Southwest's People Management Strategy

Southwest Airlines (SWA) operate with a belief that effort given to personnel will increase knowledge in the organization, which ultimately benefits SWA. udy !iuliani, in his book Leadership notes" #$ooking back, % believe that the skill % developed better than any other was surrounding myself with great people& (!iuliani, '(('). SWA seeks to fill its employment doors with #great people.& )owever, to have great people, you have to make great people decisions. *or Southwest, this means placing the needs of their employees first, believing that satisfied employees will provide superior services to the customer. +art of this strategy is listening to employees rather than talking at them and employing procedures and rules as a guide rather than the law. As a result, their focus on human capital unleashes employee,s innovation, increases their capabilities, and promotes a high level of employee trust. %n fact, in -.//, Southwest made a commitment to their employees that they still stand by" 0We are committed to provide our 1mployees a stable work environment with e2ual opportunity for learning and personal growth. 3reativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. Above all, employees are provided with the same concern, respect, and caring attitude within the organization that they are e4pected to share e4ternally with every Southwest 3ustomer0 (Southwest Airlines, -../). 5his commitment starts with the human resource function known as the 0+eople 6epartment0 according to the department,s mission statement" 0recognizing that our people are the competitive advantage, we deliver the resources and services to prepare our people to be winners, to support the growth and profitability of the company, while preserving the values and special culture of Southwest Airlines.0 Southwest's Approach to Rewards and Motivation Southwest understands the importance of non7financial and financial rewards as motivators. 5hey are known for celebrating achievements, holding fun contests, having a catastrophe fund for employees, and showing the same caring, concern, and respect within the organization as outside with customers and suppliers. Southwest,s reward system is reflective of the work demands placed upon them. Southwest offers competitive compensation, including free travel for employees and immediate family. %n addition, they provide considerable profit sharing, bonuses, and retirement savings programs. 8any employees receive stock options and collectively the employees own --9 of the company. 5o further motivate employees, the company holds many celebrations, both business7related and social. :ccasions marking business7 related achievements are well orchestrated, visible, and memorable. :ften, employees are given merchandise, travel, and spontaneous praise to

promote continued actions in line with the company,s beliefs. Story telling is also a key component to the Southwest philosophy. Sharing stories of e4ceptional service or organizational triumph is a means to promote the family unit that is Southwest Airlines. *or e4ample, there is the story told of an airplane captain who left the plane after landing and began to help baggage handlers remove and load baggage. ;nowing that the flight was going to miss the arrival time by -< minutes, he had radioed ahead to advise the ground crew to get additional help to unload the baggage in an attempt to regain the -< minutes. 5he pilot assisting the baggage handlers allowed the flight to depart on time ($aszlo, -...). Stories such as this have become folklore and are used to reinforce the concept of the 0employee family0 which motivates employees to work together be successful. Southwest's Culture 5he Southwest *amily of 1mployees has the 0Warrior Spirit, a Servant,s )eart, and *un7$=>ing Attitude0 because they work for a company whose core values are centered around performance, people, and planet. $=> is their priority and it is seen in their brand through customer service and operational e4cellence, all of which begins with people. 5hat uni2ue culture e4tends across all of their airlines (Southwest, '(-'). :nce you have built a strong culture, you have a deposit of trust with your employees and customers. With that said, Southwest Airlines has the highest loyalty in the airline industry, but its people are not loyal to the company because of such strategies as fuel price hedging, free bags, and first7come first7served seating. ather, they are loyal to a culture that honors individuality, fellowship, and having fun. And, as we know, happy employees e2ual happy customers. 5he uni2ue Southwest culture is in line with my management style, making it very appealing to me. %, too, believe in a people focus7strategy and influencing behavior through values, teaching, training, developing, promoting, having fun, and employee buy7in. 8ore than anything, % share a strong connection with their culture of outstanding service. 5his is appealing to me as a customer and as a customer service trainer. %n fact, prior to teaching customer service training, % took time to learn the 0Southwest Way0 because no one does it better. Southwest's Ability to Attract and Retain Employees +erhaps one of the most uni2ue aspects of Southwest,s strategy is the degree to which it has used its uni2ue people7oriented culture as a ma?or strategic weapon to attract and retain employees. An atmosphere of cooperation and team spirit characterizes the culture. Workers believe that Southwest,s management cares about them, and management tries hard to ensure that personnel are treated properly. 5his culture provides much of the basis for Southwest,s

successful labor relations, customer service, and organizational fle4ibility which continues to attract and retain employees. %t,s tough to find disadvantages with Southwest, but there is always room for improvement. Southwest,s greatest disadvantage is their ability to keep up with the growth of competitors, while maintaining their uni2ue culture, low7fares, and outstanding customer service. %t is a challenge to increase in size and maintain a family7like atmosphere, but it is not impossible. 5his disadvantage, like all others, can become an advantage if planned well and e4ecuted with care. Conclusion Southwest is a great case study of how to get employee buy in, to a growth developing business. 5he key to the success of the southwest model has been asset utilization and low variable costs, married with strong company culture to aligning values, systems, structures and strategy. @y doing this Southwest has been able to sustain competitive advantage by unleashing the potential in their workforce. 3ould this be developed and maintained in other organizationsA % believe so. References @ecker, @., )uselid, 8., and @eatty, . ('((.). 5he 6ifferentiated Workforce" 5ransforming 5alent into Stategic %mpact. @oston, 8ass" )arvard @usiness +ress. *ortune ('(-B). World,s 8ost Admired 3ompanies. etrieved from http"CCmoney.cnn.comCmagazinesCfortuneCmost7 admiredC'(-BCsnapshotsC'(D/.htmlAiidEwmaFflFlist !reengard, S. ('((B, Guly). !imme attitude. Workforce 8anagement, , <D7D(.