Sunday, August 12, 2012


  Author:M. Azim Ulfati

Introduction


In this paper I have researched in to Southwest Airline, I have focused to write a three to four (3-4) page paper in which I will, determine how Southwest Airlines’ corporate culture differs from other airlines. I will then analyze three (3) ways that Southwest’s unique culture has benefited the airline and its employees and eventually I will speculate how Southwest Airlines would continue to thrive as a company if its current corporate culture would need to change in the near future.
The specific course learning outcomes associated with this assignment paper are as follows. Examine the private enterprise systems, drivers of change on the system, ethic and social responsibilities of business, and the requirements for success in today’s business environment.
Analyze business plans based on an analysis of domestic and global operating environments, market dynamics, and electronic and internal capabilities.
The paper will close out with a conclusion that restates the main focus of the paper.

Determine how Southwest Airlines’ corporate culture differs from other airlines


              Let’s first talk about corporate culture and then will discuss how southwest Airline’s corporate culture differs from other airlines.
Corporate Culture is a phenomenon that you cannot see it, smell it, taste it, or hear it, but it is there. It pervades all aspects of organizational life and has a profound impact on organizational success and failure. If managed in the right way, it is a real economic and strategic asset. If managed incorrectly or allowed to deteriorate, it can become a true liability or strategic disadvantage. (Eric & Yvinne, 2011). In other word we can say that culture is the deepest, often unconscious part of a group and is therefore less tangible and less visible. (Edgar H., 2010)
          Southwest Airline is a unique company for its corporate culture with great performances and incredible efficiency, quality, reasonable fares, cheerful service, great schedule controlled growth, genuine interest for its customers, organizational competency for building and sustaining relationships for the purpose of shared goals, shard knowledge and mutual respect, high levels of coordination, the extraordinary leadership and more importantly corporate culture of love, friendship laid back family atmosphere, humor, mutual respect and reputation. The Southwest airline is one of the most distinctive company in the region in many ways like intense focus on the quality of its relationships, customer service, and its willingness to forego quick solutions to invest long term commitments in keeping relations among employees, managers and business partners.
            It has the high reputation for its high customer satisfaction airline for instance the Southwest airline ticket was cheaper than any other airline. Compare to the Southwest and United, the Southwest’s net income was 4.8 ($B) in 2004 and the United’s was -10.5 ($B) IN 2004. Because the Southwest’s low price of ticket can attract the customer to buy their ticket and they had lowest operating-cost which support and control their low ticket. ("Southwest case study," 2008)
         The corporate culture calls for employees to make every one’s responsibility and own it. The company has established two cultural committees to make sure the focus and concentration is kept on the culture. (" southwest airlines," )
           If an employee does not have the cultural values, he or she will not be promoted to higher positions. There is a performance appraisal every year for the employee and the employee’s performance is evaluated based on the corporate cultural expectations.
        Southwest airline has the highest percentage of unionized employees of any airline in the United States of America, and it prides itself on outstanding relationships with its unions, including traditional unions such as the International brotherhood of teamster, the international Association of machinists and the transport workers union. (Jody Hoffer, 2005)
            There is one concern about the integrity of employees. If an employee has a bad day and if he or she makes a mistake then he/ she is punished for her/his mistake. She/he is not given promotion.
        Southwest Airlines treats its employee’s right, and the employees reward the company with loyalty. The profit sharing plan was the first in the airline industry in 1973.According to Southwest Airlines; their current employee retention rate is 92.3%. During the times of September 11, 2001, more than 32,000 employees gave back some of their pay. They did this to help the company through a temporary difficult time. The competitive advantage that Southwest has over competitors is the benefits, which include free flights. During a time when the economy is in a recession, many people cannot afford travel by airplane. The employees can reap this benefit from day one of their employment (" southwest airlines," )

Analyze three (3) ways that Southwest’s unique culture has benefited the airline and its employees

Leadership, culture, strategy and coordination are the factors of success in Southwest Airline not only that but also there are three following ways that Southwest Airline culture has benefited the airline and its employees.
1-     Self-actualizing culture, which not only values creativity, task accomplishment but also individual growth and satisfaction. These types of culture let the employees to improve, enjoy the environment of work, develop them selves and bring positive changes in new activities.
2-     Humanistic- encouraging culture
The employees play and manage every thing as if, he/she is the center of gravity. On the other hand I can say that in this culture they manage in a participative and employee centered way. The company expects all its employees to be supportive, helpful, listen and value the comments, opinions and suggestions of other employees.

3-     Affiliate and satisfaction culture and effective empowerment
In this culture Southwest Airline gives higher priority to constructive interpersonal relationships, and the personal satisfactions of employees. The company always expects its employees to be committed to their job, be friendly and open in sharing information, ideas, feelings, suggestions and questions and take responsibility for the success of their business to survive and prosper.
I believe that leadership at Southwest Airline plays a very important role in the success of the company. Organizational leadership makes unique culture for Southwest Airline business, like environment of shared goals, shared knowledge and mutual respect, without these types of environment the high performance relationships of Southwest Airline business may not have the same impact.
Herb Kelleher the Chief Executive Officer of Southwest Airline is a person off the- wall CEO who has built outstanding organization and has been very successful among many companies in the market. Herb Kelleher’s leadership is not like any other company leaders but it is contrary. He does not rule over his company’s staffs but rather rules with all of his staffs. He believes that every employee must have leadership in their spirit, they need to use their abilities to lead, see things, experiment them and make decisions. He leads the employee the way to believe that they can be leaders too. Leadership is a force, which motivates employees in a company in order to use their leadership qualities for improvement of a company.
Here are a few secrets Kelly shared about creating a winning corporate culture:
1.     Make culture everyone’s responsibility, asks everyone to own it.
2.     Create a culture committee. Southwest has two. Both Local Culture Committees and a Corporate Culture Committee are responsible for keeping the focus on culture.
3.     Make the key components of your culture a part of your leadership expectations. In other words, don’t promote people who don’t reflect the company culture. (Dan Oswald, 2009)
              In Southwest Airline leadership is embedded in every employee based on mutual influence through integrity, truthful. And also the culture of integrity and facilitating mutual leadership is embedded in every employee of Southwest Airline. The second one is focusing of employees on things that can control. Many Southwest Airline employees can solve problems quickly. It is because they can directly focus and control on issues. The third one is caring for each other within the company for facilitating influence.
 Not every one cares how much you know but how much you care. And the last one is listening to every one’s leadership facilitating ideas in the company. Once one person feels that other colleague hears his/her words then they will be more willing to lead. Mutual leadership creates a strong bond among individuals striving to attain the same goals.

Speculate how Southwest Airlines would continue to thrive as a company if its current corporate culture would need to change in the near future

             I think today if the company struggles more and more every day, the employees help create and keep loyalty and love alive and well, make sure the customer are all happy, loyal and have a good time, make sure the service production is up, the quality of food is great, airplane gets loaded and unloaded in the air fast and on time and the customer be happy, satisfied and dedicated.
            If the Southwest company will encourage the employees to have fun on the job and have a great relations atmosphere, help them develop their potential and keep them to be energetic and let them to lead, treat them right in all aspects of work, in turn they will help and treat the customer right and the Southwest Airline will find more and more demands in the market and as the number of employees have multiplied from 195 to 23,000, it will be tripled in the next few years provided that Southwest Airline will maintain its low cost advantages in the airline industry and second to maintain its growth through current operational strategy and bring change.
           A strong culture, like Southwest’s can and does outstrip their competitors, if it continues like this. The people are the ones who plays vital role and make a big difference.  (Eun, Fred, Genita, Keith & Sonya)

Conclusion

The unique employee leadership, corporate culture, people management philosophy and coordination at Southwest Airline is an outstanding strategy that not only differs the company from other Airlines but also it makes the company the most successful one amongst its competitors.
This strategy makes the company to afford an opportunity to reward, encourage and eventually motivate employee and also maintain their loyalty.
This unique corporate culture along with management and leadership strategy attracts the customers and retains them for long-term relations and commitments to be the customers of Southwest Airline.
This great strategy may maintain low cost advantages in Southwest Airline and will maintain its growth through operational strategy for a change and success.

References

Eric, F., & Yvinne, R. (2011). Corporate culture: The ultimate strategic asset. Conclusion: Corporate Culture, a True Strategic Asset, Retrieved from http://books.google.com/books?id=PBh45Euvp9UC&pg=PA230&lpg=PA230&dq=Freiberg and Freiberg Nuts! Southwest Airline's Crazy Recipe for Business and Personal Success. 1996&source=bl&ots=RI2zVmzA9S&sig=r8Bb2bAheCWHQbTG3VXviHTc73k&hl=en&sa=X&ei=gLMSUNLaOJOs8QT16YHIDw&ved=0CHIQ6AEwCQ
Edgar H., S. (2010). Organizational culture and leadership. Depth, 4, 17. Retrieved from http://books.google.com/books?id=cFOhqWMB3XoC&pg=PA41&lpg=PA41&dq=Schein, E. H. Organizational Culture and Leadership.&source=bl&ots=kY2haeaqbY&sig=BwcRIeZBplpaNu5yRavVHDMOUjQ&hl=en&sa=X&ei=i7oSUKP1Io2E8ATwzIH4DA&ved=0CDgQ6AEwAA
(2008). Southwest case study. Southwest Airline Corporation, Retrieved from http://www.oppapers.com/essays/Southwest-Case-Study/181666
(n.d.). southwest airlines. Company Culture, Retrieved from http://www.scribd.com/doc/85276179/72271480-Southwest-Airlines
Jody Hoffer, G. (2005). The southwest airline ways. Success factors-leadership, culture, strategy & coordination, Retrieved from http://books.google.com/books?id=BapojOGVz5cC&printsec=frontcover&dq=Corporate Culture Done Right: Southwest Airlines&source=bl&ots=WuLqvQPwmI&sig=qt-Zbnh7AIq5xjtupXYmcWSYXZ8&hl=en&sa=X&ei=eWMRUJOXF5Go8gSj1oCIBw&ved=0CD8Q6AEwAQ
Dan Oswald, O. (2009). Corporate Culture Done Right: Southwest Airlines, Retrieved from http://blogs.hrhero.com/oswaldletters/2009/11/29/corporate-culture-done-right-southwest-airlines/
Eun, K., Fred, L., Genita, M., Keith, N., & Sonya, O. (n.d.). Southwest airlines 25 years of luv. Retrieved from http://cobweb2.louisville.edu/faculty/regbruce/bruce//cases/swa2/swa2.htm

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