Organizational Behavior Comparison Peanuts to Profits - Research Paper Example

RUNNING HEAD: ORGANIZATIONAL BEHAVIOR COMPARATIVE ANALYSIS – PEANUTS TO PROFITS Organizational Behavior Comparative Analysis – Peanuts to Profits Student Name School Date Organizational Behavior Comparative Analysis – Peanuts to Profits Overview on Southwest Airlines Southwest Airlines Co. or Southwest, a major domestic airline with point-to-point (flights fly direct to the destination) (Preston, 2007) and low-fare service, was incorporated in Texas and started its operation on June 18, 1971 (Southwest Airlines Investor, n.d.). From the initial three units of Boeing 737 aircraft plying Dallas, Houston, and San Antonio, all Texas cities (Southwest Airlines Investor, n.d.), it has grown with more than 537 units with services (Southwest Airlines Co., Profile, 2009) to 66 cities (We Weren’t, 2009) in 32 states (Southwest Airlines Co., Profile, 2009). It remains as one of the domestic carriers that provide the lowest fares and best overall Customer Service records (Southwest Airlines Investor, n.d.). Southwest’s care for persons is explicitly manifested by carrying LUV as its stock exchange symbol (Southwest Airlines Investor, n.d.). Rollin King and Herb Kelleher of Texas established Southwest 38 years ago with the vision of flying people wherever they want at the lowest fare as possible (We Weren’t, 2009). Its current average is flying 100 million passengers in a year at 3,200 times daily (We Weren’t, 2009). Its commitment to its employees can be gleaned when it dedicated one of its aircrafts, “Triple Crown One,” to its employees when Southwest received for its exemplary achievement of five successive annual Triple Crown awards (We Weren’t, 2009). It has also been rated with the lowest passenger complaints by the Customer Satisfaction statistics tracking of the Department of Transportation (We Weren’t, 2009). Blueprint for Success Southwest is successful on three fronts that a carrier should have since the 1980s industry deregulation: a) maintaining profitability, b) harmonious worker and labor relations, and c) customer satisfaction (Kochan, 1999). The company has fared above the rest on these fronts when the rest of the airlines struggled hard to attain them (Kochan, 1999). Southwest is depicted as the “best performer” in labor productivity (Preston, 2007, p. 2). Excellent labor productivity is inter-connected with company management, policies and culture. Southwest does not need to compete with any other airline on prices but merely focuses on its main competencies, which include its employees (Preston, 2007). With Southwest’s excellent performance, other airlines patterned their systems with Southwest’s business model and tried to follow its company culture (We Weren’t, 2009). Preston (2007) said that the business model followed by Southwest contributed to its success and high income that the competitors emulated its success model (Preston, 2007). For instance, United created the Shuttle that competes with Southwest on nine routes (Preston, 2007). It was reported that the cornerstone to the success of Southwest is its culture of flexibility, family-focused orientation and fun (Kochan, 1999). Employee-labor relations remain remarkably positive (Kochan, 1999). Table 1 Income Statement of Southwest (Source: Southwest Airlines Co., Income Statement, 2009). It has innovated on a number of schemes such as different fares for senior citizens, freight delivery within the same day, ticketless travel, airline webpage (southwest.com, DING! that provides hot offers to customers direct to their computers), and also the first corporate blog (Nuts About Southwest) (We Weren’t, 2009). The Triple Crown award is a hallmark of excellent customer service on: a) excellence in on time performance, b) baggage handling and customer satisfaction (Preston, 2007). According to Preston (2007), no other carrier has been able to receive an award on those three elements in a single month. With the use of a single aircraft model (Boeing 737), all personnel (e.g. pilots, crews) can be trained on any of their planes (Preston, 2007). The organization also uses an aircraft for an average of seven years, thus, causing less delay, good customer service and less maintenance issues (Preston, 2007). In 1994, it was the second profitable carrier keeping up with its basic success formula of “low prices, high service and low operating costs” (Preston, 2007, p. 2). When the rest of the US carriers had been losing, Southwest remains profitable. Table 2 Annual Loss and Earnings of US Airlines (Source: Source: Air Transport Association of America, Inc. Economics; Annual Revenue and Earnings, as cited in McCabe, 2009). United Airlines underwent a condition far different in the mid-1990s wherein it raked profit along with satisfied passengers and workers (Zajac, et al., 2000). Customers experience dissatisfaction with the service with luggage losses and being stranded airports (Zajac, et al., 2000). United embarked on a culture change with its new slogan, “Mission United,” and invested millions in personnel training (Zajac, et al., 2000, para. 16). While the efforts placed United from ninth to fourth place and cooperation between labor and management improved, the harmony did not last since the hard work of the workers that turned in profits were not translated to cash (Zajac, et al., 2000). In terms of the annual on-time statistics, the U.S. Department of Transportation placed it last for the last 14 years (Zajac, et al., 2000). The 1997 Christmas Eve chaos that diverted flights from O’Hare to Milwaukee, 800 passengers trapped took hours to deplane causing even a United pilot and attendant to complain (Zajac, et al., 2000). This showed lack of coordination among the departments and personnel of United and inability of the organization to handle extraordinary occurrences (Zajac, et al., 2000). Behavior Policies and Practices Southwest personnel are encouraged to subscribe to the “The Golden Rule” and treat everyone as they want to be treated (Southwest Cares, 2009). Moreover, the company is following the Living the Southwest Way (i.e. having Warrior Spirit, a Servant’s Heart, and Fun-LUVing Attitude) (Southwest Cares, 2009). Appropriate attitude, according to the hiring policy, that will thrive in the culture of Southwest is determined at the time of hiring (Srinivasan, 2005). Those that do not fit the criteria are not hired (Srinivasan, 2005). Behavior cannot be institutionalized, Southwest Chief Operating Officer Colleen Barrett said, therefore, the company seeks people who already possess a congruent behavior (Srinivasan, 2005). Staff at Southwest are hired or fired according to their consistent manifestation of “positive attitudes” (Pfeiffer, 2007, para. 18). Recruitment process begins with the interview by the employees (with focus on communication) and later a one-on-one interview (that evaluates attitude and view on service) (Srinivasan, 2005). The relaxation on the dress code (T-shirt and short pants) and customer-first attitude advocated by the Southwest president has contributed greatly in the exemplary performance of the employees (Astorga, 2002). A concrete illustration of this achievement is the ratio of one employee per 2318 passengers being carried by Southwest surpassing even major airlines (Astorga, 2002). It can be gleaned from the daily actions of employees the basic values of trust and interdependence which are essential in setting the groundwork in the development of their allegiance to the company (Creating and Managing, n.d.). All officers and managers are obligated to carry out the tenets of Goals for Success in their respective units (Kelly, Goals, 2008). United follows a Code of Business Conduct for all workers and managerial and executive officers (Code of Conduct, 2009). The Code enjoins employees to subscribe to government laws and regulations, as well as company rules and policies and ethical standards and report to the concerned person any violation thereof (Code of Conduct, 2009). Managers and supervisors, on the other hand, must uphold ethical conduct and foster a work environment that adheres to an ethical business conduct (Code of Conduct, 2009). They should be well-versed on all policies and legal requirements and undertake disciplinary actions upon violators of the rules and polices (Code of Conduct, 2009). Violators are subjected to sanctions or termination (Code of Conduct, 2009). Retaliation to any person who report actual or seeming violations is strictly prohibited by the company (Code of Conduct, 2009). Diversity and Equal Opportunity Southwest gives premium value to diversity and encourages a culture and workplace environment promoting such attitude (Supplier Information, 2009). Chart 1 Male – Female Employee Ratio (Source: Southwest Cares, 2009). It had 35,499 full-time workers in 2008 with 44 percent female and 28 percent minority. Southwest has created the People & Leadership Development Department to particularly recruit minorities and females to become part of the company’s manpower (Southwest Cares, 2009). Chart 2 Ratio of Minority Employees (Source: Southwest Cares, 2009). Identification and recruitment of minority and female applicants are done through job fairs, specials events, trade schools and other related venues (Southwest Cares, 2009). Southwest advocates equal opportunity for everyone (Southwest Cares, 2009). Discrimination and harassment from fellow employees or third parties on account of ethnicity, gender, age, sexual preference, disability, veteran status, religious belief, etc. are not tolerated by Southwest (Southwest Cares, 2009). The workers are held liable for maintaining an environment free of harassment, discrimination, threat, intimidation and hostility (Southwest Cares, 2009). Moreover, the company itself issued policies to enforce these objectives (Southwest Cares, 2009). Included in its Culture of Freedom is its liberal policy on GLBT (Southwest Cares, 2009). Southwest’s “Goals for Success” commits the organization in providing the best for the employees in working environment, benefits, opportunity for learning and personal growth (Kelly, Goals, 2008, para. 1). Southwest also affords affirmative action program for women and minorities as well as equal opportunity to everyone without regard to ethnicity, religious belief, gender, sexual preference, pregnancy, marital status, disability or veteran status (Kelly, Goals, 2008). Monitoring and evaluation of the procedures to ensure attainment of the Goals for Success rest upon the Senior Vice President Administration and Chief People Officer (Kelly, Goals, 2008, para. 4). Moreover, persons with disabilities and veterans (disabled or not) possessing special knowledge and skills are offered employment opportunity and advancement within Southwest (Kelly, Equal Employment, 2008). With equal opportunity, the company fulfills its leadership obligations to the employees and manages the personnel effectively (Kelly, Goals, 2008). The importance management placed upon culture is shown by the creation of Southwest Culture Committee by Colleen Barrett in 1990 with the aim of enriching the culture and spirit of Southwest as a family (Srinivasan, 2005). United is committed in providing equal treatment and employment opportunity regardless of age, sex, ethnicity, sexual preference, etc. and promotes diversity in the organization (Code of Conduct, 2009). Promotion, training and compensation are provided equally to everyone with full implementation of applicable employment laws (Code of Conduct, 2009). Personal Leadership and Management Characteristics and Preferences Managers who are made accountable for their actions and behavior are inclined to “more actively promote fairness” within the organization, Chris Long’s (organizational behavior assistant professor, Olin School of Business, Washington University in St. Louis) study revealed (Pfeiffer, 2007, para. 6). He added that they are responsible for creating constructive culture and should work on establishing impartiality and trust in the workplace (Pfeiffer, 2007). Southwest managers show that they care for the employees (Gittel, 2004). Frequent “relational coordination” is implemented that involves regular problem-solving interaction and communication carried along the lines of "shared goals, shared knowledge, and mutual respect” (Gittel, 2004, p. 3). The innovative management style enabled the company to maintain high-performance relationship with the employees (Srinivasan, 2005). It endeavors to provide stability in the organization, equal opportunity for everyone to learn and grow in the company (Srinivasan, 2005), appropriate salary and motivation to succeed (Southwest Cares, 2009). The employees are encouraged to innovate and be creative to enhance the effectiveness of the organization (Srinivasan, 2005). The company expects that the care, concern and respect it extends to the workers will be passed on by the workers to the customers (Srinivasan, 2005). The company’s mission statement includes workers as part of its business strategy (Srinivasan, 2005). With the overall treatment Southwest gives to the employees, the latter manifest loyalty and dedication to the company not present in other carriers (Srinivasan, 2005). Southwest management style is non-hierarchical and employee-centered (Miller, 2007). Hierarchical leadership tends to create unfairness although not intended (Pfeiffer, 2007). Each of the CEOs of United offered different visions for the airline and each with a different focus (Zajac, et al., 2000), thus, affecting the corporate culture already in place. Successive changes in objectives make an organization unstable with changes introduced different from the earlier one. Employee Management Practices through Motivation Motivation is based on the satisfaction of certain needs (Maslow ranked as transcendence, self-actualization, aesthetics, knowing and understanding, esteem needs, love needs, safety needs, biological needs) (Vakola, 2008). In Southwest, employees are provided education through the University of People and learn daily from their daily experiences and become “intentional learners,” according the university director Elizabeth Bryant (Southwest Airlines and the MBTI, n.d., p. 1). In providing a stable work environment for the workers, the company endeavors to maintain the lowest fare rate as possible (Supplier Information, 2009). It implements a policy that would ensure the safety of the workers in the workplace (Southwest Cares, 2009). A stable workplace is a strong motivator for workers since they are assured of work security. Emphasis is given of having a fun place to work (Southwest Cares, 2009). With its no lay-off policy, the need of employees for security of tenure and livelihood is satisfied (Miller, 2007). Southwest differs from other labor-based and customer-oriented companies (Kochan, 1999). While other carriers have slashed the salaries and benefits of their employees, Southwest provides its employees the highest salary rates in the industry (Brancatelli, 2008). Labor cost comprises half of the fixed costs of airline expenditure that include the fuel, aircraft, facilities and labor expenditure (Preston, 2007, p. 2). United Airlines (UA), on the other hand, had been reorganized under the Chapter 11 protection and slashed a significant pension of its workers (McCabe, 2009). United is the biggest carrier in O’Hare airport with about half of the daily 2,700 daily arrivals and departures (Zajac, Manor, Schmeltzer, & Rodriguez, 2000). At the time that workers demand higher salary rates, United Airlines provided more travel benefits to employees and loosened the dress code restriction (Zajac, et al., 2000) to motivate them in performing satisfactorily and abandon the work slowdown activities. The management allowed the employees to decide on the appropriate mode in doing a job instead of taking orders from the supervisors (Zajac, et al., 2000). United poured out millions of dollars on training of personnel (Zajac, et al., 2000). Character and Ethics Southwest implement values of warmth, friendliness, individual pride, and Company Spirit within the organization and in relation to delivery of quality customer service (Supplier Information, 2009). Any form of harassment and discrimination on account of ethnicity, religious belief, gender, veteran status, pregnancy, etc. are prohibited in the premises (Kelly, Policy concerning harassment, 2008). Offensive and improper behaviors are considered intolerable and do not concur with the Southwest Spirit and culture (Kelly, Policy concerning harassment, 2008). Discrimination and offensive behaviors may comprise derogatory remarks, jokes, pats, sexual advances, hindering work flow, messages, etc. (Kelly, Policy concerning harassment, 2008). United enforces ethical standards in arriving at a business decision (Code of Conduct, 2009). The employees are expected to consider their personal values and judgment in order to arrive at a decision grounded on accepted ethical standards (Code of Conduct, 2009). For United, reporting to the management violators of rules and policies is part of an ethical decision. United has “zero tolerance” to unlawful harassment and discrimination, either verbal or physical, which are offensive, creates hostility and disruptive of the work flow (Code of Conduct, 2009, para. 12). All employees are encouraged to report any occurrence of harassment and intimidation from whatever source (Code of Conduct, 2009). Officers and managers are obligated to monitor the workplaces to ensure that no harassment and discrimination occur (Code of Conduct, 2009). It also advocates for the health and safety of the employees, “zero tolerance” for violence in the workplace, and alcohol and drugs free environment, (Code of Conduct, 2009, para. 15). Personal or family relationship should not influence any employee in the decision-making or one be supervised by another with such relationship (Code of Conduct, 2009). Personal information of workers is held in confidence and may be used by superiors only with regard to work and performance of tasks (Code of Conduct, 2009). Respect shall be accorded to workers being investigated for misconduct (Code of Conduct, 2009). Formal and Informal Power Structures Formal power emanates from the top managements and passed on to managers and supervisors despite the employee-centered system of Southwest. In Southwest, the final decision-maker is the Chief Executive Officer (CEO). On the part of the workers, decision-making and negotiation rest upon the leaders of the unions within the organization. Placing upon Southwest workers the obligation to have a workplace free from harassment, discrimination, threat, intimidation and hostility creates an informal structure that facilitates enforcement of this culture (Southwest Cares, 2009). While no formal structures exist for the labor sector to participate in decision-making process, the management constantly solicits opinions of workers and appropriately responds to them (Kochan, 1999). Employees’ views contribute on the best manner on implementing a new policy (Southwest Shows, 2009). The organization develops and maintains this company culture that fosters harmonious labor relations (Kochan, 1999). Part of the formal organization is the Diversity Council, a proactive group with volunteer members, embraces the Spirit of Inclusion in all units of the organization and provides inputs on diversity recruitment and human resources policies (Southwest Cares, 2009). The council collaborates with the company on the following: a) augment recruitment policies on women and minorities, b) enhance cultural diversity awareness, c) discuss issues on inclusiveness and diversity, d) act as channel and resource, as well as forward issues to units concerned and follow-up for results (Southwest Cares, 2009). United Airlines CEO passes upon the important decision of the company. In fact, the CEO even made a deal on the purchase of US Airways without the knowledge of workers. The employees, on the other hand, were given seats in the board of directors and form part of the formal power structure that can decide on important issues. This gave the unions the power to decide on who should be selected as a CEO. An informal power structure is created when United obligates all employees to protect all assets and properties, tangible and intangible, of the organization (Code of Conduct, 2009). Negotiation Process and Conflict Resolution The presence of a union in any organization is a leverage of the employees to demand implementation of more rights in favor of union members. Southwest if the “most unionized carrier” in the country (Brancatelli, 2008, para. 11; Union Behavior, 2009). Eighty percent of the Southwest workers are union members, nevertheless, no strike has been held against the company (Brancatelli, 2008). Kochan (1999) claimed that the figure is around 90 percent. He added that despite the large union-membership in Southwest, the unions are not vent on “pushing their roles beyond the traditional collective bargaining and grievance functions they perform” (Kochan, 1999, para. 1). Any worker who has knowledge of such harassment or discrimination are enjoined to promptly report such matter to the immediate superior or to the manager, director, vice-president or Labor and Employee Relations Department if the employee is not comfortable discussing the matter with the supervisor (Kelly, Policy concerning harassment, 2008). Harassment cases shall be promptly investigated and kept in confidence (Kelly, Policy concerning harassment, 2008). Any person who files a complaint that is proven to be false shall receive severe punishment that may include termination (Kelly, Policy concerning harassment, 2008). Retaliation on the complainant or any person who participates in the investigation is likewise prohibited by Southwest (Kelly, Policy concerning harassment, 2008). Managers in Southwest are enjoined to have dynamic participation in resolution of cross-functional conflicts (Gittel, 2004). Resolution includes bringing the parties for clarification before the supervisor. “Information-gathering meetings” are utilized especially in group conflicts (Gittel, 2004, p. 102). It is given emphasis that everyone maintains his/her self-esteem during the whole process (Gittel, 2004). The parties are encouraged to be open in order to attain reconciliation (Gittel, 2004). Conflict might arise out of miscommunication due to the fast-pace environment in an airline industry, thus, the cause of such miscommunication can be threshed out in such meetings (Gittel, 2004). Such meetings may not work out, according to Southwest President and COO Colleen Barrett (Gittel, 2004). In such a case, Barrett commented that the involved parties do not fit in the organization (Gittel, 2004). Southwest believes that personal conflicts should be handled on an interpersonal level and provide a learning experience for the parties and the company (Gittel, 2004). Southwest uses Myers-Briggs Type Indicator (MBTI) assessment (a tool to improve communication and create better understanding) not only in conflict resolution but also in team-building activities and leadership development programs (Southwest Airlines and the MBTI, n.d.). United utilizes a traditional methodology on resolving conflict which focuses more on the labor and management disagreements and placing cross-functional conflicts on a lesser degree (Gittel, 2004). The labor union activities of United Airlines led by United and the Air Line Pilots Association (ALPA) resulted to cancellation of more than 4,800 flights beginning April 2000 (Better take the train, 2005). The activities include work slowdown and refusal to render overtime work despite the voluminous summer flight schedules (Better take the train, 2005). The work slowdown and refusal to work overtime resulted from failure of United’s management to inform the pilots of the plan to buy US Airways (Zajac, et al., 2000). Around 25,000 flights had been canceled by the union-led strike by ALPA under the aegis of Frederick Dubinsky and other union leaders (Its the Labor Costs, 2009). The union, instead of working with the management to thresh out solutions, it worked against it. Dubinsky was quoted to have said that the golden goose will not be killed by only choked on the neck to lay the golden egg which United has been keeping for itself (It’s the Labor Costs, 2009). CEO James Goodwin (selected by the employees themselves) decided to purchase US Airways without prior consultation with the employees who own one-fourth share of the airline (Zajac, et al., 2000). The pilots are apprehensive that they would lose seniority, a key determinant on salary rates, pension, flights taken, etc. (Zajac, et al., 2000). The union approach in United is in stark disparity with the strategy in Southwest. Innumerable United customers abandoned the airline to other alternative modes of transportation (Its the Labor Costs, 2009). Conflict may be rooted to relationship, task or process. There is conflict when disagreement occurs when expectations are not met (Lussier, 2009). Conflict may be functional (disagreement supports the objectives) or dysfunctional (disagreement hinders attainment of the objectives) (Lussier, 2009). During the work slowdown of pilots to press their demand for increase salary rates, CEO James Goodwin offered the Employee Stock Ownership Plan or ESOP (i.e. workers own company stocks in exchange for pay cuts, agreed upon in 1994) concession (Zajac, et al., 2000). The negotiation process at this point is effective since the pilots backed down on their demand and accepted the ESOP. However, the conflict escalated again when United decided to purchase US Airways that would affect the seniority of the pilots (Zajac, et al., 2000). Such intervening decision on the part of the management affected the expectation of the pilots. The flight attendants and mechanics likewise demanded higher wages which would mean passing the burden to customers as higher travel fares (Zajac, et al., 2000). The workers who want to sell their shares when the prices are high cannot do so since an agreement was forged that sale of shares can be made only after retirement. With so much customer dissatisfaction and cancelled flights, the value of stocks nose-dived, thus, the workers see their investments go down the drain (Zajac, et al., 2000). The workers became part-owners with around 55 percent in stocks with UAL Corp. (holding company) and 12 seats in the board of directors that gave them voting rights in decision-making and choosing the CEO (Zajac, et al., 2000). Nevertheless, such ownership did not appease the brewing conflict. Dynamics of Change Change is inherent in an organization. The change may be a response to external (e.g. the government, competitor) or internal (e.g. workers’ unrest) stimuli. An organization has to adapt and respond to stimuli and make the necessary changes, otherwise, it will stagnate or cease to exist. The forces of change may be complex and effect unpredictable. In response to the stimuli or changes, the management and leadership have to make the corresponding actions. The management may also introduce the changes (i.e. abolition of a unit or department, merger of units) to which the workers would oppose. Changes introduced create tension and conflict within an organization. The management makes the final decision on what policies to implement in response to the changes. To lessen the impact of change, the management has to communicate frequently with the concerned personnel during the whole process, before, during and after. The management has to seek on new ways to make communication effective. Genuine care and concern should be extended to the affected parties. People must feel that the policies the company implements are for their benefit. The workers, managers and officers must be consulted on ways to handle the stimulus and solutions to implement. Involving all concerned personnel makes them important and responsible for the policies to be implemented. Committees can be formed with members from the cross-section of the company that would oversee and assess the effect and success of the programs and policies implemented to dampen and control the impact of change. Job and Task Analysis The Air Traffic Controller is critical to the safety of the passengers and the aircraft. The air traffic controller gives instructions to pilots and gives clearance for landing or take-off (So You Want, n.d.). The traffic controller works at Air Route Traffic Control Centers or in an airport control tower (So You Want, n.d.). The person who assumes this position must have a keen judgment, fast analytical mind and quick reaction time, otherwise, lives and billions worth of money will be lost. Therefore, the person who handles the job must be competent to do the work and certified by the government. He or she must have the proper training with the Federal Aviation Administration (So You Want, n.d.). The maximum age qualification of entry is 30 years old. Written exams and interview administered would determine the "alertness, decisiveness, diction, poise and conciseness of speech” (So You Want, Written test, n.d., para. 1). The position entails previous administrative, technical or other experience that manifest capacity for learning (So You Want, n.d.). Experience (from military or aviation industry) or a four-year degree qualifies a person for the position (So You Want, n.d.). Further qualification is taking the aptitude test with a rating of 75.1 or higher (So You Want, n.d.). Conclusion Relationships among individuals and groups, the management and the workers within an organization are complex. It can be said that a particular model that works well in one company might not work out in another. With the growing discontentment among the workers of United Airlines, the management devised ways to pacify them by allowing workers to own a portion of the stocks in the company, loosening dress code restrictions, granting personnel training, and giving more travel benefits. The workers on their part exerted effort to improve productivity and service that elevated the company’s ranking from ninth to fourth place. The increase in profitability of United, however, was not passed on to the workers in terms of cash. The employees feel short-changed for not receiving their share in the profits coming in due to their sacrifices. United also strived to change the company culture through new programs that would change the mindset of the workers. But in the long run, dissatisfaction seeped through the ranks of the workers again. It can be viewed that United introduced programs to boost the morale of the workers. They were also given seats in the Board. But nothing seemed to satisfy the workers. Voting rights in decision-making allowed the workers to approve or deny policy measures. In contrast, Southwest workers, the highly unionized in the industry, have no voting rights and are not represented in the decision-making process. Decisions come from the top management. However, the managers consider the views of employees in their decisions and policies. Company culture has a great impact upon the manner workers in an organization react or behave. United has had a culture of militancy among the workers. Although the management tried to introduce a new culture, the existing one cannot be easily be supplanted. It will take decades for a total renewal of culture. A complete overhaul of a culture is not advisable. Culture evolves and transforms slowly. Thus, United must continually work on the transformation of the culture. New employees will be introduced into the new company culture. Long-time employees may slowly subscribe to the new culture. The old culture may gradually fade out as old employees retire from the service taking with them the culture they want to foster. Productivity is interconnected with employee morale. Morale is affected by management rules and policies. Low morale causes dissatisfaction and poor performance leading to low profit and dissatisfied customers, the bread and butter of an airline company. With low profitability, the workers may either be retrenched or receive lesser benefits. These factors affect one another, therefore, the management must be careful in what policies and decisions it should implement. Southwest Airlines fostered a culture of fun and family-oriented company. It granted high salary rates to its employees even at a time when other airlines are losing. Giving a high salary to the employees means that the company is retaining lesser profits for itself. The employees see this sacrifice on the part of the company that is why they need not undertake drastic union activities that would reverse the profitability and productivity of the company. The overall culture of the company, the hiring process and policies of Southwest contributed to the mindset that employees have. The behavior of an applicant is considered even at the hiring process. An employee that exhibits negative behavior and attitude is terminated from the company. Individuals that would fit into existing culture of family and fun are hired by Southwest. This methodology would ensure the continued existence of the culture cherished by the company. A negative element in an organization is destructive to the structure and the functioning of the company as a whole. In the end, the management and workers would benefit from the harmonious relationship. References Astorga, H. (2002, July 15). Teamwork: A new twist to old Asian collectivism. Asia Pacific Management Forum. Retrieved 24 November 2009, from http://www.apmforum.com/columns/eaststrategy5.htm Better take the train? United Airlines Labor Dispute. (2005, July 1). HR.com. 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