Southwest airlines Comparative Analysis - Essay Example

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Its headquarters are located in Dallas, the airline has remained profitable for the past 30 years despite other airlines recording an increase in debts and losses. Its main competitors include…
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Southwest airlines Comparative Analysis
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Download file to see previous pages s the customers choose increasing demand, the company also receives less complaints compared to other airlines and this has made it to become a market leader in the airline industry. There are however other factors that has led to the success of South west airlines and they include the organization structure, organization culture and leadership, the following is an analysis of the company’s structure, culture and leadership compared to its competitors.
Organization structures include the flat structures, tall structures, hierarchical structure, centralized and decentralized structures and each structure adopted has advantages and disadvantage associated. The company is organized in a hierarchical structure whereby top workers include the CEO and executive vice presidents. (Hoffer, 29) The advantage of this structure is that authority and a responsibility are clearly defined. Clearly defined roles help in reducing conflicts in an organization and also help in improving productivity and specialization.
The other advantage associated with the hierarchical structure is that promotion paths are clearly defined. This means that workers are well motivated to achieve higher positions in the organization, promotion is based on performance and therefore top managers are well aware of the operations and activities in their division. High productivity is achieved where worker are motivated to improve performance which in turn leads to high profitability. (McCartney, 2007)
Managers are specialized in the hierarchical structure, managers are promoted from non managerial positions in the organization and also from the same division they work and therefore they specialize in the same position and this ensures efficiency in the company. The other advantage of this structure realized by the Southwest airline is that workers are more loyal to their divisions; the company is divided in several divisions and these department help in improving productivity of workers through ...Download file to see next pagesRead More
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