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Southwest Airlines: an Industry Giant

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From 1972 to 2002, Southwest Airlines stock returned more for their shareholders than any other stock in the same time period (Collins, 2006, Hospital Strategy IV: Southwest Airlines and thinking outside the box). Many companies have begun to take notice of the Southwest model; a model that allows Southwest to thrive while many of its contemporaries are faced with financial difficulties. The success of Southwest Airlines can be attributed to their structure. This structure has made it possible for Southwest Airlines founders Rollin King and Herb Kelleher to create a culture that was unique and ahead of its time: a people first culture. This culture is supported by Southwest 's human resource practices. Every aspect is dependant upon each …show more content…

By placing people into functional departments with people with the same or similar specializations, Southwest ensures efficiency. There is a reduction in the duplication of personnel and equipment, and allows employees to the opportunity to use terms that are inherent to the position. There is a chain of command that is clear and defined. The structure has helped to create a work environment that allows employees to thrive.
Due to the success of Southwest Airlines, many companies have attempted to duplicate the Southwest model. They have been able to change their policies and procedures to copy those of Southwest Airlines. In this part, most companies have been successful; but the one thing that they have not been able to duplicate, and this is what makes Southwest Airlines successful, is their culture. Robbins (2005) defines organizational culture as a shared meaning held by an organization that defines that organization and separates it from other organizations.
There are several characteristics that capture the essence of the culture of an organization. The characteristic that helped to change Southwest Airlines from a rural airline that serviced only three cities and had four aircraft, to one of the largest airlines in the nation that services sixty three cities and has over five hundred aircraft is innovation and risk taking. Founder Herb Kelleher and Rollin King started Southwest Airlines with a simple plan: to get people

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