Effectively Using an Integrated Employee Engagement Program
Running head: EFFECTIVELY USING INTEGRATED EMPLOYEE 1
PAGE 8EFFECTIVELY USING INTEGRATED EMPLOYEE
Effectively Using an Integrated Employee Engagement Program
Marilyn Field
Abstract
A companys level of employee engagement is a reflection of its
core values; while at the same time reflects a fulfilling and
positive job-related state of mind that is characterized by the
resilience and energy of its workers. The following report is an
analysis of a case study conducted by Hallowell (1996) to determine
whether Southwest Airlines organizational capabilities and employee
needs are linked to competitive advantage. An examination of the
data presented in the Southwest Airlines study reveals a
significant level of employee commitment through the engagement and
hiring of workers who fit the Southwest standards. Effectively
Using an Integrated Employee Engagement Program
For the last several years Southwest Airlines has been awarded
as one of the best companies in which to work by Fortune Magazine.
There is an extensive list of awards and achievements attributed to
Southwest Airlines including Forbes 2008 most reliable airline,
best in customer service, and the number one friendliest airline to
fly in 2008 by Time Magazine (Triangle Business Journal, 2008; Time
Magazine.com., 2008). A review of the literature revealed that much
of Southwest Airlines continued success is due to their
effectiveness in engaging their employees. The Southwest Airline
employees reflect the organizations culture as one with committed
workers who strive to maintain the companys reputation as a leader
in social responsibility. A case study was conducted by Hallowell
(1996) to analyze the sources of Southwest Airlines competitive
advantage. Hallowell attributes the highly acclaimed airlines
success to the high value place on its employees. Hallowells 1996
case study of Southwest Airline was illustrated within a frame work
of particular variables with the first being that the airline value
is a product of meeting the employees needs on a satisfactory
level. Employee needs satisfaction is a very important variable
when one considers that Southwest Airline is comprised of
approximately 35,000 employees working together with the aim of
flying their valued Customers to their destinations across the
United States (69 cities in 39 states) (Kelly, 2010). Hallowell
used value analysis to study Southwests competitive strategy. Value
analysis breaks down which variables play a role in where value is
created. It is based on Porter (1985) Game Theory, which focuses on
how individuals interact (Levine, 2004.). The results of Hallowells
study revealed that employees are motivation from the employers
encouragement of behavioral norms and organizational values. The
second comprehensive variable Hallowell (1996) studied was
Southwests strategy for having one of the most successful airline
stocks. This raises the question as to how employee engagement
plays a part in stimulating shareholders commitment of investing in
Southwest stock. The Southwest Airlines organizational culture has
encouraged its workers to have fun on the job. This is a wellness
approach which has led to the companys high degree of productivity
and low turnover. By suggesting and encouraging a positive
experience for the Southwest employees, the management displays
significant value for employees, which is converted into customer
value and shareholder value. This value earning process forms a
circle of capturing value, creating value, and converting value
beginning with the employees (Hallowell). With the present economic
turmoil, Southwest Airlines Chief Executive Officer Kelly has had
to make recent cuts; affecting the companys historic low-cost
initiatives (i.e. making short trips between cities and ownership
of jets) (Schlangenstein & Hughes, 2010). Southwest answered
though economics with the addition of 138 airplanes (AirTran); The
addition of AirTran will allow them to satisfy their briefly
dormant, but always present, inclination for growth (Schlangenstein
& Hughes, web article). Thus, Southwest increases employee
motivation, which in-turn creates value, and converts that value by
employing operating processes and encouraging behavioral norms
which reduces costs and increases productivity essentially
capturing the value leading to Southwests competitive advantage
(Hallowell). According to Patterson, Brenny and Maxfield et al.
(2008), preparing for setbacks builds resilience by the company
internally; using setbacks as guides, instead of putting on the
brakes help to refine their strategies. One of the most unique
characteristics of Southwest Airlines is that it motivates the
employees with stimulating and enjoyable recognition programs
(Southwest.com, 2010). Rewards and recognition of the day-to-day
work achievements play a vital role in retaining and attracting
employees at Southwest Airlines. This strategy provides recognition
for workers unique qualities and individualized appreciation.
Southwests employee recognition programs contributes to the high
moral maintained in the organizations culture (World at Work,
2001). According to Hallowell (1996), an employee is recognized
almost every hour for large and small achievements on a daily basis
at Southwest Airlines. The Southwest case study demonstrates how a
focused human resource department portrays organizational culture
and values, and how their use of employee engagement tools is
aligned with the companys competitive position. Employees who are
actively engaged offer commitment and loyalty to the organization
within which they are employed, and is indicative of Southwest
Airlines. With this commitment Hallowell (1996) makes the analogy
of a person feeling better about purchasing a piece of pie for six
dollars, when they feel the pie is worth eight dollars. The same
concept applies to someone who can fly Southwest at the same price
as its competitors but have better service. Once again evidence of
converting employee value to customer value. Hallowells (1996)
study makes another important point regarding employee engagements
correlation with Southwests competitive advantage. Passengers
moving between gates (destination and departure) are accompanied by
Southwest employees, as such; these workers affect each customers
experience with the airline (Hallowell). In the airline industry
employee engagement has a ripple effect starting with top-level
management and pilots to the baggage handlers, ramp agents, and
flight attendants. Each customers experience with these employees
will directly affect their willingness to pay (Hallowell). For
instance, Kelly (2010) in an interview with Spirit Magazine, gave
an account where a passenger forgot her glasses at her residence,
the passenger could not retrieve the glasses without missing her
flight; the flight attendant offered the passenger her own reading
glasses, and in-turn the flight attendant was recognized by her
peers, and management for friendly customer service. She was
publicized as Southwests Star of the Month (Kelly). This strategy
demonstrated the importance of employee engagement and Southwests
ability to maintain its competitive advantage.In the case study of
Southwest Airlines by Hallowell (1996); the author recognized the
airlines interviewing techniques as a strong point in the companys
overall success. Hallowell stated that the screening process by
Southwest human resources eliminates uncaring potential employees
by noting self-centered responses, and quickly separating the
majority for those less likely to fit the standards of the
organization. Miles and Mangold (2005) stated that Southwest
Airlines uses employee branding as a method of engaging employees.
Employee branding is the process by which workers internalize the
Southwest Airline brand and project its healthy aspects to the
public (Miles & Mangold). The authors provide further support
of Hallowells (1996) study in that they found employee branding
helps Southwest achieve a competitive advantage over other
organizations in the industry. Southwest.com (2010) gives the
example that LUV and FUN ideology is embedded into their employees
by permitting them to dress up on Halloween; have a casual dress
code in the summer months, and by providing a teaching video on the
Southwest Airlines Shuffle Dance. According to Hallowell, CEO Gary
Kelly dressed up as a bunny for Halloween and served Easter eggs to
the employees. He went on to say that great comradery was
stimulated just by stirring up it is not Easter controversy
(Hallowell).
The third variable researched in the Southwest Airline case
study, is the organizations capabilities to create value.
Hallowells (1996) study indicated Southwest has established
processes and internal structures that influence the employees to
accomplish specific organizational competencies allowing them to
adapt to changing strategic needs and changing customer needs
assessments. These competencies help Southwest Airline produce
superior quantity and quality of effort from employees (Hallowell,
p.10). One of the competencies Southwest defines as important is
the extension of LUV and FUN from the employees to the customers by
providing hassle-free flying, which is a direct result of employees
being actively engaged with the organizations culture (Hallowell).
An important aspect to consider is that there must be harmony at
the level of operations. Southwest has achieved harmony thought its
employee engagement (i.e. human resource procedures) leading to
operating procedure success reflecting Southwests organizational
culture of helping one another (Hallowell). The appreciation for
human capital is evident in reviewing Hallowells Northwest Airline
case study, along with a comprehensive literature review via the
internet and scholarly journal articles. Southwest Airlines meets
the cognitive and emotional needs of its employees, shareholders,
and customers by making them feel connected to the company. Their
LUV and FUN approach to employee engagement has enabled them to
create employee value and covert that value into customer value
resulting in the company capturing value. With the three variables
studied in Hallowells research, Northwest Airline is understood as
a leader in competitive advantage. References
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