The organization of southwest airlines is best described as an upside-down pyramid-an organization very mush in line woth the way they want to do business. The upper management is at the bottom and support the front line employees(>35000),who are the experts. Front line employees play a major role in the yearly business planning and operational budgeting which for a great part is done bottom-up rather than top-down. This os the fruit of co-founder Herb Kelleher's unorthodox leadership style, in which management desicions are made by everyone in the organization,not just the haed executives. The company does not put mush emphasis on structure instead, employees are encouraged to think freely without constraints such as title or official mandates.
The reason for southwest Airline's success is due to their clear key business purpose and core values,and due to the way in which they consistently execute their business model (a combination of "disruptive innovation"and"customer intimacy") in line with their key business purpose nad core values.
The southwest Airline fleet consits solely of boeing 737s and offer only economy seats. Southwest Airlines also do not offer in-flight meals, only peanuts and other snacks. Southwest is simple and direct at the goal their service "A primarily short-hual airline that files directly from city to city,with just one type of plane-the Boeing 737 - and the lowest costs ". With a simple goal, Southwest has excised many of the 'luxuries'that competitors offer,such as luxury seats,this is made evident by their decision to enforce a rule for passengers who cannot fit into the seats to purchase an additional seat.
This rather unpopular move - whereas other airlines would have suggested a more luxury class seat - is simple in its purpose - get passengers from point A to point B with a manimum of frills, but with a friendly smile and great personal service.
While southwest Airlines offer on frills , they do meet and exceed customer expectations when it comes to personal service. They base their model on rhe motto " If employess are happy , they come back . And that makes the shareholders happy ". Southwest invests in very good relations with all their employees. Employees are either of independent labor unions or have flexible contracts which allow employees to wor longer hours (=adaping the business model to the key business purpose).
The organization of southwest airlines is best described as an upside-down pyramid-an organization very mush in line woth the way they want to do business. The upper management is at the bottom and support the front line employees(>35000),who are the experts. Front line employees play a major role in the yearly business planning and operational budgeting which for a great part is done bottom-up rather than top-down. This os the fruit of co-founder Herb Kelleher's unorthodox leadership style, in which management desicions are made by everyone in the organization,not just the haed executives. The company does not put mush emphasis on structure instead, employees are encouraged to think freely without constraints such as title or official mandates.
The reason for southwest Airline's success is due to their clear key business purpose and core values,and due to the way in which they consistently execute their business model (a combination of "disruptive innovation"and"customer intimacy") in line with their key business purpose nad core values.
The southwest Airline fleet consits solely of boeing 737s and offer only economy seats. Southwest Airlines also do not offer in-flight meals, only peanuts and other snacks. Southwest is simple and direct at the goal their service "A primarily short-hual airline that files directly from city to city,with just one type of plane-the Boeing 737 - and the lowest costs ". With a simple goal, Southwest has excised many of the 'luxuries'that competitors offer,such as luxury seats,this is made evident by their decision to enforce a rule for passengers who cannot fit into the seats to purchase an additional seat.
This rather unpopular move - whereas other airlines would have suggested a more luxury class seat - is simple in its purpose - get passengers from point A to point B with a manimum of frills, but with a friendly smile and great personal service.
While southwest Airlines offer on frills , they do meet and exceed customer expectations when it comes to personal service. They base their model on rhe motto " If employess are happy , they come back . And that makes the shareholders happy ". Southwest invests in very good relations with all their employees. Employees are either of independent labor unions or have flexible contracts which allow employees to wor longer hours (=adaping the business model to the key business purpose).
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