Southwest Airlines

833 Words Mar 10th, 2011 4 Pages
Southwest Airlines - Effective employee relations program/ Career development
Southwest Airlines Southwest is a major player in the airline industry, which employs nearly 35,000 individuals. According to an article, (Hollis, 2003), Southwest Airlines has taken a different approach to building interactively relationships with the company, with employees, and with its customers to ensure the success of the business. As a result, Southwest has sustained an enhanced growth and profitability when most airlines struggle to avoid bankruptcy. Fritz Petree, Senior Manager Career Development Services, states, “Southwest philosophy is to hire for attitude and train for skill” (Hollis, 2003, p. 2). Southwest has successfully launched Virtual
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What was his rationale for doing so? As stated by Steve Thomas, CEO of Pathlore Software Corp, “They’ve got a very happy employee staff, and there’s a great ability to move around and grow within the company, and they do this deliberately. They’re still profitable, and a lot of it has to do with their culture, and a lot of culture is driven not only by making sure that the employees are happy, but by making sure that they have the skills to do their jobs the best they can” (Hollis, 2003, p2.). Direct Energy - Compensation as it relates to the organizational strategy Direct Energy is a multi-national company with “$6 billion in annual revenue and 5,200 employees” (Hansen, 2007, p. 2). Riordan Manufacturing is also a multi-national company with 550 employees and generates revenues in excess of $1 billion (Apollo Group, 2007). Direct Energy is located in the United States and in Canada. Riordan is located in the United States and China. Both of these companies were faced with the challenge of developing compensation plans that relate to their organizational strategy.
Direct Energy developed their philosophy of rewarding employees for high performance and to achieve corporate goals through the compensation program. The board of directors who designed a pay program where approval and adjustment are managed through their global compensation system accomplishes this. Direct Energy’s parent company is

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