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V. SOUTHWEST AIRLINES

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As organizations, airlines tend to be rigorous in the organization and planning of their activities. The nature of the airline industry demands effectiveness: schedules must be adhered to exactly, and procedures insuring maintenance of airplanes and training of staff need to be carefully followed. Southwest airlines organizes its employees according to their function, or the role they play within the organization. Each job is carefully analyzed and categorized to insure that the airline operates efficiently and consistently.

But this does not mean that things at Southwest are inflexible. The airline also needs to operate efficiently in order to be successful. The company's efficiency is demonstrated by the small amount of time required for employees to "turn around" an aircraft at the gate. The industry standard turnaround time is 55 minutes; Southwest crews routinely have planes ready for departure in 20 minutes or less.

Southwest Airline's management structure is designed to carefully direct the activities of employees while still maintaining the spirit of "fun" that is the cornerstone of the airlines customer service success.

The fundamental concept of management at Southwest is the notion of a "loose-tight" design. Within the context of tight rules of conduct, employees are encouraged to take a wide degree of leeway. For example, the company encourages employees to make their own customer service decisions. Employees are encouraged to try new things, knowing that they will not be punished for innovation as long as they do not violate safety standards, endanger crew or passengers, or keep a plane from taking off or landing on time.

Southwest Airline's unique approach to management starts at the top of the organization chart. There is no doubt about who is in charge at Southwest. Herb Kelleher's (chairman) management style has been described as a combination of thriftiness and Robin Williams-style humor and wackiness. He is a highly visible leader whose 16-hour workdays and unflagging energy set an example for other employees. Southwest workers who perform outstanding feats for customers have been known to justify their behavior by saying it was "what Herb would have done."

Southwest is organized in a typical hierarchical structure, with employees reporting through a line of supervisors to Kelleher himself. While most people will not interact with the CEO (chief executive officer) on a daily basis, technology enhancements allow all the employees to keep abreast of Kelleher's activities.

The Executive Vice Presidents, or top managers, are responsible for making strategic decisions about the future of the organization. They make higher-level, general decisions about the directions Southwest will take in the future and the kinds of policies and procedures that should govern employees' conduct.

The Vice Presidents, or middle managers, translate top managers' goals and strategies into actual programs to be implemented within their functional area.

Each of middle managers has a large number of line supervisors reporting to them. These individuals direct the day-to-day activities of non-managerial personnel. These individuals must "maximize utilization of individual talents and abilities in order to accomplish department objectives." Line supervisors focus on interpersonal relationships. They know the job that needs to be done, and their emphasis is on assigning and directing the talents and capabilities of their personnel to best utilize their abilities and get work done effectively and efficiently.

Non-managerial personnel in the human resources area perform largely clerical duties. Typical duties include alpha and numeric filing, phone operations, and use of a personal computer and other standard office equipment. These individuals have limited range in the tasks they perform, and are usually assigned to perform only one portion of a project.

Assignments:

1. Identify the main principles of Southwest Airline's management process.

2. Explain Southwest's hierarchical structure: