Southwest Airlines' Organizational Culture
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Case Details:
Case Code : HROB021
Case Length : 15 Pages
Period : 1971 - 2001
Pub Date : 2003
Teaching Note : Available
Organization : South west Airlines
Industry : Aviation Countries : USA
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Excerpts
Shaping Southwest's Organizational Culture
Operational Philosophy
Southwest's objective was to provide safe, reliable and short duration air
service at the lowest possible fare. With an average aircraft trip of roughly
400 miles, or a little over an hour in duration, the company had benchmarked its
costs against ground transportation.
Southwest focused on short-haul flying, which was expensive because planes spent
more time on the ground relative to the time spent in the air, thus reducing
aircraft productivity. Thus it was necessary for Southwest to have quick
turnarounds of aircraft to minimize the time its aircraft spend on the ground.
Southwest limited the turn time for each plane to ten minutes or less. It has
managed to limit airplanes' turn time to (about 20-25 minutes) over the years
(Refer Table II.)...
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Leadership
Southwest's organizational culture was shaped by Kelleher's
leadership. Kelleher's personality had a strong influence on the culture of
Southwest, which epitomized his spontaneity, energy and competitiveness.
Southwest's culture had three themes: love, fun and efficiency. Kelleher treated
all the employees as a "lovely and loving family". Kelleher knew the names of
most employees and insisted that they referred to him as Herb or Herbie.
Kelleher's personality charmed workers and they reciprocated with loyalty and
dedication. Friendliness and familiarity also characterized the company's
relationships with its customers...
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Building Relationships
Since its inception, Southwest attempted to promote a close-knit,
supportive and enduring family-like culture The company initiated
various measures to foster intimacy and informality among employees.
Southwest encouraged its people to conduct business in a loving
manner. Employees were expected to care about people and act in ways
that affirmed their dignity and worth. Instead of decorating the
wall of its headquarters with paintings, the company hung
photographs of its employees taking part at company events, news
clippings, letters, articles and advertisements. |
Colleen Barrett sent cards to all employees on their
birthdays...
Excerpts Contd...>>
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