo s and ligh a endan s (8 Ibe ia and 10 non-Ibe ia)
conduc ed in he sp ing o 2021. These in e iews we e
app oached in wo s eps: (1) we conduc ed a su ey wi h
15 open and closed ques ions ela ed o he an eceden s o
he decline, he u na ound s a egy, he human esou ce
s a egy, and ins i u ional p essu es (see Appendix) and (2)
we di ec ly in e iewed each o he eigh een esponden s
ia elephone con e sa ion.
Second, we ob ained insigh s om ideos o special-
ized p ess and ele ision in e iews wi h eigh Ibe ia exec-
u i es and manage s ( ou execu i es and ou manage s).
Two ull-de ailed in e iews abou he esponses o he
COVID-19 pandemic om Ibe ia’s o me and cu en
CEO we e ex ac ed om he media, which consis ed o a
ideo and de ailed news. In addi ion, we also communi-
ca ed di ec ly wi h one o hem ia email.
Thi d, wo ade unionis s b ie ly exchanged hei opin-
ions abou he an eceden s, he u na ound s a egy, he
human esou ce s a egy, and ins i u ional p essu es a
Ibe ia ia email and elephone con e sa ion, espec i ely.
In addi ion, we complemen his s udy wi h insigh s om
ideos o specialized p ess and ele ision in e iews wi h
h ee a ia ion expe s: Spain’s o me Sec e a y o S a e
o T ade and o me P esiden o AENA (Spanish Ai po s
and Ai Na iga ion), he Gene al Manage o he Eu opean
Regions Ai line Associa ion, and a uni e si y p o esso
wi h expe ise in he ai lines sec o (Table 1).
All hese esponses we e no ed and classi ied acco ding
o ou analyzed a iables: an eceden s, u na ound s a -
egy, human esou ce s a egy, and ins i u ional p essu es.
The e o e, conside ing he s a egic sensi i i y o he
issues, hese combined in e iews and insigh s om mul i-
ple sou ces o e ed insigh ul in o ma ion abou he s a e-
gic esponses o he COVID-19 pandemic.
A chi al da a
We analyzed he 2020 IAG and Ibe ia annual epo s and
sus ainabili y epo s, as well as collec i e ba gaining
ade union documen s, labo media ion ag eemen s, and
empo a y labo educ ion plans. A chi al da a we e also
collec ed om he company s a emen s, epo s, and news,
encompassing bo h in e nal and ex e nal company in o -
ma ion. Rega ding he in e nal in o ma ion, issued di ec ly
by he company, he s a emen s analyzed we e subdi ided
in o i e hema ic a eas ela ing o he company u na-
ound s a egy and HR du ing 2020 and 2021 (business,
HR, ope a ions, sus ainabili y, and echnology), and
epo s (sus ainabili y epo s and annual epo s). Wi h
espec o he company’s ex e nal in o ma ion, published
by in omedia ies, we used Google News and O bis (which
collec s in o ma ion om he ollowing in omedia ies:
Dow Jones, Thomson Reu e s, Bu eau an Dijk, Economis
In elligence Uni , Syndiga e, Acqui e Media, and In o ma).
News i ems om he o icial s a da e o he co ona i us
(01/12/2019) was il e ed and o de ed acco ding o hei
ele ance ( om highes o lowes ). In addi ion, he news
i ems we e classi ied in o di e en hema ic a eas e e ing
o he an eceden s o decline, he u na ound s a egy and
HR (Decline, Tu na ound s a egies, HR s a egies,
Compe i i e, Cul u al-Social, Finances, Go e nance,
Legal-Poli ical, and Technological).
Rhe o ical signal: compu e -assis ed con en
analysis
Wi hin his case s udy, an analysis o he emo ional one
and empo al ocus o managemen , employees, and
44 Business Resea ch Qua e ly 28(1)
Table 1. In e iews o case s udy.
Type o o ganiza ion Company Posi ion Da e Type o in e iew In ol emen /a ea o expe ise Code
Ai line company Ibe ia Execu i e 27 June 2020 P ess in e iew and ideo CEO Boa d o Di ec o s M/IB/1
Ai line company Ibe ia Execu i e 21 Sep 2020 P ess in e iew and ideo Chie Cus ome O ice M/IB/2
Ai line company Ibe ia Managemen 21 Sep 2020 P ess in e iew and ideo Di ec o o S anda ds and P ocedu es o Ibe ia
and Pilo
M/IB/3
Ai line company Ibe ia Execu i e 21 Sep 2020 P ess in e iew and ideo Chie Communica ions O ice M/IB/4
A ia ion expe The Technical Uni e si y o
Mad id
P o esso 21 Sep 2020 P ess in e iew and ideo The Depa men o Ae ospace Sys ems, Ai
T anspo and Ai po s
AE/1
A ia ion expe AENA/ Spanish S a e Fo me P esiden o AENA and
Sec e a y o S a e o T ade
21 Sep 2020 P ess in e iew and ideo Fo me Sec e a y o S a e o T ade o Spain
and o me P esiden o AENA
AE/2
Ai line company Ibe ia Managemen 31 Jan 2021 Email Co po a e Di ec o M/IB/5
T ade union CCOO Rep esen a i e 17 Ap il 2021 Telephone in e iew Union ac ion delega e TU/1
Ai line company Vueling Pilo 19 May 2021 Ques ionnai e o m and elephone Pilo P/1
Ai line company Swi ai Pilo 18 May 2021 Ques ionnai e o m and elephone Pilo P/2
Ai line company Ae Lingus Fligh a endan 20 May 2021 Ques ionnai e o m and elephone Fligh a endan FA/1
Ai line company Ryanai Fligh a endan 23 May 2021 Ques ionnai e o m and elephone Fligh a endan FA/2
Ai line company Ai Eu opa Fligh a endan 27 May 2021 Ques ionnai e o m and elephone Fligh a endan FA/3
Ai line company Ibe ia Pilo 8 June 2021 Ques ionnai e o m and elephone Pilo P/3
Ai line company Ibe ia Pilo 8 June 2021 Ques ionnai e o m and elephone Pilo P/4
Ai line company Ibe ia Pilo 10 June 2021 Ques ionnai e o m and elephone Pilo P/5
Ai line company Ibe ia Pilo 10 June 2021 Ques ionnai e o m and elephone Pilo P/6
Ai line company Vueling Pilo 11 June 2021 Ques ionnai e o m and elephone Pilo P/7
Ai line company Ibe ia Pilo 15 June 2021 Ques ionnai e o m and elephone Pilo P/8
Ai line company Ibe ia Pilo 15 June 2021 Ques ionnai e o m and elephone Pilo P/9
Ai line company Ai Eu opa Pilo 18 June 2021 Ques ionnai e o m and elephone Pilo P/10
Ai line company Ai Eu opa Pilo 18 June 2021 Ques ionnai e o m and elephone Pilo P/11
Ai line company Ai Eu opa Pilo 18 June 2021 Ques ionnai e o m and elephone Pilo P/12
Ai line company Ryanai Pilo 24 June 2021 Ques ionnai e o m and elephone Pilo P/13
Ai line company Ibe ia Pilo 29 June 2021 Ques ionnai e o m and elephone Pilo P/14
Ai line company Ibe ia Pilo 30 June 2021 Ques ionnai e o m and elephone Pilo P/15
T ade union CCOO/Ibe ia/G ound o ce Rep esen a i e 18-19 July 2021 Email o ou eques Union delega e TU/2
Ai line company Ibe ia Execu i e 18 and 21 July 2021 P ess in e iew and ideo CEO Boa d o Di ec o s M/IB/6
Ai line company Ibe ia Managemen 20 May 2020 P ess in e iew and ideo Cus ome and Loyal y Di ec o M/IB/7
A ia ion expe ERA (Eu opean Regions
Ai line Associa ion)
Execu i e 21 May 2020 P ess in e iew and ideo AE/1
Ai line company Ibe ia Managemen 8 Dec 2020 P ess in e iew and ideo Line Main enance Di ec o M/IB/8
Ri e a-P ie o e al. 51
P2. In a empo a y ex e nal decline con ex (COVID-
19), an ini ial main enance-o ien ed HRS ollowed by
an e iciency-o ien ed HRS will con ibu e o he com-
pany’s u na ound.
The main enance-o ien ed HRS consis ed o a supple-
men ed empo a y labo educ ion plan, he pos ponemen
o co po a e aining, a sala y supplemen and i s p og es-
si e elimina ion, as well as a hi ing eeze. Howe e , his
HRS canno be implemen ed o an ex ended pe iod
because o i s po en ial impac on employee us and
mo ale. Thus, an e iciency-o ien ed HRS wi h in ensi e
aining ha enhances cu en job- ela ed skills, s imu-
la es sys ems ha a ge indi idual pe o mance and ha
einco po a es he expe ienced wo k o ce, will con ibu e
o he exploi ing o exis ing esou ces and capabili ies.
In e ms o ins i u ional p essu es on HRM, he se e i y
o he si ua ion allowed employees o unde s and he
measu es imposed. All pa ies made a common e o and
accep ed he educ ion o ope a ions, wi h a g ounded lee
and wo kless s a . Ini ially, i was a o ced si ua ion o
e e yone, bu such a o cing s a egy is unsus ainable.
Thus, once an ini ial shock has passed, companies mus
u n owa d os e ing s a egies o a oid de ea o in e -
g oup dis us (Wal on e al., 1994). The e o e, ou hi d
p oposi ion is as ollows:
P3. In a empo a y ex e nal decline con ex (COVID-
19), a o cing s a egy ollowed by a os e ing s a egy
will con ibu e o he company’s u na ound.
Unde his empo a y ex e nal decline (COVID-19
pandemic), he o cing s a egy was manda o y as he e
was no p oduc ion a all. The wo k o ce was he e o e
subjec o a empo a y labo educ ion plan. Ne e heless,
as soon as condi ions sligh ly e ol e, he managemen
and he employees mus os e luid and anspa en com-
munica ion o o e come he si ua ion, acknowledging
demands om bo h sides.
Along his whole u na ound p ocess, he managemen
main ained a posi i e one in communica ions wi h i s
employees and he media. This posi i e one, howe e ,
con as ed wi h he nega i e eelings o employees and
s akeholde s. Such a dicho omy can ep esen a se ious
isk: companies mus pay a en ion o emo ional one de i-
ances, pa icula ly in imes o c isis. To ensu e a success ul
u na ound—especially du ing a empo a y ex e nal
decline ha is abou o disappea —s akeholde s, and
employees in pa icula , mus p ope ly unde s and he
u na ound s a egy aligned wi h he HR s a egy o ace
he COVID-19 si ua ion. In ac , Budhwa and Cumming
(2020) sugges adop ing a mul i-s akeholde c isis-man-
agemen app oach o gene a e sus ainable solu ions o
eco e y om he COVID-19 global heal h c isis. In his
line, we p opose he ollowing:
P4a. In a empo a y ex e nal decline con ex (COVID-
19), managemen needs o pay a en ion o possible
emo ional one managemen de iances wi h espec o
s akeholde s, especially employees— o achie e a suc-
cess ul u na ound.
Rega ding he empo al ocus, Ibe ia p esen s a s ong
ocus on he p esen . Manage s wi h a s ong ocus on he
p esen can ha e an up- o-da e iew o he en i onmen and
p o ide be e in o ma ion ega ding he company’s di e -
en oppo uni ies and isks (Chen & Nadka ni, 2017). This
awa eness o he cu en eme ging en i onmen can acili-
a e he de ec ion o new oppo uni ies and p e en isks. A
g ea e eliance on eal- ime in o ma ion esul s in apid
and di ec eedback on he use o oppo uni ies and acili-
a es he de elopmen o sys ems o add ess di e en isks.
By emphasizing he p esen momen o ind solu ions, man-
age s wi h a s ong ocus on he p esen can use eal- ime
in o ma ion o alida e new oppo uni ies and swi ly a oid
isks, wi h he goal o con inuously adjus ing de elopmen
(Nadka ni & Chen, 2014). Howe e , a empo al ocus bal-
ance mus be eached be ween p esen and u u e ocus.
Thus, manage s wi h a s ong ocus on he u u e will be
able o iden i y new oppo uni ies and o an icipa e u u e
isks (Gibson e al., 2007), demons a ing o s akeholde s
ha he company is p epa ed o deal wi h hem. Manage s
wi h a s ong u u e o ien a ion can be highly awa e o and
an icipa e u u is ic echnologies, po en ial new compe i-
o s, and cus ome needs (Chandy & Tellis, 1998). In ac ,
in dynamic en i onmen s, an icipa ion and p epa edness
wi h espec o u u e con ingencies a e essen ial o he
company’s imely de elopmen (B own & Eisenha d ,
1997). The e o e, ou las p oposi ion is:
P4b. In a empo a y ex e nal decline con ex (COVID-
19), managemen mus pay a en ion o possible de i-
ances in he empo al ocus o he managemen and
s akeholde s—especially employees—and adop bo h a
p esen and u u e ime ocus o achie e a success ul
u na ound.
In he p esen c isis, manage s mus quickly adop d as-
ic decisions. To ensu e a success ul u na ound, i is c u-
cial o implemen mechanisms ha allow unde s anding
employee mo ale and o communica e anspa en ly and
e ec i ely. Communica ion and he es ablishmen o
mechanisms o know employee mo ale, ei he ia mee -
ings wi h unions o mo e luid in e nal dialogue, a e key.
These al e na i es a e o en o e looked in c i ical si ua-
ions. In ac , Budhwa and Cumming (2020) poin ed o
he impo ance o good communica ion and collabo a ion
wi h key in e nal and ex e nal s akeholde s, lea ning om
such communica ion and collabo a ion, in es ing in
employee well-being, and senio managemen esilience
as c i ical elemen s o a eco e y plan o he COVID-19

52 Business Resea ch Qua e ly 28(1)
global heal h pandemic. The main enance-o ien ed HRS—
consis ing o a supplemen ed empo a y labo educ ion
plan, he pos ponemen o co po a e aining, a sala y sup-
plemen as well as i s p og essi e elimina ion and hi ing
eeze—canno be sus ained o long wi hou unde mining
employee mo ale. Indeed, he causes o he c isis a e cycli-
cal o empo a y. In addi ion, manage s mus mo e away
om a command-and-con ol men ali y and suppo as
well as engage employees who a e subjec o bu nou ,
social isola ion, and nega i e emo ions (Malik & Sande s,
2021). These manage s mus de elop beha io s ha po -
ay hem mo e as acili a o s. They mus show empa hy
and posi i e emo ions o deal wi h psychosocial issues in
hese emo ionally dis essing imes. The e o e, i is e y
impo an o c ea e mechanisms ha suppo luid and bi-
di ec ional communica ion on a day- o-day basis.
Conclusion
This wo k p esen ed he case s udy o an ai line and i s
esponses o he ecen COVID-19 pandemic. I examined
he consequen all in passenge demand, he u na ound
s a egies, he human esou ce s a egies and he p ac ices
adop ed by he company o e e se he si ua ion, as well as
ins i u ional p essu es on HRM. The s udy was comple-
men ed wi h an analysis o he emo ional one and empo-
al ocus o he managemen , employees, and s akeholde s
o he esponses adop ed by he o ganiza ion.
The main con ibu ion o his a icle is he desc ip ion
o a sequence o se e al s a egies ( e enchmen and
eco e y s a egies, main enance s. e iciency-o ien ed
s a egies; o cing and os e ing s a egies) ha help o
ensu e he company’s u na ound in a con ex o empo a y
ex e nal decline. A he o ical signals analysis o he emo-
ional one and empo al ocus o manage ial communica-
ions as well as he esponses o di e en s akeholde s
en iched ou esul s. I is ecommended ha manage s and
s akeholde s adop bo h a p esen and u u e ocus o
achie e a success ul u na ound in he p esen con ex o
empo a y ex e nal decline. On his poin , manage s and
execu i es adop ed a posi i e emo ional one ega ding he
managemen and expec a ions o he company du ing he
COVID-19 c isis, while s akeholde s and employees p e-
sen ed a nega i e emo ional one. In ela ion o he empo-
al ocus, Ibe ia’s manage s a e showing a ocus on he
p esen , implying an up- o-da e iew o he en i onmen .
Such a pe spec i e enables hem o u ilize cu en in o ma-
ion o de ec a ious isks and oppo uni ies.
Theo e ical implica ions
A empo a y ex e nal decline (e.g., he COVID-19 pan-
demic) implies ha he u na ound and HRM s a egies
and p ac ices canno be sus ained o e a long pe iod: p ob-
lems and esponses a e empo a y, so hey mus bo h be
e iewed equen ly. The e o e, in a con ex o empo a y
ex e nal decline, he equisi e main enance-o ien ed HRS
also needs o be cyclical. In addi ion, ins i u ional p es-
su es om go e nmen s and s akeholde s (employees,
unions, o o he companies) need o be acknowledged
wi hin he companies o upda e p ocedu es and measu es.
In a si ua ion o empo a y ex e nal decline, communica-
ion plays a c ucial ole in he implemen a ion o measu es
and hei ec i ica ion. Communica ion allows aking he
pulse o how he measu es a e being ecei ed by employ-
ees and s akeholde s and hus, managemen can quickly
eac o en i onmen al changes. This s udy in oduced he
need o acknowledge an eceden s o he decline, u na-
ound s a egies, HR s a egies and p ac ices, ins i u ional
p essu es on HRM and he emo ional one and empo al
ocus o manage ial communica ions and s akeholde
esponses o manage he c isis. A c isis is a d ama ic si ua-
ion, and, as such, many a iables need o be conside ed o
achie e he u na ound.
The e o e, wi h his wo k, we ha e ex ended and
upda ed he co-e olu iona y model o he an eceden s o
decline, u na ound and HR esponses, and labo ela ions
s a egies p oposed by San ana e al. (2019b). In doing so,
we ha e conside ed he dynamic co-e olu ion o se e al
a iables and hei mu ual impac , and how he in e ac ion
be ween he i m and i s en i onmen in luences he iming
and inclusi eness o HR p ac ices (Paauwe & Boselie,
2009). Mo eo e , his s udy ad ances ha managemen
needs o pay a en ion o possible de iances in he emo-
ional one and empo al ocus o managemen , employees
and s akeholde s in si ua ions o c isis. To a ain a success-
ul u na ound, a synch oniza ion o posi i e emo ional
one and empo al ocus leads he company o ow in he
same di ec ion, and his acili a es eco e y.
P ac ical implica ions
The ai line’s esponse o he cu en COVID-19 c isis ol-
lowed he c i e ia de ined by San ana e al., (2017) o
empo a y ex e nal decline c ises. In his sense, e ench-
men s a egies ha e been adop ed o add ess he c i ical
si ua ion and cu cos s, while eco e y s a egies we e ak-
ing place, such as he s eng hening o he Mad id hub o
he acquisi ion o Ai Eu opa. In line wi h his u na ound
s a egy, a main enance-o ien ed HRS has been adop ed.
I is essen ial o analyze he p oblem an eceden s, as hey
quickly e ol e, and managemen needs o acknowledge
he la es an eceden s o implemen new measu es.
Manage s mus conside ha HR s a egies and p ac ices
e ol e especially in imes o c isis, and hey need o
upda e HR s a egies and p ac ices o he new an eceden s
o he decline. Gi en he dizzying speed wi h which deci-
sions, which la gely a ec employees, mus be made,
communica ion is c ucial. Communica ion and he imple-
men a ion o mechanisms o unde s and employee mo ale,
Ri e a-P ie o e al. 53
ei he ia mee ings wi h unions o mo e luid in e nal
dialogues, a e key o manage he c isis. The COVID-19
pandemic is a empo a y o cyclical ex e nal issue ha
di ec ly impac s o he company p oblems, such as he
all in passenge demand. Howe e , since he p oblem is
empo a y, mo e es ic i e HR measu es, such as he
empo a y labo educ ion plan o a hi ing eeze, a e no
sus ainable o e a long pe iod, and his mus be p ope ly
acknowledged by managemen . Fo ha eason, i is
essen ial o c ea e luid communica ion mechanisms
be ween managemen , employees, and s akeholde s o
a ain a success ul u na ound. Manage s should no
o e look he nega i e emo ional one o employees and
on he con a y, ask hemsel es wha hey can do o
add ess his nega i e app oach.
Fu u e esea ch
A u u e line o esea ch is he obse a ion o he impac o
his empo a y ex e nal decline gene a ed by he COVID-
19 Global Heal h Pandemic on o he indus ies. Ano he
line o s udy is he analysis o how di e en ai lines ha e
eac ed om an HR s andpoin o his COVID-19 pan-
demic. In addi ion, u he esea ch should ocus on how
e ec i ely communica ion ools can manage he nega i e
emo ional one o employees and o he s akeholde s in c i-
sis si ua ions. Mo eo e , acco ding o A ogyaswamy
e al.’s (1995) seminal esea ch, he COVID-19 c isis is a
empo a y ex e nal decline, bu he e a e o he ypes o c i-
ses depending on he cause o he decline and he i m’s
compe i i e posi ion. Examples include long- e m indus-
y-con ac ion o i m-based decline. Thus, u u e esea ch
lines could app oach HRM p ac ices and ins i u ional p es-
su es in hese kinds o c ises.
Limi a ions
The s udy p esen ed a numbe o limi a ions. A la ge
numbe o di ec in e iews wi h company managemen
would ha e been desi able as well as a b oade mul ile el
pe spec i e. The easons o hese limi a ions, howe e ,
a e unde s andable: he COVID-19 c isis has had a d a-
ma ic impac a all company le els and many ai lines a e
s ill in shock, s i ing o na iga e he allou om his
global heal h c isis. In addi ion, he wide ange o a chi-
al da a a ailable, such as company s a emen s, inancial
epo s, news epo s, specialized websi es, and ideos
o execu i e in e iews, made i easy o access he in o -
ma ion needed o conduc his s udy. As a esul , we
ob ained a chi al da a om mul iple sou ces, combining
p ima y and seconda y da a wi h in e nal and ex e nal
company in o ma ion. In addi ion, he o ical signal anal-
ysis complemen ed his quali a i e s udy, p o iding ich
insigh s in o he an eceden s (o causes) o decline, u na-
ound esponses, HRM in imes o c isis and ins i u ional
p essu es on HRM, manage ial communica ion and
s akeholde esponses in imes o c isis.
Decla a ion o con lic ing in e es s
The au ho (s) decla ed no po en ial con lic s o in e es wi h
espec o he esea ch, au ho ship, and/o publica ion o his
a icle.
Funding
The au ho (s) disclosed eceip o he ollowing inancial sup-
po o he esea ch, au ho ship, and/o publica ion o his a i-
cle: Financial suppo o his esea ch was p o ided by P oyec o
PID2020-112599GB-I00 unded by MCI/AEI/10.13039/5011
00011033
ORCID iDs
Monica San ana h ps://o cid.o g/0000-0003-1761-3180
Ál a o López-Cab ales h ps://o cid.o g/0000-0001-6735-0425
Supplemen al ma e ial
Supplemen al ma e ial o his a icle is a ailable online.
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