Considering Kelleher's leadership of Southwest, I believe that he falls in the "team leader" quadrant for the simple reason that he emphasized the importance of both task and relationships, led by example and built an organizational culture, which encouraged people to realize their full potential. 4. Southwest believes that employees come first. However, unlike many other organizations, this is not merely a slogan at Southwest that the company pays lip service to. It lives, breathes and practices the philosophy through aligning its systems, structure, policies, and procedures so that employees know that they do truly come first. More important, the leaders at Southwest lead by example so that employees come to learn what the right thing is and that the company truly believes in encouraging its people to "do the right thing." Southwest also lets its people know that they come first through ensuring that they have all the information they need to understand their job and the company better; encouraging people to transcend the rules if their common sense tells them that by doing so, they would, in fact, have done the right thing; and by making living legends out of "service heroes." The central concepts in this chapter are not surprising because the success of any organization depends on motivated, committed people. This axiom is especially true of organizations like Southwest that are in the service business. Other business courses do seem to emphasize the importance of stakeholder groups such...
But this is short sighted since focusing on employees will, in any case, deliver shareholder value and ensure customer satisfaction.
Southwest Airlines Organizational Culture Analysis of Organizational Culture at Southwest Airlines Application of the OCP Framework Developing Organizational Culture at Southwest Airlines Implementation of Organizational Culture Organizational Culture as an Important Determinant of Organization's Success Southwest Airlines is a world renowned air travel company and a low cost leader in airline industry of USA. Formed in 1971 by Rollin King and Herb Kelleher, the company is committed to "providing highest level of customer service with
Organizational Culture Integrating culture and diversity in decision-making:The CEO and organizational culture profile. Historically, there are many definitions about organizational culture, which different literatures offer different definitions. The most popular definition is "the way a company does their thing around the company." In addition, organizational culture refers to the attributes of an organization, or in other terms, it is appropriate to link organizational culture as the right ways in which companies understand
Management Organizational Behavior and Teamwork CASE ASSIGNMENT Southwest Airlines, Inc. has become an example of notable success. One reason for its significant achievement is its application of Reinforcement Theory to its employees. These applications have resulted in a highly motivated workforce, which is intimately tied to Southwest's success among business leaders. Even so, not even Southwest can satisfy its employees' needs according to Maslow's Hierarchy; rather, Southwest can only give some raw materials
Southwest Airlines Analysis Established in 1971 by Herbert D. Kelleher and several business partners, Southwest Airlines has secured a strong position in the airlines industry over the last 35 years. Southwest and its wholly owned subsidiary, Air Tran, serve a combined 103 destinations in 41 U.S. states, the District of Columbia, the Commonwealth of Puerto Rico, and six near-international countries (Johnson, 2011). Both entities combined offer over 4000 daily flights. The
Margins have fluctuated and are down, indicating short run cost control failure. However, company performance in the long run is strongly attributable to the corporate culture. Southwest has had consistent performance since its inception, despite many swings in the fortunes of the industry overall. This indicates that management fostered a culture that over the long run will drive customer loyalty and will drive steady, incremental cost reductions. Success for
Another issue is the legal/political power that Southwest has (or does not have, in relation to its rivals). Ultimately, the company has suffered as the result of the Wright Amendment, and it needs to leverage its current size to fight back against American Airlines over this legislation. Not only should Southwest fight for the amendment to be repealed in its entirety and immediately, but it should fight for punitive
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