Running head: SOUTHWEST AIRLINES FACTORS OF MANAGEMENT
Southwest Airlines Factors of Management
Andrew Carr
Charlie Minni
University of Phoenix
External / Internal Factors Paper on Southwest Airlines
In today’s employment world, having effective management skills are critical in a companies desire to breed success. Within the airline industry, competition and competitive practices would be a severe understatement. This paper will examine Southwest Airlines core management team by indicating the possible internal and external factors that impact the four functions of any successful management team, ((planning, organizing, leading, and controlling). The second part of this paper will identify how Globalization and Diversity
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Southwest Airlines innovative idea is putting customer service second and putting the Airline’s employees first. The brain behind this innovative dare was Southwest’s iconoclastic founder Herb Kelleh. Southwest Airline President, Colleen Barrett, continued with Kelleh’s innovation and added her own “deliberate management strategy; the creation of a bottom-up culture which always begin at the top, which she learned from a previous employer (Berkun, 2007). Barrett’s and Kelleh’s theory is that if an employer can effectively make employees feel good about what they’re doing on a daily basis, satisfied employees will deliver the same sense of friendliness and care to the customers (Berkun,2007). A culture of innovation takes many forms beyond just creating new gadgets. Southwest Airlines approach to innovation and creativity makes for better customer service. Putting employees first let’s the company’s employees live and think the way they want to. This innovative awareness let the employees deal with problems in a way that makes sense to them and the context of the situation. It gives them the freedom, the encouragement, and the environment to be themselves. The freedom to be themselves is reflected in the employees’ attitudes towards the customer (Berkun, 2007). Another great quote from Southwest’s President, Colleen Barrett as stated to Scott Berkun- “I don’t understand why an employee
People – One of the many things good about Southwest Airlines is that the kinds of people who are heroes of the organization are people who care and go out of their way to help the customers. They’re the ones who are celebrated and held up as shining examples. Additionally, high levels of satisfaction among employees can be attributed to Southwest employee policy. Happy employees can provide high quality service and bring more customers back. To reinforce the culture of hard work, high-energy, fun, local autonomy, and creativity, the company provided continuous education program to employees. If you can help someone out or brighten someone’s day, be it a co-worker or a passenger, you’re doing your job well.
We are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. Above all,
Southwest Airlines (SWA) maintained a low-cost, low-price and no frills strategy. The small Texas carrier began as a concept, its business plan detailed on a cocktail napkin in 1971 and grew into the nation’s fourth largest airline. Known as an innovator with low operating costs, dominating smaller airports, with a humorous customer service, SWA saw its 40th profitable year in 2013. Like all companies, SWA underwent leadership changes in 2001, and said goodbye to the company’s founder in 2008. Unfortunately, the changes in leadership were not the only changes; the organization proceeded to alter their beliefs and activities.
Southwest Airlines is dedicated to incorporating all servant leadership principles throughout their organization. Accordingly, their mission statement is clear and concise it evidently exemplifies all principles and acknowledges a servant-led organization. Their mission statement embraces their commitment to serve the highest quality of customer service through a sense of warmth, friendliness, individual pride, and company spirit (Southwest, 2014). Therefore, through Southwest’s’ mission statement it makes it explicitly apparent that they seek to listen and commit to the growth of their people. Southwest empathizes with their employees because they are dedicated to providing
At Southwest Airlines, the company’s business strategy has a positive effect on the training they provide to their employees. Southwest Airlines is a Texas based airline that started up in 1971 (Corporate Fact Sheet). Over the years the airline has been recognized for its outstanding customer service and its low airfare fees. Due to their excellent customer service, the company has been ranked number one in customer satisfaction in 2013 by the U.S Department of Transportation. In. 2015, Southwest airlines was recognized as one of the Best Places to Work in the Glassdoor Employees’ Choice Award. The reason that Southwest airlines is recognized for all these great things is because they obtain a good organizational control over the airline.
Southwest looks for candidates with creative minds to fit in their corporate strategy of customer service
“Your employees come first, and if you treat your employee’s right, guess what? Your customers come back, and that makes your shareholders happy. Start with employees and the rest follows from that” (Byrne, 2012). This quote from Herb Kelleher, co-founder of Southwest Airlines, embodies the leadership at the airline. Southwest is the leading low-cost airline based in Dallas, Texas and founded in 1967 by Herb Kelleher and Rollin King. They dare to differ from other carriers because their philosophy revolves around people both internal and external. Communication, culture, and leadership are the cornerstone of their success. This paper explores key leader’s communique tactics, the role communication plays in daily operations, how the mission, vision, and culture reinforce the goals, and the prominence of connecting with internal and external stakeholders. A clearer understanding the role of communication and culture at Southwest are beneficial in developing best practices for any organization.
Southwest Airlines' strong organizational culture is reflected in its mission statement "dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit" (Southwest, 2012). Southwest serves not only as a prime example of a company that excels in customer service and profitability, but as one that has utilized employee development as a means to meet these ends. Southwest makes a strong commitment to foster ongoing relationships with human resources. They demand that their employees are responsible members, however
Herb Kelleher care for his people in Southwest as family and look forward to his employees act the same way as him: treat each other and their customers as family also. And the new leaders have participated with Herb continually building their vision and unique culture (D'Aurizio, 2008). According to James Parker, who is the former CEO of Southwest Airlines, said that the top management should put high intention to build a strong corporate cultures prioring to others and goading the capability of employees to make profits (Holstein, 2008). Thus, Southwest Airlines is well known for its positive culture and emphasis on its employees. The former officer of Southwest Airlines, Dave Ridley, described the corporate culture in Southwest Airlines can’t not departed with people. They embrace people-oriented and treat people mannerly, resulted the positive way which frontline people treating their external customers. Ridley said, the employees have been considered as internal customers also, and employees’ welfare has been treated fairly or even more important than the external customers. He also indicated that they aimed to construct a happy working environment which can make their employees adore the workmates, the workplace, and the people they serve(Peel, 2015). The culture
HR Policies and Leadership: The advanced employee training techniques and employee engagement is an important element of Southwest’s success so far. The exceptional customer service which differentiates SW from their competitors is attributed to their strong employee base. Herb Kelleher, a transformational leader, led the organization by maintaining a fun-filled culture. By creating a friendly working environment in the organization, CEO of southwest airlines was able to retain the employees in the organization. Employees were not only extrinsically motivated to be in the company but intrinsically motivated to be a part of the Southwest Airlines family. It was demonstrated from the fact that when there was a downturn, managers froze their salary for 5 years just to maintain
When Herb Kelleher and Rollin King founded Southwest Airlines in 1971, their mission stated the “dedication of the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit” (Smith, 2012). With that mission in mind, Herb Keller and Rollin King managed to make Southwest the only profitable airline in the United States (Smith, 2012). Southwest’s mission is not the only reason why the airline continues to grow. Without the way, Herb Kelleher former CEO of Southwest, had developed a particular leadership style, power base, and a set way the organization motivates its’ work force, the company would not be as successful as it is
Southwest Airlines is one of the most successful airlines in the United States. There has never been layoffs or strikes in the history of the company, although there were several times when layoffs could have been justified, including the months following the September 11, 2001 terrorist attacks. However, Southwest's Mission statement says “Above all, Employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest Customer.” (Southwest, 1988). The Airline has always believed that their corporate culture is one of the keys to their success. The culture recognizes that employees have emotional intelligence and that their
Management highly believes that treating their employees well and making them loved their job will naturally lead them to treat customers warmly and courteously in return. In this regard, Southwest looks for fun loving and spirited people whose natural warmth and compassion contributes to superior customer service. This is the reason why Southwest particularly takes the pledge of hiring employees for “attitude” prior to “skills” as corroborates this quote from the former C.E.O Kelleher “At Southwest, our People are our greatest assets, which is why we devote so much time and energy to
Southwest Airlines managers live the vision of the company by incorporating the vision into their everyday lives. Community, environment and caring are the
Southwest Airlines was created in the late 1960’s by a businessperson Rolling King, and law school graduate Herb Kelleher, who sought a faster travel time between Houston, Dallas, and San Antonio, Texas (Dess, et al., 2014, p. C137). After overcoming all of the antagonism and legal problems of many major airlines, Southwest was able to take its first flight in 1971 (Dess, et al., 2014, p.C137). With a dedication and will power to grow the company, King and Kelleher sought out ways to increase growth.