Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
examples of a performance management system
southwest airlines
examples of a performance management system
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: examples of a performance management system
The Southwest airline is best known for its efficient approach to business operations. The main aircraft it has it its fleet is Boeing 737 and the employees have been able to manage the turn around time of planes in an extremely efficient manner between the flights which considerably reduces their downtime. The airline is able to even board their fully booked flight faster than their competitors, even though the seats are not pre-assigned. This not only keep the competitors wondering but also the customers are astonished by the quick services they provide. Approaches to organizational development The main approach to organizational development is about improving the overall performance at an organizational, team and individual level. It is …show more content…
The frontline employees are like the player coaches within the company, as they have the managerial authority, but also perform the duties of frontline employees. The supervisors are encouraged and they do spend most of their time with the employees to solve their problems and give them advise as compared to competitor counterparts in other organizations (Gitell, 2005). • Hire people with the right attitude: Utmost significance is given to the fact that the right people are hired at the right time. The training is given to people to walk a mile concept so that the employees become familiar with the work related activities and processes. • Reduce the family and work division: The employees are encouraged to be natural and present themselves at work and to recognize the important events in each other lives related to their family. This gives them a sense of association and the support is provided at each level (Gitell, 2005). • The conflict must be used to develop relationships: The cross-functional conflicts are solved and the managers are encouraged to take active steps in this regard. A conflict-resolution process is launched known as informational gatherings, which is initiated when the parties are unable to resolve their own conflicts (Gitell,
Southwest airlines is one of the most widely respected companies among those profiled by Firms of Endearment. They are recognized for having one of the best corporate cultures, which is emphatically encouraged from the top down. Southwest’s model clearly exemplifies the concept of servant leadership, and we will elaborate on how this creates a firm of endearment.
Strategic use of information systems is one of the most important issues facing firms in today’s business environment. Information systems (IS) can either enable or hinder business growth, so organizations must learn to use IS advantageously. The case study “Building Business Agility at Southwest Airlines” by Ross and Beath (2007) demonstrates how a firm can drive business success through a revolutionary change in its use of IS. In the following case analysis, I will introduce and evaluate Southwest Airlines, describe and analyze its approach to IS as outlined in “Building Business Agility at Southwest Airlines,” and provide future recommendations for the company.
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.
Southwest Airlines operates in the American domestic market. It is well known for its growth over the years. Its mission is the dedication to the customer service of the highest quality that is delivered with a sense of friendliness, company spirit, personal pride and warmth, (Inkpen & Degroot, 2). The airline industry had general environmental factors that do impact it is several ways within the market.
Southwest Airlines Company (SAC) has turn out to be a shining example not only in the airline industry, but in the business world as a whole. At the heart of the carrier, their vision and mission statements have been diligently working to turn a dream into reality by becoming the world’s most loved, most flown, and most profitable airline, as well as be dedicated to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit, respectfully (Investor Relations, 2015). As a Fortune 500 company, SAC employs over 49,000 personnel to provide first-rate service more than 100 million customers annually. They credit much of their success to its triple bottom line approach
Even though Southwest offers no-frills, there is still a high degree of customer satisfaction that continuously builds customer loyalty for the company. As mentioned, Southwest offers low prices on their airplane tickets. Also, Southwest is renowned in the airline industry for its short turnaround time on arrivals and departures. And since people's biggest concern nowadays is money and time, having low price airline tickets to cater their traveling needs in a shorter period of time will surely satisfy them. Moreover, aside from the low prices offered, what attracts to customers is Southwest’s way in dealing with them. The employees of the airline treat their customers well and really listen to their needs.
One of Southwest Airlines’ operations resources is their flight point-to-point service to maximize its operational efficiency and stay cost-effective, where its aim is to keep their aircrafts in the air more often to achieve better capacity utilization. Another resource that they have is the consistent aircrafts that they employ, in which they only use one type of aircraft , the Boeing 737 jets. By maintaining a single model fleet, it significantly simplifies scheduling, operations and flight maintenance. Then training costs for pilots, ground crew and mechanics are not as high, due to the fact that there's only a single aircraft to learn. This then makes the purchasing, provisioning, and other operations vastly simplified and thereby lowering costs. A third operations resource that they have is their airport operations that include the following: “Ramp Agents, Operations Agents, Customer Service Agents, Provisioning Agents and Cargo Agents” (Our People). Without them, a flight on Southwest would not go as smoothly as it does now. The last operations resource to consider is Online or E-tickets. This allows the customer to be able to find the flight they want in their own home without the hassle of booking through a travel agent, it is fast and convenient.
More than 37 years ago, Rollin King and Herb Kelleher got together and decided to start a different kind of airline. They began with one simple notion: If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline. And you know what? They were right. What began as a small Texas airline has grown to become one of the largest airlines in America. Today, Southwest Airlines flies over 104 million passengers a year to 64 great cities all across the country, and we do it more than 3,400 times a day.
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.
Advertising: As one of the largest domestic airlines, Southwest Airlines has an enormous advertising budget to sustain its presence and increase its market share through focusing on the benefits of flying Southwest over its competitors. Southwest recognizes that flying is no longer a pleasurable experience for many customers, even on Southwest, historically a budget airline. Even though Southwest is often regarded as a no-frills airline, it still attempts to build goodwill from its customers based on its advertising. Of the $249 million it spent on advertising in 2011, Southwest Airlines is unique in that it does not sell additional ad space on the exterior of its aircraft. Many domestic airlines have begun selling aircraft exterior space as a way to increase revenue, but Southwest Airlines insists that it wants to keep its product and advertisi...
Southwest has done what others in its industry seem to struggle to do, which is to make flying fun. This has been the cornerstone for how the Southwest operates, thinks, and plans. Many of the policies, procedures, and practices Southwest has used are aimed directly at providing patrons with a unique, fun, and enjoyable experience. This value and the effort Southwest has made to place customers at the forefront of its plans and strategy, has paid off as the company is one of the most popular and well-respected in the transportation industry.
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.
The Organizational Structure of Southwest Airlines. One of the determining factors of the organizational behavior in an organizational structure. It includes several areas such as issues of authority and control, communication team, market and geographic structure, product division. Southwest Airlines determine all these areas and proved a strong competence in all issues. The SWA organizational structure is well-known for being functional. First of all, because their structure is multi-divisional, “each division in a multidivisional structure is essentially a different business. Moreover, the responsibility of each divisional manager is to design the divisional structure that best meets the needs of the products and customer of that division” (Jones, 2007, p. 155). The major positive aspect of such kind of structure is an increased organizational effectiveness and control. In this system, behavior is controlled through internal upward mobility. “A large divisional company possesses an internal labor market which increases managers’ motivation to increase organizational effectiveness” (Jones, 2007, p. 157). One more important issue in such type of structure is how to keep the customer’s happiness. The SWA coped with this question easily. They put the
Southwest has comprehensive strategy and they work with harmony. They are low cost airlines which make the customer feel like royalty. Southwest have a winning strategy is proven by their profit year after year even thought they had economy crisis. Since 1973 Southwest reported a profit each year even when they lost billions of dollars from the year 1980 to 2009 because of the low operating cost strategy, low fares and customer service. Since the start of Southwest they have stay faithful of keeping low cost across the industry. Their value in corporate culture reflected through their prices and customer service.
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.