Diversification Strategies of Southwest Airlines - Essay Example

Diversification Strategies Determining how the corporate culture of Southwest Airlines differs from other airlines Southwest Airlines was constructed as an intrastate airline which would take a trip between Dallas, San Antonio, and Houston. A combination of fares that are low, outstanding services, an utterly different culture, as well as, a select on Love Field permitted Southwest Airlines, in the early on days, to develop, mount up capital, generate money, as well as, building an asset base was the basis of the airline. Southwest Airlines subsequent to building its asset base, became a considerable company and began a service pattern from which it did its experiment and refinement (Jackson et al, 2012). A component of the great strength the Southwest Airlines encompasses is the immense understanding of the Herb which has consistently adhered to a pattern of maintaining low costs in all the places it has gone. The Southwest Airline centers on culture, leadership, communication, hiring practices and interviewing, as well as, the games that are used to motivate the employees of the airline. These areas best portray the company that has created success through inspiration after widespread research by the group. The understanding of Southwest’s leadership has allowed for the structuring, management, as well as, the motivation of employees. Leadership at the Southwest Airlines has played a paramount responsibility in the company’s success. The definitions of leadership, whereas true in the majority of cases, are implemented extremely liberally at the Southwest Airlines. Leadership is a manner of life, desire, culture, as well as, dedication at the Southwest Airlines. Southwest focuses on individuals as people and recognizes them as valuable assets to the company. Numerous businesses in the USA make use of performance measurements to scrutinize the actual performance. Other companies maintain such metrics through functional area to make certain of the functional answerability. Southwest considers functional answerability as a lead to the finger pointing involving departments (Lauer, 2010). Analyzing ways that the unique culture of Southwest Airlines has benefited the airline and its employees Southwest Airlines’ team of management emphasizes a straightforward going hassle-free corporate style which grants employees extensive independence of operation. The culture of Southwest that lays emphasis on the employees to be the “first customers" of the airline, as well as, passengers to be the subsequent, has been fundamental to the accomplishment of Southwest. Southwest desires to put forward a unique, as well as, a fun experience to all the customers (Grubbs-West, 2005). For instance, the flight attendants are predisposed to say whatever thing via the telecom. The flight attendants frequently run humorous challenges with the passengers such as providing a free-round trip anyplace. The philosophy of Southwest encompasses shared knowledge, as well as, shared goals. Southwest makes use of team metrics instead of functional metrics. An instance of a team gauging is with regards to the departures time percentage. The statistic is a responsibility of every Southwest person at a particular airport. In numerous companies, job descriptions without a doubt define roles between human resources and departments. The philosophy of Southwest, in addition to the shared goals and knowledge, also encompasses mutual respect. The expectation of Southwest is that every persons job includes assisting colleagues with their job whenever necessary. Through provision of greater work flexibility, Southwest Company has the belief that it advances labor productivity, as well as, providing them with a competitive benefit. Many corporations in the USA have put into operation a formalized “quality management plan” but failed as those were “monthly programs.” Putting into action “quality” all through a company is not the consequence of a formalized plan, but calls for a cultural change in the manner daily actions are conducted (Hitt et al, 2011). The obligation of doing it correctly in the initial time ought to be incorporated into the daily actions or culture of the corporation. Quality should be entrenched. Overall, Southwest is extremely efficient in integrating the significance of quality in its general operational activities, strategic plan and its business model daily. Speculating how Southwest Airlines will continue to thrive as a company supposing its current corporate culture requires changing in the near future The strong organizational culture of Southwest has increased its behavioral consistency, thereby eliminating the necessity for formalization, whereas consistently dipping turnover. Southwest’s culture has formed boundary-characterization, a sense of individuality and obligation which goes far beyond interest of self (Flamholtz & Randle, 2011). The transmission of culture by Southwest to their employees is done through various stories, laughter, comedy rituals, and games. Culture is potent, patterned, and deeply entrenched in the thoughts of people, their perceptions, as well as, feelings. Therefore, it offers an incorporated perspective and importance to situations as it grants members of the group a historical perception and view of their individuality. Southwests culture is self-actualizing and values ingenuity, task accomplishment, as well as, both individual development and satisfaction. Additionally, Southwest encompasses a humanistic-heartening culture which is managed through a participative and employee-focused approach (Gittell, 2005). An affinitive culture is also demonstrated by Southwest which places high priority with regards to the construction of interpersonal relationships, as well as, the individual satisfaction of its human resources. Southwest has demonstrated that attention is shifting to the necessity of employees to individually take responsibility for the accomplishment of their business supposing they have hopes of survival and prosperity. The success realized is evident from the effective empowerment by the Southwest Company has been achieved through a culture that is extremely sturdy, meaningful, as well as, self fulfilling. References Flamholtz, E., & Randle, Y. (2011). Corporate culture: The ultimate strategic asset. Stanford, Calif: Stanford Business Books. Gittell, J. H. (2005). The Southwest Airlines way: Using the power of relationships to achieve high performance. New York: McGraw-Hill. Grubbs-West, L. (2005). Lessons in loyalty: How Southwest Airlines does it : an insiders view. Dallas, Tex: CornerStone Leadership Institute. Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2011). Strategic management: Competitiveness & globalization. Mason, OH: South-Western Cengage Learning. Jackson, S. E., Schuler, R. S., & Werner, S. (2012). Managing human resources. Mason, OH: South Western/Cengage Learning. Lauer, C. (2010). Southwest Airlines. Santa Barbara, Calif: Greenwood. Read More