South West Airlines - Research Paper Example

Culture and Organizations: South West Airlines Background to the organization and its environment South West Airlines is a US-based airline, which prides in being ranked as the world’s largest airline that charges relatively lower costs for its air travel, under the handbook of low cost airlines (Gross, S., & Schroder, 2007). In addition, South West Airlines operates a huge number of flights in a day, recording over 3,400 flights every day (Solomon, 2012). The airline was started in 1967, and serves as the largest domestic airline carrier, serving 41 states of the USA, and making flights to 84 destinations every single day within the USA. Initially established as the Air Southwest Co., the company operated its flights only within the city of Texas, and continued to do so until 1970, when it changed its name to South West Airlines. The airline initial operations were not smooth, since it faced legal litigations in court from other major airlines at the time, which challenged its legality to operate within the State of Texas. However, in a landmark ruling of the USA Supreme Court in 1970, the court upheld that it had a right to fly within Texas (Gross & Schroder, 2007). This was the beginning of a successful journey for the growth and expansion of the company to what it is today, employing over 46,000 employees, serving 41 states of the USA with several destination flights within the sates (Solomon, 2012). South West Airlines has its headquarters based in Dallas, Texas, whose mission is to give the customers a high degree of quality customer service (Solomon, 2012). The dedication to grant the customers of the company a high degree of friendliness and warmth, while priding in the service they offer to their customers. The organization also seeks to present its employees with a stable working environment, where talent is nurtured and diversity in the workforce through recruiting the employees from all races and ethnicities, as long as they have the talent and the qualifications embraced, to provide the employees with learning and personal growth opportunities. Concern, respect and caring attitude forms the fundamental basis of the culture of the South West Airlines. The company also seeks to serve the communities it engages with a sense of involvement and diversity, while providing business sustainability to the shareholders (Lauer, 2010). The company has future strategies of expanding regionally, to serve other markets that include Canada and Mexico. The South West Airlines operates in a competitive environment, where the participants in the airline industry are constantly striving to make profits. The challenges facing the company in its operating environment include competition from the other major industry players in the airline industry, the rising costs of fuels, the slow growth of the USA economy and the ever-rising inflation (Evans, 2002). All these environmental factors have served to make the business environment for the airline a major challenge. Nevertheless, with such challenges facing the South West Airlines, one factor has stood out as its single most strength; the South West Airlines organizational culture, which has allowed it to overcome most of these challenges and rise to become the giant organization it is today. An Introduction to the focus of the report The South West Airlines has emerged as the major focus of the airline industry, owing to its operating culture that has served to enable the organization grow and expand, in an industry that is so dynamic and unpredictable, where major giants emerges and collapses in unpredictable fashion (Wilson, 2004). There are various factors that account for the profit dynamism and unpredictability in the airline industry. First, the airline industry is wholesomely dependent on the economic performance of a country, especially for the domestic-based airline operators, considering that the economic situations of the individuals within a country determines their ability and preference of air travel, at the expense of the other means of travel, such as the road or rail (Lauer, 2010). Thus, when the economic situation of a country is better, the population is economically empowered and thus able to afford the requisite fees for air travel. The unemployment situation also plays a pivotal role in determining the fate of the airline industry, considering that it is only when the employment is high, that individual will be involved in the business of movement from one destination to the next as they go about their businesses, while others will travel for holidays and leisure, since they can afford it. This being the case, it therefore follows that the business of airline industry is externally focused, relying more on how the economy of a country operates (Harris, 2004). Nevertheless, amidst all these environmental factors that determines how well the airline industry will operate, it is the business of an airline company to establish strategies that will enable such a company to cope with the dynamic economic situations, and manage to reap the benefit of its operations in the industry, regardless of the way the economy changes (Gross & Schroder, 2007). This attitude has informed the business culture of South West Airlines, which has managed to remain profitable, in an industry where most participants are struggling to make some profit. The market capitalization of the South West Airlines exceeds the cumulative market capitalization of the other US based airlines (Hill, 2012). However, the most important aspect of the South West Airlines operations is that; it does not implement a formalized quality management program as does many other companies and organizations to enhance the quality of the product and service delivery to their customers. Contrary, the South West Airlines has adopted an organizational culture, which has enabled it to maintain consistent quality of services delivered to its customers. There are several components that constitute the South West Airlines organizational culture, which include low-cost service offering to its customers, maintenance of organizational diversity in the workforce make-up, minimal aircraft turn-around time and informal hierarchy system. South West Airlines is the first airline to promote a black pilot the rank of the chief pilot and have always enhanced employee diversity in the workforce through recruiting the employees from all races and ethnicities, as long as they have the talent and the qualifications embraced (Lauer, 2010). However, the most fundamental aspect of the South West Airlines organizational culture is the employee management practice, which has ensured that there has never been any employee layoff or strikes in the history of the company, despite there being numerous occasions which would have justified such occurrences (Gross & Schroder, 2007). Therefore, this analysis seeks to investigate the organizational culture of the South West Airlines, with a focus on the employee management practice of the company. An explanation of the theoretical framework used to analyze the organization The analysis of the South West Airlines’ employment management practice will be undertaken through applying the Edgar Schein's organizational culture model. The South West Airlines has adopted an exceptional corporate culture that has posed a major threat to many of the other airline operators in the US industry, to the extent that the operators are contemplating merging their operations, so that they can effectively compete with the company (Lauer, 2010). It is this competitive advantage that has prompted the application of the Schein's organizational culture model, to specifically analyze the employee management culture of the company. This model was developed by Edgar Schein in 1988, applying three major concepts, namely artifacts and behaviors, espoused values and assumptions. The model identifies three distinct levels in the organizational culture, delving deeply into the degree to which the cultural phenomena are visible to an external observer, who is not part of the organization (Schein, 1992). Schematic Diagram of the Edgar Schein's organizational culture model; source: Schein, 1992 According to Schein, culture is one of the complex aspects for an organization to change. Therefore, the culture of an organization does not only reflect a guideline to its operations, but also a concrete part of the organization, which cannot be eroded easily (Schein, 1992). Schein focuses the culture of an organization from the standpoint of an external observer to the organization, through applying three cognitive levels of the organizational culture. Artifacts This refers to those attributes of an organization that can be seen, felt and heard by an observer, who is not induced or initiated to participate in the organizational culture’s assessment. The elements of the organizational artifacts include the visible items such as the organizational offices and how they are organized, the organizational members and how they dress and interact with each other or even with the outsiders, as well as the company mission statements and the slogans (Schein, 1992). Thus artifacts represent the behavioral, the verbal and the physical aspects of an organization, which depicts its adopted cultures to the outside world. The myths, the stories and the language of the people within an organization also play a major role in telling the culture of an organization. Espoused values This is the second level of the cultural concepts as presented under the Edgar Schein's organizational culture model, which represents the professed culture of an organization, by its members (Schein, 1992). Such members’ cultural aspects may include the shared preferences of the organization, regarding the issues of customer service and customer loyalty (Schein, 1992). The espoused values, as an aspect of the organizational culture analysis, entails the display of the trustworthiness and supportiveness of the organization by its individual members, and the level of commitment they show towards enhancing the success and achievement of an organization’s missions, goals and objectives. Such values are obtained through the profession of the organization’s members. Organization’s tacit assumptions This forms the third level of the Edgar Schein's organizational culture model, which touches of the most unseen and the less cognitive and less conscious aspects of the organizational culture, which drives the organization as an invisible hand, through less open discussions and displays (Schein, 1992). The assumptions for the unspoken organizational rules are not often discussed by the organizational members, but are learnt and effectively applied as the organizational norm, based on what works well for the organization. The assumptions are well integrated into the office system of the organization, and are difficult to identify from within. They could be supplementary to the espoused values of the organization, or even contradictory to the same. They may include the unconscious behaviors that the members of the organization may display, which could be different from what they profess (Francesco, 2005). Explanation why Edgar Schein's organizational culture model framework is the most suitable In the analysis of the employee management of the South West Airlines, the Edgar Schein's organizational culture model emerged as the most appropriate framework, considering that it analyses the organizational cultural aspect in three levels. Thus, through the application of this model as the framework for analyzing the employee management practice of the South West Airlines, it will be possible to understand the observable aspects of the employee management practice applied by the company in form of the cultural artifacts, the espoused values of the employee management practice as obtained from the employees themselves regarding their trustworthiness to the organization, their commitment and support towards enhancing the achievement of the organizational goals, missions and objectives, and the unconscious aspects of the employee management practice, which are applied as part of the organizational culture (Black, Gregerson , Mendenhall , Stroh, 1999). This will enhance the understanding of the employee management practices applied by the organization, through the creation of deeper insights, such as unveiling the unconscious cultural aspects of the employee management practices applied by the organization, which would otherwise be difficult to unearth, using any other framework. Analysis of the Employee Management Practice of South West Airlines The creation of a happy work force has made it possible for South West Airlines to become more productive, efficient and highly cost effective, making it possible for the company to consistently grow, expand its operations and increase its profitability (Lauer, 2010). The success story of the South West Airlines is purely pitched on its work force, who works gladly, reward the company with high productivity, and the company recognizes their efforts through even higher rewards to the employees. The Chairman Emeritus, and former CEO of South West Airlines, Herb Kelleher, considers employees as the determinants of the organizational fate, since their noble interaction with the customers and their commitment to their duties have made the organization reach where it is presently (Dowling et al, 2008). Thus for South West Airlines, employee motivation and satisfaction is the fundamental principle of running a service business, which makes it possible to overcome all the other environmental business challenges, including the competitive forces (Dowling et al, 2008). At this point, it is common to ask the question, just how does South West Airlines achieve the high employee motivation, satisfaction and consequent productivity? This can effectively be answered through applying three cognitive levels of the organizational culture, as provide for under Edgar Schein's organizational culture model framework. Artifacts of South West Airlines’ Employee Management Practice The initial selection of the flight attendants for the South West Airlines was done by a committee that selected female air hostesses who were attractive and cheerleaders, and was dressed on hot pants and attractive boots (Lauer, 2010). This attractive dressing code has been maintained by the South West Airlines, which ensures that its employees are uniquely dressed with attractive attire, though not necessarily uniforms. The dressing code serves a major identifier of the South West Airlines workforce, which has been integrated in its culture. The customer service creed for the South West Airlines is yet another aspect of the organizations artifact that displays its employee management practice. The company has adopted a customer service creed providing that the organizational members do to others, as they would want done to them. In line with this concept, the organizational mission states that the employees will be treated with the same concern, respect and caring attitude that they are expected to share externally with the South West Airlines’ customers (Lauer, 2010). This way, the creed bestows high respect, concern and care to the employees, which the South West Airlines has consistently granted them. The organization of the company offices is yet another artifact feature that demonstrates the culture of the organization, since the organization has four story building office, divided into a 24-hour operation management unit, a customer services support unit and a training unit for the employees (Solomon, 2012). This organization clearly shows the culture of the organizational care. Concern and commitment to quality service provision to customers through addressing their issues under the customer service unit, while showing their care for employees by dedicating a training unit for developing and growing their abilities and work experiences. Further, financial rewards, and training and development of the employees are fundamental employee management practices forming the culture of South West Airlines. No wonder the company has registered 31 consecutive years of profitability and 51 straight quarters of profit increases leading to the period December 2011 (Solomon, 2012). The other aspect of South West Airlines’ employee management practice is the interaction of the organizational members. The interaction of the company and its employees is one full of respect, with less bureaucracy involved in the employee management practice, making it possible for the employees to directly access and address issues with the company president. The interaction of the members of the company with the outsiders is also ranked among the best according to the Forbes ranking, with the employees of the company giving the customers the best of the customer services and cordial relations with the airline passengers and other stakeholders. This has enabled the company to be named among the America’s Top 10 highly admired corporations (Solomon, 2012). The corporation is admired by both the customers, the business community and the employees, owing to its diversity in ensuring that the employees are always highly motivated, trained and paid, while being granted numerous opportunities to exercise their creativity and innovation to make the organization better. Freedom defines the relationship between the organization and its employees. The stories and the myths about South West Airlines, which is part of artifacts under the Edgar Schein's organizational culture model framework, narrates the success of the organization, from a non-profitable small company in the 1970-1972 period, to the highly profitable organization in modern day (Gross & Schroder, 2007). Espoused values of South West Airlines’ Employee Management Practice The professed culture in the employee management practice of South West Airlines is that of commitment, support and loyalty to the organization, with all the employees of the organization always striving to help the organization achieve and even surpass its targets financially and even in the creation of the organizational customer base (Lauer, 2010). The employees are committed to giving the customers of the organization the best of the customer service, always striving to ensure that the journey takes the minimum time possible. The employees are motivated through good pays and freedom at workplace to interact even with the high management, while being allowed to exercise the talent, creativity and innovation in customer service offering. No wonder therefore that the aircraft turn-around time for the South West Airlines aircrafts has been reduced to an average of 20 minutes, while that of the other airlines stands at 1 hour (Solomon, 2012). Such achievements cannot simply be obtained through the organizational leadership, without the commitment of the employees themselves, who are the ones directly involved in the day-today running of the business of the organization. It is the commitment, the loyalty and the supportiveness of the employees that has enabled the South West Airlines to make high gains in the airline industry, both in profitability and sustaining the goodwill of the customers (Sparrow, 2004). The employees of the organization are proud and satisfied with their employers, and they always pledge their support to the achievement of the South West Airlines goals, objectives and missions, which they have always achieved and even surpassed. Tacit assumptions of South West Airlines’ Employee Management Practice This represents the third element of the employee management practice of South West Airlines, which projects the excellence and tolerance of the employees of the organization, as an aspect that is not openly discussed in the organization, but which is a fundamental principle entrenched as a culture of the organization (Lauer, 2010). The concept of employee excellence management practice, which is only notable as the culture of the organization through deeper analysis of the organization with its employees can be exemplified by the employee behavior and response, that has seen the employee avoid strikes or demonstrations throughout their tenure in the company (Deresky, 2008). While it could naturally be expected that the employees could either engage in strikes and demonstrations or even leave the organization for others, in protest for the lack of funds to pay their salaries, the employees exemplified their hidden element of excellence and tolerance through remaining in the organization, and further striving to help it recover and grow to profitability, an effort that has been rewarded by the growth of the organization to the giant it is today. The company was among the few that earned profits during the financial crisis period 0f 2007 to 2008, due to the loyalty and goodwill of the customers, who continued to do business with the company. Customer loyalty is enhanced through friendly service and the efficiency and timely of the flights. The loyalty of customers is also cultivated through rapid rewards points which can then be redeemed for low priced transport to destinations. Thus, the tacit assumption applicable in the company is that excellence and tolerance are mandatory aspects of employee management practice. This explains why South West Airlines has never engaged in employee layoff in its history (Grey, 2005). Conclusion South West Airlines is one of the most admired organizations of modern day, which has grown from a depressing and challenging past to a giant in the US airline industry, which consistently makes profits when the other industry participants are struggling to survive. While the organization has adopted several concepts to remain competitive and grant its customers quality services, such as the maintenance of organizational diversity in the workforce through recruiting the employees from all races and ethnicities, as long as they have the talent and the qualifications, considering it was the first airline to promote a black pilot the rank of the chief pilot, the adoption of minimal aircraft turn-around time and informal hierarchy system, its employee management practice form the fundamental principle that has enabled the company to achieve its admirable status. The employees of the South West Airlines are committed, loyal and supportive to the organization, while adopting the concept of tolerance and excellence as their operational guideline. This way, they have helped propel the organization to rank among the most successful organizations in the world. Recommendation While South West Airlines has emerged as a giant in the airline industry, which is able to maintain over 30 years of profit making, competition is one of the major threat facing the company, considering that many airlines are even trying to merge, so that they can effectively compete with the company. Therefore, while the company has managed to effectively serve the USA domestic market, expansion into a regional and even international airline is recommended for South West Airlines, considering that it already has competent manpower and sufficient resources to venture into regional and international markets. This will serve to expand the market for the company, while also widening the sources of its revenue, in case the domestic market may become highly competitive in the future. References Black J, Gregerson H, Mendenhall M, Stroh L (1999) Globalising People Through International Assignments. Addison Wesley. Deresky, H (2008). 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