The Human Factor at Southwest Airlines

Many job applicants at Southwest Airlines Company are surprised to learn that a sense of
humour is an important employment requirement. The company wants to hire people who work
well in a collegial environment and feel that work should be an enjoyable experience. The result
of this hiring practice is a group of employees who often go out of their way to amuse, surprise,
and entertain the customer. Veteran Southwest fliers expect to have a few laughs on every flight.
The customary no-smoking announcement on one flight was replaced by this effort: “Good
morning, ladies and gentlemen, those of you who wish to smoke will please file out to our
lounge on the wing, where you can enjoy our feature film, Gone with the wind.” An attendant on
another flight hid in the overhead luggage bin and then popped out when passengers started
filing on board.

Herb Kelleher, Southwest’s zany chief executive officer, says people are the most important
company asset. He sees a strong connection between work-place satisfaction and company
success. Kelleher’s dedication to employees has earned his company recognition as a leader in
good employee-management relations. Colleen Barrett, the number-two executive at Southwest,
constantly reinforces the company’s message that employees should be treated like customers,
and she recognises employees who go above and beyond the call of duty. Celebrations are an
important part of the company culture, from spontaneous “fun sessions” to a lavish annual
awards banquet where employee contributions are glorified.

Although Southwest has grown from 198 employees in 1971 to nearly 20,000 people today, the
company has been able to maintain a close-knit family atmosphere. Herb Kelleher and Colleen
Barrett have proven that a large company with a unionised workforce can be a place where
kindness, cooperation, and human spirit abound.

Can a company that emphasises fun as a way of life operate efficiently and earn good profits?
Apparently so. By almost every measure of efficiency in the airline industry, Southwest is at the
top of the charts. Profitable every year since 1972, it has been recognised as the major airline
with the fewest consumer complaints.

Required

a. Southwest Airlines appears to be a very employee-oriented company. What aspects of the

company’s culture foster this loyalty?
b. Explain four reasons why interpersonal skills are crucial for employees of an organisation
such as Southwest Airline.
c. What guidelines can you give to employees of an organisation that want to develop their
interpersonal skills like that of Southwest Airline?