Southwest Airlines Case Analysis

A rule that has impacted the development of Southwest Airlines is in the way that they perform
customer service. Ann Rhoads wants employees to “do what it takes to make the Customer
happy” (O’Reilly and Pfeffer 1995). This is a regulatory structure that, as defined by Charles et.
al. on pg. 26, facilitates the work of the employees. Another rule that Ann Rhoads has
implemented in the interview process is based on whether the interviewee uses the word ‘I’ too
much (O’Reilly and Pfeffer 1995).

Institutional ethos are informal rules developed over time that an organization may operate on
(Charles et. al. 2002). The ethos help guide the performance of participants within the
organization. One of the ways that the CEO of Southwest Airlines inspired the employees is
through the idea of making work fun because “fun is a stimulant to people” (O’Reilly and Pfeffer
1995). The phrase “work is important … don’t spoil it with seriousness” (O’Reilly and Pfeffer
1995) has been heard at Southwest. This is a type of informal rule that is followed in order to
serve the customers to the best of their ability and by enjoying it in the process.

An organization’s capabilities indicate how successful they may or may not be (Charles et. al.
2002). On an economic level, Southwest Airlines has been extremely successful and are still able
to offer low air fares, not requiring this income to drive their profitability. Their strong teamwork
allows to quick turn around time when arriving at a gate of only about 15 minutes (O’Reilly and
Pfeffer 1995). Another factor that allows the airlines to manage costs is by only using a single
type of aircraft so the maintenance and training is consistent (O’Reilly and Pfeffer 1995).

Sources

Charles, L., Marie-Hélène, A., Gary, A., Plinio, G., & Carden, M. H. (2002). Organizational
assessment : A framework for improving performance. ProQuest Ebook Central
http://ebookcentral.proquest.com Created from asulib-ebooks on 2021-01-18 17:14:46

O’Reilly, C. and Pfeffer, J. (1995). Southwest Airlines (A). Case: HR-1A. Stanford Graduate
School of Business.