SWA case analysis  

1. What are the reasons for SWA leadership? 

The main reason for SWA leadership is the administration done by their CEO, he is rated as the
best CEO in the US and he has a very different approach to business when it comes to managing
business and people; he believes first of all to provide people with fun moments, to achieve their
needs in order so they perform their best; he believes work can be fun too and encourages every
employee to have their best time at work.  
Also, one competitive advantage for SWA is their cost structure; they recognized short flights were
most costly than long ones and strived to spend the most time in the air in order to reduce costs;
because of this, costs only increased over 20 cents over a decade. They focused on reducing costs
and their cost structure; even the CEO has the lowest salary among other airlines CEO. 

2. what are the factors of SWA’s success in managing people

The factors of SWA’s success in managing people is their human resources approach; providing
them with support their needs when it comes to enjoy their work and having to a pleasant work
experience; first, they consider the HR area as a “customer service "area, being the employee the
internal customer and to work for them to be happy; also, their CEO is very attentive to the
internal and external customer, he believes work can be fun and puts his effort in satisfying their
employees need. Additionally, the HR area believes that when recruiting, even if the person is not
recruited, they are a potential customer, so they ensure they have a positive experience even if
they are rejected; they give them feedback and answer to any doubts of questions they might
have, leaving the possibilities open to apply to another different position.  
They have a full business university in which employees are trained according to the needs of the
company, and to fulfill their own professional goals, this education is very complete, even that the
company does not encourage any other further training, only the one given in their school.  

3. SWA TM strategy, inclusion of exclusion? Why? 

SWA strategy is inclusion, because they give employees empowerment and their focus is on
people, they give them different trainings for them to be customer oriented and have all the tools
necessary to make them excel and perform in a good way, always according to the company’s
mission, vision and values. When hiring they focus in hiring the best talent but always focus on
diversity and inclusion. Employees are encouraged to act always customer centered and they even
feel so identified with the company that they volunteer to work in pro of the customer wants and
needs.  

4. What innovative HRM practices can be found in SWA? 

Southwest's recruiting approach follows a philosophy they call "hiring the right people at the right
time with the right attitude." There is no mention of looking for an employee with "x" years of
experience or someone who went to the "right school". Instead, Southwest's approach is to find
employees who are the right match for the company's culture. 
The Southwest company is focused on the recruitment method of "Hire for attitude, train for
ability", where it spends most of the time interviewing, recruiting and hiring the most qualified
people for each of the positions. 
The company focuses on and believes in the mantra that skill can be taught. Southwest can train
its employees to do any number of jobs, but an employee with a bad attitude or lack of motivation
will never be a good fit for the company's culture. That focus isn't just limited to employees who
work at ticket counters, but also extends to highly skilled positions, such as pilots. Southwest looks
for traits like teamwork and an employee's ability to not take themselves so seriously in their
hiring practice. 

5. How HRM practices help SWA create support, and develop leadership?

Human resources are essential when growing a company and ensuring that its employees
maintain their focus on their work. 
In Southwest company it was a key role because the company had a culture focused on the well-
being of its employees, it does not matter if they do not have the most advanced training, the
important thing is that they always maintain a good attitude. An employee-centered approach also
means developing leaders' interpersonal skills and creating effective strategies for hiring,
retaining, and managing teams. 

6. The role of culture and its specifics?  

From the perspective of business management, these shared behavior systems influence the
perceptions that people have about important organizational variables, such as the exercise of
authority and leadership, attitudes towards work or ethical practices, among others. Cultural
background influences workers' understanding and impressions of their job duties, their role in
decision-making processes, and the quality of job performance. 
The company's focus on building and maintaining its people management culture and practices is
clearly paying off: Southwest offers the most valued customer service in the airline industry, has
the highest seat occupancy per flight and the most productive employees. 
 The success of Southwest Airlines is also visible in the company's excellent financial results.
Southwest's culture and people management practices enable the company to achieve a strong
competitive advantage over its rivals. 
 Southwest Airlines' people management culture and practices demonstrate that organizations
that focus on empowering their employees' personal growth ultimately achieve long-term,
sustainable superior organizational performance.