Southwest Airlines a Source of Excellent Management

Southwest Airlines A Source of Excellent Management

The US airline industry has seen many changes over the last decade due to economics and the industry's inability or willingness to think outside the box of traditional management. The philosophy in most businesses has been satisfy the customer, make the customer king, and the customer is always right. This philosophy has been the driving force behind the structure and operation of major enterprises for decades. Despite this philosophy and the attempts to operate based on this philosophy many have failed and closed or become a small piece of an even larger corporation. This has been especially true in the airline industry. The industry has taken a hard hit since September 11, 2001. Additional safety regulations and increased costs have made it even more difficult to operate profitably focusing only on the satisfied customer. While keeping the customer happy is essential this tunnel vision leaves out those who are behind the scenes making this happen.

Southwest Airlines has chosen to practice the golden rule of service by treating employees as you want your customers to be treated. Southwest feels that if you treat your employees right they will treat the customers right and by doing so they keep coming back which ultimately keeps your stockholders happy. One example of how committed their employees are occurred following the terrorist attacks of September 11. A volunteer grassroots program by the employees was initiated to save money for Southwest by working the same number of hours without pay. Each employee gave between 1 and 32 hours back to the company during November and December following the attacks. In this paper we will examine how Southwest has managed their continued success with the company's mission of Employees are our first customers.

Motivation matters and Southwest Airlines has become a leader in employee motivation which they feel has enabled them to become a well-oiled and high performing organization. Forbes Magazine has called Southwest the most successful airline in history, and ranks it in the top of its 100 Best Companies to work for. Despite the fact that Southwest Airlines (SWA) is one of the most unionized airlines in the airline industry that has maintained one of the lowest turnover rates in the industry as well as the lowest absenteeism and tardiness. Their employees have high levels of motivation and satisfaction. How is this achieved and how might one apply this to their own work situation? Southwest Airlines has implemented a practice of 7 key elements in motivating its employees. By examining each of these elements it is obvious that Southwest took into consideration that motivating an individual is challenging and that each of us has different needs. The key elements that play a critical role in the Southwest Airlines motivation of employees include the following:

1. Strong Set of Values: Values are guidelines for behavior and tend to be people's sacred convictions. At Southwest the company's values determine the behavior of all employees at all levels of the organization. Top management maintains credibility by walking its talk and keeping 100% its integrity. The three top values (in order) at SWA are employees, customers, and stockholders. They are dedicated to exceeding the expectations of each of these groups. When looking at one's current work situation we must ask if our company has values that everyone lives by daily. If there are no understood values this must be one of the steps to address in order to motivate those in your work force.

2. Employees Come First: In looking at SWA "s website one of the first things that you will see is the mission statement followed by a statement for their employees which reads:

"To Our Employees:

We are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. Above all, Employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest Customer." Because of this statement SWA values all employees and therefore, invest heavily in training, in development and creating opportunities for everybody. Their willingness to take a risk on their people to some may seem extreme but to their people it creates a strong feeling of mutual belief, trust and certainty to perform. In looking at your daily work environment, you must ask yourself are the employees among the company's most valued asset. If this is not the case another area of focus should be on the changes necessary to achieve this.

3. Rewards and Recognition: SWA provides meaningful recognition and rewards for performance. Employees know exactly what the company gives in return for exceptional work. Employees at every level of the organization are profusely rewarded for excellent performance. This level of recognition is the basis for maintaining loyalty, job satisfaction, and high levels of personal motivation. In your current work situation are you or do you recognize performance. When was the last time you or those working with you received recognition for a job well done? Consider changing this in your work area by rewarding and recognizing those around you.

4. Mission: With a written mission statement that dedicates SWA to the highest quality of Customer Service, SWA has managed to put in writing a statement

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