...Explain how different leadership styles would affect group communication in your chosen organization. Southwest Airlines was the perfect choice to research because this company is not as affected by economic downturns as other companies seem to experience. The founders of Southwest Airlines Rollin King and Herb Kelleher had a clear vision of what their organization should be and is reflected in the company mission. “The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.” ("The Mission Of Southwest Airlines", n.d.). In order to accomplish their vision, both King and Kelleher adopted a charismatic leadership style. To their credit after 40 years Southwest Airlines has made a mark in the industry and is still going strong. The leadership style within this company is to maintain an open line of communication from the bottom up. This is a major change from the status quo of communication from the top down. In order for Southwest Airlines to be successful, King and Kelleher had all the key characteristics of charismatic leadership. They were both able to articulate their vision and express the importance that their vision would have for the future of the company. King and Kelleher took great risks and experience personal sacrifice in order to achieve their vision for a great company. In order to reach their goals, King and Kelleher felt a great sensitivity...
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...Strategic Management Case Analysis: Southwest Airlines Southwest Airlines Co. (Southwest) is often cited as a success story in terms of strategic management. Southwest is a passenger airline that provides scheduled air transportation in the United States. Primarily, the company offers passengers low-fare, point-to-point air transport services in 72 cities in 37 states all throughout America (MarketLine, 2012). Southwest is headquartered in Dallas, Texas, and has about 45,392 employees as of FY2011. For FY2011, the company generated revenues of $15.658 billion, increasing by 29.4% over FY2010 (MarketLine, 2012). Southwest reported net profit of $178 million in FY2011. It must be noted that the airline industry is famed for its cut-throat competitiveness. However, since its inception in 1971, Southwest has been able to steadily rise to the top of airline rankings due to its Low Cost Leadership strategy (Muduli & Kaura, 2011); Box & Byus, 2009). Southwest also consistently offers on-time arrival that, combined with low-priced fares, makes it highly favorable for passengers. Southwest is able to achieve its strategy by using a linear, point-to-point network and does not have an airport hub (Tierney & Kuby, 2008). As a result, the company’s aircraft are seldom idle while its competitors spend prolonged idle time while passengers switch planes at the hub (Tierney & Kuby, 2008). Because of the impact of this strategy on passengers and the industry as a whole, competitors tend to...
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...Southwest Airlines Co. In 1971 Herb Kelleher and Rollin King founded a low cost airline called Southwest. The focus was on short distance flights (less than 500 miles). Southwest is the only profitable airline in the United States. With the exception of the first year of operation, Southwest has earned a profit every year (Smith, 2004). Overall, the airline industry is not stable so how are they so successful? “Its employees work harder and smarter, in return for job security and a share in the profits” (Donnelly, 2002). In 1980 Southwest adopted the following mission statement: The mission of Southwest is dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit. (www.southwest.com) To our employees: We are committed to provide our employees a stable work environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. Above all, 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. (www.southwest.com) Southwest has held true to this mission statement. James Quick says “at its core are the three values of humor, altruism, and ‘luv’- and for Southwest Airlines, this has been true from day one” (1992). Kelleher was instrumental in creating and maintaining these values....
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...BUS 520 Leadership and Organizational Behavior November 6, 2013 All about Southwest Southwest Airlines (SWA) was founded by Rollin King and Herb Kelleher in 1967. Southwest got its start in Texas and has since become one of America’s most admired companies. The road of establishing Southwest was not an easy one. The company who first wanted to service within the state of Texas had to fight for 3 years against 3 other airlines in the area for rights. After a judgment by the Texas Supreme Court in 1970, Southwest was cleared to take the air. Southwest lives by their mission statement of its dedication to the highest quality of customer service to be delivered with a sense of warmth, friendliness, individual pride and company spirit (Southwest.com). With the idea of good customer service will make you money, Southwest Airlines is by far the most profitable airline even in this trying time. Southwest’s Culture Happy Employees=Happy Customers At Southwest, they believe that a happy employee equal happy customers. They strive to make every customer experience a great one and by doing this they know the employees play a huge role in customer satisfaction. The core of their being consists of having a warrior spirit, leading with a servant’s heart and having a fun-luving attitude. These three components are what Southwest Airlines work hard daily to keep alive. In an interview, Southwest chief executive Greg Kelly stated that” From our earliest days there was an understanding...
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...During the past decade, the airline industry has experienced economic challenges. Some of the examples of these economics challenges would include the sluggish economy and the fuel crises. Legacy airlines such as Delta Air Lines, American Airlines, Continental Airlines, and US Airways are struggling to maintain profitability. These legacy airlines have to compete with airlines that practice low-cost business level strategies like JetBlue Airways, Southwest Airlines, AirTran, and Spirit Airlines. Low-cost airfare is leading by Southwest Airlines, and they also make it affordable for the average American to air travel. Since its existence, Southwest Airlines has been a profitable company. To maintain the airline’s profits in the sky, Gary Kelly assumed the role of Southwest Airlines’ newest CEO on July 2004. Personal and professional background Before joining Southwest Airlines, Gary Kelly was a CPA for Arthur Young & Company in Dallas and as a Controller for Systems Center, Inc. In 1986, Gary Kelly started his career at Southwest Airlines as a Controller. During the years 1989 to 2001 he was promoted to Vice President Finance and Chief Financial Officer. From June 2001 to July 2004 Gary served as Executive Vice President and Chief Financial Officer. In 2004, Gary Kelly assumed the position of Chief Executive Officer and has served as the Company Chairman of the Board in May 2008. In July 2008, he was elected as the Board’s President. Gary Kelly is a Certified Public Accountant...
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...Southwest Airlines: Leadership Matters Latrice Alston University of Phoenix COM 530: Communication for Accountants Tonya Boddie September 12, 2012 Southwest Airlines: Leadership Matters Leadership styles affect the way organizations function and interact with employees, consumers, and business partners. Leaders develop a style of communicating based many times on experience. Southwest Airlines, a leader in the airline industry has enjoyed unparalleled success due to its business plan and dynamic leadership. For Southwest Airlines, senior management places great emphasis on employees realizing satisfied employees are pivotal to the success the organization has and will continue to experience. Effective leaders are critical to advancing the vision and mission of the organization. Southwest Airlines continues to make strides in the airline industry based the strategic vision of management. Southwest’s mission to provide excellent customer service delivered in with warmth, friendliness and pride is the mantra of the organization. Leadership comes with a price and those tasked with leading must be able to balance both the mission of the organization and the needs of employees. Unlike other organizations Southwest Airlines, due to the multi-faceted leadership style has a very low rate of negative attrition. Factors impacting attrition within organization can most time be attributed to the way organizations are managed. Having weathered...
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...Southwest Airlines: Leading Success Stephanie Pena Communication for Accountants/ COM530 July 14, 2014 Brent Smith Southwest Airlines: Leading Success Leadership, motivation, and workforce commitment are key building blocks within an organization. In a successful organization, these building blocks are connected and held together with the effectiveness of communication. Organizations develop their respective cultures through communication among leadership and with all employees, regarding their mission, values, and goals (Robbins & Judge, 2011). Leaders, both formal and informal, use communication within an organization as a means to motivate others, and to develop loyal and trustworthy employees. Such an organization is Southwest Airlines, whose company culture has been characterized over the years as having unique leadership and communications style. The style of leadership that exists within the organization sets the tone for the types of communication that are not only effective but are also motivational to its workforce. Analysis of Leadership Leadership is broadly defined as the ability to influence a group toward the achievement of vision or set of goals (Robbins & Judge, 2011). While no two people will lead in exactly the same manner, early research conducted by psychologist Kurt Lewin states that there are three basic leadership styles. The basic styles of leadership are (1) authoritarian, (2) participative and (3) delegative leadership (Cherry, 2014)...
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...objectives. Therefore, it does not take a “manager” to lead. Gary Kelly, CEO of Southwest Airlines, has a set of values and a leadership style that helps Southwest Airlines stand out amongst any other airline in the industry. Background of the CEO Gary Kelly is a 28-year Southwest veteran who began his career at Southwest Airlines as a Controller. In addition to working for Southwest Airlines, Kelly sits in the board as Independent Director of several corporations and trade associations. Kelly was promoted to CEO and Vice Chairman of Southwest in 2004 after serving as the Chief Financial Officer and Vice President Finance, then Executive Vice President and CFO. Gary is a lifelong Texan, having received a B.B.A in Accounting from the University of Texas at Austin. Prior to joining Southwest Airlines in 1986, Gary was a Certified Public Accountant for Arthur Young & Company in Dallas and Controller for Systems Center, Inc. CEO’s Leadership Style and Philosophy Gary Kelly’s leadership style would be that of transformational. According to Bernard Bass (1985), transformational leadership occurs when leaders broaden and elevate followers’ interests and stir followers to look beyond their own interests to the good of others. Kelly mentions that the culture of Southwest Airlines is not a program or initiative; rather it is the sum of the hearts of their people (Spirit Magazine, 2014). Southwest Airlines always...
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...Organizational Behavior and Communication - Southwest Airlines University of Phoenix COM/530 Organizational Behavior and Communication - Southwest Airlines Culture, Values, and Communication Southwest Airlines (SWA) is a company of more than 37,000 employees (Southwest Airlines, 2011). It has been recognized as: #1 and #2 by Fortune magazine’s “100 Best Companies to Work for in America”; the only airline to win the Triple Crown (#1 in most on-time flights, least lost baggage, and fewest Customer complaints) (McGee-Cooper, Trammell, & Looper, 2008); and although unionized, the lowest turnover rate and the best labor relations in the industry (Quick, 1992). “The Southwest Way” drives SWA’s culture with values of “Warrior Spirit, Leading with Servant’s Heart, and a Fun-LUVing Attitude!” (McGee-Cooper, Trammell, & Looper, 2008). “LUV” is SWA’s stock ticker symbol derived from their “LUV” for Customer Service (Southwest Airlines, 2011). The first value, Warrior Spirit, empowers employees to work hard, desire to be the best, and innovate (Southwest Airlines, 2011). When a SWA employee, still in her probationary period, hired three buses to get customers safely to their destinations after bad weather caused cancellation of a late flight, leadership commended her for her innovativeness (McGee-Cooper, Trammell, & Looper, 2008). The second value, Lead with a Servant’s Heart, follows the Golden Rule, “Treat others as you want to be treated.” SWA leadership understands...
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...incorporate the existing resources in an organization for the achievement of the objectives and targets of such organization (Northouse, 2004). Gary Kelly is the CEO of Southwest Airlines. He has a leadership style and a set of values that has helped Southwest Airlines emerge amongst all the other airlines in the business. This report analyzes the leadership style and philosophy of Gary Kelly and how his style of leadership aligns with the culture. This report also examines his personal and organizational values and evaluates his set of values that are likely to influence ethical behavior within the organization. Finally this report determines his greatest strengths and weaknesses and discusses the quality that I believe contributes most to this his success. Background of the CEO Gary C. Kelly is the CEO and chairman of Southwest Airlines. He started his career in 1986 as a controller at Southwest Airlines. In addition to working for this airline, Kelly sits in the board as Independent Director of several trade associations and corporations. In 1989, he was promoted and served as Chief Financial Officer from 1989 to 2004. He served as Vice President of Finance from 1989 to 2001. Kelly served as a Vice Chairman of the Board of Southwest Airlines, from July 15, 2004 to May 2008. Prior to working at Southwest Airlines he worked as controller of Systems Center Inc. and as an Audit Manager of Arthur Young & Company in Dallas. He also served as Vice Chairman of Air...
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...Southwest Airlines Herb Kelleher is the founder and CEO of Southwest Airlines (SWA). He went to Texas to create a new airline more than three decades ago and became a legend (“Southwest succession,” 2002). Kelleher suffered a health scare in 1999; he decided to name his successor and stunned everyone by appointing a man and woman team to run the major airline (“Southwest succession,” 2002). They became a dual management team. Jim Parker became the chief executive and vice president who serves as the brains of the operation with responsibility for business structure. Colleen Barrett is the heart of SWA where she serves as the president and chief operating officer who oversees the culture (“Southwest succession,” 2002). SWA defines its culture as altruism, listening intently, leading with a servant’s heart and exhibits an exciting-loving and fun approach, (McGee-Cooper, Trammell, & Looper, 2008). Barrett stimulates the image, allows workers at each level to grow into family, prototypes the way of servant leadership, acknowledges works well done and inspires the souls of 32,000 SWA employees (McGee-Cooper, Trammell, & Looper, 2008). Barrett created the Culture Committee, whose goal is to support the Southwest spirit and values throughout the company; to enhance it and assist the improvement in which the committee previously subsists (McGee-Cooper, Trammell, & Looper, 2008). The members who serve on this committee do it voluntarily. They put in the time willingly...
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...Southwest Airlines Case Study After the acquisition of AirTran, Southwest Airlines (SWA), a company with years of profitability in airline industry is now facing challenges in both external and internal environment. The strength of success in marketing strategy and organizational management and the threats from uncertainty environment exist at the same time. This paper is a brief analysis of the company’s strategy and estimated future performance. External Environment Airlines in United States present a wide variety of services based on their strategies to satisfy different needs of the leisure travelers group and business travelers group. There are three main groups of airlines, which are national airlines, regional airlines and commuter or feeder carriers. Based on the territories they serve, airlines differ in routes. The two major types are point-to-point and hub-and-spoke. Both strategies have their own inherent costs and organizational implications. An airline can provide plenty of services: while most airlines have two classes of service, there are also airlines providing services in different selected classes. After the complete removal of government controls, airlines industry is going on a shakeout under the severe competition which is expected to last a long period. The industry is so difficult that its suppliers have high bargaining power; business requires large expenditures; and the price wars are extreme intensive. To survive and compete in this environment...
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...Southwest Airlines Christopher Slusser Embry-Riddle Aeronautical University Abstract Southwest airlines are currently the dominating airliner in the United States. Many other companies have tried to join Southwest in their current dominance, but have not held up to their standards. This paper will take a deep look into what and how Southwest operates in order to keep themselves a head of the game. A broad explanation of their current management style and where they plan to be in the future will touched on. To be at the top, Southwest has taken an in depth strategic planning and the willingness to do the impossible. TABLE OF CONTENTS Abstract…………………………………………………………………………..2 History……………………………………………………………………………4 Decision Making………………………………………………………………….5 Companies Strengths and weaknesses……………………………………………6 Short Term Goals…………………………………………………………………8 Long Term Goals…………………………………………………………………9 Ethics……………………………………………………………………………..9 Leadership………………………………………………………………………10 Performance Affected by Environment…………………………………………11 Threats…………………………………………………………………………...12 Opportunities…………………………………………………………………….13 Strengths…………………………………………………………………………14 Continuous Improvement………………………………………………………..15 Overall Strategy……………………………………………………………...…..17 Southwest Effect…………………………………………………………………18 Suggestions……………………………………………………………………....19 Southwest Airlines Southwest is an airline that was incorporated in Texas on June 8th, 1971. The company began their venture with...
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...2013 Introduction The intent of this paper it to define critical concepts of strategic planning with Southwest Airlines (SWA) top management and how their organization pursued choices and different strategies to run the business by using superior performance employees that gave them a competitive advantage over their competitors. I will concentrate on the thirteen strategic staffing decisions that are critical for any organization to be successful. I will also emphasis the knowledge, skills, abilities, and others (KSAOs) relative to the staffing process and how the company teaches these skills to the employees. This paper will focus on the success of the employees of the organization through the eyes of its past CEO Herb Kelleher. “We want to show them they’re important to us as who they are, as people. And by the way, one ramp agent - I have not disclosed this - sent me a note one day which I’ve never publicized, and I think you’ll understand why.” He said, “Herb, I finally got it. Your making work fun, and home is work.” (Herb Kelleher 2013) SWA was formed in 1971, to serve the inner cities within Texas but by 1998, it had 24,000 employees and 2,500 flights per day. The business was growing fast and the company worked hard at developing and maintaining a culture that it still emphasizes and instills today; flexibility, family orientation, and fun. Southwest airlines philosophy is about the people. It has been consistently successful with great employees and less...
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...ATS Field Study Cross-Cultural Immersion Project J Swope “CULTURE” noun the customary beliefs, social forms, and material traits of a racial, religious, ethnic, or social group; also: the characteristic feature of everyday existence shared by a people in a place or time. Purpose of the CCI Project Every person grows up in a culture. Every person lives in a culture. It may be that a person’s culture naturally includes interaction with other cultures. Or a person can live fairly insulated from cultures other than their own. This Cross-Cultural Immersion Project is an opportunity for you to encounter people from another culture and to grow from the experience. After you have completed this project you should be able to: • Recognize elements of your own and another’s culture. • Reflect on the significance and value of elements in another culture. • Demonstrate respect for those of another culture. • Display Christ-like values when engaging others of a different culture. To do this, plan and spend at least 20 of your 200 hours of Field Study by serving with and among people with a culture different from your own. It could with people across town or around the world. The choice is up to you and the resources you have. The purpose of this assignment is for you to learn how to love and interact with those who are different from you. The focus is on interaction, encounter, and immersion! It is NOT evangelistic or missional. Of course, we must always be witnesses for Christ...
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