¶ … culture in an organization using Southwest Airlines as a model. It uses Geert Hofstede Four Dimension of Culture to analyze the company and provides an over view of how the company's policies enable it to secure a top position in the industry. It uses 5 sources in MLA Format.
Globalization has changed the way people do business today. Factors like strategies, resources or capacity to produce has become secondary to business agendas. Instead today businesses and businesspeople are more concerned with how they can achieve the maximum productivity and prosperity through alliances. These alliances often span far and wide, pilfering to foreign cultures. Often the alliances prove beneficial to the companies because of observation and approach companies take to deal with partner company's culture. On the other hand there are also cases where the alliances have resulted in losses because partner companies fail to understand each other's culture. For instance an American firm merging with a Japanese company will experience a shocking difference in social, economical and cultural environment. Before studying other's culture, one therefore has to observe one's own culture in order to detect what needs to be compromised or complimented when dealing with the business partners. The following is a study of Southwest Airlines, outlining their cultures and how they have incorporated it to achieve their business agendas using Geert Hofstede's Four Dimension of Culture.
Hofstede's Four Dimensions of Culture
Geert Hofstede provides us with a break through formula to study the degree of differences in cultures and how it could change business transactions. Although he only outlines the kind of cultures existent in certain countries, using IBM's branches as a platform, his work provides students of management a guideline to analyze how differences of countries affect the internal culture of businesses. It is important to understand the nature of a culture of a country. From it one can easily understand the way they will likely to do businesses in the future and the consequences of their decisions. The four dimensions which will be used as a guideline in analyzing Southwest are as follows:
Power Distance (unequal vs. equal). This basically means the limitations and scope of a culture values power in an organization. Whether it likes to have concentrated power or distributed power among management leaders for organizing business transaction.
Uncertainty Avoidance (rigid vs. flexible). This means the degree with which the company / culture is willing to adopt risk and willingness to face the consequences. Some organizations tend to stick to policies and regulations and ignore foreign cultures while others alter their own to adopt new cultures, constantly innovating.
Individualism/Collectivism (individual vs. group identification). Some organizations adopt a group mode of operation while others prefer to have individual operation so that proper credits are given to the one with the most innovative ideas and drive.
Masculinity/Femininity (ego attainment vs. social connection). Assertiveness and aggressiveness are attributed to masculinity while motivation, values etc. are attributed to feminity [Hofstede, 1980].
Southwest Airlines - Application of the Four Dimension Culture
One of the United States' largest airline company, Southwest Airlines has 30 years of airline history to back its company culture, the position it maintains and the vision for a successful future where other airlines have failed to achieved. With 55 destinations, across 29 states of America, Southwest has been able to upkeep its reputation among consumers, employees and stakeholders. Started in 1971, the merely served as a low cost air carrier and gradually developed to 258 Boeing 737 jets [Southwest Official website, 2002].
1. Uncertainty Avoidance
One of the main reasons why Southwest is the most preferred place to work with is the low turnover rate of 3-4%. The company believes in long-term thinking, avoiding lay offs as much as possible even during the most troublesome period of economical upheaval. Experts observed. It maintains the best customer services record in the industry which comes naturally to Southwest as they show an acute sense of commitment to both their internal and external customers.
2. Feminity
The company's policy to maintain minimal turnover is a characteristics of a feminine management where creating valuable employment at the firm is more important then mere profitability. It must also be noted that this very culture enable the company to build a trusting relationship with the employees, making it easy for them to commit to the organization. It is due to this dedication and commitment that they are willing to dedicate their time despite the crunch of the economy.
3. Power distance
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