Performance Management and Southwest Airlines
I. Discuss the ways in which organizations can manage the performance of their workforce in order to meet their goals. You should refer in your analysis to the role of leadership, organizational culture and human resource management practices.
Leadership.
The role of senior staff or leadership plays a critical function to deliver effective performance management in an organization. The line managers are responsible to manage the performance of their employees, where both parties are agreed to actively and continuously monitor the employee’s performance development plan. Line managers manage performance throughout they year by monitoring achievements.To achieve this, senior staff should
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HR also run training events and conduct surveys to evaluate the effectiveness of performance management.
On the basis of your preceding analysis review the ways in which Southwest Airlines manages the performance of its workforce.
Southwest Airlines’ mission is “dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride and Company Spirit”, thus Southwest proclaims “We are a company of people, not planes. That is what distinguishes us from other airlines and other companies.” Southwest Airlines are successful not because of its strategy but because Southwest focuses and relies heavily on its internal and external business environment, thus the tactics is to focus first on the employee and customers come second. There are stages in which Southwest manages the performance of the effective management of its workforce through the role of leadership, organizational culture and human resource management
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.
The target demographic for Southwest is very broad. The fact the airline has a brand that appeals to price-conscious travelers who do not mind the airline’s no-frills philosophy means it attracts lots of small business owners, young adults, middle-class families, and those who are traveling a short distance. Southwest operates a simplified airline to keep costs down. It only operates one type of aircraft, and its no-frills plan includes no assigned seats or class seating, no meals, and no onboard movies. The company has a strong emphasis on customer service and a differentiation strategy to keep customers happy and loyal. When hiring for customer service positions within the organization, Southwest focuses on attitudes rather than skills and encourages peer hiring. This strategy helps the company identify those who fit the organizational culture and who are most likely to further the company’s philosophy of
The human resources practices have created shareholder value by means of low turnover, high productivity and excellent job satisfaction level. Southwest has designed cross function work coordination whereby once the airline reaches a destination, every member of the flight and ground crew does everything necessary to get the next flight out on time. Remarkably the airline achieved a turnaround rate of 70% of their flights had an average fifteen minutes ground time in 1991. This lessens labour costs, significant productivity advantage in terms of equipment utilization, avoidance of long delays and makes flying with Southwest attractive to the travelers.
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 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.
An effective performance management procedure enables line managers to evaluate and measure individual performance and therefore optimize productivity by aligning their goals with business objectives. Many of the practices that support performance improvement also impact positively on job satisfaction, retention and loyalty of our employees.
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).
As the low-cost leader, Southwest spends an inordinate amount of time focusing on its mission, vision, culture, and goals. This concentration allows Southwest to rank as one of the 100 Best Companies to work for in America. The employee’s attitudes and efforts lead to fewer customer complaints and more on-time arrivals and departures.
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
During the rapid globalization, being one of the topmost and sustainable airlines is not easy due to the highly competitive airlines industry. Southwest Airlines, founded by Rolling King, Herbert Kelleher, and Lamar Muse in 1967, is considered a very long history of success following its goal that emphasizes on customers’ satisfaction. The key of organizational success relies on human value of Southwest CEO, managers, and employees who try to help each other in order to reach the customers’ best service because these people are the major factors to justify their own images that represent their organization. Furthermore, Southwest has motivated its employees to be more creative and improvable by allowing suitable norms and
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
The management style of Southwest airline is characterized by how greatly it takes care of its employees’ well-being. The management considers it as a mean to achieve higher customer satisfaction: “Keep employees happy, then they will keep customers happy”.