(Southwest Airlines Corporation)
The employees are always put first at Southwest Airlines, and according to the CEO Herb Kelleher, who was responsible for founding the company Southwest Airlines, the philosophy that employees come first is deeply embedded in the psyche of the company, and if the employees of the company are happy and contented and fully satisfied with their work, then they will most definitely take better care of the customers of the company, and this is exactly what happens at Southwest Airlines. When the customers are happy at the treatment that they receive at Southwest Airlines, they, quite naturally keep coming back for more, and this in turn makes the shareholders extremely happy and satisfied. The employees at Southwest Airlines are some of the best and most highly paid employees of any airline, and in general, all the walls of the company are always filled with several pictures of the employees of the concern.
The business ethics and the corporate culture of Southwest Airlines dictate that the employees of the company are hardworking, highly energetic, full of fun and energy, and extremely creative, at all times. The company has a Training Center named 'University of People', and the employees are trained according to company specifications and needs here. In-flight contests and recognition of personal initiative among the employees are some of the trademarks of the training that employees undergo at the University. The CEO Kelleher also stated that the company wanted its employees to "do things well, with laughter and grace." (Southwest Airlines Corporation)
Howard Putnam, the Former CEO of Southwest Airlines, has been one individual who has led the airlines through times of trouble and turbulence. He was the person, in fact, who was able to lead the company when it was but a fledgling carrier, and it carried the company through deregulation and was also responsible for developing a 'vision' that helped to guide the Southwest Airlines into the top position that it is in today. He had certain important tips for companies that want to do well and perform better in order to be able to generate more profits. One is that the management must be aware of the leadership that would be needed in running the business, and the second is that the management must be able to create and build up the very culture that support the visions of the company, as well as the business, in the best possible manner. (Program resources, Professional Speakers: Howard Putnam)
As far as customer service is concerned, according to Howard Putnam, the best possible method is to start with the basics of bottom line improvement, wherein hour people would be placed ahead of others, and then others. The culture of the company must be taken into account first, before picking out the team of personnel, and this means that the team would be able to match the numerous expectations and outlooks of the company in such a way that customer expectations would be exceeded. Change being an integral part of the success of a company, it must be brought about gradually, especially in times of turbulence. Howard Putnam states that it is at these specific times that the management of the company must be able to focus better, and also to resize, and to simplify, and to organize the company better for the purpose of inculcating flexibility. This is how a company would be transformed in times of turbulence, and this is exactly what the former CEO of Southwest Airlines did, in order to make the company one of the bets there is today. (Program resources, Professional Speakers: Howard Putnam)
III. How Southwest Airlines handle the various crises?
It is indeed a fact that the airline industry today is facing losses, and more and more companies are declaring bankruptcy and closing down. A few examples are U.S. Airways, which is seeking the elimination of more than 2,000 mechanics, cleaners, other ground personnel, and stock clerks. Out of the 848 cleaners, 798 would lose their precious jobs, and the remaining personnel would have to accept to cut their pays by 15%. The number of mechanics too would have to be cut from 3,000 to 1,800, and would have to put up with an 8% pay cut, and in the same way, stock clerks would be cut from 400 to 268, and the reduction in their pay would be about 15%. All these measures, stated the U.S. Airways, the United States of America's second largest...
Southwest Airlines: The corporate culture of the LUV airline Southwest Airlines is known for a unique corporate culture that is particularly distinctive, in contrast to its competitors. Southwest Airlines has "a raucous corporate culture that is the exception in the grim airline industry" (Bailey 2008). From the Airline's inception, its founder and chairman, Herbert D. Kelleher ensured that there was "a startling amount of office hugging and kissing in lieu of
Southwest Airlines Effectiveness of Southwest Leadership Southwest management has defined a clear and simple business purpose. The management has also chosen the right business model that supports the business purpose. The management consistently demonstrates the core values and behaviors derived from the key business purpose (Emerald, 2005). The quality of the airline customer service is synonymous with warmth, friendliness, individual pride, and company spirit. This has kept the staff morale high. The
And many have got successful too in earning the market share. The emerging competition by new companies is a growing threat for the company and it should be tackled properly to avoid any future disturbances. In order to further describe the competition Southwest Airlines is facing a Competitive Profile Matrix is designed. The following Competitive Profile Matrix tells about the tough competitors which are in a good position to have
There are many examples of this throughout the company's history, all pointing to the fact that employees who have a strong sense of ownership and wiliness to sacrifice for the greater good. Southwest's ability to translate cultural values into financial performance while embracing, even attacking change, in their industry is what fuels their profitability. Through the worst recession in 40 years, Southwest has been able to generate positive Return
The company continually stressed the human nature of travel, and strove to make airplane travel affordable and enjoyable. Many people who used Southwest Airlines had never been able to fly before. However, the 'customer did not come first' at Southwest -- rather the customer came second, even though they "still got great service" (Friedberg & Friedberg 268). The company stood behind its employees, and allowed flight crews, for example, to
As the value proposition that the company was based on, the attractiveness of flying when it is equal to or less than the cost of gasoline for the comparable trip has helped to create a unique niche for this airline. Their reliance on regional airports within 500 miles of each other has also contributed to the unique value proposition being realized for millions of customers a year. Southwest Airlines Internal
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