SOUTHWEST AIRLINES

Geovanni Y. Gopar Reyes Chad Demos Josh Farrell

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Managing for Success

Many companies have tried to figure how Southwest managed to create such a loyal and productive workforce. Founder, Herb Kelleher says that other companies visited looking for the secret in how Southwest hired, trained and motivated people. In a recent interview he said it was about paying “personal attention to each of your people.” Instead of a “formula,” he described the Southwest approach as a “huge mosaic that you’re always adding little pieces to make it work. That means you have to empower employees and back them up.”

Southwest’s mission statement is communicated to all people and the statement is followed in the daily activities of the Southwest employees.

Southwest believes in two types of communications among its people: (1) frequent and timely; and (2) problem-solving.  Management to employees: “We’ve got your back

• The business strategy of Southwest Airlines is to devote significant monies to training and development.

• Each major work area has its own training department – mechanics, in-flight activities, customer service, operations and reservations.

• Even though Southwest is the most unionized airline, their work environment is free of rigid rules.

10 Organizational Relationships

Outstanding business leadershipCredibility and Empathy are SWA’s desired traits.

Invest in front-line leadersSufficient numbers of leaders to work with individuals.Leaders are taught how to coach and give feedback.

Hire and train for relationship excellenceSWA consciously hires people who are good with

teamwork.Trains employees to enhance teamwork and

relationships.

Organizational Relationships (cont’d)

Use conflicts to build relationshipsSWA actively identifies and resolves conflicts, growing

them into relationships.Bridge the Work-Family Divide

Environment structured like extended family. Goals and knowledge shared freely.

Create positions that span boundariesBuilds relationships between distinct parts of the

organization.Centered on shared goals and respect.

10 Organizational Relationships (cont’d)Use broad performance metrics

Focus on fixing issues than blaming particular departments.Have highly flexible job descriptions

Employees required to assist where ever needed, if different job.Partner with the unions

SWA most unionized U.S. airline. Works with instead of against unions.

Build the supplier relationshipsAllies with air traffic control and airport authorities.Does not ally with other airlines.

In comparison, a company like Southwest Airlines is heavily unionized making it a rarity amongst low-fare, low-cost business models. The union provides greater benefits and higher salaries for employees which directly increase the operating costs; something that a company such as Ryanair would do anything to avoid.In 2012, 29% of Southwest's operating expenses went to employee salaries, wages, and benefits. On the other hand, Ryanair employs less than 8,400 people, and only 9.5% of Their total operating costs went towards staff.

The corporate culture makes Southwest Airlines unique, says Elizabeth Pedrick-Sartain, a longtime employee who was named vice president of the People Department. "We feel this fun atmosphere builds a strong sense of community. It also counter-balances the stress of hard work and competition.”SWA is one of the growing number of American companies that recognize how humor enhances employee management, customer service and profits.

Business Environment

The factor which makes the previous 10 concepts work. Shared goals

1. Safety

2. On-time performance

3. Creating satisfied customers

Shared knowledge

All employees know the general work flow, as well as how their work affects other sections specifically.

Mutual respect

Employees do not pin blame on those lower in the hierarchy. Instead, everyone is encouraged to find a solution to problems.

A LITTLE ABOUT SOUTHWEST AIRLINES

It was founded on march 16, 1967 and adopted the name southwest airlines in 1971.

Southwest Airlines has been operating for 44 years. It is an industry low-cost carrier headquartered in Dallas,

Texas. Known overall for its exemplary customer service Southwest Airlines has nearly 46,000 emplyees. Operates more than 3,400 flights daily and serves 94

destinations across the united states and six additional countries.

Southwest Airlines provides one-class service on its flights.•There are no assigned seats•Southwest doesn’t charge for the first two checked bags, and there are no reservation change fees, although fare differences may apply.•Aircraft are equipped with satellite-based Wi-Fi providing gate-to-gate connectivity while flying over the United States.•Passengers who purchase Business Select fares enjoy priority boarding, a premium drink coupon, double points per dollar for Rapid Rewards, and Fly By Lanes for priority security checkpoint access.•Passengers can purchase Early Bird Check-In for a fee, which will automatically check you in 36 hours before departure and improve your seat selection options upon boarding.

Southwest Airlines Class of Service

HOW A HAPPY EMPLOYEE TREATS PASSENGERS ON AIRPLANE.

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TO CONCLUDE:

Southwest Airlines differs from other companies mainly it the way which they treat there employees.

They take the time to listen as well as train their employees because they know it will be Beneficial to the company overall.

There way of organizing there company is without a doubt better than the majority of the companies that are out there.

QUESTIONS?