Running Head: SOUTHWEST AIRLINES

The Organizational Behavior of Southwest Airlines Lauren Surek, Rob Bickford, Jie Wang, Will Nguyen, Marissa Kipapa, Stephanie Deahl Pacific Lutheran University

SOUTHWEST AIRLINES TABLE OF CONTENTS

I.

Introduction3

II. Attitudes and Job Satisfaction..3 a. Attitude as a Consideration for Hiring...3 b. Attitude Related to Customer Service3 c. Major Job Attitudes3 d. Job Satisfaction Related to Customer Service...4 III. Southwests Culture..4 a. What is Organizational Culture?....................................................................................5 b. Sustaining Culture..5 c. Learning Ethics and Culture..6 d. Creating a Positive Organizational Culture...6 e. Workplace Spirituality...7 IV. Human Resources Policies and Practices...7 a. Selection.7 b. Training..7 c. Evaluation..8 V. Conclusion..8 a. Generalizability..8 b. Current State of Affairs..9 VI. References11

SOUTHWEST AIRLINES I. Introduction

Southwest Airlines is an American low-cost airline with unique characteristics. Besides being a pioneer for low-cost air services, this organization has a distinct culture, satisfied employees, and strong leadership. With this individuality, it is no surprise that Southwest Airlines is an exceptional embodiment of many organizational behavior elements. II. Attitudes and Job Satisfaction Southwest Airlines encompasses many important attributes regarding attitudes and job satisfaction. This organization prides itself on possessing positive attitudes and breeding satisfied employees. These elements heavily contribute to the distinct culture that Southwest is known for. a. Attitude as a Consideration for Hiring Attitudes, which are evaluative statements-either favorable or unfavorable- about objects, people, or events, are strongly represented within Southwest Airlines (Robbins & Judge, 2009, p. 75). The company heavily considers personal attitudes when selecting employees, due to the organizations belief that attitudes are a permanent factor within a candidate. Herb Kelleher has stated, We draft great attitudes. If you dont have a good attitude, we dont want you, no matter how skilled you are. We can change skill levels through training. We cant change attitude (Buller & Schuler, 2006, p. 124). b. Attitude Related to Customer Service Southwest Airlines The Book on Service: What Positively Outrageous Service Looks Like at Southwest Airlines contains an excerpt which portrays employees attitudes as an important catalyst for creating positive customer service. It reads: Attitude breeds attitude... If we want our customers to have fun, we must create a fun loving environment. That means we have to be self-confident enough to reach out and share our sense of humor and fun--with both our internal and external customers. We must want to play and be willing to expend the extra energy it takes to create a fun experience with our customers (Buller & Schuler, 2006, p. 124). When taking this excerpt and many other aspects of Southwests beliefs, it seems safe to assume that attitudes are key elements within Southwest Airlines and that upper management fully recognizes the strong role that attitudes play in regards to customer service. c. Major Job Attitudes One major job attitude that Southwest encounters is job involvement, which is the degree to which a person identifies with a job, actively participates in it, and considers performance important to self-worth (Robbins & Judge, 2009, p.79). The company uses a number of techniques to encourage employee participation. The most fundamental of these is the concept of a

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"loose-tight" design. Employees are encouraged to take risks and are given a wide range of leeway, knowing they will not be punished for taking advantage of this freedom. Perceived organizational support is another major job attitude that Southwest employees possess. This attitude represents the degree to which employees believe an organization values their contribution and cares about their well-being (Robbins & Judge, 2009, p.81). Upper management at this organization does a superior job demonstrating their appreciation for their employees. The workers believe that they are cared for and that management puts adequate effort into ensuring the proper treatment of personnel. It is even stated in Southwests Annual Report that, [o]nce hired, we empower, nurture, and most important of all, support our People! (Buller & Schuler, 2006, p. 119). The employees of Southwest Airlines harbor a large amount of job satisfaction, which is another key job attitude that demonstrates a [p]ositive feeling about ones job resulting from an evaluation of its characteristics (Robbins & Judge, 2009, p.79). With the assumption that this concept is an important indicator of a companys success, Southwest is doing extremely well considering that in 1997 Fortune ranked Southwest first on its list of the 100 Best Companies to Work for in America. Fortune also named the organization one of the best companies for attracting, developing, and keeping talented people (Buller & Schuler, 2006, p. 128). d. Job Satisfaction Related to Customer Service Considering that job satisfaction oftentimes directly correlates with customer satisfaction, Southwest has ensured excellent customer service, which Southwest calls Positively Outrageous Service, by maintaining satisfied employees. Southwest realizes this and even addresses this topic in its Annual Report: At Southwest Airlines, People are our most important asset. Our People know that because thats the way we treat them. Our People, in turn, provide the best Customer Service in the airline industry. And thats what we are in business for- to provide Legendary Customer Service (Buller & Schuler, 2006, p. 128). The service, which is consistently delivered with friendliness, caring, warmth, and spirit, has increased Southwests strong relationship with its employees while simultaneously benefiting customer relations. This tight bond between employee and customer satisfaction has improved the overall success of Southwest Airlines. III. Southwests Culture Southwest Airlines prides itself on their unique and positive organizational culture, an encouraging working environment, and exceptional customer satisfaction. Southwest proudly declares their distinguishing factors in the airline market, [w]e are a company of People, not planes. That is what distinguishes us from other airlines (Buller & Schuler, 2006, p.118). Not only do competing airlines attempt to mimic this strategy but also multiple businesses outside the airline arena have attempted similar corporate cultures. But to no avail, most businesses and airlines are unable to attain this positive organizational culture. It is understood that Southwest

SOUTHWEST AIRLINES Airlines has developed such a unique culture that has far exceeded expectations, therefore setting unbelievably high standards for other airlines to attain. a. What is Organizational Culture? According to Robbins & Judges Organizational Behavior, organizational culture is [a] system of shared meaning held by members that distinguishes the organization from other organizations (p. 551). This distinguishable meaning is often developed and highly impacted by the founding forefathers of an organization. In Southwest Airlines instance, they still have founding forefathers running their airline. One of which is Herb Kelleher, whose personality is greatly reflected within the organizations humorous and fun loving culture.

There are seven features in organizational culture; these include innovation and risk taking, attention to detail, outcome orientation, people orientation, team orientation, aggressiveness, and stability (Robbins & Judge, 2009, p. 551). Of these, the three areas of main focus in Southwests organizational culture are innovation and risk taking, people orientation, and team orientation. Southwest promotes innovation and risk taking for every employee. They provide employees with an informal open-door policy and the previously stated loose-tight design. Southwests culture is also influenced by a people orientation. Herb Kelleher provides a fun-loving and positive environment for employees to feel appreciated. An example of this is when Southwest began producing LUV Lines newsletters and supplying employees with them. Through this, management sought out employee awareness and contribution so each individual could see the effects of their efforts on the companys bottom line (Buller & Schuler, 2006, p. 125). Lastly, team orientation is a significant aspect of Southwest culture. Southwest thrives on, an atmosphere of cooperation and team spirit that characterizes their culture (Buller & Schuler, 2006, p.125). b. Sustaining Culture Southwests dominant culture expresses core values that are shared by a majority of the organizations members (Robbins & Judge, 2009, p.553). This is done in four different ways; these are, possessing influential top management, establishing core values, selecting good fit employees, and socializing employees to the cultural norms. First, the actions and attitudes of top management often send messages to employees about organizational norms. Because Herb Kelleher leads by example, this is evidenced by Kellehers hard work and caring nature which is reflected in employees actions. Following his [Kellehers] example, Southwest employees are well known for going the extra mile. Among the stories of such behavior is that of a customer service representative who stayed overnight at a hotel with an elderly woman who was afraid to stay alone when her flight was grounded due to fog. The agent knew that was what Herb would have done (Buller & Schuler, 2006, p.127). By providing their employees with a set of core values, such as the importance of humor and fun in the work place, Southwest Airlines is able to enhance a sense of community, trust, and spirit and to counterbalance the stress and pressures of the mechanistic demands of airline operations, therefore, establishing a positive long-lasting culture (Buller & Schuler, 2006, p.125).

SOUTHWEST AIRLINES Another very significant part in sustaining a culture is through the hiring process or selection. Southwest ensures a continued culture by being extremely selective when hiring applicants. They only hire when it is a perfect match, and they are allowed to do so because they receive a tremendous amount of applications for each job position they require.

Lastly, the socialization of new employees is very important because through this process new hires are introduced to the culture and they begin the adaption process. At Southwest this socialization process lasts approximately six months, [a] new hires first six months at Southwest are a period of indoctrination and mentoring. These six months are also used to weed out anyone who does not mesh with the culture (Buller & Schuler, 2006, p.124). Even though the six month long preliminary period is to determine any mismatches, the fun spirit [typically] emerges in graduates very early (Buller & Schuler, 2006, p.125). By possessing the right top management, establishing core values to abide by, selecting good fit employees, and socializing them for the good of the organization, it would be assumed these components are the key influencers in Southwests success in sustaining such a strong culture. c. Learning Ethics and Culture Once an organizations culture is established and sustained, it must be passed on to new hires or existing employees. Culture can be passed on in a number of ways including rituals, language, and material symbols. One of the ways that Southwests culture is passed on is through stories. These stories incorporate how employees went the extra distance in satisfying a customer or how Herb Kelleher has inspired the company. The story mentioned earlier, of the Southwest customer service representative staying overnight in a hotel with an elderly woman, is a prime example of a story that is passed on to support the organizations culture. Stories not only help employees learn about culture, they can also create an ethical organizational culture. Ethics can be taught through visible role models or when top management is seen as taking the ethical high road, it provides a positive message for all employees (Robbins & Judge, 2009, p.567). Herb Kelleher often times is seen as a role model to the employees of Southwest. d. Creating a Positive Organizational Culture Even though a culture is established within an organization, it must be positive and uplifting. A positive organizational culture builds on employee strengths and rewards as opposed to punishing. Southwests training programs, which will be explored later, are a great example of how creating a positive organization culture can build on the empowerment of employee strengths, through emphasizing the cultures principles. Rewarding employees is also a great way to establish a positive organizational culture, and Southwest has recognized this. Southwests employees have come to trust the only company that has a record of 23 consecutive years of earning stability combined with an impressive record of stock appreciation unmatched by virtually any company (Buller & Schuler, 2006, p.126). Southwests pilots also understand that they are well compensated relative to the industry standard (Buller & Schuler, 2006, p.126). Compensation through rewards is used in Southwest to reinforce its principles and to create a better organizational atmosphere.

SOUTHWEST AIRLINES e. Workplace Spirituality

Southwest is not only concerned about the organization as a whole, but of the individuals that make up the organization. To help employees reach their full potential, Southwest encourages workplace spirituality. Workplace spirituality is the recognition that people have an inner life that nourishes and is nourished by meaningful work that takes place in the context of community (Robbins & Judge, 2009, p.571). Southwest understands this, so they encourage their employees to express their sense of humor on the job, to act spontaneously, and to make their work fun (Robbins & Judge, 2009, p.572). Since Southwest permits such a free and loose work environment, they are allowing employees to express their emotions and moods. This expression leads to higher job satisfaction among employees and a better job outcome. IV. Human Resources Policies and Practices a. Selection An objective of effective selection is to figure out who the right people are, by matching individual characteristics with the requirements of the job (Robbins &Judge, 2009, p.585). Given Southwests reputation as a great place to work it is no wonder that so many people apply for each job opening. As mentioned earlier, this allows the company to be extremely selective in its hiring and to look for applicants who are a good fit. Southwest rejects about 100,000 applicants a year and turnover rate is less than half of most other airlines (Buller & Schuler, 2006, p.124). Its been said the most important HR decision you can make is who you hire (Robbins & Judge, 2009, p.585). To maintain the culture of Southwest Airlines, finding the right person for the job can also be a problem. Southwests highly selective nature requires a large pool of applicants just to hire a few positions. There are only a few candidates out of thousands who do fit this specific culture. Having large pools of rejected applicants may, in turn, make it more difficult to find the human resources it needs to differentiate it from other competitors (Buller & Schuler, 2006, p.130). b. Training On-the-Job Training is training that employees receive during their work time. It includes job rotation, apprenticeships, understudy assignments, and formal mentoring programs (Robbins &Judge, 2009 p.593). The initial six months of indoctrination and training that was mentioned earlier is a prime example of intense on-the-job training. Southwest also does selection during this training. Some new employees are likely to be rejected if they are not considered as a good fit. Off-the-Job Training is training which is not completed during a structured workday. It includes videotapes, public seminars, self-study programs, Internet courses, satellite-beamed television classes, and group activities that use role-plays and case studies (Robbins &Judge, 2009, p.593). Once a year, all Southwest employees, including all senior management, are required to participate in training programs designed to reinforce shared values. Except for flight training, which is regulated and certified, all training is done on the employees own time (Buller &

SOUTHWEST AIRLINES Schuler, 2006, p.124). Southwest implements this style of training to create flexibility for their employees. c. Evaluation

A company can use performance evaluations as an effective tool in many ways. Evaluations can be used to make and determine general decisions from human resources, and they also can help identify problems and lead to possible solutions (Robbins & Judge, 2009, p. 595). One major application that evaluations can be used for is providing feedback for employees. This feedback reiterates how performance is viewed by the organization. Southwest Airlines is distinct from any other airline by its rich and unique culture. To help maintain this culture, evaluations can help capture the attention of an individual or even a specific department. One of Herb Kellehers primary duties, which he decided himself, is to develop and maintain Southwest Airlines unique culture (Buller & Schuler, 2006, p. 125). This unique culture is important and must be maintained to keep Southwests competitive advantage over other airline companies. To help advocate this strong idea of culture, Southwest Airlines LUV lines helps employees understand their performance. The LUV lines are an effective tool for giving feedback to Southwest employees. Although this is not an individual evaluation, it is a useful performance evaluation conducted on a broader level. V. Conclusion Through Southwests exceptional attitudes, distinct culture, and unique human resources policies and practices, an exceptional company has emerged. Every employee is part of a wide ranging team, they all work together to achieve the high standards that Southwest has set for itself. The organizational behavior elements exhibited within this firm are envied by many other organizations and are unique enough to warrant the monitoring of the current state of affairs. a. Generalizability Southwest Airlines has a unique business strategy that many other airlines try to imitate but a majority, if not all, fail. According to The Southwest Airlines Way, they explained these failures in the form of an old folktale: Southwest is more than a funky niche airline. But everyone focuses on and seeks to imitate different aspects of the Southwest model. The result is something like the story of the three blind men and the elephant, in which each man observes a different part of the elephant and draws his own conclusions about the whole elephant based on the one part he has observed (Gittell, 2003, p.208). This makes sense as to why others fail when trying to replicate Southwest Airlines successful business model. How can a company expect to have the same results when they only observed a part of the whole? In order to understand the model in its entirety, one needs to know the three components in the Southwest Airlines model: relationship, product, and structure (Gittell, 2003, p.209).

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The relationship component of the model has been developed over time and by unique characters that have made the Southwest brand. These individuals have influenced the positive atmosphere, which then influences excellence in customer service. Through their unique strategy in relationships, this component promotes genuineness, honesty, and fun, resulting in an overall positive view and enhanced reliability and trustworthiness from Southwest consumers. The product component of the model is the key aspect that many competitors try to emulate. Southwest has strategized a cost-efficient service for both their bottom line and the consumer by flying domestic short-haul flights and eliminating costly elements such as first class seating and on-board meals replaced with small snacks. The structure component of the model includes Southwests point-to-point routing strategy and uses a single style of aircraft that holds 137 economy class seats (Gittell, 2003, p.227). This strategy saves on turn-around time which influences better customer satisfaction and a savings for the bottom line. When other airlines such as American, Continental, United, and JetBlue attempted to emulate the Southwest strategy, their efforts were deemed ultimately unsuccessful (Gittell, 2003, p.228). Looking back to the folktale with the three blind men and the elephant, it is logical that each component of Southwests business model is imperative to ensure that the whole is greater than the sum of its individual parts. Therefore, for another airline to successfully adopt the Southwest Airlines business model they need to view the whole elephant or whole of these three individual parts. Each component in some way connects to the success of the other component, so it is imperative that all three areas are embraced to make a truly successful transition into the Southwest Airlines model. b. Current State of Affairs Currently, Southwest still maintains much of the organizational behavior described in Managing Organizations and People. The company still employs a loose-tight design, and has now outlined three fundamental aspects of employee attitudes: the warrior spirit, a servants heart, and a fun-LUVing attitude (Culture, Southwest Airlines, 2009). Their mission statement has remained the same since 1988, and they encourage their employees to be creative and innovative within their self-created, respectful and caring environment. Additionally, Southwest still offers similar training, which includes both leadership and personal development courses that are taken periodically by employees (Southwest Airlines Careers, Southwest Airlines, 2009). While Herb Kelleher is no longer with the organization, his values have been ingrained in the organization. Since Kelleher stepped down in 2008, Gary Kelly, who has been with the organization since 1986, has taken on his role. It is evident that he shares similar values to Kelleher, since he has been with a company that reinforces shared values for so long. He reflects Kellehers concern for the employees, as evidenced by his quote, Leadership is Effectively supporting your team of employees (Officer Biographies, Southwest Airlines, 2009).

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VI. References Buller, P. L., & Schuler, R. S. (2006). PLU edition of managing organizations: Cases in management, organizational Behavior, and human resource management. Mason, OH: Thomson/Southwestern. Gittell, J. H. (2003). The Southwest Airlines way: Using the power of relationships to achieve high performance. New York: McGraw-Hill. Robbins, S. P., & Judge, T. A. (2009). Organizational behavior (13 ed.).Upper Saddle River,
th

NJ: Pearson Prentice Hall. Southwest Airlines Webpage. Culture. Retrieved December 3, 2009, from http://www.southwest.com/careers/culture.html Southwest Airlines Webpage. Officer biographies. Retrieved December 3, 2009 from, http://www.southwest.com/swamedia/bios/gary_kelly.html Southwest Airlines Webpage. Southwest airlines careers. Retrieved December 3, 2009, from http://www.southwest.com/careers/freedom_learn.html