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MGT599 - Strategic Management, Mod 5 SLP - Essay Example

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It was founded in the year 1967. Originally it was known as Air Southwest. Later it was renamed as Southwest Airlines and commenced its business operations in the year 1971. The shares of the…
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MGT599 - Strategic Management, Mod 5 SLP
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Download file to see previous pages It managed to expand its business on a large scale mainly due to its acquisition of AirTran Holdings in the year 2011 and as at December 31, 2011 the company operated a total of 698 aircrafts that includes 88 Boeing 7171s and 610 Boeing 737s. AirTran Airways is now operated as one of the wholly owned subsidiaries of Southwest Airlines. The company is regarded to be one of the lowest fare domestic airlines in United States and is committed towards providing best Customer Services in the airlines industry.
The company encourages employees to express individual ideas to improve performance of the company. Employees are treated as greatest asset for the company and they have the independence to present their feedback in front of management of the company. The company encourages employees to compete against each other to meet performance standard but the competition level is always maintained as a healthy practice to develop personal skills. Although the organization structure works in a centralized manner but communication line follows both top vertical and horizontal approach. Organizational hierarchy of the organization has minimum number of layers to decrease the time for communication process. For example, flight attendants clean the flight themselves in order to save money and time. It is evident from the above mentioned organization structure that vice presidents report to their respective senior vice presidents and senior vice presidents report to CEO of the company. Multiple roles playing by individual employee is the specialty of the company. The company gives importance on creating separate task force for various activities. They use guidelines for employees to perform daily work and work schedule is prepared according to the requirement. For example, top managers of the company perform as ticket agents, reservation agents or cabin crew member once in every ...Download file to see next pagesRead More
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