ABJ 4431 2022-2023 Organisations and People Sample
Introduction
Organizations run and operate with the help of humans for which effective policies and strategies need to be developed. It depicts that management needs to focus on changing, designing and operating various services that can provide better products and services. Also, there are various people associated with the organization such as supplier, employees, customers, managers and executives that aims on consuming and creating various offerings. So, individual’s needs and personal attitudes of people play crucial roles for the organizations as they help to accomplish the desired goals and objectives. It has further been noticed that organizations are dealing with issues like moonlighting, great resignation and quiet quitting that have affected employee engagement at the workplace. Thus, it has become important for global organizations to enhance employee value and boost employee retention so that global employment, a fluid, the complex and boundary less marketplace can create in the coming future.
Outline of selected organization
Southwest Airlines Co. is the airline business of United States that has become popular due to low-cost carrier services. It has its head office in Dallas, Texas and provides scheduled services across 121 destinations in the US excluding ten other nations. In 2018, the airline took more domestic customers which has not been done by any airline in the US. The business was founded in 1967 and operates through various bases such as Oakland, Denver, Atlanta, Baltimore, Chicago-Midway, Las Vegas etc. Airline has a fleet size of 749 which was founded by Rollin King and Herb Kelleher. Airline collected revenues of around US$15.790 billion (About Southwest Airlines, 2022). Airline even services passengers with quality services with an employee team of around 55100 that boosted profits and market positioning. Currently, business is functioning through airports in around 42 states. It even has various Central American destinations from which businesses operate flights (About Southwest Airlines, 2022).
The business model is different from other airlines in US due to point-to-point network, free baggage check-in and rolling hub. Airline is using exclusive jets of Boeing 737 within fleet size. The business has 4000 departures every single day at a time of peak travel season. It provides economic-class seats only and did not add first or business-class cabins within its aircraft. However, even after limited cabins, it provides various amenities and free checking for two baggage. It does not take extra charge for exchanging flights before ten minutes of departure. Refunding at time of flight cancellation is provided in form of travel credit which can use by a customer while purchasing tickets in future. Credit does not have any kind of expiry and customers can avail the credit any time (Ren, 2020). It serves non-alcoholic beverages and even alcoholic beverages that are sold to customers by taking charges around $6 or $7 for each beverage. Halloween and Valentine’s Day is a special occasion on which free alcoholic drinks are provided to customers.
Figure 1: Southwest Airline’s strategy for customers
(Source: Our People, 2021)
Airline business is complying with operational and safety philosophies by understanding the need of frontline employees. It does not compromise employee safety at all. Regulations and laws have been created for workplace that is vital to follow by employees that can help in achieving the goals by fulfilling given operations. Safety is a key stage that is managed in business after which setting low-priced and reliable flights are planned. For this, world-class and best hospitality has been arranged within flights. So, business has various objectives to comply with operational philosophy as it gives a safe travel experience to customers, plans success for positioning Southwest Airlines and creates a safe working culture for staff members (Fu, et.al, 2019). Thus, it depicts that trained and empowered staff members can create a better impact on the satisfaction of customers. This will help organization in achieving sustained growth and profits.
Southwest Airlines deals with various competitors that are present across different markets such as American Airlines, Delta Airlines, United Airlines, JetBlue, Virgin America, etc. This has created tough pressures on survival and competitive edge. Currently, airline holds 17.4% of market share just after American Airlines which describes stiff competition within market. The statistics for market share of airline have been mentioned below. The graph explains that American Airlines is holding a better market share that can affect profits and growth of organizations. Hence it becomes important to create better strategies for coming future. In addition, Delta Airlines is present in third rank which might give tough competition in future and can impact market share of other airlines (Lee, et.al, 2022). So, Southwest Airlines need to focus on market share, competitors, and revenue growth to create suitable plans in coming future.
Figure 2: Market share of Southwest Airlines
(Source: Erick Burgueno Salas, 2022)
Describe employee engagement strategy in organization
Employee engagement refers to human resource concept which mentions dedication and enthusiasm level of employee that is being felt while achieving their job duty. The employee that is engaged in given work performs with a carefulness that helps in improving organizational performance. A better pay check and support are provided to the employee that is performing well in company with given roles and responsibilities. Organization links staff engagement with employee morale and job satisfaction which can bring high success in coming future. Management needs to maintain and create staff engagement using best channels of communication. The business will find that high performance and productivity will increase if best plans are adopted for engaging employees in work. Therefore, Southwest Airlines is complying with best employee engagement practices that need to be determined using McKinsey’s 7S framework. It will help in outlining major strategies that are being used by business for achieving better employee engagement.
Figure 3: Elements of Mckinsey model
(Source: McKinsey’s 7S Framework, 2020)
Hard Elements – The elements can access easily, can control and functions with tangibility that helps to manage organizational leadership and management plans. It includes:
Strategy – HRM strategy in every organization needs to be initiated for satisfying employees that are working. It is a major strategy that aligns resources and people together for achieving sustained goals and profits. Currently, Southwest Airlines complies with strategy that includes: ‘hire for attitude and train for skill”. It takes huge time for recruiting, hiring and interviewing criteria that help to attract skilled people. For instance, in 2015, a business started hiring people for one post for which it took interviewed 100 individuals which show its tough strategy. It has helped in bringing competent staff members that maintained better work culture.
In addition, a fair hiring approach is being used by organization (Beth Hendricks, 2021). It makes use of job descriptions to hire people from an open position. For this, organization requires attributes like a servant’s heart, fun-loving nature and a warrior spirit. It conducts behavioural interviews to accessing potential of staff members that can help in hiring employees with skills and traits. Also, it asked employees about time required for becoming successful. The business further conducts group interviews to identify skilled employees that can use to form effective teams.
Structure – Organizations need to comply with effective organizational structures that can create better policies and complies with unique ideas for managing people and duties (Lewis, 2019). Currently, business uses a centralized decision-making approach. Effective headquarters has been prepared that created a better impact on internal functioning. It even sometimes uses a rigid hierarchy which has increased concerns related to strategic management. The business administers a corporate structure for which effective resources are used for achieving sustained growth. It is vital to create a suitable structure as it can bring sustained growth and improvement by preparing employees to work with quality and productivity.
Currently, U-form organizational structure is being used by Southwest Airlines. It is further known as unitary method that operates by focusing on functional form to group activities and resources like airline marketing or finance. It is a typical method that complies with strong central control over various operations. Thus, corporate structure of airline business runs through a centralized hierarchy and group-based functions are used for managing commercial aviation. For example – there are various functional group and finance that aims on managing daily activities by working together (Miranda Sherman, 2019).
Style – The business needs to comply with effective leadership and management style that can create a better impact on sales and performance. Southwest Airlines is managing work by focusing on consumer expectations and market situations which have helped in bringing a competitive edge to business. The business manages various strategies like low-cost carrier that has boosted profits and consumer base. It manages operations effectively by applying innovative culture that can create a better impact on sales and profitability.
The business complies with servant leadership style in which employee interests are kept on priority (Tony Robbins, 2018). It is used for managing change according to likeability of employees and customers. Thus, business is using a servant leadership style due to which it is performing against stiff competition. For this, best services are created for satisfying stakeholders and customers that created a better impact on boosting revenue growth in coming future. It aims on discussing areas that create a better impact on survival and growth of business. The unique services are provided to customers that will boost economic situations and will strengthen conditions of Southwest Airlines.
Figure 4: Benefits of using servant leadership
(Source: Matt Rocco, 2020)
Soft Elements – They do not hold any kind of tangibility and face influence from organizational culture in which business performs. It even depicts that management cannot control such aspects which can impact performance.
Shared Values – Southwest Airlines is using best culture that has attracted a high customer base and candidates that takes an interest in work (Culture, 2022). The staff members have been trained for preserving and promoting culture for which culture service department has been created. For this, a culture has been created in which employees take care of each other by giving desired respect in which people can work. The main elements in which airline operates for managing culture include celebration, appreciation, and recognition. It has been noticed by businesses that a healthy and fun working environment is necessary for which staff need to be appreciated for their work.
Right and a huge time need to be given to employees so that recognition can takes place using informal and formal methods. The employees that have performed well are nominated with prestigious awards that describe their growth and success. The nomination is based on milestone that has been accomplished by individual while performing various tasks. Creative and fun events are developed by organization so that staff can hold positive motivation towards culture. Locally hosted celebrations are main targets for celebrating success and milestones of employees (Groysberg, et.al, 2018).
Skills – Employee skills have a significant impact on organizational performance and growth. It becomes important for modern organizations to develop skills and abilities that can create a better impact on sales and performance. Thus, Southwest Airlines comply with effective training sessions for which it makes use of hire-for-attitude and train-for-skill method. It is used by venture for providing quality and best training sessions that can bring change and growth within an individual personality. It means high success and strong retention are obtained by business for gaining a competitive edge.
The candidates are being attracted through various perspectives which have helped in improving growth and performance in past years (Diamantidis and Chatzoglou, 2018). For this, best hiring method is used by business so that competent personalities can obtain by business which can drive high profits and revenue growth. It even tries to maintain a high level of transparency that has improved faith and reliability of brand and boosted profits and survival. It has even ranked as best business that hires women employees, graduates, veterans and diverse people to create higher growth and success.
Systems – Southwest complies with latest technologies and systems that have created a better impact on satisfying customers and making payments on time. The reservations have become easy as it uses best IT system for several years. SABRE is determined as a global distribution system which is being used by Southwest Airlines (Airline Reservations, 2021). The change in inventory management ideas and plans can bring change in airfares which sometimes affect customers and their booking plans. The confirmation of reservation given by customers decides future availability of flight tickets to customers that do not create any havoc at time of urgent bookings.
In addition, rates that are mentioned at time of booking through SABRE are not real as OBE’s saving cost changes with time. For this, online booking system has been kept on priority that is creating a better impact on sales and customer base. The storing of flights has become impossible for customers as systems do not allow them to hold their flight seats for long hours. Thus, mileage credit is only provided to customers after mentioning check-in numbers as there are no GDS tools used by flight (Gunarathne, et.al, 2018).
Figure 5: Positive side of effective leadership
(Source: Jennifer Robinson, 2019)
Staff – Southwest Airlines takes care of staff members by keeping them on high priority. The sole objective of business is to comply with unique plans and policies that can bring satisfaction to employees. As employees are treated as heart of organization, various employee benefits have been maintained by the management in past years. It aims on improving a culture that works as the golden rule. Various benefits are being provided to workers. Health coverage is the main aspect that includes medical, vision and dental care for employees. Voluntary benefits in which insurance related to dismemberment, optional life and accidental death.
In addition, financial benefits such as retirement and profit-sharing plan that has helped in seeking attention of global customers (Jaworski, et.al, 2018). Paid off time such as different kinds of vacations such as sick time leave and personal time leave, parental or different holidays. Thus, airline is providing best deals and employee benefits that have created a positive impact on organizational profits and success.
Company’s strengths and challenges based on evidence
Southwest Airlines is a popular and low-cost airline in US that is providing a unique impact on customer pockets. It has used latest technologies and methods for reaching a high customer base for which it does not charge more rates. Also, it has only economic class and eliminated upper-class seats from flights. The organization needs to improve in coming future by maintaining a high competitive edge within markets for which low cost is best strategy. Similarly, there are various ways business has gained higher success. It is vital to know strengths and challenges associated with the business.
Strengths – The culture of the airline venture is unique and supportive of employees that are working. It provides training sessions, retention plans and better benefits that have given a better impact on sales and profits (Sun and Wandelt, 2018). The carrier is providing low-cost flights to customers which is beneficial in gaining a competitive edge and customer base. It has been noticed that $45 is being charged by customer which is low compared to global top airline brands. It even complies with best hiring process that has helped in making best employer. Face-to-face interviews and group discussions are planned that created a better impact on team members. It even takes numerous applications but hires limited people for maintaining quality standards.
It is most admired airline in world that is gaining profits and a high customer base even after selling tickets at low prices. A survey further shows that businesses are gaining regular profits over last 47 years which has created a better impact (Song, et.al, 2020). It means that organization is playing well in market without facing any kind of loss. It has been ranked in fourth position when it comes to most valuable airline brand. Thus, brand is present with various strong sides that will surely boost profits in coming future (Song, et.al, 2020).
Figure 6: Southwest Airline as most valuable brand
(Source: Southwest Airlines, 2020)
Challenges – the brand has negative sides also. It has been noticed that brand is surviving on a single source of success and revenues can play a negative role at time of dealing with stiff competition. Sudden economic turmoil can bring a negative impact on growth and survival. Also, business is heavily dependent on US market which is not suitable in long run as it can impact sustainable outcomes. The brand has Boeing 737s that are numerous in numbers but it is important to change the models in coming future as a change in technology can impact survival. It has been further noticed that global recession due to pandemic might have impacted profits and customer base that can regain without increasing price of flights. There are various issues found in flights that require a modernized fleet in coming future. Also, stiff competition in the airline sector can hamper its survival and competitive edge in the coming future. It has been noticed that the brand is facing negative publicity that needs to be eliminated by positive promotion (Abardehm, et.al, 2022).
Reflection of own understanding on resourcing, managing and leading improved employee engagement
Employee engagement is an essential need for organizations that aims to survive with a competitive edge. Southwest Airlines are fully dedicated to employee and customer benefits that have helped in improving competitive edge and profitability. I have noticed that a business with effective culture and plans for employees can feel much better when it competes in a stiff environment. I also felt that employees need to be trained and supported by leaders and managers which will create a better impact on performance. Also, employee benefits need to be planned by focusing on various policies that can create better deals for future. Reliable staff members only increase when business takes care of their people (Hodaei, et.al, 2020).
In addition, consistent training sessions are important for business as they can lead to profits and strengthens individual performance. It even provides several benefits to business that can improve sales and performance in past years. Also, freedom of speech and ideas can create a better impact on employee mind as it will eliminate work stress. The communities and customers need to be supported by training employees to give their desired needs. It depicts that unique ideas and plans for giving better experiences are only possible by training employees in coming future. Also, best talents need to be retained by applying rewards and recognition that is being already used by business (Moeran, 2021). So, I feel that taking care of employees can create a better impact and competitive edge for airline business and improves sustainable outcomes in coming future.
Conclusion and Recommendations
The present study concludes that organizations and people have a major role to play in achieving sustained growth. Study concludes that Southwest Airlines is complying with the best strategy of employee engagement from past years. There have been various issues found in past years related to employee retention that needs to be improved in coming future. Thus, above case study has explained employee engagement practices that are being used by airline businesses for which it has considered McKinsey model. From study it has been identified that knowing employee needs must keep on priority in future as it can lead to growth and sustainability. Following employee centric approaches will help in motivating employees which will help in keeping teams motivated.
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