Employee Engagement and Morale - Essay Example

A COMPARATIVE ANALYSIS OF ORGANISATION BEHAVIOUR AT SOUTH WEST AIRLINE S AND US AIRWAYS A COMPARATIVE ANALYSIS OF ORGANISATION BEHAVIOUR AT SOUTH WEST AIRLINE S AND US AIRWAYS Introduction In this paper the author will carry out a comparative analysis of the organization behaviour in South West Airlines and US Airways and compare and contrast the business environment and also significant aspects of management and leadership that has lead to the many successes of South West airlines and the comparable failures of US Airways Airlines. Southwest Airlines as we all know is a low cost carrier that tops the list of airlines in the world in terms of number of total passengers carried in any one year both domestically and internationally (Doganis, 2002). It is one of the world's most profitable airlines and has posted a profit for 36th consecutive year in January 2009. And its immense success can be attributed to its unusual model and people management style, which will be discussed in detail in this document (Doganis, 2002). US Airways Airlines on the other hand is the fifth largest airline in the United States it merged with America West Airlines in 2005 but still retained its original name and culture. Even though it is a huge airline, its successes are nowhere near that of Southwest Airlines and in the following sections we will analyze the matter further (Doganis, 2002). Diversity Management and Employee Engagement & Morale While its business strategy and ability to make quick and very flexible decisions are seen to be the strong points of Southwest Airlines, it is very important to note that the people management aspect of the organization has proven to be an equally big strength. To this end it is the ability of the organization to appropriately manage its extremely diverse workforce that has helped the organization to scale the heights of profitability and success that has eluded many other airlines and in this particular case US Airways Airlines as well. At Southwest Airlines the organizations lays a huge emphasis on the employment of individuals from a variety of backgrounds such as ethnic minorities, individuals of color, individuals of different age groups and most importantly individuals with special needs. While it can be stated and that other airlines do the same, in the case of Southwest Airlines, such practices are not carried out of compulsion by the federal government or the need to take affirmative action but rather by its all inclusive management style that puts employees first as much as it puts customers first. This as we know is the first and most important step in the enhancing employee engagement. When employees feel that they are valued for their contributions as well as for the distinctly differently experiences and backgrounds that they can bring to the table they feel more valued and as result they automatically go the extra mile to ensure the success of the organisation by satisfying and delighting the clientele of the organisation as much as possible (Parvis, 2003). In the case of US Airways Airlines even though diversity is apparent to some extent, it has not been resorted to out of an increased value for the employees but rather due to the compulsions and the impositions of federal and state governments and affirmative action etc. Thus making its real intentions less clear, more ambiguous and leaving the employees less engaged and motivated to give their best to the organization. Management and Leadership Management and leadership are terms that are distinctly different from one another even though they are usually used interchangeably. However they are both very important to any organization that wishes to success and as in the case of Southwest Airlines the management and leadership of the organization has played a crucial role in the last three and half decades of its existence. In effect the management and leadership styles that have been adopted by the organization in past have been flexible, people oriented and most of visionary in nature. This has been the secret to success of the organization. While many organizations, have excellent leaders with a visionary outlook, they do not possess sufficient talent in the management levels of the organization ensure that the visions are translated into workable and profitable business strategies that will ultimately deliver on its promises to the shareholders and the stakeholders of the organization (Buttner, Lowe & Billings-Harris, 2006). US Airways is one such company where leadership has been transformational in nature and is apparent from the different stages the organization has gone through in the past to become America's fifth largest airline. However it does not possess the managers with the same levels of strengths that Southwest Airlines has. Therefore it has failed miserably in implementing the specific business and operational strategies and tactics that can ensure the levels of success that have been envisioned for its, by its top most and very talented leaders (Buttner, Lowe & Billings-Harris, 2006). Based on everything that has been stated above, about management and leadership of the organization it is the author's opinion that strong management experience at top and mid levels of the organization are very important to any airline and has been proved by the case of Southwest Airlines. Further while there is no substitute for transformational and creative leaders, they alone cannot bring about the level of success that Southwest Airlines has seen without the help of managers with the necessary know how and experience to the strategize and implement the necessary steps to achieve the goals that have been set by the leaders. Motivational Theory Any human resources professional and every effective manager would often state that employees are the biggest asset to any organisation and this cannot be more accurate in any other industry than the highly competitive low-fare airline industry. Therefore it can be stated that outstanding people management skills and experiencing and developing motivation amongst the staff to increase productivity and competitive edge is not just an added advantage, but also an essential in the airline industry. While Southwest Airlines is a low fare airline, it is an organization that has a comparatively high proportion of its staff in labour unions when compared to the rest of the industry both domestically and internationally. Therefore one may venture to say that the airline is not doing a very good job of motivating the employees and treating them well, thus resulting in the employees forming labour unions. However this is not the case, even though Southwest Airlines has had it fair share of labour disputes, it has always gone the extra mile to keep employees happy and engaged and as a result been able to motivate them through many different strategies such as team building activities, employee recognition campaigns etc. Further the organization has proved to its labour unions that it places its employees first by going as far as calling for the resignation of its CFO in 2008 due to labour disputes, thus sending out the message that the organization is indeed extremely employee focused. In comparison US Airways has a significantly lesser proportion of its employees involved in labour unions, however due to motivational issues stemming from lack of recognition, lack of feeling valued, lack of line of sight etc, employee motivation is at a much lower level than at Southwest Airlines (Kuttner, 2002). While it is very difficult to say what areas have to be changed for US Airways to see a significant change in the levels of motivation amongst its staff, looking at the overall situation it can be stated that a culture change starting from the top and filtering its way to the bottom with an "employee centric" focus will be of immense help to the organization to turn around its fortunes (Brown, 2004). Ethics If we were to discuss ethics in a simplistic and non-philosophic manner, ethics consist of a group of principal or are used by an individual, organization or professional body to define moral values and the morally correct procedures to be undertaken in certain situations. As stewards of a company, the managers and executives bear the responsibility of earning a substantial return for the money invested by their shareholders. Likewise the revenue that is earned should not infringe the rights society and groups of individuals who maybe vulnerable and can be exploited - such as employees. Southwest Airlines has very high ethical standard and this is apparent from the manner it has constantly upheld and delivered its standards and thereby fulfilled its responsibility to the shareholders in terms of earning profits every single year. While many airlines are accused of shortchanging customers that they serve by cutting down on services just because they are low budget carriers (like US Airways). In the case of Southwest Airlines, the organization has always put its customers first and has made low budget air travel possible without cutting down on services that other airlines have opted out of - this has been possible because as much as the airline put its customers first, it also put its employees first. Thereby the employees go the extra mile to deliver outstanding customer services, which many other budget airlines do not provide. Therefore it is the opinion of the author that Southwest Airlines has developed a strong ethical framework and used the high level of ethics to further enhance its reputation amongst all stakeholder groups and other airlines US Airways will do well to take a leaf from the book of Southwest Airlines. Power Practices and their influence on Management and Leadership While leaders and managers at Southwest Airlines have formal power and authority, which is afforded to them through the positions that they hold in the organizational structure, they also have much informal power. And it is this informal power that has been able to ensure high levels of motivation within the organization as well as to win the organization the level of success that it has over the years. Informal power is power that is gained through specialist knowledge and experience in a particular area as well as from an individual's personality and charisma (Hobbs, 2004). A quick study of the top managers and leaders as well as those being groomed for management and leadership jobs at Southwest Airlines indicates that they all have informal power that far exceeds the formal power that the organization has bestowed upon them. Therefore they are able to command vast numbers of individuals because they are inspired by their managers and leaders and are ready to be followers and take transformational action rather than just being subordinates. In comparison at US Airways Airlines informal power amongst mid level and top level managers is lacking and as a result subordinates just take orders and do what they are asked to do, but are not willing to make the leap to transformational change, which is essential if they are to gain successes that is equal to Southwest Airlines. Change Changes in the internal and external business environment is unavoidable in any industry or economy and therefore the most successful companies are open to change, they anticipate change and do not resist change but rather they make the necessary changes or prepare for the change even before it is actually necessary (Fisher, 2002). Southwest Airlines is one such airline that has excelled at managing change in a very dynamic and proactive manner. No other industry has undergone the level of changes that the airline industry has undergone in the past decade. Southwest Airlines has always kept a keen ear to the ground and has anticipated the upcoming change long before its competition. Next seeing that changes are inevitable the organization has always developed robust plans to make the necessary changes in a quick and proactive manner. The impending changes have always been communicated to employees to reduce any form of ambiguity. Employees have always been encouraged to participate in the change process and to champion the change, thereby creating a "bottom up" strategy to change, rather than a "top down" strategy, which has enormously reduced resistance to change, sabotage and has succeeded in ensuring that the changes made are successful because as participants in the change process, the employees have a vested interest to make it work. US Airways on the other hand has not always anticipated and proactively managed change, and even when it has, there has been much to be desired, thus causing the entire process to be "half hearted" and lukewarm. Conclusion Looking at everything that has been stated it is apparent that Southwest Airlines is by far the best of the two airlines and its success can be attributed to many factors, the chief of which are its "employee centric" policies, the strengths of its management and leadership teams and the practices adopted by them and finally the high level of ethics followed by the organization. References 1. Brown, A. (2004, August). Achieving Better Results with Limited Resources. Public Management, 86, pp. 16. 2. Buttner, E. H., Lowe, K. B., & Billings-Harris, L. (2006). The Influence of Organizational Diversity Orientation and Leader Attitude on Diversity Activities. Journal of Managerial Issues, 18(3), pp. 356. 3. Doganis, R. (2002). Flying off Course: The Economics of International Airlines. London: Routledge. 4. Fisher, C. D. (2002). Real Time Affect at Work: A Neglected Phenomenon in Organisational Behaviour. Australian Journal of Management, 27(2), pp. 1. 5. Hobbs, D. (2004, September). How to Benchmark with Easily Available Resources: Ensure That You're Comparing Apples to Apples. Public Management, 86, pp. 14. 6. Kuttner, R. (2002, September 9). Useless Airways. The American Prospect, 13, pp. 2. 7. Parvis, L. (2003). Diversity and Effective Leadership in Multicultural Workplaces. Journal of Environmental Health, 65(7), pp. 37. Read More