Southwest Airlines' Organizational Culture
|
|
ICMR HOME | Case Studies Collection
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
To download Southwest Airlines' Organizational Culture case study
(Case Code: HROB021) click on the button below, and select the case from the list of available cases:
Price:
For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Shipping & Handling Charges extra
» Human Resource and Organization Behavior Case Studies
» HRM Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Area Specific Case Studies
» Industry Wise Case Studies
» Company Wise Case Studies
Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
Chat with us
Please leave your feedback
|
|
<< Previous
Excerpts Contd...
Shaping Southwest's Organizational Culture Contd...
Thriving Under Pressure
|
Post-September11, 2001, when most airlines in the US went in for massive
layoffs, Southwest avoided laying off any employee (Refer Exhibit VII.) Even
before the September 11 crisis hit, Kelleher had explained his philosophy
regarding layoffs in an interview to Fortune magazine. He said, "Nothing kills
your company's culture like layoffs. Nobody has ever been furloughed [at
Southwest], and that is unprecedented in the airline industry. It's been a huge
strength of ours. It's certainly helped us negotiate our union contracts. One of
the union leaders….came in to negotiate one time, and he said, "We know we don't
need to talk with you about job security." We could have furloughed at various
times and been more profitable, but I always thought that was shortsighted.
|
|
You want to show your people that you value them and you're
not going to hurt them just to get a little more money in the short term. Not
furloughing people breeds loyalty. It breeds a sense of security. It breeds a
sense of trust. So in bad times you take care of them, and in good times they're
thinking, perhaps, "We've never lost our jobs. That's a pretty good reason to
stick around."...
Replicating the Southwest Model
Southwest was the only airline to remain profitable in every quarter since
the September 11 attack. (Refer Exhibit VIII for financial position of
Southwest.) Although its stock price dropped 25% since September 11, it was
still worth more than all the others big airlines combined. Its balance sheet
looked strong with a 43% debt-to-equity ratio and it had a cash of $1.8 billion
with an additional $575 million in untapped credit lines. The company left no
stone unturned to boost employee loyalty and morale...
|
|
Exhibits
Exhibit I: Market Capitalization Of Southwest Relative To Airline
Industry*
Exhibit II: Mission Statement
Exhibit III: Principle Values
Exhibit IV: Corporate Philosophy
Exhibit V: Percentage Of Employees Represented By Unions In U.S.
Major.Airlines
Exhibit VI: Labor Conflict Index*
Exhibit VII: Employee Layoffs After September 11, 2001*
Exhibit VII: Southwest Airlines Financials |
|
|
