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Southwest airlines culture
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Introduction “Your employees come first and if you treat your employee’s right, guess what? Your customers come back, and that makes your shareholders happy. Start with employees and the rest follows from that.” This quote from Herb Kelleher, co-founder of Southwest Airlines, embodies the attitude of leadership at the airline. Southwest dares to be different from other airlines because their philosophy revolves around people both internal and external. Communication, culture, and leadership are the cornerstone of their success. This paper explores key leader’s communiqué tactics, the role communication plays in daily operations, how the mission, vision, and culture reinforce the goals, and the importance of efficiently connecting to …show more content…
Former CEO Herb Kelleher was approachable, treated his employees as customers, considered himself part of the crew, and believed in individual expression. Kelleher understood a leaders principal obligation is satisfying their employees. An engaged employee will strive to take care of Southwest’s customers (Box & Byus, 2009). If the customers are happy, their next flight whether for business or pleasure will be with Southwest and shareholder will reap the benefit. Leaders recognize effective communication starts at the top Southwest Airlines Chief Executive Officer Gary Kelly records a podcast and audio message to keep employees of developments at Southwest (Harrison, 2013). Kelly subscribes to the idea strategy, evolution, vision, success, and failure starts at the top and trickles down to all employees. Southwest Leadership concentrates on creating a work environment that emphasizes an opportunity, growth, and learning. This approach of caring, concern, and respect towards the employees demonstrates that the internal customer is as important as the external …show more content…
In victory and defeat, our employees are our valuable asset.
7. At Southwest, we are family and need to nurture our relationships.
Southwest leadership hires employees who believe in their culture and purpose. They attempt to avoid hiring people that are looking just to collect a check. Herb Kelleher in a 2008 speech said, “All airlines have planes and our business is the business of people” (Smith & Milligan, 2015). Southwest ticker symbol on the New York Stock Exchange is LUV and supports the airlines belief that love of others is one of the most important pieces of company culture. First, they love their employees and, in return; those employees express their appreciation to the customers and company. Problems will arise at firms and airlines are no exceptions, but at Southwest, they strive to avoid passing blame. Employees are encouraged to share problems as they pop up and get involved in creating a solution. This attitude represents a paradigm shift from most businesses and impacts the quality of the communications.
Mission, Vision, and
In an evolving culture of dedication and communication, employees know desire up-to-date and precise information. Efficient communication enables employees to adapt because they have the needed information available (Smith & Milligan, 2015). This strategy will be more effectual because companies that can align individual and corporate goals will experience more prosperity. To achieve this aim, Jeffers needs to commit to becoming an exceptional communicator, otherwise leading effectively is unfeasible and he will continue to experience organizational culture
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 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.
Another internal challenge for Southwest Airlines is the conflicting management style and business operation with AirTran. On top of that, the external challenges such as the increase of competitions and gas prices are some of issues f...
“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
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.
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.
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.
Innovation is an essential ingredient in today’s competitive landscape (Denning, 2011). Unless innovation moves beyond initiative and becomes part of an organization’s DNA, innovation is doomed to fail. Southwest Airlines (NYSE: LUV) has embrace innovation as an essential part of its culture. The innovation and importance of the Southwest culture is demonstrated throughout customer service, business strategy and green initiatives.
The promotion of employees from within is a fact and testament of their successful development and training program. Southwest Airlines has a program designed to strategically developed managers in an intensive Manager-in-Training program that prepares them for the next level. The university is the umbrella for training and development for Southwest since 9/11 which has focused on enhancing its curriculum to help employees achieve their goals. 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 will align 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 designed 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. This is why they have become a company with high retention rates. Southwest Airlines is voted “the best place to work” for a simple reason. The company invests in their employees and are committed to their values and
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.
Phil Carroll, former CEO of U.S. Shell (SOC, the American arm of Royal Dutch Shell) believed in the importance of the servant-leader model of leadership. In the early 1990’s, when this new leadership model was introduced, it shook the foundations of a company that had known success for many years using a more traditional authoritarian model of leadership. He wanted to completely transform the company into an organization that could continue to expand, and make a profit doing so. The company needed to tap into the resource it had (and still does) right under its nose – its employees! Mr. Carroll wanted the culture of the company to be transformed into a model of self-directed leaders who share knowledge amongst each other, creating an environment of continuos improvement. According to the American Management Association “Phil Carroll has led Shell Oil Company toward a significant transformation of its corporate culture. It is comprised of a new vision, a new business model, a new system of governance, a new concept of leadership, and the use of learning...
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 top management team of Southwest Airlines is listed below: Gary Kelly - Chairman of the Board of Directors and Chief Executive Officer Aviation, business strategy and operational management experience Held the VP of Finance and Director position at Lincoln National Corp. for taking on the role of Controller with SWA. Kelly carries an undergraduate degree in Accounting. Thomas Nealon - President Information Technology, IT Strategy and Executive Management experience Accountable for driving long-go technique and conveying improved concentration to advancement endeavors. Fosters the vitality that Southwest—acclaimed for its entrepreneurial soul and imaginative critical thinking—puts into creating inventive items, administrations, and procedures.
One of the traits [he] ask of [his] People is to have… a Warrior Spirit. It’s that Warrior Spirit that drives [their] constant pursuit of improvement. [Their] People think and act like owners: They find creative solutions to challenging issues, are efficiency experts, and keep our costs low so [they] can pass on the savings to you in the form of low fares,” ( (Kelly, A Relentless Pusuit of Reliability). His greatest action as a leader is acknowledging his employees as the foundation of his business.