Southwest Airlines and Gary Kelly Essay Example

May 2008 and July 2008 respectively [4]. His relentless hard work and commitment have garnered him admiration from both his colleagues and the airline industry as a whole. A Newsweek video reveals that Gary has a modest character, taking pleasure in interacting with his company's employees and patrons. Possessing humility and charm are fundamental attributes of an effective leader.

Not only does a leader have to make corporate or financial choices, but they also need to ensure the satisfaction of their employees. As stated in a certain article, "satisfied employees lead to satisfied customers."[1] Gary Kelly defines leadership as “providing effective support to your team of workers."[4] This quote from Gary represents Southwest Airlines as a whole and serves as an example of its importance. The airline industry has faced significant challenges since the events of September 11, 2001. Various companies were nearing bankruptcy and had to adapt accordingly.

Various major airlines have implemented cost-cutting measures such as employee layoffs, rescheduling the delivery of new aircrafts, and reducing flight schedules by approximately twenty percent. Conversely, Southwest Airlines hasn't made any reductions in their employee headcount or flight slots but instead opted to renegotiate the delivery plans for 132 Boeing 737s. Southwest prioritizes its employees, so rather than executing layoffs, the company opted to initiate a temporary halt on hiring. [4] The company maintains a policy against layoffs and continues to prioritize its employees' welfare. While there are still numerous challenges ahead of him, Gary Kelly has thus far been effective in guiding the company.

Southwest's success is largely attributed to their policy of actively including its employees in the company's decision-making processes. This mirrors our classroom learning which

emphasized the importance of a leader who can engage their followers without coercion. Leaders should embody both respect and humility, acting with consideration for what is best for everyone. Contrasting sharply with the more autocratic control common in other airlines, Southwest's treatment of its employees and business operations is pioneering. Their organizational structure has proven to be highly efficient.

Southwest's profitability and high levels of customer satisfaction validate the effectiveness of their modus operandi. There exist only four managerial layers between the CEO and a frontline supervisor at Southwest, fostering enhanced communication throughout the company. Southwest encourages staff to develop initiatives and engage in sincere discussions between frontline employees and managers [4]. Furthermore, managers are expected to dedicate at least one-third of their time to roaming around the facilities, interacting with employees and customers, with a goal to gather insights for further improvement in the company's performance.

Intriguingly, Southwest tends to promote from within for about 80 to 90 percent of their supervisory roles. This suggests that the company prefers to foster growth among its existing employees rather than bring onboard external hires who may not be well-versed in their philosophy. Moreover, Southwest emphasizes on nurturing leadership and communication competencies in its entry-level managers by offering training in all departments over a half-year span for potential leaders [4]. The objective of these trainings is to instill a sense of assurance and team spirit among employees.

Harmony and collaboration within an organization can enhance business outcomes. Synchronized teamwork can handle any issues that may arise in business smoothly. Although the airline company has recently been free of severe problems, in 2008, Southwest faced a hefty fine due to safety

issues. A CNN report revealed that Southwest exerted pressure on the Federal Aviation Administration to keep away an inspector who detected these issues [2]. The problem stemmed from the fact that Southwest airlines was operating unlawfully as they skipped mandatory checks.

Southwest's Maintenance program is identified as the source of problems. The report highlights that Southwest operated 70 airplanes that skipped a compulsory check on the rudder unit which was overdue by 30 months, alongside 47 aircraft that had not been inspected for possible fuselage cracks. As per FAA officials, six aircraft were discovered to have potentially hazardous cracks [2]. Although none of Southwest's flights received a grounding order during this period, this situation could have been averted if Southwest had permitted inspectors to carry out their duties and allowed its maintenance teams to repair its fleet promptly.

The expensive problem arose due to a breakdown in communication. This was merely a small hurdle that didn't influence Southwest's clinetele. From its inception as an airline corporation, Southwest has continuously grown. The challenge for Gary now lies in discovering fresh strategies to grow the business. The company is pondering on going global and has partnered with several international airlines, such as Volaris, a renowned Mexican airline based in Toluca.

Southwest is contemplating offering its passengers WIFI during 2010 and extending its services to more major cities across the US continent [3]. Until now, Gary Kelly hasn't seriously been challenged, but his workers and board associates trust in his capability to excel as a CEO when necessary. Currently, all Southwest and Gary Kelly can do is adhere to Southwest's mantra and continue on the same path.