Southwest_Airlines

Southwest Airlines Motivational Profile “Wanna get away'” If the answer to this question is yes, by researching the background of Southwest Airline, many people will find that they are just one of over one-hundred million annual passengers who share that same feeling. By looking into a brief history of the business, peering into the products and services they offer, and eyeing the financial records of this billion-dollar company for the last five years, people may better understand the strategies used to keep the roughly 35,000 employees happy motivated.. Founded by Rollen King and Herb Keller, and beginning as a small airline in Texas in 1973, Southwest Airlines still remains one of the youngest fleets in the nation among the major airlines in the industry (Southwest, 2010). For 37 years, the company has climbed consistently to become one of the largest and ranked number one for the past 17 years. As of June 30, 2010, Southwest operates 544 Boeing 737 jets and leads the industry with the lowest amount of complaints. By offering satisfying products and services to both its customers and its employees, Southwest is constantly able to remain on top. Southwest provides over 3,200 flights per day at an average airfare of $131.87 per one-way ticket and offers flights to 69 cities in 35 states. Southwest offers on-line check-ins, click-n-save e-mails, and allows customers to make car, hotel, cruise, and vacation packages at Southwest.com. The company is named as “the only short-haul, low-fare, high-frequency, point-to-point carrier in America” (Southwest, 2010). Due to stock and shareholder incentives, Southwest employees own roughly eight percent of the company. Southwest Financial Information [pic] Figure1: Southwest Annual Report 2009 http://216.139.227.101/interactive/luv2009/ Southwest showed on their 2009 annual report that the company has experienced a net income decline since 2007. According to the chart above, it shows that Southwest’s annual income has been affected by the global economic recession. Although Southwest has reported a low net income in 2009, the company is determined to find ways to continue serving an excellent customer service. Southwest will battle the Great Recession with the company’s Warrior Spirits. Southwest will continue to focus on enhancing their triple bottom line —Our Performance, Our People, and Our Planet (Southwest, 2010). Southwest has implemented strategic plans to improve their revenues and to retain the company’s strong balance sheet. Southwest Airlines’ Corporate Culture and Management The mission of Southwest Airlines is the dedication of providing the highest quality of customer service that they delivered with a sense of warmth, friendliness, individual pride, and company spirit (Southwest, 2010). Southwest’s mission also encompasses their employees. Southwest’s mission statement for their employees affirmed that innovation and creativity are encouraged to improve the efficiency of the company (Southwest, 2010). In addition, the employees are like customers, respected and cared for by the company. Southwest Airlines has a flat organizational structure. A flat structure consists of few levels of management between the executive officers and the front-line employees (Stringfellow, 2010). Southwest has eliminated many of their unnecessary middle management to improve the company’s efficiency. Having less management should simplify the channels of communication within the company. Southwest’s chief executive officer (CEO) Gary Kelly and President Colleen Barrett believed that with a flat structure, head management would be able to serve the company’s stakeholders better and would be able to deliver excellent customer service (Breakingtravelnews, 2004). In addition, this would also strengthen the company’s leadership that would support the growth of the company. Customer service is one of the main priorities in Southwest Airlines. With a flat organizational structure, Southwest can easily oversee any issues that can affect their customers. Southwest has formed small functional teams to manage and reduce customers issues and complaints. One of the advantages of having a flat organization structure is to have an effective open-communication between upper and lower level management. Managers make decisions without having to await approvals from his or her boss. Southwest encourages their employees to be a leader and empowers them to solve customers’ basic issues (Bunz & Maez, n.d). Lower level employees, at Southwest, have authorizations to make certain operational decisions that do not have to involve managers when it concerns customer service. As a result, Southwest’s employees feel involved and motivated with decision-making. This fosters high morale and high job satisfaction among their employees. Moreover, creating a strong organizational culture would help the company build a strong trust among their employees. The company’s vision has to be fully implemented across the board and shared by all employees. Southwest believes that keeping both employees and customers happy is what makes the company successful. Motivational Strategies of Southwest Airlines Southwest Airlines motivates their current employees and those applying for a job position within the airline company. They use different motivational strategies. Once the applicant is in the career web page, he or she will come across Welcome Aboard the Flight of Your Life, Southwest, Not Just a Career a Cause (Southwest, 2010). The company is motivating the applicants and advising them that with Southwest Airlines, they are allowed to be creative, to dress casual, and to have fun in the job. They are also listing the types of benefits the company has to offer. Employees also enjoy the travel privileges and great benefits, such as medical and dental insurance, profit sharing, and matching 401 (K) (Southwest, 2010). With the travel privileges, the employee can enjoy free flights with Southwest Airlines. The employees’ travel privileges are extended to their spouses, eligible children, and parents. They can also fly free with Southwest Airlines. Other benefits offered for employees are discounted flights for traveler and participating carriers with a pass called the Southwest Airlines Pass Bureau. With the buddy pass, employees can share the freedom to travel benefits with friends. Employees also have the benefits for hotel, rental cars, and theme parks at discounted price. In addition to this great benefits that Southwest can offer their employees, they also have an amazing health package that includes medical, vision, and dental insurance for as little as $15.oo per month (Southwest, 2010). The company offers incentives like employee of the month and no application fee for applying with Southwest Airlines. Southwest Airlines offers quality program, such as No Limits Internship Program, that gives hands on business experience training in the field. With this program, employees will also experience what makes to many Southwest Airlines the best airline company in the sky. During the internship program, interns will be eligible for many benefits, such as Freedom to Flight, career development training, and FUN culture activities. During this internship program, interns will have the opportunity to mingle and chat with other interns and express their experience with others. Analysis Working for Southwest Airlines is not just a job it is a career. The service offered at Southwest at best is worth the money. They offer first-come, first served and their bags fly free policy seems to get the people on the plane. The employees are treated fairly for their hard work. They are offered incentives, such as career development classes, star of the month or employee of the month recognitions, freedom to travel, discounted flights, additional discounts, health package, and other benefits that include 401K. Southwest employees also give back to the community by offering their time through Culture Committees. Employee-led groups volunteer time to celebrate life events, plan fun events, and make southwest a fun place to work (Southwest, 2010). The company has an annual Chili cook-off featuring food, talent, prizes, and of course, chili! Moreover, Southwest has Spirit parties, which help promote cross-country fun in the field office locations. The company offers a state-of-the-art training facility, which provides professional and personal development for their employees. Southwest provides leadership training: and personal development, which offers classes on interviewing, public speaking, and everything in between (Southwest, 2010). The company encourages Moving around the Company: Southwest LUVs to promote from within to increase skills and company knowledge. Working for Southwest has many people very interested in becoming a part of the team. Conclusion The mission of Southwest Airlines is their dedication to provide the highest quality of customer service. They delivered that service with a sense of warmth, friendliness, great individual pride, and company spirit. The flat-structure Southwest has in place, which eliminates many of their unnecessary middle management, promotes effective communications among their employees. In addition, forming small functional teams at Southwest has helped the managers maintain and reduced customers’ problems and concerns. Having lower level employees involved in decision-making process gives that self- actualization and accomplishment feeling to the employees. References Breakingtravelnews.com (2004). Southwest Airlines Announces Re-Structure. Retrieved on October 21, 2010, from http://www.breakingtravelnews.com/news/article/btn200408051120123/ Bunz, K.U. & Maes, D.J. (n.d.). Learning excellence: Southwest Airlines’ Approach. Retrieved on October 21, 2010, from http://bunz.comm.fsu.edu/southwest.pdf Southwest.com (2010). Southwest Airlines Co. Annual Report 2009. Retrieved on October 26, 2010, from http://216.139.227.101/interactive/luv2009/ Southwest.com (2010). The Mission of Southwest Airlines. Retrieved on October 21, 2010, from http://www.southwest.com/about_swa/mission.html'int=GFOOTER-ABOUT MISSION Stringfellow, A. (2010, May 10). About Flat Organization Structure. Retrieved on October 24, 2010 from http://www.ehow.com/about_5087590_flat-organization-structure.html