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Importance of diversity in organizations
Importance of diversity in organizations
The function of organizational culture
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This chapter will focus on defining the creative marketing and organizational culture theories that correspond to the stated hypothesis. The necessities identified regarding these subjects will provide a clear understanding of what Southwest needs to address to regain its competitive advantage. A comparison of other organizations that also experienced marketing and/or cultural issues will be presented. This chapter will additionally compare the management strategies implemented by those businesses and their outcomes. Implementing comparable strategies will provide Southwest Airlines with the necessary strategic plan to reverse its current situation.
Organizational Culture According to authors Hill and Jones (2010), stated that to obtain a
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Lambert (2016) writes that innovation cannot occur without a diverse group of employees (p. 68). Individual and team innovation is supported by the organizational culture (Lambert, J. 2016 (p. 68). He also states that employees that have a sense of belonging, are more willing to share their ideas and contribute their creativity to the organization (2016, p. 68). Lambert’s identifies that diversity in the workplace, has a direct link to greater innovation and improved company performance (2016, p. 68). This supportive environment for a diverse employee base does not only give the employee a feeling of belonging but diversity enhances creativity among employees and positively impacts how an organization …show more content…
AQR had Spirit Airlines score on customer complaints rating at -3.18 which was the worst of all the airlines tracked by AQR (Bowen and Headley, 2016, p. 15). Spirit Airlines CEO, Ben Baldanza, discussed during an interview the hard facts regarding his airline (Burson, 2014). Spirit prides itself on being a low cost airline so they implement policies that allows them the luxury to do whatever it takes to maintain the lowest fares possible. Included in their low cost structure is reducing leg room so that they can maximize seating on their planes. If you want more leg room you will pay extra for that. They charge for every bag including carry-on bags that are too big to fit under the seat in front of you. Spirit is planning on eliminating reclining seats on their flights and have decided not to offer inflight TV’s on their flights as they increase the weight of their jets which translates into increased fuel cost and cuts into their profits (Burson,
Their extra space sit it may cost a little bit more; however customers don’t have to pay for a double sit price. Although I am don’t agree with the policy base on heavier customers. People must be aware that airlines, works base on weight regulations they have to have the exact amount of weight that way the impact of incorrectly calculating an aircraft’s load increases in significance as the size of the aircraft decreases and thus the contrary effects of underestimating loads are likely to affect smaller piston airplane much more meaningfully than large jet-powered aircraft. Another example is International airlines such as Air Canada addresses this issue more amicably: Because the airline considers obesity a medical condition, it provides overweight passengers with a free extra seat as long as they present a doctor 's note. (Barnes,
I. Introduction Southwest Airlines has come from an underdog to being one of the best airlines in the industry. This reputation translates from its strategic management of resources. The Co-founder and former CEO, Herb Kelleher, established a unique corporate culture that leads to high customer satisfaction, employees’ morale, and is one of the most profitable airlines in the industry (Jackson et al., 2012). Corporate culture concentrates on empowering the workforce. It shows through Southwest Airlines core values that “happy employees lead to happy customers, which create happy shareholders” (Jackson et al., 2012).
Despite its growing domestic network, the company didn’t offer international flights until July 2014, and even then, it only offered limited destinations (“Southwest Corporate Fact Sheet,” n.d.). Furthermore, the company’s reliance on a single aircraft is cause for concern. Southwest Airlines was also weak with technology utilization initially but has since turned this into an asset, as described later. Finally, the company has a limitation with providing customer perks due to its low-cost operations (Ross & Beath,
Southwest Airlines faced many barriers to entry from the fierce competition of other airlines in the industry. Though competition was fierce, Southwest Airlines managed to succeed by doing things differently. Their mission was to provide affordable air travel to those who would not normally fly. Contradictory to the rest of the airline industry, Southwest maintained a profit while keeping its fares low. Southwest was unique to the industry in two ways. They focused on the short haul traveler and used a point-to-point method of flight connections.
In today's competitive marketplace, all firms are seeking ways to improve their overall performance. One such method of improvement, recently adopted by many firms, is benchmarking. Benchmarking is a technique used to evaluate internal business processes. "In this analysis, managers determine the firm's critical processes and outputs, baseline those processes, then compare the performance of each process against a standard outside the industry" (Bounds, Yorks, Adams, & Ranney 1994). To effectively improve a business process to world-class quality, managers must find a firm that is recognized as a global leader, not just the industry standard. Successful benchmarking requires tailor-made solutions, not just blind copying of another organization. Measurement and interpretation of data collected is the key to creating business process solutions.
The airline does not serve meals on board, and there are no luxurious or first class seats offered. Services like these have been seen by the airline as unnecessary for an airline that provides a short-haul trip from city to city. By this, Southwest was able to offer low price tickets to customers, which was good for the company because most people would prefer to fly without those services mentioned if it meant for cheaper ticket prices. 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 airline tickets.
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.
“Without change there is no innovation, creativity, or incentive for improvement. Those who initiate change will have a better opportunity to manage the change that is inevitable.” William Pollard’s, a 20th century physicist, words show us the power of being proactive, and igniting change to strengthen a company’s productive climate (Sellers, Boone, Harper, 2011). Acme Airlines flight attendants lacked incentive to improve the quality of their work, as a result of distrustful management and overall frustration within the company. Acme took successful steps to rebuild their FA program into a more relationship oriented work environment. Through an understanding of effective leadership, we will use the
The culture of an organization can simply be defined by its core values, traditions, and beliefs. For over 45 years Southwest Airlines has been successful. Its success has been attributed to a value system that tasks managers with the responsibility
Southwest is organized in a typical hierarchical structure, with employees reporting through a line of supervisors to the CEO himself. While most people will not interact with the CEO on a daily basis, technology allows all employees to keep abreast of the CEO's activities. At Southwest Airlines, only the Executive Vice Presidents, or top managers, actually report directly to the CEO. These individuals are responsible for making strategic decisions about the future of the organization. They make higher-level, general decisions about the directions Southwest will take in the future and the kinds of policies and procedures that should govern employees' conduct. In the early 1990s Colleen C. Barrett, Executive Vice President, set up a Company Culture Committee comprised of people from all over the organization.
The Southwest Airlines company and its culture is one that is often cited in today 's business classes. The airline is widely known to be “different” compared to many of its competitors, a result of its founding values and strong corporate culture. This culture developed early in Southwest’s history and was deeply entrenched due to the competitiveness of the airline industry, as well as due to some of the pressures experienced as a result regulatory issues and stiff competition.
Company had a culture on not giving up through all the adversities the company faced. Strengthening of employees that is when they are motivates employees and is important part of the company. Finally cost awareness is when reduce price in every progression in the business. Southwest airlines are a strong culture company because of how they make the employees feel as part of family. This makes the employees to work hard for the success and that success they see the company as expert and personal
For years, Southwest Airlines has been experiencing stable costs, low fares and traffic stimulation. However, the latest changes in the marketplace (See Exhibit 1: SWOT Analysis), including the higher energy costs and the entrance of new low fare/cost carriers are threatening the future of the airline. As a result, LUV needs to decide whether or not to acquire the slots and gates from the bankrupt ATA Airlines at LaGuardia (LGA) terminal in New York City (NYC) in order to expand its capabilities.
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.
to major airports but later it went down as PE try to grow faster and