Southwest Airlines Presentation
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Southwest Airlines Co. (NYSE: LUV) is an American low-cost airline. The airline has its headquarters on the grounds of Dallas Love Field in Dallas, Texas. Southwest is the largest airline in the world by number of passengers carried per year (as of 2009) Southwest maintains the third-largest passenger fleet of aircraft among all of the world's commercial airlines. As of May 3, 2009, Southwest operates approximately 3,510 flights daily. Southwest Airlines has carried more passengers than any other U.S. airline since August 2006 for combined domestic and international passengers according to the U.S. Department of Transportation's Bureau of Transportation Statistics. Southwest Airlines is one of the world’s most profitable airlines, posting a profit for the 37th consecutive year in January 2010.
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![FOUNDER ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Herb Kelleher the founder of Southwest airlines with replica of planes owned by the company.](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
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Southwest Airlines Way
This book examines how Southwest Airlines, the largest carrier of passengers in the largest market in the world has become the envy of financial performance, customer, and employee satisfaction for the airline industry. For those of us who are involved in Organization Development or Human Resources and toil under the belief that people make a bottom line difference, this is our book. For leaders this is also your book, the lessons learned at Southwest are transferable not only to the airline industry but to any industry. A word of caution, the book is based on an academic/statistical study of the airline industry and reported more as an academic treatise than a captivating book. Don't let the style of writing get in the way of the important message:
Southwest's most powerful organizational competency--the "secret ingredient" that makes it so distinctive--is its ability to build and sustained high performance relationships among managers, employees, unions, and suppliers. These relationships are characterized by shared goals, shared knowledge, and mutual respect.
Over time Southwest Airlines has developed 10 organizational practices to facilitate coordination among 12 distinct functions: pilots, flights attendants, gate agents, ticketing agents, operations agents, ramp agents, baggage transfer agents, cargo agents, mechanics, fuelers, aircraft cleaners, and caters by building relationships of shared goals, shared knowledge, and mutual respect. The heart of this book is the description of these 10 practices and how managers in any setting can implement them to improve their business performance.
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Southwest Airlines: Organizational Development
Name
University
Course
Date
Running head: Southwest Airlines: Organizational Development
1
Southwest Airlines
Organization development is ways in which company strategies aiming at overall organization’s efficacy. The cut-throat competition of the current times in the service industry has made it important for all the service organizations to launch innovative strategies, taking into consideration the processes, people and the physical evidence that can differentiate their services from their main competitors (Rothwell & Sullivan, 2005).
This study will present different approaches that are responsible for the development of the Southwest Airlines Company. For any organization to achieve its objectives there must be essential strategies that are put in place to ensure its development. Various approaches aimed at organizational development should be formulated by the management and then implemented towards the process of staff management.
The main objective of this paper is to highlight the relevant strategies of Southwest Airlines that has helped it to produce a successful business model in the airline industry that became a benchmark for others to follow. The aim of this paper is to establish that if a firm gives significance to its employees, it is better able to serve its customers as the employees will perform better and provide up to the mark services.
Southwest airlines are considered a major airline in the United States of America and are the world’s low-cost airline with it’s headquarter located in Dallas. In July 2016 the company’s media website that the airline is operating with more than 50,000 employees and around 3,900 departures in one day when the traveling season is at its peak (Swamedia, 2016).
The same data suggest that the airline has services to more than 98 destinations in the country and more than seven in foreign countries with the service provisions to three main airports in Cuba are expected to begin its business operations this year in 2016 (Swamedia, 2016). The airline is considered to be the largest operator of the Boeing 737 aircraft across the world and more than 700 are still operational. This makes an average of six Boeing 737 flights per day.
Factors that have contributed to the development of the southwest airlines
The Southwest Airline is an outstanding example of a service organization that has clearly defined its main purpose of the business; is persistent upon its business values and the attitudes derive from the business purposes and design the correct business model that is able to support the purpose of the business. The Southwest Airlines promises its customer its dedication to providing the highest quality to its customers and equally good customer service which is delivered with individual pride, perfect spirit, hospitable behavior and warmth in order to deliver their promised service to .
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Mission and Goal
Southwest has its mission statement since January 1988 as following: “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”. The company uses a welcoming approach to deal with customers and employees, utilizing great customer service to deliver the best the industry can have. Therefore, to differentiate itself from other airlines, Southwest places a large dedication to its employees, giving them authority to make the necessary decisions to better assist customers with all the comfort needed. This strategy is key for Southwest to provide respect and loyalty for customers.
By following a simple goal: “A primarily short-haul airline that flies directly from city to city, with just one type of plane - the Boeing 737 - and the lowest costs”, Southwest has its horizon set, making sure to deliver a good service that excise “luxurious” rivals to gather market share, increasing profitability customer value.
Short/Medium-Haul
Southwest Airlines has their strategy focused on short/medium flights across the U.S. They participate in an extremely competitive market, where airlines are constantly hunting for competitor’s market share. Southwest uses different approaches to differentiate itself from the market. By providing good customer service, quick airplane turnovers, no baggage fees, low tickets price, efficient operations, and a great work environment, the company is able to maintain airplanes capacity in desired levels.
Connecting airports with a point-to-point strategy has allowed Southwest to provide service at lower costs. The choice of only using Boeing 737s, and training all the personnel to turnover the airplane in a fast and efficient manner, brings efficiency and pleasure to customers that enjoy a wider range of flight times.
Customer Service
Southwest’s hiring process is one of the strongest points that the company has been focusing to deliver superior satisfaction to customers. Employees are not only assessed on their qualifications and experience, but also on the attitudes they bring to their positions (Campbell, 2010). The process concentrates on prospective employees that fit the service culture of the company. This procedure ensures Southwest that when their newly trained personnel is out to perform, they will create constructive relations to customer requests based on their excellent abilities and passion to work. Southwest believes that training is important and crucial to deal with demands on ground, but abilities and high-class social skills are top-not on the company’s preferences.
By providing an example of what means to be “customer oriented”, Southwest delivers a sense of a friendship that can be perceived by their workforce. The company takes different approaches to support that mentality. Clients receive birthday cards and event inv.
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