Among many organizations there are few that seem to have what it takes to be deemed as a proper company. The organization to be discussed in this paper is Southwest Airlines, one that values customer satisfaction in a changing environment and manages its organizational culture so well that it is recognized as one of the best airlines in the world. Through analysis of Southwest Airlines, the goal of this paper is to address what makes this airline so different from its competitors in multiple key areas including its culture and environment, the mission and values it holds, the work setting employees have and how they are recognized, and the management of work and life all while being creative daily to ensure Southwest is the preferred airline among others. Southwest Airlines has a culture unlike any other airline there is. They focus on being warm, lovable, inviting, sociable, and making each and every flight a true experience. Colleen Barrett, President Emeritus for Southwest Airlines, could not have phrased it any better when she said “our corporate culture is, I think, the number one reason behind our success…we are in the customer service business. We happen to provide airline transportation” UT McCombs School of Business (2011, April 25) A Loving Culture: Access McCombs with Southwest Airlines. [Video file] Retrieved from https://www.youtube.com/watch?v=4wIWKh-VlFU. When I watched the rest of the video of Colleen and Herb, I couldn’t help but think if Southwest’s
Southwest has an organizational culture that emphasizes "LUV" and "FUN" which is aligned to the airlines business strategy creating an additional advantage. "LUV" refers to the company's core values of respect for individuality and genuine concern for others. "FUN" refers to the company's belief in employees enjoying themselves at work and creating an atmosphere, which allows customers to have fun. The word "Customer" is consistently capitalized in the company's corporate communications and practiced in its customer service performance.
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.
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 had an edge over its competitors because of its people and their people management. The culture practiced at Southwest ensured progress towards their primary goal of customer service and low cost. The HR programs at Southwest were based on the preserving the values and special culture of Southwest Airlines (SWA).
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
Organizations like the Southwest Airlines all have a culture, which demonstrates how the organization works and usually acts as its motivational tool. An organizational culture is important to the organization, as it is the major element in helping attain the organization's goals and objectives. Cultures in organizations are vast, with different organizations adopting their own type of culture. The examples of culture include; club cultures, where employees of the organization are assisted to fit into the culture. This is the most common type adopted by most organizations. There is also the academy culture, where the organization keeps its most skilled employees. The skills are developed by the company and an example of the organization that mostly uses this culture is the large corporations like the Southwest Airlines. The base team culture is designed to maintain high skilled employees, as these employees have great skills and can work for many other organizations. Other organizations have cultures that are highly discouraged, like the fortress culture, where employees hardly know their fate, and can be laid off any time. These organizations often undergo changes through reorganization, and only the specialized skilled people have chances for positions in the organization. Despite these many types of the cultures, management should ensure culture that is reputable, and
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 is often a modeled by other companies for its organizational structure. Organizations that have an effective management team are successful in developing a strong organizational culture, utilizing managerial controls, and leveraging diversity. Effective management teams are developed by cultivating leadership skills in those that supervise the company’s associates. Organizations want managers that can motivate their associates to achieve the goals and vision of the company. Managers that are able to utilize the leadership principles to engage their associates to share the success of the company are considered effective. Leaders are able to develop a strong vision and communicate that
Southwest Airlines, a major airline company in the United States says there’s something they value more than its customers and that something, is their employees. Organizational structure is referred to the system of shared ideas, values, and beliefs which basically controls how employees behave in organizations. These shared ideas and values have a strong influence on the organization and its employees in the means of how they dress, act or even how they perform their jobs. Southwest Airlines is known for their organizational culture and this is also considered one of the key factors contributing to their success. However, it is very unusual to hear that a company will put their employee happiness above their customer satisfaction. Southwest Airlines lists the employees first, customers second and shareholders third. If the company treats the employees right, the employees will treat their customers right and this all results in increased profits which will make everyone happy including the shareholders. Southwest has created a culture that is fun, full of values and ideas which is to help employees to enjoy what they do and take pride in their jobs. The airline as well teaches and encourages the employees to put others first and show great customer
In this segment of the paper I will analyze the organizational culture of the Southwest Airlines