Introduction
Two of the largest competing airlines in America may seem to have a lot in common to a consumer’s eye: big commercial planes, friendly staff, one free carry-on bag, complimentary snacks. Maybe the biggest comparison of them all is how much of the airline market these two companies take up. But for every similarity, there must be a difference. Beyond contrasting ticket prices, there are many fronts on which to compare Southwest Airlines and American Airlines. To begin when the companies began, American Airlines was established approximately 40 years sooner than Southwest Airlines as a result of a merger. In terms of people, Southwest Airlines currently has just about half the number of employees that American does. However, to truly compare the two companies, the organization itself must be researched and analyzed. Southwest Airlines and American Airlines appear to be very different to this day in terms of organizational culture, team dynamics, and conflict and negotiation.
Organizational Culture Organizational culture could almost be considered the roots of a company. The way a company’s employees think, the way the customers feel, and the company’s decisions are made are all based around the culture that the company has laid for itself. An employee’s values, thoughts, and actions should reflect those stated in the company’s mission. Southwest Airlines and American Airlines, while both attempting to create a culture that is comfortable and pleasing to their
“Culture consists of the symbols, rituals, language, and social dramas that highlight organizational life, including myths, stories, and jargon. It includes the shared meanings associated with the symbols, rituals, and language. Culture combines the philosophy of the firm with beliefs, expectations, and values shared by members. It contains the stories and myths about the company's founder and its current leading figures. Organizational culture consists of a set of shared meanings and values held by a set of members in an organization that distinguish the organization from other organizations. An organization's culture determines how it perceives and reacts to the larger environment (Becker, 1982; Schein, 1996). Culture determines the nature
According to The Journal for Quality and Participation, "a company's culture is embedded in its DNA." With that being said, establishing a productive organizational culture is a crucial component to the success of the company, even before they are in business. In a nutshell, "organizational culture is a system of shared assumptions....which governs how people how people behave in a culture." When employees of a company are aware of what is expected and accepted, they are more likely to perform their jobs according to those set standards. Whether it be how they dress, speak, or respond to diversity, each area in an organization is highly affected by the culture. Due to the fact that organizational culture is what ultimately
The organization culture as a leadership concept has been identified as one of the many components that leaders can use to grow a dynamic organization. Leadership in organizations starts the culture formation process by imposing their assumptions and expectations on their followers. Once culture is established and accepted, they become a strong leadership tool to communicate the leader 's beliefs and values to organizational members, and especially new comers. When leaders promote ethical culture, they become successful in maintaining organizational growth, the good services demanded by the society, the ability to address problems before they become disasters and consequently are competitive against rivals. The leader 's success will depend to a large extent, on his knowledge and understanding of the organizational culture. The leader who understands his organizational culture and takes it seriously is capable of predicting the outcome of his decisions in preventing any anticipated consequences. What then is organizational culture? The concept of organizational culture has been defined from many perspectives in the literature. There is no one single definition for organizational culture. The topic of organizational culture has been studied from many perspectives and disciplines, such as anthropology, sociology, organizational behavior, and organizational leadership to name a few. Deal defines organizational culture as values,
“Organizational culture consists of a set of shared meanings and values held by a set of members in an organization that distinguish the organization from other organizations” (Baack, 2012). These shared values have a strong influence on the people in the organization and dictate how they dress, act, and perform their jobs. Culture plays a huge role in the guiding of the behaviors of employees of an organization. There are three stages of culture that interact with one another to influence the behaviors in the organization. These stages are: observable artifacts, espoused values, and enacted values.
Southwest’s primary competitors are JetBlue and Spirit Airlines. These two airlines, like Southwest, focus on innovation and low airfare costs. Among the largest airlines are American, Delta, and United. However, these mainline carriers are far from posing any major threat to Southwest. (Coulter, pg 253)
Before this chapter I thought organization’s culture was only internal and outside factors only affect the brand and sales of the company. But I have now learned a lot more about the
McCoy’s Building Supply Centers and Chick-fil-A are two 70 years old, successful companies withstanding the test of time. They continue to sustain growth and longevity through economic turbulence, and remain competitive with new and upcoming companies. What is the secret to their success one might wonder? As we examine each company, we begin to recognize the existence of a solid organizational culture. The organizational culture of a company is the anchoring core values, which permeates throughout the company and its employees (Schermerhorn, Osborn & Uhl-Bien, 2012, pp. 9).
Northwest Airlines and American Airlines will be compared thoroughly in many aspects. Globalization, diversity, ethics and technology will be addressed in various ways. All four themes will be addressed through the strength, fit and adaptive ness of both company's cultures. The overall organizational culture of both Northwest Airlines and American Airlines will be clear.
If you have recently been planning a trip that involves flying then maybe you have already seen the newest seating class option depending on what airline you chose. Delta was the first major airline to introduce the class called “basic economy” which just means that you’re losing what little amenities you have left in economy class. The airlines are trying to compete with the budget airlines like Frontier and Spirit by taking out some of the basic options such as having the ability to choose and reserve your seat. American Airlines and United Airlines have versions of this new class that will be debuting later in the year. With these new changes some have insinuated that these airlines will assume that people would rather upgrade than have
Southwest Airlines has been in business for more than thirty years. Presently, operating airplanes and flight services is very competitive, and in most cases, is not cost-effective industry; however, Southwest Airlines has been consistently profitable company, which is successfully designed with the intention of achieving high growth. According to an interview of Southwest Airlines former CEO, Herb Kelleher, when he visited Graduate School of Business at Stanford University, despite all airline industry challenges, the “low-fare airline has grown into the third largest in the world as measured by the number of passengers carried, and the largest with destinations exclusively in the United States” (2006). To the customers, Southwest
Internally, organizational culture, a set of important assumptions that members of an organization share in common, should be established to provide meaning, direction, and a basis for action (Pearce & Robinson, 2004). The organization would benefit if leaders promote and identify key themes and dominant values within the organization to reinforce competitive advantage they seek to maintain and build (Pearce & Robinson, 2004).
Organizational culture can be values, beliefs and norms which define how members think, feel and behave. More specifically, organizational culture is defined as shared philosophies, ideologies, beliefs, feelings, assumptions, expectations, attitudes, norms, and values (Schein, 2011). It is important to understand organizational culture has tremendous influence on its members, their views of the workplace, their efforts and their productivity. Culture is created by leaders, members and the environment in which the organization finds itself in. However, I believe it is primary the leadership’s responsibility to uphold the standards of a positive culture. As leaders, we must understand the culture we’ve created and how to maintain it or improve it. The Debra Woog McGinty and Nicole C. Moss corporate survey exhibited I’m in an Established/Stable culture.
Southwest Airlines represents a rather unique organizational force that has driven the company to success since its inception in 1971. One of the most unique features about the organizational structure is that it is largely decentralized and employees are openly welcomed to express their opinions on a wide range of organizational issues. However, despite the "hands off" management strategy, the company consistently ranks as one of the top airlines in regards to customer complaints; in 2008, for example, the company received 0.25 complaints on average for every one hundred thousand passengers who used the aviation services (Triangle Business Journal, 2009). This analysis will look at some of the organizational factors that have contributed to the success of Southwest Airlines over the course of the last few decades.
According to Jim Whitehurst who sits on the board of United Airlines, the most important aspect of success in the company is the development of an appropriate culture from the top of the chain going downwards. This means that the culture that the management cultivates can spiral downwards to other employees in the company. For instance, United airlines has a huge focus on safety which is one of the missions of the company as a whole. With meetings beginning with a discussion on the placement of exits and the proper way of exiting the building in case of emergencies, this gives an example of how their culture is reinforced and cultivated all through the organization (Whitehurst, 2016). Having the proper culture to emulate is important because
Southwest is an outstanding company that applies servant leadership to their management style. However, as people change, it is important for management styles to change too. Southwest sets an industry standard for customer satisfaction. However, when it comes to keeping both customers and employees happy Netflix succeeds at exemplifying servant leadership throughout the company.