prjt 1 (1)

8/8/2019 prjt 1 (1)

1/18

Group 7

8/8/2019 prjt 1 (1)

2/18

Flow of the Presentation

Introduction

Herb Kelleher

Achievements

Awards

Q/A

8/8/2019 prjt 1 (1)

3/18

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

8/8/2019 prjt 1 (1)

4/18

Case talks about the manager HerbKellehers innovative way of dealing with theemployees.

The case deals with corporatephilosophy, culture and HRM practices.

8/8/2019 prjt 1 (1)

5/18

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

8/8/2019 prjt 1 (1)

6/18

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

8/8/2019 prjt 1 (1)

7/18

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 ?

8/8/2019 prjt 1 (1)

8/18

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

8/8/2019 prjt 1 (1)

9/18

Cont

Continuously improved their service for

customers.

Involving Customer in various activitiesBest Employee Management

relation in the industry

8/8/2019 prjt 1 (1)

10/18

Fun at Work Philosophy

Focus on the employee involvement

and empowerment.

Acknowledging employees Births,deaths, marriages and promotions.

HR practices

8/8/2019 prjt 1 (1)

11/18

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.

8/8/2019 prjt 1 (1)

12/18

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?

8/8/2019 prjt 1 (1)

13/18

Fun at work culture.

Even passengers were given dueweightage from company perspective.

Cont

8/8/2019 prjt 1 (1)

14/18

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 ?

8/8/2019 prjt 1 (1)

15/18

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 ?

8/8/2019 prjt 1 (1)

16/18

Cont

willlead to lower stress and higher

productivity.

Will give the feeling of belongingness among

the employees.

8/8/2019 prjt 1 (1)

17/18

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?

8/8/2019 prjt 1 (1)

18/18