Southwest Airlines - A trendsetter in People management

The advent of the airline industry brought with it unprecedented competition with companies worlwide vying to stay in the forefront. Southwest Airlines was one of the most successful ones surpassing its competitors with its strategical implementation of low fares, few flights and frequent service model. With the increasing number of mushrooming companies basking in the glory of Southwest Airlines unabashedly following its trend, it was a challenge for Southwest to sustain its leading edge.

Initially construed to deliver quality service at low-cost, maintaining the no – frills pattern, Southwest had a tough bargain when there were attempts to cause legal hurdles. This led to the advertising campaign “Make Love, Not war” and Southwest was referred to as the “LOVE” airline. Its emphasis on point-to-point routes without the traditional hub and spoke system, use of underutilized airports and fuel-efficient 737s has been a major contributing factor. There is no first or business class. The flights within a state are priced the same. No meals are offered on-flight and there is no assigned seating.

In addition to the low-cost model, Southwest attributed its success to its successful management of people and human resource pratices. It encouraged employees to identify with others at the company, deliver great service and have fun. Southwest’s productivity stems from its efficient workforce. The 15 minute turnaround is an incredible implementation of cost-effective measures. The work culture is so unconventional that even pilots clean the aircraft or load bags if needed. Employees are made sure they are comfortable and treated as internal customers. The Company’s CEO, Herb Kelleher is highly credited for extracting the best from his employees. The catch phrase at Southwest “work is important…don’t spoil it with seriousness” implies how employees are motivated to be more productive. In addition to the parties and celebrations, employees are constantly appreciated. Officers and directors spend a day working in a frontline job to show their appreciation. The Human Resources department renamed as the People department reinstates the importance for the employees growth thus accounting for the profitability of the company.

The recruiting is highly selective and the emphasis is on peer recruiting to ensure a proper fit. Involving customers in interviewing new flight attendants is an innovative trend. The entire interview process is focussed on positive attitude and teamwork. Even the applicants who are rejected in the interviews have a better experience than when they are hired by some companies. Instead of offering referral bonuses, employees get a free space-available pass for referring prospective candidates.

Training is also an integral part of the Southwest work culture. The training is again oriented towards customer service keeping with the company’s goals and objectives. An intersting part of the training is what is called “The Climb” that lasts for over two days when the employees who participate live together and this emotional contact is believed to foster change that would aid in a positive change at the work environment. Southwest does not offer tuition reimbursement or encourage outside training.

The remuneration is initially low and the progression increases with seniority. Pilots and flight attendants get paid by the trip thus motivating them to take more trips. Empoyees after their first year of tenure are benefited by the profit sharing plan. They can also take advantage of the discounted stock purchase plan. The conservative hiring policies have led to a young workforce with women representing all levels. The Company has never had a layoff. The ‘Catastrophe fund’ raises money for fellow employees and further encourages team spirit.

In comparison, most of the airline companies are characterized by poor labour relations and management. The study narrates how American Airline attendants rolled back wages to help in adverse conditions and how Continental lite escaped bankruptcy. Customer complaints, mishandled baggage and other issues are prevalent in most other companies. The study reiterates the fact that the company’s best interests are vested in the people and when they are effectively managed, productivity is high yielding the anticipated results.