Analytical Project Southwest Airlines - Case Study Example

Analytical Project Southwest Airlines Table of Contents An Overview of Southwest Airlines (SWA) 2 Summary of SWA’sStrategy 3 Management Development Training Program for Managers and Supervisors 3 Organizational Analysis 4 People Analysis 4 Task Analysis 5 Management Development Training Program 5 A. Creating a Learning Environment: 6 B. Transfer of Training 8 Relevant Transfer of Training Theories 8 Work Environment 9 Developing an Evaluation Plan 10 Identifying relevant learning outcome(s). 10 Selecting an evaluation design. 11 Summary Comments 12 References 14 Analytical Project Southwest Airlines An Overview of Southwest Airlines (SWA) Industry: Throughout the world, air travel is considered to be one of the largest industries; this industry is growing every year. The industry facilitates world trade, tourism, international investment, economic growth. It is also a centre of the globalization that is taking place in many of the industries. In the past decades, worldwide, travelling has been taken place for both leisure and business. Therefore, per year air travel has grown by 7%. Approximately, about 1.5 billion people are travelling through airlines worldwide (The Airline Industry, 2000). Type of business: The airline is considered to be the tertiary industry that offers its services to all the people, directly or indirectly. When tourism is promoted in the country, it is the airlines that improves the economy and in turn affect every member of the society (Southwest, 2011). Form the airlines industry, the paper discusses Southwest airlines in detail. Size: The total number of employees in the southwest airline is about 3500. In the year 2010, their net income was $ 459 million. Moreover, excluding the special items, their net income turns out as $550 million. Throughout the year on the airline, a total of 88 million people have travelled. The statistics report of 2010 shows that their operating revenue of the year 2010 was $12.1 billion (Southwest, 2011). Service provided: Southwest airline is considered as the United States’ most successful high frequency, low fare, and point to point carrier. Every day they offer more than 34000 flights coast to coast. This makes it one of the largest domestic passenger airlines of the states (Southwest, 2011). Market served: Southwest airline is the domestic airline; it flies to 37 states; 72 cities. They serve these cities by using 548 Boeing and 737 jets (Southwest, 2011). Summary of SWA’s Strategy Mission: The mission of Southwest Airline is “dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.” The mission of the company is to provide their customer with the best quality that will force them to return to them more than once (Southwest Airlines, 2011). Organizational objectives: The objectives of the company are to efficiently deliver the basic services (Southwest Airlines, 2011). To achieve this goal they have divided this objective into a number of fundamental objectives. They want to provide their customers with safe, low price transportation with maximum convenience. Overall HR strategy: The HR strategy of the company is “recognizing that our people are the competitive advantage, we deliver the resources and services to prepare our people to be winners, to support the growth and profitability of the company, while preserving the values and special culture of Southwest Airlines” (Buller, 2006). Being a great place to work, the airlines is selective in hiring and looks out for the best employees that can satisfy the needs and wants of the company as well as the customers. Key strategies: The key strategy of the company includes being cost effective, so that they can capture greater number of customers. They are also specialized in short-haul flights to their customers. They tend to give their customers the best services in return of the price they pay. This strategy is considered to be their core strategy (Southwest Airlines, 2011). Management Development Training Program for Managers and Supervisors The needs assessment process (Figure 3.2) necessitates delving into an organizational analysis, person analysis and task analysis to effectively recommend three (3) topics to be included in the Management Development training program. A closer look at results of the three levels of analyses is presented below: Organizational Analysis First and foremost, the organizational mission of Southwest Airlines (SWA) was reported to focus on two relevant aspects: customer service and employee commitment (Southwest Airlines (SWA), date, p. 639). Likewise, the organizational goal was disclosed as delivering a basic service efficiently and safely (SWA, date, p. 640). Their business strategy thrives in emphasizing low cost yet safe reputation corporate image. Being structured formally and manifesting centralized organization, SWA, the organization is differentiated from others through its practice of a “tight-loose” where employees follow stringent rules but were given appropriate leeway in decision-making especially in terms of customer service. This means that operations are highly standardized but encourages empowering employees to satisfy customers. As such, hiring, screening and selection functions were centralized and people involved in these functions were trained to be highly involved. As explicitly stated, involvement “helps SW build a strong network of employees, who can then successfully forward the organization’s mission of providing the right attitude and service to its customers” (SWA, date, p. 645). People Analysis People are identified as the most crucial resource at SWA. Those that were considered for various positions were noted to have aptitude and attitude; where the predictor used was disclosed as personality and values. The traits and characteristics that management looks into for potential candidates are “a blend of energy, humor, team spirit, and self-confidence” (SWA, date, p. 643). As such, hired employees are compensated very competitively contributing to low turnover, low labor costs, higher employee satisfaction and delivering excellent customer service. Task Analysis The general value added activities noted for airline organizations are aircraft procurement, aircraft maintenance, reservation systems, schedule and route planning, in-flight services and after-flight services (SWA, date, p. 637). SWA is differentiated from others in terms of performing in-house maintenance services but virtually no postflight services. Likewise, SWA boasts of offering greater frequency in flights and consistency in on time arrivals and departures; again, facilitating in the achievement of organizational mission and goals. From the needs assessment, the three topics recommended to the Management Development training program are: Customer Service - “Increasing Customer Satisfaction and Retention; Organizational Culture; and Implementing Change. These topic were selected for the following rationales: (1) emphasis on the paramount importance of customer service as it emerged under organizational, people and task analyses; (2) the organizational philosophy that the creation of a unique organizational culture has been instrumental for SWA’s continued success in the industry; and (3) that different challenges and developments in the external environment would necessitate a closer look at implementing change as a process of natural evolution and transformation for the betterment of the organization. Management Development Training Program From among the three topics recommended, one would develop a training program for implementing change due to the various changes in the external environment that would affect the way SWA would sustain its current operations and support the need to achieve their mission and goals. As indicated, there is an impending limited pool of human resources in the labor market; external conditions putting pressure on its business operations; the change in CEO from Herb Kelleher to Gary Kelley; and the rest of the external environmental factors (direct competition, weakened labor relations, change from short-haul to long-haul airline) necessitate training for managers and supervisors to assist in implementing change within SWA. A. Creating a Learning Environment: (i) Relevant learning outcomes: a. Increased verbal information on implementing change. b. To apply intellectual skill in the change process. (ii) Relevant learning theories: a. Theory of Stimulus b. Cognitive Theory (iii) Specific training objectives: a. To prepare SWA personnel for transformations within internal policies and uses of resources to effectively embrace challenges posed by the external environment; b. To assist managers and supervisors in addressing any resistance to change. (iv) Considerations in designing an effective training program For the Management Development training program, the following major considerations are needed: the training design (which includes the scope, delivery, objectives, resources, people involved, topical outline, administration and evaluation); and a lesson plan that indicates the features of the training program, the lesson outline and all relevant details that are required. To apply these in implementing change, the following Tables (Table 1: Design Document and Table 2: Lesson Plan) are presented: Table 1: Design Document for Implementing Change Purpose: (a) To prepare SWA personnel for transformations within internal policies and uses of resources to effectively embrace challenges posed by the external environment; (b) To assist managers and supervisors in addressing any resistance to change. Goals: Managers and supervisors would be apprised on enhanced verbal information on implementing change and the need to apply intellectual skill in the change process. Target Audience: Managers and Supervisors Training Days: 3 days to One week (afternoons only) Method: Lecture, Video, Simulation Activities Participants Per Session: 10 to 20 Location: Head Office, Human Resources Function Room Prerequisites: None Problems and Opportunities: Need for change clearly established and potential resistance addressed; Effective implementation and managing change would enable SWA to keep abreast of challenges, threats, and risks in the external environment. Table 2: Detailed Lesson Plan Course Title Implementing Change at SWA Lesson Title Using theory of stimulus and cognitive theory in implementing and managing change in the work setting Lesson Length 3 consecutive afternoons (extendable as determined) Learning Objectives 1. To establish the need for change 2. To solicit ways of implementing and managing change 3. To determine its possible effects on current and future operations. Target Audience Managers and supervisors Prerequisites: Trainee: Instructor: None Expert in implementing and managing change Room Arrangements Flexible depending on training method Materials and Equipment Needed VCR, overhead projector, pens, transparencies, video on “Implementing Change”, simulation activities and exercises Evaluation and Assignments Results of simulation exercises, possible resistance to change scenarios Comments Training module and hand-outs to be distributed one week in advance B. Transfer of Training Relevant Transfer of Training Theories Transfer of training is designed for the training procedures used on the job. It has three stages; positive, negative and zero transfer. Here the positive transfer is considered when improvement in the job is seen and the zero shows no effect on the job performance, whereas the negative transfer refers to the training that hinders efficient job performance. The strategy of the Southwest’s business starts with its workforce. They carefully select their workforce and train them so that they can reflect the image of the company. They start with hiring cautiously. Since the employees reflect the company’s image and the company wants to obtain people that have the right attitude for their organization, the candidates go through a strenuous process. This is because they believe that the skills can be taught, however, the attitudes cannot. The required attitude for the company includes positive self image, internal locus, positive attitude, and highly diligent and thorough. Once the company hires the right people for the job, their training begins. The three general theories that are applied to the transfer of the training are Identical Element; showing that the training needs to be on the identical elements that will be used on the job. Through this approach, the training environment is similar to the work environment. The other approach is Theory of Stimulus, which says that the training must focus on general principle or strategies. As the employees can encounter novel situations, this training can help them handle odd situations. The last approach is Cognitive Theory; this training focuses on the information processing. The emphasis of the theory is on the issues that are going internally. In this approach, the trainees are trained in a way that they can apply their knowledge on the job, and it is easily retrievable. The environment of the Southwest Airline is very friendly. It has hardly faced the labour dispute and bad union relations within the family. The company practices profit sharing approach with its employees. Since the employees are getting share from the business, therefore it encourages them to be more vigilant in acquiring the business. The friendly family of the Southwest aims to provide their company and atmosphere that is fun to work in. The thinking pattern of flat structure, teams, profit sharing, and good labour relations, modifies the behaviour of the employees and results in excellent customer services. In the environment of Southwest Airlines, since the safety and time are of highest priority for the corporate office and flight crew, the Identical Element Theory applies here. However, for the customer care, employees are given informal job descriptions. The airline empowers its employees to take those measures that are necessary to please their customers; therefore, the Cognitive Theory is applicable for them. This way it gives the employees flexibility to try new things for their customers while they maintain safety. Work Environment For the technical staff, since the nature of the job is quite mechanical, therefore, operations of the airline must be efficient and consistent; for this purpose they need to be trained in the original working environment, and for them Identical Element approach would be considered as the best approach. In case of the customers, the mission of the airline is to provide them safe and efficient journey, hence the Cognitive Theory is effective. Through this theory, being in the sphere of tight rules and procedures, they can decentralize the decision making power and help their customers as much as they can to have a safe and comfortable journey. In the flight, in order to fulfill the needs of the passengers, the flight attendant needs to manage the cabin instructions and by the help of their own judgment they can satisfy the needs of the passengers. Moreover, the company has informal open door policy; in this policy, the employees are encouraged to try new things to satisfy the needs of the customers. While doing this they are given the confidence that they will not be reprimanded. This freedom allows the employees to bring their new ideas for the satisfaction of the customers. Due to this working environment, the Cognitive Theory is applicable in the Southwest Airlines where they can use their knowledge on their job activities. As the Southwest Airlines is only dealing with domestic airlines, their organizational structure is less complex as compared to other competitor airlines. Therefore, they have less complicated networks and organizational management issues, and hence they can apply these theories for the safety and reliability of the customers in a more practical manner. Developing an Evaluation Plan Identifying relevant learning outcome(s). According to Hamblin (1970) an evaluation of training is "any attempt to obtain information (feedback) on the effects of a training program and to assess the value of the training in the light of that information" (cited in Cole, 2003, p. 359). As indicated, the learning outcomes identified for the Management Development training program that focuses on implementing change are: (a) increased verbal information on implementing change; and (b) to apply intellectual skill in the change process. In this regard, the most appropriate outcome criteria are reactions of managers and supervisors through interviews and surveys. When time and resources would allow, the evaluation could extend to using learning or cognitive outcomes by measuring what the managers and supervisors have learned, imbibed and synthesized from the training program. This could be measured by conducting general tests on the topic and from the responses generated from the participants during the interaction and feedback portion of the program. Selecting an evaluation design. An evaluation design that could be used for this training program is the posttest only, where managers and supervisors’ performance and outcomes regarding their ability to manage change would be measured against company standards. For example, if part of the training program indicates that managers should orient their subordinates on new policies and procedures as implemented by the new CEO, Gary Kelley, a posttest evaluation could be conducted by testing their respective subordinates on their knowledge and orientation to the new policies. This would determine if the respective managers were effective in echoing the principles, concepts, facts and strategies needed for implementing change. Likewise, if a standard at SWA is that there should be a minimum of 5% complaints received from the customers, if, after implementing changes as proposed by the new CEO, for example, or changes in strategies to respond to competitors’ actions, the percentage of complaints decreased to 3%, then the training program was effective. Both the training program and the evaluation design should be assessed in terms of effectively gauging the changes in the managers’ and supervisors’ ability to implement and manage change at SWA. Using the posttest as an evaluation design would appropriately address the training objectives that were initially identified: (a) to prepare SWA personnel for transformations within internal policies and uses of resources to effectively embrace challenges posed by the external environment; and (b) to assist managers and supervisors in addressing any resistance to change. As emphasized by Mathis and Jackson (1991), “evaluation of training compares the post-training results to the objectives expected by administrators, trainers, and trainees” (cited in Sims, 1993, par. 5). This is definitely achieved by the evaluation design selected. Summary Comments The analytical discourse used the experience of SWA to develop a Management Development training program for managers and supervisors. By initially using the Instructional System Design (ISD) process as the theoretical framework, a recommended topic delving specifically on implementing change was chosen to be included in the training program. The rationale provided for the selection was the various challenges and transformations that impinge on the operations of SWA found in the external environment. From among the pressing factors noted were an impending limited pool of human resources in the labor market; external conditions putting pressure on its business operations; the change in CEO from Herb Kelleher to Gary Kelley; and the rest of the external environmental factors (direct competition, weakened labor relations, change from short-haul to long-haul airline) necessitate training for managers and supervisors to assist in implementing change within SWA. As such, these factors justify including implementing change in the training program to enable managers and supervisor to design appropriate strategies that would prepare their human resources to meet these challenges. The discussion on the transfer of training identified significant training theories (Identical Element, Theory of Stimulus, and Cognitive Theories) as applicable and relevant in SWA’s work setting. Likewise, the work environment characteristics generally described the working condition that affects various stakeholders: technical staff, people who directly deal with customers, and managers’ leadership practices. Finally, through developing and evaluation plan, the effectiveness of the training program to achieve defined learning objectives, goals and the training objectives, per se, were appropriately measured. Overall, by infusing more knowledge on the need of SWA to implement change through identification of the continually evolving external environmental factors, the ability of SWA to competitively survive and sustain leadership in its respective niche would be successfully attained. References Buller & Schuler. 2006. Managing Organizations and People. Ohio: Thompson Cole. (2003). Man Theory and Practice. Cengage Learning EMEA. Hamblin, A. (1970). Evaluation and Control of Training. McGraw Hill. Mathis, R., & Jackson, I. (1991). Personnel/Human Resource Management. St. Paul, Minn.: West Publishing Company. Sims, R. (1993). Evaluating Public Sector Training Programs. Public Personnel Management, Vol. 22. Southwest, 2011. Accessed on 4th May 2011 from http://www.rci.rutgers.edu/~schuler/.../revised~southwest~airlines.doc Southwest, 2011. Fact Sheet. Accessed on 4th May 2011 from http://www.southwest.com/html/about-southwest/history/fact-sheet.html \ The Airline Industry, 2000. Accessed on 4th May 2011 from http://adg.stanford.edu/aa241/intro/airlineindustry.html Read More