Southwest S Case Study Management Control System

Southwest S Case Study Management Control System-8
A guiding principle is: If you use your best judgment to do what is right, your leaders will stand behind you.Over the years, Southwest management has gone to extreme lengths to avoid layoffs.

A guiding principle is: If you use your best judgment to do what is right, your leaders will stand behind you.Over the years, Southwest management has gone to extreme lengths to avoid layoffs.

More recently, following September 11, Southwest was the only airline that did not lay off any workers or reduce its flight schedule.

One reason why the airline doesn’t lay people off has to do with its hiring practice: It looks for attitude before experience, technical expertise, talent, or intelligence.

It regularly ranks in the top 10 of the “100 Best Companies to Work for in America.” In a company that is 85 percent unionized, Southwest has been able to develop high loyalty among its people because it instilled the “soft stuff into its organizational processes from its inception.

Chairman Herb Kelleher’s motto for both Southwest employees and the airline as a whole is “Manage in good times to prepare for bad times.” To succeed in today’s marketplace, the company cross-trains employees and increases their skill base so that individuals at all levels can take personal responsibility for keeping the company marketable, maintaining high-trust relationships, and identifying effective options for dealing with transitions.

As an article in The Wall Street Journal describes, “Southwest has managed to remain profitable while all others have suffered huge losses. And the really interesting thing is that Southwest employees appear to have understood that.” Donna Conover, executive vice president of customer service, points out that the company has high expectations for each employee.

Exemplification Essay Introduction Paragraph - Southwest S Case Study Management Control System

“Just doing your job well does not make you a good employee.Southwest Airlines—which has practiced servant-leadership for 33 years — is one company that has managed to thrive in the face of adversity.In 2001, the company was the only major airline to make a profit.“We figured that if we could turn our planes in 10 to 15 minutes rather than 45, we could still keep the same number of flights even with one less plane,” explains Miller.“This significantly more efficient turn-time set a record in the airline industry.It began 30 years ago when the Southwest ‘Warrior Spirit’ was born — the will among leaders and employees alike to fight, to do whatever it takes to make the airline successful.” Examples of heroic service abound.For instance, in the airline’s early days, when Southwest’s bank repossessed one of its four planes, forcing it to cancel a fourth of its flights, employees got creative.Because they understand that long-term profitability comes from capitalizing on employees’ wisdom and capability, Southwest sees massive layoffs as merely “quick fixes” that often fail in the long run (see “Layoffs That Fail”).Because of the company’s commitment to its workforce, Southwest employees perform at heroic levels on a daily basis and volunteer to make huge personal sacrifices on behalf of the company in hard times.The attitude and spirit toward others complete the needs the company has of that employee.As leaders, if we allow lack of teamwork or low productivity, we are being unfair to the rest of the team.” Time and again, Southwest employees have more than held up their end of this new employee-employer contract.

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