Introduction
Today, most organizations are facing various challenges. Some of these challenges are Moonlighting, great resignation, and quiet quitting, for which the companies are losing a great number of employees. Moonlighting is a situation where a worker works for two or more employers at the same time. In this situation, the worker does not properly concentrate on either job, making the quality of the work worse. On the other hand, as she or he is not loyal to any of those companies, most of the time conflict of interest occurs. Quiet quitting is a situation where the employee works for the company just for the remuneration he or she is getting, and not for they like doing the job. For this reason, they are not intellectually or emotionally engaged with their work, thus minimizing the quality of work. Data on layoffs indicate that the phenomenon actually began more than ten years ago, despite the fact that large layoffs indicate a higher-than-average number of workers leaving their profession on their own in late 2020 and early 2021. This process is called “The Great Resignation”. There are several strategies that can help organizations to overcome the situation of losing their employees. Employee engagement is one of them. In this assessment, the strategy of increasing employee engagement in Southwest Airlines with the help of McKinsey’s 7S laws will be discussed. Also, what are the strengths and weaknesses of the employee engagement strategies, will also be discussed. In addition to that, how to manage and improve employee engagement will be discussed. At last, a small conclusion will be added.
Company Background
Southwest Airlines Co. operates one of the world’s most award-winning and admired, serving unique warm, and valuable hospitality. In 1971, the Airlines launched their air travel services which are affordable for the people. Currently, the airline stands out from the competition and the company will mark its 50th anniversary in the fiscal year 2021. The company’s headquartered in Dallas, and the independent airline cultivates passionate loyalty of its up to 130 million annual passengers by permitting its more than 64000 employees to serve unparalleled hospitality. The airline keeps on creating substantial sides toward its ecological manageability objectives of becoming carbon impartial by 2050. Southwest puts communities at the center of its success by leveraging its unique heritage and mission to serve communities all over the world. This includes using the power and purpose of its employees to serve communities.
Employee Engagement Strategy
In this portion of the study, Mckinsey’s 7s strategy is going to be discussed. By definition, it can be told that a model for developing or developing a firm’s organizational design is the McKinsey 7-S Model. By focusing on the interplay of seven essential components, goal, systems, common values, ability, manner, and staff. It seeks to illustrate how leaders may handle organizational transformation efficiently.
Strategy
Employment engagement in a company depends on the business strategy. There is a proportional relation between the operational strategy and the rate of employee retention in any organization. The most popular airline in the United States is Southwest Airlines. The business strategy of this airline is constructed on a high level of operational practices, reasonable cost pricing, and ingenious logistics solutions. The outstanding quality of customer service makes this company noteworthy in the industry (Sharma et al, 2019). Such a strong business strategy helps this airline to make healthy conditions in the sphere of recruitment of new employees. Because a strong business strategy helps to focus on long-term goals. It is directly related to attracting and staffing talent. It is the main point of requirements of the employee or better say the workers can work productively if there is any project goal in front of them.
Structure
The structure is the term for the chain of authority or structure of management that designates roles and duties. They exert control over others by giving them tasks to complete. The organization’s culture is more obvious than the other parts and is capable of altering without negatively impacting the others. The organizational structure of southwest airlines has a great impact on the employee engagement strategy of their organization (Suma, and Vinay, 2019). The model of the organization in the concerned airlines is U-type. This type of structure is also known as the functional form due to the business operations on the basis of grouping resources and operational activities. the activities in terms of economics and airline marketing. The strong organizational structure helps to control the human resources section of the company which is directly connected to the employment of new workers. This u-type of the organizational structure aids Southwest airlines to increase the safety and security level of their employees. Therefore the retention rate of this company is very high.
Leadership Style
In terms of leadership style, Southwest airlines follow Servant Leadership. According to the CEO of this famous airline company in the United States, caring for people is the key point of their business options. Therefore they follow the servant type of leadership. Due to this, the Southe west airlines company become able to improve its associates, make a vision tha has the control to change, and inspires people in a positive manner. Another advantage of this type of leadership is to develop cohesion for the forthcoming times. Gives employees a deeper understanding of such needs by paying close attention. Whenever servant leaders sincerely hear their workers, they give them the impression as though their wants and views count, which increases employee involvement. Servant leaders cherish the thoughts and views of others.
Skills
Now the employee skills, training, and development of Southwest Airlines are going to be discussed. In terms of training the employees, this airline is very careful. They believe that the workers are newcomers. It is not possible for them to know every point of the project. Therefore, they provide proper training to them for a particular time duration after recruiting the new employees. Due to this the rate of productivity at the end of the year of this famous airline company also increases. It results in the expansion of the business, which is responsible for increasing the scope of new hiring and making goodwill in the industry.
Systems
The ITC or the “Integrated Transaction Control System” is very advanced in Southwest Airlines. It is technical support by implementing which the companies can able to develop their existing condition of the operations. Southwest airlines also install it in its management system. Due to this the service quality to their customers also improved and benefits attracting new customers. It is highly significant to control the retention rate of the workers of a business organization. The profiles of the applicants are monitored through online devices. If the operating system is not working well then it may affect the quality often the hiring process and along with this employee engagement is also deteriorated.
Figure 1: Mckinsey’s 7s strategy
(Source: MS Word)
Staff
The employees are the main pillar of any business operation. The famous airline in the United States Southwest Airlines maintains the employees in a very good manner. From the recruitment process to the training they possess an effective procedure that makes them more productive and more competitive in the market. This company awards their employees for their good work which is notable to make the retention rate high. During the project when an employee gets awards for their job it helps to increase their level of concentration as well as the productivity of the organization. Rewards make their employees grow up their efficiency tanned the ey feel more committed to their respective job. The existing employees act as a mirror of the company. The good health of the company can be spread through them. At this point, Southwest Airlines gains a lot compared to its competitors. The goodness of the company to the customers attracts new workers to make involved in such a big international project.
Shared Values
There are three points of culture that are followed by Southwest Airlines. pleasure, acknowledgment, and gratitude. Throughout regional and Corporate level Sociocultural Teams, the company strives to value every worker in order to build and nurture a pleasant and positive work atmosphere (Rasool et al, 2019). Simply said, a productive workplace culture encourages participation, greater employee satisfaction, and output. In comparison, a workplace that is hostile can lower performance, boost profits, and make staff feel disengaged from their jobs and environment.
Strengths & Weaknesses in Employee Engagement
Strengths:
While doing empirical research and secondary observations, it was found that Southwest’s corporate culture encourages and persuades staff to work more compactly than different airlines. Employees can also benefit from this corporate cultivation by increasing their productivity, controlling costs, and providing the best customer service. The employees’ careers are secure. Leaders provide support and direction to employees in order to help them fulfill their responsibilities and achieve their goals. The council meets the needs of all employees in this way. Employees were encouraged to be themselves by the manager’s captivating personality.
The company’s main asset is its workforce. During the scandalous 9/11 psychological oppressor assaults, Southwest Carriers were the only company not to lay off workers, making an act of endless trust among the executives. As a result, they have been able to keep employees (Cote, 2018). From approx twenty-five workforces, two planes, and trips to three Texas urban areas in the year 1971, Southwest will develop to Sixty thousand representatives, 750 airplanes, and pinnacle day-to-day takeoffs in the year 2019. It now employs four thousand people and is worth 22 billion dollars 9Burhanuddin, et al, 2020). Southwest had over sixty thousand full-time employees, 22.4 billion dollars in revenue, and ‘$2.3 billion’ in net income as of ‘2019’. rs. Southwest distributed its 667 million dollar profit to employees in ‘2019’. The high-energy practice is built on having fun and working hard. Its assets are shared with employees and then shared 667 million dollars in 2019 with them. Relationships, positivity, attention to detail, dedication, personal dignity, values, approval, a collective team approach, and employees have all contributed to Southwest Airlines’ success over its history of long years as the airline’s founder and CEO. It is, in my opinion, a leadership quality that places an emphasis on giving back to others. And the company and brilliant energy and excitement (Mani & Mishra, 2018).
they are dedicated to being regulated by a balanced work environment with equal opportunities for learning and particular growth, states Southwest Airlines, and advancing technology is encouraged (Kanso & Grassmuck, 2020). Above all else, employees ought to be treated with the same consideration, reverence, and compassion throughout the establishment, as well as communicated clearly to all Southwest customers. this is regarded highly favorable by the staff.
Weaknesses:
The COVID-19 pandemic had a significant impact on nearly every industry; unemployment rates skyrocketed and business conditions deteriorated worldwide. In the face of the financial crisis, airlines used pay raises and incentives to pledge. In order to weather the difficulties with the company, executives at Southwest Airlines have decided to forego some incentives and salaries.
In the meantime, the company has also implemented the corresponding benefits for employees. An earlier offer of concession to its workers has been withdrawn by the company. This might make the employees less interested to work there (Du et al, 2018). Also, researchers showed that despite a significant increase in production of approximately 11 percent as a result of a 3 percent reduction in headcount, Southwest Airlines received a negative score on its employee productivity index. Over the past four years, the airline’s revenue has been steadily falling. The market is shrinking and fuel prices continue to rise as a result of travel restrictions beginning in 2020. Due to rising fuel costs, Southwest Airlines’ unit price increased slightly in 2018. Due to the less constrained domestic market in the United States, Southwest Airlines maintained a significantly lower unit price than other airlines (Cui & Li, 2022). Although the negative employee productivity index and falling revenue might affect the employee retention and engagement of Southwest Airlines.
Managing and Improving Employee Engagement
Workplace bullying reduces employee engagement. Steady with this found that when faculty view departmental culture as characterized by proper instrument and lead for managing social issues, harassing episodes We theorized that there would be fewer tormenting episodes. Be aware of the potential negative effects of bullying. retaining a connection to the subject’s work. The term “work engagement” refers to the integration of an individual’s self and work role, and it was first introduced into bureaucratic psychology by Kahn in the year of 1990. Employee commitment has been shown to have many clear effects, such as creativity, job performance, and persuasiveness. Even if there is bullying, organizations and their managers can assist in reducing both low-level and high-level bullying by focusing on how to appropriately and moderately address conflicts and tensions within the organization. aid in maintaining employee motivation at work (Einersen et al, 2018). Up to 44.7% of the variation in operator performance can be attributed to operator commitment and training. The training fosters a positive attitude, which in turn increases employee commitment. Foster a business-related mental state characterized by strength, responsibility, and submersion (Schneider, 2022). Employees are motivated to give back to management by making more work commitments and, in turn, exhibit improved attitudes and behaviors when they accept various perks from their employers, such as resources and exercise. It has been stated that engagement is a catalyst for employee performance and is characterized by energy, absorbtivity, commitment, effectiveness, power, allegiance, enthusiasm, and positivity. There is a strong correlation between employee performance and employee engagement. When empowered and trained, employees act in an engaging manner. Therefore, working hard at work and remaining consistent in the face of challenges are linked to engagement (Sendawula et al, 2018). Member engagement is increased when important tasks are assigned and support is provided. To increase cognitive opportunity in the workplace, businesses should make CSR engagement an essential component of employees’ work commitments. In this study, there was a significant positive correlation between this and job commitment. CSR must be incorporated into the day-to-day operations of the business in order to increase benefits in the form of increased worker commitment. It was discovered that her CSR had no effect on employee engagement unless psychological safety, psychological opportunity, and psychological significance at work were addressed. this 13-point psychological engagement scale was used to measure employee engagement.. these sub-dimensions were as follows: “Emotional engagement”, “physical engagement”, and “cognitive engagement”.
A mental environment of decency, backing, and trust can work on mental confirmation and hence work on representatives’ specific commitment to their work (Chaudhary, 2019). According to the findings, job engagement is significantly influenced by constitutional approval. In turn, social structure causes a high level of effort and engagement. Human resource management must establish formalities to bolster intangible motivations and improve work assurance. In order to cultivate a positive work commitment, an effective and clear connection strategy is crucial. When it comes to increasing employee engagement at work, systematic interventions that encourage the growth of transformative leadership and structural empowerment are beneficial. The significance of leaders in fostering employee engagement at work must be acknowledged by organizations. Even in the presence of transformative leadership, employees demonstrated high levels of work engagement in an economy marked by increased flexibility, advanced technology, organizational change, and fixed-term contracts. Enhancing employee engagement at work necessitates structural empowerment. According to the findings of the study, constitutional clearance is a significant factor in determining job security.
As a result, there is a high level of work enthusiasm. Formalities that reinforce ethereal motivations to increase work commitment must be built by human resource authority. In order to establish a clear work commitment, an acceptable and transparent connection strategy is critical. In order to increase employee engagement at work, systematic arbitrations that promote the development of transformative captaincy and architectural empowerment are beneficial (Amor et al, 2020). Leaders play a critical role in encouraging employee engagement in the workplace, and organizations must acknowledge this.
Even in the presence of transformative leadership, the department demonstrated a high level of work commitment in an economy marked by increased flexibility, advanced technology, organizational change, and fixed-term deals. In order to cultivate a commitment to one’s work, structural approval is a crucial component. The effectiveness of job arrange efforts in fostering employee commitment has been demonstrated in a number of different fields.
Nurses’ dedication to their work increased as a result of behavioral interventions with participation. Job crafting increases work significance and personal and organizational fit, making it an active bottom-up strategy for improving work-her engagement. Particularly, job commitment and assignment work are positively correlated with job creation in the form of increased job necessity and workplace resources. Recent interventions in job creation have also demonstrated that employees can learn how to create their own jobs.
A higher level of engagement in the work, improved performance, and an increase in professional and personal resources are all outcomes of this. Recent research demonstrates that employees can also influence their own engagement, in addition to organizational-level and top-down approaches to work engagement. In describing the emergence and maintenance of engagement in the context of dynamic team-based work, a leadership style may complement the known advantages of transformational leadership. Engagement is influenced by both individual psychological and motivational factors as well as situational factors. (Bakkart & Albrecht, 2018). Human resource management (HRM) systems and practices’ top-down effect on employee engagement.
Conclusion
Going through the entire paper, it is revealed that Southwest Airlines has a strong business strategy that impacts employee engagement. With the help of the proper business model, they become able to figure out their operational issues and mitigate them. The entire paper focuses on the employee engagement strategy of a famous airline company in the United States that entails Mckinsey’s 7s strategy to understand it in a better manner. This paper outlines the strength and weaknesses of the engagement strategy of employment in an informative manner that may be very helpful for further study.
References List
Journals
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