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OL 215 Final Project One

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OL 215 Final Project Jerry L. Johnson II Southern New Hampshire University

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This overview will discuss the successful company of Southwest Airlines and touch on its innovative managing practices. Initially the founder Herb Kelleher set out to provide a more cost-effective alternative of flight travel with a family orientated environment for the employees of SWA that would be passed along to the customers. Southwest has the most reliable non-stop route network in the country, and also have a strong presence in the top leisure and business markets. SWA has a long history of value return for its shareholders having a profitability streak of 47 years. With the reputation that SWA has, “known for a triple bottom line approach that contributes to the carrier's performance and productivity, the importance of its People and the communities they serve, and an overall commitment to efficiency and the planet,” (Southwest Airlines) there is rarely a major issue with employee morale. By providing a “fun” environment for employees when they come to work, the customers are able to benefit because they genuinely can feel that happiness and thoughtfulness from Southwest Airlines. An example of the compassionate leadership that is expressed by SWA would be when Herb once asked the pilot’s union to agree to a five year pay raise freeze but also agreed to the pay freeze for himself which potential cost him upwards of $100,000,000. “The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit” (Evans, 2019). This mission statement is the standard for what the customer experience with SWA is measured to. The warmth and friendliness that is expressed by the staff is not only a reflection of the company but how the company treats its people. The vision statement for Southwest Airlines is “to become the world’s most loved, most flown, and most profitable airline” (Evans, 2019). This statement expresses the global aspirations that the company has for

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the near future, and to obtain an image of being popular and reliable for global transportation. With the growth of business, it is only right for the profit margins to grow as well. Mission & Vision Living up to the vision statement, “Our vision is to become the world’s most loved, most flown, and most profitable airline” has created the consequence of Southwest Airlines becoming very popular amongst customers. Southwest has attracted the attention of both customers and shareholders because they don’t focus simply on how to generate revenue; they put their emphasis on creating the best experience possible for their employees (Posted by: Team Tony). Strategic Management Plan With management at SWA implementing a servant-leader model, they have been able to directly boost business among customers and receive numerous accolades for their top-tier service. They also vowed to provide incredible service to their customers – the type of service that would keep them coming back again and again. To do this, they deployed the servant leadership model, treating their employees as the most important aspect of the business. Those valued employees turned around and treated their actual customers as important and valuable (Posted by Team Tony). Organizational Culture Southwest Airlines Co.’s organizational culture promotes employee well-being, pointing to the underlying principle that employees who are properly taken care of are the ones who provide the highest quality of output (Brown). By Southwest Airlines management providing a

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“family” like support for employees, the company is able to boost and maintain morale and engagement, while consistently being recognized as one of the best places to work. Decision-Making Management positions at SWA are not taken lightly. New entrants have to go through a rigorous training at Southwest University (Holmes). Although company decisions are made by management, employee input is not only considered but welcomed. A decision made by management based on principles of ethics would be treating customers equally and not assigning reserved seats for customers, the boarding process is a first come first serve model. Principles of Ethics Southwest Airlines management is guided by strong ethics and values. It is this belief that guides the decision-making process when it comes to hiring new employees, awarding promotions, and boosting revenue. All ethical decisions made by SWA management are a direct benefit to employees and can be seen in the satisfaction that customers have for the company. Human Resources Southwest Airlines is very selective in the individuals that are hired on. It is important for the potential new hire to already share the same values as SWA, so resources are used to not only bring the right person onboard but to also groom them for a successful career. At Southwest, we talk about hiring not for skills but three attributes: a warrior spirit, a servant’s heart, and a fun-loving attitude (Weber). Conclusion

OL 215 Final Project One Southwest Airlines utilizes the fundamental principles of management to ensure optimal performance by creating a unity of direction throughout the company, but still has authority and responsibility. SWA also utilizes the principle of subordination of individual interest because they find the best possible employee applicant match to whatever position their unique personality fits. Southwest considers all parts of the company as one big family and empowers each employee to not only make a difference but share in the company’s success. In the end, everyone is able to come together to provide not just transportation but an experience that customers won’t forget.

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OL 215 Final Project One Brown, Lisa. “Southwest Airlines Co.'s Organizational Culture & Its Characteristics: An Analysis.” Panmore Institute, 30 May 2019, panmore.com/southwest-airlines-coorganizational-culture-characteristics-analysis. Evans, Leonard. “Southwest Airlines Co.'s Mission Statement & Vision Statement (An Analysis).” Panmore Institute, 30 May 2019, panmore.com/southwest-airlines-visionstatement-mission-statement-analysis#:~:text=Pertaining%20to%20its%20corporate %20mission,Company%20Spirit.%E2%80%9D%20This%20corporate%20mission. Gallo, Carmine. “Southwest Airlines Motivates Its Employees With A Purpose Bigger Than A Paycheck.” Forbes, Forbes Magazine, 10 July 2020, www.forbes.com/sites/carminegallo/2014/01/21/southwest-airlines-motivates-itsemployees-with-a-purpose-bigger-than-a-paycheck/?sh=29b20fa85376. Holmes, Sister Susan. “South West Airlines Management Decision Making Process.” Academic Writing for Students, 11 May 2020, academicwritingforstudents.com/south-west-airlinesmanagement-decision-making-process/. Posted by: Team Tony. “Servant Leadership as Demonstrated by Southwest Airlines.” Tonyrobbins.com, 29 Jan. 2019, www.tonyrobbins.com/career-business/how-hassouthwest-airlines-made-money-for-30-plus-years-while-other-airlines-barely-survive/. Southwest Airlines, Investor Relation. “Company Overview.” – Southwest Airlines, 2020, investors.southwest.com/our-company/company-overview. Weber, Julie. “How Southwest Airlines Hires Such Dedicated People.” Harvard Business Review, 8 May 2017, hbr.org/2015/12/how-southwest-airlines-hires-such-dedicatedpeople.

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