Organizational Structure of Southwest Airlines - Case Study Example

SWA has a divisional organizational structure. By definition, a divisional organizational structure is that in which a central corporate office/officer governs a set of divisions or units whereas each operating division is run by distinct functional specialists whose services differ from those offered by the specialists in other divisions. The Chief Executive Officer (CEO) at SWA is Gary Kelly (“Southwest Airlines Leadership”). The organizational structure resembles a functional organizational structure with the added element of having specialists offering services in distinct divisions.

There are six main divisions at SWA, namely customer services, administration, operations, communication, finance, and regulations. The divisions have their own subdivisions where specialists offer distinct services. For example, the four subdivisions of the administration unit are people, procurement, diversity and inclusion, and information. Culture of SWASWA has a very healthy culture where the employees feel respected and their skills’ acknowledged. SWA has faith in the capability and skills of its employees.

This can primarily be attributed to the fact that management at SWA has always strived to find just the right people for particular tasks and has been very particular about finding the right people in the selection process (Holstein). The management structure at SWA promotes counseling, coaching, and responsiveness without interference from the managers. This, in turn, drives the employees’ motivation to keep showing the best performance since their positive efforts are recognized. Managers at SWA have developed an environment that enhances the employees’ ability to be efficient and effective in the arena of customer service.

  The best practices for the company’s functions are mutually established by the managers and the employees.  Employees at SWA have been giving the power of decision making so that they require no guidance from the managers to get the jobs done. Employees gain motivation to achieve SWA’s goals from the team-based concept.Leadership at SWA Leadership at SWA is focused at not only keeping the employees aware of the goals of the company and the expectations of the leaders with the staff members but also at developing coordination and harmony among the organizational personnel so that they are able to work in a team setting with minimal interpersonal conflicts.

According to Gittell (2003), strategy and coordination, culture, and leadership are the factors of strategy that SWA employs. Relationship-oriented leadership lies at the core of the success of SWA. Leaders at SWA accomplish their goals by fostering relationships with the employees, suppliers, and customers. Throughout its history, leaders at SWA have recognized and appreciated the tremendous role of their employees in the success of the company. Herb Kelleher has been recognized as being “always the first to give Southwest employees credit for the company’s tremendous success, and he genuinely believes that leadership is more a function of people’s relationships than position” (Freiberg and Freiberg xviii).

SWA considers the inclusion of a supervisor a necessary element in the development of coordination and teamwork between the frontline employees of the company (Wright and Mujtaba 77).