Many external factors can influence airline companies and the industry as a whole. For instance, fuel prices, overhead costs, and fluctuations in the number of passengers caused substantial damage to various U.S. airline companies (Rodríguez-Ginorio & Campus, 2011). Nevertheless, Southwest Airlines managed to display constant growth despite that. The reason behind it lies in the company’s entrepreneurial and organizational culture, strengthened by leadership and various internal practices.
Southwest Airlines’ success depends on how it treats its customers and employees. Regarding the former, cooperating with smaller airports created a loyal customer base (Rodríguez-Ginorio & Campus, 2011). This decision was conducted by insightful leadership – an essential factor for any entrepreneurship (Deshwal & Ali, 2020). Regarding the latter, Southwest Airlines understands employee value as the company’s intangible asset (Singh, 2019). In this context, the “free to move” philosophy creates flexibility, empowerment provides performance feedback, and workplace spirituality aligns employee and company goals. Additionally, hiring strategies, such as group interviews, allow HR managers to obtain unique information about candidates and filter them accordingly (WOBI, 2016). Consequently, the employee base becomes as loyal as the company’s customer base.
Southwest Airlines provides a unique example of a company confident in its entrepreneurial and organizational structure. Its leadership is capable of allocating opportunities and securing the customer base. In the meantime, internal strategies aim to provide the best employee experience. With the balance between customer and employee base support and retention, Southwest Airlines can display constant growth even during the crisis in the airline industry.
References
Deshwal, V., & Ali, A. (2020). A systematic review of various leadership theories. Shanlax International Journal of Commerce, 8(1), 38-43.
Rodríguez-Ginorio, A., & Campus, M. (2011). Organizational behavior comparative analysis of southwest airlines: A relax and fun organizational culture that transforms the airline industry. Revista Empresarial Inter Metro/Metro Business Journal, 7(1), 14.
Singh, D. (2019). A literature review on employee retention with focus on recent trends. International Journal of Scientific Research in Science and Technology, 6(1), 425-431.
WOBI – World of Business Ideas. (2016). How Southwest Airlines built its culture | Herb Kelleher | WOBI [Video]. YouTube. Web.