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
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and Freiberg Nuts! Southwest Airline's Crazy Recipe for Business and Personal
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Edgar H., S. (2010).
Organizational culture and leadership. Depth, 4, 17. Retrieved
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Jody Hoffer, G.
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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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