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providing a more professional service. Instead, southwest everyone always treat employees properly with their hearts, and they do it not because the company requires them to, but because they want to. This is part of the spirit of the Southwest.
Southwest Airlines flight attendant always allow passengers to enjoy their journey says some jokes and interesting stories, which make many customers enjoy their journey, though lacking in other forms of entertainment. In flight longer distances, as is the case in the 5 to 6 hour flight, the flight attendants have a very difficult to maintain the enthusiasm of time. In such a case, the southwest has to upgrade its facilities, or hire more flight attendants so that one can take a break while the other served. Obviously, in this case, to hire more flight attendants would be meaningless because they just take up space for passengers. Ultimately, it means that Southwest Airlines would be to raise the level of its aircraft to include entertainment on board, and therefore, the passengers southwest in the future, should bear the burden of these costs.
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First, communication has become difficult and change is evident in the culture of the Southwest, as described by management "becomes a new creature." Second, it witnessed southwest increased costs and competition in the airline industry. Related to these two problems, who presented briefly in section 2, the following section is trying to make a couple of academic articles that will be the framework for this paper. How can the company by adapting Goolsby leadership model, can foster a healthy and better organization creates a culture of employees work in a good environment and satiable, O2- how a company can use public Porter strategies to reduce costs, and maintain the edge of
Unlike most corporations, Southwest has an inverted pyramid structure with employees at the top, a higher priority than any other stakeholder. Customers come second, as Southwest President Colleen Barrett describes it: "If we treat them [employees] right, and give them proactive customer service, they...will in turn assure that our second most important group, [the passengers]...receive the same proactive customer service." (Barrett, Colleen. Interview. Knowledge @ Wharton. Wharton School of Management: 8 Jul 2008. Podcast). Barrett and her colleagues are demonstrating conceptualization, or the ability to distinguish what are their top short and long term goals. They hope to create a continuous wheel of service where employees at the top ensure that passengers below them are always satisfied. To complete the organization pyramid, management is at the bottom. This further embodies the spirit of servant leadership, where the focus is on increased services to others rather then to
“Our people are our single greatest strength and most enduring long-term competitive advantage,” reports CEO Gary Kelly on the Southwest Airline website (https://www.southwest.com/html/about-southwest). The company works hard to hire great individuals and then rewards and supports them to make satisfied, productive employees (Ross & Beath, 2007). In fact, Southwest Airlines has received repeated recognition as a great place to work (“Southwest Corporate Fact Sheet,” n.d.). As a result, Southwest Airlines is able to provide a low-cost, fun-cultured experience with excellent customer service (Ross & Beath, 2007). This has allowed the company to build its final strength in this evaluation: a strong brand
Southwest Airlines is also well-known for having a very productive and loyal workforce. Such loyalty and productivity among the employees were brought by the way Southwest’s management treats them. As they say, the employees are willing to work hard for the company because they feel appreciated by the top management. Southwest maintains good employee relations because what they believe in is that if employees are happy, satisfied, dedicated, and energetic, they'll take real good care of the customers.
Since 1987, when the Department of Transportation began tracking Customer Satisfaction statistics, Southwest has consistently led the entire airline industry with the lowest ratio of complaints per passengers boarded. Many airlines have tried to copy Southwest’s business model, and the Culture of Southwest is admired and emulated by corporations and organizations in all walks of life. Always the innovator, Southwest pioneered Senior Fares, a same-day air freight delivery service, and Ticketless Travel. Southwest led the way with the first airline web page—southwest.com, DING, the first-ever direct link to Customer’s computer desktops that delivers live updates on the hottest deals, and the first airline corporate blog, Nuts About Southwest. Our Share the Spirit community programs make Southwest the hometown airline of every city we serve.
The marketing approach of Southwest Airlines is built upon their strong business model. They have successfully managed to target two specific market segments of the airline industry while remaining profitable. Their strategy is simple, to offer frequent non-stop flights with the lowest costs which appeal to both the business and budget travelers. By segmenting their target audience to specific demographics and ticket pricing, passengers know exactly what they are getting for the price they pay.
Southwest's philosophy of "Service for Smiles and Profits" encourages employees to treat customer service as the most important aspect of their job. It appears that when employees strive for this high level of service, the rest takes care of itself and success is inevitable (Amanor-Boadu, 2007). Southwest Airline's management structure is designed to carefully direct the activities of employees while still maintaining the spirit of "fun" that is the cornerstone of the airlines' customer service success (Lancaster, 1999). The fundamental concept of management at Southwest is the notion of a "loose-tight" design. Within the context of tight rules of conduct, employees are encouraged to take a wide degree of leeway. For example, the company encourages employees to make their own customer service decisions. Employees are encouraged to try new things, knowing that they will not be punished for innovation as long as they do not violate safety standards, endanger crew or passengers, or keep a plane from taking off or landing on time; this allowed not only to increase the speed of service but it allowed to increase the quality of it too.
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 attitudes and morale are key to the teamwork and creative environment.
Southwest Airlines strategy of focusing on short haul passenger and providing rates as low as one third of their competitors, they have seen tremendous growth in the last decade. Market share for top city pairs on Southwest's schedule has reached 80% to 85%. Maintaining the largest fleet of 737's in the world and utilizing point-to-point versus the hub-and-spoke method of connection philosophy allowed Southwest to provide their service to more people at a lower cost. By putting the employee first, Southwest has found the key to success in the airline business. A happy worker is a more productive one as well as a better service provider. Southwest will continue to reserve their growth in the future by entering select markets only after careful market research.
The mission of Southwest Airlines is a dedication to the highest quality of service delivered with warmth, friendliness, individual pride, and company spirit (Mission…, 2007). The company also provides opportunities for learning and personal growth to each employee. Creativity and innovation is very important and highly encouraged, for the purposes of improving effectiveness. Employees are to be provided the same concern, respect, and caring attitude within the organization that the employees are expected to share with the customer. Southwest Airlines was initially created to be a low-cost alternative to high price of intra-Texas air carriers (Freiberg, 1996). Southwest’s fares were originally supposed to compete with car and bus transportation. It was a little airline, and it would withstand the test of time. As a discount, no-frills airline, it would provide stiff competition for larger airlines. Their strategy was to operate at low cost, offering no food, no movies, no first class, and no reserved seats. They created their own market and provided increased turnaround times at the gate, by avoiding hub-and-spoke airports and opting for short-haul, direct flights. Through this market approach, Southwest has a majority of market share in the markets they serve.
There are few things that are impressive about Southwest Airlines first one is how they treat the employees. For Southwest Airlines employees are first and customers are second. If the employees are treated well that will bring in happy customers. Next is that Southwest is not only with their low prices but is able to create a competitive advantage by offering a fun and humorous experience when flying. Finally another impressive fact is when Herb Kelleher’s retire from CEO position yet remained a Southwest employee till July 2014. Even after the retirement he was still active with the Southwest Airlines that reflected his enthusiasm and dedication for the
The company’s cultural change, which is still ongoing, may lead to a decrease in employees’ morale. As AirTran’s employees continue to embrace Southwest Airline culture, the issues emerges from this organizational change remain priority.
...l man who enables others to think and do in his way (role model) and his employees work him for unconditional loyalty (e.g. his PA), also, adopt a fair system of rewards and punishments; however, as a leader sometimes he just needs some transformational styles which respect and communicate with followers equally rather than forced them to shut up rudely. As for organizational culture, the article obtains further understanding that some factors attribute to detect cultures existed in an organisation, communication system, for example. As a result, it can be identified that his culture not only can be classified as power but task. Moreover, due to the changeable outside environment, compounded and flexible cultures seems to be a better way for an organisation’s sustainable development. Therefore, leadership is tightly related to organizational culture.
The company’s cost leadership strategy of keeping their fares low to ensure frequent and convenient travel along with its playful, fun poking advertising, exciting promotional ways, and various vibrant ways of operation enabled the company to expand exuded its effect on both customer and competitors, thus lowering the prices in the new market. This is the ‘Southwest
Whether or not a company is attains acclaimed success lies not in the fact that it spends huge amounts of money on Research and Development, rather, and as stated by Bauer and Erdogan (2010), success is determined principally by the people within hat specific organization; they are the assets whose output resonates wit he company’s success. However, while this is an established fact, it is also important to state that both the organization and the people who constitute it mutual impact arriving at collective success. Therefore, as Bauer & Erdogan (2010) continue to assert, it is necessary to understand how people relate at work both at the individual and group levels, and how the organization is impacted by this interrelationship. This is what Bauer & Erdogan (2010), define as organizational behavior. It informs on what is wrong, and what is correct; essentially assisting one as an employee become ore engaged in work. Leadership or governance is one of the constituent components of organizational behavior. More often than not, it is usually associated with power, ethos, and cultural inclinations of the organization. This paper seeks to examine in-depth, management problems associated with leadership and governance at Hewlett-Packard and how it impacts on the company’s organizational culture and behavior.
It brought organisational culture to the performance of a company, which has become a critical topic in management department. In addition to organisational culture, organisations need to be aware and prepared for changes in the expanding workforce as business grows. Companies are faced with maximizing benefits as well as profits while minimizing negative factors that come from those changes. There is no one answer to the issue, but some of the guidelines are clear. Awareness of organisational culture, teamwork, individual performance, external environment adaptation, leadership, and measurement of organisational culture are key factors that lead a company to perform better.