Southwest Airlines Strategic Planning Final Course Project Essay Example

airlines. Some of these issues stem from the consequences suffered by other airlines, such as the harassment charges faced by Bargain Airlines in 1975, which SAW successfully brought to government attention resulting in Bargain's loss in the lawsuit. Additionally, SAW faced financial uncertainty following the September 11 attacks due to decreased passenger numbers and increased security costs.During this time, attendants had to tone down their personalities and attire that were used to entertain passengers during flights. Southwest Airlines (SAW) is currently analyzing its strengths, weaknesses, opportunities, and threats (SOOT). They need to focus on developing its low-cost position in the airline industry and competing with seven other low-cost carriers. To stay on top, SAW must streamline its boarding process with self check-in technology. They are actively searching for talented individuals who are interested in training, development, job advancement, and job security. SAW believes in succession planning and sees it as a way to develop future leaders. They look for employees who are ambitious and enjoy their work. In 1971, SAW's first advertisement for hostesses was aimed at attracting people like Rachel Welch who wanted a job and measured up to their standards. SAW frequently uses colorful boarding announcements and songs instead of videos. The best employees are those who are outgoing and represent SAW well.SAW employees receive lower wages compared to others, but the company focuses on long-term benefits like job enrichment and training for advancement. According to Rodriguez (2007), implementing an aggressive career development plan can help win the war for talent and improve employee retention, benefiting both the employees and the company.

SAW faces various threats, including rising taxes, fuel costs, operational expenses,

increasing labor costs, security concerns due to unionized flight attendants, and passengers' increased security costs. Additionally, the company struggles to make long-term strategic plans and faces competition from surface transportation in its short-haul flights. The possibility of war also impacts customer decisions to fly.

One of SAW's strengths is its attention to efficient operations. Former CEO, Herb Keller, created a culture where employees feel valued and part of a family. Keller's charisma and creative mindset have earned him loyalty from SAW employees. He believed in treating employees well just like customers, as they would then treat customers with the same respect.

Although SAW emphasizes profit sharing as part of its compensation strategy, it primarily rewards upper management based on their contribution to the business.

Although the company encourages teamwork, it does not offer monetary recognition for individual skills and instead prefers to pay the market value. However, this approach is sometimes challenging to achieve due to union contracts. Dealing with the union also poses risks that can impact the team's profit sharing approach. Within the company, there is fixed pay based on position, which leads to individual discrimination and inequality. Not all workers receive merit pay and bonuses (Lawyer, 2000). The decrease in success of SAW may be attributed to Keller's retirement, as he played a significant role in building the business and encouraging employee success.

Despite SAW's prolonged past success, it now faces competition from smaller carriers that could pose a challenge. To assess its recruiting and retention efforts, SAW obtains statistics through direct observation, employee surveys, and operational performance. Currently, employees do not provide feedback on areas for improvement. Better objective criteria such as performance-based

evaluations, measured turnover, excessive absenteeism, and other statistical data trends would provide more valuable information.

During recent flights, customers have had questions about the use of Wi-Fi, cell phones, and computers. However, the hostesses have not been proactive in answering customers' inquiries regarding the use of current technology during flights.

Recent reports indicate that the largest low-fare airline is facing an identity crisis. The airline's new message, conveyed in a low-key manner, focuses on eliminating silly humor and no longer mentions the "bags fly free" policy. The Chicago Business Journal has covered this policy change, highlighting employees who diligently perform their job without incorporating fun elements. The absence of any mention of cheap flights is due to the increase in airfares. Additionally, the airline has faced issues with its employees, with concerns about them sharing information with customers that should only be discussed by management. On June 5th at 6 am, a female passenger wearing a loose flannel shirt and colorful scarf was deemed inappropriately dressed by an attendant who criticized her cleavage. Although officials later apologized and provided a refund, airline employees possess a "contract of Cambridge" that allows them to refuse transportation to customers whom they deem lewd or offensive in appearance. Another recent complaint involves an attendant removing a woman from the plane, stating that she looked "too Muslim" due to her headscarf and a statement she made on her cell phone, which raised suspicions of terrorism.The woman is suing the airline for discrimination charges (Howell, 2011). In April, a man named Mathew Harper was asked to leave a SAW flight from Chicago to Denver due to overbooking. A cabin crew member questioned

Mr. Harper about the company's size policy, which states that one passenger's space cannot encroach on another's. Mr. Harper was allowed to board as he stated his body was not encroaching on another passenger since there were empty seats between him and the next seat (Kim, 2013).

The Texas resident felt humiliated by being asked to leave the flight. He declined a $100 offer and stated he will take legal action instead. Despite SAW's apologies to offended and discriminated passengers, they still allow attendants to unfairly treat innocent people who have purchased flights with them.

Southwest Airlines' mission is dedicated to providing the highest quality of customer service with warmth, friendliness, individual pride, and company spirit (Kim, 2013).

To Southwest Airlines employees, they are committed to offering a stable work environment with equal opportunities for learning and personal growth. Creativity and innovation are encouraged for enhancing Southwest Airlines' effectiveness.Employees within the organization are expected to share the same concern, respect, and caring attitude as Southwest Airlines provides externally. The mission statement of Southwest is focused on service and does not set operational goals. According to Elizabeth Bryant, the senior director of talent management at Southwest, the leadership development process reflects the company culture and is consistently practiced. Leaders at Southwest mentor employees to broaden their perspectives and stimulate their passion for their job. Jeff Lamb, the chief people officer at Southwest, states that the culture developed by the airline is the same for both employees and leaders, allowing employees to "be themselves" while enjoying their work. Organizations like SAW will benefit from reduced turnover and improved performance by encouraging newcomers to embrace their authentic strengths. By allowing employees

to use their own signature strengths, they become more invested in their work. When companies try to impose their values and norms on new employees, they are less likely to adapt as conditions change.SAW hires individuals who are willing to express their true selves and utilize their unique skills and strengths in the workplace. This approach to employee hiring and training is time-consuming and expensive, but SAW recognizes its importance in achieving successful colonization within the company. SAW values the talented individuals it employs and has made improvements to its staffing and recruiting infrastructure to align with its strategic human resource goals.

To support its location-based recruiting system for positions such as Flight Attendants, Pilots, Mechanics, Sales Agents, and Ground Operations Agents, SAW has enlisted the help of Deploy Solutions, a leading provider of applicant tracking. By partnering with Deploy, SAW will be able to effectively monitor its growth and benefit from various HER efficiencies. These include streamlined creation and approval of job requisitions, improved real-time candidate matching and ranking, expedited selection, scheduling, screening, and feedback for interview teams, upgraded compliance tracking for Equal Employment Opportunity, faster approval for hiring decisions, simplified creation and presentation of job offers, and automated correspondence generation.(SOURCE: Deploy solutions)

SAW airlines have a policy of not flying to destinations that require their staff to relocate. However, employees are free to move around the country. Eligible employees, along with their spouses, eligible children, and parents, are provided with free flights on SAW airlines. This is seen as a great perk by the employees. Additionally, they receive discounted travel on other carriers, subject to certain restrictions.

Guest passes are provided to employees for friends and

family who do not meet the eligibility criteria for SAW flights. Many companies, including hotels, theme parks, and rental car companies, offer discounts to SAW customers.

When it comes to staffing, having higher levels of supervisors adds value by allowing them to build relationships with new frontline workers. Frontline supervisors undergo training on how to fulfill their responsibilities and staffing duties with new employees. Instead of disciplining and taking action, they act as coaches when problems arise.

There is typically one supervisor for every 10 to 12 employees. These supervisors use psychological techniques to build lasting relationships with onboard staff.

SAW emphasizes the importance of the person-job and person-organization match. They believe that their greatest asset is the people who create a positive experience and fun for customers. This philosophy makes SAW a great place for employees to work.The corporate culture prioritizes giving back to employees first, allowing them the freedom to pursue their own interests. The company believes that travel is enjoyable and that treating customers with dedication is important. Customers appreciate that their bags fly for free, which boosts their satisfaction with the company. Employees are proud of the purpose of the company and are provided with a stable work environment, equal opportunities for growth, and a focus on creativity and innovation. The same level of concern and respect is expected from customers towards employees. Overall, the organization sees it as mutually beneficial to share their commitment with customers. The company aims to create a sustainable business and will measure performance based on key indicators, including performance, people, and planes. They will track progress, benchmark against industry counterparts, define future goals, and increase employee involvement. Their

goal is to always do what is right for stakeholders and each other.

They reiterate my previous statement about Living the Southwest way. This means having a Warrior Spirit, a Servants Heart, and specific behaviors that promote safety, profitability, and a positive work environment (Keller 2013). Southwest Airlines was established in 1971 with the goal of serving the routes in three Texas cities. The company has been highly successful and is now considered a benchmark for productivity, quality initiatives, performance handling, and on-time performance. Southwest Airlines is comprised of nine unions that support various aspects of employee relations. Throughout its history, the unions have always worked together harmoniously without any issues.

From the start, Southwest Airlines invited the union to join the company in 1971, even though there is no formal union-management structure or necessity to be associated with the union. Employee concerns have always been addressed through an open-door policy with the company. Any major concerns are directly mailed to retired CEO Herb Keller, who forwards them to the appropriate manager for handling and provides a personal response to the employee. "It's part of the culture," said one employee. Additionally, Southwest Airlines has a "culture committee" consisting of 127 members who meet with the vice president to discuss and address issues and concerns. This committee also educates new and existing employees on a yearly basis through "Back to Basics" sessions, which aim to provide company information and prevent employee burnout.

Southwest Airlines (SAW) has utilized its human resources to gain a competitive advantage. The company communicates with its staff continuously to educate them and promote high company values. Despite minimal negative employee comments, SAW has

not been biased in hiring, recruiting a diverse population of employees internally and externally. The employees are not treated as regular employees; instead, SAW goes to great lengths to develop their skills and reduce turnover.

SAW's strategy revolves around offering the lowest fares and providing shorter flights at a lower cost. Although it does not aim to be the biggest airline, SAW benefits from being the best. The company targets both businessmen and leisurely travelers in major cities like New York. SAW hires authentic individuals who are empowered to make decisions and ask questions. The success of SAW airlines is attributed to these factors.

The employees of Southwest Airlines, despite being mostly union, have a strong devotion to their employers and their job. They are committed to promoting the company and contributing to its growth by establishing a positive reputation. Various articles discuss different aspects of Southwest Airlines, such as incidents involving discrimination towards Muslim passengers, issues with internet access on aircrafts, the financial status of the company, and labor problems that have not affected Southwest in the past. These articles can be found at www.Debatable.Com/.../major-security-threat-Muslim-woman-ERM..., blob.Apex.Rare/...Southwest-airlines-admits-infilling-internet-problems-lee..., www.Businessperson.Com/man-kicked-off-flight-for-being-too-fat-2013-4, and business.Time.Com/2013/03/26/southwest-airlines-were-not-really-about-cheap-flights-anymore. Cable, Daniel M., Going, Francesca, Stats, Bradley also provide relevant information on Southwest Airlines.

In 2013, a research feature titled "Reinventing Employee Onboard: Getting the Onboard Process Right" discussed the importance of indoctrinating new employees into a positive environment with a common theme and organizational culture. The authors, Charka, R., Trotter, S., and Noel, J. (2001), highlighted the significance of leadership at every level in maintaining a company's survival in their book "The Leadership Pipeline: How to Build the Leadership-powered Company" published by Josses-Bass. They emphasized the

need for companies to grow leaders from within. Additionally, a magazine article from Siebel discussed a Southwest Airlines attendant addressing a woman about her anatomy and dress, showcasing the importance of addressing appropriate behavior. The authors, Michaels, E., Handheld-Jones, H., and Exalted, B. (2001), in their edition titled "The War for Talent" published by Harvard Business School Press, brought attention to the ongoing challenge of attracting and retaining talented individuals in the corporate world. They argued that this challenge would persist despite economic fluctuations over the next two decades.Mission of Southwest Airlines (2007). Retrieved online, July 30, 2013, from http://www.Southwest.Com/about_saw/mission.HTML.

Newsweek. Petersen, Daniel. Southwest Airlines: Culture, Values, and Operating practices.3/1/1999, volt.33 Issue 9, POP. 1 p.2 chloroplast's.USN: 00289604

What problems do you foresee that Gary Kelly has in sustaining the culture strong one.DOD customer same Second element keep customer happy South west's culture is a It's all about being out going (Luvs), having fun, and giving The problem that Gary Kelly is going to have s having the passion that Herb Keller had

This articles focuses on several leadership cultures during crisis, chaos and economic downturn.Capos.Com and GE Capital are similar challenges in among the organizations shifting environments and facing motivating and engaging employees.

Lawyer, E. E. Ill (2000). Pay strategy: New thinking for the new millennium. Compensation and Benefits Review, 32(1).

Retrieved May 15, 2008, from Protest Psychology Journals.

This Journal is an overview of Southwest airlines and its strategy.Particular paid to the hiring and promotion practices, and how Southwest attention is Airlines select individuals based upon their fit with the organizational culture.A portion of the paper is devoted to assisting and measuring the effectiveness of HRS efforts

and metrics and analyses might be added to improve the assessment www.MacAfee.C/Classes/BEMIRE/Papers/Texas/351 [Southwest.

The article "Southwest Airlines: Culture, Values, and Operating Practices" by Daniel Petersen discusses the challenges Gary Kelly might face in sustaining Southwest's strong culture. It highlights the importance of keeping customers happy and maintaining an outgoing and fun culture. However, it notes that the problem Kelly might encounter is lacking the same passion that Herb Keller had.

Another article focuses on leadership cultures in crisis, chaos, and economic downturn. It compares the challenges faced by Capos.Com and GE Capital in motivating and engaging employees in shifting environments.

The journal "Pay Strategy: New Thinking for the New Millennium" by E. E. Ill Lawyer discusses Southwest Airlines' strategy, paying particular attention to hiring and promotion practices. It emphasizes the importance of selecting individuals who fit with the organizational culture. The paper also discusses measuring the effectiveness of human resources efforts and suggests adding metrics and analyses to improve the assessment.This Futures article discusses employee relations in various leading classes of employment research. The author examines talent acquisition, training and development, and succession planning as crucial factors for organizational growth. It is emphasized that organizations must value and continuously train their employees, or else others will be promoted to higher roles. The report also highlights the importance of retaining top performers.

A booklet on Southwest Airlines culture and diversity is mentioned, along with its focus on training their employees. Additionally, an article explains Southwest Airlines' culture, values, and unique practices, such as assigning customers to boarding groups based on check-in time and having energetic crews that occasionally break into song instead of providing video or entertainment.

Sources:
- PDF:

http://www.southwest.com/assets/PDF/corporate.../southwestwards.PDF
- Website: http://www.southwest.com/HTML/about-southwest/index.HTML
- Website: http://www.thesouthwestward.summaries.com
- Website: http://www.slideshows.net/ataxiale/southwest-airlines-culture-values-and-operating-practices

Meal service on historically full-service airlines is less compared to Southwest Airlines. Flight attendants and pilots assist in cleaning planes and are paid per trip. You can find more information about Southwest Airlines in this pamphlet: http://www.Southerliness's.Com/_PDF/people.PDF. Another pamphlet available is titled "The Southwest Airlines Way," which emphasizes the use of relationships to achieve high performance. You can access it here: http://www.Theistic.Com/resources/ TheSouthwestAirlinesWay.PDF.