prjt 1 (1)
TRANSCRIPT
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Group 7
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Flow of the Presentation
Introduction
Herb Kelleher
Achievements
Awards
Q/A
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Southwest Airlines that has built businessand corporate culture around the tenetsof total quality management andcustomer service.
Focus on Customer.
Treat employee as Customer.
Believe in Fun at work philosophy with
safety.
Introduction
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Case talks about the manager HerbKellehers innovative way of dealing with theemployees.
The case deals with corporatephilosophy, culture and HRM practices.
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Herbert Keller :Ex CEO ofSWA
Southwest hassucceeded by daringto be different:
offering low fares toits passengers byeliminatingunnecessary servicesand avoiding the"hub-and-spoke"scheduling systemused by other airlines
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From 1992 through 1996, they won DOTs
triple crown for best on-time performance,
best baggage handling & fewest customer
complaints.
From 1996 to 1998, they won Airline
Quality Rating for three consecutiveyears.
Managed to make profit even in industry
downturns.
Achievements and Awards
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Challenges faced by the U.S.
aviation industry: Industry faced
two major economic
downturns since 1973(which had led to heavy losses and
conflict with the labor union).
How has Southwest Airlines dealt with
competitive challenges in the airlineindustry ? What practices have helped it
to maintain that growth ?
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SWA resorted to low cost carriers and
wide range of aircraft.
Offered affordable prices to consumers
Followed a work culture that helped them
in retaining talent.
Combating The Challenges
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Cont
Continuously improved their service for
customers.
Involving Customer in various activitiesBest Employee Management
relation in the industry
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Fun at Work Philosophy
Focus on the employee involvement
and empowerment.
Acknowledging employees Births,deaths, marriages and promotions.
HR practices
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Cont
They hire people with attitude and then
build upon that foundation.
Employees are asked to use their ownjudgment and to go beyond job
description.
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Involving Employees in decision
making
Healthy relationship betweenemployees and management as there
is no labor strike.
Highly motivating employees and
feeling of belongingness in employees.
They get attention from CEO.
What special role has corporate culture
played in contributing to Southwest Airlines
success?
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Fun at work culture.
Even passengers were given dueweightage from company perspective.
Cont
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Most enjoyable work life:
Work with fun
Least enjoyable work life:
Servicing peanuts as meals.
What part of work life at Sothwest do
you enjoy the most and theleast ?
Why ?
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Yes, we think that Kellehers fun at
work philosophy could work equallywell in any other company:
will help to reduce employee
absenteeism
will increase employees satisfaction.
Do you think that Kellehers FUN AT
WORK philosophy could work equally
well with other organisations?Why ?
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Cont
willlead to lower stress and higher
productivity.
Will give the feeling of belongingness among
the employees.
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SouthWests success is due to
balance between good business
practices and good HR practices.
No, good business strategy cant
survive in long term without
an equally good HR strategy.Both essential for a companys
success.
Is Southwests success more a function of good HR
practices or business practices ? Can good Business
trategy survive without good HR Strategy?
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