DECISION MAKING PROCESS AT SOUTHWEST AIRLINES

Decision Making Process at Southwest Airlines



Decision Making Process at Southwest Airlines

Introduction

Despite the terrorist attacks, new security measures, dramatic increases in insurance costs reduce air industry, rising energy costs and a sharp reduction in consumption of Travel flight, Southwest Airlines is always ready for success. For twelve consecutive years (1991 to 2002), the Department of Transportation (DOT) Air Travel Consumer Report, Southwest Airlines has figured among the top 5 of all the major carriers for time performance, best baggage handling and fewer complaints from customers. Thus, it was a fact that the September 11 terrorist attack has brought a great impact on the airline industry both in terms of profitability and in the standards for operating procedures. The economy after recovering from the recession, the airline industry reported a net profit of about $5billion in 2009 and $3billion in 2000. Since after this, the investors started to get worried as financially strapped companies were struggling to stay afloat because since that attack the had to reduce the value-added services, restricting debt labor force, reducing number of flights(Sustar, 2005).

Thesis Statement

The paper discuss about "Southwest Airlines' Success through Organization Culture". This gives an account for the development of the organizational culture of Southwest Airlines.

Discussion and Analysis

The discussion starts with the background of Southwest and its development over the years. The paper explains the distinctive culture of Southwest, and how it has helped Southwest Airlines to face challenges.

Strategic Human Resource Management in the Airline Industry Worldwide

According to the Orraine(2006), SHRM idea is founded on a number of assumptions and hypotheses about how affray in any commerce is probable to evolve, and how this evolution can be utilised to get benefits. Greater the span to which these assumptions and hypotheses equitably, it is probable that an association can gain comparable benefit from applying these strategies. However, if these assumptions and hypotheses, in turn, do not work, then the organization's scheme is improbable to be a source of comparable advantage. Gittell (2006) acquiesces that there is a close connection between enterprise scheme and human asset administration practices. It is farther presumed that the businesses that nearly coordinate their enterprise scheme and the undertakings of human asset administration to accomplish higher presentation than businesses that manage not. International air transport commerce next alike trends.

With a net income of $459 million and a market share of 13.8%, southwest is facing acompetition with few of the top five domestic passenger carriers such as American Airlines,Delta, United, and US Airways. From the beginning this organizations implementation andmaintenance of a very unique marketing strategy and a structure is the major key to their success.

Culture of Southwest Airlines

According to Southwest Airlines mission statement, “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” (Southwest Airlines, 2012). This definitely shows a positive sign that the majority of employees working for this corporation are ...