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South West Airlines - Change in Leadership
South West Airlines - Change in Leadership
South West Airlines - Change in Leadership
South West Airlines - Change in Leadership
South West Airlines - Change in Leadership
South West Airlines - Change in Leadership
South West Airlines - Change in Leadership
South West Airlines - Change in Leadership
South West Airlines - Change in Leadership
South West Airlines - Change in Leadership
South West Airlines - Change in Leadership
South West Airlines - Change in Leadership
South West Airlines - Change in Leadership
South West Airlines - Change in Leadership
South West Airlines - Change in Leadership
South West Airlines - Change in Leadership
South West Airlines - Change in Leadership
South West Airlines - Change in Leadership
South West Airlines - Change in Leadership
South West Airlines - Change in Leadership
South West Airlines - Change in Leadership
South West Airlines - Change in Leadership
South West Airlines - Change in Leadership
South West Airlines - Change in Leadership
South West Airlines - Change in Leadership
South West Airlines - Change in Leadership
South West Airlines - Change in Leadership
South West Airlines - Change in Leadership
South West Airlines - Change in Leadership
South West Airlines - Change in Leadership
South West Airlines - Change in Leadership
South West Airlines - Change in Leadership
South West Airlines - Change in Leadership
South West Airlines - Change in Leadership
South West Airlines - Change in Leadership
South West Airlines - Change in Leadership
South West Airlines - Change in Leadership
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South West Airlines - Change in Leadership

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South West Airlines - Change in Leadership

South West Airlines - Change in Leadership

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Transcript

  • 1. An Airline in Trouble? Presented by: Anuprabha D Binny Singh Prapti Agrawal Shachi Goyal T. Sandhya
  • 2. Introduction  Southwest Airlines  Change in CEO  Implications of the change
  • 3. Change In Leadership  In 2001Herb Kelleher stepped down as CEO and President of SW Airlines.  James Parker became the new CEO
  • 4. Parker v/s Kelleher • KELLEHER oFlamboyant and fun loving attitude oGreat communication and negotiation skills oHigh on extraversion oPromoted shared identity and values in the company oIconic Status oGreat motivational power
  • 5.  PARKER oReserved oStaid oGood negotiation skills oPoor communication skills oLess motivational power
  • 6. ANALYSIS Theories Of Leadership • Behavioral model of leadership- Kelleher, a perfect example of the model • Contingency model Casual Variables Group performance Contingency Variables Group atmosphere Task structure Position
  • 7. Continued… Based On Contingency Model  Kelleher score high on the three variables.  Parker score low on these variables
  • 8.  Leader – Member Exchange Theory oKelleher did not believed in “in- grouping and out-grouping”. oLess interaction with out-group by Parker
  • 9.  Contemporary Model 1. Transactional model 2. Charismatic model o Kelleher, a combination of both models o Parker belongs to Transactional model
  • 10.  Transformational Leadership Model o Kelleher possessed all the three variables o Parker possessed only Intellectual stimulation variable
  • 11. Recommendation  Gradual change in leadership  Selection of the successor 1-2 years before the retirement of Kelleher
  • 12. Change in Culture  Kelleher’s time ◦ People oriented ◦ Informal ◦ Nurturing ◦ No distinct level of hierarchy ◦ Flexible ◦ No employee restlessness
  • 13.  Parker’s time ◦ Lack of communication between management and employees ◦ Formal ◦ Lack of flexibility ◦ Conflict with labor unions on working conditions and pay. ◦ Employee began to disassociate themselves with the culture
  • 14. Analysis Types of organization culture Clan culture Entrepreneurial culture Bureaucratic culture Market culture Flexible Stable Internal External
  • 15. Analysis  In Southwest airlines they had Clan Culture  On basis of performance Southwest had a Strong Culture oManagers and employees share common values and methods of doing business.  There was a shift towards Market Culture
  • 16. Recommendation  Cultural committees should work more actively  Programs to encourage interaction between employees at all levels.  Greater part of senior management in socializing with the employees.
  • 17. Motivation Under Kelleher • Employees did not mind doing work out of there sphere. • Employees went out of their way to improve customer service • Sense of belongingness in the company
  • 18. Under Parker  Union unhappy with work and pay  Demanded remuneration for “extra work”  Flight attendants felt secondary to pilots
  • 19. What Went Wrong?  Motivation and lack of it.  Southwest employees drew motivation from Kelleher.  No Longer Industry Outsiders.
  • 20. How is Motivation Important  The willingness to exert high levels of effort towards organizational goals conditioned by the effort’s ability to satisfy some individual need.  The Motivation Process NEEDS DRIVE INCENTIVE
  • 21. Theories Of Motivation  Herzberg’s Theory
  • 22. Equity Theories  Equity  Inequity Person’s Outcome Person’s Input Other’s Outcome Other's Input Person’s Outcome Person’s Input Other’s Outcome Other's Input Person’s Outcome Person’s Input Other’s Outcome Other's Input
  • 23. Recommendations  Parker should connect with his subordinates.  Learn from Kelleher( e.g. watch his videos).  Informal meets within the organization- interaction.
  • 24. Customer relations  Post 9/11 security measures took a toll on first-come-first-serve seating  Refusal to take ticketing enquiries over e-mail
  • 25. Analysis  First-come-first-serve seating a perceived benefit for the customer.  Lightly staffed airport systems resulted in delays in purchasing tickets. Not accepting email enquiries caused wastage of time.
  • 26. Recommendations  Incorporating a system to make seating more structured.  Utilizing staff in the best possible way to ensure minimum delays in ticketing.  Accepting email enquiries.
  • 27. Rising Cost  Rising fuel prices  Early retirement plan accepted by more than thousand employees. Expenditure on recruitment.  Higher labor cost as a proportion of operating cost  Hedging position due to expire in 2005
  • 28. Analysis  Cost was a big competitive advantage  But it was losing its cost advantage and also the market to other low cost airlines.
  • 29. Recommendations  Needs to adapt to new costs and strategize its future policies.
  • 30. Rising Competition  JetBlue and Air Tran- 2 main competitors  Jet blue offered better facilities like more legroom, comfortable leather seats, set back television sets and free internet  Had best record for punctuality and baggage handling  It was a non union airline
  • 31. Analysis  Because of increase in number of competitors in the airline industry and better services being provided by the other market players SW airlines was losing its market share.
  • 32. Recommendations  Update itself with market trend and improve on its facilities to retain its old customers and attract new ones  Improve its customer services like baggage handling, boarding on time  Regular feedback from customers
  • 33. Can Kelly Replace Kelleher?  2004 : Gary Kelly joined as new CEO  Kelly would be compared to Parker not Kelleher  Kelly should learn from Parker’s mistakes.
  • 34. THANK YOU

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