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.
Servant leadership, as defined by Kretiner and Kinkicki (2015, p.486), is putting the needs of others, including employees, customers, and community ahead of one’s own needs. This management style requires selflessness and humility from management so the organization can focus on serving key stakeholders. There are ten characteristics of a servant-leader as identified in the text
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(Kreitner, p487), three of which will be the focus here: conceptualizaiton, community building, and commitment to the growth of people. By this model, Southwest's organization structure, customer service mindset, and focus on empowering employees set it apart to be a living epitome of servant leadership. Conceptualizationn: Organization Structure Southwest CEO Gary Kelly once stated, “Our people are our single greatest strength and most enduring long-term competitive advantage.” This emphasis on employees is reflected heavily in its organizational structure.
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 …show more content…
oneself. Community Building: “Warrior Spirits” Servant leadership involves the concept of community building, which is "striving to create a sense of community both within and outside the work organization" (Kritcher, p.487). Southwest Airlines creates a sense of community almost immediately upon hire, by focusing on finding team members with a compatible "Warrior Spirits" attitude, which emphasizes delivering products fearlessly. (http://www.forbes.com/sites/kenmakovsky/2013/11/21/behind-the-southwest-airlines-culture/). They encourage employees to have fun while taking care of customers, often hosting themed parties and raffles to encourage a sense of belonging among each team member. Southwest management understands the imperative that each employee must recognize and believe in the company’s vision and feel like a vital, indispensible part of the team. Once implemented, Southwest encourages the community model for both internal (employee) and external (passengers) community members.
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
leadership. Commitment to Growth: Empowering employees: Servant leaders are committed to the growth of their people, and Southwest Airlines exemplifies this through employee empowerment. Southwest's career website proclaims that working for Southwest is “Not just a career, a cause.” There are countless examples of Southwest employees going above and beyond to ensure passengers are satisfied with their experience. Much of this stems from the full empowerment and trust employees receive from management. For example, in the company-sponsored Youtube video “Southwest Purpose and Vision," as an American soldier leaving for duty was saying goodbye to family, a Southwest customer service rep let the family through the gate, and even let them stay on the plane right until take-off. She had the autonomy to make this decision, and the family will forever be loyal to Southwest Airlines, as will all the passengers who witnessed the touching moment. Empowering employees to be able to take care of customers like this demonstrates Southwest’s trust in their employees and furthers their status as a servant leadership company. Differences between what the organization endorses and the theory/model: In practice, there are no definitive differences between the servant theory and what Southwest Airlines endorses. Southwest executives have even been quoted describing their servant leadership style, as it is truly what the company seeks to implement
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.
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.
Servant leadership is a philosophy and set of practices that augments the lives of individuals, builds better organizations, and creates a more just and caring world, they put the team first, and themselves second (MindTools, 2015). Servant leaders are able to demonstrate their traits through interaction with followers and other leaders within the organization. The characteristics of servant leaders include their commitment to the growth of people, stewardship, and building community, and provide leaders with the opportunity to experience change and to invite followers to change (Savage-Austin & Honeycutt 2011). Servant leadership encourages leaders and followers to ‘raise one another to higher levels of motivation and morality’, and set their leadership focus: follower’s first, organizations second, their own needs last (Sendjaya, Sarros, & Santora, 2008). The servant leader focuses on the needs of others to include team members.
“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 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.
In 1971 Southwest Airlines started their operations with a vision of being a low cost/low fare carrier for passengers traveling between San Antonio, Dallas and Houston. After early legal battles and struggles gaining market share, their fighting spirit, integrity and will to succeed paid off. Over the course of the next 40+ years, Southwest has become the world’s largest low-cost carrier, while carrying more domestic passengers that any other U.S. airline (“Southwest Corporate,” 2015). Their culture, values and operating practices are what have driven this company to its current success and will continue to do so for the foreseeable future.
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.
Southwest’s philosophy is that a fun attitude provides a balance in the workplace and it encourages employees not to take themselves too seriously. Additionally, Southwest Airlines’ inculcation of servant leadership into their business philosophy has also been attributed to their success as a company. The Robert E. Greenleaf Center for Servant Leadership describes a servant leader as one who “focuses primarily on the growth and well-being of people and the communities to which they belong”. Colleen Barrett, president emeritus of Southwest Airlines, explained that the difference between the Southwest pyramid structure and that of other companies is that most companies have their shareholders at the top of the pyramid but for Southwest, their employee satisfaction and the needs of their customers are the first priorities. Barrett also stated that Southwest’s philosophy is to follow their golden rule which is to “treat people the way you want to be treated”. By putting their employees first and treating employees as a part of the family, Southwest has been able to lead in the airline industry as a company with satisfied employees. (Barrett,
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 is committed to their values and vision through training and development.
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 quality of any organization that uses servant leadership improves, because of the organization’s continuous efforts on development. These efforts help create more efficient, content, empowered and innovative teams to generate more profitability (Schmidt, 2013). Starbucks’ employee satisfaction rate has increased and they have markedly grown since 2014 with their attempt to build a community by offering the free college tuition (Business Wire,
Southwest Airlines business opened for operations in 1971, after Rollin King and Herb Kelleher raised enough capital to finance their plan. Their service model broke off from the typical large airline policies and procedures. The typical model had an airline that was “home based” from a hub and ran routes to and from that location. This model added cost that Southwest wanted to avoid, causing them to implement point-to-point flights. The leadership team also made decisions to eliminate the inflight meal options to reduce overhead costs. Customer service and the overall experience of their customers became the valued operating vision and mission for Southwest. Eventually utilizing technology for online booking to the fullest potential saved precious time and gained efficiencies. Though the company started strong and grew slowly, several elements affected the long-term success of the company. Some of the factors that caused Southwest to reevaluate organic growth processes included not operating out of key United States hubs, the rise in fuel costs, and troubled contract negotiations.
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
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.