StudentShare solutions
Triangle menu

Incentive Plan - Assignment Example

Nobody downloaded yet

Extract of sample
Incentive Plan

During the period 2001-2005 which was considered the worst period for airlines it still made money on each and every year. A key to its success is keeping its planes full by capturing enough flying passengers. However, there is one other key aspect of its success that is rarely talked about and that is its incentive plan for its employees. Southwest Airlines has an outstanding corporate culture that encourages all its employees to render extra services to make flying with them a satisfactory experience.
The founder of Southwest Airlines, Mr. Herb Kelleher, attributes the airline’s success to its unique culture that is intangible and hard to imitate by its competitors. It is this spirit of competitiveness that has propelled the airline forward to continuous profits over the years. In this regard, the airline adopts the total rewards style of management that recognizes employee performance (Jenses, McMullen & Stark, 2007, p. 61). The management uses incentive plans so that it gets employee buy-in and total commitment to its corporate objectives.
The purpose of the program is to attract and retain top talent. Southwest Airlines has one of the longest hiring policies that lasts up to about six weeks through a series of tests and interviews to make sure that prospective employees fit into its fun culture termed as “LUV” as hiring managers emphasize work attitudes more than work skills. Once hired, employees are expected to help keep costs down so the airline will remain profitable despite its low fares. A reason why Southwest is profitable is because its employees are very productive, using a ratio of passengers per employee (Southwest: 2,400:1, United: 1,175:1 & Continental: 1,125:1). All employees of Southwest Airlines are eligible for its incentive plan which is profit-sharing. In fact, the firm implemented the first ...Show more


It is one of the most challenging function in which managers need to motivate their people to give their best. This paper talks about one outstanding company in an industry that is awash in red ink. The name of this…
Author : cullen49
Incentive Plan essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the assignment on your topic
"Incentive Plan"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Managing a Golf Business
The Internal Analysis of the Business would be carried out through the evaluation of the Strengths and Weakness involved relating to the existing business environment of the Professional Golf Club.
12 pages (3000 words) Assignment
Orientation Program for New Nurse Managers
This program was made from the feed back of 2 nurse managers of different lengths of tenure in order to get a proper, non biased and objective feedback from the similarities of both their interviews. By the end of this program, the new nurse managers are expected to get a good understanding of their duties and daily responsibilities.
5 pages (1250 words) Assignment
Managing performance and participation
Recruitment In case of recruiting the new artists, Cirque undergoes numerous issues. Since Cirque seeks artists from all over the world, therefore it becomes a tough task to find out the right kind of artists that Cirque requires. Generally, acrobat, gymnasts, clowns, and dancers are recruited by Cirque, which are then referred as performing artists.
9 pages (2250 words) Assignment
Elements of Discipline plan in Elementary school Assignment
It also provide with the literature review of great historical leaders who contributed a great deal towards improving standards of elementary education in America with a history of discipline in elementary schools. It also sheds light on the most effective method of discipline.
38 pages (9500 words) Assignment
Econmic Incentive
It has established laws that aim to protect the ecosystem, endangered species, natural resources, and wildlife. For instance, it uses economic incentives such as taxes, fees, and permits to encourage adherence to environmental
1 pages (250 words) Assignment
Compensation Plan Outline
A total package of compensation may contain several components. Compensation plans mainly refer to all these components and the mode of payment and the purpose in which employees receive
4 pages (1000 words) Assignment
Training Plan
The significance of the training is paramount as the company largely depends on its customer service to reach their goals and turn a profit. Within the organization, the job description of the customer
6 pages (1500 words) Assignment
Got to Have a Goal
The second part reflected upon exploring three sales incentive plans. In this regard, customer satisfaction-based incentive, performance-based incentive and team- based
6 pages (1500 words) Assignment
Written analysis
An initial analysis shows that majority of the employees receiving the bonus have fewer years of service and a lesser hourly wage rate as compared to those who have not. Besides that fact, receivers of extra compensation achieved
2 pages (500 words) Assignment
Strategic Compensation
The two criteria that should be used to pay overtime according to person-focused pay plan are skill-based pay and pay-for-knowledge. Incentive pay in the company should be defined as compensation, whereby the rewards vary according to a set formula (Greene,
2 pages (500 words) Assignment
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Click to create a comment