Assessing Corporate Culture: Southwest Airlines
Q Organizational Philosophy, Mission, Vision, Values
Southwest Airlines clearly outlines their values in their corporate mission statement: The mission of Southwest Airlines is dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit (www.southwest.com). This mission both describes the company's approach to its workforce, and the customer at large. Rather than focusing on the financial side of the business, Southwest has been successful in creating an organization centered in fostering positive relationships with its employees and customers. The airline is also known for its zany corporate culture', and has maintained the buy in of its employees through emphasizing a fun atmosphere (Plunkett, 2004-2005, p.509). Company founder, Herb Kelleher once said, "If work was more fun, it would feel less like work (www.funsulting.com)". Through creating a fun working environment, Southwest has also created a fun traveling option, which entices their customers as well.
QWork Environment
Southwest's dress code is casual and reflects management's philosophy of placing little value on its formal organizational structure. Southwest is also known for its collaborative labor/management interactions, which have promoted a work environment free of rigid rules and not elaborate guidelines (Southwest Airlines charts, 1995).
Teamwork is very important at Southwest and employees are cross-trained. Employees are encouraged to be responsive to fellow employee needs first and then to customer needs. Flight attendants prepare cabins for passengers, and ramp agents help by cleaning toilets, unloading baggage, ...
... middle of paper ...
...r flight attendants. "Southwest invites its frequent flyers to help interview new flight attendants. This involvement not only brings customer expertise to the selection process, but also sends a strong message to the customers participating- you're so important to us that we want you to help us pick the people you think can best serve your needs". (Brown, 2003) Organizational goals are very important to Southwest when it comes to hiring employees. They include: Humor, talent, team play, measuring and rewarding, leveraging the freedom factor, and knowing the internal customer. (Czaplewski, 2001)
Kelleher looks for people with a certain attitude (an approach to life, a way of living, or a set of values). "He will not hesitate to fire someone who does not treat his fellow south westerners as they should be treated". Kelleher is intolerant of intolerance. (Quick, 1992)
For example, all employees constantly communicate from baggage handlers to mechanics. Not only does this practice inculcate a sense of community among employees with vastly different skill sets and job requirements, it expedites turnaround time to get more planes from the gate and into the air (http://www.businessinsider.com/southwest-airlines-puts-employees-first-2015-7). Southwest also heartily encourages feedback through multiple channels, and has received many accolades for its recognition awards system, which allows passengers to identify by name specific employees who exemplify the Warrior Spirit. With a focus on the positive, employees can feel connected to the broader community, a clear example of servant
As the project management triangle states, “do you want something done good, cheap, or fast?. Pick two!” That had been the constraints applied to many businesses until the launch of Southwest airlines in the mid 1960’s. Southwest managed to break free of the management triangle and offer safe (good), low cost (cheap), and timely (fast) air service in Texas and eventually across the United States. From the beginning, the company’s staff and management shared these goals, and developed a foundation on which to build the business. Visionary leaders Rollin King, Herb Kelleher, Colleen Barrett and other early leaders at Southwest, proved that there is no more competitive advantage than a dedicated, loyal work force. Her Kelleher’s transformational leadership style was just what the new airline needed to be successful, and motivate the staff of SWA to do what no other airline had done before: offer cheap, short distance, no frills air service, and make a profit doing it.
Southwest Airlines founder Herb Kelleher studied other airlines to try and figure out what culture he wanted to bring to Southwest Airlines. Herb Kelleher and President Lamar Muse ended up using a model copied almost word for word from an airline out of California called Pacific Southwest Airlines. (Southwest Airlines, n.d.) Pacific Southwest Airlines (PSA) motto was pretty simple as they wanted to also be known as the “The World’s Friendliest Airline” You could tell PSA wanted to be the friendliest airline by the big smiley face that was on the front of each of the companies Boeing 727 airplanes. (Pacific Southwest Airlines, n.d.) Kelleher and Muse saw the success that the culture brought to PSA and they wanted to bring that success to Southwest Airlines. Muse later confessed that creating the operations manual for Southwest Airlines was pr...
“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 Airlines provides a Career Development Group that helps employees focus on personal and career growth. This is accomplished by working on a component that aligns the employee’s personal development needs and strengths so they can grow more. It also encompasses a skills assessment that’s structured toward helping employees align their degree to a specific job within the company. As stated before, Southwest’s purpose is to encourage employee fulfillment and by their Career Development services help them become more fulfilled in their jobs. According to their philosophy, Southwest Airlines hires for attitude and trains for skills.
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.
If the short haul passenger was the backbone of Southwest Airlines success, then their 737s were the lifelines that supported it. By choosing the 737 as the airplane for all of Southwest's flights, the company saved time and resources in training its employees. The crew could be easily substituted for one another due to the extensive training on the 737. Low costs and, therefore, low fares are an enormous competitive advantage, when combined with their high-quality and loyal workforce. A very unique culture was found at Southwest Airlines among all of its employees.
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.
Corporate culture is the shared values and meanings that members hold in common and that are practiced by an organization’s leaders. Corporate culture is a powerful force that affects individuals in very real ways. In this paper I will explain the concept of corporate culture, apply the concept towards my employer, and analyze the validity of this concept. Research As Sackmann's Iceberg model demonstrates, culture is a series of visible and invisible characteristics that influence the behavior of members of organizations. Organizational and corporate cultures are formal and informal. They can be studied by observation, by listening and interacting with people in the culture, by reading what the company says about its own culture, by understanding career path progressions, and by observing stories about the company. As R. Solomon stated, “Corporate culture is related to ethics through the values and leadership styles that the leaders practice; the company model, the rituals and symbols that organizations value, and the way organizational executives and members communicate among themselves and with stakeholders. As a culture, the corporation defines not only jobs and roles; it also sets goals and establishes what counts as success” (Solomon, 1997, p.138). Corporate values are used to define corporate culture and drive operations found in “strong” corporate cultures. Boeing, Johnson & Johnson, and Bonar Group, the engineering firm I work for, all exemplify “strong” cultures. They all have a shared philosophy, they value the importance of people, they all have heroes that symbolize the success of the company, and they celebrate rituals, which provide opportunities for caring and sharing, for developing a spiri...
It all started in 1971, when Rolling King and Herb Kelleher decided to challenge the existing rut of charging high prices for air travels. They considered the railways and roadways their competitors and decided to offer cheaper travel for smaller routes. The company was incorporated in 1967, apart from initial entry troubles, Southwest has been the only US airline to have earned profits since 1973. The eccentric company’s outlandish way of conducting themselves has been the sole reason for Southwest Airlines to succeed in a highly competitive and packed industry.