OL 215 Final Project Submission : Toyota

SOUTHWEST AIRLINES CO. – 5-2 Final Project One 1

SOUTHWEST AIRLINES CO. – 5-2 Final Project One 5

5-2 Final Project One-Part III: Application of the Fundamental

Principle of Management for a Successful Company

Southwest Airlines Co.

Jennifer Moore

Southern New Hampshire University

Principles of Management

OL-215

Professor: Bekim Belica

April 4, 2021

Introduction

Air Southwest Co. was pioneered in 1967 in Texas at a hotel bar in San Antonio. The principal founder of this company was Rollin King and Herb Kelleher. They develop a business plan that included a depiction triangle with three lines that connected Houston, San Antonio, and Dallas, which was just displayed in a sketch drew on a cocktail napkin. The Southwest Airline is just operated with only three planes; on June 18, 1971, the first flight took to the sky around Texas, and later it upgraded even took a flight to the neighboring states in 1979.up to date the Southwest Airlines has 69 destinations in 35 states (Barr,1967). The company has a unique slogan that they use in the advertisement, which says, "Low fares. Nothing to hide. That’s Transfarency!”

Southwest Airlines has become famous and victorious since it combines disruptive innovation' and 'customer intimacy. It has a clear principal business purpose. It can use a suitable business model that supports the business purpose and demonstrates core values and behaviors for critical business purposes. The company also reaches the companywide culture committee that is an excellent example of the fundamental principle of management and company mission and vision statement. The campus reach program ensures that it identify and engage future Employees at their early age with the hope of inspiring them to have an interest in an aviation career. The Companywide Culture Committee (CWCC) is a very dedicated group in identifying HDQ Employees who are dedicated and passionate when it comes to serving others; they are selected across the company to recognize them, celebrated, and appreciated.

At Southwest Airlines, employees come first. This airline puts employee happiness above customer satisfaction. It might seem unfamiliar, but to them it makes perfect sense. This approach seems to be working all right for the Dallas-based airline. In order of importance, Southwest ranks employees first, customer second, and shareholders third. “We believe that if we treat our employees right, they will treat our customers right, and in turn that results in increased business and profits that make everyone happy” (Martin 2015). Over 85% of employees say they are proud to work for American Airlines, and they are ranked #1 for least amount of customer complaints.

P-O-L-C Framework

The principles of management can be distilled down to four critical functions. These functions are planning, organizing, leading, and controlling as seen in Figure 1. This P-O-L-C framework provides useful guidance into what the ideal job of manager should look like (Houston Chronicle).

Figure 1. Lumen Learning

Within a business most positions and department are assigned to certain duties based on specific knowledge, expertise, or company needs. Managers seem to have a broader and more complex set of responsibilities.

Mission/ Vision Statements

For the success of an organization, it is essential to oversee the company. Management is one of the main reasons that make employees either choose to make their occupation their profession. Southwest Airlines is known to exemplify its strategic vision clarification when it comes to both operation and alliance with employees. In 2013 the Southwest Airlines released a statement to the employee stating: "Our vision is to become the World's most loved, most flown, and most profitable airline" (Wrzesniewski & Dutton,2001). The airline has continued according to the guidelines and wishes of founder Herb Kelleher's commitment to encouragement, innovation, and inspiring people. A clear illustration of how Southwest Airlines are significant to their mission and vision to their employee and their partners is by the great encouragement they have towards the employees, including recruitment strategies in their prospective candidates and showing their appreciation to their employees. By that, employees pass the same values, loyalties, and satisfaction when serving the customers.

Strategic Management Plan

The main focus of Southwest Airlines is an organization, planning, leading, and frontline employees who act as their main booster when it comes to Strategic management plan. Team of management together with executives and administrators their contribution is collective. Southwest Airlines works as one team mission. They have competitive advantages as an aircraft since it separates itself from the various carriers as it has excellent client care. In 2003 made history in the U.S as the most prominent residential air carrier, and it still maintains some position till today, a report that was written by Nationwide domestic consumer boarded. Southwest Airlines explained Transparency when it comes to the philosophy of treating customers fairly, honestly, and with low fares, mostly staying low. Southwest remains to be the only major U.S. airline to give bags fly free.

Organizational Culture

Herb Kelleher, the southwest organization founder, had a hierarchical culture that makes sure that employees come first. Herb had a hands-off administration style, which developed a fun climate and healthy working place. His administration and regard for workers have significantly changed the organizational culture developed to be a family (Avolio & Bass,2001). Incentives in the workplace are always appealing, but the Southwest has taken motivation to a whole extra level. Employees are rewarded for coming to work by Southwest Airline Gratitude Program (SWAG) monthly for excellent attendance; this boosts employees' attendance to work and work productivity.

Decision Making Process

Decision-making has three main core factors, which include: Employees, customers, and shareholders. Southwest always makes sure that they do best in all three. The decision-making processes that Southwest looks at is a principle of management. It ensures that those at the top assist those at the bottom. When it comes to problem-solving, it is solved quickly, making the customers happy as they feel that sense of connection from the personalized service.

Principle of Ethics

In 2008 a report was released by Southwest Care Report article which wrote about CEO Gary Kelly how he was doing the right thing, how the administration is to their employees, their patrons, and how Southwest ensure positive contributions to the community.

Southwest Airlines LUVS respects its reputation and prestige when it comes to customer service. They ensure they deliver excellent customer service and always treat all people equally and the best way possible (Knapp & VandeCreek,2004).

Human Resource Management

Many methods are used by the Human Resource (HR) together with the executives to hire and retain representatives beginning with recruiting them. Along time is used on selection, meeting, and employment process purposefully. Southwest airlines conduct behavioral interviews to assess the potential employees with a warrior spirit, a servant's heart, and a fun-loving attitude. It also has a bi-annual employee survey hence collecting quantitative and qualitative data directly from the employees themselves.

Interrelated Systems

Southwest Airlines is one of the world’s top ten most admired companies and there are many reasons as to why. At number 8 in the lineup, it is the only commercial airline in the top 10, this being the 24th year in a row. They will continue to be successful as long as they stick to the qualities and standards it has set.

Conclusion

Southwest Airlines remains to be ranked at the top since it is the most successful and highly competitive in the airline industry; it is known to be the best since it recognizes the employee as the key people when delivering excellent consumer service, which brings about financial success. Herb Kelleher stated that "the business of business is people." Without a heart, it is just a machine.

References

Avolio, B. J., & Bass, B. M. (Eds.). (2001). Developing potential across a full range of Leadership Tm: Cases on transactional and transformational leadership. Psychology Press.

Barr, A. (1967). Records of the Confederate Military Commission in San Antonio, July 2-October 10, 1862. The Southwestern Historical Quarterly, 71(2), 247-278.

Knapp, S., & VandeCreek, L. (2004). A Principle-Based Analysis of the 2002 American Psychological Association Ethics Code. Psychotherapy: Theory, Research, Practice, Training, 41(3), 247.

“What Are the Four Basic Functions That Make Up The Management Process.” Houston Chronicle. Retrieved from: http://smallbusiness.chron.com/four-basic-functions-make up-management-process-23852.html.

Wrzesniewski, A., & Dutton, J. E. (2001). They were crafting a job: Revisioning employees as active crafters of their work. Academy of management review, 26(2), 179-201.